To amend the Public Health Service Act to authorize formula grants to States to provide access to affordable health insurance for certain child care providers and staff, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Healthy Early Education Workforce 
Act''.

SEC. 2. BLOCK GRANTS REGARDING AFFORDABLE HEALTH INSURANCE FOR CHILD 
              CARE PROVIDERS.

    Title XIX of the Public Health Service Act is amended by adding at 
the end the following:

``PART D--BLOCK GRANTS REGARDING AFFORDABLE HEALTH INSURANCE FOR CHILD 
                             CARE PROVIDERS

``SEC. 1981. FORMULA GRANTS TO STATES.

    ``For the purpose described in section 1982(a), the Secretary shall 
make an allotment each fiscal year for each State that submits an 
application in accordance with section 1983 in an amount determined in 
accordance with section 1984.

``SEC. 1982. FUNDING AGREEMENTS.

    ``(a) Purpose.--A funding agreement for a grant under section 1981 
is that the State involved will expend the grant only for the purpose 
of providing access to affordable health benefits coverage for--
            ``(1) eligible child care providers and the staff of 
        center-based child care providers; and
            ``(2) at the discretion of the State involved, the spouses, 
        domestic partners, and dependents (as those terms are defined 
        by the State) of such providers and staff.
    ``(b) Permissible Activities.--A funding agreement for a grant 
under section 1981 is that the State involved, in carrying out the 
purpose described in subsection (a), may opt to use the grant for any 
of the following:
            ``(1) To reimburse an employer or individual described in 
        subsection (a) for their share (or a portion thereof) of the 
        premiums or other costs for coverage under group or individual 
        health plans.
            ``(2) To offset the cost of enrolling individuals described 
        in subsection (a) in public health benefits plans, such as the 
        medicaid program under title XIX of the Social Security Act, 
        the State Children's Health Insurance Program under title XXI 
        of such Act, or public employee health benefit plans.
            ``(3) To otherwise subsidize the cost of health benefits 
        coverage for individuals described in subsection (a).
    ``(c) Limiting Criteria.--A funding agreement for a grant under 
section 1981 is that the State involved may establish criteria to limit 
the providers and staff described in subsection (a)(1) who may receive 
assistance under the grant.
    ``(d) Priority.--A funding agreement for a grant under section 1981 
is that the State involved will give--
            ``(1) highest priority to--
                    ``(A) providers and staff described in subsection 
                (a)(1) that meet any applicable criteria established in 
                accordance with subsection (c) and received assistance 
                under such a grant during the previous fiscal year; and
                    ``(B) at the State's discretion, the spouses, 
                domestic partners, and dependents of such providers and 
                staff; and
            ``(2) second highest priority to--
                    ``(A) providers and staff described in subsection 
                (a)(1) that meet any applicable criteria established in 
                accordance with subsection (c) 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 and 
                staff.
    ``(e) Matching Funds.--
            ``(1) In general.--With respect to the costs of carrying 
        out the purpose described in subsection (a), a funding 
        agreement for a grant under section 1981 is that the State 
        involved will make available (directly or through donations 
        from public or private entities) non-Federal contributions 
        toward such costs in an amount that is not less than 50 percent 
        of such costs.
            ``(2) Determination of amount contributed.--Non-Federal 
        contributions under paragraph (1) may be in cash or in kind, 
        fairly evaluated, including plant, equipment, or services. 
        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 contributions.

``SEC. 1983. APPLICATION.

    ``For purposes of section 1981, an application for a grant for a 
fiscal year is in accordance with this section if--
            ``(1) the application is submitted at such time, in such 
        manner, and containing such information as the Secretary may 
        require;
            ``(2) the application contains each funding agreement that 
        is described in section 1982; and
            ``(3) with respect to each such funding agreement, the 
        application provides assurances of compliance satisfactory to 
        the Secretary.

``SEC. 1984. DETERMINATION OF AMOUNT OF ALLOTMENT.

    ``(a) Amounts reserved.--
            ``(1) Territories and possessions.--The Secretary shall 
        reserve not to exceed one half of 1 percent of the amount 
        appropriated pursuant to section 1986 in each fiscal year for 
        payments to Guam, American Samoa, the Virgin Islands of the 
        United States, and the Commonwealth of the Northern Mariana 
        Islands to be allotted in accordance with their respective 
        needs.
            ``(2) Indian tribes.--The Secretary shall reserve not less 
        than 1 percent, and not more than 2 percent, of the amount 
        appropriated pursuant to section 1986 in each fiscal year for 
        payments to Indian tribes and tribal organizations, to be 
        allotted in accordance with their respective needs.
    ``(b) State allotment.--
            ``(1) General rule.--From the remainder of amounts 
        appropriated pursuant to section 1986 for each fiscal year 
        after reservations 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 such remainder as the product of the young 
                child factor of the State and the allotment percentage 
                of the State bears to the sum of the corresponding 
                products for all States; and
                    ``(B) an amount that bears the same ratio to 50 
                percent of such remainder as the product  of the school 
lunch factor of the State and the allotment percentage of the State 
bears to the sum of the corresponding products for all States.
            ``(2) Young child factor.--The term `young child factor' 
        means the ratio of the number of children in the State under 5 
        years of age to the number of such children in all States as 
        provided by the most recent annual estimates of population in 
        the States by the Census Bureau of the Department of Commerce.
            ``(3) School lunch factor.--The term `school lunch factor' 
        means the ratio of the number of children in the State who are 
        receiving free or reduced price lunches under the school lunch 
        program established under the Richard B. Russell National 
        School Lunch Act to the number of such children in all the 
        States as determined annually by the Department of Agriculture.
            ``(4) Allotment percentage.--
                    ``(A) In general.--The allotment percentage for a 
                State is determined by dividing the per capita income 
                of all individuals in the United States, by the per 
                capita income of all individuals in the State.
                    ``(B) Limitations.--If an allotment percentage 
                determined under subparagraph (A)--
                            ``(i) exceeds 1.2 percent, then the 
                        allotment percentage of that State shall be 
                        considered to be 1.2 percent; or
                            ``(ii) is less than 0.8 percent, then the 
                        allotment percentage of the State shall be 
                        considered to be 0.8 percent.
                    ``(C) Per capita income.--For purposes of 
                subparagraph (A), per capita income--
                            ``(i) shall be determined at 2-year 
                        intervals;
                            ``(ii) shall be applied for the 2-year 
                        period beginning on October 1 of the first 
                        fiscal year beginning on the date such 
                        determination is made; and
                            ``(iii) shall be 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) Allocation of Excess Funds.--To the extent that all the funds 
appropriated under section 1986 for a fiscal year and available for 
allotment in such fiscal year are not otherwise allotted to States 
because 1 or more States have not submitted an application in 
accordance with section 1983 for the fiscal year, or because 1 or more 
States have notified the Secretary that they do not intend to use the 
full amount of their allotment, such excess shall be allotted among 
each of the remaining States in proportion to the amount otherwise 
allotted to such States for the fiscal year without regard to this 
subsection.

``SEC. 1985. DEFINITIONS.

    ``In this part:
            ``(1) The term `eligible child care provider' means a 
        family child care provider or a center-based child care 
        provider (whether an entity or individual) that is licensed 
        under State law and meets all applicable State and local health 
        and safety requirements.
            ``(2) The term `family child care provider' means an 
        individual who provides child care services for fewer than 24 
        hours per day, as the sole caregiver, and in a private 
        residence.
            ``(3) The terms ``Indian tribe'' and ``tribal 
        organization'' have the same meaning given such terms in 
        section 4 of the Indian Self-Determination and Education 
        Assistance Act.
            ``(4)(A) Except for purposes of determining allotments 
        under subsections (a) and (b) of section 1984, the term `State' 
        means each of the several States, the District of Columbia, 
        Guam, American Samoa, the Virgin Islands of the United States, 
        the Commonwealth of the Northern Mariana Islands, and each 
        Indian tribe or tribal organization.
            ``(B) For purposes of determining allotments under 
        subsections (a) and (b) of section 1984, the term `State' means 
        each of the several States and the District of Columbia.

``SEC. 1986. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary to carry 
out this part $200,000,000 for fiscal year 2004, $250,000,000 for 
fiscal year 2005, $300,000,000 for fiscal year 2006, $400,000,000 for 
fiscal year 2007, and such sums as may be necessary for fiscal year 
2008.''.

SEC. 3. EVALUATION OF BLOCK GRANT PROGRAM BY SECRETARY.

    (a) Evaluation.--The Secretary of Health and Human Services shall 
conduct an evaluation of several State programs carried out with grants 
under part D of title XIX of the Public Health Service Act, 
representing various approaches to raising the rate of child care 
workers 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 workers with health benefits 
        coverage.
            (2) The take-up rate by eligible child care providers.
            (3) The turnover rate in the field.
            (4) The average wages paid.
    (c) Report.--Not later than 3 years after the date of enactment of 
this Act, the Secretary of Health and Human Services shall submit a 
report to the Congress on the results of the evaluation conducted under 
subsection (a), together with recommendations for strengthening 
programs carried out with grants under part D of title XIX of the 
Public Health Service Act.

Summary: Healthy Early Education Workforce Act - Amends the Public Health Service Act to direct the Secretary of Health and Human Services to make an annual allotment to each State that submits an application for formula grants to provide access to affordable health benefits coverage for: (1) eligible child care providers and the staff of center-based child care providers. And (2) certain relatives of such providers and staff, at the discretion of the State involved. Sets forth the following permissible activities for such grants: (1) to reimburse an employer or other individual specified under this Act for premiums or other costs for coverage under group or individual plans. (2) to offset the cost of enrolling individuals in public health benefits plans. And (3) to otherwise subsidize the cost of health benefits coverage to individuals specified under this Act. Requires a State to match at least 50 percent of the costs of the activities for which it receives a grant. Specifies portions of the funds appropriated under this Act to go to US territories and possessions and Indian tribes. Sets forth a formula for calculating the amount to be received by each State . Directs the Secretary to conduct an evaluation of several State programs representing various approaches to raising the rate of child workers with health benefits coverage.