[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 936 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 936

                       To leave no child behind.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 26, 2003

Mr. George Miller of California (for himself, Mr. Wexler, Mr. Hoeffel, 
  Mrs. Napolitano, Mr. Payne, Mr. Owens, Mr. Serrano, Mr. Kennedy of 
  Rhode Island, Mr. Kildee, Mr. Andrews, Mr. Udall of New Mexico, Mr. 
Brown of Ohio, Mr. Abercrombie, Mrs. Davis of California, Ms. Lee, Ms. 
Woolsey, Ms. Solis, Mr. Kucinich, Ms. Millender-McDonald, Mr. Scott of 
 Virginia, Mr. Moran of Virginia, Mr. Tierney, Ms. Pelosi, Mr. Stark, 
 Ms. Watson, Mr. Farr, and Ms. Lofgren) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
to the Committees on Energy and Commerce, Education and the Workforce, 
 Agriculture, the Judiciary, Government Reform, and Transportation and 
   Infrastructure, 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 leave no child behind.

    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 ``Leave No Child Behind Act of 2003''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

          TITLE I--HEALTHY START--CHILDREN'S HEALTH INSURANCE

                Subtitle A--Children's Health Insurance

Sec. 1001. Medikids health insurance.
Sec. 1002. Benefits for all children born after 2002.
Sec. 1003. Medikids premium.
Sec. 1004. Refundable credit for cost-sharing expenses under Medikids 
                            program.
Sec. 1005. Report on long-term revenues.
   Subtitle B--Children's Health Insurance Eligibility Expansion and 
                        Enrollment Improvements

                   Csubchapter a--medicaid and schip
Sec. 1101. Expansion of children's eligibility for medicaid and SCHIP.
Sec. 1102. Optional coverage of legal immigrants under the medicaid 
                  subchapter b--family opportunity act
Sec. 1111. Short title; amendments to Social Security Act.
Sec. 1112. Opportunity for families of disabled children to purchase 
                            medicaid coverage for such children.
Sec. 1113. Treatment of inpatient psychiatric hospital services for 
                            individuals under age 21 in home or 
                            community-based services waivers.
Sec. 1114. Demonstration of coverage under the medicaid program of 
                            children with potentially severe 
                            disabilities.
Sec. 1115. Development and support of family-to-family health 
                            information centers.
Sec. 1116. Restoration of medicaid eligibility for certain SSI 
                            beneficiaries.
                   Chapter 2--Enrollment Improvements

Sec. 1121. Application of simplified title XXI procedures under the 
                            medicaid program.
Sec. 1122. Automatic enrollment of children born to title XXI parents.
                       Chapter 3--Effective Date

Sec. 1131. Effective date.
                  Subtitle C--Improving Access to Care

                         Chapter 1--Commission

Sec. 1201. Commission on Children's Access To Care.
         Chapter 2--Children's Health Insurance Accountability

Sec. 1211. Short title.
Sec. 1212. Findings.
Sec. 1213. Amendments to the Public Health Service Act.
Sec. 1214. Amendments to the employee retirement income security act of 
                            1974.
Sec. 1215. Studies.
Sec. 1216. Effective dates.
                            Chapter 3--EPSDT

Sec. 1221. Collection of data regarding the delivery of EPSDT services.
                Subtitle D--Reducing Public Health Risks

                      Chapter 1--Asthma Treatments

Sec. 1301. Findings.
Sec. 1302. Asthma, vision, and hearing screening for Early Head Start 
                            and Head Start Programs.
Sec. 1303. Asthma, vision, and hearing screening and treatment for 
                            children enrolled in public schools.
Sec. 1304. General effective date.
            Chapter 2--Increase In Funding for HUD Programs

Sec. 1311. Lead-based paint hazard control grants.
Sec. 1312. Healthy homes initiative program.
            Chapter 3--Youth Smoking Cessation and Education

Sec. 1321. subchapter a--protection of children from tobacco
Part I--Food and Drug Administration Jurisdiction and General Authority

Sec. 1331. Reference.
Sec. 1332. Statement of general authority.
Sec. 1333. Nonapplicability to other drugs or devices.
Sec. 1334. Conforming amendments to confirm jurisdiction.
Sec. 1335. General rule.
Sec. 1336. Safety and efficacy standard and recall authority.
                Part II--Regulation of Tobacco Products

Sec. 1341. Performance standards.
Sec. 1342. Application of Federal Food, Drug, and Cosmetic Act to 
                            tobacco products.
Sec. 1343. Funding.
Sec. 1344. Repealsubchapter b--miscellaneous provisions
Sec. 1351. Nonapplication to tobacco producers.
Sec. 1352. Equal treatment of retail outlets.
             Chapter 4--Coverage Of Childhood Immunizations

Sec. 1361. Short title.
Sec. 1362. Amendments to the Employee Retirement Income Security Act of 
                            1974.
Sec. 1363. Amendments to the Public Health Service Act.
Sec. 1364. Amendments to the Internal Revenue Code of 1986.
Sec. 1365. Effective dates.
            Subtitle E--Reducing Environmental Health Risks

            Chapter 1--Environmental Protection of Children

Sec. 1401. Short title.
Sec. 1402. Environmental protection for children and other vulnerable 
                            subpopulations.
Sec. 1403. Conforming amendment.
Sec. 1413. Conforming amendment.
Sec. 1414. Effective date.
        TITLE II--HEALTHY START--SUPPORT FOR HEALTHY DEVELOPMENT

            Subtitle A--Promotion of State and Local Support

Sec. 2001. State and local parenting support and education grant 
                            program.
             Subtitle B--Family and Medical Leave Expansion

Sec. 2101. Short title.
Sec. 2102. Findings.
     Chapter 1--Family Income to Respond to Significant Transitions

Sec. 2111. Short title.
Sec. 2112. Purposes.
Sec. 2113. Definitions.
Sec. 2114. Demonstration projects.
Sec. 2115. Notification.
Sec. 2116. Evaluations and reports.
Sec. 2117. Authorization of appropriations.
Sec. 2118. Technical and conforming amendments.
                 Chapter 2--Family Friendly Workplaces

Sec. 2121. Short title.
Sec. 2122. Coverage of employees.
          Chapter 3--Employment Protection for Battered Women

Sec. 2131. Entitlement to leave for addressing domestic violence for 
                            non-Federal employees.
Sec. 2132. Entitlement to leave for addressing domestic violence for 
                            Federal employees.
Sec. 2133. Existing leave usable for domestic violence.
            Chapter 4--Federal Employees Paid Parental Leave

Sec. 2141. Short title.
Sec. 2142. Demonstration project.
Sec. 2143. Technical and conforming amendments.
Sec. 2144. Effective date.
                      Chapter 5--Time For Schools

Sec. 2151. Short title.
Sec. 2152. General requirements for leave.
Sec. 2153. School involvement leave for civil service employees.
Sec. 2154. Effective date.
               Subtitle C--Health Care for the Uninsured

Sec. 2201. Familycare coverage of parents under the medicaid program 
                            and title XXI.
        Subtitle D--Awareness of Environmental Risks to Children

Sec. 2301. Short title.
Sec. 2302. Finding.
    subchapter a--disclosure of industrial releases that present a 
                      significant risk to children
Ssubchapter b--disclosure of high health risk chemicals in children's 
                           consumer products
Sec. 2321. List of toxic chemicals.
Sec. 2322. Reporting of toxic chemicals in consumer products.
Sec. 2323. Exemptions.
Sec. 2324. Private citizen enforcement.
        Chapter 2--Public Right to Know About Toxic Chemical Use

Sec. 2331. Disclosure of toxic chemical use by comparable facilities.
Sec. 2332. Disclosure of toxic chemical use.
Sec. 2333. Streamlined data collection and dissemination.
Sec. 2334. Trade secret protection.
              Subtitle E--Promoting Responsible Fatherhood

                        Chapter 1--Block Grants

Sec. 2401. Block grants to States to encourage media campaigns.
Sec. 2402. Responsible fatherhood block grant.
                   Chapter 2--National Clearinghouse

Sec. 2411. National clearinghouse for responsible fatherhood programs.
                  TITLE III--HEAD START AND CHILD CARE

                    Subtitle A--Infants and Toddlers

Sec. 3001. Reservation of Head Start Act funds for infants and 
                            toddlers.
Sec. 3002. Reservation of child care and development block grant funds 
                            for infants and toddlers.
                     Subtitle B--Child Care Access

               Chapter 1--Improving Access to Child Care

Sec. 3011. Incentive grants to States.
Sec. 3012. Payment rates.
            Chapter 2--Improvements In Access to Child Care

Sec. 3111. Goals.
Sec. 3112. Authorization of appropriations.
Sec. 3113. State plan requirements.
Sec. 3114. Funds for indian tribes.
Sec. 3115. Definitions.
               Subtitle C--Child Care Quality Improvement

 Chapter 1--Focus On Committed and Underpaid Staff for Children's Sake

Sec. 3201. Short title.
Sec. 3202. Findings and purpose.
Sec. 3203. Definitions.
Sec. 3204. Funds for child care provider development and retention 
                            grants and for child care provider 
                            scholarships.
Sec. 3205. Allotments to States.
Sec. 3206. Application and plan.
Sec. 3207. Child care provider development and retention grant program.
Sec. 3208. Child care provider scholarship program.
Sec. 3209. Annual report.
Sec. 3210. Authorization of appropriations.
Chapter 2--Strengthening Quality Through the Child Care and Development 
                              Block Grant

Sec. 3231. State plan.
Sec. 3232. Child care quality improvements.
Sec. 3233. Administration and enforcement.
          Chapter 3--Child Care Centers in Federal Facilities

Sec. 3241. Short title.
Sec. 3242. Definitions.
Sec. 3243. Providing quality child care in Federal facilities.
Sec. 3244. Federal child care evaluation.
Sec. 3245. Child care services for Federal employees.
Sec. 3246. Miscellaneous provisions relating to child care provided by 
                            Federal agencies.

                       Chapter 4--Early Learning

Sec. 3251. Short title; findings.
Sec. 3252. Purposes.
Sec. 3253. Definitions.
Sec. 3254. Prohibitions.
Sec. 3255. Authorization and appropriation of funds.
Sec. 3256. Allotments to States.
Sec. 3257. Administrative costs.
Sec. 3258. State requirements.
Sec. 3259. State administration.
Sec. 3260. Local application.
Sec. 3261. Local administration.
Sec. 3262. Use of funds.
Sec. 3263. Repeal.
Sec. 3264. Effective date.
               Chapter 5--Child Care Facilities Financing

Sec. 3271. Short title.
Sec. 3272. Technical and financial assistance grants.
             Subtitle D--Head Start Access and Improvement

Sec. 3301. Authorization of appropriations.
                   Subtitle E--Education Improvements

    Chapter 1--Increasing Access to Quality Prekindergarten Programs

Sec. 3401. Prekindergarten programs.
            Chapter 2--Increasing The Availability of Books

Sec. 3411. Short title.
Sec. 3412. Findings.
Sec. 3413. Definitions.
Sec. 3414. Grants to State agencies.
Sec. 3415. Contracts to child care resource and
                            referral agencies.
Sec. 3416. Use of funds.
Sec. 3417. Report to Congress.
Sec. 3418. Special postage stamps for child literacy.
Sec. 3419. Authorization of appropriations.
  subchapter a--amendment to title ii of the elementary and secondary 
                         education act of 1965
Sec. 3421. subchapter b--national board certification program
Sec. 3431. Purpose.
Sec. 3432. Grants to expand participation in the national board 
          subchapter c--student loan forgiveness for teachers
Sec. 3441. Student loan forgiveness for teachers.
                subchapter a--school modernization bonds
Sec. 3451. Short title.
Sec. 3452. Expansion of incentives for public schools.
Sec. 3453. Application of certain labor standards on construction 
                            projects financed under public school 
           subchapter b--schools as centers of the community
Sec. 3461. Findings.
Sec. 3462. Purpose.
Sec. 3463. Program authorized.
Sec. 3464. Use of funds.
Sec. 3465. Applications.
Sec. 3466. Authorization of appropriations.
            Chapter 5--Child Opportunity Zone Family Centers

Sec. 3471. Child opportunity zone family centers.
         TITLE IV--FAIR START--LIFTING CHILDREN OUT OF POVERTY

               Subtitle A--Expanding the Child Tax Credit

Sec. 4001. Expansion of child tax credit; credit made partially 
                            refundable.
         Subtitle B--Strengthening the Earned Income Tax Credit

Sec. 4101. Short title.
Sec. 4102. Increased earned income tax credit for 2 or more qualifying 
                            children.
Sec. 4103. Simplification of definition of earned income.
Sec. 4104. Simplification of definition of child dependent.
Sec. 4105. Modification of joint return requirement for earned income 
                            tax credit.
          Subtitle C--Expanding the Dependent Care Tax Credit

Sec. 4201. Dependent care tax credit.
    TITLE V--FAIR START--SUPPORT TO PROMOTE WORK AND REDUCE POVERTY

                   Subtitle A--Gateways Grant Program

Sec. 5001. Gateways grant program.
                 Subtitle B--Support From Both Parents

                 Chapter 1--Child Support Distribution

Sec. 5101. Shosubchapter a--distribution of child support
Sec. 5111. Distribution of child support collected by States on behalf 
                            of children receiving certain welfare 
      subchapter b--review and adjustment of child support orders
Sec. 5116. Mandatory review and modification of child support orders 
  subchapter c--demonstrations of expanded information and enforcement
Sec. 5121. Guidelines for involvement of public non-IV-D child support 
                            enforcement agencies in child support 
                            enforcement.
Sec. 5122. Demonstrations involving establishment and enforcement of 
                            child support obligations by public non-IV-
                            D child support enforcement agencies.
Sec. 5123. GAO report to Congress on private child support enforcement 
                            agencies.
Sec. 5124. Effectivsubchapter d--expanded enforcement
Sec. 5126. Decrease in amount of child support arrearage triggering 
                            passport denial.
Sec. 5127. Use of tax refund intercept program to collect past-due 
                            child support on behalf of children who are 
                            not minors.
Sec. 5128. Garnishment of compensation paid to veterans for service-
                            connected disabilities in order to enforce 
                      subchapter e--miscellaneousions.
Sec. 5131. Report on undistributed child support payments.
Sec. 5132. Use of new hire information to assist in administration of 
                            unemployment compensation programs.
Sec. 5133. Immigration provisions.
Sec. 5134. Correction of errors in conforming amendments in the 
                            Welfare-to-Work and Child Support 
                            Amendments of 1999.
Sec. 5135. Increase in payment rate to States for expenditures for 
                            short-term training of staff of certain 
                            child welfare agencies.
Sec. 5136. Effective date.
            Chapter 2--Child Support Demonstration Programs

Sec. 5141. Short title.
Sec. 5142. Purposes.
Sec. 5143. Definitions.
Sec. 5144. Establishment of child support assurance demonstration 
                            projects.
           Subtitle C--Fair Wages and Unemployment Insurance

                      Chapter 1--Fair Minimum Wage

Sec. 5201. Short title.
Sec. 5202. Minimum wage.
Sec. 5203. Applicability of minimum wage to the commonwealth of the 
                            northern mariana islands.
     Chapter 2--Livable Wages for Employees Under Federal Contracts

Sec. 5211. Short title.
Sec. 5212. Findings.
Sec. 5213. Poverty level wage.
Sec. 5214. Effective date.
                   Chapter 3--Unemployment Insurance

Sec. 5221. Parity for part-time workers, fair counting of wages, and 
                            use of improved technology for making wage 
                            data available.
Sec. 5222. Ensuring unemployment compensation for individuals that are 
                            separated from employment due to domestic 
                            violence.
Sec. 5223. Loss of child care as good cause for leaving employment.
                Subtitle D--Jobs for Low-Income Parents

Sec. 5301. Disregard of months engaged in work for purposes of 5-year 
                            TANF assistance limit.
Sec. 5302. Replacement of caseload reduction credit with employment 
                            credit.
Sec. 5303. States to receive partial credit toward work participation 
                            rate for recipients engaged in part-time 
                            work.
Sec. 5304. TANF recipients who qualify for supplemental security income 
                            benefits removed from work participation 
                            rate calculation for entire year.
Sec. 5305. Elimination of limit on number of TANF recipients enrolled 
                            in vocational education or high school who 
                            may be counted towards the work 
                            participation requirement.
Sec. 5306. Counting of up to 2 years of vocational or educational 
                            training (including postsecondary 
                            education), work-study, and related 
                            internships as work activities.
Sec. 5307. Limited counting of certain activities leading to employment 
                            as work activity.
Sec. 5308. Elimination of separate work participation rate for 2-parent 
                            families.
Sec. 5309. Addition of poverty reduction bonus to TANF.
Sec. 5310. Participation in workforce investment boards.
Sec. 5311. Clarification of TANF purpose.
Sec. 5312. Effective date.
                Subtitle E--Incentives to Serve Families

Sec. 5401. Development of model caseworker training materials.
Sec. 5402. Exception to limit on TANF administrative expenditures for 
                            caseworker bonuses and other State 
                            initiatives to eliminate barriers to work.
Sec. 5403. Strengthening of TANF individual responsibility plans.
Sec. 5404. Effective date.
                  Subtitle F--Addressing Work Barriers

Sec. 5501. Funding for access to jobs program.
Sec. 5502. Requirement to identify and provide services to address 
                            barriers to employment of TANF recipients.
Sec. 5503. State option to establish exceptions from time limit for 
                            receipt of TANF assistance based on severe 
                            barriers to employment.
Sec. 5504. Effective date.
              Subtitle G--Protection for Families in Need

Sec. 5601. Earn-back of months of TANF assistance.
Sec. 5602. Establishment of a fair conciliation process for families 
                            under TANF.
Sec. 5603. Treatment of aliens under the TANF program.
Sec. 5604. Effective date.
                    Subtitle H--TANF Reauthorization

Sec. 5701. Reauthorization of TANF State family assistance grants.
Sec. 5702. Prohibition on supplantation of TANF funds.
                          TITLE VI--FAIR START

             Subtitle A--Child and Adult Care Food Program

Sec. 6001. Participation of for-profit care centers in child and adult 
                            care food program.
Sec. 6002. Categorical eligibility requirements.
Sec. 6003. Increase in administrative reimbursement rates.
Sec. 6004. Program for at-risk school children.
                     Subtitle B--Food Stamp Program

Sec. 6101. Restoration of food stamp benefits for qualified aliens.
Sec. 6102. Conforming food stamp and medicaid income definitions; 
                            simplified income calculations.
Sec. 6103. Prevention of hunger among families with children.
Sec. 6104. Encouragement of collection of child support.
Sec. 6105. Elimination of excess shelter expense deduction cap for 
                            families with high shelter costs.
Sec. 6106. Periodic redetermination of eligibility.
Sec. 6107. Transitional benefits option.
Sec. 6108. Improving State incentives to serve working families.
                     TITLE VII--FAIR START HOUSING

                     Subtitle A--Section 8 Vouchers

Sec. 7001. Rental assistance voucher program.
Sec. 7002. Voucher success fund.
           Subtitle B--National Affordable Housing Trust Fund

Sec. 7101. Purposes.
Sec. 7102. National Affordable Housing Trust Fund.
Sec. 7103. Administration of National Affordable Housing Trust Fund.
Sec. 7104. Regulations.
            Subtitle C--Housing Preservation Matching Grants

Sec. 7201. Short title.
Sec. 7202. Findings and purposes.
Sec. 7203. Definitions.
Sec. 7204. Authority.
Sec. 7205. Applications.
Sec. 7206. Use of grants.
Sec. 7207. Grant amount limitation.
Sec. 7208. Matching requirements.
Sec. 7209. Treatment of subsidy layering requirements.
Sec. 7210. Regulations.
Sec. 7211. Authorization of appropriations.
                         TITLE VIII--SAFE START

            Subtitle A--Promotion of Permanency for Children

Sec. 8001. Reimbursement for preventive, protective, crisis, 
                            permanency, independent living, and post-
                            permanency services and activities.
Sec. 8002. Child and family service plan and case reviews.
Sec. 8003. Kinship guardianship assistance payments for children.
Sec. 8004. Elimination of financial eligibility requirement for foster 
                            care maintenance and adoption assistance 
                            payments.
Sec. 8005. Establishment of uniform Federal matching rate.
Sec. 8006. Elimination of disincentive for foster parents to adopt 
                            children with special needs who have been 
                            in their foster care.
Sec. 8007. Extension of adoption assistance payments.
Sec. 8008. Reimbursement for room and board in foster family homes, 
                            child care institutions, or supervised 
                            living arrangements for young people aging 
                            out of foster care.
Sec. 8009. Additional accountability.
Sec. 8010. Authority of indian tribes to receive Federal funds for 
                            foster care and adoption assistance.
                Subtitle B--Social Services Block Grant

Sec. 8101. Short title.
Sec. 8102. Findings.
Sec. 8103. Restoration of authority to transfer up to 10 percent of 
                            TANF funds to the Social Services Block 
                            Grant.
Sec. 8104. Restoration of funds for the Social Services Block Grant.
Sec. 8105. Requirement to submit annual report on State activities.
     Subtitle C--Child Protection and Alcohol and Drug Partnerships

Sec. 8201. Short title.
Sec. 8202. Child protection/alcohol and drug partnerships for children.
                     Subtitle D--Permanency Grants

Sec. 8301. Establishment of permanency grants program.
   Subtitle E--Addressing the Needs of Children Exposed to Domestic 
                                Violence

Sec. 8401. Findings.
Sec. 8402. Purpose.
Sec. 8403. Amendments to Acts addressing the needs of children exposed 
                            to domestic violence.
 Subtitle F--Enhancing Healthy Emotional Development in Young Children

Sec. 8501. Enhancing healthy emotional development.
              TITLE IX--SUCCESSFUL TRANSITION TO ADULTHOOD

                     Subtitle A--Youth Development

              Chapter 1--Short Title; Policy; Definitions

Sec. 9001. Short title.
Sec. 9002. A national youth policy.
Sec. 9003. Definitions.
           Chapter 2--Grants For State and Community Programs

Sec. 9101. Purpose.
Sec. 9102. Authorization of appropriations.
Sec. 9103. Allotments to States.
Sec. 9104. State youth development agencies and youth development 
                            areas.
Sec. 9105. State youth development plans.
Sec. 9106. Distribution of funds for State activities and area 
                            allocations.
Sec. 9107. Youth development consortia.
Sec. 9108. Area youth development plans.
Sec. 9109. Grants and contracts to eligible entities.
Sec. 9110. Eligible entities.
Sec. 9111. Applications.
Sec. 9112. Youth development programs.
                       Chapter 3--Accountability

Sec. 9201. Purposes.
Sec. 9202. Federal level accountability.
Sec. 9203. State level accountability.
Sec. 9204. Local level accountability.
Sec. 9205. State audit.
             Chapter 4--Training, Research, and Evaluation

Sec. 9301. Purpose.
Sec. 9302. Grants and contracts.
Sec. 9303. Authorization of appropriations.
           Subtitle E--Coordination of National Youth Policy

Sec. 9401. Coordinating Council for National Youth Policy.
                       Subtitle B--Youth Programs

Sec. 9201. Americorps.
Sec. 9202. Youthbuild program.
Sec. 9203. Youth workforce investment activities.
Sec. 9204. Transition training for reintegrating youth offenders.
                 TITLE X--SAFE START--JUVENILE JUSTICE

       Subtitle A--Juvenile Delinquency Prevention and Protection

Sec. 10001. Definition of juvenile.
Sec. 10002. State plan allocation.
Sec. 10003. State plan requirements.
               Subtitle B--Mental Health Juvenile Justice

Sec. 10101. Short title.
Sec. 10102. Training of justice system personnel.
Sec. 10103. Block grant funding for treatment and diversion programs.
Sec. 10104. Initiative for comprehensive, intersystem programs.
Sec. 10105. Federal Coordinating Council on the Criminalization of 
                            Juveniles With Mental Disorders.
Sec. 10106. Mental health screening and treatment for prisoners.
Sec. 10107. Inapplicability of amendments.
            Subtitle C--Juvenile Justice and Accountability

Sec. 10201. Increase in funding for title III of the JJDPA.
Sec. 10202. Funding for the services for youthful offenders.
                    TITLE XI--SAFE START--GUN SAFETY

               Subtitle A--Closing the Gun Show Loophole

Sec. 11001. Extension of Brady background checks to gun shows.
                     Subtitle B--Child Safety Locks

Sec. 11101. Requirement of child handgun safety locks.
                 Subtitle C--Unlawful Weapons Transfers

Sec. 11201. Unlawful weapons transfers to juveniles.
         Subtitle D--Large Capacity Ammunition Feeding Devices

Sec. 11301. Ban on importing large capacity ammunition feeding devices.
                  Subtitle E--Enforcement of Gun Laws

Sec. 11401. Enhance enforcement of gun violence laws. 
                       Subtitle F--Miscellaneous

Sec. 11501. Study of marketing practices of the firearms industry.
Sec. 11502. Regulation of internet firearms transfers.
Sec. 11503. Reduction of gun trafficking.
                        TITLE XII--MISCELLANEOUS

Sec. 12001. Advisory Committee on Private Sector Support for Children 
                            and Families.
Sec. 12002. Improvement of data collection and reporting regarding 
                            children and families.

          TITLE I--HEALTHY START--CHILDREN'S HEALTH INSURANCE

                Subtitle A--Children's Health Insurance

SEC. 1001. MEDIKIDS HEALTH INSURANCE.

    (a) Short Title of Subtitle.--This subtitle may be cited as the 
``MediKids Health Insurance Act of 2003''.
    (b) Findings.--Congress finds the following:
            (1) More than 11 million American children are uninsured.
            (2) Children who are uninsured receive less medical care 
        and less preventive care and have a poorer level of health, 
        which result in lifetime costs to themselves and to the entire 
        American economy.
            (3) Although SCHIP and Medicaid are successfully extending 
        a health coverage safety net to a growing portion of the 
        vulnerable low-income population of uninsured children, we now 
        see that they alone cannot achieve 100 percent health insurance 
        coverage for our nation's children due to inevitable gaps 
        during outreach and enrollment, fluctuations in eligibility, 
        and variations in access to private insurance at all income 
        levels.
            (4) As all segments of our society continue to become more 
        and more transient, with many changes in employment over the 
        working lifetime of parents, the need for a reliable safety net 
        of health insurance which follows children across State lines, 
        already a major problem for the children of migrant and 
        seasonal farmworkers, will become a major concern for all 
        families in the United States.
            (5) The Medicare program has successfully evolved over the 
        years to provide a stable, universal source of health insurance 
        for the nation's disabled and those over age 65, and therefore 
        provides a tested model for designing a program to reach out to 
        America's children.
            (6) The problem of insuring 100 percent of all American 
        children could be gradually solved by automatically enrolling 
        all children born after December 31, 2004, in a program modeled 
        after Medicare (and to be known as ``MediKids''), and allowing 
        those children to be transferred into other equivalent or 
        better insurance programs, including either private insurance, 
        SCHIP, or Medicaid, if they are eligible to do so, but 
        maintaining the child's default enrollment in MediKids for any 
        times when the child's access to other sources of insurance is 
        lost.
            (7) A family's freedom of choice to use other insurers to 
        cover children would not be interfered with in any way, and 
        children eligible for SCHIP and Medicaid would continue to be 
        enrolled in those programs, but the underlying safety net of 
        MediKids would always be available to cover any gaps in 
        insurance due to changes in medical condition, employment, 
        income, or marital status, or other changes affecting a child's 
        access to alternate forms of insurance.
            (8) The MediKids program can be administered without 
        impacting the finances or status of the existing Medicare 
        program.
            (9) The MediKids benefit package can be tailored to the 
        special needs of children and updated over time.
            (10) The financing of the program can be administered 
        without difficulty by a yearly payment of affordable premiums 
        through a family's tax filing (or adjustment of a family's 
        earned income tax credit).
            (11) The cost of the program will gradually rise as the 
        number of children using MediKids as the insurer of last resort 
        increases, and a future Congress always can accelerate or slow 
        down the enrollment process as desired, while the societal 
        costs for emergency room usage, lost productivity and work 
        days, and poor health status for the next generation of 
        Americans will decline.
            (12) Over time 100 percent of American children will always 
        have basic health insurance, and we can therefore expect a 
        healthier, more equitable, and more productive society.

SEC. 1002. BENEFITS FOR ALL CHILDREN BORN AFTER 2002.

    (a) In General.--The Social Security Act is amended by adding at 
the end the following new title:

                     ``TITLE XXII--MEDIKIDS PROGRAM

``SEC. 2201. ELIGIBILITY.

    ``(a) Eligibility of Individuals Born After December 31, 2004; All 
Children Under 23 Years of Age in Sixth Year.--An individual who meets 
the following requirements with respect to a month is eligible to 
enroll under this title with respect to such month:
            ``(1) Age.--
                    ``(A) First year.--During the first year in which 
                this title is effective, the individual has not 
                attained 6 years of age.
                    ``(B) Second year.--During the second year in which 
                this title is effective, the individual has not 
                attained 11 years of age.
                    ``(C) Third year.--During the third year in which 
                this title is effective, the individual has not 
                attained 16 years of age.
                    ``(D) Fourth year.--During the fourth year in which 
                this title is effective, the individual has not 
                attained 21 years of age.
                    ``(E) Fifth and subsequent years.--During the fifth 
                year in which this title is effective and each 
                subsequent year, the individual has not attained 23 
                years of age.
            ``(2) Citizenship.--The individual is a citizen or national 
        of the United States or is lawfully residing in the United 
        States.
    ``(b) Enrollment Process.--An individual may enroll in the program 
established under this title only in such manner and form as may be 
prescribed by regulations, and only during an enrollment period 
prescribed by the Secretary consistent with the provisions of this 
section. Such regulations shall provide a process under which--
            ``(1) individuals who are born in the United States after 
        December 31, 2002, are deemed to be enrolled at the time of 
        birth and a parent or guardian of such an individual is 
        permitted to pre-enroll in the month prior to the expected 
        month of birth;
            ``(2) individuals who are born outside the United States 
        after such date and who become eligible to enroll by virtue of 
        immigration into (or an adjustment of immigration status in) 
        the United States are deemed enrolled at the time of entry or 
        adjustment of status;
            ``(3) eligible individuals may otherwise be enrolled at 
        such other times and manner as the Secretary shall specify, 
        including the use of outstationed eligibility sites as 
        described in section 1902(a)(55)(A) and the use of presumptive 
        eligibility provisions like those described in section 1920A; 
        and
            ``(4) at the time of automatic enrollment of a child, the 
        Secretary provides for issuance to a parent or custodian of the 
        individual a card evidencing coverage under this title and for 
        a description of such coverage.
The provisions of section 1837(h) apply with respect to enrollment 
under this title in the same manner as they apply to enrollment under 
part B of title XVIII.
    ``(c) Date Coverage Begins.--
            ``(1) In general.--The period during which an individual is 
        entitled to benefits under this title shall begin as follows, 
        but in no case earlier than January 1, 2005:
                    ``(A) In the case of an individual who is enrolled 
                under paragraph (1) or (2) of subsection (b), the date 
                of birth or date of obtaining appropriate citizenship 
                or immigration status, as the case may be.
                    ``(B) In the case of an another individual who 
                enrolls (including pre-enrolls) before the month in 
                which the individual satisfies eligibility for 
                enrollment under subsection (a), the first day of such 
                month of eligibility.
                    ``(C) In the case of an another individual who 
                enrolls during or after the month in which the 
                individual first satisfies eligibility for enrollment 
                under such subsection, the first day of the following 
                month.
            ``(2) Authority to provide for partial months of 
        coverage.--Under regulations, the Secretary may, in the 
        Secretary's discretion, provide for coverage periods that 
        include portions of a month in order to avoid lapses of 
        coverage.
            ``(3) Limitation on payments.--No payments may be made 
        under this title with respect to the expenses of an individual 
        enrolled under this title unless such expenses were incurred by 
        such individual during a period which, with respect to the 
        individual, is a coverage period under this section.
    ``(d) Expiration of Eligibility.--An individual's coverage period 
under this part shall continue until the individual's enrollment has 
been terminated because the individual no longer meets the requirements 
of subsection (a) (whether because of age or change in immigration 
status).
    ``(e) Entitlement to MediKids Benefits for Enrolled Individuals.--
An individual enrolled under this section is entitled to the benefits 
described in section 2202.
    ``(f) Low-Income Information.--At the time of enrollment of a child 
under this title, the Secretary shall make an inquiry as to whether or 
not the family income of the family that includes the child is less 
than 150 percent of the poverty line for a family of the size involved. 
If the family income is below such level, the Secretary shall encode in 
the identification card issued in connection with eligibility under 
this title a code indicating such fact. The Secretary also shall 
provide for a toll-free telephone line at which providers can verify 
whether or not such a child is in a family the income of which is below 
such level.
    ``(g) Construction.--Nothing in this title shall be construed as 
requiring (or preventing) an individual who is enrolled under this 
section from seeking medical assistance under a State medicaid plan 
under title XIX or child health assistance under a State child health 
plan under title XXI.

``SEC. 2202. BENEFITS.

    ``(a) Secretarial Specification of Benefit Package.--
            ``(1) In general.--The Secretary shall specify the benefits 
        to be made available under this title consistent with the 
        provisions of this section and in a manner designed to meet the 
        health needs of children.
            ``(2) Updating.--The Secretary shall update the 
        specification of benefits over time to ensure the inclusion of 
        age-appropriate benefits as the enrollee population gets older.
            ``(3) Annual updating.--The Secretary shall establish 
        procedures for the annual review and updating of such benefits 
        to account for changes in medical practice, new information 
        from medical research, and other relevant developments in 
        health science.
            ``(4) Input.--The Secretary shall seek the input of the 
        pediatric community in specifying and updating such benefits.
            ``(5) Limitation on updating.--In no case shall updating of 
        benefits under this subsection result in a failure to provide 
        benefits required under subsection (b).
    ``(b) Inclusion of Certain Benefits.--
            ``(1) Medicare core benefits.--Such benefits shall include 
        (to the extent consistent with other provisions of this 
        section) at least the same benefits (including coverage, 
        access, availability, duration, and beneficiary rights) that 
        are available under parts A and B of title XVIII.
            ``(2) All required medicaid benefits.--Such benefits shall 
        also include all items and services for which medical 
        assistance is required to be provided under section 
        1902(a)(10)(A) to individuals described in such section, 
        including early and periodic screening, diagnostic services, 
        and treatment services.
            ``(3) Inclusion of prescription drugs.--Such benefits also 
        shall include (as specified by the Secretary) prescription 
        drugs and biologicals.
            ``(4) Cost-sharing.--
                    ``(A) In general.--Subject to subparagraph (B), 
                such benefits also shall include the cost-sharing (in 
                the form of deductibles, coinsurance, and copayments) 
                applicable under title XVIII with respect to comparable 
                items and services, except that no cost-sharing shall 
                be imposed with respect to early and periodic screening 
                and diagnostic services included under paragraph (2).
                    ``(B) No cost-sharing for lowest income children.--
                Such benefits shall not include any cost-sharing for 
                children in families the income of which (as determined 
                for purposes of section 1905(p)) does not exceed 150 
                percent of the official income poverty line (referred 
                to in such section) applicable to a family of the size 
                involved.
                    ``(C) Refundable credit for cost-sharing for other 
                low-income children.--For a refundable credit for cost-
                sharing in the case of children in certain families, 
                see section 35A of the Internal Revenue Code of 1986.
    ``(c) Payment Schedule.--The Secretary, with the assistance of the 
Medicare Payment Advisory Commission, shall develop and implement a 
payment schedule for benefits covered under this title. To the extent 
feasible, such payment schedule shall be consistent with comparable 
payment schedules and reimbursement methodologies applied under parts A 
and B of title XVIII.
    ``(d) Input.--The Secretary shall specify such benefits and payment 
schedules only after obtaining input from appropriate child health 
providers and experts.
    ``(e) Enrollment in Health Plans.--The Secretary shall provide for 
the offering of benefits under this title through enrollment in a 
health benefit plan that meets the same (or similar) requirements as 
the requirements that apply to Medicare+Choice plans under part C of 
title XVIII. In the case of individuals enrolled under this title in 
such a plan, the Medicare+Choice capitation rate described in section 
1853(c) shall be adjusted in an appropriate manner to reflect 
differences between the population served under this title and the 
population under title XVIII.

``SEC. 2203. PREMIUMS.

    ``(a) Amount of Monthly Premiums.--
            ``(1) In general.--The Secretary shall, during September of 
        each year (beginning with 2004), establish a monthly MediKids 
        premium. Subject to paragraph (2), the monthly MediKids premium 
        for a year is equal to \1/12\ of the annual premium rate 
        computed under subsection (b).
            ``(2) Elimination of monthly premium for demonstration of 
        equivalent coverage (including coverage under low-income 
        programs).--The amount of the monthly premium imposed under 
        this section for an individual for a month shall be zero in the 
        case of an individual who demonstrates to the satisfaction of 
        the Secretary that the individual has basic health insurance 
        coverage for that month the actuarial value of which, as 
        determined by the Secretary, is at least actuarially equivalent 
        to the benefits available under this title. For purposes of the 
        previous sentence enrollment in a medicaid plan under title 
        XIX, a State child health insurance plan under title XXI, or 
        under the medicare program under title XVIII is deemed to 
        constitute basic health insurance coverage described in such 
        sentence.
    ``(b) Annual Premium.--
            ``(1) National, per capita average.--The Secretary shall 
        estimate the average, annual per capita amount that would be 
        payable under this title with respect to individuals residing 
        in the United States who meet the requirement of section 
        2201(a)(1) as if all such individuals were eligible for (and 
        enrolled) under this title during the entire year (and assuming 
        that section 1862(b)(2)(A)(i) did not apply).
            ``(2) Annual premium.--Subject to subsection (d), the 
        annual premium under this subsection for months in a year is 
        equal to 25 percent of the average, annual per capita amount 
        estimated under paragraph (1) for the year.
    ``(c) Payment of Monthly Premium.--
            ``(1) Period of payment.--In the case of an individual who 
        participates in the program established by this title, subject 
        to subsection (d), the monthly premium shall be payable for the 
        period commencing with the first month of the individual's 
        coverage period and ending with the month in which the 
        individual's coverage under this title terminates.
            ``(2) Collection through tax return.--For provisions 
        providing for the payment of monthly premiums under this 
        subsection, see section 59B of the Internal Revenue Code of 
        1986.
            ``(3) Protections against fraud and abuse.--The Secretary 
        shall develop, in coordination with States and other health 
        insurance issuers, administrative systems to ensure that claims 
        which are submitted to more than one payor are coordinated and 
        duplicate payments are not made.
    ``(d) Reduction in Premium for Certain Low-Income Families.--For 
provisions reducing the premium under this section for certain low-
income families, see section 59B(c) of the Internal Revenue Code of 
1986.

``SEC. 2204. MEDIKIDS TRUST FUND.

    ``(a) Establishment of Trust Fund.--
            ``(1) In general.--There is hereby created on the books of 
        the Treasury of the United States a trust fund to be known as 
        the `MediKids Trust Fund' (in this section referred to as the 
        `Trust Fund'). The Trust Fund shall consist of such gifts and 
        bequests as may be made as provided in section 201(i)(1) and 
        such amounts as may be deposited in, or appropriated to, such 
        fund as provided in this title.
            ``(2) Premiums.--Premiums collected under section 2203 
        shall be transferred to the Trust Fund.
    ``(b) Incorporation of Provisions.--
            ``(1) In general.--Subject to paragraph (2), subsections 
        (b) through (i) of section 1841 shall apply with respect to the 
        Trust Fund and this title in the same manner as they apply with 
        respect to the Federal Supplementary Medical Insurance Trust 
        Fund and part B, respectively.
            ``(2) Miscellaneous references.--In applying provisions of 
        section 1841 under paragraph (1)--
                    ``(A) any reference in such section to `this part' 
                is construed to refer to title XXII;
                    ``(B) any reference in section 1841(h) to section 
                1840(d) and in section 1841(i) to sections 1840(b)(1) 
                and 1842(g) are deemed references to comparable 
                authority exercised under this title;
                    ``(C) payments may be made under section 1841(g) to 
                the Trust Funds under sections 1817 and 1841 as 
                reimbursement to such funds for payments they made for 
                benefits provided under this title; and
                    ``(D) the Board of Trustees of the MediKids Trust 
                Fund shall be the same as the Board of Trustees of the 
                Federal Supplementary Medical Insurance Trust Fund.

``SEC. 2205. OVERSIGHT AND ACCOUNTABILITY.

    ``(a) Through Annual Reports of Trustees.--The Board of Trustees of 
the MediKids Trust Fund under section 2204(b)(1) shall report on an 
annual basis to Congress concerning the status of the Trust Fund and 
the need for adjustments in the program under this title to maintain 
financial solvency of the program under this title.
    ``(b) Periodic GAO Reports.--The Comptroller General of the United 
States shall periodically submit to Congress reports on the adequacy of 
the financing of coverage provided under this title. The Comptroller 
General shall include in such report such recommendations for 
adjustments in such financing and coverage as the Comptroller General 
deems appropriate in order to maintain financial solvency of the 
program under this title.

``SEC. 2206. INCLUSION OF CARE COORDINATION SERVICES.

    ``(a) In General.--
            ``(1) Program authority.--The Secretary, beginning in 2004, 
        may implement a care coordination services program in 
        accordance with the provisions of this section under which, in 
        appropriate circumstances, eligible individuals may elect to 
        have health care services covered under this title managed and 
        coordinated by a designated care coordinator.
            ``(2) Administration by contract.--The Secretary may 
        administer the program under this section through a contract 
        with an appropriate program administrator.
            ``(3) Coverage.--Care coordination services furnished in 
        accordance with this section shall be treated under this title 
        as if they were included in the definition of medical and other 
        health services under section 1861(s) and benefits shall be 
        available under this title with respect to such services 
        without the application of any deductible or coinsurance.
    ``(b) Eligibility Criteria; Identification and Notification of 
Eligible Individuals.--
            ``(1) Individual eligibility criteria.--The Secretary shall 
        specify criteria to be used in making a determination as to 
        whether an individual may appropriately be enrolled in the care 
        coordination services program under this section, which shall 
        include at least a finding by the Secretary that for cohorts of 
        individuals with characteristics identified by the Secretary, 
        professional management and coordination of care can reasonably 
        be expected to improve processes or outcomes of health care and 
        to reduce aggregate costs to the programs under this title.
            ``(2) Procedures to facilitate enrollment.--The Secretary 
        shall develop and implement procedures designed to facilitate 
        enrollment of eligible individuals in the program under this 
        section.
    ``(c) Enrollment of Individuals.--
            ``(1) Secretary's determination of eligibility.--The 
        Secretary shall determine the eligibility for services under 
        this section of individuals who are enrolled in the program 
        under this section and who make application for such services 
        in such form and manner as the Secretary may prescribe.
            ``(2) Enrollment period.--
                    ``(A) Effective date and duration.--Enrollment of 
                an individual in the program under this section shall 
                be effective as of the first day of the month following 
                the month in which the Secretary approves the 
                individual's application under paragraph (1), shall 
                remain in effect for one month (or such longer period 
                as the Secretary may specify), and shall be 
                automatically renewed for additional periods, unless 
                terminated in accordance with such procedures as the 
                Secretary shall establish by regulation. Such 
                procedures shall permit an individual to disenroll for 
                cause at any time and without cause at re-enrollment 
                intervals.
                    ``(B) Limitation on reenrollment.--The Secretary 
                may establish limits on an individual's eligibility to 
                reenroll in the program under this section if the 
                individual has disenrolled from the program more than 
                once during a specified time period.
    ``(d) Program.--The care coordination services program under this 
section shall include the following elements:
            ``(1) Basic care coordination services.--
                    ``(A) In general.--Subject to the cost-
                effectiveness criteria specified in subsection (b)(1), 
                except as otherwise provided in this section, enrolled 
                individuals shall receive services described in section 
                1905(t)(1) and may receive additional items and 
                services as described in subparagraph (B).
                    ``(B) Additional benefits.--The Secretary may 
                specify additional benefits for which payment would not 
                otherwise be made under this title that may be 
                available to individuals enrolled in the program under 
                this section (subject to an assessment by the care 
                coordinator of an individual's circumstance and need 
                for such benefits) in order to encourage enrollment in, 
                or to improve the effectiveness of, such program.
            ``(2) Care coordination requirement.--Notwithstanding any 
        other provision of this title, the Secretary may provide that 
        an individual enrolled in the program under this section may be 
        entitled to payment under this title for any specified health 
        care items or services only if the items or services have been 
        furnished by the care coordinator, or coordinated through the 
        care coordination services program. Under such provision, the 
        Secretary shall prescribe exceptions for emergency medical 
        services as described in section 1852(d)(3), and other 
        exceptions determined by the Secretary for the delivery of 
        timely and needed care.
    ``(e) Care Coordinators.--
            ``(1) Conditions of participation.--In order to be 
        qualified to furnish care coordination services under this 
        section, an individual or entity shall--
                    ``(A) be a health care professional or entity 
                (which may include physicians, physician group 
                practices, or other health care professionals or 
                entities the Secretary may find appropriate) meeting 
                such conditions as the Secretary may specify;
                    ``(B) have entered into a care coordination 
                agreement; and
                    ``(C) meet such criteria as the Secretary may 
                establish (which may include experience in the 
                provision of care coordination or primary care 
                physician's services).
            ``(2) Agreement term; payment.--
                    ``(A) Duration and renewal.--A care coordination 
                agreement under this subsection shall be for one year 
                and may be renewed if the Secretary is satisfied that 
                the care coordinator continues to meet the conditions 
                of participation specified in paragraph (1).
                    ``(B) Payment for services.--The Secretary may 
                negotiate or otherwise establish payment terms and 
                rates for services described in subsection (d)(1).
                    ``(C) Liability.--Case coordinators shall be 
                subject to liability for actual health damages which 
                may be suffered by recipients as a result of the care 
                coordinator's decisions, failure or delay in making 
                decisions, or other actions as a care coordinator.
                    ``(D) Terms.--In addition to such other terms as 
                the Secretary may require, an agreement under this 
                section shall include the terms specified in 
                subparagraphs (A) through (C) of section 1905(t)(3).

``SEC. 2207. ADMINISTRATION AND MISCELLANEOUS.

    ``(a) In General.--Except as otherwise provided in this title--
            ``(1) the Secretary shall enter into appropriate contracts 
        with providers of services, other health care providers, 
        carriers, and fiscal intermediaries, taking into account the 
        types of contracts used under title XVIII with respect to such 
        entities, to administer the program under this title;
            ``(2) individuals enrolled under this title shall be 
        treated for purposes of title XVIII as though the individual 
        were entitled to benefits under part A and enrolled under part 
        B of such title;
            ``(3) benefits described in section 2202 that are payable 
        under this title to such individuals shall be paid in a manner 
        specified by the Secretary (taking into account, and based to 
        the greatest extent practicable upon, the manner in which they 
        are provided under title XVIII);
            ``(4) provider participation agreements under title XVIII 
        shall apply to enrollees and benefits under this title in the 
        same manner as they apply to enrollees and benefits under title 
        XVIII; and
            ``(5) individuals entitled to benefits under this title may 
        elect to receive such benefits under health plans in a manner, 
        specified by the Secretary, similar to the manner provided 
        under part C of title XVIII.
    ``(b) Coordination With Medicaid and SCHIP.--Notwithstanding any 
other provision of law, individuals entitled to benefits for items and 
services under this title who also qualify for benefits under title XIX 
or XXI or any other Federally funded program may continue to qualify 
and obtain benefits under such other title or program, and in such case 
such an individual shall elect either--
            ``(1) such other title or program to be primary payor to 
        benefits under this title, in which case no benefits shall be 
        payable under this title and the monthly premium under section 
        2203 shall be $0; or
            ``(2) benefits under this title shall be primary payor to 
        benefits provided under such program or title, in which case 
        the Secretary shall enter into agreements with States as may be 
        appropriate to provide that, in the case of such individuals, 
        the benefits under titles XIX and XXI or such other program 
        (including reduction of cost-sharing) are provided on a `wrap-
        around' basis to the benefits under this title.''.
    (b) Conforming Amendments to Social Security Act Provisions.--
            (1) Section 201(i)(1) of the Social Security Act (42 U.S.C. 
        401(i)(1)) is amended by striking ``or the Federal 
        Supplementary Medical Insurance Trust Fund'' and inserting 
        ``the Federal Supplementary Medical Insurance Trust Fund, or 
        the MediKids Trust Fund''.
            (2) Section 201(g)(1)(A) of such Act (42 U.S.C. 
        401(g)(1)(A)) is amended by striking `` and the Federal 
        Supplementary Medical Insurance Trust Fund established by title 
        XVIII'' and inserting ``, the Federal Supplementary Medical 
        Insurance Trust Fund, and the MediKids Trust Fund established 
        by title XVIII''.
            (3) Section 1853(c) of such Act (42 U.S.C. 1395w-23(c)) is 
        amended--
                    (A) in paragraph (1), by striking ``and (7)'' and 
                inserting ``, (7), and (8)'', and
                    (B) by adding at the end the following:
            ``(8) Adjustment for medikids.--In applying this subsection 
        with respect to individuals entitled to benefits under title 
        XXII, the Secretary shall provide for an appropriate adjustment 
        in the Medicare+Choice capitation rate as may be appropriate to 
        reflect differences between the population served under such 
        title and the population under parts A and B.''.
    (c) Maintenance of Medicaid Eligibility and Benefits for 
Children.--
            (1) In general.--In order for a State to continue to be 
        eligible for payments under section 1903(a) of the Social 
        Security Act (42 U.S.C. 1396b(a))--
                    (A) the State may not reduce standards of 
                eligibility, or benefits, provided under its State 
                medicaid plan under title XIX of the Social Security 
                Act or under its State child health plan under title 
                XXI of such Act for individuals under 23 years of age 
                below such standards of eligibility, and benefits, in 
                effect on the date of the enactment of this Act; and
                    (B) the State shall demonstrate to the satisfaction 
                of the Secretary of Health and Human Services that any 
                savings in State expenditures under title XIX or XXI of 
                the Social Security Act that results from children from 
                enrolling under title XXII of such Act shall be used in 
                a manner that improves services to beneficiaries under 
                title XIX of such Act, such as through increases in 
                provider payment rates, expansion of eligibility, 
                improved nurse and nurse aide staffing and improved 
                inspections of nursing facilities, and coverage of 
                additional services.
            (2) MediKids as primary payor.--In applying title XIX of 
        the Social Security Act, the MediKids program under title XXII 
        of such Act shall be treated as a primary payor in cases in 
        which the election described in section 2207(b)(2) of such Act, 
        as added by subsection (a), has been made.
    (d) Expansion of MedPAC Membership to 19.--
            (1) In general.--Section 1805(c) of the Social Security Act 
        (42 U.S.C. 1395b-6(c)) is amended--
                    (A) in paragraph (1), by striking ``17'' and 
                inserting ``19''; and
                    (B) in paragraph (2)(B), by inserting ``experts in 
                children's health,'' after ``other health 
                professionals,''.
            (2) Initial terms of additional members.--
                    (A) In general.--For purposes of staggering the 
                initial terms of members of the Medicare Payment 
                Advisory Commission under section 1805(c)(3) of the 
                Social Security Act (42 U.S.C. 1395b-6(c)(3)), the 
                initial terms of the 2 additional members of the 
                Commission provided for by the amendment under 
                subsection (a)(1) are as follows:
                            (i) One member shall be appointed for 1 
                        year.
                            (ii) One member shall be appointed for 2 
                        years.
                    (B) Commencement of terms.--Such terms shall begin 
                on January 1, 2004.

SEC. 1003. MEDIKIDS PREMIUM.

    (a) General Rule.--Subchapter A of chapter 1 of the Internal 
Revenue Code of 1986 (relating to determination of tax liability) is 
amended by adding at the end the following new part:

                     ``PART VIII--MEDIKIDS PREMIUM

                              ``Sec. 59B. MediKids premium.

``SEC. 59B. MEDIKIDS PREMIUM.

    ``(a) Imposition of Tax.--In the case of an individual to whom this 
section applies, there is hereby imposed (in addition to any other tax 
imposed by this subtitle) a MediKids premium for the taxable year.
    ``(b) Individuals Subject to Premium.--
            ``(1) In general.--This section shall apply to an 
        individual if the taxpayer has a MediKid at any time during the 
        taxable year.
            ``(2) MediKid.--For purposes of this section, the term 
        `MediKid' means, with respect to a taxpayer, any individual 
        with respect to whom the taxpayer is required to pay a premium 
        under section 2203(c) of the Social Security Act for any month 
        of the taxable year.
    ``(c) Amount of Premium.--For purposes of this section, the 
MediKids premium for a taxable year is the sum of the monthly premiums 
under section 2203 of the Social Security Act for months in the taxable 
year.
    ``(d) Exceptions Based on Adjusted Gross Income.--
            ``(1) Exemption for very low-income taxpayers.--
                    ``(A) In general.--No premium shall be imposed by 
                this section on any taxpayer having an adjusted gross 
                income not in excess of the exemption amount.
                    ``(B) Exemption amount.--For purposes of this 
                paragraph, with respect to a family, the exemption 
                amount is the amount equal to 150 percent of 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 Omnibus Budget 
                Reconciliation Act of 1981) applicable to a family of 
                the size involved.
                    ``(C) Phaseout of exemption.--In the case of a 
                taxpayer having an adjusted gross income which exceeds 
                the exemption amount but does not exceed twice the 
                exemption amount, the premium shall be the amount which 
                bears the same ratio to the premium which would (but 
                for this subparagraph) apply to the taxpayer as such 
                excess bears to the exemption amount.
            ``(2) Premium limited to 5 percent of adjusted gross 
        income.--In no event shall any taxpayer be required to pay a 
        premium under this section in excess of an amount equal to 5 
        percent of the taxpayer's adjusted gross income.
    ``(e) Coordination With Other Provisions.--
            ``(1) Not treated as medical expense.--For purposes of this 
        chapter, any premium paid under this section shall not be 
        treated as expense for medical care.
            ``(2) Not treated as tax for certain purposes.--The premium 
        paid under this section shall not be treated as a tax imposed 
        by this chapter for purposes of determining--
                    ``(A) the amount of any credit allowable under this 
                chapter, or
                    ``(B) the amount of the minimum tax imposed by 
                section 55.
            ``(3) Treatment under subtitle f.--For purposes of subtitle 
        F, the premium paid under this section shall be treated as if 
        it were a tax imposed by section 1.''.
    (b) Technical Amendments.--
            (1) Subsection (a) of section 6012 of such Code is amended 
        by inserting after paragraph (9) the following new paragraph:
            ``(10) Every individual liable for a premium under section 
        59B.''.
            (2) The table of parts for subchapter A of chapter 1 of 
        such Code is amended by adding at the end the following new 
        item:

                              ``Part VIII. MediKids premium.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to months beginning after December 2004, in taxable years ending 
after such date.

SEC. 1004. REFUNDABLE CREDIT FOR COST-SHARING EXPENSES UNDER MEDIKIDS 
              PROGRAM.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by inserting after section 35 the following new section:

``SEC. 35A. COST-SHARING EXPENSES UNDER MEDIKIDS PROGRAM.

    ``(a) Allowance of Credit.--In the case of an individual who has a 
MediKid (as defined in section 59B) at any time during the taxable 
year, there shall be allowed as a credit against the tax imposed by 
this subtitle an amount equal to 50 percent of the amount paid by the 
taxpayer during the taxable year as cost-sharing under section 
2202(b)(4) of the Social Security Act.
    ``(b) Limitation Based on Adjusted Gross Income.--The amount of the 
credit which would (but for this subsection) be allowed under this 
section for the taxable year shall be reduced (but not below zero) by 
an amount which bears the same ratio to such amount of credit as the 
excess of the taxpayer's adjusted gross income for such taxable year 
over the exemption amount (as defined in section 59B(d)) bears to such 
exemption amount.''.
    (b) Technical Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``or 35A'' after ``35''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 25 the following new item:

                              ``Sec. 35A. Cost-sharing expenses under 
                                        MediKids program.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

SEC. 1005. REPORT ON LONG-TERM REVENUES.

    Within 1 year after the date of enactment of this title, the 
Secretary of the Treasury shall propose a gradual schedule of 
progressive tax changes to fund the program under title XXII of the 
Social Security Act, as the number of enrollees grows in the out-years.

   Subtitle B--Children's Health Insurance Eligibility Expansion and 
                        Enrollment Improvements

                   CHAPTER 1--ELIGIBILITY EXPANSIONS

                    Subchapter A--Medicaid and SCHIP

SEC. 1101. EXPANSION OF CHILDREN'S ELIGIBILITY FOR MEDICAID AND SCHIP.

    (a) Expansion of Income Eligibility Under SCHIP.--Section 
2110(c)(4) of the Social Security Act (42 U.S.C. 42 U.S.C. 
1397jj(c)(4)) is amended by striking ``200'' and inserting ``300''.
    (b) Mandatory Buy-In Coverage.--
            (1) Medicaid.--
                    (A) In general.--Section 1902(a)(10)(A)(i) of the 
                Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)) is 
                amended--
                            (i) by striking ``or'' at the end of 
                        subclause (VI);
                            (ii) by striking the semicolon at the end 
                        of subclause (VII) and insert ``, or''; and
                            (iii) by adding at the end the following:
                                    ``(VIII) who are children in 
                                families whose income exceeds 300 
                                percent of 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 Omnibus Budget 
                                Reconciliation Act of 1981) applicable 
                                to a family of the size involved 
                                subject, notwithstanding section 1916, 
                                to payment of premiums or other cost-
                                sharing charges (set on a sliding scale 
                                based on income) that the State may 
                                determine;''.
                    (B) Conforming amendment.--Section 1903(f)(4) of 
                such Act (42 U.S.C. 1396b(f)(4)) is amended by 
                inserting ``1902(a)(10)(A)(i)(VIII),'' after 
                ``1902(a)(10)(A)(i)(VII),''.
            (2) SCHIP.--Section 2107(e)(1) of such Act (42 U.S.C. 
        1397gg(e)(1)) is amended by adding at the end the following new 
        subparagraph:
                    ``(E) Section 1902(a)(10)(A)(i)(VIII) (relating to 
                buy-in coverage for children whose family income 
                exceeds 300 percent of the poverty line).''.
    (c) Effective Date.--The amendments made by this section apply to 
medical assistance and child health assistance provided on or after 
October 1, 2003.

SEC. 1102. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE MEDICAID 
              PROGRAM AND TITLE XXI.

    (a) Medicaid Program.--Section 1903(v) of the Social Security Act 
(42 U.S.C. 1396b(v)) is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (4)''; and
            (2) by adding at the end the following:
    ``(4)(A) A State may elect (in a plan amendment under this title) 
to provide medical assistance under this title for aliens who are 
lawfully residing in the United States (including battered aliens 
described in section 431(c) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996) and who are otherwise eligible 
for such assistance, within any of the following eligibility 
categories:
            ``(i) Pregnant women.--Women during pregnancy (and during 
        the 60-day period beginning on the last day of the pregnancy).
            ``(ii) Children.--Children (as defined under such plan), 
        including optional targeted low-income children described in 
        section 1905(u)(2)(B).
    ``(B)(i) In the case of a State that has elected to provide medical 
assistance to a category of aliens under subparagraph (A), no debt 
shall accrue under an affidavit of support against any sponsor of such 
an alien on the basis of provision of assistance to such category and 
the cost of such assistance shall not be considered as an unreimbursed 
cost.
    ``(ii) The provisions of sections 401(a), 402(b), 403, and 421 of 
the Personal Responsibility and Work Opportunity Reconciliation Act of 
1996 shall not apply to a State that makes an election under 
subparagraph (A).''.
    (b) Title XXI.--Section 2107(e)(1) of the Social Security Act (42 
U.S.C. 1397gg(e)(1)) is amended by adding at the end the following:
                    ``(E) Section 1903(v)(4) (relating to optional 
                coverage of permanent resident alien children), but 
                only if the State has elected to apply such section to 
                that category of children under title XIX.''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2003, and apply to medical assistance and child 
health assistance furnished on or after such date.

                  Subchapter B--Family Opportunity Act

SEC. 1111. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT.

    (a) Short Title.--This subchapter may be cited as the ``Family 
Opportunity Act of 2003'' or the ``Dylan Lee James Act''.
    (b) Amendments to Social Security Act.--Except as otherwise 
specifically provided, whenever in this Act an amendment is expressed 
in terms of an amendment to or repeal of a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Social Security Act.

SEC. 1112. OPPORTUNITY FOR FAMILIES OF DISABLED CHILDREN TO PURCHASE 
              MEDICAID COVERAGE FOR SUCH CHILDREN.

    (a) State Option To Allow Families of Disabled Children To Purchase 
Medicaid Coverage for Such Children.--
            (1) In general.--Section 1902 (42 U.S.C. 1396a) is 
        amended--
                    (A) in subsection (a)(10)(A)(ii)--
                            (i) by striking ``or'' at the end of 
                        subclause (XVII);
                            (ii) by adding ``or'' at the end of 
                        subclause (XVIII); and
                            (iii) by adding at the end the following 
                        new subclause:
                                    ``(XIX) who are disabled children 
                                described in subsection (cc)(1);''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(cc)(1) Individuals described in this paragraph are individuals--
            ``(A) who have not attained 18 years of age;
            ``(B) who would be considered disabled under section 
        1614(a)(3)(C) (determined without regard to the reference to 
        age in that section) but for having earnings or deemed income 
        or resources (as determined under title XVI for children) that 
        exceed the requirements for receipt of supplemental security 
        income benefits; and
            ``(C) whose family income does not exceed such income level 
        as the State establishes and does not exceed--
                    ``(i) 300 percent of 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 Omnibus Budget Reconciliation Act of 
                1981) applicable to a family of the size involved; or
                    ``(ii) such higher percent of such poverty line as 
                a State may establish, except that no Federal financial 
                participation shall be provided under section 1903(a) 
                for any medical assistance provided to an individual 
                who would not be described in this subsection but for 
                this clause.''.
            (2) Interaction with employer-sponsored family coverage.--
        Section 1902(cc) (42 U.S.C. 1396a(cc)), as added by paragraph 
        (1), is amended by adding at the end the following new 
        paragraph:
    ``(2)(A) If an employer of a parent of an individual described in 
paragraph (1) offers family coverage under a group health plan (as 
defined in section 2791(a) of the Public Health Service Act), the State 
may--
            ``(i) require such parent to apply for, enroll in, and pay 
        premiums for, such coverage as a condition of such parent's 
        child being or remaining eligible for medical assistance under 
        subsection (a)(10)(A)(ii)(XIX) if the parent is determined 
        eligible for such coverage and the employer contributes at 
        least 50 percent of the total cost of annual premiums for such 
        coverage; and
            ``(ii) if such coverage is obtained--
                    ``(I) subject to paragraph (2) of section 1916(h), 
                reduce the premium imposed by the State under that 
                section (if any) in an amount that reasonably reflects 
                the premium contribution made by the parent for private 
                coverage on behalf of a child with a disability; and
                    ``(II) treat such coverage as a third party 
                liability under subsection (a)(25).
    ``(B) In the case of a parent to which subparagraph (A) applies, if 
the family income of such parent does not exceed 300 percent of the 
income official poverty line (referred to in paragraph (1)(C)(i)), a 
State may provide for payment of any portion of the annual premium for 
such family coverage that the parent is required to pay. Any payments 
made by the State under this subparagraph shall be considered, for 
purposes of section 1903(a), to be payments for medical assistance.''.
    (b) State Option To Impose Income-Related Premiums.--Section 1916 
(42 U.S.C. 1396o) is amended--
            (1) in subsection (a), by striking ``subsection (g)'' and 
        inserting ``subsections (g) and (h)''; and
            (2) by adding at the end the following new subsection:
    ``(h)(1) With respect to disabled children provided medical 
assistance under section 1902(a)(10)(A)(ii)(XIX), subject to paragraph 
(2), a State may (in a uniform manner for such children) require the 
families of such children to pay monthly premiums set on a sliding 
scale based on family income.
    ``(2) A premium requirement imposed under paragraph (1) may only 
apply to the extent that--
            ``(A) the aggregate amount of such premium and any premium 
        that the parent is required to pay for family coverage under 
        section 1902(cc)(2)(A)(i) does not exceed 5 percent of the 
        family's income; and
            ``(B) the requirement is imposed consistent with section 
        1902(cc)(2)(A)(ii)(I).
    ``(3) A State shall not require prepayment of a premium imposed 
pursuant to paragraph (1) and shall not terminate eligibility of a 
child under section 1902(a)(10)(A)(ii)(XIX) for medical assistance 
under this title on the basis of failure to pay any such premium until 
such failure continues for a period of not less than 60 days from the 
date on which the premium became past due. The State may waive payment 
of any such premium in any case where the State determines that 
requiring such payment would create an undue hardship.''.
    (c) Conforming Amendment.--Section 1903(f)(4) (42 U.S.C. 
1396b(f)(4)) is amended in the matter preceding subparagraph (A) by 
inserting ``1902(a)(10)(A)(ii)(XIX),'' after 
``1902(a)(10)(A)(ii)(XVIII),''.
    (d) Effective Date.--The amendments made by this section shall 
apply to medical assistance for items and services furnished on or 
after January 1, 2004.

SEC. 1113. TREATMENT OF INPATIENT PSYCHIATRIC HOSPITAL SERVICES FOR 
              INDIVIDUALS UNDER AGE 21 IN HOME OR COMMUNITY-BASED 
              SERVICES WAIVERS.

    (a) In General.--Section 1915(c) (42 U.S.C. 1396n(c)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by inserting ``, or 
                inpatient psychiatric hospital services for individuals 
                under age 21,'' after ``intermediate care facility for 
                the mentally retarded''; and
                    (B) in the second sentence, by inserting ``, or 
                inpatient psychiatric hospital services for individuals 
                under age 21'' before the period;
            (2) in paragraph (2)(B), by striking ``or services in an 
        intermediate care facility for the mentally retarded'' each 
        place it appears and inserting ``, services in an intermediate 
        care facility for the mentally retarded, or inpatient 
        psychiatric hospital services for individuals under age 21'';
            (3) by striking paragraph (2)(C) and inserting the 
        following:
            ``(C) such individuals who are determined to be likely to 
        require the level of care provided in a hospital, nursing 
        facility, or intermediate care facility for the mentally 
        retarded, or inpatient psychiatric hospital services for 
        individuals under age 21, are informed of the feasible 
        alternatives, if available under the waiver, at the choice of 
        such individuals, to the provision of inpatient hospital 
        services, nursing facility services, services in an 
        intermediate care facility for the mentally retarded, or 
        inpatient psychiatric hospital services for individuals under 
        age 21;''; and
            (4) in paragraph (7)(A)--
                    (A) by inserting ``, or inpatient psychiatric 
                hospital services for individuals under age 21,'' after 
                ``intermediate care facility for the mentally 
                retarded''; and
                    (B) by inserting ``, or who would require inpatient 
                psychiatric hospital services for individuals under age 
                21'' before the period.
    (b) Effective Date.--The amendments made by subsection (a) apply 
with respect to medical assistance provided on or after January 1, 
2003.

SEC. 1114. DEMONSTRATION OF COVERAGE UNDER THE MEDICAID PROGRAM OF 
              CHILDREN WITH POTENTIALLY SEVERE DISABILITIES.

    (a) State Application.--A State may apply to the Secretary of 
Health and Human Services (in this section referred to as the 
``Secretary'') for approval of a demonstration project (in this section 
referred to as a ``demonstration project'') under which up to a 
specified maximum number of children with a potentially severe 
disability (as defined in subsection (b)) are provided medical 
assistance under the State medicaid plan under title XIX of the Social 
Security Act (42 U.S.C. 1396 et seq.).
    (b) Child With a Potentially Severe Disability Defined.--
            (1) In general.--In this section, the term ``child with a 
        potentially severe disability'' means, with respect to a 
        demonstration project, an individual who--
                    (A) has not attained 21 years of age;
                    (B) has a physical or mental condition, disease, 
                disorder (including a congenital birth defect or a 
                metabolic condition), injury, or developmental 
                disability that was incurred before the individual 
                attained such age; and
                    (C) is reasonably expected, but for the receipt of 
                medical assistance under the State medicaid plan, to 
                reach the level of disability defined under section 
                1614(a)(3) of the Social Security Act (42 U.S.C. 
                1382c(a)(3)), (determined without regard to the 
                reference to age in subparagraph (C) of that section).
            (2) Exception.--Such term does not include an individual 
        who would be considered disabled under section 1614(a)(3)(C) of 
        the Social Security Act (42 U.S.C. 1382c(a)(3)(C)) (determined 
        without regard to the reference to age in that section).
    (c) Approval of Demonstration Projects.--
            (1) In general.--Subject to paragraph (3), the Secretary 
        shall approve applications under subsection (a) that meet the 
        requirements of paragraph (2) and such additional terms and 
        conditions as the Secretary may require. The Secretary may 
        waive the requirement of section 1902(a)(1) of the Social 
        Security Act (42 U.S.C. 1396a(a)(1)) to allow for sub-State 
        demonstrations.
            (2) Terms and conditions of demonstration projects.--The 
        Secretary may not approve a demonstration project under this 
        section unless the State provides assurances satisfactory to 
        the Secretary that the following conditions are or will be met:
                    (A) Independent evaluation.--The State provides for 
                an independent evaluation of the project to be 
                conducted during fiscal year 2006.
                    (B) Consultation for development of criteria.--The 
                State consults with appropriate pediatric health 
                professionals in establishing the criteria for 
                determining whether a child has a potentially severe 
                disability.
                    (C) Annual report.--The State submits an annual 
                report to the Secretary (in a uniform form and manner 
                established by the Secretary) on the use of funds 
                provided under the grant that includes the following:
                            (i) Enrollment and financial statistics 
                        on--
                                    (I) the total number of children 
                                with a potentially severe disability 
                                enrolled in the demonstration project, 
                                disaggregated by disability;
                                    (II) the services provided by 
                                category or code and the cost of each 
                                service so categorized or coded; and
                                    (III) the number of children 
                                enrolled in the demonstration project 
                                who also receive services through 
                                private insurance.
                            (ii) With respect to the report submitted 
                        for fiscal year 2008, the results of the 
                        independent evaluation conducted under 
                        subparagraph (A).
                            (iii) Such additional information as the 
                        Secretary may require.
            (3) Limitations on federal funding.--
                    (A) Appropriation.--
                            (i) In general.--Out of any funds in the 
                        Treasury not otherwise appropriated, there is 
                        appropriated to carry out this section--
                                    (I) $16,666,000 for each of fiscal 
                                years 2004 and 2005; and
                                    (II) $16,667,000 for each of fiscal 
                                years 2006 through 2009.
                            (ii) Budget authority.--Clause (i) 
                        constitutes budget authority in advance of 
                        appropriations Acts and represents the 
                        obligation of the Federal Government to provide 
                        for the payment of the amounts appropriated 
                        under clause (i).
                    (B) Limitation on payments.--In no case may--
                            (i) the aggregate amount of payments made 
                        by the Secretary to States under this section 
                        exceed $100,000,000;
                            (ii) the aggregate amount of payments made 
                        by the Secretary to States for administrative 
                        expenses relating to the evaluations and annual 
                        reports required under subparagraphs (A) and 
                        (C) of paragraph (2) exceed $2,000,000 of such 
                        $100,000,000; or
                            (iii) payments be provided by the Secretary 
                        for a fiscal year after fiscal year 2010.
                    (C) Funds allocated to states.--
                            (i) In general.--The Secretary shall 
                        allocate funds to States based on their 
                        applications and the availability of funds. In 
                        making such allocations, the Secretary shall 
                        ensure an equitable distribution of funds among 
                        States with large populations and States with 
                        small populations.
                            (ii) Availability.--Funds allocated to a 
                        State under a grant made under this section for 
                        a fiscal year shall remain available until 
                        expended.
                    (D) Funds not allocated to states.--Funds not 
                allocated to States in the fiscal year for which they 
                are appropriated shall remain available in succeeding 
                fiscal years for allocation by the Secretary using the 
                allocation formula established under this section.
                    (E) Payments to states.--The Secretary shall pay to 
                each State with a demonstration project approved under 
                this section, from its allocation under subparagraph 
                (C), an amount for each quarter equal to the Federal 
                medical assistance percentage (as defined in section 
                1905(b) of the Social Security Act (42 U.S.C. 
                1395d(b))) of expenditures in the quarter for medical 
                assistance provided to children with a potentially 
                severe disability.
    (d) Recommendation.--Not later than October 1, 2007, the Secretary 
shall submit a recommendation to the Committee on Commerce of the House 
of Representatives and the Committee on Finance of the Senate regarding 
whether the demonstration project established under this section should 
be continued after fiscal year 2009.
    (e) State Defined.--In this section, the term ``State'' has the 
meaning given such term for purposes of title XIX of the Social 
Security Act (42 U.S.C. 1396 et seq.).

SEC. 1115. DEVELOPMENT AND SUPPORT OF FAMILY-TO-FAMILY HEALTH 
              INFORMATION CENTERS.

    Section 501 (42 U.S.C. 701) is amended by adding at the end the 
following new subsection:
    ``(c)(1) In addition to amounts appropriated under subsection (a) 
and retained under section 502(a)(1) for the purpose of carrying out 
activities described in subsection (a)(2), there is appropriated to the 
Secretary, out of any money in the Treasury not otherwise appropriated, 
for the purpose of enabling the Secretary (through grants, contracts, 
or otherwise) to provide for special projects of regional and national 
significance for the development and support of family-to-family health 
information centers described in paragraph (2), $10,000,000 for each of 
fiscal years 2004 through 2009. Funds appropriated under this paragraph 
shall remain available until expended.
    ``(2) The family-to-family health information centers described in 
this paragraph are centers that--
            ``(A) assist families of children with disabilities or 
        special health care needs to make informed choices about health 
        care in order to promote good treatment decisions, cost-
        effectiveness, and improved health outcomes for such children;
            ``(B) provide information regarding the health care needs 
        of, and resources available for, children with disabilities or 
        special health care needs;
            ``(C) identify successful health delivery models for such 
        children;
            ``(D) develop with representatives of health care 
        providers, managed care organizations, health care purchasers, 
        and appropriate State agencies a model for collaboration 
        between families of such children and health professionals;
            ``(E) provide training and guidance regarding caring for 
        such children;
            ``(F) conduct outreach activities to the families of such 
        children, health professionals, schools, and other appropriate 
        entities and individuals; and
            ``(G) are staffed by families of children with disabilities 
        or special health care needs who have expertise in Federal and 
        State public and private health care systems and health 
        professionals.
    ``(3) The provisions of this title that are applicable to the funds 
made available to the Secretary under section 502(a)(1) apply in the 
same manner to funds made available to the Secretary under paragraph 
(1).''.

SEC. 1116. RESTORATION OF MEDICAID ELIGIBILITY FOR CERTAIN SSI 
              BENEFICIARIES.

    (a) In General.--Section 1902(a)(10)(A)(i)(II) (42 U.S.C. 
1396a(a)(10)(A)(i)(II)) is amended--
            (1) by inserting ``(aa)'' after ``(II)'';
            (2) by striking ``or who are'' and inserting ``, (bb) who 
        are''; and
            (3) by inserting before the comma at the end the following: 
        ``, or (cc) who are under 21 years of age and with respect to 
        whom supplemental security income benefits would be paid under 
        title XVI if subparagraphs (A) and (B) of section 1611(c)(7) 
        were applied without regard to the phrase `the first day of the 
        month following'''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to medical assistance for items and services furnished on or 
after the first day of the first calendar quarter that begins after the 
date of enactment of this Act.

                   CHAPTER 2--ENROLLMENT IMPROVEMENTS

SEC. 1121. APPLICATION OF SIMPLIFIED TITLE XXI PROCEDURES UNDER THE 
              MEDICAID PROGRAM.

    (a) Application Under Medicaid.--
            (1) In general.--Section 1902(l) of the Social Security Act 
        (42 U.S.C. 1396a(l)) is amended--
                    (A) in paragraph (3), by inserting ``subject to 
                paragraph (5)'', after ``Notwithstanding subsection 
                (a)(17),''; and
                    (B) by adding at the end the following:
    ``(5) With respect to determining the eligibility of individuals 
under 19 years of age (or such higher age as the State has elected 
under paragraph (1)(D)) for medical assistance under subsection 
(a)(10)(A) notwithstanding any other provision of this title, if the 
State has established a State child health plan under title XXI--
            ``(A) the State may not apply a resource standard;
            ``(B) the State shall use the same simplified eligibility 
        form (that in no case shall be more than 4 pages and that 
        permits application other than in person) as the State uses 
        under such State child health plan with respect to such 
        individuals;
            ``(C) the State shall provide for initial eligibility 
        determinations and redeterminations of eligibility using the 
        same verification policies, forms, and frequency as the State 
        uses for such purposes under such State child health plan with 
        respect to such individuals;
            ``(D) the State shall not require a face-to-face interview 
        for purposes of initial eligibility determinations and 
        redeterminations and shall allow for self-declaration of 
        initial eligibility and recertification information; and
            ``(E) the State shall coordinate the enrollment of children 
        under this title and title XXI with the enrollment of such 
        children and their families in other Federal means-tested 
        public assistance programs, including child care programs, free 
        or reduced price lunches or breakfasts under the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1751 et seq.), 
        assistance under the special supplemental nutrition program for 
        women, infants, and children (WIC) under section 17 of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786), and benefits 
        under the Food Stamp Act of 1977.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        apply to determinations of eligibility made on or after the 
        date that is 1 year after the date of the enactment of this 
        Act, whether or not regulations implementing such amendments 
        have been issued.
            (3) Development of uniform application.--Not later than 1 
        year after the date of enactment of this Act, the Secretary of 
        Health and Human Services, in consultation with States and 
        organizations with expertise in outreach to, and enrollment of, 
        children without health insurance, shall develop a uniform 
        application that meets the requirements of section 1902(l)(5) 
        of the Social Security Act, as added by paragraph (1), and may 
        be used in any State.
    (b) Presumptive Eligibility.--
            (1) In general.--Section 1920A(b)(3)(A)(i) of the Social 
        Security Act (42 U.S.C. 1396r-1a(b)(3)(A)(i)) is amended by 
        inserting ``a child care resource and referral agency,'' after 
        ``a State or tribal child support enforcement agency,''.
            (2) Application to presumptive eligibility for pregnant 
        women under medicaid.--Section 1920(b) of the Social Security 
        Act (42 U.S.C. 1396r-1(b)) is amended by adding at the end 
        after and below paragraph (2) the following flush sentence:
``The term `qualified provider' includes a qualified entity as defined 
in section 1920A(b)(3).''.
            (3) Application under title xxi.--
                    (A) In general.--Section 2107(e)(1)(D) of the 
                Social Security Act (42 U.S.C. 1397gg(e)(1)) is amended 
                to read as follows:
                    ``(D) Sections 1920 and 1920A (relating to 
                presumptive eligibility).''.
                    (B) Exception from limitation on administrative 
                expenses.--Section 2105(c)(2) of such Act (42 U.S.C. 
                1397ee(c)(2)) is amended by adding at the end the 
                following:
                    ``(C) Exception for presumptive eligibility 
                expenditures.--The limitation under subparagraph (A) on 
                expenditures shall not apply to expenditures 
                attributable to the application of section 1920 or 
                1920A (pursuant to section 2107(e)(1)(D)), regardless 
                of whether the child is determined to be ineligible for 
                the program under this title or title XIX.''.
                    (C) Conforming elimination of resource test.--
                Section 2102(b)(1)(A) of such Act (42 U.S.C. 
                1397bb(b)(1)(A)) is amended--
                            (i) by striking ``and resources (including 
                        any standards relating to spenddowns and 
                        disposition of resources)''; and
                            (ii) by adding at the end the following: 
                        ``Effective 1 year after the date of the 
                        enactment of the Leave No Child Behind Act of 
                        2003, such standards may not include the 
                        application of a resource standard or test.''.
    (c) Automatic Reassessment of Eligibility for Title XXI and 
Medicaid Benefits for Children Losing Medicaid or Title XXI 
Eligibility.--
            (1) Loss of medicaid eligibility.--Section 1902(a) of the 
        Social Security Act (42 U.S.C. 1396a(a)) is amended--
                    (A) by striking the period at the end of paragraph 
                (65) and inserting ``; and''; and
                    (B) by inserting after paragraph (65) the 
                following:
            ``(66) provide, in the case of a State with a State child 
        health plan under title XXI, that before medical assistance to 
        a child (or a parent of a child) is discontinued under this 
        title, a determination of whether the child (or parent) is 
        eligible for benefits under title XXI shall be made and, if 
        determined to be so eligible, the child (or parent) shall be 
        automatically enrolled in the program under such title without 
        the need for a new application.''.
            (2) Loss of title xxi eligibility.--Section 2102(b)(3) (42 
        U.S.C. 1397bb(b)(3)) is amended by redesignating subparagraphs 
        (D) and (E) as subparagraphs (E) and (F), respectively, and by 
        inserting after subparagraph (C) the following:
                    ``(D) that before health assistance to a child (or 
                a parent of a child) is discontinued under this title, 
                a determination of whether the child (or parent) is 
                eligible for benefits under title XIX is made and, if 
                determined to be so eligible, the child (or parent) is 
                automatically enrolled in the program under such title 
                without the need for a new application;''.
            (3) Effective date.--The amendments made by paragraphs (1) 
        and (2) apply to individuals who lose eligibility under the 
        medicaid program under title XIX, or under a State child health 
        insurance plan under title XXI, respectively, of the Social 
        Security Act on or after the date that is 60 days after the 
        date of the enactment of this Act.
    (d) Provision of Medicaid and SCHIP Applications and Information 
Under the School Lunch Program.--Section 9(b)(2)(B) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(B)) is 
amended--
            (1) by striking ``(B) Applications'' and inserting ``(B)(i) 
        Applications''; and
            (2) by adding at the end the following:
    ``(ii)(I) Applications for free and reduced price lunches that are 
distributed pursuant to clause (i) to parents or guardians of children 
in attendance at schools participating in the school lunch program 
under this Act shall also contain information on the availability of 
medical assistance under title XIX of the Social Security Act (42 
U.S.C. 1396 et seq.) (commonly referred to as the `medicaid program') 
and of child health assistance under title XXI of such Act (commonly 
referred to as `SCHIP'), including information on how to obtain an 
application for assistance under such program.
    ``(II) Information on the medicaid program and SCHIP under 
subclause (I) shall be provided on a form separate from the application 
form for free and reduced price lunches under clause (i).''.
    (e) 12-Months Continuous Eligibility.--
            (1) Medicaid.--Section 1902(e)(12) of the Social Security 
        Act (42 U.S.C. 1396a(e)(12)) is amended--
                    (A) by striking ``At the option of the State, the 
                plan may'' and inserting ``The plan shall'';
                    (B) by striking ``an age specified by the State 
                (not to exceed 19 years of age)'' and inserting ``19 
                years of age (or such higher age as the State has 
                elected under subsection (l)(1)(D)) or who is eligible 
                for medical assistance as the parent of such a child'';
                    (C) in subparagraph (A), by striking ``a period 
                (not to exceed 12 months)'' and inserting ``the 12-
                month period beginning on the date''; and
                    (D) in subparagraph (B), by inserting ``or, in the 
                case of a parent of a child, the child)'' after ``the 
                individual''.
            (2) Title XXI.--Section 2101(b)(2) of such Act (42 U.S.C. 
        1397aa(b)(2)) is amended by adding at the end the following: 
        ``Such methods shall provide 12-months continuous eligibility 
        for children and parents under this title in the same manner as 
        section 1902(e)(12) provides 12-months continuous eligibility 
        for individuals described in such section under title XIX.''.

SEC. 1122. AUTOMATIC ENROLLMENT OF CHILDREN BORN TO TITLE XXI PARENTS.

    Section 2102(b)(1) of the Social Security Act (42 U.S.C. 
1397bb(b)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(C) Automatic eligibility of children born to a 
                parent being provided familycare.--Such eligibility 
                standards shall provide for automatic coverage of a 
                child born to an individual who is provided assistance 
                under this title in the same manner as medical 
                assistance would be provided under section 1902(e)(4) 
                to a child described in such section.''.

                       CHAPTER 3--EFFECTIVE DATE

SEC. 1131. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), the amendments made by 
this subtitle take effect on the date of enactment of this Act.
    (b) Extension of Effective Date for State Law Amendment.--In the 
case of a State plan under title XIX or XXI of the Social Security Act 
which the Secretary of Health and Human Services determines requires 
State legislation in order for the plan to meet the additional 
requirements imposed by the amendments made by this subtitle, such 
State plan shall not be regarded as failing to comply with such 
requirements solely on the basis of its failure to meet the additional 
requirements before the first day of the first calendar quarter 
beginning after the close of the first regular session of the State 
legislature that begins after the date of enactment of this Act. For 
purposes of the previous sentence, in the case of a State that has a 2-
year legislative session, each year of the session is considered to be 
a separate regular session of the State legislature.

                  Subtitle C--Improving Access to Care

                         CHAPTER 1--COMMISSION

SEC. 1201. COMMISSION ON CHILDREN'S ACCESS TO CARE.

    (a) Establishment.--There is established a Commission on Children's 
Access to Care (in this section referred to as the ``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of 11 
        members of whom--
                    (A) 3 members shall be appointed by the President;
                    (B) 2 members shall be appointed by the Majority 
                Leader of the Senate;
                    (C) 2 members shall be appointed by the Speaker of 
                the House of Representatives;
                    (D) 2 members shall be appointed by the Minority 
                Leader of the Senate; and
                    (E) 2 members shall be appointed by the Minority 
                Leader of the House of Representatives.
            (2) Qualifications.--Members of the Commission shall be 
        appointed from among representatives of children's advocacy 
        groups and children's health care providers.
            (3) Timing of appointments.--Members of the Commission 
        shall be appointed not later than 6 months after the date of 
        enactment of this Act.
            (4) Chair.--
                    (A) In general.--The Commission shall select a 
                Chair from among its members.
                    (B) Duties.--The Chair of the Commission shall be 
                responsible for--
                            (i) the assignment of duties and 
                        responsibilities among staff personnel and 
                        their continuing supervision; and
                            (ii) the use and expenditure of funds 
                        available to the Commission.
            (5) Vacancies.--Any vacancy on the Commission shall be 
        filled in the same manner as the original incumbent was 
        appointed.
            (6) Travel expenses.--The members of the Commission shall 
        be allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Commission.
    (c) Meetings.--
            (1) Initial meeting.--Not later than 30 days after the date 
        on which all members of the Commission have been appointed, the 
        Commission shall hold its first meeting.
            (2) Time.--The Commission shall meet at the call of the 
        Chair.
            (3) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum, but a lesser number of members may 
        hold hearings.
    (d) Duties.--
            (1) In general.--The Commission shall conduct annual 
        studies of children's access to health care.
            (2) Matters studied.--Each year the Commission shall 
        study--
                    (A) the impact of payment rates under the medicaid 
                and the State children's health insurance programs on 
                access to health care and provider participation in the 
                delivery of health care to children;
                    (B) the access to health care of children with 
                special health care needs, particularly those in 
                managed care delivery systems;
                    (C) the access to, and delivery of, preventive 
                health care to children;
                    (D) Federal and State government efforts to collect 
                data, report, evaluate, and monitor children's access 
                to health care, including Federal and State government 
                deficiencies in assessing children's access to health 
                care;
                    (E) the needs for supplemental and enabling 
                services to improve children's access to health care, 
                including translation and transportation services; and
                    (F) other factors that impact the ability of 
                families with children to gain access to health care 
                services.
            (3) Reports.--
                    (A) In general.--Not later than 1 year after the 
                date of the initial meeting of the Commission, and 
                annually thereafter, the Commission shall submit to 
                Congress and the President a report.
                    (B) Contents.--Each report shall contain the 
                results of the study conducted for that year and the 
                Commission's recommendations to improve children's--
                            (i) health status; and
                            (ii) access to health care.
    (e) Powers of the Commission.--
            (1) Hearings.--The Commission may hold hearings, sit and 
        act at times and places, take testimony, and receive evidence 
        as the Commission considers advisable to carry out this 
        section.
            (2) Information from federal agencies.--The Commission may 
        secure directly from any Federal department or agency such 
        information as the Commission considers necessary to carry out 
        this section. Upon request of the Chair of the Commission, the 
        head of such department or agency shall furnish such 
        information to the Commission.
            (3) Postal services.--The Commission may use the United 
        States mails in the same manner and under the same conditions 
        as other departments and agencies of the Federal Government.
            (4) Gifts.--The Commission may accept, use, and dispose of 
        gifts or donations of services or property.
    (f) Staff and Administrative Support.--
            (1) In general.--The Chair of the Commission may, without 
        regard to the civil service laws and regulations, appoint and 
        terminate an executive director and such other additional 
        personnel as may be necessary to enable the Commission to 
        perform its duties. The employment of an executive director 
        shall be subject to confirmation by the Commission.
            (2) Compensation.--The Chair of the Commission may fix the 
        compensation of the executive director and other personnel 
        without regard to chapter 51 and subchapter III of chapter 53 
        of title 5, United States Code, relating to classification of 
        positions and General Schedule pay rates, except that the rate 
        of pay for the executive director and other personnel may not 
        exceed the rate payable for level V of the Executive Schedule 
        under section 5316 of title 5, United States Code.
            (3) Detail of government employees.--Any Federal Government 
        employee may be detailed to the Commission without 
        reimbursement, and such detail shall be without interruption or 
        loss of civil service status or privilege.
            (4) Procurement of temporary and intermittent services.--
        The Chair of the Commission may procure temporary and 
        intermittent services under section 3109(b) of title 5, United 
        States Code, at rates for individuals which do not exceed the 
        daily equivalent of the annual rate of basic pay prescribed for 
        level V of the Executive Schedule under section 5316 of title 
        5, United States Code.

         CHAPTER 2--CHILDREN'S HEALTH INSURANCE ACCOUNTABILITY

SEC. 1211. SHORT TITLE.

    This chapter may be cited as the ``Children's Health Insurance 
Accountability Act of 2003''.

SEC. 1212. FINDINGS.

    Congress makes the following findings:
            (1) Children have health and development needs that are 
        markedly different than those for the adult population.
            (2) Children experience complex and continuing changes 
        during the continuum from birth to adulthood in which 
        appropriate health care is essential for optimal development.
            (3) The vast majority of work done on development methods 
        to assess the effectiveness of health care services and the 
        impact of medical care on patient outcomes and patient 
        satisfaction has been focused on adults.
            (4) Health outcome measures need to be age, gender, and 
        developmentally appropriate to be useful to families and 
        children.
            (5) Costly disorders of adulthood often have their origins 
        in childhood, making early access to effective health services 
        in childhood essential.
            (6) More than 200 chronic conditions, disabilities and 
        diseases affect children, including asthma, diabetes, sickle 
        cell anemia, spina bifida, epilepsy, autism, cerebral palsy, 
        congenital heart disease, mental retardation, and cystic 
        fibrosis. These children need the services of specialists who 
        have in depth knowledge about their particular condition.
            (7) Children's patterns of illness, disability and injury 
        differ dramatically from adults.

SEC. 1213. AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT.

    (a) Patient Protection Standards.--Title XXVII of the Public Health 
Service Act (42 U.S.C. 300gg et seq.) is amended--
            (1) by redesignating part C as part D; and
            (2) by inserting after part B the following new part:

            ``Part C--Children's Health Protection Standards

``SEC. 2770. ACCESS TO CARE.

    ``(a) Access to Appropriate Primary Care Providers.--
            ``(1) In general.--If a group health plan, or a health 
        insurance issuer in connection with the provision of health 
        insurance coverage, requires or provides for an enrollee to 
        designate a participating primary care provider for a child of 
        such enrollee--
                    ``(A) the plan or issuer shall permit the enrollee 
                to designate a physician who specializes in pediatrics 
                as the child's primary care provider; and
                    ``(B) if such an enrollee has not designated such a 
                provider for the child, the plan or issuer shall 
                consider appropriate pediatric expertise in mandatorily 
                assigning such an enrollee to a primary care provider.
            ``(2) Construction.--Nothing in paragraph (1) shall waive 
        any requirements of coverage relating to medical necessity or 
        appropriateness with respect to coverage of services.
    ``(b) Access to Pediatric Specialty Services.--
            ``(1) Referral to specialty care for children requiring 
        treatment by specialists.--
                    ``(A) In general.--In the case of a child who is 
                covered under a group health plan, or health insurance 
                coverage offered by a health insurance issuer and who 
                has a mental or physical condition, disability, or 
                disease of sufficient seriousness and complexity to 
                require diagnosis, evaluation or treatment by a 
                specialist, the plan or issuer shall make or provide 
for a referral to a specialist who has extensive experience or 
training, and is available and accessible to provide the treatment for 
such condition or disease, including the choice of a nonprimary care 
physician specialist participating in the plan or a referral to a 
nonparticipating provider as provided for under subparagraph (D) if 
such a provider is not available within the plan.
                    ``(B) Specialist defined.--For purposes of this 
                subsection, the term `specialist' means, with respect 
                to a condition, disability, or disease, a health care 
                practitioner, facility, or center (such as a center of 
                excellence) that has extensive pediatric expertise 
                through appropriate training or experience to provide 
                high quality care in treating the condition, disability 
                or disease.
                    ``(C) Referrals to participating providers.--A plan 
                or issuer is not required under subparagraph (A) to 
                provide for a referral to a specialist that is not a 
                participating provider, unless the plan or issuer does 
                not have an appropriate specialist that is available 
                and accessible to treat the enrollee's condition and 
                that is a participating provider with respect to such 
                treatment.
                    ``(D) Treatment of nonparticipating providers.--If 
                a plan or issuer refers a child enrollee to a 
                nonparticipating specialist, services provided pursuant 
                to the referral shall be provided at no additional cost 
                to the enrollee beyond what the enrollee would 
                otherwise pay for services received by such a 
                specialist that is a participating provider.
                    ``(E) Specialists as primary care providers.--A 
                plan or issuer shall have in place a procedure under 
                which a child who is covered under health insurance 
                coverage provided by the plan or issuer who has a 
                condition or disease that requires specialized medical 
                care over a prolonged period of time shall receive a 
                referral to a pediatric specialist affiliated with the 
                plan, or if not available within the plan, to a 
                nonparticipating provider for such condition and such 
                specialist may be responsible for and capable of 
                providing and coordinating the child's primary and 
                specialty care.
            ``(2) Standing referrals.--
                    ``(A) In general.--A group health plan, or health 
                insurance issuer in connection with the provision of 
                health insurance coverage of a child, shall have a 
                procedure by which a child who has a condition, 
                disability, or disease that requires ongoing care from 
                a specialist may request and obtain a standing referral 
                to such specialist for treatment of such condition. If 
                the primary care provider in consultation with the 
                medical director of the plan or issuer and the 
                specialist (if any), determines that such a standing 
                referral is appropriate, the plan or issuer shall 
                authorize such a referral to such a specialist. Such 
                standing referral shall be consistent with a treatment 
                plan.
                    ``(B) Treatment plans.--A group health plan, or 
                health insurance issuer, with the participation of the 
                family and the health care providers of the child, 
                shall develop a treatment plan for a child who requires 
                ongoing care that covers a specified period of time 
                (but in no event less than a 6-month period). Services 
                provided for under the treatment plan shall not require 
                additional approvals or referrals through a gatekeeper.
                    ``(C) Terms of referral.--The provisions of 
                subparagraph (C) and (D) of paragraph (1) shall apply 
                with respect to referrals under subparagraph (A) in the 
                same manner as they apply to referrals under paragraph 
                (1)(A).
    ``(c) Adequacy of Access.--For purposes of subsections (a) and (b), 
a group health plan or health insurance issuer in connection with 
health insurance coverage shall ensure that a sufficient number, 
distribution, and variety of qualified participating health care 
providers are available so as to ensure that all covered health care 
services, including specialty services, are available and accessible to 
all enrollees in a timely manner.
    ``(d) Coverage of Emergency Services.--
            ``(1) In general.--If a group health plan, or health 
        insurance coverage offered by a health insurance issuer, 
        provides any benefits for children with respect to emergency 
        services (as defined in paragraph (2)(A)), the plan or issuer 
        shall cover emergency services furnished under the plan or 
        coverage--
                    ``(A) without the need for any prior authorization 
                determination;
                    ``(B) whether or not the physician or provider 
                furnishing such services is a participating physician 
                or provider with respect to such services; and
                    ``(C) without regard to any other term or condition 
                of such coverage (other than exclusion of benefits, or 
                an affiliation or waiting period, permitted under 
                section 2701).
            ``(2) Definitions.--In this subsection:
                    ``(A) Emergency medical condition based on prudent 
                layperson standard.--The term `emergency medical 
                condition' means a medical condition manifesting itself 
                by acute symptoms of sufficient severity (including 
                severe pain) such that a prudent layperson, who 
                possesses an average knowledge of health and medicine, 
                could reasonably expect the absence of immediate 
                medical attention to result in a condition described in 
                clause (i), (ii), or (iii) of section 1867(e)(1)(A) of 
                the Social Security Act.
                    ``(B) Emergency services.--The term `emergency 
                services' means--
                            ``(i) a medical screening examination (as 
                        required under section 1867 of the Social 
                        Security Act) that is within the capability of 
                        the emergency department of a hospital, 
including ancillary services routinely available to the emergency 
department to evaluate an emergency medical condition (as defined in 
subparagraph (A)); and
                            ``(ii) within the capabilities of the staff 
                        and facilities available at the hospital, such 
                        further medical examination and treatment as 
                        are required under section 1867 of such Act to 
                        stabilize the patient.
            ``(3) Reimbursement for maintenance care and post-
        stabilization care.--A group health plan, and health insurance 
        issuer offering health insurance coverage, shall provide, in 
        covering services other than emergency services, for 
        reimbursement with respect to services which are otherwise 
        covered and which are provided to an enrollee other than 
        through the plan or issuer if the services are maintenance care 
        or post-stabilization care covered under the guidelines 
        established under section 1852(d) of the Social Security Act 
        (relating to promoting efficient and timely coordination of 
        appropriate maintenance and post-stabilization care of an 
        enrollee after an enrollee has been determined to be stable).
    ``(e) Prohibition on Financial Barriers.--A health insurance issuer 
in connection with the provision of health insurance coverage may not 
impose any cost sharing for pediatric specialty services provided under 
such coverage to enrollee children in amounts that exceed the cost-
sharing required for other specialty care under such coverage.
    ``(f) Children With Special Health Care Needs.--A health insurance 
issuer in connection with the provision of health insurance coverage 
shall ensure that such coverage provides special consideration for the 
provision of services to enrollee children with special health care 
needs. Appropriate procedures shall be implemented to provide care for 
children with special health care needs. The development of such 
procedures shall include participation by the families of such 
children.
    ``(g) Definitions.--In this part:
            ``(1) Child.--The term `child' means an individual who is 
        under 19 years of age.
            ``(2) Children with special health care needs.--The term 
        `children with special health care needs' means those children 
        who have or are at elevated risk for chronic physical, 
        developmental, behavioral or emotional conditions and who also 
        require health and related services of a type and amount not 
        usually required by children.

``SEC. 2771. CONTINUITY OF CARE.

    ``(a) In General.--If a contract between a health insurance issuer, 
in connection with the provision of health insurance coverage, and a 
health care provider is terminated (other than by the issuer for 
failure to meet applicable quality standards or for fraud) and an 
enrollee is undergoing a course of treatment from the provider at the 
time of such termination, the issuer shall--
            ``(1) notify the enrollee of such termination, and
            ``(2) subject to subsection (c), permit the enrollee to 
        continue the course of treatment with the provider during a 
        transitional period (provided under subsection (b)).
    ``(b) Transitional Period.--
            ``(1) In general.--Except as provided in paragraphs (2) 
        through (4), the transitional period under this subsection 
        shall extend for at least--
                    ``(A) 60 days from the date of the notice to the 
                enrollee of the provider's termination in the case of a 
                primary care provider, or
                    ``(B) 120 days from such date in the case of 
                another provider.
            ``(2) Institutional care.--The transitional period under 
        this subsection for institutional or inpatient care from a 
        provider shall extend until the discharge or termination of the 
        period of institutionalization and shall include reasonable 
        follow-up care related to the institutionalization and shall 
        also include institutional care scheduled prior to the date of 
        termination of the provider status.
            ``(3) Pregnancy.--If--
                    ``(A) an enrollee has entered the second trimester 
                of pregnancy at the time of a provider's termination of 
                participation, and
                    ``(B) the provider was treating the pregnancy 
                before date of the termination,
        the transitional period under this subsection with respect to 
        provider's treatment of the pregnancy shall extend through the 
        provision of post-partum care directly related to the delivery.
            ``(4) Terminal illness.--
                    ``(A) In general.--If--
                            ``(i) an enrollee was determined to be 
                        terminally ill (as defined in subparagraph (B)) 
                        at the time of a provider's termination of 
                        participation, and
                            ``(ii) the provider was treating the 
                        terminal illness before the date of 
                        termination,
                the transitional period under this subsection shall 
                extend for the remainder of the enrollee's life for 
                care directly related to the treatment of the terminal 
                illness.
                    ``(B) Definition.--In subparagraph (A), an enrollee 
                is considered to be `terminally ill' if the enrollee 
                has a medical prognosis that the enrollee's life 
                expectancy is 6 months or less.
    ``(c) Permissible Terms and Conditions.--An issuer may condition 
coverage of continued treatment by a provider under subsection (a)(2) 
upon the provider agreeing to the following terms and conditions:
            ``(1) The provider agrees to continue to accept 
        reimbursement from the issuer at the rates applicable prior to 
        the start of the transitional period as payment in full.
            ``(2) The provider agrees to adhere to the issuer's quality 
        assurance standards and to provide to the issuer necessary 
        medical information related to the care provided.
            ``(3) The provider agrees otherwise to adhere to the 
        issuer's policies and procedures, including procedures 
        regarding referrals and obtaining prior authorization and 
        providing services pursuant to a treatment plan approved by the 
        issuer.

``SEC. 2772. CONTINUOUS QUALITY IMPROVEMENT.

    ``(a) In General.--A health insurance issuer that offers health 
insurance coverage for children shall establish and maintain an 
ongoing, internal quality assurance program that at a minimum meets the 
requirements of subsection (b).
    ``(b) Requirements.--The internal quality assurance program of an 
issuer under subsection (a) shall--
            ``(1) establish and measure a set of health care, 
        functional assessments, structure, processes and outcomes, and 
        quality indicators that are unique to children and based on 
        nationally accepted standards or guidelines of care;
            ``(2) maintain written protocols consistent with recognized 
        clinical guidelines or current consensus on the pediatric 
        field, to be used for purposes of internal utilization review, 
        with periodic updating and evaluation by pediatric specialists 
        to determine effectiveness in controlling utilization;
            ``(3) provide for peer review by health care professionals 
        of the structure, processes, and outcomes related to the 
        provision of health services, including pediatric review of 
        pediatric cases;
            ``(4) include in member satisfaction surveys, questions on 
        child and family satisfaction and experience of care, including 
        care to children with special needs;
            ``(5) monitor and evaluate the continuity of care with 
        respect to children;
            ``(6) include pediatric measures that are directed at 
        meeting the needs of at-risk children and children with chronic 
        conditions, disabilities and severe illnesses;
            ``(7) maintain written guidelines to ensure the 
        availability of medications appropriate to children;
            ``(8) use focused studies of care received by children with 
        certain types of chronic conditions and disabilities and 
        focused studies of specialized services used by children with 
        chronic conditions and disabilities;
            ``(9) monitor access to pediatric specialty services; and
            ``(10) monitor child health care professional satisfaction.
    ``(c) Utilization Review Activities.--
            ``(1) Compliance with requirements.--
                    ``(A) In general.--A health insurance issuer that 
                offers health insurance coverage for children shall 
                conduct utilization review activities in connection 
                with the provision of such coverage only in accordance 
                with a utilization review program that meets at a 
                minimum the requirements of this subsection.
                    ``(B) Definitions.--In this subsection:
                            ``(i) Clinical peers.--The term `clinical 
                        peer' means, with respect to a review, a 
                        physician or other health care professional who 
                        holds a non-restricted license in a State and 
                        in the same or similar specialty as typically 
                        manages the pediatric medical condition, 
                        procedure, or treatment under review.
                            ``(ii) Health care professional.--The term 
                        `health care professional' means a physician or 
                        other health care practitioner licensed or 
                        certified under State law to provide health 
                        care services and who is operating within the 
                        scope of such licensure or certification.
                            ``(iii) Utilization review.--The terms 
                        `utilization review' and `utilization review 
activities' mean procedures used to monitor or evaluate the clinical 
necessity, appropriateness, efficacy, or efficiency of health care 
services, procedures or settings for children, and includes prospective 
review, concurrent review, second opinions, case management, discharge 
planning, or retrospective review specific to children.
            ``(2) Written policies and criteria.--
                    ``(A) Written policies.--A utilization review 
                program shall be conducted consistent with written 
                policies and procedures that govern all aspects of the 
                program.
                    ``(B) Use of written criteria.--A utilization 
                review program shall utilize written clinical review 
                criteria specific to children and developed pursuant to 
                the program with the input of appropriate physicians, 
                including pediatricians, nonprimary care pediatric 
                specialists, and other child health professionals.
                    ``(C) Administration by health care 
                professionals.--A utilization review program shall be 
                administered by qualified health care professionals, 
                including health care professionals with pediatric 
                expertise who shall oversee review decisions.
            ``(3) Use of qualified, independent personnel.--
                    ``(A) In general.--A utilization review program 
                shall provide for the conduct of utilization review 
                activities only through personnel who are qualified 
                and, to the extent required, who have received 
                appropriate pediatric or child health training in the 
                conduct of such activities under the program.
                    ``(B) Peer review of adverse clinical 
                determinations.--A utilization review program shall 
                provide that clinical peers shall evaluate the clinical 
                appropriateness of adverse clinical determinations and 
                divergent clinical options.

``SEC. 2773. APPEALS AND GRIEVANCE MECHANISMS FOR CHILDREN.

    ``(a) Internal Appeals Process.--A health insurance issuer in 
connection with the provision of health insurance coverage for children 
shall establish and maintain a system to provide for the resolution of 
complaints and appeals regarding all aspects of such coverage. Such a 
system shall include an expedited procedure for appeals on behalf of a 
child enrollee in situations in which the time frame of a standard 
appeal would jeopardize the life, health, or development of the child.
    ``(b) External Appeals Process.--A health insurance issuer in 
connection with the provision of health insurance coverage for children 
shall provide for an independent external review process that meets the 
following requirements:
            ``(1) External appeal activities shall be conducted through 
        clinical peers, a physician or other health care professional 
        who is appropriately credentialed in pediatrics with the same 
        or similar specialty and typically manages the condition, 
        procedure, or treatment under review or appeal.
            ``(2) External appeal activities shall be conducted through 
        an entity that has sufficient pediatric expertise, including 
        subspecialty expertise, and staffing to conduct external appeal 
        activities on a timely basis.
            ``(3) Such a review process shall include an expedited 
        procedure for appeals on behalf of a child enrollee in which 
        the time frame of a standard appeal would jeopardize the life, 
        health, or development of the child.

``SEC. 2774. ACCOUNTABILITY THROUGH DISTRIBUTION OF INFORMATION.

    ``(a) In General.--A health insurance issuer in connection with the 
provision of health insurance coverage for children shall submit to 
enrollees (and prospective enrollees), and make available to the 
public, in writing the health-related information described in 
subsection (b).
    ``(b) Information.--The information to be provided under subsection 
(a) shall include a report of measures of structures, processes, and 
outcomes regarding each health insurance product offered to 
participants and dependents in a manner that is separate for both the 
adult and child enrollees, using measures that are specific to each 
group.''.
    (b) Application to Group Health Insurance Coverage.--
            (1) In general.--Subpart 2 of part A of title XXVII of the 
        Public Health Service Act (42 U.S.C. 300gg-4 et seq.) is 
        amended by adding at the end the following new section:

``SEC. 2707. CHILDREN'S HEALTH ACCOUNTABILITY STANDARDS.

    ``(a) In General.--Each health insurance issuer shall comply with 
children's health accountability requirement under part C with respect 
to group health insurance coverage it offers.
    ``(b) Assuring Coordination.--The Secretary of Health and Human 
Services and the Secretary of Labor shall ensure, through the execution 
of an interagency memorandum of understanding between such Secretaries, 
that--
            ``(1) regulations, rulings, and interpretations issued by 
        such Secretaries relating to the same matter over which such 
        Secretaries have responsibility under part C (and this section) 
        and section 714 of the Employee Retirement Income Security Act 
        of 1974 are administered so as to have the same effect at all 
        times; and
            ``(2) coordination of policies relating to enforcing the 
        same requirements through such Secretaries in order to have a 
        coordinated enforcement strategy that avoids duplication of 
        enforcement efforts and assigns priorities in enforcement.''.
            (2) Conforming amendment.--Section 2792 of the Public 
        Health Service Act (42 U.S.C. 300gg-92) is amended by inserting 
        ``and section 2707(b)'' after ``of 1996''.
    (c) Application to Individual Health Insurance Coverage.--Part B of 
title XXVII of the Public Health Service Act (42 U.S.C. 300gg-41 et 
seq.) is amended by inserting after section 2752 the following new 
section:

``SEC. 2753. CHILDREN'S HEALTH ACCOUNTABILITY STANDARDS.

    ``Each health insurance issuer shall comply with children's health 
accountability requirements under part C with respect to individual 
health insurance coverage it offers.''.
    (d) Modification of Preemption Standards.--
            (1) Group health insurance coverage.--Section 2723 of the 
        Public Health Service Act (42 U.S.C. 300gg-23) is amended--
                    (A) in subsection (a)(1), by striking ``subsection 
                (b)'' and inserting ``subsections (b) and (c)'';
                    (B) by redesignating subsections (c) and (d) as 
                subsections (d) and (e), respectively; and
                    (C) by inserting after subsection (b) the following 
                new subsection:
    ``(c) Special Rules in Case of Children's Health Accountability 
Requirements.--Subject to subsection (a)(2), the provisions of section 
2707 and part C, and part D insofar as it applies to section 2707 or 
part C, shall not prevent a State from establishing requirements 
relating to the subject matter of such provisions so long as such 
requirements are at least as stringent on health insurance issuers as 
the requirements imposed under such provisions.''.
            (2) Individual health insurance coverage.--Section 2762 of 
        the Public Health Service Act (42 U.S.C. 300gg-62), as added by 
        section 605(b)(3)(B) of Public Law 104-204, is amended--
                    (A) in subsection (a), by striking ``subsection 
                (b), nothing in this part'' and inserting ``subsections 
                (b) and (c), nothing in this part'', and
                    (B) by adding at the end the following new 
                subsection:
    ``(c) Special Rules in Case of Children's Health Accountability 
Requirements.--Subject to subsection (b), the provisions of section 
2753 and part C, and part D insofar as it applies to section 2753 or 
part C, shall not prevent a State from establishing requirements 
relating to the subject matter of such provisions so long as such 
requirements are at least as stringent on health insurance issuers as 
the requirements imposed under such section.''.

SEC. 1214. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 
              1974.

    (a) In General.--Subpart B of part 7 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1185 et 
seq.) is amended by adding at the end the following:

``SEC. 714. CHILDREN'S HEALTH ACCOUNTABILITY STANDARDS.

    ``(a) In General.--Subject to subsection (b), the provisions of 
part C of title XXVII of the Public Health Service Act shall apply 
under this subpart and part to a group health plan (and group health 
insurance coverage offered in connection with a group health plan) as 
if such part C were incorporated in this section.
    ``(b) Application.--In applying subsection (a) under this subpart 
and part, any reference in such part C--
            ``(1) to health insurance coverage is deemed to be a 
        reference only to group health insurance coverage offered in 
        connection with a group health plan and to also be a reference 
        to coverage under a group health plan;
            ``(2) to a health insurance issuer is deemed to be a 
        reference only to such an issuer in relation to group health 
        insurance coverage or, with respect to a group health plan, to 
        the plan;
            ``(3) to the Secretary is deemed to be a reference to the 
        Secretary of Labor;
            ``(4) to an applicable State authority is deemed to be a 
        reference to the Secretary of Labor; and
            ``(5) to an enrollee with respect to health insurance 
        coverage is deemed to include a reference to a participant or 
        beneficiary with respect to a group health plan.''.
    (b) Modification of Preemption Standards.--Section 731 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1191) is 
amended--
            (1) in subsection (a)(1), by striking ``subsection (b)'' 
        and inserting ``subsections (b) and (c)'';
            (2) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (3) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Special Rules in Case of Patient Accountability 
Requirements.--Subject to subsection (a)(2), the provisions of section 
714 shall not prevent a State from establishing requirements relating 
to the subject matter of such provisions so long as such requirements 
are at least as stringent on group health plans and health insurance 
issuers in connection with group health insurance coverage as the 
requirements imposed under such provisions.''.
    (c) Conforming Amendments.--
            (1) Section 732(a) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1191a(a)) is amended by 
        striking ``section 711'' and inserting ``sections 711 and 
        714''.
            (2) The table of contents in section 1 of the Employee 
        Retirement Income Security Act of 1974 is amended by inserting 
        after the item relating to section 713 the following new item:

``Sec. 714. Children's health accountability standards.''.

SEC. 1215. STUDIES.

    (a) By Secretary.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of Health and Human Services shall 
conduct a study, and prepare and submit to Congress a report, 
concerning--
            (1) the unique characteristics of patterns of illness, 
        disability, and injury in children;
            (2) the development of measures of quality of care and 
        outcomes related to the health care of children; and
            (3) the access of children to primary mental health 
        services and the coordination of managed behavioral health 
        services.
    (b) By GAO.--
            (1) Managed care.--Not later than 1 year after the date of 
        enactment of this Act, the General Accounting Office shall 
        conduct a study, and prepare and submit to the Committee on 
        Health, Education, Labor, and Pensions of the Senate and the 
        Committee on Energy and Commerce of the House of 
        Representatives a report, concerning--
                    (A) an assessment of the structure and performance 
                of non-governmental health plans, medicaid managed care 
                organizations, plans under title XIX of the Social 
                Security Act (42 U.S.C. 1396 et seq.), and the program 
                under title XXI of the Social Security Act (42 U.S.C. 
                1397aa et seq.) serving the needs of children with 
                special health care needs;
                    (B) an assessment of the structure and performance 
                of non-governmental plans in serving the needs of 
                children as compared to medicaid managed care 
                organizations under title XIX of the Social Security 
                Act (42 U.S.C. 1396 et seq.); and
                    (C) the emphasis that private managed care health 
                plans place on primary care and the control of services 
                as it relates to care and services provided to children 
                with special health care needs.
            (2) Plan survey.--Not later than 1 year after the date of 
        enactment of this Act, the General Accounting Office shall 
        prepare and submit to the Committee on Health, Education, 
        Labor, and Pensions of the Senate and the Committee on Energy 
        and Commerce of the House of Representatives a report that 
        contains a survey of health plan activities that address the 
        unique health needs of adolescents, including quality measures 
        for adolescents and innovative practice arrangement.

SEC. 1216. EFFECTIVE DATES.

    (a) Group Health Insurance Coverage.--Subject to subsection (b), 
the amendments made by this chapter shall apply with respect to group 
health plans and with respect to health insurance coverage offered, 
sold, issued, renewed, in effect, or operated in the individual market 
for plan years beginning on or after January 1, 2004.
    (b) Collective Bargaining Exception.--In the case of a group health 
plan maintained pursuant to 1 or more collective bargaining agreements 
between employee representatives and 1 or more employers ratified 
before the date of enactment of this Act, the amendments made by this 
chapter shall not apply to plan years beginning before the later of--
            (1) the earliest date as of which all such collective 
        bargaining agreements relating to the plan have terminated 
        (determined without regard to any extension thereof agreed to 
        after the date of the enactment of this Act), or
            (2) January 1, 2004.
For purposes of paragraph (1), any plan amendment made pursuant to a 
collective bargaining agreement relating to the plan which amends the 
plan solely to conform to any requirement added by this chapter shall 
not be treated as a termination of such collective bargaining 
agreement.

                            CHAPTER 3--EPSDT

SEC. 1221. COLLECTION OF DATA REGARDING THE DELIVERY OF EPSDT SERVICES.

    Section 1902(a)(43) of the Social Security Act (42 U.S.C. 
1396a(a)(43)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D)(iv), by striking the semicolon and 
        inserting ``, and''; and
            (3) by inserting after subparagraph (D)(iv), the following 
        new subparagraph:
                    ``(E) beginning with fiscal year 2005, reporting to 
                the Secretary (in a uniform form and manner established 
                by the Secretary that does not identify individual 
                patients and that allows for the comparison of data 
                within and among States) the following information 
                relating to early and periodic screening, diagnostic, 
                and treatment services provided to each child enrolled 
                under the plan during each fiscal year:
                            ``(i) as of the date of enrollment of the 
                        child, the child's--
                                    ``(I) age, State of residence, 
                                gender, and race/ethnicity,
                                    ``(II) the basis for eligibility 
                                for medical assistance,
                                    ``(III) immunization history,
                                    ``(IV) blood-lead level,
                                    ``(V) weight and height percentile 
                                compared to the widely accepted 
                                standard percentiles for the child's 
                                age,
                                    ``(VI) general health and any 
                                chronic conditions or disabilities, and
                                    ``(VII) the primary service 
                                delivery arrangement (such as fee-for-
                                service, managed care, preferred 
                                provider organization, or other 
                                provider practice arrangement); and
                            ``(ii) throughout the fiscal year (at such 
                        intervals as the Secretary shall specify)--
                                    ``(I) the number of medical 
                                screenings the child received and a 
                                specific description of the services 
                                performed as part of such screenings 
                                (such as the weighing and measuring of 
                                the child and the administering of a 
                                blood-lead level test),
                                    ``(II) the number of screenings the 
                                child received for vision and hearing 
                                problems,
                                    ``(III) the number of dental 
                                screenings the child received,
                                    ``(IV) information regarding 
                                whether a condition was discovered from 
                                any of such screenings, whether the 
                                child was referred for, and received, 
                                further treatment, and if so, the 
                                number of visits, and the treatments 
                                received, and
                                    ``(V) the actual or estimated costs 
                                of each of such screenings and 
                                treatments,
                                    ``(VI) information regarding 
                                whether such screenings and treatments 
                                are more comprehensive than similar 
screenings and treatments provided to adult individuals enrolled in the 
plan, and
                                    ``(VII) the service delivery 
                                arrangement for such screening and 
                                treatment provided;''.

                Subtitle D--Reducing Public Health Risks

                      CHAPTER 1--ASTHMA TREATMENTS

SEC. 1301. FINDINGS.

    Congress finds that--
            (1)(A) asthma is 1 of the most common and deadly diseases 
        in the United States, affecting an estimated 14,000,000 to 
        15,000,000 individuals in the United States, including almost 
        5,000,000 children;
            (B) asthma is the most common chronic illness in children, 
        affecting an estimated 7 percent of children in the United 
        States;
            (C) although asthma can occur at any age, about 80 percent 
        of the children who develop asthma do so before starting 
        school;
            (D) asthma is the single greatest cause of school 
        absenteeism, with 10,100,000 days missed from school per year 
        in the United States; and
            (E) according to a 1995 National Institutes of Health 
        workshop report, the cost of lost productivity from missed 
        school days for parents of children with asthma is estimated at 
        $1,000,000,000 per year; and
            (2)(A) vision and hearing screening is an essential part of 
        child health care;
            (B) a vision or hearing deficit may undermine a child's 
        ability to learn;
            (C) the Chicago public school system has determined through 
        vision screening that a far higher number of children 
        identified as failing academically suffer from vision 
        impairment;
            (D) students who have failed a grade 1 or more times are 
        even more likely to have a vision problem;
            (E) more than 30 percent of students in Chicago public 
        schools who were retained during the 1998-1999 school year 
        failed their school-based vision screening, a rate that is 50 
        percent higher than children who were not failing;
            (F) schools play a critical role in promoting a clear link 
        between visual and hearing acuity and academic performance;
            (G) providing vision and hearing screening in schools helps 
        children receive those essential health care services in a 
        timely fashion;
            (H) many parents find it difficult to take time off work in 
        order to ensure that their children receive preventive or other 
        nonemergency health care services; and
            (I) allowing children to receive nonemergency health care 
        services at school would ensure that the children receive 
        services that promote healthy lives and better academic 
        achievement.

SEC. 1302. ASTHMA, VISION, AND HEARING SCREENING FOR EARLY HEAD START 
              AND HEAD START PROGRAMS.

    (a) Early Head Start Programs.--Section 645A of the Head Start Act 
(42 U.S.C. 9840a) is amended by adding at the end the following:
    ``(h) Asthma, Vision, and Hearing Screening.--
            ``(1) In general.--An entity that receives assistance under 
        this section may carry out a program under which the entity--
                    ``(A) determines whether a child eligible to 
                participate in the program described in subsection 
                (a)(1) has received each of an asthma, vision, and 
                hearing screening test using a test that is appropriate 
                for age and risk factors on the enrollment of the child 
                in the program; and
                    ``(B) in the case of a child who has not received 
                each of an asthma, and vision, and hearing screening 
                test, ensures that the enrolled child receives such a 
                test either by referral or by performing the test 
                (under contract or otherwise).
            ``(2) Reimbursement.--
                    ``(A) In general.--On the request of an entity that 
                performs or arranges for the performance of an asthma, 
                vision, or hearing screening test under paragraph (1) 
                on a child who is eligible for or receiving medical 
                assistance under a State plan under title XIX of the 
                Social Security Act (42 U.S.C. 1396 et seq.), the 
                Secretary of Health and Human Services, notwithstanding 
                any other provision of, or limitation under, title XIX 
                of the Social Security Act, shall reimburse the entity, 
                from funds that are made available under that title, 
                for 100 percent of the cost of the test and data 
                reporting.
                    ``(B) Costs.--The costs of a test conducted under 
                this subsection--
                            ``(i) shall include reimbursement for 
                        testing devices and associated supplies 
                        approved for sale by the Food and Drug 
                        Administration and used in compliance with 
                        section 353 of the Public Health Service Act 
                        (42 U.S.C. 263a); and
                            ``(ii) shall include reimbursement for 
                        administering the tests and related services, 
                        as determined appropriate by the State agency.
            ``(3) Head start.--This subsection shall apply to Head 
        Start programs that include coverage, directly or indirectly, 
        for infants and toddlers under the age of 3 years.''.
    (b) Head Start Programs.--Section 642(b) of the Head Start Act (42 
U.S.C. 9837(b)) is amended--
            (1) in paragraph (10), by striking ``and'' at the end;
            (2) in paragraph (11), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(12) with respect to an agency that elects to carry out a 
        program under section 645(h), comply with the requirements of 
        such section 645A(h) in the case of each child eligible to 
participate in the Head Start program to be carried out by the 
agency.''.
    (c) Payments for Screening and Treatment Provided to Children 
Eligible Under Medicaid or SCHIP.--
            (1) Medicaid.--Section 1903(c) of the Social Security Act 
        (42 U.S.C. 1396b(c)) is amended--
                    (A) by inserting ``(1)'' after ``(c)''; and
                    (B) by adding at the end the following:
    ``(2) Nothing in this title or any other provision of law, 
including the payment limitation commonly known as the `free care 
rule', shall be construed as prohibiting or restricting, or authorizing 
the Secretary to prohibit or restrict, payment under subsection (a) for 
medical assistance for covered services furnished to a child who is 
eligible for or receiving medical assistance under the State plan and 
who receives an asthma, vision, hearing, or other health screening 
test, or is provided treatment, education in disease management, 
corrective eyewear, or hearing aids, through a public elementary or 
secondary school, whether directly or indirectly, and regardless of 
whether the school participates in a program established under 
subsection (a) or (b) of section 320B of the Public Health Service 
Act.''.
            (2) SCHIP.--Section 2105 of the Social Security Act (42 
        U.S.C. 1397ee) is amended by adding at the end the following:
    ``(g) Required Payment for Certain School-Based Services.--Nothing 
in this title or any other provision of law (including the payment 
limitation under title XIX commonly known as the `free care rule' to 
the extent, if any, such limitation applies to the program established 
under this title), shall be construed as prohibiting or restricting, or 
authorizing the Secretary to prohibit or restrict, payment under 
subsection (a) for child health assistance for covered services 
furnished to a child who is eligible for or receiving such assistance 
under the State plan and who receives an asthma, vision, or hearing 
screening test, or other health screening test that is available to 
children receiving assistance under the State plan, or is provided 
treatment, education in disease management, corrective eyewear, or 
hearing aids through a public elementary or secondary school, whether 
directly or indirectly, and regardless of whether the school 
participates in a program established under subsection (a) or (b) of 
section 320B of the Public Health Service Act.''.

SEC. 1303. ASTHMA, VISION, AND HEARING SCREENING AND TREATMENT FOR 
              CHILDREN ENROLLED IN PUBLIC SCHOOLS.

    Part B of title III of the Public Health Service Act (42 U.S.C. 243 
et seq.) is amended by adding at the end the following:

``SEC. 320B. ASTHMA, VISION, AND HEARING SCREENING AND TREATMENT FOR 
              CHILDREN ENROLLED IN PUBLIC SCHOOLS.

    ``(a) Asthma Screening and Case Management Program.--
            ``(1) In general.--The Secretary, in collaboration with the 
        Secretary of Education, shall carry out an asthma screening and 
        case management program under which local educational agencies 
        shall be reimbursed for the provision of asthma screening and 
        case management to children enrolled in public elementary 
        schools and secondary schools located in areas with respect to 
        which there is a high incidence of childhood asthma.
            ``(2) Program elements.--Under the program, a local 
        educational agency shall--
                    ``(A) determine whether a child enrolled in a 
                school described in paragraph (1) has received an 
                asthma screening test using a test that is appropriate 
                for age and risk factors on the enrollment of the child 
                in the school;
                    ``(B) in the case of a child who has not received 
                an asthma screening test, ensure that the child 
                receives such a test either by referral or by 
                performing the test (under contract or otherwise); and
                    ``(C) in the case of a child determined to have 
                asthma, provide treatment or refer the child for 
                treatment (including case management) and education in 
                the management of asthma.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection with respect to 
        a child, and any data reporting with respect to the child, who 
        is not eligible for coverage under title XIX or XXI of the 
        Social Security Act, or is not otherwise covered under a health 
        insurance plan, $10,000,000 for each fiscal year.
    ``(b) Vision and Hearing Screening Program.--
            ``(1) In general.--The Secretary shall carry out a vision 
        and hearing screening program under which local educational 
        agencies shall be reimbursed for the provision of vision and 
        hearing screening and corrective eyewear and hearing aids to 
        children enrolled in public elementary schools and secondary 
        schools.
            ``(2) Program elements.--Under the program, a local 
        educational agency shall--
                    ``(A) elect to provide vision and hearing screening 
                tests--
                            ``(i) to all children enrolled in a school 
                        who are most likely to suffer from vision or 
                        hearing loss; or
                            ``(ii) to all children enrolled in a 
                        school;
                    ``(B) ensure that the category of children elected 
                under subparagraph (A) receive such tests, either by 
                referral or by performing the test (under contract or 
                otherwise), that are appropriate for the age and risk 
                factors of the children, based on the enrollment of the 
                children in the school; and
                    ``(C) in the case of any child determined to have a 
                vision or hearing impairment, provide the child with 
                such eyewear and hearing aids as are appropriate to 
                correct the child's vision or hearing, to the extent 
                that such correction is feasible.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection with respect to 
        a child, and any data reporting with respect to the child, who 
        is not eligible for coverage under title XIX or XXI of the 
        Social Security Act, or is not otherwise covered under a health 
        insurance plan, $10,000,000 for each fiscal year.
    ``(c) Reimbursement.--
            ``(1) Children enrolled in or eligible for medicaid.--
                    ``(A) In general.--With respect to a child who is 
                eligible for or receiving medical assistance under a 
                State plan under title XIX of the Social Security Act 
                (42 U.S.C. 1396 et seq.) and who receives, or is 
                provided, a test, treatment, education, corrective 
                eyewear, or hearing aid under a program established 
                under subsection (a) or (b), the Secretary, 
                notwithstanding any other provision of, or limitation 
                under, such title XIX, including the payment limitation 
                commonly known as the `free care rule', shall reimburse 
                the local educational agency administering such program 
                from funds that are made available under such title XIX 
                for 100 percent of the cost of the performance, 
                arrangement, or provision and data reporting.
                    ``(B) Costs.--The costs of a test conducted under 
                this section shall include reimbursement for--
                            ``(i) testing devices and associated 
                        supplies approved for sale by the Food and Drug 
                        Administration and used in compliance with 
                        section 353; and
                            ``(ii) administering the tests and related 
                        services, as determined appropriate by the 
                        State agency responsible for the administration 
                        of title XIX of the Social Security Act (42 
                        U.S.C. 1396 et seq.).
            ``(2) Children enrolled in or eligible for schip.--
                    ``(A) In general.--With respect to a child who is 
                eligible for or receiving child health assistance under 
                a State plan under title XXI of the Social Security Act 
                (42 U.S.C. 1397aa et seq.) and who receives, or is 
                provided, a test, treatment, education, corrective 
                eyewear, or hearing aid under a program established 
                under subsection (a) or (b), the Secretary, 
                notwithstanding any other provision of, or limitation 
                under, such title XXI, or any other provision of law 
                (including the payment limitation under title XIX 
                commonly known as the `free care rule' to the extent, 
                if any, such limitation applies to the State children's 
                health insurance program established under title XXI of 
                that Act), shall reimburse the local educational agency 
                administering such program from funds that are made 
                available under such title XXI for 100 percent of the 
                cost of the performance, arrangement, or provision and 
                data reporting.
                    ``(B) Costs.--The costs shall include the costs 
                described in paragraph (1)(B).
    ``(d) Rule of Construction.--Nothing in this section shall be 
construed to require that a local educational agency participate in a 
program carried out by the Secretary under this section.
    ``(e) Definitions.--In this section, the terms `local educational 
agency', `elementary school', and `secondary school' have the meanings 
given such terms in section 9101 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801).''.

SEC. 1304. GENERAL EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this chapter take effect on the date that is 18 
months after the date of enactment of this Act.
    (b) Head Start Waivers.--
            (1) In general.--An entity carrying out activities under 
        section 642 or 645A of the Head Start Act (42 U.S.C. 9837, 
        9840a), may be awarded a waiver from the amendments made by 
        section 1302 if the State where the entity is located 
        establishes to the satisfaction of the Secretary of Health and 
        Human Services, in accordance with requirements and procedures 
        recommended in accordance with paragraph (2) to the Secretary 
        by the Director of the Centers for Disease Control and 
        Prevention a plan for increasing the number of asthma, vision, 
        and hearing screening tests of children enrolled in the Early 
        Head Start and Head Start programs in the State.
            (2) Development of waiver procedures and requirements.--Not 
        later than 1 year after the date of enactment of this Act, the 
        Director of the Centers for Disease Control and Prevention 
        shall develop and recommend to the Secretary of Health and 
        Human Services criteria and procedures (including a timetable 
        for the submission of the State plan described in paragraph 
        (1)) for the awarding of waivers under that paragraph.

            CHAPTER 2--INCREASE IN FUNDING FOR HUD PROGRAMS

SEC. 1311. LEAD-BASED PAINT HAZARD CONTROL GRANTS.

    Section 1011(p) of the Residential Lead-Based Paint Hazard 
Reduction Act of 1992 (42 U.S.C. 4852) is amended by striking 
``appropriated'' and all that follows through the period and inserting 
``appropriated--
            ``(1) $125,000,000 for fiscal year 1993 and $250,000,000 
        for fiscal year 1994;
            ``(2) $200,000,000 for fiscal year 2004;
            ``(3) $250,000,000 for fiscal year 2005; and
            ``(4) $300,000,000 beginning with fiscal year 2006 and 
        fiscal years thereafter.''.

SEC. 1312. HEALTHY HOMES INITIATIVE PROGRAM.

    There are authorized to be appropriated for the Healthy Homes 
Initiative program established under sections 501 and 502 of the 
Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-1; 1701z-2), 
for which funds were provided under title II of the Departments of 
Veterans Affairs and Housing and Urban Development, Independent 
Agencies Appropriations Act, 2000--
            (1) $100,000,000 for fiscal year 2004; and
            (2) $150,000,000 beginning with fiscal year 2005 and fiscal 
        years thereafter.

            CHAPTER 3--YOUTH SMOKING CESSATION AND EDUCATION

SEC. 1321. SHORT TITLE.

    This chapter may be cited as the ``Kids Deserve Freedom from 
Tobacco Act of 2003'' or the ``KIDS Act''.

           Subchapter A--Protection of Children from Tobacco

PART I--FOOD AND DRUG ADMINISTRATION JURISDICTION AND GENERAL AUTHORITY

SEC. 1331. REFERENCE.

    Whenever in this subchapter an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et 
seq.).

SEC. 1332. STATEMENT OF GENERAL AUTHORITY.

    The regulations promulgated by the Secretary in the rule dated 
August 28, 1996 (Vol. 61, No. 168 C.F.R.), adding part 897 to title 21, 
Code of Federal Regulations, shall be deemed to have been lawfully 
promulgated under the Food, Drug, and Cosmetic Act as amended by this 
subchapter. Such regulations shall apply to all tobacco products.

SEC. 1333. NONAPPLICABILITY TO OTHER DRUGS OR DEVICES.

    Nothing in this subchapter, or an amendment made by this 
subchapter, shall be construed to affect the regulation of drugs and 
devices that are not tobacco products by the Secretary under the 
Federal Food, Drug, and Cosmetic Act.

SEC. 1334. CONFORMING AMENDMENTS TO CONFIRM JURISDICTION.

    (a) Definitions.--
            (1) Drug.--Section 201(g)(1) (21 U.S.C. 321(g)(1)) is 
        amended by striking ``; and (D)'' and inserting ``; (D) 
        nicotine in tobacco products; and (E)''.
            (2) Devices.--Section 201(h) (21 U.S.C. 321(h)) is amended 
        by adding at the end the following: ``Such term includes a 
        tobacco product.''.
            (3) Other definitions.--Section 201 (21 U.S.C. 321) is 
        amended by adding at the end the following:
            ``(nn) The term `tobacco product' means any product made or 
        derived from tobacco that is intended for human consumption.''.
    (b) Prohibited Acts.--Section 301 (21 U.S.C. 331) is amended by 
adding at the end the following:
    ``(hh) The manufacture, labeling, distribution, advertising and 
sale of any adulterated or misbranded tobacco product in violation of--
            ``(1) regulations issued under this Act; or
            ``(2) the KIDS Act, or regulations issued under such 
        Act.''.
    (c) Adulterated Drugs and Devices.--
            (1) In general.--Section 501 of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 351) is amended by adding at the end 
        the following:
    ``(j) If it is a tobacco product and it does not comply with the 
provisions of subchapter D of this chapter or the KIDS Act.''.
            (2) Misbranding.--Section 502(q) (21 U.S.C. 352(q)) is 
        amended--
                    (A) by striking ``or (2)'' and inserting in lieu 
                thereof ``(2)''; and
                    (B) by inserting before the period the following: 
                ``, or (3) in the case of a tobacco product, it is 
                sold, distributed, advertised, labeled, or used in 
                violation of this Act or the KIDS Act, or regulations 
                prescribed under such Acts''.
    (d) Restricted Device.--Section 520(e) (21 U.S.C. 360j(e)) is 
amended--
            (1) in paragraph (1), by striking ``or use--'' and 
        inserting ``or use, including restrictions on the access to, 
        and the advertising and promotion of, tobacco products--''; and
            (2) by adding at the end the following:
    ``(3) Tobacco products are a restricted device under this 
paragraph.''.
    (e) Regulatory Authority.--Section 503(g) (21 U.S.C. 353(g)) is 
amended by adding at the end the following:
    ``(6) The Secretary may regulate any tobacco product as a drug, 
device, or both, and may designate the office of the Administration 
that shall be responsible for regulating such products.''.

SEC. 1335. GENERAL RULE.

    Section 513(a)(1)(B) (21 U.S.C. 360c(a)(1)(B)) is amended by adding 
at the end the following: ``The sale of tobacco products to adults that 
comply with performance standards established for these products under 
section 514 and other provisions of this Act and any regulations 
prescribed under this Act shall not be prohibited by the Secretary, 
notwithstanding sections 502(j), 516, and 518.''.

SEC. 1336. SAFETY AND EFFICACY STANDARD AND RECALL AUTHORITY.

    (a) Safety and Efficacy Standard.--Section 513(a) (21 U.S.C. 
360c(a)) is amended--
            (1) in paragraph (1)(B), by inserting after the first 
        sentence the following: ``For a device which is a tobacco 
        product, the assurance in the previous sentence need not be 
        found if the Secretary finds that special controls achieve the 
        best public health result.''; and
            (2) in paragraph (2)--
                    (A) by redesignating subparagraphs (A), (B) and (C) 
                as clauses (i), (ii) and (iii), respectively;
                    (B) by striking ``(2) For'' and inserting ``(2)(A) 
                For''; and
                    (C) by adding at the end the following:
    ``(B) For purposes of paragraph (1)(B), subsections (c)(2)(C), 
(d)(2)(B), (e)(2)(A), (f)(3)(B)(i), and (f)(3)(C)(i), and sections 514, 
519(a), 520(e), and 520(f), the safety and effectiveness of a device 
that is a tobacco product need not be found if the Secretary finds that 
the action to be taken under any such provision would achieve the best 
public health result. The finding as to whether the best public health 
result has been achieved shall be determined with respect to the risks 
and benefits to the population as a whole, including users and non-
users of the tobacco product, and taking into account--
            ``(i) the increased or decreased likelihood that existing 
        consumers of tobacco products will stop using such products; 
        and
            ``(ii) the increased or decreased likelihood that those who 
        do not use tobacco products will start using such products.''.
    (b) Recall Authority.--Section 518(e)(1) (21 U.S.C. 360h(e)(1)) is 
amended by inserting after ``adverse health consequences or death,'' 
the following: ``and for tobacco products that the best public health 
result would be achieved,''.

                PART II--REGULATION OF TOBACCO PRODUCTS

SEC. 1341. PERFORMANCE STANDARDS.

    Section 514(a) (21 U.S.C. 60d(a)) is amended--
            (1) in paragraph (2), by striking ``device'' and inserting 
        ``nontobacco product device'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (5) and (6), respectively; and
            (3) by inserting after paragraph (2) the following:
    ``(3) The Secretary may adopt a performance standard under section 
514(a)(2) for a tobacco product regardless of whether the product has 
been classified under section 513. Such standard may--
            ``(A) include provisions to achieve the best public health 
        result;
            ``(B) where necessary to achieve the best public health 
        result, include--
                    ``(i) provisions respecting the construction, 
                components, constituents, ingredients, and properties 
                of the tobacco product device, including the reduction 
                or elimination (or both) of nicotine and the other 
                components, ingredients, and constituents of the 
                tobacco product, its components and its by-products, 
                based upon the best available technology;
                    ``(ii) provisions for the testing (on a sample 
                basis or, if necessary, on an individual basis) of the 
                tobacco product device or, if it is determined that no 
                other more practicable means are available to the 
                Secretary to assure the conformity of the tobacco 
                product device to such standard, provisions for the 
                testing (on a sample basis or, if necessary, on an 
                individual basis) by the Secretary or by another person 
                at the direction of the Secretary;
                    ``(iii) provisions for the measurement of the 
                performance characteristics of the tobacco product 
                device;
                    ``(iv) provisions requiring that the results of 
                each test or of certain tests of the tobacco product 
                device required to be made under clause (ii) 
                demonstrate that the tobacco product device is in 
                conformity with the portions of the standard for which 
                the test or tests were required; and
                    ``(v) a provision that the sale and distribution of 
                the tobacco product device be restricted but only to 
                the extent that the sale and distribution of a tobacco 
                product device may otherwise be restricted under this 
                Act; and
            ``(C) where appropriate, require the use and prescribe the 
        form and content of labeling for the use of the tobacco product 
        device.
    ``(4) Not later than 1 year after the date of enactment of the KIDS 
Act, the Secretary (acting through the Commissioner of Food and Drugs) 
shall establish a Scientific Advisory Committee to evaluate whether a 
level or range of levels exists at which nicotine yields do not produce 
drug-dependence. The Advisory Committee shall also review any other 
safety, dependence or health issue assigned to it by the Secretary. The 
Secretary need not promulgate regulations to establish the 
Committee.''.

SEC. 1342. APPLICATION OF FEDERAL FOOD, DRUG, AND COSMETIC ACT TO 
              TOBACCO PRODUCTS.

    (a) Tobacco Products Regulation.--Chapter V (21 U.S.C. 351 et seq.) 
is amended by adding at the end the following:

``SUBCHAPTER F--TOBACCO PRODUCT DEVELOPMENT, MANUFACTURING, AND ACCESS 
                              RESTRICTIONS

``SEC. 570. PROMULGATION OF REGULATIONS.

    ``Any regulations necessary to implement this subchapter shall be 
promulgated not later than 12 months after the date of enactment of 
this subchapter using notice and comment rulemaking (in accordance with 
chapter 5 of title 5, United States Code). Such regulations may be 
revised thereafter as determined necessary by the Secretary.

``SEC. 571. MAIL-ORDER SALES.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of this subchapter, the Secretary shall review and determine 
whether persons under the age of 18 years are obtaining tobacco 
products by means of the mail.
    ``(b) Restrictions.--Based solely upon the review conducted under 
subsection (a), the Secretary may take regulatory and administrative 
action to restrict or eliminate mail order sales of tobacco products.

``SEC. 572. IMPLEMENTATION OF THE PROPOSED RESOLUTION.

    ``(a) Additional Restrictions on Marketing, Advertising, and 
Access.--Not later than 18 months after the date of the enactment of 
this subchapter, the Secretary shall revise the regulations related to 
tobacco products promulgated by the Secretary on August 28, 1996 (61 
Fed. Reg. 44396) to include the additional restrictions on marketing, 
advertising, and access described in Title IA and Title IC of the 
Proposed Resolution entered into by the tobacco manufacturers and the 
State attorneys general on June 20, 1997, except that the Secretary 
shall not include an additional restriction on marketing or advertising 
in such regulations if its inclusion would violate the First Amendment 
to the Constitution.
    ``(b) Warnings.--Not later than 18 months after the date of the 
enactment of this subchapter, the Secretary shall promulgate 
regulations to require warnings on cigarette and smokeless tobacco 
labeling and advertisements. The content, format, and rotation of 
warnings shall conform to the specifications described in Title IB of 
the Proposed Resolution entered into by the tobacco manufacturers and 
the State attorneys general on June 20, 1997.
    ``(c) Rules of Construction.--
            ``(1) In general.--Nothing in this section shall be 
        construed to limit the ability of the Secretary to change the 
        text or layout of any of the warning statements, or any of the 
        labeling provisions, under the regulations promulgated under 
        subsection (b) and other provisions of this Act, if determined 
        necessary by the Secretary in order to make such statements or 
        labels larger, more prominent, more conspicuous, or more 
        effective.
            ``(2) Unfair acts.--Nothing in this section (other than the 
        requirements of subsections (a) and (b)) shall be construed to 
        limit or restrict the authority of the Federal Trade Commission 
        with respect to unfair or deceptive acts or practices in the 
        advertising of tobacco products.
    ``(d) Limited Preemption.--
            ``(1) State and local action.--No warning label with 
        respect to tobacco products, or any other tobacco product for 
        which warning labels have been required under this section, 
        other than the warning labels required under this Act, shall be 
        required by any State or local statute or regulation to be 
        included on any package of a tobacco product.
            ``(2) Effect on liability law.--Nothing in this section 
        shall relieve any person from liability at common law or under 
        State statutory law to any other person.
    ``(e) Violation of Section.--Any tobacco product that is in 
violation of this section shall be deemed to be misbranded.

``SEC. 573. GENERAL RESPONSIBILITIES OF MANUFACTURERS, DISTRIBUTORS AND 
              RETAILERS.

    ``Each manufacturer, distributor, and retailer shall ensure that 
the tobacco products it manufactures, labels, advertises, packages, 
distributes, sells, or otherwise holds for sale comply with all 
applicable requirements of this Act.

``SEC. 574. DISCLOSURE AND REPORTING OF TOBACCO AND NONTOBACCO 
              INGREDIENTS AND CONSTITUENTS.

    ``(a) Disclosure of All Ingredients.--
            ``(1) Immediate and annual disclosure.--Not later than 30 
        days after the date of enactment of this subchapter, and 
        annually thereafter, each manufacturer of a tobacco product 
        shall submit to the Secretary an ingredient list for each brand 
        of tobacco product it manufactures that contains the 
        information described in paragraph (2).
            ``(2) Requirements.--The list described in paragraph (1) 
        shall, with respect to each brand or variety of tobacco product 
        of a manufacturer, include--
                    ``(A) a list of all ingredients, constituents, 
                substances, and compounds that are found in or added to 
                the tobacco or tobacco product (including the paper, 
                filter, or packaging of the product if applicable) in 
                the manufacture of the tobacco product, for each brand 
                or variety of tobacco product so manufactured, 
                including, if determined necessary by the Secretary, 
                any material added to the tobacco used in the product 
                prior to harvesting;
                    ``(B) the quantity of the ingredients, 
                constituents, substances, and compounds that are listed 
                under subparagraph (A) in each brand or variety of 
                tobacco product;
                    ``(C) the nicotine content of the product, measured 
                in milligrams of nicotine;
                    ``(D) for each brand or variety of cigarettes--
                            ``(i) the filter ventilation percentage 
                        (the level of air dilution in the cigarette as 
                        provided by the ventilation holes in the 
                        filter, described as a percentage);
                            ``(ii) the pH level of the smoke of the 
                        cigarette; and
                            ``(iii) the tar, unionized (free) nicotine, 
                        and carbon monoxide delivery level and any 
                        other smoking conditions established by the 
                        Secretary, reported in milligrams of tar, 
                        nicotine, and carbon monoxide per cigarette;
                    ``(E) for each brand or variety of smokeless 
                tobacco products--
                            ``(i) the pH level of the tobacco;
                            ``(ii) the moisture content of the tobacco 
                        expressed as a percentage of the weight of the 
                        tobacco; and
                            ``(iii) the nicotine content--
                                    ``(I) for each gram of the product, 
                                measured in milligrams of nicotine;
                                    ``(II) expressed as a percentage of 
                                the dry weight of the tobacco; and
                                    ``(III) with respect to unionized 
                                (free) nicotine, expressed as a 
                                percentage per gram of the tobacco and 
                                expressed in milligrams per gram of the 
                                tobacco; and
                    ``(F) any other information determined appropriate 
                by the Secretary.
            ``(3) Methods.--The Secretary shall have the authority to 
        promulgate regulations to establish the methods to be used by 
        manufacturers in making the determinations required under 
        paragraph (2).
            ``(4) Other tobacco products.--The Secretary shall 
        prescribe such regulations as may be necessary to establish 
        information disclosure procedures for other tobacco products.
    ``(b) Safety Assessments.--
            ``(1) Application to new ingredients.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subchapter, and annually 
                thereafter, each manufacturer shall submit to the 
                Secretary a safety assessment for each new ingredient, 
                constituent, substance, or compound that such 
                manufacturer desires to make a part of a tobacco 
                product. Such new ingredient, constituent, substance, 
                or compound shall not be included in a tobacco product 
                prior to approval by the Secretary of such a safety 
                assessment.
                    ``(B) Method of filing.--A safety assessment 
                submitted under subparagraph (A) shall be signed by an 
                officer of the manufacturer who is acting on behalf of 
                the manufacturer and who has the authority to bind the 
                manufacturer, and contain a statement that ensures that 
                the information contained in the assessment is true, 
                complete and accurate.
                    ``(C) Definition of new ingredient.--For purposes 
                of subparagraph (A), the term `new ingredient, 
                constituent, substance, or compound' means an 
                ingredient, constituent, substance, or compound listed 
                under subsection (a)(1) that was not used in the brand 
                or variety of tobacco product involved prior to January 
                1, 1998.
            ``(2) Application to other ingredients.--With respect to 
        the application of this section to ingredients, constituents 
        substances, or compounds listed under subsection (a) to which 
        paragraph (1) does not apply, all such ingredients, 
        constituents, substances, or compounds shall be reviewed 
        through the safety assessment process within the 5-year period 
        beginning on the date of enactment of this subchapter. The 
        Secretary shall develop a procedure for the submission of 
        safety assessments of such ingredients, constituents, 
        substances, or compounds that staggers such safety assessments 
        within the 5-year period.
            ``(3) Basis of assessment.--The safety assessment of an 
        ingredient, constituent, substance, or compound described in 
        paragraphs (1) and (2) shall--
                    ``(A) be based on the best scientific evidence 
                available at the time of the submission of the 
                assessment; and
                    ``(B) demonstrate that there is a reasonable 
                certainty among experts qualified by scientific 
                training and experience who are consulted, that the 
                ingredient, constituent, substance, or compound will 
                not present any risk to consumers or the public in the 
                quantities used under the intended conditions of use.
    ``(c) Prohibition.--
            ``(1) Regulations.--Not later than 12 months after the date 
        of enactment of this subchapter, the Secretary shall promulgate 
        regulations to prohibit the use of any ingredient, constituent, 
        substance, or compound in the tobacco product of a 
        manufacturer--
                    ``(A) if no safety assessment has been submitted by 
                the manufacturer for the ingredient, constituent, 
                substance, or compound as otherwise required under this 
                section; or
                    ``(B) if the Secretary finds that the manufacturer 
                has failed to demonstrate the safety of the ingredient, 
                constituent, substance, or compound that was the 
                subject of the assessment under paragraph (2).
            ``(2) Review of assessments.--
                    ``(A) General review.--Not later than 180 days 
                after the receipt of a safety assessment under 
                subsection (b), the Secretary shall review the findings 
                contained in such assessment and approve or disapprove 
                of the safety of the ingredient, constituent, 
                substance, or compound that was the subject of the 
                assessment. The Secretary may, for good cause, extend 
                the period for such review. The Secretary shall provide 
                notice to the manufacturer of an action under this 
                subparagraph.
                    ``(B) Inaction by secretary.--If the Secretary 
                fails to act with respect to an assessment of an 
                existing ingredient, constituent, substance, or 
                additive during the period referred to in subparagraph 
                (A), the manufacturer of the tobacco product involved 
                may continue to use the ingredient, constituent, 
                substance, or compound involved until such time as the 
                Secretary makes a determination with respect to the 
                assessment.
    ``(d) Right To Know; Full Disclosure of Ingredients to the 
Public.--
            ``(1) In general.--Except as provided in paragraph (3), a 
        package of a tobacco product shall disclose all ingredients, 
        constituents, substances, or compounds contained in the product 
        in accordance with regulations promulgated under section 701(a) 
        by the Secretary.
            ``(2) Disclosure of percentage of domestic and foreign 
        tobacco.--The regulations referred to in paragraph (1) shall 
        require that the package of a tobacco product disclose, with 
        respect to the tobacco contained in the product--
                    ``(A) the percentage that is domestic tobacco; and
                    ``(B) the percentage that is foreign tobacco.
            ``(3) Health disclosure.--Notwithstanding section 301(j), 
        the Secretary may require the public disclosure of any 
        ingredient, constituent, substance, or compound contained in a 
        tobacco product that relates to a trade secret or other matter 
        referred to in section 1905 of title 18, United States Code, if 
        the Secretary determines that such disclosure will promote the 
        public health.

``SEC. 575. REDUCED RISK PRODUCTS.

    ``(a) Prohibition.--
            ``(1) In general.--No manufacturer, distributor or retailer 
        of tobacco products may make any direct or implied statement in 
        advertising or on a product package that could reasonably be 
        interpreted to state or imply a reduced health risk associated 
        with a tobacco product unless the manufacturer demonstrates to 
        the Secretary, in such form as the Secretary may require, that 
        based on the best available scientific evidence the product 
        significantly reduces the overall health risk to the public 
        when compared to other tobacco products.
            ``(2) Submission to secretary.--Prior to making any 
        statement described in paragraph (1), a manufacturer, 
        distributor or retailer shall submit such statement to the 
        Secretary, who shall review such statement to ensure its 
        accuracy and, in the case of advertising, to prevent such 
        statement from increasing, or preventing the contraction of, 
        the size of the overall market for tobacco products.
    ``(b) Determination by Secretary.--If the Secretary determines that 
a statement described in subsection (a)(2) is permissible because the 
tobacco product does present a significantly reduced overall health 
risk to the public, the Secretary may permit such statement to be made.
    ``(c) Development or Acquisition of Reduced Risk Technology.--
            ``(1) In general.--Any manufacturer that develops or 
        acquires any technology that the manufacturer reasonably 
        believes will reduce the risk from tobacco products shall 
        notify the Secretary of the development or acquisition of the 
        technology. Such notice shall be in such form and within such 
        time as the Secretary shall require.
            ``(2) Confidentiality.--With respect to any technology 
        described in paragraph (1) that is in the early stages of 
        development (as determined by the Secretary), the Secretary 
        shall establish protections to ensure the confidentiality of 
        any proprietary information submitted to the Secretary under 
        this subsection during such development.

``SEC. 576. ACCESS TO COMPANY INFORMATION.

    ``(a) Compliance Procedures.--Each manufacturer of tobacco products 
shall establish procedures to ensure compliance with this Act.
    ``(b) Requirement.--In addition to any other disclosure obligations 
under this Act, the KIDS Act, or any other law, each manufacturer of 
tobacco products shall, not later than 90 days after the date of the 
enactment of the KIDS Act and thereafter as required by the Secretary, 
disclose to the Secretary all nonpublic information and research in its 
possession or control relating to the addiction or dependency, or the 
health or safety of tobacco products, including (without limitation) 
all research relating to processes to make tobacco products less 
hazardous to consumers and the research and documents described in 
subsection (c).
    ``(c) Research and Documents.--The documents described in this 
section include any documents concerning tobacco product research 
relating to--
            ``(1) nicotine, including--
                    ``(A) the interaction between nicotine and other 
                components in tobacco products including ingredients in 
                the tobacco and smoke components;
                    ``(B) the role of nicotine in product design and 
                manufacture, including product charters, and parameters 
                in product development, the tobacco blend, filter 
                technology, and paper;
                    ``(C) the role of nicotine in tobacco leaf 
                purchasing;
                    ``(D) reverse engineering activities involving 
                nicotine (such as analyzing the products of other 
                companies);
                    ``(E) an analysis of nicotine delivery; and
                    ``(F) the biology, psychopharmacology and any other 
                health effects of nicotine;
            ``(2) other ingredients, including--
                    ``(A) the identification of ingredients in tobacco 
                products and constituents in smoke, including additives 
                used in product components such as paper, filter, and 
                wrapper;
                    ``(B) any research on the health effects of 
                ingredients; and
                    ``(C) any research or other information explaining 
                what happens to ingredients when they are heated and 
                burned;
            ``(3) less hazardous or safer products, including any 
        research or product development information on activities 
        involving reduced risk, less hazardous, low-tar or reduced-tar, 
        low-nicotine or reduced-nicotine or nicotine-free products; and
            ``(4) tobacco product advertising, marketing and promotion, 
        including--
                    ``(A) documents related to the design of 
                advertising campaigns, including the desired 
                demographics for individual products on the market or 
                being tested;
                    ``(B) documents concerning the age of initiation of 
                tobacco use, general tobacco use behavior, beginning 
                smokers, pre-smokers, and new smokers;
                    ``(C) documents concerning the effects of 
                advertising; and
                    ``(D) documents concerning future marketing options 
                or plans in light of the requirements and regulations 
                to be imposed under this subchapter or the KIDS Act.
    ``(d) Authority of Secretary.--With respect to tobacco product 
manufacturers, the Secretary shall have the same access to records and 
information and inspection authority as is available with respect to 
manufacturers of other medical devices.

``SEC. 577. OVERSIGHT OF TOBACCO PRODUCT MANUFACTURING.

    ``The Secretary shall by regulation prescribe good manufacturing 
practice standards for tobacco products. Such regulations shall be 
modeled after good manufacturing practice regulations for medical 
devices, food, and other items under section 520(f). Such standards 
shall be directed specifically toward tobacco products, and shall 
include--
            ``(1) a quality control system, to ensure that tobacco 
        products comply with such standards;
            ``(2) a system for inspecting tobacco product materials to 
        ensure their compliance with such standards;
            ``(3) requirements for the proper handling of finished 
        tobacco products;
            ``(4) strict tolerances for pesticide chemical residues in 
        or on tobacco or tobacco product commodities in the possession 
        of the manufacturer, except that nothing in this paragraph 
        shall be construed to affect any authority of the Environmental 
        Protection Agency;
            ``(5) authority for officers or employees of the Secretary 
        to inspect any factory, warehouse, or other establishment of 
        any tobacco product manufacturer, and to have access to 
        records, files, papers, processes, controls and facilities 
        related to tobacco product manufacturing, in accordance with 
        appropriate authority and rules promulgated under this Act; and
            ``(6) a requirement that the tobacco product manufacturer 
        maintain such files and records as the Secretary may specify, 
        as well as that the manufacturer report to the Secretary such 
        information as the Secretary shall require, in accordance with 
        section 519.

``SEC. 578. PRESERVATION OF STATE AND LOCAL AUTHORITY.

    ``Notwithstanding section 521 and except as otherwise provided for 
in section 572(e), nothing in this subchapter shall be construed as 
prohibiting a State or locality from imposing requirements, 
prohibitions, penalties or other measures to further the purposes of 
this subchapter that are in addition to the requirements, prohibitions, 
or penalties required under this subchapter. State and local 
governments may impose additional tobacco product control measures to 
further restrict or limit the use of such products.''.

SEC. 1343. FUNDING.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this part (and 
the amendments made by this part).
    (b) Trigger.--No expenditures shall be made under this part (or the 
amendments made by this part) during any fiscal year in which the 
annual amount appropriated for the Food and Drug Administration is less 
than the amount so appropriated for the prior fiscal year.

SEC. 1344. REPEALS.

    The following provisions of law are repealed:
            (1) The Federal Cigarette Labeling and Advertising Act (15 
        U.S.C. 1331 et seq.), except for sections 5(d)(1) and (2) and 
        6.
            (2) The Comprehensive Smokeless Tobacco Health Education 
        Act of 1986 (15 U.S.C. 4401 et seq.), except for sections 3(f) 
        and 8(a) and (b).
            (3) The Comprehensive Smoking Education Act of 1964 (Public 
        Law 98-474).

                 Subchapter B--Miscellaneous Provisions

SEC. 1351. NONAPPLICATION TO TOBACCO PRODUCERS.

    (a) In General.--This chapter and the amendments made by this 
chapter shall not apply to the producers of tobacco leaf, including 
tobacco growers, tobacco warehouses, and tobacco grower cooperatives.
    (b) Rule of Construction.--Nothing in this chapter, or an amendment 
made by this chapter, shall be construed to provide the Secretary of 
Health and Human Services with the authority to--
            (1) enter onto a farm owned by a producer of tobacco leaf 
        without the written consent of such producer; or
            (2) promulgate regulations on any matter that involves the 
        production of tobacco leaf or a producer thereof, other than 
        activities by a manufacturer that affect production.
    (c) Manufacturer Acting as Producer.--Notwithstanding any other 
provision of this section, if a producer of tobacco leaf is also a 
tobacco product manufacturer or is owned or controlled by a tobacco 
product manufacturer, the producer shall be subject to the provisions 
of this chapter, and the amendments made by this chapter, in the 
producer's capacity as a manufacturer.
    (d) Definition.--In this section, the term ``controlled by'' means 
a producer that is a member of the same controlled group of 
corporations, as that term is used for purposes of section 52(a) of the 
Internal Revenue Code of 1986, or under common control within the 
meaning of the regulations promulgated under section 52(b) of such 
Code.

SEC. 1352. EQUAL TREATMENT OF RETAIL OUTLETS.

    The Secretary of Health and Human Services shall promulgate 
regulations to require that retail establishments that are accessible 
to individuals under the age of 18, for which the predominant business 
is the sale of tobacco products, comply with any advertising 
restrictions applicable to such establishments.

             CHAPTER 4--COVERAGE OF CHILDHOOD IMMUNIZATIONS

SEC. 1361. SHORT TITLE.

    This chapter be cited as the ``Comprehensive Insurance Coverage of 
Childhood Immunization Act of 2003''.

SEC. 1362. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 
              1974.

    (a) In General.--Subpart B of part 7 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1185 et 
seq.), as amended by section 1214, is further amended by adding at the 
end the following:

``SEC. 715. STANDARD RELATING TO COVERAGE OF CHILDHOOD IMMUNIZATION.

    ``(a) In General.--A group health plan, and a health insurance 
issuer offering health insurance coverage in connection with a group 
health plan, shall provide for each plan year comprehensive coverage 
for routine immunizations for each individual who is a dependent of a 
participant or beneficiary under the plan and is under 19 years of age.
    ``(b) Comprehensive Coverage.--For purposes of this section, 
comprehensive coverage for routine immunizations for a plan year 
consists of coverage, without deductibles, coinsurance, or other cost-
sharing, for immunizations (including the vaccine itself) in accordance 
with the most recent version of the Recommended Childhood Immunization 
Schedule issued prior to such plan year by the Advisory Committee on 
Immunization Practices of the Centers for Disease Control and 
Prevention.''.
    (b) Conforming Amendment.--The table of contents in section 1 of 
the Employee Retirement Income Security Act of 1974, as amended by 
section 1214, is further amended by inserting after the item relating 
to section 714 the following new item:

``Sec. 715. Standard relating to coverage of childhood immunization.''.

SEC. 1363. AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT.

    (a) Group Market.--Subpart 2 of part A of title XXVII of the Public 
Health Service Act (42 U.S.C. 300gg-4 et seq.), as amended by section 
1213(b), is further amended by adding at the end the following:

``SEC. 2708. STANDARD RELATING TO COVERAGE OF CHILDHOOD IMMUNIZATION.

    ``(a) In General.--A group health plan, and a health insurance 
issuer offering health insurance coverage in connection with a group 
health plan, shall provide for each plan year comprehensive coverage 
for routine immunizations for each individual who is a dependent of a 
participant or beneficiary under the plan and is under 19 years of age.
    ``(b) Comprehensive Coverage.--For purposes of this section, 
comprehensive coverage for routine immunizations for a plan year 
consists of coverage, without deductibles, coinsurance, or other cost-
sharing, for immunizations (including the vaccine itself) in accordance 
with the most recent version of the Recommended Childhood Immunization 
Schedule issued prior to such plan year by the Advisory Committee on 
Immunization Practices of the Centers for Disease Control and 
Prevention.''.
    (b) Individual Market.--The first subpart 3 of part B of title 
XXVII of the Public Health Service Act (42 U.S.C. 300gg-51 et seq.) 
(relating to other requirements) (42 U.S.C. 300gg-51 et seq.) is 
amended--
            (1) by redesignating such subpart as subpart 2; and
            (2) by inserting after section 2753, as added by section 
        1213(c), the following:

``SEC. 2754. STANDARD RELATING TO COVERAGE OF CHILDHOOD IMMUNIZATION.

    ``The provisions of section 2708 shall apply to health insurance 
coverage offered by a health insurance issuer in the individual market 
in the same manner as they apply to health insurance coverage offered 
by a health insurance issuer in connection with a group health plan in 
the small or large group market.''.

SEC. 1364. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

    Subchapter B of chapter 100 of the Internal Revenue Code of 1986 is 
amended--
            (1) in the table of sections, by inserting after the item 
        relating to section 9812 the following new item:

                              ``Sec. 9813. Standard relating to 
                                        coverage of childhood 
                                        immunization.'';
        and
            (2) by inserting after section 9812 the following:

``SEC. 9813. STANDARD RELATING TO COVERAGE OF CHILDHOOD IMMUNIZATION.

    ``(a) In General.--A group health plan shall provide for each plan 
year comprehensive coverage for routine immunizations for each 
individual who is a dependent of a participant or beneficiary under the 
plan and is under 19 years of age.
    ``(b) Comprehensive Coverage.--For purposes of this section, 
comprehensive coverage for routine immunizations for a plan year 
consists of coverage, without deductibles, coinsurance, or other cost-
sharing, for immunizations (including the vaccine itself) in accordance 
with the most recent version of the Recommended Childhood Immunization 
Schedule issued prior to such plan year by the Advisory Committee on 
Immunization Practices of the Centers for Disease Control and 
Prevention.''.

SEC. 1365. EFFECTIVE DATES.

    (a) Group Health Insurance Coverage.--Subject to subsection (c), 
the amendments made by sections 1362, 1363(a), and 1364 apply with 
respect to group health plans for plan years beginning on or after 
January 1, 2004.
    (b) Individual Health Insurance Coverage.--The amendment made by 
section 1363(b) applies with respect to health insurance coverage 
offered, sold, issued, renewed, in effect, or operated in the 
individual market on or after such date.
    (c) Collective Bargaining Exception.--In the case of a group health 
plan maintained pursuant to 1 or more collective bargaining agreements 
between employee representatives and 1 or more employers ratified 
before the date of enactment of this Act, the amendments made sections 
1362, 1363(a), and 1364 shall not apply to plan years beginning before 
the later of--
            (1) the earliest date as of which all such collective 
        bargaining agreements relating to the plan have terminated 
        (determined without regard to any extension thereof agreed to 
        after the date of the enactment of this Act), or
            (2) January 1, 2004.
For purposes of paragraph (1), any plan amendment made pursuant to a 
collective bargaining agreement relating to the plan which amends the 
plan solely to conform to any requirement added by sections 1362, 
1363(a), and 1364 shall not be treated as a termination of such 
collective bargaining agreement.

            Subtitle E--Reducing Environmental Health Risks

            CHAPTER 1--ENVIRONMENTAL PROTECTION OF CHILDREN

SEC. 1401. SHORT TITLE.

    This chapter may be cited as the ``Children's Environmental 
Protection Act''.

SEC. 1402. ENVIRONMENTAL PROTECTION FOR CHILDREN AND OTHER VULNERABLE 
              SUBPOPULATIONS.

    The Toxic Substances Control Act (15 U.S.C. 2601 et seq.) is 
amended by adding at the end the following:

 ``TITLE V--ENVIRONMENTAL PROTECTION FOR CHILDREN AND OTHER VULNERABLE 
                             SUBPOPULATIONS

``SEC. 501. FINDINGS AND POLICY.

    ``(a) Findings.--Congress finds that--
            ``(1) the protection of public health and safety depends on 
        individuals and government officials being aware of the 
        pollution dangers that exist in their homes, schools, and 
        communities, and whether those dangers present special threats 
        to the health of children and other vulnerable subpopulations;
            ``(2) children spend much of their young lives in schools 
        and day care centers, and may face significant exposure to 
        pesticides and other environmental pollutants in those 
        locations;
            ``(3) the metabolism, physiology, and diet of children, and 
        exposure patterns of children to environmental pollutants, 
        differ from those of adults, and those differences and the 
        inherent nature of immature and developing systems of children 
        can make children more susceptible than adults to the harmful 
        effects of environmental pollutants;
            ``(4) a study conducted by the National Academy of Sciences 
        that particularly considered the effects of pesticides on 
        children concluded that current approaches to assessing 
        pesticide risks typically do not consider risks to children 
        and, as a result, current standards and tolerances often fail 
        to adequately protect children;
            ``(5) there are often insufficient data to enable the 
        Administrator, when establishing an environmental and public 
        health standard for an environmental pollutant, to evaluate the 
        special susceptibility or exposure of children to environmental 
        pollutants;
            ``(6) when data are lacking to evaluate the special 
        susceptibility or exposure of children to an environmental 
        pollutant, the Administrator generally--
                    ``(A) does not presume that the environmental 
                pollutant presents a special risk to children; and
                    ``(B) does not apply a special or additional margin 
                of safety to protect the health of children in 
                establishing an environmental or public health standard 
                for that pollutant; and
            ``(7) safeguarding children from environmental pollutants 
        requires the systematic collection of data concerning the 
        special susceptibility and exposure of children to those 
        pollutants, and the adoption of an additional safety factor of 
        at least 10-fold in the establishment of environmental and 
        public health standards where reliable data are not available.
    ``(b) Policy.--It is the policy of the United States that--
            ``(1) the public has the right to be informed about the 
        pollution dangers to which children are being exposed in their 
        homes, schools and communities, and how those dangers may 
        present special health threats to children and other vulnerable 
        subpopulations;
            ``(2) each environmental and public health standard for an 
        environmental pollutant established by the Administrator must, 
        with an adequate margin of safety, protect children and other 
        vulnerable subpopulations;
            ``(3) where data sufficient to evaluate the special 
        susceptibility and exposure of children (including exposure in 
        utero) to an environmental pollutant are lacking, the 
        Administrator should presume that the environmental pollutant 
        poses a special risk to children and should apply an 
        appropriate additional margin of safety of at least 10-fold in 
        establishing an environmental or public health standard for 
        that environmental pollutant;
            ``(4) since it is difficult to identify all conceivable 
        risks and address all uncertainties associated with pesticide 
        use, the use of dangerous pesticides in schools and day care 
        centers should be eliminated; and
            ``(5) the Environmental Protection Agency, the Department 
        of Health and Human Services (including the National Institute 
        of Environmental Health Sciences and the Agency for Toxic 
        Substances and Disease Registry), the National Institutes of 
        Health, and other Federal agencies should support research on 
        the short-term and long-term health effects of cumulative and 
        synergistic exposures of children and other vulnerable 
        subpopulations to environmental pollutants.

``SEC. 502. DEFINITIONS.

    ``In this title:
            ``(1) Child.--The term `child' means an individual 18 years 
        of age or younger.
            ``(2) Committee.--The term `Committee' means the Children's 
        Environmental Health Protection Advisory Committee established 
        under section 506.
            ``(3) Day care center.--The term `day care center' means a 
        center-based child care provider that is licensed, regulated, 
        or registered under applicable State or local law.
            ``(4) Environmental pollutant.--The term `environmental 
        pollutant' includes--
                    ``(A) a hazardous substance (as defined in section 
                101 of the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 
                9601));
                    ``(B) a contaminant (as defined in section 1401 of 
                the Safe Drinking Water Act (42 U.S.C. 300f))
                    ``(C) an air pollutant subject to regulation under 
                the Clean Air Act (42 U.S.C. 7401 et seq.);
                    ``(D) a water pollutant subject to regulation under 
                the Federal Water Pollution Control Act (33 U.S.C. 1251 
                et seq.); and
                    ``(E) a pesticide subject to regulation under the 
                Federal Insecticide, Fungicide, and Rodenticide Act (7 
                U.S.C. 136 et seq.).
            ``(5) Pesticide.--The term `pesticide' has the meaning 
        given the term in section 2 of the Federal Insecticide, 
        Fungicide, and Rodenticide Act (7 U.S.C. 136).
            ``(6) School.--The term `school' means an elementary school 
        (as defined in section 9101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801)), a secondary school (as 
        defined in section 9101 of that Act), a kindergarten, or a 
        nursery school that is public or receives Federal funding.
            ``(7) Vulnerable subpopulation.--The term `vulnerable 
        subpopulation' means--
                    ``(A) children;
                    ``(B) pregnant women;
                    ``(C) the elderly;
                    ``(D) individuals with a history of serious 
                illness; and
                    ``(E) any other subpopulation identified by the 
                Administrator as being likely to experience special 
                health risks from environmental pollutants.

``SEC. 503. SAFEGUARDING CHILDREN AND OTHER VULNERABLE SUBPOPULATIONS.

    ``(a) In General.--The Administrator shall--
            ``(1) ensure that each environmental and public health 
        standard for an environmental pollutant protects children and 
        other vulnerable subpopulations with an adequate margin of 
        safety;
            ``(2) explicitly evaluate data concerning the special 
        susceptibility and exposure of children to any environmental 
        pollutant for which an environmental or public health standard 
        is established; and
            ``(3) adopt an additional margin of safety of at least 10-
        fold in the establishment of an environmental or public health 
        standard for an environmental pollutant in the absence of 
        reliable data on toxicity and exposure of the child to an 
        environmental pollutant or if there is a lack of reliable data 
        on the susceptibility of the child to an environmental 
        pollutant for which the environmental and public health 
        standard is being established.
    ``(b) Establishing, Modifying, or Reevaluating Environmental and 
Public Health Standards.--
            ``(1) In general.--In establishing, modifying, or 
        reevaluating any environmental or public health standard for an 
        environmental pollutant under any law administered by the 
        Administrator, the Administrator shall take into consideration 
        available information concerning--
                    ``(A) all routes of exposure of children to that 
                environmental pollutant; and
                    ``(B) the special susceptibility of children to the 
                environmental pollutant, including--
                            ``(i) neurological differences between 
                        children and adults;
                            ``(ii) the effect of exposure to that 
                        environmental pollutant in utero; and
                            ``(iii) the cumulative effect on a child of 
                        exposure to that environmental pollutant and 
                        any other substance having a common 
                        toxicological mechanism.
            ``(2) Additional safety margin.--If any of the data 
        described in paragraph (1) are not available, the Administrator 
        shall, in completing a risk assessment, risk characterization, 
        or other assessment of risk underlying an environmental or 
        public health standard, adopt an additional margin of safety of 
        at least 10-fold to take into account--
                    ``(A) potential pre-natal and post-natal toxicity 
                of an environmental pollutant; and
                    ``(B) the completeness of data concerning the 
                exposure and toxicity of the environmental pollutant to 
                children.
    ``(c) Identification and Revision of Current Environmental and 
Public Health Standards That Present Special Risks to Children.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this title and annually thereafter, based on the 
        recommendations of the Committee, the Administrator shall--
                    ``(A) repromulgate, in accordance with this 
                section, at least 3 of the environmental and public 
                health standards identified by the Committee as posing 
                a special risk to children; or
                    ``(B) publish a finding in the Federal Register 
                that provides the reasons of the Administrator for 
                declining to repromulgate at least 3 of the 
                environmental and public health standards identified by 
                the Committee as posing a special risk to children.
            ``(2) Determination by administrator.--If the Administrator 
        makes the finding described in paragraph (1)(B), the 
        Administrator shall repromulgate in accordance with this 
        section at least 3 environmental and public health standards 
        determined to pose a greater risk to children's health than the 
        environmental and public health standards identified by the 
        Children's Environmental Health Protection Advisory Committee.
            ``(3) Report.--Not later than 1 year after the date of 
        enactment of this title and annually thereafter, the 
        Administrator shall submit a report to Congress describing the 
        progress made by the Administrator in carrying out this 
        subsection.

``SEC. 504. SAFER ENVIRONMENT FOR CHILDREN.

    ``Not later than 1 year after the date of enactment of this title, 
the Administrator shall--
            ``(1) identify environmental pollutants commonly used or 
        found in areas that are reasonably accessible to children;
            ``(2) create a scientifically peer-reviewed list of 
        substances identified under paragraph (1) with known, likely, 
        or suspected health risks to children;
            ``(3) develop a scientifically peer reviewed list of safer-
        for-children substances and products recommended by the 
        Administrator for use in areas that are reasonably accessible 
        to children that, when applied as recommended by the 
        manufacturer, will minimize potential risks to children from 
        exposure to environmental pollutants;
            ``(4) establish guidelines to help reduce and eliminate 
        exposure of children to environmental pollutants in areas 
        reasonably accessible to children, including advice on how to 
        establish an integrated pest management program;
            ``(5) develop a family right-to-know information kit that 
        includes a summary of helpful information and guidance to 
        families, such as--
                    ``(A) the information developed under paragraph 
                (3);
                    ``(B) the guidelines established under paragraph 
                (4);
                    ``(C) information on the potential health effects 
                of environmental pollutants;
                    ``(D) practical suggestions on how parents may 
                reduce the exposure of their children to environmental 
                pollutants; and
                    ``(E) other information determined to be relevant 
                by the Administrator, in cooperation with the Director 
                of the Centers for Disease Control and Prevention;
            ``(6) make all information developed under this subsection 
        available to Federal and State agencies, to the public, and on 
        the Internet; and
            ``(7) review and update the lists developed under 
        paragraphs (2) and (3) at least annually.

``SEC. 505. RESEARCH TO IMPROVE INFORMATION ON THE EFFECTS OF 
              ENVIRONMENTAL POLLUTANTS ON CHILDREN.

    ``(a) Exposure and Toxicity Data.--The Administrator, the Secretary 
of Agriculture, and the Secretary of Health and Human Services shall 
coordinate and support the development and implementation of basic and 
applied research initiatives to examine--
            ``(1) the health effects and toxicity of pesticides 
        (including active and inert ingredients) and other 
        environmental pollutants on children and other vulnerable 
        subpopulations; and
            ``(2) the exposure of children and other vulnerable 
        subpopulations to environmental pollutants.
    ``(b) Biennial Reports.--The Administrator, the Secretary of 
Agriculture, and the Secretary of Health and Human Services shall 
submit biennial reports to Congress describing actions taken to carry 
out this section.

``SEC. 506. CHILDREN'S ENVIRONMENTAL HEALTH PROTECTION ADVISORY 
              COMMITTEE.

    ``(a) Establishment.--The Administrator shall establish a 
Children's Environmental Health Protection Advisory Committee to assist 
the Administrator in carrying out this title.
    ``(b) Composition.--The Committee shall be comprised of--
            ``(1) medical professionals specializing in pediatric 
        health;
            ``(2) educators;
            ``(3) representatives of community groups;
            ``(4) representatives of environmental and public health 
        nonprofit organizations;
            ``(5) industry representatives; and
            ``(6) representatives of State environmental and public 
        health departments.
    ``(c) Duties.--Not later than 2 years after the date of enactment 
of this title and annually thereafter, the Committee shall develop a 
list of standards that merit reevaluation by the Administrator in order 
to better protect the health of children.
    ``(d) Termination.--The Committee shall terminate not later than 15 
years after the date on which the Committee is established.

``SEC. 507. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this title.''.

SEC. 1403. CONFORMING AMENDMENT.

    The table of contents in section 1 of the Toxic Substances Control 
Act (15 U.S.C. prec. 2601) is amended by adding at the end the 
following:

 ``TITLE V--ENVIRONMENTAL PROTECTION FOR CHILDREN AND OTHER VULNERABLE 
                             SUBPOPULATIONS

``Sec. 501. Findings and policy.
``Sec. 502. Definitions.
``Sec. 503. Safeguarding children and other vulnerable subpopulations.
``Sec. 504. Safer environment for children.
``Sec. 505. Research to improve information on the effects of 
                            environmental pollutants on children.
``Sec. 506. Children's environmental health protection advisory 
                            committee.
``Sec. 507. Authorization of appropriations.''.

               CHAPTER 2--SCHOOL ENVIRONMENTAL PROTECTION

SEC. 1411. SHORT TITLE.

    This chapter may be cited as the ``School Environment Protection 
Act''.

SEC. 1412. INTEGRATED PEST MANAGEMENT SYSTEMS FOR SCHOOLS.

    The Federal Insecticide, Fungicide, and Rodenticide Act is 
amended--
            (1) by redesignating sections 33 and 34 (7 U.S.C. 136x, 
        136y) as sections 34 and 35, respectively; and
            (2) by inserting after section 32 (7 U.S.C. 136w-7) the 
        following:

``SEC. 33. INTEGRATED PEST MANAGEMENT SYSTEMS FOR SCHOOLS.

    ``(a) Definitions.--In this section:
            ``(1) Board.--The term `Board' means the National School 
        Integrated Pest Management Advisory Board established under 
        subsection (c).
            ``(2) Contact person.--The term `contact person' means an 
        individual who is--
                    ``(A) knowledgeable about integrated pest 
                management systems; and
                    ``(B) designated by a local educational agency as 
                the contact person under subsection (f).
            ``(3) Crack and crevice treatment.--The term `crack and 
        crevice treatment' means the application of small quantities of 
        a pesticide in a building into openings such as those commonly 
        found at expansion joints, between levels of construction, and 
        between equipment and floors.
            ``(4) Emergency.--The term `emergency' means an urgent need 
        to mitigate or eliminate a pest that threatens the health or 
        safety of a student or staff member.
            ``(5) Fund.--The term `Fund' means the Integrated Pest 
        Management Trust Fund established under subsection (m).
            ``(6) Integrated pest management system.--The term 
        `integrated pest management system' means a managed pest 
        control system that--
                    ``(A) eliminates or mitigates economic, health, and 
                aesthetic damage caused by pests;
                    ``(B) uses--
                            ``(i) integrated methods;
                            ``(ii) site or pest inspections;
                            ``(iii) pest population monitoring;
                            ``(iv) an evaluation of the need for pest 
                        control; and
                            ``(v) 1 or more pest control methods, 
                        including sanitation, structural repair, 
                        mechanical and biological controls, other 
                        nonchemical methods, and (if nontoxic options 
                        are unreasonable and have been exhausted) least 
                        toxic pesticides; and
                    ``(C) minimizes--
                            ``(i) the use of pesticides; and
                            ``(ii) the risk to human health and the 
                        environment associated with pesticide 
                        applications.
            ``(7) Least toxic pesticides.--
                    ``(A) In general.--The term `least toxic 
                pesticides' means--
                            ``(i) boric acid and disodium octoborate 
                        tetrahydrate;
                            ``(ii) silica gels;
                            ``(iii) diatomaceous earth;
                            ``(iv) nonvolatile insect and rodent baits 
                        in tamper resistant containers or for crack and 
                        crevice treatment only;
                            ``(v) microbe-based insecticides;
                            ``(vi) botanical insecticides (not 
                        including synthetic pyrethroids) without toxic 
                        synergists;
                            ``(vii) biological, living control agents; 
                        and
                            ``(viii) materials for which the inert 
                        ingredients are nontoxic and disclosed.
                    ``(B) Exclusions.--The term `least toxic 
                pesticides' does not include a pesticide that is 
                determined by the Administrator to be an acutely or 
                moderately toxic pesticide, carcinogen, mutagen, 
                teratogen, reproductive toxin, developmental 
                neurotoxin, endocrine disrupter, or immune system 
                toxin, and any application of the pesticide using a 
                broadcast spray, dust, tenting, fogging, or baseboard 
                spray application.
            ``(8) List.--The term `list' means the list of least toxic 
        pesticides established under subsection (d).
            ``(9) Local educational agency.--The term `local 
        educational agency' has the meaning given the term in section 
        9101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
            ``(10) Official.--The term `official' means the official 
        appointed by the Administrator under subsection (e).
            ``(11) Person.--The term `person' means--
                    ``(A) an individual that attends, has children 
                enrolled in, works at, or uses a school;
                    ``(B) a resident of a school district; and
                    ``(C) any other individual that may be affected by 
                pest management activities of a school.
            ``(12) Pesticide.--
                    ``(A) In general.--The term `pesticide' means any 
                substance or mixture of substances, including 
                herbicides and bait stations, intended for--
                            ``(i) preventing, destroying, repelling, or 
                        mitigating any pest;
                            ``(ii) use as a plant regulator, defoliant, 
                        or desiccant; or
                            ``(iii) use as a spray adjuvant such as a 
                        wetting agent or adhesive.
                    ``(B) Exclusion.--The term `pesticide' does not 
                include antimicrobial agents such as disinfectants or 
                deodorizers used for cleaning products.
            ``(13) School.--The term `school' means a public--
                    ``(A) elementary school (as defined in section 9101 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801));
                    ``(B) secondary school (as defined in section 9101 
                of that Act); or
                    ``(C) kindergarten or nursery school.
            ``(14) School grounds.--
                    ``(A) In general.--The term `school grounds' means 
                the area outside of the school buildings controlled, 
                managed, or owned by the school or school district.
                    ``(B) Inclusions.--The term `school grounds' 
                includes a lawn, playground, sports field, and any 
                other property or facility controlled, managed, owned, 
                or leased for use for a school-sponsored event, by a 
                school.
            ``(15) Space spraying.--
                    ``(A) In general.--The term `space spraying' means 
                application of a pesticide by discharge into the air 
throughout an inside area.
                    ``(B) Inclusion.--The term `space spraying' 
                includes the application of a pesticide using a 
                broadcast spray, dust, tenting, or fogging.
                    ``(C) Exclusion.--The term `space spraying' does 
                not include crack and crevice treatment.
            ``(16) Staff member.--
                    ``(A) In general.--The term `staff member' means an 
                employee of a school or local educational agency.
                    ``(B) Inclusions.--The term `staff member' includes 
                an administrator, teacher, and other person that is 
                regularly employed by a school or local educational 
                agency.
                    ``(C) Exclusions.--The term `staff member' does not 
                include--
                            ``(i) an employee hired by a school, local 
                        educational agency, or State to apply a 
                        pesticide; or
                            ``(ii) a person assisting in the 
                        application of a pesticide.
            ``(17) State educational agency.--The term `State 
        educational agency' has the meaning given the term in section 
        14101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 8801).
            ``(18) Universal notification.--The term `universal 
        notification' means notice provided by a local educational 
        agency or school to--
                    ``(A) all parents or guardians of children 
                attending the school; and
                    ``(B) staff members of the school or local 
                educational agency.
    ``(b) Integrated Pest Management Systems.--
            ``(1) In general.--The Administrator, in consultation with 
        the Secretary of Education, shall establish a National School 
        Integrated Pest Management Advisory System to develop and 
        update uniform standards and criteria for implementing 
        integrated pest management systems in schools.
            ``(2) Implementation.--Not later than 18 months after the 
        date of enactment of this subsection, each local educational 
        agency of a school district shall develop and implement in each 
        of the schools in the school district an integrated pest 
        management system that complies with this section.
            ``(3) State programs.--If, on the date of enactment of this 
        section, a State maintains an integrated pest management system 
        that meets the standards and criteria established under 
        paragraph (1) (as determined by the Board), a local educational 
        agency in the State may continue to implement the system in a 
        school or in the school district in accordance with paragraph 
        (2).
            ``(4) Application to schools and school grounds.--The 
        requirements of this section that apply to a school, including 
        the requirement to implement an integrated management system, 
        apply to pesticide application in a school building and on the 
        school grounds.
            ``(5) Application of pesticides when schools in use.--A 
        school shall prohibit--
                    ``(A) the application of a pesticide when a school 
                or school grounds are occupied or in use; or
                    ``(B) the use of an area or room treated by a 
                pesticide, other than a least toxic pesticide, during 
                the 24-hour period beginning at the end of the 
                treatment.
    ``(c) National School Integrated Pest Management Advisory Board.--
            ``(1) In general.--The Administrator, in consultation with 
        the Secretary of Education, shall establish a National School 
        Integrated Pest Management Advisory Board to--
                    ``(A) establish uniform standards and criteria for 
                developing integrated pest management systems and 
                policies in schools;
                    ``(B) develop standards for the use of least toxic 
                pesticides in schools; and
                    ``(C) advise the Administrator on any other aspects 
                of the implementation of this section.
            ``(2) Composition of board.--The Board shall be composed of 
        12 members and include 1 representative from each of the 
        following groups:
                    ``(A) Parents.
                    ``(B) Public health care professionals.
                    ``(C) Medical professionals.
                    ``(D) State integrated pest management system 
                coordinators.
                    ``(E) Independent integrated pest management 
                specialists that have carried out school integrated 
                pest management programs.
                    ``(F) Environmental advocacy groups.
                    ``(G) Children's health advocacy groups.
                    ``(H) Trade organization for pest control 
                operators.
                    ``(I) Teachers and staff members.
                    ``(J) School maintenance staff.
                    ``(K) School administrators.
                    ``(L) School board members.
            ``(3) Appointment.--Not later than 180 days after the date 
        of enactment of this section, the Administrator shall appoint 
        members of the Board from nominations received from Parent 
        Teacher Associations, school districts, States, and other 
        interested persons and organizations.
            ``(4) Term.--
                    ``(A) In general.--A member of the Board shall 
                serve for a term of 5 years, except that the 
                Administrator may shorten the terms of the original 
                members of the Board in order to provide for a 
                staggered term of appointment for all members of the 
                Board.
                    ``(B) Consecutive terms.--Subject to subparagraph 
                (C), a member of the Board shall not serve consecutive 
                terms unless the term of the member has been reduced by 
                the Administrator.
                    ``(C) Maximum term.--In no event may a member of 
                the Board serve for more than 6 consecutive years.
            ``(5) Meetings.--The Administrator shall convene--
                    ``(A) an initial meeting of the Board not later 
                than 60 days after the appointment of the members; and
                    ``(B) subsequent meetings on a periodic basis, but 
                not less often than 2 times each year.
            ``(6) Compensation.--A member of the Board shall serve 
        without compensation, but may be reimbursed by the 
        Administrator for expenses (in accordance with section 5703 of 
        title 5, United States Code) incurred in performing duties as a 
        member of the Board.
            ``(7) Chairperson.--The Board shall select a Chairperson 
        for the Board.
            ``(8) Quorum.--A majority of the members of the Board shall 
        constitute a quorum for the purpose of conducting business.
            ``(9) Decisive votes.--Two-thirds of the votes cast at a 
        meeting of the Board at which a quorum is present shall be 
        decisive for any motion.
            ``(10) Administration.--The Administrator--
                    ``(A) shall--
                            ``(i) authorize the Board to hire a staff 
                        director; and
                            ``(ii) detail staff of the Environmental 
                        Protection Agency, or allow for the hiring of 
                        staff for the Board; and
                    ``(B) subject to the availability of 
                appropriations, may pay necessary expenses incurred by 
                the Board in carrying out this subtitle, as determined 
                appropriate by the Administrator.
            ``(11) Responsibilities of the board.--
                    ``(A) In general.--The Board shall provide 
                recommendations to the Administrator regarding the 
                implementation of this section.
                    ``(B) List of least toxic pesticides.--Not later 
                than 1 year after the initial meeting of the Board, the 
                Board shall--
                            ``(i) review implementation of this section 
                        (including use of least toxic pesticides); and
                            ``(ii) review and make recommendations to 
                        the Administrator with respect to new proposed 
                        active and inert ingredients or proposed 
                        amendments to the list in accordance with 
                        subsection (d).
                    ``(C) Technical advisory panels.--
                            ``(i) In general.--The Board shall convene 
                        technical advisory panels to provide scientific 
                        evaluations of the materials considered for 
                        inclusion on the list.
                            ``(ii) Composition.--A panel described in 
                        clause (i) shall include experts on integrated 
                        pest management, children's health, entomology, 
                        health sciences, and other relevant 
                        disciplines.
                    ``(D) Special review.--
                            ``(i) In general.--Not later than 2 years 
                        after the initial meeting of the Board, the 
                        Board shall review, with the assistance of a 
                        technical advisory panel, pesticides used in 
                        school buildings and on school grounds for 
                        their acute toxicity and chronic effects, 
                        including cancer, mutations, birth defects, 
                        reproductive dysfunction, neurological and 
                        immune system effects, and endocrine system 
                        disruption.
                            ``(ii) Determination.--The Board--
                                    ``(I) shall determine whether the 
                                use of pesticides described in clause 
                                (i) may endanger the health of 
                                children; and
                                    ``(II) may recommend to the 
                                Administrator restrictions on pesticide 
                                use in school buildings and on school 
                                grounds.
            ``(12) Requirements.--In establishing the proposed list, 
        the Board shall--
                    ``(A) review available information from the 
                Environmental Protection Agency, the National Institute 
                of Environmental Health Studies, medical and scientific 
                literature, and such other sources as appropriate, 
                concerning the potential for adverse human and 
                environmental effects of substances considered for 
                inclusion in the proposed list; and
                    ``(B) cooperate with manufacturers of substances 
                considered for inclusion in the proposed list to obtain 
                a complete list of ingredients and determine that such 
                substances contain inert ingredients that are generally 
                recognized as safe.
            ``(13) Petitions.--The Board shall establish procedures 
        under which individuals may petition the Board for the purpose 
        of evaluating substances for inclusion on the list.
            ``(14) Periodic review.--
                    ``(A) In general.--The Board shall review each 
                substance included on the list at least once during 
                each 5-year period beginning on--
                            ``(i) the date that the substance was 
                        initially included on the list; or
                            ``(ii) the date of the last review of the 
                        substance under this subsection.
                    ``(B) Submission to administrator.--The Board shall 
                submit the results of a review under subparagraph (A) 
                to the Administrator with a recommendation as to 
                whether the substance should continue to be included on 
                the list.
            ``(15) Confidentiality.--Any business sensitive material 
        obtained by the Board in carrying out this section shall be 
        treated as confidential business information by the Board and 
        shall not be released to the public.
    ``(d) List of Least Toxic Pesticides; Pesticide Review.--
            ``(1) In general.--The Board shall recommend to the 
        Administrator a list of least toxic pesticides (including the 
        pesticides described in subsection (a)(7)) that may be used as 
        least toxic pesticides, any restrictions on the use of the 
        listed pesticides, and any recommendations regarding 
        restrictions on all other pesticides, in accordance with this 
        section.
            ``(2) Procedure for evaluating pesticide use.--
                    ``(A) List of least toxic pesticides.--
                            ``(i) In general.--The Administrator shall 
                        establish a list of least toxic pesticides that 
                        may be used in school buildings and on school 
                        grounds, including any restrictions on the use 
                        of the pesticides, that is based on the list 
                        prepared by the Board.
                            ``(ii) Regulatory review.--The 
                        Administrator shall initiate regulatory review 
                        of all other pesticides recommended for 
                        restriction by the Board.
                    ``(B) Recommendations.--Not later than 1 year after 
                receiving the proposed list and restrictions, and 
                recommended restrictions on all other pesticides from 
                the Board, the Administrator shall--
                            ``(i) publish the proposed list and 
                        restrictions and all other proposed pesticide 
                        restrictions in the Federal Register and seek 
                        public comment on the proposed proposals; and
                            ``(ii) after evaluating all comments 
                        received concerning the proposed list and 
                        restrictions, but not later than 1 year after 
                        the close of the period during which public 
                        comments are accepted, publish the final list 
                        and restrictions in the Federal Register, 
                        together with a discussion of comments 
                        received.
                    ``(C) Findings.--Not later than 2 years after 
                publication of the final list and restrictions, the 
                Administrator shall make a determination and issue 
                findings on whether use of registered pesticides in 
                school buildings and on school grounds may endanger the 
                health of children.
                    ``(D) Notice and comment.--
                            ``(i) In general.--Prior to establishing or 
                        making amendments to the list, the 
                        Administrator shall publish the proposed list 
                        or any proposed amendments to the list in the 
                        Federal Register and seek public comment on the 
                        proposals.
                            ``(ii) Recommendations.--The Administrator 
                        shall include in any publication described in 
                        clause (i) any changes or amendments to the 
                        proposed list that are recommended to and by 
                        the Administrator.
                    ``(E) Publication of list.--After evaluating all 
                comments received concerning the proposed list or 
                proposed amendments to the list, the Administrator 
                shall publish the final list in the Federal Register, 
                together with a description of comments received.
    ``(e) Office of Pesticide Programs.--
            ``(1) Establishment.--The Administrator shall appoint an 
        official for school pest management within the Office of 
        Pesticide Programs of the Environmental Protection Agency to 
        coordinate the development and implementation of integrated 
        pest management systems in schools.
            ``(2) Duties.--The official shall--
                    ``(A) coordinate the development of school 
                integrated pest management systems and policies;
                    ``(B) consult with schools concerning--
                            ``(i) issues related to the integrated pest 
                        management systems of schools;
                            ``(ii) the use of least toxic pesticides; 
                        and
                            ``(iii) the registration of pesticides, and 
                        amendments to the registrations, as the 
                        registrations and amendments relate to the use 
                        of integrated pest management systems in 
                        schools; and
                    ``(C) support and provide technical assistance to 
                the Board.
    ``(f) Contact Person.--
            ``(1) In general.--Each local educational agency of a 
        school district shall designate a contact person for carrying 
        out an integrated pest management system in schools in the 
        school district.
            ``(2) Duties.--The contact person of a school district 
        shall--
                    ``(A) maintain information about pesticide 
                applications inside and outside schools within the 
                school district, in school buildings, and on school 
                grounds;
                    ``(B) act as a contact for inquiries about the 
                integrated pest management system;
                    ``(C) maintain material safety data sheets and 
                labels for all pesticides that may be used in the 
                school district;
                    ``(D) be informed of Federal and State chemical 
                health and safety information and contact information;
                    ``(E) maintain scheduling of all pesticide usage 
                for schools in the school district;
                    ``(F) maintain contact with Federal and State 
                integrated pest management system experts; and
                    ``(G) obtain periodic updates and training from 
                State integrated pest management system experts.
            ``(3) Pesticide use data.--A local educational agency of a 
        school district shall--
                    ``(A) maintain all pesticide use data for each 
                school in the school district; and
                    ``(B) on request, make the data available to the 
                public for review.
    ``(g) Notice of Integrated Pest Management System.--
            ``(1) In general.--At the beginning of each school year, 
        each local educational agency or school of a school district 
        shall include a notice of the integrated pest management system 
        of the school district in school calendars or other forms of 
        universal notification.
            ``(2) Contents.--The notice shall include a description 
        of--
                    ``(A) the integrated pest management system of the 
                school district;
                    ``(B) any pesticide (including any least toxic 
                pesticide) or bait station that may be used in a school 
                building or on school grounds as part of the integrated 
                pest management system;
                    ``(C) the name, address, and telephone number of 
                the contact person of the school district;
                    ``(D) a statement that--
                            ``(i) the contact person maintains the 
                        product label and material safety data sheet of 
                        each pesticide (including each least toxic 
                        pesticide) and bait station that may be used by 
                        a school in buildings or on school grounds;
                            ``(ii) the label and data sheet is 
                        available for review by a parent, guardian, 
                        staff member, or student attending the school; 
                        and
                            ``(iii) the contact person is available to 
                        parents, guardians, and staff members for 
                        information and comment; and
                    ``(E) the time and place of any meetings that will 
                be held under subsection (g)(1).
            ``(3) Use of pesticides.--A local educational agency or 
        school may use a pesticide during a school year only if the use 
        of the pesticide has been disclosed in the notice required 
        under paragraph (1) at the beginning of the school year.
            ``(4) New employees and students.--After the beginning of 
        each school year, a local educational agency or school of a 
        school district shall provide the notice required under this 
        subsection to--
                    ``(A) each new staff member who is employed during 
                the school year; and
                    ``(B) the parent or guardian of each new student 
                enrolled during the school year.
    ``(h) Use of Pesticides.--
            ``(1) In general.--If a local educational agency or school 
        determines that a pest in the school or on school grounds 
        cannot be controlled after having used the integrated pest 
        management system of the school or school district and least 
        toxic pesticides, the school may use a pesticide (other than 
        space spraying of the pesticide) to control the pest in 
        accordance with this subsection.
            ``(2) Prior notification of parents, guardians, and staff 
        members.--
                    ``(A) In general.--Subject to paragraphs (4) and 
                (5), not less than 72 hours before a pesticide (other 
                than a least toxic pesticide) is used by a school, the 
                school shall provide to a parent or guardian of each 
                student enrolled at the school and each staff member of 
                the school, notice that includes--
                            ``(i) the common name, trade name, and 
                        Environmental Protection Agency registration 
                        number of the pesticide;
                            ``(ii) a description of the location of the 
                        application of the pesticide;
                            ``(iii) a description of the date and time 
                        of application, except that, in the case of 
                        outdoor pesticide applications, 1 notice shall 
                        include 3 dates, in chronological order, that 
                        the outdoor pesticide applications may take 
                        place if the preceding date is canceled;
                            ``(iv) a statement that `The Office of 
                        Pesticide Programs of the United States 
                        Environmental Protection Agency has stated: 
                        `Where possible, persons who potentially are 
                        sensitive, such as pregnant women and infants 
                        (less than 2 years old), should avoid any 
                        unnecessary pesticide exposure.';
                            ``(v) a description of potential adverse 
                        effects of the pesticide based on the material 
                        safety data sheet of the pesticide;
                            ``(vi) a description of the reasons for the 
                        application of the pesticide;
                            ``(vii) the name and telephone number of 
                        the contact person of the school district; and
                            ``(viii) any additional warning information 
                        related to the pesticide.
                    ``(B) Method of notification.--The school may 
                provide the notice required by subparagraph (A) by--
                            ``(i) written notice sent home with the 
                        student and provided to the staff member;
                            ``(ii) a telephone call;
                            ``(iii) direct contact; or
                            ``(iv) written notice mailed at least 1 
                        week before the application.
                    ``(C) Reissuance.--If the date of the application 
                of the pesticide needs to be extended beyond the period 
required for notice under this paragraph, the school shall reissue the 
notice under this paragraph for the new date of application.
            ``(3) Posting of signs.--
                    ``(A) In general.--Subject to paragraphs (4) and 
                (5), at least 72 hours before a pesticide (other than a 
                least toxic pesticide) is used by a school, the school 
                shall post a sign that provides notice of the 
                application of the pesticide--
                            ``(i) in a prominent place that is in or 
                        adjacent to the location to be treated; and
                            ``(ii) at each entrance to the building or 
                        school grounds to be treated.
                    ``(B) Administration.--A sign required under 
                subparagraph (A) for the application of a pesticide 
                shall--
                            ``(i) remain posted for at least 72 hours 
                        after the end of the treatment;
                            ``(ii) be at least 8 \1/2\ inches by 11 
                        inches; and
                            ``(iii) state the same information as that 
                        required for prior notification of the 
                        application under paragraph (2).
                    ``(C) Outdoor pesticide applications.--
                            ``(i) In general.--In the case of outdoor 
                        pesticide applications, each sign shall include 
                        3 dates, in chronological order, that the 
                        outdoor pesticide application may take place if 
                        the preceding date is canceled due to weather.
                            ``(ii) Duration of posting.--A sign 
                        described in clause (i) shall be posted after 
                        an outdoor pesticide application in accordance 
                        with subparagraph (B).
            ``(4) Administration.--
                    ``(A) Applicators.--Paragraphs (2) and (3) shall 
                apply to any person that applies a pesticide in a 
                school or on school grounds, including a custodian, 
                staff member, or commercial applicator.
                    ``(B) Time of year.--Paragraphs (2) and (3) shall 
                apply to a school--
                            ``(i) during the school year; and
                            ``(ii) during holidays and the summer 
                        months, if the school is in use, with notice 
                        provided to all staff members and the parents 
                        or guardians of the students that are using the 
                        school in an authorized manner.
            ``(5) Emergencies.--
                    ``(A) In general.--A school may apply a pesticide 
                (other than a least toxic pesticide) in the school or 
                on school grounds without complying with paragraphs (2) 
                and (3) in an emergency, subject to subparagraph (B).
                    ``(B) Subsequent notification of parents, 
                guardians, and staff members.--Not later than the 
                earlier of the time that is 24 hours after a school 
                applies a pesticide under this paragraph or on the 
                morning of the next school day, the school shall 
                provide to each parent or guardian of a student 
                enrolled at the school, and staff member of the school, 
                notice of the application of the pesticide for 
                emergency pest control that includes--
                            ``(i) the information required for a notice 
                        under paragraph (2)(A);
                            ``(ii) a description of the problem and the 
                        factors that qualified the problem as an 
                        emergency that threatened the health or safety 
                        of a student or staff member; and
                            ``(iii) a description of the steps the 
                        school will take in the future to avoid 
                        emergency application of a pesticide under this 
                        paragraph.
                    ``(C) Method of notification.--The school may 
                provide the notice required by subparagraph (B) by--
                            ``(i) written notice sent home with the 
                        student and provided to the staff member;
                            ``(ii) a telephone call; or
                            ``(iii) direct contact.
                    ``(D) Posting of signs.--A school applying a 
                pesticide under this paragraph shall post a sign 
                warning of the pesticide application in accordance with 
                paragraph (3).
                    ``(E) Modification of integrated pest management 
                plans.--If a school in a school district applies a 
                pesticide under this paragraph, the local educational 
                agency of the school district shall modify the 
                integrated pest management plan of the school district 
                to minimize the future applications of pesticides under 
                this paragraph.
            ``(6) Drift of pesticides onto school grounds.--Each local 
        educational agency, State pesticide lead agency, and the 
        Administrator are encouraged to--
                    ``(A) identify sources of pesticides that drift 
                from treated land to school grounds of the educational 
                agency; and
                    ``(B) take steps necessary to create an indoor and 
                outdoor school environment that are protected from 
                pesticides described in subparagraph (A).
    ``(i) Meetings.--
            ``(1) In general.--Before the beginning of a school year, 
        at the beginning of each new calendar year, and at a regularly 
        scheduled meeting of a school board, each local educational 
        agency shall provide an opportunity for the contact person 
        designated under subsection (d) to receive and address public 
        comments regarding the integrated pest management system of the 
        school district.
            ``(2) Emergency meetings.--An emergency meeting of a school 
        board to address a pesticide application may be called under 
        locally appropriate procedures for convening emergency 
        meetings.
    ``(j) Investigations and Orders.--
            ``(1) In general.--Not later than 60 days after receiving a 
        complaint of a violation of this section, the Administrator 
        shall--
                    ``(A) conduct an investigation of the complaint;
                    ``(B) determine whether it is reasonable to believe 
                the complaint has merit; and
                    ``(C) notify the complainant and the person alleged 
                to have committed the violation of the findings of the 
                Administrator.
            ``(2) Preliminary order.--If the Administrator determines 
        it is reasonable to believe a violation occurred, the 
        Administrator shall issue a preliminary order (that includes 
        findings) to impose the penalty described in subsection (j).
            ``(3) Objections to preliminary order.--
                    ``(A) In general.--Not later than 30 days after the 
                preliminary order is issued under paragraph (2), the 
                complainant and the person alleged to have committed 
                the violation may--
                            ``(i) file objections to the preliminary 
                        order (including findings); and
                            ``(ii) request a hearing on the record.
                    ``(B) Final order.--If a hearing is not requested 
                within 30 days after the preliminary order is issued, 
                the preliminary order shall be final and not subject to 
                judicial review.
            ``(4) Hearing.--A hearing under this subsection shall be 
        conducted expeditiously.
            ``(5) Final order.--Not later than 120 days after the end 
        of the hearing, the Administrator shall issue a final order.
            ``(6) Settlement agreement.--Before the final order is 
        issued, the proceeding may be terminated by a settlement 
        agreement, which shall remain open, entered into by the 
        Administrator, the complainant, and the person alleged to have 
        committed the violation.
            ``(7) Costs.--
                    ``(A) In general.--If the Administrator issues a 
                final order against a school or school district for 
                violation of this section and the complainant requests, 
                the Administrator may assess against the person against 
                whom the order is issued the costs (including 
                attorney's fees) reasonably incurred by the complainant 
                in bringing the complaint.
                    ``(B) Amount.--The Administrator shall determine 
                the amount of the costs that were reasonably incurred 
                by the complainant.
            ``(8) Judicial review and venue.--
                    ``(A) In general.--A person adversely affected by 
                an order issued after a hearing under this subsection 
                may file a petition for review not later than 60 days 
                after the date that the order is issued, in a district 
                court of the United States or other United States court 
                for any district in which a local educational agency or 
                school is found, resides, or transacts business.
                    ``(B) Timing.--The review shall be heard and 
                decided expeditiously.
                    ``(C) Collateral review.--An order of the 
                Administrator subject to review under this paragraph 
                shall not be subject to judicial review in a criminal 
                or other civil proceeding.
    ``(k) Civil Penalty.--
            ``(1) In general.--Any local educational agency, school, or 
        person that violates this section may be assessed a civil 
        penalty by the Administrator under subsections (h) and (i), 
        respectively, of not more than $10,000 for each offense.
            ``(2) Transfer to trust fund.--Except as provided in 
        subsection (i)(4)(B), civil penalties collected under paragraph 
        (1) shall be deposited in the Fund.
    ``(l) Integrated Pest Management Trust Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a trust fund to be known as the 
        `Integrated Pest Management Trust Fund', consisting of--
                    ``(A) amounts deposited in the Fund under 
                subsection (j)(2);
                    ``(B) amounts transferred to the Secretary of the 
                Treasury for deposit into the Fund under paragraph (5); 
                and
                    ``(C) any interest earned on investment of amounts 
                in the Fund under paragraph (3).
            ``(2) Expenditures from fund.--
                    ``(A) In general.--Subject to subparagraph (B), on 
                request by the Administrator, the Secretary of the 
                Treasury shall transfer from the Fund to the 
                Administrator, without further appropriation, such 
                amounts as the Secretary determines are necessary to 
                provide funds to each State educational agency of a 
                State, in proportion to the amount of civil penalties 
                collected in the State under subsection (j)(1), to 
                carry out education, training, propagation, and 
                development activities under integrated pest management 
                systems of schools in the State to remedy the harmful 
                effects of actions taken by the persons that paid the 
                civil penalties.
                    ``(B) Administrative expenses.--An amount not to 
                exceed 6 percent of the amounts in the Fund shall be 
                available for each fiscal year to pay the 
                administrative expenses necessary to carry out this 
                subsection.
            ``(3) Investment of amounts.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall invest such portion of the Fund as is not, in the 
                judgment of the Secretary of the Treasury, required to 
                meet current withdrawals. Investments may be made only 
                in interest-bearing obligations of the United States.
                    ``(B) Acquisition of obligations.--For the purpose 
                of investments under subparagraph (A), obligations may 
                be acquired--
                            ``(i) on original issue at the issue price; 
                        or
                            ``(ii) by purchase of outstanding 
                        obligations at the market price.
                    ``(C) Sale of obligations.--Any obligation acquired 
                by the Fund may be sold by the Secretary of the 
                Treasury at the market price.
                    ``(D) Credits to fund.--The interest on, and the 
                proceeds from the sale or redemption of, any 
                obligations held in the Fund shall be credited to and 
                form a part of the Fund.
            ``(4) Transfers of amounts.--
                    ``(A) In general.--The amounts required to be 
                transferred to the Fund under this subsection shall be 
                transferred at least monthly from the general fund of 
                the Treasury to the Fund on the basis of estimates made 
                by the Secretary of the Treasury.
                    ``(B) Adjustments.--Proper adjustment shall be made 
                in amounts subsequently transferred to the extent prior 
                estimates were in excess of or less than the amounts 
                required to be transferred.
            ``(5) Acceptance and use of donations.--The Secretary may 
        accept and use donations to carry out paragraph (2)(A). Amounts 
        received by the Secretary in the form of donations shall be 
        transferred to the Secretary of the Treasury for deposit into 
        the Fund.
    ``(m) Employee Protection.--
            ``(1) In general.--No local educational agency, school, or 
        person may harass, prosecute, hold liable, or discriminate 
        against any employee or other person because the employee or 
        other person--
                    ``(A) is assisting or demonstrating an intent to 
                assist in achieving compliance with this section 
                (including any regulation);
                    ``(B) is refusing to violate or assist in the 
                violation of this section (including any regulation); 
                or
                    ``(C) has commenced, caused to be commenced, or is 
                about to commence a proceeding, has testified or is 
                about to testify at a proceeding, or has assisted or 
                participated or is about to participate in any manner 
                in such a proceeding or in any other action to carry 
                out this section.
            ``(2) Complaints.--Not later than 1 year after an alleged 
        violation occurred, an employee or other person alleging a 
        violation of this section, or another person at the request of 
        the employee, may file a complaint with the Administrator.
            ``(3) Remedial action.--If the Administrator decides, on 
        the basis of a complaint, that a local educational agency, 
        school, or person violated paragraph (1), the Administrator 
        shall order the local educational agency, school, or person 
        to--
                    ``(A) take affirmative action to abate the 
                violation;
                    ``(B) reinstate the complainant to the former 
                position with the same pay and terms and privileges of 
                employment; and
                    ``(C) pay compensatory damages, including back pay.
    ``(n) Grants.--
            ``(1) In general.--The Administrator, in consultation with 
        the Secretary of Education, shall provide grants to local 
        educational agencies to develop and implement integrated pest 
        management systems in schools in the school district of the 
        local educational agencies.
            ``(2) Amount.--The amount of a grant provided to a local 
        educational agency of a school district under paragraph (1) 
        shall be based on the ratio that the number of students 
        enrolled in schools in the school district bears to the total 
        number of students enrolled in schools in all school districts 
        in the United States.
    ``(o) Relationship to State and Local Requirements.--This section 
(including regulations promulgated under this section) shall not 
preempt requirements imposed on local educational agencies and schools 
related to the use of integrated pest management by State or local law 
(including regulations) that are more stringent than the requirements 
imposed under this section.
    ``(p) Regulations.--Subject to subsection (m), the Administrator 
shall promulgate such regulations as are necessary to carry out this 
section.
    ``(q) Restriction on Pesticide Use.--Not later than 6 years after 
the date of enactment of this section, no pesticide, other than a 
pesticide that is defined as a least toxic pesticide under this 
subsection, shall be used in a school or on school grounds unless the 
Administrator has met the deadlines and requirements of this section.
    ``(r) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $7,000,000 for each of fiscal 
years 2004 through 2008.''.

SEC. 1413. CONFORMING AMENDMENT.

    The table of contents in section 1(b) of the Federal Insecticide, 
Fungicide, and Rodenticide Act (7 U.S.C. prec. 121) is amended by 
striking the items relating to sections 30 through 32 and inserting the 
following:

``Sec. 30. Minimum requirements for training of maintenance applicators 
                            and service technicians.
``Sec. 31. Environmental Protection Agency minor use program.
``Sec. 32. Department of Agriculture minor use program.
        ``(a) In general.
        ``(b)(1) Minor use pesticide data.
        ``(2) Minor Use Pesticide Data Revolving Fund.
``Sec. 33. Integrated pest management systems for schools.
        ``(a) Definitions.
            ``(1) Board.
            ``(2) Contact person.
            ``(3) Crack and crevice treatment.
            ``(4) Emergency.
            ``(5) Fund.
            ``(6) Integrated pest management system.
            ``(7) Least toxic pesticides.
            ``(8) List.
            ``(9) Local educational agency.
            ``(10) Official.
            ``(11) Person.
            ``(12) Pesticide.
            ``(13) School.
            ``(14) School grounds.
            ``(15) Space spraying.
            ``(16) Staff member.
            ``(17) State educational agency.
            ``(18) Universal notification.
        ``(b) Integrated pest management systems.
            ``(1) In general.
            ``(2) Implementation.
            ``(3) State programs.
            ``(4) Application to schools and school grounds.
            ``(5) Application of pesticides when schools in use.
        ``(c) National School Integrated Pest Management Advisory 
                            Board.
            ``(1) In general.
            ``(2) Composition of Board.
            ``(3) Appointment.
            ``(4) Term.
            ``(5) Meetings.
            ``(6) Compensation.
            ``(7) Chairperson.
            ``(8) Quorum.
            ``(9) Decisive votes.
            ``(10) Administration.
            ``(11) Responsibilities of the Board.
            ``(12) Requirements.
            ``(13) Petitions.
            ``(14) Periodic review.
            ``(15) Confidentiality.
        ``(d) List of least toxic pesticides.
            ``(1) In general.
            ``(2) Procedure for evaluating pesticide use.
        ``(e) Office of Pesticide Programs.
            ``(1) Establishment.
            ``(2) Duties.
        ``(f) Contact person.
            ``(1) In general.
            ``(2) Duties.
            ``(3) Pesticide use data.
        ``(g) Notice of integrated pest management system.
            ``(1) In general.
            ``(2) Contents.
            ``(3) Use of pesticides.
            ``(4) New employees and students.
        ``(h) Use of pesticides.
            ``(1) In general.
            ``(2) Prior notification of parents, guardians, and staff 
                            members.
            ``(3) Posting of signs.
            ``(4) Administration.
            ``(5) Emergencies.
            ``(6) Drift of pesticides onto school grounds.
        ``(i) Meetings.
            ``(1) In general.
            ``(2) Emergency meetings.
        ``(j) Investigations and orders.
            ``(1) In general.
            ``(2) Preliminary order.
            ``(3) Objections to preliminary order.
            ``(4) Hearing.
            ``(5) Final order.
            ``(6) Settlement agreement.
            ``(7) Costs.
            ``(8) Judicial review and venue.
        ``(k) Civil penalty.
            ``(1) In general.
            ``(2) Transfer to Trust Fund.
        ``(l) Integrated Pest Management Trust Fund.
            ``(1) Establishment.
            ``(2) Expenditures from Fund.
            ``(3) Investment of amounts.
            ``(4) Transfers of amounts.
            ``(5) Acceptance and use of donations.
        ``(m) Employee protection.
            ``(1) In general.
            ``(2) Complaints.
            ``(3) Remedial action.
        ``(n) Grants.
            ``(1) In general.
            ``(2) Amount.
        ``(o) Relationship to State and local requirements.
        ``(p) Regulations.
        ``(q) Restriction on pesticide use.
        ``(r) Authorization of appropriations.
``Sec. 34. Severability.
``Sec. 35. Authorization of appropriations.''.

SEC. 1414. EFFECTIVE DATE.

    This chapter and the amendments made by this chapter take effect on 
October 1, 2003.

        TITLE II--HEALTHY START--SUPPORT FOR HEALTHY DEVELOPMENT

            Subtitle A--Promotion of State and Local Support

SEC. 2001. STATE AND LOCAL PARENTING SUPPORT AND EDUCATION GRANT 
              PROGRAM.

    (a) State Allotments.--
            (1) In general.--The Secretary of Health and Human Services 
        (referred to in this section as the ``Secretary'') shall make 
        grants, from allotments made under paragraph (2), to eligible 
        States to support parenting support and education programs.
            (2) Allotments.--From the funds appropriated under 
        subsection (h) for a fiscal year, the Secretary shall allot to 
        each State an amount that bears the same relationship to the 
        funds as the total number of children in the State bears to the 
        total number of children in all States, but no State shall 
        receive less than \1/2\ of 1 percent of the funds.
            (3) Reservation.--
                    (A) In general.--For each State in which the 
                population of Indians (including Alaska Natives) is 
                more than 2 percent of the population of the State, the 
                Governor of the State shall reserve for Indian tribes 2 
                percent of the funds received through an allotment made 
                under paragraph (2).
                    (B) Distribution.--
                            (i) In general.--Except as described in 
                        clause (ii), from the funds reserved under 
                        subparagraph (A), the Governor shall allocate 
                        to each Indian tribe in the State an amount 
                        that bears the same relationship to the funds 
                        as the total number of children in the tribe 
                        bears to the total number of children in all 
                        Indian tribes in the State.
                            (ii) Alaska.--The Governor of Alaska shall 
                        allocate the funds reserved under subparagraph 
                        (A) for Indian tribes in Alaska to the 
                        nonprofit entities described in section 
                        419(4)(B) of the Social Security Act (42 U.S.C. 
                        619(4)(B)). The Governor shall allocate to each 
                        region of the State, for such entities, an 
                        amount that bears the same relationship to the 
                        funds as the total number of Alaska Native 
                        children in the region bears to the total 
                        number of Alaska Native children in all regions 
                        of the State.
                    (C) Definitions.--In this paragraph:
                            (i) Alaska native.--The term ``Alaska 
                        Native'' has the meaning given the term 
                        ``Native'' in section 3 of the Alaska Native 
                        Claims Settlement Act (43 U.S.C. 1602).
                            (ii) Indian; indian tribe.--The terms 
                        `Indian' and `Indian tribe' have the meanings 
                        given the terms in section 4 of the Indian 
                        Self-Determination and Education Assistance Act 
                        (25 U.S.C. 450b).
    (b) State Parenting Support and Education Councils.--
            (1) In general.--To be eligible to receive a grant under 
        subsection (a), the Governor of each State shall appoint or 
        designate an existing entity (as of the date of the appointment 
        or designation) to serve as a State Parenting Support and 
        Education Council (referred to in this section as the 
        ``Council''), which shall include--
                    (A) representatives of parents;
                    (B) representatives of the State government;
                    (C) bipartisan representation from the State 
                legislature;
                    (D) representatives from communities; and
                    (E) representatives of children's organizations 
                interested in promoting parenting support and education 
                programs.
            (2) Responsibilities.--
                    (A) Assessment.--The Council shall conduct a needs 
                and resources assessment of parenting support and 
                education programs in the State to--
                            (i) determine areas in which such programs 
                        are lacking or inadequate; and
                            (ii) identify the additional programs that 
                        are needed and the programs that require 
                        additional resources.
                    (B) Grants.--On completion of the assessment, the 
                Council for a State may use the grant received by the 
                State under subsection (a) to make grants under 
                subsection (c) in a manner that takes into account the 
                results of the assessment.
    (c) Grants to State and Local Agencies and Entities.--
            (1) In general.--The Council may carry out a program under 
        which the Council makes grants to State agencies to provide 
        parenting support and education programs on a statewide basis, 
        or to local agencies (including schools) and nonprofit service 
        providers (including faith-based organizations) to provide 
        parenting support and education programs.
            (2) Applications.--To be eligible to receive a grant under 
        this subsection, an agency or entity shall submit an 
        application to a Council at such time, in such manner, and 
        containing such information as the Council may require.
    (d) Local Use of Funds.--An agency or entity that receives a grant 
under subsection (c) may use the funds made available through the grant 
to carry out parenting support and education programs that--
            (1) provide parenting support to promote early brain 
        development and childhood development and education, 
        including--
                    (A) providing assistance to schools to offer 
                classroom instruction on brain stimulation, child 
                development, and early childhood education;
                    (B) distributing materials developed by entities 
                that reflect best parenting practices;
                    (C) developing and distributing referral 
                information on programs and services available to 
                children and families at the local level, including 
                information on eligibility criteria;
                    (D) conducting voluntary hospital visits for 
                postpartum women and in-home visits for families with 
                infants, toddlers, or newly adopted children to provide 
                hands-on training and one-on-one instruction on brain 
                stimulation, child development, and early childhood 
                education; and
                    (E) carrying out parenting education programs, 
                including training programs, with respect to best 
                parenting practices;
            (2) provide parenting support for parents of adolescents 
        and youth, including providing funds for services and support 
        for parents and other caregivers of adolescents and youth being 
        served by a range of education, social service, mental health, 
        health, runaway, and homeless youth programs, which parenting 
        support--
                    (A) may be provided by the Boys and Girls Club, the 
                YMCA, the YWCA, entities that provide after school 
                programs, entities that provide 4-H programs, or other 
                community based organizations; and
                    (B) may include providing parent-caregiver support 
                groups, peer support groups, parent education classes, 
                seminars or discussion groups on problems facing 
                adolescents and youth, or advocates and mentors to help 
                parents understand and work with schools, the courts, 
                and various treatment programs; or
            (3) provide parenting support and education resource 
        centers, including--
                    (A) centers that may serve as a single point of 
                contact for the provision to children and their 
                families of comprehensive services, which--
                            (i) shall include services available to 
                        children from Federal, State, and local 
                        government agencies and nonprofit 
                        organizations; and
                            (ii) may include child care, respite care, 
                        pediatric care, child abuse prevention 
                        programs, nutrition programs, parent training, 
                        infant and child cardiopulmonary resuscitation 
                        programs, safety training, caregiver training 
                        and education, and other related programs;
                    (B) centers that provide a national toll-free 
                parent hotline that provides 24-hour consultation and 
                advice, on an anonymous basis, including referrals to 
                local community-based services; and
                    (C) centers that provide respite care for parents 
                with children with special needs, single mothers, and 
                parents with at-risk youth.
    (e) Reporting.--Each agency or entity that receives a grant under 
this section shall prepare and submit to the Council every 2 years a 
report describing the program that the agency or entity carried out 
under this section, the number of parents and children served, and the 
success of the program in supporting and educating parents using 
specific performance measures.
    (f) Administrative Costs.--Not more than 5 percent of the amount 
made available through a grant received by a State under subsection (a) 
may be used for the administrative expenses of the State Council in 
implementing the grant program described in subsection (c).
    (g) Supplement Not Supplant.--Funds appropriated pursuant to this 
section shall be used to supplement and not supplant other Federal, 
State, and local public funds expended for parenting support and 
education programs.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $100,000,000 for each of fiscal 
years 2004 and 2005, $200,000,000 for each of fiscal years 2006 and 
2007, and $300,000,000 for fiscal year 2008.
    (i) Definition.--In this section, the term ``child'' means an 
individual who is younger than age 18.

             Subtitle B--Family and Medical Leave Expansion

SEC. 2101. SHORT TITLE.

    This subtitle may be cited as the ``Family and Medical Leave 
Expansion Act''.

SEC. 2102. FINDINGS.

    Congress makes the following findings:
            (1) Since the enactment of the Family and Medical Leave Act 
        of 1993 (29 U.S.C. 2601 et seq.), more than 35,000,000 
        Americans have taken leave for family or medical reasons.
            (2) Of those taking leave under the Family and Medical 
        Leave Act of 1993, 52 percent took the leave for their own 
        serious health conditions, and 26 percent took the leave to 
        care for a new child or for maternity disability reasons.
            (3) While the leave provided by the Family and Medical 
        Leave Act of 1993 has proven to be a critical resource for 
        millions of Americans, too many people are left behind because 
        the Act provides only unpaid leave.
            (4) According to a 2000 Department of Labor survey--
                    (A) 3,500,000 Americans needed family and medical 
                leave but could not afford to take time off without 
                pay;
                    (B) nearly four-fifths (78 percent) of those 
                surveyed who needed the leave but did not take it said 
                they could not afford unpaid leave;
                    (C) nine percent of those taking family and medical 
                leave and receiving less than full pay during their 
                longest period of the leave had to go on public 
                assistance to cover their lost wages; and
                    (D) seventy-three percent of those taking family 
                and medical leave had incomes above $30,000.
            (5) In 1970, only 27 percent of mothers with infants under 
        age 1 were in the labor force.
            (6) In 1999, nearly 60 percent of mothers with infants 
        under age 1 were working.
            (7) Worldwide, 128 countries of the 172 responding to an 
        International Social Security Association survey in 1999 
        provided at least some paid and job protected maternity leave, 
        and, on average, provided 16 weeks of basic paid maternity 
        leave. In some countries, paid maternity leave is mandatory and 
        in others it is voluntary.
            (8) A European Union directive mandating 14 weeks of paid 
        maternity leave was adopted as a health and safety measure in 
        1992.
            (9) Among the 29 Organization for Economic Cooperation and 
        Development (OECD) countries, the most advanced industrialized 
        countries, the average period of childbirth-related leave 
        (including maternity, paternity, and parental leaves) is 44 
        weeks (10 months) with additional time provided in some 
        countries for leave to care for a sick child. In those 
        countries, the average duration of paid childbirth-related 
        leave is 36 weeks.
            (10) In more than half of the OECD countries (16 
        countries), the cash benefit provided while on the paid 
        childbirth-related leave replaces between 70 and 100 percent of 
        prior wages.
            (11) Among the OECD countries, adoptive mothers and 
        adoptive parents are increasingly eligible for the paid 
        childbirth-related leave.

     CHAPTER 1--FAMILY INCOME TO RESPOND TO SIGNIFICANT TRANSITIONS

SEC. 2111. SHORT TITLE.

    This chapter may be cited as the ``Family Income to Respond to 
Significant Transitions Insurance Act''.

SEC. 2112. PURPOSES.

    The purposes of this chapter are--
            (1) to establish a demonstration program that supports the 
        efforts of States and political subdivisions to provide partial 
        or full wage replacement, often referred to as FIRST insurance, 
        to new parents so that the new parents are able to spend time 
        with a new infant or newly adopted child, and to other 
        employees; and
            (2) to learn about the most effective mechanisms for 
        providing the wage replacement assistance.

SEC. 2113. DEFINITIONS.

    In this chapter:
            (1) Employer; son or daughter; state.--The terms 
        ``employer'', ``son or daughter'', and ``State'' have the 
        meanings given the terms in section 101 of the Family and 
        Medical Leave Act of 1993 (29 U.S.C. 2611).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor, acting after consultation with the Secretary of 
        Health and Human Services.

SEC. 2114. DEMONSTRATION PROJECTS.

    (a) Grants.--
            (1) In general.--The Secretary shall make grants to 
        eligible entities to pay for the Federal share of the cost of 
        carrying out projects that assist families by providing, 
        through various mechanisms, wage replacement for eligible 
        individuals who are responding to--
                    (A) caregiving needs resulting from the birth or 
                adoption of a son or daughter; or
                    (B) other family caregiving needs.
            (2) Periods.--The Secretary shall make the grants for 
        periods of 5 years.
    (b) Eligible Entities.--To be eligible to receive a grant under 
this section, an entity shall be a State or political subdivision of a 
State.
    (c) Use of Funds.--
            (1) In general.--An entity that receives a grant under this 
        section may use the funds made available through the grant to 
        provide partial or full wage replacement as described in 
        subsection (a) to eligible individuals--
                    (A) directly;
                    (B) through an insurance program, such as a State 
                temporary disability insurance program or the State 
                unemployment compensation benefit program;
                    (C) through a private disability or other insurance 
                plan, or another mechanism provided by a private 
                employer; or
                    (D) through another mechanism.
            (2) Period.--In carrying out a project under this section, 
        the entity shall provide partial or full wage replacement to 
        eligible individuals for not less than 6 weeks during a period 
        of leave, or an absence from employment, described in 
        subsection (d)(2), during any 12-month period. Wage replacement 
        available to an individual under this paragraph shall be in 
        addition to any compensation from annual or sick leave that the 
        individual may elect to use during a period of leave, or an 
        absence from employment, described in subsection (d)(2), during 
        any 12-month period.
            (3) Administrative costs.--No entity may use more than 10 
        percent of the total funds made available through the grant 
        during the 5-year period of the grant to pay for the 
        administrative costs relating to a project described in 
        subsection (a).
    (d) Eligible Individuals.--To be eligible to receive wage 
replacement under subsection (a), an individual shall--
            (1) meet such eligibility criteria as the eligible entity 
        providing the wage replacement may specify in an application 
        described in subsection (e); and
            (2) be--
                    (A) an individual who is taking leave, under the 
                Family and Medical Leave Act of 1993 (29 U.S.C. 2601 et 
                seq.), other Federal, State, or local law, or a private 
                plan, for a reason described in subparagraph (A) or (B) 
                of section 102(a)(1) of the Family and Medical Leave 
                Act of 1993 (29 U.S.C. 2612(a)(1));
                    (B) at the option of the eligible entity, an 
                individual who--
                            (i) is taking leave, under that Act, other 
                        Federal, State, or local law, or a private 
                        plan, for a reason described in subparagraph 
                        (C), (D), (E), or (F) of section 102(a)(1) of 
                        the Family and Medical Leave Act of 1993 (29 
                        U.S.C. 2612(a)(1)); or
                            (ii) leaves employment, and has an absence 
                        from employment, because the individual has 
                        elected to care for a son or daughter under age 
                        1; or
                    (C) at the option of the eligible entity, an 
                individual who has an absence from employment and has 
                other characteristics specified by the eligible entity 
                in an application described in subsection (e).
    (e) Application.--To be eligible to receive a grant under this 
section, an entity shall submit an application to the Secretary, at 
such time, in such manner, and containing such information as the 
Secretary may require, including, at a minimum--
            (1) a plan for the project to be carried out with the 
        grant;
            (2) information demonstrating that the applicant consulted 
        representatives of employers and employees, including labor 
        organizations, in developing the plan;
            (3) estimates of the costs and benefits of the project;
            (4)(A) information on the number and type of families to be 
        covered by the project, and the extent of such coverage in the 
        area served under the grant; and
            (B) information on any criteria or characteristics that the 
        entity will use to determine whether an individual is eligible 
        for wage replacement under subsection (a), as described in 
        paragraphs (1) and (2)(C) of subsection (d);
            (5) if the project will expand on State and private systems 
        of wage replacement for eligible individuals, information on 
        the manner in which the project will expand on the systems;
            (6) information demonstrating the manner in which the wage 
        replacement assistance provided through the project will assist 
        families in which an individual takes leave or is absent from 
        employment as described in subsection (d)(2); and
            (7) an assurance that the applicant will participate in 
        efforts to evaluate the effectiveness of the project.
    (f) Selection Criteria.--In selecting entities to receive grants 
for projects under this section, the Secretary shall--
            (1) take into consideration--
                    (A) the scope of the proposed projects;
                    (B) the cost-effectiveness, feasibility, and 
                financial soundness of the proposed projects;
                    (C) the extent to which the proposed projects would 
                expand access to wage replacement in response to family 
                caregiving needs, particularly for low-wage employees, 
                in the area served by the grant; and
                    (D) the benefits that would be offered to families 
                and children through the proposed projects; and
            (2) to the extent feasible, select entities proposing 
        projects that utilize diverse mechanisms, including expansion 
        of State unemployment compensation benefit programs, and 
        establishment or expansion of State temporary disability 
        insurance programs, to provide the wage replacement.
    (g) Federal Share.--
            (1) In general.--The Federal share of the cost described in 
        subsection (a) shall be--
                    (A) 50 percent for the first year of the grant 
                period;
                    (B) 40 percent for the second year of that period;
                    (C) 30 percent for the third year of that period; 
                and
                    (D) 20 percent for each subsequent year.
            (2) Non-federal share.--The non-Federal share of the cost 
        may be in cash or in kind, fairly evaluated, including plant, 
        equipment, and services and may be provided from State, local, 
        or private sources, or Federal sources other than this chapter.
    (h) Supplement Not Supplant.--Funds appropriated pursuant to the 
authority of this chapter shall be used to supplement and not supplant 
other Federal, State, and local public funds and private funds expended 
to provide wage replacement.
    (i) Effect on Existing Rights.--Nothing in this chapter shall be 
construed to supersede, preempt, or otherwise infringe on the 
provisions of any collective bargaining agreement or any employment 
benefit program or plan that provides greater rights to employees than 
the rights established under this chapter.

SEC. 2115. NOTIFICATION.

    An eligible entity that provides partial or full wage replacement 
to an eligible individual under this chapter shall notify (in a form 
and manner prescribed by the Secretary)--
            (1) the employer of the individual of the amount of the 
        wage replacement provided; and
            (2) the individual and the employer of the individual that 
        the employer shall count an appropriate period of leave, 
        calculated under section 102(g) of the Family and Medical Leave 
        Act of 1993 (29 U.S.C. 2612(g)), as added by section 2118, 
        against the total amount of leave (if any) to which the 
        employee is entitled under section 102(a)(1) of that Act (29 
        U.S.C. 2612(a)(1)).

SEC. 2116. EVALUATIONS AND REPORTS.

    (a) Available Funds.--The Secretary shall use not more than 2 
percent of the funds made available under section 2117 to carry out 
this section.
    (b) Evaluations.--The Secretary shall, directly or by contract, 
evaluate the effectiveness of projects carried out with grants made 
under section 2114, including conducting--
            (1) research relating to the projects, including research 
        comparing--
                    (A) the scope of the projects, including the type 
                of insurance or other wage replacement mechanism used, 
                the method of financing used, the eligibility 
                requirements, the level of the wage replacement benefit 
                provided (such as the percentage of salary replaced), 
                and the length of the benefit provided, for the 
                projects;
                    (B) the utilization of the projects, including the 
                characteristics of individuals who benefit from the 
                projects, particularly low-wage workers, and factors 
                that determine the ability of eligible individuals to 
                obtain wage replacement through the projects; and
                    (C) the costs of and savings achieved by the 
                projects, including the cost-effectiveness of the 
                projects and their benefits for children and families;
            (2) analysis of the overall need for wage replacement; and
            (3) analysis of the impact of the projects on the overall 
        availability of wage replacement.
    (c) Reports.--
            (1) Initial report.--Not later than 3 years after the 
        beginning of the grant period for the first grant made under 
        section 2114, the Secretary shall prepare and submit to 
        Congress a report that contains information resulting from the 
        evaluations conducted under subsection (b).
            (2) Subsequent reports.--Not later than 4 years after the 
        beginning of that grant period, and annually thereafter, the 
        Secretary shall prepare and submit to Congress a report that 
        contains--
                    (A) information resulting from the evaluations 
                conducted under subsection (b); and
                    (B) usage data for the demonstration projects, for 
                the most recent year for which the data are available.

SEC. 2117. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this chapter 
$400,000,000 for fiscal year 2004 and such sums as may be necessary for 
each subsequent fiscal year.

SEC. 2118. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) In General.--Section 102 of the Family and Medical Leave Act of 
1993 (29 U.S.C. 2612) is amended by adding at the end the following:
    ``(g) Relationship to First Insurance.--
            ``(1) Full wage replacement.--If an eligible entity 
        provides full wage replacement to an employee for a period 
        under chapter 1 of the Family and Medical Leave Expansion Act, 
        the employee's employer shall count an amount of leave, equal 
        to that period, against the total amount of leave (if any) to 
        which the employee is entitled under subsection (a)(1).
            ``(2) Partial wage replacement.--If an eligible entity 
        provides partial wage replacement to an employee for a period 
        under chapter 1 of the Family and Medical Leave Expansion Act, 
        the employee's employer shall--
                    ``(A) total the amount of partial wage replacement 
                provided for that period;
                    ``(B) convert the total into a corresponding amount 
                of full wage replacement provided for a proportionately 
                reduced period; and
                    ``(C) count an amount of leave, equal to the period 
                described in subparagraph (B), against the total amount 
                of leave (if any) to which the employee is entitled 
                under subsection (a)(1).''.
    (b) Technical and Conforming Amendments.--Section 102(d)(2) of the 
Family and Medical Leave Act of 1993 (29 U.S.C. 2612(d)(2)) is amended 
by striking ``for leave'' and inserting ``for any unpaid leave''.

                 CHAPTER 2--FAMILY FRIENDLY WORKPLACES

SEC. 2121. SHORT TITLE.

    This chapter may be cited as the ``Family and Medical Leave 
Fairness Act of 2003''.

SEC. 2122. COVERAGE OF EMPLOYEES.

    Paragraphs (2)(B)(ii) and (4)(A)(i) of section 101 of the Family 
and Medical Leave Act of 1993 (29 U.S.C. 2611(2)(B)(ii) and (4)(A)(i)) 
are amended by striking ``50'' each place it appears and inserting 
``25''.

          CHAPTER 3--EMPLOYMENT PROTECTION FOR BATTERED WOMEN

SEC. 2131. ENTITLEMENT TO LEAVE FOR ADDRESSING DOMESTIC VIOLENCE FOR 
              NON-FEDERAL EMPLOYEES.

    (a) Definitions.--Section 101 of the Family and Medical Leave Act 
of 1993 (29 U.S.C. 2611) is amended by adding at the end the following:
            ``(14) Addressing domestic violence and its effects.--The 
        term `addressing domestic violence and its effects' means--
                    ``(A) being unable to attend or perform work due to 
                an incident of domestic violence;
                    ``(B) seeking medical attention for or recovering 
                from injuries caused by domestic violence;
                    ``(C) seeking legal assistance or remedies, 
                including communicating with the police or an attorney, 
                or participating in any legal proceeding, related to 
                domestic violence;
                    ``(D) obtaining services from a domestic violence 
                shelter or program or rape crisis center as a result of 
                domestic violence;
                    ``(E) obtaining psychological counseling related to 
                experiences of domestic violence;
                    ``(F) participating in safety planning and other 
                actions to increase safety from future domestic 
                violence, including temporary or permanent relocation; 
                and
                    ``(G) participating in any other activity 
                necessitated by domestic violence that must be 
                undertaken during the hours of employment involved.
            ``(15) Domestic violence.--The term `domestic violence' 
        means domestic violence, and dating violence, as such terms are 
        defined in section 2105 of the Omnibus Crime Control and Safe 
        Streets Act of 1968 (42 U.S.C. 3796hh-4).''.
    (b) Leave Requirement.--Section 102 of the Family and Medical Leave 
Act of 1993 (29 U.S.C. 2612) is amended--
            (1) in subsection (a)(1), by adding at the end the 
        following:
                    ``(E) In order to care for the son, daughter, or 
                parent of the employee, if such son, daughter, or 
                parent is addressing domestic violence and its effects.
                    ``(F) Because the employee is addressing domestic 
                violence and its effects, which make the employee 
                unable to perform the functions of the position of such 
                employee.'';
            (2) in subsection (b), by adding at the end the following:
            ``(3) Domestic violence.--Leave under subparagraph (E) or 
        (F) of subsection (a)(1) may be taken by an eligible employee 
        intermittently or on a reduced leave schedule. The taking of 
        leave intermittently or on a reduced leave schedule pursuant to 
        this paragraph shall not result in a reduction in the total 
        amount of leave to which the employee is entitled under 
        subsection (a) beyond the amount of leave actually taken.''; 
        and
            (3) in subsection (d)(2)(B), by striking ``(C) or (D)'' and 
        inserting ``(C), (D), (E), or (F)''.
    (c) Certification.--Section 103 of the Family and Medical Leave Act 
of 1993 (29 U.S.C. 2613) is amended--
            (1) in the title of the section, by inserting before the 
        period the following: ``; confidentiality''; and
            (2) by adding at the end the following:
    ``(f) Domestic Violence.--In determining if an employee meets the 
requirements of subparagraph (E) or (F) of section 102(a)(1), the 
employer of an employee may require the employee to provide--
            ``(1) a written statement describing the domestic violence 
        and its effects;
            ``(2) documentation of the domestic violence involved, such 
        as a police or court record, or documentation from a shelter 
        worker, an employee of a domestic violence program, an 
        attorney, a member of the clergy, or a medical or other 
        professional, from whom the employee has sought assistance in 
        addressing domestic violence and its effects; or
            ``(3) other corroborating evidence, such as a statement 
        from any other individual with knowledge of the circumstances 
        that provide the basis for the claim of domestic violence, or 
        physical evidence of domestic violence, such as a photograph, 
        torn or bloody clothing, or any other damaged property.
    ``(g) Confidentiality.--All evidence provided to the employer under 
subsection (f) of domestic violence experienced by an employee or the 
son, daughter, or parent of an employee, including a statement of an 
employee, any other documentation or corroborating evidence, and the 
fact that an employee has requested leave for the purpose of 
addressing, or caring for a son, daughter, or parent who is addressing, 
domestic violence and its effects, shall be retained in the strictest 
confidence by the employer, except to the extent that disclosure is 
requested, or consented to, by the employee for the purpose of--
            ``(1) protecting the safety of the employee or a family 
        member or co-worker of the employee; or
            ``(2) assisting in documenting domestic violence for a 
        court or agency.''.
    (d) Table of Contents.--The table of contents in section 1(b) of 
the Family and Medical Leave Act of 1993 (29 U.S.C. prec. 2601) is 
amended by striking the item relating to section 103 and inserting the 
following:

``Sec. 103. Certification; confidentiality.''.

SEC. 2132. ENTITLEMENT TO LEAVE FOR ADDRESSING DOMESTIC VIOLENCE FOR 
              FEDERAL EMPLOYEES.

    (a) Definitions.--Section 6381 of title 5, United States Code, is 
amended--
            (1) at the end of paragraph (5), by striking ``and'';
            (2) in paragraph (6), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
            ``(7) the term `addressing domestic violence and its 
        effects' has the meaning given the term in section 101 of the 
        Family and Medical Leave Act of 1993 (29 U.S.C. 2611); and
            ``(8) the term `domestic violence' means domestic violence, 
        and dating violence, as such terms are defined in section 2105 
        of the Omnibus Crime Control and Safe Streets Act of 1968 (42 
        U.S.C. 3796hh-4).''.
    (b) Leave Requirement.--Section 6382 of title 5, United States 
Code, is amended--
            (1) in subsection (a)(1), by adding at the end the 
        following:
            ``(E) In order to care for the son, daughter, or parent of 
        the employee, if such son, daughter, or parent is addressing 
        domestic violence and its effects.
            ``(F) Because the employee is addressing domestic violence 
        and its effects, which make the employee unable to perform the 
        functions of the position of such employee.'';
            (2) in subsection (b), by adding at the end the following:
            ``(3) Domestic violence.--Leave under subparagraph (E) or 
        (F) of subsection (a)(1) may be taken by an employee 
        intermittently or on a reduced leave schedule. The taking of 
        leave intermittently or on a reduced leave schedule pursuant to 
        this paragraph shall not result in a reduction in the total 
        amount of leave to which the employee is entitled under 
        subsection (a) beyond the amount of leave actually taken.''; 
        and
            (3) in subsection (d), by striking ``(C), or (D)'' and 
        inserting ``(C), (D), (E), or (F)''.
    (c) Certification.--Section 6383 of title 5, United States Code, is 
amended--
            (1) in the title of the section, by adding at the end the 
        following: ``; confidentiality''; and
            (2) by adding at the end the following:
    ``(f) In determining if an employee meets the requirements of 
subparagraph (E) or (F) of section 6382(a)(1), the employing agency of 
an employee may require the employee to provide--
            ``(1) a written statement describing the domestic violence 
        and its effects;
            ``(2) documentation of the domestic violence involved, such 
        as a police or court record, or documentation from a shelter 
        worker, an employee of a domestic violence program, an 
        attorney, a member of the clergy, or a medical or other 
        professional, from whom the employee has sought assistance in 
        addressing domestic violence and its effects; or
            ``(3) other corroborating evidence, such as a statement 
        from any other individual with knowledge of the circumstances 
        that provide the basis for the claim of domestic violence, or 
        physical evidence of domestic violence, such as a photograph, 
        torn or bloody clothing, or other damaged property.
    ``(g) All evidence provided to the employing agency under 
subsection (f) of domestic violence experienced by an employee or the 
son, daughter, or parent of an employee, including a statement of an 
employee, any other documentation or corroborating evidence, and the 
fact that an employee has requested leave for the purpose of 
addressing, or caring for a son, daughter, or parent who is addressing, 
domestic violence and its effects, shall be retained in the strictest 
confidence by the employing agency, except to the extent that 
disclosure is requested, or consented to, by the employee for the 
purpose of--
            ``(1) protecting the safety of the employee or a family 
        member or co-worker of the employee; or
            ``(2) assisting in documenting domestic violence for a 
        court or agency.''.
    (d) Table of Sections.--The table of sections for chapter 63 of 
title 5, United States Code, is amended by striking the item relating 
to section 6383 and inserting the following:

``6383. Certification; confidentiality.''.

SEC. 2133. EXISTING LEAVE USABLE FOR DOMESTIC VIOLENCE.

    (a) Definitions.--In this section:
            (1) Addressing domestic violence and its effects.--The term 
        ``addressing domestic violence and its effects'' has the 
        meaning given the term in section 101 of the Family and Medical 
        Leave Act of 1993 (29 U.S.C. 2611), as amended by section 
        2131(a).
            (2) Employee.--The term ``employee'' means any person 
        employed by an employer. In the case of an individual employed 
        by a public agency, such term means an individual employed as 
        described in section 3(e) of the Fair Labor Standards Act of 
        1938 (29 U.S.C. 203(e)).
            (3) Employer.--The term ``employer''--
                    (A) means any person engaged in commerce or in any 
                industry or activity affecting commerce who employs 
                individuals, if such person is also subject to the 
                Family and Medical Leave Act of 1993 (29 U.S.C. 2601 et 
                seq.) or to any provision of a State or local law, 
                collective bargaining agreement, or employment benefits 
                program or plan, addressing paid or unpaid leave from 
                employment (including family, medical, sick, annual, 
                personal, or similar leave); and
                    (B) includes any person acting directly or 
                indirectly in the interest of an employer in relation 
                to any employee, and includes a public agency, who is 
                subject to a law, agreement, program, or plan described 
                in subparagraph (A), but does not include any labor 
                organization (other than when acting as an employer) or 
                anyone acting in the capacity of officer or agent of 
                such labor organization.
            (4) Employment benefits.--The term ``employment benefits'' 
        has the meaning given the term in section 101 of the Family and 
        Medical Leave Act of 1993 (29 U.S.C. 2611).
            (5) Parent; son or daughter.--The terms ``parent'' and 
        ``son or daughter'' have the meanings given the terms in 
        section 101 of the Family and Medical Leave Act of 1993 (29 
        U.S.C. 2611).
            (6) Public agency.--The term ``public agency'' has the 
        meaning given the term in section 3 of  the Fair Labor 
Standards Act of 1938 (29 U.S.C. 203).
    (b) Use of Existing Leave.--An employee who is entitled to take 
paid or unpaid leave (including family, medical, sick, annual, 
personal, or similar leave) from employment, pursuant to State or local 
law, a collective bargaining agreement, or an employment benefits 
program or plan, shall be permitted to use such leave for the purpose 
of addressing domestic violence and its effects, or for the purpose of 
caring for a son or daughter or parent of the employee, if such son or 
daughter or parent is addressing domestic violence and its effects.
    (c) Certification.--In determining whether an employee qualifies to 
use leave as described in subsection (b), an employer may require a 
written statement, documentation of domestic violence, or corroborating 
evidence consistent with section 103(f) of the Family and Medical Leave 
Act of 1993 (29 U.S.C. 2613(f)), as amended by section 2131(c).
    (d) Confidentiality.--All evidence provided to the employer under 
subsection (c) of domestic violence experienced by an employee or the 
son or daughter or parent of the employee, including a statement of an 
employee, any other documentation or corroborating evidence, and the 
fact that an employee has requested leave for the purpose of 
addressing, or caring for a son or daughter or parent who is 
addressing, domestic violence and its effects, shall be retained in the 
strictest confidence by the employer, except to the extent that 
disclosure is requested, or consented to, by the employee for the 
purpose of--
            (1) protecting the safety of the employee or a family 
        member or co-worker of the employee; or
            (2) assisting in documenting domestic violence for a court 
        or agency.
    (e) Prohibited Acts.--
            (1) Interference with rights.--
                    (A) Exercise of rights.--It shall be unlawful for 
                any employer to interfere with, restrain, or deny the 
                exercise of or the attempt to exercise, any right 
                provided under this section.
                    (B) Discrimination.--It shall be unlawful for any 
                employer to discharge or in any other manner 
                discriminate against an individual for opposing any 
                practice made unlawful by this section.
            (2) Interference with proceedings or inquiries.--It shall 
        be unlawful for any person to discharge or in any other manner 
        discriminate against any individual because such individual--
                    (A) has filed any charge, or had instituted or 
                caused to be instituted any proceeding, under or 
                related to this section;
                    (B) has given, or is about to give, any information 
                in connection with any inquiry or proceeding relating 
                to any right provided under this section; or
                    (C) has testified, or is about to testify, in any 
                inquiry or proceeding relating to any right provided 
                under this section.
    (f) Enforcement.--
            (1) Public enforcement.--The Secretary of Labor shall have 
        the powers set forth in subsections (b), (c), (d), and (e) of 
        section 107 of the Family and Medical Leave Act of 1993 (29 
        U.S.C. 2617) for the purpose of public agency enforcement of 
        any alleged violation of subsection (e) against any employer.
            (2) Private enforcement.--The remedies and procedures set 
        forth in section 107(a) of the Family and Medical Leave Act of 
        1993 (29 U.S.C. 2617(a)) shall be the remedies and procedures 
        pursuant to which an employee may initiate a legal action 
        against an employer for alleged violations of subsection (e).
            (3) References.--For purposes of paragraph (1) and (2), 
        references in section 107 of the Family and Medical Leave Act 
        of 1993 (29 U.S.C. 2617) to section 105 of such Act (29 U.S.C. 
        2615) shall be considered to be references to subsection (e).
            (4) Employer liability under other laws.--Nothing in this 
        section shall be construed to limit the liability of an 
        employer to an employee for harm suffered relating to the 
        employee's experience of domestic violence pursuant to any 
        other Federal or State law, including a law providing for a 
        legal remedy.

            CHAPTER 4--FEDERAL EMPLOYEES PAID PARENTAL LEAVE

SEC. 2141. SHORT TITLE.

    This chapter may be cited as the ``Federal Employees Paid Parental 
Leave Act of 2003''.

SEC. 2142. DEMONSTRATION PROJECT.

    Subchapter V of chapter 63 of title 5, United States Code, is 
amended--
            (1) by redesignating section 6387 as section 6388; and
            (2) by inserting after section 6386 the following:
``Sec. 6387. Paid leave demonstration project
    ``(a) The Office of Personnel Management may, through an agreement 
or contract with 1 or more employing agencies described in subsection 
(b), conduct under section 4703 a demonstration project that assists 
families by providing paid leave for eligible individuals who are 
responding to--
            ``(1) caregiving needs resulting from the birth or adoption 
        of a son or daughter; or
            ``(2) other family caregiving needs.
    ``(b) In carrying out a project under this section, an employing 
agency of 1 or more employees shall provide partial or full paid leave 
to eligible individuals for not less than 6 weeks during a period of 
leave, or an absence from employment, described in subsection (c)(2), 
during any 12-month period. Paid leave available to an individual under 
this subsection shall be in addition to any annual or sick leave that 
the individual may elect to use during a period of leave, or an absence 
from employment, described in subsection (c)(2), during any 12-month 
period.
    ``(c) To be eligible to receive paid leave under subsection (a), an 
individual shall--
            ``(1) be an employee who meets such eligibility criteria as 
        the Office of Personnel Management may specify in a plan 
        described in section 4703(b); and
            ``(2) be--
                    ``(A) an individual who is taking leave, under this 
                subchapter, or other Federal law, for a reason 
                described in subparagraph (A) or (B) of section 
                6382(a)(1);
                    ``(B) at the option of the Office of Personnel 
                Management, an individual who--
                            ``(i) is taking leave, under this 
                        subchapter, or other Federal law, for a reason 
                        described in subparagraph (C), (D), (E), or (F) 
                        of section 6382(a)(1); or
                            ``(ii) leaves employment, and has an 
                        absence from employment, because the individual 
                        has elected to care for a son or daughter under 
                        age 1; or
                    ``(C) at the option of the Office of Personnel 
                Management, an individual who has an absence from 
                employment and has other characteristics specified by 
                the Office of Personnel Management in a plan described 
                in section 4703(b).
    ``(d) An employing agency that provides partial or full paid leave 
to an eligible individual under this section shall notify (in a form 
and manner prescribed by the Office of Personnel Management) the 
individual that the employing agency shall count an appropriate period 
of leave, calculated under section 6382(f), against the total amount of 
leave (if any) to which the employee is entitled under section 
6382(a)(1).
    ``(e)(1) A demonstration project conducted under this section shall 
not be counted toward the 10-project limit established in section 
4703(d)(2).
    ``(2) The Office of Personnel Management may provide a waiver for 
the demonstration project in accordance with section 4703, except that 
section 4703(c)(1) shall not apply to such a waiver.
    ``(f)(1) There are authorized to be appropriated to carry out this 
section $400,000,000 for fiscal year 2004 and such sums as may be 
necessary for each subsequent fiscal year.
    ``(2) Funds appropriated under paragraph (1) may be allocated as 
described in section 4704.''.

SEC. 2143. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) In General.--Section 6382 of title 5, United States Code, is 
amended by adding at the end the following:
    ``(f)(1) If an employing agency provides an amount of full paid 
leave to an employee for a period under section 6387, the employing 
agency shall count an amount of leave, equal to that period, against 
the total amount of leave (if any) to which the employee is entitled 
under subsection (a)(1).
    ``(2) If an employing agency provides an amount of partial paid 
leave to an employee for a period under section 6387, the employing 
agency shall--
                    ``(A) total the amount of partial paid leave 
                provided for that period;
                    ``(B) convert the total into a corresponding amount 
                of full paid leave provided for a proportionately 
                reduced period; and
                    ``(C) count an amount of leave, equal to the period 
                described in subparagraph (B), against the total amount 
                of leave (if any) to which the employee is entitled 
                under subsection (a)(1).''.
    (b) Technical and Conforming Amendments.--Section 6382 of title 5, 
United States Code, is amended--
            (1) in subsection (c), by striking ``(d),'' and inserting 
        ``(d) or section 6387,''; and
            (2) in subsection (d), by inserting ``any unpaid'' after 
        ``substitute for''.
    (c) Table of Sections.--The table of sections for chapter 63 of 
title 5, United States Code, is amended by striking the item relating 
to section 6387 and inserting the following:

``6387. Paid leave demonstration project.
``6388. Regulations.''.

SEC. 2144. EFFECTIVE DATE.

    The amendments made by this chapter shall not be effective with 
respect to any birth or placement occurring before the end of the 6-
month period beginning on the date of enactment of this Act.

                      CHAPTER 5--TIME FOR SCHOOLS

SEC. 2151. SHORT TITLE.

    This chapter may be cited as the ``Time for Schools Act of 2003''.

SEC. 2152. GENERAL REQUIREMENTS FOR LEAVE.

    (a) Entitlement to Leave.--Section 102(a) of the Family and Medical 
Leave Act of 1993 (29 U.S.C. 2612(a)) is amended by adding at the end 
the following:
            ``(3) Entitlement to school involvement leave.--
                    ``(A) In general.--Subject to section 103(h), an 
                eligible employee shall be entitled to a total of 24 
                hours of leave during any 12-month period to 
                participate in an academic activity of a school of a 
                son or daughter of the employee, such as a parent-
                teacher conference or an interview for a school, or to 
                participate in literacy training under a family 
                literacy program.
                    ``(B) Definitions.--In this paragraph:
                            ``(i) Family literacy program.--The term 
                        `family literacy program' means a program of 
                        services that are of sufficient intensity in 
                        terms of hours, and of sufficient duration, to 
                        make sustainable changes in a family and that 
                        integrate all of the following activities:
                                    ``(I) Interactive literacy 
                                activities between parents and their 
                                sons and daughters.
                                    ``(II) Training for parents on how 
                                to be the primary teacher for their 
                                sons and daughters and full partners in 
                                the education of their sons and 
                                daughters.
                                    ``(III) Parent literacy training.
                                    ``(IV) An age-appropriate education 
                                program for sons and daughters.
                            ``(ii) Literacy.--The term `literacy', used 
                        with respect to an individual, means the 
                        ability of the individual to speak, read, and 
                        write English, and compute and solve problems, 
                        at levels of proficiency necessary--
                                    ``(I) to function on the job, in 
                                the family of the individual, and in 
                                society;
                                    ``(II) to achieve the goals of the 
                                individual; and
                                    ``(III) to develop the knowledge 
                                potential of the individual.
                            ``(iii) School.--The term `school' means an 
                        elementary school or secondary school (as such 
                        terms are defined in section 9101 of the 
                        Elementary and Secondary Education Act of 1965 
                        (20 U.S.C. 7801)), a Head Start program 
                        assisted under the Head Start Act (42 U.S.C. 
                        9831 et seq.), and a child care facility 
                        operated by a provider who meets the applicable 
                        State or local government licensing, 
                        certification, approval, or registration 
                        requirements, if any.
            ``(4) Limitation.--No employee may take more than a total 
        of 12 workweeks of leave under paragraphs (1) and (3) during 
        any 12-month period.''.
    (b) Schedule.--Section 102(b)(1) of such Act (29 U.S.C. 2612(b)(1)) 
is amended by inserting after the second sentence the following: 
``Leave under subsection (a)(3) may be taken intermittently or on a 
reduced leave schedule.''.
    (c) Substitution of Paid Leave.--Section 102(d)(2)(A) of such Act 
(29 U.S.C. 2612(d)(2)(A)) is amended by inserting before the period the 
following: ``, or for leave provided under subsection (a)(3) for any 
part of the 24-hour period of such leave under such subsection''.
    (d) Notice.--Section 102(e) of such Act (29 U.S.C. 2612(e)) is 
amended by adding at the end the following:
            ``(3) Notice for school involvement leave.--In any case in 
        which the necessity for leave under subsection (a)(3) is 
        foreseeable, the employee shall provide the employer with not 
        less than 7 days' notice, before the date the leave is to 
        begin, of the employee's intention to take leave under such 
        subsection. If the necessity for the leave is not foreseeable, 
        the employee shall provide such notice as is practicable.''.
    (e) Certification.--Section 103 of such Act (29 U.S.C. 2613), as 
amended by section 2131(c), is further amended by adding at the end the 
following:
    ``(h) Certification for School Involvement Leave.--An employer may 
require that a request for leave under section 102(a)(3) be supported 
by a certification issued at such time and in such manner as the 
Secretary may by regulation prescribe.''.

SEC. 2153. SCHOOL INVOLVEMENT LEAVE FOR CIVIL SERVICE EMPLOYEES.

    (a) Entitlement to Leave.--Section 6382(a) of title 5, United 
States Code, is amended by adding at the end the following:
    ``(3)(A) Subject to section 6383(h), an employee shall be entitled 
to a total of 24 hours of leave during any 12-month period to 
participate in an academic activity of a school of a son or daughter of 
the employee, such as a parent-teacher conference or an interview for a 
school, or to participate in literacy training under a family literacy 
program.
    ``(B) In this paragraph:
            ``(i) The term `family literacy program' means a program of 
        services that are of sufficient intensity in terms of hours, 
        and of sufficient duration, to make sustainable changes in a 
        family and that integrate all of the following activities:
                    ``(I) Interactive literacy activities between 
                parents and their sons and daughters.
                    ``(II) Training for parents on how to be the 
                primary teacher for their sons and daughters and full 
                partners in the education of their sons and daughters.
                    ``(III) Parent literacy training.
                    ``(IV) An age-appropriate education program for 
                sons and daughters.
            ``(ii) The term `literacy', used with respect to an 
        individual, means the ability of the individual to speak, read, 
        and write English, and compute and solve problems, at levels of 
        proficiency necessary--
                    ``(I) to function on the job, in the family of the 
                individual, and in society;
                    ``(II) to achieve the goals of the individual; and
                    ``(III) to develop the knowledge potential of the 
                individual.
            ``(iii) The term `school' means an elementary school or 
        secondary school (as such terms are defined in section 9101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801)), a Head Start program assisted under the Head Start Act 
        (42 U.S.C. 9831 et seq.), and a child care facility operated by 
        a provider who meets the applicable State or local government 
        licensing, certification, approval, or registration 
        requirements, if any.
    ``(4) No employee may take more than a total of 12 workweeks of 
leave under paragraphs (1) and (3) during any 12-month period.''.
    (b) Schedule.--Section 6382(b)(1) of such title is amended by 
inserting after the second sentence the following: ``Leave under 
subsection (a)(3) may be taken intermittently or on a reduced leave 
schedule.''.
    (c) Substitution of Paid Leave.--Section 6382(d) of such title is 
amended by inserting before ``, except'' the following: ``, or for 
leave provided under subsection (a)(3) any of the employee's accrued or 
accumulated annual leave under subchapter I for any part of the 24-hour 
period of such leave under such subsection''.
    (d) Notice.--Section 6382(e) of such title is amended by adding at 
the end the following:
    ``(3) In any case in which the necessity for leave under subsection 
(a)(3) is foreseeable, the employee shall provide the employing agency 
with not less than 7 days' notice, before the date the leave is to 
begin, of the employee's intention to take leave under such subsection. 
If the necessity for the leave is not foreseeable, the employee shall 
provide such notice as is practicable.''.
    (e) Certification.--Section 6383 of such title, as amended by 
section 2132(c), is further amended by adding at the end the following:
    ``(h) An employing agency may require that a request for leave 
under section 6382(a)(3) be supported by a certification issued at such 
time and in such manner as the Office of Personnel Management may by 
regulation prescribe.''.

SEC. 2154. EFFECTIVE DATE.

    This chapter takes effect 120 days after the date of enactment of 
this Act.

               Subtitle C--Health Care for the Uninsured

SEC. 2201. FAMILYCARE COVERAGE OF PARENTS UNDER THE MEDICAID PROGRAM 
              AND TITLE XXI.

    (a) Incentives To Implement FamilyCare Coverage.--
            (1) Under medicaid.--
                    (A) Establishment of new optional eligibility 
                category.--Section 1902(a)(10)(A)(ii) of the Social 
                Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)), as 
                amended by section 1112(a)(1)(A), is amended--
                            (i) by striking ``or'' at the end of 
                        subclause (XVIII);
                            (ii) by adding ``or'' at the end of 
                        subclause (XIX); and
                            (iii) by adding at the end the following 
                        new subclause:
                                    ``(XX) who are parents described in 
                                subsection (k)(1), but only if the 
                                State meets the conditions described in 
                                subsection (k)(2);''.
                    (B) Conditions for coverage.--Section 1902 of such 
                Act is further amended by inserting after subsection 
                (j) the following new subsection:
    ``(k)(1)(A) Parents described in this paragraph are the parents of 
an individual who is under 19 years of age (or such higher age as the 
State may have elected under section 1902(l)(1)(D)) and who is eligible 
and enrolled for medical assistance under subsection (a)(10)(A), if--
            ``(i) such parents are not otherwise eligible for such 
        assistance under such subsection; and
            ``(ii) the income of the family that includes such parents 
        does not exceed an income level specified by the State 
        consistent with paragraph (2)(B).
    ``(B) In this subsection, the term `parent' has the meaning given 
the term `caretaker' for purposes of carrying out section 1931, and 
such additional meaning as defined by the State and approved by the 
Secretary.
    ``(2) The conditions for a State to provide medical assistance 
under subsection (a)(10)(A)(ii)(XX) are as follows:
            ``(A) The State has a State child health plan under title 
        XXI which (whether implemented under such title or under this 
        title)--
                    ``(i) has an income standard (or will establish an 
                income standard that is effective at the time 
                additional allotments are available to the State under 
                section 2104(d), as amended by the Leave No Child 
                Behind Act of 2003) for children that is at least 200 
                percent of the poverty line; and
                    ``(ii) does not limit the acceptance of 
                applications, does not use a waiting list for children 
                who meet eligibility standards to qualify for 
                assistance, and provides benefits to all children in 
                the State who apply for and meet eligibility standards.
            ``(B) The income level specified under paragraph (1)(A)(ii) 
        for parents in a family exceeds the income level applicable 
        under section 1931 but does not exceed the highest income level 
        applicable to a child in the family under this title. A State 
        may not cover such parents with higher family income without 
        covering parents with a lower family income.
    ``(3) In the case of a parent described in paragraph (1) who is 
also the parent of a child who is eligible and enrolled for child 
health assistance under title XXI, the State may elect (on a uniform 
basis) to cover all such parents under section 2111 or under subsection 
(a)(10)(A).''.
                    (C) Enhanced matching funds available.--Section 
                1905 of such Act (42 U.S.C. 1396d) is amended--
                            (i) in the fourth sentence of subsection 
                        (b), by striking ``or subsection (u)(3)'' and 
                        inserting ``, (u)(3), or (u)(4)''; and
                            (ii) in subsection (u)--
                                    (I) by redesignating paragraph (4) 
                                as paragraph (6), and
                                    (II) by inserting after paragraph 
                                (3) the following new paragraph:
    ``(4) For purposes of subsection (b) and section 2105(a)(1):
            ``(A) FamilyCare parents.--The expenditures described in 
        this subparagraph are the following:
                    ``(i) Parents.--Expenditures for medical assistance 
                made available under section 1931, or under section 
                1902(a)(10)(A)(ii)(XX) for parents described in section 
                1902(k)(1), in a family the income of which exceeds the 
                income level applicable under such section 1931 to a 
                family of the size involved as of January 1, 2003.
                    ``(ii) Certain pregnant women.--Expenditures for 
                medical assistance for pregnant women under section 
                1902(l)(1)(A) in a family the income of which exceeds 
                the income level applicable under section 1902(l)(2)(A) 
                to a family of the size involved as of January 1, 
                2003.''.
                    (D) Appropriation from title xxi allotment for 
                certain medicaid expansion costs.--Section 
                2105(a)(1)(C) of such Act (42 U.S.C. 1397ee(a)(1)(C))) 
                is amended by inserting ``and for medical assistance 
                that is attributable to expenditures described in 
                section 1905(u)(4)(A)'' before the semicolon.
                    (E) Only counting enhanced portion for coverage of 
                additional pregnant women.--Section 1905 of such Act 
                (42 U.S.C. 1396d) is amended--
                            (i) in the fourth sentence of subsection 
                        (b), by inserting ``(except in the case of 
                        expenditures described in subsection (u)(5))'' 
                        after ``do not exceed'';
                            (ii) in subsection (u), by inserting after 
                        paragraph (4) (as inserted by subparagraph 
                        (C)), the following new paragraph:
    ``(5) For purposes of the fourth sentence of subsection (b) and 
section 2105(a), the following payments under this title do not count 
against a State's allotment under section 2104:
            ``(A) Regular fmap for expenditures for pregnant women with 
        income above january 1, 2003 income level and below 185 percent 
        of poverty.--The portion of the payments made for expenditures 
        described in paragraph (4)(A)(ii) that represents the amount 
        that would have been paid if the enhanced FMAP had not been 
        substituted for the Federal medical assistance percentage.''.
            (2) Under title xxi.--
                    (A) FamilyCare coverage.--Title XXI of such Act is 
                amended by adding at the end the following new section:

``SEC. 2111. OPTIONAL FAMILYCARE COVERAGE OF PARENTS OF TARGETED LOW-
              INCOME CHILDREN.

    ``(a) Optional Coverage.--Notwithstanding any other provision of 
this title, a State child health plan may provide for coverage, through 
an amendment to its State child health plan under section 2102, of 
FamilyCare assistance for targeted low-income parents in accordance 
with this section, but only if--
            ``(1) the State meets the conditions described in section 
        1902(k)(2); and
            ``(2) the State elects to provide medical assistance under 
        section 1902(a)(10)(A)(ii)(XX) and elects an applicable income 
        limit that is not lower than the limit described in subsection 
        (b)(2)(A).
    ``(b) Definitions.--For purposes of this section:
            ``(1) FamilyCare assistance.--The term `FamilyCare 
        assistance' has the meaning given the term child health 
        assistance in section 2110(a) as if any reference to targeted 
        low-income children were a reference to targeted low-income 
        parents.
            ``(2) Targeted low-income parent.--The term `targeted low-
        income parent' has the meaning given the term targeted low-
        income child in section 2110(b) as if the reference to a child 
        were deemed a reference to a parent (as defined in paragraph 
        (3)) of the child; except that in applying such section--
                    ``(A) there shall be substituted for the income 
                limit described in paragraph (1)(B)(ii)(I) the 
                applicable income limit in effect for a targeted low-
                income child;
                    ``(B) in paragraph (3), January 1, 2003, shall be 
                substituted for July 1, 1997; and
                    ``(C) in paragraph (4), January 1, 2003, shall be 
                substituted for March 31, 1997.
            ``(3) Parent.--The term `parent' has the meaning given the 
        term `caretaker' for purposes of carrying out section 1931, and 
        such additional meaning as defined by the State and approved by 
        the Secretary.
            ``(4) Optional treatment of pregnant women as parents.--A 
        State child health plan may treat a pregnant woman who is not 
        otherwise a parent as a targeted low-income parent for purposes 
        of this section but only if the State has established an income 
        level under section 1902(l)(2)(A)(i) for pregnant women that is 
        at least 185 percent of the income official poverty line 
        described in such section.
    ``(c) References to Terms and Special Rules.--In the case of, and 
with respect to, a State providing for coverage of FamilyCare 
assistance to targeted low-income parents under subsection (a), the 
following special rules apply:
            ``(1) Any reference in this title (other than subsection 
        (b)) to a targeted low-income child is deemed to include a 
        reference to a targeted low-income parent.
            ``(2) Any such reference to child health assistance with 
        respect to such parents is deemed a reference to FamilyCare 
        assistance.
            ``(3) In applying section 2103(e)(3)(B) in the case of a 
        family provided coverage under this section, the limitation on 
        total annual aggregate cost-sharing shall be applied to the 
        entire family.
            ``(4) In applying section 2110(b)(4), any reference to 
        `section 1902(l)(2) or 1905(n)(2) (as selected by a State)' is 
        deemed a reference to the income level applicable to parents 
        under section 1931, or, in the case of a pregnant woman 
        described in subsection (b)(4), the income level established 
        under section 1902(l)(2)(A).''.
                    (B) Additional allotment for states providing 
                familycare.--
                            (i) In general.--Section 2104 of such Act 
                        (42 U.S.C. 1397dd) is amended by inserting 
                        after subsection (c) the following new 
                        subsection:
    ``(d) Additional Allotments for State Providing FamilyCare.--
            ``(1) Appropriation; total allotment.--For the purpose of 
        providing additional allotments to States electing to provide 
        FamilyCare coverage under section 2111, there is appropriated, 
        out of any money in the Treasury not otherwise appropriated--
                    ``(A) for fiscal year 2004, $2,000,000,000;
                    ``(B) for fiscal year 2005, $2,000,000,000;
                    ``(C) for fiscal year 2006, $3,000,000,000;
                    ``(D) for fiscal year 2007, $3,000,000,000;
                    ``(E) for fiscal year 2008, $6,000,000,000;
                    ``(F) for fiscal year 2009, $7,000,000,000;
                    ``(G) for fiscal year 2010, $8,000,000,000;
                    ``(H) for fiscal year 2011, $9,000,000,000;
                    ``(I) for fiscal year 2012, $10,000,000,000; and
                    ``(J) for fiscal year 2013 and each fiscal year 
                thereafter, the amount of the allotment provided under 
                this paragraph for the preceding fiscal year increased 
                by the percentage increase (if any) in the medical care 
                expenditure category of the Consumer Price Index for 
                All Urban Consumers (United States city average).
            ``(2) State and territorial allotments.--
                    ``(A) In general.--In addition to the allotments 
                provided under subsections (b) and (c), subject to 
                paragraph (3), of the amount available for the 
                additional allotments under paragraph (1) for a fiscal 
                year, the Secretary shall allot to each State with a 
                State child health plan approved under this title and 
                which has elected to provide coverage under section 
                2111 during the fiscal year--
                            ``(i) in the case of such a State other 
                        than a commonwealth or territory described in 
                        clause (ii), the same proportion as the 
                        proportion of the State's allotment under 
                        section 2104(b) (determined without regard to 
                        section 2104(f)) to 98.95 percent of the total 
                        amount of the allotments under such section for 
                        such States eligible for an allotment under 
                        this subparagraph for such fiscal year; and
                            ``(ii) in the case of a commonwealth or 
                        territory described in section 2104(c)(3), the 
                        same proportion as the proportion of the 
                        commonwealth's or territory's allotment under 
                        section 2104(c) (determined without regard to 
                        section 2104(f)) to 1.05 percent of the total 
                        amount of the allotments under such section for 
                        commonwealths and territories eligible for an 
                        allotment under this subparagraph for such 
                        fiscal year.
                    ``(B) Redistribution of unused allotments.--In 
                applying subsection (f) with respect to additional 
                allotments made available under this subsection, the 
                procedures established under such subsection shall 
                ensure such additional allotments are only made 
                available to States which have elected to provide 
                coverage under section 2111.
            ``(3) Use of additional allotment.--Additional allotments 
        provided under this subsection are not available for amounts 
        expended before October 1, 2003. Such amounts are available for 
        amounts expended on or after such date for child health 
        assistance for targeted low-income children, as well as for 
        FamilyCare assistance.''.
                            (ii) Conforming amendments.--Section 2104 
                        of such Act (42 U.S.C. 1397dd) is further 
                        amended--
                                    (I) in subsection (a), by inserting 
                                ``subject to subsection (d),'' after 
                                ``under this section,'';
                                    (II) in subsection (b)(1), by 
                                inserting ``and subsection (d)'' after 
                                ``Subject to paragraph (4)''; and
                                    (III) in subsection (c)(1), by 
                                inserting ``subject to subsection 
                                (d),'' after ``for a fiscal year,''.
                    (C) No cost-sharing for pregnancy-related 
                benefits.--Section 2103(e)(2) of such Act (42 U.S.C. 
                1397cc(e)(2)) is amended--
                            (i) in the heading, by inserting ``and 
                        pregnancy-related services'' after ``preventive 
                        services''; and
                            (ii) by inserting before the period at the 
                        end the following: ``and for pregnancy-related 
                        services''.
            (3) Effective date.--The amendments made by this subsection 
        apply to items and services furnished on or after October 1, 
        2003.
    (b) Rules for Implementation Beginning With Fiscal Year 2008.--
            (1) Required coverage of familycare parents.--Section 
        1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 
        1396a(a)(10)(A)(i)), as amended by section 1101(b)(1)(A)(iii), 
        is amended--
                    (A) by striking ``or'' at the end of subclause 
                (VII);
                    (B) by striking the semicolon at the end of 
                subclause (VIII) and insert ``, or''; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(IX) who would be parents 
                                described in subsection (k)(1) if the 
                                income level specified in subsection 
                                (k)(2)(B) were equal to at least 100 
                                percent of the poverty line referred to 
                                in such subsection;''.
            (2) Expansion of availability of enhanced match under 
        medicaid for pre-chip expansions.--Paragraph (4) of section 
        1905(u) of such Act (42 U.S.C. 1396d(u)), as inserted by 
        subsection (a)(1)(C), is amended--
                    (A) by amending clause (ii) of subparagraph (A) to 
                read as follows:
                    ``(ii) Certain pregnant women.--Expenditures for 
                medical assistance for pregnant women under section 
                1902(l)(1)(A) in a family the income of which exceeds 
                the 133 percent of the income official poverty line.''; 
                and
                    (B) by adding at the end the following new 
                subparagraphs:
            ``(B) Parents with income above 100 percent of poverty but 
        below january 1, 2003 income level.--The expenditures described 
        in this subparagraph are expenditures for medical assistance 
        made available for any parents described in section 
        1902(a)(10)(A)(i)(VIII), whose income exceeds 100 percent of 
        the income official poverty line applicable to a family of the 
        size involved but does not exceed the applicable income level 
        established under this title (under section 1931 or otherwise) 
        for a parent in a family of the size involved as of January 1, 
        2003.
            ``(C) Children in families with income above medicaid 
        mandatory level not previously described.--The expenditures 
        described in this subparagraph are expenditures (other than 
        expenditures described in paragraph (2) or (3)) for medical 
        assistance made available to any child who is eligible for 
        assistance under section 1902(a)(10)(A) and the income of whose 
        family exceeds the minimum income level required under 
        subsection 1902(l)(2) for a child of the age involved (treating 
        any child who is 19 or 20 years of age as being 18 years of 
        age).''.
            (3) Offset of additional expenditures for enhanced match 
        for pre-chip expansion; elimination of offset for required 
        coverage of familycare parents.--
                    (A) In general.--Section 1905(u)(5) of such Act (42 
                U.S.C. 1396d(u)(5)), as added by subsection (a)(1)(E), 
                is amended--
                            (i) by amending subparagraph (A) to read as 
                        follows:
            ``(A) Regular fmap for expenditures for pregnant women with 
        income above 133 percent of poverty.--The portion of the 
        payments made for expenditures described in paragraph 
        (4)(A)(ii) that represents the amount that would have been paid 
        if the enhanced FMAP had not been substituted for the Federal 
        medical assistance percentage.''; and
                            (ii) by adding at the end the following new 
                        subparagraphs:
            ``(B) FamilyCare parents under 100 percent of poverty.--
        Payments for expenditures described in paragraph (4)(A)(i) in 
        the case of parents whose income does not exceed 100 percent of 
        the income official poverty line applicable to a family of the 
        size involved.
            ``(C) Regular fmap for expenditures for parents with income 
        above 100 percent of poverty but below january 1, 2003 income 
        level.--The portion of the payments made for expenditures 
        described in paragraph (4)(B) that represents the amount that 
        would have been paid if the enhanced FMAP had not been 
        substituted for the Federal medical assistance percentage.
            ``(D) Regular fmap for expenditures for certain children in 
        families with income above medicaid mandatory level.--The 
        portion of the payments made for expenditures described in 
        paragraph (4)(C) that represents the amount that would have 
        been paid if the enhanced FMAP had not been substituted for the 
        Federal medical assistance percentage.''.
                    (B) Conforming amendments.--Section 2105(a)(1)(C) 
                of such Act (42 U.S.C. 1397ee(1)(1)(C)), as amended by 
                subsection (a)(1)(D), is amended by striking ``and for 
                medical assistance that is attributable to expenditures 
                described in section 1905(u)(4)(A)'' and inserting 
                ``and for medical assistance that is attributable to 
                expenditures described in section 1905(u)(4), except as 
                provided in section 1905(u)(5)''.
            (3) Effective date.--The amendments made by this subsection 
        apply as of October 1, 2007, to fiscal years beginning on or 
        after such date and to expenditures under the State plan on and 
        after such date.
    (c) Making Title XXI Base Allotments Permanent.--Section 2104(a) of 
such Act (42 U.S.C. 1397dd(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(11) for fiscal year 2008 and each fiscal year 
        thereafter, the amount of the allotment provided under this 
        subsection for the preceding fiscal year increased by the 
        percentage increase (if any) in the medical care expenditure 
        category of the Consumer Price Index for All Urban Consumers 
        (United States city average).''.
    (d) Optional Application of Presumptive Eligibility Provisions to 
Parents.--Section 1920A of such Act (42 U.S.C. 1396r-1a) is amended by 
adding at the end the following new subsection:
    ``(e) In accordance with regulations, a State may elect to apply 
the previous provisions of this section to provide for a period of 
presumptive eligibility for medical assistance for a parent of a child 
with respect to whom such a period is provided under this section.''.
    (e) Conforming Amendments.--
            (1) Eligibility categories.--Section 1905(a) of such Act 
        (42 U.S.C. 1396d(a)) is amended, in the matter before paragraph 
        (1)--
                    (A) by striking ``or'' at the end of clause (xi);
                    (B) by inserting ``or'' at the end of clause (xii); 
                and
                    (C) by inserting after clause (xii) the following 
                new clause:
            ``(xiii) who are parents described (or treated as if 
        described) in section 1902(k)(1),''.
            (2) Income limitations.--Section 1903(f)(4) of such Act (42 
        U.S.C. 1396b(f)(4)) is amended--
                    (A) effective October 1, 2007, by inserting 
                ``1902(a)(10)(A)(i)(IX),'' after 
                ``1902(a)(10)(A)(i)(VIII),''; and
                    (B) by inserting ``1902(a)(10)(A)(ii)(XX),'' after 
                ``1902(a)(10)(A)(ii)(XIX),''.
            (3) Conforming amendment relating to no waiting period for 
        certain women.--Section 2102(b)(1)(B) of such Act (42 U.S.C. 
        1397bb(b)(1)(B)) is amended--
                    (A) by striking ``, and'' at the end of clause (i) 
                and inserting a semicolon;
                    (B) by striking the period at the end of clause 
                (ii) and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(iii) may not apply a waiting period 
                        (including a waiting period to carry out 
                        paragraph (3)(C)) in the case of targeted low-
                        income women who are pregnant.''.

        Subtitle D--Awareness of Environmental Risks to Children

SEC. 2301. SHORT TITLE.

    This subtitle may be cited as the ``Children's Environmental 
Protection and Right to Know Act''.

SEC. 2302. FINDING.

    Congress finds that requirements to disclose information about 
environmental risks will improve health and safety by--
            (1) prompting persons causing those risks to reduce the 
        risks; and
            (2) enabling individuals to take actions to protect 
        themselves from those risks.

             CHAPTER 1--CHILDREN'S ENVIRONMENTAL PROTECTION

    Subchapter A--Disclosure of Industrial Releases That Present a 
                      Significant Risk to Children

SEC. 2311. REPORTING REQUIREMENTS.

    (a) In General.--Section 313(f) of the Emergency Planning and 
Community Right-To-Know Act of 1986 (42 U.S.C. 11023(f)) is amended by 
striking paragraph (1) and inserting the following:
            ``(1) In general.--
                    ``(A) Toxic chemical threshold quantity.--The 
                threshold quantities for purposes of reporting toxic 
                chemicals under this section are as follows:
                            ``(i) Toxic chemicals used at facilities.--
                        The threshold quantity of a toxic chemical used 
                        at a facility shall be 10,000 pounds of the 
                        toxic chemical per year.
                            ``(ii) Manufactured or processed toxic 
                        chemicals.--The threshold quantity of a toxic 
                        chemical manufactured or processed at a 
                        facility shall be--
                                    ``(I) 75,000 pounds of a toxic 
                                chemical per year, for any toxic 
                                chemical for which a toxic chemical 
                                release form is required to be 
                                submitted under this section on or 
                                before July 1, 1988;
                                    ``(II) 50,000 pounds of a toxic 
                                chemical per year, for any toxic 
                                chemical for which a toxic chemical 
                                release form is required to be 
                                submitted during the period beginning 
                                July 2, 1988, and ending July 1, 1989; 
                                and
                                    ``(III) 25,000 pounds of a toxic 
                                chemical per year, for any toxic 
                                chemical for which any toxic release 
                                form is required to be submitted on or 
                                after July 2, 1989.
                    ``(B) Toxic chemicals released from facilities.--
                            ``(i) Toxic chemical threshold program.--
                                    ``(I) Establishment.--Not later 
                                than 2 years after the date of 
                                enactment of the Children's 
                                Environmental Protection and Right to 
                                Know Act, subject to clause (ii) and in 
                                addition to the reporting thresholds 
                                for the toxic chemicals specified in 
                                subclause (II), the Administrator shall 
                                establish a reporting threshold for 
                                each toxic chemical that the 
                                Administrator determines may present a 
                                significant risk to children's health 
                                or the environment due to, as 
                                determined by the--
                                            ``(aa) the persistent use 
                                        or existence of the toxic 
                                        chemical in the environment;
                                            ``(bb) the potential of the 
                                        toxic chemical to bioaccumulate 
                                        or disrupt endocrine systems; 
                                        or
                                            ``(cc) other 
                                        characteristics of the toxic 
                                        chemical.
                                    ``(II) Toxic chemicals included.--
                                The Administrator shall establish a 
                                reporting threshold under subclause (I) 
                                for--
                                            ``(aa) lead;
                                            ``(bb) mercury;
                                            ``(cc) dioxin;
                                            ``(dd) cadmium;
                                            ``(ee) chromium; and
                                            ``(ff) each substance 
                                        identified as a bioaccumulative 
                                        chemical of concern in the 
                                        final rule promulgated by the 
                                        Administrator entitled `Water 
                                        Quality Guidance for the Great 
                                        Lakes System, Part III' (60 
                                        Fed. Reg. 15336 (March 23, 
                                        1995)).
                            ``(ii) Threshold quantity.--The 
                        Administrator shall establish by regulation 
                        each threshold quantity for a toxic chemical 
                        described in clause (i) at a level that, as 
                        determined by the Administrator, will ensure 
                        reporting of at least 80 percent of the 
                        aggregate of all releases of the toxic chemical 
                        from facilities that--
                                    ``(I) have 10 or more full-time 
                                employees; and
                                    ``(II) are designated with any of 
                                Standard Industrial Classification 
                                Codes 20 through 39 or any of the 
                                Standard Industrial Classification 
                                Codes added under subsection 
                                (b)(1)(B).''.
    (b) Conforming Amendments.--
            (1) Section 313 of the Emergency Planning and Community 
        Right-To-Know Act of 1986 (42 U.S.C. 11023) is amended--
                    (A) in subsections (a) and (b)(1)(A), by striking 
                ``or otherwise used'' each place it appears and 
                inserting ``otherwise used, or released'';
                    (B) in subsection (c)--
                            (i) by striking ``are those chemicals'' and 
                        inserting the following: ``are--
            ``(1) those chemicals'';
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(2) dioxin and each other substance identified as a 
        bioaccumulative chemical of concern in the final rule 
        promulgated by the Administrator entitled `Water Quality 
        Guidance for the Great Lakes System, Part III' (60 Fed. Reg. 
        15336 (March 23, 1995)).''; and
                    (C) in the first sentence of subsection (f)(2), by 
                striking ``paragraph (1)' and inserting ``subparagraph 
                (A) or (B) of paragraph (1)''.
            (2) Section 326(a)(1)(B) of the Emergency Planning and 
        Community Right-To-Know Act of 1986 (42 U.S.C. 11046(a)(1)(B)) 
        is amended by adding at the end the following:
            ``(vii) Establish reporting thresholds for chemicals 
        referred to in section 313(f)(1)(C).''.

 Subchapter B--Disclosure of High Health Risk Chemicals in Children's 
                           Consumer Products

SEC. 2321. LIST OF TOXIC CHEMICALS.

    (a) Definition of Eligible Product.--Section 2 of the Federal 
Hazardous Substances Act (15 U.S.C. 1261) is amended by adding at the 
end the following:
    ``(u) Eligible Product.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        term `eligible product' means any toy or other article intended 
        for use by children.
            ``(2) Exception.--On and after the date that is 3 years 
        after the date of enactment of this subsection, the term 
        `eligible product' means any consumer product (as defined in 
        section 3 of the Consumer Product Safety Act (15 U.S.C. 
        2052)).''.
    (b) List of Toxic Chemicals.--Section 3 of the Federal Hazardous 
Substances Act (15 U.S.C. 1262) is amended by adding at the end the 
following:
    ``(k) List of Toxic Chemicals.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Administrator.--The term `Administrator' 
                means the Administrator of the Environmental Protection 
                Agency.
                    ``(B) Chairman.--The term `Chairman' means the 
                Chairman of the Consumer Product Safety Commission.
            ``(2) List.--Not later than 1 year after the date of 
        enactment of this subsection, the Administrator, acting jointly 
        with the Chairman, shall publish in the Federal Register a list 
        of substances or mixtures of substances that have been 
        determined by the Administrator and the Chairman to be toxic to 
        children due to their carcinogenic, neurotoxic, or reproductive 
        toxic effects.
            ``(3) Substances and information to be included.--The list 
        under that paragraph shall include--
                    ``(A)(i) any chemical that has been identified by a 
                Federal agency as being a carcinogen, neurotoxin, or 
                reproductive toxin;
                    ``(ii) each chemical identified as a Group A or 
                Group B carcinogen in the notice published by the 
                Administrator entitled `Regulation of Pesticides in 
                Food: Addressing the Delaney Paradox Policy Statement' 
                (53 Fed. Reg. 41118 (October 19, 1988));
                    ``(iii) each chemical that adversely affects the 
                nervous system of children, as identified in criteria 
                documents of the National Institute for Occupational 
                Safety and Health;
                    ``(iv) each chemical identified by the Consumer 
                Product Safety Commission as having sufficient evidence 
                to demonstrate--
                            ``(I) carcinogenicity in humans or animals;
                            ``(II) neurotoxicity in humans or animals;
                            ``(III) human developmental toxicity; or
                            ``(IV) male or female reproductive toxicity 
                        in humans or animals;
                    ``(v) each chemical regulated as a neurotoxin, 
                reproductive toxin, or developmental toxin by the 
                Administrator; and
                    ``(vi) each chemical on the Biennial List of 
                Carcinogens submitted to Congress by the Secretary of 
                Health and Human Services; and
                    ``(B) such reasonably available information on 
                adverse health effects of any substance or mixture of 
                substances as was used to determine whether to include 
                the substance or mixture on the list required under 
                paragraph (2).
            ``(4) Data.--In carrying out paragraph (3), the Secretary 
        and the Chairman shall require manufacturers and importers of 
        substances and mixtures of substances on the list required 
        under paragraph (2) to generate, and shall obtain from any 
        Federal, State, or local government, such data as are 
        sufficient to identify substances or mixtures of substances--
                    ``(A) that are toxic within the meaning of 
                paragraph (2); and
                    ``(B) to which infants and young children are 
                exposed.
    ``(l) Chemical Testing and Risk Assessment.--As soon as practicable 
after the date of enactment of this subsection, the Administrator of 
the Environmental Protection Agency, in consultation with experts in 
pediatric toxicology and exposure, shall develop and implement new 
short-term and long-term strategies for more comprehensive chemical 
testing and risk assessment to ensure that risks of exposure to 
children (including exposure to children in utero) are, to the maximum 
extent practicable, fully understood.''.

SEC. 2322. REPORTING OF TOXIC CHEMICALS IN CONSUMER PRODUCTS.

    (a) Reporting.--The Federal Hazardous Substances Act (15 U.S.C. 
1261 et seq.) is amended by adding at the end the following:

``SEC. 25. REPORTING OF TOXIC CHEMICALS.

    ``(a) In General.--A manufacturer or importer of any eligible 
product that contains, or is composed of, a substance or mixture of 
substances listed under section 3(k) shall submit to the Commission a 
report that describes each of the following:
            ``(1) The identity of the manufacturer or importer of the 
        eligible product.
            ``(2) A description of the eligible product (including any 
        model name and model number of the eligible product).
            ``(3) The identity of the substance or mixture of 
        substances listed under section 3(k) (including the 
        concentration of the substance or mixture in the eligible 
        product).
            ``(4) Any information known to the manufacturer or importer 
        that would support a determination that the eligible product is 
        not a misbranded hazardous substance or a banned hazardous 
        substance.
            ``(5) Such data as are generated by the manufacturer or 
        importer as are sufficient to identify any substances or 
        mixtures of substances manufactured or imported that are toxic 
        to children, as described in section 3(k)(2).
    ``(b) Publication.--The Commission shall annually publish in the 
Federal Register, and make available to the public in an electronic 
format, the information submitted under subsection (a).
    ``(c) Regulations.--The Commission shall promulgate such 
regulations as necessary to carry out this section.
    ``(d) Application of Section.--Subsection (a) shall apply to a 
substance or mixture of substances listed under section 3(k) beginning 
on the date that is 1 year after the date on which the substance or 
mixture of substances is listed under that section.''.
    (b) Prohibited Acts.--
            (1) In general.--Section 4 of the Federal Hazardous 
        Substances Act (15 U.S.C. 1263) is amended by adding at the end 
        the following:
    ``(l) The failure to report as required under section 25.''.
            (2) Conforming amendment.--Section 5(c)(1) of the Federal 
        Hazardous Substances Act (15 U.S.C. 1264(c)(1)) is amended in 
        the second sentence by striking ``and (k)'' and inserting 
        ``(k), and (l)''.

SEC. 2323. EXEMPTIONS.

    (a) In General.--Section 3(c) of the Federal Hazardous Substances 
Act (15 U.S.C. 1262(c)) is amended--
            (1) by striking ``(c) If the Commission finds'' and 
        inserting the following:
    ``(c) Exemption From Requirements by Regulation.--
            ``(1) In general.--If the Commission determines''; and
            (2) by adding at the end the following:
            ``(2) Additional regulations.--In addition to regulations 
        promulgated under paragraph (1), the Commission may promulgate 
        regulations exempting from the reporting requirements of 
        section 25 any substance or mixture of substances.
            ``(3) Applicability.--This subsection shall not apply to 
        any substance or mixture of substances unless the Commission 
        determines that the substance or mixture would not, by reason 
        of containing a substance or mixture of substances listed under 
        section 3(k), cause substantial personal injury or substantial 
        illness during, or as a proximate result of, any customary or 
        reasonably foreseeable handling or use (including reasonably 
        foreseeable ingestion by children).''.
    (b) Conforming Amendment.--Section 3(d) of the Federal Hazardous 
Substances Act (15 U.S.C. 1262(d)) is amended by striking ``adequate 
requirements satisfying the purposes of'' and inserting ``requirements 
at least as stringent as''.

SEC. 2324. PRIVATE CITIZEN ENFORCEMENT.

    The Federal Hazardous Substances Act (15 U.S.C. 1261 et seq.) (as 
amended by section 2322(a)) is amended by adding at the end the 
following:

``SEC. 26. PRIVATE CITIZEN ENFORCEMENT.

    ``(a) In General.--Subject to subsection (c), any person other than 
the Commission may bring a civil action in United States district 
court--
            ``(1) against any person, for violation of subsection (a), 
        (b), or (l) of section 4; or
            ``(2) against the Commission, for a failure of the 
        Commission to perform any nondiscretionary act or duty under 
        the amendments made by the Children's Environmental Protection 
        and Right to Know Act.
    ``(b) Jurisdiction.--In the case of a civil action under subsection 
(a)--
            ``(1) the United States district courts shall have 
        jurisdiction over the civil action without regard to the amount 
        in controversy or the citizenship of the parties; and
            ``(2) the court may apply any appropriate civil penalties 
        under section 5 or order the Commission to perform any 
        nondiscretionary act or duty that the Commission failed to 
        perform.
    ``(c) Actions Prohibited.--No action may be commenced under this 
section unless--
            ``(1) not later than 60 days before the date on which the 
        action is filed, the plaintiff gives notice of the intent to 
        bring the action--
                    ``(A) to the Commission; and
                    ``(B) in the case of an action for a violation of 
                section 4, to the person that is alleged to have 
                violated that section; and
            ``(2) in the case of an action for a violation of section 
        4, the Commission has not commenced and is not diligently 
        pursuing a civil action on behalf of the United States.
    ``(d) Intervention.--In any action on behalf of the United States 
following receipt of a notice under subsection (d)(1), the person 
providing the notice may intervene as of right as a plaintiff in the 
action.
    ``(e) Costs.--
            ``(1) In general.--Except as provided in paragraph (2), in 
        any action under subsection (a), the costs of litigation 
        (including reasonable attorney fees) may be awarded to--
                    ``(A) any substantially prevailing plaintiff; and
                    ``(B) in any action under subsection (c), the party 
                intervening under subsection (c), if that party 
                contributed significantly to the success of the 
                plaintiff.
            ``(2) Waiver.--The award of costs under paragraph (1) may 
        be fully or partially waived by a court if the court finds such 
an award to be inappropriate under the circumstances.
    ``(f) Burden of Proof.--In any action under subsection (a)(1), if 
the person alleged to have violated section 4 asserts that a substance 
or mixture of substances is not a hazardous substance by reason of 
containing a substance or mixture of substances listed under section 
3(k), the burden of proof shall be the alleged violator to establish 
that the substance or mixture of substances is not a hazardous 
substance.
    ``(g) Penalty Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a fund to be used in carrying out this 
        section (referred to in this section as the `Fund').
            ``(2) Deposit of assessed penalties.--A penalty assessed as 
        a result of a civil action under subsection (a) shall be 
        deposited in the Fund.
            ``(3) Use of funds.--On request by the Commission, the 
        Secretary of the Treasury shall transfer from the Fund to the 
        Commission such amounts as the Commission determines are 
        necessary to finance compliance and enforcement activities 
        under this Act.
            ``(4) Availability.--Amounts in the Fund shall remain 
        available for use by the Commission until expended, without 
        further appropriation.
            ``(5) Reports.--The Commission shall submit to Congress an 
        annual report that describes--
                    ``(A) any funds deposited into the Fund during the 
                year for which the report is submitted (including the 
                sources of those funds); and
                    ``(B) the actual and proposed uses of the funds.
    ``(h) Other Projects.--Notwithstanding subsection (g), in lieu of 
being deposited in the Fund, any civil penalty assessed may, at the 
option of the court (after consultation with the Commission), be used 
to fund projects of the Commission that are--
            ``(1) consistent with this Act; and
            ``(2) designed to enhance public awareness of--
                    ``(A) the health effects of toxic substances or 
                mixtures of toxic substances in eligible products; and
                    ``(B) the potential for exposure of children to 
                toxic substances or mixtures of toxic substances in 
                eligible products.''.

        CHAPTER 2--PUBLIC RIGHT TO KNOW ABOUT TOXIC CHEMICAL USE

SEC. 2331. DISCLOSURE OF TOXIC CHEMICAL USE BY COMPARABLE FACILITIES.

    Section 313(b)(1)(B) of the Emergency Planning and Community Right-
To-Know Act of 1986 (42 U.S.C. 11023(b)(1)(B)) is amended--
            (1) by striking ``(B) The Administrator'' and inserting the 
        following:
                    ``(B) Modifications to covered facilities.--
                            ``(i) Modification by the administrator.--
                        The Administrator''; and
            (2) by adding at the end the following:
                            ``(ii) Modifications beginning with 2004 
                        reporting year.--Effective beginning with the 
                        2004 reporting year, any facility identified by 
                        the Standard Industrial Classification Codes 
                        specified in the proposed rule entitled 
                        `Addition of Facilities in Certain Industry 
                        Sectors; Toxic Chemical Release Reporting; 
                        Community Right-to-Know, Part II' (61 Fed. Reg. 
                        33588 (June 27, 1996)) shall be subject to the 
                        requirements of this section.
                            ``(iii) Regulations to add additional 
                        categories of facilities.--
                                    ``(I) In general.--Not later than 2 
                                years after the date of enactment of 
                                this clause, subject to subclause (II), 
                                the Administrator shall promulgate 
                                final regulations to require compliance 
                                with this section by all additional 
                                categories of facilities that use or 
                                release toxic chemicals in volumes 
                                similar to the volumes used or released 
                                by facilities that are covered by this 
                                section as of the date of enactment of 
                                this clause.
                                    ``(II) Inapplicability to farms.--
                                Subclause (I) shall not apply to any 
                                farm.''.

SEC. 2332. DISCLOSURE OF TOXIC CHEMICAL USE.

    (a) In General.--Section 313 of the Emergency Planning and 
Community Right-To-Know Act of 1986 (42 U.S.C. 11023) is amended--
            (1) in the second sentence of subsection (a), by striking 
        ``releases'' and inserting ``toxic chemical uses and 
        releases'';
            (2) in subsection (g)(1)(C)--
                    (A) by inserting ``for the preceding calendar 
                year'' after ``items of information'';
                    (B) in clause (ii), by striking ``the preceding 
                calendar year'' and inserting ``the calendar year''; 
                and
                    (C) by adding at the end the following:
            ``(v)(I) The number of employees, including contractors, at 
        the facility.
            ``(II) The number of employees, including contractors, at 
        the facility that were exposed to the toxic chemical.
            ``(III) An estimate of the quantity and level of 
        occupational exposures to the toxic chemical.
            ``(vi)(I) The following materials accounting information:
                    ``(aa) A description of the uses of the toxic 
                chemical at the facility.
                    ``(bb) The starting inventory of the toxic chemical 
                at the facility.
                    ``(cc) The quantity of the toxic chemical produced 
                at the facility.
                    ``(dd) The quantity of the toxic chemical 
                transported into the facility and the mode of 
                transportation.
                    ``(ee) The quantity of the toxic chemical consumed 
                at the facility.
                    ``(ff) The quantity of the toxic chemical 
                transported out of the facility as products or in 
                products, and the quantity intended for--
                            ``(AA) industrial use;
                            ``(BB) commercial use;
                            ``(CC) consumer use; and
                            ``(DD) any additional category of use that 
                        the Administrator may designate.
                    ``(gg) The quantity of the toxic chemical entering 
                any waste stream (or otherwise released into the 
                environment) before recycling, treatment, or disposal.
                    ``(hh) The ending inventory of the toxic chemical 
                at the facility.
                    ``(ii) The quantity of the toxic chemical recycled 
                at the facility that is subsequently used at the 
                facility.
                    ``(jj) The quantity of the toxic chemical used, 
                which shall be calculated with respect to a toxic 
                chemical by adding the quantities reported under items 
                (bb), (cc), (dd), and (ii) with respect to the toxic 
                chemical and subtracting the quantity reported under 
                subclause (hh) with respect to the toxic chemical.
            ``(II) Each quantity reported under this clause shall be 
        complete and verifiable by computations using conventional 
        materials accounting practices.
            ``(III) If the sum of the quantities reported under items 
        (bb), (cc), (dd), and (ii) of subclause (I) does not equal the 
        sum of the quantities reported under subclauses (ee), (ff), 
        (gg), and (hh) of that subclause, the form shall provide an 
        explanation of the difference in the sums.
            ``(vii) The quantity of the reduction, from the year prior 
        to the preceding calendar year, in the quantity of the toxic 
        chemical entering any waste stream (or otherwise released into 
        the environment) before recycling, treatment, or disposal (as 
        reported under section 6607(b)(1) of the Pollution Prevention 
        Act of 1990 (42 U.S.C. 13106(b)(1)), as a result of--
                    ``(I) equipment or technology modifications;
                    ``(II) process or procedure modifications;
                    ``(III) reformulation or redesign of products;
                    ``(IV) substitution of raw materials; and
                    ``(V) improvements in housekeeping, maintenance, 
                training, or inventory control.
            ``(viii) The quantity of the reduction, from the year prior 
        to the preceding calendar year, in the quantity of the toxic 
        chemical used as determined under clause (vi)(I)(jj) as a 
        result of all activities specified in clause (vii).''; and
            (3) in the second sentence of subsection (h), by inserting 
        ``uses of toxic chemicals at covered facilities and'' after 
        ``inform persons about''.
    (b) Regulations.--Not later than 2 years after the date of 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall promulgate regulations concerning the 
information to be provided under section 313(g)(1)(C)(v) of the 
Emergency Planning and Community Right-To-Know Act of 1986 (42 U.S.C. 
11023(g)(1)(C)(v)).

SEC. 2333. STREAMLINED DATA COLLECTION AND DISSEMINATION.

    Section 313 of the Emergency Planning and Community Right-To-Know 
Act of 1986 (42 U.S.C. 11023) is amended by adding at the end the 
following:
    ``(m) Streamlined Data Collection and Dissemination.--
            ``(1) In general.--To enhance public access and use of 
        information resources, to facilitate compliance with reporting 
        requirements, and to promote multimedia permitting, reporting, 
        and pollution prevention, the Administrator shall, not later 
        than 3 years after the date of enactment of this subsection--
                    ``(A) establish standard data formats for 
                management of information collected under this title 
                and other Federal environmental laws;
                    ``(B) integrate information collected under this 
                title and other Federal environmental laws, using--
                            ``(i) common company, facility, industry, 
                        geographic, and chemical identifiers; and
                            ``(ii) other identifiers as the 
                        Administrator determines to be appropriate;
                    ``(C) establish a system for indexing, locating, 
                and obtaining agency-held information about parent 
                companies, facilities, industries, chemicals, 
                geographic locations, ecological indicators, and the 
                regulatory status of chemicals and entities subject to 
                regulation under this title and other Federal 
                environmental laws;
                    ``(D) consolidate all annual reporting 
                requirements, under this title and other Federal 
                environmental laws, for small business concerns (as 
                defined in section 3 of the Small Business Act (15 
                U.S.C. 632)) in a manner that allows reporting to 1 
                point of contact using 1 form or electronic reporting 
                system; and
                    ``(E) provide members of the public 1 point of 
                contact for access to all publicly available 
                information collected by the Administrator for any 1 
                regulated entity.
            ``(2) Consolidation.--Not later than 5 years after the date 
        of enactment of this subsection, the Administrator shall 
        consolidate all annual reporting under this title and other 
        Federal environmental laws, for each entity subject to such 
        reporting, in a manner that allows reporting to 1 point of 
        contact using 1 form or electronic reporting system.
            ``(3) Understandable language.--In improving the means by 
        which the Administrator provides information to the public and 
        requires information be reported by regulated entities, as 
        required by paragraphs (1) and (2), the Administrator shall use 
        language and methods of communication that the Administrator 
        finds to be clear and understandable by a member of the public 
of average intelligence, education, and experience.''.

SEC. 2334. TRADE SECRET PROTECTION.

    Section 322 of the Emergency Planning and Community Right-To-Know 
Act of 1986 (42 U.S.C. 11042) is amended--
            (1) in subsection (a)(1), by adding at the end the 
        following:
                    ``(C) Withholding of materials accounting 
                information.--
                            ``(i) In general.--Subject to clause (ii), 
                        any person required to submit materials 
                        accounting information under section 
                        313(g)(1)(C)(vi) may withhold any item of that 
                        information (as determined under regulations 
                        promulgated by the Administrator under 
                        subsection (c)) if the person complies with 
                        paragraph (2) with respect to the information 
                        to be withheld.
                            ``(ii) Limitation.--Clause (i) does not 
                        provide authority to withhold any information 
                        covered by the Pollution Prevention Act of 1990 
                        (42 U.S.C. 13101 et seq.).'';
            (2) in subsection (b)(4), by inserting ``or other 
        information withheld'' after ``The chemical identity'';
            (3) in subsection (d)--
                    (A) in the first sentence of paragraph (1), by 
                inserting ``, or other information withheld under 
                subsection (a)(1),'' after ``toxic chemical''; and
                    (B) in paragraphs (2) through (4), by inserting 
                ``or other information withheld'' after ``chemical 
                identity'' each place it appears;
            (4) in subsection (f), by inserting ``or other information 
        withheld under subsection (a)(1)'' after ``chemical identity''; 
        and
            (5) in subsection (h)--
                    (A) in paragraph (1), by inserting ``, or other 
                information withheld under subsection (a)(1),'' before 
                ``is claimed as''; and
                    (B) in paragraph (2), by inserting ``, or other 
                information withheld under subsection (a)(1),'' after 
                ``identity of a toxic chemical''.

              Subtitle E--Promoting Responsible Fatherhood

                        CHAPTER 1--BLOCK GRANTS

SEC. 2401. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.

    (a) In General.--Part D of title IV of the Social Security Act (42 
U.S.C. 651 et seq.) is amended by adding at the end the following:

``SEC. 469C. BLOCK GRANTS TO STATES FOR MEDIA CAMPAIGNS PROMOTING 
              RESPONSIBLE FATHERHOOD.

    ``(a) Definitions.--In this section:
            ``(1) Broadcast advertisement.--The term `broadcast 
        advertisement' means a communication intended to be aired by a 
        television or radio broadcast station, including a 
        communication intended to be transmitted through a cable 
        channel.
            ``(2) Child at risk.--The term `child at risk' means each 
        young child whose family income does not exceed the poverty 
        line.
            ``(3) Poverty line.--The term `poverty line' has the 
        meaning given such term in section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981 (including any revision required by 
        such section) that is applicable to a family of the size 
        involved.
            ``(4) Printed or other advertisement.--The term `printed or 
        other advertisement' includes any communication intended to be 
        distributed through a newspaper, magazine, outdoor advertising 
        facility, mailing, or any other type of general public 
        advertising, but does not include any broadcast advertisement.
            ``(5) State.--The term `State' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            ``(6) Young child.--The term `young child' means an 
        individual under age 5.
    ``(b) State Certifications.--Not later than October 1 of each 
fiscal year for which a State desires to receive an allotment under 
this section, the chief executive officer of the State shall submit to 
the Secretary a certification that the State will--
            ``(1) use such funds to promote the formation and 
        maintenance of married 2-parent families, strengthen fragile 
        families, and promote responsible fatherhood through media 
        campaigns conducted in accordance with the requirements of 
        subsection (d);
            ``(2) return any unused funds to the Secretary in 
        accordance with the reconciliation process under subsection 
        (e); and
            ``(3) comply with the reporting requirements under 
        subsection (f).
    ``(c) Payments to States.--For each of fiscal years 2004 through 
2008, the Secretary shall pay to each State that submits a 
certification under subsection (b), from any funds appropriated under 
subsection (h), for the fiscal year an amount equal to the amount of 
the allotment determined for the fiscal year under subsection (g).
    ``(d) Establishment of Media Campaigns.--Each State receiving an 
allotment under this section for a fiscal year shall use the allotment 
to conduct media campaigns as follows:
            ``(1) Conduct of media campaigns.--
                    ``(A) Radio and television media campaigns.--
                            ``(i) Production of broadcast 
                        advertisements.--At the option of the State, to 
                        produce broadcast advertisements that promote 
                        the formation and maintenance of married 2-
                        parent families, strengthen fragile families, 
                        and promote responsible fatherhood.
                            ``(ii) Air time challenge program.--At the 
                        option of the State, to establish an air time 
                        challenge program under which the State may 
                        spend amounts allotted under this section to 
                        purchase time from a broadcast station to air a 
                        broadcast advertisement produced under 
                        subparagraph (A), but only if the State obtains 
                        an amount of time of the same class and during 
                        a comparable period to air the advertisement 
                        using non-Federal contributions.
                    ``(B) Other media campaigns.--At the option of the 
                State, to conduct a media campaign that consists of the 
                production and distribution of printed or other 
                advertisements that promote the formation and 
                maintenance of married 2-parent families, strengthen 
                fragile families, and promote responsible fatherhood.
            ``(2) Administration of media campaigns.--A State may 
        administer media campaigns funded under this section directly 
        or through grants, contracts, or cooperative agreements with 
        public agencies, local governments, or private entities, 
        including charitable and religious organizations.
            ``(3) Consultation with domestic violence assistance 
        centers.--In developing broadcast and printed advertisements to 
        be used in the media campaigns conducted under paragraph (1), 
        the State or other entity administering the campaign shall 
        consult with representatives of State and local domestic 
        violence centers.
            ``(4) Non-federal contributions.--In this subsection, the 
        term `non-Federal contributions' includes contributions by the 
        State and by public and private entities. Such contributions 
        may be in cash or in kind. Such term does not include any 
        amounts provided by the Federal Government, or services 
        assisted or subsidized to any significant extent by the Federal 
        Government, or any amount expended by a State before October 1, 
        2004.
    ``(e) Reconciliation Process.--
            ``(1) 3-year availability of amounts allotted.--Each State 
        that receives an allotment under this section shall return to 
        the Secretary any unused portion of the amount allotted to a 
        State under this section for a fiscal year not later than the 
        last day of the second succeeding fiscal year together with any 
        earnings on such unused portion.
            ``(2) Procedure for redistribution of unused allotments.--
        The Secretary shall establish an appropriate procedure for 
        redistributing to States that have expended the entire amount 
        allotted under this section any amount that is--
                    ``(A) returned to the Secretary by States under 
                paragraph (1); or
                    ``(B) not allotted to a State under this section 
                because the State did not submit a certification under 
                subsection (b) by October 1 of a fiscal year.
    ``(f) Reporting Requirements.--
            ``(1) Monitoring and evaluation.--Each State receiving an 
        allotment under this section for a fiscal year shall monitor 
        and evaluate the media campaigns conducted using funds made 
        available under this section in such manner as the Secretary, 
        in consultation with the States, determines appropriate.
            ``(2) Annual reports.--Not less frequently than annually, 
        each State receiving an allotment under this section for a 
        fiscal year shall submit to the Secretary reports on the media 
        campaigns conducted under this section at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
    ``(g) Amount of Allotments.--
            ``(1) In general.--Except as provided in paragraph (2), of 
        the amount appropriated for the purpose of making allotments 
        under this section for a fiscal year, the Secretary shall allot 
        to each State that submits a certification under subsection (b) 
        for the fiscal year an amount equal to the sum of--
                    ``(A) the amount that bears the same ratio to 50 
                percent of such funds as the number of young children 
                in the State (as determined by the Secretary based on 
                the most recent March supplement to the Current 
                Population Survey of the Bureau of the Census before 
                the beginning of the calendar year in which such fiscal 
                year begins) as bears to the number of such children in 
                all States; and
                    ``(B) the amount that bears the same ratio to 50 
                percent of such funds as the number of children at risk 
                in the State (as determined by the Secretary based on 
                the most recent March supplement to the Current 
                Population Survey of the Bureau of the Census before 
                the beginning of the calendar year in which such fiscal 
                year begins) bears to the number of such children in 
                all States.
            ``(2) Minimum allotments.--No allotment for a fiscal year 
        under this section shall be less than--
                    ``(A) in the case of a State other than the 
                Commonwealth of Puerto Rico, the United States Virgin 
                Islands, Guam, American Samoa, and the Commonwealth of 
                the Northern Mariana Islands, 1 percent of the amount 
                appropriated for the fiscal year under subsection (h); 
                and
                    ``(B) in the case of the Commonwealth of Puerto 
                Rico, the United States Virgin Islands, Guam, American 
                Samoa, and the Commonwealth of the Northern Mariana 
                Islands, 0.5 percent of such amount.
            ``(3) Pro rata reductions.--The Secretary shall make such 
        pro rata reductions to the allotments determined under 
        paragraph (1) as are necessary to comply with the requirements 
        of paragraph (2).
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated $25,000,000 for each of fiscal years 2004 through 2008 for 
purposes of making allotments to States under this section.''.
    (b) Evaluation.--
            (1) In general.--The Secretary of Health and Human Services 
        shall conduct an evaluation of the impact of the media 
        campaigns funded under section 469C of the Social Security Act, 
        as added by subsection (a).
            (2) Report.--Not later than December 31, 2006, the 
        Secretary of Health and Human Services shall report to Congress 
        the results of the evaluation under paragraph (1).
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated $1,000,000 for fiscal year 2004 for purposes 
        of conducting the evaluation required under this subsection, to 
        remain available until expended.

SEC. 2402. RESPONSIBLE FATHERHOOD BLOCK GRANT.

    (a) In General.--Part D of title IV of the Social Security Act (42 
U.S.C. 651 et seq.), as amended by section 2401, is amended by adding 
at the end the following:

``SEC. 469D. RESPONSIBLE FATHERHOOD BLOCK GRANT.

    ``(a) Definitions.--In this section:
            ``(1) Child at risk.--The term `child at risk' has the 
        meaning given such term in section 469C(a)(2).
            ``(2) Poverty line.--The term `poverty line' has the 
        meaning given such term in section 469C(a)(3).
            ``(3) State.--The term `State' has the meaning given such 
        term in section 469C(a)(5).
            ``(4) Young child.--The term `young child' has the meaning 
        given such term in section 469C(a)(6).
    ``(b) State Certifications.--Not later than October 1 of each 
fiscal year for which a State desires to receive an allotment under 
this section, the chief executive officer of the State shall submit to 
the Secretary a certification that the State will--
            ``(1) comply with the matching requirements under 
        subsection (c)(2);
            ``(2) use such funds to promote responsible fatherhood in 
        accordance with the requirements of subsection (d);
            ``(3) use such funds to promote or sustain marriage in 
        accordance with subparagraph (A) or (B) of subsection (d)(2);
            ``(4) return any unused funds to the Secretary in 
        accordance with the reconciliation process under subsection 
        (e); and
            ``(5) comply with the reporting requirements under 
        subsection (f).
    ``(c) Payments to States.--
            ``(1) In general.--Subject to paragraph (2), for each of 
        fiscal years 2004 through 2008, the Secretary shall pay to each 
        State that submits a certification described in subsection (b), 
        from any funds appropriated under subsection (h), for the 
        fiscal year an amount equal to the amount of the allotment 
        determined under subsection (g).
            ``(2) Matching requirement.--The Secretary may not make a 
        payment to a State under paragraph (1) unless the State agrees 
        that, with respect to the costs to be incurred by the State in 
        supporting the programs described in subsection (d), the State 
        will make available non-Federal contributions in an amount 
        equal to 25 percent of the amount of Federal funds paid to the 
        State under such clause.
            ``(3) Non-federal contributions.--In this subsection, the 
        term `non-Federal contributions' includes contributions by the 
        State and by public and private entities. Such contributions 
        may be in cash or in kind. Such term does not include any 
        amounts provided by the Federal Government, or services 
        assisted or subsidized to any significant extent by the Federal 
        Government or any amount expended by a State before October 1, 
        2004.
    ``(d) Responsible Fatherhood Programs.--
            ``(1) Support of programs.--A State shall use the 
        allotments received under this section to support programs 
        described in paragraph (2) directly or through a grant, 
        contract, or cooperative agreement with any public agency, 
        local government, or private entity (including any charitable 
        or religious organization) with experience in administering 
        such a program.
            ``(2) Programs described.--Responsible Fatherhood programs 
        include programs that--
                    ``(A) promote marriage through such activities as 
                counseling, mentoring, disseminating information about 
                the benefits of marriage and 2-parent involvement for 
                children, enhancing relationship skills, teaching on 
                how to control aggressive behavior, and disseminating 
                information on the causes of domestic violence and 
                child abuse;
                    ``(B) sustain marriages through marriage 
                preparation programs, premarital counseling, marital 
                inventories, skills-based marriage education, financial 
                planning seminars, programs to help parents improve 
                their economic status, and divorce education and 
                reduction programs, including mediation and counseling;
                    ``(C) promote responsible parenting through such 
                activities as counseling, mentoring, disseminating 
                information about good parenting practices, skills-
                based parenting education, encouraging child support 
                payments, and other methods; and
                    ``(D) help fathers and their families avoid or 
                leave cash welfare and improve their economic status by 
                providing such activities as work first services, job 
                search, job training, subsidized employment, job 
                retention, job enhancement, and encouraging education, 
                including career-advancing education, dissemination of 
                employment materials, coordination with existing 
                employment services such as Welfare to Work and 
                referrals to local employment training initiatives, and 
                other methods.
            ``(3) Targeted low-income participants.--Not less than 50 
        percent of the participants in each program supported under 
        paragraph (1) shall be--
                    ``(A) parents of a child who is, or within the past 
                24 months has been, a recipient of assistance or 
                services under a State program funded under this part; 
                or
                    ``(B) parents, including an expectant parent or a 
                married parent, whose income (after adjustment for 
                court-ordered child support paid or received) does not 
                exceed 150 percent of the poverty line.
            ``(4) Consultation with domestic violence assistance 
        centers.--Each State or entity administering a program 
        supported under paragraph (1) shall consult with 
        representatives of State and local domestic violence centers.
            ``(5) Supplement not supplant.--Amounts allotted to a State 
        under this section shall be used to supplement and not supplant 
        other Federal, State, or local funds provided to the State 
        under this part or any other provision of law that are used to 
        support programs and activities similar to the responsible 
        fatherhood program described in paragraph (2).
            ``(6) Restrictions on use.--No amount allotted under this 
        section may be used for court proceedings on matters of child 
        visitation or child custody, or for legislative advocacy.
    ``(e) Reconciliation Process.--
            ``(1) 3-year availability of amounts allotted.--Each State 
        that receives an allotment under this section shall return to 
        the Secretary any unused portion of the amount allotted to a 
        State under this section for a fiscal year not later than the 
        last day of the second succeeding fiscal year, together with 
        any earnings on such unused portion.
            ``(2) Procedure for redistribution of unused allotments.--
        The Secretary shall establish an appropriate procedure for 
        redistributing to States that have expended the entire amount 
        allotted under this section any amount that is--
                    ``(A) returned to the Secretary by States under 
                paragraph (1); or
                    ``(B) not allotted to a State under this section 
                because the State did not submit a certification under 
                subsection (b) by October 1 of a fiscal year.
    ``(f) Reporting Requirements.--
            ``(1) Monitoring and evaluation.--Each State receiving an 
        allotment under this section shall monitor and evaluate the 
        programs supported using funds made available under this 
        section in such manner as the Secretary, in consultation with 
        the States, determines appropriate.
            ``(2) Annual reports.--Not less frequently than annually, 
        each State receiving an allotment under this section for a 
        fiscal year shall submit to the Secretary reports on the 
        programs supported under this section at such time, in such 
        manner, and containing such information as the Secretary may 
        reasonably require.
    ``(g) Amount of Allotments.--
            ``(1) In general.--Except as provided in paragraph (2), of 
        the amount appropriated for the purpose of making allotments 
        under this section for a fiscal year the Secretary shall allot 
        to each State that submits a certification under subsection (b) 
        for that fiscal year an amount equal to the sum of--
                    ``(A) the amount that bears the same ratio to 50 
                percent of such funds as the number of young children 
                in the State (as determined by the Secretary based on 
                the most recent March supplement to the Current 
                Population Survey of the Bureau of the Census before 
                the beginning of the calendar year in which such fiscal 
                year begins) as bears to the number of such children in 
                all States; and
                    ``(B) the amount that bears the same ratio to 50 
                percent of such funds as the number of children at risk 
                in the State (as determined by the Secretary based on 
                the most recent March supplement to the Current 
                Population Survey of the Bureau of the Census before 
                the beginning of the calendar year in which such fiscal 
                year begins) bears to the number of such children in 
                all States.
            ``(2) Minimum allotments.--No allotment for a fiscal year 
        under this section shall be less than--
                    ``(A) in the case of a State other than the 
                Commonwealth of Puerto Rico, the United States Virgin 
                Islands, Guam, American Samoa, and the Commonwealth of 
                the Northern Mariana Islands, 1 percent of the amount 
                appropriated for the fiscal year under subsection (h); 
                and
                    ``(B) in the case of the Commonwealth of Puerto 
                Rico, the United States Virgin Islands, Guam, American 
                Samoa, and the Commonwealth of the Northern Mariana 
                Islands, 0.5 percent of such amount.
            ``(3) Pro rata reductions.--The Secretary shall make such 
        pro rata reductions to the allotments determined under 
        paragraph (1) as are necessary to comply with the requirements 
        of paragraph (2).
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated $50,000,000 for each of fiscal years 2004 through 2008 for 
purposes of making allotments to States under this section.''.
    (b) Evaluation and Report.--
            (1) Evaluation.--
                    (A) In general.--The Secretary of Health and Human 
                Services (in this subsection referred to as the 
                ``Secretary''), in consultation with the Secretary of 
                Labor, shall, directly or through a grant, contract, or 
                interagency agreement, conduct an evaluation of the 
                projects funded under section 469D of the Social 
                Security Act (as added by subsection (a)).
                    (B) Outcomes assessment.--The evaluation conducted 
                under subparagraph (A) shall assess, among other 
                outcomes selected by the Secretary, effects of the 
                projects on marriage, parenting, employment, earnings, 
                payment of child support, and incidence of domestic 
                violence and child abuse.
                    (C) Project selection.--In selecting projects for 
                the evaluation, the Secretary should include projects 
                that are most likely to further the purposes of this 
                section.
                    (D) Random assignment.--In conducting the 
                evaluation, random assignment should be used wherever 
                possible.
            (2) Report.--Not later than December 31, 2006, the 
        Secretary shall submit to Congress a report on the results of 
        the evaluation conducted under paragraph (1).
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated $1,000,000 for each of fiscal years 2004 
        through 2008 to carry out this subsection.

                   CHAPTER 2--NATIONAL CLEARINGHOUSE

SEC. 2411. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD PROGRAMS.

    Part D of title IV of the Social Security Act (42 U.S.C. 651), as 
amended by section 2402, is amended by adding at the end the following:

``SEC. 469E. MEDIA CAMPAIGN NATIONAL CLEARINGHOUSE FOR RESPONSIBLE 
              FATHERHOOD.

    ``(a) Media Campaign and National Clearinghouse.--
            ``(1) In general.--From any funds appropriated under 
        subsection (c), the Secretary shall contract with a nationally 
        recognized, nonprofit fatherhood promotion organization 
        described in subsection (b) to--
                    ``(A) develop, promote, and distribute to 
                interested States, local governments, public agencies, 
                and private entities a media campaign that encourages 
                the appropriate involvement of both parents in the life 
                of any child of the parents, with a priority for 
                programs that specifically address the issue of 
                responsible fatherhood; and
                    ``(B) develop a national clearinghouse to assist 
                States and communities in efforts to promote and 
                support marriage and responsible fatherhood by 
                collecting, evaluating, and making available (through 
                the Internet and by other means) to other States 
                information regarding the media campaigns established 
                under section 469C.
            ``(2) Coordination with domestic violence programs.--The 
        Secretary shall ensure that the nationally recognized nonprofit 
        fatherhood promotion organization with a contract under 
        paragraph (1) coordinates the media campaign developed under 
        subparagraph (A) of such paragraph and the national 
        clearinghouse developed under subparagraph (B) of such 
        paragraph with a national, State, or local domestic violence 
        program.
    ``(b) Nationally Recognized, Nonprofit Fatherhood Promotion 
Organization Described.--The nationally recognized, nonprofit 
fatherhood promotion organization described in this subsection is such 
an organization that has at least 4 years of experience in--
            ``(1) designing and disseminating a national public 
        education campaign, including the production and successful 
        placement of television, radio, and print public service 
        announcements that promote the importance of responsible 
        fatherhood; and
            ``(2) providing consultation and training to community-
        based organizations interested in implementing fatherhood 
        outreach, support, or skill development programs with an 
        emphasis on promoting married fatherhood as the ideal.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated $2,000,000 for each of fiscal years 2004 through 2008 to 
carry out this section.''.

                  TITLE III--HEAD START AND CHILD CARE

                    Subtitle A--Infants and Toddlers

SEC. 3001. RESERVATION OF HEAD START ACT FUNDS FOR INFANTS AND 
              TODDLERS.

    Section 640(a)(6) of the Head Start Act (42 U.S.C. 9835(a)(6)) is 
amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
    ``(A) Except as provided in subparagraph (B), from amounts reserved 
and allotted pursuant to paragraphs (2) and (4), the Secretary shall 
use, for grants for programs described in section 645A(a), a portion of 
the combined total of such amounts equal to--
            ``(i) 11 percent of the funds appropriated pursuant to 
        section 639(a) for fiscal year 2004;
            ``(ii) 12 percent of such funds for fiscal year 2005;
            ``(iii) 13 percent of such funds for fiscal year 2006;
            ``(iv) 14 percent of such funds for fiscal year 2007;
            ``(v) 15 percent of such funds for fiscal year 2008;
            ``(vi) 20 percent of such funds for fiscal year 2009;
            ``(vii) 25 percent of such funds for fiscal year 2010;
            ``(viii) 30 percent of such funds for fiscal year 2011;
            ``(ix) 35 percent of such funds for fiscal year 2012; and
            ``(x) 41 percent of such funds for fiscal year 2013.''; and
            (2) in subparagraph (B)--
                    (A) by striking clause (i); and
                    (B) by redesignating clauses (ii) and (iii) as 
                clauses (i) and (ii), respectively.

SEC. 3002. RESERVATION OF CHILD CARE AND DEVELOPMENT BLOCK GRANT FUNDS 
              FOR INFANTS AND TODDLERS.

    Section 658G of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858e) is amended--
            (1) by striking the heading and inserting the following:

``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE AND 
              ACTIVITIES FOR INFANTS AND TODDLERS.'';

            (2) by inserting before ``A State'' the following:
    ``(a) Activities To Improve the Quality of Child Care.--''; and
            (3) by adding at the end the following:
    ``(b) Activities for Infants and Toddlers.--A State that receives 
funds to carry out this subchapter (other than section 658H) for a 
fiscal year shall use, for activities that are designed to improve and 
expand child care for children from birth through age 3, not less 
than--
            ``(1) 5 percent of such funds for fiscal year 2004;
            ``(2) 6 percent of such funds for fiscal year 2005;
            ``(3) 7 percent of such funds for fiscal year 2006;
            ``(4) 8 percent of such funds for fiscal year 2007;
            ``(5) 9 percent of such funds for fiscal year 2008; and
            ``(6) 10 percent of such funds for fiscal year 2009.''.

                     Subtitle B--Child Care Access

               CHAPTER 1--IMPROVING ACCESS TO CHILD CARE

SEC. 3011. INCENTIVE GRANTS TO STATES.

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

``SEC. 658H. INCENTIVE GRANTS TO STATES.

    ``(a) Authority.--
            ``(1) In general.--The Secretary shall use the amount made 
        available under section 658B(b) for a fiscal year to make 
        grants to eligible States, and Indian tribes and tribal 
        organizations, in accordance with this section.
            ``(2) Annual payments.--The Secretary shall make an annual 
        payment for such a grant to each eligible State, and for Indian 
        tribes and tribal organizations, out of the corresponding 
        allotment determined under subsection (b).
    ``(b) Allotments.--For each fiscal year, the Secretary shall allot 
to each eligible State (and to Indian tribes and tribal organizations) 
an amount that bears the same ratio to the amount made available under 
section 658B(b) for the fiscal year as the amount the State (or the 
Indian tribes and tribal organizations) receive under section 658O for 
the fiscal year bears to the total amount received by all eligible 
States (and Indian tribes and tribal organizations) under that section 
for the fiscal year.
    ``(c) Eligible States.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section, a State shall--
                    ``(A) have conducted a survey of the market rates 
                for child care services in the State within the 2 years 
                preceding the date of the submission of an application 
                under paragraph (2); and
                    ``(B) submit an application in accordance with 
                paragraph (2).
            ``(2) Application.--
                    ``(A) In general.--To be eligible to receive a 
                grant under this section, a State shall submit an 
                application to the Secretary at such time, in such 
                manner, and accompanied by such information, in 
                addition to the information required under subparagraph 
                (B), as the Secretary may require.
                    ``(B) Information required.--Each application 
                submitted for a grant under this section shall--
                            ``(i) detail the methodology and results of 
                        the State market rates survey conducted 
                        pursuant to paragraph (1)(A);
                            ``(ii) describe the State's plan to 
                        increase payment rates from the initial 
                        baseline determined under clause (i);
                            ``(iii) describe how the State will 
                        increase payment rates in accordance with the 
                        market survey results, for all types of child 
                        care providers who provide services for which 
                        assistance is made available under this 
                        subchapter;
                            ``(iv) describe how payment rates will be 
                        set to reflect the variations in the cost of 
                        providing care for children of different ages 
                        and different types of care; and
                            ``(v) describe how the State will 
                        prioritize increasing payment rates for--
                                    ``(I) care of higher-than-average 
                                quality, such as care by accredited 
                                providers or care that includes the 
                                provision of comprehensive services; 
                                and
                                    ``(II) care that is difficult to 
                                find, such as care provided at 
                                nonstandard hours, care for children 
                                with special needs, care in low-income 
                                and rural communities, and care of a 
                                type that is in short supply.
            ``(3) Continuing eligibility requirement.--
                    ``(A) Second and subsequent payments.--A State 
                shall be eligible to receive a second or subsequent 
                annual payment under this section only if the Secretary 
                determines that the State has made progress, through 
                the activities assisted under this subchapter, in 
                maintaining increased payment rates.
                    ``(B) Third and subsequent payments.--A State shall 
                be eligible to receive a third or subsequent annual 
                payment under this section only if the State has 
                conducted, at least once every 2 years, an update of 
                the survey described in paragraph (1)(A).
            ``(4) Requirement of matching funds.--
                    ``(A) In general.--To be eligible to receive a 
                grant under this section, a State shall agree to make 
                available State contributions from State sources toward 
                the costs of the activities to be carried out by the 
                State pursuant to subsection (d) in an amount that is 
                not less than 20 percent of such costs.
                    ``(B) Determination of state contributions.--The 
                State contributions shall be in cash. Amounts provided 
                by the Federal Government may not be included in 
                determining the amount of such State contributions.
    ``(d) Use of Funds.--An eligible State that receives funds through 
a grant made under this section shall use the funds to significantly 
increase the payment rate for the provision of child care services for 
which assistance is provided under this subchapter, up to the 150th 
percentile of the market rate determined under the market rate survey 
described in subsection (c)(1)(A).
    ``(e) Evaluations and Reports.--
            ``(1) State evaluations.--Each eligible State shall submit 
        to the Secretary, at such time and in such form and manner as 
        the Secretary may require, information regarding the State's 
        efforts to increase payment rates and the impact increased 
        payment rates are having on the quality of, and accessibility 
        to, child care in the State.
            ``(2) Reports to congress.--The Secretary shall submit 
        biennial reports to Congress on the information described in 
        paragraph (1). Such reports shall include data from the 
        applications submitted under subsection (c)(2) as a baseline 
        for determining the progress of each eligible State in 
        maintaining increased payment rates.
    ``(f) Indian Tribes and Tribal Organizations.--The Secretary shall 
determine the manner in which and the extent to which the provisions of 
this section apply to Indian tribes and tribal organizations.
    ``(g) Payment Rate.--In this section, the term `payment rate' means 
the rate of reimbursement to providers for subsidized child care.''.

SEC. 3012. PAYMENT RATES.

    Section 658E(c)(4) of the Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858c(c)(4)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C);
            (2) in subparagraph (A), by striking ``to comparable child 
        care services'' and inserting ``to child care services that are 
        comparable (in terms of quality and types of services provided) 
        to child care services''; and
            (3) by inserting after subparagraph (A) the following:
                    ``(B) Payment rates.--
                            ``(i) Surveys.--In order to provide the 
                        certification described in subparagraph (A), 
                        the State shall conduct market rate surveys 
                        (that reflect variations in the cost of child 
                        care services by locality) not less often than 
                        at 2-year intervals, and use the results of 
                        such surveys to implement payment rates 
                        described in subparagraph (A) that ensure equal 
                        access to comparable services as required by 
                        subparagraph (A).
                            ``(ii) Cost of living adjustments.--The 
                        State shall adjust the payment rates at 
                        intervals between such surveys to reflect 
                        increases in the cost of living, in such manner 
                        as the Secretary may specify.
                            ``(iii) Rates for different ages and types 
                        of care.--The State shall ensure that the 
                        payment rates reflect variations in the cost of 
                        providing child care services for children of 
                        different ages and providing different types of 
                        care.''.

            CHAPTER 2--IMPROVEMENTS IN ACCESS TO CHILD CARE

SEC. 3111. 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. 3112. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subchapter (other than section 658H)--
            ``(1) $3,500,000,000 for fiscal year 2004;
            ``(2) $4,400,000,000 for fiscal year 2005;
            ``(3) $5,300,000,000 for fiscal year 2006;
            ``(4) $6,200,000,000 for fiscal year 2007;
            ``(5) $7,550,000,000 for fiscal year 2008;
            ``(6) $8,900,000,000 for fiscal year 2009;
            ``(7) $10,700,000,000 for fiscal year 2010;
            ``(8) $12,950,000,000 for fiscal year 2011;
            ``(9) $16,100,000,000 for fiscal year 2012; and
            ``(10) $20,159,000,000 for fiscal year 2013.
    ``(b) Authorization for Payment Rates.--There are authorized to be 
appropriated to carry out section 658H $500,000,000 for fiscal year 
2004 and such sums as may be necessary for each of fiscal years 2005 
through 2013.''.
    (b) Social Security Act.--Section 418(a)(3) of the Social Security 
Act (42 U.S.C. 618(a)(3)) is amended by striking subparagraphs (A) 
through (F) and inserting the following:
                    ``(A) $3,817,000,000 for fiscal year 2004;
                    ``(B) $4,917,000,000 for fiscal year 2005;
                    ``(C) $6,017,000,000 for fiscal year 2006;
                    ``(D) $7,117,000,000 for fiscal year 2007;
                    ``(E) $8,767,000,000 for fiscal year 2008;
                    ``(F) $10,417,000,000 for fiscal year 2009;
                    ``(G) $12,617,000,000 for fiscal year 2010;
                    ``(H) $15,367,000,000 for fiscal year 2011;
                    ``(I) $19,217,000,000 for fiscal year 2012; and
                    ``(J) $24,178,000,000 for fiscal year 2013.''.

SEC. 3113. 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), 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 (including 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.''; and
                    (C) 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) minimizing requests for 
                        documentation, and utilizing documents already 
                        on file;
                            ``(iii) providing applications at multiple 
                        sites;
                            ``(iv) offering nonconventional hours of 
                        operation at eligibility offices and providing 
                        toll-free telephone lines, including during 
                        evening and weekend hours, to handle 
                        eligibility issues;
                            ``(v) providing expedited procedures for 
                        changing child care providers;
                            ``(vi) 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; and
                            ``(vii) 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.
                    ``(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 
                        unduly disrupting the parent's employment, 
                        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.--
                                    ``(I) In general.--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, 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.
                                    ``(II) Period before termination.--
                                At the option of the State, demonstrate 
                                that 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) 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.
                    ``(L) No supplanting of prior spending.--
                            ``(i) Report.--Report the amount of Federal 
                        funds (other than funds made available under 
                        this subchapter or section 418 of the Social 
                        Security Act (42 U.S.C. 618)), State funds, and 
                        local funds (to the extent such local funds 
                        were counted toward State matching or 
                        maintenance of effort obligations under this 
                        subchapter or that section 418), 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 or that section 418 will be 
                        used to supplement and not supplant the Federal 
                        funds (other than funds made available under 
                        this subchapter or that section 418), State 
                        funds, and local funds (to the extent such 
                        local funds were counted toward State matching 
                        or maintenance of effort obligations under this 
                        subchapter or that section 418), 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.''.

SEC. 3114. 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) 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.''.
    (c) 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. 3115. DEFINITIONS.

    Section 658P(4)(C) of the Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858n(4)(C)) is amended--
            (1) in clause (i), by striking ``or'' at the end;
            (2) in clause (ii), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
                            ``(iii) is a foster child.''.

               Subtitle C--Child Care Quality Improvement

 CHAPTER 1--FOCUS ON COMMITTED AND UNDERPAID STAFF FOR CHILDREN'S SAKE

SEC. 3201. SHORT TITLE.

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

SEC. 3202. 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.
    (b) Purposes.--The purposes of this chapter are--
            (1) to establish the Child Care Provider Development and 
        Retention Grant Program and the Child Care Provider Scholarship 
        Program; and
            (2) to help children receive the high quality child care 
        and early education the children need for positive cognitive 
        and social development, by rewarding and promoting the 
        retention of committed, qualified child care providers and by 
        providing financial assistance to improve the educational 
        qualifications of child care providers.

SEC. 3203. DEFINITIONS.

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

SEC. 3204. FUNDS FOR CHILD CARE PROVIDER DEVELOPMENT AND RETENTION 
              GRANTS AND FOR CHILD CARE PROVIDER SCHOLARSHIPS.

    (a) In General.--The Secretary may allot and distribute funds 
appropriated to carry out this chapter to eligible States and Indian 
tribes and tribal organizations to pay for the Federal share of the 
cost of making grants under sections 3207 and 3208 to eligible child 
care providers.
    (b) Allotments.--The funds shall be allotted and distributed by the 
Secretary in accordance with section 3205, 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 chapter.

SEC. 3205. ALLOTMENTS TO STATES.

    (a) Amounts Reserved.--
            (1) Territories and possessions.--The Secretary shall 
        reserve not more than \1/2\ of 1 percent of the funds 
        appropriated to carry out this chapter for any fiscal year for 
        distribution to Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands, to be allotted in accordance with 
        their respective needs, to plan and carry out programs and 
        activities to encourage child care providers to improve their 
        qualifications and to retain qualified child care providers in 
        the child care field.
            (2) Indian tribes and tribal organizations.--The Secretary 
        shall reserve not more than 3 percent of the funds appropriated 
        to carry out this chapter for any fiscal year for payments to 
        Indian tribes and tribal organizations with applications 
        approved under subsection (c), to plan and carry out programs 
        and activities to encourage child care providers to improve 
        their qualifications and to retain qualified child care 
        providers in the child care field.
    (b) Allotments to Remaining States.--
            (1) General authority.--From the funds appropriated to 
        carry out this chapter for any fiscal year and remaining after 
        the reservations made under subsection (a), the Secretary shall 
        allot to each State (excluding Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands) an amount equal 
        to the sum of--
                    (A) an amount that bears the same ratio to 50 
                percent of such remainder as the product of the young 
                child factor of the State and the allotment percentage 
                of the State bears to the sum of the corresponding 
                products for all States; and
                    (B) an amount that bears the same ratio to 50 
                percent of such remainder as the product of the school 
                lunch factor of the State and the allotment percentage 
                of the State bears to the sum of the corresponding 
                products for all States.
            (2) Young child factor.--In this subsection, the term 
        ``young child factor'' means the ratio of the number of 
        children under 5 years of age in the State to the number of 
        such children in all the States, as determined according to the 
        most recent annual estimates of population in the States, as 
        provided by the Bureau of the Census.
            (3) School lunch factor.--In this subsection, the term 
        ``school lunch factor'' means the ratio of the number of 
        children who are receiving free or reduced price lunches under 
        the school lunch program established under the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1751 et seq.) in 
        the State to the number of such children in all the States, as 
        determined annually by the Department of Agriculture.
            (4) Allotment percentage.--
                    (A) In general.--Except as provided in subparagraph 
                (B), for purposes of this subsection, the allotment 
                percentage for a State shall be determined by dividing 
                the per capita income of all individuals in the United 
                States, by the per capita income of all individuals in 
                the State.
                    (B) Limitations.--For purposes of this subsection, 
                if an allotment percentage determined under 
                subparagraph (A)--
                            (i) is more than 1.2 percent, the allotment 
                        percentage of that State shall be considered to 
                        be 1.2 percent; and
                            (ii) is less than 0.8 percent, the 
                        allotment percentage of the State shall be 
                        considered to be 0.8 percent.
                    (C) Per capita income.--For purposes of 
                subparagraph (A), per capita income shall be--
                            (i) determined at 2-year intervals;
                            (ii) applied for the 2-year period 
                        beginning on October 1 of the first fiscal year 
                        beginning after the date such determination is 
                        made; and
                            (iii) equal to the average of the annual 
                        per capita incomes for the most recent period 
                        of 3 consecutive years for which satisfactory 
                        data are available from the Department of 
Commerce at the time such determination is made.
    (c) Payments to Indian Tribes and Tribal Organizations.--
            (1) Reservation of funds.--From amounts reserved under 
        subsection (a)(2), the Secretary may make grants to or enter 
        into contracts with Indian tribes and tribal organizations that 
        submit applications under this subsection, to plan and carry 
        out programs and activities to encourage child care providers 
        to improve their qualifications and to retain qualified child 
        care providers in the child care field.
            (2) Applications and requirements.--To be eligible to 
        receive a grant or contract under this subsection, an Indian 
        tribe or tribal organization shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may require. The application shall 
        provide that the applicant--
                    (A) will coordinate the programs and activities 
                involved, to the maximum extent practicable, with the 
                lead agency in each State in which the applicant will 
                carry out such programs and activities; and
                    (B) will make such reports on, and conduct such 
                audits of the funds made available through the grant or 
                contract for, programs and activities under this 
                chapter as the Secretary may require.
    (d) Data and Information.--The Secretary shall obtain from each 
appropriate Federal agency, the most recent data and information 
necessary to determine the allotments provided for in subsection (b).
    (e) Reallotments.--
            (1) In general.--Any portion of the allotment under 
        subsection (b) to a State for a fiscal year that the Secretary 
        determines will not be distributed to the State for such fiscal 
        year shall be reallotted by the Secretary to other States in 
        proportion to the original allotments made under such 
        subsection to such States for such fiscal year.
            (2) Limitations.--
                    (A) Reduction.--The amount of any reallotment to 
                which a State is entitled under this subsection shall 
                be reduced to the extent that such amount exceeds the 
                amount that the Secretary estimates will be distributed 
                to the State to make grants under this chapter.
                    (B) Reallotments.--The amount of such reduction 
                shall be reallotted to States for which no reduction in 
                an allotment, or in a reallotment, is required by this 
                subsection, in proportion to the original allotments 
                made under subsection (b) to such States for such 
                fiscal year.
            (3) Amounts reallotted.--For purposes of this chapter 
        (other than this subsection and subsection (b)), any amount 
        reallotted to a State under this subsection shall be considered 
        to be part of the allotment made under subsection (b) to the 
        State.
    (f) Cost-Sharing.--
            (1) Federal share.--The Federal share of the cost of 
making grants under sections 3207 and 3208, with funds allotted under 
this section and distributed by the Secretary to a State, shall be--
                    (A) not more than 90 percent of the cost of each 
                grant made under such sections, in the 1st fiscal year 
                for which the State receives such funds;
                    (B) not more than 85 percent of the cost of each 
                grant made under such sections, in the 2d fiscal year 
                for which the State receives such funds;
                    (C) not more than 80 percent of the cost of each 
                grant made under such sections, in the 3d fiscal year 
                for which the State receives such funds; and
                    (D) not more than 75 percent of the cost of each 
                grant made under such sections, in any subsequent 
                fiscal year for which the State receives such funds.
            (2) State share.--The non-Federal share of the cost of 
        making such grants shall be paid by the State in cash or in the 
        form of an in-kind contribution, fairly evaluated by the 
        Secretary.
    (g) Availability of Allotted Funds Distributed to States.--Of the 
funds allotted under this section and distributed by the Secretary to a 
State for a fiscal year--
            (1) not less than 67.5 percent shall be available to the 
        State for grants under section 3207;
            (2) not less than 22.5 percent shall be available to the 
        State for grants under section 3208; and
            (3) not more than 10 percent shall be available to pay 
        administrative costs incurred by the State to carry out this 
        chapter.

SEC. 3206. APPLICATION AND PLAN.

    (a) Application.--To be eligible to receive a distribution of funds 
allotted under section 3205, a State shall submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require by rule and shall include in 
such application a State plan that satisfies the requirements of 
subsection (b).
    (b) Requirements of Plan.--
            (1) Lead agency.--The State plan shall identify the lead 
        agency to make grants under this chapter for the State.
            (2) Recruitment and retention of child care providers.--The 
        State plan shall describe how the lead agency will encourage 
        both the recruitment of eligible child care providers who are 
        new to the child care field and the retention of eligible child 
        care providers who have a demonstrated commitment to the child 
        care field.
            (3) Notification of grant availability.--The State plan 
        shall describe how the lead agency will identify all eligible 
        child care providers in the State and notify the providers of 
        the availability of grants under this chapter.
            (4) Distribution of grants.--The State plan shall describe 
        how the lead agency will make grants under sections 3207 and 
        3208 to child care providers in selected geographical areas in 
        the State in compliance with the following requirements:
                    (A) Selection of geographical areas.--For the 
                purpose of making such grants for a fiscal year, the 
                State shall--
                            (i) select a variety of geographical areas, 
                        determined by the State, that, collectively--
                                    (I) include urban areas, suburban 
                                areas, and rural areas; and
                                    (II) are areas whose residents have 
                                diverse income levels; and
                            (ii) give special consideration to 
                        geographical areas selected under this 
                        subparagraph for the preceding fiscal year.
                    (B) Selection of child care providers to receive 
                grants.--In making grants under section 3207, the State 
                may make grants only to eligible child care providers 
                in geographical areas selected under subparagraph (A), 
                but--
                            (i) may give special consideration in such 
                        areas to eligible child care providers who have 
                        attained a higher relevant educational 
                        credential, who provide a specific kind of 
                        child care services, who provide child care 
                        services to populations who meet specific 
                        economic characteristics, or who meet such 
                        other criteria as the State may establish; and
                            (ii) shall give special consideration to 
                        eligible child care providers who received a 
                        grant under such section in the preceding 
                        fiscal year.
                    (C) Limitation.--The State shall describe how the 
                State will ensure that grants made under section 3207 
                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 3207--
                            (i) include in the report required by 
                        section 3209, 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 3207 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 3207.
            (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 
        3207 in accordance with the following requirements:
                    (A) Sufficient amounts.--The State shall 
                demonstrate that the amounts of individual grants to be 
                made under section 3207 will be sufficient--
                            (i) to encourage child care providers to 
                        improve their qualifications; and
                            (ii) to retain qualified child care 
                        providers in the child care field.
                    (B) Amounts to credentialed providers.--Such grants 
                made to child care providers who have a child 
                development associate credential and who are employed 
                full-time to provide child care services shall be in an 
                amount that is not less than $1,000 per year.
                    (C) Amounts to providers with higher levels of 
                education.--The State shall make such grants in amounts 
                greater than $1,000 per year to child care providers 
                who have higher levels of education than the education 
                required for a credential such as a child development 
                associate credential, according to the following 
                requirements:
                            (i) Providers with baccalaureate degrees in 
                        relevant fields.--A child care provider who has 
                        a baccalaureate degree in the area of child 
                        development or early child education shall 
                        receive a grant under section 3207 in an amount 
                        that is not less than twice the amount of 
the grant that is made under section 3207 to a child care provider who 
has an associate of the arts degree in the area of child development or 
early child education.
                            (ii) Providers with associate degrees.--A 
                        child care provider who has an associate of the 
                        arts degree in the area of child development or 
                        early child education shall receive a grant 
                        under section 3207 in an amount that is not 
                        less than 150 percent of the amount of the 
                        grant that is made under section 3207 to a 
                        child care provider who has a child development 
                        associate credential and is employed full-time 
                        to provide child care services.
                            (iii) Other providers with baccalaureate 
                        degrees.--
                                    (I) In general.--Except as provided 
                                in subclause (II), a child care 
                                provider who has a baccalaureate degree 
                                in a field other than child development 
                                or early child education shall receive 
                                a grant under section 3207 in an amount 
                                equal to the amount of the grant that 
                                is made under section 3207 to a child 
                                care provider who has an associate of 
                                the arts degree in the area of child 
                                development or early child education.
                                    (II) Exception.--If a child care 
                                provider who has such a baccalaureate 
                                degree obtains additional educational 
                                training in the area of child 
                                development or early child education, 
                                as specified by the State, such 
                                provider shall receive a grant under 
                                section 3207 in an amount equal to the 
                                amount of the grant that is made under 
                                section 3207 to a child care provider 
                                who has a baccalaureate degree 
                                specified in clause (i).
                    (D) Amounts to full-time providers.--The State 
                shall make a grant under section 3207 to a child care 
                provider who works full-time in a greater amount than 
                the amount of the grant that is made under section 3207 
                to a child care provider who works part-time, based on 
                the State definitions of full-time and part-time work.
                    (E) Amounts to experienced providers.--The State 
                shall make grants under section 3207 in progressively 
                larger amounts to child care providers to reflect the 
                number of years worked as child care providers.
            (6) Distribution of child care provider scholarships.--The 
        State plan shall describe how the lead agency will make grants 
        for scholarships in compliance with section 3208 and shall 
        specify the types of educational and training programs for 
        which the scholarship grants made under such section may be 
        used, including only programs that--
                    (A) are administered by institutions of higher 
                education that are eligible to participate in student 
                financial assistance programs under title IV of the 
                Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); 
                and
                    (B) lead to a State or nationally recognized 
                credential in the area of child development or early 
                child education, an associate of the arts degree in the 
                area of child development or early child education, or 
                a baccalaureate degree in the area of child development 
                or early child education.
            (7) Employer contribution.--The State plan shall describe 
        how the lead agency will encourage employers of child care 
        providers to contribute to the attainment of education goals by 
        child care providers who receive grants under section 3208.
            (8) Supplementation.--The State plan shall provide 
        assurances that amounts received by the State to carry out 
        sections 3207 and 3208 will be used only to supplement, and not 
        to supplant, Federal, State, and local funds otherwise 
        available to support existing services and activities (as of 
        the date the amounts are used) that encourage child care 
        providers to improve their qualifications and that promote the 
        retention of qualified child care providers in the child care 
        field.

SEC. 3207. CHILD CARE PROVIDER DEVELOPMENT AND RETENTION GRANT PROGRAM.

    (a) In General.--A State that receives funds allotted under section 
3205 and made available to carry out this section shall expend such 
funds to make grants to eligible child care providers in accordance 
with this section, to improve the qualifications and promote the 
retention of qualified child care providers.
    (b) Eligibility To Receive Grants.--To be eligible to receive a 
grant under this section, a child care provider shall--
            (1) have a child development associate credential or 
        equivalent, an associate of the arts degree in the area of 
        child development or early child education, a baccalaureate 
        degree in the area of child development or early child 
        education, or a baccalaureate degree in an unrelated field; and
            (2) be employed as a child care provider for not less than 
        1 calendar year, or (if the provider is employed on the date of 
        the eligibility determination in a child care program that 
        operates for less than a full calendar year) the program 
        equivalent of 1 calendar year, ending on the date of the 
        application for such grant, except that not more than 3 months 
        of education related to child development or to early child 
        education obtained during the corresponding calendar year may 
        be treated as employment that satisfies the requirements of 
        this paragraph.
    (c) Preservation of Eligibility.--A State shall not take into 
consideration whether a child care provider is receiving, may receive, 
or may be eligible to receive any funds under section 3208 for purposes 
of selecting eligible child care providers to receive grants under this 
section.

SEC. 3208. CHILD CARE PROVIDER SCHOLARSHIP PROGRAM.

    (a) In General.--A State that receives funds allotted under section 
3205 and made available to carry out this section shall expend such 
funds to make scholarship grants to eligible child care providers in 
accordance with this section, to improve their educational 
qualifications to provide child care services.
    (b) Eligibility Requirement for Scholarship Grants.--To be eligible 
to receive a scholarship grant under this section, a child care 
provider shall be employed as a child care provider for not less than 1 
calendar year, or (if the provider is employed on the date of the 
eligibility determination in a child care program that operates for 
less than a full calendar year) the program equivalent of 1 calendar 
year, ending on the date of the application for such grant.
    (c) Selection of Grantees.--For purposes of selecting eligible 
child care providers to receive scholarship grants under this section 
and determining the amounts of such grants, a State shall not--
            (1) take into consideration whether a child care provider 
        is receiving, may receive, or may be eligible to receive any 
        funds under any other provision of this chapter, 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 chapter, 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. 3209. ANNUAL REPORT.

    A State that receives funds appropriated to carry out this chapter 
for a fiscal year shall submit to the Secretary, not later than 90 days 
after the end of such fiscal year, a report--
            (1) specifying the uses for which the State expended such 
        funds, and the aggregate amount of funds (including State 
        funds) expended for each of such uses;
            (2) containing available data relating to grants made with 
        such funds, including--
                    (A) the number of child care providers who received 
                such grants;
                    (B) the amounts of such grants;
                    (C) any other information that describes or 
                evaluates the effectiveness of this chapter;
                    (D) the particular geographical areas selected 
                under section 3206 for the purpose of making such 
                grants;
                    (E) with respect to grants made under section 
                3207--
                            (i) the number of years grant recipients 
                        have been employed as child care providers;
                            (ii) the level of training and education of 
                        grant recipients;
                            (iii) to the extent practicable and 
                        available to the State, detailed information 
                        regarding the salaries and other compensation 
                        received by grant recipients to provide child 
                        care services before, during, and after 
                        receiving such grant;
                            (iv) the number of children who received 
                        child care services provided by grant 
                        recipients;
                            (v) information on family demographics of 
                        such children;
                            (vi) the types of settings described in 
                        subparagraphs (A), (B), and (C) of section 
                        3203(a)(1) in which grant recipients are 
                        employed; and
                            (vii) the ages of the children who received 
                        child care services provided by grant 
                        recipients;
                    (F) with respect to grants made under section 
                3208--
                            (i) the number of years grant recipients 
                        have been employed as child care providers;
                            (ii) the level of training and education of 
                        grant recipients;
                            (iii) to the extent practicable and 
                        available to the State, detailed information 
                        regarding the salaries and other compensation 
                        received by grant recipients to provide child 
                        care services before, during, and after 
                        receiving such grant;
                            (iv) the types of settings described in 
                        subparagraphs (A), (B), and (C) of section 
                        3203(a)(1) in which grant recipients are 
                        employed;
                            (v) the ages of the children who received 
                        child care services provided by grant 
                        recipients;
                            (vi) the number of course credits or 
                        credentials obtained by grant recipients; and
                            (vii) the amount of time taken for 
                        completion of the educational and training 
                        programs for which such grants were made; and
                    (G) such other information as the Secretary may 
                require by rule.

SEC. 3210. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $5,000,000,000 in the 
aggregate for fiscal years 2004 through 2008 to carry out this chapter.

CHAPTER 2--STRENGTHENING QUALITY THROUGH THE CHILD CARE AND DEVELOPMENT 
                              BLOCK GRANT

SEC. 3231. STATE PLAN.

    Section 658E(c)(2) of the Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858c(c)(2)), as amended by section 3113, is 
further amended by adding at the end the following:
                    ``(M) Establishment of training requirements.--
                            ``(i) Training requirements.--
                                    ``(I) In general.--Certify that 
                                there are training requirements in 
                                effect within the State, under State or 
                                local law, that are designed to promote 
                                the social, emotional, physical, and 
                                cognitive development of children and 
                                that are applicable to all child care 
                                providers that provide services for 
                                which assistance is made available 
                                under this subchapter.
                                    ``(II) Preservice training.--The 
                                requirements shall include provisions 
                                requiring preservice training in 
                                childhood development, subject to 
                                clause (ii).
                                    ``(III) Age-appropriate training.--
                                The requirements shall ensure that the 
                                training provided to a child care 
                                provider under the requirements shall 
                                be related to the ages of the children 
                                for whom the provider provides care.
                            ``(ii) Preservice training.--
                                    ``(I) States not requiring 
                                preservice training.--For a State that 
                                does not, as of the date of enactment 
                                of the Leave No Child Behind Act of 
                                2003 require preservice training in 
                                child development that meets the 
                                requirements specified in clause (i)--
                                            ``(aa) the State shall 
                                        submit, as part of the State 
                                        plan, information on how the 
                                        State will ensure that State or 
                                        local law shall require such 
                                        training not later than 1 year 
                                        after the date of enactment of 
                                        the Leave No Child Behind Act 
                                        of 2003; and
                                            ``(bb) the State may elect, 
                                        in the case of a child care 
                                        provider who is not required to 
                                        be registered, licensed, or 
                                        regulated, but who must comply 
                                        with subparagraph (F), to 
                                        consider inservice training in 
                                        child development that is 
                                        completed not later than 60 
                                        days after the first day on 
                                        which a child is enrolled with 
                                        such provider, to be preservice 
                                        training that meets the 
                                        requirements of clause (i).
                                    ``(II) Construction.--Nothing in 
                                subclause (I) shall be considered to 
                                preempt or supersede any State or local 
                                law that requires child care providers 
                                to have preservice training in child 
                                development.
                    ``(N) Insuring the safety of children.--Certify 
                that there are requirements in effect within the State, 
                under State or local law, that require that evaluators 
                from an appropriate State or local agency make at least 
                1 unannounced visit annually to each child care 
                provider in the State that provides services for which 
                assistance is made available under this subchapter.
                    ``(O) 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.
                    ``(P) 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 658I(c)(1), 
                        including the demonstrations described in such 
                        section, to the Secretary not later than 6 
                        months after 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.''.

SEC. 3232. CHILD CARE QUALITY IMPROVEMENTS.

    Section 658G of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858e), as amended by section 3002, is further amended 
by striking subsection (a) and inserting the following:
    ``(a) Activities To Improve the Quality of Child Care.--
            ``(1) In general.--A State that receives funds to carry out 
        this subchapter (other than section 658H) shall reserve and use 
        not less than 12 percent of the funds for activities designed 
        to improve the quality of child care services, consisting of--
                    ``(A) the recruitment, education, training, and 
                retention of high quality child care providers, 
                including family child care providers and child care 
                providers in rural areas, through compensation 
                enhancement programs that reward and support 
                participation in professional development and 
                education, including the attainment of credentials and 
                degrees;
                    ``(B) 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, or initiatives that provide 
                higher payment rates for, child care providers that 
                provide child care services for those children, 
                initiatives that provide (where appropriate) for 
                consultations with licensed professionals for the 
                providers, or initiatives that promote efforts to 
                assist the providers to which the requirements of the 
                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) apply 
                (if any) in complying with the requirements;
                    ``(C)(i) 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, preliteracy and oral language, 
                        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
                    ``(ii)(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;
                    ``(D) projects that improve the ability of State or 
                local government, as applicable, to monitor compliance 
                with, and to enforce, State and local registration, 
                licensing, and regulatory requirements applicable to 
                child care providers;
                    ``(E) community projects that--
                            ``(i) 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 registered, 
                                licensed, or regulated child care in 
                                the community;
                            ``(ii) 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;
                            ``(iii) provide financial incentives and 
                        other support for child care providers 
                        described in clause (ii) to achieve 
                        accreditation by a national organization; and
                            ``(iv) provide information to parents on 
                        the cost and quality of the various child care 
                        providers described in clause (ii);
            ``(F) activities to improve the quality of child care in 
        rural areas;
            ``(G) other activities that the State determines to be 
        appropriate to improve the quality of child care services, 
        including the provision of emergency child care; or
            ``(H) activities to support the system described in 
        paragraph (2).
            ``(2) Child care resource and referral system.--The State 
        shall use a portion of the funds reserved under paragraph (1) 
        to support a system of local child care resource and referral 
        organizations coordinated by a statewide lead child care 
        resource and referral organization. The local child care 
        resource and referral organizations shall--
                    ``(A) provide parents and child care providers with 
                information and support concerning child care options 
                in their communities;
                    ``(B) collect data on the supply of and demand for 
                child care in political subdivisions within the State;
                    ``(C) develop connections between businesses and 
                other organizations to develop public-private 
                partnerships for child care;
                    ``(D) promote 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;
                    ``(E) provide (or facilitate the provision of) 
                specialists in health, mental health, early literacy, 
                services for children with disabilities or other 
                special needs, and infant and toddler care to support 
                or supplement the services of child care providers in 
                their communities;
                    ``(F) hire disability specialists and provide 
                training and technical assistance to child care 
                providers, to effectively meet the needs of children 
                with disabilities or other special needs; or
                    ``(G) increase the supply and improve the quality 
                of child care in the State and in political 
                subdivisions in the State.''.

SEC. 3233. ADMINISTRATION AND ENFORCEMENT.

    Section 658I of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858g) is amended--
            (1) in subsection (a)(3), by inserting ``(directly, or 
        through grants, contracts, or cooperative agreements)'' after 
        ``provide''; and
            (2) 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 subparagraphs (A) and 
                        (B) of section 658G(a)(1) 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 subsections (a) 
                        and (b), 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)(P); 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)(P)(iii).
            ``(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.''.

          CHAPTER 3--CHILD CARE CENTERS IN FEDERAL FACILITIES

SEC. 3241. SHORT TITLE.

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

SEC. 3242. DEFINITIONS.

    In this chapter (except as otherwise provided in section 3245):
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
            (2) Child care accreditation entity.--The term ``child care 
        accreditation entity'' means a nonprofit private organization 
        or public agency that--
                    (A) is recognized by a State agency or by a 
                national organization that serves as a peer review 
                panel on the standards and procedures of public and 
                private child care or school accrediting bodies; and
                    (B) accredits a facility to provide child care on 
                the basis of--
                            (i) an accreditation or credentialing 
                        instrument based on peer-validated research;
                            (ii) compliance with applicable State or 
                        local licensing requirements, as appropriate, 
                        for the facility;
                            (iii) outside monitoring of the facility; 
                        and
                            (iv) criteria that provide assurances of--
                                    (I) use of developmentally 
                                appropriate health and safety standards 
                                at the facility;
                                    (II) use of developmentally 
                                appropriate educational activities, as 
                                an integral part of the child care 
                                program carried out at the facility; 
                                and
                                    (III) use of ongoing staff 
                                development or training activities for 
                                the staff of the facility, including 
                                related skills-based testing.
            (3) Entity sponsoring a child care facility.--The term 
        ``entity sponsoring a child care facility'' means a Federal 
        agency that operates, or an entity that enters into a contract 
        or licensing agreement with a Federal agency to operate, a 
        child care facility primarily for the use of Federal employees.
            (4) 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, the 
                Coast Guard, or the General Accounting Office; and
                    (B) includes the General Services Administration, 
                with respect to the administration of a facility 
                described in paragraph (5)(B).
            (5) 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.
            (6) Federal agency.--The term ``Federal agency'' means an 
        Executive agency, a legislative office, or a judicial office.
            (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 (5)(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 658P of the Child Care and Development Block 
        Grant Act of 1990 (42 U.S.C. 9858n).

SEC. 3243. PROVIDING QUALITY CHILD CARE IN FEDERAL FACILITIES.

    (a) Executive Facilities.--
            (1) State and local licensing requirements.--
                    (A) In general.--Any entity sponsoring a child care 
                facility in an executive facility shall--
                            (i) comply with child care standards 
                        described in paragraph (2) 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 facility.
                    (B) Compliance.--Not later than 6 months after the 
                date of enactment of this Act--
                            (i) the entity shall comply, or make 
                        substantial progress (as determined by the 
                        Administrator) toward complying, with 
                        subparagraph (A); and
                            (ii) any contract or licensing agreement 
                        used by an Executive agency for the provision 
                        of child care services in the child care 
                        facility shall include a condition that the 
                        child care be provided by an entity that 
                        complies with the standards described in 
                        subparagraph (A)(i) or obtains the licenses 
                        described in subparagraph (A)(ii).
            (2) Health, safety, and facility standards.--The 
        Administrator shall by regulation establish standards relating 
        to health, safety, facilities, facility design, and other 
        aspects of child care that the Administrator determines to be 
        appropriate for child care in executive facilities, and require 
        child care facilities, and entities sponsoring child care 
        facilities, in executive facilities to comply with the 
        standards. The standards shall include requirements that 
child care facilities be inspected for, and be free of, lead hazards.
            (3) Accreditation standards.--
                    (A) In general.--The Administrator shall issue 
                regulations requiring, to the maximum extent possible, 
                any entity sponsoring an eligible child care facility 
                (as defined by the Administrator) in an executive 
                facility to comply with standards of a child care 
                accreditation entity.
                    (B) Compliance.--The regulations shall require 
                that, not later than 3 years after the date of 
                enactment of this Act--
                            (i) the entity shall comply, or make 
                        substantial progress (as determined by the 
                        Administrator) toward complying, with the 
                        standards; and
                            (ii) any contract or licensing agreement 
                        used by an Executive agency for the provision 
                        of child care services in the child care 
                        facility shall include a condition that the 
                        child care be provided by an entity that 
                        complies with the standards.
            (4) Evaluation and compliance.--
                    (A) In general.--The Administrator shall evaluate 
                the compliance, with the requirements of paragraph (1) 
                and the regulations issued pursuant to paragraphs (2) 
                and (3), as appropriate, of child care facilities, and 
                entities sponsoring child care facilities, in executive 
                facilities. The Administrator may conduct the 
                evaluation of such a child care facility or entity 
                directly, or through an agreement with another Federal 
                agency or private entity, other than the Federal agency 
                for which the child care facility is providing 
                services. If the Administrator determines, on the basis 
                of such an evaluation, that the child care facility or 
                entity is not in compliance with the requirements, the 
                Administrator shall notify the Executive agency.
                    (B) Effect of noncompliance.--On receipt of the 
                notification of noncompliance issued by the 
                Administrator, the head of the Executive agency shall--
                            (i) if the entity operating the child care 
                        facility is the agency--
                                    (I) not later than 2 business days 
                                after the date of receipt of the 
                                notification, correct any deficiencies 
                                that are determined by the 
                                Administrator to be life threatening or 
                                to present a risk of serious bodily 
                                harm;
                                    (II) not later than 4 months after 
                                the date of receipt of the 
                                notification, develop and provide to 
                                the Administrator a plan to correct any 
                                other deficiencies in the operation of 
                                the facility and bring the facility and 
                                entity into compliance with the 
                                requirements;
                                    (III) provide the parents of the 
                                children receiving child care services 
                                at the child care facility and 
                                employees of the facility 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 facility for 5 
                                working days or until the deficiencies 
                                are corrected, whichever is later;
                                    (IV) bring the child care facility 
                                and entity into compliance with the 
                                requirements and certify to the 
                                Administrator that the facility and 
                                entity are in compliance, based on an 
                                onsite evaluation of the facility 
                                conducted by an individual with 
                                expertise in child care health and 
                                safety; and
                                    (V) in the event that deficiencies 
                                determined by the Administrator to be 
                                life threatening or to present a risk 
                                of serious bodily harm cannot be 
                                corrected within 2 business days after 
                                the date of receipt of the 
                                notification, close the child care 
                                facility, or the affected portion of 
                                the facility, until the deficiencies 
                                are corrected and notify the 
                                Administrator of the closure; and
                            (ii) if the entity operating the child care 
                        facility is a contractor or licensee of the 
                        Executive agency--
                                    (I) require the contractor or 
                                licensee, not later than 2 business 
                                days after the date of receipt of the 
                                notification, to correct any 
                                deficiencies that are determined by the 
                                Administrator to be life threatening or 
                                to present a risk of serious bodily 
                                harm;
                                    (II) require the contractor or 
                                licensee, not later than 4 months after 
                                the date of receipt of the 
                                notification, to develop and provide to 
                                the head of the agency a plan to 
                                correct any other deficiencies in the 
                                operation of the child care facility 
                                and bring the facility and entity into 
                                compliance with the requirements;
                                    (III) require the contractor or 
                                licensee to provide the parents of the 
                                children receiving child care services 
                                at the child care facility and 
                                employees of the facility 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 facility for 5 
                                working days or until the deficiencies 
                                are corrected, whichever is later;
                                    (IV) require the contractor or 
                                licensee to bring the child care 
                                facility and entity into compliance 
                                with the requirements and certify to 
                                the head of the agency that the 
                                facility and entity are in compliance, 
                                based on an onsite evaluation of the 
                                facility conducted by an independent 
                                entity with expertise in child care 
                                health and safety; and
                                    (V) in the event that deficiencies 
                                determined by the Administrator to be 
                                life threatening or to present a risk 
                                of serious bodily harm cannot be 
                                corrected within 2 business days after 
                                the date of receipt of the 
                                notification, close the child care 
                                facility, or the affected portion of 
                                the facility, until the deficiencies 
                                are corrected and notify the 
                                Administrator of the closure, which 
                                closure may be grounds for the 
                                immediate termination or suspension of 
                                the contract or license of the 
                                contractor or licensee.
                    (C) Cost reimbursement.--The Executive agency shall 
                reimburse the Administrator for the costs of carrying 
                out subparagraph (A) for child care facilities located 
                in an executive facility other than an executive 
                facility of the General Services Administration. If an 
                entity is sponsoring a child care facility for 2 or 
                more Executive agencies, the Administrator shall 
                allocate the reimbursement costs with respect to the 
                entity among the agencies in a fair and equitable 
                manner, based on the extent to which each agency is 
                eligible to place children in the facility.
            (5) Disclosure of prior violations to parents and facility 
        employees.--
                    (A) In general.--The Administrator shall issue 
                regulations that require that each entity sponsoring a 
                child care facility in an executive facility, upon 
                receipt by the child care facility or the entity (as 
                applicable) of a request by any individual who is--
                            (i) a parent of any child enrolled at the 
                        facility;
                            (ii) a parent of a child for whom an 
                        application has been submitted to enroll at the 
                        facility; or
                            (iii) an employee of the facility;
                shall provide to the individual the copies and 
                description described in subparagraph (B).
                    (B) Copies and description.--The entity shall 
                provide--
                            (i) copies of all notifications of 
                        deficiencies that have been provided in the 
                        past with respect to the facility under clause 
                        (i)(III) or (ii)(III), as applicable, of 
                        paragraph (4)(B); and
                            (ii) a description of the actions that were 
                        taken to correct the deficiencies.
    (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 facility obtains accreditation by 
        a child care accreditation entity, in accordance with the 
        accreditation standards of the entity.
            (2) Regulations.--
                    (A) In general.--If the corresponding child care 
                facility does not maintain accreditation status with a 
                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 
                facility, to ensure the safety and quality of care of 
                children placed in the facility. The regulations shall 
                be no less stringent in content and effect than the 
                requirements of subsection (a)(1) and the regulations 
                issued by the Administrator under paragraphs (2) and 
                (3) of subsection (a), except to the extent that 
                appropriate administrative officers make the 
                determination described in subparagraph (B).
                    (B) Modification more effective.--The determination 
                referred to in subparagraph (A) is a determination, for 
                good cause shown and stated together with the 
                regulations, that a modification of the regulations 
                would be more effective for the implementation of the 
                requirements and standards described in subsection (a) 
                for the corresponding child care facilities, 
and entities sponsoring the corresponding child care facilities, in 
legislative facilities.
            (3) Corresponding child care facility.--In this subsection, 
        the term ``corresponding child care facility'', 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 facility operated by, or under a contract or 
        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) State and local licensing requirements health, safety, 
        and facility standards, and accreditation standards.--The 
        Director of the Administrative Office of the United States 
        Courts shall issue regulations for child care facilities, and 
        entities sponsoring child care facilities, in judicial 
        facilities, which shall be no less stringent in content and 
        effect than the requirements of subsection (a)(1) and the 
        regulations issued by the Administrator under paragraphs (2) 
        and (3) of subsection (a), except to the extent that the 
        Director may determine, for good cause shown and stated 
        together with the regulations, that a modification of such 
        regulations would be more effective for the implementation of 
        the requirements and standards described in paragraphs (1), 
        (2), and (3) of subsection (a) for child care facilities, and 
        entities sponsoring child care facilities, in judicial 
        facilities.
            (2) 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 of, compliance of, and cost 
                reimbursement for child care facilities, and entities 
                sponsoring child care facilities, in judicial 
                facilities as the Administrator has under subsection 
                (a)(4) with respect to the evaluation of, compliance 
                of, and cost reimbursement for such centers and 
                entities sponsoring such centers, in executive 
                facilities.
                    (B) Head of a judicial office.--The head of a 
                judicial office shall have the same authorities and 
                duties with respect to the compliance of and cost 
                reimbursement for child care facilities, and entities 
                sponsoring child care facilities, in judicial 
                facilities as the head of an Executive agency has under 
                subsection (a)(4) with respect to the compliance of and 
                cost reimbursement for such centers and entities 
                sponsoring such centers, in executive facilities.
    (d) Application.--Notwithstanding any other provision of this 
section, if 8 or more child care facilities are sponsored in facilities 
owned or leased by an Executive agency, the Administrator shall 
delegate to the head of the agency the evaluation and compliance 
responsibilities assigned to the Administrator under subsection 
(a)(4)(A).
    (e) Technical Assistance, Studies, and Reviews.--The Administrator 
may provide technical assistance, and conduct and provide the results 
of studies and reviews, for Executive agencies, and entities sponsoring 
child care facilities in executive facilities, on a reimbursable basis, 
in order to assist the entities in complying with this section. The 
Chief Administrative Officer of the House of Representatives, the 
Librarian of Congress, the head of the designated Senate entity 
described in subsection (b), and the Director of the Administrative 
Office of the United States Courts, may provide technical assistance, 
and conduct and provide the results of studies and reviews, or request 
that the Administrator provide technical assistance, and conduct and 
provide the results of studies and reviews, for legislative offices and 
judicial offices, as appropriate, and entities operating child care 
facilities in legislative facilities or judicial facilities, as 
appropriate, on a reimbursable basis, in order to assist the entities 
in complying with this section.
    (f) Interagency Council.--
            (1) Composition.--The Administrator shall establish an 
        interagency council, comprised of--
                    (A) representatives of all Executive agencies 
                described in subsection (d) and other Executive 
                agencies at the election of the heads of the 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.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $900,000 for fiscal year 2004 
and such sums as may be necessary for each subsequent fiscal year.

SEC. 3244. 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 facilities 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;
            (2) information on the number of families not using child 
        care described in subsection (a) because of the cost of the 
        child care; and
            (3) 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. 3245. CHILD CARE SERVICES FOR FEDERAL EMPLOYEES.

    (a) In General.--In addition to services authorized to be provided 
by an agency pursuant to section 590 of title 40, United States Code, 
an Executive agency that provides, or proposes to provide, child care 
services for Federal employees may use agency funds to provide the 
child care services, in a facility that is owned or leased by an 
Executive agency, or through a contractor, for civilian employees of 
the agency.
    (b) Affordability.--Funds so used with respect to any such facility 
or contractor shall be applied to improve the affordability of child 
care for lower income federal employees using or seeking to use the 
child care services offered by the facility or contractor.
    (c) Regulations.--The Administrator, after consultation with the 
Director of the Office of Personnel Management, shall, within 180 days 
after the date of enactment of this Act, issue regulations necessary to 
carry out this section.
    (d) Definition.--For purposes of this section, the term ``Executive 
agency'' has the meaning given the term by section 105 of title 5, 
United States Code, but does not include the General Accounting Office.

SEC. 3246. MISCELLANEOUS PROVISIONS RELATING TO CHILD CARE PROVIDED BY 
              FEDERAL AGENCIES.

    (a) Guidance, Assistance, and Oversight.--Section 590(a) of title 
40, United States Code, is amended--
            (1) by inserting ``federal'' before ``child care centers''; 
        and
            (2) by striking ``federal workers'' and inserting ``federal 
        employees''.
    (b) Availability of Federal Child Care Centers for Onsite 
Contractors; Percentage Goal.--Section 590(b) of title 40, United 
States Code, is amended--
            (1) in paragraph (1)(B), by striking ``officer or agency of 
        the Federal Government'' and inserting ``federal agency or 
        officer of a federal agency''; and
            (2) in paragraph (2)(C), by striking clauses (i) and (ii) 
        and inserting the following:
                            ``(i) the space will be used to provide 
                        child care and related services to--
                                    ``(I) children of federal employees 
                                or onsite federal contractors; or
                                    ``(II) dependent children who live 
                                with federal employees or onsite 
                                federal contractors; and
                            ``(ii) the child care provider will give 
                        priority for available child care and related 
                        services in the space to federal employees and 
                        onsite federal contractors.''.
    (c) Payment of Costs of Training Programs.--Section 590(d) of title 
40, United States Code, is amended to read as follows:
    ``(d) Payment of Other Costs.--
            ``(1) Payment of accreditation fees; training, conference, 
        and meeting expenses.--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 (b)(2)(C)(i), 
        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 subsection 
        shall not exceed the rate specified in regulations prescribed 
        under section 5707 of title 5, United States Code.
            ``(2) Agreements.--
                    ``(A) Payment of general operating expenses through 
                agreements with private entities.--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 will assist 
                in defraying the general operating expenses of the 
                child care providers including providing salaries and 
                tuition assistance programs at the facility.
                    ``(B) Provisions of cost-effective services through 
                agreements.--
                            ``(i) In general.--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 (b), 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.
                            ``(ii) Determination.--Before entering into 
                        such an agreement, the head of the federal 
                        agency shall determine that providing child 
                        care services through the agreement is more 
                        cost-effective than establishment of a federal 
                        child care center.
                            ``(iii) Payment of fees or reimbursement by 
                        a federal agency.--The federal agency may pay 
                        the fees or provide the reimbursement described 
                        in paragraph (1) if, in exchange for the 
                        services, the facility reserves child care 
                        spaces for children referred to in subsection 
                        (b)(2)(C)(i), 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.
                    ``(C) Application.--This paragraph does not apply 
                to residential child care programs.''.
    (d) Enrollment Goals and Partnerships or Contracts With 
Nongovernmental Entities.--Section 590 of title 40, United States Code, 
is amended--
            (1) by striking subsection (e);
            (2) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively;
            (3) by inserting after subsection (d) the following:
    ``(e) Enrollment Goals and Partnerships or Contracts With 
Nongovernmental Entities.--
            ``(1) Enrollment goals.--
                    ``(A) Government-wide standard.--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) Individual center goal.--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) Business plan to achieve goal.--
                            ``(i) Plan.--If enrollment at such 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) Criteria.--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 governmentwide 
                                enrollment percentage goal described in 
                                subparagraph (A).
            ``(2) Partnerships or contracts with nongovernmental 
        entities.--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 (b)(2)(C)(ii) and 
        paragraph (1) of this subsection.''.
    (e) Pilot Projects.--Section 590 of title 40, United States Code, 
as amended by subsection (d), is further amended by inserting after 
subsection (e) the following:
    ``(f) Pilot Projects.--
            ``(1) In general.--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 such a pilot project for an additional 2-year period. 
        Before any such 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 center. Costs of any such 
        pilot project shall be paid solely by the agency conducting the 
        pilot project.
            ``(2) Information clearinghouse.--The Administrator of 
        General Services shall serve as an information clearinghouse 
        for pilot projects initiated by federal agencies under this 
        subsection to disseminate information concerning the pilot 
        projects to the other federal agencies.
            ``(3) Evaluations.--Within 6 months after completion of the 
        initial 2-year pilot project period described in paragraph (1), 
        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 590 of title 40, United States Code, as 
amended by subsection (e), is further amended by adding at the end the 
following:
    ``(i) Definitions.--In subsections (a) through (f):
            ``(1) Federal agency.--The term `federal agency' has the 
        meaning given the term `Executive agency' in section 3242 of 
        the Federal Employees Child Care Act.
            ``(2) Federal buildings; federal space.--The terms `federal 
        building' and `federal space' have the meanings given the term 
        `executive facility' in such section 3242.
            ``(3) Federal child care center.--The term `federal child 
        care center' means a child care center in an executive 
        facility, as defined in such section 3242.
            ``(4) Federal contractor; federal employee.--The terms 
        `federal contractor' and `federal employee' mean a contractor 
        and an employee, respectively, of an Executive agency, as 
        defined in such section 3242.''.

                       CHAPTER 4--EARLY LEARNING

SEC. 3251. SHORT TITLE; FINDINGS.

    (a) Short Title.--This chapter may be cited as the ``Early Learning 
Linkages Act of 2003''.
    (b) Findings.--Congress finds that--
            (1) medical research demonstrates that adequate stimulation 
        of a young child's brain between birth and age 5 is critical to 
        the physical development of the young child's brain;
            (2) parents are the most significant and effective teachers 
        of their children, and they alone are responsible for choosing 
        the best early learning opportunities for their child;
            (3) parent education and parent involvement are critical to 
        the success of any early learning program or activity;
            (4) the more intensively parents are involved in their 
        child's early learning, the greater the cognitive and 
        noncognitive benefits to their children;
            (5) many parents have difficulty finding the information 
        and support the parents seek to help their children grow to 
        their full potential;
            (6) each day approximately 13,000,000 young children, 
        including 6,000,000 infants or toddlers, spend some or all of 
        their day being cared for by someone other than their parents;
            (7) quality early learning programs, including those 
        designed to promote effective parenting, can increase the 
        literacy rate, the secondary school graduation rate, the 
        employment rate, and the college enrollment rate for children 
        who have participated in voluntary early learning programs and 
        activities;
            (8) early childhood interventions can yield substantial 
        advantages to participants in terms of emotional and cognitive 
        development, education, economic well-being, and health, with 
        the latter two advantages applying to the children's families 
        as well;
            (9) participation in quality early learning programs, 
        including those designed to promote effective parenting, can 
        decrease the future incidence of teenage pregnancy, welfare 
        dependency, at-risk behaviors, and juvenile delinquency for 
        children;
            (10) several cost-benefit analysis studies indicate that 
        for each $1 invested in quality early learning programs, the 
        Federal Government can save over $5 by reducing the number of 
        children and families who participate in Federal Government 
        programs like special education and welfare;
            (11) for children placed in the care of others during the 
        workday, the low salaries paid to the child care staff, the 
        lack of career progression for the staff, and the lack of child 
        development specialists involved in early learning and child 
        care programs, make it difficult to attract and retain the 
        quality of staff necessary for a positive early learning 
        experience;
            (12) Federal Government support for early learning has 
        primarily focused on out-of-home care programs like those 
        established under the Head Start Act, the Child Care and 
        Development Block Grant of 1990, and part C of the Individuals 
        with Disabilities Education Act, and these programs--
                    (A) serve far fewer than half of all eligible 
                children;
                    (B) are not primarily designed to provide support 
                for parents who care for their young children in the 
                home; and
                    (C) lack a means of coordinating early learning 
                opportunities in each community; and
            (13) by helping communities increase, expand, and better 
        coordinate early learning opportunities for children and their 
        families, the productivity and creativity of future generations 
        will be improved, and the Nation will be prepared for continued 
        leadership in the 21st century.

SEC. 3252. PURPOSES.

    The purposes of this chapter are--
            (1) to increase the availability of voluntary programs, 
        services, and activities that support early childhood 
        development, increase parent effectiveness, and promote the 
        learning and socioemotional readiness of young children so that 
        young children enter school ready to learn;
            (2) to remove barriers to the provision of an accessible 
        system of early childhood learning programs in communities 
        throughout the United States;
            (3) to increase the availability and affordability of 
        professional development activities and compensation for 
        caregivers and child care providers; and
            (4) to facilitate the development of community-based 
        systems of collaborative service delivery models characterized 
        by resource sharing, linkages between appropriate supports, and 
        local planning for services.

SEC. 3253. DEFINITIONS.

    In this chapter:
            (1) Caregiver.--The term ``caregiver'' means an individual 
        (including a relative, neighbor, or family friend) who 
        regularly or frequently provides care, with or without 
        compensation, for a child for whom the individual is not the 
        parent.
            (2) Child care provider.--The term ``child care provider'' 
        means a provider of non-residential child care services 
        (including center-based, family-based, or in-home child care 
        services) for compensation who or that is legally operating 
        under State law, and complies with applicable State and local 
        requirements for the provision of child care services.
            (3) Early learning.--The term ``early learning'', used with 
        respect to a program or activity, means learning designed to 
        facilitate the development of cognitive, language, motor, and 
        socioemotional skills for, and to promote learning readiness 
        in, young children.
            (4) Early learning program.--The term ``early learning 
        program'' means--
                    (A) a program of services or activities that helps 
                parents, caregivers, and child care providers 
                incorporate early learning into the daily lives of 
                young children; or
                    (B) a program that directly provides early learning 
                to young children.
            (5) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (6) Local council.--The term ``Local Council'' means a 
        Local Council established or designated under section 3261(a) 
        that serves one or more localities.
            (7) Locality.--The term ``locality'' means a city, county, 
        borough, township, or area served by another general purpose 
        unit of local government, an Indian tribe, a Regional 
        Corporation, or a Native Hawaiian entity.
            (8) Migratory children.--The term ``migratory children'' 
        has the meaning given such term in section 1309 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6399).
            (9) Parent.--The term ``parent'' means a biological parent, 
        an adoptive parent, a stepparent, a foster parent, or a legal 
        guardian of, or a person standing in loco parentis to, a child.
            (10) Poverty line.--The term ``poverty line'' means the 
        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.
            (11) Prekindergarten education program.--The term 
        ``prekindergarten education program'' means a program that--
                    (A) serves children ages 3, 4, and 5 years old and 
                that supports children's cognitive, social, emotional, 
                and physical development and helps prepare children for 
                the transition to kindergarten; and
                    (B) complies with the Head Start performance 
                standards as in effect under section 641A(a) of the 
                Head Start Act (42 U.S.C. 9836a(a)).
            (12) Regional corporation.--The term ``Regional 
        Corporation'' means an entity listed in section 419(4)(B) of 
        the Social Security Act (42 U.S.C. 619(4)(B)).
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (14) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, Guam, American Samoa, or the Commonwealth of the Northern 
        Mariana Islands.
            (15) Training.--The term ``training'' means instruction in 
        early learning that--
                    (A) is required for certification under State and 
                local laws, regulations, and policies;
                    (B) is required to receive a nationally or State 
                recognized credential or its equivalent;
                    (C) is received in a postsecondary education 
                program focused on early learning or early childhood 
                development in which the individual is enrolled; or
                    (D) is provided, certified, or sponsored by an 
                organization that is recognized for its expertise in 
                promoting early learning or early childhood 
                development.
            (16) Young child.--The term ``young child'' means any child 
        from birth to the age of mandatory school attendance in the 
        State where the child resides.

SEC. 3254. PROHIBITIONS.

    (a) Participation Not Required.--No person, including a parent, 
shall be required to participate in any program of early childhood 
education, early learning, parent education, or developmental screening 
pursuant to the provisions of this chapter.
    (b) Rights of Parents.--Nothing in this chapter shall be construed 
to affect the rights of parents otherwise established in Federal, 
State, or local law.
    (c) Nonduplication.--No funds provided under this chapter shall be 
used to carry out an activity funded under another provision of law 
providing for Federal child care or early learning programs, unless an 
expansion of such activity is identified in the local needs assessment 
and performance goals under this chapter.

SEC. 3255. AUTHORIZATION AND APPROPRIATION OF FUNDS.

    There are authorized to be appropriated to the Department of Health 
and Human Services to carry out this chapter--
            (1) $1,000,000,000 for fiscal year 2004;
            (2) $1,500,000,000 for fiscal year 2005; and
            (3) such sums as may be necessary for fiscal years 2006 and 
        2007.

SEC. 3256. ALLOTMENTS TO STATES.

    (a) Amounts Reserved.--
            (1) Territories and possessions.--The Secretary shall 
        reserve not more than \1/2\ of 1 percent of the funds 
        appropriated to carry out this chapter for any fiscal year for 
        distribution to Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands, to be allotted in accordance with 
        their respective needs.
            (2) Indian tribes and tribal organizations.--The Secretary 
        shall reserve not more than 3 percent of the funds appropriated 
        to carry out this chapter for any fiscal year for distribution 
        to Indian tribes and tribal organizations with applications 
        approved under subsection (c).
    (b) Allotments to Remaining States.--
            (1) General authority.--From the funds appropriated to 
        carry out this chapter for any fiscal year remaining after 
        reserving funds under subsection (a), the Secretary shall allot 
        to each State (excluding Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands) an amount equal 
        to the sum of--
                    (A) an amount that bears the same ratio to 50 
                percent of such remainder as the product of the young 
                child factor of the State and the allotment percentage 
                of the State bears to the sum of the corresponding 
                products for all States; and --
                    (B) an amount that bears the same ratio to 50 
                percent of such remainder as the product of the school 
                lunch factor of the State and the allotment percentage 
                of the State bears to the sum of the corresponding 
                products for all States. --
            (2) Young child factor.--The term ``young child factor'' 
        means the ratio of the number of children in the State under 5 
        years of age to the number of such children in all States as 
        provided by the most recent annual estimates of population in 
        the States by the Bureau of the Census.
            (3) School lunch factor.--The term ``school lunch factor'' 
        means the ratio of the number of children in the State who are 
        receiving free or reduced price lunches under the school lunch 
        program established under the National School Lunch Act (42 
        U.S.C. 1751 et seq.) to the number of such children in all the 
        States as determined annually by the Department of Agriculture.
            (4) Allotment percentage.--
                    (A) In general.--The allotment percentage for a 
                State is 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.--If an allotment percentage 
                determined under subparagraph (A)--
                            (i) is more than 1.2 percent, then the 
                        allotment percentage of that State shall be 
                        considered to be 1.2 percent; and
                            (ii) is less than 0.8 percent, then 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 on or 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) Allotments to Indian Tribes and Tribal Organizations.--
            (1) Reservation of funds.--From amounts reserved under 
        subsection (a)(2), the Secretary may make allotments to Indian 
        tribes and tribal organizations that submit applications under 
        this subsection, to plan and carry out programs and activities 
        to encourage child care providers to improve their 
        qualifications and to retain qualified child care providers in 
        the child care field.
            (2) Applications and requirements.--An application for an 
        allotment to an Indian tribe or tribal organization under this 
        section shall provide that--
                    (A) the applicant will coordinate, 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) the applicant will make such reports on, and 
                conduct such audits of, programs and activities under 
                this chapter as the Secretary may require.
    (d) Data and Information.--The Secretary shall obtain from each 
appropriate Federal agency, the most recent data and information 
necessary to determine the allotments provided for in subsection (b).
    (e) Reallotments.--
            (1) In general.--Any portion of the allotment under 
        subsection (b) to a State for a fiscal year that the Secretary 
        determines will not be distributed to the State for such fiscal 
        year shall be reallotted by the Secretary to other States 
        proportionately based on 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 to under paragraph (1) shall 
                be reduced to the extent that such amount exceeds the 
                amount that the Secretary estimates will be distributed 
                to the State to make grants under this chapter.
                    (B) Reallotments.--The amount of such reduction 
                shall be reallotted proportionately based on allotments 
                made under subsection (b) to States with respect to 
                which no reduction in an allotment, or in a 
                reallotment, is required by this subsection.
            (3) Amounts reallotted.--For purposes of this chapter 
        (other than this subsection and subsection (b)), any amount 
        reallotted to a State under this subsection shall be considered 
        to be part of the allotment made under subsection (b) to the 
        State.
    (f) Federal Share.--
            (1) In general.--The Federal share of the cost of making 
        grants under this chapter shall be 85 percent for the first and 
        second years of the grant, 80 percent for the third and fourth 
        years of the grant, and 75 percent for the subsequent years of 
        the grant.
            (2) Non-federal share.--The non-Federal share of the cost 
        of making grants under this chapter may be contributed in cash 
        or in kind, fairly evaluated, including facilities, equipment, 
        or services, which may be provided from State or local public 
        sources, or through donations from private entities. For the 
        purposes of this paragraph the term ``facilities'' includes the 
        use of facilities, but the term ``equipment'' means donated 
        equipment and not the use of equipment.
    (g) Maintenance of Effort.--The Secretary shall not make a grant 
under this chapter to any State unless the Secretary first determines 
that the total expenditures by the State and its political subdivisions 
to support early learning programs (other than funds used to pay the 
non-Federal share under subsection (f)(2)) for the fiscal year for 
which the determination is made is equal to or greater than such 
expenditures for the preceding fiscal year.
    (h) Supplement Not Supplant.--Amounts received under this chapter 
shall be used to supplement and not supplant other Federal, State, and 
local public funds expended to promote early learning.
    (i) Special Rule.--If funds appropriated to carry out this chapter 
are less than $150,000,000 for any fiscal year, the Secretary shall 
make grants for the fiscal year directly to Local Councils, on a 
competitive basis, to pay the Federal share of the cost of carrying out 
early learning programs in the locality served by the Local Council. In 
carrying out the preceding sentence--
            (1) subsection (g) of this section, section 3257(b), and 
        section 3259(b)(4) shall not apply;
            (2) the Secretary shall provide such technical assistance 
        and monitoring as necessary to ensure that the use of the funds 
        by Local Councils and the distribution of the funds to Local 
        Councils are consistent with this chapter; and
            (3) subject to paragraph (1), the Secretary shall assume 
        the responsibilities of the Lead State Agency under this 
        chapter, as appropriate.

SEC. 3257. ADMINISTRATIVE COSTS.

    (a) Federal Administrative Costs.--The Secretary may use not more 
than 3 percent of the amount appropriated under section 3255 for a 
fiscal year to pay for the administrative costs of carrying out this 
chapter, including the monitoring and evaluation of State and local 
efforts.
    (b) State Administrative Costs.--A State that receives a grant 
under this chapter may use--
            (1) not more than 2 percent of the funds made available 
        through the grant to carry out activities designed to 
        coordinate early learning programs on the State level, 
        including programs funded or operated by the State educational 
        agency, health, children and family, and human service 
        agencies, and any State-level collaboration or coordination 
        council involving early learning and education, such as the 
        entities funded under section 640(a)(5) of the Head Start Act 
        (42 U.S.C. 9835(a)(5));
            (2) not more than 2 percent of the funds made available 
        through the grant for the administrative costs of carrying out 
        the grant program and the costs of reporting State and local 
        efforts to the Secretary; and
            (3) not more than 3 percent of the funds made available 
        through the grant for training, technical assistance, and wage 
        incentives provided by the State to Local Councils.

SEC. 3258. STATE REQUIREMENTS.

    (a) In General.--The Secretary may make grants to eligible States 
that comply with section 3259, to expand access to and quality of early 
learning programs that meet requirements in section 3262.
    (b) State Applications.--
            (1) In general.--To be eligible to receive a grant under 
        subsection (a), a State shall submit an application in 
        accordance with this subsection to the Secretary at such time, 
        in such manner, and containing such information as the 
        Secretary may reasonably require.
            (2) Contents of state application.--The State shall include 
        in such application a plan that includes--
                    (A) a statement ensuring that the State has 
                identified a Lead State Agency to administer and 
                monitor the grant and ensure State-level coordination 
                of early learning programs;
                    (B) a statement describing the manner in which the 
                Lead State Agency will allocate funds received under 
                this chapter to localities as required under section 
                3259;
                    (C) a description of how grant funds will be used 
                to expand access to and quality of early learning 
                programs as required under section 3262;
                    (D) a description of the performance goals to be 
                achieved by funds received under this chapter and the 
                measure to be used to evaluate progress toward such 
                goals; and
                    (E) a statement describing how the State will 
                provide technical assistance to ensure that Local 
                Councils receiving funds under this chapter comply with 
                the requirements of this chapter.

SEC. 3259. STATE ADMINISTRATION.

    (a) In General.--For a State to be eligible to receive a grant 
under this chapter, the State shall appoint a Lead State Agency to 
carry out the functions described in subsection (b).
    (b) Lead State Agency.--
            (1) In general.--The Lead State Agency as described in 
        subsection (a) shall allocate funds in accordance with section 
        3258 to localities.
            (2) Limitation.--The Lead State Agency shall allocate not 
        less than 93 percent of such funds that have been provided to 
        the State for a fiscal year to more than 1 locality.
            (3) Functions of agency.--In addition to allocating funds 
        under paragraph (1), the Lead State Agency shall--
                    (A) advise and assist Local Councils in the 
                performance of their duties under this chapter;
                    (B) develop and submit the State application and 
                the State plan required under section 3258;
                    (C) evaluate and approve applications submitted by 
                localities;
                    (D) ensure collaboration with respect to assistance 
                provided under this chapter between the State agencies 
                responsible for education, child care, health and 
                social services;
                    (E) prepare and submit to the Secretary an annual 
                report, after approval by the State Council designated 
                under subsection (c), which shall include a statement 
                describing the manner in which funds received under 
                section 3258 are expended and documentation of the 
                effects that resources under this chapter have had on--
                            (i) the number of children in full-day, 
                        full-year Head Start programs, as provided 
                        under the Head Start Act (42 U.S.C. 9831 et 
                        seq.);
                            (ii) the number of infants and toddlers in 
                        programs that provide comprehensive Early Head 
                        Start services, as provided under the Head 
                        Start Act (42 U.S.C. 9831 et seq.);
                            (iii) the number of children attending, and 
                        types of programs providing, prekindergarten, 
                        including those with special needs;
                            (iv) the linkages between early learning 
                        programs and health care services for young 
                        children;
                            (v) the linkages among early learning 
                        programs;
                            (vi) access to early learning activities 
                        for young children with special needs;
                            (vii) expansion of the days or times that 
                        children are served in existing early learning 
                        programs;
                            (viii) removal of ancillary barriers to 
                        early learning, including transportation 
                        difficulties, absence of programs during 
                        nontraditional work times, and family 
                        affordability; and
                            (ix) professional development, and 
                        recruitment and retention incentives, for 
                        caregivers.
            (4) State preference.--In making grants to Local Councils 
        under this chapter, the State shall give preference to 
        supporting Local Councils that meet criteria that are specified 
        by the State and approved by the Secretary, for qualifying as 
        serving areas of greatest need for expanding access to and 
        quality of early learning programs.
    (c) State Council.--
            (1) In general.--The State Council referred to in 
        subsection (b)(3) shall be composed of a group of 
        representatives of agencies, institutions, and other entities, 
        as described in paragraphs (2) and (3), that provide child care 
        or early learning services in the State.
            (2) Membership.--Except as provided in paragraph (6), the 
        chief executive officer of the State shall appoint to the State 
        Council at least 1 representative from--
                    (A) the office of the chief executive officer of 
                the State;
                    (B) the State educational agency;
                    (C) the State agency administering funds received 
                under the Child Care and Development Block Grant Act of 
                1990 (42 U.S.C. 9858 et seq.);
                    (D) the State social services agency;
                    (E) the State Head Start association;
                    (F) organizations representing parents within the 
                State;
                    (G) resource and referral agencies within the 
                State; and
                    (H) specialists in early child development.
            (3) Additional members.--In addition to representatives 
        appointed under paragraph (2), the chief executive officer of 
        the State may appoint to the State Council additional 
        representatives from--
                    (A) the State Board of Education;
                    (B) the State health agency;
                    (C) the State labor or employment agency;
                    (D) organizations representing teachers;
                    (E) organizations representing business; and
                    (F) organizations representing labor.
            (4) Representation.--To the extent practicable, the chief 
        executive officer of the State shall appoint representatives 
        under paragraphs (2) and (3) in a manner that is diverse or 
        balanced according to the race, ethnicity, and gender of its 
        members.
            (5) Functions of the council.--The State Council shall--
                    (A) conduct a needs and resources assessment, or 
                use such an assessment if conducted not later than 2 
                years prior to the date of enactment of this chapter, 
                to--
                            (i) determine where early learning programs 
                        are lacking or are inadequate within the State, 
                        with particular attention to poor urban and 
                        rural areas, and what special services are 
                        needed within the State, such as services for 
                        children whose native language is a language 
                        other than English; and
                            (ii) identify all existing State-funded 
                        early learning programs, and, to the extent 
                        practical, other programs serving 
                        prekindergarten children in the State, 
                        including parent education programs, and to 
                        specify which programs might be expanded or 
                        upgraded with the use of funds received under 
                        section 3255; and
                    (B) based on the assessment described in 
                subparagraph (A), determine funding priorities for 
                amounts received under section 3255 for the State.
            (6) Designating an existing entity as state council.--To 
        the extent that a State has a State Council or an entity that 
        functions as such before the date of enactment of this chapter 
        that is comparable to the State Council described in this 
        subsection, the State shall be considered to be in compliance 
        with this subsection.

SEC. 3260. LOCAL APPLICATION.

    (a) In General.--To be eligible to receive a grant under this 
chapter, a Local Council shall submit an application to the Lead State 
Agency at such time, in such manner, and containing such information as 
the Lead Agency may require.
    (b) Contents.--An application submitted under subsection (a) shall 
include a statement containing an assurance that the local government 
entity, Indian tribe, Regional Corporation, or Native Hawaiian entity 
has established or designated a Local Council under section 3261(a), 
and the Local Council has developed a local plan for carrying out early 
learning programs under this chapter that includes--
            (1) a needs and resources assessment concerning early 
        learning services and access to such services by families, and 
        a statement describing how early learning programs will be 
        funded consistent with the assessment;
            (2) a statement of how the Local Council will ensure that 
        funded programs will meet the performance goals referred to in 
        section 3258(b)(2)(D) established by the State; and
            (3) a description of how the Local Council will form 
        collaboratives among local child care, social, and health 
        services and educational providers to maximize resources and 
        concentrate efforts on areas of greatest need.

SEC. 3261. LOCAL ADMINISTRATION.

    (a) Local Council.--
            (1) In general.--To be eligible to receive a grant under 
        this chapter, a local government entity, Indian tribe, Regional 
        Corporation, or Native Hawaiian entity, as appropriate, shall 
        establish or designate a Local Council, which shall be composed 
        of--
                    (A) representatives of local agencies and 
                organizations directly affected by early learning 
                programs assisted under this chapter;
                    (B) parents or representatives of families with 
                young children;
                    (C) other individuals concerned with early learning 
                issues in the locality, such as representative entities 
                providing elementary education, child care resource and 
                referral services, early learning opportunities, child 
                care, and health services; and
                    (D) other key community leaders.
            (2) Designating existing entity.--If a local government 
        entity, Indian tribe, Regional Corporation, or Native Hawaiian 
        entity has, before the date of enactment of this Act, a Local 
        Council or a regional entity that is comparable to the Local 
        Council described in paragraph (1), the entity, tribe, or 
        corporation may designate the council or entity as a Local 
        Council under this chapter, and shall be considered to have 
        established a Local Council in compliance with this subsection.
            (3) Functions.--The Local Council shall be responsible for 
        preparing and submitting the application described in section 
        3260.
    (b) Administration.--
            (1) Administrative costs.--Not more than 7 percent of the 
        funds received by a Local Council under this chapter shall be 
        used to pay for the administrative costs of the Local Council 
        in carrying out this chapter.
            (2) Fiscal agent.--A Local Council may designate any entity 
        with a demonstrated capacity for administering grants, that is 
        affected by, or concerned with, early learning issues, 
        including the State, to serve as fiscal agent for the 
        administration of grant funds received by the Local Council 
        under this chapter.

SEC. 3262. USE OF FUNDS.

    Grants received under this chapter by Local Councils shall be used 
in accordance with this chapter to provide funds to service providers 
to--
            (1) increase the number of children served in State 
        prekindergarten education programs;
            (2) increase the number of Head Start programs providing 
        full working day, full calendar year Head Start services;
            (3) increase the number of children served in Early Head 
        Start programs carried out under section 645A of the Head Start 
        Act (42 U.S.C 9840a);
            (4) enhance the quality of and access to education and 
        comprehensive services and support services provided through 
        the Child Care and Development Block Grant Act of 1990 (42 
        U.S.C. 9858 et seq.) to child care programs and providers, 
        including health screening and diagnosis of children, parent 
        involvement and parent education, nutrition services and 
        education, staff and personnel training in early childhood 
        development, and salary upgrading for early childhood 
        development staff, and the development of salary schedules for 
        staff with varying levels of experience, expertise, and 
        education;
            (5) develop linkages among early learning programs within a 
        community and between early learning programs and health care 
        services for young children in ways that facilitate greater 
        access to early learning programs;
            (6) increase access to and quality of early learning 
        opportunities for young children with special needs, including 
        migratory children, children with limited English proficiency, 
        and children with developmental delays, by facilitating 
        coordination with other programs serving such young children;
            (7) improve the quality of early learning programs through 
        professional development and training activities, increased 
        compensation, and recruitment and retention incentives for 
        early learning providers;
            (8) remove ancillary barriers to early learning, including 
        transportation difficulties and family affordability of early 
        learning programs;
            (9) increase access to home visitation programs that are 
        designed to improve early learning if services are provided by 
        staff who are given sufficient training, and clinical and 
        administrative supervision, by a registered nurse or a 
        qualified early childhood professional;
            (10) improve coordination between localities carrying out 
        early learning programs and persons providing early 
        intervention services under part C of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1431 et seq.); or
            (11) increase the number of child care providers serving 
        families during nontraditional work time if such providers are 
        licensed by the State.

SEC. 3263. REPEAL.

    The Early Learning Opportunities Act (title VIII of the Departments 
of Labor, Health and Human Services, and Education, and Related 
Agencies Appropriations Act, 2001) (as enacted into law by section 
1(a)(1) of Public Law 106-554) is repealed.

SEC. 3264. EFFECTIVE DATE.

    This chapter shall take effect on the first day of the first fiscal 
year that begins after the date of the enactment of this Act.

               CHAPTER 5--CHILD CARE FACILITIES FINANCING

SEC. 3271. SHORT TITLE.

    This chapter may be cited as the ``Child Care Facilities Financing 
Act''.

SEC. 3272. TECHNICAL AND FINANCIAL ASSISTANCE 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 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 other 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) 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.--In awarding grants under this section the Secretary 
shall give a priority to applicants under subsection (c) that serve 
low-income areas or individuals.
    (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 is authorized to be 
appropriated to carry out this section $500,000,000 for each of fiscal 
years 2004 through 2008.

             Subtitle D--Head Start Access and Improvement

SEC. 3301. AUTHORIZATION OF APPROPRIATIONS.

    Section 639(a) of the Head Start Act (42 U.S.C. 9834(a)) is amended 
to read as follows:
    ``(a) There are authorized to be appropriated to carry out this 
subchapter--
            ``(1) $7,037,640,000 for fiscal year 2004;
            ``(2) $7,787,640,000 for fiscal year 2005;
            ``(3) $8,537,640,000 for fiscal year 2006;
            ``(4) $9,537,640,000 for fiscal year 2007;
            ``(5) $10,717,640,000 for fiscal year 2008;
            ``(6) $11,907,640,000 for fiscal year 2009;
            ``(7) $13,307,640,000 for fiscal year 2010;
            ``(8) $14,967,640,000 for fiscal year 2011;
            ``(9) $16,967,640,000 for fiscal year 2012; and
            ``(10) $20,047,640,000 for fiscal year 2013.''.

                   Subtitle E--Education Improvements

    CHAPTER 1--INCREASING ACCESS TO QUALITY PREKINDERGARTEN PROGRAMS

SEC. 3401. PREKINDERGARTEN PROGRAMS.

    Title V of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7201 et seq.) is amended by adding at the end the following:

                   ``PART E--PREKINDERGARTEN PROGRAMS

``SEC. 5701. FINDINGS.

    ``Congress finds the following:
            ``(1) Countless studies have shown what every parent 
        already knows: High-quality preschool education programs work. 
        Such programs prepare children to learn when they go to school, 
        and increase the success of students throughout their lives.
            ``(2) Children who get a high-quality prekindergarten 
        education are less likely to repeat a grade level and have less 
        need for special education instruction than those with no 
        prekindergarten experience.
            ``(3) Prekindergarten programs make a significant 
        difference in the lives of children from low-income families. A 
        recent study found that children in high-quality child care 
        programs had better thinking and attention skills, better 
        mathematics and pre-reading skills, and fewer behavioral 
        problems.
            ``(4) In a study following children to age 21 who received 
        high-quality early childhood education, such children were 
        found more likely to have enrolled in college, been employed, 
        and delayed parenthood.

``SEC. 5702. DEFINITIONS.

    ``In this part:
            ``(1) Eligible prekindergarten provider.--The term 
        `eligible prekindergarten provider' means--
                    ``(A) a child care program or Head Start agency 
                under the Head Start Act (42 U.S.C. 9831 et seq.) 
                that--
                            ``(i) has met applicable State licensing 
                        requirements and has obtained accreditation by 
                        a national accrediting body with demonstrated 
                        experience in accrediting child care programs, 
                        prekindergarten programs, or schools; or
                            ``(ii) agrees to obtain such accreditation 
                        not later than 3 years after receipt of a 
                        subgrant under this part; or
                    ``(B) a local educational agency in partnership 
                with an early childhood program, organization, or 
                agency that serves prekindergarten school children, 
                that--
                            ``(i) has met applicable State licensing 
                        requirements and has obtained accreditation by 
                        a national accrediting body with demonstrated 
                        experience in accrediting child care programs, 
                        prekindergarten programs, or schools; or
                            ``(ii) agrees to obtain such accreditation 
                        not later than 3 years after receipt of a 
                        subgrant under this part; and.
            ``(2) Prekindergarten teacher.--The term `prekindergarten 
        teacher' means an individual who has, or is working toward, a 
        bachelor of arts degree in early childhood development.
            ``(3) Prekindergarten program.--The term `prekindergarten 
        program' means a program serving children who are 3, 4, or 5 
        years old that supports the children's cognitive, social, 
        emotional, and physical development and helps prepare the 
        children for the transition to kindergarten.

``SEC. 5703. PROGRAM AUTHORIZED.

    ``(a) In General.--From amounts made available under section 5707, 
the Secretary may provide grants to States with approved applications 
under subsection (b)(2) for the purpose of enabling the States to award 
subgrants to eligible prekindergarten providers to establish, enhance, 
or expand prekindergarten programs.
    ``(b) State Agency.--
            ``(1) In general.--A State desiring a grant under this part 
        shall designate a State agency to administer the grant.
            ``(2) Application.--
                    ``(A) In general.--With respect to a State desiring 
                a grant under this part, the State agency designated 
                under paragraph (1) shall submit an application to the 
                Secretary at such time, in such manner, and containing 
                such information as the Secretary may require.
                    ``(B) Contents.--The application submitted under 
                subparagraph (A) shall include--
                            ``(i) an assurance that the State will 
                        provide non-Federal matching funds, for 
                        carrying out the prekindergarten programs to be 
                        funded by a grant under this part, in an amount 
                        equal to not less than 20 percent of the grant 
                        award; and
                            ``(ii) a description of--
                                    ``(I) how grant funds will be used 
                                to expand or enhance existing efforts 
                                across the State in providing access to 
                                high-quality prekindergarten programs;
                                    ``(II) how the State will 
                                collaborate with local child care 
                                agencies and councils, including local 
                                child care resource and referral 
                                agencies;
                                    ``(III) how grant funds will be 
                                used to supplement and not supplant 
                                existing Federal, State, local and 
                                private funds used for prekindergarten 
                                programs;
                                    ``(IV) how the State will ensure 
                                that grant funds are provided to a 
                                range of types of eligible 
                                prekindergarten providers;
                                    ``(V) how the State will help 
                                eligible prekindergarten providers 
                                attract and retain qualified 
                                prekindergarten teachers;
                                    ``(VI) how the State will identify 
                                eligible prekindergarten providers and 
                                identify children to receive 
                                prekindergarten education; and
                                    ``(VII) how the State will give 
                                priority in awarding subgrants under 
                                paragraph (3)(B) to full-time 
                                prekindergarten programs, including the 
                                expansion of existing part-time 
                                programs into full-time programs.
            ``(3) Duties.--The State agency designated under paragraph 
        (1) shall--
                    ``(A) receive and administer grant funds received 
                under this part;
                    ``(B) award subgrants, from such grant funds 
                received, to eligible prekindergarten providers to 
                carry out section 5705; and
                    ``(C) conduct evaluations of prekindergarten 
                programs carried out by eligible prekindergarten 
                providers that receive subgrants under subparagraph 
                (B).

``SEC. 5704. LOCAL APPLICATIONS.

    ``(a) In General.--An eligible prekindergarten provider that 
desires to receive a subgrant under this part shall submit an 
application to the appropriate State agency designated under section 
5703(b)(1) at such time, in such manner, and containing such 
information as such State agency may reasonably require.
    ``(b) Content.--An application submitted under subsection (a), at a 
minimum, shall--
            ``(1) demonstrate a need for the establishment, 
        enhancement, or expansion of a prekindergarten program;
            ``(2) describe how the eligible prekindergarten provider 
        will collaborate with local early childhood councils and 
        agencies;
            ``(3) provide an assurance that each individual hired as a 
        teacher by the eligible prekindergarten provider for the 
        prekindergarten program is qualified as a prekindergarten 
        teacher;
            ``(4) provide an assurance that the ratio of teacher or 
        child development specialist to children at each 
        prekindergarten program assisted under this part and 
        administered by the provider will not exceed 1-10;
            ``(5) provide a description of how funds will be used to 
        coordinate with and enhance, but not duplicate or supplant, 
        Federal, State, and local funding for early childhood programs 
        serving 3-, 4-, or 5-year old children in the community;
            ``(6) describe how the eligible prekindergarten provider 
        will use a collaborative process with organizations and members 
        of the community that have an interest and experience in early 
        childhood development and education to establish, enhance, or 
        expand prekindergarten programs;
            ``(7) describe how the prekindergarten program to be funded 
        under the subgrant will meet the diverse needs of children, 
        ages 3 through 5, in the community who are not enrolled in 
        kindergarten, including children with disabilities or whose 
        native language is other than English;
            ``(8) describe how the eligible prekindergarten provider 
        will collaborate with local schools to ensure a smooth 
        transition for participating students from prekindergarten to 
        kindergarten and early elementary education;
            ``(9) describe the results the prekindergarten program is 
        intended to achieve, and what tools will be used to measure the 
        progress in attaining those results; and
            ``(10) provide an assurance that none of the funds received 
        under this part will be used for the construction or renovation 
        of existing or new facilities (except for minor remodeling 
        needed to accomplish the purposes of this part).

``SEC. 5705. LOCAL USES OF FUNDS.

    ``(a) In General.--An eligible prekindergarten provider that 
receives a subgrant under this part shall use funds received under such 
subgrant to establish, enhance, or expand prekindergarten programs for 
children who are not enrolled in kindergarten, including--
            ``(1) providing a program that focuses on the developmental 
        needs of participating children, including their social, 
        cognitive, physical, and language-development needs, and uses 
        research-based approaches that build on competencies that lead 
        to school success, particularly in language and literacy 
        development and in reading;
            ``(2) paying the costs of purchasing educational equipment, 
        including educational materials, necessary to provide a high-
        quality program;
            ``(3) pursuing accreditation by a national accreditation 
        body with demonstrated experience in accreditation of 
        prekindergarten programs, to be obtained not later than 3 years 
        after the date on which funds are first received under this 
        part;
            ``(4) helping prekindergarten teachers pursue and attain 
        the credential and degree requirements established by the 
        State, and providing a stipend for attaining educational or 
        professional development; and
            ``(5) meeting the needs of working parents.
    ``(b) Permissible Uses of Funds.--An eligible prekindergarten 
provider that receives a subgrant under this part may use funds 
received under such subgrant to pay for transporting students to and 
from a prekindergarten program.

``SEC. 5706. REPORTING.

    ``(a) Local Reports.--Each eligible prekindergarten provider that 
receives a subgrant under this part shall submit to the State agency 
designated under section 5703(b)(1), not later than 18 months after the 
date on which the provider first receives such subgrant, a report 
relating to the period for which subgrant funds were received, 
containing information on--
            ``(1) the number and ages of children served by the 
        eligible prekindergarten provider, including information 
        disaggregated by family income, race, disability, and native 
        language;
            ``(2) the number of hours of service per day and number of 
        months of service provided under the prekindergarten program;
            ``(3) the total number of prekindergarten teachers employed 
        under the prekindergarten program; and
            ``(4) other sources of Federal, State, local, and private 
        funds used to operate the prekindergarten program for which 
        subgrant funds were received under this part.
    ``(b) Report to Congress.--The Secretary shall submit an annual 
report to Congress that evaluates the prekindergarten programs 
established, enhanced, or expanded under this part.

``SEC. 5707. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$2,000,000,000 for fiscal year 2004, $4,000,000,000 for fiscal year 
2005, $5,000,000,000 for fiscal year 2006, $8,000,000,000 for fiscal 
year 2007, and $10,000,000,000 for fiscal year 2008.''.

             CHAPTER 2--IMPROVING THE AVAILABILITY OF BOOKS

SEC. 3411. SHORT TITLE.

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

SEC. 3412. 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 and 
        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.

SEC. 3413. DEFINITIONS.

    In this chapter:
            (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 
        prekindergarten 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. 3414. 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 and other child care 
programs, by making books available through early learning and other 
child care 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 658I(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 States receiving grants under this 
chapter, except that references in those sections--
            (1) to a chapter shall be considered to be references to 
        this chapter; 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 3419 for the 
        fiscal year.

SEC. 3415. CONTRACTS TO CHILD CARE RESOURCE AND
              REFERRAL AGENCIES.

    A State agency that receives a grant under section 3414 shall use 
funds made available through the grant to enter into contracts with 
local child care resource and referral agencies to carry out the 
activities described in section 3416. 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. 3416. USE OF FUNDS.

    (a) Activities.--
            (1) Book payments for eligible providers.--A child care 
        resource and referral agency that receives a contract under 
        section 3415 shall use the funds made available through the 
        grant to provide payments for eligible early learning program 
        and other child care 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 and other child care 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 658P(5)(A) of the Child 
                Care and Development Block Grant Act of 1990 (42 U.S.C. 
                9858n(5)(A)); or
                    (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; 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 agency 
that receives a contract under section 3415 to provide payments to 
eligible providers shall--
            (1) consult with local individuals and organizations 
        concerned with early literacy (including parents 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 chapter;
            (4) distribute, to each eligible provider that receives a 
        payment under this chapter, 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 
        chapter 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 chapter 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 agency 
may not use more than 6 percent of the funds made available through the 
contract for administrative costs.

SEC. 3417. REPORT TO CONGRESS.

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

SEC. 3418. 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. 3419. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this chapter 
$50,000,000 for each of fiscal years 2004 through 2008.

               CHAPTER 3--QUALITY TEACHING AND LEADERSHIP

  Subchapter A--Amendment to Title II of the Elementary and Secondary 
                         Education Act of 1965

SEC. 3421. AMENDMENTS TO TITLE II.

    Title II of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6601 et seq.) is amended by adding at the end the following:

                     ``PART E--CLASS SIZE REDUCTION

``SEC. 2501. GRANT PROGRAM.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to reduce class size through the use of highly 
        qualified teachers;
            ``(2) to assist States and local educational agencies in 
        recruiting, hiring, and training 100,000 teachers in order to 
        reduce class sizes nationally, in kindergarten through grade 3, 
        to an average of 18 students per regular classroom; and
            ``(3) to improve teaching in those grades so that all 
        students can learn to read independently and well by the end of 
        the 3d grade.
    ``(b) Allotment to States.--
            ``(1) Reservation.--From the amount made available to carry 
        out this part for a fiscal year, the Secretary shall reserve 
        not more than 1 percent for the Secretary of the Interior (on 
        behalf of the Bureau of Indian Affairs) and the outlying areas 
        for activities carried out in accordance with this section.
            ``(2) State allotments.--
                    ``(A) Hold harmless.--
                            ``(i) In general.--Subject to subparagraph 
                        (B) and clause (ii), from the amount made 
                        available to carry out this part for a fiscal 
                        year and not reserved under paragraph (1), the 
                        Secretary shall allot to each State--
                                    ``(I) for the first fiscal year for 
                                which allotments are made under this 
                                subparagraph, an amount equal to the 
                                amount that such State received under 
                                section 306 of the Department of 
                                Education Appropriations Act, 2001; and
                                    ``(II) for each subsequent fiscal 
                                year for which allotments are made 
                                under this subparagraph, an amount 
                                equal to the amount that such State 
                                received for the preceding fiscal year 
                                under this section.
                            ``(ii) Ratable reduction.--If the amount 
                        made available to carry out this part for a 
                        fiscal year and not reserved under paragraph 
                        (1) is insufficient to pay the full amounts 
                        that all States are eligible to receive under 
                        clause (i) for such fiscal year, the Secretary 
                        shall ratably reduce such amounts for such 
                        fiscal year.
                    ``(B) Allotment of additional funds.--
                            ``(i) In general.--Subject to clause (ii), 
                        for any fiscal year for which the amount made 
                        available to carry out this part and not 
                        reserved under paragraph (1) exceeds the amount 
                        needed to pay the full amounts that all States 
                        are eligible to receive under subparagraph (A) 
                        for such fiscal year, the Secretary shall allot 
                        to each State the percentage of the excess 
                        amount that is the greater of--
                                    ``(I) the percentage that such 
                                State received for the preceding fiscal 
                                year of the total amount made available 
                                to the States under section 1122; or
                                    ``(II)(aa) for the first of the 
                                fiscal years for which allotments are 
                                made under this subparagraph (referred 
                                to individually in this subclause as an 
                                `allotment year'), the percentage that 
                                such State received for the preceding 
                                fiscal year of the total amount made 
                                available to the States under section 
                                5111(a); or
                                    ``(bb) for each subsequent 
                                allotment year, the percentage that 
                                such State received for the preceding 
                                allotment year of the total amount made 
                                available to the States under this 
                                section.
                            ``(ii) Ratable reductions.--If the excess 
                        amount for a fiscal year is insufficient to pay 
                        the full amounts that all States are eligible 
                        to receive under clause (i) for such fiscal 
                        year, the Secretary shall ratably reduce such 
                        amounts for such fiscal year.
                    ``(C) Definition.--In this paragraph, the term 
                `State' does not include an outlying area.
    ``(c) Allocation to Local Educational Agencies.--
            ``(1) Allocation.--Each State that receives funds under 
        this section shall allocate 100 percent of those funds to local 
        educational agencies, of which--
                    ``(A) 80 percent shall be allocated to those local 
                educational agencies in proportion to the number of 
                children, age 5 through 17, from families with incomes 
                below the 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, who reside 
                in the school district served by that local educational 
                agency for the most recent fiscal year for which 
                satisfactory data are available, compared to the number 
                of those children who reside in the school districts 
                served by all the local educational agencies in the 
                State for that fiscal year; and
                    ``(B) 20 percent shall be allocated to those local 
                educational agencies in accordance with the relative 
                enrollments of children, age 5 through 17, in public 
                and private nonprofit elementary schools and secondary 
                schools within the areas served by those agencies.
            ``(2) Exception.--Notwithstanding paragraph (1) and 
        subsection (d)(2)(B), if the award to a local educational 
        agency under this section is less than the starting salary for 
        a new highly qualified teacher for a school served by that 
        agency, that agency may use funds made available under this 
        section to--
                    ``(A) help pay the salary of a full- or part-time 
                highly qualified teacher hired to reduce class size, 
                which may be done in combination with the expenditure 
                of other Federal, State, or local funds; or
                    ``(B) pay for activities described in subsection 
                (d)(2)(A)(iii) that may be related to teaching in 
                smaller classes.
    ``(d) Use of Funds.--
            ``(1) Mandatory uses.--Each local educational agency that 
        receives funds under this section shall use those funds to 
        carry out effective approaches to reducing class size through 
        use of highly qualified teachers to improve educational 
        achievement for both regular and special needs children, with 
        particular consideration given to reducing class size in the 
        early elementary grades for which some research has shown class 
        size reduction is most effective.
            ``(2) Permissible uses.--
                    ``(A) In general.--Each such local educational 
                agency may use funds made available under this section 
                for--
                            ``(i) recruiting (including through the use 
                        of signing bonuses and other financial 
                        incentives), hiring, and training highly 
                        qualified regular and special education 
                        teachers (which may include hiring special 
                        education teachers to team-teach with regular 
                        teachers in classrooms that contain both 
                        children with disabilities and nondisabled 
                        children) and teachers of special needs 
                        children;
                            ``(ii) testing new teachers for academic 
                        content knowledge, and to meet State 
                        certification or licensing requirements that 
                        are consistent with title II of the Higher 
                        Education Act of 1965; and
                            ``(iii) providing professional development 
                        (which may include such activities as promoting 
                        retention and mentoring) for teachers, 
                        including special education teachers and 
                        teachers of special needs children, in order to 
                        meet the goal of ensuring that all teachers 
                        have the general knowledge, teaching skills, 
                        and subject matter knowledge necessary to teach 
                        effectively in the content areas in which the 
                        teachers teach, consistent with title II of the 
                        Higher Education Act of 1965.
                    ``(B) Limitation on testing and professional 
                development.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a local educational agency may use 
                        not more than a total of 25 percent of the 
                        funds received by the agency under this section 
                        for activities described in clauses (ii) and 
                        (iii) of subparagraph (A).
                            ``(ii) Special rule.--A local educational 
                        agency may use more than 25 percent of the 
                        funds the agency receives under this section 
                        for activities described in subparagraph 
                        (A)(iii) for the purpose of helping teachers 
                        who are not yet highly qualified in attaining 
                        full qualification if 10 percent or more of the 
                        elementary school classes in a school are 
                        taught by individuals who are not highly 
                        qualified teachers or the State educational 
                        agency has waived State certification or 
                        licensing requirements for 10 percent or more 
                        of such teachers.
                    ``(C) Use of funds by agencies that have reduced 
                class size.--Notwithstanding subparagraph (B), a local 
                educational agency that has already reduced class size 
                in the early elementary grades to 18 or fewer children 
                (or has already reduced class size to a State or local 
                class size reduction goal that was in effect on 
                November 28, 1999, if that goal is 20 or fewer 
                children) may use funds received under this section--
                            ``(i) to make further class size reductions 
                        in kindergarten through 3d grade;
                            ``(ii) to reduce class size in other 
                        grades; or
                            ``(iii) to carry out activities to improve 
                        teacher quality, including professional 
                        development.
            ``(3) Supplement, not supplant.--Each such agency shall use 
        funds made available under this section only to supplement, and 
        not to supplant, State and local funds that, in the absence of 
        funds made available under this section, would otherwise be 
        expended for activities described in this section.
            ``(4) Limitation on use for salaries and benefits.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no funds made available under this 
                section may be used to increase the salaries of, or 
                provide benefits (other than participation in 
                professional development and enrichment programs) to, 
                teachers who are not hired under this section.
                    ``(B) Exception.--Funds made available under this 
                section may be used to pay the salaries of teachers 
                hired under section 306 of the Department of Education 
                Appropriations Act, 2001 or section 2123(a)(2).
    ``(e) Reports.--
            ``(1) State activities.--Each State receiving funds under 
        this section shall prepare and submit to the Secretary a 
        biennial report on activities carried out in the State under 
        this section that provides the information described in section 
        5122(b) with respect to the activities.
            ``(2) Progress concerning class size and qualified 
        teachers.--Each State and local educational agency receiving 
        funds under this section shall annually report to parents and 
        the public, in numeric form as compared to the previous year, 
        on--
                    ``(A) the agency's progress in reducing class size, 
                and increasing the percentage of classes in core 
                academic areas taught by highly qualified teachers; and
                    ``(B) the impact that hiring additional highly 
                qualified teachers and reducing class size, has had, if 
                any, on increasing student academic achievement.
    ``(f) Private Schools.--If a local educational agency uses funds 
made available under this section for professional development 
activities, the agency shall ensure the equitable participation of 
private nonprofit elementary schools and secondary schools in such 
activities in accordance with section 5142. Section 5142 shall not 
apply to other activities carried out under this section.
    ``(g) Administrative Expenses.--A local educational agency that 
receives funds under this section may use not more than 3 percent of 
such funds for local administrative costs.
    ``(h) Application.--Each local educational agency that desires to 
receive funds under this section shall submit an application to the 
State educational agency at such time, in such manner, and containing 
such information as the State educational agency may require. Each such 
application shall include a description of the agency's program to 
reduce class size by hiring additional highly qualified teachers.
    ``(i) Certification, Licensing, and Competency.--No funds made 
available under this section may be used to pay the salary of any 
teacher unless such teacher is highly qualified.
    ``(j) Definition.--In this section, the term `certified' includes 
certification through State or local alternative routes.

``SEC. 2502. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part, 
$2,537,000,000 for fiscal year 2004, $3,452,000,000 for fiscal year 
2005, $4,336,000,000 for fiscal year 2006, and $5,281,000,000 for each 
of fiscal years 2007 and 2008.

               ``PART F--PRINCIPAL LEADERSHIP DEVELOPMENT

``SEC. 2601. PROFESSIONAL DEVELOPMENT FOR PRINCIPALS AS LEADERS OF 
              SCHOOL REFORM.

    ``(a) Competitive Grants.--The Secretary is authorized to award, on 
a competitive basis, grants to eligible partnerships--
            ``(1) consisting of--
                    ``(A) one or more institutions of higher education 
                that provide professional development for principals 
                and other school administrators; and
                    ``(B) one or more local educational agencies; and
            ``(2) that may include other entities, agencies, and 
        organizations, such as a State educational agency, a State 
        agency for higher education, and professional organizations for 
        principals, administrators, teachers, and parents.
    ``(b) Application.--An eligible partnership that desires to receive 
a grant under this section shall submit an application to the Secretary 
at such time, in such form, and containing such information as the 
Secretary may require. Each such application shall include--
            ``(1) a description of the activities the partnership will 
        carry out to meet the purpose of this part;
            ``(2) a description of how those activities will build on 
        and be coordinated with other professional development 
        activities, including activities under this title and title II 
        of the Higher Education Act of 1965;
            ``(3) a description of how principals, teachers, and other 
        interested parties were involved in developing the application 
        and will be involved in planning and carrying out the 
        activities under this section; and
            ``(4) a description of how the professional development 
        will result in the acquisition of a license, degree, or 
        continuing education unit.
    ``(c) Use of Funds.--An eligible partnership that receives a grant 
under this section shall use the grant funds to provide professional 
development to principals and other school administrators to enable 
them to be effective school leaders and prepare all students to achieve 
to challenging State content and student performance standards, 
including professional development on--
            ``(1) comprehensive school reform;
            ``(2) leadership skills;
            ``(3) recruitment, assignment, retention, and evaluation of 
        teacher and other instructional staff;
            ``(4) State content standards;
            ``(5) effective instructional practice;
            ``(6) using smaller classes effectively; and
            ``(7) parental and community involvement.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part, $100,000,000 for fiscal year 2004, 
and such sums as may be necessary for each of the 4 succeeding fiscal 
years.''.

           Subchapter B--National Board Certification Program

SEC. 3431. PURPOSE.

    It is the purpose of this subchapter to assist 105,000 elementary 
school or secondary school teachers in becoming board certified by the 
year 2008.

SEC. 3432. GRANTS TO EXPAND PARTICIPATION IN THE NATIONAL BOARD 
              CERTIFICATION PROGRAM.

    (a) Definitions.--The terms used in this section have the meanings 
given the terms in section 9101 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801).
    (b) Grants Authorized.--From amounts appropriated under subsection 
(f), the Secretary shall award grants to States to enable such States 
to provide subsidies to elementary school and secondary school teachers 
who enroll in the certification program of the National Board for 
Professional Teaching Standards.
    (c) Application.--To be eligible to receive a grant under 
subsection (b), a State shall prepare and submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require.
    (d) Amount of Grant.--The amount of a grant awarded to a State 
under subsection (b) shall be determined by the Secretary.
    (e) Use of Funds.--
            (1) In general.--A State shall use amounts received under a 
        grant under this section to provide a subsidy to an eligible 
        teacher who enrolls and completes the teaching certification 
        program of the National Board for Professional Teaching 
        Standards.
            (2) Eligibility.--
                    (A) In general.--To be eligible to receive a 
                subsidy under this section an individual shall--
                            (i) be a teacher in an elementary school or 
                        secondary school, served by a local educational 
                        agency that meets the eligibility requirements 
                        described in subparagraph (B), in the State 
                        involved;
                            (ii) prepare and submit to the State an 
                        application at such time, in such manner, and 
                        containing such information as the State may 
                        require; and
                            (iii) certify to the State that the 
                        individual intends to enroll and complete the 
                        teaching certification program of the National 
                        Board for Professional Teaching Standards.
                    (B) Local educational agency.--A local educational 
                agency described in subparagraph (A)(i) is a local 
                educational agency that--
                            (i) serves low achieving students as 
                        measured by low graduation rates or low scores 
                        on assessment exams;
                            (ii) has a low teacher retention rate in 
                        the schools served by the local educational 
                        agency;
                            (iii) has a high rate of out-of-field 
                        placement of teachers in the schools served by 
                        the local educational agency; and
                            (iv) has a shortage of teachers of 
                        mathematics or physical science in the schools 
                        served by the local educational agency.
            (3) Amount of subsidy.--Subject to the availability of 
        funds, a State shall provide a teacher who has an application 
        approved under paragraph (2) with a subsidy in an amount equal 
        to 90 percent of the cost of enrollment in the program 
        described in paragraph (2)(A)(iii).
    (f) Appropriations.--There are authorized to be appropriated to 
carry out this section, $37,800,000 for each of the fiscal years 2004 
through 2008.

          Subchapter C--Student Loan Forgiveness for Teachers

SEC. 3441. STUDENT LOAN FORGIVENESS FOR TEACHERS.

    (a) Guaranteed Loans.--Section 428J of the Higher Education Act of 
1965 (20 U.S.C. 1078-10) is amended to read as follows:

``SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.

    ``(a) Statement of Purpose.--It is the purpose of this section to 
encourage individuals to enter and continue in the teaching profession.
    ``(b) Program Authorized.--The Secretary shall carry out a program, 
through the holder of the loan, of assuming the obligation to repay in 
accordance with subsection (c) a qualified loan amount for a loan made 
under section 428 or 428H for any borrower who--
            ``(1) is employed as a full-time teacher during the 
        academic year beginning in calendar year 2003 or during any 
        subsequent academic year--
                    ``(A) in a school that qualifies under section 
                465(a)(2)(A) for loan cancellation for Perkins loan 
                recipients who teach in such schools;
                    ``(B) if employed as a secondary school teacher, is 
                teaching--
                            ``(i) a subject area that is relevant to 
                        the borrower's academic major as certified by 
                        the chief administrative officer of the public 
                        or nonprofit private secondary school in which 
                        the borrower is employed; or
                            ``(ii) special education or bilingual 
                        education;
                    ``(C) if employed as an elementary school teacher, 
                has demonstrated, as certified by the chief 
                administrative officer of the public or nonprofit 
                private elementary school in which the borrower is 
                employed, knowledge and teaching skills in reading, 
                writing, mathematics, special education, bilingual 
                education, or other areas of the elementary school 
                curriculum; and
                    ``(D) is highly qualified, as such term is defined 
                in section 9101 of the Elementary and Secondary 
                Education Act of 1965; and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.
    ``(c) Qualified Loans Amount.--
            ``(1) In general.--Of the aggregate loan obligations of a 
        borrower on loans made under section 428 or 428H that are 
        outstanding after the completion of the first complete school 
        year of teaching described in subsection (b)(1) for which the 
        borrower applies for repayment under this section, the 
        Secretary shall repay not more than--
                    ``(A) $3,000 for each of the first and second such 
                complete school years;
                    ``(B) $4,000 for the third such complete school 
                year; and
                    ``(C) $5,000 for each of the fourth and fifth such 
                complete school years.
            ``(2) Treatment of consolidation loans.--A loan amount for 
        a loan made under section 428C may be a qualified loan amount 
        for the purposes of this subsection only to the extent that 
        such loan amount was used to repay a Federal Direct Stafford 
        Loan, a Federal Direct Unsubsidized Stafford Loan, or a loan 
        made under section 428 or 428H for a borrower who meets the 
        requirements of subsection (b), as determined in accordance 
        with regulations prescribed by the Secretary.
    ``(d) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize any refunding of any repayment of a loan.
    ``(f) List.--If the list of schools in which a teacher may perform 
service pursuant to subsection (b) is not available before May 1 of any 
year, the Secretary may use the list for the year preceding the year 
for which the determination is made to make such service determination.
    ``(g) Additional Eligibility Provisions.--
            ``(1) Continued eligibility.--Any teacher who performs 
        service in a school that--
                    ``(A) meets the requirements of subsection 
                (b)(1)(A) in any year during such service; and
                    ``(B) in a subsequent year fails to meet the 
                requirements of such subsection,
        may continue to teach in such school and shall be eligible for 
        loan forgiveness pursuant to subsection (b).
            ``(2) Prevention of double benefits.--No borrower may, for 
        the same service, receive a benefit under both this subsection 
        and subtitle D of title I of the National and Community Service 
        Act of 1990 (42 U.S.C. 12571 et seq.). No borrower may receive 
        a reduction of loan obligations under both this section and 
        section 460.
    ``(h) Definition.--For purposes of this section, the term `year', 
where applied to service as a teacher, means an academic year as 
defined by the Secretary.''.
    (b) Direct Loans.--Section 460 of such Act (20 U.S.C. 1087j) is 
amended to read as follows:

``SEC. 460. LOAN FORGIVENESS FOR TEACHERS.

    ``(a) Statement of Purpose.--It is the purpose of this section to 
encourage individuals to enter and continue in the teaching profession.
    ``(b) Program Authorized.--The Secretary shall carry out a program 
of canceling the obligation to repay a qualified loan amount in 
accordance with subsection (c) for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans made under this part for any 
borrower who--
            ``(1) is employed as a full-time teacher during the 
        academic year beginning in calendar year 2003 or during any 
        subsequent academic year--
                    ``(A) in a school that qualifies under section 
                465(a)(2)(A) for loan cancellation for Perkins loan 
                recipients who teach in such schools;
                    ``(B) if employed as a secondary school teacher, is 
                teaching--
                            ``(i) a subject area that is relevant to 
                        the borrower's academic major as certified by 
                        the chief administrative officer of the public 
                        or nonprofit private secondary school in which 
                        the borrower is employed; or
                            ``(ii) special education or bilingual 
                        education;
                    ``(C) if employed as an elementary school teacher, 
                has demonstrated, as certified by the chief 
                administrative officer of the public or nonprofit 
                private elementary school in which the borrower is 
                employed, knowledge and teaching skills in reading, 
                writing, mathematics, special education, bilingual 
                education, and other areas of the elementary school 
                curriculum; and
                    ``(D) is highly qualified, as such term is defined 
                in section 9101 of the Elementary and Secondary 
                Education Act of 1965; and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.
    ``(c) Qualified Loans Amount.--
            ``(1) In general.--Of the aggregate loan obligations of a 
        borrower on Federal Direct Stafford Loans and Federal Direct 
        Unsubsidized Stafford Loans made under this part that are 
        outstanding after the completion of the first complete school 
        year of teaching described in subsection (b)(1) for which the 
        borrower applies for cancellation under this section, the 
        Secretary shall cancel not more than--
                    ``(A) $3,000 for each of the first and second such 
                complete school years;
                    ``(B) $4,000 for the third such complete school 
                year; and
                    ``(C) $5,000 for each of the fourth and fifth such 
                complete school years.
            ``(2) Treatment of consolidation loans.--A loan amount for 
        a Federal Direct Consolidation Loan may be a qualified loan 
        amount for the purposes of this subsection only to the extent 
        that such loan amount was used to repay a Federal Direct 
        Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or 
        a loan made under section 428 or 428H, for a borrower who meets 
        the requirements of subsection (b), as determined in accordance 
        with regulations prescribed by the Secretary.
    ``(d) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize any refunding of any repayment of a loan.
    ``(f) List.--If the list of schools in which a teacher may perform 
service pursuant to subsection (b) is not available before May 1 of any 
year, the Secretary may use the list for the year preceding the year 
for which the determination is made to make such service determination.
    ``(g) Additional Eligibility Provisions.--
            ``(1) Continued eligibility.--Any teacher who performs 
        service in a school that--
                    ``(A) meets the requirements of subsection 
                (b)(1)(A) in any year during such service; and
                    ``(B) in a subsequent year fails to meet the 
                requirements of such subsection,
        may continue to teach in such school and shall be eligible for 
        loan forgiveness pursuant to subsection (b).
            ``(2) Prevention of double benefits.--No borrower may, for 
        the same service, receive a benefit under both this subsection 
        and subtitle D of title I of the National and Community Service 
        Act of 1990 (42 U.S.C. 12571 et seq.). No borrower may receive 
        a reduction of loan obligations under both this section and 
        section 428J.
    ``(h) Definition.--For purposes of this section, the term `year', 
where applied to service as a teacher, means an academic year as 
defined by the Secretary.''.

                     CHAPTER 4--SCHOOL CONSTRUCTION

                Subchapter A--School Modernization Bonds

SEC. 3451. SHORT TITLE.

    This subchapter may be cited as the ``America's Better Classroom 
Act of 2003''.

SEC. 3452. EXPANSION OF INCENTIVES FOR PUBLIC SCHOOLS.

    (a) In General.--Chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following:

         ``Subchapter Z--Public School Modernization Provisions

                              ``Sec. 1400M. Credit to holders of 
                                        qualified public school 
                                        modernization bonds.
                              ``Sec. 1400N. Qualified school 
                                        construction bonds.
                              ``Sec. 1400O. Qualified zone academy 
                                        bonds.

``SEC. 1400M. CREDIT TO HOLDERS OF QUALIFIED PUBLIC SCHOOL 
              MODERNIZATION BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
qualified public school modernization bond on a credit allowance date 
of such bond which occurs during the taxable year, there shall be 
allowed as a credit against the tax imposed by this chapter for such 
taxable year an amount equal to the sum of the credits determined under 
subsection (b) with respect to credit allowance dates during such year 
on which the taxpayer holds such bond.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified public school modernization bond is 25 percent 
        of the annual credit determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified public school modernization bond is 
        the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (1), the applicable credit rate with respect to an issue is the 
        rate equal to an average market yield (as of the day before the 
        date of issuance of the issue) on outstanding long-term 
        corporate debt obligations (determined under regulations 
        prescribed by the Secretary).
            ``(4) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under part 
                IV of subchapter A (other than subpart C thereof, 
                relating to refundable credits).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year.
    ``(d) Qualified Public School Modernization Bond; Credit Allowance 
Date.--For purposes of this section--
            ``(1) Qualified public school modernization bond.--The term 
        `qualified public school modernization bond' means--
                    ``(A) a qualified zone academy bond, and
                    ``(B) a qualified school construction bond.
            ``(2) Credit allowance date.--The term `credit allowance 
        date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
    ``(e) Other Definitions.--For purposes of this subchapter--
            ``(1) Local educational agency.--The term `local 
        educational agency' has the meaning given to such term by 
        section 9101 of the Elementary and Secondary Education Act of 
        1965. Such term includes the local educational agency that 
        serves the District of Columbia but does not include any other 
        State agency.
            ``(2) Bond.--The term `bond' includes any obligation.
            ``(3) State.--The term `State' includes the District of 
        Columbia and any possession of the United States.
            ``(4) Public school facility.--The term `public school 
        facility' shall not include--
                    ``(A) any stadium or other facility primarily used 
                for athletic contests or exhibitions or other events 
for which admission is charged to the general public, or
                    ``(B) any facility which is not owned by a State or 
                local government or any agency or instrumentality of a 
                State or local government.
    ``(f) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(g) Bonds Held by Regulated Investment Companies.--If any 
qualified public school modernization bond is held by a regulated 
investment company, the credit determined under subsection (a) shall be 
allowed to shareholders of such company under procedures prescribed by 
the Secretary.
    ``(h) Credits May Be Stripped.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--There may be a separation (including at 
        issuance) of the ownership of a qualified public school 
        modernization bond and the entitlement to the credit under this 
        section with respect to such bond. In case of any such 
        separation, the credit under this section shall be allowed to 
        the person who on the credit allowance date holds the 
        instrument evidencing the entitlement to the credit and not to 
        the holder of the bond.
            ``(2) Certain rules to apply.--In the case of a separation 
        described in paragraph (1), the rules of section 1286 shall 
        apply to the qualified public school modernization bond as if 
        it were a stripped bond and to the credit under this section as 
        if it were a stripped coupon.
    ``(i) Treatment for Estimated Tax Purposes.--Solely for purposes of 
sections 6654 and 6655, the credit allowed by this section to a 
taxpayer by reason of holding a qualified public school modernization 
bond on a credit allowance date shall be treated as if it were a 
payment of estimated tax made by the taxpayer on such date.
    ``(j) Credit May Be Transferred.--Nothing in any law or rule of law 
shall be construed to limit the transferability of the credit allowed 
by this section through sale and repurchase agreements.
    ``(k) Reporting.--Issuers of qualified public school modernization 
bonds shall submit reports similar to the reports required under 
section 149(e).
    ``(l) Termination.--This section shall not apply to any bond issued 
after September 30, 2008.

``SEC. 1400N. QUALIFIED SCHOOL CONSTRUCTION BONDS.

    ``(a) Qualified School Construction Bond.--For purposes of this 
subchapter, the term `qualified school construction bond' means any 
bond issued as part of an issue if--
            ``(1) 95 percent or more of the proceeds of such issue are 
        to be used for the construction, rehabilitation, or repair of a 
        public school facility or for the acquisition of land on which 
        such a facility is to be constructed with part of the proceeds 
        of such issue,
            ``(2) the bond is issued by a State or local government 
        within the jurisdiction of which such school is located,
            ``(3) the issuer designates such bond for purposes of this 
        section, and
            ``(4) the term of each bond which is part of such issue 
        does not exceed 15 years.
    ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds issued during any calendar year which 
may be designated under subsection (a) by any issuer shall not exceed 
the sum of--
            ``(1) the limitation amount allocated under subsection (d) 
        for such calendar year to such issuer, and
            ``(2) if such issuer is a large local educational agency 
        (as defined in subsection (e)(4)) or is issuing on behalf of 
        such an agency, the limitation amount allocated under 
        subsection (e) for such calendar year to such agency.
    ``(c) National Limitation on Amount of Bonds Designated.--There is 
a national qualified school construction bond limitation for each 
calendar year. Such limitation is--
            ``(1) $11,000,000,000 for 2004,
            ``(2) $11,000,000,000 for 2005, and
            ``(3) except as provided in subsection (f), zero after 
        2005.
    ``(d) 60 Percent of Limitation Allocated Among States.--
            ``(1) In general.--60 percent of the limitation applicable 
        under subsection (c) for any calendar year shall be allocated 
        by the Secretary among the States in proportion to the 
        respective numbers of children in each State who have attained 
        age 5 but not age 18 for the most recent fiscal year ending 
        before such calendar year. The limitation amount allocated to a 
        State under the preceding sentence shall be allocated by the 
        State to issuers within such State and such allocations may be 
        made only if there is an approved State application.
            ``(2) Minimum allocations to states.--
                    ``(A) In general.--The Secretary shall adjust the 
                allocations under this subsection for any calendar year 
                for each State to the extent necessary to ensure that 
                the sum of--
                            ``(i) the amount allocated to such State 
                        under this subsection for such year, and
                            ``(ii) the aggregate amounts allocated 
                        under subsection (e) to large local educational 
                        agencies in such State for such year,
                is not less than an amount equal to such State's 
                minimum percentage of the amount to be allocated under 
                paragraph (1) for the calendar year.
                    ``(B) Minimum percentage.--A State's minimum 
                percentage for any calendar year is the minimum 
                percentage described in section 1124(d) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6334(d)) for such State for the most recent 
                fiscal year ending before such calendar year.
            ``(3) Allocations to certain possessions.--The amount to be 
        allocated under paragraph (1) to any possession of the United 
        States other than Puerto Rico shall be the amount which would 
        have been allocated if all allocations under paragraph (1) were 
        made on the basis of respective populations of individuals 
        below the poverty line (as defined by the Office of Management 
        and Budget). In making other allocations, the amount to be 
        allocated under paragraph (1) shall be reduced by the aggregate 
        amount allocated under this paragraph to possessions of the 
        United States.
            ``(4) Allocations for indian schools.--In addition to the 
        amounts allocated under this subsection, $200,000,000 for 
        calendar year 2004, and $200,000,000 for calendar year 2005, 
        shall be allocated by the Secretary of the Interior for 
        purposes of the construction, rehabilitation, and repair of 
        schools funded by the Bureau of Indian Affairs. In the case of 
        amounts allocated under the preceding sentence, Indian tribal 
        governments (as defined in section 7871) shall be treated as 
        qualified issuers for purposes of this subchapter.
            ``(5) Approved state application.--For purposes of 
        paragraph (1), the term `approved State application' means an 
        application which is approved by the Secretary of Education and 
        which includes--
                    ``(A) the results of a recent publicly available 
                survey (undertaken by the State with the involvement of 
                local education officials, members of the public, and 
                experts in school construction and management) of such 
                State's needs for public school facilities, including 
                descriptions of--
                            ``(i) health and safety problems at such 
                        facilities,
                            ``(ii) the capacity of public schools in 
                        the State to house projected enrollments, and
                            ``(iii) the extent to which the public 
                        schools in the State offer the physical 
                        infrastructure needed to provide a high-quality 
                        education to all students, and
                    ``(B) a description of how the State will allocate 
                to local educational agencies, or otherwise use, its 
                allocation under this subsection to address the needs 
                identified under subparagraph (A), including a 
                description of how it will--
                            ``(i) ensure that the needs of both rural 
                        and urban areas will be recognized,
                            ``(ii) give highest priority to localities 
                        with the greatest needs, as demonstrated by 
                        inadequate school facilities coupled with a low 
                        level of resources to meet those needs,
                            ``(iii) use its allocation under this 
                        subsection to assist localities that lack the 
                        fiscal capacity to issue bonds on their own, 
                        and
                            ``(iv) ensure that its allocation under 
                        this subsection is used only to supplement, and 
                        not supplant, the amount of school 
                        construction, rehabilitation, and repair in the 
                        State that would have occurred in the absence 
                        of such allocation.
        Any allocation under paragraph (1) by a State shall be binding 
        if such State reasonably determined that the allocation was in 
        accordance with the plan approved under this paragraph.
    ``(e) 40 Percent of Limitation Allocated Among Largest School 
Districts.--
            ``(1) In general.--40 percent of the limitation applicable 
        under subsection (c) for any calendar year shall be allocated 
        under paragraph (2) by the Secretary among local educational 
        agencies which are large local educational agencies for such 
        year. No qualified school construction bond may be issued by 
        reason of an allocation to a large local educational agency 
        under the preceding sentence unless such agency has an approved 
        local application.
            ``(2) Allocation formula.--The amount to be allocated under 
        paragraph (1) for any calendar year shall be allocated among 
        large local educational agencies in proportion to the 
        respective amounts each such agency received for Basic Grants 
        under subpart 2 of part A of title I of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for 
        the most recent fiscal year ending before such calendar year.
            ``(3) Allocation of unused limitation to state.--The amount 
        allocated under this subsection to a large local educational 
        agency for any calendar year may be reallocated by such agency 
        to the State in which such agency is located for such calendar 
        year. Any amount reallocated to a State under the preceding 
        sentence may be allocated as provided in subsection (d)(1).
            ``(4) Large local educational agency.--For purposes of this 
        section, the term `large local educational agency' means, with 
        respect to a calendar year, any local educational agency if 
        such agency is--
                    ``(A) among the 100 local educational agencies with 
                the largest numbers of children aged 5 through 17 from 
                families living below the poverty level, as determined 
                by the Secretary using the most recent data available 
                from the Department of Commerce that are satisfactory 
                to the Secretary, or
                    ``(B) 1 of not more than 25 local educational 
                agencies (other than those described in subparagraph 
                (A)) that the Secretary of Education determines (based 
                on the most recent data available satisfactory to the 
                Secretary) are in particular need of assistance, based 
                on a low level of resources for school construction, a 
                high level of enrollment growth, or such other factors 
                as the Secretary deems appropriate.
            ``(5) Approved local application.--For purposes of 
        paragraph (1), the term `approved local application' means an 
        application which is approved by the Secretary of Education and 
        which includes--
                    ``(A) the results of a recent publicly available 
                survey (undertaken by the local educational agency or 
                the State with the involvement of school officials, 
                members of the public, and experts in school 
                construction and management) of such agency's needs for 
                public school facilities, including descriptions of--
                            ``(i) the overall condition of the local 
                        educational agency's school facilities, 
                        including health and safety problems,
                            ``(ii) the capacity of the agency's schools 
                        to house projected enrollments, and
                            ``(iii) the extent to which the agency's 
                        schools offer the physical infrastructure 
                        needed to provide a high-quality education to 
                        all students,
                    ``(B) a description of how the local educational 
                agency will use its allocation under this subsection to 
                address the needs identified under subparagraph (A), 
                and
                    ``(C) a description of how the local educational 
                agency will ensure that its allocation under this 
                subsection is used only to supplement, and not 
                supplant, the amount of school construction, 
                rehabilitation, or repair in the locality that would 
                have occurred in the absence of such allocation.
        A rule similar to the rule of the last sentence of subsection 
        (d)(5) shall apply for purposes of this paragraph.
    ``(f) Carryover of Unused Limitation.--If for any calendar year--
            ``(1) the amount allocated under subsection (d) to any 
        State, exceeds
            ``(2) the amount of bonds issued during such year which are 
        designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the 
following calendar year shall be increased by the amount of such 
excess. A similar rule shall apply to the amounts allocated under 
subsection (d)(5) or (e).
    ``(g) Special Rules Relating to Arbitrage.--
            ``(1) In general.--A bond shall not be treated as failing 
        to meet the requirement of subsection (a)(1) solely by reason 
        of the fact that the proceeds of the issue of which such bond 
        is a part are invested for a temporary period (but not more 
        than 36 months) until such proceeds are needed for the purpose 
        for which such issue was issued.
            ``(2) Binding commitment requirement.--Paragraph (1) shall 
        apply to an issue only if, as of the date of issuance, there is 
        a reasonable expectation that--
                    ``(A) at least 10 percent of the proceeds of the 
                issue will be spent within the 6-month period beginning 
                on such date for the purpose for which such issue was 
                issued, and
                    ``(B) the remaining proceeds of the issue will be 
                spent with due diligence for such purpose.
            ``(3) Earnings on proceeds.--Any earnings on proceeds 
        during the temporary period shall be treated as proceeds of the 
        issue for purposes of applying subsection (a)(1) and paragraph 
        (1) of this subsection.

``SEC. 1400O. QUALIFIED ZONE ACADEMY BONDS.

    ``(a) Qualified Zone Academy Bond.--For purposes of this 
subchapter--
            ``(1) In general.--The term `qualified zone academy bond' 
        means any bond issued as part of an issue if--
                    ``(A) 95 percent or more of the proceeds of such 
                issue are to be used for a qualified purpose with 
                respect to a qualified zone academy established by a 
                local educational agency,
                    ``(B) the bond is issued by a State or local 
                government within the jurisdiction of which such 
                academy is located,
                    ``(C) the issuer--
                            ``(i) designates such bond for purposes of 
                        this section,
                            ``(ii) certifies that it has written 
                        assurances that the private business 
                        contribution requirement of paragraph (2) will 
                        be met with respect to such academy, and
                            ``(iii) certifies that it has the written 
                        approval of the local educational agency for 
                        such bond issuance, and
                    ``(D) the term of each bond which is part of such 
                issue does not exceed 15 years.
        Rules similar to the rules of section 1400N(g) shall apply for 
        purposes of paragraph (1).
            ``(2) Private business contribution requirement.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the private business contribution requirement of this 
                paragraph is met with respect to any issue if the local 
                educational agency that established the qualified zone 
                academy has written commitments from private entities 
                to make qualified contributions having a present value 
                (as of the date of issuance of the issue) of not less 
                than 10 percent of the proceeds of the issue.
                    ``(B) Qualified contributions.--For purposes of 
                subparagraph (A), the term `qualified contribution' 
                means any contribution (of a type and quality 
                acceptable to the local educational agency) of--
                            ``(i) equipment for use in the qualified 
                        zone academy (including state-of-the-art 
                        technology and vocational equipment),
                            ``(ii) technical assistance in developing 
                        curriculum or in training teachers in order to 
                        promote appropriate market driven technology in 
                        the classroom,
                            ``(iii) services of employees as volunteer 
                        mentors,
                            ``(iv) internships, field trips, or other 
                        educational opportunities outside the academy 
                        for students, or
                            ``(v) any other property or service 
                        specified by the local educational agency.
            ``(3) Qualified zone academy.--The term `qualified zone 
        academy' means any public school (or academic program within a 
        public school) which is established by and operated under the 
        supervision of a local educational agency to provide education 
        or training below the postsecondary level if--
                    ``(A) such public school or program (as the case 
                may be) is designed in cooperation with business to 
                enhance the academic curriculum, increase graduation 
                and employment rates, and better prepare students for 
                the rigors of college and the increasingly complex 
                workforce,
                    ``(B) students in such public school or program (as 
                the case may be) will be subject to the same academic 
                standards and assessments as other students educated by 
                the local educational agency,
                    ``(C) the comprehensive education plan of such 
                public school or program is approved by the local 
                educational agency, and
                    ``(D)(i) such public school is located in an 
                empowerment zone or enterprise community (including any 
                such zone or community designated after the date of 
                enactment of this section), or
                    ``(ii) there is a reasonable expectation (as of the 
                date of issuance of the bonds) that at least 35 percent 
                of the students attending such school or participating 
                in such program (as the case may be) will be eligible 
                for free or reduced-cost lunches under the school lunch 
                program established under the Richard B. Russell 
                National School Lunch Act.
            ``(4) Qualified purpose.--The term `qualified purpose' 
        means, with respect to any qualified zone academy--
                    ``(A) constructing, rehabilitating, or repairing 
                the public school facility in which the academy is 
                established,
                    ``(B) acquiring the land on which such facility is 
                to be constructed with part of the proceeds of such 
                issue,
                    ``(C) providing equipment for use at such academy,
                    ``(D) developing course materials for education to 
                be provided at such academy, and
                    ``(E) training teachers and other school personnel 
                in such academy.
    ``(b) Limitations on Amount of Bonds Designated.--
            ``(1) In general.--There is a national zone academy bond 
        limitation for each calendar year. Such limitation is--
                    ``(A) $400,000,000 for 1998,
                    ``(B) $400,000,000 for 1999,
                    ``(C) $400,000,000 for 2000,
                    ``(D) $400,000,000 for 2001,
                    ``(E) $400,000,000 for 2002,
                    ``(F) $400,000,000 for 2003,
                    ``(G) $1,400,000,000 for 2004,
                    ``(H) $1,400,000,000 for 2005, and
                    ``(I) except as provided in paragraph (3), zero 
                after 2005.
            ``(2) Allocation of limitation.--
                    ``(A) Allocation among states.--
                            ``(i) 1998, 1999, 2000, 2001, 2002  and 
                        2003 limitations.--The national zone academy 
                        bond limitations for calendar years 1998, 1999, 
                        2000, 2001, 2002 and 2003 shall be allocated by 
                        the Secretary among the States on the basis of 
                        their respective populations of individuals 
                        below the poverty line (as defined by the 
                        Office of Management and Budget).
                            ``(ii) Limitation after 2003.--The national 
                        zone academy bond limitation for any calendar 
                        year after 2003 shall be allocated by the 
                        Secretary among the States in proportion to the 
                        respective amounts each such State received for 
                        Basic Grants under subpart 2 of part A of title 
                        I of the Elementary and Secondary Education Act 
                        of 1965 (20 U.S.C. 6331 et seq.) for the most 
                        recent fiscal year ending before such calendar 
                        year.
                    ``(B) Allocation to local educational agencies.--
                The limitation amount allocated to a State under 
                subparagraph (A) shall be allocated by the State to 
                qualified zone academies within such State.
                    ``(C) Designation subject to limitation amount.--
                The maximum aggregate face amount of bonds issued 
                during any calendar year which may be designated under 
                subsection (a) with respect to any qualified zone 
                academy shall not exceed the limitation amount 
                allocated to such academy under subparagraph (B) for 
                such calendar year.
            ``(3) Carryover of unused limitation.--If for any calendar 
        year--
                    ``(A) the limitation amount under this subsection 
                for any State, exceeds
                    ``(B) the amount of bonds issued during such year 
                which are designated under subsection (a) (or the 
                corresponding provisions of prior law) with respect to 
                qualified zone academies within such State,
        the limitation amount under this subsection for such State for 
        the following calendar year shall be increased by the amount of 
        such excess.''.
    (b) Reporting.--Subsection (d) of section 6049 of the Internal 
Revenue Code of 1986 (relating to returns regarding payments of 
interest) is amended by adding at the end the following:
            ``(8) Reporting of credit on qualified public school 
        modernization bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 1400M(f) and such amounts 
                shall be treated as paid on the credit allowance date 
                (as defined in section 1400M(d)(2)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
(J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
    (c) Conforming Amendments.--
            (1) Subchapter U of chapter 1 of the Internal Revenue Code 
        of 1986 is amended by striking part IV, by redesignating part V 
        as part IV, and by redesignating section 1397F as section 
        1397E.
            (2) The table of subchapters for chapter 1 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following:

                              ``Subchapter Z. Public school 
                                        modernization provisions.''.
            (3) The table of parts of subchapter U of chapter 1 of the 
        Internal Revenue Code of 1986 is amended by striking the last 2 
        items and inserting the following:

                              ``Part IV. Regulations.''.
    (d) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        obligations issued after December 31, 2002.
            (2) Repeal of restriction on zone academy bond holders.--In 
        the case of bonds to which section 1397E of the Internal 
        Revenue Code of 1986 (as in effect before the date of enactment 
        of this Act) applies, the limitation of such section to 
        eligible taxpayers (as defined in subsection (d)(6) of such 
        section) shall not apply after the date of enactment of this 
        Act.

SEC. 3453. APPLICATION OF CERTAIN LABOR STANDARDS ON CONSTRUCTION 
              PROJECTS FINANCED UNDER PUBLIC SCHOOL MODERNIZATION 
              PROGRAM.

    Section 439 of the General Education Provisions Act (relating to 
labor standards) (20 U.S.C. 1232b) is amended--
            (1) by inserting ``(a)'' before ``All laborers and 
        mechanics''; and
            (2) by adding at the end the following:
    ``(b)(1) For purposes of this section, the term `applicable 
program' also includes the qualified zone academy bond provisions 
enacted by section 226 of the Taxpayer Relief Act of 1997 and the 
program established by section 3452 of the America's Better Classroom 
Act of 2003.
    ``(2) A State or local government participating in a program 
described in paragraph (1) shall--
            ``(A) in the awarding of contracts, give priority to 
        contractors with substantial numbers of employees residing in 
        the local education area to be served by the school being 
        constructed; and
            ``(B) include in the construction contract for such school 
        a requirement that the contractor give priority in hiring new 
        workers to individuals residing in such local education area.
    ``(3) In the case of a program described in paragraph (1), nothing 
in this subsection or subsection (a) shall be construed to deny any tax 
credit allowed under such program. If amounts are required to be 
withheld from contractors to pay wages to which workers are entitled, 
such amounts shall be treated as expended for construction purposes in 
determining whether the requirements of such program are met.''.

           Subchapter B--Schools as Centers of the Community

SEC. 3461. FINDINGS.

    Congress makes the following findings:
            (1) Communities across the Nation need to build and 
        modernize thousands of public elementary schools and secondary 
        schools in the coming decade in ways that reflect new 
        approaches to teaching and learning, and in ways that reflect 
        the fact that learning is a lifelong process for persons of all 
        ages. These schools can make an enduring difference for these 
        communities by affecting not just students but entire 
        neighborhoods for generations.
            (2) The National Symposium on School Design has recommended 
        that local educational agencies hold community dialogues that 
        discuss the planning and design of their new school buildings. 
        Community partnerships of parents, educators, architects, urban 
        planners, students, and other interested parties can assist 
        local educational agencies to design new schools that better 
        meet the needs of their communities now and in the future.
            (3) Establishing such community partnerships for the 
        purpose of broadening public participation in the planning and 
        design of schools encourages broader community involvement in 
        the schools, generates creativity in the planning process, and 
        promotes savings, cost-sharing, and the most effective use of 
        the school building by the entire community. Such partnerships 
        can help create schools that are centers of teaching and 
        learning for the entire community.

SEC. 3462. PURPOSE.

    The purpose of this subchapter is to assist local educational 
agencies and their communities to increase the involvement of parents, 
teachers, students, and community groups in the planning and design of 
new and renovated public elementary school and secondary school 
buildings that--
            (1) enhance teaching and learning, and accommodate the 
        needs of all learners;
            (2) serve as a center of the community;
            (3) promote health, safety, and security;
            (4) effectively use all available resources; and
            (5) are flexible and can accommodate changing community 
        needs.

SEC. 3463. PROGRAM AUTHORIZED.

    (a) Grants Authorized.--
            (1) In general.--From funds appropriated under section 
        3476, the Secretary shall award grants to local educational 
        agencies participating in eligible consortia to enable the 
        eligible consortia to support the planning and design of--
                    (A) new elementary school or secondary school 
                buildings; or
                    (B) the renovation of existing elementary school or 
                secondary school buildings.
            (2) Definition of eligible consortium.--In this subchapter, 
        the term ``eligible consortium'' means a consortium that--
                    (A) shall include at least 1 local educational 
                agency; and
                    (B) may include such organizations and individuals 
                as a State educational agency, a community-based 
                organization, a local government, a business or 
                industry, an architect, a parent, teacher, or senior 
                citizen group, a library, or a museum.
    (b) Requirements.--
            (1) Duration.--Grants under this subchapter shall be 
        awarded for not more than 1 year.
            (2) Limitation.--Not more than 1 grant provided under this 
        subchapter may be used to plan or design the same school.
            (3) Matching.--A grant under this subchapter shall not be 
        used to pay for more than 50 percent of the cost of a planning 
        or design project. A recipient of a grant under this subchapter 
        shall provide at least 50 percent of the cost of the planning 
        or design project from non-Federal sources, which may include 
        in-kind contributions, fairly evaluated.
    (c) Geographic Distribution.--In awarding grants under this 
subchapter, the Secretary is authorized to take such steps as are 
necessary to ensure an equitable geographic distribution of the grants, 
including distributing the grants among rural, urban, and suburban 
local educational agencies.

SEC. 3464. USE OF FUNDS.

    A grant under this subchapter shall be used by a local educational 
agency to support the planning or design of a new school building, or 
of the renovation of an existing school building, and may be used for 
activities such as--
            (1) community outreach activities (including the 
        development and circulation of explanatory materials and the 
        cost of meetings) designed to encourage greater participation 
        by the community;
            (2) the development, with the involvement of all 
        stakeholders, of a master plan for a school district; and
            (3) necessary administrative support for the eligible 
        consortium.

SEC. 3465. APPLICATIONS.

    (a) In General.--Each local educational agency desiring a grant 
under this subchapter shall submit to the Secretary an application at 
such time, and containing such information, as the Secretary may 
require.
    (b) Contents.--Each application submitted under this subchapter 
shall describe--
            (1) the community to be served by the new or renovated 
        school, including the needs of that community with respect to 
        such school;
            (2) the individuals and groups that compose the eligible 
        consortium and their respective functions;
            (3) the project activities to be supported by the grant and 
        how the activities will help meet the needs of that community 
        and the purpose of this subchapter; and
            (4) the availability of resources for the project, and how 
        the resources will be obtained.

SEC. 3466. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this 
subchapter $10,000,000 for fiscal year 2004, and such sums as may be 
necessary for each of the 4 succeeding fiscal years.

            CHAPTER 5--CHILD OPPORTUNITY ZONE FAMILY CENTERS

SEC. 3471. CHILD OPPORTUNITY ZONE FAMILY CENTERS.

    Title V of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7201 et seq.), as amended by section 3401, is further amended by 
inserting after part E the following:

            ``PART F--CHILD OPPORTUNITY ZONE FAMILY CENTERS

``SEC. 5751. SHORT TITLE.

    ``This part may be cited as the `Child Opportunity Zone Family 
Center Act'.

``SEC. 5752. PURPOSE.

    ``The purpose of this part is to encourage eligible partnerships to 
establish or expand child opportunity zone family centers in public 
elementary schools and secondary schools in order to provide 
comprehensive support services for children and their families, and to 
improve the children's educational, health, mental health, and social 
outcomes.

``SEC. 5753. DEFINITIONS.

    ``In this part:
            ``(1) Child opportunity zone family center.--The term 
        `child opportunity zone family center' means a school-based or 
        school-linked community service center that provides and links 
        children and their families with comprehensive information, 
        support, services, and activities to improve the education, 
        health, mental health, safety, and economic well-being of the 
        children and their families.
            ``(2) Eligible partnership.--The term `eligible 
        partnership' means a partnership--
                    ``(A) that contains--
                            ``(i) at least 1 public elementary school 
                        or secondary school that--
                                    ``(I) receives assistance under 
                                title I and for which a measure of 
                                poverty determination is made under 
                                section 1113(a)(5) with respect to a 
                                minimum of 40 percent of the children 
                                in the school; and
                                    ``(II) demonstrates parent 
                                involvement and parent support for the 
                                partnership's activities;
                            ``(ii) a local educational agency;
                            ``(iii) a public agency, other than a local 
                        educational agency, such as a local or State 
                        department of health, mental health, or social 
                        services;
                            ``(iv) a nonprofit community-based 
                        organization, providing health, mental health, 
                        or social services;
                            ``(v) a local child care resource and 
                        referral agency; and
                            ``(vi) a local organization representing 
                        parents; and
                    ``(B) that may contain--
                            ``(i) an institution of higher education; 
                        and
                            ``(ii) other public or private nonprofit 
                        entities with experience in providing services 
                        to disadvantaged families.

``SEC. 5754. GRANTS AUTHORIZED.

    ``(a) In General.--The Secretary may award, on a competitive basis, 
grants to eligible partnerships to pay for the Federal share of the 
cost of establishing and expanding child opportunity zone family 
centers.
    ``(b) Duration.--The Secretary shall award grants under this 
section for periods of 5 years.

``SEC. 5755. REQUIRED ACTIVITIES.

    ``Each eligible partnership receiving a grant under this part shall 
use the grant funds--
            ``(1) in accordance with the needs assessment described in 
        section 5756(b)(1), to provide or link children and their 
        families with information, support, activities, or services in 
        core areas such as education, child care, before- and after-
        school care and enrichment programs, health services, mental 
        health services, family support, nutrition, literacy services, 
        parenting skills, and dropout prevention;
            ``(2) to provide intensive, high-quality, research-based 
        programs that--
                    ``(A) provide violence prevention education for 
                families and developmentally appropriate instructional 
                services to children (including children below the age 
                of compulsory school attendance); and
                    ``(B) provide effective strategies for nurturing 
                and supporting the emotional, social, and cognitive 
                growth of children; and
            ``(3) to provide training, information, and support to 
        families to enable the families to participate effectively in 
        their children's education, and to help their children meet 
        challenging standards, including assisting families to--
                    ``(A) understand the applicable accountability 
                systems, including State and local content standards, 
                performance standards, and assessments, their 
                children's educational performance in comparison to the 
                standards, and the steps the school is taking to 
                address the children's needs and to help the children 
                meet the standards; and
                    ``(B) communicate effectively with personnel 
                responsible for providing educational services to the 
                families' children, and to participate in the 
                development and implementation of school-parent 
                compacts, parent involvement policies, and school 
                plans.

``SEC. 5756. APPLICATIONS.

    ``(a) In General.--Each eligible partnership desiring a grant under 
this part shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require.
    ``(b) Contents.--Each application submitted pursuant to subsection 
(a) shall--
            ``(1) include a needs assessment, including a description 
        of how the partnership will ensure that the activities to be 
        assisted under this part will be tailored to meet the specific 
        needs of the children and families to be served;
            ``(2) describe arrangements that have been formalized 
        between the participating public elementary school or secondary 
        school, and other partnership members;
            ``(3) describe how the partnership will effectively 
        coordinate with the centers under section 1118 and utilize 
        Federal, State, and local sources of funding that provide 
        assistance to families and their children;
            ``(4) describe the partnership's plan to--
                    ``(A) develop and carry out the activities assisted 
                under this part with extensive participation of 
                parents, administrators, teachers, pupil services 
                personnel, social and human service agencies, and 
                community organizations and leaders; and
                    ``(B) coordinate the activities assisted under this 
                part with the education reform efforts of the 
                participating public elementary school or secondary 
                school, and the participating local educational agency;
            ``(5) describe how the partnership will ensure that 
        underserved populations such as families of students with 
        limited English proficiency, and families of students with 
        disabilities, are effectively involved, informed, and assisted;
            ``(6) describe how the partnership will collect and analyze 
        data, and will utilize specific performance measures and 
        indicators to--
                    ``(A) determine the impact of activities assisted 
                under this part as described in section 5759(a); and
                    ``(B) improve the activities assisted under this 
                part; and
            ``(7) describe how the partnership will protect the privacy 
        of families and their children participating in the activities 
        assisted under this part.

``SEC. 5757. FEDERAL SHARE.

    ``The Federal share of the cost of establishing and expanding child 
opportunity zone family centers--
            ``(1) for the first year for which an eligible partnership 
        receives assistance under this part shall not exceed 90 
        percent;
            ``(2) for the second such year, shall not exceed 80 
        percent;
            ``(3) for the third such year, shall not exceed 70 percent;
            ``(4) for the fourth such year, shall not exceed 60 
        percent; and
            ``(5) for the fifth such year, shall not exceed 50 percent.

``SEC. 5758. FUNDING.

    ``(a) Continuation of Funding.--Each eligible partnership that 
receives a grant under this part shall, after the third year for which 
the partnership receives funds through the grant, be eligible to 
continue to receive the funds if the Secretary determines that the 
partnership has made significant progress in meeting the performance 
measures used for the partnership's local evaluation under section 
5759(a).
    ``(b) Limitation on Use of Funds To Offset Other Programs.--
Notwithstanding any other provision of law, none of the funds received 
under a grant under this part may be used to pay for expenses related 
to any other Federal program, including treating such funds as an 
offset against such a Federal program.

``SEC. 5759. EVALUATIONS AND REPORTS.

    ``(a) Local Evaluations.--Each partnership receiving funds under 
this part shall conduct annual evaluations and submit to the Secretary 
reports containing the results of the evaluations. The reports shall 
include the results of the partnership's performance assessment 
effectiveness in reaching and meeting the needs of families and 
children served under this part, including performance measures 
demonstrating--
            ``(1) improvements in areas such as student achievement, 
        family participation in schools, and access to health care, 
        mental health care, child care, and family support services, 
        resulting from activities assisted under this part; and
            ``(2) reductions in such areas as violence among youth, 
        truancy, suspension, and dropout rates, resulting from 
        activities assisted under this part.
    ``(b) National Evaluations.--The Secretary shall reserve not more 
than 3 percent of the amount appropriated under this part to carry out 
a national evaluation of the effectiveness of the activities assisted 
under this part. Such evaluation shall be completed not later than 3 
years after the date of enactment of the Child Opportunity Zone Family 
Center Act, and every year thereafter and shall be submitted to 
Congress.
    ``(c) Exemplary Activities.--The Secretary shall broadly 
disseminate information on exemplary activities developed under this 
part.

``SEC. 5760. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$100,000,000 for fiscal year 2004, and such sums as may be necessary 
for each of the fiscal years 2005 through 2008.''.

         TITLE IV--FAIR START--LIFTING CHILDREN OUT OF POVERTY

               Subtitle A--Expanding the Child Tax Credit

SEC. 4001. EXPANSION OF CHILD TAX CREDIT; CREDIT MADE PARTIALLY 
              REFUNDABLE.

    (a) Increase in Amount Allowed.--Paragraph (2) of section 24(a) of 
the Internal Revenue Code of 1986 (relating to child tax credit) is 
amended to read as follows:
            ``(2) Per child amount.--For purposes of paragraph (1), the 
        per child amount shall be determined as follows:

``In the case of any taxable year       The per child amount is--
        beginning in--
    2001 or 2002..................................              $  600 
    2003..........................................                 700 
    2004..........................................                 800 
    2005..........................................                 900 
    2006 or thereafter............................            1,000.''.

    (b) Portion of Child Credit Treated as Refundable.--
            (1) In general.--Paragraph (1) of section 24(d) of the 
        Internal Revenue Code of 1986 (relating portion of credit 
        refundable) is amended to read as follows:
            ``(1) In general.--The aggregate credits allowed to a 
        taxpayer under subpart C shall be increased by the sum of the 
        credits allowable under this section for all qualifying 
        children of the taxpayer (determined without regard to this 
        subsection and the limitation under subsection (b)(3) 
(subsection 26(a) for taxable years beginning before 2004)). The amount 
of the credit allowed under this subsection shall not be treated as a 
credit allowed under this subpart and shall reduce the amount of credit 
otherwise allowable under subsection (a) without regard to subsection 
(b)(3) (subsection 26(a) for taxable years beginning before 2004).''.
            (2) Conforming amendments.--
                    (A) Section 24(d) of such Code is amended by 
                striking paragraphs (2) and (3).
                    (B) The heading for section 24(d) of such Code is 
                amended to read as follows: ``Additional Credit for 
                Certain Families.--''.
    (c) Coordination With Federal Means-Tested Programs.--Section 24(d) 
of the Internal Revenue Code of 1986 (relating to additional credit for 
certain families), as amended by subsection (b), is amended by adding 
at the end the following new paragraph:
            ``(2) Coordination with means-tested programs.--For 
        purposes of any benefits, assistance, or supportive services 
        under any Federal program or under any State or local program 
        financed, in whole or in part, with Federal funds or with State 
        funds, taken into account under any maintenance of effort 
        requirements, which imposes income limitations on eligibility 
        for such program, any refund made to an individual (or the 
        spouse of an individual) by reason of this subsection shall not 
        be treated as income (and shall not be taken into account in 
        determining resources for the month of its receipt and the 
        following month).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.

         Subtitle B--Strengthening the Earned Income Tax Credit

SEC. 4101. SHORT TITLE.

    This subtitle may be cited as the ``Tax Relief for Working Families 
Act''.

SEC. 4102. INCREASED EARNED INCOME TAX CREDIT FOR 2 OR MORE QUALIFYING 
              CHILDREN.

    (a) In General.--The table in section 32(b)(1)(A) of the Internal 
Revenue Code of 1986 (relating to percentages) is amended--
            (1) in the second item--
                    (A) by striking ``or more'', and
                    (B) by striking ``21.06'' and inserting ``19.06'', 
                and
            (2) by inserting after the second item the following:


``3 or more qualifying children..........  45.............................                19.06''.
 

      
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.

SEC. 4103. SIMPLIFICATION OF DEFINITION OF EARNED INCOME.

    (a) In General.--Section 32(c)(2)(B) of the Internal Revenue Code 
of 1986 (defining earned income) is amended by striking ``and'' at the 
end of clause (iv), by striking the period at the end of clause (v) and 
inserting ``, and'', and by adding at the end the following:
                            ``(vi) the requirement under subparagraph 
                        (A)(i) that an amount be includible in gross 
                        income shall not apply if such amount is exempt 
                        from tax under section 7873 or is derived 
                        directly from restricted and allotted land 
                        under the Act of February 8, 1887 (commonly 
                        known as the Indian General Allotment Act) (25 
                        U.S.C. 331 et seq.) or from land held under 
                        Acts or treaties containing an exception 
                        provision similar to the Indian General 
                        Allotment Act.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts received in taxable years beginning after December 31, 
2002.

SEC. 4104. SIMPLIFICATION OF DEFINITION OF CHILD DEPENDENT.

    (a) Removal of Support Test for Certain Individuals.--Section 
152(a) of the Internal Revenue Code of 1986 (relating to general 
definition) is amended to read as follows:
    ``(a) General Definition.--For purposes of this subtitle--
            ``(1) Dependent.--The term `dependent' means--
                    ``(A) any individual described in paragraph (2) 
                over half of whose support, for the calendar year in 
                which the taxable year of the taxpayer begins, was 
                received from the taxpayer (or is treated under 
                subsection (c) as received from the taxpayer), or
                    ``(B) any individual described in subsection (f).
            ``(2) Individuals.--An individual is described in this 
        paragraph if such individual is--
                    ``(A) a brother, sister, stepbrother, or stepsister 
                of the taxpayer,
                    ``(B) the father or mother of the taxpayer, or an 
                ancestor of either,
                    ``(C) a stepfather or stepmother of the taxpayer,
                    ``(D) a son or daughter of a brother or sister of 
                the taxpayer,
                    ``(E) a brother or sister of the father or mother 
                of the taxpayer,
                    ``(F) a son-in-law, daughter-in-law, father-in-law, 
                mother-in-law, brother-in-law, or sister-in-law of the 
                taxpayer, or
                    ``(G) an individual (other than an individual who 
                at any time during the taxable year was the spouse, 
                determined without regard to section 7703, of the 
                taxpayer) who, for the taxable year of the taxpayer, 
                has as their principal place of abode the home of the 
                taxpayer and is a member of the taxpayer's 
                household.''.
    (b) Other Modifications.--Section 152 of the Internal Revenue Code 
of 1986 (relating to dependent defined) is amended by adding at the end 
the following:
    ``(f) Subsection (f) Dependents.--
            ``(1) In general.--An individual is described in this 
        subsection for the taxable year if such individual--
                    ``(A) bears a relationship to the taxpayer 
                described in paragraph (2),
                    ``(B) except in the case of an eligible foster 
                child or as provided in subsection (e), has the same 
                principal place of abode as the taxpayer for more than 
                one-half of such taxable year, and
                    ``(C)(i) has not attained the age of 19 at the 
                close of the calendar year in which the taxable year 
                begins, or
                    ``(ii) is a student (within the meaning of section 
                151(c)(4)) who has not attained the age of 24 at the 
                close of such calendar year.
            ``(2) Relationship test.--An individual bears a 
        relationship to the taxpayer described in this paragraph if 
        such individual is--
                    ``(A) a son or daughter of the taxpayer, or a 
                descendant of either, or
                    ``(B) a stepson or stepdaughter of the taxpayer.
            ``(3) Special rules.--
                    ``(A) 2 or more claiming dependent.--Except as 
                provided in subparagraph (B), if an individual may be 
                claimed as a dependent by 2 or more taxpayers (but for 
                this subparagraph) for a taxable year beginning in the 
                same calendar year, only the taxpayer with the highest 
                adjusted gross income for such taxable year shall be 
                allowed the deduction with respect to such individual.
                    ``(B) Release of claim to exemption.--Subparagraph 
                (A) shall not apply with respect to an individual if--
                            ``(i) the taxpayer with the highest 
                        adjusted gross income under subparagraph (A), 
                        for any calendar year signs a written 
                        declaration (in such manner and form as the 
                        Secretary may by regulations prescribe) that 
                        such taxpayer will not claim such individual as 
                        a dependent for any taxable year beginning in 
                        such calendar year,
                            ``(ii) the other taxpayer provides over 
                        half of such individual's support for the 
                        calendar year in which the taxable year of such 
                        other taxpayer begins, and
                            ``(iii) such other taxpayer attaches such 
                        written declaration to such taxpayer's return 
                        for the taxable year beginning during such 
                        calendar year.''.
    (c) Rules Relating to Foster Child.--Section 152(b)(2) of the 
Internal Revenue Code of 1986 (relating to rules relating to general 
definition) is amended by striking ``a foster child'' and all that 
follows through ``individual)'' and inserting ``an eligible foster 
child (as defined in section 32(c)(3)(B)(iii)) of an individual''.
    (d) Exemption From Gross Income Test.--Section 151(c)(3) of the 
Internal Revenue Code of 1986 (relating to definition of child) is 
amended by inserting ``or a descendant of such individual'' after 
``taxpayer''.
    (e) Waiver of Deduction for Divorced Parents.--
            (1) In general.--So much of section 152(e) of the Internal 
        Revenue Code of 1986 as precedes paragraph (4) is amended to 
        read as follows:
    ``(e) Special Rules for Child of Divorced Parents.--
            ``(1) Release of claim to exemption.--In the case of a 
        child (as defined in section 151(c)(3)) of parents--
                    ``(A) who are divorced or legally separated under a 
                decree of divorce or separate maintenance,
                    ``(B) who are separated under a written separation 
                agreement, or
                    ``(C) who live apart at all times during the last 6 
                months of the calendar year,
        the custodial parent who is entitled to the deduction under 
        section 151 for a taxable year with respect to such child may 
        release such deduction to the noncustodial parent.
            ``(2) Procedure.--The noncustodial parent may claim a child 
        described in paragraph (1) as a dependent for the taxable year 
        if--
                    ``(A) the custodial parent signs a written 
                declaration (in such manner and form as the Secretary 
                may by regulations prescribe) that such custodial 
                parent will not claim such child as a dependent for any 
                taxable year beginning in such calendar year,
                    ``(B) the custodial parent and the noncustodial 
                parent provide over half of such child's support for 
                the calendar year in which the taxable years of such 
                parents begin, and
                    ``(C) the noncustodial parent attaches such written 
                declaration to such noncustodial parent's return for 
                the taxable year beginning during such calendar year.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) Custodial parent.--The term `custodial 
                parent' means, with regard to an individual, a parent 
                who has custody of such individual for a greater 
                portion of the calendar year than the noncustodial 
                parent.
                    ``(B) Noncustodial parent.--The term `noncustodial 
                parent' means the parent who is not the custodial 
                parent.''.
            (2) Pre-1985 instruments.--Section 152(e)(4)(A) of such 
        Code (relating to exception for certain pre-1985 instruments) 
        is amended by striking ``A child'' and all that follows through 
        ``noncustodial parent'' and inserting ``A noncustodial parent 
        described in paragraph (1) shall be entitled to the deduction 
under section 151 for a taxable year with respect to a child ''.
    (f) Conforming Amendments.--
            (1) Section 1(g)(5)(A) of the Internal Revenue Code of 1986 
        is amended by inserting ``as in effect on the day before the 
        date of the enactment of the Tax Relief for Working Families 
        Act'' after ``152(e)''.
            (2) Section 2(b)(1)(A)(i) of such Code is amended by 
        striking ``paragraph (2) or (4) of''.
            (3) Section 2(b)(3)(B)(i) of such Code is amended by 
        striking ``paragraph (9)'' and inserting ``paragraph (2)(G)''.
            (4) Section 21(e)(5)(A) of such Code is amended by striking 
        ``paragraph (2) or (4) of''.
            (5) Section 21(e)(5) of such Code is amended in the matter 
        following subclause (B) by inserting ``as in effect on the day 
        before the date of the enactment of the Tax Relief for Working 
        Families Act'' after ``152(e)(1)''.
            (6) Section 32(c)(1)(G) of such Code is amended by striking 
        ``(3)(D).'' and inserting ``(1)(C). An individual whose 
        qualifying child or qualifying children are not taken into 
        account under subsection (b) solely by reason of paragraph 
        (3)(D) shall be treated as an eligible individual if such 
        individual otherwise meets the requirements of subparagraph 
        (A)(ii).''.
            (7) Section 32(c)(3)(B)(ii) of such Code is amended by 
        striking ``paragraph (2) or (4) of''.
            (8) Section 35(d)(2) of such Code is amended--
                    (A) by striking ``paragraph (2) or (4) of'', and
                    (B) by inserting ``as in effect on the day before 
                the date of the enactment of the Tax Relief for Working 
                Families Act'' after ``152(e)(1)''.
            (9) Section 51(i)(1)(C) of such Code is amended by striking 
        ``152(a)(9)'' and inserting ``152(a)(2)(G)''.
            (10) Section 152(b)(2) of such Code is amended by striking 
        ``specified in subsection (a)'' and inserting ``specified in 
        subsection (a)(2) or (f)(2)''.
            (11) Section 152(c) of such Code is amended by striking 
        ``(a)'' and inserting ``(a)(1)''.
            (12) Section 7703(b)(1) of such Code is amended by striking 
        ``paragraph (2) or (4) of''.
            (13) The following provisions of such Code are each amended 
        by striking ``paragraphs (1) through (8) of section 152(a)'' 
        and inserting ``subparagraphs (A) through (F) of subsection 
        (a)(2) or subsection (f)(2) of section 152'':
                    (A) Section 170(g)(3).
                    (B) Subparagraphs (A) and (B) of section 51(i)(1).
                    (C) The second sentence of section 213(d)(11).
                    (D) Section 529(e)(2)(B).
                    (E) Section 7702B(f)(2)(C)(iii).
    (g) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.

SEC. 4105. MODIFICATION OF JOINT RETURN REQUIREMENT FOR EARNED INCOME 
              TAX CREDIT.

    (a) In General.--Section 32(d) of the Internal Revenue Code of 1986 
(relating to married individuals) is amended to read as follows:
    ``(d) Married Individuals.--
            ``(1) In general.--If the taxpayer is married at the close 
        of the taxable year, the credit shall be allowed under 
        subsection (a) only if the taxpayer and his spouse file a joint 
        return for the taxable year.
            ``(2) Marital status.--For purposes of paragraph (1), an 
        individual legally separated from his spouse under a decree of 
        divorce or of separate maintenance shall not be considered as 
        married.
            ``(3) Certain married individuals living apart.--For 
        purposes of paragraph (1), if--
                    ``(A) an individual--
                            ``(i) is married and files a separate 
                        return, and
                            ``(ii) has a qualifying child who is a son, 
                        daughter, stepson, or stepdaughter of such 
                        individual, and
                    ``(B) during the last 6 months of such taxable 
                year, such individual and such individual's spouse do 
                not have the same principal place of abode,
        such individual shall not be considered as married.''.
    (b) Effective Dates.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.

          Subtitle C--Expanding the Dependent Care Tax Credit

SEC. 4201. DEPENDENT CARE TAX CREDIT.

    (a) Dependent Care Services.--Subpart C of part IV of subchapter A 
of chapter 1 of the Internal Revenue Code of 1986 (relating to 
refundable credits), as amended by section 4001(b)(1), is amended by 
redesignating section 36 as section 37 and by inserting after section 
35 the following new section:

``SEC. 36. DEPENDENT CARE SERVICES.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an individual who 
        maintains a household which includes as a member 1 or more 
        qualifying individuals, there shall be allowed as a credit 
        against the tax imposed by this subtitle for the taxable year 
        an amount equal to the applicable percentage of the sum of--
                    ``(A) the employment-related expenses paid by such 
                individual during the taxable year, plus
                    ``(B) the respite care expenses paid by such 
                individual during the taxable year.
            ``(2) Applicable percentage defined.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `applicable percentage' means 50 percent 
                reduced (but not below 20 percent) by 1 percentage 
                point for each full $1,000 amount by which the 
                taxpayer's adjusted gross income for the taxable year 
                exceeds $15,000.
                    ``(B) Cost-of-living adjustment.--
                            ``(i) In general.--In the case of a taxable 
                        year beginning in a calendar year after 2002, 
                        subparagraph (A) shall be applied by increasing 
                        the $15,000 amount contained therein by the 
                        cost-of-living adjustment (as defined in 
                        section 1(f)(3)) for such calendar year 
                        determined by substituting `2001' for `1992' in 
                        subparagraph (B) of section 1(f)(3).
                            ``(ii) Rounding.--If any increase 
                        determined under clause (i) is not a multiple 
                        of $10, such increase shall be rounded to the 
                        nearest multiple of $10 (or if such increase is 
                        a multiple of $5, such increase shall be 
                        increased to the next highest multiple of $10).
    ``(b) Employment-Related Expenses.--For purposes of this section--
            ``(1) Determination of eligible expenses.--
                    ``(A) In general.--The term `employment-related 
                expenses' means amounts paid for the following 
                expenses, but only if such expenses are incurred to 
                enable the taxpayer to be gainfully employed for any 
                period for which there are 1 or more qualifying 
                individuals with respect to the taxpayer:
                            ``(i) expenses for household services, and
                            ``(ii) expenses for the care of a 
                        qualifying individual.
                Such term shall not include any amount paid for 
                services outside the taxpayer's household at a camp 
                where the qualifying individual stays overnight and 
                shall not include any respite care expense taken into 
                account under subsection (a).
                    ``(B) Exception.--Employment-related expenses 
                described in subparagraph (A) which are incurred for 
                services outside the taxpayer's household shall be 
                taken into account only if incurred for the care of--
                            ``(i) a qualifying individual described in 
                        subsection (d)(1), or
                            ``(ii) a qualifying individual (not 
                        described in subsection (d)(1)) who regularly 
                        spends at least 8 hours each day in the 
                        taxpayer's household.
                    ``(C) Dependent care centers.--Employment-related 
                expenses described in subparagraph (A) which are 
                incurred for services provided outside the taxpayer's 
                household by a dependent care center (as defined in 
                subparagraph (D)) shall be taken into account only if--
                            ``(i) such center complies with all 
                        applicable laws and regulations of a State or 
                        unit of local government, and
                            ``(ii) the requirements of subparagraph (B) 
                        are met.
                    ``(D) Dependent care center defined.--For purposes 
                of this paragraph, the term `dependent care center' 
                means any facility which--
                            ``(i) provides care for more than 6 
                        individuals (other than individuals who reside 
                        at the facility), and
                            ``(ii) receives a fee, payment, or grant 
                        for providing services for any of the 
                        individuals (regardless of whether such 
                        facility is operated for profit).
            ``(2) Dollar limit on amount creditable.--
                    ``(A) In general.--The amount of the employment-
                related expenses incurred during any taxable year which 
                may be taken into account under subsection (a) shall 
                not exceed--
                            ``(i) $3,000 if there is 1 qualifying 
                        individual with respect to the taxpayer for 
                        such taxable year, or
                            ``(ii) $6,000 if there are 2 or more 
                        qualifying individuals with respect to the 
                        taxpayer for such taxable year.
                    ``(B) Reduction.--The amount determined under 
                clause (i) or (ii) of subparagraph (A) (whichever is 
                applicable) shall be reduced by--
                            ``(i) the aggregate amount excludable from 
                        gross income under section 129 for the taxable 
                        year, and
                            ``(ii) the amount of the respite care 
                        expenses taken into account by the taxpayer 
                        under subsection (a) for the taxable year.
            ``(3) Earned income limitation.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the amount of the employment-related 
                expenses incurred during any taxable year which may be 
                taken into account under subsection (a) shall not 
                exceed--
                            ``(i) in the case of an individual who is 
                        not married at the close of such year, such 
                        individual's earned income for such year, or
                            ``(ii) in the case of an individual who is 
                        married at the close of such year, the lesser 
                        of such individual's earned income or the 
                        earned income of his spouse for such year.
                    ``(B) Special rule for spouse who is a student or 
                incapable of caring for himself.--In the case of a 
                spouse who is a student or a qualified individual 
                described in subsection (d)(3), for purposes of 
                subparagraph (A), such spouse shall be deemed for each 
                month during which such spouse is a full-time student 
                at an educational institution, or is such a qualifying 
                individual, to be gainfully employed and to have earned 
                income of not less than--
                            ``(i) $200 if paragraph (2)(A)(i) applies 
                        for the taxable year, or
                            ``(ii) $400 if paragraph (2)(A)(ii) applies 
                        for the taxable year.
                In the case of any husband and wife, this subparagraph 
                shall apply with respect to only one spouse for any one 
                month.
    ``(c) Respite Care Expenses.--For purposes of this section--
            ``(1) In general.--The term `respite care expenses' means 
        expenses paid (whether or not to enable the taxpayer to be 
        gainfully employed) for--
                    ``(A) the care of a qualifying individual--
                            ``(i) who has attained the age of 13, or
                            ``(ii) who is under the age of 13 but has a 
                        physical or mental impairment which results in 
                        the individual being incapable of caring for 
                        himself,
                during any period when such individual regularly spends 
                at least 8 hours each day in the taxpayer's household, 
                or
                    ``(B) the care (for not more than 14 days during 
                the calendar year) of a qualifying individual described 
                in subparagraph (A) during any period during which the 
                individual does not regularly spend at least 8 hours 
                each day in the taxpayer's household.
            ``(2) Dollar limit.--The amount of the respite care 
        expenses incurred during any taxable year which may be taken 
        into account under subsection (a) shall not exceed--
                    ``(A) $1,200 if such expenses are incurred with 
                respect to only 1 qualifying individual for the taxable 
                year, or
                    ``(B) $2,400 if such expenses are incurred for 2 or 
                more qualifying individuals for such taxable year.
    ``(d) Qualifying Individual.--For purposes of this section, the 
term `qualifying individual' means--
            ``(1) a dependent of the taxpayer who is under the age of 
        13 and with respect to whom the taxpayer is entitled to a 
        deduction under section 151(c),
            ``(2) a dependent of the taxpayer who is physically or 
        mentally incapable of caring for himself, or
            ``(3) the spouse of the taxpayer, if he is physically or 
        mentally incapable of caring for himself.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Maintaining household.--An individual shall be 
        treated as maintaining a household for any period only if over 
        half the cost of maintaining the household for such period is 
        furnished by such individual (or, if such individual is married 
        during such period, is furnished by such individual and his 
        spouse).
            ``(2) Married couples must file joint return.--If the 
        taxpayer is married at the close of the taxable year, the 
        credit shall be allowed under subsection (a) only if the 
        taxpayer and his spouse file a joint return for the taxable 
        year.
            ``(3) Marital status.--An individual legally separated from 
        his spouse under a decree of divorce or of separate maintenance 
        shall not be considered as married.
            ``(4) Certain married individuals living apart.--If--
                    ``(A) an individual who is married and who files a 
                separate return--
                            ``(i) maintains as his home a household 
                        that constitutes for more than one-half of the 
                        taxable year the principal place of abode of a 
                        qualifying individual, and
                            ``(ii) furnishes over half the cost of 
                        maintaining such household during the taxable 
                        year, and
                    ``(B) during the last 6 months of such taxable year 
                such individual's spouse is not a member of such 
                household,
        such individual shall not be considered as married.
            ``(5) Special dependency test in case of divorced parents, 
        etc.--If--
                    ``(A) section 152(e) applies to any child with 
                respect to any calendar year, and
                    ``(B) such child is under the age of 13 or is 
                physically or mentally incapable of caring for himself,
        in the case of any taxable year beginning in such calendar 
        year, such child shall be treated as a qualifying individual 
        with respect to the custodial parent (within the meaning of 
        section 152(e)(1) as in effect on the day before the date of 
        the enactment of the Tax Relief for Working Families Act), and 
        shall not be treated as a qualifying individual with respect to 
        the noncustodial parent.
            ``(6) Payments to related individuals.--No credit shall be 
        allowed under subsection (a) for any amount paid by the 
        taxpayer to an individual--
                    ``(A) with respect to whom, for the taxable year, a 
                deduction under section 151(c) (relating to deduction 
                for personal exemptions for dependents) is allowable 
                either to the taxpayer or his spouse, or
                    ``(B) who is a child of the taxpayer (within the 
                meaning of section 151(c)(3)) who has not attained the 
                age of 19 at the close of the taxable year.
        For purposes of this paragraph, the term `taxable year' means 
        the taxable year of the taxpayer in which the service is 
        performed.
            ``(7) Student.--The term `student' means an individual who 
        during each of 5 calendar months during the taxable year is a 
        full-time student at an educational organization.
            ``(8) Educational organization.--The term `educational 
        organization' means an educational organization described in 
        section 170(b)(1)(A)(ii).
            ``(9) Identifying information required with respect to 
        service provider.--No credit shall be allowed under subsection 
        (a) for any amount paid to any person unless--
                    ``(A) the name, address, and taxpayer 
                identification number of such person are included on 
                the return claiming the credit, or
                    ``(B) if such person is an organization described 
                in section 501(c)(3) and exempt from tax under section 
                501(a), the name and address of such person are 
                included on the return claiming the credit.
        In the case of a failure to provide the information required 
        under the preceding sentence, the preceding sentence shall not 
        apply if it is shown that the taxpayer exercised due diligence 
        in attempting to provide the information so required.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the purposes of this section.''.
    (b) Conforming Amendments.--
            (1) Section 21 of such Code is repealed.
            (2) Section 23(f)(1) of such Code, section 129(a)(2)(C) of 
        such Code, and section 35(g)(6) are each amended by striking 
        ``section 21(e)'' and inserting ``section 36(e)''.
            (3) Section 129(b)(2) of such Code is amended by striking 
        ``section 21(d)(2)'' and inserting ``section 36(b)(3)(B)''.
            (4) Section 129(e)(1) of such Code is amended by striking 
        ``under section 21(b)(2) (relating to expenses for household 
        and dependent care services necessary for gainful employment)'' 
        and inserting ``or respite care services under section 36 
        (relating to dependent care services)''.
            (5) Section 213(e) of such Code is amended by striking 
        ``section 21'' and inserting ``section 36''.
            (6) Section 6213(g)(2)(H) of such Code is amended by 
        striking ``section 21 (related to expenses for household and 
        dependent care services necessary for gainful employment)'' and 
        inserting ``section 36 (relating to dependent care services)''.
            (7) Section 6213(g)(2)(L) of such Code is amended by 
        striking ``21, 24 or 32'' and inserting ``24, 32, or 36''.
    (c) Technical Amendments.--(1) The table of sections for subpart C 
of part IV of subchapter A of chapter 1 of such Code is amended by 
striking the item relating to section 36 and inserting the following:

                              ``Sec. 36. Dependent care services.
                              ``Sec. 37. Overpayments of tax.''.
    (2) The table of sections for subpart A of such part IV is amended 
by striking the item relating to section 21.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.

    TITLE V--FAIR START--SUPPORT TO PROMOTE WORK AND REDUCE POVERTY

                   Subtitle A--Gateways Grant Program

SEC. 5001. GATEWAYS GRANT PROGRAM.

    (a) Purposes.--The purposes of this section are to--
            (1) inform low-income families with children about programs 
        available to families leaving welfare and other programs to 
        support low-income families with children;
            (2) provide incentives to States and counties to improve 
        and coordinate application and renewal procedures for low-
        income family with children support programs; and
            (3) track the extent to which low-income families with 
        children receive the benefits and services for which they are 
        eligible.
    (b) Definitions.--In this section:
            (1) Locality.--The term locality means a municipality that 
        does not administer a temporary assistance for needy families 
        program funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.) (in this section referred to as 
        ``TANF'').
            (2) Low-income family with children support program.--The 
        term ``low-income family with children support program'' means 
        a program designed to provide low-income families with 
        assistance or benefits to enable the family to become self-
        sufficient and includes--
                    (A) TANF;
                    (B) the food stamp program established under the 
                Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) (in this 
                section referred to as ``food stamps'');
                    (C) the medicaid program funded under title XIX of 
                the Social Security Act (42 U.S.C. 1396 et seq.);
                    (D) the State children's health insurance program 
                (SCHIP) funded under title XXI of the Social Security 
                Act (42 U.S.C. 1397aa et seq.);
                    (E) the child care program funded under the Child 
                Care Development Block Grant Act of 1990 (42 U.S.C. 
                9858 et seq.);
                    (F) the child support program funded under part D 
                of title IV of the Social Security Act (42 U.S.C. 651 
                et seq.);
                    (G) the earned income tax credit under section 32 
                of the Internal Revenue Code of 1986;
                    (H) the low-income home energy assistance program 
                (LIHEAP) established under the Low-Income Home Energy 
                Assistance Act of 1981 (42 U.S.C 8621 et seq.);
                    (I) the special supplemental nutrition program for 
                women, infants, and children (WIC) established under 
                section 17 of the Child Nutrition Act of 1966 (42 
                U.S.C. 1786);
                    (J) programs under the Workforce Investment Act of 
                1998 (29 U.S.C. 2801 et seq.); and
                    (K) any other Federal or State funded program 
                designed to provide family and work support to low-
                income families with children.
            (3) Nonprofit.--The term ``nonprofit'', as applied to a 
        school, agency, organization, or institution means a school, 
        agency, organization, or institution owned and operated by 1 or 
        more nonprofit corporations or associations, no part of the net 
        earnings of which inures, or may lawfully inure, to the benefit 
        of any private shareholder or individual.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (5) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, American Samoa, Guam, and the 
        United States Virgin Islands.
    (c) Authorization of Grants.--
            (1) States and counties.--
                    (A) In general.--The Secretary is authorized to 
                award grants to States and counties to pay the Federal 
                share of the costs involved in improving the 
                administration of low-income family with children 
                support programs, including simplifying application, 
                recertification, reporting, and verification rules.
                    (B) Federal share.--The Federal share shall be 80 
                percent.
            (2) Nonprofits and localities.--The Secretary is authorized 
        to award grants to nonprofits and localities to distribute 
        information about and develop service centers for low-income 
        family with children support programs.
    (d) Grant Approval Criteria.--
            (1) In general.--The Secretary, in consultation with the 
        Secretary of Agriculture, shall establish criteria for approval 
        of an application for a grant under this section that include 
        consideration of--
                    (A) an applicant's record of serving low-income 
                populations;
                    (B) an applicant's ability to reach hard-to-serve 
                populations;
                    (C) the level of innovation in the applicant's 
                grant proposal; and
                    (D) any partnerships between the public and private 
                sector in the applicant's grant proposal.
            (2) Separate criteria.--Separate criteria shall be 
        established for the grants authorized under paragraphs (1) and 
        (2) of subsection (c).
    (e) Uses of Funds.--
            (1) States and counties.--
                    (A) Improvements in programs.--Grants awarded to 
                States and counties under subsection (c)(1) shall be 
                used to--
                            (i) simplify low-income family with 
                        children support program application, 
                        recertification, reporting, and verification 
                        rules;
                            (ii) create uniformity in eligibility 
                        criteria for low-income family with children 
                        support programs;
                            (iii) develop options for families to apply 
                        for low-income family with children support 
                        programs through the telephone, mail, 
                        facsimile, Internet, or electronic mail, and 
                        submit any recertifications or reports required 
                        for such families through these options;
                            (iv) co-locate eligibility workers for 
                        various low-income family with children support 
                        programs at strategically located sites; and
                            (v) develop or enhance one-stop service 
                        centers for low-income family with children 
                        support programs, including establishing 
                        evening and weekend hours at these centers.
                    (B) Customer surveys.--
                            (i) In general.--A grant awarded to a State 
                        or county under subsection (c)(1) shall be used 
                        to carry out a customer survey.
                            (ii) Model surveys.--The customer survey 
                        under clause (i) shall be modeled after a form 
                        developed by the Secretary under subsection 
                        (g).
                            (iii) Reports to secretary.--Not later than 
                        1 year after a State or county is awarded a 
                        grant under subsection (c)(1), and annually 
                        thereafter, the State or county shall submit a 
                        report to the Secretary detailing the results 
                        of the customer survey carried out under clause 
                        (i).
                            (iv) Reports to public.--A State or county 
                        receiving a grant under subsection (c)(1) and 
                        the Secretary shall make the report required 
                        under clause (iii) available to the public.
                            (v) Public comment.--A State or county 
                        receiving a grant under subsection (c)(1) shall 
                        accept public comments and hold public hearings 
                        on the report made available under clause (iv).
                    (C) Tracking systems.--
                            (i) In general.--A grant awarded to a State 
                        or county under subsection (c)(1) shall be used 
                        to implement a tracking system to determine the 
                        level of participation in low-income family 
                        with children support programs of the eligible 
                        population.
                            (ii) Reports.--Not later than 1 year after 
                        a State or county is awarded a grant under 
                        subsection (c)(1), and annually thereafter, the 
                        State or county shall submit a report to the 
                        Secretary detailing the effectiveness of the 
                        tracking system implemented under clause (i).
                    (D) Reporting.--A State or county awarded a grant 
                under subsection (c)(1) shall adopt the most favorable 
                options available under Federal law to reduce or 
                eliminate requirements for low-income families 
                receiving assistance under TANF or food stamps to 
                report changes in income, residence, or employment, 
                including such requirements as they relate to the 
                determination of State expenditures to meet TANF 
                maintenance of effort requirements.
                    (E) In-person interviews.--A State or county 
                awarded a grant under subsection (c)(1)--
                            (i) may expend funds made available under 
                        the grant to provide for reporting and 
                        recertification procedures through the 
                        telephone, mail, facsimile, Internet, or 
                        electronic mail; and
                            (ii) shall adopt the most favorable options 
                        available under Federal law to reduce or 
                        eliminate requirements for in-person interviews 
                        for redeterminations of eligibility for TANF or 
                        food stamps.
                    (F) Sharing documentation and verification 
                information.--A grant awarded to a State or county 
                under subsection (c)(1) shall be used to develop 
                procedures by which--
                            (i) a low-income family is relieved of the 
                        requirement to present documentation to 
                        establish eligibility for various low-income 
                        family with children support programs where 
                        information concerning the family's income 
                        exists in State databases and the family is 
                        provided adequate opportunity to review, 
                        correct, and contest such information;
                            (ii) a low-income family is given the 
                        option to present the same documentation to 
                        establish eligibility for various low-income 
                        family with children support programs; and
                            (iii) verification of the documentation 
                        presented under clause (ii) is shared among 
                        agencies with responsibility for the 
                        administration of low-income family with 
                        children support programs.
                    (G) Jurisdiction-wide implementation.--
                            (i) In general.--A grant awarded to a State 
                        or county under subsection (c)(1) shall be used 
                        for activities throughout the jurisdiction.
                            (ii) Exception.--A State or county awarded 
                        a grant under subsection (c)(1) may use grant 
                        funds to develop one-stop service centers and 
                        telephone, mail, facsimile, Internet, or 
                        electronic mail application and renewal 
                        procedures for low-income family with children 
                        support programs without regard to the 
                        requirements of clause (i).
                    (H) Supplement not supplant.--Funds provided to a 
                State or county under a grant awarded under subsection 
                (c)(1) shall be used to supplement and not supplant 
                other State or county public funds expended to provide 
                support services for low-income families.
            (2) Nonprofits and localities.--A grant awarded to a 
        nonprofit or locality under subsection (c)(2) shall be used 
        to--
                    (A) develop one-stop service centers for low-income 
                family with children support programs in cooperation 
                with States and counties; and
                    (B) provide information about and referrals to low-
                income family with children support programs through 
                the dissemination of materials at strategic locations, 
                including schools, clinics, and shopping locations.
    (f) Application.--
            (1) In general.--Each applicant desiring a grant under 
        paragraph (1) or (2) of subsection (c) shall submit an 
        application to the Secretary at such time, in such manner, and 
        accompanied by such information as the Secretary may reasonably 
        require.
            (2) States and counties.--
                    (A) Non-federal share.--Each State or county 
                applicant shall provide assurances that the applicant 
                will pay the non-Federal share of the activities for 
                which a grant is sought.
                    (B) Certification periods.--
                            (i) In general.--In order to receive a 
                        grant under subsection (c)(1), each State or 
                        county applicant shall provide assurances that 
                        the applicant will establish certification 
                        periods of at least 1 year for TANF and food 
                        stamps.
                            (ii) Exception.--The certification period 
                        under clause (i) may be extended to 2 years for 
                        households in which all members of the 
                        household are elderly or disabled.
                    (C) Partnerships.--Each State or county applicant 
                shall submit a memorandum of understanding 
                demonstrating that the applicant has entered into a 
                partnership to coordinate its efforts under the grant 
                with the efforts of other State and county agencies 
                that have responsibility for providing low-income 
                families with assistance or benefits.
    (g) Duties of the Secretary.--
            (1) Survey form.--The Secretary, in cooperation with other 
        relevant agencies, shall develop a customer survey form to 
        determine whether low-income families--
                    (A) encounter any impediments in applying for or 
                renewing their participation in low-income family with 
                children support programs; and
                    (B) are unaware of low-income family with children 
                support programs for which they are eligible.
            (2) Reports.--
                    (A) Annual reports.--Not later than 1 year after 
                the date of enactment of this Act, and annually 
                thereafter, the Secretary shall submit a report to 
                Congress describing the uses of grant funds awarded 
                under this section.
                    (B) Results of tracking systems and surveys.--The 
                Secretary shall submit a report to Congress detailing 
                the results of the tracking systems implemented and 
                customer surveys carried out by States and counties 
                under subsection (e) as the information becomes 
                available.
    (h) Miscellaneous.--
            (1) Matching funds.--
                    (A) In general.--Matching funds required from a 
                State or county awarded a grant under subsection (c)(1) 
                may--
                            (i) include in-kind services and 
                        expenditures by municipalities and private 
                        entities; and
                            (ii) be considered a qualified State 
                        expenditure for purposes of determining whether 
                        the State has satisfied the maintenance of 
                        effort requirements of the temporary assistance 
                        for needy families program under section 
                        409(a)(7) of the Social Security Act (42 U.S.C. 
                        609(a)(7)).
                    (B) Conforming amendment.--Section 409(a)(7)(B)(iv) 
                of the Social Security Act (42 U.S.C. 609(a)(7)(B)(iv)) 
                is amended by striking ``title.'' and inserting 
                ``title, and also includes State funds which are 
                expended as a condition of receiving Federal funds 
                under a grant made under section 5001 of the Leave No 
                Child Behind Act of 2003.''.
            (2) Limitation on expenditures.--
                    (A) In general.--Subject to paragraph 3--
                            (i) not more than 20 percent of a grant 
                        awarded under subsection (c) shall be expended 
                        on customer surveys or tracking systems; and
                            (ii) except as provided in subparagraph 
                        (B), not more than 15 percent of a grant 
                        awarded under subsection (c) shall be expended 
                        on administrative costs.
                    (B) Automation exception.--The limitation on 
                administrative expenditures under subparagraph (A)(ii) 
                shall not apply to expenditures for the acquisition, 
                implementation, or maintenance of information 
                technology, computerization, or other automated data 
                processing to accomplish the purposes of a grant 
                awarded under subsection (c).
            (3) Reversion of funds.--Any funds not expended by a 
        grantee within 2 years after awarded a grant shall be available 
        for redistribution among other grantees in such manner and 
        amount as the Secretary may determine, unless the Secretary 
        extends by regulation the 2-year time period to expend funds.
            (4) Nonapportionment.--Notwithstanding any other provision 
        of law, a State, county, locality, or nonprofit awarded a grant 
        under subsection (c) is not required to apportion the costs of 
        providing information about low-income family with children 
        support programs among all low-income family with children 
        support programs.
            (5) Administrative costs of the secretary.--Not more than 5 
        percent of the funds appropriated to carry out this section 
        shall be expended on administrative costs of the Secretary.
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000 for the period of 
fiscal years 2004 through 2008.

                 Subtitle B--Support From Both Parents

                 CHAPTER 1--CHILD SUPPORT DISTRIBUTION

SEC. 5101. SHORT TITLE.

    This subtitle may be cited as the ``Child Support Distribution 
Act''.

              Subchapter A--Distribution of Child Support

SEC. 5111. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF 
              OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.

    (a) Modification of Rule Requiring Assignment of Support Rights as 
a Condition of Receiving TANF.--Section 408(a)(3) of the Social 
Security Act (42 U.S.C. 608(a)(3)) is amended to read as follows:
            ``(3) No assistance for families not assigning certain 
        support rights to the state.--A State to which a grant is made 
        under section 403 shall require, as a condition of providing 
        assistance to a family under the State program funded under 
        this part, that a member of the family assign to the State any 
        rights the family member may have (on behalf of the family 
        member or of any other person for whom the family member has 
        applied for or is receiving such assistance) to support from 
        any other person, not exceeding the total amount of assistance 
        so provided to the family, which accrues during the period that 
        the family receives assistance under the program.''.
    (b) Increasing Child Support Payments to Families and Simplifying 
Child Support Distribution Rules.--
            (1) Distribution rules.--
                    (A) In general.--Section 457(a) of such Act (42 
                U.S.C. 657(a)) is amended to read as follows:
    ``(a) In General.--Subject to subsections (e) and (f), the amounts 
collected on behalf of a family as support by a State pursuant to a 
plan approved under this part shall be distributed as follows:
            ``(1) Families receiving assistance.--In the case of a 
        family receiving assistance from the State, the State shall--
                    ``(A) pay to the Federal Government the Federal 
                share of the amount collected, subject to paragraph 
                (3)(A);
                    ``(B) retain, or pay to the family, the State share 
                of the amount collected, subject to paragraph (3)(B); 
                and
                    ``(C) pay to the family any remaining amount.
            ``(2) Families that formerly received assistance.--In the 
        case of a family that formerly received assistance from the 
        State:
                    ``(A) Current support.--To the extent that the 
                amount collected does not exceed the current support 
                amount, the State shall pay the amount to the family.
                    ``(B) Arrearages.--To the extent that the amount 
                collected exceeds the current support amount, the 
                State--
                            ``(i) shall first pay to the family the 
                        excess amount, to the extent necessary to 
                        satisfy support arrearages not assigned 
                        pursuant to section 408(a)(3);
                            ``(ii) if the amount collected exceeds the 
                        amount required to be paid to the family under 
                        clause (i), shall--
                                    ``(I) pay to the Federal 
                                Government, the Federal share of the 
                                excess amount described in this clause, 
                                subject to paragraph (3)(A); and
                                    ``(II) retain, or pay to the 
                                family, the State share of the excess 
                                amount described in this clause, 
                                subject to paragraph (3)(B); and
                            ``(iii) shall pay to the family any 
                        remaining amount.
            ``(3) Limitations.--
                    ``(A) Federal reimbursements.--The total of the 
                amounts paid by the State to the Federal Government 
                under paragraphs (1) and (2) of this subsection with 
                respect to a family shall not exceed the Federal share 
                of the amount assigned with respect to the family 
                pursuant to section 408(a)(3).
                    ``(B) State reimbursements.--The total of the 
                amounts retained by the State under paragraphs (1) and 
                (2) of this subsection with respect to a family shall 
                not exceed the State share of the amount assigned with 
                respect to the family pursuant to section 408(a)(3).
            ``(4) Families that never received assistance.--In the case 
        of any other family, the State shall pay the amount collected 
        to the family.
            ``(5) Families under certain agreements.--Notwithstanding 
        paragraphs (1) through (4), in the case of an amount collected 
        for a family in accordance with a cooperative agreement under 
        section 454(33), the State shall distribute the amount 
        collected pursuant to the terms of the agreement.
            ``(6) State financing options.--To the extent that the 
        State share of the amount payable to a family for a month 
        pursuant to paragraph (2)(B) of this subsection exceeds the 
        amount that the State estimates (under procedures approved by 
        the Secretary) would have been payable to the family for the 
        month pursuant to former section 457(a)(2) (as in effect for 
        the State immediately before the date this subsection first 
        applies to the State) if such former section had remained in 
        effect, the State may elect to use the grant made to the State 
        under section 403(a) to pay the amount, or to have the payment 
        considered a qualified State expenditure for purposes of 
        section 409(a)(7), but not both.
            ``(7) State option to pass through additional support with 
        federal financial participation.--
                    ``(A) In general.--Notwithstanding paragraphs (1) 
                and (2), a State shall not be required to pay to the 
                Federal Government the Federal share of an amount 
                collected on behalf of a family that is not a recipient 
                of assistance under the State program funded under part 
                A, to the extent that the State pays the amount to the 
                family.
                    ``(B) Recipients of tanf for less than 5 years.--
                            ``(i) In general.--Notwithstanding 
                        paragraphs (1) and (2), a State shall not be 
                        required to pay to the Federal Government the 
                        Federal share of an amount collected on behalf 
                        of a family that is a recipient of assistance 
                        under the State program funded under part A and 
                        that has received the assistance for not more 
                        than 5 years after the date of enactment of 
                        this paragraph, to the extent that--
                                    ``(I) the State pays the amount to 
                                the family; and
                                    ``(II) subject to clause (ii), the 
                                amount is disregarded in determining 
                                the amount and type of the assistance 
                                provided to the family.
                            ``(ii) Limitation.--Of the amount 
                        disregarded as described in clause (i)(II), the 
                        maximum amount that may be taken into account 
                        for purposes of clause (i) shall not exceed 
                        $400 per month, except that, in the case of a 
                        family that includes 2 or more children, the 
                        State may elect to increase the maximum amount 
                        to not more than $600 per month.''.
                    (B) Approval of estimation procedures.--Not later 
                than October 1, 2003, the Secretary of Health and Human 
                Services, in consultation with the States (as defined 
                for purposes of part D of title IV of the Social 
                Security Act), shall establish the procedures to be 
                used to make the estimate described in section 
                457(a)(6) of such Act.
            (2) Current support amount defined.--Section 457(c) of such 
        Act (42 U.S.C. 657(c)) is amended by adding at the end the 
        following:
            ``(5) Current support amount.--The term `current support 
        amount' means, with respect to amounts collected as support on 
        behalf of a family, the amount designated as the monthly 
        support obligation of the noncustodial parent in the order 
        requiring the support.''.
    (c) Ban on Recovery of Medicaid Costs for Certain Births.--Section 
454 of such Act (42 U.S.C. 654) is amended--
            (1) by striking ``and'' at the end of paragraph (32);
            (2) by striking the period at the end of paragraph (33) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (33) the following:
            ``(34) provide that the State shall not use the State 
        program operated under this part to collect any amount owed to 
        the State by reason of costs incurred under the State plan 
        approved under title XIX for the birth of a child for whom 
        support rights have been assigned pursuant to section 
        408(a)(3), 471(a)(17), or 1912.''.
    (d) State Option To Discontinue Certain Support Assignments.--
Section 457(b) of such Act (42 U.S.C. 657(b)) is amended by striking 
``shall'' and inserting ``may''.
    (e) Conforming Amendments.--
            (1) Section 409(a)(7)(B)(i)(I)(aa) of such Act (42 U.S.C. 
        609(a)(7)(B)(i)(I)(aa)) is amended by striking ``457(a)(1)(B)'' 
        and inserting ``457(a)(1)''.
            (2) Section 404(a) of such Act (42 U.S.C. 604(a)) is 
        amended--
                    (A) by striking ``or'' at the end of paragraph (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(3) to fund payment of an amount pursuant to clause (i) 
        or (ii) of section 457(a)(2)(B), but only to the extent that 
        the State properly elects under section 457(a)(6) to use the 
        grant to fund the payment.''.
            (3) Section 409(a)(7)(B)(i) of such Act (42 U.S.C. 
        609(a)(7)(B)(i)) is amended by adding at the end the following:
                                    ``(V) Portions of certain child 
                                support payments collected on behalf of 
                                and distributed to families no longer 
                                receiving assistance.--Any amount paid 
                                by a State pursuant to clause (i) or 
                                (ii) of section 457(a)(2)(B), but only 
                                to the extent that the State properly 
                                elects under section 457(a)(6) to have 
                                the payment considered a qualified 
                                State expenditure.''.
    (f) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on October 1, 2008, and shall apply to payments 
        under parts A and D of title IV of the Social Security Act for 
        calendar quarters beginning on or after such date, and without 
        regard to whether regulations to implement such amendments (in 
        the case of State programs operated under such part D) are 
        promulgated by such date.
            (2) State option to accelerate effective date.--In 
        addition, a State may elect to have the amendments made by this 
        section apply to the State and to amounts collected by the 
        State, on and after such date as the State may select that is 
        after the date of enactment of this Act and before October 1, 
        2008.

      Subchapter B--Review and Adjustment of Child Support Orders

SEC. 5116. MANDATORY REVIEW AND MODIFICATION OF CHILD SUPPORT ORDERS 
              FOR TANF RECIPIENTS.

    (a) Review Every 3 Years.--Section 466(a)(10)(A)(i) of the Social 
Security Act (42 U.S.C. 666(a)(10)(A)(i)) is amended in the matter 
preceding subclause (I)--
            (1) by striking ``or,'' and inserting ``or''; and
            (2) by striking ``upon the request of the State agency 
        under the State plan or of either parent,''.
    (b) Review Upon Leaving TANF.--
            (1) Notice of certain families leaving tanf.--Section 
        402(a) of such Act (42 U.S.C. 602(a)) is amended by adding at 
        the end the following:
            ``(8) Certification that the child support enforcement 
        program will be provided notice of certain families leaving 
        tanf program.--A certification by the chief executive officer 
        of the State that the State has established procedures to 
        ensure that the State agency administering the child support 
        enforcement program under the State plan approved under part D 
        will be provided notice of the impending discontinuation of 
        assistance to an individual under the State program funded 
        under this part if the individual has custody of a child whose 
        other parent is alive and not living at home with the child.''.
            (2) Review.--Section 466(a)(10) of such Act (42 U.S.C. 
        666(a)(10)) is amended--
                    (A) in the paragraph heading, by striking ``upon 
                request'';
                    (B) in subparagraph (C), by striking ``this 
                paragraph'' and inserting ``subparagraph (A) or (B)''; 
                and
                    (C) by adding at the end the following:
                    ``(D) Review upon leaving tanf.--On receipt of a 
                notice issued pursuant to section 402(a)(8), the State 
                child support enforcement agency shall--
                            ``(i) examine the case file involved;
                            ``(ii) determine what actions (if any) are 
                        needed to locate any noncustodial parent, 
                        establish paternity or a support order, or 
                        enforce a support order in the case;
                            ``(iii) immediately take the actions; and
                            ``(iv) if there is a support order in the 
                        case which the State has not reviewed during 
                        the 1-year period ending with receipt of the 
                        notice, notwithstanding subparagraph (B), 
                        review and, if appropriate, adjust the order in 
                        accordance with subparagraph (A).''.

  Subchapter C--Demonstrations of Expanded Information and Enforcement

SEC. 5121. GUIDELINES FOR INVOLVEMENT OF PUBLIC NON-IV-D CHILD SUPPORT 
              ENFORCEMENT AGENCIES IN CHILD SUPPORT ENFORCEMENT.

    (a) In General.--Not later than October 1, 2004, the Secretary, in 
consultation with States, local governments, and individuals or 
companies knowledgeable about involving public non-IV-D child support 
enforcement agencies in child support enforcement, shall develop 
recommendations which address the participation of public non-IV-D 
child support enforcement agencies in the establishment and enforcement 
of child support obligations. The matters addressed by the 
recommendations shall include substantive and procedural rules which 
should be followed with respect to privacy safeguards, data security, 
due process rights, administrative compatibility with Federal and State 
automated systems, eligibility requirements (such as registration, 
licensing, and posting of bonds) for access to information and use of 
enforcement mechanisms, recovery of costs by charging fees, penalties 
for violations of the rules, treatment of collections for purposes of 
section 458 of such Act, and avoidance of duplication of effort.
    (b) Definitions.--In this title:
            (1) Child support.--The term ``child support'' has the 
        meaning given in section 459(i)(2) of the Social Security Act.
            (2) Public non-iv-d child support enforcement agency.--The 
        term ``public non-IV-D child support enforcement agency'' means 
        an agency, of a political subdivision of a State, which is 
        principally responsible for the operation of a child support 
        registry or for the establishment or enforcement of an 
        obligation to pay child support other than pursuant to the 
        State plan approved under part D of title IV of such Act, or a 
        clerk of court office of a political subdivision of a State.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (4) State.--The term ``State'' shall have the meaning given 
        in section 1101(a)(1) of the Social Security Act for purposes 
        of part D of title IV of such Act.

SEC. 5122. DEMONSTRATIONS INVOLVING ESTABLISHMENT AND ENFORCEMENT OF 
              CHILD SUPPORT OBLIGATIONS BY PUBLIC NON-IV-D CHILD 
              SUPPORT ENFORCEMENT AGENCIES.

    (a) Purpose.--The purpose of this section is to determine the 
extent to which public non-IV-D child support enforcement agencies may 
contribute effectively to the establishment and enforcement of child 
support obligations.
    (b) Applications.--
            (1) Consideration.--The Secretary shall consider all 
        applications received from States desiring to conduct 
        demonstration projects under this section.
            (2) Preferences.--In considering which applications to 
        approve under this section, the Secretary shall give preference 
        to applications submitted by States that had a public non-IV-D 
        child support enforcement agency as of January 1, 2003.
            (3) Approval.--
                    (A) Timing; limitation on number of projects.--On 
                July 1, 2005, the Secretary may approve not more than 
                10 applications for projects providing for the 
                participation of a public non-IV-D child support 
                enforcement agency in the establishment and enforcement 
                of child support obligations, and, if the Secretary 
                receives at least 5 such applications that meet such 
                requirements as the Secretary may establish, shall 
                approve not less than 5 such applications.
                    (B) Requirements.--The Secretary may not approve an 
                application for a project unless--
                            (i) the applicant and the Secretary have 
                        entered into a written agreement which 
                        addresses at a minimum, privacy safeguards, 
                        data security, due process rights, automated 
                        systems, liability, oversight, and fees, and 
                        the applicant has made a commitment to conduct 
                        the project in accordance with the written 
                        agreement and such other requirements as the 
                        Secretary may establish;
                            (ii) the project includes a research plan 
                        (but such plan shall not be required to use 
                        random assignment) that is focused on assessing 
                        the costs and benefits of the project; and
                            (iii) the project appears likely to 
                        contribute significantly to the achievement of 
                        the purpose of this title.
    (c) Demonstration Authority.--On approval of an application 
submitted by a State under this section--
            (1) the State agency responsible for administering the 
        State plan under part D of title IV of the Social Security Act 
        may, subject to the privacy safeguards of section 454(26) of 
        such Act, provide to any public non-IV-D child support 
        enforcement agency participating in the demonstration project 
        all information in the State Directory of New Hires and any 
        information obtained through information comparisons under 
        section 453(j)(3) of such Act about an individual with respect 
        to whom the public non-IV-D agency is seeking to establish or 
        enforce a child support obligation, if the public non-IV-D 
        agency meets such requirements as the State may establish and 
        has entered into an agreement with the State under which the 
        public non-IV-D agency has made a binding commitment to carry 
        out establishment and enforcement activities with respect to 
        the child support obligation subject to the same data security, 
        privacy protection, and due process requirements applicable to 
        the State agency and in accordance with procedures approved by 
        the head of the State agency;
            (2) the State agency may charge and collect fees from any 
        such public non-IV-D agency to recover costs incurred by the 
        State agency in providing information and services to the 
        public non-IV-D agency under the demonstration project;
            (3) if a public non-IV-D child support enforcement agency 
        has agreed to collect past-due support (as defined in section 
        464(c) of such Act) owed by a named individual, and the State 
        agency has submitted a notice to the Secretary of the Treasury 
        pursuant to section 464 of such Act on behalf of the public 
        non-IV-D agency, then the Secretary of the Treasury shall 
        consider the State agency to have agreed to collect such 
        support for purposes of such section 464, and the State agency 
        may collect from the public non-IV-D agency any fee which the 
        State is required to pay for the cost of applying the offset 
        procedure in the case;
            (4) for so long as a public non-IV-D child support 
        enforcement agency is participating in the demonstration 
        project, the public non-IV-D agency shall be considered part of 
        the State agency for purposes of section 469A of such Act; and
            (5) for so long as a public non-IV-D child support 
        enforcement agency is participating in the demonstration 
        project, the public non-IV-D agency shall be considered part of 
        the State agency for purposes of section 303(e) of such Act but 
        only with respect to any child support obligation that the 
        public non-IV-D agency has agreed to collect.
    (d) Waiver Authority.--The Secretary may waive or vary the 
applicability of any provision of sections 303(e), 454(31), 464, 
466(a)(7), 466(a)(17), and 469A of the Social Security Act to the 
extent necessary to enable the conduct of demonstration projects under 
this section, subject to the preservation of the data security, privacy 
protection, and due process requirements of part D of title IV of such 
Act.
    (e) Federal Audit.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct an audit of the demonstration projects 
        conducted under this section for the purpose of examining and 
        evaluating the manner in which information and enforcement 
        tools are used by the public non-IV-D child support enforcement 
        agencies participating in the projects.
            (2) Report to congress.--
                    (A) In general.--The Comptroller General of the 
                United States shall submit to Congress a report on the 
                audit required by paragraph (1).
                    (B) Timing.--The report required by subparagraph 
                (A) shall be so submitted not later than October 1, 
                2007.
    (f) Secretarial Report to Congress.--
            (1) In general.--The Secretary shall submit to Congress a 
        report on the demonstration projects conducted under this 
        section, which shall include the results of any research or 
        evaluation conducted pursuant to this title, and shall include 
        policy recommendations regarding the establishment and 
        enforcement of child support obligations by the agencies 
        involved.
            (2) Timing.--The report required by paragraph (1) shall be 
        submitted not later than October 1, 2008.

SEC. 5123. GAO REPORT TO CONGRESS ON PRIVATE CHILD SUPPORT ENFORCEMENT 
              AGENCIES.

    (a) In General.--Not later than October 1, 2004, the Comptroller 
General of the United States shall submit to Congress a report on the 
activities of private child support enforcement agencies that shall be 
designed to help Congress determine whether the agencies are providing 
a needed service in a fair manner using accepted debt collection 
practices and at a reasonable fee.
    (b) Matters To Be Addressed.--Among the matters addressed by the 
report required by subsection (a) shall be the following:
            (1) The number of private child support enforcement 
        agencies.
            (2) The types of debt collection activities conducted by 
        the private agencies.
            (3) The fees charged by the private agencies.
            (4) The methods used by the private agencies to collect 
        fees from custodial parents.
            (5) The nature and degree of cooperation the private 
        agencies receive from State agencies responsible for 
        administering State plans under part D of title IV of the 
        Social Security Act.
            (6) The extent to which the conduct of the private agencies 
        is subject to Federal or State regulation, and if so, the 
        extent to which the regulations are effectively enforced.
            (7) The amount of child support owed but uncollected and 
        changes in this amount in recent years.
            (8) The average period of time required for the completion 
        of successful enforcement actions yielding collections of past-
        due child support by both the child support enforcement 
        programs operated pursuant to State plans approved under part D 
        of title IV of the Social Security Act and, to the extent 
        known, by private child support enforcement agencies.
            (9) The types of Federal and State child support 
        enforcement remedies and resources currently available to 
        private child support enforcement agencies, and the types of 
        such remedies and resources now restricted to use by State 
        agencies administering State plans referred to in paragraph 
        (8).
    (c) Private Child Support Enforcement Agency Defined.--In this 
section, the term ``private child support enforcement agency'' means a 
person or any other nonpublic entity which seeks to establish or 
enforce an obligation to pay child support (as defined in section 
459(i)(2) of the Social Security Act).

SEC. 5124. EFFECTIVE DATE.

    This title shall take effect on the date of enactment of this Act.

                   Subchapter D--Expanded Enforcement

SEC. 5126. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING 
              PASSPORT DENIAL.

    Section 452(k) of the Social Security Act (42 U.S.C. 652(k)) is 
amended by striking ``$5,000'' and inserting ``$2,500''.

SEC. 5127. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE 
              CHILD SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.

    Section 464 of the Social Security Act (42 U.S.C. 664) is amended--
            (1) in subsection (a)(2)(A), by striking ``(as that term is 
        defined for purposes of this paragraph under subsection (c))''; 
        and
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking ``(1) Except as provided in 
                        paragraph (2), as used in'' and inserting 
                        ``In''; and
                            (ii) by inserting ``(whether or not a 
                        minor)'' after ``a child'' each place it 
                        appears; and
                    (B) by striking paragraphs (2) and (3).

SEC. 5128. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
              CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT 
              OBLIGATIONS.

    Section 459(h) of the Social Security Act (42 U.S.C. 659(h)) is 
amended--
            (1) in paragraph (1)(A)(ii)(V), by striking all that 
        follows ``Armed Forces'' and inserting a semicolon; and
            (2) by adding at the end the following:
            ``(3) Limitations with respect to compensation paid to 
        veterans for service-connected disabilities.--Notwithstanding 
        any other provision of this section:
                    ``(A) Compensation described in paragraph 
                (1)(A)(ii)(V) shall not be subject to withholding 
                pursuant to this section--
                            ``(i) for payment of alimony; or
                            ``(ii) for payment of child support if the 
                        individual is fewer than 60 days in arrears in 
                        payment of the support.
                    ``(B) Not more than 50 percent of any payment of 
                compensation described in paragraph (1)(A)(ii)(V) may 
                be withheld pursuant to this section.''.

                      Subchapter E--Miscellaneous

SEC. 5131. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

    Not later than 6 months after the date of enactment of this Act, 
the Secretary of Health and Human Services shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report on the procedures that the 
States use generally to locate custodial parents for whom child support 
has been collected but not yet distributed due to a change in address. 
The report shall include an estimate of the total amount of such 
undistributed child support and the average length of time it takes for 
such child support to be distributed. The Secretary shall include in 
the report recommendations as to whether additional procedures should 
be established at the Federal or State level to expedite the payment of 
undistributed child support.

SEC. 5132. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF 
              UNEMPLOYMENT COMPENSATION PROGRAMS.

    (a) In General.--Section 453(j) of the Social Security Act (42 
U.S.C. 653(j)) is amended by adding at the end the following:
            ``(7) Information comparisons and disclosure to assist in 
        administration of unemployment compensation programs.--
                    ``(A) In general.--If a State agency responsible 
                for the administration of an unemployment compensation 
                program under Federal or State law transmits to the 
                Secretary the name and social security account number 
                of an individual, the Secretary shall, if the 
                information in the National Directory of New Hires 
                indicates that the individual may be employed, disclose 
                to the State agency the name, address, and employer 
                identification number of any putative employer of the 
                individual, subject to this paragraph.
                    ``(B) Condition on disclosure.--The Secretary shall 
                make a disclosure under subparagraph (A) only to the 
                extent that the Secretary determines that the 
                disclosure would not interfere with the effective 
                operation of the program under this part.
                    ``(C) Use of information.--A State agency may use 
                information provided under this paragraph only for 
                purposes of administering a program referred to in 
                subparagraph (A).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.

SEC. 5133. IMMIGRATION PROVISIONS.

    (a) Nonimmigrant Aliens Ineligible To Receive Visas and Excluded 
From Admission for Nonpayment of Child Support.--
            (1) In general.--Section 212(a)(10) of the Immigration and 
        Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding at 
        the end the following:
                    ``(F) Nonpayment of child support.--
                            ``(i) In general.--Any nonimmigrant alien 
                        is inadmissible who is legally obligated under 
                        a judgment, decree, or order to pay child 
                        support (as defined in section 459(i) of the 
                        Social Security Act), and whose failure to pay 
                        such child support has resulted in an arrearage 
                        exceeding $2,500, until child support payments 
                        under the judgment, decree, or order are 
                        satisfied or the nonimmigrant alien is in 
                        compliance with an approved payment agreement.
                            ``(ii) Waiver authorized.--The Attorney 
                        General may waive the application of clause (i) 
                        in the case of an alien, if the Attorney 
                        General--
                                    ``(I) has received a request for 
                                the waiver from the court or 
                                administrative agency having 
                                jurisdiction over the judgment, decree, 
                                or order obligating the alien to pay 
                                child support that is referred to in 
                                such clause; or
                                    ``(II) determines that there are 
                                prevailing humanitarian or public 
                                interest concerns.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect 180 days after the date of enactment of this 
        Act.
    (b) Authorization To Serve Legal Process in Child Support Cases on 
Certain Arriving Aliens.--
            (1) In general.--Section 235(d) of the Immigration and 
        Nationality Act (8 U.S.C. 1225(d)) is amended by adding at the 
        end the following:
            ``(5) Authority to serve process in child support cases.--
                    ``(A) In general.--To the extent consistent with 
                State law, immigration officers are authorized to serve 
                on any alien who is an applicant for admission to the 
                United States legal process with respect to any action 
                to enforce or establish a legal obligation of an 
                individual to pay child support (as defined in section 
                459(i) of the Social Security Act).
                    ``(B) Definition.--For purposes of subparagraph 
                (A), the term `legal process' means any writ, order, 
                summons, or other similar process, which is issued by--
                            ``(i) a court or an administrative agency 
                        of competent jurisdiction in any State, 
                        territory, or possession of the United States; 
                        or
                            ``(ii) an authorized official pursuant to 
                        an order of such a court or agency or pursuant 
                        to State or local law.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to aliens applying for admission to the United 
        States on or after 180 days after the date of enactment of this 
        Act.
    (c) Authorization To Share Child Support Enforcement Information To 
Enforce Immigration and Naturalization Law.--
            (1) Secretarial responsibility.--Section 452 of the Social 
        Security Act (42 U.S.C. 652) is amended by adding at the end 
        the following:
    ``(m) If the Secretary receives a certification by a State agency, 
in accordance with section 454(35), that an individual who is a 
nonimmigrant alien (as defined in section 101(a)(15) of the Immigration 
and Nationality Act) owes arrearages of child support in an amount 
exceeding $2,500, the Secretary may, at the request of the State 
agency, the Secretary of State, or the Attorney General, or on the 
Secretary's own initiative, provide such certification to the Secretary 
of State and the Attorney General information in order to enable them 
to carry out their responsibilities under sections 212(a)(10) and 
235(d) of such Act.''.
            (2) State agency responsibility.--Section 454 of the Social 
        Security Act (42 U.S.C. 654), as amended by section 5111(c) of 
        this Act, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (33);
                    (B) by striking the period at the end of paragraph 
                (34) and inserting ``; and''; and
                    (C) by inserting after paragraph (34) the 
                following:
            ``(35) provide that the State agency will have in effect a 
        procedure for certifying to the Secretary, in such format and 
        accompanied by such supporting documentation as the Secretary 
        may require, determinations that nonimmigrant aliens owe 
        arrearages of child support in an amount exceeding $2,500.''.

SEC. 5134. CORRECTION OF ERRORS IN CONFORMING AMENDMENTS IN THE 
              WELFARE-TO-WORK AND CHILD SUPPORT AMENDMENTS OF 1999.

    The amendments made by section 2402 of Public Law 106-246 shall 
take effect as if included in the enactment of section 806 of H.R. 3424 
of the 106th Congress by section 1000(a)(4) of Public Law 106-113.

SEC. 5135. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES FOR 
              SHORT-TERM TRAINING OF STAFF OF CERTAIN CHILD WELFARE 
              AGENCIES.

    Section 474(a)(3)(B) of the Social Security Act (42 U.S.C. 
674(a)(3)(B)) is amended by inserting ``, or State-licensed or State-
approved child welfare agencies providing services,'' after ``child 
care institutions''.

SEC. 5136. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this subtitle and 
in subsection (b) of this section, this subtitle and the amendments 
made by this subtitle shall take effect on October 1, 2004, and shall 
apply to payments under part D of title IV of the Social Security Act 
for calendar quarters beginning on or after such date, and without 
regard to whether regulations to implement such amendments are 
promulgated by such date.
    (b) Delay Permitted if State Legislation Required.--In the case of 
a State plan approved under section 454 of the Social Security Act 
which requires State legislation (other than legislation appropriating 
funds) in order for the plan to meet the additional requirements 
imposed by the amendments made by this Act, the State plan shall not be 
regarded as failing to comply with the additional requirements solely 
on the basis of the failure of the plan to meet the additional 
requirements before the first day of the first calendar quarter 
beginning after the close of the first regular session of the State 
legislature that begins after the date of enactment of this Act. For 
purposes of the previous sentence, in the case of a State that has a 2-
year legislative session, each year of such session shall be deemed to 
be a separate regular session of the State legislature.

            CHAPTER 2--CHILD SUPPORT DEMONSTRATION PROGRAMS

SEC. 5141. SHORT TITLE.

    This chapter may be cited as the ``Child Support Assurance Act''.

SEC. 5142. PURPOSES.

    The purposes of this chapter are to enable participating States to 
establish, expand, or improve child support assurance systems in order 
to improve the economic circumstances of children who do not receive a 
minimum level of child support in a given month from the noncustodial 
parents of such children, to strengthen the establishment and 
enforcement of child support awards, and to promote work by custodial 
and noncustodial parents.

SEC. 5143. DEFINITIONS.

    In this chapter:
            (1) Child.--The term ``child'' means an individual who is 
        of such an age, disability, or educational status as to be 
        eligible for child support as provided for by law.
            (2) Eligible child.--The term ``eligible child'' means a 
        child who--
                    (A) is not currently receiving cash assistance 
                under the State program funded under part A of title IV 
                of the Social Security Act (42 U.S.C. 601 et seq.);
                    (B) meets the eligibility requirements established 
                by the State for participation in a project 
                administered under this section; and
                    (C) is the subject of a support order, as defined 
                in section 453(p) of the Social Security Act (42 U.S.C. 
                653(p)), or for which good cause exists, as determined 
                by the appropriate State agency under section 
                454(29)(A) of such Act (42 U.S.C. 654(29)(A)), for not 
                having or pursuing a support order.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.

SEC. 5144. ESTABLISHMENT OF CHILD SUPPORT ASSURANCE DEMONSTRATION 
              PROJECTS.

    (a) Demonstrations Authorized.--The Secretary shall make grants to 
not less than 3 and not more than 5 States to conduct demonstration 
projects for the purpose of establishing, expanding, or improving a 
system of an assured minimum child support payment to an eligible child 
in accordance with this section.
    (b) Application and Selection.--
            (1) Application requirements.--An application for a grant 
        under this section shall be submitted by the chief executive 
        officer of a State and shall--
                    (A) contain a description of the proposed child 
                support assurance project to be established, expanded, 
                or improved using amounts provided under this section, 
                including the level of the assured minimum child 
                support payment to be provided and the agencies that 
                will be involved;
                    (B) specify whether the project will be carried out 
                throughout the State or in limited areas of the State;
                    (C) specify the level of income, if any, at which a 
                recipient or applicant will be ineligible for an 
                assured minimum child support payment under the 
                project;
                    (D) estimate the number of children who will be 
                eligible for assured minimum child support payments 
                under the project;
                    (E) contain a description of the work requirements, 
                if any, for custodial parents whose children are 
                participating in the project;
                    (F) contain a commitment by the State to carry out 
                the project during a period of not less than 3 and not 
                more than 5 consecutive fiscal years beginning with 
                fiscal year 2004; and
                    (G) contain such other information as the Secretary 
                may require by regulation.
            (2) Selection criteria.--The Secretary shall consider--
                    (A) geographic diversity in the selection of States 
                to conduct demonstration projects under this section; 
                and
                    (B) any other criteria that the Secretary 
                determines will contribute to the achievement of the 
                purposes of this title.
    (c) Use of Funds.--
            (1) Grant funds.--A State shall use amounts provided under 
        a grant awarded under this section to carry out a child support 
        assurance project that is designed to provide a minimum monthly 
        child support payment for each eligible child participating in 
        the project to the extent that such minimum child support is 
        not paid in a month by the noncustodial parent.
            (2) TANF funds.--
                    (A) In general.--A State selected to conduct a 
                demonstration project under this title may use, in 
                addition to the amounts provided under a grant awarded 
                under this section, funds provided under a State family 
                assistance grant under section 403(a)(1) of the Social 
                Security Act (42 U.S.C. 603(a)(1)) for the purpose 
                described in paragraph (1).
                    (B) Authority to include amounts used for purposes 
                of tanf maintenance of effort requirements.--Section 
                409(a)(7)(B)(i)(I) of the Social Security Act (42 
                U.S.C. 609(a)(7)(B)(i)(I)) is amended by adding at the 
                end the following:
                                            ``(ff) Notwithstanding 
                                        clause (iv), funds provided 
                                        under a State family assistance 
                                        grant, under section 403(a)(1) 
                                        that are used to establish, 
                                        expand, or improve a system of 
                                        assured minimum child support 
                                        payments to eligible children 
                                        (regardless of whether such 
                                        children reside with an 
                                        eligible family, as defined in 
                                        subclause (IV)) in accordance 
                                        with the Leave No Child Behind 
                                        Act of 2003.''.
    (d) Treatment of Child Support Payment.--Any assured minimum child 
support payment received by an individual under this title shall be 
considered child support for purposes of determining the treatment of 
such payment under--
            (1) the Internal Revenue Code of 1986; and
            (2) any eligibility requirements for any means-tested 
        program of assistance.
    (e) Duration.--A demonstration project conducted under this section 
shall commence on October 1, 2005, and shall be conducted for not less 
than 3 and not more than 5 consecutive fiscal years, except that the 
Secretary may terminate a project before the end of such period if the 
Secretary determines that the State conducting the project is not in 
compliance with the terms of the application approved by the Secretary 
under this section.
    (f) Evaluations and Reports.--
            (1) State evaluations.--
                    (A) In general.--Each State administering a 
                demonstration project under this section shall--
                            (i) provide for evaluation of the project, 
                        meeting such conditions and standards as the 
                        Secretary may require; and
                            (ii) submit to the Secretary reports, at 
                        the times and in the formats as the Secretary 
                        may require, and containing any information (in 
                        addition to the information required under 
                        subparagraph (B)) as the Secretary may require.
                    (B) Required information.--A report submitted under 
                subparagraph (A)(ii) shall include information on and 
                analysis of the effect of the project with respect to--
                            (i) the amount of child support collected 
                        for project recipients;
                            (ii) the economic circumstances and work 
                        efforts of custodial parents;
                            (iii) the work efforts of noncustodial 
                        parents;
                            (iv) the rate of compliance by noncustodial 
                        parents with support orders;
                            (v) project recipients' need for assistance 
                        under means-tested assistance programs other 
                        than the project administered under this 
                        section; and
                            (vi) any other matters that the Secretary 
                        may specify.
                    (C) Methodology.--Information required under this 
                paragraph shall be collected through the use of 
                scientifically acceptable sampling methods.
            (2) Reports to congress.--The Secretary shall, on the basis 
        of reports received from States administering projects under 
        this section, submit interim reports and, not later than 6 
        months after the conclusion of all projects administered under 
        this section, a final report to Congress. A report submitted 
        under this paragraph shall contain an assessment of the 
        effectiveness of the State projects administered under this 
        section and any recommendations for legislative action that the 
        Secretary considers appropriate.
    (g) Funding.--There shall be available to the Secretary, from 
amounts made available to carry out part D of title IV of the Social 
Security Act, for purposes of carrying out demonstration projects under 
this section, amounts not to exceed--
            (1) $27,000,000 for fiscal year 2006;
            (2) $55,000,000 for fiscal year 2007; and
            (3) $70,000,000 for each of fiscal years 2008 through 2010.

           Subtitle C--Fair Wages and Unemployment Insurance

                      CHAPTER 1--FAIR MINIMUM WAGE

SEC. 5201. SHORT TITLE.

    This chapter may be cited as the ``Fair Minimum Wage Act of 2003''.

SEC. 5202. MINIMUM WAGE.

    (a) In General.--Section 6(a)(1) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
            ``(1) except as otherwise provided in this section, not 
        less than--
                    ``(A) $5.90 an hour, beginning on the 60th day 
                after the date of enactment of the Fair Minimum Wage 
                Act of 2003; and
                    ``(B) $6.65 an hour, beginning 12 months after that 
                60th day;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 60 days after the date of enactment of this Act.

SEC. 5203. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH OF THE 
              NORTHERN MARIANA ISLANDS.

    (a) In General.--Section 6 of the Fair Labor Standards Act of 1938 
(29 U.S.C. 206) shall apply to the Commonwealth of the Northern Mariana 
Islands.
    (b) Transition.--Notwithstanding subsection (a), the minimum wage 
applicable to the Commonwealth of the Northern Mariana Islands under 
section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
206(a)(1)) shall be--
            (1) $3.55 an hour, beginning on the 60th day after the date 
        of enactment of this Act; and
            (2) increased by $0.50 an hour (or such lesser amount as 
        may be necessary to equal the minimum wage under section 
        6(a)(1) of such Act), beginning 6 months after the date of 
        enactment of this Act and every 6 months thereafter until the 
        minimum wage applicable to the Commonwealth of the Northern 
        Mariana Islands under this subsection is equal to the minimum 
        wage set forth in such section.

     CHAPTER 2--LIVABLE WAGES FOR EMPLOYEES UNDER FEDERAL CONTRACTS

SEC. 5211. SHORT TITLE.

    This chapter may be cited as the ``Federal Living Wage 
Responsibility Act''.

SEC. 5212. FINDINGS.

    The Congress finds the following:
            (1) American workers are working harder to make ends meet.
            (2) The wages of many working Americans have not kept pace 
        with the cost of providing for their families.
            (3) The Federal Government provides billions of dollars in 
        subsidies to businesses each year through both spending 
        programs and the Internal Revenue Code of 1986.
            (4) Recipients of Federal contracts have benefited greatly 
        from the provision of taxpayers' dollars.
            (5) The Congressional Budget Office concluded that the 
        Federal Government spends more than $30 billion a year on 
        spending and credit programs.
            (6) Congress must ensure that Federal dollars are used 
        responsibly to improve the economic security and well-being of 
        Americans across the country.

SEC. 5213. POVERTY LEVEL WAGE.

    (a) Requirement.--
            (1) General rule.--Except as provided in paragraph (2), any 
        employer under a Federal contract for an amount exceeding 
        $10,000 or a subcontract under a Federal contract for such an 
        amount shall, except as provided in subsection (b), pay each of 
        the employer's employees working on or hired in conjunction 
        with such contract or subcontract--
                    (A) an hourly wage necessary for such employee to 
                earn, while working 40 hours a week on a full-time 
                basis, the amount of the Federal poverty level for a 
                family of 4 (as published in the Federal Register by 
                the Department of Health and Human Services under the 
                authority of section 673(2) of the Omnibus Budget 
                Reconciliation Act of 1981), or
                    (B) $8.20 an hour,
        whichever is greater.
            (2) Exception.--An employer which is--
                    (A) a small business concern as defined under 
                section 3 of the Small Business Act (15 U.S.C. 632), or
                    (B) a nonprofit organization exempt from Federal 
                income tax under section 501(c) of the Internal Revenue 
                Code of 1986 if the ratio of the total compensation of 
                its chief executive officer to the compensation of the 
                full-time equivalent of its lowest paid employee is not 
                greater than 25 to 1,
        shall not be required to pay the wage prescribed by paragraph 
        (1).
            (3) Scope.--An employer may not avoid the requirement of 
        paragraph (1) by laying off or otherwise terminating the 
        employment of an employee with the intention of replacing such 
        employee with an employee who, under subsection (b), is not 
        eligible for the subsection (a) wage.
    (b) Exception.--An employee who is participating in--
            (1) an apprenticeship program, or
            (2) any other training program which does not exceed 6 
        months in duration and which is offered to an employee while 
        employed in productive work that provides training, technical 
        and other related skills, and personal skills that are 
        essential to the full and adequate performance of the 
        employee's employment,
is not eligible for the wage prescribed by subsection (a).
    (c) Contract Requirement.--Any contract between the Federal 
Government and any contractor and any contract between such contractor 
with a subcontractor to carry out work for the Federal Government shall 
require the contractor or subcontractor to pay the wage prescribed by 
subsection (a)(1).
    (d) Enforcement.--
            (1) Suspension.--If an employer does not pay the wage 
        required by subsection (a) the Federal contract or subcontract 
        under which such employer was employing employees shall be 
        suspended.
            (2) Ineligibility.--An employer described in paragraph (1) 
        shall not be eligible for any Federal contract or subcontract 
        for a period of 5 years beginning on the date the employer does 
        not pay the required wage.
            (3) Restitution.--An employer who does not pay the wage 
        required by subsection (a) shall be liable to the United States 
        in an amount equal to the unpaid wages and in addition an equal 
        amount as liquidated damages. The Secretary of Labor shall pay 
        to the employees who were not paid such wage the amount 
        recovered by the United States under this paragraph.

SEC. 5214. EFFECTIVE DATE.

    This chapter shall take effect with respect to Federal contracts 
entered into, renewed, or extended after 90 days after the date of 
enactment of this Act.

                   CHAPTER 3--UNEMPLOYMENT INSURANCE

SEC. 5221. PARITY FOR PART-TIME WORKERS, FAIR COUNTING OF WAGES, AND 
              USE OF IMPROVED TECHNOLOGY FOR MAKING WAGE DATA 
              AVAILABLE.

    (a) In General.--Subsection (a) of section 3304 of the Internal 
Revenue Code of 1986 (relating to approval of State unemployment 
compensation laws) is amended--
            (1) in paragraph (18), by striking ``and'' at the end;
            (2) by redesignating paragraph (19) as paragraph (21); and
            (3) by inserting after paragraph (18) the following new 
        paragraphs:
            ``(19) in the case of an individual who is not eligible for 
        regular compensation under the State law because such 
        individual does not meet requirements relating to availability 
        for work, active search for work, or refusal to accept work, 
        because such individual is seeking, or is available for, less 
        than full-time work, compensation is not denied by such State 
        to an otherwise eligible individual who seeks less than full-
        time work or fails to accept full-time work;
            ``(20) in the case of an individual who is not eligible for 
        regular compensation under the State law because of the use of 
        a definition of base period that does not count wages earned in 
        the most recently completed calendar quarter, eligibility for 
        compensation is determined by applying a base period ending at 
        the close of the most recently completed calendar quarter; 
        and''.
    (b) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to compensation 
        paid for weeks of unemployment beginning after June 30, 2004.
            (2) Amendment relating to use of recent wages.--Section 
        3304(a)(20) of the Internal Revenue Code of 1986, as added by 
        subsection (a)(3), shall apply to compensation paid for weeks 
        of unemployment beginning after December 31, 2004.

SEC. 5222. ENSURING UNEMPLOYMENT COMPENSATION FOR INDIVIDUALS THAT ARE 
              SEPARATED FROM EMPLOYMENT DUE TO DOMESTIC VIOLENCE.

    (a) Unemployment Compensation.--Section 3304 of the Internal 
Revenue Code of 1986 (relating to approval of State unemployment 
compensation laws), as amended by section 5221, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (20), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (21) as paragraph 
                (22); and
                    (C) by inserting after paragraph (20) the following 
                new paragraph:
            ``(21) compensation is to be paid where an individual is 
        separated from employment due to circumstances directly 
        resulting from domestic violence; and''; and
            (2) by adding at the end the following new subsection:
    ``(g) Construction.--
            ``(1) In general.--For purposes of subsection (a)(21), an 
        employee's separation from employment shall be treated as due 
        to circumstances directly resulting from domestic violence if 
        the separation resulted from--
                    ``(A) the employee's reasonable fear of future 
                domestic violence at or en route to or from the 
                employee's place of employment;
                    ``(B) the employee's wish to relocate to another 
                geographic area in order to avoid future domestic 
                violence against the employee or the employee's family;
                    ``(C) the employee's need to recover from traumatic 
                stress resulting from the employee's experience of 
                domestic violence;
                    ``(D) the employer's denial of the employee's 
                request for the temporary leave from employment to 
                address domestic violence and its effects; or
                    ``(E) any other circumstance in which domestic 
                violence causes the employee to reasonably believe that 
                termination of employment is necessary for the future 
                safety of the employee or the employee's family.
            ``(2) Reasonable efforts to retain employment.--For 
        purposes of subsection (a)(21), if State law requires the 
        employee to have made reasonable efforts to retain employment 
        as a condition for receiving unemployment compensation, such 
        requirement shall be met if the employee--
                    ``(A) sought protection from, or assistance in 
                responding to, domestic violence, including calling the 
                police or seeking legal, social work, medical, clergy, 
                or other assistance;
                    ``(B) sought safety, including refuge in a shelter 
                or temporary or permanent relocation, whether or not 
                the employee actually obtained such refuge or 
                accomplished such relocation; or
                    ``(C) reasonably believed that options such as 
                taking a leave of absence, transferring jobs, or 
                receiving an alternative work schedule would not be 
                sufficient to guarantee the employee or the employee's 
                family's safety.
            ``(3) Active search for employment.--For purposes of 
        subsection (a)(21), if State law requires the employee to 
        actively search for employment after separation from employment 
        as a condition for receiving unemployment compensation, such 
        requirement shall be treated as met where the employee is 
        temporarily unable to actively search for employment because 
        the employee is engaged in seeking safety or relief for the 
        employee or the employee's family from domestic violence, 
        including--
                    ``(A) going into hiding or relocating or attempting 
                to do so, including activities associated with such 
                hiding or relocation, such as seeking to obtain 
                sufficient shelter, food, schooling for children, or 
                other necessities of life for the employee or the 
                employee's family;
                    ``(B) actively pursuing legal protection or 
                remedies, including meeting with the police, going to 
                court to make inquiries or file papers, meeting with 
                attorneys, or attending court proceedings; or
                    ``(C) participating in psychological, social, or 
                religious counseling or support activities to assist 
                the employee in ending domestic violence.
            ``(4) Provision of information to meet certain 
        requirements.--In determining if an employee meets the 
        requirements of paragraphs (1), (2), and (3), the unemployment 
        agency of the State in which an employee is requesting 
        unemployment compensation by reason of subsection (a)(21) may 
        require the employee to provide--
                    ``(A) documentation of the domestic violence, such 
                as--
                            ``(i) police or court records; or
                            ``(ii) documentation from a shelter worker 
                        or an employee of a domestic violence program, 
                        an attorney, a clergy member, or a medical or 
                        other professional from whom the employee has 
                        sought assistance in addressing domestic 
                        violence and its effects; or
                    ``(B) other corroborating evidence, such as--
                            ``(i) a statement from any other individual 
                        with knowledge of the circumstances which 
                        provide the basis for the claim; or
                            ``(ii) physical evidence of domestic 
                        violence, such as photographs or torn or bloody 
                        clothes.
        All evidence of domestic violence experienced by an employee, 
        including an employee's statement, any corroborating evidence, 
        and the fact that an employee has applied for, or inquired 
        about, unemployment compensation available by reason of 
        subsection (a)(21) shall be retained in the strictest 
        confidence by such State unemployment agency, except to the 
        extent consented to by the employee where disclosure is 
        necessary to protect the employee's safety.
            ``(5) Effect of claims.--Claims filed for unemployment 
        compensation solely by reason of subsection (a)(21) shall be 
        disregarded in determining an employer's State unemployment 
        taxes based on unemployment experience.''.
    (b) Social Security Personnel Training.--Section 303(a) of the 
Social Security Act (42 U.S.C. 503(a)) is amended--
            (1) by redesignating paragraphs (4) through (10) as 
        paragraphs (5) through (11), respectively; and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Such methods of administration as will ensure that 
        claims reviewers and hearing personnel are adequately trained 
        in--
                    ``(A) the nature and dynamics of claims for 
                unemployment compensation based on domestic violence 
                under section 3304(a)(21) of the Internal Revenue Code 
                of 1986; and
                    ``(B) methods of ascertaining and keeping 
                confidential information about possible experiences of 
                domestic violence to ensure that--
                            ``(i) requests for unemployment 
                        compensation based on domestic violence are 
                        reliably screened, identified, and adjudicated; 
                        and
                            ``(ii) complete confidentiality is provided 
                        for the employee's claim and submitted 
                        evidence; and''.
    (c) Funding for Improved Technology To Assist in Determining 
Benefit Eligibility.--Section 901(c) of the Social Security Act (42 
U.S.C. 1101(c)) is amended by adding at the end the following new 
paragraph:
    ``(6) In addition to amounts provided under paragraph (1)(A)(i), 
there is hereby appropriated out of the employment security 
administration account $60,000,000 for fiscal year 2004 (which shall 
remain available for obligation to the States through fiscal year 2006) 
for the purpose of assisting States in funding technology and other 
costs that accelerate access to wage and employment information in 
order to determine eligibility for unemployment compensation.''.
    (d) Definitions.--Section 3306 of the Internal Revenue Code of 1986 
(relating to definitions) is amended by adding at the end the following 
new subsection:
    ``(v) Domestic Violence.--For purposes of this chapter, the term 
`domestic violence' has the meaning given such term in section 2003(1) 
of title I of the Omnibus Crime Control and Safe Streets Act of 1968 
(42 U.S.C. 3796gg-2).''.
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall take effect on 
        November 1, 2003.
            (2) Funding for improved technology to assist in 
        determining benefit eligibility.--The amendment made by 
        subsection (c) shall take effect on the date of enactment of 
        this Act.
            (3) Exception.--In the case of any State the legislature of 
        which has not been in session for at least 30 calendar days 
        (whether or not successive) between the date of enactment of 
        this Act and November 1, 2003, the amendments made by this 
        section shall take effect 30 calendar days after the first day 
        on which such legislature is in session on or after November 1, 
        2003.

SEC. 5223. LOSS OF CHILD CARE AS GOOD CAUSE FOR LEAVING EMPLOYMENT.

    (a) In General.--Subsection (a) of section 3304 of the Internal 
Revenue Code of 1986 (relating to approval of State unemployment 
compensation laws), as amended by section 5222, is amended--
            (1) in paragraph (21), by striking ``and'' at the end;
            (2) by redesignating paragraph (22) as paragraph (23); and
            (3) by inserting after paragraph (21) the following new 
        paragraph:
            ``(22) if any individual leaves employment because of loss 
        of adequate child care for a dependent child under the age of 
        12, for purposes of determining such individual's eligibility 
        for compensation for any subsequent week for which such 
        individual meets the State law requirements relating to 
        availability for work and active search for work--
                    ``(A) such individual shall be treated as having 
                left such employment for good cause; and
                    ``(B) any failure to return to such employment or 
                to otherwise meet such State law requirements, while 
                the lack of such child care continues, shall be 
                disregarded; and''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by subsection (a) shall take effect on November 
        1, 2003.
            (2) Exception.--In the case of any State the legislature of 
        which has not been in session for at least 30 calendar days 
        (whether or not successive) between the date of enactment of 
        this Act and November 1, 2003, the amendments made by 
        subsection (a) shall take effect 30 calendar days after the 
        first day on which such legislature is in session on or after 
        November 1, 2003.

                Subtitle D--Jobs for Low-Income Parents

SEC. 5301. DISREGARD OF MONTHS ENGAGED IN WORK FOR PURPOSES OF 5-YEAR 
              TANF ASSISTANCE LIMIT.

    Section 408(a)(7) of the Social Security Act (42 U.S.C. 608(a)(7)) 
is amended--
            (1) by redesignating subparagraphs (E), (F), and (G) as 
        subparagraphs (G), (H), and (I), respectively; and
            (2) by inserting after subparagraph (D), the following:
                    ``(E) Disregard of months of assistance received by 
                adult while engaged in work.--In determining the number 
                of months for which an adult has received assistance 
                under a State or tribal program funded under this part, 
                the State or tribe shall disregard any month during 
                which the adult is engaged in a work activity described 
                in paragraph (1), (2), (3), (4), (5), (6), (7), (8), or 
                (12) of section 407(d) in accordance with the 
                requirements of section 407(c).''.

SEC. 5302. REPLACEMENT OF CASELOAD REDUCTION CREDIT WITH EMPLOYMENT 
              CREDIT.

    (a) Employment Credit To Reward States in Which Families Leave 
Welfare for Work; Additional Credit for Families With Higher 
Earnings.--
            (1) In general.--Section 407(a) of the Social Security Act 
        (42 U.S.C. 607(a)), as amended by section 5308 of this Act, is 
        amended by adding at the end the following:
            ``(2) Employment credit.--
                    ``(A) In general.--The minimum participation rate 
                otherwise applicable to a State under this subsection 
                for a fiscal year shall be reduced by the number of 
                percentage points in the employment credit for the 
                State for the fiscal year, as determined by the 
                Secretary--
                            ``(i) using information in the National 
                        Directory of New Hires, or
                            ``(ii) with respect to a recipient of 
                        assistance under the State program funded under 
                        this part who is placed with an employer whose 
                        hiring information is not reported to the 
                        National Directory of New Hires, using 
                        quarterly wage information submitted by the 
                        State to the Secretary not later than such date 
                        as the Secretary shall prescribe in 
                        regulations.
                    ``(B) Calculation of credit.--
                            ``(i) In general.--The employment credit 
                        for a State for a fiscal year is an amount 
                        equal to--
                                    ``(I) twice the average quarterly 
                                number of families that ceased to 
                                receive cash payments under the State 
                                program funded under this part during 
                                the most recent 4 quarters for which 
                                data is available and that were 
                                employed during the calendar quarter 
                                immediately succeeding the quarter in 
                                which the payments ceased, plus, at 
                                State option, the number of families 
                                that received a non-recurring short-
                                term benefit under the State program 
                                funded under this part during the 
                                preceding fiscal year and that were 
                                employed in during the calendar quarter 
                                immediately succeeding the quarter in 
                                which the non-recurring short-term 
                                benefit was so received; divided by
                                    ``(II) the average monthly number 
                                of families that include an adult who 
                                received cash payments under the State 
                                program funded under this part during 
                                the preceding fiscal year, plus, if the 
                                State elected the option under 
                                subclause (I), the number of families 
                                that received a non-recurring short-
                                term benefit under the State program 
                                funded under this part during the 
                                preceding fiscal year.
                            ``(ii) Special rule for former recipients 
                        with higher earnings.--In calculating the 
                        employment credit for a State for a fiscal 
                        year, a family that, during the preceding 
                        fiscal year, earned at least 33 percent of the 
                        average wage in the State (determined on the 
                        basis of State unemployment data) shall be 
                        considered to be 1.5 families.
                    ``(C) Publication of amount of credit.--Not later 
                than August 30 of each fiscal year, the Secretary shall 
                cause to be published in the Federal Register the 
                amount of the employment credit that will be used in 
                determining the minimum participation rate applicable 
                to a State under this subsection for the immediately 
                succeeding fiscal year.''.
            (2) Authority of secretary to use information in national 
        directory of new hires.--Section 453(i) of the Social Security 
        Act (42 U.S.C. 653(i)) is amended by adding at the end the 
        following:
            ``(5) Calculation of employment credit for purposes of 
        determining state work participation rates under tanf.--The 
        Secretary may use the information in the National Directory of 
        New Hires for purposes of calculating State employment credits 
        pursuant to section 407(a)(2).''.
    (b) Elimination of Caseload Reduction Credit.--Section 407(b) of 
the Social Security Act (42 U.S.C. 607(b)) is amended by striking 
paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs 
(3) and (4), respectively.

SEC. 5303. STATES TO RECEIVE PARTIAL CREDIT TOWARD WORK PARTICIPATION 
              RATE FOR RECIPIENTS ENGAGED IN PART-TIME WORK.

    Section 407(c)(1)(A) of the Social Security Act (42 U.S.C. 
607(c)(1)(A)) is amended by adding at the end the following flush 
sentence:
                ``For purposes of subsection (b)(1)(B)(i), a family 
                that does not include a recipient who is participating 
                in work activities for an average of 30 hours per week 
                during a month but includes a recipient who is 
                participating in such activities during the month for 
                an average of at least 50 percent of the minimum 
                average number of hours per week specified for the 
                month in the table set forth in this subparagraph shall 
                be counted as a percentage of a family that includes an 
                adult or minor child head of household who is engaged 
                in work for the month, which percentage shall be the 
                number of hours for which the recipient participated in 
                such activities during the month divided by the number 
                of hours of such participation required of the 
                recipient under this section for the month.''.

SEC. 5304. TANF RECIPIENTS WHO QUALIFY FOR SUPPLEMENTAL SECURITY INCOME 
              BENEFITS REMOVED FROM WORK PARTICIPATION RATE CALCULATION 
              FOR ENTIRE YEAR.

    Section 407(b)(1)(B)(ii) of the Social Security Act (42 U.S.C. 
607(b)(1)(B)(ii)) is amended--
            (1) in subclause (I), by inserting ``who has not become 
        eligible for supplemental security income benefits under title 
        XVI during the fiscal year'' before the semicolon; and
            (2) in subclause (II), by inserting ``, and that do not 
        include an adult or minor child head of household who has 
        become eligible for supplemental security income benefits under 
        title XVI during the fiscal year'' before the period.

SEC. 5305. ELIMINATION OF LIMIT ON NUMBER OF TANF RECIPIENTS ENROLLED 
              IN VOCATIONAL EDUCATION OR HIGH SCHOOL WHO MAY BE COUNTED 
              TOWARDS THE WORK PARTICIPATION REQUIREMENT.

    Section 407(c)(2) of the Social Security Act (42 U.S.C. 607(c)(2)) 
is amended by striking subparagraph (D).

SEC. 5306. COUNTING OF UP TO 2 YEARS OF VOCATIONAL OR EDUCATIONAL 
              TRAINING (INCLUDING POSTSECONDARY EDUCATION), WORK-STUDY, 
              AND RELATED INTERNSHIPS AS WORK ACTIVITIES.

    Section 407(d)(8) of the Social Security Act (42 U.S.C. 607(d)(8)) 
is amended to read as follows:
            ``(8) not more than 24 months of participation by an 
        individual in--
                    ``(A) vocational or educational training (including 
                postsecondary education), at an eligible educational 
                institution (as defined in section 404(h)(5)(A)) 
                leading to attainment of a credential from the 
                institution related to employment or a job skill;
                    ``(B) a State or Federal work-study program under 
                part C of title IV of the Higher Education Act of 1965 
                or an internship related to vocational or postsecondary 
                education, supervised by an eligible educational 
                institution (as defined in section 404(h)(5)(A)); or
                    ``(C) a course of study leading to adult literacy, 
                in which English is taught as a second language, or 
                leading to a certificate of high school equivalency, if 
                the State considers the activities important to 
                improving the ability of the individual to find and 
                maintain employment.''.

SEC. 5307. LIMITED COUNTING OF CERTAIN ACTIVITIES LEADING TO EMPLOYMENT 
              AS WORK ACTIVITY.

    (a) In General.--Section 407(d) of the Social Security Act (42 
U.S.C. 607(d)) is amended--
            (1) by striking ``and'' at the end of paragraph (11);
            (2) by striking the period at the end of paragraph (12) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(13) Up to 6 months of participation (as determined by 
        the State) in services designed to improve future employment 
        opportunities, including substance abuse treatment services, 
        services to address sexual or domestic violence, and physical 
        rehabilitation and mental health services.''.
    (b) Conforming Amendment.--Section 407(c)(1) of such Act (42 U.S.C. 
607(c)(1)) is amended by striking ``and (12)'' each place it appears 
and inserting ``(12), and (13)''.

SEC. 5308. ELIMINATION OF SEPARATE WORK PARTICIPATION RATE FOR 2-PARENT 
              FAMILIES.

    Section 407 of the Social Security Act (42 U.S.C. 607) is amended--
            (1) in subsection (a), by striking paragraph (2); and
            (2) in subsection (b)--
                    (A) by striking paragraphs (2) and (3);
                    (B) in paragraph (4), by striking ``paragraphs 
                (1)(B) and (2)(B)'' and inserting ``paragraph (1)(B)'';
                    (C) in paragraph (5), by striking ``rates'' and 
                inserting ``rate''; and
                    (D) by redesignating paragraphs (4) and (5) as 
                paragraphs (2) and (3), respectively.

SEC. 5309. ADDITION OF POVERTY REDUCTION BONUS TO TANF.

    Section 403(a) of the Social Security Act (42 U.S.C. 603(a)), is 
amended by adding at the end the following:
            ``(6) Bonus to reward states that reduce poverty.--
                    ``(A) In general.--The Secretary shall make a grant 
                pursuant to this paragraph to each State for each 
                fiscal year beginning with fiscal year 2005 for which 
                the State is a qualified poverty reduction State, as 
                determined under subparagraph (C).
                    ``(B) Amount of grant.--With respect to a fiscal 
                year, each State that the Secretary determines is a 
                qualified poverty reduction State for that fiscal year 
                shall receive a grant in an amount equal to the ratio 
                of the amount appropriated under subparagraph (D) for 
                that fiscal year to the total number of all such States 
                for that fiscal year.
                    ``(C) Determination of qualified poverty reduction 
                states.--For purposes of subparagraph (A), a State 
                shall be considered a qualified poverty reduction State 
                for a fiscal year if the State satisfies the following:
                            ``(i) Provision of certain assistance.--The 
                        State demonstrates to the Secretary that the 
                        State program funded under this part provides 
                        in each local political subdivision of the 
                        State for at least 3 of the following:
                                    ``(I) A work expense or 
                                transportation allowance for any low-
                                income family that is not receiving 
                                assistance under the State program.
                                    ``(II) The use of income disregards 
                                sufficient to allow a family to remain 
                                eligible for at least partial 
                                assistance under the State program 
                                until the sum of the family's earned 
                                income and cash assistance exceed the 
                                poverty line applicable to such family.
                                    ``(III) On-the-job training or 
                                work/study programs in occupations 
                                likely to provide a livable wage. For 
                                purposes of this subclause, the term 
                                `livable wage' means such hourly wage 
                                as is necessary for an employee to 
                                earn, while working 40 hours a week on 
                                a full-year basis, an amount equal to 
                                the amount of the Federal poverty level 
                                for a family of 4 for that year (as 
                                published in the Federal Register by 
                                the Department of Health and Human 
                                Services under the authority of section 
                                673(2) of the Omnibus Budget 
                                Reconciliation Act of 1981).
                                    ``(IV) Temporary subsidized 
                                employment that provides at least the 
                                minimum wage applicable under section 6 
                                of the Fair Labor Standards Act for 
                                parents or caregivers who are unable to 
                                find other employment.
                                    ``(V) Non-recurrent assistance to 
                                help pay for the repair of a vehicle or 
                                appliance, past-due rent, a utility or 
                                fuel bill, vehicle licensing or 
                                insurance costs, or for other purposes 
                                deemed necessary by the State to enable 
                                eligible families with children to 
                                maintain stable work and living 
                                situations.
                                    ``(VI) A minimum monthly child 
                                support payment paid by the State to a 
                                low-income family with at least 1 child 
                                support order if the noncustodial 
                                parent does not pay the minimum payment 
                                required under the order.
                                    ``(VII) With respect to families 
                                that have assigned to the State in 
                                accordance with section 408(a)(3) any 
                                child support rights a family member 
                                may have (on behalf of the family 
                                member or of any other person for whom 
                                the family member has applied for or is 
                                receiving such assistance), a pass 
                                through of child support collections to 
                                the family, with at least $100 per 
                                month of the pass-through payment 
                                disregarded for purposes of calculating 
                                assistance for the family under the 
                                State program funded under this part.
                                    ``(VIII) An increase in the State's 
                                minimum wage to at least $6.15 per hour 
                                or a State minimum wage indexed to 
                                inflation.
                            ``(ii) Demonstration of improved outcomes 
                        for current and former recipients of 
                        assistance.--
                                    ``(I) In general.--With respect to 
                                a fiscal year, the State is one of the 
                                10 States with the greatest year-to-
                                year decline or, in the absence of 10 
                                such States, the least year-to-year 
                                increase, in the child poverty rate 
                                adjusted by the severity of poverty. 
                                For purposes of this subclause, the 
                                child poverty rate adjusted by the 
                                severity of poverty shall be determined 
                                with respect to a State for a fiscal 
                                year by multiplying the State's 
                                percentage of children with family 
                                income below the poverty line for that 
                                fiscal year by the average difference 
                                per poor child in the State between the 
                                child's family income and the poverty 
                                line.
                                    ``(II) Determination of income.--
                                For purposes of subclause (I), the 
                                Secretary shall, to the extent 
                                feasible, consider the following in 
                                calculating a family's income:
                                            ``(aa) Cash income, such as 
                                        earnings, child support 
                                        received by the family, and 
                                        government cash payments.
                                            ``(bb) Benefits received 
                                        under the Food Stamp Act of 
                                        1977.
                                            ``(cc) Federal, State, or 
                                        local income taxes paid by the 
                                        family for the preceding 
                                        taxable year and the refundable 
                                        portion of any tax credits 
                                        received.
                    ``(D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there is appropriated for fiscal year 
                2005 and each fiscal year thereafter, $200,000,000 to 
                make the grants required under this paragraph.''.

SEC. 5310. PARTICIPATION IN WORKFORCE INVESTMENT BOARDS.

    (a) State Workforce Investment Boards.--Section 111(b)(1)(C) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2821(b)(1)(C)) is amended--
            (1) by redesignating clause (vii) as clause (viii);
            (2) in clause (vi), by striking ``and'' at the end; and
            (3) by inserting after clause (vi) the following:
                            ``(vii) a representative of a lead State 
                        agency with responsibility for the State 
                        program funded under part A of title IV of the 
                        Social Security Act (42 U.S.C. 601 et seq.); 
                        and''.
    (b) Local Workforce Investment Boards.--Section 117(b)(2)(A) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2832(b)(2)(A)) is amended--
            (1) in clause (v), by striking ``and'' at the end; and
            (2) by adding at the end the following:
                            ``(vii) a representative of the local 
                        agency, if any, with responsibility for the 
                        program funded under part A of title IV of the 
                        Social Security Act (42 U.S.C. 601 et seq.); 
                        and''.

SEC. 5311. CLARIFICATION OF TANF PURPOSE.

    Section 401(a) of the Social Security Act (42 U.S.C. 601(a)) is 
amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2), the following:
            ``(3) reduce poverty among families with children;''.

SEC. 5312. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this subtitle take effect on October 1, 2003.
    (b) State Option To Phase-in Replacement of Caseload Reduction 
Credit With Employment Credit and Delay Applicability of Other 
Provisions.--A State may elect to have the amendments made by sections 
5302(b), 5303, and 5304 of this Act not apply to the State program 
funded under part A of title IV of the Social Security Act until 
October 1, 2005, and if the State makes the election, then, in 
determining the participation rate of the State for purposes of 
sections 407 and 409(a)(3) of the Social Security Act for fiscal year 
2005, the State shall be credited with \1/2\ of the reduction in the 
rate that would otherwise result from applying section 407(a)(2) of the 
Social Security Act (as added by section 5302(a)(1) of this Act) to the 
State for fiscal year 2004 and \1/2\ of the reduction in the rate that 
would otherwise result from applying such section 407(b)(2) to the 
State for fiscal year 2005.

                Subtitle E--Incentives to Serve Families

SEC. 5401. DEVELOPMENT OF MODEL CASEWORKER TRAINING MATERIALS.

    (a) Development of Model Caseworker Training Materials.--The 
Secretary of Health and Human Services shall develop model training 
materials (including guidebooks and other resources) for caseworkers 
assigned to administer the provision of assistance to a family under 
the State program funded under part A of title IV of the Social 
Security Act (42 U.S.C. 601 et seq.). The model training materials 
shall be designed to train the caseworkers to improve the access of the 
family to other services and benefits that the family, or individuals 
within the family, may be eligible for, including--
            (1) benefits under the food stamp program, as defined in 
        section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 2012(h));
            (2) medical assistance under the medicaid program under 
        title XIX of the Social Security Act (42 U.S.C. 1396 et seq.);
            (3) child health assistance under the State children's 
        health insurance program under title XXI of the Social Security 
        Act (42 U.S.C. 1397aa et seq.);
            (4) the special supplemental nutrition program for women, 
        infants, and children (WIC) under section 17 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786);
            (5) child care assistance;
            (6) transportation assistance;
            (7) education or training assistance;
            (8) job placement activities;
            (9) the earned income tax credit under section 32 of the 
        Internal Revenue Code of 1986; and
            (10) services to treat or alleviate substance abuse, mental 
        illness, or family violence.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Health and Human Services to carry out 
this section such sums as may be necessary for fiscal year 2004 and 
each fiscal year thereafter.

SEC. 5402. EXCEPTION TO LIMIT ON TANF ADMINISTRATIVE EXPENDITURES FOR 
              CASEWORKER BONUSES AND OTHER STATE INITIATIVES TO 
              ELIMINATE BARRIERS TO WORK.

    Section 404(b)(2) of the Social Security Act (42 U.S.C. 604(b)(2)) 
is amended--
            (1) in the heading, by striking ``Exception''; and 
        inserting ``Exceptions'';
            (2) by striking ``Paragraph (1)'' and inserting the 
        following:
                    ``(A) Information technology and computerization.--
                Paragraph (1)''; and
            (3) by adding at the end the following:
                    ``(B) Caseworker bonuses and other state 
                initiatives to eliminate barriers to work.--
                            ``(i) In general.--Paragraph (1) shall not 
                        apply to the use of a grant to provide a cash 
                        bonus to a caseworker for a family receiving 
                        assistance under the State program funded under 
                        this part based on the number of such families 
                        that the State determines the caseworker 
                        assists achieve a goal described in clause 
                        (ii), or for expenditures incurred for other 
                        State initiatives designed to eliminate 
                        barriers to work for families receiving 
                        assistance under the State program funded under 
                        this part.
                            ``(ii) Caseworker goals.--For purposes of 
                        clause (i), the goals described in this clause 
                        are the following:
                                    ``(I) Obtain employment that 
                                provides wages and benefits that enable 
                                the family to have income that exceeds 
                                the poverty line applicable to a family 
                                of the size involved.
                                    ``(II) Obtain supportive services 
                                and benefits for which the family is 
                                eligible.
                                    ``(III) With respect to an 
                                individual within a family, overcome a 
                                barrier to the individual's employment, 
                                including a barrier resulting from a 
                                lack of transportation or child care, a 
                                life crisis due to family violence, 
                                substance abuse, or a mental or 
                                physical disability.
                                    ``(IV) With respect to an 
                                individual within a family, retain 
                                employment for at least 6 months.''.

SEC. 5403. STRENGTHENING OF TANF INDIVIDUAL RESPONSIBILITY PLANS.

    Section 408(b) of the Social Security Act (42 U.S.C. 608(b)) is 
amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i), by 
                        striking ``may'' and inserting ``shall''; and
                            (ii) in clause (i), by striking 
                        ``immediately into private sector employment'' 
                        and inserting ``into a job leading to stable 
                        employment with earnings above the poverty line 
                        applicable to a family of the size involved 
                        (based on 35 hours of work per week) and health 
                        care benefits for the employee and the 
                        employee's dependents''; and
                    (B) in subparagraph (B)--
                            (i) in the matter preceding clause (i), by 
                        striking ``may'' and inserting ``shall'';
                            (ii) in clause (i), by striking ``(or, at 
                        the option of the State, 180 days)'';
                            (iii) in clause (ii), by striking ``(or, at 
                        the option of the State, 90 days)''; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) Penalty for noncompliance by the state.--In addition 
        to any other penalties that may be imposed against a State for 
        failure to comply with the requirements of this part, the 
        Secretary may reduce the grant payable to a State under section 
        403(a)(1) if the Secretary determines that the State has 
        failed, without good cause, to comply with the requirements of 
        this subsection.''.

SEC. 5404. EFFECTIVE DATE.

    The amendments made by this subtitle take effect on October 1, 
2003.

                  Subtitle F--Addressing Work Barriers

SEC. 5501. FUNDING FOR ACCESS TO JOBS PROGRAM.

    Section 3037 of the Transportation Equity Act for the 21st Century 
(49 U.S.C. 5309 note) is amended in subsection (l)(1)--
            (1) in subparagraph (A), by striking clauses (iv) and (v) 
        and inserting the following:
                            ``(iv) $150,000,000 for fiscal year 2004;
                            ``(v) $170,000,000 for fiscal year 2005;
                            ``(vi) $190,000,000 for fiscal year 2006;
                            ``(vii) $200,000,000 for fiscal year 2007; 
                        and
                            ``(viii) $225,000,000 for fiscal year 
                        2008.'';
            (2) in subparagraph (B), by striking clauses (iv) and (v) 
        and inserting the following:
                            ``(iv) $50,000,000 for each of fiscal years 
                        2004 through 2008.''; and
            (3) in subparagraph (C)--
                    (A) by inserting ``and'' after the semicolon in 
                clause (ii);
                    (B) by striking ``; and'' in clause (iii) and 
                inserting a period; and
                    (C) by striking clause (iv).

SEC. 5502. REQUIREMENT TO IDENTIFY AND PROVIDE SERVICES TO ADDRESS 
              BARRIERS TO EMPLOYMENT OF TANF RECIPIENTS.

    (a) Requirement To Identify as Part of Individual Responsibility 
Plan.--Section 408(b) of the Social Security Act (42 U.S.C. 608(b)), as 
amended by section 5403, is amended--
            (1) in paragraph (1), by striking ``who--'' and all that 
        follows and inserting ``has attained 18 years of age, using 
        caseworkers who are trained to utilize assessment methods 
        approved by the State to identify recipients with severe 
        barriers to employment, such as being subjected to domestic 
        violence, having mental health, substance or alcohol abuse 
        problems, homelessness, a physical or mental disability, or 
        illiteracy problems.''; and
            (2) in paragraph (2)(A)(iv), by inserting ``overcome any 
        severe barriers to employment identified by the State under 
        paragraph (1), and to'' after ``will be able to''.
    (b) Exemption From Work Requirement if State Fails To Provide 
Services.--Section 407(e) of the Social Security Act (42 U.S.C. 607(e)) 
is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (3)'';
            (2) in paragraph (2), in the heading, by striking 
        ``Exception''; and inserting ``Single custodial parent with a 
        young child''; and
            (3) by adding at the end the following:
            ``(3) Individual with a severe barrier to employment to 
        whom the state fails to provide services.--Notwithstanding 
        paragraph (1), a State may not reduce assistance under the 
        State program funded under this part based on a refusal of an 
        individual to engage in work required in accordance with this 
        section if, as part of the assessment required under section 
        408(b)(1), the individual has been identified as having a 
        severe barrier to employment and the State fails to provide 
        services necessary to overcome the barrier.''.

SEC. 5503. STATE OPTION TO ESTABLISH EXCEPTIONS FROM TIME LIMIT FOR 
              RECEIPT OF TANF ASSISTANCE BASED ON SEVERE BARRIERS TO 
              EMPLOYMENT.

    Section 408(a)(7)(C) of the Social Security Act (42 U.S.C. 
608(a)(7)(C)) is amended--
            (1) in clause (ii), by striking ``The average'' and 
        inserting ``Subject to clause (iv), the average''; and
            (2) by adding at the end the following:
                            ``(iv) State option for exceptions based on 
                        severe barriers to employment.--At State 
                        option, the limit described in clause (ii) 
                        shall not apply with respect to each category 
                        of exception based on severe barriers to 
                        employment as the State may determine.''.

SEC. 5504. EFFECTIVE DATE.

    The amendments made by this subtitle take effect on October 1, 
2003.

              Subtitle G--Protection for Families in Need

SEC. 5601. EARN-BACK OF MONTHS OF TANF ASSISTANCE.

    Section 408(a)(7) of the Social Security Act (42 U.S.C. 608(a)(7)), 
as amended by section 5301, is amended by inserting after subparagraph 
(E) the following:
                    ``(F) Earn-back of months of assistance.--In 
                determining the number of months for which an adult has 
                received assistance under a State or tribal program 
                funded under this part, the State or tribe shall 
                disregard 1 month for every 3 months that the adult is 
                engaged in a work activity defined in paragraph (1), 
                (2), or (3) of section 407(d) in accordance with the 
                requirements of section 407(c) and during which the 
                individual is not receiving assistance under the State 
                program funded under this part.''.

SEC. 5602. ESTABLISHMENT OF A FAIR CONCILIATION PROCESS FOR FAMILIES 
              UNDER TANF.

    Section 408 of the Social Security Act (42 U.S.C. 608) is amended 
by adding at the end the following:
    ``(h) Fair Conciliation Procedures.--
            ``(1) In general.--Any case closed under the State program 
        funded under this part shall be subject to a customer service 
        review in accordance with the requirements of this subsection 
        to ensure that a case is not erroneously terminated and to give 
        a family another opportunity to participate in the program.
            ``(2) Requirements.--
                    ``(A) Initial review.--A customer service reviewer 
                shall examine the case record for each case closed to 
                determine--
                            ``(i) whether the caseworker responsible 
                        for the case has attempted to make personal 
                        contact with the parent or caregiver before 
                        recommending closure of the case; and
                            ``(ii) whether sufficient documentation 
                        exists in the case record to establish both a 
                        factual and policy basis for closure of the 
                        case, including documentation of written notice 
                        of the closure to the parent or caregiver.
                    ``(B) Return to caseworker.--Any case in which a 
                customer service reviewer determines that no personal 
                contact has been attempted before closure of the case, 
                or that insufficient documentation exists, shall be 
                returned to the caseworker for the provision of such 
                attempted contact or documentation.
                    ``(C) Additional attempted personal contact.--If a 
                case is not returned to a caseworker under subparagraph 
                (A), the customer service reviewer shall attempt to 
                make personal contact with the parent or caregiver 
                involved, including, if 3 attempts are required, an 
                attempt outside of normal business hours. A case shall 
                be closed after 3 unsuccessful attempts.
                    ``(D) Determination of good cause for exception to 
                closure.--
                            ``(i) In general.--With respect to a case 
                        in which a caseworker or a customer service 
                        reviewer has made personal contact with the 
                        parent or caregiver, the customer service 
                        reviewer shall determine whether barriers to 
                        participation in the program exist, whether 
                        there are grounds for exemption from the time 
                        limits or any other program requirements, or 
                        whether there was an error in the application 
                        of the facts or policy.
                            ``(ii) Modification of individual 
                        responsibility plan.--If a customer service 
                        reviewer determines under clause (i) that a 
                        case should not be closed, the customer service 
                        reviewer shall work with the parent or 
                        caregiver to modify the parent's or caregiver's 
                        individual responsibility plan developed under 
                        subsection (b) as appropriate, including with 
                        respect to the provision of any additional 
                        services needed to assist the individual in 
                        becoming work-ready.
                    ``(E) Plan for compliance.--If a customer service 
                reviewer determines that subparagraph (D) does not 
                apply and a parent or caregiver is not subject to the 
                time limit for receipt of assistance under subsection 
                (a)(7), the reviewer shall ask the parent or caregiver 
                if the parent or caregiver is now willing to comply 
                with program requirements, and establish a plan with 
                the parent or caregiver for compliance. If the parent 
                or caregiver does not comply with such plan, the case 
                shall be closed without regard to the preceding 
                subparagraphs of this paragraph.
                    ``(F) Written notice.--With respect to a case 
                closed by a customer service reviewer under this 
                subsection, the reviewer shall send the family involved 
                a final written notice of the case closure that informs 
                the family of--
                            ``(i) the specific factual basis of the 
                        closure;
                            ``(ii) the steps that the family can take 
                        to maintain eligibility for assistance under 
                        the State program; and
                            ``(iii) the procedure for appealing the 
                        closure decision.''.

SEC. 5603. TREATMENT OF ALIENS UNDER THE TANF PROGRAM.

    (a) Exception to 5-Year Ban for Qualified Aliens.--Section 
403(c)(2) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)) is amended by adding 
at the end the following:
                    ``(L) Benefits under the Temporary Assistance for 
                Needy Families program described in section 
                402(b)(3)(A).''.
    (b) Benefits Not Subject to Reimbursement.--Section 423(d) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(8 U.S.C. 1138a note) is amended by adding at the end the following:
            ``(12) Benefits under part A of title IV of the Social 
        Security Act except for cash assistance provided to a sponsored 
        alien who is subject to deeming pursuant to section 408(i) of 
        the Social Security Act.''.
    (c) Treatment of Aliens.--Section 408 of the Social Security Act 
(42 U.S.C. 608), as amended by section 5602, is amended by adding at 
the end the following:
    ``(i) Special Rules Relating to the Treatment of 213A Aliens.--
            ``(1) In general.--In determining whether a 213A alien is 
        eligible for cash assistance under a State program funded under 
        this part, and in determining the amount or types of such 
        assistance to be provided to the alien, the State shall apply 
        the rules of paragraphs (1), (2), (3), (5), and (6) of 
        subsection (f) of this section by substituting `213A' for `non-
        213A' each place it appears, subject to section 421(e) of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996, and subject to section 421(f) of such Act (which shall 
        be applied by substituting `section 408(i) of the Social 
        Security Act' for `subsection (a)').
            ``(2) 213A alien defined.--An alien is a 213A alien for 
        purposes of this subsection if the affidavit of support or 
        similar agreement with respect to the alien that was executed 
        by the sponsor of the alien's entry into the United States was 
        executed pursuant to section 213A of the Immigration and 
        Nationality Act.''.

SEC. 5604. EFFECTIVE DATE.

    The amendments made by this subtitle take effect on October 1, 
2003.

                    Subtitle H--TANF Reauthorization

SEC. 5701. REAUTHORIZATION OF TANF STATE FAMILY ASSISTANCE GRANTS.

    Section 403(a)(1) of the Social Security Act (42 U.S.C. 603(a)(1)) 
is amended--
            (1) in subparagraph (A), by striking ``fiscal years 1996, 
        1997, 1998, 1999, 2000, 2001, and 2002'' and inserting ``the 
        fiscal years during the period beginning with fiscal year 1996 
        and ending with fiscal year 2009''; and
            (2) in subparagraph (E), by striking ``fiscal years 1996, 
        1997, 1998, 1999, 2000, 2001, and 2002'' and inserting ``each 
        of the fiscal years during the period beginning with fiscal 
        year 1996 and ending with fiscal year 2009''.

SEC. 5702. PROHIBITION ON SUPPLANTATION OF TANF FUNDS.

    Section 408(a) of the Social Security Act (42 U.S.C. 608(a)) is 
amended by adding at the end the following new paragraph:
            ``(12) Supplement not supplant.--Funds made available under 
        this part shall be used to supplement, not supplant, other 
        Federal, State, or local funds that are used for existing 
        services and activities that promote the purposes of this 
        part.''.

                          TITLE VI--FAIR START

             Subtitle A--Child and Adult Care Food Program

SEC. 6001. PARTICIPATION OF FOR-PROFIT CARE CENTERS IN CHILD AND ADULT 
              CARE FOOD PROGRAM.

    Section 17(a)(2)(B) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1766(a)(2)(B)) is amended--
            (1) by striking ``if--'' and all that follows through 
        ``2002, at'' and inserting ``if at''; and
            (2) by striking ``meals; or'' and all that follows and 
        inserting ``meals;''.

SEC. 6002. CATEGORICAL ELIGIBILITY REQUIREMENTS.

    Section 17(f)(3)(A)(ii) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1766(f)(3)(A)(ii)) is amended by adding at the end 
the following:
                                    ``(V) Categorical eligibility.--In 
                                making a determination of income 
                                eligibility under subclauses (I)(cc) 
                                and (II), a family or group day care 
                                home sponsoring organization may 
                                consider a provider participating in or 
                                subsidized under, or a provider with a 
                                child participating in or subsidized 
                                under, a federally or State supported 
                                child care or other benefit program 
                                with an income eligibility limit that 
                                does not exceed the eligibility 
                                standard for free or reduced price 
                                meals under section 9 to be a provider 
                                whose household meets the income 
                                eligibility guidelines under section 
                                9.''.

SEC. 6003. INCREASE IN ADMINISTRATIVE REIMBURSEMENT RATES.

    Section 17(f)(3) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1766(f)(3)) is amended by striking subparagraph (B) and 
inserting the following:
                    ``(B) Reimbursement for administrative expenses.--
                            ``(i) In general.--Family or group day care 
                        home sponsoring organizations shall also 
                        receive reimbursement for administrative 
                        expenses in amounts not exceeding the maximum 
                        allowable levels prescribed by the Secretary.
                            ``(ii) Adjustment.--The maximum allowable 
                        levels prescribed under clause (i) shall be--
                                    ``(I) adjusted July 1 of each year 
                                to reflect changes for the 12-month 
                                period ending in the preceding June, in 
                                the Consumer Price Index for All Urban 
                                Consumers published by the Bureau of 
                                Labor Statistics of the Department of 
                                Labor, rounded to the nearest lower 
                                dollar increment; and
                                    ``(II) in addition to the 
                                adjustments required under subclause 
                                (I), increased by $2.00 for each level 
                                described in clause (i).''.

SEC. 6004. PROGRAM FOR AT-RISK SCHOOL CHILDREN.

    Section 17(r) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766(r)) is amended--
            (1) in paragraph (1)(B)--
                    (A) by inserting ``(i)'' after ``(B)'';
                    (B) by striking ``in a geographical area'' and all 
                that follows through the period and inserting the 
                following: ``in a geographical area--
                            ``(I) that is served by a school in which 
                        at least 50 percent of the children are 
                        eligible for free or reduced price school meals 
                        under this Act or the Child Nutrition Act of 
                        1966 (42 U.S.C. 1771 et seq.); or
                            ``(II) in which poor economic conditions 
                        exist, as determined by the Secretary based 
                        on--
                                    ``(aa) information provided from 
                                the local department of welfare, zoning 
                                commission, or census tracts; or
                                    ``(bb) information from other 
                                appropriate sources; or''; and
                    (C) by adding at the end the following:
                    ``(ii) is enrolled in a program authorized under 
                this subsection operated at a site not described in 
                clause (i).'';
            (2) in paragraph (4), by striking subparagraphs (B) and (C) 
        and inserting the following:
                    ``(B) Rates.--
                            ``(i) Meals.--A meal shall be reimbursed 
                        under this subsection--
                                    ``(I) for children participating in 
                                a program at a site described in 
                                paragraph (1)(B)(i), at the rate 
                                established for free meals under 
                                subsection (c); and
                                    ``(II) for children enrolled in a 
                                program under paragraph 1(B)(ii), at 
                                the applicable rate for meals 
                                established under subsection (c).
                            ``(ii) Supplements.--A supplement shall be 
                        reimbursed under this subsection--
                                    ``(I) for children participating in 
                                a program at a site described in 
                                paragraph (1)(B)(i), at the rate 
                                established for a free supplement under 
                                subsection (c)(3); and
                                    ``(II) for children enrolled in a 
                                program under paragraph 1(B)(ii), at 
                                the applicable rate for supplements 
                                established under subsection (c)(3).
                    ``(C) No charge.--In the case of at-risk school 
                child participating in a program at a site described in 
                paragraph (1)(B)(i), a meal or supplement provided 
                under this subsection to the child shall be served 
                without charge.''; and
            (3) by striking paragraph (5).

                     Subtitle B--Food Stamp Program

SEC. 6101. RESTORATION OF FOOD STAMP BENEFITS FOR QUALIFIED ALIENS.

    (a) Limited Eligibility of Qualified Aliens for Certain Federal 
Programs.--
            (1) In general.--Section 402(a) of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (8 U.S.C. 1612(a)) is amended--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``Federal programs'' and inserting ``Federal 
                        program'';
                            (ii) in subparagraph (D)--
                                    (I) by striking clause (ii); and
                                    (II) in clause (i)--
                                            (aa) by striking ``(i) 
                                        SSI.--'' and all that follows 
                                        through ``paragraph (3)(A)'' 
                                        and inserting the following:
                            ``(i) In general.--With respect to the 
                        specified Federal program described in 
                        paragraph (3)'';
                                            (bb) by redesignating 
                                        subclauses (II) through (IV) as 
                                        clauses (ii) through (iv) and 
                                        indenting appropriately;
                                            (cc) by striking 
                                        ``subclause (I)'' each place it 
                                        appears and inserting ``clause 
                                        (i)''; and
                                            (dd) in clause (iv) (as 
                                        redesignated by item (bb)), by 
                                        striking ``this clause'' and 
                                        inserting ``this 
                                        subparagraph'';
                            (iii) in subparagraph (E), by striking 
                        ``paragraph (3)(A) (relating to the 
                        supplemental security income program)'' and 
                        inserting ``paragraph (3)'';
                            (iv) in subparagraph (F);
                                    (I) by striking ``Federal 
                                programs'' and inserting ``Federal 
                                program''; and
                                    (II) by striking clauses (i) and 
                                (ii) and inserting the following:
                            ``(i) was lawfully residing in the United 
                        States on August 22, 1996; and
                            ``(ii) is blind or disabled (as defined in 
                        paragraph (2) or (3) of section 1614(a) of the 
                        Social Security Act (42 U.S.C. 1382c(a))).'';
                            (v) in subparagraph (G), by striking 
                        ``Federal programs'' and inserting ``Federal 
                        program'';
                            (vi) in subparagraph (H), by striking 
                        ``paragraph (3)(A) (relating to the 
                        supplemental security income program)'' and 
                        inserting ``paragraph (3)'';
                            (vii) by striking subparagraphs (I), (J), 
                        and (K); and
                            (viii) by striking subparagraph (L); and
                    (B) in paragraph (3)--
                            (i) by striking ``means any'' and all that 
                        follows through ``The supplemental'' and 
                        inserting ``means the supplemental''; and
                            (ii) by striking subparagraph (B).
            (2) Conforming amendments.--
                    (A) Section 402(b)(2)(F) of the Personal 
                Responsibility and Work Opportunity Reconciliation Act 
                of 1996 (8 U.S.C. 1612(b)(2)(F)) is amended by striking 
                ``subsection (a)(3)(A)'' and inserting ``subsection 
                (a)(3)''.
                    (B) Section 421(d) of the Personal Responsibility 
                and Work Opportunity Reconciliation Act of 1996 (8 
                U.S.C. 1631(d)) is amended by striking paragraph (3).
    (b) Five-Year Limited Eligibility of Qualified Aliens for Federal 
Means-Tested Public Benefit.--Section 403 of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1613) is amended--
            (1) in subsection (c)(2), by striking subparagraph (L) and 
        inserting the following:
                    ``(L) Assistance or benefits under the Food Stamp 
                Act of 1977 (7 U.S.C. 2011 et seq.).''; and
            (2) in subsection (d)--
                    (A) by striking ``not apply'' and all that follows 
                through ``(1) an individual'' and inserting ``not apply 
                to an individual''; and
                    (B) by striking ``; or'' and all that follows 
                through ``402(a)(3)(B)''.
    (c) Authority for States To Provide for Attribution of Sponsor's 
Income and Resources to the Qualified Alien With Respect to State 
Programs.--Section 422(b) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1632(b)) is amended by 
adding at the end the following:
            ``(8) Programs comparable to assistance or benefits under 
        the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).''.
    (d) Requirements for Sponsor's Affidavit of Support.--Section 
423(d) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1183a note; Public Law 104-193) is 
amended by adding at the end the following:
            ``(12) Benefits under the Food Stamp Act of 1977 (7 U.S.C. 
        2011 et seq.), if a sponsor is unable to make the reimbursement 
        because the sponsor experiences hardship (including bankruptcy, 
        disability, and indigence) or if the sponsor experiences severe 
        circumstances beyond the control of the sponsor, as determined 
        by the Secretary of Agriculture.''.
    (e) Derivative Eligibility for Benefits.--Section 436 of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(8 U.S.C. 1646) is repealed.
    (f) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), this 
        section and the amendments made by this section take effect on 
        the date of enactment of this Act.
            (2) Exceptions.--The amendments made by--
                    (A) subsection (a)(1)(A)(viii) take effect on April 
                1, 2003;
                    (B) subsection (a)(2)(B) take effect on October 1, 
                2003; and
                    (C) subsection (b) take effect on April 1, 2004.

SEC. 6102. CONFORMING FOOD STAMP AND MEDICAID INCOME DEFINITIONS; 
              SIMPLIFIED INCOME CALCULATIONS.

    Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is 
amended--
            (1) in paragraphs (16) and (17), by striking ``at the 
        option of the State agency,'' each place it appears; and
            (2) in paragraph (18), by striking ``regular payments from 
        a government source'' and all that follows through ``make the 
        payments,''.

SEC. 6103. PREVENTION OF HUNGER AMONG FAMILIES WITH CHILDREN.

    (a) Standard Deduction.--Section 5(e)(1) of the Food Stamp Act of 
1977 (7 U.S.C. 2014(e)(1)) is amended--
            (1) by striking ``8.31 percent'' each place it appears and 
        inserting ``the applicable percentage established under 
        subparagraph (C)''; and
            (2) by adding at the end the following:
                    ``(C) Applicable percentage.--The applicable 
                percentage referred to in subparagraphs (A) and (B) 
                shall be--
                            ``(i) for fiscal year 2003, 8.5 percent;
                            ``(ii) for fiscal year 2004, 9 percent;
                            ``(iii) for fiscal year 2005, 9.5 percent; 
                        and
                            ``(iv) for fiscal year 2006 and each 
                        subsequent fiscal year, 10 percent.''.
    (b) Application Date.--The amendments made by this section shall 
apply on the later of--
            (1) July 1, 2004; or
            (2) at the option of a State agency of a State (as those 
        terms are defined in section 3 of the Food Stamp Act of 1977 (7 
        U.S.C. 2012)), October 1, 2004.

SEC. 6104. ENCOURAGEMENT OF COLLECTION OF CHILD SUPPORT.

    (a) In General.--Section 5(e)(2) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(e)(2)) is amended--
            (1) by inserting ``and child support'' after ``income'';
            (2) in subparagraph (A)--
                    (A) by striking ``Definition of'' and all that 
                follows through ``not include'' and inserting the 
                following: ``Limitation on deduction.--A deduction 
                under this paragraph shall not apply to'';
                    (B) in clause (i), by striking ``or'';
                    (C) in clause (ii), by striking the period at the 
                end and inserting ``; or''; and
                    (D) by adding at the end the following:
                            ``(iii) child support received to the 
                        extent of any reduction in public assistance to 
                        the household as a result of receiving the 
                        support.''; and
            (3) in subparagraph (B)--
                    (A) by striking ``with earned income''; and
                    (B) by striking ``to compensate'' and all that 
                follows through the period and inserting the following: 
                ``and child support received from an identified or 
                putative parent of a child in the household if that 
                parent is not a household member.''.
    (b) Effective Date.--The amendments made by this section take 
effect on--
            (1) July 1, 2004; or
            (2) at the option of a State agency of a State (as those 
        terms are defined in section 3 of the Food Stamp Act of 1977 (7 
        U.S.C. 2012)), October 1, 2004.

SEC. 6105. ELIMINATION OF EXCESS SHELTER EXPENSE DEDUCTION CAP FOR 
              FAMILIES WITH HIGH SHELTER COSTS.

    Section 5(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(6)) 
is amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (B) and (C), respectively.

SEC. 6106. PERIODIC REDETERMINATION OF ELIGIBILITY.

    (a) In General.--Section 11(e) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(e)) is amended by striking paragraph (4) and inserting the 
following:
            ``(4)(A) that the State agency shall periodically require 
        the household to cooperate in a redetermination of eligibility 
        under procedures consistent with paragraph (2); and
            ``(B) that, in carrying out subparagraph (A), a State 
        agency--
                    ``(i) shall require a redetermination of 
                eligibility at least once--
                            ``(I) every 12 months; or
                            ``(II) every 24 months, if--
                                    ``(aa) the State agency has contact 
                                with the household at least once every 
                                12 months; and
                                    ``(bb) all adult household members 
                                are elderly or disabled;
                    ``(ii) except as provided in clause (iii), shall 
                continue to provide benefits to households during the 
                redetermination process; and
                    ``(iii) shall not provide further allotments to any 
                household that the State agency determines has refused 
                to cooperate in the redetermination of eligibility;''.
    (b) Conforming Amendments--
            (1) Section 3 of the Food Stamp Act of 1977 (7 U.S.C. 2012) 
        is amended by striking subsection (c).
            (2) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
        is amended--
                    (A) in subsection (d)(2), by striking ``in the 
                certification period''; and
                    (B) in subsection (e)--
                            (i) in paragraph (5)(B)(ii)(III), by 
                        striking ``has been anticipated for the 
                        certification period'' and inserting ``was 
                        anticipated when the household applied for 
                        benefits or at the most recent redetermination 
                        of eligibility''; and
                            (ii) in paragraph (6)(B)(iii)(II) (as 
                        redesignated by section 6105(2)), by striking 
                        ``the end of a certification period'' and 
                        inserting ``each redetermination of 
                        eligibility''.
            (3) Section 6(c)(1)(C)(iv) of the Food Stamp Act of 1977 (7 
        U.S.C. 2015(c)(1)(C)(iv)) is amended by striking 
        ``certification period'' each place it appears and inserting 
        ``interval between required redeterminations of eligibility''.
            (4) Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 
        2017) is amended--
                    (A) in the second sentence of paragraph (1), by 
                striking ``within a certification period''; and
                    (B) in paragraph (2)(B), by striking ``expiration 
                of'' and all that follows through ``certification 
                period,'' and inserting ``termination of benefits to a 
                household,''.
            (5) Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 
        2020(e) is amended--
                    (A) in paragraph (10)--
                            (i) by striking ``within the household's 
                        certification period''; and
                            (ii) by striking ``until such time'' and 
                        all that follows through ``occurs earlier''; 
                        and
                    (B) in paragraph (16), by striking 
                ``recertification'' and inserting ``redetermination of 
                the eligibility of''.

SEC. 6107. TRANSITIONAL BENEFITS OPTION.

    Section 11(s) of the Food Stamp Act of 1977 (7 U.S.C. 2020(s)) is 
amended--
            (1) in paragraph (2), by striking ``5 months'' and 
        inserting ``6 months'';
            (2) in paragraph (3), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) any changes in circumstances that may result 
                in an increase in the food stamp allotment of the 
                household and that the household elects to report (as 
                verified in accordance with standards established by 
                the Secretary).''; and
            (3) by striking paragraph (5) and inserting the following:
            ``(5) Limitation.--A household shall not be eligible for 
        transitional benefits under this subsection if the household 
        loses eligibility under section 6.''.

SEC. 6108. IMPROVING STATE INCENTIVES TO SERVE WORKING FAMILIES.

    (a) Targeted Quality Control System.--Section 16(c) of the Food 
Stamp Act of 1977 (7 U.S.C. 2025(c)) is amended--
            (1) in paragraph (2)(A), by inserting before the semicolon 
        the following: ``, as adjusted downward to eliminate any 
        increases that may result from the State agency serving a 
        higher percentage of households--
                    ``(i) with earned income than--
                            ``(I) the State agency served in fiscal 
                        year 1992; or
                            ``(II) the national average for the current 
                        year; and
                    ``(ii) containing 1 or more members who are not 
                United States citizens than--
                            ``(I) the State agency served in fiscal 
                        year 1998; or
                            ``(II) the national average for the current 
                        year'';
            (2) in paragraph (4), by striking the first sentence and 
        inserting the following: ``The Secretary may require a State 
        agency to report any factors that the Secretary considers 
        necessary to determine a State agency's payment error rate, 
        enhanced administrative funding, claim for payment error, or 
        performance under the measures under subsection (l).''; and
            (3) in paragraph (5), by striking the first sentence and 
        inserting the following: ``To facilitate the implementation of 
        this subsection each State agency shall expeditiously submit to 
        the Secretary data regarding its operations in each fiscal year 
        sufficient for the Secretary to comply with subsection (l) and 
        to establish the payment error rate for the State agency for 
        such fiscal year and determine the amount of either incentive 
        payments under paragraph (1)(A) or claims under subparagraph 
        (C) or (D) of paragraph (1).''.
    (b) Additional Bonuses for States That Serve Working Families.--
Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended by 
adding at the end the following:
    ``(l) Additional Bonuses for States That Serve Working Families.--
            ``(1) In general.--The Secretary shall measure--
                    ``(A) compliance with the deadlines under 
                paragraphs (3) and (9) of section 11(e);
                    ``(B) the percentage of negative eligibility 
                decisions that are made in error; and
                    ``(C) the number of households that have--
                            ``(i) incomes less than 130 percent of the 
                        poverty rate;
                            ``(ii) annual earnings equal to at least 
                        1000 times the Federal minimum hourly rate 
                        under the Fair Labor Standards Act of 1938 (29 
                        U.S.C. 201 et seq.); and
                            ``(iii) children under age 18;
                that receive food stamps in the State as a percentage 
                of the number of the low-income working households with 
                children in the State.
            ``(2) Bonus payments.--For each fiscal year, with respect 
        to each of the performance measures in paragraph (1), the 
        Secretary shall make excellence bonus payments of $1,000,000 
        to--
                    ``(A) each of the 5 States with the highest 
                performance; and
                    ``(B) each of the 5 States with the performance 
                that has most improved during the fiscal year.
            ``(3) Investigation.--
                    ``(A) In general.--For any fiscal year in which the 
                Secretary determines that a 95-percent statistical 
                probability exists that the performance of a State 
                agency with respect to any of the performance measures 
                in paragraph (1) is substantially worse than a level 
                the Secretary determines reasonable, the Secretary 
                shall investigate the State agency.
                    ``(B) Corrective action.--If the Secretary 
                determines that the administration by the State agency 
                has been deficient, the Secretary shall require the 
                State agency to take prompt corrective action.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section take effect on the date of 
        enactment of this Act.
            (2) Targeted quality control system.--The amendments made 
        by subsection (a) shall not apply with respect to any sanction, 
        appeal, agreement, or other action taken by the Secretary of 
        Agriculture or a State agency that is based on a payment error 
        rate established for any fiscal year before fiscal year 2003.

                     TITLE VII--FAIR START HOUSING

                     Subtitle A--Section 8 Vouchers

SEC. 7001. RENTAL ASSISTANCE VOUCHER PROGRAM.

    (a) In General.--The Secretary of Housing and Urban Development 
(referred to in this subtitle as the ``Secretary'') shall provide 
1,000,000 incremental housing vouchers for rental assistance under 
section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) during the 10 year period following the date of enactment of 
this Act.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as necessary to carry out this section.

SEC. 7002. VOUCHER SUCCESS FUND.

    (a) Voucher Success Fund.--
            (1) Establishment.--There is established the Voucher 
        Success Fund (referred to in this section as the ``Fund'').
            (2) Purposes.--The purposes of the Fund are--
                    (A) to address barriers that individuals encounter 
                in successfully utilizing voucher rental assistance 
                provided under section 8(o) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437f(o)); and
                    (B) to help improve the operation of that voucher 
                rental assistance program.
            (3) Uses of assistance.--The Secretary shall provide 
        assistance from the Fund to States on a competitive basis, 
        which assistance shall be used--
                    (A) by communities that are determined by an 
                appropriate State agency of the State to be 
                experiencing problems in utilizing voucher rental 
                assistance provided under section 8(o) of the United 
                States Housing Act of 1937 (42 U.S.C. 1437f(o)), 
                including--
                            (i) difficult market conditions;
                            (i) low rates of success for families 
                        attempting to use voucher rental assistance 
                        provided under that section;
                            (iii) concentrations of assisted families 
                        in high poverty neighborhoods; and
                            (iv) other program difficulties; and
                    (B) for activities that include--
                            (i) technical assistance to local public 
                        housing authorities or communities to improve 
                        the success of the voucher rental assistance 
                        program under section 8(o) of the United States 
                        Housing Act (42 U.S.C. 1437f(o));
                            (ii) assistance for families in using that 
                        assistance, including mobility counseling, 
                        assistance with security deposits, 
                        transportation, and other activities intended 
                        to increase the likelihood that families will 
                        succeed in leasing units or leasing units 
                        outside of areas of concentrated poverty; and
                            (iii) outreach to landlords and community 
                        groups to encourage participation in that 
                        voucher rental assistance program.
            (4) Monitoring systems.--The Secretary may use not more 
        than 1 percent of any amount made available to the Fund under 
        this section to establish monitoring systems for the Fund.
            (5) Report.--Not later than 12 months after the date of 
        enactment of this Act, the Secretary shall--
                    (A) conduct a detailed evaluation of the effect of 
                providing assistance under this section; and
                    (B) submit a report to Congress regarding the 
                evaluation conducted under subparagraph (A).
            (6) Authorization of appropriations.--There is authorized 
        to be appropriated to the Fund, $50,000,000 for each of the 
        fiscal years 2004 through 2013 to carry out this section.

           Subtitle B--National Affordable Housing Trust Fund

SEC. 7101. PURPOSES.

    The purposes of this subtitle are--
            (1) to fill the growing gap in the national ability to 
        build affordable housing by using profits generated by Federal 
        housing programs to fund additional housing activities, and not 
        supplant existing housing appropriations;
            (2) to enable rental housing to be built for those families 
        with the greatest need in areas with the greatest opportunities 
        in mixed-income settings; and
            (3) to promote homeownership for low-income families.

SEC. 7102. NATIONAL AFFORDABLE HOUSING TRUST FUND.

    (a) Establishment of Trust Fund.--There is established in the 
Treasury of the United States a trust fund to be known as the 
``National Affordable Housing Trust Fund'' (referred to in this 
subtitle as the ``Trust Fund'') for the purpose of promoting the 
development of affordable housing.
    (b) Deposits to the Trust Fund.--For fiscal year 2004 and each 
fiscal year thereafter, there is authorized to be appropriated to the 
Trust Fund an amount equal to the sum of--
            (1) any revenue generated by the Mutual Mortgage Insurance 
        Fund of the Federal Housing Administration in excess of the 
        amount necessary for the Mutual Mortgage Insurance Fund to 
        maintain a capital ratio of 3 percent for the preceding fiscal 
        year; and
            (2) any revenue generated by the Government National 
        Mortgage Association in excess of the amount necessary to pay 
        the administrative costs and expenses necessary to ensure the 
        safety and soundness of the Government National Mortgage 
        Association for the preceding fiscal year, as determined by the 
        Secretary of Housing and Urban Development.
    (c) Expenditures From the Trust Fund.--For fiscal year 2004 and 
each fiscal year thereafter, amounts appropriated to the Trust Fund 
shall be available to the Secretary of Housing and Urban Development 
for use in accordance with section 7103.

SEC. 7103. ADMINISTRATION OF NATIONAL AFFORDABLE HOUSING TRUST FUND.

    (a) Definitions.--In this section:
            (1) Affordable housing.--The term ``affordable housing'' 
        means housing for rental that bears rents not greater than the 
        lesser of--
                    (A) the existing fair market rent for comparable 
                units in the area, as established by the Secretary 
                under section 8 of the United States Housing Act of 
                1937 (42 U.S.C. 1437f); or
                    (B) a rent that does not exceed 30 percent of the 
                adjusted income of a family whose income equals 65 
                percent of the median income for the area, as 
                determined by the Secretary, with an adjustment for the 
                number of bedrooms in the unit, except that the 
                Secretary may establish income ceilings that are higher 
                or lower than 65 percent of the median for the area if 
                the Secretary finds that such variations are necessary 
                because of prevailing levels of construction costs or 
                fair market rents, or unusually high or low family 
                incomes.
            (2) Continued assistance rental subsidy program.--The term 
        ``continued assistance rental subsidy program'' means a program 
        under which--
                    (A) project-based assistance is provided, for not 
                more than 3 years, to a family in an affordable housing 
                unit developed with assistance made available under 
                subsection (c) or (d) in a project that partners with a 
                public housing agency, which agency agrees--
                            (i) to provide the assisted family with a 
                        priority for the receipt of a voucher under 
                        section 8(o) of the United States Housing Act 
                        of 1937 (42 U.S.C. 1437f(o)) if the family 
                        chooses to move after the initial year of 
                        occupancy; and
                            (ii) to refer eligible voucher holders to 
                        the property when a vacancy occurs; and
                    (B) after 3 years, subject to appropriations, 
                continued assistance is provided under section 8(o) of 
                the United States Housing Act of 1937 (42 U.S.C. 
                1437f(o)), notwithstanding any provision to the 
                contrary in that section, if--
                            (i) the program is administered to provide 
                        families with the option of continued 
                        assistance with tenant-based vouchers if such a 
                        family chooses to move after the initial year 
                        of occupancy; and
                            (ii) the public housing agency agrees to 
                        refer eligible voucher holders to the property 
                        when a vacancy occurs.
            (3) Eligible activity.--The term ``eligible activity'' 
        means an activity that relates to the development of affordable 
        housing, including--
                    (A) the construction of new housing;
                    (B) the acquisition of real property;
                    (C) site preparation and improvement, including 
                demolition;
                    (D) substantial rehabilitation of existing housing; 
                and
                    (E) rental subsidy for not more than 3 years under 
                a continued assistance rental subsidy program.
            (4) Eligible entity.--The term ``eligible entity'' includes 
        any public or private nonprofit or for-profit entity, unit of 
        local government, regional planning entity, and any other 
        entity engaged in the development of affordable housing, as 
        determined by the Secretary.
            (5) Eligible intermediary.--The term ``eligible 
        intermediary'' means--
                    (A) a nonprofit community development corporation;
                    (B) a community development financial institution 
                (as defined in section 103 of the Community Development 
                Banking and Financial Institutions Act of 1994 (12 
                U.S.C. 4702));
                    (C) a State or local trust fund;
                    (D) any entity eligible for assistance under 
                section 4 of the HUD Demonstration Act of 1993 (42 
                U.S.C. 9816 note);
                    (E) a national, regional, or statewide nonprofit 
                organization; and
                    (F) any other appropriate nonprofit entity, as 
                determined by the Secretary.
            (6) Extremely low-income families.--The term ``extremely 
        low-income families'' means very low-income families (as 
        defined in section 3(b) of the United States Housing Act of 
        1937 (42 U.S.C. 1437a(b)) whose incomes do not exceed 30 
        percent of the median family income for the area, as determined 
        by the Secretary with adjustments for smaller and larger 
        families, except that the Secretary may establish income 
        ceilings that are higher or lower than 30 percent of the median 
        for the area if the Secretary finds that such variations are 
        necessary because of unusually high or low family incomes.
            (7) Low-income families.--The term ``low-income families'' 
        has the same meaning as in section 3(b) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (8) Non-Federal sources.--Non-Federal sources include--
                    (A) 50 percent of funds allocable to tax credits 
                allocated under section 42 of the Internal Revenue Code 
                of 1986;
                    (B) 50 percent of revenue from mortgage revenue 
                bonds issued under section 143 of that Code; and
                    (C) 50 percent of proceeds from the sale of tax 
                exempt bonds.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (10) State.--The term ``State'' has the same meaning as in 
        section 3(b) of the United States Housing Act of 1937 (42 
        U.S.C. 1437a(b)).
    (b) Allocation to States and Eligible Intermediaries.--For fiscal 
year 2004 and each fiscal year thereafter, of the total amount made 
available to the Secretary from the Trust Fund under section 7102(c)--
            (1) 75 percent shall be used by the Secretary to award 
        grants to States in accordance with subsection (c); and
            (2) 25 percent shall be used by the Secretary to award 
        grants to eligible intermediaries in accordance with subsection 
        (d).
    (c) Grants to States.--
            (1) In general.--Subject to paragraph (2), from the amount 
        made available for each fiscal year under subsection (b)(1), 
        the Secretary shall award grants to States, in accordance with 
        an allocation formula established by the Secretary, based on 
        the pro rata share of each State of the total need among all 
        States for an increased supply of affordable housing, as 
        determined on the basis of--
                    (A) the number and percentage of families in the 
                State that live in substandard housing;
                    (B) the number and percentage of families in the 
                State that pay more than 50 percent of their annual 
                income for housing costs;
                    (C) the number and percentage of persons living at 
                or below the poverty level in the State;
                    (D) the cost of developing or carrying out 
                substantial rehabilitation of housing in the State;
                    (E) the age of the multifamily housing stock in the 
                State; and
                    (F) such other factors as the Secretary determines 
                to be appropriate.
            (2) Grant amount.--The amount of a grant award to a State 
        under this subsection shall be equal to the lesser of--
                    (A) 4 times the amount of assistance provided by 
                the State from non-Federal sources; and
                    (B) the allocation determined in accordance with 
                paragraph (1).
            (3) Award of state allocation to certain entities.--
                    (A) In general.--If the amount provided by a State 
                from non-Federal sources is less than 25 percent of the 
                amount that would be awarded to the State under this 
                subsection based on the allocation formula described in 
                paragraph (1), then not later than 60 days after the 
                date on which the Secretary determines that the State 
                is not eligible for the full allocation determined 
                under paragraph (1), the Secretary shall publish a 
                notice regarding the availability of the funds for 
                which the State is ineligible.
                    (B) Applications.--Not later than 9 months after 
                the date of publication of a notice of funding 
                availability under subparagraph (A), a nonprofit or 
                public entity (or a consortium thereof, which may 
                include units of local government working together on a 
                regional basis) may submit to the Secretary an 
                application for the available assistance or a portion 
                of the available assistance, which application shall 
                include--
                            (i) a certification that the applicant will 
                        provide assistance in an amount equal to 25 
                        percent of the amount of assistance made 
                        available to the applicant under this 
                        paragraph; and
                            (ii) an allocation plan that meets the 
                        requirements of paragraph (4)(B) for use or 
                        distribution in the State of any assistance 
                        made available to the applicant under this 
                        paragraph and the assistance provided by the 
                        applicant for purposes of clause (i).
                    (C) Award of assistance.--The Secretary shall award 
                the amount that is not awarded to a State by operation 
                of paragraph (2) to 1 or more applicants that meet the 
                requirements of subparagraph (B) of this paragraph that 
                are selected by the Secretary based on selection 
                criteria, established by regulation of the Secretary.
            (4) Distribution to eligible entities.--
                    (A) In general.--Of the amount that a State 
                receives under a grant award under this subsection and 
                the assistance provided by the State from non-Federal 
                sources for purposes of paragraph (2)(A) to eligible 
                entities for the purpose of assisting those entities in 
                carrying out eligible activities in the State, the 
                State shall distribute--
                            (i) 75 percent to eligible entities for 
                        eligible activities relating to the development 
                        of affordable housing for rental by extremely 
                        low-income families in the State; and
                            (ii) 25 percent to eligible entities for 
                        eligible activities relating to the development 
                        of affordable housing for rental by low-income 
                        families in the State, or for homeownership 
                        assistance for low-income families in the 
                        State.
                    (B) Allocation plan.--Each State shall, after 
                giving notice to the public, an opportunity for public 
                comment, and consideration of public comments received, 
                establish an allocation plan for the distribution of 
                assistance under this paragraph, which plan shall be 
                submitted to the Secretary and shall be made available 
                to the public by the State, and which shall include--
                            (i) application requirements for eligible 
                        entities seeking to receive assistance under 
                        this paragraph, including a requirement that 
                        each application include--
                                    (I) a certification by the 
                                applicant that any housing developed 
                                with assistance under this paragraph 
                                will remain affordable for extremely 
                                low-income families or low-income 
                                families, as applicable, for not less 
                                than 40 years;
                                    (II) a certification by the 
                                applicant that the tenant contribution 
                                towards rent for a family that resides 
                                in a unit developed with assistance 
                                under this paragraph will not exceed 30 
                                percent of the adjusted income of that 
                                family; and
                                    (III) a certification by the 
                                applicant that the owner of a project 
                                in which any housing developed with 
                                assistance under this paragraph is 
                                located will make a percentage of units 
                                in the project available to families 
                                assisted under the voucher program 
                                under section 8(o) of the United States 
                                Housing Act of 1937 (42 U.S.C. 
                                1437f(o)) on the same basis as other 
                                families eligible for the housing 
                                (except that only the expected share of 
                                rent of the voucher holder shall be 
                                considered), which percentage shall not 
                                be less than the percentage of the 
                                total cost of developing or 
                                rehabilitating the project that is 
                                funded with assistance under this 
                                paragraph; and
                            (ii) factors for consideration in selecting 
                        among applicants that meet the application 
                        requirements under clause (i), which factors 
                        shall give preference to applicants based on--
                                    (I) the amount of assistance for 
                                the eligible activities leveraged by 
                                the applicant from private and other 
                                non-Federal sources, including 
                                assistance made available under section 
                                8 of the United States Housing Act of 
                                1937 (42 U.S.C. 1437f) that is devoted 
                                to the project in which the housing to 
                                be developed with assistance under this 
                                paragraph is located;
                                    (II) the extent of local assistance 
                                that will be provided in carrying out 
                                the eligible activities, including--
                                            (aa) financial assistance; 
                                        and
                                            (bb) the extent to which 
                                        the applicant has worked with 
                                        the unit of local government in 
                                        which the housing will be 
                                        located to address issues of 
                                        siting and exclusionary zoning 
                                        or other policies that are 
                                        barriers to affordable housing;
                                    (III) the degree to which the 
                                development in which the housing will 
                                be located is mixed-income;
                                    (IV) whether the housing will be 
                                located in a census tract in which the 
                                poverty rate is less than 20 percent;
                                    (V) whether the housing will be 
                                located in a community undergoing 
                                revitalization;
                                    (VI) the extent of employment and 
                                other opportunities for low-income 
                                families in the area in which the 
                                housing will be located; and
                                    (VII) the extent to which the 
                                applicant demonstrates the ability to 
                                maintain units as affordable for 
                                extremely low-income or low-income 
                                families, as applicable, through the 
                                use of assistance made available under 
                                this paragraph, assistance leveraged 
                                from non-Federal sources, assistance 
                                made available under section 8 of the 
                                United States Housing Act of 1937 (42 
                                U.S.C. 1437f), State or local 
                                assistance, programs to increase tenant 
                                income, cross-subsidization, and any 
                                other resources.
                    (C) Forms of assistance.--
                            (i) In general.--Assistance distributed 
                        under this paragraph may be in the form of 
                        capital grants, non-interest bearing or low-
                        interest loans or advances, deferred payment 
                        loans, guarantees, and any other forms of 
                        assistance approved by the Secretary.
                            (ii) Repayments.--If a State awards 
                        assistance under this paragraph in the form of 
                        a loan or other mechanism by which funds are 
                        later repaid to the State, any repayments 
                        received by the State shall be distributed by 
                        the State in accordance with the allocation 
                        plan described in subparagraph (B) during the 
                        following fiscal year.
                    (D) Coordination with other assistance.--In 
                distributing assistance under this paragraph, each 
                State shall, to the maximum extent practicable, 
                coordinate the distribution with the provision of other 
                affordable housing assistance by the State, including--
                            (i) housing credit dollar amounts allocated 
                        by the State under section 42(h) of the 
                        Internal Revenue Code of 1986;
                            (ii) assistance made available under the 
                        HOME Investment Partnerships Act (42 U.S.C. 
                        12721 et seq.) or the community development 
                        block grant program; and
                            (iii) private activity bonds.
    (d) National Competition.--
            (1) In general.--From the amount made available for each 
        fiscal year under subsection (b)(2), the Secretary shall award 
        grants on a competitive basis to eligible intermediaries, which 
        grants shall be used in accordance with paragraph (3) of this 
        subsection.
            (2) Application requirements and selection criteria.--The 
        Secretary, by regulation, shall establish application 
        requirements and selection criteria for the award of 
        competitive grants to eligible intermediaries under this 
        subsection, which criteria shall include--
                    (A) the ability of the eligible intermediary to 
                meet housing needs of low-income families on a national 
                or regional scope;
                    (B) the capacity of the eligible intermediary to 
                use the grant award in accordance with paragraph (3), 
                based on the past performance and management of the 
                applicant; and
                    (C) the extent to which the eligible intermediary 
                has leveraged funding from private and other non-
                Federal sources for the eligible activities.
            (3) Use of grant award.--
                    (A) In general.--Except as provided in subparagraph 
                (B), of the amount of a grant made available under this 
                subsection, an eligible intermediary shall ensure 
                that--
                            (i) 75 percent shall be used for eligible 
                        activities relating to the development of 
                        affordable housing for rental by extremely low-
                        income families; and
                            (ii) 25 percent shall be used for eligible 
                        activities relating to the development of 
                        affordable housing for rental by low-income 
                        families, or for homeownership assistance for 
                        low-income families.
                    (B) Exception.--
                            (i) In general.--If a grant made available 
                        under this subsection is used for a project 
                        described in clause (ii), an eligible 
                        intermediary may use that amount for eligible 
                        activities relating to the development of 
                        housing for rental by families whose incomes 
                        are less than 60 percent of the area median 
                        income, and for homeownership activities for 
                        families whose incomes are less than 80 percent 
                        of area median income.
                            (ii) Project contributing to a concerted 
                        community revitalization plan.--A project is 
                        described in this clause if--
                                    (I) it is located in a community 
                                undergoing concerted revitalization and 
                                is contributing to a community 
                                revitalization plan; and
                                    (II) it is located in a census 
                                tract in which--
                                            (aa) the median household 
                                        income is less than 60 percent 
                                        of the area median income; or
                                            (bb) the rate of poverty is 
                                        greater than 20 percent.
                    (C) Plan of use.--Each eligible intermediary that 
                receives a grant under this subsection shall establish 
                a plan for the use or distribution of the amount made 
                available under the grant, which plan shall be 
                submitted to the Secretary and shall include 
                information relating to the manner in which the 
                eligible intermediary will either use or distribute 
                that amount, including--
                            (i) a certification that assistance under 
                        this subsection will be used to supplement 
                        assistance leveraged from private and other 
                        non-Federal sources, including assistance made 
                        available under section 8 of the United States 
                        Housing Act of 1937 (42 U.S.C. 1437f) that is 
                        devoted to the project in which the housing to 
                        be developed is located;
                            (ii) a certification that local assistance 
                        will be provided in carrying out the eligible 
                        activities, which may include--
                                    (I) financial assistance; and
                                    (II) a good faith effort to work 
                                with the unit of local government in 
                                which the housing will be located to 
                                address issues of siting and 
                                exclusionary zoning or other policies 
                                that are barriers to affordable 
                                housing;
                            (iii) a certification that any housing 
                        developed with assistance under this subsection 
                        will remain affordable for extremely low-income 
                        families or low-income families, as applicable, 
                        for not less than 40 years;
                            (iv) a certification that any housing 
                        developed by the applicant with assistance 
                        under this subsection will be located--
                                    (I) in a mixed-income development 
                                in a census tract having a poverty rate 
                                of not more than 20 percent, and near 
                                employment and other opportunities for 
                                low-income families; or
                                    (II) in a community undergoing 
                                revitalization;
                            (v) a certification that the tenant 
                        contribution toward rent for a family residing 
                        in a unit developed with assistance under this 
                        paragraph will not exceed 30 percent of the 
                        adjusted income of that family; and
                            (vi) a certification by the applicant that 
                        the owner of a project in which any housing 
                        developed with assistance under this subsection 
                        is located will make a percentage of units in 
                        the project available to families assisted 
                        under the voucher program under section 8(o) of 
                        the United States Housing Act of 1937 (42 
                        U.S.C. 1437f(o)) on the same basis as other 
                        families eligible for the housing (except that 
                        only the expected share of rent of the voucher 
                        holder shall be considered), which percentage 
                        shall not be less than the percentage of the 
                        total cost of developing or rehabilitating the 
                        project that is funded with assistance under 
                        this subsection.
                    (D) Forms of assistance.--
                            (i) In general.--An eligible intermediary 
                        may distribute the amount made available under 
                        a grant under this subsection in the form of 
                        capital grants, non-interest bearing or low-
                        interest loans or advances, deferred payment 
                        loans, guarantees, and other forms of 
                        assistance.
                            (ii) Repayments.--If an eligible 
                        intermediary awards assistance under this 
                        subsection in the form of a loan or other 
                        mechanism by which funds are later repaid to 
                        the eligible intermediary, any repayments 
                        received by the eligible intermediary shall be 
                        distributed by the eligible intermediary in 
                        accordance with the plan of use described in 
                        subparagraph (C) during the following fiscal 
                        year.

SEC. 7104. REGULATIONS.

    Not later than 6 months after the date of enactment of this Act, 
the Secretary of Housing and Urban Development shall promulgate 
regulations to carry out this subtitle.

            Subtitle C--Housing Preservation Matching Grants

SEC. 7201. SHORT TITLE.

    This subtitle may be cited as the ``Housing Preservation Matching 
Grant Act of 2003''.

SEC. 7202. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) since 1996, almost 200,000 affordable housing dwelling 
        units in the United States have been lost through termination 
        of low income affordability requirements, which usually 
        involves the prepayment of the outstanding principal balance 
        under the mortgage on the project in which such units are 
        located;
            (2) more than 265,000 affordable housing dwelling units in 
        the United States are at risk of prepayment;
            (3) the loss of the privately owned, federally assisted 
        affordable housing, which is occurring during a period when 
        rents for unassisted housing are increasing and few units of 
        additional affordable housing are being developed, will cause 
        unacceptable harm on current tenants of affordable housing and 
        will precipitate a national crisis in the supply of housing for 
        low-income households;
            (4) the demand for affordable housing far exceeds the 
        supply of affordable housing, as evidenced by studies in 1998 
        that found that--
                    (A) 5,500,000 households (1 in 7 American families) 
                have worst-case housing needs; and
                    (B) the number of families with at least one full-
                time worker and having worst-case housing needs 
                increased from 1997 to 1999 from 3,000,000 to 
                3,700,000;
            (5) the shortage of affordable housing in the United States 
        reached a record high in 1995, when the number of low-income 
        households exceeded the number of low-cost rental dwelling 
        units by 4,400,000;
            (6) between 1991 and 1999, there were 1,000,000 fewer 
        affordable units for eligible low-income families, and most of 
        the loss was between 1997 and 1999, when there were 750,000 
        fewer affordable units;
            (7) there are nearly 2 low-income renters in the United 
        States for every low-cost rental dwelling unit;
            (8) 62 percent of eligible low-income households receive no 
        housing assistance, and approximately 2,000,000 low-income 
        households remain on waiting lists for affordable housing;
            (9) the shortage of affordable housing dwelling units 
        results in low-income households that are not able to acquire 
        low-cost rental units paying large proportions of their incomes 
        for rent; and
            (10) 14,000,000 renters pay more than 30 percent of their 
        incomes for rent and utilities, and 7,000,000 renters pay 50 
        percent or more of their incomes for rent and utilities.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to promote the preservation of affordable housing units 
        by providing matching grants to States that have developed and 
        funded programs for the preservation of privately owned housing 
        that is affordable to low-income families and persons and was 
        produced for such purpose with Federal assistance;
            (2) to minimize the involuntary displacement of tenants who 
        are currently residing in such housing, many of whom are 
        elderly or disabled persons; and
            (3) to continue the partnerships among the Federal 
        Government, State and local governments, and the private sector 
        in operating and assisting housing that is affordable to low-
        income Americans.

SEC. 7203. DEFINITIONS.

    In this subtitle:
            (1) Low-income affordability restriction.--The term ``low-
        income affordability restriction'' means, with respect to a 
        housing project, any limitation imposed by regulation or 
        regulatory agreement on rents for tenants of the project, rent 
        contributions for tenants of the project, or income-eligibility 
        for occupancy in the project.
            (2) Project-based assistance.--The term ``project-based 
        assistance'' has the same meaning as in section 16(c) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437n(c)), except 
        that the term includes assistance under any successor program 
        to any program referred to in that section.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (4) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Commonwealth of the Northern 
        Mariana Islands, Guam, the Virgin Islands, American Samoa, and 
        any other territory or possession of the United States.

SEC. 7204. AUTHORITY.

    The Secretary shall, to the extent that amounts are made available 
pursuant to section 7211, make grants under this subtitle to States for 
low-income housing preservation.

SEC. 7205. APPLICATIONS.

    (a) In General.--Each State that seeks a grant under this subtitle 
shall submit an application to the Secretary (through an appropriate 
State agency) at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require.
    (b) Contents.--Each application submitted pursuant to subsection 
(a) shall contain any information and certifications necessary for the 
Secretary to determine whether the State is eligible to receive a grant 
under this subtitle.

SEC. 7206. USE OF GRANTS.

    (a) In General.--Amounts from grants made under this subtitle may 
be used by States only for assistance for acquisition, preservation 
incentives, operating costs, and capital expenditures for a housing 
project that meets the requirements of subsection (b), (c), or (d).
    (b) Projects With HUD-Insured Mortgages.--A project meets the 
requirements of this subsection only if--
            (1) the project is financed by a loan or mortgage that is--
                    (A) insured or held by the Secretary under section 
                221(d)(3) of the National Housing Act (12 U.S.C. 
                1715l(d)(3)) and the project is receiving loan 
                management assistance under section 8 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437f) due to a 
                conversion from section 101 of the Housing and Urban 
                Development Act of 1965 (12 U.S.C. 1701s);
                    (B) insured or held by the Secretary and bears 
                interest at a rate determined under the proviso of 
                section 221(d)(5) of the National Housing Act (12 
                U.S.C. 1715l(d)(5));
                    (C) insured, assisted, or held by the Secretary or 
                a State or State agency under section 236 of the 
                National Housing Act (12 U.S.C. 1715z-1); or
                    (D) held by the Secretary and formerly insured 
                under a program referred to in subparagraph (A), (B), 
                or (C);
            (2) with respect to the mortgage referred to in paragraph 
        (1), the project is subject to an unconditional waiver of--
                    (A) all rights to any prepayment of the mortgage; 
                and
                    (B) all rights to any voluntary termination of the 
                mortgage insurance contract for the mortgage; and
            (3) the owner of the project has entered into binding 
        commitments (applicable to any subsequent owner) to extend all 
        low-income affordability restrictions for the project, 
        including any such restrictions imposed because of any contract 
        for project-based assistance for the project.
    (c) Projects With Section 8 Project-Based Assistance.--A project 
meets the requirements of this subsection only if--
            (1) the project is subject to a contract for project-based 
        assistance; and
            (2) the owner of the project has entered into binding 
        commitments (applicable to any subsequent owner)--
                    (A) to extend the project-based assistance for the 
                maximum period allowable under law (subject to the 
                availability of amounts for such purpose); and
                    (B) to extend any low-income affordability 
                restrictions applicable to the project in connection 
                with the project-based assistance.
    (d) Projects Purchased by Residents.--A project meets the 
requirements of this subsection only if the project--
            (1) is or was eligible low-income housing (as defined in 
        section 229 of the Low-Income Housing Preservation and Resident 
        Homeownership Act of 1990 (12 U.S.C. 4119); and
            (2) has been purchased by a resident council for the 
        housing, or is approved by the Secretary for such purchase, for 
        conversion to homeownership housing under a resident 
        homeownership program meeting the requirements of section 226 
        of the Low-Income Housing Preservation and Resident 
        Homeownership Act of 1990 (12 U.S.C. 4116).
    (e) Combination of Assistance.--Notwithstanding subsection (a), any 
project that is otherwise eligible for assistance with grant amounts 
provided under this subtitle because the project meets the requirements 
under subsection (b) or (c), and that also meets the requirements under 
paragraph (1) of the other of such subsections, shall be eligible for 
assistance under this subtitle only if the project complies with all of 
the requirements under such other subsection.

SEC. 7207. GRANT AMOUNT LIMITATION.

    The Secretary shall limit the portion of the aggregate amount of 
grants under this subtitle made available for any fiscal year that may 
be provided to a single State based upon the proportion of the need of 
that State (as determined by the Secretary) for assistance under this 
subtitle to the aggregate need among all States approved for assistance 
under this subtitle for that fiscal year.

SEC. 7208. MATCHING REQUIREMENTS.

    (a) In General.--The Secretary may not make a grant under this 
subtitle to any State for any fiscal year in an amount that exceeds 
twice the amount that the State certifies, as the Secretary shall 
require, that the State will contribute for such fiscal year, or has 
contributed since January 1, 2003, from non-Federal sources for the 
purposes under section 7206(a).
    (b) Treatment of Previous Contributions.--Any portion of amounts 
contributed after January 1, 2003, that are counted for the purpose of 
meeting the requirement under subsection (a) for a fiscal year may not 
be counted for such purpose for any subsequent fiscal year.
    (c) Treatment of Tax Credits.--Tax credits provided under section 
42 of the Internal Revenue Code of 1986, and proceeds from the sale of 
tax-exempt bonds by any State or local government entity shall not be 
considered non-Federal sources for purposes of this section.

SEC. 7209. TREATMENT OF SUBSIDY LAYERING REQUIREMENTS.

    Neither section 7208 nor any other provision of this subtitle may 
be construed to prevent the use of tax credits provided under section 
42 of the Internal Revenue Code of 1986, in connection with housing 
assisted with grant amounts provided under this subtitle, to the extent 
that such use is in accordance with section 102(d) of the Department of 
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545(d)) 
and section 911 of the Housing and Community Development Act of 1992 
(42 U.S.C. 3545 note).

SEC. 7210. REGULATIONS.

    The Secretary may issue regulations to carry out this subtitle.

SEC. 7211. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for grants under this 
subtitle such sums as are necessary for each of the fiscal years 2004 
through 2008.

                         TITLE VIII--SAFE START

            Subtitle A--Promotion of Permanency for Children

SEC. 8001. REIMBURSEMENT FOR PREVENTIVE, PROTECTIVE, CRISIS, 
              PERMANENCY, INDEPENDENT LIVING, AND POST-PERMANENCY 
              SERVICES AND ACTIVITIES.

    (a) In General.--Part E of title IV of the Social Security Act (42 
U.S.C. 670 et seq.) is amended by inserting after section 474 the 
following:

``SEC. 474A. PAYMENTS FOR PREVENTIVE, PROTECTIVE, CRISIS, PERMANENCY, 
              INDEPENDENT LIVING, AND POST-PERMANENCY SERVICES AND 
              ACTIVITIES.

    ``(a) In General.--In addition to any other payments made to a 
State under this title, for each quarter beginning after September 30, 
2003, the Secretary shall pay each State which has a plan approved 
under this part and that opts to receives payments under this section, 
a payment, subject to subsection (e), equal to the Federal medical 
assistance percentage of the costs of providing the services and 
activities described in subsection (b) in order to ensure that the 
timelines set forth in section 475(5), as added by the Adoption and 
Safe Families Act of 1997, can be honored and the goals of safety and 
permanence for children will be realized.
    ``(b) Services and Activities Described.--The services and 
activities described in this subsection are as follows:
            ``(1) Preventive, protective, and crisis services.--
                    ``(A) In general.--Preventive, protective, and 
                crisis services for children and parents who come to 
                the attention of the State or a local agency and whose 
                cases are referred for assessment or investigation 
                because of a concern about the risk of abuse or 
                neglect.
                    ``(B) Requirements.--In the case of services other 
                than investigation and assessment--
                            ``(i) the agency and the parents must have 
                        agreed to the provision of such services in the 
                        case plan for the family; and
                            ``(ii) funding for such services under this 
                        part shall be provided for not more than 18 
                        months within a 48 month period, consistent 
                        with the exception provided in subsection (c).
            ``(2) Permanency services.--Permanency services for 
        children and parents to help ensure that when a child is placed 
        in foster care, prompt decisions can be made about the 
        appropriate permanency plan for the child, but only if the 
        agency and the parents have agreed to the provision of such 
        services to the parents in the case plan for the family and 
        funding for such services under this part (other than foster 
        care maintenance payments under section 472) will be provided 
        for not more than 18 months within a 48 month period, 
        consistent with the exception provided in subsection (c).
            ``(3) Post-permanency services.--
                    ``(A) In general.--Post-permanency services for 
                children and their parents or other caregivers when 
                children have been in foster care funded under this 
                part and are returned to their birth families, are in 
                adoptive families, or are placed permanently with a 
                legal guardian or a fit and willing relative, if the 
                agency and the child's caregivers have agreed to the 
                provision of such services in the case plan for the 
                family, but only to the extent that--
                            ``(i) with respect to such services for 
                        children returned to their birth families, such 
                        services are provided for not more than 18 
                        months within a 48 month period, consistent 
                        with the exception provided in subsection (c); 
                        and
                            ``(ii) with respect to such services for 
                        children who are adopted from foster care or 
                        placed permanently with a legal guardian or a 
                        fit and willing relative, such services are 
                        provided on an as-needed basis consistent with 
                        the child and family service plan.
            ``(4) Application to certain children.--With respect to the 
        services described in paragraph (1), (2), or (3) that are 
        provided to children who have come to the attention of the 
        State or a local agency before the date of enactment of the 
        Leave No Child Behind Act of 2003, the 18-month time limit for 
        such services for such children shall commence on a date 
        determined by the State that is not more than 180 days after 
        such date of enactment.
            ``(5) Independent living services.--Independent living 
        services to help children who are likely to remain in foster 
        care until attaining 18 years of age and children who are 
        former foster care recipients who have not attained 21 years of 
        age make the transition to self-sufficiency by providing 
        services such as assistance in obtaining a high school diploma, 
        a General Equivalency Diploma, or post-secondary education or 
        training, career exploration, vocational training, job 
        placement and retention, training in daily living skills, 
        budgeting and financial management skills, substance abuse 
        prevention, preventive health activities, financial, housing, 
        counseling, personal or emotional support (through interaction 
        with dedicated adults), and other appropriate support services.
    ``(c) Safety Exception.--
            ``(1) In general.--Subject to paragraph (2), beginning with 
        fiscal year 2004, a State may exempt up to the number of 
        children and parents receiving any of the services described in 
        subsection (b) that equals 20 percent of the number of such 
        children and parents who received such services during the 
        preceding fiscal year, from the time limits specified for such 
        services in such subsection in order to help ensure that 
        children will be served safely and appropriately in accordance 
        with their individual needs.
            ``(2) Biennial review.--
                    ``(A) Excepted cases.--A State shall biennially 
                review the cases excepted under paragraph (1), in 
                accordance with guidelines developed by the Secretary, 
                to ensure the continued appropriateness of the 
                exceptions and to determine the circumstances under 
                which such exceptions have been made, and shall report 
                the findings of the review to the Secretary. Such 
                report shall include a recommendation, if necessary, 
                that the Secretary allow the State to adjust the 
                maximum percentage for such exceptions to address 
                changed circumstances. A State may proceed in 
                accordance with the recommendation unless the Secretary 
                disapproves the recommendation within 60 days of the 
                receipt of the recommendation.
                    ``(B) Foster care children.--In addition to the 
                review required under subparagraph (A), a State shall 
                biennially review, in accordance with guidelines 
                developed by the Secretary, the cases of children who 
                have remained in foster care and for which foster care 
                maintenance payments (as defined in section 474(4)) 
                have been made for more than 18 months and submit a 
                report on such review to the Secretary. Such report 
                shall describe, with respect to each such child, the 
                child's age, special needs (if any), type of placement, 
                and the length of time that the child has been in 
                foster care.
                    ``(C) Report.--Not later than January 1, 2008, and 
                January 1 of every other year thereafter, the Secretary 
                shall submit a report to Congress on the reviews and 
                recommendations required under subparagraphs (A) and 
                (B) for the preceding fiscal year. Such report shall 
                include a summary of the Secretary's findings on the 
                appropriateness of the safety exceptions and the 
                States' progress in meeting the needs of the children 
                who receive services or foster care for more than 18 
                months.
    ``(d) No Payment For Services Reimbursable under Title XIX.--No 
payments may be made under this section for any services described in 
subsection (b) that the State is reimbursed for under title XIX.
    ``(e) Maintenance of Effort.--A State may not receive payments 
under this section unless, for fiscal year 2004 and each fiscal year 
thereafter, the total State and local expenditures for services and 
activities described in subsection (b) for that fiscal year equals or 
exceeds the total of such expenditures for fiscal year 2003.''.
    (b) State Plan Amendment.--Section 471(a) of such Act (42 U.S.C. 
671(a)) is amended--
            (1) in paragraph (23)(B), by striking ``and'' at the end;
            (2) in paragraph (24), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(25) provides that the State shall describe--
                    ``(A) prior to the beginning of a fiscal year, the 
                types of preventive, protective, crisis, permanency, 
                independent living, and post-permanency services that 
                the State expects to be made available under the plan 
                during that fiscal year;
                    ``(B) the populations expected to be provided such 
                services during the fiscal year;
                    ``(C) notwithstanding paragraph (3), the geographic 
                areas in the State in which the services are likely to 
                be available during the fiscal year;
                    ``(D) the role of public and nonprofit private 
                agencies and community-based organizations referred to 
                in section 432(b)(1) in the planning and decisionmaking 
                regarding which such services would be provided during 
                the fiscal year and how the services to be provided 
                would promote safety and permanence for children; and
                    ``(E) prior to the beginning of the third fiscal 
                year of implementation of such services, and prior to 
                the beginning of each fiscal year thereafter, what the 
                State proposes to do to reduce the length of time 
                families need to receive services from the State 
                agency.''.

SEC. 8002. CHILD AND FAMILY SERVICE PLAN AND CASE REVIEWS.

    (a) In General.--Section 471(a)(16) of the Social Security Act (42 
U.S.C. 671(a)(16)) is amended--
            (1) by inserting ``(A)'' after ``(16)'';
            (2) by adding ``and'' after the semicolon; and
            (3) by adding at the end the following:
            ``(B)(i) provides for the development of a child and family 
        service plan and for case reviews by a citizen review board or 
        an administrative review body no less frequently than once 
        every 6 months for each child and family member receiving 
        preventive, protective, crisis, permanency, independent living, 
        or post-permanency services; and
            ``(ii) provides that each child and family service plan 
        developed under clause (i) shall describe the steps taken to 
        assure the safety of the child, provide the services that are 
        needed and, where applicable, have been agreed to by the agency 
        and the parent, the extent of progress that has been made 
        toward meeting the service needs of the child and the family, 
        and the continuing necessity for and appropriateness of the 
        services being provided with respect to--
                    ``(I) each child, parent, or caregiver who comes to 
                the attention of the State agency and whose case is 
                referred for assessment or investigation because of a 
                concern about the risk of abuse or neglect, and who 
                receives preventive, protective, crisis, permanency, 
                independent living, or post-permanency services under 
                this part; and
                    ``(II) each child, parent, or caregiver who 
                receives post-permanency services under this part when 
                a child is returned to the birth family, placed in an 
                adoptive family, or placed permanently with a legal 
                guardian or a fit and willing relative.''
    (b) Effective Date.--The amendments made by this section take 
effect on October 1, 2003.

SEC. 8003. KINSHIP GUARDIANSHIP ASSISTANCE PAYMENTS FOR CHILDREN.

    (a) In General.--Part E of title IV of the Social Security Act (42 
U.S.C. 670 et seq.) is amended by inserting after section 472 the 
following:

``SEC. 472A. KINSHIP GUARDIANSHIP ASSISTANCE PAYMENTS FOR CHILDREN.

    ``(a) In General.--Each State with a plan approved under this part 
may, at State option, enter into kinship guardianship assistance 
agreements to provide kinship guardianship assistance payments on 
behalf of children to grandparents and other relatives who have assumed 
legal guardianship (as defined in section 475(7)) of the children for 
whom they have cared as foster parents and for whom they have committed 
to care for on a permanent basis.
    ``(b) Kinship Guardianship Assistance Agreement.--
            ``(1) In general.--In order to receive payments under this 
        section, a State shall--
                    ``(A) negotiate and enter into a written, binding, 
                kinship guardianship assistance agreement with the 
                prospective relative guardian of a child that meets the 
                requirements of this subsection; and
                    ``(B) provide the prospective relative guardian 
                with a copy of the agreement.
            ``(2) Minimum requirements.--The agreement shall specify, 
        at a minimum--
                    ``(A) the amount of, and manner in which, each 
                kinship guardianship assistance payment will be 
                provided under the agreement;
                    ``(B) the additional services and assistance that 
                the child and relative guardian will be eligible for 
                under the agreement;
                    ``(C) the procedure by which the relative guardian 
                may apply for additional services as needed, provided 
                the agency and relative guardian agree on the 
                additional services as specified in the case plan; and
                    ``(D) subject to paragraph (4), that the State will 
                pay the total cost of nonrecurring expenses associated 
                with obtaining legal guardianship of the child.
            ``(3) Interstate application.--The agreement shall 
        provide--
                    ``(A) that the agreement shall remain in effect 
                without regard to the State residency of the kinship 
                guardian; and
                    ``(B) for the protection of the interests of the 
                child in any case where the kinship guardian and the 
                child move to another State while the agreement is in 
                effect.
            ``(4) No affect on federal reimbursement.--Nothing in 
        paragraph (1)(D) shall be construed as affecting the ability of 
        the State to obtain reimbursement from the Federal Government 
        for costs described in that paragraph.
    ``(c) Kinship Guardianship Assistance Payment.--
            ``(1) In general.--The kinship guardianship assistance 
        payment shall be based on consideration of the needs of the 
        relative guardian and of the child and shall be at least equal 
        to the amount of the foster care maintenance payment for which 
        the child would have been eligible if the child remained in 
        foster care. The payment may be readjusted periodically based 
        on relevant changes in such needs.
            ``(2) Limitation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no kinship guardianship assistance 
                payment may be made to a relative guardian for any 
                child who has attained age 18.
                    ``(B) Exceptions.--A kinship guardianship 
                assistance payment may be made to a relative guardian 
                with respect to a child who--
                            ``(i) is a full-time student in a secondary 
                        school or in the equivalent level of a 
                        vocational or technical training program and 
                        has not attained age 19; or
                            ``(ii) with respect to a child who the 
                        State determines has a mental or physical 
                        disability that warrants the continuation of 
                        assistance to age 21.
    ``(d) Child's Eligibility for a Kinship Guardianship Assistance 
Payment.--
            ``(1) In general.--A child is eligible for a kinship 
        guardianship assistance payment under this section if the State 
        agency determines the following:
                    ``(A) The child has been--
                            ``(i) removed from his or her home pursuant 
                        to a voluntary placement agreement or as a 
                        result of a judicial determination to the 
                        effect that continuation in the home would be 
                        contrary to the welfare of the child; and
                            ``(ii) under the care of the State agency 
                        for the 12-month period ending on the date of 
                        such agency determination.
                    ``(B) Being returned home or adopted are not 
                appropriate permanency options for the child.
                    ``(C) The child demonstrates a strong attachment to 
                the prospective relative guardian and the relative 
                guardian has a strong commitment to caring permanently 
                for the child.
                    ``(D) With respect to a child who has attained age 
                14, the child has been consulted regarding the kinship 
                guardianship arrangement.
            ``(2) Treatment of siblings.--With respect to a child who 
        is described in paragraph (1) whose sibling or siblings are not 
        so described--
                    ``(A) the child and any sibling of the child may be 
                placed in the same kinship guardianship arrangement if 
                the State agency and the relative agree on the 
                appropriateness of the arrangement for the siblings; 
                and
                    ``(B) kinship guardianship assistance payments may 
                be paid for the child and each sibling so placed.''.
    (b) Conforming Amendments.--
            (1) State plan requirement.--Section 471(a)(20) of such Act 
        (42 U.S.C. 671(a)(20) is amended by striking ``before the 
        foster or adoptive parent may be finally approved for placement 
        of a child on whose behalf foster care maintenance payments or 
        adoption assistance payments'' and inserting ``or relative 
        guardian before the foster or adoptive parent or relative 
        guardian may be finally approved for placement of a child on 
        whose behalf foster care maintenance payments, adoption 
        assistance payments, or kinship guardianship assistance 
        payments''.
            (2) Definitions.--Section 475(1) of such Act (42 U.S.C. 
        675(1)) is amended by adding at the end the following:
                    ``(F) In the case of a child with respect to whom 
                the permanency plan is placement with a relative and 
                receipt of kinship guardianship assistance payments 
                under section 472A, a description of--
                            ``(i) the steps that the agency has taken 
                        to determine that it is not appropriate for the 
                        child to be returned home or adopted;
                            ``(ii) the reasons why a permanent 
                        placement with a fit and willing relative 
                        through a kinship guardianship assistance 
                        arrangement is in the child's best interests;
                            ``(iii) the ways in which the child meets 
                        the eligibility requirements for a kinship 
                        guardianship assistance payment;
                            ``(iv) the efforts the agency has made to 
                        discuss adoption by the child's relative foster 
                        parent as a more permanent alternative to legal 
                        guardianship and, in the case of a relative 
                        foster parent who has chosen not to pursue 
                        adoption, documentation of the reasons why; and
                            ``(v) the efforts made by the State agency 
                        to secure the consent of the child's parent or 
                        parents to the kinship guardianship assistance 
                        arrangement, or the reasons why such efforts 
                        were not made.''.

SEC. 8004. ELIMINATION OF FINANCIAL ELIGIBILITY REQUIREMENT FOR FOSTER 
              CARE MAINTENANCE AND ADOPTION ASSISTANCE PAYMENTS.

    (a) Foster Care Maintenance Payments.--Section 472(a) of the Social 
Security Act (42 U.S.C. 672(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``would have met the requirements of section 406(a) (as so in 
        effect) or of section 407 (as such sections were in effect on 
        July 16, 1996) but for his removal from the home of a relative 
        (specified in section 406(a)),'' and inserting ``has been 
        removed from his or her home'';
            (2) in paragraph (2), by adding ``and'' at the end;
            (3) in paragraph (3), by striking ``; and'' and inserting a 
        period;
            (4) by striking paragraph (4); and
            (5) by striking the last 2 sentences of that section.
    (b) Adoption Assistance Payments.--Section 473(a)(2) of the Social 
Security Act (42 U.S.C. 673(a)(2)) is amended--
            (1) in subparagraph (A)(i)--
                    (A) by striking ``met the requirements of section 
                406(a) or section 407 (as such sections were in effect 
                on July 16, 1996) or would have met such requirements 
                except for his removal from the home of a relative 
                (specified in section 406(a) (as so in effect))'' and 
                inserting ``has been removed from his or her home''; 
                and
                    (B) by striking ``(or 403 (as such section was in 
                effect on July 16, 1996))'';
            (2) in subparagraph (A)(iii), by adding ``and'' at the end;
            (3) by striking subparagraph (B);
            (4) by redesignating subparagraph (C) as subparagraph (B); 
        and
            (5) by striking ``The last sentence of section 472(a)'' and 
        all that follows and inserting ``Any child who meets the 
        requirements of subparagraph (B), who was determined eligible 
        for adoption assistance payments under this part with respect 
        to a prior adoption, who is available for adoption because the 
        prior adoption has been dissolved and the parental rights of 
        the adoptive parents have been terminated or because the 
        child's adoptive parents have died, and who fails to meet the 
        requirements of subparagraph (A) but would meet such 
        requirements if the child were treated as if the child were in 
        the same circumstances the child was in the last time the child 
        was determined eligible for adoption assistance payments under 
        this part and the prior adoption were treated as never having 
        occurred, shall be treated as meeting the requirements of this 
        paragraph for purposes of paragraph (1)(B)(ii).''.

SEC. 8005. ESTABLISHMENT OF UNIFORM FEDERAL MATCHING RATE.

    (a) In General.--Section 474(a) of the Social Security Act (42 
U.S.C. 674(a)) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``of--'' and inserting ``of the 
                following:'';
                    (B) by striking ``(1) an amount'' and all that 
                follows through the end of paragraph (3) and inserting 
                the following:
            ``(1) The Federal medical assistance percentage (as defined 
        in section 1905(b)) of each of the following:
                    ``(A) The total amount expended during such quarter 
                as foster care maintenance payments under section 472 
                for children in foster family homes or child-care 
                institutions.
                    ``(B) The total amount expended during such quarter 
                as kinship guardianship assistance payments under 
                section 472A for children with a kinship guardianship 
                assistance agreement.
                    ``(C) The total amount expended during such quarter 
                as adoption assistance payments under section 473 
                pursuant to adoption assistance agreements.
                    ``(D) Subject to paragraph (3), the total amount 
                expended during such quarter for preventive, 
                protective, crisis, permanency, independent living, and 
                post-permanency services and activities under section 
                474A.
                    ``(E) The total amounts expended during such 
                quarter as found necessary by the Secretary for the 
                provision of child placement services and for the 
                proper and efficient administration of the State plan.
                    ``(F) The total amounts expended during such 
                quarter as found necessary by the Secretary for the 
                training of--
                            ``(i) personnel employed or preparing for 
                        employment by the State agency or by the local 
                        agency administering the plan in the political 
                        subdivision (including short- and long-term 
                        training at educational institutions through 
                        grants to such institutions or by direct 
                        financial assistance to students enrolled in 
                        such institutions);
                            ``(ii) current or prospective foster or 
                        adoptive parents and the members of the staff 
                        of State-licensed or State-approved child care 
                        institutions providing care to foster and 
                        adopted children receiving assistance under 
                        this part, in ways that increase the ability of 
                        such current or prospective parents, staff 
                        members, and institutions to provide support 
                        and assistance to foster and adopted children, 
                        whether incurred directly by the State or by 
                        contract but only for such expenditures 
                        (including travel and per diem expenses) that 
                        are incurred for short-term training;
                            ``(iii) the staff of private State licensed 
                        or State approved child welfare agencies that 
                        provide preventive, crisis, protective 
                        permanency, post-permanency, and independent 
                        living services or care to foster and adopted 
                        children and children with relative guardians 
                        who are eligible for assistance under this part 
                        (including joint training and cross training of 
                        such staff);
                            ``(iv) court staff, including judges, 
                        judicial personnel, law enforcement personnel, 
                        agency attorneys, attorneys representing 
                        parents in proceedings conducted by or under 
                        the supervision of an abuse or neglect court, 
                        attorneys representing children in such 
                        proceedings, guardian ad litems, volunteers who 
                        participate in court-appointed special advocate 
                        (CASA) programs, and citizen review board 
                        members when under court auspices to keep 
                        children safe and provide permanent families 
                        for children, but only to the extent that any 
                        training offered to judges or any judicial 
                        personnel is offered by, or under contract 
                        with, the State or local agency in 
                        collaboration with the judicial conference or 
                        other appropriate judicial governing body 
                        operating in the State; and
                            ``(v) staff employed by State, local, or 
                        private nonprofit substance abuse prevention 
                        and treatment agencies, mental health 
                        providers, domestic violence prevention and 
                        treatment providers, health agencies, child 
                        care agencies, schools, and community service 
                        agencies that are collaborating with the State 
                        or local agency administering the State plan 
                        under this part to keep children safe and 
                        provide permanent families for children, 
                        including adoptive families.
                    ``(G) The total amounts expended during such 
                quarter as found necessary by the Secretary for the 
                planning, design, development, installation, or 
                operation of statewide mechanized data collection and 
                information retrieval systems (including expenditures 
                for hardware components for such systems) but only to 
                the extent that such systems--
                            ``(i) meet the requirements imposed by 
                        regulations promulgated pursuant to section 
                        479(b)(2);
                            ``(ii) to the extent practicable, are 
                        capable of interfacing with the State data 
                        collection system that collects information 
                        relating to child abuse and neglect; and
                            ``(iii) are determined by the Secretary to 
                        be likely to provide more efficient, 
                        economical, and effective administration of the 
                        programs carried out under a State plan 
                        approved under part B or this part.'';
            (2) in paragraph (4)--
                    (A) by striking ``the lesser'' and inserting ``The 
                lesser''; and
                    (B) by redesignating such paragraph as paragraph 
                (2); and
            (3) by adding at the end the following new paragraph:
            ``(3) With respect to a State that elects to provide 
        preventive, protective, crisis, permanency, independent living, 
        and post-permanency services and activities under section 474A, 
        that begins the process for accreditation of the State agency 
        administering the program under this part within 3 years after 
        the date of enactment of the Leave No Child Behind Act of 2003, 
        and that has such State agency accredited by a nationally 
        recognized accrediting agency approved by the Secretary to 
        provide such accreditation, the Federal medical assistance 
        percentage for the State shall be increased by 1 percentage 
        point a year for each of the 4 consecutive years in which the 
        agency is so accredited for purposes of making the payments 
        described in paragraph (1)(D), beginning with the first fiscal 
        year quarter that begins after the State submits to the 
        Secretary evidence of such accreditation.''.
    (b) Conforming Amendments.--
            (1) Section 473(a)(6)(B) of such Act (42 U.S.C. 
        673(a)(6)(B)) is amended by striking ``474(a)(3)(E)'' and 
        inserting ``474(a)(1)(E)''.
            (2) Section 477(h) of such Act (42 U.S.C. 677(h)) is 
        amended by striking ``474(a)(4)'' and inserting ``474(a)(2)''.

SEC. 8006. ELIMINATION OF DISINCENTIVE FOR FOSTER PARENTS TO ADOPT 
              CHILDREN WITH SPECIAL NEEDS WHO HAVE BEEN IN THEIR FOSTER 
              CARE.

    The last sentence of section 473(a)(3) of the Social Security Act 
(42 U.S.C 673(a)(3)) is amended to read as follows: ``However, an 
adoptive parent shall be eligible to receive an adoption assistance 
payment under clause (ii) of paragraph (1)(B) that is at least equal to 
the foster care maintenance payment which would have been paid during 
the period if the child with respect to whom the adoption assistance 
payment is made had been in a foster family home.''.

SEC. 8007. EXTENSION OF ADOPTION ASSISTANCE PAYMENTS.

    Section 473(a)(4) of the Social Security Act (42 U.S.C. 673(a)(4)) 
is amended by striking ``(or,'' and inserting ``(or, in the case of a 
child who is a full-time student in a secondary school or in the 
equivalent educational level of a vocational or technical training 
program, the age of nineteen, or''.

SEC. 8008. REIMBURSEMENT FOR ROOM AND BOARD IN FOSTER FAMILY HOMES, 
              CHILD CARE INSTITUTIONS, OR SUPERVISED LIVING 
              ARRANGEMENTS FOR YOUNG PEOPLE AGING OUT OF FOSTER CARE.

    Section 472 of the Social Security Act (42 U.S.C. 672) is amended 
by adding at the end the following:
    ``(i)(1) Notwithstanding any other provision of this part, a State 
may make foster care maintenance payments (as defined in section 
475(4)) under this section on behalf of eligible individuals described 
in paragraph (2) for reimbursement of room and board expenses incurred 
for such individuals in a foster family home, child care institution, 
or other supervised living arrangement as approved by the State agency, 
in order to assist such individuals to leave foster care and transition 
to self-sufficiency.
    ``(2) An eligible individual described in this paragraph is an 
individual who--
            ``(A) was in foster care on the date that the individual 
        attained age 17 and had been in foster care for at least 1 year 
        prior to that date;
            ``(B) has not attained age 22;
            ``(C) is in the process of completing secondary education, 
        enrolled in an institution that provides postsecondary 
        education or vocational training, or is employed for at least 
        80 hours per month;
            ``(D) is participating in independent living activities of 
        the type that may be supported under the John H. Chafee Foster 
        Care Independence Program under section 477; and
            ``(E) has a case plan that includes a specific plan for how 
        the individual will achieve independent living and that 
        provides for the individual to reside in a setting that 
        promotes personal responsibility and encourages self-
        sufficiency.
    ``(3)(A) A State may not receive payments under section 
474(a)(1)(A) for expenditures under this subsection unless with respect 
to fiscal year 2004 and each fiscal year thereafter, the total Federal, 
State, and local expenditures for reimbursements described in paragraph 
(1) in the State (or for related independent living services) equals or 
exceeds the total of such expenditures for fiscal year 2003.
    ``(B) The amount of total Federal, State, and local expenditures 
required under subparagraph (A) to be maintained for a fiscal year may 
be reduced appropriately if the total Federal expenditures for that 
fiscal year are less than such the amount of such expenditures for 
fiscal year 2003.
    ``(4) With respect to a fiscal year, a State that makes foster care 
maintenance payments under this subsection shall submit to the 
Secretary an annual report that includes the following:
            ``(A) The number of eligible individuals described in 
        paragraph (2) who received foster care maintenance payments 
        under this subsection and the nature of the settings in which 
        such individuals were housed.
            ``(B) A description of the steps being undertaken in the 
        State to promote housing opportunities for individuals 
        transitioning from foster care after attaining age 18 and for 
        individuals that have already transitioned out of foster care 
        as a result of age.
            ``(C) Recommendations regarding the types of Federal 
        assistance that would assist the State to better meet the 
        housing need of the individuals described in subparagraph 
        (B).''.

SEC. 8009. ADDITIONAL ACCOUNTABILITY.

    Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as 
amended by section 8001(b), is amended--
            (1) in paragraph (24), by striking ``and'' at the end;
            (2) in paragraph (25)(E), by striking the period and 
        inserting a semicolon;
            (3) by adding at the end the following:
            ``(26) provides that, beginning with January 1, 2006, and 
        each January 1 thereafter, the State agency shall prepare and 
        submit to the Secretary, and make available to the public, 
        including through posting on the State agency's Internet 
        website, a report that, with respect to the 2 preceding fiscal 
        years that are the subject of the report, describes--
                    ``(A) how the funding made available under section 
                474A has been used;
                    ``(B) the impact that the services and activities 
                undertaken with such funding has had on--
                            ``(i) preventing the abuse and neglect and 
                        repeat abuse and neglect of children;
                            ``(ii) preventing the entry and re-entry of 
                        children into foster care;
                            ``(iii) decreasing the length of stay of 
                        children in foster care in the State; and
                            ``(iv) promoting permanent placements for 
                        children;
                    ``(C) efforts by the State agency to improve the 
                quality and retention of supervisors and staff who are 
                delivering services under the State plan approved under 
                this part, directly or under contract, and to improve 
                the workloads of staff;
                    ``(D) efforts by the State agency or local agencies 
                to use community partners to promote safety and 
                permanence for children, including a description of--
                            ``(i) collaborative work with substance 
                        abuse, mental health, health, or domestic 
                        violence agencies or providers to address the 
                        needs of the families assisted under this part;
                            ``(ii) the involvement of community-based 
                        organizations with the State agency;
                            ``(iii) how parents are engaged in the 
                        delivery of services; and
                            ``(iv) efforts to utilize family team 
                        meeting, family group decisionmaking, or other 
                        activities that build on family strengths and 
                        address what families need;
                    ``(E) the procedures that are in place to ensure 
                that children who are returned home or placed in other 
                permanent settings receive the support they need to 
                remain home or in such a setting; and
                    ``(F) the status of the State's most recent child 
                and family services review and its program improvement 
                plan activities, if applicable; and
            ``(27) provides that, beginning on January 1, 2006, the 
        independent body charged with reviewing cases of children (such 
        as a court, citizen review board, or independent administrative 
        review body) biannually shall submit a report to the Secretary, 
        in such form and manner as the Secretary shall require, that 
        describes--
                    ``(A) the status of children in the State, as 
                reflected in the reviews conducted by such body;
                    ``(B) the barriers to moving children in the State 
                in accordance with the permanency plans for such 
                children; and
                    ``(C) recommendations for the amount of resources, 
                fiscal and otherwise, that are needed to better meet 
                the goals of safety and permanence for children 
                established in the Adoption and Safe Families Act of 
                1997.''.

SEC. 8010. AUTHORITY OF INDIAN TRIBES TO RECEIVE FEDERAL FUNDS FOR 
              FOSTER CARE AND ADOPTION ASSISTANCE.

    (a) Children Placed in Tribal Custody Eligible for Foster Care 
Funding.--Section 472(a)(2) of the Social Security Act (42 U.S.C. 
672(a)(2)) is amended--
            (1) by striking ``or (B)'' and inserting ``(B)''; and
            (2) by inserting before the semicolon the following: ``, or 
        (C) an Indian tribe (as defined in section 479B(e)) or an 
        intertribal consortium if the Indian tribe or consortium is not 
        operating a program pursuant to section 479B and (i) has a 
        cooperative agreement with a State pursuant to section 479B(c) 
        or (ii) submits to the Secretary a description of the 
        arrangements (jointly developed or developed in consultation 
        with the State) made by the Indian tribe or consortium for the 
        payment of funds and the provision of the child welfare 
        services and protections required by this title''.
    (b) Programs Operated by Indian Tribal Organizations.--Part E of 
title IV of the Social Security Act (42 U.S.C. 670 et seq.) is amended 
by adding at the end the following:

``SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL ORGANIZATIONS.

    ``(a) Application.--Except as provided in subsection (b), this part 
shall apply to an Indian tribe that elects to operate a program under 
this part in the same manner as this part applies to a State.
    ``(b) Modification of Plan Requirements.--
            ``(1) In general.--In the case of an Indian tribe 
        submitting a plan for approval under section 471, the plan 
        shall--
                    ``(A) in lieu of the requirement of section 
                471(a)(3), identify the service area or areas and 
                population to be served by the Indian tribe; and
                    ``(B) in lieu of the requirement of section 
                471(a)(10), provide for the approval of foster homes 
                pursuant to tribal standards and in a manner that 
                ensures the safety of, and accountability for, children 
                placed in foster care.
            ``(2) Determination of federal share.--
                    ``(A) Per capita income.--
                            ``(i) In general.--For purposes of 
                        determining the Federal medical assistance 
                        percentage applicable to an Indian tribe 
                        eligible for payments under section 474(a), the 
                        calculation of an Indian tribe's per capita 
                        income shall be based upon the service 
                        population of the Indian tribe as defined in 
                        its plan in accordance with paragraph (1)(A).
                            ``(ii) Consideration of other 
                        information.--An Indian tribe may submit to the 
                        Secretary such information as the Indian tribe 
                        considers relevant to the calculation of the 
                        per capita income of the Indian tribe, and the 
                        Secretary shall consider such information 
                        before making the calculation.
                    ``(B) Sources of non-federal share.--An Indian 
                tribe may use Federal or State funds to match payments 
                for which the Indian tribe is eligible under section 
                474.
            ``(3) Modification of other requirements.--Upon the request 
        of an Indian tribe or tribes, the Secretary may modify any 
        requirement under this part if, after consulting with the 
        Indian tribe or tribes, the Secretary determines that 
        modification of the requirement would advance the best 
        interests and the safety of children served by the Indian tribe 
        or tribes.
            ``(4) Consortium.--The participating Indian tribes of an 
        intertribal consortium may develop and submit a single plan 
        under section 471 that meets the requirements of this section.
    ``(c) Cooperative Agreements.--An Indian tribe or intertribal 
consortium and a State may enter into a cooperative agreement for the 
administration or payment of funds pursuant to this part. In any case 
where an Indian tribe or intertribal consortium and a State enter into 
a cooperative agreement that incorporates any of the provisions of this 
section, those provisions shall be valid and enforceable. Any such 
cooperative agreement that is in effect as of the date of enactment of 
this section, shall remain in full force and effect subject to the 
right of either party to the agreement to revoke or modify the 
agreement pursuant to the terms of the agreement.
    ``(d) Regulations.--Not later than 1 year after the date of 
enactment of this section, the Secretary shall, in full consultation 
with Indian tribes and tribal organizations, promulgate regulations to 
carry out this section.
    ``(e) Definitions of Indian Tribe; Tribal Organizations.--In this 
section, the terms `Indian tribe' and `tribal organization' have the 
meanings given those terms in subsections (e) and (l) of section 4 of 
the Indian Self-Determination and Education Assistance Act (25 U.S.C. 
450b), respectively.''.
    (c) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act without regard to 
regulations to implement such amendments being promulgated by such 
date.

                Subtitle B--Social Services Block Grant

SEC. 8101. SHORT TITLE.

    This subtitle may be cited as the ``Social Services Block Grant 
Restoration Act''.

SEC. 8102. FINDINGS.

    Congress makes the following findings:
            (1) Since 1975, title XX of the Social Security Act (42 
        U.S.C. 1397 et seq.), commonly referred to as the Social 
        Services Block Grant (in this section referred to as ``SSBG''), 
        has authorized funding for social services to ensure that at-
        risk children and families, the elderly, and physically and 
        mentally disabled individuals remain stable, independent, and 
        economically self sufficient. In 1981, Congress and the Reagan 
        Administration converted SSBG into a block grant designed to 
        give maximum flexibility to States to serve these fundamental 
        purposes.
            (2) Funds provided under the SSBG focus cost-effective 
        support at the community level that prevents the need for 
        inappropriate institutional care which is more costly for 
        Federal and State programs such as the medicaid, medicare, and 
        the social security disability benefits programs.
            (3) The SSBG helps to further the goals set forth in the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996 (Public Law 104-193; 110 Stat. 2105) by supporting the 
        Temporary Assistance to Needy Families program (TANF) and 
        support-related programs such as on-the-job training, child 
        care, transportation, counseling, and other services that 
        facilitate long-term family stability and economic self-
        sufficiency.
            (4) The SSBG provides essential funding to many States for 
        child welfare services that support the goals of the Adoption 
        and Safe Families Act of 1997 (Public Law 105-89; 111 Stat. 
        2115) to promote a safe family environment and encourage 
        adoption to move children into stable and permanent families.
            (5) The SSBG helps promote independent living for 
        vulnerable and low-income elderly individuals by supporting 
        home care services, including home-delivered meals, adult 
        protective services, adult day care, and other essential case 
        management services provided in every State.
            (6) It is reported that 820,000 older Americans are abused 
        and neglected in this country each year. There are additional 
        concerns about the under reporting of elderly abuse and 
        neglect. The SSBG supports adult protective services that 
        prevent widespread abuse and neglect of older Americans and 
        help more than 651,000 elderly individuals in 31 States.
            (7) More than 570,000 disabled individuals receive a range 
        of community-based services and supports nationwide. The SSBG 
        provides significant resources to fill the funding gaps in the 
        developmental disabilities system by supporting such services 
        as early intervention and crisis intervention, adult day care, 
        respite care, transportation, employment training, and 
        independent living services in 38 States.
            (8) The SSBG supports essential mental health and related 
        services to ensure that vulnerable adults and children receive 
        early intervention to prevent more serious and costly mental 
        health crises in the future. Such services include the 
        provision of counseling to almost 400,000 adults and children, 
        case management services for nearly 900,000 families, and the 
        provision of information and referral assistance to more than 
        1,300,000 individuals.
            (9) There are nearly 3,000,000 reports of child abuse and 
        neglect each year. There are currently over 300,000 children in 
        the American foster care system. The SSBG enables the provision 
        of child protective services to 1,300,000 children, adoption 
        services to over 150,000 children and families, and prevention 
        and intervention services to more than 700,000 families.
            (10) The SSBG has been eroded by more than $1,000,000,000 
        over the last 6 years resulting in cuts in services in many 
        States and local communities.
            (11) Temporary Assistance to Needy Families (TANF) block 
        grants cannot be used to make up cuts to the SSBG because a 
        large percentage of SSBG funds are used for the elderly, 
        disabled, and other populations that are ineligible for TANF 
        funds.
            (12) The 104th Congress made a commitment to the SSBG in 
        the Personal Responsibility and Work Opportunity Reconciliation 
        Act of 1996 (Public Law 104-193; 110 Stat. 2105) by authorizing 
        the program at $2,380,000,000 through fiscal year 2002 and 
        returning the authorization for the program to $2,800,000,000 
        in fiscal year 2003 and each succeeding fiscal year.

SEC. 8103. RESTORATION OF AUTHORITY TO TRANSFER UP TO 10 PERCENT OF 
              TANF FUNDS TO THE SOCIAL SERVICES BLOCK GRANT.

    (a) In General.--Section 404(d)(2) of the Social Security Act (42 
U.S.C. 604(d)(2)) is amended to read as follows:
            ``(2) Limitation on amount transferable to title xx 
        programs.--A State may use not more than 10 percent of the 
        amount of any grant made to the State under section 403(a) for 
        a fiscal year to carry out State programs pursuant to title 
        XX.''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
to amounts made available for fiscal year 2004 and each fiscal year 
thereafter.

SEC. 8104. RESTORATION OF FUNDS FOR THE SOCIAL SERVICES BLOCK GRANT.

    Section 2003(c) of the Social Security Act (42 U.S.C. 1397b(c)) is 
amended--
            (1) in paragraph (10), by striking ``and'' at the end; and
            (2) in paragraph (11), by striking `` and each fiscal year 
        thereafter.'' and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(12) $2,380,000,000 for the fiscal year 2004 and each 
        fiscal year thereafter.''.

SEC. 8105. REQUIREMENT TO SUBMIT ANNUAL REPORT ON STATE ACTIVITIES.

    (a) In General.--Section 2006(c) of the Social Security Act (42 
U.S.C. 1397e(c)) is amended by adding at the end the following new 
sentence: ``The Secretary shall compile the information submitted by 
the States and submit that information to Congress on an annual 
basis.''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
to information submitted by States under section 2006 of the Social 
Security Act (42 U.S.C. 1397e) with respect to fiscal year 2003 and 
each fiscal year thereafter.

     Subtitle C--Child Protection and Alcohol and Drug Partnerships

SEC. 8201. SHORT TITLE.

    This subtitle may be cited as the ``Child Protection/Alcohol and 
Drug Partnership Act''.

SEC. 8202. CHILD PROTECTION/ALCOHOL AND DRUG PARTNERSHIPS FOR CHILDREN.

    Part B of title IV of the Social Security Act (42 U.S.C. 620 et 
seq.) is amended by adding at the end the following:

    ``Subpart 3--Child Protection/Alcohol and Drug Partnerships For 
                                Children

``SEC. 440. DEFINITIONS.

    ``In this subpart:
            ``(1) Alaska native organization.--The term `Alaska Native 
        Organization' means any organized group of Alaska Natives 
        eligible to operate a Federal program under the Indian Self-
        Determination Act (25 U.S.C. 450f et seq.) or such group's 
        designee.
            ``(2) Administrative costs.--
                    ``(A) In general.--The term `administrative costs' 
                means the costs for the general administration of 
                administrative activities, including contract costs and 
                all overhead costs.
                    ``(B) Exclusion.--Such term does not include the 
                direct costs of providing services and costs related to 
                case management, training, technical assistance, 
                evaluation, establishment, and operation of information 
                systems, and such other similar costs that are also an 
                integral part of service delivery.
            ``(3) Eligible state.--The term `eligible State' means a 
        State that submits a joint application from the State agencies 
        that--
                    ``(A) includes a plan that meets the requirements 
                of section 442; and
                    ``(B) is approved by the Secretary for a 5-year 
                period after consultation with the Assistant Secretary 
                for the Administration for Children and Families and 
                the Administrator of the Substance Abuse and Mental 
                Health Services Administration.
            ``(4) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, Nation or other organized group or 
        community of Indians, including any Alaska Native Organization, 
        that is recognized as eligible for the special programs and 
        services provided by the United States to Indians because of 
        their status as Indians.
            ``(5) State.--
                    ``(A) In general.--The term `State' means each of 
                the 50 States, the District of Columbia, and the 
                territories described in subparagraph (B).
                    ``(B) Territories.--
                            ``(i) In general.--The territories 
                        described in this subparagraph are Puerto Rico, 
                        Guam, the United States Virgin Islands, 
                        American Samoa, and the Northern Mariana 
                        Islands.
                            ``(ii) Authority to modify requirements.--
                        The Secretary may modify the requirements of 
                        this subpart with respect to a territory 
                        described in clause (i) to the extent necessary 
                        to allow such a territory to conduct activities 
                        through funds provided under a grant made under 
                        this subpart.
            ``(6) State agencies.--The term `State agencies' means the 
        State child welfare agency and the unit of State government 
        responsible for the administration of the substance abuse 
        prevention and treatment block grant provided under subpart II 
        of part B of title XIX of the Public Health Service Act (42 
        U.S.C. 300x-21 et seq.).
            ``(7) Tribal organization.--The term `tribal organization' 
        means the recognized governing body of an Indian tribe.

``SEC. 441. GRANTS TO PROMOTE CHILD PROTECTION/ALCOHOL AND DRUG 
              PARTNERSHIPS FOR CHILDREN.

    ``(a) Authority To Award Grants.--The Secretary may award grants to 
eligible States and directly to Indian tribes in accordance with the 
requirements of this subpart for the purpose of promoting joint 
activities among Federal, State, and local public child welfare and 
alcohol and drug abuse prevention and treatment agencies (and among 
child welfare and alcohol and drug abuse prevention and treatment 
agencies that are providing services to children in Indian tribes) that 
focus on families with alcohol or drug abuse problems who come to the 
attention of the child welfare system and are designed to--
            ``(1) increase the capacity of both the child welfare 
        system and the alcohol and drug abuse prevention and treatment 
        system to address comprehensively and in a timely manner the 
        needs of such families to improve child safety, family 
        stability, and permanence; and
            ``(2) promote recovery from alcohol and drug abuse 
        problems.
    ``(b) Notification.--Not later than 60 days after the date a joint 
application is submitted by the State agencies or an application is 
submitted by an Indian tribe, the Secretary shall notify a State or 
Indian tribe that the application has been approved or disapproved.

``SEC. 442. PLAN REQUIREMENTS.

    ``(a) Contents.--Subject to subsection (c), the plan shall contain 
the following:
            ``(1) A detailed description of how the State agencies will 
        work jointly to implement a range of activities to meet the 
        alcohol and drug abuse prevention and treatment needs of 
        families who come to the attention of the child welfare system 
        and to promote child safety, permanence, and family stability.
            ``(2) An assurance that the heads of the State agencies 
        shall jointly administer the grant program funded under this 
        subpart and a description of how they will do so.
            ``(3) A description of the nature and extent of the problem 
        of alcohol and drug abuse among families who come to the 
        attention of the child welfare system in the State, and of any 
        plans being implemented to further identify and assess the 
        extent of the problem.
            ``(4) A description of any joint activities already being 
        undertaken by the State agencies in the State on behalf of 
        families with alcohol and drug abuse problems who come to the 
        attention of the child welfare system (including any existing 
        data on the impact of such joint activities) such as activities 
        relating to--
                    ``(A) the appropriate screening and assessment of 
                cases;
                    ``(B) consultation on cases involving alcohol and 
                drug abuse;
                    ``(C) arrangements for addressing confidentiality 
                and sharing of information;
                    ``(D) cross training of staff;
                    ``(E) co-location of services;
                    ``(F) support for comprehensive treatment programs 
                for parents and their children; and
                    ``(G) establishing priority of child welfare 
                families for assessment or treatment.
            ``(5)(A) A description of the joint activities to be funded 
        in whole or in part with the funds provided under the grant, 
        including the sequencing of the activities proposed to be 
        conducted under the 5-year funding cycle and the goals to be 
        achieved during such funding cycle. The activities and goals 
        shall be designed to improve the capacity of the State agencies 
        to work jointly to improve child safety, family stability, and 
        permanence for children whose families come to the attention of 
        the child welfare system and to promote their parents' recovery 
        from alcohol and drug abuse.
            ``(B) The description shall include a statement as to why 
        the State agencies chose the specified activities and goals.
            ``(6) A description as to whether and how the joint 
        activities described in paragraph (5), and other related 
        activities funded with Federal funds, will address some or all 
        of the following practices and procedures:
                    ``(A) Practices and procedures designed to 
                appropriately--
                            ``(i) identify alcohol and drug treatment 
                        needs;
                            ``(ii) assess such needs;
                            ``(iii) assess risks to the safety of a 
                        child and the need for permanency with respect 
                        to the placement of a child;
                            ``(iv) enroll families in appropriate 
                        services and treatment in their communities; 
                        and
                            ``(v) regularly assess the progress of 
                        families receiving such treatment.
                    ``(B) Practices and procedures designed to provide 
                comprehensive and timely individualized alcohol and 
                drug abuse prevention and treatment services for 
                families who come to the attention of the child welfare 
                system that include a range of options that are 
                available, accessible, and appropriate, and that may 
                include the following components:
                            ``(i) Preventive and early intervention 
                        services for children of parents with alcohol 
                        and drug abuse problems that integrate alcohol 
                        and drug abuse prevention services with mental 
                        health and domestic violence services, and that 
                        recognize the mental, emotional, and 
                        developmental problems the children may 
                        experience.
                            ``(ii) Prevention and early intervention 
                        services for parents at risk for alcohol and 
                        drug abuse problems.
                            ``(iii) Comprehensive home-based, 
                        outpatient, and residential treatment options.
                            ``(iv) After-care support (both formal and 
                        informal) for families in recovery that 
                        promotes child safety and family stability.
                            ``(v) Services and supports that focus on 
                        parents, parents with their children, parents' 
                        children, other family members, and parent-
                        child interaction.
                    ``(C) Elimination of existing barriers to treatment 
                and to child safety and permanence, such as 
                difficulties in sharing information among agencies and 
                differences between the values and treatment protocols 
                of the different agencies.
                    ``(D) Effective engagement and retention 
                strategies.
                    ``(E) Pre-service and in-service joint training of 
                management and staff of child welfare and alcohol and 
                drug abuse prevention and treatment agencies, and, 
                where appropriate, judges and other court staff, to--
                            ``(i) increase such individuals' awareness 
                        and understanding of alcohol and drug abuse and 
                        related child abuse and neglect;
                            ``(ii) more accurately identify and screen 
                        alcohol and drug abuse and child abuse in 
                        families;
                            ``(iii) improve assessment skills of both 
                        child abuse and alcohol and drug abuse staff, 
                        including skills to assess risk to children's 
                        safety;
                            ``(iv) increase staff knowledge of the 
                        services and resources that are available in 
                        such individuals' communities and appropriate 
                        for such families; and
                            ``(v) increase awareness of the importance 
                        of permanence for children and the timelines 
                        for decisionmaking regarding permanence in the 
                        child welfare system.
                    ``(F) Progress in enhancing the abilities of the 
                State agencies to improve the data systems of such 
                agencies in order to monitor the progress of families, 
                evaluate service and treatment outcomes, and determine 
                which approaches and activities are most effective.
                    ``(G) Evaluation strategies to demonstrate the 
                effectiveness of treatment and identify the aspects of 
                treatment that have the greatest impact on families in 
                different circumstances.
                    ``(H) Training and technical assistance to increase 
                the capacity within the State to carry out 1 or more of 
                the activities described in this paragraph or related 
                activities that are designed to expand prevention and 
                treatment services for, and staff training to assist 
                families with alcohol and drug abuse problems who come 
                to the attention of the child welfare system.
            ``(7) A description of the jurisdictions in the State 
        (including whether such jurisdictions are urban, suburban, or 
        rural) where the joint activities will be provided, and the 
        plans for expanding such activities to other parts of the State 
        during the 5-year funding cycle.
            ``(8) A description of the methods to be used in measuring 
        progress toward the goals identified under paragraph (5), 
        including how the State agencies will jointly measure their 
        performance in accordance with section 445, and how remaining 
        barriers to meeting the needs of families with alcohol or drug 
        abuse problems who come to the attention of the child welfare 
        system will be assessed.
            ``(9) A description of what input was obtained in the 
        development of the plan and the joint application from each of 
        the following groups of individuals, and the manner in which 
        each will continue to be involved in the proposed joint 
        activities:
                    ``(A) Staff who provide alcohol and drug abuse 
                prevention and treatment and related services to 
                families who come to the attention of the child welfare 
                system.
                    ``(B) Advocates for children and parents who come 
                to the attention of the child welfare and alcohol and 
                drug abuse prevention and treatment systems.
                    ``(C) Consumers of both child welfare and alcohol 
                and drug abuse prevention and treatment services.
                    ``(D) Direct service staff and supervisors from 
                public and private child welfare and alcohol and drug 
                abuse prevention and treatment agencies.
                    ``(E) Judges and court staff.
                    ``(F) Representatives of the State agencies and 
                private providers providing health, mental health, 
                domestic violence, housing, education, and employment 
                services.
                    ``(G) A representative of the State agency in 
                charge of administering the temporary assistance to 
                needy families program funded under part A of this 
                title.
            ``(10) An assurance of the coordination, to the extent 
        feasible and appropriate, of the activities funded under a 
        grant made under this subpart with the services or benefits 
        provided under other Federal or federally assisted programs 
        that serve families with alcohol and drug abuse problems who 
        come to the attention of the child welfare system, including 
        health, mental health, domestic violence, housing, and 
        employment programs, the temporary assistance to needy families 
        program funded under part A of this title, other child welfare 
        and alcohol and drug abuse prevention and treatment programs, 
        and the courts.
            ``(11) An assurance that not more than 10 percent of 
        expenditures under the plan for any fiscal year shall be for 
        administrative costs.
            ``(12) An assurance that alcohol and drug treatment 
        services provided at least in part with funds provided under a 
        grant made under this subpart shall be licensed, certified, or 
        otherwise approved by the appropriate State alcohol and drug 
        abuse agencies, or in the case of an Indian tribe, by a State 
        alcohol and drug abuse agency, the Indian Health Service, or 
        other designated licensing agency.
            ``(13) An assurance that Federal funds provided to the 
        State under a grant made under this subpart will not be used to 
        supplant Federal or non-Federal funds for services and 
        activities provided as of the date of the submission of the 
        plan that assist families with alcohol and drug abuse problems 
        who come to the attention of the child welfare system.
    ``(b) Amendments.--
            ``(1) In general.--An eligible State or Indian tribe may 
        amend, in whole or in part, its plan at any time through 
        transmittal of a plan amendment.
            ``(2) 60-day approval deadline.--A plan amendment is 
        considered approved unless the Secretary notifies an eligible 
        State or Indian tribe in writing, within 60 days after receipt 
        of the amendment, that the amendment is disapproved (and the 
        reasons for disapproval) or that specified additional 
        information is needed.
    ``(c) Requirements for Applications by Indian Tribes.--
            ``(1) In general.--In order to be eligible for a grant made 
        under this subpart, an Indian tribe shall--
                    ``(A) submit a plan to the Secretary that 
                describes--
                            ``(i) the activities the tribe will 
                        undertake with both child welfare and alcohol 
                        and drug agencies that serve the tribe's 
                        children to address the needs of families who 
                        come to the attention of the child welfare 
                        agencies and have alcohol and drug problems; 
                        and
                            ``(ii) whether and how such activities 
                        address any of the practice and policy areas in 
                        subsection (a)(6); and
                    ``(B) subject to paragraph (2), meet the other 
                requirements of subsection (a) unless, with respect to 
                a specific requirement of such subsection, the 
                Secretary determines that it would be inappropriate to 
                apply such requirement to an Indian tribe, taking into 
                account the resources, needs, and other circumstances 
                of the Indian tribe.
            ``(2) Administrative costs; use of federal funds.--
        Paragraphs (11) and (13) of subsection (a) shall not apply to a 
        plan submitted by an Indian tribe. The indirect cost rate 
        agreement in effect for an Indian tribe shall apply with 
        respect to administrative costs under the tribe's plan.
            ``(3) Authority for intertribal consortium.--The 
        participating Indian tribes of an intertribal consortium may 
        develop and submit a single plan that meets the applicable 
        requirements of subsection (a) (as so determined by the 
        Secretary) and paragraph (1) of this subsection.

``SEC. 443. APPROPRIATION OF FUNDS.

    ``(a) Appropriations.--For the purpose of providing allotments to 
eligible States and Indian tribes under this subpart and research and 
training under subsection (b)(3), there is appropriated out of any 
money in the Treasury not otherwise appropriated--
            ``(1) for fiscal year 2004, $200,000,000;
            ``(2) for fiscal year 2005, $275,000,000;
            ``(3) for fiscal year 2006, $375,000,000;
            ``(4) for fiscal year 2007, $475,000,000; and
            ``(5) for fiscal year 2008, $575,000,000.
    ``(b) Reservation of Funds.--With respect to a fiscal year:
            ``(1) Territories.--The Secretary shall reserve 2 percent 
        of the amount appropriated under subsection (a) for such fiscal 
        year for payments to Puerto Rico, Guam, the United States 
        Virgin Islands, American Samoa, and the Northern Mariana 
        Islands.
            ``(2) Indian tribes.--The Secretary shall reserve not less 
        than 3 nor more than 5 percent of the amount appropriated under 
        subsection (a) for such fiscal year for direct payments to 
        Indian tribes and Indian tribal organizations for activities 
        intended to increase the capacity of the Indian tribes and 
        tribal organizations to expand treatment, services, and 
        training to assist families with alcohol and drug abuse 
        problems who come to the attention of the child welfare 
        agencies.
            ``(3) Research and training.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall reserve 1 percent of the amount 
                appropriated under subsection (a) for such fiscal year 
                for practice-based research on the effectiveness of 
                various approaches for the screening, assessment, 
                engagement, treatment, retention, and monitoring of 
                families with alcohol and drug abuse problems who come 
                to the attention of the child welfare system, and for 
                training of staff in such areas and shall ensure that a 
                portion of such amount is used for research on the 
                effectiveness of these approaches for Indian children 
                and for the training of staff serving children from the 
                Indian tribes.
                    ``(B) Determination of use of funds.--Funds 
                reserved under subparagraph (A) may only be used to 
                carry out a research agenda that addresses the areas 
                described in such subparagraph and that is established 
                by the Secretary, together with the Assistant Secretary 
                for the Administration for Children and Families and 
                the Administrator of Substance Abuse and Mental Health 
                Services Administration, with input from public and 
                private nonprofit providers, consumers, representatives 
                of Indian tribes, and advocates, as well as others with 
                expertise in research in such areas.

``SEC. 444. PAYMENTS TO ELIGIBLE STATES AND INDIAN TRIBES.

    ``(a) Amount of Grant.--
            ``(1) Eligible states other than territories.--
                    ``(A) In general.--From the amount appropriated 
                under subsection (a) of section 443 for a fiscal year, 
                after the reservation of funds required under 
                subsection (b) of that section for the fiscal year and 
                subject to subparagraphs (B) and (C), the Secretary 
                shall pay to each eligible State (after the Secretary 
                has determined that the State has satisfied the 
                matching requirement under subsection (b)) an amount 
                that bears the same ratio to such amount for such 
                fiscal year as the number of children under the age of 
                18 that reside in the eligible State bears to the total 
                number of children under the age of 18 who reside in 
                all such eligible States for such fiscal year.
                    ``(B) Minimum allotment.--In no case shall the 
                amount of a payment to an eligible State for a fiscal 
                year be less than an amount equal to 0.5 percent of the 
                amount appropriated under subsection (a) of section 443 
                for the fiscal year, after the reservation of funds 
                required under subsection (b) of that section.
                    ``(C) Pro rata reductions.--The Secretary shall 
                make pro rata reductions in the amounts of the 
                allotments determined under subparagraph (A) for a 
                fiscal year to the extent necessary to comply with 
                subparagraph (B).
            ``(2) Territories.--From the amounts reserved under section 
        443(b)(1) for a fiscal year, the Secretary shall pay to each 
        territory described in section 440(5)(B) with an approved plan 
        that meets the requirements of section 442 (after the Secretary 
        has determined that the territory has satisfied the matching 
        requirement under subsection (b)) an amount that bears the same 
        ratio to such amount for such fiscal year as the number of 
        children under the age of 18 that reside in the territory bears 
        to the total number of children under the age of 18 who reside 
        in all such territories for such fiscal year.
            ``(3) Indian tribes or tribal organizations.--From the 
        amount reserved under section 443(b)(2) for a fiscal year, the 
        Secretary shall pay to each Indian tribe with an approved plan 
        that meets the requirements of section 442(c) (after the 
        Secretary has determined that the Indian tribe has satisfied 
        the matching requirement under subsection (b)) an amount that 
        bears the same ratio to such reserved amount for such fiscal 
        year as the number of children under the age of 18 in the 
        Indian tribe bears to the total number of children under the 
        age of 18 in all Indian tribes with plans so approved for such 
        fiscal year, as determined by the Secretary on the basis of the 
        most current and reliable information available to the 
        Secretary. For purposes of making the allocations required 
        under the preceding sentence, an Indian tribe may submit data 
        and other information that it has on the number of Indian 
        children under the age of 18 for consideration by the 
        Secretary.
    ``(b) Matching Requirement.--
            ``(1) In general.--In order to receive a grant under this 
        subpart for a fiscal year, an eligible State or Indian tribe 
        shall provide through non-Federal contributions the applicable 
        percentage determined under paragraph (2) for such fiscal year 
        of the costs of conducting activities funded in whole or in 
        part with funds provided under the grant. Such contributions 
        shall be paid jointly by the State agencies, in the case of an 
        eligible State, or by an Indian tribe.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage for an eligible State or Indian 
        tribe for a fiscal year is--
                    ``(A) 15 percent, in the case of fiscal years 2004 
                and 2005;
                    ``(B) 20 percent, in the case of fiscal years 2006 
                and 2007; and
                    ``(C) 25 percent, in the case of fiscal year 2008.
            ``(3) Source of match.--
                    ``(A) Eligible states.--The non-Federal 
                contributions required of an eligible State under this 
                subsection may be in cash or in kind, fairly evaluated, 
                including plant, equipment, or services. The 
                contributions may be made 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 whether 
                an eligible State has provided the applicable 
                percentage of such contributions for a fiscal year.
                    ``(B) Indian tribes.--With respect to an Indian 
                tribe, such contributions may be made in cash, through 
                donated funds, through non-public third party in kind 
                contributions, or from Federal funds received under any 
                of the following provisions of law:
                            ``(i) The Indian Child Welfare Act of 1978 
                        (25 U.S.C. 1901 et seq.).
                            ``(ii) The Indian Self-Determination and 
                        Education Assistance Act (25 U.S.C. 450b et 
                        seq.).
                            ``(iii) Title I of the Housing and 
                        Community Development Act of 1974 (42 U.S.C. 
                        5301 et seq.).
            ``(4) Waiver.--
                    ``(A) Eligible states.--In the case of an eligible 
                State, the Secretary, after consultation with the 
                Assistant Secretary for the Administration for Children 
                and Families and the Administrator of the Substance 
                Abuse and Mental Health Services Administration, may 
                modify the applicable percentage determined under 
                paragraph (2) for matching funds if the Secretary 
                determines that economic conditions in the eligible 
                State justify making such modification.
                    ``(B) Indian tribes.--In the case of an Indian 
                tribe, the Secretary may modify the applicable 
                percentage determined under such paragraph if the 
                Secretary determines that it would be inappropriate to 
                apply to the Indian tribe, taking into the resources 
                and needs of the tribe and the amount of funds the 
                tribe would receive under a grant made under this 
                section.
    ``(c) Use of Funds.--Funds provided under a grant made under this 
subpart may only be used to carry out activities specified in the plan, 
as approved by the Secretary.
    ``(d) Deadline for Request for Payment.--An eligible State or 
Indian tribe shall apply to be paid funds under a grant made under this 
subpart not later than the beginning of the fourth quarter of a fiscal 
year or such funds shall be reallotted under subsection (f).
    ``(e) Carryover of Funds.--Funds paid to an eligible State or 
Indian tribe under a grant made under this subpart for a fiscal year 
may be expended in that fiscal year or the succeeding fiscal year.
    ``(f) Reallotment of Funds.--
            ``(1) Eligible states.--In the case of an eligible State 
        that does not apply for funds allotted to the eligible State 
        under a grant made under this subpart for a fiscal year within 
        the time provided under subsection (d), or that does not expend 
        such funds during the time provided under subsection (e), the 
        funds which the eligible State would have been entitled to for 
        such fiscal year shall be reallotted to 1 or more other 
        eligible States on the basis of each such State's relative need 
        for additional payments, as determined by the Secretary, after 
        consultation with the Assistant Secretary for the 
        Administration for Children and Families and the Administrator 
        of the Substance Abuse and Mental Health Services 
        Administration.
            ``(2) Indian tribes.--In the case of an Indian tribe that 
        does not expend funds allotted to the tribe during the time 
        provided under subsection (e), the funds to which the Indian 
        tribe would have been entitled to for such fiscal year shall be 
        reallotted to the remaining Indian tribes that are implementing 
        approved plans in amounts that are proportional to the 
        percentage of Indian children under the age of 18 in each such 
        tribe.

``SEC. 445. PERFORMANCE ACCOUNTABILITY; REPORTS AND EVALUATIONS.

    ``(a) Performance Measurement.--
            ``(1) Establishment of indicators.--The Secretary, in 
        consultation with the Assistant Secretary for the 
        Administration for Children and Families, the Administrator of 
        the Substance Abuse and Mental Health Services Administration, 
        Chief Executive Officers of a State or Territory, State 
        legislators, State and local public officials responsible for 
        administering child welfare and alcohol and drug abuse 
        prevention and treatment programs, court staff, consumers of 
        the services, and advocates for children and parents who come 
        to the attention of the child welfare system, shall, within 12 
        months of the date of enactment of the Child Protection/Alcohol 
        and Drug Partnership Act, establish indicators that will be 
        used to assess periodically the performance of eligible States 
        and Indian tribes in using grant funds provided under this 
        subpart to promote child safety, permanence, and well-being and 
        recovery in families who come to the attention of the child 
        welfare system.
            ``(2) Coordination.--The indicators established under 
        paragraph (1) shall be based on and coordinated with the 
        performance outcomes established for the child welfare system 
        pursuant to section 203(b) of the Adoption and Safe Families 
        Act of 1997 and the performance measures developed under 
        subpart II of part B of title XIX of the Public Health Service 
        Act (relating to the substance abuse prevention and treatment 
        block grant).
            ``(3) Purpose.--The indicators will be used to measure 
        periodically the progress made by the State agencies and by 
        child welfare and alcohol and drug abuse prevention and 
        treatment agencies serving children in Indian tribes in the 
        activities that such agencies jointly engage in with such grant 
        funds. An eligible State or Indian tribe will be measured 
        against itself, assessing progress over time against a baseline 
        established at the time the grant activities were undertaken.
            ``(4) Illustrative examples.--The indicators developed 
        should address the range of activities that eligible States and 
        Indian tribes have the option of engaging in with such grant 
        funds. Examples of the types of progress to be measured in the 
        different areas of activity include the following:
                    ``(A) Improving the screening and assessment of 
                families who come to the attention of the child welfare 
                system with alcohol and drug problems, so such families 
                can be promptly referred for appropriate treatment when 
                necessary.
                    ``(B) Increasing the availability of comprehensive 
                and timely individualized treatment for families with 
                alcohol and drug problems who come to the attention of 
                the child welfare system.
                    ``(C) Increasing the number or proportion of 
                families who, when they come to the attention of the 
                child welfare system with alcohol and drug problems, 
                promptly enter appropriate treatment.
                    ``(D) Increasing the engagement and retention in 
                treatment of families with alcohol and drug problems 
                who come to the attention of the child welfare system.
                    ``(E) Decreasing the number of children who re-
                enter foster care after being returned to families who 
                had alcohol or drug problems when the children entered 
                foster care.
                    ``(F) Increasing the number or proportion of staff 
                in both the public child welfare and alcohol and drug 
                abuse prevention and treatment agencies who have 
                received training on the needs of families that come to 
                the attention of the child welfare and alcohol and drug 
                abuse prevention and treatment systems for help, and 
                the help that can be provided to such families.
                    ``(G) Increasing the proportion of parents who 
                complete treatment for alcohol or drug abuse and show 
                improvement in their pre-employment or employment 
                status.
            ``(5) Determination of progress.--
                    ``(A) Initial report.--Not later than the end of 
                the first fiscal year in which funds are received under 
                a grant made under this subpart, the State agencies in 
                each eligible State that receives such funds, and the 
                Indian tribes that receive such funds, shall submit to 
                the Secretary a report on the activities carried out 
                during the fiscal year with such funds. The report 
                shall contain such information as the Secretary 
                determines is necessary to provide an accurate 
                description of the activities conducted with such funds 
                and of any changes in the use of such funds that are 
                planned for the succeeding fiscal year.
                    ``(B) Use of indicators.--As soon as possible after 
                the establishment of indicators under paragraph (1), 
                the State agencies and Indian tribes shall conduct 
                evaluations, directly or under contract, of their 
                progress with respect to such indicators that are 
                directly related to activities the eligible State or 
                Indian tribe is engaging in with such grant funds and 
                include information on the evaluation in the reports to 
                the Secretary required under subparagraphs (C) and (D). 
                After the third year in which such activities are 
                conducted, an eligible State or Indian tribe shall 
                include in the evaluation at least some indicators that 
                address improvements in treatment for families with 
                alcohol and drug problems who come to the attention of 
                the child welfare system.
                    ``(C) Subsequent reports.--After the initial report 
                is submitted under subparagraph (A), an eligible State 
                or Indian tribe shall submit to the Secretary, not 
                later than June 30 of each fiscal year thereafter in 
                which the State or tribe carries out activities with 
                grant funds provided under this subpart, a report on 
                the application of the indicators established under 
                paragraph (1) to such activities. The reports shall 
                include an explanation regarding why the specific 
                indicators used were chosen, how such indicators are 
                expected to impact a child's safety, permanence, well-
                being, and parental recovery, and the results (as of 
                the date of submission of the report) of the evaluation 
                conducted under subparagraph (B).
                    ``(D) Final report.--Not later than September 30, 
                2008, each eligible State and Indian tribe with an 
                approved plan under this part shall submit a final 
                report on the evaluations conducted under subparagraph 
                (B) and the progress made in achieving the goals 
                specified in the plan of the State or Indian tribe.
                    ``(E) Failure to report.--
                            ``(i) In general.--Subject to clause (ii), 
                        an eligible State or Indian tribe that fails to 
                        submit the reports required under this 
                        paragraph or to conduct the evaluation required 
                        under subparagraph (B) shall not be eligible to 
                        receive grant funds provided under this subpart 
                        for the fiscal year following the fiscal year 
                        in which such State or Indian tribe failed to 
                        submit such report or conduct such evaluation.
                            ``(ii) Corrective action.--An eligible 
                        State or Indian tribe to which clause (i) 
                        applies may, notwithstanding such clause, 
                        receive grant funds under this subpart for a 
                        succeeding fiscal year if prior to September 30 
                        of the fiscal year in which such failure 
                        occurred, the State agencies of the eligible 
                        State, or the Indian tribe, submit to the 
                        Secretary a plan to monitor and evaluate in a 
                        timely manner the activities conducted with 
                        such funds, and such plan is approved in a 
                        timely manner by the Secretary, after 
                        consultation with the Administration for 
                        Children and Families and the Substance Abuse 
                        and Mental Health Services Administration.
    ``(b) Secretarial Reports and Evaluations.--
            ``(1) Annual reports.--On the basis of reports submitted 
        under subsection (a), the Secretary, in consultation with the 
        Assistant Secretary for the Administration for Children and 
        Families and the Administrator of the Substance Abuse and 
        Mental Health Services Administration, shall report annually, 
        beginning on October 1, 2005, to the Committee on Ways and 
        Means of the House of Representatives and the Committee on 
        Finance of the Senate on the joint activities conducted with 
        funds provided under grants made under this subpart, the 
        indicators that have been established, and the progress that 
        has been made in addressing the needs of families with alcohol 
        and drug abuse problems who come to the attention of the child 
        welfare system and in achieving the goals of child safety, 
        permanence, and family stability.
            ``(2) Evaluations.--Not later than 6 months after the end 
        of each 5-year funding cycle under this subpart, the Secretary 
        shall submit a report to the committees described in paragraph 
        (1) that summarizes the results of the evaluations conducted by 
        eligible States and Indian tribes under subsection (a)(5)(B), 
        as reported by such States and Indian tribes in accordance with 
        subparagraphs (C) and (D) of subsection (a)(5). The Secretary 
        shall include in the report required under this paragraph 
        recommendations for further legislative or administrative 
        actions that are designed to assist children and families with 
        alcohol and drug abuse problems who come to the attention of 
        the child welfare system.''.

                     Subtitle D--Permanency Grants

SEC. 8301. ESTABLISHMENT OF PERMANENCY GRANTS PROGRAM.

    Part E of title IV of the Social Security Act (42 U.S.C. 670 et 
seq.), as amended by section 8011(b), is amended by adding at the end 
the following:

``SEC. 479C. PERMANENCY GRANTS.

    ``(a) Definitions.--In this section:
            ``(1) Qualified state agency.--The term `qualified State 
        agency' means, with respect to a State, the State agency--
                    ``(A) with responsibility for administering the 
                program authorized by subpart 1 of part B and the 
                program authorized under this part; and
                    ``(B) that submits an application in accordance 
                with the requirements of subsection (c).
            ``(2) Waiting children.--The term `waiting children' means 
        the children described in subsection (b)(2).
    ``(b) Authority To Award Grants.--The Secretary shall award a one-
time grant to each qualified State agency for the purposes of--
            ``(1) promoting the permanency goals of the Adoption and 
        Safe Families Act of 1997; and
            ``(2) enabling the agency to reduce existing backlogs of 
        children with permanent placement plans pursuant to that Act 
        who, as of the date of enactment of that Act, were waiting to 
        be placed in permanent homes, through return to their families, 
        placement in adoptive homes, or placement with a legal guardian 
        or a fit or willing relative.
    ``(c) Application.--A State agency desiring a grant under this 
section shall submit an application for a grant, in such form and 
manner as the Secretary shall require, that contains a description of 
the following:
            ``(1) The barriers to achieving the permanency goals 
        established in the Adoption and Safe Families Act of 1997.
            ``(2) The results of the review of the permanency plans for 
        children in foster care on November 19, 1997 (the date of 
        enactment of that Act), including--
                    ``(A) the number of children who have permanency 
                plans;
                    ``(B) a description of the permanency goals for 
                such children;
                    ``(C) the age of such children;
                    ``(D) the current placements and special needs of 
                such children; and
                    ``(E) the number of such children who have and the 
                number of such children who have not yet been placed in 
                accordance with those plans.
            ``(3) The activities the agency proposes, including a 
        specific plan and timetable, to--
                    ``(A) move the waiting children to permanent homes; 
                and
                    ``(B) reduce the backlog of waiting children.
                            ``(4) How the grant funds will be used to 
                        help secure permanent homes for waiting 
                        children.
                            ``(5) Subject to subsection (e), the 
                        information described in that subsection.
    ``(c) Use of Funds.--Funds provided under a grant made under this 
section may be used for any purpose that the Secretary determines will 
assist the State agency to secure permanent homes for waiting children.
    ``(d) Availability of Funds.--Funds awarded under a grant made 
under this section shall remain available for expenditure by a 
qualified State agency through the end of the second succeeding fiscal 
year.
    ``(e) Coordination With Grants to Courts To Reduce Backlogs.--If a 
qualified State agency receiving a grant under this section is in a 
State where the State or local courts are recipients of grants pursuant 
to the Strengthening Abuse and Neglect Courts Act of 2000 to reduce 
pending backlogs of abuse and neglect cases and promote permanency, the 
application submitted under subsection (b) shall include a description 
of how the proposed backlog reduction activities undertaken with funds 
provided under a grant under this section will be coordinated with the 
activities undertaken by the State or local courts with funds provided 
under that Act.
    ``(f) Priority of Awards.--In awarding grants under this section, 
the Secretary shall give priority to qualified State agencies that can 
demonstrate that they already have taken steps to move waiting children 
to permanent homes.
    ``(g) Report.--Not later than 60 days after the end of each fiscal 
year for which a qualified State agency expends funds under a grant 
made under this section, and 90 days after the date of the final 
expenditure of such funds, the agency shall submit a report to the 
Secretary that includes any information that the Secretary determines 
would assist other jurisdictions in achieving the permanency goals of 
the Adoption and Safe Families Act of 1997, including the following:
            ``(1) The barriers to permanence that are being or were 
        addressed with grant funds.
            ``(2) The most effective strategies used to reduce the 
        backlog of waiting children.
            ``(3) The activities funded under the grant that helped to 
        reduce such backlog.
            ``(4) The numbers of waiting children who were moved to 
        permanent homes, including the ages of such children, any 
        special needs of such children, and a description of the 
        children's placements.
            ``(5) The efforts being made to ensure that the placements 
        continue to be permanent.
            ``(6) The number of waiting children who remain in care 
        without permanent families.
    ``(h) Funding.--There is appropriated, out of any money in the 
Treasury not otherwise appropriated, $200,000,000 for each of fiscal 
years 2004 and 2005 for the purpose of making grants under this 
section.''.

   Subtitle E--Addressing the Needs of Children Exposed to Domestic 
                                Violence

SEC. 8401. FINDINGS.

    Congress makes the following findings:
            (1) Domestic violence and sexual assault occur frequently 
        in the United States. 1,500,000 women are raped or physically 
        assaulted by an intimate partner annually in the United States, 
        and 1 in 4 women in the United States will experience domestic 
        violence or sexual assault in her lifetime.
            (2) At least 3,300,000 children in the United States are 
        exposed to parental violence every year.
            (3) Child abuse and domestic violence often occur within 
        the same families. Because of this overlap, cross-training for 
        child welfare workers, courts, law enforcement, prosecutors, 
        and domestic violence and sexual assault victim service 
        providers is essential.
            (4) Forty to 60 percent of men who abuse women also abuse 
        children.
            (5) In 43 percent of households where intimate violence 
        occurs, at least 1 child under the age of 12 lives in the home. 
        Domestic violence has been shown to occur disproportionately in 
        homes with children under age 5.
            (6) In most States, more than 50 percent of the residents 
        in battered women's shelters are children.
            (7) As many as 500,000 children may be encountered by 
        police during domestic violence arrests each year.
            (8) Children who live in homes where domestic violence 
        occurs are at a higher risk of anxiety and depression, and 
        exhibit more aggressive, antisocial, inhibited, and fearful 
        behaviors than other children.
            (9) Children's experiences vary widely as the result of 
        their exposure to domestic violence depending on their family 
        situations, community environment, and the child's own 
        personality. Children need comprehensive services that serve 
        the continuum of their individual needs.
            (10) Adolescents who have grown up in violent homes are at 
        risk for recreating the abusive relationships they have 
        observed. Forty percent of violent juvenile offenders come from 
        homes where there is domestic violence, and 50 percent of 
        children who come before delinquency court have been exposed to 
        violence in the home.
            (11) Men who as children witnessed their parent's domestic 
        violence are twice as likely to abuse their own wives as are 
        sons of nonviolent parents. One-third of women who are 
        physically abused by a husband or boyfriend grew up in a 
        household where their mother was also abused.
            (12) The most successful strategies for dealing with the 
        overlap between domestic violence and child abuse are those 
        that provide for the safety of both the children and the 
        nonabusing parent.
            (13) Recent studies show that battered women parent 
        effectively and attend to their children's needs.
            (14) In a major metropolitan area, 80 percent of surveyed 
        battered women with children reported that they and their 
        children were safe and together as a family after receiving 
        domestic violence advocacy services. In contrast, the rate of 
        substantiated cases of sexual abuse in foster care is more than 
        4 times higher than the rate in the general population.

SEC. 8402. PURPOSE.

    The purpose of this subtitle is to--
            (1) reduce the impact of domestic violence, sexual assault, 
        and stalking in the lives of youth and children;
            (2) provide appropriate services for children and youth 
        experiencing or exposed to domestic violence, sexual assault, 
        and stalking;
            (3) develop and implement education programs to prevent 
        children and youth from becoming victims or perpetrators of 
        domestic violence, sexual assault, or stalking;
            (4) encourage cross training and collaboration among child 
        welfare agencies, domestic violence and sexual assault service 
        providers, courts, law enforcement entities, health care 
        professionals, crisis nurseries, and other social services to 
        recognize and responsibly address domestic violence and sexual 
        assault and the effects of domestic violence on children and 
        youth;
            (5) promote the safety of children and youth by increasing 
        the safety, autonomy, capacity, and financial security of the 
        nonabusing parents who are also victims of domestic violence 
        and sexual assault so that they may remain safely together, 
        thereby preventing the unnecessary and harmful removal of the 
        child or youth from the nonabusing parent; and
            (6) ensure the effective handling of cases where domestic 
        violence or sexual assault and child abuse and neglect 
        intersect in such a way that--
                    (A) holds the adult perpetrator of violence 
                accountable;
                    (B) assures the safety and well-being of both the 
                child and the child's nonabusing parent; and
                    (C) prevents the unnecessary and harmful removal of 
                the child from the nonabusing parent thereby increasing 
                the child's chance to heal.

SEC. 8403. AMENDMENTS TO ACTS ADDRESSING THE NEEDS OF CHILDREN EXPOSED 
              TO DOMESTIC VIOLENCE.

    (a) Definitions.--Section 309 of the Family Violence Prevention and 
Services Act (42 U.S.C. 10408) is amended by adding at the end the 
following:
            ``(7) The term `dating violence' means violence committed 
        by a person--
                    ``(A) who is or has been in a social relationship 
                of a romantic or intimate nature with the victim; and
                    ``(B) where the existence of such a relationship 
                shall be determined based on a consideration of--
                            ``(i) the length of the relationship;
                            ``(ii) the type of relationship; and
                            ``(iii) the frequency of interaction 
                        between the persons involved in the 
                        relationship.
            ``(8) The term `domestic violence' includes acts or threats 
        of violence, not including acts of self-defense, committed by a 
        current or former spouse of the victim, by a person with whom 
        the victim shares a child in common, by a person who is 
        cohabiting with or has cohabited with the victim, by a person 
        who is or has been in a continuing social relationship of a 
        romantic or intimate nature with the victim, by a person 
        similarly situated to a spouse of the victim under the domestic 
        or family violence laws of the jurisdiction, or by any other 
        person against a victim who is protected from that person's 
        acts under the domestic or family violence laws of the 
        jurisdiction.
            ``(9) The term `sexual assault' means any conduct 
        proscribed by chapter 109A of title 18, United States Code, 
        whether or not the conduct occurs in the special maritime and 
        territorial jurisdiction of the United States or in a Federal 
        prison and includes both assaults committed by offenders who 
        are strangers to the victim and assaults committed by offenders 
        who are known to the victim or related by blood or marriage to 
        the victim.
            ``(10) The term `stalking' means engaging in a course of 
        conduct directed at a specific person that would cause a 
        reasonable person to fear death, sexual assault, or bodily 
        injury to such person or a member of such person's immediate 
        family, when the person engaging in such conduct has knowledge 
        or should have knowledge that the specific person will be 
        placed in reasonable fear of death, sexual assault, or bodily 
        injury to such person or a member of such person's immediate 
        family and when the conduct induces fear in the specific person 
        of death, sexual assault, or bodily injury to such person or a 
        member of such person's immediate family.''.
    (b) Services for Children Exposed to Domestic Violence.--The Family 
Violence Prevention and Services Act (42 U.S.C. 10401 et seq.) is 
amended by adding at the end the following:

``SEC. 320. SERVICES FOR CHILDREN EXPOSED TO DOMESTIC VIOLENCE.

    ``(a) Grants Authorized.--The Secretary, acting through the 
Director of Community Services of the Administration for Children and 
Families, may award competitive grants to eligible entities to enable 
such entities to conduct programs to serve children who have been 
exposed to domestic violence.
    ``(b) Eligible Grantees.--To be eligible to receive a grant under 
this section, an entity shall--
            ``(1) meet the requirements of section 303(a)(2)(A) or 
        section 303(b)(1); and
            ``(2) have in place, and describe in its application, 
        policies and procedures that--
                    ``(A) enhance or ensure the safety and security of 
                a battered parent or caregiver, and as a result, the 
                child of the parent; and
                    ``(B) ensure that all services are provided in a 
                developmentally appropriate and culturally competent 
                manner.
    ``(c) Use of Funds.--
            ``(1) In general.--An entity that receives a grant under 
        this section shall use amounts provided under the grant to 
        design or replicate, and implement, programs and services using 
        domestic violence intervention models to respond to the needs 
        of children who are exposed to domestic violence and whose 
        parent or caregiver is a victim of domestic violence and who is 
        receiving services from such entity. Such a program--
                    ``(A) shall be a new program or service, or new 
                component of an existing program or service not 
                currently offered by the entity;
                    ``(B) shall provide direct counseling and advocacy 
                for children who have been exposed to domestic 
                violence;
                    ``(C) may include early childhood and mental health 
                services;
                    ``(D) may assist in legal advocacy efforts on 
                behalf of children with respect to issues related 
                directly to services the children are receiving from 
                the program;
                    ``(E) may include respite care, supervised 
                visitation, and specialized services for children; and
                    ``(F) may use not more than 25 percent of the grant 
                funds to contract with others to provide additional 
                services and resources for children including child 
                care, transportation, educational support, respite 
                care, supervised visitation, and access to specialized 
                services for children.
            ``(2) Confidentiality.--Programs developed and implemented 
        under paragraph (1) shall ensure the safety and confidentiality 
        of child and adult victims in a manner that is consistent with 
        applicable Federal and State laws.
    ``(d) Application.--To be eligible to receive a grant under 
subsection (a), an entity shall prepare and submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require.
    ``(e) Term and Amount.--
            ``(1) Term.--The Secretary shall make the grants under this 
        section for a period of not more than 3 fiscal years.
            ``(2) Amount.--Each grant awarded under this section shall 
        be in an amount of not less than $50,000 per year and not more 
        than $300,000 per year.
    ``(f) Evaluation, Monitoring, Administration, and Technical 
Assistance.--Of the amount appropriated under subsection (j) for each 
fiscal year, not more than 4 percent shall be used by the Secretary for 
evaluation, monitoring, administrative, and technical assistance costs 
under this section.
    ``(g) Equitable Distribution.--In awarding grants under subsection 
(a), the Secretary shall ensure an equitable geographic distribution to 
State, local, and tribal programs working in throughout the United 
States in rural, urban, and suburban areas.
    ``(h) Underserved Populations.--In awarding grants under subsection 
(a), the Secretary shall--
            ``(1) consider the needs of underserved populations as 
        defined by section 2007(7) of part T of title I of the Omnibus 
        Crime Control and Safe Streets Act of 1968; and
            ``(2) from the amounts made available under subsection (j), 
        award not less than 10 percent of such amounts for the funding 
        of tribal programs as defined in section 303(b)(1).
    ``(i) Annual Reports.--An entity receiving a grant under this 
section shall annually submit to the Secretary a report that describes, 
at a minimum--
            ``(1) how the funds under the grant were used;
            ``(2) the extent to which underserved populations were 
        reached;
            ``(3) the adequacy of staff training and agency services to 
        ensure that children's needs are addressed properly;
            ``(4) the adequacy of the physical arrangements for meeting 
        children's needs; and
            ``(5) the existence of continuing barriers the entity faces 
        to more fully addressing children's needs.
    ``(j) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section, $15,000,000 for each of fiscal years 
        2004 through 2008.
            ``(2) Availability.--Funds appropriated under paragraph (1) 
        shall remain available until expended.''.
    (c) Grants to Combat the Impact of Experiencing or Witnessing 
Domestic Violence on Elementary and Secondary School Children.--Subpart 
2 of part A of title IV of the Elementary and Secondary Act of 1965 (20 
U.S.C. 7131 et seq.) is amended by adding at the end the following:

``SEC. 4131. GRANTS TO COMBAT THE IMPACT OF EXPERIENCING OR WITNESSING 
              DOMESTIC VIOLENCE ON ELEMENTARY AND SECONDARY SCHOOL 
              CHILDREN.

    ``(a) Grants Authorized.--
            ``(1) Authority.--The Secretary is authorized to award 
        grants and contracts to elementary schools and secondary 
        schools that work with experts to enable the elementary schools 
        and secondary schools--
                    ``(A) to provide training to school administrators, 
                faculty, and staff, with respect to issues concerning 
                children experiencing domestic violence in dating 
                relationships and witnessing domestic violence, and the 
                impact of the violence described in this subparagraph 
                on children;
                    ``(B) to provide educational programming to 
                students regarding domestic violence and the impact of 
                experiencing or witnessing domestic violence on 
                children;
                    ``(C) to provide support services for students and 
                school personnel for the purpose of developing and 
                strengthening effective prevention and intervention 
                strategies with respect to issues concerning children 
                experiencing domestic violence in dating relationships 
                and witnessing domestic violence, and the impact of the 
                violence described in this subparagraph on children; 
                and
                    ``(D) to develop and implement school system 
                policies regarding appropriate, safe responses 
                identification and referral procedures for students who 
                are experiencing or witnessing domestic violence.
            ``(2) Award basis.--The Secretary shall award grants and 
        contracts under this section--
                    ``(A) on a competitive basis; and
                    ``(B) in a manner that ensures that such grants and 
                contracts are equitably distributed throughout a State 
                among elementary schools and secondary schools located 
                in rural, urban, and suburban areas in the State.
            ``(3) Policy dissemination.--The Secretary shall 
        disseminate to elementary schools and secondary schools any 
        Department of Education policy guidance regarding the 
        prevention of domestic violence and the impact of experiencing 
        or witnessing domestic violence on children.
    ``(b) Uses of Funds.--Funds provided under this section may be used 
for the following purposes:
            ``(1) To provide training for elementary school and 
        secondary school administrators, faculty, and staff that 
        addresses issues concerning elementary school and secondary 
        school students who experience domestic violence in dating 
        relationships or witness domestic violence, and the impact of 
        such violence on the students.
            ``(2) To provide education programs for elementary school 
        and secondary school students that are developmentally 
        appropriate for the students' grade levels and are designed to 
        meet any unique cultural and language needs of the particular 
student populations.
            ``(3) To develop and implement elementary school and 
        secondary school system policies regarding appropriate, safe 
        responses identification and referral procedures for students 
        who are experiencing or witnessing domestic violence.
            ``(4) To provide the necessary human resources to respond 
        to the needs of elementary school and secondary school students 
        and personnel who are faced with the issue of domestic 
        violence, such as a resource person who is either on-site or 
        on-call, and who is an expert.
            ``(5) To provide media center materials and educational 
        materials to elementary schools and secondary schools that 
        address issues concerning children who experience domestic 
        violence in dating relationships and witness domestic violence, 
        and the impact of the violence described in this paragraph on 
        the children.
            ``(6) To conduct evaluations to assess the impact of 
        programs and policies assisted under this section in order to 
        enhance the development of the programs.
    ``(c) Confidentiality.--Policies, programs, training materials, and 
evaluations developed and implemented under subsection (b) shall 
address issues of safety and confidentiality for the victim and the 
victim's family in a manner consistent with applicable Federal and 
State laws.
    ``(d) Application.--
            ``(1) In general.--To be eligible to be awarded a grant or 
        contract under this section for any fiscal year, an elementary 
        school or secondary school, in consultation with an expert, 
        shall submit an application to the Secretary at such time and 
        in such manner as the Secretary shall prescribe.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall--
                    ``(A) describe the need for funds provided under 
                the grant or contract and the plan for implementation 
                of any of the activities described in subsection (b);
                    ``(B) describe how the experts shall work in 
                consultation and collaboration with the elementary 
                school or secondary school; and
                    ``(C) provide measurable goals for and expected 
                results from the use of the funds provided under the 
                grant or contract.''.
    (d) Grants for Training and Collaboration Among Child Welfare 
Agencies, Domestic Violence and Sexual Assault Service Providers, the 
Courts, and Law Enforcement Agencies.--The Family Violence Prevention 
and Services Act (42 U.S.C. 10401 et seq.), as amended by subsection 
(b), is further amended by adding at the end the following:

``SEC. 321. GRANTS FOR TRAINING AND COLLABORATION AMONG CHILD WELFARE 
              AGENCIES, DOMESTIC VIOLENCE AND SEXUAL ASSAULT SERVICE 
              PROVIDERS, THE COURTS, AND LAW ENFORCEMENT AGENCIES.

    ``(a) Purpose.--It is the purpose of this section to--
            ``(1) encourage cross training and collaboration between 
        child welfare agencies and domestic violence and sexual assault 
        service providers and, where applicable, the courts and law 
        enforcement agencies to identify, assess, and respond 
        appropriately to domestic violence or sexual assault in homes 
        where children are present and may be exposed to the violence, 
        to domestic violence or sexual assault in child protection 
        cases, and to the needs of both child and adult victims of 
        domestic violence and sexual assault;
            ``(2) establish and implement policies, procedures, and 
        practices in child welfare agencies, domestic violence or 
        sexual assault service programs and, where applicable, 
        juvenile, family or other trial courts with jurisdiction over 
        child maltreatment and domestic violence cases (referred to in 
        this section as the `courts'), and law enforcement agencies 
        that are consistent with the principles of--
                    ``(A) protecting children;
                    ``(B) increasing the safety and well-being of 
                children, by--
                            ``(i) tending to their immediate and longer 
                        term needs for treatment and support;
                            ``(ii) increasing the safety of parents of 
                        children who are not the perpetrators of 
                        domestic violence and sexual assault (referred 
                        to in this section as the `nonabusing parent');
                            ``(iii) supporting the autonomy, capacity, 
                        and financial security of the nonabusing 
                        parents of children who are also the victims of 
                        domestic violence or sexual assault (referred 
                        to in this section as `adult victims');
                            ``(iv) protecting the safety, security and 
                        well being of the child by preventing the 
                        unnecessary removal of the child from the 
                        nonabusing parent; and
                            ``(v) in cases where removal of the child 
                        is necessary to protect the child's safety, 
                        taking the necessary steps to provide 
                        appropriate services to the child and the 
                        nonabusing parent to promote the safe and 
                        appropriately prompt reunification of the child 
                        with the nonabusing parent;
                    ``(C) recognizing--
                            ``(i) the relationship between child abuse 
                        and neglect, including child sexual abuse, and 
                        domestic violence and sexual assault in 
                        families;
                            ``(ii) the impact of the perpetrator's 
                        behavior on child and adult victims of domestic 
                        violence and sexual assault;
                            ``(iii) the dangers posed to both child and 
                        adult victims of domestic violence and sexual 
                        assault;
                            ``(iv) the physical, emotional, and 
                        developmental impact of domestic violence and 
sexual assault on child and adult victims;
                            ``(v) the physical, emotional, and 
                        financial needs of adult victims of domestic 
                        violence and sexual assault; and
                            ``(vi) the need to hold adult perpetrators 
                        of domestic violence and sexual assault 
                        accountable for their abusive behaviors to 
                        provide appropriate services to reduce risks to 
                        child and adult victims of domestic violence or 
                        sexual assault;
                    ``(D) in the case of training for court personnel 
                and law enforcement, holding adult perpetrators of 
                domestic violence, sexual assault, and child abuse and 
                neglect, not the child and adult victims of domestic 
                violence, sexual assault, and child abuse and neglect, 
                accountable for stopping abusive behaviors; and
            ``(3) increase cooperation and enhance linkages between 
        child welfare agencies, domestic violence and sexual assault 
        service providers, juvenile, family or other trial courts with 
        jurisdiction over child maltreatment and domestic violence 
        cases, and law enforcement agencies to protect and more 
        comprehensively and effectively serve both child and adult 
        victims of domestic violence and sexual assault, and to engage 
        where necessary other entities addressing the safety, health, 
        mental health, social service, housing and economic needs of 
        child and adult victims of domestic violence and sexual 
        assault, including community-based supports such as schools, 
        local health centers, community action groups, and neighborhood 
        coalitions.
    ``(b) Grant Authority.--
            ``(1) In general.--The Secretary shall make grants to 
        eligible entities to enable the entities to jointly carry out 
        cross training and other initiatives to promote collaboration 
        that seeks to carry out the purposes of this section.
            ``(2) Grant periods.--Grants shall be awarded under 
        paragraph (1) for a period of 3 years.
            ``(3) Eligible entities.--To be eligible to receive a grant 
        under this section, a grant applicant shall establish a 
        partnership that--
                    ``(A) shall include--
                            ``(i) a State child welfare agency, an 
                        Indian tribal organization that serves as a 
                        child welfare agency, or a local child welfare 
                        agency; and
                            ``(ii) a domestic violence or sexual 
                        assault service provider, such as--
                                    ``(I) a State, local, or tribal 
                                domestic violence or sexual assault 
                                coalition; or
                                    ``(II) another private non-profit 
                                organization such as a community-based 
                                domestic violence or sexual assault 
                                program that is concerned with domestic 
                                violence or sexual assault and has a 
                                documented history of effective work 
                                concerning domestic violence or sexual 
                                assault and the impact domestic 
                                violence or sexual assault has on 
                                children; and
                    ``(B) may include--
                            ``(i) a State or local juvenile, family, or 
                        other trial court with jurisdiction over child 
                        maltreatment and domestic violence cases; or
                            ``(ii) a State or local law enforcement 
                        agency with responsibility for responding to 
                        reports of domestic violence or sexual assault 
                        or child abuse and neglect.
    ``(c) Uses of Funds.--An entity that receives a grant under this 
section shall use the funds made available through the grant for cross-
training and collaborative efforts, consistent with the principles 
described in subsection (a)(2), including--
            ``(1) to educate the staff of child welfare agencies and 
        domestic violence and sexual assault service providers, and, as 
        applicable, the staff of courts and law enforcement agencies to 
        responsibly address domestic violence and sexual assault 
        (recognizing it as a serious problem that threatens both its 
        child and adult victims), and to understand--
                    ``(A) domestic violence and sexual assault and 
                their effects on children and adults;
                    ``(B) child abuse and neglect and its effects on 
                children; and
                    ``(C) child welfare policies that affect child and 
                adult victims of domestic violence and sexual assault;
            ``(2) to ensure the effective handling of cases where 
        domestic violence or sexual assault and child abuse and neglect 
        intersect so as to--
                    ``(A) assure the safety and well-being of both the 
                child and the nonabusing parent;
                    ``(B) prevent the unnecessary removal of the child 
                from the nonabusing parent, and, when removal is 
                necessary to protect the child's safety;
                    ``(C) promote the delivery of appropriate services 
                to the child and to the nonabusing parent; and
                    ``(D) facilitate the safe and appropriately prompt 
                reunification of the child with the nonabusing parent 
                through the development and implementation of policies, 
                procedures, and programs that are consistent with the 
                purposes of this section;
            ``(3) to identify and assess, and respond appropriately to, 
        domestic violence or sexual assault in child protection cases 
        and the needs of child victims of abuse and neglect in domestic 
        violence or sexual assault cases;
            ``(4) to ensure that child welfare agencies and domestic 
        violence and sexual assault service providers will not be 
        required to share confidential information with one another 
        about families receiving services except as required by law or 
        with the informed, written consent of the adult victim being 
        served;
            ``(5) to provide appropriate resources in child abuse and 
        neglect cases to respond to domestic violence and sexual 
        assault, including developing a service plan and providing 
        other appropriate services and interventions that ensure the 
        safety of both the child and adult victims of the domestic 
        violence and sexual assault;
            ``(6) to establish and enhance linkages and collaboration 
        between child welfare agencies, domestic violence or sexual 
        assault service providers and, where applicable, State or local 
        juvenile, family, or other trial courts with jurisdiction over 
        child maltreatment and domestic violence cases, law enforcement 
        agencies, and other entities addressing the safety, health, 
        mental health, social service, housing, and economic needs of 
        child and adult victims of domestic violence and sexual 
        assault, including community-based supports such as schools, 
        local health centers, community action groups, and neighborhood 
        coalitions to--
                    ``(A) respond effectively and comprehensively to 
                the varying needs of child and adult victims of 
                domestic violence and sexual assault to prevent child 
                and adult victims from having to turn to child welfare 
                agencies for assistance;
                    ``(B) include linguistically and culturally 
                appropriate services and linkages to existing services; 
                and
                    ``(C) include at least the following services where 
                appropriate:
                            ``(i) Appropriate referrals to community-
                        based domestic violence programs and sexual 
                        assault victim service providers with the 
                        capacities to support adult victims of domestic 
                        violence or sexual assault who are parents of 
                        children who have been abused or neglected or 
                        are at risk of being abused or neglected.
                            ``(ii) Emergency shelter and transitional 
                        housing for adult victims of domestic violence 
                        or sexual assault and their children.
                            ``(iii) Legal assistance and advocacy for 
                        victims of domestic violence or sexual assault 
                        including, when appropriate, assistance in 
                        obtaining and entering orders of protection.
                            ``(iv) Support and training to assist 
                        parents to help their children cope with the 
                        impact of domestic violence or sexual assault.
                            ``(v) Programs to help children who have 
                        been exposed to domestic violence or sexual 
                        assault.
                            ``(vi) Intervention and treatment for adult 
                        perpetrators of domestic violence or sexual 
                        assault whose children are the subjects of 
                        child protection cases to promote the safety 
                        and well-being of the children, and appropriate 
                        coordination of such treatment with the 
                        juvenile, family, and criminal courts, and law 
                        enforcement agencies with which the 
                        perpetrators are involved.
                            ``(vii) Health, mental health, and other 
                        necessary supportive services.
                            ``(viii) Assistance to obtain housing and 
                        necessary economic supports.
    ``(d) Application.--To be eligible to receive a grant under this 
section, the entities that are members of the applicant partnership 
described in subsection (b)(3), shall jointly submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require. The application shall--
            ``(1) outline the specific training and other activities 
        that will be undertaken under the grant to promote 
        collaboration;
            ``(2) describe how the training and other activities 
        described in subsection (c) will help achieve the purposes of 
        this section;
            ``(3) identify the agencies and providers that will be 
        responsible for carrying out the initiatives for which the 
        entities seek the grant;
            ``(4) include documentation from child welfare agencies and 
        domestic violence and sexual assault victims service providers, 
        and where applicable, State or local juvenile, family, or other 
        trial courts with jurisdiction over child maltreatment and 
        domestic violence cases, and law enforcement agencies that have 
        been involved in the development of the application;
            ``(5) describe the ongoing involvement of child welfare and 
        domestic violence and sexual assault victims service providers 
        (including a description of their roles as subcontractors, and 
        documentation of appropriate compensation, if relevant) and, 
        where applicable, courts and law enforcement agencies, in the 
        development of the training policies, procedures, programs, and 
        practices described in subsection (c)(1); and
            ``(6) provide assurances that activities described in 
        subsection (c) will--
                    ``(A) be provided to child welfare staff, including 
                line staff, supervisors, and administrators, and be 
                provided first to staff responsible for investigation, 
                follow-up, screening, intake, assessment, and provision 
                of services; and
                    ``(B) be conducted jointly with child welfare 
                agency staff, staff from community-based domestic 
                violence programs and sexual assault crisis centers and 
                where applicable, courts and law enforcement agencies;
                    ``(C) comply with the principles described in 
                subsection (a)(2); and
                    ``(D) address--
                            ``(i) the dynamics and lethality of 
                        domestic violence and sexual assault, the 
                        impact of domestic violence and sexual assault 
                        on children exposed to domestic violence and 
                        sexual assault, the impact of domestic violence 
                        and sexual assault on adult victims, and the 
                        relationship of domestic violence and sexual 
                        assault to child abuse and neglect;
                            ``(ii) screening for domestic violence and 
                        sexual assault and assessing danger to the 
                        child and adult victims of domestic violence 
                        and sexual assault;
                            ``(iii) applicable Federal, State, and 
                        local laws pertaining to child abuse and 
                        neglect and domestic violence and sexual 
                        assault;
                            ``(iv) the safety needs of child and adult 
                        victims of child abuse and neglect or domestic 
                        violence, or sexual assault and appropriate 
                        interventions for the child and adult victims 
                        that protect their the safety, including 
                        appropriate services and treatment for children 
                        and the nonabusing parent to prevent the 
                        unnecessary removal of children from the 
                        nonabusing parent, and to promote prompt 
                        reunification if removal becomes necessary of 
                        both types of victims and give appropriate 
                        consideration to preserving the safety of 
                        family members not responsible for the child 
                        abuse or neglect;
                            ``(v) appropriate interventions for adult 
                        perpetrators of domestic violence to reduce the 
                        risk of further violence toward child and adult 
                        victims of domestic violence and sexual assault 
                        which emphasize perpetrator accountability;
                            ``(vi) appropriate supervision of child 
                        welfare staff working with families in which 
                        there has been domestic violence and sexual 
                        assault, including supervision relating to 
                        issues involving the safety of the child and 
                        adult victims and of the staff;
                            ``(vii) the confidentiality needs of the 
                        child and adult victims, consistent with laws 
                        requiring mandatory reporting of child abuse 
                        and neglect; and
                            ``(viii) develop child protection case 
                        plans that recognize the need to protect the 
                        safety of the child and of the adult victim and 
                        to hold adult perpetrators, not victims, 
                        responsible for stopping domestic violence and 
                        sexual assault.
    ``(e) Priority.--In awarding grants under this section, the 
Secretary shall give priority to entities that have submitted 
applications in partnership with State or local juvenile, family, or 
other trial courts with jurisdiction over child maltreatment and 
domestic violence cases, and law enforcement agencies.
    ``(f) Reporting, and Dissemination of Information.--
            ``(1) Reports.--Each of the entities that are members of 
        the applicant partnership described in subsection (b)(3), that 
        receive a grant under this section shall jointly annually 
        prepare and submit to the Secretary a report detailing the 
        activities that the entities have undertaken under the grant 
        and such additional information as the Secretary shall require. 
        At a minimum, such report shall address the nature of the 
        cross-training and other activities to promote collaboration 
        among child welfare agencies, domestic violence or sexual 
        assault service providers, and where applicable, State or local 
        juvenile, family, or other trial courts with jurisdiction over 
        child maltreatment and domestic violence cases and law 
        enforcement agencies that were undertaken with such grants and 
        examples of enhanced collaboration that has occurred to better 
        protect both child and adult victims of child abuse and 
        domestic violence or sexual assault.
            ``(2) Dissemination of information.--Not later then 9 
        months after the end of the grant period under this section, 
        the Secretary shall distribute to all State child welfare 
        agencies, domestic violence or sexual assault victim service 
        providers, and where applicable, State or local juvenile, 
        family, or other trial courts with jurisdiction over child 
        maltreatment and domestic violence cases, law enforcement 
        agencies, and Congress summaries that contain information on--
                    ``(A) the activities implemented by the recipients 
                of the grants; and
                    ``(B) related initiatives undertaken by the 
                Secretary to promote attention by the staff of child 
                welfare agencies, domestic violence or sexual assault 
                service providers and where applicable, courts and law 
                enforcement agencies to domestic violence and sexual 
                assault and their impact on both child and adult 
                victims.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, $15,000,000 in each of fiscal 
years 2004 through 2006, and $25,000,000 in each of fiscal years 2007 
and 2008.''.
    (e) Multisystem Interventions for Children who have been Exposed to 
Domestic Violence.--The Family Violence Prevention and Services Act (42 
U.S.C. 10401 et seq.), as amended by subsection (d), is further amended 
by adding at the end the following:

``SEC. 322. MULTISYSTEM INTERVENTIONS FOR CHILDREN WHO HAVE BEEN 
              EXPOSED TO DOMESTIC VIOLENCE.

    ``(a) Grants Authorized.--The Secretary, acting through the 
Director of Community Services of the Administration for Children and 
Families, may award grants to eligible entities to enable such entities 
to conduct programs to encourage the development and use of multisystem 
intervention models that respond to the needs of children who have been 
exposed to domestic violence.
    ``(b) Eligible Entities.--To be eligible to receive a grant under 
this section, an entity shall--
            ``(1) be a nonprofit private organization;
            ``(2)(A) demonstrate recognized expertise in the area of 
        domestic violence and the impact of domestic violence on 
        children; or
            ``(B) have entered into a memorandum of understanding 
        regarding the intervention program to be established under the 
        grant and the role of the entity in the program with--
                    ``(i) the appropriate State or tribal domestic 
                violence coalition; and
                    ``(ii) entities carrying out domestic violence 
                programs that provide shelter or related assistance in 
                the locality in which the intervention program will be 
                operated and that have an understanding of its effects 
                on children;
            ``(3)(A) demonstrate a recognized expertise in child mental 
        health services; or
            ``(B) have entered into a memorandum of understanding 
        regarding the intervention program to be established under the 
        grant with providers that have expertise in child mental health 
        to ensure that children of all ages have access to appropriate 
        mental health services; and
            ``(4) demonstrate a history of providing advocacy, health 
        care, mental health, or other crisis-related services to 
        children.
    ``(c) Use of Funds.--An entity that receives a grant under this 
section shall use amounts provided under the grant to design or 
replicate, and implement, multisystem intervention models to respond to 
the needs of children exposed to domestic violence. Such activities 
shall--
            ``(1)(A) involve collaborative partnerships with--
                    ``(i) local entities carrying out domestic violence 
                programs that provide shelter or related assistance or 
                have expertise in the field of providing services to 
                victims of domestic violence and an understanding of 
                its effects on children; and
                    ``(ii) other partners including courts, schools, 
                social service providers, health care providers, 
                police, early childhood agencies, entities carrying out 
                Head Start programs under the Head Start Act (42 U.S.C. 
                9831 et seq.), or entities carrying out child 
                protection, welfare, job training, housing, battered 
                women's service, or children's mental health programs; 
                and
            ``(B) be carried out to design and implement protocols and 
        systems to identify, and appropriately respond to the needs of 
        children who have been exposed to domestic violence and who 
        participate in programs administered by the partners;
            ``(2) establish or implement guidelines to evaluate the 
        needs of a child and make appropriate intervention 
        recommendations;
            ``(3) include the development or replication of a mental 
        health treatment model to meet the needs of children for whom 
        such treatment has been identified as appropriate;
            ``(4) establish or implement institutionalized procedures 
        to enhance or ensure the safety and security of a battered 
        parent, and as a result, the child of the parent;
            ``(5) provide direct counseling and advocacy for adult 
        victims of domestic violence and their children who have been 
        exposed to domestic violence;
            ``(6) establish or implement policies and protocols for 
        maintaining the confidentiality of the battered parent and 
        child;
            ``(7) provide community outreach and training to enhance 
        the capacity of professionals who work with children to 
        appropriately identify and respond to the needs of children who 
        have been exposed to domestic violence;
            ``(8) establish procedures for documenting interventions 
        used for each child and family;
            ``(9) establish plans to perform a systematic outcome 
        evaluation to evaluate the effectiveness of the interventions;
            ``(10) ensure that all services are provided in a 
        culturally competent manner; and
            ``(11) provide remuneration to local domestic violence 
        services organizations who are asked to join collaborations.
    ``(d) Application.--To be eligible to receive a grant under this 
section, an entity shall prepare and submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require.
    ``(e) Term and Amount.--A grant awarded under this section shall be 
awarded for a term of 3 years and in an amount of not more than 
$500,000 for each such year.
    ``(f) Technical Assistance.--Not later than 90 days after the date 
of enactment of this section, the Secretary shall identify successful 
programs that provide multisystem and mental health interventions to 
address the needs of children who have been exposed to domestic 
violence. Not later than 60 days before the Secretary solicits 
applications for grants under this section, the Secretary shall enter 
into an agreement with 1 or more entities carrying out the identified 
programs to provide technical assistance to applicants and recipients 
of such grants. The Secretary may use not more than 5 percent of the 
amount appropriated for a fiscal year under subsection (g) to provide 
such technical assistance.
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section, $15,000,000 for each of fiscal years 
        2004 through 2008.
            ``(2) Availability.--Amounts appropriated under paragraph 
        (1) shall remain available until expended.''.
    (f) Crisis Nursery Demonstration Grants Program.--The Family 
Violence Prevention and Services Act (42 U.S.C. 10401 et seq.), as 
amended by subsection (e), is further amended by adding at the end the 
following:

``SEC. 323. CRISIS NURSERY DEMONSTRATION GRANT PROGRAMS.

    ``(a) Authority To Establish Demonstration Grant Programs.--The 
Secretary may establish demonstration programs under which grants are 
awarded to States to assist private nonprofit and public agencies and 
organizations in providing crisis nurseries for children who are abused 
and neglected, are at risk of abuse and neglect, are in families 
experiencing domestic violence, or are in families receiving child 
protective services.
    ``(b) Assurances for Training in Domestic Violence.--
            ``(1) In general.--Private nonprofit and public agencies 
        and organizations who receive funds under this section shall 
        provide assurances to the Secretary that personnel working with 
        children and families in crisis nurseries receive or have 
        received training in domestic violence, the impact of domestic 
        violence on children, appropriate procedures for maintaining 
        the safety and security of victims of domestic violence and 
        their children, and appropriate procedures for maintaining the 
        confidentiality of both child and adult victims of domestic 
        violence utilizing the services of crisis nurseries.
            ``(2) Training requirement.--Training required under 
        paragraph (1) shall be conducted in consultation with State, 
        local, or tribal domestic violence coalitions or other private 
        nonprofit organizations such as a community-based domestic 
        violence program that has a documented history of serving both 
        child and adult victims of domestic violence.
    ``(c) Coordination.--An applicant for a grant under this section 
shall demonstrate how activities funded under this section will be 
coordinated with other crisis nursery activities funded under section 
201 of the Child Abuse Prevention and Treatment Act (42 U.S.C. 5116).
    ``(d) Reporting.--A recipient of a grant under this section shall 
annually report on the crisis nursery activities funded under this 
grant. At a minimum, such a report shall describe--
            ``(1) the number of children and families served through 
        crisis nursery activities established under the grant;
            ``(2) the nature and extent of the crisis nursery 
        activities;
            ``(3) the percentage of children served by the crisis 
        nursery activities established under the grant who are from 
        families experiencing domestic violence;
            ``(4) the type of domestic violence training provided to 
        crisis nursery staff and the nature and extent of training 
        coordination with local domestic violence service providers;
            ``(5) the nature and extent of other Federal and State 
        funding sources used to support the services of the crisis 
        nursery;
            ``(6) the gaps between the service needs of the crisis 
        nursery and the current capacity of crisis nurseries to serve 
        children and families; and
            ``(7) outcome evaluation data on the effectiveness of 
        crisis nursery activities, if available.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, $15,000,000 for each of fiscal 
years 2004 through 2008.''.
    (g) Research and Data Collection on the Impact of Domestic Violence 
on Children.--The Family Violence Prevention and Services Act (42 
U.S.C. 10401 et seq.), as amended by subsection (f), is further amended 
by adding at the end the following:

``SEC. 324. RESEARCH AND DATA COLLECTION ON THE IMPACT OF DOMESTIC 
              VIOLENCE ON CHILDREN.

    ``(a) Grants.--The Secretary, acting through the Assistant 
Secretary for Children and Families, may award competitive grants to 
eligible entities to enable such entities to conduct research and data 
collection activities concerning the impact of domestic violence on 
children.
    ``(b) Eligible Entities.--To be eligible to receive a grant under 
this section, an entity shall be an institution of higher education or 
another nonprofit organization (such as a research entity, hospital, or 
mental health institution), with documented experience with research or 
data collection concerning the impact of domestic violence on children.
    ``(c) Use of Funds.--An entity that receives a grant under this 
section shall use amounts provided under the grant to conduct new or 
expand current research or data collection--
            ``(1) on the prevalence of childhood exposure to domestic 
        violence and the effects of the exposure in child and adult 
        victims;
            ``(2) on the co-occurrence of domestic violence, and child 
        abuse or neglect;
            ``(3) on linkages between children's exposure to domestic 
        violence and violent behavior in youth and adults;
            ``(4) that evaluates new or existing treatments aimed at 
        children exposed to domestic violence;
            ``(5) on the prevalence of childhood exposure to domestic 
        violence for Native American children;
            ``(6) on the effects and benefits of keeping children with 
        their nonabusive parent and providing coordinated services to 
        both;
            ``(7) on the role of children's resilience and other 
        factors that help mitigate the effects of exposure to domestic 
        violence; and
            ``(8) on related matters, if the research or data 
        collection directly addresses the impact of domestic violence 
        on children.
    ``(d) Term and Amount.--The Secretary shall award grants under this 
section for terms of 3 years and in amount of not more than $500,000 
for each such year.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, $2,000,000 for each of fiscal 
years 2004 through 2006, and $5,000,000 for each of fiscal years 2007 
and 2008.''.

 Subtitle F--Enhancing Healthy Emotional Development in Young Children

SEC. 8501. ENHANCING HEALTHY EMOTIONAL DEVELOPMENT.

    (a) Findings.--Congress finds the following:
            (1) Researchers have identified external risk factors that, 
        particularly when found in combination, can increase a young 
        child's risk for experiencing problems in social or emotional 
        development, including factors such as exposure to traumatic 
        events, child abuse and neglect, parental mental health 
        disorders, unsatisfactory relationships, and deprivation. 
        Experiences involving these risk factors may occur at home or 
        in the community.
            (2) There is growing evidence that positive adaptation and 
        social and emotional well-being in young children can be 
        enhanced, and that the impact of risk factors for behavioral 
        and emotional disorders can be reduced by intervening early in 
        homes, child care and other early childhood programs, and other 
        settings.
            (3) The Surgeon General's Conference on Children's Mental 
        Health has recommended the creation of tangible tools for early 
        childhood service providers to help the providers assess 
        children's social and emotional needs, discuss issues relating 
        to those needs with families, and make referrals.
            (4) Experience demonstrates that mental health consultants 
        can help staff, as well as children and families, in early 
        childhood programs promote healthy social and emotional 
        development in young children, including those children already 
        exposed to violence and other damaging experiences.
            (5) Success in school is dependent on social and emotional 
        development, as well as the attainment of other competencies 
        and skills, and investing early in the promotion of healthy 
        development in young children will help children enter school 
        ready to learn.
    (b) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services, acting through the Assistant 
        Secretary for Children and Families.
            (2) State agency.--The term ``State agency'' means--
                    (A) the State office that coordinates early 
                childhood services in a State; or
                    (B) if an office described in subparagraph (A) does 
                not exist in a State, the State office that is 
                responsible for early childhood programs in the State.
            (3) Young children.--The term ``young children'' means 
        individuals who are below the age of compulsory school 
        attendance for the State involved.
    (c) Grants to State Agencies.--
            (1) Grants.--The Secretary shall establish a program 
        through which the Secretary may make grants to State agencies, 
        to enable the State agencies to assist eligible entities to 
        serve young children and the families of the children by 
        addressing the mental health and developmental needs of the 
        young children in order to promote the children's resilience, 
        emotional wellness, and healthy emotional development.
            (2) Grant periods.--The Secretary shall make the grants for 
        periods of not more than 3 years.
    (d) State Applications.--To be eligible to receive a grant under 
subsection (c), a State agency 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 include the 
information and assurances described in subsection (g), with respect to 
the State.
    (e) Grants to Eligible Entities.--A State agency that receives a 
grant under subsection (c) shall use the funds made available through 
the grant to make grants to eligible entities to carry out programs to 
serve young children and the families of the children as described in 
subsection (c).
    (f) Eligible Entities.--To be eligible to receive a grant under 
subsection (e), an entity shall--
            (1) be an agency or organization that carries out a home or 
        center-based early childhood program, child welfare program, 
        substance abuse treatment program, or domestic violence service 
        and treatment program, that serves or has regular contact with 
        young children;
            (2) be an established consortium of agencies or 
        organizations described in paragraph (1); or
            (3) be another entity (such as a child care resource and 
        referral agency, an early childhood service coordinating body, 
        or a community mental health center) that works with parents, 
        agencies, or organizations that serve young children in a 
        community in promoting the mental health and healthy emotional 
        development of young children; and
            (4) obtain the approval of the State agency for an 
        application submitted in accordance with subsection (g).
    (g) Local Applications.--
            (1) In general.--To be eligible to receive a grant under 
        this section, an entity shall submit an application to the 
        State agency at such time, in such manner, and containing such 
        information as the State agency may require.
            (2) Contents.--At a minimum, the application shall 
        contain--
                    (A) a description of the young children who are 
                targeted to be served, or are most likely to be served, 
                with the funds made available through the grant, and 
                the problems the children are facing or affected by 
                (such as exposure to parental depression, parental 
                substance abuse, child abuse or neglect, domestic 
                violence, community violence, homelessness, a parental 
                transition to the workforce, or other risk factors);
                    (B) an assurance that the assistance provided with 
                funds made available through the grant will be 
                undertaken in a developmentally appropriate and 
                culturally competent manner, be child-centered, and, as 
                applicable, family-focused, and consistent with the 
                best knowledge available about effective prevention and 
                intervention strategies to promote mental health and 
                healthy emotional development in young children;
                    (C) the name of the entity that would administer 
                the program carried out under the grant;
                    (D) a description of the types of assistance that 
                will be provided with the funds to improve the mental 
                health and healthy emotional development of young 
                children;
                    (E) a description of how the program to be carried 
                out under the grant will complement and be coordinated 
                with the activities of, or carried out by, any early 
                childhood service coordinating offices in the community 
                in which the grant activities will be carried out;
                    (F) an assurance that the applicant will work 
                collaboratively with mental health, early childhood 
                development, early intervention, education, health, and 
                other specialized violence prevention or treatment 
                experts, and other experts in the applicant's community 
                to coordinate services provided under this subtitle 
                with similar services and to better address the needs 
                of the young children the applicant serves;
                    (G) documentation that the applicant has explored 
                the extent to which funding under part C of the 
                Individuals with Disabilities Education Act (20 U.S.C. 
                1431 et seq.) and from other related Federal and State 
                sources is available to address the needs of the young 
                children; and
                    (H) an assurance that the funds made available 
                through the grant will not be used for activities that 
                the State pays for with funds made available under the 
                medicaid program carried out under title XIX of the 
                Social Security Act (42 U.S.C. 1396 et seq.), under the 
                State children's health insurance program carried out 
                under title XXI of the Social Security Act (42 U.S.C. 
                1397aa et seq.), or from State and local funds for 
                mental health programs.
    (h) Use of Funds.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), an entity that receives a grant under this section may use 
        the funds made available through the grant to promote the 
        mental health and healthy emotional development of young 
        children by--
                    (A) providing screening and assessments of the 
                mental health and developmental needs of the young 
                children to be served under the grant and, as 
                appropriate, their families;
                    (B) providing for consultations with staff of 
                programs described in subsection (f)(1) by mental 
                health and other early childhood development experts, 
                such as speech and language therapists and special 
                education consultants, who can provide programmatic and 
                individual child-centered and family-focused assistance 
                to help the staff respond in the manner most conducive 
                to promoting the mental health and healthy emotional 
                development of young children;
                    (C) providing professional development, including 
                specialized training and supervision, for staff of 
                programs described in subsection (f)(1) and other early 
                childhood service providers and, as appropriate, for 
                families of young children, about the mental health and 
                developmental needs of young children, to enable the 
                staff and families to develop the skills and 
                competencies necessary to respond to the needs of, and 
                provide needed assistance to, the young children and 
                their families to promote the children's mental health 
                and healthy emotional development;
                    (D) providing prevention and early intervention 
                services, including home visitation, parenting 
                education, and other activities, parent-child groups, 
                and other individualized supports for families of young 
                children (including parents, grandparents, other 
                relative caregivers, foster parents, and other 
                individuals responsible for raising young children), 
                that are designed to promote mental health and healthy 
                emotional development of young children;
                    (E) providing crisis services;
                    (F) facilitating access to treatment and services 
                to enable staff of programs described in subsection 
                (f)(1) to promote mental health and healthy emotional 
                development by attending appropriately to the emotional 
                and behavioral concerns facing young children and their 
                families;
                    (G) providing increased collaboration between staff 
                of programs providing early childhood, child 
                development, and children's mental health services, 
                and, as appropriate, staff from other service delivery 
                systems such as--
                            (i) the courts; and
                            (ii) service delivery systems for substance 
                        abuse treatment, domestic violence service and 
                        treatment, health, and adult and child mental 
                        health programs; and
                    (H) providing case management services for young 
                children and, as appropriate, their families, to help 
                link the children and families who need more 
                specialized interventions to appropriate services and 
                treatment.
            (2) Planning and collaboration.--
                    (A) In general.--An entity that requests authority 
                to use grant funds made available under this section 
                for planning and collaboration activities, and receives 
                a grant under this section, may use a portion of the 
                grant funds as described in subparagraph (B).
                    (B) Activities.--The entity may use not more than 
                50 percent of the grant funds for a period of not more 
                than 6 months at the beginning of the grant period to 
                carry out planning and collaboration activities that 
                will help ensure that the needs of young children will 
                be addressed appropriately through the activities 
                carried out under the grant. The planning and 
                collaboration activities shall build on the work of 
                and, to the extent possible, be carried out by early 
                childhood service coordinating offices in the community 
                in which the grant activities will be carried out.
            (3) Designated activities.--The Secretary may, during the 
        3-year period beginning on the date of the establishment of the 
        program described in subsection (c), award grants to State 
        agencies under subsection (c), to enable the State agencies to 
        assist eligible entities specifically to promote the training 
        of early childhood mental health specialists, in conjunction 
        with entities such as community colleges, schools of social 
        work, and institutions offering psychology programs, through 
        degree programs or internships or fellowships in early 
        childhood mental health.
    (i) State Collaboration.--The State agency shall review 
applications submitted under subsection (g), make grants under 
subsection (e), and carry out the administration and oversight of the 
programs described in subsection (e) in collaboration with--
            (1) the State mental health agency;
            (2) the State entity designated to receive collaboration 
        grants under section 640(a)(5) of the Head Start Act (42 U.S.C. 
        9835(a)(5)); and
            (3) other State offices responsible for child welfare 
        programs, substance abuse treatment programs, or domestic 
        violence service programs, serving young children within the 
        State.
    (j) Supplement Not Supplant.--Funds appropriated pursuant to the 
authority of this section shall be used to supplement and not supplant 
other public funds expended to promote the mental health and healthy 
emotional development of young children.
    (k) Collaboration.--In carrying out this section, the Secretary 
shall collaborate with the Administrator of the Substance Abuse and 
Mental Health Services Administration, the Administrator of the Health 
Care Financing Administration, and the heads of relevant offices of the 
Department of Education that address the concerns of young children.
    (l) Report.--A State that receives a grant under this section 
shall, not later than 90 days after the end of the grant period, 
prepare and submit to the Secretary a report that includes--
            (1) information on the needs of the young children, and 
        their families, who were assisted with the grant funds;
            (2) information on the strategies for which the grant funds 
        were used, and how the funds were combined with other funds to 
        expand the strategies;
            (3) documentation that the activities provided were 
        developmentally appropriate, child-centered, and, as 
        appropriate, family-focused, and directed toward preventing 
        emotional problems, and involved collaboration with mental 
        health and other developmental experts;
            (4) a discussion of--
                    (A) the extent to which entities in the State 
                increased the number of activities (similar to 
                activities carried out under this section) carried out 
                in the State that were funded from sources other than 
                funds made available under this section during the 
                grant period; and
                    (B) the barriers to increasing the number of those 
                activities that were so funded; and
            (5) a discussion of how the funds made available through 
        the grant helped to improve outcomes for the young children and 
        families served, particularly with regard to the goal of school 
        readiness.
    (m) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $25,000,000 for fiscal year 2004;
            (2) $40,000,000 for fiscal year 2005;
            (3) $55,000,000 for fiscal year 2006;
            (4) $70,000,000 for fiscal year 2007; and
            (5) $85,000,000 for fiscal year 2008.

              TITLE IX--SUCCESSFUL TRANSITION TO ADULTHOOD

                     Subtitle A--Youth Development

              CHAPTER 1--SHORT TITLE; POLICY; DEFINITIONS

SEC. 9001. SHORT TITLE.

    This subtitle may be cited as the ``Younger Americans Act''.

SEC. 9002. A NATIONAL YOUTH POLICY.

    It is the policy of the United States, in keeping with the 
traditional United States concept that youth are the Nation's most 
valuable resource, that youth of the Nation need, and it is the joint 
and several duty and responsibility of governments of the United 
States, of the several States and political subdivisions, and of Indian 
tribes, to ensure that all youth have access to and participate in the 
full array of core resources needed to fully prepare youth to become 
healthy and productive adults and effective citizens, including--
            (1) ongoing relationships with caring adults;
            (2) safe places with structured activities;
            (3) services that promote healthy lifestyles, including 
        services designed to improve physical and mental health;
            (4) opportunities to acquire marketable skills and 
        competencies; and
            (5) opportunities for community service and civic 
        participation.

SEC. 9003. DEFINITIONS.

    In this Subtitle:
            (1) Area plan.--The term ``area plan'' means an area youth 
        development plan described in section 9108.
            (2) Associate commissioner.--The term ``Associate 
        Commissioner'' means the Associate Commissioner of the Family 
        and Youth Services Bureau of the Administration on Children, 
        Youth, and Families of the Administration for Children and 
        Families of the Department of Health and Human Services.
            (3) Community-based.--The term ``community-based'', used 
        with respect to an organization, means an organization that--
                    (A) is representative of a community or significant 
                segment of a community; and
                    (B) is engaged in providing services to the 
                community.
            (4) Consortium.--The term ``consortium'' means a youth 
        development consortium established in accordance with section 
        9107(a).
            (5) Convening community-based agency.--The term ``convening 
        community-based agency'' means an organization that--
                    (A) is directed by a board with wide representation 
                from a community;
                    (B) generates and distributes charitable funds for 
                diverse health and human service programs and 
                coordinates the efforts of multiple agencies as needed 
                or requested;
                    (C) does not itself provide direct services to 
                children, youth, or their families; and
                    (D) operates within the geographic boundaries of 
                the youth development area for which it exercises its 
                convening duty.
            (6) Convening unit of general purpose local government.--
        The term ``convening unit of general purpose local government'' 
        means the unit of general purpose local government with the 
        greatest number of youth residing within the geographic 
        boundaries of the youth development area for which it exercises 
        its convening duty.
            (7) Council.--The term ``Council'' means the Coordinating 
        Council for National Youth Policy.
            (8) Indian.--The term ``Indian'' has the meaning given the 
        term in section 4(d) of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b(d)).
            (9) Library.--The term ``library'' has the meaning given 
        the term in section 213(2) of the Museum and Library Services 
        Act of 1996.
            (10) Native american organization.--The term ``Native 
        American organization'' means--
                    (A) a tribal organization, as defined in section 
                4(l) of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b(l));
                    (B) a Native Hawaiian Organization, as defined in 
                section 4009(4) of the Augustus F. Hawkins-Robert T. 
                Stafford Elementary and Secondary School Improvement 
                Amendments of 1988 (20 U.S.C. 4909(4)) (as in effect on 
                the day before the date of enactment of the Improving 
                America's Schools Act of 1994);
                    (C) an Alaska Native Village Corporation or 
                Regional Corporation as defined in or established 
                pursuant to the Alaskan Native Claims Settlement Act 
                (43 U.S.C. 1601 et seq.); or
                    (D) a private nonprofit organization established 
                for the purpose of serving youth who are Indians or 
                Native Hawaiians.
            (11) Native hawaiian.--The term ``Native Hawaiian'' has the 
        meaning given the term in section 4009(1) of the Augustus F. 
        Hawkins-Robert T. Stafford Elementary and Secondary School 
        Improvement Amendments of 1988 (20 U.S.C. 4909(1)) (as in 
        effect on the day before the date of enactment of the Improving 
        America's Schools Act of 1994).
            (12) Outlying area.--The term ``outlying area'' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            (13) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            (14) State plan.--The term ``State plan'' means a State 
        youth development plan described in section 9105.
            (15) Unit of general purpose local government.--The term 
        ``unit of general purpose local government'' means--
                    (A) a political subdivision of a State whose 
                authority is general and not limited to only 1 function 
                or combination of related functions; or
                    (B) a Native American organization.
            (16) Youth.--The term ``youth'' means an individual who is 
        not younger than age 10 and not older than age 19.
            (17) Youth development area.--The term ``youth development 
        area'' means a geographic area designated by the State youth 
        development agency in accordance with section 9104(a)(1)(E).
            (18) Youth development organization.--The term ``youth 
        development organization'' means a public or private youth-
        serving organization with a major emphasis on providing youth 
        development programs.
            (19) Youth development programs.--The term ``youth 
        development programs'' means programs, services, supports, 
        opportunities, and activities that prepare youth to contribute 
        to their communities and to meet the challenges of adolescence 
        and adulthood through a structured, progressive series of 
        activities and experiences (in contrast to deficit-based 
        approaches that focus solely on youth problems) that--
                    (A) help the youth obtain social, emotional, 
                ethical, physical, and cognitive competencies; and
                    (B) address the broader developmental resources all 
                children and youth need, such as the core resources 
                described in section 9002.
            (20) Youth-serving organization.--The term ``youth-serving 
        organization'' means a public or private organization with a 
        primary focus on providing youth development programs, or 
        health, mental health, fitness, education, workforce 
        preparation, substance abuse prevention, child welfare, 
        evaluation and assessment, parenting, arts and cultural 
        engagement, recreation, teen pregnancy prevention, 
        rehabilitative, or residential services to youth.

           CHAPTER 2--GRANTS FOR STATE AND COMMUNITY PROGRAMS

SEC. 9101. PURPOSE.

    The purpose of this chapter is to encourage and assist States and 
youth development consortia in mobilizing and supporting communities in 
planning, implementing, and being accountable for strategies that link 
community-based organizations, local government, volunteer centers, 
schools, community colleges, colleges, universities, faith-based 
organizations, businesses, parks and recreation agencies, libraries and 
museums, arts and cultural organizations, other youth-serving 
organizations, and other segments of the community to ensure that all 
youth have access to, and participate in, the full array of core 
resources described in section 9002.

SEC. 9102. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this chapter 
$500,000,000 for fiscal year 2004, $750,000,000 for fiscal year 2005, 
$1,000,000,000 for fiscal year 2006, $1,500,000,000 for fiscal year 
2007, and $2,000,000,000 for fiscal year 2008.

SEC. 9103. ALLOTMENTS TO STATES.

    (a) Reservations.--From sums appropriated under section 9102 for 
each fiscal year, the Associate Commissioner shall reserve--
            (1) 94 percent of the sums for allotments to States to 
        enable the States to make allocations to youth development 
        consortia and to perform State activities;
            (2) 1 percent of the sums for grants to Native American 
        organizations to carry out activities consistent with the 
        objectives of this chapter;
            (3) 1 percent of the sums for grants to outlying areas to 
        carry out activities consistent with the objectives of this 
        chapter;
            (4) 3 percent of the sums for Federal competitive grant 
        programs aimed at demonstrating ways to respond, through 
        programs that meet the requirements of subsection (b), to the 
        special developmental needs of youth--
                    (A) in areas with high concentrations of poverty;
                    (B) in rural areas;
                    (C) in situations in which the youth are at higher 
                risk due to abuse, neglect, disconnection from family, 
                disconnection from school, or another community risk 
                factor;
                    (D) in alternative educational settings or who have 
                been expelled or suspended from school;
                    (E) in correctional facilities and other out-of-
                home residential settings;
                    (F) with disabilities; and
                    (G) coming from homes where the primary languages 
                spoken are not English; and
            (5) 1 percent of the sums for the Associate Commissioner to 
        carry out planning, policy development, administration, and 
        accountability duties and activities under this chapter and 
        under chapter 3 of this subtitle.
    (b) Use of Funds.--For each fiscal year for which a State receives 
a State allotment, the State shall ensure that funds made available 
through the allotment, and used by the State or a youth development 
consortium in the State to fund youth development programs, shall be 
used for the purpose of conducting community-based youth development 
programs that--
            (1) recognize the primary role of the family in youth 
        development in order to strengthen families;
            (2) promote the involvement of youth (including program 
        participants), parents, grandparents, and guardians, and other 
        community members in the planning and implementation of the 
        youth development programs;
            (3) coordinate services with other entities providing youth 
        and family services in the community;
            (4) eliminate barriers, such as a lack of transportation, 
        cost, and service delivery location, to the accessibility of 
        youth development services;
            (5) provide, directly or through a written contract, a 
        broad variety of accessible youth development programs for 
        youth that are designed to assist youth in acquiring skills, 
        competencies, and connections that are necessary to make a 
        successful transition from childhood to adulthood;
            (6) incorporate activities that foster relationships 
        between positive adult role models and youth, provide age-
        appropriate activities, and provide activities that engage 
        youth in, and promote youth development, including activities 
        such as--
                    (A) youth clubs, character development activities, 
                mentoring, community service, civic engagement, 
                leadership development, community action, recreation, 
                and literacy and educational tutoring;
                    (B) sports, workforce readiness activities, peer 
                counseling, and fine and performing arts; and
                    (C) camping and environmental or science education, 
                arts and cultural engagement, risk avoidance programs, 
                academic enrichment, and participant-defined special 
                interest group activities, courses, or clubs; and
            (7) employ strong outreach efforts to engage the 
        participation of a wide range of youth, families, and service 
        providers.
    (c) Allotments.--
            (1) In general.--Except as provided in paragraph (2), from 
        sums reserved under subsection (a)(1), the Associate 
        Commissioner shall allot to each State the sum (referred to in 
        this chapter as the ``State allotment'') of--
                    (A) an amount that bears the same ratio to \1/2\ of 
                the reserved sums as the number of individuals who are 
                not younger than age 10 and not older than age 19 in 
                the State bears to the number of such individuals in 
                all the States; and
                    (B) an amount that bears the same ratio to \1/2\ of 
                the reserved sums as the number of youth in poverty as 
                measured by the most recent decennial and annual 
                demographic program data available from the Bureau of 
                the Census in the State bears to the number of such 
                youth in all the States.
            (2) State minimum.--No State shall be allotted less than 
        0.40 percent of the reserved sums for a fiscal year.
            (3) Determinations.--For purposes of this subsection, the 
        number of individuals who are not younger than age 10 and not 
        older than age 19 in any State and in all the States, and the 
        number of youth in poverty in any State and in all the States, 
        shall be determined by the Associate Commissioner on the basis 
        of the most recent decennial and annual demographic program 
        data available from the Bureau of the Census, and other 
        reliable demographic data satisfactory to the Associate 
        Commissioner.
    (d) Withholding.--
            (1) In general.--If the Associate Commissioner finds that 
        any State has failed to meet the State plan requirements of 
        section 9105 or the allocation requirements of section 9106(b), 
        the Associate Commissioner shall withhold the State allotment 
        from such State.
            (2) Disbursal.--The Associate Commissioner shall disburse 
        the funds withheld directly to any entity that is a public or 
        private institution, organization, or agency, or unit of 
        general purpose local government of such State that submits an 
        approved plan described in section 9108, if the plan includes 
        an agreement that the entity will--
                    (A) make available (directly or through donations 
                from public or private entities) non-Federal 
                contributions, in cash or in kind, in an amount equal 
                to a percentage determined for the State of the funds; 
                and
                    (B) comply with the requirements of this subtitle 
                that apply to States receiving State allotments under 
                this section.
    (e) Reallotments.--Whenever the Associate Commissioner determines 
that any amount allotted to a State for a fiscal year under this 
section will not be used by such State for such fiscal year to carry 
out the purpose for which the allotment was made, the Associate 
Commissioner shall make such amount available for carrying out such 
purpose to 1 or more other States to the extent the Associate 
Commissioner determines that such other States will be able to use such 
amount for carrying out such purpose.

SEC. 9104. STATE YOUTH DEVELOPMENT AGENCIES AND YOUTH DEVELOPMENT 
              AREAS.

    (a) State Youth Development Agencies.--In order for a State to be 
eligible to receive a State allotment under this chapter--
            (1) the State shall, in accordance with regulations issued 
        by the Associate Commissioner, designate a State agency as the 
        sole State agency to--
                    (A) be primarily responsible for the planning, 
                policy development, administration, coordination, 
                priority setting, accountability, and evaluation of all 
                State activities related to the objectives of this 
                subtitle;
                    (B) coordinate its activities with other State, 
                local, and private agencies, offices, and programs, 
                including--
                            (i) State Commissions on National and 
                        Community Service established under section 178 
                        of the National and Community Service Act of 
                        1990 (42 U.S.C. 12638);
                            (ii) entities carrying out programs under 
                        the Runaway and Homeless Youth Act (42 U.S.C. 
                        5701 et seq.) and other programs under the 
                        Juvenile Justice and Delinquency Prevention Act 
                        of 1974 (42 U.S.C. 5601 et seq.);
                            (iii) entities carrying out independent 
                        living programs;
                            (iv) entities carrying out child welfare 
                        programs;
                            (v) youth councils established under 
                        section 117(h) of the Workforce Investment Act 
                        of 1998 (29 U.S.C. 2832(h));
                            (vi) entities carrying out related 
                        activities under the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 6301 et seq.); 
                        and
                            (vii) entities carrying out literacy 
                        activities under the Museum and Library 
                        Services Act of 1996 (20 U.S.C. 9101 et seq.);
                    (C) develop a State youth development plan to be 
                submitted to the Associate Commissioner for approval 
                pursuant to section 9105;
                    (D) provide assurances that the State will solicit 
                and take into account, with regard to general policy 
                related to the development and the administration of 
                the State plan for any fiscal year, the views of youth 
                who are the targeted and actual recipients of services 
                provided for in the plan;
                    (E) administer the State plan;
                    (F) develop and disseminate a uniform format for 
                use by youth development consortia in developing area 
                plans;
                    (G) divide the State into distinct youth 
                development areas, after considering the views offered 
                by units of general purpose local government and 
                appropriate public or private agencies and 
                organizations in the State, in accordance with 
                regulations issued by the Associate Commissioner;
                    (H) ensure that each unit of general purpose local 
                government of the State is included in a youth 
                development area;
                    (I) in accordance with guidelines issued by the 
                Associate Commissioner, make allocations to youth 
                development consortia pursuant to section 9106(b);
                    (J) provide assurances that Federal funds made 
                available under this chapter for the State for any 
                period will be used to supplement, and not supplant, 
                the State, local, and other funds that would in the 
                absence of such Federal funds be made available for the 
                youth development programs described in this chapter;
                    (K) compile reports from youth development 
                consortia, including outcome and utilization data 
                developed under section 9301(1) and evaluation 
                information regarding youth development programs funded 
                under this chapter and provide an annual report based 
                on the compilation to the Associate Commissioner;
                    (L) serve as an effective and visible advocate for 
                youth in the State government, by actively reviewing 
                and commenting on all State plans, policies, and 
                programs affecting youth;
                    (M) provide public forums for discussion on issues 
                regarding youth, publicize the core resources youth 
                need, and obtain information relating to ensuring all 
                youth have access to, and participate in, the full 
                array of core resources described in section 9002, by 
                conducting public hearings, and by conducting or 
                sponsoring conferences, workshops, and other similar 
                meetings;
                    (N) develop mechanisms to foster collaboration and 
                resolve administrative and programmatic conflicts 
                between State programs that would be barriers to 
                parents, grandparents, and guardians, community-based, 
                youth-serving, and youth development organizations, 
                local government entities, State government entities, 
                tribes, older adult organizations, faith-based 
                organizations, and organizations supporting youth 
                involved in community service and civic participation, 
                related to the coordination of services and funding for 
                programs promoting access to, and participating in, the 
                full array of core resources described in section 9002; 
                and
                    (O) consult with and assist local governments and 
                community-based organizations with respect to barriers 
                the governments encounter related to the coordination 
                of services and funding for youth development and youth 
                services programs.
    (b) Youth Development Area.--
            (1) Unit of general purpose local government.--
                    (A) Criteria.--In carrying out subsection (a)(1), 
                the State agency may designate as a youth development 
                area any unit of general purpose local government.
                    (B) Hearing.--In any case in which a unit of 
                general purpose local government applies to the State 
                agency to be designated as a youth development area 
                under this paragraph, the State agency shall, upon 
                request, provide an opportunity for a hearing to such 
                unit of general purpose local government.
            (2) Region.--The State agency may designate as a youth 
        development area under subsection (a)(1) any region in the 
        State that includes 1 or more units of general purpose local 
        government if the State agency determines that the designation 
        of such a regional youth development area is necessary for, and 
        will enhance, the effective administration of the youth 
        development programs authorized by this chapter.
            (3) Additional areas.--The State agency may include in any 
        youth development area designated under subsection (a)(1) such 
        additional areas, adjacent to a unit of general purpose local 
        government, as the State agency determines are necessary for, 
        and will enhance, the effective administration of the youth 
        development programs authorized by this chapter.
            (4) Indian reservations.--The State agency, in carrying out 
        subsection (a)(1), shall to the extent practicable include all 
        portions of an Indian reservation in a single youth development 
        area.

SEC. 9105. STATE YOUTH DEVELOPMENT PLANS.

    (a) In General.--To be eligible to receive a State allotment under 
this title, a State shall develop, prepare, and submit to the Associate 
Commissioner a State youth development plan, for a 2- or 3-year period, 
at such time, in such manner, and meeting such criteria as the 
Associate Commissioner may by regulation prescribe, and shall make such 
annual revisions as may be necessary to the plan.
    (b) Contents.--Each such State plan shall contain assurances that 
the plan is based on area youth development plans developed under 
section 9108 by youth development consortia in the State and describes 
the State's intended use of its allotment for State discretionary 
grants authorized in section 9106(a)(1)(C).

SEC. 9106. DISTRIBUTION OF FUNDS FOR STATE ACTIVITIES AND AREA 
              ALLOCATIONS.

    (a) In General.--From a State allotment made under this chapter for 
any fiscal year--
            (1)(A) the State agency may use such amount as the State 
        agency determines to be appropriate, but not more than 7 
        percent, for the purposes of subparagraphs (B) and (C);
            (B) the State agency may use such amount as the State 
        agency determines to be appropriate, but not more than 4 
        percent of the State allotment, for paying the cost of--
                    (i) reviewing area youth development plans and 
                distributing funds to youth development consortia;
                    (ii) assisting youth development consortia in 
                carrying out activities under this chapter; and
                    (iii) monitoring and evaluating activities funded 
                through this subtitle by youth development consortia; 
                and
            (C) the State agency may use such amount as the State 
        agency determines to be appropriate, but not less than 3 
        percent and not more than 7 percent of the State allotment, for 
        making State discretionary grants to respond to the special 
        developmental needs of youth--
                    (i) in areas with high concentrations of poverty;
                    (ii) in rural areas;
                    (iii) in situations in which the youth are at 
                greater risk due to abuse, neglect, disconnection from 
                family, disconnection from school, or another community 
                risk factor;
                    (iv) in alternative educational settings or who 
                have been expelled or suspended from school;
                    (v) in correctional facilities and other out-of-
                home residential settings;
                    (vi) with disabilities; and
                    (vii) coming from homes where the primary languages 
                spoken are not English; and
            (2) the State agency shall use the remainder of such 
        allotment to make allocations under subsection (b) to youth 
        development consortia to pay for the cost of youth development 
        programs under this chapter that are specified in area youth 
        development plans that--
                    (A) are developed through a comprehensive and 
                coordinated system of planning;
                    (B) have been approved by the consortia involved;
                    (C) are submitted by the consortia for their 
                respective youth development areas; and
                    (D) have been approved by the State agency.
    (b) Allocations and Competitive Grants.--
            (1) Allocations.--Except as provided in paragraph (2), from 
        the remainder of the State allotment described in subsection 
        (a)(2), the State agency, using the best available data, shall 
        allocate for each youth development area in the State the sum 
        of--
                    (A) an amount that bears the same ratio to \1/2\ of 
                the remainder as the number of individuals who are not 
                younger than age 10 and not older than age 19 in the 
                youth development area bears to the number of such 
                individuals in the State; and
                    (B) an amount that bears the same ratio to \1/2\ of 
                the remainder as the number of youth in poverty as 
                measured by the most recent decennial and annual 
                demographic program data available from the Bureau of 
                the Census in the youth development area bears to the 
                number of such youth in the State.
            (2) Competitive grants.--
                    (A) In general.--For any fiscal year for which the 
                amount appropriated to carry out this subtitle is less 
                than $150,000,000, the State agency shall use the 
                remainder of the State allotment described in 
                subsection (a)(2) to make competitive grants to 
                consortia.
                    (B) Responsibilities.--A consortium that receives 
                such a grant shall be considered to have received an 
                allocation under this subsection, and shall comply with 
                the requirements of this subtitle relating to funds 
                received through such an allocation. A State that makes 
                such grants shall be considered to have complied with 
                the requirements of this subsection relating to making 
                allocations.
    (c) Non-Federal Share.--A State that uses Federal funds provided 
under this chapter to carry out the activities described in section 
9106(a)(1)(B) shall make available (directly or through donations from 
public or private entities) non-Federal contributions in cash in an 
amount equal to not less than $1 for every $1 of the Federal funds.
    (d) Reallotments.--If the State agency does not receive from a 
youth development consortium a letter of intent declaring the 
consortium's intention to submit an area youth development plan to the 
State agency, within 120 days of the State agency's announcement of the 
availability of allocations under subsection (b) to youth development 
areas to pay for the cost of youth development programs under this 
chapter, the State agency shall determine that any amount allotted to 
the youth development area for a fiscal year under this section will 
not be used by such area for carrying out the purpose for which the 
allotment was made and shall make such amount available for carrying 
out such purpose to 1 or more other youth development areas to the 
extent the State agency determines that such other areas will be able 
to use such amount for carrying out such purpose.

SEC. 9107. YOUTH DEVELOPMENT CONSORTIA.

    (a) Youth Development Consortia.--
            (1) Convened.--
                    (A) Convening units of general purpose local 
                government and convening community-based agencies.--
                Except as otherwise provided in this paragraph, in 
                order to receive funds from a State pursuant to this 
                chapter, a youth development area shall have a youth 
                development consortium convened jointly by the chief 
                executive officer of a convening community-based agency 
                in the area and the chief executive officer of the 
                convening unit of general purpose local government in 
                the area.
                    (B) Private agencies and local governments.--In the 
                event that a convening community-based agency is not 
                represented in the youth development area, or the chief 
                executive officer of a convening community-based agency 
                in the area is unwilling or unable to participate in 
                jointly convening the consortium, the State agency, 
                after consideration of the views offered by units of 
                general purpose local government and by nonprofit 
                agencies and organizations in such area, shall 
                designate a private nonprofit agency or organization in 
                the area to convene the consortium jointly with the 
                chief executive officer of the convening unit of 
                general purpose local government in the area.
                    (C) Local funding and coordinating agencies and 
                public entities.--In the event that a chief executive 
                officer of the convening unit of general purpose local 
                government in the youth development area is unwilling 
                or unable to participate in jointly convening the 
                consortium, the State agency, after consideration of 
                the views offered by units of general purpose local 
                government and by youth-serving agencies and 
                organizations in such area, shall designate an 
                executive official of a public entity in the area to 
                convene the consortium jointly with the chief executive 
                officer of a convening community-based agency and any 
                other chief executive officers of units of general 
                purpose local government in the area.
                    (D) Existing entity.--An existing entity in the 
                youth development area may serve as the consortium if--
                            (i) such entity's membership meets the 
                        requirements for a consortium or is adapted to 
                        meet such requirements; and
                            (ii) such entity is approved by the State 
                        agency.
                    (E) Public notice.--A consortium may not be 
                convened under this paragraph before the expiration of 
                the 30-day period beginning on the date the particular 
                convening authorities described in this paragraph 
                provide such reasonable public notice of the date and 
                time of the first convening of the consortium as is 
                sufficient to inform all units of local general purpose 
                government, and nonprofit youth-serving and youth 
                development agencies, of such first convening.
            (2) Chairpersons.--The consortium shall elect 2 
        chairpersons from among its membership. One chairperson shall 
        be an officer or official of a general unit of local purpose 
        government and 1 chairperson shall be an officer or official 
        from a nonprofit youth-serving and youth development agency.
            (3) Composition.--A consortium shall consist of an equal 
        number of local representatives from each of the following 3 
        groups:
                    (A) A group comprised of individuals under age 20 
                at the time of service on the consortium.
                    (B) A group comprised of representatives of--
                            (i) private youth-serving and youth 
                        development organizations;
                            (ii) public youth-serving and youth 
                        development organizations;
                            (iii) organizations supporting youth 
                        involved in community service and civic 
                        participation; and
                            (iv) organizations providing or operating 
                        local youth correctional programs or facilities 
                        and local law enforcement agencies.
                    (C) A group comprised of representatives of--
                            (i) local elected officials;
                            (ii) educational entities, including local 
                        elementary and secondary schools, community 
                        colleges, colleges, and universities;
                            (iii) libraries and museums;
                            (iv) parks and recreation agencies;
                            (v) volunteer centers;
                            (vi) philanthropic organizations, including 
                        community foundations;
                            (vii) businesses and employee 
                        organizations;
                            (viii) faith-based organizations;
                            (ix) health and mental health agencies;
                            (x) parents, grandparents, and guardians, 
                        including at least 1 parent, grandparent, or 
                        guardian of a youth who has participated in an 
                        activity described in section 9112(b) within 
                        the 3-year period preceding service on the 
                        consortium;
                            (xi) if a military installation is located 
                        in the youth development area, personnel of the 
                        installation; and
                            (xii) arts and cultural organizations.
            (4) Responsibilities.--Each consortium in each youth 
        development area shall--
                    (A) submit to the State agency within 120 days of 
                the State agency's announcement of the availability of 
                allocations under section 9106(b) to youth development 
                areas to pay for the cost of youth development programs 
                under this chapter, a letter of intent declaring the 
                consortium's intention to submit an area youth 
                development plan to the State agency;
                    (B) prepare, submit, implement, and evaluate the 
                area plan described in section 9108;
                    (C) designate for the youth development area a 
                fiscal agent that agrees not to seek an award of a 
                grant, or to enter into a contract, to carry out youth 
                development programs under the area plan; and
                    (D) compile reports from entities carrying out 
                youth development programs approved by the consortium 
                for funding under this subtitle, including outcome and 
                utilization data developed under section 9301(1) and 
                evaluation information regarding youth development 
                programs funded under this chapter, and provide an 
                annual report based on the compilation to the State 
                agency.
    (b) Community Mobilization Expenses.--The fiscal agent and other 
entities as determined appropriate by the consortium may use such 
amount as the consortium determines to be appropriate, but not more 
than 8 percent of the area allotment, for paying the cost of--
            (1) generating additional commitments of cash and in-kind 
        resources;
            (2) administration;
            (3) planning;
            (4) monitoring;
            (5) evaluation;
            (6) training; and
            (7) technical assistance.

SEC. 9108. AREA YOUTH DEVELOPMENT PLANS.

    (a) In General.--Each consortium for a youth development area 
shall, in order to be approved by the State agency and receive an 
allocation under this chapter, develop, prepare, and submit to the 
State agency a single area youth development plan, approved by the 
consortium, for the youth development area, at such time, in such 
manner, and meeting such criteria as the State agency may prescribe. 
Such plan shall be for a 2- or 3-year period with such annual revisions 
as may be necessary. Each such plan shall be based upon a uniform 
format for area plans in the State prepared in accordance with section 
9105(b).
    (b) Contents.--Each such plan shall--
            (1) provide specific outcome objectives for youth 
        development programs to be carried out in the youth development 
        area, based on an assessment of needs and resources, sufficient 
        to ensure that all youth in the area have access and 
        participate through a comprehensive and coordinated system to 
        the full array of core resources described in section 9002;
            (2) provide an assurance that, in awarding grants and 
        contracts to entities to implement the area plan to provide 
        youth with access to core resources described in section 9002 
        through youth development programs, the agency will give 
        priority to entities as described in section 9110(b);
            (3) provide that not less than 30 percent of the funds 
        allocated under this chapter for the youth development area 
        will be used for youth development programs that respond to the 
        special developmental needs of youth--
                    (A) in areas with high concentrations of poverty;
                    (B) in rural areas;
                    (C) in situations in which the youth are at higher 
                risk due to abuse, neglect, disconnection from family, 
                disconnection from school, or another community risk 
                factor;
                    (D) in alternative educational settings or who have 
                been expelled or suspended from school;
                    (E) in correctional facilities and other out-of-
                home residential settings;
                    (F) with disabilities; and
                    (G) coming from homes where the primary languages 
                spoken are not English;
            (4) provide assurances that youth engaged in youth 
        development programs carried out under the area plan will be 
        treated equitably;
            (5) contain strategies for mobilizing and coordinating 
        community resources to meet the outcome objectives;
            (6) describe activities for which funds made available 
        through the allocation will be used to fill gaps between unmet 
        needs and available resources;
            (7) describe the inclusive process used by the consortium 
        to engage all segments of the communities in the youth 
        development area in developing the area plan;
            (8) provide measures of program effectiveness to be used in 
        evaluating the progress of the youth development programs 
        approved by the consortium in the area in ensuring access for 
        all youth to the full array of core resources described in 
        section 9002, including specific measures for providing access 
        to such resources for youth with special developmental needs, 
        and including specific measures of the participation of youth;
            (9) describe how local requirements for providing matching 
        funds will be met, how resources will be leveraged, and the 
        uses to which matching funds and leveraged resources will be 
        applied, in carrying out the area plan;
            (10) provide for the establishment and maintenance of 
        outreach sufficient to ensure that youth and their families in 
        the youth development area are aware of youth development 
        programs providing access to the core resources described in 
        section 9002, and to ensure that the participation of youth is 
        sustained;
            (11) provide that the consortium will--
                    (A) conduct periodic evaluations of, and public 
                hearings on, activities carried out under the area 
                plan;
                    (B) furnish technical assistance to entities 
                carrying out youth development programs under this 
                title within the youth development area;
                    (C) establish effective and efficient procedures 
                for the coordination of--
                            (i) entities carrying out youth development 
                        programs under this chapter within the youth 
                        development area; and
                            (ii) entities carrying out other Federal, 
                        State, local, and private programs for youth 
                        within the youth development area; and
                    (D) take into account in connection with matters of 
                general policy arising in the development and 
                administration of the area plan, the views of youth who 
                have participated in youth development programs or who 
                desire to participate in youth development programs 
                pursuant to the plan; and
            (12) provide for the utilization of entities carrying out 
        volunteer service centers and organizations supporting youth in 
        community service and civic participation in the area to--
                    (A) encourage and enlist the services of local 
                volunteer groups to provide assistance and services 
                appropriate to the unique developmental needs of youth 
                in the youth development area;
                    (B) encourage, organize, and promote youth to serve 
                as volunteers to communities in the area; and
                    (C) promote recognition of the contribution made by 
                youth volunteers to youth development programs 
                administered in the youth development area.

SEC. 9109. GRANTS AND CONTRACTS TO ELIGIBLE ENTITIES.

    (a) Request for Proposals.--In implementing an area plan, once the 
plan has been submitted to and approved by the State agency, a 
consortium shall issue a request for proposals to award grants and 
contracts to eligible entities to carry out youth development programs 
under the plan.
    (b) Grants and Contracts.--The consortium shall use the funds made 
available through the allocation made to the consortium under this 
chapter to award grants and contracts on a competitive basis to 
eligible entities to pay for the Federal share of the cost of carrying 
out the youth development programs. Not more than 50 percent of the 
funds made available through the allocation made to the consortium may 
be awarded to a single recipient of a grant or contract unless the 
recipient is a coalition as described in section 9110(a)(1).
    (c) Conflict Provision.--The bylaws of the consortium shall contain 
a conflict of interest provision that requires any member of the 
consortium or employee of the consortium who has a conflict of interest 
regarding any matter related to awarding a grant or contract under 
subsection (b) to declare the conflict and refrain from voting on the 
award.
    (d) Period.--The consortium may award such a grant or contract for 
a period of not more than 4 years. The consortium may terminate the 
funding made available through such grant or contract during such grant 
or contract period for a youth development program if insufficient 
Federal funds are appropriated under section 9102 to permit 
continuation of funding.
    (e) Federal Share.--
            (1) In general.--The Federal share of the cost of carrying 
        out a program described in this section shall be--
                    (A) 80 percent for the first and second year for 
                which the program receives funding under this section;
                    (B) 70 percent for the third such year;
                    (C) 60 percent for the fourth such year; and
                    (D) 50 percent for any subsequent year.
            (2) Non-federal share.--An entity that receives a grant or 
        contract under this section may provide for the non-Federal 
        share of the cost from non-Federal sources (which may include 
        State or local public sources) in cash or in kind, fairly 
        evaluated, including facilities, equipment, or services.
            (3) Adjustments.--A State agency may adjust the Federal 
        share of the cost that applies to an entity that receives a 
        grant or contract under this section from a consortium, in the 
        event that the consortium demonstrates significant economic 
        need sufficient to cause difficulties in area plan 
        implementation.

SEC. 9110. ELIGIBLE ENTITIES.

    (a) In General.--To be eligible to receive a grant or contract 
under section 9109, an entity shall be--
            (1) a coalition of community-based youth-serving or youth 
        development organizations, public agencies, health and mental 
        health agencies, education entities including community 
        colleges, colleges, and universities, libraries and museums, 
        parks and recreation agencies, arts and cultural organizations, 
        volunteer centers, faith-based organizations, older adult 
        organizations, or organizations supporting youth involved in 
        community service and civic participation; or
            (2) a community-based public or private youth-serving or 
        youth development organization.
    (b) Priority.--In awarding grants and contracts under section 9109, 
a consortium shall give priority to--
            (1) existing entities that carry out youth development 
        programs or health, mental health, fitness, education, 
        workforce preparation, substance abuse prevention, child 
        welfare, evaluation and assessment, parenting, recreation, arts 
        and cultural engagement, teen pregnancy prevention, 
        rehabilitative, or residential services to youth (as of the 
        date of submission of the area plan) that use proven methods 
        and materials supported by evaluation and can demonstrate 
        effective service delivery and sustainability; and
            (2) entities that submit applications under section 9111 
        that--
                    (A) evidence collaboration among community agencies 
                in providing services under an area plan;
                    (B) are outcome driven;
                    (C) evidence youth leadership opportunities;
                    (D) evidence sustainable, continuous, and 
                sequential activities for youth;
                    (E) evidence strong management practices;
                    (F) evidence strong workforce training and 
                retention efforts; and
                    (G) evidence a commitment to evaluation or other 
                methods of continual reflection on improving quality 
                and efficacy.
    (c) Administrative Expenses.--An entity that receives a grant or 
contract under section 9109 may use up to 5 percent of the funds 
received through the grant or contract for the cost of administrative 
expenses.
    (d) Limitation.--A for-profit entity that receives a grant or 
contract under section 9109 may not use funds made available through 
the grant or contract for the purposes of generating additional 
profits.

SEC. 9111. APPLICATIONS.

    To be eligible to receive a grant or contract under section 9109 to 
carry out youth development programs under an area plan, an entity 
shall submit an application to the consortium for the area at such 
time, in such manner, and containing such information as the consortium 
and the appropriate State agency, may reasonably require. Such 
application shall include specific descriptions of how the entity will 
implement section 9112(a).

SEC. 9112. YOUTH DEVELOPMENT PROGRAMS.

    (a) Access.--An eligible entity that receives a grant or contract 
under section 9109 to carry out a youth development program shall 
implement a program that promotes, either directly, through a contract, 
or indirectly through collaboration with other community entities, 
access to the full array of core resources described in section 9002.
    (b) Activities.--An eligible entity that receives a grant or 
contract under section 9109 to carry out a youth development program 
may include among eligible activities provided through the program, 
which are part of an effort to provide access to, and participation in, 
the full array of core resources described in section 9002--
            (1) character development and ethical enrichment 
        activities;
            (2) mentoring activities, including one-to-one relationship 
        building and tutoring;
            (3) provision and support of community youth centers and 
        clubs;
            (4) nonschool hours, weekend, and summer programs and 
        camps;
            (5) sports, recreation, and other activities promoting 
        physical fitness and teamwork;
            (6) services that promote health and healthy development 
        and behavior on the part of youth, including risk avoidance 
        programs;
            (7) academic enrichment, peer counseling and teaching, and 
        literacy activities;
            (8) camping, environmental, and science education;
            (9) arts and cultural engagement, including through music, 
        fine and performing arts;
            (10) workforce preparation, youth entrepreneurship, and 
        technological and vocational skill building;
            (11) opportunities for community service and community 
        action aimed at involving youth in providing the full array of 
        core resources described in section 9002 to other youth, 
        including opportunities provided in conjunction with activities 
        being performed by entities under the National and Community 
        Service Act of 1990 (42 U.S.C. 12501 et seq.);
            (12) opportunities that engage youth in civic participation 
        and as leaders or partners in decisionmaking, especially 
        opportunities with respect to programs and strategies that seek 
        to offer access to, and participation in, the full array of 
        core resources described in section 9002;
            (13) special interest group activities or courses, 
        including activities or courses regarding video production, 
        cooking, gardening, pet care, photography, and other youth-
        identified interests;
            (14) efforts focused on building the capacity of community-
        based youth workers, utilizing community colleges, colleges, 
        and universities;
            (15) public and private youth led programs, including such 
        programs provided by youth-serving or youth development 
        organizations;
            (16) transportation services to foster the participation of 
        youth in youth development programs in the community involved;
            (17) subsidies for youth that meet the income eligibility 
        guidelines for a free or reduced price lunch under section 9(b) 
        of the Richard B. Russell National School Lunch Act (42 U.S.C. 
        1758(b)), if the provision of such a subsidy allows a youth to 
        fully participate in a youth development program that is part 
        of a strategy to promote access to, and participation in, the 
        full array of core resources described in section 9002;
            (18) training or group counseling to assist youth, by State 
        certified counselors, psychologists, social workers, or other 
        State licensed or certified mental health professionals who are 
        qualified under State law to provide such services to youth; 
        and
            (19) referrals to State certified counselors, 
        psychologists, social workers, or other State licensed or 
        certified mental health professionals or health professionals 
        who are qualified under State law to provide such services to 
        youth.
    (c) Information.-- An eligible entity that receives a grant or 
contract under section 9109 shall be considered to be a person directly 
connected with the administration of a Federal education program for 
purposes of section 9(b)(2)(C)(iii)(II)(aa) of the Richard B. Russell 
National School Lunch Act (7 U.S.C. 1758(b)(2)(C)(iii)(II)). A school 
serving youth who are receiving services under this chapter from the 
eligible entity shall provide information to the eligible entity on the 
income eligibility status of the youth who are children described in 
section 9(b)(2)(C)(iv) of such Act (7 U.S.C. 1758(b)(2)(C)(iv)), in 
accordance with that section, to enable the eligible entity to 
determine eligibility for subsidies under subsection (b)(17).
    (d) Participation in Planning, Design, and Implementation.--An 
eligible entity that receives a grant or contract under section 9109 
shall actively engage parents, grandparents, guardians, and youth in 
the planning, design, and implementation of youth development programs 
supported by funds made available through the grant or contract, 
including using consumer feedback and evaluation mechanisms at least 
once a year.

                       CHAPTER 3--ACCOUNTABILITY

SEC. 9201. PURPOSES.

    The purposes of this chapter are--
            (1) to ensure that funds appropriated to carry out this 
        subtitle are expended in compliance with this subtitle; and
            (2) to establish mechanisms at the Federal, State, and 
        local levels to monitor expenditures of the funds and respond 
        to noncompliance with this subtitle.

SEC. 9202. FEDERAL LEVEL ACCOUNTABILITY.

    (a) Data Collection and Use.--The Associate Commissioner shall 
collect, collate, and review data received from States under section 
9104(a)(2)(K) and shall make such data available, in the aggregate and 
by State, to the Coordinating Council for National Youth Policy, 
Congress, and (on request) to the general public.
    (b) Correction of Deficiencies.--If the Associate Commissioner 
determines, based on a review of State annual reports, State youth 
development plans, State data submissions, audits, evaluations, or 
other documentation required under this subtitle, that a State or 
eligible entity that receives funds through a grant or contract made 
under this subtitle is not complying with the requirements of this 
subtitle, the Associate Commissioner shall--
            (1) notify the State or eligible entity of the deficiencies 
        that require correction and request that the State or entity 
        submit a plan to correct the deficiencies;
            (2) negotiate a plan to correct the deficiencies, and 
        provide appropriate training or technical assistance designed 
        to assist the State or eligible entity in complying with the 
        requirements of this subtitle; and
            (3) if the State or eligible entity fails to submit or 
        negotiate a plan to correct the deficiencies or fails to make 
        substantial efforts, within 6 months after the date of the 
        notification described in paragraph (1), to correct the 
        deficiencies and comply with the requirements of this 
        subtitle--
                    (A) terminate the provision of funds under this 
                subtitle to the State or entity for the remainder of 
                the period of the grant or contract; and
                    (B) disburse such funds in the manner prescribed in 
                section 9103(e) for funds withheld under that section.

SEC. 9203. STATE LEVEL ACCOUNTABILITY.

    If the State agency designated in section 9104(a)(1) determines, 
based on a review of reports, data submissions, audits, evaluations, or 
other documentation required under this subtitle, that a consortium or 
eligible entity that receives funds through a grant or contract made 
under this subtitle is not complying with the requirements of this 
subtitle, the State agency shall--
            (1) notify the consortium or eligible entity of the 
        deficiencies that require correction and request that the 
        consortium or entity submit a plan to correct the deficiencies;
            (2) negotiate a plan to correct the deficiencies, and 
        provide appropriate training or technical assistance designed 
        to assist the consortium or eligible entity in complying with 
        the requirements of this subtitle; and
            (3) if the consortium or eligible entity fails to submit or 
        negotiate a plan to correct the deficiencies or fails to make 
        substantial efforts, within 6 months after the date of the 
        notification described in paragraph (1), to correct the 
        deficiencies and comply with the requirements of this subtitle, 
        terminate the provision of funds under this subtitle to the 
        consortium or entity for the remainder of the period of the 
        grant or contract.

SEC. 9204. LOCAL LEVEL ACCOUNTABILITY.

    If a consortium determines, based on a review of reports, data 
submissions, audits, evaluations, or other documentation required under 
this subtitle, that an eligible entity that receives funds through a 
grant or contract made under this subtitle is not complying with the 
requirements of this subtitle, the consortium shall--
            (1) notify the eligible entity of the deficiencies that 
        require correction and request that the entity submit a plan to 
        correct the deficiencies;
            (2) negotiate a plan to correct the deficiencies and 
        provide appropriate training or technical assistance designed 
        to assist the eligible entity in complying with the 
        requirements of this subtitle; and
            (3) if the eligible entity fails to submit or negotiate a 
        plan to correct the deficiencies or fails to make substantial 
        efforts, within 6 months after the date of the notification 
        described in paragraph (1), to correct the deficiencies and 
        comply with the requirements of this subtitle, terminate the 
        provision of funds under this subtitle of the entity for the 
        remainder of the period of the grant or contract.

SEC. 9205. STATE AUDIT.

    Each State that receives funds under this subtitle shall submit 
annually, to the Associate Commissioner, the findings of an independent 
audit conducted in accordance with chapter 75 of title 31, United 
States Code, concerning the use of such funds.

             CHAPTER 4--TRAINING, RESEARCH, AND EVALUATION

SEC. 9301. PURPOSE.

    The purpose of this chapter is to expand the Nation's knowledge and 
understanding of youth, youth development programs, and community 
mobilization aimed at providing all youth with access to, and 
participation in, the full array of core resources described in section 
9002 by--
            (1) assisting States in evaluating the effectiveness of 
        activities implemented under this subtitle (including 
        evaluating the outcomes resulting from the activities alongside 
        the activities' inputs and fidelity of these inputs), including 
        assisting in the specification of a minimum set of quality, 
        outcome, and utilization data to be collected, and development 
        of common definitions to be used, by entities receiving funds 
        under this subtitle;
            (2) placing priority on the education and training of 
        personnel, with respect to youth development programs, to work 
        with youth, with a special emphasis on youth with special 
        developmental needs;
            (3) conducting research (that includes samples that are 
        representative of broader populations; that is longitudinal; 
        that can examine effects across multiple levels, such as the 
        effects on youth, programs, and communities; and that addresses 
        participation, selection, participant retention, and program 
        reach) and identifying effective practices directly related to 
        the field of youth development;
            (4) disseminating widely information acquired through such 
        research to national, State, and local youth development 
        organizations and youth-serving organizations; and
            (5) establishing a clearinghouse for the collection, 
        dissemination, training, and technical assistance of youth 
        development best practices, including quality, outcome, and 
        performance measurements.

SEC. 9302. GRANTS AND CONTRACTS.

    (a) In General.--The Associate Commissioner may award grants and 
contracts to eligible entities to carry out evaluation, education and 
training, and dissemination activities described in this section.
    (b) Evaluation.--
            (1) System.--The Associate Commissioner shall develop and 
        establish a system for evaluating the effectiveness of 
        activities implemented under this subtitle, including 
        mechanisms for determining and measuring programmatic inputs 
        and outcomes resulting from those activities.
            (2)  Distribution.--In awarding grants and contracts under 
        subsection (a), the Associate Commissioner shall use 50 percent 
        of the funds appropriated to carry out this chapter for an 
        equitable distribution among the States to allow State agencies 
        to be responsible for evaluating the effectiveness of the 
        activities implemented in the State under this subtitle, 
        including, at a minimum, collecting the quality, outcome, and 
        utilization data described in section 9301(1).
    (c) Education and Training.--The Associate Commissioner shall 
develop and establish a system for providing education and training of 
personnel of States and consortia to increase their capacity to work 
with youth, with a special emphasis on youth with special developmental 
needs, in carrying out quality youth development programs under this 
subtitle.
    (d) Impact Evaluation.--
            (1) Biennial evaluation.--
                    (A) In general.--The Associate Commissioner shall 
                conduct an independent biennial evaluation of the 
                impact of youth development programs assisted under 
                this subtitle to promote positive youth development.
                    (B) Contents.--The evaluation shall report on--
                            (i) whether the entities carrying out the 
                        youth development programs--
                                    (I) provided a thorough assessment 
                                of local resources and barriers to 
                                access to, and participation in, the 
                                full array of core resources;
                                    (II) used objective data and the 
                                knowledge of a wide range of community 
                                members;
                                    (III) developed measurable goals 
                                and objectives;
                                    (IV) implemented research-based 
                                youth development programs that have 
                                been shown to be effective and meet 
                                identified needs; and
                                    (V) conducted periodic evaluations 
                                to assess progress made toward 
                                achieving the goals and objectives and 
                                used evaluations to improve the goals 
                                and objectives, and the youth 
                                development programs;
                            (ii) whether the youth development programs 
                        have been designed and implemented in a manner 
                        that specifically targets, if relevant to the 
                        youth development programs--
                                    (I) research-based variables that 
                                are predictive of healthy youth 
                                development;
                                    (II) risk factors that are 
                                predictive of an increased likelihood 
                                that youth will use drugs, alcohol, or 
                                tobacco, become sexually active, or 
                                engage in violence or drop out of 
                                school; or
                                    (III) protective factors, buffers, 
                                or assets that are known to protect 
                                youth from exposure to risk, either by 
                                reducing the exposure to risk factors 
                                or by changing the way a youth responds 
                                to risk, and to increase the likelihood 
                                of positive youth development;
                            (iii) whether the entities carrying out the 
                        youth development programs have appreciably 
                        reduced individual risk-taking behavior and 
                        community risk factors and increased either 
                        individual or community protective factors; and
                            (iv) whether the entities carrying out the 
                        youth development programs have incorporated 
                        effective youth and parent involvement.
            (2) Biennial report.--Not later than January 1, 2006, and 
        every 2 years thereafter, the Associate Commissioner shall 
        submit to the President and Congress a report on the findings 
        of the evaluation conducted under paragraph (1) together with 
        data available from other sources on the well-being of youth.
    (e) Dissemination.--The Associate Commissioner shall develop a 
system to facilitate the broad dissemination of information acquired 
through research to States, youth development consortia, and the public 
about successful and promising strategies for providing all youth with 
the full array of core resources described in section 9002.

SEC. 9303. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this chapter 
$7,000,000 for fiscal year 2004, and such sums as may be necessary for 
each of fiscal years 2005, 2006, 2007, and 2008.

           Subtitle E--Coordination of National Youth Policy

SEC. 9401. COORDINATING COUNCIL FOR NATIONAL YOUTH POLICY.

    (a) Establishment.--There is established in the Executive Office of 
the President a Coordinating Council for National Youth Policy.
    (b) Administration.--The Assistant to the President for Domestic 
Policy within the Executive Office of the President shall oversee the 
functioning of the Council established under subsection (a).
    (c) Composition.--
            (1) Number.--The Council shall be composed of the following 
        members:
                    (A) The Attorney General.
                    (B) The Secretary of Education.
                    (C) The Secretary of Health and Human Services.
                    (D) The Secretary of Housing and Urban Development.
                    (E) The Secretary of Labor.
                    (F) The Secretary of Transportation.
                    (G) The Commissioner of Social Security.
                    (H) The Chief Executive Officer of the Corporation 
                for National and Community Service.
                    (I) The heads of such other Federal departments and 
                agencies as the Secretary considers appropriate.
                    (J) 15 individuals who are neither officers nor 
                employees of the United States.
            (2) Qualifications of non-federal members.--The President 
        shall appoint the members of the Council specified in paragraph 
        (1)(J) from among--
                    (A) individuals who have expertise in or experience 
                with youth development or youth-serving programs, 
                especially programs serving rural and inner-city urban 
                youth and youth with special developmental needs;
                    (B) representatives of national organizations with 
                an interest in youth development programs;
                    (C) representatives of business and faith 
                communities;
                    (D) parents, grandparents, and guardians; and
                    (E) youth who have participated in local youth 
                development programs or who desire to participate in 
                local youth development programs.
            (3) Age of non-federal members.--At least \1/3\ of the 
        individuals appointed under paragraph (1)(J) shall be younger 
        than 20 years of age at the time of appointment.
    (d) Appointment and Terms of Non-Federal Members.--
            (1) Terms.--
                    (A) In general.--Except as otherwise provided in 
                this section, a member of the Council appointed under 
                subsection (c)(1)(J) shall serve for a term of 4 years.
                    (B) End of term.--The term shall end on March 31 
                regardless of the actual date of the appointment of 
                such member.
            (2) Service.--Members of the Council appointed under 
        subsection (c)(1)(J) shall serve without regard to the 
        provisions of title 5, United States Code.
    (e) Service During Vacancies.--Any member of the Council appointed 
under subsection (c)(1)(J) appointed to fill a vacancy occurring prior 
to the expiration of the term for which such public member's 
predecessor was appointed shall be appointed for the remainder of such 
term. Members of the Council appointed under subsection (c)(1)(J) shall 
be eligible for reappointment and may continue to serve after the 
expiration of their terms until their successors have taken office.
    (f) Vacancies.--Any vacancy in the Council shall not affect the 
powers of the Council, but shall be filled in the same manner as the 
original appointment was made.
    (g) Chairperson.--The Secretary of Health and Human Services shall 
serve as Chairperson for the Council.
    (h) Meetings.--The Council shall meet at the call of the 
Chairperson at least twice a year.
    (i) Duties.--The Council shall--
            (1) serve as an effective and visible advocate for youth in 
        the Federal Government, by actively reviewing and commenting on 
        all Federal policies affecting youth;
            (2) advise and assist the President and the heads of 
        Federal departments and agencies on matters regarding the core 
        resources youth need and the capacity of youth to contribute to 
        the Nation and their communities;
            (3) make recommendations to the President and to Congress 
        with respect to Federal policies regarding youth;
            (4) provide public forums for discussion on issues 
        regarding youth, publicize the core resources youth need, and 
        obtain information relating to ensuring all youth access and 
        participate in the full array of core resources described in 
        section 9002, by conducting public hearings, and by conducting 
        or sponsoring conferences, workshops, and other similar 
        meetings;
            (5) develop mechanisms to foster collaboration and resolve 
        administrative and programmatic conflicts between Federal 
        programs that would be barriers to parents, grandparents, and 
        guardians, community-based, youth-serving, and youth 
        development organizations, local government entities, State 
        government entities, tribes, older adult organizations, parks 
        and recreation agencies, libraries and museums, arts and 
        cultural organizations, faith-based organizations, and 
        organizations supporting youth involved in community service 
        and civic participation, related to the coordination of 
        services and funding for programs promoting access to, and 
        participation in, the full array of core resources described in 
        section 9002; and
            (6) consult with and assist State and local governments 
        with respect to barriers the governments encounter related to 
        the coordination of services and funding for youth development 
        and youth services programs.
    (j) Reports.--Not later than March 31, 2005, and each subsequent 
year, the Council shall prepare and submit to the President an annual 
report of the findings and recommendations of the Council. The 
President shall transmit each such report to Congress together with 
comments and recommendations.
    (k) Travel Expenses.--Public members of the Council shall not 
receive compensation for the performance of services for the Council, 
but shall be allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies under 
subchapter I of chapter 57 of title 5, United States Code, while away 
from their homes or regular places of business in the performance of 
services for the Council. Notwithstanding section 1342 of title 31, 
United States Code, the President may accept the voluntary and 
uncompensated services of members of the Council.
    (l) Permanent Committee.--Section 14 of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the Council.
    (m) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $500,000 for fiscal year 2004 
and such sums as may be necessary for fiscal years 2005 through 2008.

                       Subtitle B--Youth Programs

SEC. 9201. AMERICORPS.

    Section 501(a)(2)(A) of the National and Community Service Act of 
1990 (42 U.S.C. 12681(a)(2)(A)) is amended by striking ``$300,000,000'' 
and all that follows and inserting ``$500,000,000 for fiscal year 2004 
and such sums as may be necessary for fiscal year 2005.''.

SEC. 9202. YOUTHBUILD PROGRAM.

    Section 402 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12870) is amended by adding at the end the following:
    ``(d) Fiscal Years 2004 and 2005.--There are authorized to be 
appropriated for grants under subtitle D, $107,000,000 for fiscal year 
2004 and $120,000,000 for fiscal year 2005.''.

SEC. 9203. YOUTH WORKFORCE INVESTMENT ACTIVITIES.

    (a) Youth Opportunities Grants.--Section 127(b)(1)(A)(ii)(II) of 
the Workforce Investment Act of 1998 (29 U.S.C. 2852(b)(1)(A)(ii)(II)) 
is amended by striking ``$1,250,000,000 or greater, $250,000,000.'' and 
inserting ``$1,391,000,000 or greater, $391,000,000.''
    (b) Youth Activities Formula Grants.--Section 137(a) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2872(a)) is amended--
            (1) by striking ``are authorized'' and inserting ``is 
        authorized''; and
            (2) by striking ``such sums'' and all that follows and 
        inserting ``$2,427,000,000 for fiscal year 2004.''.
    (c) Job Corps.--Section 161 of the Workforce Investment Act of 1998 
(29 U.S.C. 2901) is amended--
            (1) by striking ``are authorized'' and inserting ``is 
        authorized''; and
            (2) by striking ``such sums'' and all that follows and 
        inserting ``$1,400,000,000 for fiscal year 2004.''.

SEC. 9204. TRANSITION TRAINING FOR REINTEGRATING YOUTH OFFENDERS.

    Section 821(j) of the Higher Education Amendments of 1998 (20 
U.S.C. 1151(j)) is amended--
            (1) by striking ``are authorized'' and inserting ``is 
        authorized''; and
            (2) by striking ``$17,000,000'' and all that follows and 
        inserting ``$75,000,000 for fiscal year 2004.''.

                 TITLE X--SAFE START--JUVENILE JUSTICE

       Subtitle A--Juvenile Delinquency Prevention and Protection

SEC. 10001. DEFINITION OF JUVENILE.

    Section 103 of the Juvenile Justice and Delinquency Prevention Act 
of 1974 (42 U.S.C. 5603) is amended--
            (1) in paragraph (28), by striking ``and'' at the end;
            (2) in paragraph (29), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(30) the term `juvenile' means an individual who is less 
        than 18 years of age.''.

SEC. 10002. STATE PLAN ALLOCATION.

    Section 222(a)(2)(A) of the Juvenile Justice and Delinquency 
Prevention Act of 1974 (42 U.S.C. 5632(a)(2)(A)) is amended--
            (1) by striking ``$325,000'' and inserting ``$600,000''; 
        and
            (2) by striking ``$400,000'' and inserting $750,000.

SEC. 10003. STATE PLAN REQUIREMENTS.

    Section 223(a) of the Juvenile Justice and Delinquency Prevention 
Act of 1974 (42 U.S.C. 5633(a)) is amended--
            (1) in paragraph (27), by striking ``and'' at the end;
            (2) in paragraph (28), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
            ``(29) provide an assurance that the State shall address 
        the disparate treatment of members of minority groups at all 
        stages of the juvenile justice system, including intake, 
        arrest, detention, adjudication, disposition, and transfer;
            ``(30) provide an assurance that the State shall make the 
        amended plan submitted annually under this section available to 
        the public and shall include in the amended plan a report of 
        the State's progress in addressing the disparate treatment of 
        members of minority groups at all stages of the juvenile 
        justice system, including data on any disproportionate 
        representation of African American, Latino, Native American, 
        and Asian juveniles;
            ``(31) contain satisfactory evidence that the State has 
        held a public hearing on the plan;
            ``(32) provide an assurance that the State shall provide 
        every accused or adjudicated juvenile with reasonable safety 
        and security, adequate food, heat, light, sanitary facilities, 
        bedding, clothing, recreation, counseling, education, training, 
        and medical care, including, if necessary, mental health 
        services;
            ``(33) provide that not more than 3 percent of funds 
        received by the State under section 222 shall be expended to 
        establish a State juvenile justice coalition, which coalition 
        shall include the participation of juveniles; and
            ``(34) provide that 3 percent of funds received by the 
        State under section 222 shall be expended to carry out 
        paragraph (24).''.

               Subtitle B--Mental Health Juvenile Justice

SEC. 10101. SHORT TITLE.

    This subtitle may be cited as the ``Mental Health Juvenile Justice 
Act''.

SEC. 10102. TRAINING OF JUSTICE SYSTEM PERSONNEL.

    Title II of the Juvenile Justice and Delinquency Prevention Act of 
1974 (42 U.S.C. 5611 et seq.) is amended by adding at the end the 
following:

    ``PART K--ACCESS TO MENTAL HEALTH AND SUBSTANCE ABUSE TREATMENT

``SEC. 299AA. GRANTS FOR TRAINING OF JUSTICE SYSTEM PERSONNEL.

    ``(a) In General.--The Administrator shall make grants to State and 
local juvenile justice agencies in collaboration with State and local 
mental health agencies, for purposes of training the officers and 
employees of the State juvenile justice system (including employees of 
facilities that are contracted for operation by State and local 
juvenile authorities) regarding appropriate access to mental health and 
substance abuse treatment programs and services in the State for 
juveniles who come into contact with the State juvenile justice system 
who have mental health or substance abuse problems.
    ``(b) Use of Funds.--A State or local juvenile justice agency that 
receives a grant under this section may use the grant for purposes of--
            ``(1) providing cross-training, jointly with the public 
        mental health system, for State juvenile court judges, public 
        defenders, and mental health and substance abuse agency 
        representatives with respect to the appropriate use of 
        effective, community-based alternatives to juvenile justice or 
        mental health system institutional placements; or
            ``(2) providing training for State juvenile probation 
        officers and community mental health and substance abuse 
        program representatives on appropriate linkages between 
        probation programs and mental health community programs, 
        specifically focusing on the identification of mental disorders 
        and substance abuse addiction in juveniles on probation, 
        effective treatment interventions for those disorders, and 
        making appropriate contact with mental health and substance 
        abuse case managers and programs in the community, in order to 
        ensure that juveniles on probation receive appropriate access 
        to mental health and substance abuse treatment programs and 
        services.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated from the Violent Crime Reduction Trust Fund, $50,000,000 
for each of the fiscal years 2004 through 2008 to carry out this 
section.''.

SEC. 10103. BLOCK GRANT FUNDING FOR TREATMENT AND DIVERSION PROGRAMS.

    Part K of title II of the Juvenile Justice and Delinquency 
Prevention Act of 1974 (42 U.S.C. 5611 et seq.), as added by section 
10102, is amended by adding at the end the following:

``SEC. 299BB. GRANTS FOR STATE PARTNERSHIPS.

    ``(a) In General.--The Attorney General and the Secretary of Health 
and Human Services shall make grants to partnerships between State and 
local or county juvenile justice agencies and State and local mental 
health authorities (or appropriate children service agencies) in 
accordance with this section.
    ``(b) Use of Funds.--A partnership described in subsection (a) that 
receives a grant under this section shall use such amounts for the 
establishment and implementation of programs that address the service 
needs of juveniles who come into contact with the justice system 
(including facilities contracted for operation by State or local 
juvenile authorities) and who have mental health or substance abuse 
problems by requiring the following:
            ``(1) Diversion.--Appropriate diversion of those juveniles 
        from incarceration--
                    ``(A) who are at imminent risk of being taken into 
                custody;
                    ``(B) at the time they are initially taken into 
                custody;
                    ``(C) after they are charged with an offense or act 
                of juvenile delinquency;
                    ``(D) after they are adjudicated delinquent but 
                prior to case disposition; and
                    ``(E) after they are released from a juvenile 
                facility, for the purposes of attending after-care 
                programs.
            ``(2) Treatment.--
                    ``(A) Screening and assessment of juveniles.--
                            ``(i) Initial screening.--
                                    ``(I) In general.--Initial mental 
                                health screening shall be completed for 
                                all juveniles immediately upon entering 
                                the juvenile justice system or a 
                                juvenile facility.
                                    ``(II) Qualified professionals.--
                                Screening shall be conducted by 
                                qualified health and mental health 
                                professionals or by staff who have been 
                                trained by qualified health, mental 
                                health, and substance abuse 
                                professionals.
                                    ``(III) Review.--In the case of a 
                                screening by staff, the screening 
                                results should be reviewed by qualified 
                                health or mental health professionals 
                                not later than 24 hours after the 
                                screening.
                            ``(ii) Acute mental illness.--
                                    ``(I) In general.--Juveniles who 
                                suffer from acute mental disorders, are 
                                suicidal, or are in need of 
                                detoxification shall be placed in, or 
                                immediately transferred to, an 
                                appropriate medical or mental health 
                                facility.
                                    ``(II) Admission.--Juveniles 
                                described in subclause (I) shall be 
                                admitted to a secure correctional 
                                facility only with written medical 
                                clearance.
                            ``(iii) Comprehensive assessment.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), all 
                                juveniles entering the juvenile justice 
                                system shall have a comprehensive 
                                assessment conducted and an 
                                individualized treatment plan written 
                                and implemented within 2 weeks of 
                                entering the system.
                                    ``(II) Secure facility.--For 
                                juveniles incarcerated in secure 
                                facilities, the assessment referred to 
                                in subclause (I) shall be conducted not 
                                later than 1 week after the juvenile 
                                enters the juvenile justice system.
                                    ``(III) Qualified professional.--
                                Comprehensive assessments conducted 
                                under this clause shall be completed by 
                                qualified health, mental health, and 
                                substance abuse professionals.
                    ``(B) Treatment.--
                            ``(i) In general.--If the need for 
                        treatment is indicated by the assessment of a 
                        juvenile, the juvenile shall be referred to or 
                        treated by a qualified professional. A juvenile 
                        who is currently receiving treatment for a 
                        mental or emotional disorder shall have 
                        treatment continued.
                            ``(ii) Period.--
                                    ``(I) In general.--Treatment shall 
                                continue until an additional mental 
                                health assessment determines that the 
                                juvenile is no longer in need of 
                                treatment.
                                    ``(II) Reevaluation.--Treatment 
                                plans shall be reevaluated at least 
                                every 30 days.
                            ``(iii) Discharge plan.--
                                    ``(I) In general.--An incarcerated 
                                juvenile shall have a discharge plan 
                                prepared when the juvenile enters the 
                                correctional facility in order to 
                                integrate the juvenile back into the 
                                family or the community.
                                    ``(II) Updating of plan; aftercare 
                                services.--The discharge plan referred 
                                to in subclause (I) shall be updated in 
                                consultation with the juvenile's family 
                                or guardian before the juvenile leaves 
                                the facility and shall address the 
                                provision of aftercare services.
                            ``(iv) Medication.--
                                    ``(I) In general.--Any juvenile 
                                receiving psychotropic medications 
                                shall be under the care of a licensed 
                                psychiatrist.
                                    ``(II) Monitoring.--Psychotropic 
                                medications shall be monitored 
                                regularly by trained staff for their 
                                efficacy and side effects.
                            ``(v) Specialized treatment.--Specialized 
                        treatment and services shall be continually 
                        available to a juvenile who--
                                    ``(I) has a history of mental 
                                health problems or treatment;
                                    ``(II) has a documented history of 
                                sexual abuse or offenses, as victim or 
                                as perpetrator;
                                    ``(III) has substance abuse 
                                problems, health problems, learning 
                                disabilities, or histories of family 
                                abuse or violence; or
                                    ``(IV) has developmental 
                                disabilities.
                    ``(C) Medical and mental health emergencies.--
                            ``(i) Written policies.--All correctional 
                        facilities shall have--
                                    ``(I) written policies and 
                                procedures on suicide prevention; and
                                    ``(II) written arrangements with a 
                                hospital or other facility for 
                                providing emergency medical and mental 
                                health care.
                            ``(ii) Trained staff.--All staff working in 
                        correctional facilities shall be trained and 
                        certified annually in suicide prevention.
                            ``(iii) Service availability.--Physical and 
                        mental health services shall be available to an 
                        incarcerated juvenile 24 hours per day, 7 days 
                        per week.
                    ``(D) Classification of juveniles.--
                            ``(i) In general.--Juvenile facilities 
                        shall classify and house juveniles in living 
                        units according to a plan that includes age, 
                        gender, offense, special medical or mental 
                        health condition, size, and vulnerability to 
                        victimization. Younger, smaller, weaker, and 
                        more vulnerable juveniles shall not be placed 
                        in housing units with older, more aggressive 
                        juveniles.
                            ``(ii) Boot camps.--Juveniles who are under 
                        13 years old or who have serious medical 
                        conditions or mental illness shall not be 
                        placed in paramilitary boot camps.
                    ``(E) Confidentiality of records.--Mental health 
                and substance abuse treatment records of juveniles 
                shall be treated as confidential and shall be excluded 
                from the records that States require to be routinely 
                released to other correctional authorities and school 
                officials.
                    ``(F) Mandatory reporting.--
                            ``(i) In general.--States shall keep 
                        records of the incidence and types of mental 
                        health and substance abuse disorders in their 
                        juvenile justice populations, the range and 
                        scope of services provided, and barriers to 
                        service.
                            ``(ii) Annual submission.--States shall 
                        submit an analysis of this information annually 
                        to the Department of Justice.
                    ``(G) Staff ratios for correctional facilities.--
                            ``(i) In general.--Each secure correctional 
                        facility shall have a minimum ratio of--
                                    ``(I) not fewer than 1 mental 
                                health counselor to every 50 juveniles;
                                    ``(II) 1 clinical psychologist for 
                                every 100 juveniles; and
                                    ``(III) 1 licensed psychiatrist for 
                                every 100 juveniles receiving 
                                psychiatric care.
                            ``(ii) Mental health counselors.--Mental 
                        health counselors shall be professionally 
                        trained and certified or licensed.
                    ``(H) Use of force.--
                            ``(i) Written guidelines.--All juvenile 
                        facilities shall have a written behavioral 
                        management system based on incentives and 
                        rewards to reduce misconduct and to decrease 
                        the use of restraints and seclusion by staff.
                            ``(ii) Limitations on restraint.--
                                    ``(I) In general.--Control 
                                techniques such as restraint, 
                                seclusion, chemical sprays, and room 
                                confinement shall be used only in 
                                response to extreme threats to life or 
                                safety.
                                    ``(II) Documentation.--Use of these 
                                techniques shall be approved by the 
                                facility superintendent or chief 
                                medical officer and documented in the 
                                juvenile's file along with the 
                                justification for use and the failure 
                                of less restrictive alternatives.
                            ``(iii) Limitation on isolation.--
                                    ``(I) In general.--Isolation and 
                                seclusion shall be used only for 
                                immediate and short-term security or 
                                safety reasons.
                                    ``(II) Approval.--No juvenile shall 
                                be placed in isolation without approval 
                                of the facility superintendent or chief 
                                medical officer or their official staff 
                                designee.
                                    ``(III) Time limit.--A juvenile 
                                shall be in isolation only the amount 
                                of time necessary to achieve security 
                                and safety of the juvenile and staff.
                                    ``(IV) Monitoring.--Staff shall 
                                monitor each juvenile in isolation once 
                                every 15 minutes and conduct a 
                                professional review of the need for 
                                isolation at least every 4 hours.
                                    ``(V) Examination.--Any juvenile 
                                held in seclusion for 24 hours shall be 
                                examined by a physician or licensed 
                                psychologist.
                                    ``(VI) Documentation.--All cases 
                                shall be documented in the juvenile's 
                                file along with the justification.
                    ``(I) IDEA and rehabilitation act.--All juvenile 
                facilities shall abide by all mandatory requirements 
                and time lines set forth under the Individuals with 
                Disabilities Education Act (42 U.S.C. 12101 et seq.) 
                and section 504 of the Rehabilitation Act of 1973 (29 
                U.S.C. 794).
                    ``(J) Advocacy assistance.--
                            ``(i) In general.--The Secretary of Health 
                        and Human Services shall make grants to the 
                        systems established under part C of the 
                        Developmental Disabilities Assistance and Bill 
                        of Rights Act (42 U.S.C. 6041 et seq.)--
                                    ``(I) to monitor the mental health 
                                and special education services provided 
                                by grantees to juveniles under 
                                subparagraphs (A), (B), (C), (H), and 
                                (I); and
                                    ``(II) to advocate on behalf of 
                                juveniles to assure that such services 
                                are properly provided.
                            ``(ii) Appropriation.--The Secretary of 
                        Health and Human Services will reserve not less 
                        than 3 percent of the funds appropriated under 
                        this section for the purposes set forth in 
                        clause (i).
    ``(c) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        from the Violent Crime Reduction Trust Fund, $500,000,000 for 
        each of the fiscal years 2004 through 2008 to carry out this 
        section.
            ``(2) Allocation.--Of amounts appropriated under paragraph 
        (1)--
                    ``(A) 35 percent shall be used for diversion 
                programs under subsection (b)(1); and
                    ``(B) 65 percent shall be used for treatment 
                programs under subsection (b)(2).
            ``(3) Incentives.--The Attorney General and the Secretary 
        of Health and Human Services shall give preference under 
        subsection (b)(2) to partnerships that integrate treatment 
        programs to serve juveniles with co-occurring mental health and 
        substance abuse disorders.
            ``(4) Waivers.--The Attorney General and the Secretary of 
        Health and Human Services may grant a waiver of requirements 
        under subsection (b)(2) for good cause.

``SEC. 299CC. GRANTS FOR PARTNERSHIPS.

    ``(a) In General.--Any partnership desiring to receive a grant 
under this part shall submit an application at such time, in such 
manner, and containing such information as the Attorney General and the 
Secretary of Health and Human Services may prescribe.
    ``(b) Contents.--In accordance with guidelines established by the 
Attorney General and the Secretary of Health and Human Services, each 
application submitted under subsection (a) shall--
            ``(1) set forth a program or activity for carrying out one 
        or more of the purposes specified in section 299BB(b) and 
        specifically identify the purpose each such program or activity 
        is designed to carry out;
            ``(2) provide that such program or activity shall be 
        administered by or under the supervision of the applicant;
            ``(3) provide for the proper and efficient administration 
        of such program or activity;
            ``(4) provide for regular evaluation of such program or 
        activity;
            ``(5) provide an assurance that the proposed program or 
        activity will supplement, not supplant, similar programs and 
        activities already available in the community; and
            ``(6) provide for such fiscal control and fund accounting 
        procedures as may be necessary to ensure prudent use, proper 
        disbursement, and accurate accounting of funds receiving under 
        this part.''.

SEC. 10104. INITIATIVE FOR COMPREHENSIVE, INTERSYSTEM PROGRAMS.

    Subpart 3 of part B of title V of the Public Health Service Act (42 
U.S.C. 290bb-31 et seq.) is amended by adding at the end the following:

``SEC. 520K. INITIATIVE FOR COMPREHENSIVE, INTERSYSTEM PROGRAMS.

    ``(a) In General.--The Secretary and the Attorney General, acting 
through the Director of the Center for Mental Health Services, shall 
award competitive grants to eligible entities for programs that address 
the service needs of juveniles and juveniles with serious mental 
illnesses by requiring the State or local juvenile justice system, the 
mental health system, and the substance abuse treatment system to work 
collaboratively to ensure--
            ``(1) the appropriate diversion of such juveniles and 
        juveniles from incarceration;
            ``(2) the provision of appropriate mental health and 
        substance abuse services as an alternative to incarceration and 
        for those juveniles on probation or parole; and
            ``(3) the provision of followup services for juveniles who 
        are discharged from the juvenile justice system.
    ``(b) Eligibility.--To be eligible to receive a grant under this 
section an entity shall--
            ``(1) be a State or local juvenile justice agency, mental 
        health agency, or substance abuse agency (including community 
        diversion programs);
            ``(2) prepare and submit to the Secretary an application at 
        such time, in such manner, and containing such information as 
        the Secretary may require, including--
                    ``(A) an assurance that the applicant has the 
                consent of all entities described in paragraph (1) in 
                carrying out and coordinating activities under the 
                grant; and
                    ``(B) with respect to services for juveniles, an 
                assurance that the applicant has collaborated with the 
                State or local educational agency and the State or 
                local welfare agency in carrying out and coordinating 
                activities under the grant;
            ``(3) be given priority if it is a joint application 
        between juvenile justice and substance abuse or mental health 
        agencies; and
            ``(4) ensure that funds from non-Federal sources are 
        available to match amounts provided under the grant in an 
        amount that is not less than--
                    ``(A) with respect to the first 3 years under the 
                grant, 25 percent of the amount provided under the 
                grant; and
                    ``(B) with respect to the fourth and fifth years 
                under the grant, 50 percent of the amount provided 
                under the grant.
    ``(c) Use of Funds.--
            ``(1) Initial year.--An entity that receives a grant under 
        this section shall, in the first fiscal year in which amounts 
        are provided under the grant, use such amounts to develop a 
        collaborative plan--
                    ``(A) for how the guarantee will institute a system 
                to provide intensive community services--
                            ``(i) to prevent high-risk juveniles from 
                        coming in contact with the justice system; and
                            ``(ii) to meet the mental health and 
                        substance abuse treatment needs of juveniles on 
                        probation or recently discharged from the 
                        justice system; and
                    ``(B) providing for the exchange by agencies of 
                information to enhance the provision of mental health 
                or substance abuse services to juveniles.
            ``(2) 2-5th years.--With respect to the second through 
        fifth fiscal years in which amounts are provided under the 
        grant, the grantee shall use amounts provided under the grant--
                    ``(A) to furnish services, such as assertive 
                community treatment, wrap-around services for 
                juveniles, multisystemic therapy, outreach, integrated 
                mental health and substance abuse treatment, case 
                management, health care, education and job training, 
                assistance in securing stable housing, finding a job or 
                obtaining income support, other benefits, access to 
                appropriate school-based services, transitional and 
                independent living services, mentoring programs, home-
                based services, and provision of appropriate after 
                school and summer programing;
                    ``(B) to establish a network of boundary spanners 
                to conduct regular meetings with judges, provide 
                liaison with mental health and substance abuse workers, 
                share and distribute information, and coordinate with 
                mental health and substance abuse treatment providers, 
                and probation or parole officers concerning provision 
                of appropriate mental health and drug and alcohol 
                addiction services for individuals on probation or 
                parole;
                    ``(C) to provide cross-system training among 
                police, corrections, and mental health and substance 
                abuse providers with the purpose of enhancing 
                collaboration and the effectiveness of all systems;
                    ``(D) to provide coordinated and effective 
                aftercare programs for juveniles with emotional or 
                mental disorders who are discharged from jail, prison, 
                or juvenile facilities;
                    ``(E) to purchase technical assistance to achieve 
                the grant project's goals; and
                    ``(F) to furnish services, to train personnel in 
                collaborative approaches, and to enhance intersystem 
                collaboration.
            ``(3) Definition.--In paragraph (2)(B), the term `boundary 
        spanners' means professionals who act as case managers for 
        juveniles with mental disorders and substance abuse addictions, 
        within both justice agency facilities and community mental 
        health programs and who have full authority from both systems 
        to act as problem-solvers and advocates on behalf of 
        individuals targeted for service under this program.
    ``(d) Area Served by the Project.--An entity receiving a grant 
under this section shall conduct activities under the grant to serve at 
least a single political jurisdiction.
    ``(e) Authorization of Appropriations.--There shall be made 
available to carry out the section, not less than 10 percent of the 
amount appropriated under section 1935(a) for each of the fiscal years 
2004 through 2008.''.

SEC. 10105. FEDERAL COORDINATING COUNCIL ON THE CRIMINALIZATION OF 
              JUVENILES WITH MENTAL DISORDERS.

    (a) Establishment.--There is established a Federal Coordinating 
Council on Criminalization of Juveniles with Mental Disorders (referred 
to in this section as the ``Council'') as an interdepartmental council 
to--
            (1) study and coordinate the criminal and juvenile justice 
        and mental health and substance abuse activities of the Federal 
        Government; and
            (2) report to Congress on proposed legislation to improve 
        the treatment of mentally ill juveniles who come in contact 
        with the juvenile justice system.
    (b) Membership.--The Council shall include representatives from--
            (1) the appropriate Federal agencies, as determined by the 
        President, including, at a minimum--
                    (A) the Office of the Secretary of Health and Human 
                Services;
                    (B) the Office for Juvenile Justice and Delinquency 
                Prevention;
                    (C) the National Institute of Mental Health;
                    (D) the Social Security Administration;
                    (E) the Department of Education; and
                    (F) the Substance Abuse and Mental Health Services 
                Administration; and
            (2) children's mental health advocacy groups.
    (c) Duties.--The Council shall--
            (1) review Federal policies that hinder or facilitate 
        coordination at the State and local level between the mental 
        health and substance abuse systems on the one hand and the 
        juvenile justice and corrections system on the other;
            (2) study the possibilities for improving collaboration at 
        the Federal, State, and local level among these systems; and
            (3) recommend to Congress any appropriate new initiatives 
        which require legislative action.
    (d) Final Report.--The Council shall submit--
            (1) 18 months after the Council is established, an interim 
        report on current coordination and collaboration, or lack 
        thereof; and
            (2) 2 years after the Council is established, a final 
        report to Congress that includes recommendations for new 
        initiatives in improving coordination and collaboration.
    (e) Expiration.--The Council shall expire 2 years after the Council 
is established.

SEC. 10106. MENTAL HEALTH SCREENING AND TREATMENT FOR PRISONERS.

    (a) Additional Requirements for the Use of Funds Under the Violent 
Offender Incarceration and Truth-in-Sentencing Grants Program.--Section 
20105(b) of the Violent Crime Control and Law Enforcement Act of 1994 
(42 U.S.C. 13705(b)) is amended to read as follows:
    ``(b) Additional Requirements.--
            ``(1) Eligibility for grant.--To be eligible to receive a 
        grant under section 20103 or 20104, a State shall, not later 
        than January 1, 2004, have a program of mental health screening 
        and treatment for appropriate categories of juvenile and other 
        offenders during periods of incarceration and juvenile and 
        criminal justice supervision, that is consistent with 
        guidelines issued by the Attorney General.
            ``(2) Use of funds.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subtitle, amounts made available to a 
                State under section 20103 or 20104, may be applied to 
                the costs of programs described in paragraph (1), 
                consistent with guidelines issued by the Attorney 
                General.
                    ``(B) Additional use.--In addition to being used as 
                specified in subparagraph (A), the funds referred to in 
                that subparagraph may be used by a State to pay the 
                costs of providing to the Attorney General a baseline 
                study on the mental health problems of juvenile 
                offenders and prisoners in the State, which study shall 
                be consistent with guidelines issued by the Attorney 
                General.''.

SEC. 10107. INAPPLICABILITY OF AMENDMENTS.

    Section 3626 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(h) Inapplicability of Amendments.--A civil action brought 
pursuant to section 1983 of title 42, United States Code, that seeks to 
remedy conditions of confinement for individuals who are under the age 
of 18 shall be governed by the terms of this section, as in effect on 
the day before the date of enactment of the Prison Litigation Reform 
Act of 1995 and the amendments made by that Act (18 U.S.C. 3601 
note).''.

            Subtitle C--Juvenile Justice and Accountability

SEC. 10201. INCREASE IN FUNDING FOR TITLE III OF THE JJDPA.

    There are authorized to be appropriated to carry out the Runaway 
and Homeless Youth Act (42 U.S.C. 5701 et seq.)--
            (1) $120,000,000 for fiscal year 2004, of which 
        $100,000,000 shall be for the Basic Centers and Transitional 
        Living Program and $20,000,000 shall be for the Sexual Abuse 
        Prevention Program; and
            (2) such sums as necessary for fiscal year 2005.

SEC. 10202. FUNDING FOR THE SERVICES FOR YOUTHFUL OFFENDERS.

    There is authorized to be appropriated to carry out section 520D of 
title V of the Public Health Service Act (42 U.S.C. 290bb-35)--
            (1) $40,000,000 for fiscal year 2004; and
            (2) such sums as necessary for fiscal year 2005.

                    TITLE XI--SAFE START--GUN SAFETY

               Subtitle A--Closing the Gun Show Loophole

SEC. 11001. EXTENSION OF BRADY BACKGROUND CHECKS TO GUN SHOWS.

    (a) Findings.--Congress finds that--
            (1) more than 4,400 traditional gun shows are held annually 
        across the United States, with each show attracting thousands 
        of attendees and hundreds of Federal firearms licensees and 
        nonlicensed firearms sellers;
            (2) traditional gun shows, flea markets, and other 
        organized events, at which a large number of firearms are 
        offered for sale by Federal firearms licensees and nonlicensed 
        firearms sellers, comprise a significant part of the national 
        firearms market;
            (3) firearms and ammunition exhibited or offered for sale 
        or exchange at gun shows, flea markets, and other organized 
        events move easily in, and substantially affect, interstate 
        commerce;
            (4) before a firearm is exhibited or offered for sale or 
        exchange at a gun show, flea market, or other organized event, 
        the gun, its component parts, ammunition, and the raw materials 
        from which the gun is manufactured have moved in interstate 
        commerce;
            (5) gun shows, flea markets, and other organized events at 
        which firearms are exhibited or offered for sale or exchange, 
        provide a convenient and centralized commercial location at 
        which firearms may be bought and sold anonymously, often 
        without background checks or records that enable gun tracing;
            (6) criminals and other ineligible persons obtain guns 
        without background checks at gun shows, flea markets, and other 
        organized events at which guns are exhibited or offered for 
        sale or exchange, and frequently use these untraceable guns to 
        commit crimes;
            (7) many persons who buy and sell firearms at gun shows, 
        flea markets, and other organized events cross State lines to 
        attend these events and to engage in the interstate 
        transportation of firearms obtained at these events;
            (8) gun violence is a pervasive, national problem that is 
        exacerbated by the availability of guns at gun shows, flea 
        markets, and other organized events;
            (9) firearms associated with gun shows have been--
                    (A) transferred illegally to residents of other 
                States by Federal firearms licensees and nonlicensed 
                firearms sellers; and
                    (B) involved in subsequent crimes, including drug 
                offenses, crimes of violence, property crimes, and 
                illegal possession of firearms, by felons and other 
                prohibited persons; and
            (10) Congress has the power, under the interstate commerce 
        clause and other provisions of the Constitution of the United 
        States, to ensure that criminals and other prohibited persons 
        do not obtain firearms at gun shows, flea markets, and other 
        organized events.
    (b) Definitions.--Section 921(a) of title 18, United States Code, 
is amended by adding at the end the following:
    ``(36) Gun show.--The term `gun show' means any event at which 50 
or more firearms are offered or exhibited for sale, transfer, or 
exchange, if 1 or more of the firearms has been shipped or transported 
in, or otherwise affects, interstate or foreign commerce.
    ``(37) Gun show promoter.--The term `gun show promoter' means any 
person who organizes, plans, promotes, or operates a gun show.
    ``(38) Gun show vendor.--The term `gun show vendor' means any 
person who exhibits, sells, offers for sale, transfers, or exchanges 1 
or more firearms at a gun show, whether or not the person arranges with 
the gun show promoter for a fixed location from which to exhibit, sell, 
offer for sale, transfer, or exchange those firearms.''.
    (c) Regulation of Firearms Transfers at Gun Shows.--
            (1) In general.--Chapter 44 of title 18, United States 
        Code, is amended by adding at the end the following:
``Sec. 932. Regulation of firearms transfers at gun shows
    ``(a) Responsibilities of Gun Show Promoters.--It shall be unlawful 
for any person to organize, plan, promote, or operate a gun show unless 
that person--
            ``(1) registers with the Attorney General in accordance 
        with regulations promulgated by the Attorney General, including 
        the payment of a registration fee, in an amount determined by 
        the Attorney General;
            ``(2) before commencement of the gun show--
                    ``(A) verifies the identity of each gun show vendor 
                participating in the gun show by examining a valid 
                identification document (as defined in section 
                1028(d)(2)) of the vendor containing a photograph of 
                the vendor;
                    ``(B) requires each gun show vendor to sign--
                            ``(i) a ledger with identifying information 
                        concerning the vendor; and
                            ``(ii) a notice advising the vendor of the 
                        obligations of the vendor under this chapter;
            ``(3) notifies each person who attends the gun show of the 
        requirements of this chapter, in accordance with regulations 
        promulgated by the Attorney General; and
            ``(4) maintains a copy of the records described in 
        paragraph (3) at the permanent place of business of the gun 
        show promoter for such period of time and in such form as the 
        Attorney General shall require by regulation.
    ``(b) Responsibilities of Transferors Other Than Licensees.--
            ``(1) In general.--If any part of a firearm transaction 
        takes place at a gun show, it shall be unlawful for any person 
        who is not licensed under this chapter to transfer a firearm to 
        another person who is not licensed under this chapter, unless 
        the firearm is transferred through a licensed importer, 
        licensed manufacturer, or licensed dealer in accordance with 
        subsection (d).
            ``(2) Criminal background checks.--A person who is subject 
        to the requirement of paragraph (1)--
                    ``(A) shall not transfer the firearm to the 
                transferee until the licensed importer, licensed 
                manufacturer, or licensed dealer through which the 
                transfer is made under subsection (d) makes the 
                notification described in subsection (d)(3)(A); and
                    ``(B) notwithstanding subparagraph (A), shall not 
                transfer the firearm to the transferee if the licensed 
                importer, licensed manufacturer, or licensed dealer 
                through which the transfer is made under subsection (d) 
                makes the notification described in subsection 
                (d)(3)(B).
            ``(3) Absence of recordkeeping requirements.--Nothing in 
        this section shall permit or authorize the Attorney General to 
        impose recordkeeping requirements on any nonlicensed vendor.
    ``(c) Responsibilities of Transferees Other Than Licensees.--
            ``(1) In general.--If any part of a firearm transaction 
        takes place at a gun show, it shall be unlawful for any person 
        who is not licensed under this chapter to receive a firearm 
        from another person who is not licensed under this chapter, 
        unless the firearm is transferred through a licensed importer, 
        licensed manufacturer, or licensed dealer in accordance with 
        subsection (d).
            ``(2) Criminal background checks.--A person who is subject 
        to the requirement of paragraph (1)--
                    ``(A) shall not receive the firearm from the 
                transferor until the licensed importer, licensed 
                manufacturer, or licensed dealer through which the 
                transfer is made under subsection (d) makes the 
                notification described in subsection (d)(3)(A); and
                    ``(B) notwithstanding subparagraph (A), shall not 
                receive the firearm from the transferor if the licensed 
                importer, licensed manufacturer, or licensed dealer 
                through which the transfer is made under subsection (d) 
                makes the notification described in subsection 
                (d)(3)(B).
    ``(d) Responsibilities of Licensees.--A licensed importer, licensed 
manufacturer, or licensed dealer who agrees to assist a person who is 
not licensed under this chapter in carrying out the responsibilities of 
that person under subsection (b) or (c) with respect to the transfer of 
a firearm shall--
            ``(1) enter such information about the firearm as the 
        Attorney General may require by regulation into a separate 
        bound record;
            ``(2) record the transfer on a form specified by the 
        Attorney General;
            ``(3) comply with section 922(t) as if transferring the 
        firearm from the inventory of the licensed importer, licensed 
        manufacturer, or licensed dealer to the designated transferee 
        (although a licensed importer, licensed manufacturer, or 
        licensed dealer complying with this subsection shall not be 
        required to comply again with the requirements of section 
        922(t) in delivering the firearm to the nonlicensed 
        transferor), and notify the nonlicensed transferor and the 
        nonlicensed transferee--
                    ``(A) of such compliance; and
                    ``(B) if the transfer is subject to the 
                requirements of section 922(t)(1), of any receipt by 
                the licensed importer, licensed manufacturer, or 
                licensed dealer of a notification from the national 
                instant criminal background check system that the 
                transfer would violate section 922 or State law;
            ``(4) not later than 10 days after the date on which the 
        transfer occurs, submit to the Attorney General a report of the 
        transfer, which report--
                    ``(A) shall be on a form specified by the Attorney 
                General by regulation; and
                    ``(B) shall not include the name of, or other 
                identifying information relating to, any person 
                involved in the transfer who is not licensed under this 
                chapter;
            ``(5) if the licensed importer, licensed manufacturer, or 
        licensed dealer, during any 5 consecutive business days, 
        assists a person other than a licensee in transferring any 
        combination of pistols and revolvers totaling 2 or more to the 
        same nonlicensed person, prepare a report of the multiple 
        transfers on a form specified by the Attorney General;
            ``(6) not later than the close of business on the date on 
        which the transfer occurs, submit the report prepared pursuant 
        to paragraph (5) to--
                    ``(A) the office specified on the form described in 
                paragraph (5); and
                    ``(B) the appropriate State law enforcement agency 
                of the jurisdiction in which the transfer occurs; and
            ``(7) retain a record of the transfer as part of the 
        permanent business records of the licensed importer, licensed 
        manufacturer, or licensed dealer.
    ``(e) Records of Licensee Transfers.--If any part of a firearm 
transaction takes place at a gun show, each licensed importer, licensed 
manufacturer, and licensed dealer who transfers 1 or more firearms to a 
person who is not licensed under this chapter shall, not later than 10 
days after the date on which the transfer occurs, submit to the 
Attorney General a report of the transfer, which report--
            ``(1) shall be in a form specified by the Attorney General 
        by regulation;
            ``(2) shall not include the name of or other identifying 
        information relating to the transferee; and
            ``(3) shall not duplicate information provided in any 
        report required under subsection (d)(4).
    ``(f) Defined Term.--In this section, the term `firearm 
transaction'--
            ``(1) includes the offer for sale, sale, transfer, or 
        exchange of a firearm; and
            ``(2) does not include the mere exhibition of a firearm.''.
            (2) Penalties.--Section 924(a) of title 18, United States 
        Code, is amended by adding at the end the following:
    ``(8)(A) Whoever knowingly violates subsection (a)(1), (d), or (e) 
of section 932 shall be fined under this title, imprisoned not more 
than 5 years, or both.
    ``(B) Whoever knowingly violates subsection (a) (except for 
paragraph (1)), (c), or (d) of section 932, shall be--
            ``(i) fined under this title, imprisoned not more than 2 
        years, or both; and
            ``(ii) in the case of a second or subsequent conviction, 
        fined under this title, imprisoned not more than 5 years, or 
        both.
    ``(C) In addition to any other penalties imposed under this 
paragraph, the Attorney General may, with respect to any person who 
knowingly violates any provision of section 932--
            ``(i) if the person is registered pursuant to section 
        932(a)(1), after notice and opportunity for a hearing, suspend 
        for not more than 6 months or revoke the registration of that 
        person under section 932(a)(1); and
            ``(ii) impose a civil fine in an amount equal to not more 
        than $10,000.''.
            (3) Technical and conforming amendments.--Chapter 44 of 
        title 18, United States Code, is amended--
                    (A) in the chapter analysis, by adding at the end 
                the following:

``932. Regulation of firearms transfers at gun shows.'';
                and
                    (B) in the first sentence of section 923(j), by 
                striking ``a gun show or event'' and inserting ``an 
                event''.
    (d) Inspection Authority.--Section 923(g)(1) is amended by adding 
at the end the following:
    ``(E)(i) Notwithstanding subparagraph (B), the Attorney General may 
enter, during business hours, the place of business of any gun show 
promoter and any place where a gun show is held for the purposes of 
examining the records required by sections 923 and 932 and the 
inventory of licensees conducting business at the gun show.
    ``(ii) An entry and examination under clause (i) shall be conducted 
to determine compliance with this chapter by gun show promoters and 
licensees conducting business at the gun show and shall not require a 
showing of reasonable cause or a warrant.''.
    (e) Increased Penalties for Serious Recordkeeping Violations by 
Licensees.--Section 924(a) of title 18, United States Code, is amended 
by striking paragraph (3) and inserting the following:
    ``(3)(A) Except as provided in subparagraph (B), any licensed 
dealer, licensed importer, licensed manufacturer, or licensed collector 
who knowingly makes any false statement or representation with respect 
to the information required by this chapter to be kept in the records 
of a person licensed under this chapter, or violates section 922(m), 
shall be fined under this title, imprisoned not more than 5 years, or 
both.
    ``(B) If the violation described in subparagraph (A) is in relation 
to an offense--
            ``(i) under paragraph (1) or (3) of section 922(b), such 
        person shall be fined under this title, imprisoned not more 
        than 5 years, or both; and
            ``(ii) under subsection (a)(6) or (d) of section 922, such 
        person shall be fined under this title, imprisoned not more 
        than 10 years, or both.''.
    (f) Increased Penalties for Violations of Criminal Background Check 
Requirements.--
            (1) Penalties.--Section 924(a) of title 18, United States 
        Code, as amended by subsection (e)), is further amended--
                    (A) in paragraph (5), by striking ``subsection (s) 
                or (t) of section 922'' and inserting ``section 
                922(s)''; and
                    (B) by adding at the end the following:
    ``(9) Whoever knowingly violates section 922(t) shall be fined 
under this title, imprisoned not more than 5 years, or both.''.
            (2) Elimination of certain elements of offense.--Section 
        922(t)(5) of title 18, United States Code, is amended by 
        striking ``and, at the time'' and all that follows through 
        ``State law''.
    (g) Gun Owner Privacy and Prevention of Fraud and Abuse of System 
Information.--Section 922(t)(2)(C) of title 18, United States Code, is 
amended by inserting before the period at the end ``, as soon as 
possible, in accordance with section 103(h) of the Brady Handgun 
Violence Prevention Act (18 U.S.C. 922 note), and not later than 90 
days after the date on which the licensee first contacts the system 
with respect to the transfer''.
    (h) Effective Date.--This section and the amendments made by this 
section shall take effect 180 days after the date of enactment of this 
Act.

                     Subtitle B--Child Safety Locks

SEC. 11101. REQUIREMENT OF CHILD HANDGUN SAFETY LOCKS.

    (a) Definitions.--Section 921(a) of title 18, United States Code, 
as amended by section 11001(b), is further amended by adding at the end 
the following:
            ``(39) Locking device.--The term `locking device' means a 
        device or locking mechanism that is approved by a licensed 
        firearms manufacturer for use on the handgun with which the 
        device or locking mechanism is sold, delivered, or transferred 
        and that--
                    ``(A) if installed on a firearm and secured by 
                means of a key or a mechanically, electronically, or 
                electromechanically-operated combination lock, is 
                designed to prevent the firearm from being discharged 
                without first deactivating or removing the device by 
                means of a key or mechanically, electronically, or 
                electromechanically-operated combination lock;
                    ``(B) if incorporated into the design of a firearm, 
                is designed to prevent discharge of the firearm by any 
                person who does not have access to the key or other 
                device designed to unlock the mechanism and thereby 
                allow discharge of the firearm; or
                    ``(C) is a safe, gun safe, gun case, lock box, or 
                other device that is designed to--
                            ``(i) store a firearm; and
                            ``(ii) be unlocked only by means of a key, 
                        a combination, or other similar means.''.
    (b) Unlawful Acts.--
            (1) In general.--Section 922 of title 18, United States 
        Code, is amended by inserting at the end the following:
    ``(z) Locking Devices.--
            ``(1) In general.--Except as provided in paragraph (2), it 
        shall be unlawful for any licensed manufacturer, licensed 
        importer, or licensed dealer to sell, deliver, or transfer any 
        handgun to any person other than a licensed manufacturer, 
        licensed importer, or licensed dealer, unless the transferee is 
        provided with a locking device for that handgun.
            ``(2) Exceptions.--Paragraph (1) does not apply to--
                    ``(A) the manufacture for, transfer to, or 
                possession of a firearm by--
                            ``(i) the United States;
                            ``(ii) a department or agency of the United 
                        States;
                            ``(iii) a State; or
                            ``(iv) a department, agency, or political 
                        subdivision of a State;
                    ``(B) the transfer to, or possession of a firearm 
                for law enforcement purposes by, a law enforcement 
                officer employed by an entity referred to in 
                subparagraph (A); and
                    ``(C) the transfer to, or possession of a firearm 
                for law enforcement purposes by, a rail police officer, 
                employed by a rail carrier and certified or 
                commissioned as a police officer under the laws of a 
                State.''.
            (2) Effective date.--Section 922(z) of title 18, United 
        States Code, as added by this subsection, shall take effect 180 
        days after the date of enactment of this Act.
    (c) Civil Penalties.--Section 924 of title 18, United States Code, 
is amended--
            (1) in subsection (a)(1), by striking ``or (f)'' and 
        inserting ``(f), or (q)''; and
            (2) by adding at the end the following:
    ``(q) Penalties Relating to Locking Devices.--
            ``(1) In general.--
                    ``(A) Suspension or revocation of license; civil 
                penalties.--With respect to each violation of section 
                922(z)(1) by a licensee, the Attorney General may, 
                after notice and opportunity for hearing--
                            ``(i) suspend or revoke any license issued 
                        to the licensee under this chapter; or
                            ``(ii) subject the licensee to a civil 
                        penalty in an amount equal to not more than 
                        $10,000.
                    ``(B) Review.--An action of the Attorney General 
                under this paragraph may be reviewed only as provided 
                under section 923(f).
            ``(2) Administrative remedies.--The suspension or 
        revocation of a license or the imposition of a civil penalty 
        under paragraph (1) does not preclude any administrative remedy 
        that is otherwise available to the Attorney General.''.
    (d) Consumer Product Safety Act.--The Consumer Product Safety Act 
(15 U.S.C. 2051 et seq.) is amended by adding at the end the following:

``SEC. 39. CHILD HANDGUN SAFETY LOCKS.

    ``(a) Definitions.--In this section:
            ``(1) Child.--The term `child' means an individual who is 
        less than 13 years of age.
            ``(2) Locking device.--The term `locking device' has the 
        meaning given that term in section 921(a)(39)(A) of title 18, 
        United States Code.
    ``(b) Establishment of Standard.--
            ``(1) Rulemaking.--
                    ``(A) Initiation of rulemaking.--Notwithstanding 
                section 3(a)(1), the Commission shall initiate, not 
                later than 90 days after the date of enactment of this 
                section, a rulemaking proceeding under section 553 of 
                title 5, United States Code, to establish a consumer 
                product safety standard for locking devices. For good 
                cause, the Commission may extend this 90-day period for 
                an additional 90 days.
                    ``(B) Final standard.--The Commission shall 
                promulgate, not later than 12 months after the date on 
                which the Commission initiated the rulemaking, a final 
                consumer product safety standard. For good cause, the 
                Commission may extend this 12-month period.
                    ``(C) Effective date.--The consumer product safety 
                standard promulgated under this paragraph shall take 
                effect 6 months after the date on which the final 
                standard is promulgated pursuant to subparagraph (B).
                    ``(D) Standard requirements.--The standard 
                promulgated pursuant to subparagraph (B) shall require 
                locking devices that--
                            ``(i) are sufficiently difficult for 
                        children to deactivate or remove; and
                            ``(ii) prevent the discharge of the handgun 
                        unless the locking device has been deactivated 
                        or removed.
            ``(2) Nonapplicable provisions.--
                    ``(A) Provisions of this act.--Sections 7, 9, and 
                30(d) shall not apply to the rulemaking proceeding 
                under paragraph (1) and section 11 shall not apply to 
                any consumer product safety standard promulgated under 
                paragraph (1).
                    ``(B) Title 5.--Except for section 553, chapter 5 
                of title 5, United States Code, shall not apply to this 
                section and chapter 6 of such title 5 shall not apply 
                to this section.
                    ``(C) National environmental policy act of 1969.--
                The National Environmental Policy Act of 1969 (42 
                U.S.C. 4321) shall not apply to this section.
    ``(b) No Effect on State Law.--
            ``(1) In general.--Notwithstanding section 26, this section 
        shall not annul, alter, impair, affect, or exempt any person 
        subject to the provisions of this section from complying with 
        any provision of the law of any State or any political 
        subdivision thereof, except to the extent that such provisions 
        of State law are inconsistent with any provision of this 
        section.
            ``(2) Construction.--A provision of State law is not 
        inconsistent with this section if such provision provides 
        children with greater protection from handguns than is provided 
        by this section.
    ``(c) Enforcement.--Notwithstanding subsection (b)(2)(A), the 
consumer product safety standard promulgated by the Commission pursuant 
to subsection (b) shall be enforced under this Act as if it were a 
consumer product safety standard described in section 7(a).''.
    (e) Conforming Amendment for Consumer Product Safety Act.--Section 
1 of the Consumer Product Safety Act is amended by adding at the end of 
the table of contents the following:

                 ``Sec. 39. Child handgun safety locks.

    (f) Authorization of Appropriations for Consumer Product Safety 
Commission.--There are authorized to be appropriated to the Consumer 
Product Safety Commission $2,000,000 to carry out the provisions of 
section 39 of the Consumer Product Safety Act, as added by subsection 
(d), which shall remain available until expended.
    (g) Liability; Evidence.--
            (1) Liability.--Nothing in this section, or the amendments 
        made by this section, shall be construed to--
                    (A) create a cause of action against any dealer of 
                firearms or any other person for any civil liability; 
                or
                    (B) establish any standard of care.
            (2) Evidence.--Notwithstanding any other provision of law, 
        evidence regarding compliance or noncompliance with the 
        amendments made by this section shall not be admissible as 
        evidence in any proceeding of any court, agency, board, or 
        other entity, except with respect to an action to enforce this 
        section.
            (3) Rule of construction.--Nothing in this subsection shall 
        be construed to bar a governmental action to impose a penalty 
        under section 924(q) of title 18, United States Code, as added 
        by subsection (d), for a failure to comply with section 922(z) 
        of that title.

                 Subtitle C--Unlawful Weapons Transfers

SEC. 11201. UNLAWFUL WEAPONS TRANSFERS TO JUVENILES.

    (a) In General.--Section 922(x) of title 18, United States Code, is 
amended to read as follows:
    ``(x) Juveniles.--
            ``(1) Transfers to juveniles.--It shall be unlawful for a 
        person to sell, deliver, or otherwise transfer to a person who 
        the transferor knows, or has reasonable cause to believe, is a 
        juvenile--
                    ``(A) a handgun;
                    ``(B) ammunition that is suitable for use only in a 
                handgun (in this section referred to as 
                ``ammunition'');
                    ``(C) a semiautomatic assault weapon; or
                    ``(D) a large capacity ammunition feeding device.
            ``(2) Possession by juveniles.--It shall be unlawful for 
        any person who is a juvenile to knowingly possess--
                    ``(A) a handgun;
                    ``(B) ammunition;
                    ``(C) a semiautomatic assault weapon; or
                    ``(D) a large capacity ammunition feeding device.
            ``(3) Exceptions.--This subsection shall not apply to--
                    ``(A) a temporary transfer to a juvenile of a 
                handgun, ammunition, large capacity ammunition feeding 
                device, or a semiautomatic assault weapon or the 
                possession or use by a juvenile of a handgun, 
                ammunition, large capacity ammunition feeding device, 
                or a semiautomatic assault weapon--
                            ``(i) if the handgun, ammunition, large 
                        capacity ammunition feeding device, or 
                        semiautomatic assault weapon is possessed and 
                        used by the juvenile--
                                    ``(I) in the course of employment;
                                    ``(II) in the course of ranching or 
                                farming related to activities at the 
                                residence of the juvenile (or on 
                                property used for ranching or farming 
                                at which the juvenile, with the 
                                permission of the property owner or 
                                lessee, is performing activities 
                                related to the operation of the farm or 
                                ranch);
                                    ``(III) for target practice;
                                    ``(IV) for hunting; or
                                    ``(V) for a course of instruction 
                                in the safe and lawful use of a 
                                firearm;
                            ``(ii) if the juvenile's possession and use 
                        of a handgun, ammunition, large capacity 
                        ammunition feeding device, or a semiautomatic 
                        assault weapon under this subparagraph are in 
                        accordance with State and local law;
                            ``(iii) if a parent or guardian of the 
                        juvenile is not in the immediate and 
                        supervisory presence of the juvenile, the 
                        juvenile, at all times when a handgun, 
                        ammunition, large capacity ammunition feeding 
                        device, or semiautomatic assault weapon has 
                        possession of the prior written consent of the 
                        juvenile's parent or guardian who is not 
                        prohibited by Federal, State, or local law from 
                        possessing a firearm or ammunition;
                            ``(iv) if, during transportation by the 
                        juvenile to and from the place at which an 
                        activity described in clause (i) is to take 
                        place, the firearm is kept unloaded and stored 
                        in a locked container or case; and
                            ``(v) if, with respect to the employment, 
                        ranching or farming activities described in 
                        clause (i)--
                                    ``(I) the juvenile possesses and 
                                uses a handgun, ammunition, a large 
                                capacity ammunition feeding device, or 
                                a semiautomatic assault rifle with the 
                                prior written approval of the 
                                juvenile's parent or legal guardian; 
                                and
                                    ``(II)(aa) such approval is on file 
                                with the parent or legal guardian;
                                    ``(bb) the parent or legal guardian 
                                is not prohibited by Federal, State, or 
                                local law from possessing a firearm or 
                                ammunition; and
                                    ``(cc) the parent or legal guardian 
                                is directing the ranching or farming 
                                activities of the juvenile;
                    ``(B) a juvenile, as a member of the Armed Forces 
                of the United States or the National Guard, who 
                possesses or is armed with a handgun, ammunition, large 
                capacity ammunition feeding device, or semiautomatic 
                assault weapon in the line of duty;
                    ``(C) a transfer to a juvenile by inheritance of 
                title (but not possession) of a handgun, ammunition, 
                large capacity ammunition feeding device, or a 
                semiautomatic assault weapon; or
                    ``(D) the possession by a juvenile of a handgun, 
                ammunition, large capacity ammunition feeding device, 
                or a semiautomatic assault weapon taken in the lawful 
                defense of the juvenile or other persons in the 
                residence of the juvenile or a residence in which the 
                juvenile is an invited guest.
            ``(4) Property right retained.--The transfer to a juvenile 
        of a handgun, ammunition, a large capacity ammunition feeding 
        device, or a semiautomatic assault weapon that does not violate 
        this subsection shall not result in the permanent confiscation 
        of the firearm by the Government if its possession by the 
        juvenile subsequently becomes unlawful because of the conduct 
        of the juvenile, but shall be returned to the lawful owner when 
        such handgun, ammunition, large capacity ammunition feeding 
        device, or semiautomatic assault weapon is no longer required 
        by the Government for the purposes of investigation or 
        prosecution.
            ``(5) Criminal procedure.--
                    ``(A) Mandatory attendance of parent or legal 
                guardian at proceedings.--In a prosecution of a 
                violation of this subsection, the court shall require 
                the presence of a parent or legal guardian of the 
                juvenile defendant at all proceedings.
                    ``(B) Contempt power.--The court may use the 
                contempt power to enforce compliance with subparagraph 
                (A).
                    ``(C) Waiver.--The court may waive the attendance 
                requirement under subparagraph (A) for good cause 
                shown.
            ``(6) Definitions.--As used in this subsection, the 
        following definitions shall apply:
                    ``(A) Juvenile.--The term `juvenile' means an 
                individual who is less than 21 years of age.
                    ``(B) Large capacity ammunition feeding device.--
                The term `large capacity ammunition feeding device' has 
                the same meaning as in section 921(a)(31).''.
    (b) Effective Date.--This section and the amendment made by this 
section shall take effect 180 days after the date of enactment of this 
Act.

         Subtitle D--Large Capacity Ammunition Feeding Devices

SEC. 11301. BAN ON IMPORTING LARGE CAPACITY AMMUNITION FEEDING DEVICES.

    (a) In General.--Section 922(w) of title 18, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``(1) Except as provided 
        in paragraph (2)'' and inserting ``(1)(A) Except as provided in 
        subparagraph (B)'';
            (2) in paragraph (2), by striking ``(2) Paragraph (1)'' and 
        inserting ``(B) Subparagraph (A)'';
            (3) by inserting before paragraph (3) the following:
    ``(2) It shall be unlawful for any person to import a large 
capacity ammunition feeding device.''; and
            (4) in paragraph (4)--
                    (A) by striking ``(1)'' each place it appears and 
                inserting ``(1)(A)''; and
                    (B) by striking ``(2)'' and inserting ``(1)(B)''.
    (b) Conforming Amendment.--Section 921(a)(31) of title 18, United 
States Code, is amended by striking ``manufactured after the date of 
enactment of the Violent Crime Control and Law Enforcement Act of 
1994''.

                  Subtitle E--Enforcement of Gun Laws

SEC. 11401. ENHANCE ENFORCEMENT OF GUN VIOLENCE LAWS.

    (a) Criminal Gun Trafficker Apprehension.--
            (1) Definition of licensed dealer.--Section 921(a)(22) of 
        title 18, United States Code, is amended--
                    (A) by redesignating clauses (i) through (iii) as 
                subclauses (I) through (III);
                    (B) by redesignating subparagraphs (A) through (C) 
                as clauses (i) through (iii);
                    (C) by inserting ``(A)'' after ``(22)'';
                    (D) by striking ``: Provided,'' and inserting a 
                period;
                    (E) by striking ``That proof'' and inserting the 
                following:
    ``(B) For purposes of this paragraph, proof''; and
                    (F) by striking ``For purposes of this paragraph, 
                the term'' and inserting the following:
    ``(C) For purposes of this paragraph, the intent underlying the 
sale or disposition of a firearm is presumed to be predominantly one of 
obtaining livelihood and pecuniary gain if a person transfers more than 
50 firearms during any 12-month period, or more than 30 firearms during 
any 30-day period, excluding any infrequent transfer of a firearm by 
gift, bequest, intestate succession, or other means by an individual to 
a parent, child, grandparent, or grandchild of the individual.
    ``(D) For purposes of this paragraph, the term''.
            (2) Requirement that licensee operate from fixed 
        premises.--Section 923(d)(1)(E) of title 18, United States 
        Code, is amended to read as follows:
            ``(E) the applicant has, in a State--
                    ``(i) fixed premises (other than a private 
                residence) that are primarily devoted to the sale of 
                firearms, and conspicuously designated to the public as 
                such, from which the applicant conducts business 
                subject to a license issued pursuant to this chapter or 
                from which the applicant intends to conduct such 
                business within a reasonable period of time; or
                    ``(ii) in the case of a collector, premises from 
                which the collector conducts collecting activities 
                subject to a licensed issued pursuant to this chapter, 
                or from which the collector intends to conduct such 
                collecting within a reasonable period of time.''.
            (3) Secure storage of firearms inventories.--
                    (A) Storage requirements.--Section 923 of title 18, 
                United States Code, is amended by adding at the end the 
                following:
    ``(m) Secure Storage of Firearms Inventories.--
            ``(1) In general.--Beginning on the date on which the 
        Attorney General issues final regulations under paragraph (2), 
        it shall be unlawful for any licensed importer, licensed 
        manufacturer, or licensed dealer (other than a dealer described 
        in section 921(a)(11)(B)) to store any firearm on premises 
        described in subsection (d)(1)(E)(i), other than in accordance 
        with those regulations.
            ``(2) Regulations.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the Attorney 
                General shall issue final regulations governing the 
                secure storage of firearms on premises described in 
                subsection (d)(1)(E)(i) by licensed importers, licensed 
                manufacturers, and licensed dealers.
                    ``(B) Factors for consideration.--In promulgating 
                regulations issued under this paragraph, the Attorney 
                General shall consider--
                            ``(i) the type and quantity of the firearm 
                        or firearms to be stored; and
                            ``(ii) the standards of safety and security 
                        recognized in the firearms industry.''.
                    (B) Penalties.--Section 924 of title 18, United 
                States Code, as amended by section 11101, is further 
                amended--
                            (i) in subsection (a)(1), by striking 
                        ``(f), or (q)'' and inserting ``(f), (q), or 
                        (r)''; and
                            (ii) by adding at the end the following:
    ``(r) Failure To Securely Store Firearms Inventory.--
            ``(1) In general.--The Attorney General may, after notice 
        and opportunity for hearing--
                    ``(A) suspend or revoke any license issued under 
                this chapter;
                    ``(B) may subject the licensee to a civil penalty 
                of not more than $10,000; or
                    ``(C) if the holder of such license has knowingly 
                violated section 923(m), impose the penalties under 
                subparagraphs (A) and (B).
            ``(2) Review.--An action of the Attorney General under this 
        subsection may be reviewed only as provided in section 
        923(f).''.
                    (C) Condition of licensing.--
                            (i) In general.--Section 923(d)(1)(F) of 
                        title 18, United States Code, is amended--
                                    (I) in clause (ii)(II), by striking 
                                ``and'' at the end; and
                                    (II) by adding at the end the 
                                following:
            ``(iv) not later than 30 days after the date on which the 
        application is approved, the firearms inventory of the business 
        will be stored in accordance with the regulations issued 
        pursuant to section 923(m)(2); and''.
                            (ii) Effective date.--The amendments made 
                        by this subparagraph shall apply to any 
                        application submitted under section 923 of 
                        title 18, United States Code, on or after the 
                        date on which final regulations are issued by 
                        the Attorney General under subsection (m)(2) of 
                        such section, as added by this paragraph.
            (4) Requiring thefts from common carriers to be reported.--
                    (A) In general.--Section 922(f) of title 18, United 
                States Code, is amended by adding at the end the 
                following:
    ``(3)(A) It shall be unlawful for any common or contract carrier to 
fail to report the theft or loss of a firearm, within 48 hours after 
the theft or loss is discovered, to--
            ``(i) the Attorney General; and
            ``(ii) the appropriate local authorities.
    ``(B) The Attorney General may impose a civil fine of not more than 
$10,000 on any person who knowingly violates subparagraph (A).''.
                    (B) Penalties.--Section 924(a)(1)(B) of title 18, 
                United States Code, is amended by striking ``(f),'' and 
                inserting ``(f)(1), (f)(2),''.
    (b) Criminal Gun Dealer Detection.--
            (1) Recordkeeping inspections.--Section 923(g)(1)(B)(ii)(I) 
        of title 18, United States Code, is amended by striking 
        ``once'' and inserting ``4 times''.
            (2) Disposal of personal firearms collection by certain 
        licensees made subject to regulations..--Section 923(c) of 
        title 18, United States Code, is amended--
                    (A) by inserting ``(1) before the first sentence;
                    (B) by striking the second sentence and inserting 
                the following:
    ``(2) For purposes of this chapter, a personal collection of 
firearms of a licensed manufacturer, licensed importer, or licensed 
dealer shall be considered to be part of the business inventory of the 
licensee, except that the provisions of this chapter applicable to the 
disposition of a firearm from the business inventory of a licensee 
shall not apply to the infrequent transfer of a firearm by gift, 
bequest, intestate succession, or other means from the personal 
collection of firearms of a licensee to a parent, child, grandparent, 
or grandchild of the licensee.''; and
                    (C) in the third sentence, by striking ``If any 
                firearm'' and inserting the following:
    ``(3) If any firearm''.
            (3) Suspension or revocation of firearms dealer license and 
        civil penalties.--
                    (A) In general.--Section 923(e) of title 18, United 
                States Code, is amended to read as follows:
    ``(e) Suspension or Revocation of Dealer License; Civil 
Penalties.--
            ``(1) Willful violations.--If the holder of a license 
        issued under this section has willfully violated any provision 
        of this chapter or any rule or regulation prescribed by the 
        Attorney General pursuant to this chapter, the Attorney General 
        may, after notice and opportunity for hearing--
                    ``(A) suspend or revoke such license;
                    ``(B) assess that licensee with a civil penalty 
                equal to not more than $10,000 per violation; or
                    ``(C) take the actions described in subparagraphs 
                (A) and (B).
            ``(2) Transfer of armor piercing ammunition.--If a dealer 
        willfully transfers armor piercing ammunition, the Attorney 
        General may, after notice and opportunity for hearing--
                    ``(A) suspend or revoke the license of that dealer;
                    ``(B) assess that dealer with a civil penalty equal 
                to not more than $10,000; or
                    ``(C) take the actions described in subparagraphs 
                (A) and (B).
            ``(3) Compromise, mitigation, or remittance of liability.--
        The Attorney General may at any time compromise, mitigate, or 
        remit the liability with respect to any willful violation of 
        this chapter or any rule or regulation prescribed by the 
        Attorney General under this chapter.
            ``(4) Review.--An action of the Attorney General under this 
        subsection may be reviewed only as provided in subsection 
        (f).''.
                    (B) Notice of license revocation or denial.--
                Section 923(f) of title 18, United States Code, is 
                amended to read as follows:
    ``(f) Rights of Applicants and Licensees.--
            ``(1) Notice requirements.--
                    ``(A) In general.--If the Attorney General denies 
                an application for, revokes, or suspends, a license, or 
                assesses a civil penalty under this section, the 
                Attorney General shall provide the affected party with 
                written notice of such denial, revocation, suspension, 
                or assessment.
                    ``(B) Notice to be given before effective date of 
                revocation or suspension.--Any notice of a revocation 
                or suspension of a license under this paragraph shall 
                be given to the holder of such license before the 
                effective date of the revocation or suspension, as 
                applicable.
            ``(2) Appeals process.--
                    ``(A) Hearing.--If the Attorney General denies an 
                application for, revokes, or suspends a license, or 
                assesses a civil penalty under this section, the 
                Attorney General shall--
                            ``(i) upon request of the aggrieved party, 
                        promptly hold a hearing, at a location 
                        convenient to the aggrieved party, to review 
                        the denial, revocation, suspension, or 
                        assessment; and
                            ``(ii) in the case of a suspension or 
                        revocation of a license, upon the request of 
                        the holder of the license, stay the effective 
                        date of the suspension or revocation.
                    ``(B) Notice of decision.--If, after a hearing held 
                under subparagraph (A), the Attorney General decides 
                not to reverse the decision to deny the application, 
                revoke or suspend the license, or assess the civil 
                penalty, as applicable, the Attorney General shall 
                provide the aggrieved party with notice of such 
                decision.
                    ``(C) Petition for de novo review.--
                            ``(i) In general.--During the 60-day period 
                        beginning on the date on which an aggrieved 
                        party receives a notice under subparagraph (B), 
                        the aggrieved party may file a petition with 
                        the district court of the United States for the 
                        judicial district in which the aggrieved party 
                        resides, or has a principal place of business, 
                        for a de novo judicial review of such denial, 
                        revocation, suspension, or assessment.
                            ``(ii) Judicial proceeding.--In any 
                        judicial proceeding arising from a petition 
                        under clause (i)--
                                    ``(I) the court may consider any 
                                evidence submitted by the parties to 
                                the proceeding, regardless of whether 
                                or not such evidence was considered at 
                                the hearing held under subparagraph 
                                (A); and
                                    ``(II) if the court decides that 
                                the Attorney General was not authorized 
                                to make such denial, revocation, 
                                suspension, or assessment, the court 
                                shall order the Attorney General to 
                                take such actions as may be necessary 
                                to comply with the judgment of the 
                                court.''.
    (c) Violent Felon Gun Ban Enforcement.--
            (1) Administrative relief from certain firearms and 
        explosives prohibitions.--
                    (A) Firearms.--Section 925(c) of title 18, United 
                States Code, is amended--
                            (i) in the first sentence, by striking ``A 
                        person'' and inserting ``(1) A person (other 
                        than a natural person)'';
                            (ii) in the second sentence, by striking 
                        ``Any person'' and inserting the following:
    ``(2) Any person'';
                            (iii) in the fourth sentence--
                                    (I) by striking ``A licensed 
                                importer'' and inserting the following:
    ``(3) A person (other than a natural person) who is a licensed 
importer''; and
                                    (II) by striking ``his license'' 
                                and inserting ``the license of that 
                                person''; and
                            (iv) by striking the last sentence and 
                        inserting the following:
    ``(4) Whenever the Attorney General grants relief under this 
section to any person, the Attorney General shall promptly publish, in 
the Federal Register, a notice of such action that includes--
            ``(A) the name of the person;
            ``(B) the disability with respect to which the relief is 
        granted;
            ``(C) if the disability was imposed by reason of a criminal 
        conviction of the person, the crime for which, and the court in 
        which, the person was convicted; and
            ``(D) the reasons for the decision of the Attorney 
        General.''.
                    (B) Explosive materials.--Section 845(b) of title 
                18, United States Code, is amended--
                            (i) in the first sentence, by striking ``A 
                        person'' and inserting ``(1) A person (other 
                        than a natural person)''; and
                            (ii) in the second sentence, by striking 
                        ``A licensee or permittee'' and inserting the 
                        following:
    ``(2) A licensee or permittee (other than a natural person)''.
                    (C) Applicability.--The amendments made by this 
                paragraph shall apply to any application for 
                administrative relief and any action for judicial 
                review that--
                            (i) is pending on the date of enactment of 
                        this section; and
                            (ii) is brought or filed on or after the 
                        date of enactment of this section.
            (2) Permanent firearm prohibition for convicted violent 
        felons and serious drug offenders.--Section 921(a)(20) of title 
        18, United States Code, is amended--
                    (A) in the first sentence--
                            (i) by redesignating subparagraphs (A) and 
                        (B) as clauses (i) and (ii), respectively; and
                            (ii) by inserting ``(A)'' after ``(20)'';
                    (B) in the second sentence, by striking ``What'' 
                and inserting the following:
    ``(B) What''; and
                    (C) by striking the third sentence and inserting 
                the following:
    ``(C) A State conviction shall not be considered to be a conviction 
for purposes of this chapter, if--
            ``(i) the conviction is for an offense other than a serious 
        drug offense or violent felony (as those terms are defined in 
        section 924(e)(2));
            ``(ii)(I) the person is pardoned;
            ``(II) the person has any civil right restored, which had 
        been taken away by virtue of the conviction; or
            ``(III) the conviction is expunged; and
            ``(iii) the authority that grants the pardon, the 
        restoration of civil rights, or the expunction--
                    ``(I) expressly authorizes the person to ship, 
                transport, receive, and possess firearms; and
                    ``(II) expressly determines that the circumstances 
                regarding the conviction and the record and reputation 
                of the person are such that the person is not likely to 
                act in a manner that is dangerous to public safety, and 
                that the granting of the relief is not contrary to the 
                public interest.''.
    (d) Intensive Gun Violence Reduction Strategy.--
            (1) Funding for federal domestic violence offender 
        recordkeeping improvements.--
                    (A) Authorization of appropriations.--In addition 
                to any other amounts authorized to be appropriated for 
                such purpose, there are authorized to be appropriated 
                $70,000,000 for fiscal year 2004 for the improvement of 
                the national instant criminal background check system 
                established under section 103 of the Brady Handgun 
                Violence Prevention Act (18 U.S.C. 922 note), including 
                the improvement of the records described in 
                subparagraph (B), and especially felony and misdemeanor 
                convictions for crimes of domestic violence and 
                restraining orders with respect to incidents of 
                domestic violence.
                    (B) Records included.--The records described in 
                this subparagraph are--
                            (i) the records described in paragraphs (1) 
                        through (3) of section 509(b) of the Omnibus 
                        Crime Control and Safe Streets Act of 1968 (42 
                        U.S.C. 3759(b)); and
                            (ii) the records required by the Attorney 
                        General under section 103 of the Brady Handgun 
                        Violence Prevention Act (18 U.S.C. 922 note) 
                        for the purpose of implementing that Act.
            (2) Funding for state and local domestic violence offender 
        recordkeeping improvements.--
                    (A) Grants for state and local domestic violence 
                offender recordkeeping improvements.--Title III of the 
                Violent Crime Control and Law Enforcement Act of 1994 
                is amended by adding at the end the following:

  ``Subtitle Y--Grants for State and Local Domestic Violence Offender 
                       Recordkeeping Improvements

``SEC. 32501. GRANT AUTHORIZATION.

    ``The Attorney General may award grants to State or local law 
enforcement agencies for the purpose of improving--
            ``(1) the organization of criminal records, including 
        records relating to convictions for crimes of domestic violence 
        and restraining orders with respect to domestic violence; and
            ``(2) the reporting of such records to the national instant 
        criminal background check system established under section 103 
        of the Brady Handgun Violence Prevention Act (18 U.S.C. 922 
        note).

``SEC. 32502. USE OF FUNDS.

    ``(a) In General.--Grants awarded by the Attorney General under 
this subtitle shall be used to fund programs for the purpose specified 
in section 32501.
    ``(b) Matching Requirement.--The Federal share of a grant awarded 
under this subtitle may not exceed 50 percent of the total costs of the 
programs described in the applications submitted under section 32503 
for the fiscal year for which the programs receive assistance under 
this subtitle.
    ``(c) Research and Evaluation.--The Attorney General shall use not 
less than 1 percent of the funds available under this subtitle, and not 
more than 3 percent of such funds, for the purposes of research and 
evaluation of the activities carried out under this subtitle.

``SEC. 32503. APPLICATIONS.

    ``(a) In General.--A State or local law enforcement agency desiring 
a grant under this subtitle shall submit to the Attorney General an 
application, in such form and containing such information as the 
Attorney General may reasonably require.
    ``(b) Contents.--Each application submitted under this section 
shall include--
            ``(1) a request for funds for the purpose specified in 
        section 32501;
            ``(2) a description of how the applicant intends to 
        improve--
                    ``(A) the organization of the applicant's criminal 
                records, including records relating to convictions for 
                crimes of domestic violence and to restraining orders 
                with respect to domestic violence; and
                    ``(B) the applicants reporting of such records to 
                the national instant criminal background check system; 
                and
            ``(3) assurances that Federal funds received under this 
        subtitle shall be used to supplement, and not supplant, non-
        Federal funds that would otherwise be available for activities 
        funded under this section.
    ``(c) Selection Criteria.--In awarding grants under this subtitle, 
the Attorney General shall consider the demonstrated need for, and the 
evidence of the ability of the applicant to make, the improvements 
described in subsection (b)(2), as described in the application 
submitted under subsection (a).

``SEC. 32504. REPORTS.

    ``(a) Report to Attorney General.--Not later than March 1 of each 
fiscal year, each law enforcement agency that received funds from a 
grant awarded under this subtitle for that fiscal year shall submit to 
the Attorney General a report describing the progress achieved in 
carrying out the program for which the grant was awarded.
    ``(b) Report to Congress.--Beginning not later than October 1 of 
the first fiscal year following the initial fiscal year during which 
grants are awarded under this subtitle, and not later than October 1 of 
each fiscal year thereafter, the Attorney General shall submit to 
Congress a report, which shall contain--
            ``(1) a detailed statement regarding grant awards and the 
        activities of grant recipients;
            ``(2) a compilation of statistical information submitted by 
        applicants; and
            ``(3) an evaluation of programs established with amounts 
        from grants awarded under this subtitle during the preceding 
        fiscal year.

``SEC. 32505. DEFINITION OF STATE.

    ``In this subtitle, the term `State' means each of the several 
States of the United States, the District of Columbia, the Commonwealth 
of Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
American Samoa, Guam, and the United States Virgin Islands.

``SEC. 32506. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle--
            ``(1) $20,000,000 for fiscal year 2004; and
            ``(2) such sums as may be necessary for fiscal year 
        2005.''.
                    (B) Technical and conforming amendment.--The table 
                of contents in section 2 of the Violent Crime Control 
                and Law Enforcement Act of 1994 is amended by inserting 
                after the item relating to subtitle X the following:

  ``Subtitle Y--Grants for State and Local Domestic Violence Offender 
                       Recordkeeping Improvements

        ``Sec. 32501. Grant authorization.
        ``Sec. 32502. Use of funds.
        ``Sec. 32503. Applications.
        ``Sec. 32504. Reports.
        ``Sec. 32505. Definition of State.
        ``Sec. 32506. Authorization of appropriations.''.
            (3) Authorization of funding for additional officers in the 
        bureau of alcohol, tobacco, firearms, and explosives.--In 
        addition to any other amounts authorized to be appropriated for 
        such purpose, there are authorized to be appropriated 
        $53,000,000 for fiscal year 2004 for the hiring of 600 firearms 
        agents and inspectors for the Bureau of Alcohol, Tobacco and 
        Firearms.
            (4) Local antigun violence media campaigns.--
                    (A) Grants for local antigun violence media 
                campaigns.--Title III of the Violent Crime Control and 
                Law Enforcement Act of 1994, as amended by paragraph 
                (2), is further amended by adding at the end the 
                following:

    ``Subtitle Z--Grants for Local Antigun Violence Media Campaigns

``SEC. 32701. GRANT AUTHORIZATION.

    ``The Attorney General may award grants to public entities or 
private nonprofit entities for the purpose of supporting the creation 
or expansion of local antigun violence media campaigns.

``SEC. 32702. USE OF FUNDS; MATCHING REQUIREMENT.

    ``(a) Use of Funds.--Grants awarded by the Attorney General under 
this subtitle shall be used to fund programs for media campaigns on gun 
violence and gun safety, including campaigns that--
            ``(1) highlight coordination among Federal, State, and 
        local law enforcement agencies;
            ``(2) publicize penalties for violations of firearms laws; 
        and
            ``(3) emphasize the safe storage of firearms and the 
        prevention of access to firearms by children.
    ``(b) Matching Requirement.--The Federal share of a grant awarded 
under this subtitle may not exceed 50 percent of the total cost of the 
program described in the application submitted under section 32703 for 
the fiscal year for which the program receives assistance under this 
subtitle.

``SEC. 32703. APPLICATIONS.

    ``To be eligible to receive a grant award under this subtitle for a 
fiscal year, a public entity or private nonprofit entity shall submit 
to the Attorney General an application, in such form and containing 
such information as the Attorney General may reasonably require.

``SEC. 32704. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $10,000,000 for fiscal 
year 2004 to carry out this subtitle.''.
                    (B) Technical and conforming amendment.--The table 
                of contents in section 2 of the Violent Crime Control 
                and Law Enforcement Act of 1994 (as amended by 
                paragraph (2)(B)), is amended by inserting after the 
                item relating to subtitle Y the following:

    ``Subtitle Z--Grants for Local Antigun Violence Media Campaigns

        ``Sec. 32701. Grant authorization.
        ``Sec. 32702. Use of funds; matching requirement.
        ``Sec. 32703. Applications.
        ``Sec. 32704. Authorization of appropriations.''.
            (5) Smart gun technology.--
                    (A) In general.--The Attorney General, acting 
                through the Director of the National Institute of 
                Justice, shall carry out a program to research and 
                develop smart gun technology.
                    (B) Defined term.--In this paragraph, the term 
                ``smart gun technology'' means a device--
                            (i) incorporated by manufacture and design 
                        into a handgun in such a manner that the device 
                        cannot be readily removed or deactivated;
                            (ii) that allows the handgun to be fired 
                        only by a particular individual; and
                            (iii) that may allow the handgun to be 
                        personalized to an additional individual.
                    (C) Authorization of appropriations.--In addition 
                to any other amounts authorized to be appropriated for 
                such purpose, there are authorized to be appropriated 
                $10,000,000 for fiscal year 2004 to carry out this 
                paragraph .
            (6) Foreign ballistics.--Section 921(a) of title 18, United 
        States Code, as amended by sections 11001 and 11101, is further 
        amended by adding at the end the following:
    ``(40) The term `forensic ballistics' means a comparative analysis 
of fired bullets and cartridge casings to identify the firearm from 
which the bullets or cartridge casings were discharged through the 
identification of the unique characteristics that each firearm imprints 
on bullets and cartridge casings.''.
            (7) Test firing and automated storage of forensic 
        ballistics records.--
                    (A) Amendments to title 18, united states code.--
                            (i) In general.--Chapter 44 of title 18, 
                        United States Code, as amended by section 
                        11001, is further amended by adding at the end 
                        the following:
``Sec. 933. Test firing and automated storage of forensic ballistics 
              records
    ``(a) In General.--A licensed manufacturer or licensed importer 
shall not transfer a firearm to any person before--
            ``(1) test firing the firearm;
            ``(2) preparing forensic ballistics records of the fired 
        bullet and cartridge casings from the test fire; and
            ``(3) making the ballistics records available to the 
        Attorney General for entry in a computerized database.
    ``(b) Penalties.--
            ``(1) In general.--If a licensed manufacturer or licensed 
        importer violates subsection (a), the Attorney General may, 
        after notice and opportunity for hearing--
                    ``(A)(i) suspend the license of such licensee for 
                not more than 1 year; or
                    ``(ii) revoke the license;
                    ``(B) impose on the licensee a civil fine of not 
                more than $10,000; or
                    ``(C) take the actions described in subparagraphs 
                (A) and (B).
            ``(2) Review.--An action of the Attorney General under 
        paragraph (1) may be reviewed only as provided in section 
        923(f).
            ``(3) Other administrative remedies.--The suspension or 
        revocation of a license or the imposition of a civil fine under 
        paragraph (1) shall not preclude any administrative remedy that 
        is available to the Attorney General under any other provision 
        of law.
    ``(c) Mandatory Forensic Ballistics Testing of Firearms in Federal 
Custody.--The Attorney General shall conduct mandatory forensic 
ballistics testing of all firearms that are, or have been, taken into 
the custody of, or procured or utilized by, the Department of 
Justice.''.
                            (ii) Technical and conforming amendment.--
                        The analysis for chapter 44 of title 18, United 
                        States Code, is amended by adding at the end 
                        the following:

``933. Test firing and automated storage of forensic ballistics 
                            records.''.
                            (iii) Authorization of appropriations.--
                        There are authorized to be appropriated 
                        $38,000,000 for each of the fiscal years 2004 
                        through 2007 to carry out section 933(c) of 
                        title 18, United States Code.
                            (iv) Effective date.--The amendments made 
                        by this subparagraph shall take effect on the 
                        date on which the Attorney General certifies 
                        that the Department of Justice has established 
                        a National Integrated Ballistics Network.
                    (B) Compliance assistance.--
                            (i) In general.--The Attorney General shall 
                        assist licensed manufacturers and licensed 
                        importers in complying with section 933(a) of 
                        title 18, United States Code, through--
                                    (I) the acquisition, disposition, 
                                and upgrade of computerized forensic 
                                ballistics equipment and bullet 
                                recovery equipment to be placed at the 
                                sites of licensed manufacturers and 
                                licensed importers or at regional 
                                firearm centers established by the 
                                Attorney General;
                                    (II) the hiring or designation of 
                                personnel necessary to develop and 
                                maintain a database of forensic 
                                ballistics records, research, and 
                                evaluation; and
                                    (III) any other steps necessary to 
                                implement effective forensic ballistics 
                                testing.
                            (ii) Online access to forensic ballistics 
                        records.--The Attorney General shall establish 
                        a system through which State and local law 
                        enforcement agencies, through online computer 
                        technology, can promptly access forensic 
                        ballistics records stored under section 933 of 
                        title 18, United States Code, as soon as the 
                        capability to do so is available.
                    (C) Annual reports.--Not later than 1 year after 
                the effective date of section 933 of title 18, United 
                States Code, and annually thereafter, the Attorney 
                General shall submit, to the Committees on the 
                Judiciary of the House of Representatives and the 
                Senate, a report regarding the effects of such section 
                933, including the number of Federal and State criminal 
                investigations, arrests, indictments, and prosecutions 
                of all cases in which access to forensic ballistics 
                records provided under such section 933, served as a 
                valuable investigative tool.
                    (D) Education and outreach.--
                            (i) In general.--The Attorney General shall 
                        work with representatives of the firearm 
                        industry (including firearm manufacturers and 
                        importers) to--
                                    (I) provide education about the 
                                role of forensic ballistics as part of 
                                a comprehensive firearm crime reduction 
                                strategy; and
                                    (II) reduce firearm-related crime 
                                and illegal firearm trafficking through 
                                coordination among Federal, State, and 
                                local law enforcement and regulatory 
                                agencies and the firearm industry.
                            (ii) Outreach.--In implementing clause (i), 
                        the Attorney General shall conduct outreach 
                        with firearm manufacturers and importers that--
                                    (I) have agreed to participate as a 
                                pilot site for the National Integrated 
                                Ballistics Information Network;
                                    (II) manufacture or import more 
                                than 1,000 firearms per year, as 
                                reported in the Annual Firearms 
                                Manufacturing and Export Report of the 
                                Bureau of Alcohol, Tobacco, Firearms, 
                                and Explosives, or as determined from 
                                information obtained in annual 
                                regulatory inspection audits conducted 
                                by the Attorney General; or
                                    (III) have a policy that requires 
                                the test firing of all firearms prior 
                                to transfer.
                            (iii) Annual reports.--Not later than 1 
                        year after the date of enactment of this Act, 
                        and annually thereafter, the Attorney General 
                        shall submit to the Committees on the Judiciary 
                        of the House of Representatives and the Senate 
                        a report containing--
                                    (I) the number of firearm 
                                manufacturers and importers and other 
                                representatives of the firearm industry 
                                participating in the outreach effort 
                                under this subparagraph;
                                    (II) the number and type of 
                                personnel that the Department of 
                                Justice has hired or assigned to carry 
                                out this subparagraph;
                                    (III) a summary of the activities 
                                established by firearm manufacturers 
                                and importers as a result of their 
                                participation in the outreach effort 
                                under this subparagraph;
                                    (IV) an evaluation of any changes 
                                in firearm-related crime pertaining to 
                                particular types of firearms 
                                manufactured by a firearm manufacturer 
                                or importer that is an active 
                                participant in the outreach effort 
                                under this subparagraph;
                                    (V) the volume of forensic 
                                ballistics records compiled as a result 
                                of the mandatory forensic ballistics 
                                testing by participating firearm 
                                manufacturers and importers;
                                    (VI) for each firearm manufacturer 
                                and firearm importer, the number of 
                                times a tracing request based on 
                                forensic ballistics analysis resulted 
                                in the identification of a firearm 
                                manufactured or imported by the firearm 
                                manufacturer or firearm importer; and
                                    (VII) an evaluation of the manner 
                                in which the implementation of forensic 
                                ballistics testing affected the volume 
                                of production or importation of 
                                firearms by participating firearm 
                                manufacturers and firearm importers.
                    (iv) Authorization of appropriations.--There are 
                authorized to be appropriated $38,306,000 for each of 
                the fiscal years 2004 through 2007 to carry out this 
                subparagraph, including funding for--
                                    (I) the installation of forensic 
                                ballistics equipment and bullet 
                                recovery equipment;
                                    (II) the establishment of regional 
                                centers for firearm testing;
                                    (III) salaries and expenses of 
                                necessary personnel; and
                                    (IV) research and evaluation.
                    (E) Report.--Not later than 1 year after the date 
                of enactment of this Act, the Attorney General shall 
                submit to the Committees on Appropriations of the House 
                of Representatives and the Senate a report, which shall 
                include an analysis of--
                            (i) the capacity to provide the online 
                        access required under subparagraph (B)(ii), and 
                        the process by which the online access will be 
                        implemented; and
                            (ii) any future technical or legal changes 
                        that may be required to make online access 
                        available, including estimates of the costs of 
                        making those changes.

                       Subtitle F--Miscellaneous

SEC. 11501. STUDY OF MARKETING PRACTICES OF THE FIREARMS INDUSTRY.

    (a) In General.--The Federal Trade Commission (referred to in this 
section as the ``Commission'') and the Attorney General shall jointly 
conduct a study of the marketing practices of the firearms industry, 
with respect to minors.
    (b) Issues Examined.--In conducting the study under subsection (a), 
the Commission and the Attorney General shall examine the extent to 
which the firearms industry advertises and promotes its products to 
minors, including through media outlets in which minors comprise a 
substantial percentage of the audience.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Commission and the Attorney General shall submit to 
Congress a report on the study conducted under subsection (a).

SEC. 11502. REGULATION OF INTERNET FIREARMS TRANSFERS.

    (a) Prohibitions.--Section 922 of title 18, United States Code, as 
amended by section 11101(b), is further amended by inserting after 
subsection (z) the following:
    ``(aa) Regulation of Internet Firearms Transfers.--
            ``(1) In general.--It shall be unlawful for any person to 
        operate an Internet website, if a purpose of the website is to 
        offer 1 or more firearms for sale or exchange, or to otherwise 
        facilitate the sale or exchange of 1 or more firearms posted or 
        listed on the website, unless--
                    ``(A) the person is licensed as a manufacturer, 
                importer, or dealer under section 923;
                    ``(B) the person notifies the Attorney General of 
                the Internet address of the website, and any other 
                information concerning the website as the Attorney 
                General may require by regulation; and
                    ``(C) if any firearm posted or listed for sale or 
                exchange on the website is not from the business 
                inventory or personal collection of that person--
                            ``(i) the person, as a term or condition 
                        for posting or listing the firearm for sale or 
                        exchange on the website on behalf of a 
                        prospective transferor, requires that, in the 
                        event of any agreement to sell or exchange the 
                        firearm pursuant to that posting or listing, 
                        the firearm be transferred to that person for 
                        disposition in accordance with clause (iii);
                            ``(ii) the person prohibits the posting or 
                        listing on the website of any information 
                        (including any name, nickname, telephone 
                        number, address, or electronic mail address) 
                        that is reasonably likely to enable the 
                        prospective transferor and prospective 
                        transferee to directly contact each other prior 
                        to the shipment of the firearm to that person 
                        under clause (i); and
                            ``(iii) with respect to each firearm 
                        received from a prospective transferor under 
                        clause (i), the person--
                                    ``(I) enters such information about 
                                the firearm as the Attorney General may 
                                require by regulation into a separate 
                                bound record;
                                    ``(II) in transferring the firearm 
                                to any transferee, complies with the 
                                requirements of this chapter as if the 
                                firearm were being transferred from the 
                                business inventory of that person; and
                                    ``(III) if the prospective 
                                transferor does not provide the person 
                                with a certified copy of a valid 
                                firearms license issued to the 
                                prospective transferor under this 
                                chapter, submits to the Attorney 
                                General a report of the transfer or 
                                other disposition of the firearm on a 
                                form specified by the Attorney General, 
                                which report shall not include the name 
                                of, or any other identifying 
                                information relating to, the 
                                transferor.
            ``(2) Transfers by persons other than licensees.--It shall 
        be unlawful for any person who is not licensed under section 
        923 to transfer a firearm pursuant to a posting or listing of 
        the firearm for sale or exchange on an Internet website 
        described in paragraph (1) to any person other than the 
        operator of the website.''.
    (b) Penalties.--Section 924(a) of title 18, United States Code, as 
amended by section 11001, is further amended by adding at the end the 
following:
    ``(10) Whoever willfully violates section 922(aa)(2) shall be fined 
under this title, imprisoned not more than 2 years, or both.''.

SEC. 11503. REDUCTION OF GUN TRAFFICKING.

    (a) Prohibition Against Multiple Handgun Sales or Purchases.--
Section 922 of title 18, United States Code, as amended by sections 
11101 and 11502, is further amended by inserting at the end the 
following:
    ``(bb) Prohibition Against Multiple Handgun Sales or Purchases.--
            ``(1) In general.--It shall be unlawful for any licensed 
        dealer--
                    ``(A) during any 30-day period, to sell 2 or more 
                handguns to an individual who is not licensed under 
                section 923; or
                    ``(B) to sell a handgun to an individual who is not 
                licensed under section 923 and who purchased a handgun 
                during the 30-day period ending on the date of the 
                sale.
            ``(2) Time limitation.--It shall be unlawful for any 
        individual who is not licensed under section 923 to purchase 2 
        or more handguns during any 30-day period.
            ``(3) Exchanges.--Paragraph (1) does not apply to an 
        exchange of 1 handgun for 1 handgun.''.
    (b) Penalties.--Section 924(a)(2) of title 18, United States Code, 
is amended by striking ``or (o)'' and inserting ``(o), or (bb)''.
    (c) Deadlines for Destruction of Records Related to Certain 
Firearms Transfers.--
            (1) Handgun transfers subject to the waiting period.--
        Section 922(s)(6)(B)(i) of title 18, United States Code, is 
        amended by striking ``20 business days'' and inserting ``35 
        calendar days''.
            (2) Firearms transfers subject to instant check.--Section 
        922(t)(2)(C) of title 18, United States Code, is amended by 
        inserting ``not later than 35 calendar days after the date the 
        system provides the licensee with the number,'' before 
        ``destroy''.
    (d) Revised Definition.--Section 921(a)(21)(C) of title 18, United 
States Code, is amended by inserting ``, except that such term shall 
include any person who transfers more than 1 handgun in any 30-day 
period to a person who is not a licensed dealer'' before the semicolon.

                        TITLE XII--MISCELLANEOUS

SEC. 12001. ADVISORY COMMITTEE ON PRIVATE SECTOR SUPPORT FOR CHILDREN 
              AND FAMILIES.

    (a) Establishment.--Not later than 6 months after the date of 
enactment of this Act, the Secretary of Health and Human Services (in 
this section referred to as the ``Secretary'') shall establish an 
advisory committee to be known as the ``Advisory Committee on Private 
Sector Support for Children and Families'' (in this section referred to 
as the ``Committee'') that shall review, highlight and promote the 
private sector policies and practices that will best create family-
friendly workplaces and allow parents to succeed at work and at home.
    (b) Duties.--The Committee shall--
            (1) solicit advice and recommendations concerning employer 
        and community efforts that are designed to assist parents 
        caring for their children and ensure that every child residing 
        in the United States has a healthy start, a head start, a fair 
        start, and a safe start in life and successful passage to 
        adulthood;
            (2) review and consider the full range of private sector 
        family-centered efforts, including flexibility in the 
        workplace, family and medical leave policies, employer 
        sponsored health care and child care services, parent support 
        centers, and literacy training; and
            (3) prepare and submit the report required under subsection 
        (d).
    (c) Membership.--The Committee shall--
            (1) be appointed by the Secretary in consultation with the 
        Secretary of the Treasury, the Secretary of Labor, and the 
        Secretary of Education; and
            (2) consist of representatives of children and family 
        advocates, business groups, labor organizations, faith-based 
        institutions, and charitable foundations.
    (d) Report.--
            (1) Secretary.--Not later than 18 months after the date of 
        enactment of this Act, the Committee shall submit to the 
        Secretary a report that contains the Committee's findings and 
        recommendations resulting from carrying out the duties required 
        under subsection (b), together with recommendations for such 
        legislation and administrative actions as the Committee 
        considers appropriate
            (2) Congress.--The Secretary shall transmit copies of the 
        report to the Committee on Health, Education, Labor, and 
        Pensions and the Committee on Finance of the Senate and the 
        Committee on Education and the Workforce, the Committee on 
        Energy and Commerce, and the Committee on Ways and Means of the 
        House of Representatives.

SEC. 12002. IMPROVEMENT OF DATA COLLECTION AND REPORTING REGARDING 
              CHILDREN AND FAMILIES.

    (a) Report on Economic Well-Being of Current and Former TANF 
Families.--
            (1) Annual report to congress.--Section 411(b) of the 
        Social Security Act (42 U.S.C. 611(b)) is amended--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(5) the economic well-being of children and families 
        receiving assistance under the State programs funded under this 
        part and of children and families that have ceased to receive 
        such assistance, using longitudinal matched data gathered from 
        federally supported programs, and including State-by-State data 
        that details the distribution of earnings and stability of 
        employment of such families and (to the extent feasible) 
        describes, with respect to such families, the distribution of 
        income from known sources (including employer-reported wages, 
        assistance under the State program funded under this part, and 
        benefits under the food stamp program), the ratio of such 
        families' income to the poverty line, and the extent to which 
        such families receive or received noncash benefits and child 
        care assistance.''.
            (2) Conforming amendments.--Section 411(a) of the Social 
        Security Act (42 U.S.C. 611(a)) is amended--
                    (A) by redesignating paragraph (7) as paragraph 
                (8); and
                    (B) by inserting after paragraph (6), the following 
                new paragraph:
            ``(7) Report on economic well-being of current and former 
        recipients.--The report required by paragraph (1) for a fiscal 
        quarter shall include for that quarter such information as the 
        Secretary may specify in order for the Secretary to include in 
        the annual reports to Congress required under subsection (b) 
        the information described in paragraph (5) of that 
        subsection.''.
    (b) Report on Data From State Studies Regarding Former TANF and 
Food Stamp Recipients.--Section 413 of the Social Security Act (42 
U.S.C. 613) is amended by adding at the end the following new 
subsection:
    ``(k) Report on Status of Former Recipients of Assistance and Food 
Stamp Benefits.--Not later than 6 months after the date of enactment of 
the Leave No Child Behind Act of 2003, the Secretary shall compile and 
report to Congress data from existing State-level studies funded (in 
whole or in part) by the Secretary on the extent of employment, receipt 
of non-cash benefits, occurrence of extreme poverty, and hardship among 
previous recipients of assistance under the State program funded under 
this part and benefits under the food stamp program.''.
                                 <all>