To establish a child care provider scholarship program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Care Worker Incentive Act of 
2001''.

SEC. 2. NATIONAL CHILD CARE PROVIDER SCHOLARSHIP PROGRAM.

    (a) Establishment of Program.--Section 658G of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858e) is amended--
            (1) by inserting ``(a) In General.--'' before ``A State''; 
        and
            (2) by adding at the end the following:
    ``(b) Child Care Provider Scholarship Program.--
            ``(1) State plan requirement.--In order to be eligible for 
        funds under section 658J(a)(2), a State shall include in its 
        plan under section 658E a child care provider scholarship 
        program plan, meeting the requirements of this subsection, 
        designed to further the goals of child care provider 
        recruitment, training, credentialing, and retention.
            ``(2) Eligibility criteria for scholarship applicants.--The 
        State plan shall provide that, in order for an individual to be 
        eligible for a scholarship grant under this subsection, the 
        following requirements shall be met:
                    ``(A) Demonstrated commitment to child care 
                career.--The individual--
                            ``(i) shall be a child care worker who is 
                        (or is employed by) a licensed or registered 
                        child care provider, or has a commitment for 
                        employment from a licensed or registered child 
                        care provider; and
                            ``(ii) shall agree in writing to continue 
                        to be employed in the field of child care for 
                        at least one year after receiving the training 
                        for which assistance is provided.
                    ``(B) Cost sharing by applicant.--
                            ``(i) In general.--The individual (either 
                        as provided in clause (ii) or otherwise) shall 
                        provide for payment, in cash or in kind, of a 
                        share of the cost of the education or training.
                            ``(ii) Application for pell grants.--In the 
                        case of an application for a scholarship 
                        intended for use in an educational institution 
                        participating in the Pell Grant program under 
                        title IV of the Higher Education Act, the 
                        individual shall apply for a grant under such 
                        program for which the individual is eligible.
                    ``(C) Employer requirements.--In the case of an 
                individual employed by (or who has a commitment for 
                employment from) a licensed or registered child care 
                provider the individual's employer shall--
                            ``(i) pay a share of the cost of the 
                        education or training; and
                            ``(ii) agree to provide increased financial 
                        incentives to the individual, such as a salary 
                        increase or bonus, when the individual 
                        completes the education or training.
            ``(3) Qualifying educational institutions.--The State plan 
        shall specify the types of educational and training programs 
        for which scholarships granted under the State program may be 
        used, which shall be limited to (but may include any or all) 
        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; and
                    ``(B) lead to a State or national credential in 
                child care or early childhood or early childhood 
                special education, or to an associate or bachelor's 
                degree in child development or early childhood 
                education.
            ``(4) Annual maximum scholarship grant amount.--The maximum 
        amount of a scholarship awarded to an eligible individual under 
        this section may not exceed $1,500 per year.
            ``(5) Supplementation of other funding.--The State plan 
        shall contain assurances that Federal funds provided to the 
        State under this subsection will not be used to supplant 
        Federal or non-Federal funds for existing services and 
        activities that promote the purposes of this subsection.''.
    (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 inserting ``(a) In General.--'' before ``There''; 
        and
            (2) by adding at the end the following:
    ``(b) Child Care Provider Scholarship Program.--There is authorized 
to be appropriated to carry out section 658G(b) $50,000,000 for each of 
fiscal years 2002 through 2006.''.
    (c) Allotment.--Section 658O of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858m) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by striking ``this 
                subchapter'' and inserting ``each subsection of section 
                658B''; and
                    (B) in paragraph (2) by striking ``section 658B'' 
                and inserting ``section 658B(a)'';
            (2) in subsection (b)(1) in the matter preceding 
        subparagraph (A), by inserting ``each subsection of'' before 
        ``section 658B''; and
            (3) in subsection (e)(1) by striking ``the allotment under 
        subsection (b)'' and inserting ``an allotment under subsection 
        (b)''.
    (d) Payments.--Section 658J(a) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858h) is amended--
            (1) by inserting ``(1)'' before ``Subject''; and
            (2) by adding at the end the following:
    ``(2) A State described in paragraph (1) whose plan under section 
658E provides for a child care scholarship program under section 
658G(b) shall be entitled to payment under this section in an amount 
equal to the lesser of its allotment under section 658O or 80 percent 
of expenditures by the State for such program.''.
    (e) Annual Report.--Section 658K(a)(2) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858i) is amended--
            (1) in subparagraph (D) by striking ``and'' at the end;
            (2) in subparagraph (E) by adding ``and'' at the end; and
            (3) by inserting after subparagraph (E) the following:
                    ``(F) the child care scholarship program, 
                including--
                            ``(i) the number of child care workers 
                        receiving scholarship grants;
                            ``(ii) the amount of each scholarship 
                        grant;
                            ``(iii) the number of course credits or 
                        credentials completed by individuals receiving 
                        scholarships;
                            ``(iv) the number and percentage of child 
                        care workers receiving scholarship grants in 
                        the previous year who fulfilled their 1-year 
                        commitment; and
                            ``(v) such other data as the Secretary may 
                        require.''.

SEC. 3. APPLICATION OF AMENDMENTS.

    The amendments made by this Act shall not apply with respect to 
fiscal years beginning before the date of the enactment of this Act.

Summary: Child Care Worker Incentive Act of 2001 - Amends the Child Care and Development Block Grant Act of 1990 to establish a national child care provider scholarship program. Requires: (1) the scholarship applicant's demonstrated commitment to a child care career, (2) cost sharing by the applicant and employer. And (3) the employer's agreement to provide increased financial incentives to the employee upon completion of the education or training.