FOCUS Act

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

108th CONGRESS
1st Session
H. R. 2377

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

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 5, 2003

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

_______________________________________________________________________

A BILL

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

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

SECTION 1. SHORT TITLE.

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

SEC. 2. FINDINGS AND PURPOSE.

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

SEC. 3. DEFINITIONS.

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

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

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

SEC. 5. ALLOTMENTS TO STATES.

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

SEC. 6. APPLICATION AND PLAN.

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

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

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

SEC. 8. CHILD CARE PROVIDER SCHOLARSHIP PROGRAM.

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

SEC. 9. CHILD CARE PROVIDER HEALTH BENEFITS COVERAGE.

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

SEC. 10. ANNUAL REPORT.

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

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

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

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

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