Family and Workplace Balancing Act of 2004 - Balancing Act of 2004 - Provides assistance for working families through: (1) family and medical care leave; (2) expanded child care for young children and incentives for child care providers; (3) preschool, in-school, and afterschool nutrition and education; (4) temporary and part-time workers pension and health plan benefits; and (5) encouragement of business use of employee telecommuting.
Family Income to Respond to Significant Transitions Act - Directs the Secretary of Labor to make five-year grants to a State or local government to pay for the Federal share of the cost of carrying out projects that assist families by providing wage replacement for eligible individuals responding to caregiving needs resulting from the birth or adoption of a son or daughter or other family caregiving needs.
Family and Medical Leave Enhancement Act of 2003 - Amends the Family and Medical Leave Act of 1993 (FMLA) to allow employees covered by FMLA to take up to four hours during any 30-day period, and up to 24 hours during any 12-month period, of parental involvement leave to participate in or attend their children's or grandchildren's educational and extracurricular activities. Amends Federal civil service law to apply the same parental involvement leave allowance to Federal employees.
Amends the Child Care and Development Block Grant Act of 1990 to authorize additional funds for expanding child care activities for young children less than three years of age.
Establishes: (1) the Child Care Provider Development and Retention Grant Program; and (2) the Child Care Provider Scholarship Program. Authorizes the Secretary of Health and Human Services (HHS) to allot funds to eligible States (and Indian tribes and tribal organizations) for distribution directly, or at State option through local governments, to pay the Federal share of the cost of making grants to eligible child care providers under both such programs.
Healthy Early Education Workforce Grant Program Act - Authorizes the Secretary of HHS to allot funds to eligible States (and Indian tribes and tribal organizations) to pay for the Federal share of the cost of providing access to affordable health benefits coverage for: (1) eligible child care providers; and (2) at State option, the spouses, domestic partners, and dependents of such providers. Directs the Secretary to conduct an evaluation of several such funded State programs representing various approaches to increasing the rate of coverage for child care providers.
Child Care Construction and Renovation Incentive Grants Act - Amends the Housing and Community Development Act of 1974 to provide for use of community development block grants to establish child care facilities. Amends the National Housing Act to provide for insurance for mortgages: (1) on new and rehabilitated child care facilities; and (2) for acquisition of or the refinancing of debt on existing child care facilities. Authorizes the Secretary of Housing and Urban Development to make technical and financial assistance grants to acquire or improve child care facilities or equipment.
Directs the Secretary of HHS to establish a business child care incentive grant program.
Universal Prekindergarten Act - Directs the Secretary of HHS to make grants to State agencies to develop full-day, full-year universal prekindergarten programs for all children three, four, and five years old.
Amends the Child Nutrition Act of 1966 (CNA) to direct the Secretary of Agriculture to carry out a universal free school breakfast program without regard to family incomes. Provides that appropriations and expenditures for CNA shall be considered HHS, not Department of Agriculture, functions for budget purposes.
Amends the Richard B. Russell National School Lunch Act (NSLA) to direct the Secretary of Agriculture to establish a program of healthy school nutrition environment incentive grants. Revises CNA and NSLA requirements for regulation of competitive foods.
Revises NSLA child and adult care food program provisions relating to reimbursements for afterschool dinners and eligibility of private child care centers.
Afterschool Education Enhancement Act - Amends the Elementary and Secondary Education Act of 1965 (ESEA) to require State educational agencies to give priority to 21st century community learning centers program applications submitted jointly by eligible entities consisting of at least one local educational agency receiving funds under ESEA provisions for disadvantaged students and at least one community-based organization or other public or private entity.
Amends the Employee Retirement Income Security Act of 1974 (ERISA) to provide for treatment of employees working at less than full-time under participation, vesting, and accrual rules governing pension plans and under group health plans. Expands the definition of employee to include certain individuals whose services are leased or contracted for.
United States Business Telework Act - Directs the Secretary of Labor to conduct, in not more than five States, a pilot program to raise awareness about telework among employers and to encourage them to offer telework options to employees.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3780 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 3780
To improve the lives of working families by providing family and
medical need assistance, child care assistance, in-school and
afterschool assistance, family care assistance, and encouraging the
establishment of family-friendly workplaces.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 4, 2004
Ms. Woolsey (for herself, Mrs. Jones of Ohio, Ms. DeLauro, Mr.
Kucinich, Ms. Millender-McDonald, Mr. Serrano, Ms. Lee, Mr. Conyers,
Mr. Frank of Massachusetts, Mrs. Napolitano, Mr. Lampson, Mr. Towns,
Mr. Ballance, Ms. Corrine Brown of Florida, Mr. George Miller of
California, Mr. Lantos, Ms. Kilpatrick, Mr. Payne, Ms. Carson of
Indiana, Mr. Owens, and Ms. Linda T. Sanchez of California) introduced
the following bill; which was referred to the Committee on Education
and the Workforce, and in addition to the Committees on House
Administration, Government Reform, and Financial Services, 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 improve the lives of working families by providing family and
medical need assistance, child care assistance, in-school and
afterschool assistance, family care assistance, and encouraging the
establishment of family-friendly workplaces.
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 ``Family and
Workplace Balancing Act of 2004'' or ``Balancing Act of 2004''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I--PAID LEAVE FOR NEW PARENTS AND FAMILY AND MEDICAL LEAVE
ENHANCEMENT ACT OF 2003
Subtitle A--Paid Leave for New Parents
Sec. 101. Short title.
Sec. 102. Purpose.
Sec. 103. Definitions.
Sec. 104. Grants.
Sec. 105. Notification.
Sec. 106. Report.
Sec. 107. Authorization of appropriations.
Sec. 108. Technical and conforming amendments.
Subtitle B--Family and Medical Leave Enhancement Act of 2003
Sec. 111. Short title.
Sec. 112. Additional leave for parental involvement.
Sec. 113. Parental involvement leave for civil servants.
Sec. 114. Clarification of leave entitlement.
Sec. 115. Definition of grandchild.
TITLE II--CHILD CARE EXPANSION AND IMPROVEMENT
Subtitle A--Care for Young Children
Sec. 201. Expanding child care for young children.
Subtitle B--Improving Child Care Quality Through Teacher Incentives
Sec. 221. Purpose.
Sec. 222. Definitions.
Sec. 223. Funds for child care provider development and retention
grants, scholarships, and health benefits
coverage.
Sec. 224. Allotments to States.
Sec. 225. Application and plan.
Sec. 226. Child care provider development and retention grant program.
Sec. 227. Child care provider scholarship program.
Sec. 228. Child care provider health benefits coverage.
Sec. 229. Annual report.
Sec. 230. Evaluation of health benefits programs by Secretary.
Sec. 231. Authorization of appropriations.
Subtitle C--Child Care Construction and Renovation Incentive Grants
Sec. 241. Short title.
Sec. 242. Use of community development block grants to establish child
care facilities.
Sec. 243. Insurance for mortgages on new and rehabilitated child care
facilities.
Sec. 244. Insurance for mortgages for acquisition or refinancing debt
of existing child care facilities.
Sec. 245. Study of availability of secondary markets for mortgages on
child care facilities.
Sec. 246. Technical and financial assistance grants.
Subtitle D--Business Child Care Incentive Grant Program
Sec. 251. Business child care incentive grant program.
TITLE III--PRE-SCHOOL, IN-SCHOOL, AND AFTERSCHOOL ASSISTANCE
Subtitle A--Universal Prekindergarten Act
Sec. 301. Short title.
Sec. 302. Findings and purpose.
Sec. 303. Prekindergarten grant program authorization.
Sec. 304. State requirements.
Sec. 305. Local requirements.
Sec. 306. Professional development set-aside.
Sec. 307. Reporting.
Sec. 308. Federal funds supplementary.
Sec. 309. Definitions.
Sec. 310. Authorization of appropriations.
Subtitle B--Universal Free School Breakfast Program
Sec. 311. Universal free school breakfast program.
Subtitle C--Nutritional Improvement for Children Served Under Child
Nutrition Programs
Sec. 321. Nutritional improvement for children served under child
nutrition programs.
Subtitle D--Child and Adult Care Food Program
Sec. 331. Reimbursements for afterschool dinners.
Sec. 332. Eligibility of private child care centers.
Subtitle E--Afterschool Education Enhancement Act
Sec. 341. Short title.
Sec. 342. Amendments regarding 21st century community learning centers.
TITLE IV--IMPROVING THE WORKPLACE FOR FAMILIES
Subtitle A--Part-Time and Temporary Workers Benefits
Sec. 401. Treatment of employees working at less than full-time under
participation, vesting, and accrual rules
governing pension plans.
Sec. 402. Treatment of employees working at less than full-time under
group health plans.
Sec. 403. Expansion of definition of employee to include certain
individuals whose services are leased or
contracted for.
Sec. 404. Effective dates.
Subtitle B--United States Business Telework Act
Sec. 411. Short title.
Sec. 412. Telework pilot program.
Sec. 413. Report to Congress.
Sec. 414. Definition.
Sec. 415. Termination.
Sec. 416. Authorization of appropriations.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Currently in two-thirds of married families with
children in the United States, both parents work full-time.
Seventy-one percent of mothers with children under age 18 work
full-time, and another 29 percent work part-time.
(2) The National Study of the Changing Workforce found that
70 percent of employed parents indicated that they don't have
enough time with their children.
(3)(A) A survey conducted by the Boys and Girls Clubs of
America found that more than half of the respondents indicated
that they had little or no time to spend in physical activities
with their children.
(B) Parents in 3,500,000 households, representing 7,000,000
children, spend an hour or less a week doing physical
activities with their children.
(C) The primary obstacle cited by the parents to engaging
in physical activities with their children was their work
schedules.
(4) Nearly two-thirds of employees who need to take family
or medical leave do not take such leave because they cannot
afford to forgo the pay.
(5) Nearly every industrialized nation other than the
United States, and most developing nations, provides parents
with paid leave for infant care.
(6) In the United States, more than half of all mothers of
children under the age of one now work. Yet parents of infants
and toddlers face acute problems finding child care, and child
care that is available is often of mediocre quality.
(7) The cost of child care averages $4,000 to $6,000 per
year in the United States, and families with younger children
or with more than one child face even greater costs. For
example, the average annual cost of child care for a 4-year-old
in an urban area center is more than the average annual cost of
public college tuition in all but one State.
(8) The average annual child care teacher salary is
$15,430, a wage so low that many programs find it extremely
challenging to recruit fully qualified teachers and to retain
them. High turnover rates make it more difficult to provide
quality and continuity of care.
(9) Only 12 percent of eligible children receive child care
assistance through the Child Care Development Block Grant, and
only about 3 out of 5 eligible preschoolers are able to
participate in the Head Start program.
(10) Among needy students, school nutrition programs often
provide the primary opportunity for consumption of
nutritionally valuable foods.
(11) Breakfast is a critical meal for children and provides
the nutrition necessary to optimize their learning capacities.
(12) According to the Bureau of the Census, nearly
7,000,000 children in the United States are left alone after
school each week without adult supervision or structured
activities of any kind.
(13) Violent juvenile crime peaks between the hours of 3:00
p.m. and 7:00 p.m. and teens are more likely to be victims of
serious violent crime in the hour after school lets out than
any other time of the day.
(14) The Nation's communities can benefit from teleworking,
which give workers more time to spend at home with their
families.
(15) Companies with telework programs have found that
telework can boost employee productivity 5 percent to 20
percent, thereby saving businesses valuable resources and time.
(16) More United States families are working more hours
than ever. In 2000, the average American worker worked 36 hours
more, almost a full week, than in 1990. A recent AFL-CIO poll
found that nearly three-quarters of working adults indicated
that they have little or no control over their work schedules.
(17) The AFL-CIO's ``Ask a Working Woman'' survey for 2002
reported that 63 percent of working women work more than 40
hours a week, 30 percent of working women work 20 to 39 hours a
week, and 7 percent of working women work less than 20 hours a
week.
TITLE I--PAID LEAVE FOR NEW PARENTS AND FAMILY AND MEDICAL LEAVE
ENHANCEMENT ACT OF 2003
Subtitle A--Paid Leave for New Parents
SEC. 101. SHORT TITLE.
This subtitle may be cited as the ``Family Income To Respond to
Significant Transitions Act''.
SEC. 102. PURPOSE.
The purpose of this subtitle is to establish a 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.
SEC. 103. DEFINITIONS.
In this subtitle:
(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. 104. GRANTS.
(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 description of the wage replacement program;
(2)(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);
(3) 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; and
(4) 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).
(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
subtitle.
(h) Supplement Not Supplant.--Funds appropriated pursuant to the
authority of this subtitle 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 subtitle 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 subtitle.
SEC. 105. NOTIFICATION.
An eligible entity that provides partial or full wage replacement
to an eligible individual under this subtitle 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 108,
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. 106. REPORT.
Not later than 3 years after the beginning of the grant period for
the first grant made under section 104, and annually thereafter, the
Secretary shall prepare and submit to Congress a report that contains a
description and evaluation of the program under this subtitle for the
preceding year.
SEC. 107. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this subtitle
$400,000,000 for fiscal year 2004 and such sums as may be necessary for
each subsequent fiscal year.
SEC. 108. 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 title I of the Family and Workplace Balancing Act of
2003, 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 title I of the Family and Workplace Balancing Act of
2003, 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''.
Subtitle B--Family and Medical Leave Enhancement Act of 2003
SEC. 111. SHORT TITLE.
This subtitle may be cited as the ``Family and Medical Leave
Enhancement Act of 2003''.
SEC. 112. ADDITIONAL LEAVE FOR PARENTAL INVOLVEMENT.
(a) Leave Requirement.--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 additional leave for parental
involvement.--
``(A) In general.--Subject to section 103(f), in
addition to leave available under paragraph (1), an
eligible employee shall be entitled to a total of 4
hours of leave during any 30-day period, and a total of
24 hours of leave during any 12-month period to
participate in or attend an activity that--
``(i) is sponsored by a school or community
organization; and
``(ii) relates to a program of the school
or organization that is attended by a son or
daughter or a grandchild of the employee.
``(B) Definitions.--As used in this paragraph:
``(i) School.--The term `school' means an
elementary school or secondary school (as such
terms are defined in the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6301
et seq.)), a Head Start program assisted under
the Head Start Act (42 U.S.C. 9831 et seq.),
and a child care facility licensed under State
law.
``(ii) Community organization.--The term
`community organization' means a private
nonprofit organization that is representative
of a community or a significant segment of a
community and provides activities for
individuals described in subparagraph (A) or
(B) of section 101(12), such as a scouting or
sports organization.''.
(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)(A) 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--
(1) by striking ``under'' and inserting the following:
``under--
``(i)''; and
(2) inserting before the period at the end the following:
``; or
``(ii) subsection (a)(3)(A) for any part of
the 24-hour period of such leave under such
subsection''.
(d) Notice.--Section 102(e)(1) of such Act (29 U.S.C. 2612(e)(1))
is amended by adding at the end the following: ``In any case in which
an employee requests leave under subsection (a)(3)(A), 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.''.
(e) Certification.--Section 103 of such Act (29 U.S.C. 2613) is
amended by adding at the end the following:
``(f) Certification for Parental Involvement Leave.--An employer
may require that a request for leave under section 102(a)(3)(A) be
supported by a certification issued at such time and in such manner as
the Secretary may by regulation prescribe.''.
SEC. 113. PARENTAL INVOLVEMENT LEAVE FOR CIVIL SERVANTS.
(a) Leave Requirement.--Section 6382(a) of title 5, United States
Code, is amended by adding at the end the following:
``(3)(A) Subject to section 6383(f), in addition to leave available
under paragraph (1), an employee shall be entitled to a total of 4
hours of leave during any 30-day period, and a total of 24 hours of
leave during any 12-month period to participate in or attend an
activity that--
``(i) is sponsored by a school or community organization;
and
``(ii) relates to a program of the school or organization
that is attended by a son or daughter or a grandchild of the
employee.
``(B) For the purpose of this paragraph:
``(i) The term `school' means an elementary school or
secondary school (as such terms are defined in the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.)),
a Head Start program assisted under the Head Start Act (42
U.S.C. 9831 et seq.), and a child care facility licensed under
State law.
``(ii) The term `community organization' means a private
nonprofit organization that is representative of a community or
a significant segment of a community and provides activities
for individuals described in subparagraph (A) or (B) of section
6381(6), such as a scouting or sports organization.''.
(b) Schedule.--Section 6382(b)(1) of such title is amended by
inserting after the second sentence the following: ``Leave under
subsection (a)(3)(A) 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)(A) 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)(1) of such title is amended by adding
at the end the following: ``In any case in which an employee requests
leave under subsection (a)(3)(A), 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.''.
(e) Certification.--Section 6383 of such title is amended by adding
at the end the following:
``(f) An employing agency may require that a request for leave
under section 6382(a)(3)(A) be supported by a certification issued at
such time and in such manner as the Office of Personnel Management may
by regulation prescribe.''.
SEC. 114. CLARIFICATION OF LEAVE ENTITLEMENT.
Section 102(a)(1) of the Family and Medical Leave Act of 1993 (29
U.S.C. 2612(a)(1)) and section 6382(a)(1) of title 5, United States
Code, are each amended by adding at the end the following:
``(E) In order to meet routine family medical
needs, including transportation of a son or daughter or
a grandchild for medical and dental appointments for
annual checkups and vaccinations.
``(F) In order to meet the routine medical care
needs of elderly individuals who are related to the
eligible employee, including visits to nursing homes
and group homes.''.
SEC. 115. DEFINITION OF GRANDCHILD.
(a) Non-Civil-Service Employees.--Section 101 of the Family and
Medical Leave Act (29 U.S.C. 2611) is amended by adding at the end the
following new paragraph:
``(14) Grandchild.--The term `grandchild' means a son or
daughter of an employee's child.''.
(b) Civil Service Employees.--Section 6381 of title 5, United
States Code, is amended--
(1) in paragraph (5)(B), by striking ``and'' at the end;
(2) in paragraph (6)(B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(7) the term `grandchild' means a son or daughter of an
employee's child.''.
TITLE II--CHILD CARE EXPANSION AND IMPROVEMENT
Subtitle A--Care for Young Children
SEC. 201. EXPANDING CHILD CARE FOR YOUNG CHILDREN.
(a) 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 ``and'';
(2) in paragraph (5), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(6) to assist States in improving child care services for
young children.''.
(b) Authorization of Appropriations.--Section 658B of the Child
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858) is
amended--
(1) by striking ``There'' and inserting ``(a) In General.--
There''; and
(2) by adding at the end the following:
``(b) Child Care Activities for Young Children.--In addition to
amounts appropriated under subsection (a), there is authorized to be
appropriated to carry out child care activities for young children
under this subchapter $500,000,000 for each of the fiscal years 2004,
2005, and 2006.''.
(c) Child Care Activities for Young Children.--The Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9801 et seq.) is amended
by inserting after section 658G the following:
``SEC. 658H. CHILD CARE ACTIVITIES FOR YOUNG CHILDREN.
``Child care activities for young children for which funds under
this subchapter may be used include activities that are designed to
accomplish the following:
``(1) Increase the availability of child care services for
young children with disabilities.
``(2) Provide support services for networks of family child
care providers.
``(3) Provide or support programs that provide training,
services, materials, equipment, or other support to caregivers,
eligible child care providers, and family child care providers
that provide child care to young children. Such support may
include the purchase of equipment such as cribs and high
chairs.
``(4) Provide funds to increase compensation offered and
provide bonuses to caregivers, eligible child care providers,
and family child care providers who provide child care to
children under the age of 3 years, especially those caregivers
and providers who have formal education in early childhood
development.
``(5) Provide and support networks between health care
providers and caregivers, eligible child care providers, and
family child care providers that provide child care to young
children.
``(6) Provide child care services for young children who
are enrolled in Head Start programs under the Head Start Act
(42 U.S.C. 9831 et seq.).''.
(d) Definitions.--Section 658P of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858n) is amended by adding at the
end the following:
``(15) Young children.--The term `young children' means
eligible children who are less than 3 years of age.''.
Subtitle B--Improving Child Care Quality Through Teacher Incentives
SEC. 221. PURPOSE.
The purposes of this subtitle are--
(1) to establish the Child Care Provider Development and
Retention Grant Program, the Child Care Provider Scholarship
Program, and a program of child care provider health benefits
coverage; and
(2) to help children receive the high quality child care
and early education the children need for positive cognitive
and social development, by rewarding and promoting the
retention of committed, qualified child care providers and by
providing financial assistance to improve the educational
qualifications of child care providers.
SEC. 222. DEFINITIONS.
In this subtitle:
(1) Child care provider.--The term ``child care provider''
means an individual who provides a service directly to a child
on a person-to-person basis for compensation for--
(A) a center-based child care provider that is
licensed or regulated under State or local law and that
satisfies the State and local requirements applicable
to the child care services provided;
(B) a licensed or regulated family child care
provider that satisfies the State and local
requirements applicable to the child care services
provided; or
(C) an out-of-school time program that is licensed
or regulated under State or local law and that
satisfies the State and local requirements applicable
to the child care services provided.
(2) Family child care provider.--The term ``family child
care provider'' has the meaning given such term in section 658P
of the Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858n).
(3) Indian tribe.--The term ``Indian tribe'' has the
meaning given such term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(4) Lead agency.--The term ``lead agency'' means the agency
designated under section 658D of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858b).
(5) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(6) State.--The term ``State'' means any of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands of the United States, Guam, American
Samoa, or the Commonwealth of the Northern Mariana Islands.
(7) Tribal organization.--The term ``tribal organization''
has the meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
SEC. 223. FUNDS FOR CHILD CARE PROVIDER DEVELOPMENT AND RETENTION
GRANTS, SCHOLARSHIPS, AND HEALTH BENEFITS COVERAGE.
(a) In General.--From amounts appropriated to carry out this
subtitle, the Secretary may allot and distribute funds to eligible
States, and make payments to Indian tribes and tribal organizations, to
pay for the Federal share of the cost of carrying out activities under
sections 226, 227, and 228 for eligible child care providers.
(b) Allotments.--The funds shall be allotted and distributed, and
the payments shall be made, by the Secretary in accordance with section
224, 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
subtitle.
SEC. 224. ALLOTMENTS TO STATES.
(a) Amounts Reserved.--
(1) Territories and possessions.--The Secretary shall
reserve not more than \1/2\ of 1 percent of the funds
appropriated under section 231(a), and not more than \1/2\ of 1
percent of the funds appropriated under section 232(b), for any
fiscal year for payments to the Virgin Islands of the United
States, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands, to be allotted in accordance with
their respective needs.
(2) Indian tribes and tribal organizations.--The Secretary
shall reserve not more than 3 percent of the funds appropriated
under section 231(a), and not more than 3 percent of the funds
appropriated under section 231(b), for any fiscal year for
payments to Indian tribes and tribal organizations with
applications approved under subsection (c).
(b) Allotments to Remaining States.--
(1) General authority.--From the funds appropriated under
section 231(a) for any fiscal year and remaining after the
reservations made under subsection (a), and from the funds
appropriated under section 231(b) for any fiscal year and
remaining after the reservations made under subsection (a), the
Secretary shall allot to each State an amount equal to the sum
of--
(A) an amount that bears the same ratio to 50
percent of the appropriate remainder as the product of
the young child factor of the State and the allotment
percentage of the State bears to the sum of the
corresponding products for all States; and
(B) an amount that bears the same ratio to 50
percent of such remainder as the product of the school
lunch factor of the State and the allotment percentage
of the State bears to the sum of the corresponding
products for all States.
(2) Young child factor.--In this subsection, the term
``young child factor'' means the ratio of the number of
children under 5 years of age in the State to the number of
such children in all the States, as determined according to the
most recent annual estimates of population in the States, as
provided by the Bureau of the Census.
(3) School lunch factor.--In this subsection, the term
``school lunch factor'' means the ratio of the number of
children who are receiving free or reduced price lunches under
the school lunch program established under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.) in
the State to the number of such children in all the States, as
determined annually by the Department of Agriculture.
(4) Allotment percentage.--
(A) In general.--Except as provided in subparagraph
(B), for purposes of this subsection, the allotment
percentage for a State shall be determined by dividing
the per capita income of all individuals in the United
States, by the per capita income of all individuals in
the State.
(B) Limitations.--For purposes of this subsection,
if an allotment percentage determined under
subparagraph (A)--
(i) is more than 1.2 percent, the allotment
percentage of that State shall be considered to
be 1.2 percent; and
(ii) is less than 0.8 percent, the
allotment percentage of the State shall be
considered to be 0.8 percent.
(C) Per capita income.--For purposes of
subparagraph (A), per capita income shall be--
(i) determined at 2-year intervals;
(ii) applied for the 2-year period
beginning on October 1 of the first fiscal year
beginning after the date such determination is
made; and
(iii) equal to the average of the annual
per capita incomes for the most recent period
of 3 consecutive years for which satisfactory
data are available from the Department of
Commerce at the time such determination is
made.
(c) Payments to Indian Tribes and Tribal Organizations.--
(1) Reservation of funds.--From amounts reserved under
subsection (a)(2), the Secretary may make grants to or enter
into contracts with Indian tribes and tribal organizations that
submit applications under this subsection, to plan and carry
out programs and activities--
(A) to encourage child care providers to improve
their qualifications;
(B) to retain qualified child care providers in the
child care field; and
(C) to provide health benefits coverage for child
care providers.
(2) Applications and requirements.--To be eligible to
receive a grant or contract under this subsection, an Indian
tribe or tribal organization shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require. The application shall
provide that the applicant--
(A) will coordinate the programs and activities
involved, to the maximum extent practicable, with the
lead agency in each State in which the applicant will
carry out such programs and activities; and
(B) will make such reports on, and conduct such
audits of the funds made available through the grant or
contract for, programs and activities under this
subtitle as the Secretary may require.
(d) Data and Information.--The Secretary shall obtain from each
appropriate Federal agency, the most recent data and information
necessary to determine the allotments provided for in subsection (b).
(e) Reallotments.--
(1) In general.--Any portion of an allotment under
subsection (b) to a State for a fiscal year that the Secretary
determines will not be distributed to the State for such fiscal
year shall be reallotted by the Secretary to other States in
proportion to the original corresponding allotments made under
such subsection to such States for such fiscal year.
(2) Limitations.--
(A) Reduction.--The amount of any reallotment to
which a State is entitled under this subsection shall
be reduced to the extent that such amount exceeds the
amount that the Secretary estimates will be distributed
to the State to carry out corresponding activities
under this subtitle.
(B) Reallotments.--The amount of such reduction
shall be reallotted to States for which no reduction in
a corresponding allotment, or in a corresponding
reallotment, is required by this subsection, in
proportion to the original corresponding allotments
made under subsection (b) to such States for such
fiscal year.
(3) Amounts reallotted.--For purposes of this subtitle
(other than this subsection and subsection (b)), any amount
reallotted to a State under this subsection shall be considered
to be part of the corresponding allotment made under subsection
(b) to the State.
(4) Indian tribes or tribal organizations.--Any portion of
a grant or contract made to an Indian tribe or tribal
organization under subsection (c) that the Secretary determines
is not being used in a manner consistent with the provisions of
this subtitle in the period for which the grant or contract is
made available, shall be used by the Secretary to make payments
to other tribes or organizations that have submitted
applications under subsection (c) in accordance with their
respective needs.
(f) Cost-Sharing.--
(1) Child care provider development and retention grants
and scholarships.--
(A) Federal share.--The Federal share of the cost
of carrying out activities under sections 226 and 227,
with funds allotted under this section and distributed
by the Secretary to a State, shall be--
(i) not more than 90 percent of the cost of
each grant made under such sections, in the
first fiscal year for which the State receives
such funds;
(ii) not more than 85 percent of the cost
of each grant made under such sections, in the
second fiscal year for which the State receives
such funds;
(iii) not more than 80 percent of the cost
of each grant made under such sections, in the
third fiscal year for which the State receives
such funds; and
(iv) not more than 75 percent of the cost
of each grant made under such sections, in any
subsequent fiscal year for which the State
receives such funds.
(B) Non-federal share.--
(i) In general.--The State may provide the
non-Federal share of the cost in cash or in the
form of an in-kind contribution, fairly
evaluated by the Secretary.
(ii) In-kind contribution.--In this
subparagraph, the term ``in-kind contribution''
means payment of the costs of participation of
eligible child care providers in health
insurance programs or retirement programs.
(2) Child care provider health benefits coverage.--
(A) Federal share.--The Federal share of the cost
of carrying out activities under section 228, with
funds allotted under this section and distributed by
the Secretary to a State, shall be not more than 50
percent of such cost.
(B) Non-federal share.--The State may provide the
non-Federal share of the cost in cash or in kind,
fairly evaluated by the Secretary, including plant,
equipment, or services. The State shall provide the
non-Federal share directly or through donations from
public or private entities. Amounts provided by the
Federal Government, or services assisted or subsidized
to any significant extent by the Federal Government,
may not be included in determining the amount of such
share.
(g) Availability of Allotted Funds Distributed to States.--Of the
funds allotted under this section for activities described in sections
226 and 227 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 226;
(2) not less than 22.5 percent shall be available to the
State for grants under section 227; and
(3) not more than 10 percent shall be available to pay
administrative costs incurred by the State to carry out
activities described in sections 226 and 227.
(h) Definition.--For the purposes of subsections (a) through (e),
the term ``State'' includes only the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
SEC. 225. APPLICATION AND PLAN.
(a) Application.--To be eligible to receive a distribution of funds
allotted under section 224, a State shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require by rule and shall include in
such application--
(1) a State plan that satisfies the requirements of
subsection (b); and
(2) assurances of compliance satisfactory to the Secretary
with respect to the requirements of section 228.
(b) Requirements of Plan.--
(1) Lead agency.--The State plan shall identify the lead
agency to make grants under this subtitle for the State.
(2) Recruitment and retention of child care providers.--The
State plan shall describe how the lead agency will encourage
both the recruitment of qualified child care providers who are
new to the child care field and the retention of qualified
child care providers who have a demonstrated commitment to the
child care field.
(3) Notification of availability of grants and benefits.--
The State plan shall describe how the lead agency will identify
all eligible child care providers in the State and notify the
providers of the availability of grants and benefits under this
subtitle.
(4) Distribution of grants.--The State plan shall describe
how the lead agency will make grants under sections 226 and 227
to eligible child care providers in selected geographical areas
in the State in compliance with the following requirements:
(A) Selection of geographical areas.--For the
purpose of making such grants for a fiscal year, the
State shall--
(i) select a variety of geographical areas,
determined by the State, that, collectively--
(I) include urban areas, suburban
areas, and rural areas; and
(II) are areas whose residents have
diverse income levels; and
(ii) give special consideration to
geographical areas selected under this
subparagraph for the preceding fiscal year.
(B) Selection of child care providers to receive
grants.--In making grants under section 226, the State
may make grants only to eligible child care providers
in geographical areas selected under subparagraph (A),
but may give special consideration in such areas to
eligible child care providers--
(i) who have attained a higher relevant
educational credential;
(ii) who provide a specific kind of child
care services;
(iii) who provide child care services to
populations who meet specific economic
characteristics; or
(iv) who meet such other criteria as the
State may establish.
(C) Limitation.--The State shall describe how the
State will ensure that grants made under section 226 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 226--
(i) include in the report required by
section 229, 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 226 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 226.
(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
226 in accordance with the following requirements:
(A) Sufficient amounts.--The State shall
demonstrate that the amounts of individual grants to be
made under section 226 will be sufficient--
(i) to encourage child care providers to
improve their qualifications; and
(ii) to retain qualified child care
providers in the child care field.
(B) Amounts to credentialed providers.--Such grants
made to eligible child care providers who have a child
development associate credential (or equivalent) and
who are employed full-time to provide child care
services shall be in an amount that is not less than
$1,000 per year.
(C) Amounts to providers with higher levels of
education.--The State shall make such grants in amounts
greater than $1,000 per year to eligible child care
providers who have higher levels of education than the
education required for a credential such as a child
development associate credential (or equivalent),
according to the following requirements:
(i) Providers with baccalaureate degrees in
relevant fields.--An eligible child care
provider who has a baccalaureate degree in the
area of child development or early child
education shall receive a grant under section
226 in an amount that is not less than twice
the amount of the grant that is made under
section 226 to an eligible child care provider
who has an associate of the arts degree in the
area of child development or early child
education.
(ii) Providers with associate degrees.--An
eligible child care provider who has an
associate of the arts degree in the area of
child development or early child education
shall receive a grant under section 226 in an
amount that is not less than 150 percent of the
amount of the grant that is made under section
226 to an eligible child care provider who has
a child development associate credential (or
equivalent) and is employed full-time to
provide child care services.
(iii) Other providers with baccalaureate
degrees.--
(I) In general.--Except as provided
in subclause (II), an eligible child
care provider who has a baccalaureate
degree in a field other than child
development or early child education
shall receive a grant under section 226
in an amount equal to the amount of the
grant that is made under section 226 to
an eligible child care provider who has
an associate of the arts degree in the
area of child development or early child education.
(II) Exception.--If an eligible
child care provider who has such a
baccalaureate degree obtains additional
educational training in the area of
child development or early child
education, as specified by the State,
such provider shall receive a grant
under section 226 in an amount equal to
the amount of the grant that is made
under section 226 to an eligible child
care provider who has a baccalaureate
degree specified in clause (i).
(D) Amounts to full-time providers.--The State
shall make a grant under section 226 to an eligible
child care provider who works full-time in a greater
amount than the amount of the grant that is made under
section 226 to an eligible child care provider who
works part-time, based on the State definitions of
full-time and part-time work.
(E) Amounts to experienced providers.--The State
shall make grants under section 226 in progressively
larger amounts to eligible child care providers to
reflect the number of years worked as child care
providers.
(6) Distribution of child care provider scholarships.--The
State plan shall describe how the lead agency will make grants
for scholarships in compliance with section 227 and shall
specify the types of educational and training programs for
which the scholarship grants made under such section may be
used, including only programs that--
(A) are administered by institutions of higher
education that are eligible to participate in student
financial assistance programs under title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
and
(B) lead to a State or nationally recognized
credential in the area of child development or early
child education, an associate of the arts degree in the
area of child development or early child education, or
a baccalaureate degree in the area of child development
or early child education.
(7) Employer contribution.--The State plan shall describe
how the lead agency will encourage employers of child care
providers to contribute to the attainment of education goals by
eligible child care providers who receive grants under section
227.
(8) Supplementation.--The State plan shall provide
assurances that amounts received by the State to carry out
sections 226, 227, and 228 will be used only to supplement, and
not to supplant, Federal, State, and local funds otherwise
available to support existing services and activities (as of
the date the amounts are used) that--
(A) encourage child care providers to improve their
qualifications and that promote the retention of
qualified child care providers in the child care field;
or
(B) provide health benefits coverage for child care
providers.
SEC. 226. CHILD CARE PROVIDER DEVELOPMENT AND RETENTION GRANT PROGRAM.
(a) In General.--A State that receives funds allotted under section
224 and made available to carry out this section shall expend such
funds to pay for the Federal share of the cost of making grants to
eligible child care providers in accordance with this section, to
improve the qualifications and promote the retention of qualified child
care providers.
(b) Eligibility To Receive Grants.--To be eligible to receive a
grant under this section, a child care provider shall--
(1) have a child development associate credential (or
equivalent), an associate of the arts degree in the area of
child development or early child education, a baccalaureate
degree in the area of child development or early child
education, or a baccalaureate degree in an unrelated field; and
(2) be employed as a child care provider for not less than
1 calendar year, or (if the provider is employed on the date of
the eligibility determination in a child care program that
operates for less than a full calendar year) the program
equivalent of 1 calendar year, ending on the date of the
application for such grant, except that not more than 3 months
of education related to child development or to early child
education obtained during the corresponding calendar year may
be treated as employment that satisfies the requirements of
this paragraph.
(c) Preservation of Eligibility.--A State shall not take into
consideration whether a child care provider is receiving, may receive,
or may be eligible to receive any funds or benefits under any other
provision of this subtitle for purposes of selecting eligible child
care providers to receive grants under this section.
SEC. 227. CHILD CARE PROVIDER SCHOLARSHIP PROGRAM.
(a) In General.--A State that receives funds allotted under section
224 and made available to carry out this section shall expend such
funds to pay for the Federal share of the cost of making scholarship
grants to eligible child care providers in accordance with this
section, to improve their educational qualifications to provide child
care services.
(b) Eligibility Requirement for Scholarship Grants.--To be eligible
to receive a scholarship grant under this section, a child care
provider shall be employed as a child care provider for not less than 1
calendar year, or (if the provider is employed on the date of the
eligibility determination in a child care program that operates for
less than a full calendar year) the program equivalent of 1 calendar
year, ending on the date of the application for such grant.
(c) Selection of Grantees.--For purposes of selecting eligible
child care providers to receive scholarship grants under this section
and determining the amounts of such grants, a State shall not--
(1) take into consideration whether a child care provider
is receiving, may receive, or may be eligible to receive any
funds or benefits under any other provision of this subtitle, 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 subtitle, 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. 228. CHILD CARE PROVIDER HEALTH BENEFITS COVERAGE.
(a) Short Title.--This section may be cited as the ``Healthy Early
Education Workforce Grant Program Act''.
(b) Definition.--In this section, the terms ``dependent'',
``domestic partner'', and ``spouse'', used with respect to a State,
have the meanings given the terms by the State.
(c) General Authority.--A State that receives funds allotted under
section 224 and made available to carry out this section shall expend
such funds to pay for the Federal share of the cost of providing access
to affordable health benefits coverage for--
(1) eligible child care providers; and
(2) at the discretion of the State involved, the spouses,
domestic partners, and dependents of such providers.
(d) Permissible Activities.--In carrying out subsection (c), the
State may expend such funds for any of the following:
(1) To reimburse an employer of an eligible child care
provider, or the provider, for the employer's or provider's
share (or a portion of the share) of the premiums or other
costs for coverage under group or individual health plans.
(2) To offset the cost of enrolling eligible child care
providers in public health benefits plans, such as the medicaid
program under title XIX of the Social Security Act (42 U.S.C.
1396 et seq.), the State children's health insurance program
under title XXI of such Act (42 U.S.C. 1397aa et seq.), or
public employee health benefit plans.
(3) To otherwise subsidize the cost of health benefits
coverage for eligible child care providers.
(e) Eligibility Criteria for Health Benefits Coverage.--The State
may establish criteria to limit the child care providers who may
receive benefits through the allotment.
(f) Selection of Grantees.--For purposes of selecting eligible
child care providers to receive benefits under this section for a
fiscal year, a State shall give--
(1) highest priority to--
(A) providers that meet any applicable criteria
established in accordance with subsection (e) and
received such assistance during the previous fiscal
year; and
(B) at the State's discretion, the spouses,
domestic partners, and dependents of such providers;
and
(2) second highest priority to--
(A) providers that meet any applicable criteria
established in accordance with subsection (e) and are
accredited by the National Association for the
Education of Young Children or the National Association
for Family Child Care; and
(B) at the State's discretion, the spouses,
domestic partners, and dependents of such providers.
SEC. 229. ANNUAL REPORT.
A State that receives funds appropriated to carry out this subtitle
for a fiscal year shall submit to the Secretary, not later than 90 days
after the end of such fiscal year, a report--
(1) specifying the uses for which the State expended such
funds, and the aggregate amount of funds (including State
funds) expended for each of such uses;
(2) containing available data relating to grants made and
benefits provided with such funds, including--
(A) the number of eligible child care providers who
received such grants and benefits;
(B) the amounts of such grants and benefits;
(C) any other information that describes or
evaluates the effectiveness of this subtitle;
(D) the particular geographical areas selected
under section 225 for the purpose of making such
grants;
(E) with respect to grants made under section 226--
(i) the number of years grant recipients
have been employed as child care providers;
(ii) the level of training and education of
grant recipients;
(iii) to the extent practicable and
available to the State, detailed information
regarding the salaries and other compensation
received by grant recipients to provide child
care services before, during, and after
receiving such grants;
(iv) the number of children who received
child care services provided by grant
recipients;
(v) information on family demographics of
such children;
(vi) the types of settings described in
subparagraphs (A), (B), and (C) of section
222(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 227--
(i) the number of years grant recipients
have been employed as child care providers;
(ii) the level of training and education of
grant recipients;
(iii) to the extent practicable and
available to the State, detailed information
regarding the salaries and other compensation
received by grant recipients to provide child
care services before, during, and after
receiving such grants;
(iv) the types of settings described in
subparagraphs (A), (B), and (C) of section
222(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. 230. EVALUATION OF HEALTH BENEFITS PROGRAMS BY SECRETARY.
(a) Evaluation.--The Secretary shall conduct an evaluation of
several State programs carried out with grants made under section 228,
representing various approaches to raising the rate of child care
providers with health benefits coverage.
(b) Assessment of Impacts.--In evaluating State programs under
subsection (a), the Secretary may consider any information appropriate
to measure the success of the programs, and shall assess the impact of
the programs on the following:
(1) The rate of child care providers with health benefits
coverage.
(2) The take-up rate by eligible child care providers.
(3) The turnover rate in the child care field.
(4) The average wages paid to a child care provider.
(c) Report.--Not later than 3 years after the date of enactment of
this subtitle, the Secretary shall prepare and submit a report to
Congress containing the results of the evaluation conducted under
subsection (a), together with recommendations for strengthening
programs carried out with grants made under section 228.
SEC. 231. AUTHORIZATION OF APPROPRIATIONS.
(a) Child Care Provider Development, Retention, and Scholarships.--
There are authorized to be appropriated to carry out the activities
described in sections 226 and 227 $500,000,000 for fiscal year 2004 and
such sums as may be necessary for each of fiscal years 2005 through
2008.
(b) Child Care Provider Health Benefits Coverage.--There is
authorized to be appropriated to carry out the activities described in
section 228 $200,000,000 for fiscal year 2004 and such sums as may be
necessary for each of fiscal years 2005 through 2008.
Subtitle C--Child Care Construction and Renovation Incentive Grants
SEC. 241. SHORT TITLE.
This subtitle may be cited as the ``Child Care Construction and
Renovation Incentive Grants Act''.
SEC. 242. USE OF COMMUNITY DEVELOPMENT BLOCK GRANTS TO ESTABLISH CHILD
CARE FACILITIES.
Section 105(a) of the Housing and Community Development Act of 1974
(42 U.S.C. 5305(a)) is amended--
(1) in paragraph (22), by striking ``and'' at the end;
(2) in paragraph (23), by striking the period at the end
and inserting a semicolon;
(3) in paragraph (25), by striking the period at the end
and inserting ``; and''; and
(4) by adding at the end the following:
``(26) the construction and renovation of child care
facilities.''.
SEC. 243. INSURANCE FOR MORTGAGES ON NEW AND REHABILITATED CHILD CARE
FACILITIES.
Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is
amended by adding at the end the following:
``SEC. 257. MORTGAGE INSURANCE FOR CHILD CARE FACILITIES.
``(a) Definitions.--In this section:
``(1) Child care facility.--The term `child care
facility'--
``(A) means a public or private facility that--
``(i) has as its purpose the care and
development of--
``(I) children who are less than 16
years of age; or
``(II) school-age children and
youth during non-school hours; and
``(ii) is operated in accordance with all
applicable State and local laws and
regulations; and
``(B) does not include any facility for school-age
children that is primarily for use during normal school
hours.
``(2) Equipment.--The term `equipment' includes--
``(A) machinery, utilities, and built-in equipment,
and any necessary enclosure or structure to house them;
and
``(B) any other items necessary for the functioning
of a particular facility as a child care facility,
including necessary furniture, books, and curricular and program
materials.
``(3) First mortgage.--The term `first mortgage'--
``(A) means such classes of first liens as are
commonly given to secure advances (including advances
during construction) on, or the unpaid purchase price
of, real estate under the laws of the State in which
the real estate is located, together with the credit
instrument or instruments (if any) secured thereby; and
``(B) includes any mortgage in the form of 1 or
more trust mortgages or mortgage indentures or deeds of
trust, securing notes, bonds, or other credit
instruments, that, by the same instrument or by a
separate instrument, creates a security interest in
initial equipment, whether or not attached to the
realty.
``(4) Mortgage.--The term `mortgage' means a first mortgage
on real estate in fee simple, or on the interest of either the
lessor or lessee thereof under a lease having a period of not
less than 7 years to run beyond the maturity date of the
mortgage.
``(5) Mortgagor.--The term `mortgagor' has the meaning
given the term in section 207(a).
``(b) Insurance of Mortgages.--In order to facilitate the
establishment and rehabilitation of child care facilities, the
Secretary may--
``(1) insure a mortgage that is secured by a property or
project that is--
``(A) a new child care facility, including a new
addition to an existing child care facility (regardless
of whether the existing facility is being
rehabilitated); or
``(B) a substantially rehabilitated child care
facility, including equipment to be used in the
operation of the facility; and
``(2) make a commitment to insure any mortgage described in
paragraph (1) before the date of execution or disbursement of
the mortgage.
``(c) Terms and Conditions.--
``(1) Eligible child care facilities.--Each mortgage
insured under this section shall be secured by a child care
facility that the Secretary determines, during the 12-month
period preceding the date on which the commitment to insure the
mortgage is issued under this section, complies or will be in
compliance within 12 months, with any laws, standards, and
requirements applicable to child care facilities under the laws
of the State, municipality, or other unit of general local
government in which the facility is or is to be located.
``(2) Approved mortgagor.--
``(A) In general.--Each mortgage insured under this
section shall be executed by a mortgagor approved by
the Secretary.
``(B) Regulation.--The Secretary may--
``(i) require an approved mortgagor who
executes a mortgage under subparagraph (A) to
be regulated with respect to charges and
methods of financing and, if the mortgagor is a
corporate entity, with respect to capital
structure and rate of return; and
``(ii) as an aid to the regulation of any
mortgagor under clause (i), make such contracts
with and acquire for not more than $100 such
stock or interest in such mortgagor as the
Secretary considers to be necessary.
``(C) Stock or interest.--Any stock or interest
purchased under subparagraph (B)(ii) shall be--
``(i) paid for out of the General Insurance
Fund; and
``(ii) redeemed by the mortgagor at par
upon the termination of all obligations of the
Secretary under the insurance.
``(3) Principal obligation.--Each mortgage insured under
this section shall involve a principal obligation in an amount
not to exceed 90 percent of the estimated value of the property
or project, or 95 percent of the estimated value of the
property or project in the case of a mortgagor that is a
private nonprofit corporation or association (as defined
pursuant to section 221(d)(3)), including--
``(A) equipment to be used in the operation of the
facility when the proposed improvements are completed
and the equipment is installed; or
``(B) a solar energy system (as defined in
subparagraph (3) of the last paragraph of section 2(a))
or residential energy conservation measures (as defined
in subparagraphs (A) through (G) and (I) of section
210(11) of the National Energy Conservation Policy
Act), in cases in which the Secretary determines that
such measures are in addition to those required under
the minimum property standards and will be cost-effective over the life
of the measure.
``(4) Amortization and interest.--Each mortgage insured
under this section shall--
``(A) provide for complete amortization by periodic
payments under such terms as the Secretary shall
prescribe;
``(B) have a maturity date satisfactory to the
Secretary, but in no event longer than 25 years; and
``(C) bear interest at such rate as may be agreed
upon by the mortgagor and the mortgagee, and the
Secretary shall not issue any regulations or establish
any terms or conditions that interfere with the ability
of the mortgagor and mortgagee to determine the
interest rate.
``(5) Release.--The Secretary may consent to the release of
a part or parts of the mortgaged property or project from the
lien of any mortgage insured under this section upon such terms
and conditions as the Secretary may prescribe.
``(6) Mortgage insurance terms.--Subsections (d), (e), (g),
(h), (i), (j), (k), (l), and (n) of section 207 apply to any
mortgage insured under this section, except that all references
in such subsections to section 207 shall be construed, for
purposes of mortgage insurance under this section, to refer to
this section.
``(d) Mortgage Insurance for Fire Safety Equipment Loans.--
``(1) Authority.--The Secretary may, upon such terms and
conditions as the Secretary may prescribe, make commitments to
insure and insure loans made by financial institutions or other
approved mortgagees to child care facilities to provide for the
purchase and installation of fire safety equipment necessary
for compliance with the 1967 edition of the Life Safety Code of
the National Fire Protection Association (or any subsequent
edition specified by the Secretary of Health and Human
Services).
``(2) Loan requirements.--To be eligible for insurance
under this subsection a loan shall--
``(A) not exceed the estimate by the Secretary of
the reasonable cost of the equipment fully installed;
``(B) bear interest at such rate as may be agreed
upon by the mortgagor and the mortgagee;
``(C) have a maturity date satisfactory to the
Secretary;
``(D) be made by a financial institution or other
mortgagee approved by the Secretary as eligible for
insurance under section 2 or a mortgagee approved under
section 203(b)(1);
``(E) comply with other such terms, conditions, and
restrictions as the Secretary may prescribe; and
``(F) be made with respect to a child care facility
that the Secretary determines, during the 12-month
period preceding the date on which the commitment to
insure the mortgage is issued under this subsection,
complies or will be in compliance within 12 months,
with any laws, standards, and requirements applicable
to child care facilities under the laws of the State,
municipality, or other unit of general local government
in which the facility is or is to be located.
``(3) Insurance requirements.--
``(A) Section 2.--Subsections (c), (d), and (h) of
section 2 shall apply to any loan insured under this
subsection, except that all references in such
subsections to `this section' or `this title' shall be
construed, for purposes of this subsection, to refer to
this subsection.
``(B) Section 220.--Paragraphs (5), (6), (7), (9),
and (10) of section 220(h) shall apply to any loan
insured under this subsection, except that all
references in such paragraphs to home improvement loans
shall be construed, for purposes of this subsection, to
refer to loans under this subsection.
``(e) Schedules and Deadlines.--The Secretary shall establish
schedules and deadlines for the processing and approval (or provision
of notice of disapproval) of applications for mortgage insurance under
this section.
``(f) Limitation on Insurance Authority.--
``(1) Termination.--No mortgage may be insured under this
section or section 223(h) after September 30, 2007, except
pursuant to a commitment to insure issued on or before such
date.
``(2) Aggregate principal amount limitation.--
``(A) In general.--The aggregate principal amount
of mortgages for which the Secretary enters into
commitments to insure under this section or section
223(h) on or before the date described in paragraph (1)
may not exceed $2,000,000,000.
``(B) Report.--If, on the date described in
paragraph (1), the aggregate insurance authority
provided under this paragraph has not been fully used,
the Secretary of the Treasury shall submit to Congress
a report evaluating the need for continued mortgage
insurance under this section.
``(g) Nondiscrimination Requirement.--
``(1) In general.--A child care facility receiving
assistance under this title may not discriminate on the basis
of race, color, or national origin (to the extent provided in
title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.)), religion (subject to subparagraph (B)), national
origin, sex (to the extent provided in title IX of the
Education Amendments of 1972 (20 U.S.C. 1681 et seq.)), or
disability (to the extent provided in section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794)), under any program
or activity receiving Federal financial assistance under this
title.
``(2) Facilities of religious organizations.--The
prohibition with respect to religion under paragraph (1) shall
not apply to a child care facility that is controlled by, or
that is closely identified with, the tenets of a particular
religious organization, if the application of this paragraph
would not be consistent with the religious tenets of such
organization.
``(h) Liability Insurance.--A child care provider operating a child
care facility assisted under this section or section 223(h) shall
obtain and maintain liability insurance in such amounts and subject to
such requirements as the Secretary considers to be appropriate.
``(i) Small Purpose Loans.--
``(1) In general.--To the extent that amounts are made
available pursuant to subsection (l), the Secretary shall make
loans, directly or indirectly, to providers of child care
facilities for reconstruction or renovation of such facilities,
in accordance with this subsection.
``(2) Requirements.--A loan under this subsection--
``(A) may be made only for a child care facility
that is financially and operationally viable, as
determined under standards established by the
Secretary;
``(B) may not have a term to maturity exceeding 7
years;
``(C) shall bear interest at a rate established by
the Secretary; and
``(D) shall be subject to such other terms and
conditions as the Secretary may establish by
regulation.
``(3) Aggregate loan amount.--The aggregate amount of loans
under this subsection to a single provider may not exceed
$30,000.
``(j) Notification.--The Secretary shall take such actions as may
be necessary to publicize the availability of the programs for mortgage
insurance under this section and section 223(h), and the loan program
under subsection (i) of this section, in a manner that ensures that
information concerning such programs will be available to child care
providers throughout the United States.
``(k) Regulations.--The Secretary shall--
``(1) issue any regulations necessary to carry out this
section; and
``(2) in carrying out paragraph (1), consult with the
Secretary of Health and Human Services with respect to any
aspects of the regulations regarding child care facilities.
``(l) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $30,000,000 for fiscal year
2004, to remain available until expended, of which not more than 10
percent may be used for loans under subsection (i).''.
SEC. 244. INSURANCE FOR MORTGAGES FOR ACQUISITION OR REFINANCING DEBT
OF EXISTING CHILD CARE FACILITIES.
(a) In General.--Section 223 of the National Housing Act (12 U.S.C.
1715n) is amended by adding at the end the following:
``(h) Mortgage Insurance for Purchase or Refinancing of Existing
Child Care Facilities.--
``(1) Definitions.--In this subsection, the terms that are
defined in section 257(a) have the same meanings as in that
section.
``(2) Authority.--Notwithstanding any other provision of
this Act, the Secretary may insure under any section of this
title a mortgage executed in connection with--
``(A) the purchase or refinancing of an existing
child care facility;
``(B) the purchase of a structure to serve as a
child care facility; or
``(C) the refinancing of existing debt of an
existing child care facility.
``(3) Purchase of existing facilities and structures.--In
the case of the purchase under this subsection of an existing
child care facility or purchase of an existing structure to
serve as such a facility, the Secretary shall prescribe any
terms and conditions that the Secretary considers necessary to
ensure that--
``(A) the facility or structure purchased continues
to be used as a child care facility; and
``(B) the facility complies with any laws,
standards, and requirements applicable to child care
facilities under the laws of the State, municipality,
or other unit of general local government in which the
facility is or is to be located.
``(4) Refinancing of existing facilities.--In the case of
refinancing of an existing child care facility, the Secretary
shall prescribe any terms and conditions that the Secretary
considers necessary to ensure that--
``(A) the refinancing is used to lower the monthly
debt service costs (taking into account any fees or
charges connected with such refinancing) of the
existing facility;
``(B) the proceeds of any refinancing will be
employed only to retire the existing indebtedness and
pay the necessary cost of refinancing on the existing
facility;
``(C) the existing facility is economically viable;
and
``(D) the facility receives a certification of
compliance under section 258(c).
``(5) Limitation on insurance authority.--The authority of
the Secretary to enter into commitments to insure mortgages
under this subsection is subject to section 257(f).''.
SEC. 245. STUDY OF AVAILABILITY OF SECONDARY MARKETS FOR MORTGAGES ON
CHILD CARE FACILITIES.
(a) Study.--The Secretary of the Treasury shall conduct a study of
the secondary mortgage markets to determine--
(1) whether such a market exists for purchase of mortgages
eligible for insurance under sections 223(h) and 257 of the
National Housing Act (as added by this Act);
(2) whether such a market would affect the availability of
credit available for development of child care facilities or
would lower development costs of such facilities; and
(3) the extent to which such a market or other activities
to provide credit enhancement for loans for child care
facilities is needed to meet the demand for such facilities.
(b) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary of the Treasury shall submit to Congress a
report regarding the results of the study conducted under this section.
SEC. 246. TECHNICAL AND FINANCIAL ASSISTANCE GRANTS.
(a) Definitions.--In this section:
(1) Child care facility.--The term ``child care facility''
has the meaning given that term in section 257(a) of the
National Housing Act, as added by section 243.
(2) Eligible intermediary.--The term ``eligible
intermediary'' means a private, nonprofit intermediary
organization that has demonstrated experience in--
(A) financing the construction and renovation of
physical facilities;
(B) providing technical and financial assistance to
child care providers or other similar entities;
(C) working with small businesses; and
(D) securing private sources for capital financing;
and
(3) Eligible recipient.--The term ``eligible recipient''
means any--
(A) existing or start-up center-based or home-based
child care provider; and
(B) organization in the process of establishing a
center-based or home-based child care program or
otherwise seeking to provide child care services.
(4) Equipment.--The term ``equipment'' has the meaning
given that term in section 257(a) of the National Housing Act,
as added by section 243.
(b) Grant Authority.--The Secretary of Housing and Urban
Development, in consultation with the Secretary of Health and Human
Services, may award grants on a competitive basis in accordance with
this section to eligible intermediaries for use in accordance with
subsections (e) and (f).
(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 or rural areas.
(e) Use of Funds.--
(1) Revolving loan fund.--Each eligible intermediary that
receives a grant under this section shall deposit the grant
amount into a child care revolving loan fund established by the
eligible intermediary.
(2) Payments from fund.--Subject to subsection (f), from
amounts deposited into the revolving loan 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 for the
acquisition or improvement of child care facilities or
equipment.
(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) Allocation of Funds.--Of the amounts distributed from the
revolving loan fund of an eligible intermediary under subsection (e)(2)
in each fiscal year--
(1) not less than 50 percent shall be used for the
renovation or construction of child care facilities or the
acquisition of equipment by eligible recipients, except that
the amount made available to any eligible recipient under this
paragraph may not exceed 40 percent of the total costs incurred
by the eligible recipient in connection with such renovation,
construction, or acquisition; and
(2) the amount remaining after distribution under paragraph
(1), shall be used to provide direct assistance to eligible
recipients in obtaining public or private financing for the
renovation or construction of child care facilities and the
acquisition of equipment, including developing and implementing
financing resources, options, and plans for those recipients.
(g) Davis Bacon Act.--Subchapter IV of chapter 31 of title 40,
United States Code (popularly known as the Davis-Bacon Act) shall apply
to actions taken under this Act.
(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2004 through 2008.
Subtitle D--Business Child Care Incentive Grant Program
SEC. 251. BUSINESS CHILD CARE INCENTIVE 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 children
less than 5 years of age in 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
businesses located in the State to enable the businesses to
establish and operate child care programs. Such assistance may
include--
(A) technical assistance in the establishment of a
child care program;
(B) assistance for the startup costs related to a
child care program;
(C) assistance for the training of child care
providers;
(D) scholarships for low-income wage earners;
(E) the provision of services to care for sick
children or to provide care to school aged children;
(F) the entering into of contracts with local
resource and referral or local health departments;
(G) assistance for care for children with
disabilities; or
(H) assistance for any other activity determined
appropriate by the State.
(2) Application.--To be eligible to receive assistance from
a State under this section, a business 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.--
(A) In general.--In providing assistance under this
section, a State shall give priority to applicants that
desire to form a consortium to provide child care in a
geographic area within the State where such care is not
generally available or accessible.
(B) Consortium.--For purposes of subparagraph (A),
a consortium shall be made up of 2 or more entities
that may include businesses, nonprofit agencies or
organizations, local governments, or other appropriate
entities.
(4) Limitation.--With respect to grant funds received under
this section, a State may not provide in excess of $100,000 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 an entity receiving
assistance in carrying out activities under this section, the entity
will make available (directly or through donations from public or
private entities) non-Federal contributions to such costs in an amount
equal to--
(1) for the first fiscal year in which the entity receives
such assistance, not less than 50 percent of such costs ($1 for
each $1 of assistance provided to the entity under the grant);
(2) for the second fiscal year in which the entity receives
such assistance, not less than 66\2/3\ percent of such costs
($2 for each $1 of assistance provided to the entity under the
grant); and
(3) for the third fiscal year in which the entity receives
such assistance, not less than 75 percent of such costs ($3 for
each $1 of assistance provided to the entity under the grant).
(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) Administration.--
(1) State responsibility.--A State shall have
responsibility for administering a grant awarded for the State
under this section and for monitoring entities that receive
assistance under such grant.
(2) Audits.--A State shall require each entity receiving
assistance under the grant awarded under this section to
conduct an annual audit with respect to the activities of the
entity. Such audits shall be submitted to the State.
(3) Misuse of funds.--
(A) Repayment.--If the State determines, through an
audit or otherwise, that an entity 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 an entity 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.
(h) 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 entities to meet the
child care needs of communities within States;
(ii) the kinds of partnerships 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 funded
through entities that received assistance through a
grant awarded under this section 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).
(i) Definition.--In this section, the term ``business'' means an
employer who employed an average of at least 2 employees on business
days during the preceding calendar year.
(j) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section, $60,000,000 for the period of fiscal
years 2004 through 2006.
(2) Evaluations and administration.--With respect to the
total amount appropriated for such period in accordance with
this subsection, not more than $5,000,000 of that amount may be
used for expenditures related to conducting evaluations
required under, and the administration of, this section.
(k) Termination of Program.--The program established under
subsection (a) shall terminate on September 30, 2007.
TITLE III--PRE-SCHOOL, IN-SCHOOL, AND AFTERSCHOOL ASSISTANCE
Subtitle A--Universal Prekindergarten Act
SEC. 301. SHORT TITLE.
This subtitle may be cited as the ``Universal Prekindergarten
Act''.
SEC. 302. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds the following:
(1) High-quality prekindergarten programs help children to
succeed academically. Children who attended a high-quality
prekindergarten program have higher academic achievement, lower
rates of grade retention, are less likely to be placed in
special education, and graduate from high school at higher
rates than those who did not.
(2) Early childhood education can reduce juvenile
delinquency rates. A 15-year study following 989 low-income
children who attended high-quality, comprehensive
prekindergarten found that they were 33 percent less likely to
be arrested, and 42 percent less likely to be arrested for a
violent crime, than children in the control group.
(3) There is currently a drastic shortage of affordable,
quality early education programs that are accessible for
working families.
(4) Full-day, full-calendar-year universal prekindergarten
programs would ensure all children 3, 4, and 5 years old have
access to school readiness programs and quality child care.
(5) Research shows that investing in quality
prekindergarten programs will provide savings in the form of
reduced need for remedial education, decreased crime rates,
lower school dropout rates, and decreased welfare dependence.
(b) Purpose.--The purpose of this subtitle is to ensure that all
children 3, 4, and 5 years old have access to a high-quality full-day,
full-calendar-year prekindergarten program by providing grants to
States to assist in developing a universal prekindergarten program that
is voluntary and free-of-charge.
SEC. 303. PREKINDERGARTEN GRANT PROGRAM AUTHORIZATION.
The Secretary of Health and Human Services, in consultation with
the Secretary of Education, shall provide grants to an agency
designated by each State (hereafter in this subtitle referred to as the
``designated State agency'') for the development of high-quality full-
day, full-calendar-year universal prekindergarten programs for all
children 3, 4, and 5 years old in the State.
SEC. 304. STATE REQUIREMENTS.
(a) State Matching Funds.--Federal funds made available to a
designated State agency under this subtitle shall be matched at least
20 percent by State funds.
(b) State Application.--To be eligible to receive funds under this
subtitle, a designated State agency shall submit an application at such
time, in such manner, and containing such information as the Secretary
of Health and Human Services may require. The application shall include
the following:
(1) How the designated State agency, in overseeing the
State's universal prekindergarten program, will coordinate with
other State agencies responsible for early childhood education
and health programs.
(2) A State plan to establish and implement a statewide
universal prekindergarten program, in accordance with
subsection (c).
(c) State Plan.--The State plan required under subsection (b)(2)
shall include each of the following:
(1) A description of the universal prekindergarten program
that will be established and how it will support children's
cognitive, social, emotional, and physical development.
(2) A statement of the goals for universal prekindergarten
programs and how program outcomes will be measured.
(3) A description of--
(A) how funding will be distributed to eligible
prekindergarten program providers based on the need for
early childhood education in each geographical area
served by such providers; and
(B) how the designated State agency will involve
representatives of early childhood program providers
(including child care providers, Head Start programs,
and State and local agencies) that sponsor programs
addressing children 3, 4, and 5 years old.
(4) A description of how the designated State agency will
coordinate with existing State-funded prekindergarten programs,
federally funded programs (such as Head Start programs), public
school programs, and child care providers.
(5) A description of how an eligible prekindergarten
program provider may apply to the designated State agency for
funding under this Act.
(6) A plan to address the shortages of qualified early
childhood education teachers, including how to increase such
teachers' compensation to be comparable to that of public
school teachers.
(7) How the designated State agency will provide ongoing
professional development opportunities to help increase the
number of teachers in early childhood programs who meet the
State's education or credential requirements for
prekindergarten teachers.
(8) A plan to address how the universal prekindergarten
program will meet the needs of children with disabilities,
limited English proficiency, and other special needs.
(9) A plan to provide transportation to children to and
from the universal prekindergarten program.
(10) A description of how the State will provide the 20
percent match of Federal funds.
(d) Administration.--A designated State agency may not use more
than 5 percent of a grant under this subtitle for costs associated with
State administration of the program under this subtitle.
SEC. 305. LOCAL REQUIREMENTS.
(a) In General.--An eligible prekindergarten program provider
receiving funding under this subtitle shall--
(1) maintain a maximum class size of 20 children;
(2) maintain a ratio of not more than 10 children for each
member of the teaching staff;
(3)(A) ensure that all prekindergarten teachers meet the
requirements for teachers at a State-funded prekindergarten
program under an applicable State law; and
(B) document that the State is demonstrating significant
progress in assisting prekindergarten teachers on working
toward a bachelor of arts degree with training in early
childhood development or early childhood education;
(4)(A) be accredited by a national organization with
demonstrated experience in accrediting prekindergarten
programs; or
(B) provide assurances that it shall obtain such
accreditation not later than 3 years after first receiving
funding under this subtitle; and
(5) meet applicable State and local child care licensing
health and safety standards.
(b) Local Application.--Eligible prekindergarten program providers
desiring to receive funding under this subtitle shall submit an
application to the designated State agency overseeing funds under this
subtitle containing the following:
(1) A description of the prekindergarten program.
(2) A statement of the demonstrated need for a program, or
an enhanced or expanded program, in the area served by the
eligible prekindergarten program provider.
(3) A description of the age-appropriate and
developmentally appropriate educational curriculum to be
provided that will help children be ready for school and assist
them in the transition to kindergarten.
(4) A description of how the eligible prekindergarten
program provider will collaborate with existing community-based
child care providers and Head Start programs.
(5) A description of how students and families will be
assisted in obtaining supportive services available in their
communities.
(6) A plan to promote parental involvement in the
prekindergarten program.
(7) A description of how teachers will receive ongoing
professional development in early childhood development and
education.
(8) An assurance that prekindergarten programs receiving
funds under this subtitle provide the data required in section
7(c).
SEC. 306. PROFESSIONAL DEVELOPMENT SET-ASIDE.
(a) In General.--A designated State agency may set aside up to 5
percent of a grant under this subtitle for ongoing professional
development activities for teachers and staff at prekindergarten
programs that wish to participate in the universal prekindergarten
grant program under this subtitle. A designated State agency using the
set-aside for professional development must include in its application
the following:
(1) A description of how the designated State agency will
ensure that eligible prekindergarten program providers in a
range of settings (including child care providers, Head Start
programs, and schools) will participate in the professional
development programs.
(2) An assurance that, in developing its application and in
carrying out its program, the professional development provider
has consulted, and will consult, with relevant agencies, early
childhood organizations, early childhood education experts, and
early childhood program providers.
(3) A description of how the designated State agency will
ensure that the professional development is ongoing and
accessible to educators in all geographic areas of the State,
including by the use of advanced educational technologies.
(4) A description of how the designated State agency will
ensure that such set-aside funds will be used to pay the cost
of additional education and training.
(5) A description of how the designated State agency will
work with other agencies and institutions of higher education
to provide scholarships and other financial assistance to
prekindergarten staff.
(6) A description of how the State educational agency will
provide a financial incentive, such as a financial stipend or a
bonus, to educators who participate in and complete such
professional development.
(7) A description of how the professional development
activities will be carried out, including the following:
(A) How programs and educators will be selected to
participate.
(B) How professional development providers will be
selected, based on demonstrated experience in providing
research-based professional development to early
childhood educators.
(C) The types of research-based professional
development activities that will be carried out in all
domains of children's physical, cognitive, social, and
emotional development and on early childhood pedagogy.
(D) How the program will train early childhood
educators to meet the diverse educational needs of
children in the community, especially children who have
limited English proficiency, disabilities, and other
special needs.
(E) How the program will coordinate with and build
upon, but not supplant or duplicate, early childhood
education professional development activities that
exist in the community.
(b) Uses of Funds.--Funds set aside under this section may be used
for ongoing professional development--
(1) to provide prekindergarten teachers and staff with the
knowledge and skills for the application of recent research on
child cognitive, social, emotional, and physical development,
including language and literacy development, and on early
childhood pedagogy;
(2) to provide the cost of education needed to obtain a
credential or degree with specific training in early childhood
development or education;
(3) to work with children who have limited English
proficiency, disabilities, and other special needs; and
(4) to select and use developmentally appropriate screening
and diagnostic assessments to improve teaching and learning and
make appropriate referrals for services to support
prekindergarten children's development and learning.
SEC. 307. REPORTING.
(a) Report by Secretary.--For each year in which funding is
provided under this subtitle, the Secretary of Health and Human
Services shall submit an annual report to the Congress on the
implementation and effectiveness of the universal prekindergarten
program under this subtitle.
(b) Report by Designated State Agency.--Each designated State
agency that provides grants to eligible prekindergarten program
providers under this subtitle shall submit to the Secretary an annual
report on the implementation and effectiveness of the programs in the
State supported under this subtitle. Such report shall contain such
additional information as the Secretary may reasonably require.
(c) Report by Grant Recipient.--Each eligible prekindergarten
program provider that receives a grant under this subtitle shall submit
to the designated State agency an annual report that includes, with
respect to the program supported by such grant, the following:
(1) A description of the type of program and a statement of
the number and ages of children served by the program, as well
as the number and ages of children with a disability or a
native language other than English.
(2) A description of the qualifications of the program
staff and the type of ongoing professional development provided
to such staff.
(3) A statement of all sources of Federal, State, local,
and private funds received by the program.
(4) A description of the curricula, materials, and
activities used by the program to support early childhood
development and learning.
(5) Such other information as the designated State agency
may reasonably require.
SEC. 308. FEDERAL FUNDS SUPPLEMENTARY.
Funds made available under this subtitle may not be used to
supplant other Federal, State, local, or private funds that would, in
the absence of such Federal funds, be made available for the program
assisted under this subtitle.
SEC. 309. DEFINITIONS.
In this subtitle:
(1) The term ``eligible prekindergarten program provider''
means a prekindergarten program provider that is--
(A) a school;
(B) supported, sponsored, supervised, or carried
out by a local educational agency;
(C) a Head Start program; or
(D) a child care provider.
(2) The term ``prekindergarten program'' means a program
serving children 3, 4, and 5 years old that supports children's
cognitive, social, emotional, and physical development and
helps prepare those children for the transition to
kindergarten.
(3) The term ``local educational agency'' has the meaning
given that term in the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6301 et seq.).
(4) The term ``prekindergarten teacher'' means an
individual who has received, or is working toward, a bachelor
of arts degree in early childhood education.
SEC. 310. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
subtitle--
(1) $10,000,000,000 for fiscal year 2003;
(2) $20,000,000,000 for fiscal year 2004;
(3) $30,000,000,000 for fiscal year 2005;
(4) $40,000,000,000 for fiscal year 2006; and
(5) $50,000,000,000 for fiscal year 2007.
Subtitle B--Universal Free School Breakfast Program
SEC. 311. UNIVERSAL FREE SCHOOL BREAKFAST PROGRAM.
(a) Free Breakfast and Universal Eligibility.--Section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773) is amended to read as
follows:
``SEC. 4. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
``(a) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to enable the Secretary to
carry out a program to assist States and the Department of Defense to
initiate, maintain, or expand nonprofit breakfast programs to provide
free breakfasts to school children without regard to family income in
all schools which make application for participation and agree to carry
out a nonprofit free breakfast program in accordance with this Act.
Appropriations and expenditures for this Act shall be considered Health
and Human Services functions for budget purposes rather than functions
of Agriculture.
``(b) Apportionment to States.--
``(1)(A) In general.--The Secretary shall make breakfast
payments to each State educational agency each fiscal year, at
such times as the Secretary may determine, from the sums
appropriated for such purpose, in an amount equal to the
product obtained by multiplying--
``(i) the number of breakfasts served free during
such fiscal year to children in schools in such States
which participate in the school breakfast program under
agreements with such State educational agency; by
``(ii) the national breakfast payment as prescribed
in paragraph (2) of this subsection.
``(B) Agreements.--The agreements described in subparagraph
(A)(i) shall be permanent agreements that may be amended as
necessary. Nothing in the preceding sentence shall be construed
to limit the ability of the State educational agency to suspend
or terminate any such agreement in accordance with regulations
prescribed by the Secretary.
``(2) National breakfast payment.--The national payment for
each breakfast shall be $1.40 (as adjusted each July 1 pursuant
to section 11(a)(3)(B) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1759a(a)(3)(B)).
``(3) Limitation.--No breakfast payment may be made under
this subsection for any breakfast served by a school unless
such breakfast consists of a combination of foods which meet
the minimum nutritional requirements prescribed by the
Secretary under subsection (e) of this section.
``(4) Nutrition quality adjustment.--The Secretary shall
increase by 6 cents the annually adjusted payment for each
breakfast served under this Act and section 17 of the Richard
B. Russell National School Lunch Act. These funds shall be used
to assist States, to the extent feasible, in improving the
nutritional quality of the breakfasts.
``(5) Agricultural commodities.--Notwithstanding any other
provision of law, whenever stocks of agricultural commodities
are acquired by the Secretary or the Commodity Credit
Corporation and are not likely to be sold by the Secretary or
the Commodity Credit Corporation or otherwise used in programs
of commodity sale or distribution, the Secretary shall make
such commodities available to school food authorities and
eligible institutions serving breakfasts under this Act in a
quantity equal in value to not less than 3 cents for each
breakfast served under this Act.
``(6) Effect on expenditures.--Expenditures of funds from
State and local sources for the maintenance of the breakfast
program shall not be diminished as a result of funds or
commodities received under paragraph (4) or (5).
``(c) State Disbursement to Schools.--Funds paid to any State
during any fiscal year for the purpose of this section shall be
disbursed by the State educational agency, in accordance with such
agreements approved by the Secretary as may be entered into by such
State agency and the schools in the State, to those schools in the
State which the State educational agency, determines are eligible to
participate in the school breakfast program.
``(d) Participation by Schools.--
``(1) Requirements for participation.--To be eligible to
participate in the school breakfast program under this section,
a school food authority shall--
``(A) agree to serve all breakfasts at no charge to
all students who wish to participate without regard to
family income in all participating schools; and
``(B) meet all other requirements that the
Secretary may reasonably establish.
``(2) Start-up assistance.--The Secretary is authorized to
provide additional assistance to schools not participating in
the school breakfast program prior to the enactment of the
Family and Workplace Balancing Act of 2004 in order to assist
such schools to begin participation in the school breakfast program
under this section.
``(3) State educational agency assistance.--Each State
educational agency shall assist schools not participating in
the school breakfast program prior to the enactment of the
Family and Workplace Balancing Act of 2004 to enter into
agreements with such agencies in order to participate in the
school breakfast program under this section.
``(e) Nutritional and Other Program Requirements.--
``(1) Minimum nutritional requirements.--Breakfasts served
by schools participating in the school breakfast program under
this section shall consist of a combination of foods and shall
meet minimum nutritional requirements prescribed by the
Secretary on the basis of tested nutritional research, except
that the minimum nutritional requirements shall be measured by
not less than the weekly average of the nutrient content of
school breakfasts.
``(2) Technical assistance and training.--The Secretary
shall provide through State educational agencies technical
assistance and training, including technical assistance and
training in the preparation of foods high in complex
carbohydrates and lower-fat versions of foods commonly used in
the school breakfast program established under this section, to
schools participating in the school breakfast program to assist
the schools in complying with the nutritional requirements
prescribed by the Secretary pursuant to paragraph (1) and in
providing appropriate meals to children with medically
certified special dietary needs.
``(3) Option versus serve.--At the option of a local school
food authority, a student in a school under the authority that
participates in the school breakfast program under this Act may
be allowed to refuse not more than one item of a breakfast that
the student does not intend to consume. A refusal of an offered
food item shall not affect the amount of payments made under
this Act to a school for the breakfast.''.
(b) Technical Amendments.--
(1) Child nutrition act of 1966.--Section 20 of the Child
Nutrition Act of 1966 (42 U.S.C. 1789) is amended by striking
subsection (b) and redesignating subsections (c) through (e) as
subsections (b) through (d), respectively.
(2) Richard b. russell national school lunch act.--The
Richard B. Russell National School Lunch Act is amended--
(A) in section 9(b)--
(i) in paragraph (2)(C)(ii), by striking
``or breakfasts''; and
(ii) in paragraph (6)(A), by striking ``and
breakfast'';
(B) in section 11(a)(1)--
(i) in subparagraph (C), by striking ``or
breakfasts'' each place it appears;
(ii) in subparagraph (C)(i)(I), by striking
``or in the case of a school'' and all that
follows through ``4 successive school years'';
(iii) in subparagraph (D)(iii), by striking
``or for free and reduced price lunches and
breakfasts'';
(iv) in subparagraph (D)(iv), by striking
``or school breakfast'';
(v) in subparagraph (E)(i)(I) by striking
``or in the case of a school'' and all that
follows through ``4 successive school years'';
and
(vi) in subparagraph (E)(i)(II)--
(I) by striking ``or breakfasts''
both places it appears; and
(II) by striking ``or school
breakfast'';
(C) in section 11(a)(3)(A), by striking clause
(iii);
(D) in section 13(a)(1)(C), by striking ``or
breakfasts'';
(E) in section 17--
(i) in subsection (c), by striking
paragraph (2), and redesignating paragraphs (3)
through (6) as paragraphs (2) through (5),
respectively; and
(ii) in subsection (f)(3)(E)(ii(I), by
striking ``meals'' and inserting ``lunches'';
and
(F) in section 18, by striking subsection (e) and
redesignating subsections (f) and (g) as subsections
(e) and (f), respectively.
Subtitle C--Nutritional Improvement for Children Served Under Child
Nutrition Programs
SEC. 321. NUTRITIONAL IMPROVEMENT FOR CHILDREN SERVED UNDER CHILD
NUTRITION PROGRAMS
(a) In General.--Section 18 of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1769) is amended by adding at the end the
following:
``(h) Healthy School Nutrition Environment Incentive Grants.--
``(1) In general.--The Secretary shall establish a program
under which the Secretary shall make competitive grants to
selected local educational agencies--
``(A) to create healthy school nutrition
environments; and
``(B) to assess the impact of the environments on
the health and well-being of children enrolled in the
schools.
``(2) Selection of schools.--In selecting local educational
agencies to receive incentive grants under this subsection, the
Secretary shall--
``(A) ensure that not less than 75 percent of the
schools under the jurisdiction of the agencies selected
to participate in the program established under this
subsection are schools in which not less than 50
percent of the students enrolled in each school are
eligible for free or reduced price meals under this
Act;
``(B) ensure that, of the agencies selected to
participate in the program, there is appropriate
representation of rural, urban, and suburban schools,
as determined by the Secretary;
``(C) ensure that, of the agencies selected to
participate in the program, there is appropriate
representation of elementary, middle, and secondary
schools, as determined by the Secretary;
``(D) ensure that agencies selected to receive a
grant under this subsection meet the requirements of
paragraph (3);
``(E) give priority to agencies that develop
comprehensive plans that include the involvement of a
broad range of community stakeholders in achieving
healthy school nutrition environments;
``(F) give priority to agencies that develop
comprehensive plans that include a strategy for
maintaining healthy school nutrition environments in
the years following the fiscal years for which the
agencies receive grants under this subsection;
``(G) select only agencies that submit grant
applications by May 1, 2004; and
``(H) make grant awards effective not later than
July 15, 2004.
``(3) Requirements.--
``(A) Input.--Prior to the solicitation of
proposals for grants under this subsection, the
Secretary shall solicit input from appropriate
nutrition, health, and education organizations (such as
the American School Food Service Association, the
American Dietetic Association, and the National School
Boards Association) regarding the appropriate criteria
for a healthy school environment.
``(B) Criteria for healthy school environments.--
The Secretary shall, taking into account input received
under subparagraph (A), establish criteria for defining
a healthy school environment, including criteria that--
``(i) provide program meals that meet
nutritional standards for breakfasts and
lunches established by the Secretary;
``(ii) ensure that all food served
(including food served in participating schools
and service institutions in competition with
the programs authorized under this Act and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.)) on school grounds during regular school
hours is consistent with the nutritional
standards for breakfasts and lunches
established by the Secretary;
``(iii) promote the consumption of fruits
and vegetables;
``(iv) provide nutrition education to
students and staff; and
``(v) meet other criteria established by
the Secretary.
``(C) Plans.--To be eligible to receive a grant
under this subsection, a local educational agency shall
submit to the Secretary a healthy school nutrition
environment plan that describes the actions the schools
under the jurisdiction of such agency will take to meet
the criteria established under subparagraph (B).
``(4) Grants.--For each of fiscal years 2005 through 2008,
the Secretary shall make a grant to each agency selected under
paragraph (2).
``(5) Evaluations.--
``(A) In general.--The Secretary, acting through
the Administrator of the Food and Nutrition Service,
shall conduct an evaluation of a representative sample
of schools that receive grants under this subsection.
``(B) Content.--The evaluation shall measure, at a
minimum, the effects of a healthy school nutrition
environment on--
``(i) overweight children and obesity;
``(ii) dietary intake;
``(iii) nutrition education and behavior;
``(iv) the adequacy of time to eat;
``(v) physical activities;
``(vi) parental and student attitudes and
participation; and
``(vii) related funding issues, including
the cost of maintaining a healthy school
nutrition environment.
``(C) Reports.--The Secretary shall submit to the
Committee on Education and the Workforce of the House
of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate--
``(i) not later than December 31, 2005, an
interim report on the activities of schools
evaluated under this subsection; and
``(ii) not later than December 31, 2007, a
final report on the activities of schools
evaluated under this subsection.
``(6) Funding.--
``(A) In general.--Out of any funds in the Treasury
not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary of Agriculture
to carry out this subsection--
``(i) on October 1, 2003, $10,000,000; and
``(ii) on October 1, 2004, and each October
1 thereafter through October 1, 2006,
$35,000,000.
``(B) Receipt and acceptance.--The Secretary shall
be entitled to receive, shall accept, and shall use to
carry out this section the funds transferred under
subparagraph (A), without further appropriation.
``(C) Availability of funds.--Funds transferred
under subparagraph (A) shall remain available until
expended.
``(D) Evaluations.--Of the funds made available
under this paragraph, the Secretary shall use not more
than $5,000,000 to conduct evaluations under paragraph
(5).''.
(b) Competitive Foods in Schools.--
(1) In general.--Section 10 of the Child Nutrition Act of
1966 (42 U.S.C. 1779) is amended--
(A) in subsection (a), by striking ``, including''
and all that follows through ``Lunch Act''; and
(B) by striking subsection (b) and inserting the
following:
``(b) Competitive Foods in Schools.--
``(1) In general.--The regulations under subsection (a) may
include provisions that regulate the service of food in
participating schools and service institutions in competition
with the programs authorized under this Act and the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.)
(referred to in this subsection as `competitive foods').
``(2) Regulations.--The regulations promulgated under
paragraph (1)--
``(A) shall apply to all school grounds during the
duration of the school day;
``(B) shall not supersede or otherwise affect State
and local regulations on competitive foods that, as
determined by the Secretary, conform to the nutritional
goals of the regulations promulgated by the Secretary;
``(C) shall require that the proceeds from the sale
of competitive foods in schools be used for the benefit
of the schools or of organizations of students approved
by the schools, if those sales are allowed by the
regulations;
``(D) shall take into account the differing needs
of--
``(i) elementary schools;
``(ii) middle schools and junior high
schools; and
``(iii) high schools; and
``(E) shall implement the recommendations of the
Institute of Medicine made under paragraph (3).
``(3) Institute of medicine recommendations.--
``(A) In general.--The Secretary of Agriculture
shall offer to enter into an agreement with the
Institute of Medicine of the National Academy of
Sciences under which the Institute of Medicine, based
on sound nutritional science, shall make
recommendations to the Secretary regarding the
regulation of competitive foods (as defined in section
10(b)(1) of the Child Nutrition Act of 1966 (as amended
by paragraph (1)(B))).
``(B) Regulations.--Not later than 1 year after the
date of receipt of final recommendations from the
Institute of Medicine, the Secretary shall promulgate
regulations to carry out section 10(b) of the Child
Nutrition Act of 1966 (as amended by paragraph (1)(B))
in accordance with the recommendations of the Institute
of Medicine.
``(C) Report.--Not later than 1 year after the date
of receipt of final recommendations from the Institute
of Medicine, the Secretary shall submit to the
Committee on Education and the Workforce of the House
of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that
describes the actions of the Secretary under
subparagraph (B).''.
Subtitle D--Child and Adult Care Food Program
SEC. 331. REIMBURSEMENTS FOR AFTERSCHOOL DINNERS.
Section 17(r) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1766(r)) is amended by striking paragraph (5).
SEC. 332. ELIGIBILITY OF PRIVATE CHILD CARE CENTERS.
Section 17(a)(2)(B)(i) is amended by striking ``during the period''
and all that follows through ``September 30, 2002''.
Subtitle E--Afterschool Education Enhancement Act
SEC. 341. SHORT TITLE.
This subtitle may be cited as the ``Afterschool Education
Enhancement Act''.
SEC. 342. AMENDMENTS REGARDING 21ST CENTURY COMMUNITY LEARNING CENTERS.
Part B of title IV of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7171 et seq.) is amended--
(1) in subsection (a) of section 4203--
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4) through (14) as
paragraphs (3) through (13), respectively; and
(2) in section 4204--
(A) in paragraph (2) of subsection (b)--
(i) by striking subparagraph (F); and
(ii) by redesignating subparagraphs (G)
through (N) as subparagraphs (F) through (M),
respectively; and
(B) by amending paragraph (1) of subsection (i) to
read as follows:
``(1) In general.--In awarding grants under this part, a
State educational agency shall give priority to applications
submitted jointly by eligible entities consisting of not less
than--
``(A) 1 local educational agency receiving funds
under part A of title I; and
``(B) 1 community-based organization or other
public or private entity.''.
TITLE IV--IMPROVING THE WORKPLACE FOR FAMILIES
Subtitle A--Part-Time and Temporary Workers Benefits
SEC. 401. TREATMENT OF EMPLOYEES WORKING AT LESS THAN FULL-TIME UNDER
PARTICIPATION, VESTING, AND ACCRUAL RULES GOVERNING
PENSION PLANS.
(a) Participation Rules.--
(1) In general.--Section 202(a)(3) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1052(a)(3))
is amended by adding at the end the following new subparagraph:
``(E)(i) For purposes of this paragraph, in the case of any
employee who, as of the beginning of the 12-month period referred to in
subparagraph (A)--
``(I) has customarily completed 500 or more hours
of service per year but less than 1,000 hours of
service per year, or
``(II) is employed in a type of position in which
employment customarily constitutes 500 or more hours of
service per year but less than 1,000 hours of service
per year,
completion of 500 hours of service within such 12-month period
shall be treated as completion of 1,000 hours of service.
``(ii) For purposes of this subparagraph, the extent to which
employment in any type of position customarily constitutes less than
1,000 hours of service per year shall be determined with respect to
each pension plan in accordance with such regulations as the Secretary
may prescribe providing for consideration of facts and circumstances
peculiar to the work-force constituting the participants in such
plan.''.
(2) Conforming amendment.--Section 204(b)(1)(E) of such Act
(29 U.S.C. 1054(b)(1)(E)) is amended by striking ``section
202(a)(3)(A)'' and inserting ``subparagraphs (A) and (E) of
section 202(a)(3)''.
(b) Vesting Rules.--
(1) In general.--Section 203(b)(2) of such Act (29 U.S.C.
1053(b)(2)) is amended by adding at the end the following new
subparagraph:
``(E)(i) For purposes of this paragraph, in the case of any
employee who, as of the beginning of the period designated by the plan
pursuant to subparagraph (A)--
``(I) has customarily completed 500 or more hours
of service per year but less than 1,000 hours of
service per year, or
``(II) is employed in a type of position in which
employment customarily constitutes 500 or more hours of
service per year but less than 1,000 hours of service
per year,
completion of 500 hours of service within such period shall be
treated as completion of 1,000 hours of service.
``(ii) For purposes of this subparagraph, the extent to which
employment in any type of position customarily constitutes less than
1,000 hours of service per year shall be determined with respect to
each pension plan in accordance with such regulations as the Secretary
may prescribe providing for consideration of facts and circumstances
peculiar to the work-force constituting the participants in such
plan.''.
(2) 1-year breaks in service.--Section 203(b)(3) of such
Act (29 U.S.C. 1053(b)(3)) is amended by adding at the end the
following new subparagraph:
``(F)(i) For purposes of this paragraph, in the case of any
employee who, as of the beginning of the period designated by the plan
pursuant to subparagraph (A)--
``(I) has customarily completed 500 or more hours of
service per year but less than 1,000 hours of service per year,
or
``(II) is employed in a type of position in which
employment customarily constitutes 500 or more hours of service
per year but less than 1,000 hours of service per year,
completion of 250 hours of service within such period shall be treated
as completion of 500 hours of service.
``(ii) For purposes of this subparagraph, the extent to which
employment in any type of position customarily constitutes less than
1,000 hours of service per year shall be determined with respect to
each pension plan in accordance with such regulations as the Secretary
may prescribe providing for consideration of facts and circumstances
peculiar to the work-force constituting the participants in such
plan.''.
(c) Accrual Rules.--Section 204(b)(4)(C) of such Act (29 U.S.C.
1054(b)(4)(C)) is amended--
(1) by inserting ``(i)'' after ``(C)''; and
(2) by adding at the end the following new clauses:
``(ii) For purposes of this subparagraph, in the case of any
employee who, as of the beginning of the period designated by the plan
pursuant to clause (i)--
``(I) has customarily completed 500 or more hours of
service per year but less than 1,000 hours of service per year,
or
``(II) is employed in a type of position in which
employment customarily constitutes 500 or more hours of service
per year but less than 1,000 hours of service per year,
completion of 500 hours of service within such period shall be treated
as completion of 1,000 hours of service.
``(iii) For purposes of clause (ii), the extent to which employment
in any type of position customarily constitutes less than 1,000 hours
of service per year shall be determined with respect to each pension
plan in accordance with such regulations as the Secretary may prescribe
providing for consideration of facts and circumstances peculiar to the
work-force constituting the participants in such plan.''.
SEC. 402. TREATMENT OF EMPLOYEES WORKING AT LESS THAN FULL-TIME UNDER
GROUP HEALTH PLANS.
(a) In General.--Part 2 of subtitle B of title I of the Employee
Retirement Income Security Act of 1974 is amended--
(1) by redesignating section 211 (29 U.S.C. 1061) as
section 212; and
(2) by inserting after section 210 (29 U.S.C. 1060) the
following new section:
``SEC. 211. TREATMENT OF PART-TIME WORKERS UNDER GROUP HEALTH PLANS.
``(a) In General.--A reduction in the employer-provided premium
under a group health plan with respect to any employee for any period
of coverage solely because the employee's customary employment is less
than full-time may be provided under such plan only if the employee is
described in subsection (b) and only to the extent permitted under
subsection (c).
``(b) Reductions Applicable to Employees Working Less Than Full-
Time.--
``(1) In general.--An employee is described in this
subsection if such employee, as of the beginning of the period
of coverage referred to in subsection (a)--
``(A) has customarily completed less than 30 hours
of service per week, or
``(B) is employed in a type of position in which
employment customarily constitutes less than 30 hours
of service per week.
``(2) Regulations.--For purposes of paragraph (1), whether
employment in any type of position customarily constitutes less
than 30 hours of service per week shall be determined with
respect to each group health plan in accordance with such
regulations as the Secretary may prescribe providing for
consideration of facts and circumstances peculiar to the work-
force constituting the participants in such plan.
``(c) Amount of Permissible Reduction.--The employer-provided
premium under a group health plan with respect to any employee for any
period of coverage, after the reduction permitted under subsection (a),
shall not be less than a ratable portion of the employer-provided
premium which would be provided under such plan for such period of
coverage with respect to an employee who completes 30 hours of service
per week.
``(d) Definitions.--For purposes of this section--
``(1) Group health plan.--The term `group health plan' has
the meaning provided such term in section 607(1).
``(2) Employer-provided premium.--
``(A) In general.--The term `employer-provided
premium' under a plan for any period of coverage means
the portion of the applicable premium under the plan
for such period of coverage which is attributable under
the plan to employer contributions.
``(B) Applicable premium.--For purposes of
subparagraph (A), in determining the applicable premium
of a group health plan, principles similar to the
principles applicable under section 604 shall apply.''.
(b) Conforming Amendments.--
(1) Section 201(1) of such Act (29 U.S.C. 1051(1)) is
amended by inserting ``, except with respect to section 211''
before the semicolon.
(2) The table of contents in section 1 of such Act is
amended by striking the item relating to section 211 and
inserting the following new items:
``211. Treatment of part-time workers under group health plans.
``212. Effective date.''.
SEC. 403. EXPANSION OF DEFINITION OF EMPLOYEE TO INCLUDE CERTAIN
INDIVIDUALS WHOSE SERVICES ARE LEASED OR CONTRACTED FOR.
Paragraph (6) of section 3 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1002(6)) is amended--
(1) by inserting ``(A)'' after ``(6)''; and
(2) by adding at the end the following new subparagraph:
``(B) Such term includes, with respect to any employer, any person
who is not an employee (within the meaning of subparagraph (A)) of such
employer and who provides services to such employer, if--
``(i) such person has (pursuant to an agreement with such
employer or any other person) performed such services for such
employer (or for such employer and related persons (within the
meaning of section 144(a)(3) of the Internal Revenue Code of
1986)) for a period of at least 1 year (6 months in the case of
core health benefits) at the rate of at least 500 hours of
service per year, and
``(ii) such services are of a type historically performed,
in the business field of the employer, by employees (within the
meaning of subparagraph (A)).''.
SEC. 404. EFFECTIVE DATES.
(a) In General.--Except as provided in subsection (b), the
amendments made by this subtitle shall apply with respect to plan years
beginning on or after January 1, 2004.
(b) Special Rule for Collectively Bargained Plans.--In the case of
a plan maintained pursuant to 1 or more collective bargaining
agreements between employee representatives and 1 or more employers
ratified on or before the date of the enactment of this Act, subsection
(a) shall be applied to benefits pursuant to, and individuals covered
by, any such agreement by substituting for ``January 1, 2004'' the date
of the commencement of the first plan year beginning on or after the
earlier of--
(1) the later of--
(A) January 1, 2004, or
(B) the date on which the last of such collective
bargaining agreements terminates (determined without
regard to any extension thereof after the date of the
enactment of this Act), or
(2) January 1, 2006.
(c) Plan Amendments.--If any amendment made by this subtitle
requires an amendment to any plan, such plan amendment shall not be
required to be made before the first plan year beginning on or after
January 1, 2005, if--
(1) during the period after such amendment made by this Act
takes effect and before such first plan year, the plan is
operated in accordance with the requirements of such amendment
made by this subtitle, and
(2) such plan amendment applies retroactively to the period
after such amendment made by this subtitle takes effect and
such first plan year.
A plan shall not be treated as failing to provide definitely
determinable benefits or contributions, or to be operated in accordance
with the provisions of the plan, merely because it operates in
accordance with this subsection.
Subtitle B--United States Business Telework Act
SEC. 411. SHORT TITLE.
This subtitle may be cited as the ``United States Business Telework
Act''.
SEC. 412. TELEWORK PILOT PROGRAM.
(a) Program.--In accordance with this subtitle, the Secretary of
Labor shall conduct, in not more than 5 States, a pilot program to
raise awareness about telework among employers and to encourage such
employers to offer telework options to employees.
(b) Permissible Activities.--In carrying out the pilot program, the
Secretary is encouraged to--
(1) produce educational materials and conduct presentations
designed to raise awareness of the benefits and the ease of
telework;
(2) conduct outreach to businesses that are considering
offering telework options;
(3) acquire telework technologies and equipment to be used
for demonstration purposes; and
(4) ensure that expectant and new mothers who are employed
by businesses that participate in the pilot program are given
the option to telework during the 1-year period after the date
of birth.
SEC. 413. REPORT TO CONGRESS.
Not later than 2 years after the first date on which funds are
appropriated to carry out this subtitle, the Secretary shall transmit
to the Congress a report containing the results of an evaluation of the
pilot program and any recommendations as to whether the pilot program,
with or without modification, should be expanded.
SEC. 414. DEFINITION.
In this subtitle, the term ``telework'' means the performance of
any portion of work functions by an employee outside the normal place
of business under circumstances which reduce or eliminate the need to
commute.
SEC. 415. TERMINATION.
The pilot program shall terminate 2 years after the first date on
which funds are appropriated to carry out this subtitle.
SEC. 416. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated $5,000,000 to carry out this
subtitle.
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Introduced in House
Introduced in House
Referred to the Committee on Education and the Workforce, and in addition to the Committees on House Administration, Government Reform, and Financial Services, 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.
Referred to the Committee on Education and the Workforce, and in addition to the Committees on House Administration, Government Reform, and Financial Services, 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.
Referred to the Committee on Education and the Workforce, and in addition to the Committees on House Administration, Government Reform, and Financial Services, 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.
Referred to the Committee on Education and the Workforce, and in addition to the Committees on House Administration, Government Reform, and Financial Services, 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.
Referred to the Committee on Education and the Workforce, and in addition to the Committees on House Administration, Government Reform, and Financial Services, 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.
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Sponsor introductory remarks on measure. (CR H420-421)
Referred to the Subcommittee on Civil Service and Agency Organization.
Referred to the Subcommittee on Employer-Employee Relations.
Referred to the Subcommittee on Workforce Protections.
Referred to the Subcommittee on 21st Century Competitiveness.
Referred to the Subcommittee on Education Reform.
Referred to the Subcommittee on Housing and Community Opportunity, for a period to be subsequently determined by the Chairman.