To amend the Child Care and Development Block Grant Act of 1990 to reauthorize the Act, to improve early learning opportunities and promote school preparedness, and for other purposes.

April 10, 2003

Mr. GREGG, from the Committee on Health, Education, Labor, and Pensions, reported the following original bill; which was read twice and placed on the calendar

To amend the Child Care and Development Block Grant Act of 1990 to reauthorize the Act, to improve early learning opportunities and promote school preparedness, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Caring for Children Act of 2003'.

(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I--CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 1990

Sec. 101. Short title and goals.

Sec. 102. Authorization of appropriations.

Sec. 103. Lead agency.

Sec. 104. State plan.

Sec. 105. Activities to improve the quality of child care.

Sec. 106. Optional priority use of additional funds.

Sec. 107. Reporting requirements.

Sec. 108. National activities.

Sec. 109. Grants and hotline.

Sec. 110. Definitions.

Sec. 111. Rules of construction.

TITLE II--ENHANCING SECURITY AT CHILD CARE CENTERS IN FEDERAL FACILITIES

Sec. 201. Definitions.

Sec. 202. Enhancing security.

TITLE III--REMOVAL OF BARRIERS TO INCREASING THE SUPPLY OF QUALITY CHILD CARE

Sec. 301. Small business child care grant program.

TITLE I--CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 1990

SEC. 101. SHORT TITLE AND GOALS.

(a) HEADING- Section 658A of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9801 note) is amended by striking the section heading and inserting the following:

`SEC. 658A. SHORT TITLE AND GOALS.'.

(b) 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 (3), by striking `encourage' and inserting `assist';

(2) in paragraph (4), by striking `parents' and all that follows and inserting `low-income working parents;';

(3) by redesignating paragraph (5) as paragraph (8); and

(4) by inserting after paragraph (4) the following:

`(5) to assist States in improving the quality of child care available to families;

`(6) to promote school preparedness by encouraging children, families, and caregivers to engage in developmentally appropriate and age-appropriate activities in child care settings that will--

`(A) improve the children's social, emotional, and behavioral skills; and

`(B) foster their early cognitive, pre-reading, and language development;

`(7) to promote parental and family involvement in the education of young children in child care settings; and'.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

Section 658B of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858) is amended by striking `subchapter' and all that follows and inserting `subchapter $2,300,000,000 for fiscal year 2004, $2,500,000,000 for fiscal year 2005, $2,700,000,000 for fiscal year 2006, $2,900,000,000 for fiscal year 2007, and $3,100,000,000 for fiscal year 2008.'.

SEC. 103. LEAD AGENCY.

Section 658D(a) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858b(a)) is amended by striking `designate' and all that follows and inserting `designate an agency (which may be an appropriate collaborative agency), or establish a joint interagency office, that complies with the requirements of subsection (b) to serve as the lead agency for the State under this subchapter.'.

SEC. 104. STATE PLAN.

(a) LEAD AGENCY- Section 658E(c)(1) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(1)) is amended by striking `designated' and inserting `designated or established'.

(b) POLICIES AND PROCEDURES- Section 658E(c)(2) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)) is amended--

(1) in subparagraph (A)(i)(II), by striking `section 658P(2)' and inserting `section 658T(2)';

(2) by striking subparagraph (D) and inserting the following:

`(D) CONSUMER AND CHILD CARE PROVIDER EDUCATION INFORMATION- Certify that the State will--

`(i) collect and disseminate, through resource and referral services and other means as determined by the State, to parents of eligible children, child care providers, and the general public, information regarding--

`(I) the promotion of informed child care choices, including information about the quality and availability of child care services;

`(II) research and best practices concerning children's development, including early cognitive development;

`(III) the availability of assistance to obtain child care services; and

`(IV) other programs for which families that receive child care services for which financial assistance is

provided under this subchapter may be eligible, including the food stamp program established under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), 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), 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 the medicaid and State children's health insurance programs under titles XIX and XXI of the Social Security Act (42 U.S.C. 1396 et seq. and 1397aa et seq.); and

`(ii) report to the Secretary the manner in which the consumer education information described in clause (i) was provided to parents and the number of parents to whom such consumer education information was provided, during the period of the previous State plan.'; and

(3) by adding at the end the following:

`(I) PROTECTION FOR WORKING PARENTS-

`(i) REDETERMINATION PROCESS- Describe the procedures and policies that are in place to ensure that working parents (especially parents in families receiving assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)) are not required to unduly disrupt their employment in order to comply with the State's requirements for redetermination of eligibility for assistance under this subchapter.

`(ii) MINIMUM PERIOD- Demonstrate that each child that receives assistance under this subchapter in the State will receive such assistance for not less than 6 months before the State redetermines the eligibility of the child under this subchapter, except as provided in clause (iii).

`(iii) PERIOD BEFORE TERMINATION- At the option of the State, demonstrate that the State will not terminate assistance under this subchapter based on a parent's loss of work or cessation of attendance at a job training or educational program for which the family was receiving the assistance, 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.

`(J) COORDINATION WITH OTHER PROGRAMS- Describe how the State, in order to expand accessibility and continuity of quality early care and early education, will coordinate the early childhood education activities assisted under this subchapter with--

`(i) programs carried out under the Head Start Act (42 U.S.C. 9831 et seq.), including the Early Head Start programs carried out under section 645A of that Act (42 U.S.C. 9840a);

`(ii)(I) Early Reading First and Even Start programs carried out under subparts 2 and 3 of part B of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6371 et seq., 6381 et seq.); and

`(II) other preschool programs carried out under title I of that Act (20 U.S.C. 6301 et seq.);

`(iii) programs carried out under section 619 and part C of the Individuals with Disabilities Education Act (20 U.S.C. 1419, 1431 et seq.);

`(iv) State prekindergarten programs; and

`(v) other early childhood education programs.

`(K) TRAINING IN EARLY LEARNING AND CHILDHOOD DEVELOPMENT- Describe any training requirements that are in effect within the State that are designed to enable child care providers to promote the social, emotional, physical, and cognitive development of children and that are applicable to child care providers that provide services for which assistance is made available under this subchapter in the State.

`(L) PUBLIC-PRIVATE PARTNERSHIPS- Demonstrate how the State is encouraging partnerships among State agencies, other public agencies, and private entities, to leverage existing service delivery systems (as of the date of submission of the State plan) for early childhood education and to increase the supply and quality of child care services for children who are less than 13 years of age.

`(M) ACCESS TO CARE FOR CERTAIN POPULATIONS- Demonstrate how the State is addressing the child care needs of parents eligible for child care services for which assistance is provided under this subchapter, who have children with special needs, work nontraditional hours, or require child care services for infants and toddlers.

`(N) COORDINATION WITH TITLE IV OF THE SOCIAL SECURITY ACT- Describe how the State will inform parents receiving assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and low-income parents about eligibility for assistance under this subchapter.'.

(c) USE OF BLOCK GRANT FUNDS- Section 658E(c)(3) the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(3)) is amended--

(1) in subparagraph (A), by striking `as required under' and inserting `in accordance with'; and

(2) in subparagraph (B)--

(A) by striking `The State' and inserting the following:

`(i) IN GENERAL- The State';

(B) in clause (i) (as designated in subparagraph (A)), by striking `appropriate to realize any of the goals specified in paragraphs (2) through (5) of section 658A(b)' and inserting `appropriate (which may include an activity described in clause (ii)) to realize any of the goals specified in paragraphs (2) through (8) of section 658A(b)'; and

(C) by adding at the end the following:

`(ii) CHILD CARE RESOURCE AND REFERRAL SYSTEM- A State may use amounts described in clause (i) to establish or support a system of local child care resource and referral organizations coordinated by a statewide private, nonprofit, community-based lead child care resource and referral organization. The local child care resource and referral organizations shall--

`(I) provide parents in the State with information, and consumer education, concerning the full range of child care options, including child care provided during nontraditional hours and through emergency child care centers, in their communities;

`(II) collect and analyze data on the supply of and demand for child care in political subdivisions within the State;

`(III) submit reports to the State containing data and analysis described in clause (II); and

`(IV) work to establish partnerships with public agencies and private entities to increase the supply and quality of child care services.'.

(d) DIRECT SERVICES- Section 658E(c)(3) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(3)) is amended--

(1) in subparagraph (A), by striking `(D)' and inserting `(E)'; and

(2) by adding at the end the following:

`(E) DIRECT SERVICES- From amounts provided to a State for a fiscal year to carry out this subchapter, the State shall--

`(i) reserve the minimum amount required to be reserved under section 658G, and the funds for costs described in subparagraph (C); and

`(ii) from the remainder, use not less than 70 percent to fund direct services (as defined by the State).'.

(e) 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) in subparagraph (A), by striking `The State plan' and all that follows and inserting the following:

`(i) SURVEY- The State plan shall--

`(I) demonstrate that the State has, after consulting with local area child care program administrators, developed and conducted a statistically valid and reliable survey of the market rates for child care services in the State (that reflects variations in the cost of child care services by geographic area, type of provider, and age of child) within the 2 years preceding the date of the submission of the application containing the State plan;

`(II) detail the results of the State market rates survey conducted pursuant to subclause (I);

`(III) describe how the State will provide for timely payment for child care services, and set payment rates for child care services, for which assistance is provided under this subchapter in accordance with the results of the market rates survey conducted pursuant to subclause (I) without reducing the number of families in the State receiving such assistance under this subchapter, relative to the number of such families on the date of introduction of the Caring for Children Act of 2003; and

`(IV) describe how the State will, not later than 30 days after the completion of the survey described in subclause (I), make the results of the survey widely available through public means, including posting the results on the Internet.

`(ii) EQUAL ACCESS- The State plan shall include a certification that the payment rates are sufficient to ensure equal access for eligible children to child care services comparable to child care services in the State or substate area that are provided to children whose parents are not eligible to receive child care assistance under any Federal or State program.'; and

(2) in subparagraph (B)--

(A) by striking `Nothing' and inserting the following:

`(i) NO PRIVATE RIGHT OF ACTION- Nothing'; and

(B) by adding at the end the following:

`(ii) NO PROHIBITION OF CERTAIN DIFFERENT RATES- Nothing in this subchapter shall be construed to prevent a State from differentiating the payment

rates described in subparagraph (A) on the basis of--

`(I) geographic location of child care providers (such as location in an urban or rural area);

`(II) the age or particular needs of children (such as children with special needs and children served by child protective services); and

`(III) whether the providers provide child care during weekend and other nontraditional hours.'.

SEC. 105. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

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

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

`(a) IN GENERAL-

`(1) RESERVATION- Each State that receives funds to carry out this subchapter for a fiscal year shall reserve and use not less than 6 percent of the funds for activities provided directly, or through grants or contracts with resource and referral organizations or other appropriate entities, that are designed to improve the quality of child care services.

`(2) ACTIVITIES- The funds reserved under paragraph (1) may only be used to--

`(A) develop and implement voluntary guidelines on pre-reading and language skills and activities, for child care programs in the State, that are aligned with State standards for kindergarten through grade 12 or the State's general goals for school preparedness;

`(B) support activities and provide technical assistance in Federal, State, and local child care settings to enhance early learning for young children, to promote literacy, and to foster school preparedness;

`(C) offer training, professional development, and educational opportunities for child care providers that relate to the use of developmentally appropriate and age-appropriate curricula, and early childhood teaching strategies, that are scientifically based and aligned with the social, emotional, physical, and cognitive development of children, including--

`(i) developing and operating distance learning child care training infrastructures;

`(ii) developing model technology-based training courses;

`(iii) offering training for caregivers in informal child care settings; and

`(iv) offering training for child care providers who care for infants and toddlers and children with special needs.

`(D) engage in programs designed to increase the retention and improve the competencies of child care providers, including wage incentive programs and initiatives that establish tiered payment rates for providers that meet or exceed child care services guidelines, as defined by the State;

`(E) evaluate and assess the quality and effectiveness of child care programs and services offered in the State to young children on improving overall school preparedness; and

`(F) carry out other activities determined by the State to improve the quality of child care services provided in the State and for which measurement of outcomes relating to improved child safety, child well-being, or school preparedness is possible.

`(b) CERTIFICATION- Beginning with fiscal year 2004, the State shall annually submit to the Secretary a certification in which the State certifies that the State was in compliance with subsection (a) during the preceding fiscal year and describes how the State used funds made available to carry out this subchapter to comply with subsection (a) during that preceding fiscal year.

`(c) STRATEGY- The State shall annually submit to the Secretary--

`(1) beginning with fiscal year 2004, an outline of the strategy the State will implement during that fiscal year to address the quality of child care services for which financial assistance is made available under this subchapter, including--

`(A) a statement specifying how the State will address the activities carried out under subsection (a);

`(B) a description of quantifiable, objective measures that the State will use to evaluate the State's progress in improving the quality of the child care services (including measures regarding the impact, if any, of State efforts to improve the quality by increasing payment rates, as defined in section 658H(c)), evaluating separately the impact of the activities listed in each of such subparagraphs on the quality of the child care services; and

`(C) a list of State-developed child care services quality targets quantified for such fiscal year for such measures; and

`(2) beginning with fiscal year 2005, a report on the State's progress in achieving such targets for the preceding fiscal year.

`(d) IMPROVEMENT PLAN- If the Secretary determines that a State failed to make progress as described in subsection (c)(2) for a fiscal year--

`(1) the State shall submit an improvement plan that describes the measures the State will take to make that progress; and

`(2) the State shall comply with the improvement plan by a date specified by the Secretary but not later than 1 year after the date of the determination.

`(e) CONSTRUCTION- Nothing in this subchapter shall be construed to require that the State apply measures for evaluating quality of child care services to specific types of child care providers.'.

SEC. 106. OPTIONAL PRIORITY USE OF ADDITIONAL FUNDS.

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

`SEC. 658H. OPTIONAL PRIORITY USE OF ADDITIONAL FUNDS.

`(a) IN GENERAL- If a State receives funds to carry out this subchapter for a fiscal year, and the amount of the funds exceeds the amount of funds the State received to carry out this subchapter for fiscal year 2003, the State shall consider using a portion of the excess--

`(1) to support payment rate increases in accordance with the market rate survey conducted pursuant to section 658E(c)(4);

`(2) to support the establishment of tiered payment rates as described in section 658G(a)(2)(D); and

`(3) to support payment rate increases for care for children in communities served by local educational agencies that have been identified for improvement under section 1116(c)(3) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6316(c)(3)).

`(b) NO REQUIREMENT TO REDUCE CHILD CARE SERVICES- Nothing in this section shall be construed to require a State to take an action that the State determines would result in a reduction of child care services to families of eligible children.

`(c) PAYMENT RATE- In this section, the term `payment rate' means the rate of State payment or reimbursement to providers for subsidized child care.'.

SEC. 107. REPORTING REQUIREMENTS.

(a) HEADING- Section 658K of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858i) is amended by striking the section heading and inserting the following:

`SEC. 658K. REPORTS AND AUDITS.'.

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

`(a) REPORTS-

`(1) IN GENERAL- A State that receives funds to carry out this subchapter shall collect the information described in paragraph (2) on a monthly basis.

`(2) REQUIRED INFORMATION- The information required under this paragraph shall include, with respect to a family unit receiving assistance under this subchapter, information concerning--

`(A) family income;

`(B) county of residence;

`(C) the gender, race, and age of children receiving such assistance;

`(D) whether the head of the family unit is a single parent;

`(E) the sources of family income, including--

`(i) employment, including self-employment; and

`(ii) assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and a State program for which State spending is counted toward the maintenance of effort requirement under section 409(a)(7) of the Social Security Act (42 U.S.C. 609(a)(7));

`(F) the type of child care in which the child was enrolled (such as family child care, home care, center-based child care, or other types of child care described in section 658T(5));

`(G) whether the child care provider involved was a relative;

`(H) the cost of child care for such family, separately stating the amount of the subsidy payment of the State and the amount of the co-payment of the family toward such cost;

`(I) the average hours per month of such care;

`(J) household size;

`(K) whether the parent involved reports that the child has an individualized education program or an individualized family service plan described in section 602 or 636 of the Individuals with Disabilities Education Act (20 U.S.C. 1401 and 1436); and

`(L) the reason for any termination of benefits under this subchapter, including whether the termination was due to--

`(i) the child's age exceeding the allowable limit;

`(ii) the family income exceeding the State eligibility limit;

`(iii) the State recertification or administrative requirements not being met;

`(iv) parent work, training, or education status no longer meeting State requirements;

`(v) a nonincome related change in status; or

`(vi) other reasons;

during the period for which such information is required to be submitted.

`(3) SUBMISSION TO SECRETARY- A State described in paragraph (1) shall, on a quarterly basis, submit to the Secretary the information required to be collected under paragraph (2) and the number of children and families receiving assistance under this subchapter (stated on a monthly basis). Information on the number of families receiving the assistance shall also be posted on the website of such State. In the fourth quarterly report of each year, a State described in paragraph (1) shall also submit to the Secretary information on the annual number and type of child care providers (as described in section 658T(5)) that received funding under this subchapter and the annual number of payments made by the State through vouchers, under contracts, or by payment to parents reported by type of child care provider.

`(4) USE OF SAMPLES-

`(A) AUTHORITY- A State may comply with the requirement to collect the information described in paragraph (2) through the use of disaggregated case record information on a

sample of families selected through the use of scientifically acceptable sampling methods approved by the Secretary.

`(B) SAMPLING AND OTHER METHODS- The Secretary shall provide the States with such case sampling plans and data collection procedures as the Secretary determines necessary to produce statistically valid samples of the information described in paragraph (2). The Secretary may develop and implement procedures for verifying the quality of data submitted by the States.'.

(c) PERIOD OF COMPLIANCE AND WAIVERS-

(1) IN GENERAL- States shall have 2 years from the date of enactment of this Act to comply with the changes to data collection and reporting required by the amendments made by this section.

(2) WAIVERS- The Secretary of Health and Human Services may grant a waiver from paragraph (1) to States with plans to procure data systems.

SEC. 108. NATIONAL ACTIVITIES.

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

`SEC. 658L. NATIONAL ACTIVITIES.

`(a) REPORT-

`(1) IN GENERAL- The Secretary shall, not later than April 30, 2004, and annually thereafter, prepare and submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate, and, not later than 30 days after the date of such submission, post on the Department of Health and Human Services website, a report that contains the following:

`(A) A summary and analysis of the data and information provided to the Secretary in the State reports submitted under sections 658E, 658G(c), and 658K.

`(B) Aggregated statistics on and an analysis of the supply of, demand for, and quality of child care, early education, and nonschool-hour programs.

`(C) An assessment and, where appropriate, recommendations for Congress concerning efforts that should be undertaken to improve the access of the public to quality and affordable child care in the United States.

`(D) A progress report describing the progress of the States in streamlining data reporting, the Secretary's plans and activities to provide technical assistance to States, and an explanation of any barriers to getting data in an accurate and timely manner.

`(2) COLLECTION OF INFORMATION- The Secretary may make arrangements with resource and referral organizations, to utilize the child care data system of the resource and referral organizations at the national, State, and local levels, to collect the information required by paragraph (1)(B).

`(b) GRANTS TO IMPROVE QUALITY AND ACCESS-

`(1) IN GENERAL- The Secretary shall award grants to States, from allotments made under paragraph (2), to improve the quality of and access to child care for infants and toddlers, subject to the availability of appropriations for this purpose.

`(2) ALLOTMENTS- From funds reserved under section 658O(a)(3) for a fiscal year, the Secretary shall allot to each State an amount that bears the same relationship to such funds as the amount the State receives for the fiscal year under section 658O bears to the amount all States receive for the fiscal year under section 658O.

`(c) TOLL-FREE HOTLINE- The Secretary shall award a grant or contract, or enter into a cooperative agreement for the operation of a national toll-free hotline to assist families in accessing local information on child care options and providing consumer education materials, subject to the availability of appropriations for this purpose.

`(d) TECHNICAL ASSISTANCE- The Secretary shall provide technical assistance to States on developing and conducting the State market rates survey described in section 658E(c)(4)(A)(i).'.

SEC. 109. GRANTS AND HOTLINE.

Section 658O(a) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m(a)) is amended by adding at the end the following:

`(3) GRANTS TO IMPROVE QUALITY AND ACCESS- The Secretary shall reserve an amount not to exceed $100,000,000 for each fiscal year to carry out section 658L(b), subject to the availability of appropriations for this purpose.

`(4) TOLL-FREE HOTLINE- The Secretary shall reserve an amount not to exceed $1,000,000 to carry out section 658L(c), subject to the availability of appropriations for this purpose.'.

SEC. 110. DEFINITIONS.

(a) ELIGIBLE CHILD- Section 658P(4)(B) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n(4)(B)) is amended by striking `85 percent of the State median income for a family of the same size' and inserting `an income level determined by the State involved, with priority based on need as defined by the State'.

(b) CHILD WITH SPECIAL NEEDS- Section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n) is amended by inserting after paragraph (2) the following:

`(3) CHILD WITH SPECIAL NEEDS- The term `child with special needs' means--

`(A) a child with a disability, as defined in section 602 of the Individuals with Disabilities Education Act (20 U.S.C. 1401); and

`(B) a child who is eligible for early intervention services under part C of the Individuals with Disabilities Education Act (20 U.S.C. 1431 et seq.).'.

(c) LEAD AGENCY- Section 658P(8) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n(8)) is amended by striking `section 658B(a)' and inserting `section 658D(a)'.

(d) NATIVE HAWAIIAN ORGANIZATION- Section 658P(14)(B) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n(14)(B)) is amended

by striking `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))' and inserting `Native Hawaiian organization, as defined in section 7207 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7517)'.

(e) REDESIGNATION- The Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended--

(1) by redesignating section 658P as section 658T; and

(2) by moving that section 658T to the end of the Act.

SEC. 111. RULES OF CONSTRUCTION.

The Child Care and Development Block Grant Act of 1990 (as amended by section 110(e)) is further amended by inserting after section 658O (42 U.S.C. 9858m) the following:

`SEC. 658P. RULES OF CONSTRUCTION.

`Nothing in this subchapter shall be construed to require a State to impose State child care licensing requirements on any type of early childhood provider, including any such provider who is exempt from State child care licensing requirements on the date of enactment of the Caring for Children Act of 2003.'.

TITLE II--ENHANCING SECURITY AT CHILD CARE CENTERS IN FEDERAL FACILITIES

SEC. 201. DEFINITIONS.

In this title:

(1) ADMINISTRATOR- The term `Administrator' means the Administrator of General Services.

(2) CORRESPONDING CHILD CARE FACILITY- The term `corresponding child care facility', used with respect to the Chief Administrative Officer of the House of Representatives, the Librarian of Congress, or the head of a designated entity in the Senate, 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.

(3) ENTITY SPONSORING A CHILD CARE FACILITY- The term `entity sponsoring', used with respect to 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 and the Coast Guard; 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.

SEC. 202. ENHANCING SECURITY.

(a) COVERAGE-

(1) EXECUTIVE BRANCH- The Administrator shall issue the regulations described in subsection

(b) for child care facilities, and entities sponsoring child care facilities, in executive facilities.

(2) LEGISLATIVE BRANCH- The Chief Administrative Officer of the House of Representatives, the Librarian of Congress, and the head of a designated entity in the Senate shall issue the regulations described in subsection (b) for corresponding child care facilities, and entities sponsoring the corresponding child care facilities, in legislative facilities.

(3) JUDICIAL BRANCH- The Director of the Administrative Office of the United States Courts shall issue the regulations described in subsection (b) for child care facilities, and entities sponsoring child care facilities, in judicial facilities.

(b) REGULATIONS- The officers and designated entity described in subsection (a) shall issue regulations that concern--

(1) matters relating to an occupant emergency plan and evacuations, such as--

(A) providing for building security committee membership for each director of a child care facility described in subsection (a);

(B) establishing a separate section in an occupant emergency plan for each such facility;

(C) promoting familiarity with procedures and evacuation routes for different types of emergencies (such as emergencies caused by hazardous materials, a fire, a bomb threat, a power failure, or a natural disaster);

(D) strengthening onsite relationships between security personnel and the personnel of such a facility, such as by ensuring that the post orders of guards reflect responsibility for the facility;

(E) providing specific, clear, and concise evacuation instructions for a facility, including

instructions specifying who authorizes an evacuation;

(F) providing for good evacuation equipment, especially cribs; and

(G) promoting the ability to evacuate without outside assistance; and

(2) matters relating to relocation sites, such as--

(A) promoting an informed parent body that is knowledgeable about evacuation procedures and relocation sites;

(B) providing regularly updated parent contact information (regarding matters such as names, locations, electronic mail addresses, and cell phone and other telephone numbers);

(C) establishing remote telephone contact for parents, to and from areas that are not less than 10 miles from such a facility; and

(D) providing for an alternate site (in addition to regular sites) in the event of a catastrophe, which site may include--

(i) a site that would be an unreasonable distance from the facility under normal circumstances; and

(ii) a facility with 24-hour operations, such as a hotel or law school library.

TITLE III--REMOVAL OF BARRIERS TO INCREASING THE SUPPLY OF QUALITY CHILD CARE

SEC. 301. SMALL BUSINESS CHILD CARE GRANT PROGRAM.

(a) ESTABLISHMENT- The Secretary of Health and Human Services (referred to in this section as the `Secretary') shall establish a program to award grants to States, on a competitive basis, to assist States in providing funds to encourage the establishment and operation of employer-operated child care programs.

(b) APPLICATION- To be eligible to receive a grant under this section, 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, including an assurance that the funds required under subsection (e) will be provided.

(c) AMOUNT OF GRANT- The Secretary shall determine the amount of a grant to a State under this section based on the population of the State as compared to the population of all States receiving grants under this section.

(d) USE OF FUNDS-

(1) IN GENERAL- A State shall use amounts provided under a grant awarded under this section to provide assistance to a consortium of a small business and other appropriate entities located in the State to enable the small businesses to establish and operate child care programs. Such assistance may include--

(A) the acquisition, construction, renovation, and operation of child care facilities and equipment;

(B) technical assistance in the establishment of a child care program;

(C) assistance for the startup costs related to a child care program;

(D) assistance for the training of child care providers;

(E) scholarships for low-income wage earners;

(F) the provision of services to care for sick children or to provide care to school-aged children;

(G) the entering into of contracts with local resource and referral or local health departments;

(H) assistance for care for children with disabilities; or

(I) assistance for any other activity determined appropriate by the State (including loans, grants, investment guarantees, interest subsidies, or other mechanisms to expand the availability of, and improve the quality of, employer-operated child care in the State).

(2) APPLICATION- To be eligible to receive assistance from a State under this section, a consortium shall prepare and submit to the State an application at such time, in such manner, and containing such information as the State may require.

(3) PREFERENCE- In providing assistance under this section, a State shall give priority to a consortium that desires to provide child care in a geographic area within the State where such care is not generally available or accessible.

(4) LIMITATION- With respect to grant funds received under this section, a State may not provide in excess of $500,000 in assistance from such funds to any single applicant.

(e) MATCHING REQUIREMENT- To be eligible to receive a grant under this section, a State shall provide assurances to the Secretary that, with respect to the costs to be incurred by a consortium receiving assistance from the State to carry out activities under this section--

(1) the consortium will make available non-Federal contributions to such costs in an amount equal to--

(A) for the first fiscal year in which the consortium receives such assistance, not less than 50 percent of such costs;

(B) for the second fiscal year in which the consortium receives such assistance, not less than 66 2/3 percent of such costs; and

(C) for the third fiscal year in which the consortium receives such assistance, not less than 75 percent of such costs; and

(2) the consortium will make the contributions available--

(A) directly or through donations from public or private entities; and

(B) as determined by the State, in cash or in kind, fairly evaluated, including plant, equipment, or services.

(f) REQUIREMENTS OF PROVIDERS- To be eligible to receive assistance under a grant awarded under this section, a child care provider shall comply with all applicable State and local licensing and regulatory requirements

and all applicable health and safety standards in effect in the State.

(g) STATE-LEVEL ACTIVITIES- A State may not retain more than 3 percent of the amount described in subsection (c) for State administration and other State-level activities.

(h) ADMINISTRATION-

(1) STATE RESPONSIBILITY- A State shall have responsibility for administering a grant awarded for the State under this section and for monitoring consortia that receive assistance under such grant.

(2) AUDITS- A State shall require each consortium receiving assistance under a grant awarded under this section to conduct an annual audit with respect to the activities of the consortium. Such audits shall be submitted to the State.

(3) MISUSE OF FUNDS-

(A) REPAYMENT- If the State determines, through an audit or otherwise, that a consortium receiving assistance under a grant awarded under this section has misused the assistance, the State shall notify the Secretary of the misuse. The Secretary, upon such a notification,

may seek from such a consortium the repayment of an amount equal to the amount of any such misused assistance plus interest.

(B) APPEALS PROCESS- The Secretary shall by regulation provide for an appeals process with respect to repayments under this paragraph.

(i) REPORTING REQUIREMENTS-

(1) 2-YEAR STUDY-

(A) IN GENERAL- Not later than 2 years after the date on which the Secretary first awards grants under this section, the Secretary shall conduct a study to determine--

(i) the capacity of consortia to meet the child care needs of communities within States;

(ii) the kinds of consortia that are being formed with respect to child care at the local level to carry out programs funded under this section; and

(iii) who is using the programs funded under this section and the income levels of such individuals.

(B) REPORT- Not later than 28 months after the date on which the Secretary first awards grants under this section, the Secretary shall prepare and submit to the appropriate committees of Congress a report on the results of the study conducted in accordance with subparagraph (A).

(2) 4-YEAR STUDY-

(A) IN GENERAL- Not later than 4 years after the date on which the Secretary first awards grants under this section, the Secretary shall conduct a study to determine the number of child care facilities that are funded through consortia that received assistance through a grant awarded under this section and that remain in operation and the extent to which such facilities are meeting the child care needs of the individuals served by such facilities.

(B) REPORT- Not later than 52 months after the date on which the Secretary first awards grants under this section, the Secretary shall prepare and submit to the appropriate committees of Congress a report on the results of the study conducted in accordance with subparagraph (A).

(j) DEFINITION- In this section:

(1) CONSORTIUM- The term `consortium' means 2 or more entities that--

(A) shall include at least 1 small business; and

(B) may include other small businesses, nonprofit agencies or community development corporations, local governments, or other appropriate entities.

(2) SMALL BUSINESS- The term `small business' means an employer who employed an average of at least 2 but not more than 50 employees on business days during the preceding calendar year.

(k) AUTHORIZATION OF APPROPRIATIONS-

(1) IN GENERAL- There is authorized to be appropriated to carry out this section, $30,000,000 for the period of fiscal years 2004 through 2008.

(2) EVALUATIONS AND ADMINISTRATION- With respect to the total amount appropriated for such period in accordance with this subsection, not more than $2,500,000 of that amount may be used for expenditures related to conducting evaluations required under, and the administration of, this section.

(l) TERMINATION OF PROGRAM- The program established under subsection (a) shall terminate on September 30, 2009.

Calendar No. 72

Rule

To amend the Child Care and Development Block Grant Act of 1990 to reauthorize the Act, to improve early learning opportunities and promote school preparedness, and for other purposes.

April 10, 2003

END