II

106TH CONGRESS

1ST SESSION S. 814

To establish incentives to improve the quality and supply of child care,

to increase the availability and affordability of professional development

for child care providers, to expand youth development opportunities,

to ensure adequate child care subsidies for low-income working families,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 15, 1999

Mr. JEFFORDS (for himself, Mr. DODD, Ms. LANDRIEU, and Mr. KENNEDY)

introduced the following bill; which was read twice and referred to the

Committee on Health, Education, Labor, and Pensions

A BILL

To establish incentives to improve the quality and supply

of child care, to increase the availability and affordability

of professional development for child care providers, to

expand youth development opportunities, to ensure adequate child care subsidies for low-income working families, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Creating Healthy Opportunities and Improving Child

4 Education and Support Act’’ or as the ‘‘CHOICES Act’’.

5 (b) TABLE OF CONTENTS.—The table of contents of

6 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I—ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE

Subtitle A—Child Care Quality Improvement Incentive Program

Sec. 101. Definitions.

Sec. 102. Establishment of State program.

Sec. 103. Distribution.

Sec. 104. State eligibility and application requirements.

Sec. 105. Use of funds by States.

Sec. 106. Reservation.

Sec. 107. Authorization of appropriations.

Subtitle B—Increased Enforcement of State Health and Safety Standards

Sec. 111. Enforcement of State health and safety standards.

Subtitle C—Distribution of Information About Quality Child Care

Sec. 121. Expansion of role of the Department of Health and Human Services

in the collection and dissemination of information and technology.

TITLE II—EXPANDING PROFESSIONAL DEVELOPMENT

OPPORTUNITIES

Sec. 201. Child care training infrastructure.

Sec. 202. Child Care Training Revolving Fund.

TITLE III—EXPANDING YOUTH DEVELOPMENT OPPORTUNITIES

DURING NON-SCHOOL HOURS

Sec. 301. Purpose.

Sec. 302. Definitions.

Sec. 303. Establishment of program.

Sec. 304. State allotments.

Sec. 305. State application.

Sec. 306. Local allocations and grants.

Sec. 307. Local application.

Sec. 308. Use of grant funds.

Sec. 309. Federal administration; duties of the Assistant Secretary.

Sec. 310. State administration; duties of the States.

Sec. 311. Coordination with other programs.
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Sec. 312. Authorization of appropriations.

TITLE IV—EXPANDING CHILD CARE SUBSIDY FOR LOW-INCOME

FAMILIES

Sec. 401. Authorization of appropriations.

Sec. 402. Application and plan.

Sec. 403. Automated systems.

1 SEC. 2. DEFINITIONS.

2 In this Act:

3 (1) ACCREDITED CHILD CARE FACILITY.—The

4 term ‘‘accredited child care facility’’ means—

5 (A) a facility that is accredited, by a child

6 care credentialing or accreditation entity recog7 nized by a State or national organization de8 scribed in paragraph (2)(A), to provide child

9 care (except children who a tribal organization

10 elects to serve through a facility described in

11 subparagraph (B));

12 (B) a facility that is accredited, by a child

13 care credentialing or accreditation entity recog14 nized by a tribal organization, to provide child

15 care for children served by the tribal organiza16 tion;

17 (C) a facility that is used as a Head Start

18 center under the Head Start Act (42 U.S.C.

19 9831 et seq.) and is in compliance with applica20 ble performance standards established by regu21 lation under such Act for Head Start programs;

22 or
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1 (D) a military child development center (as

2 defined in section 1798(1) of title 10, United

3 States Code) that is in a facility owned or

4 leased by the Department of Defense or the

5 Coast Guard.

6 (2) CHILD CARE CREDENTIALING OR ACCREDI7 TATION ENTITY.—The term ‘‘child care credentialing

8 or accreditation entity’’ means a nonprofit private

9 organization or public agency that—

10 (A) is recognized by a State agency, a trib11 al organization, or a national organization that

12 serves as a peer review panel on the standards

13 and procedures of public and private child care

14 or school accrediting bodies; and

15 (B) accredits a facility or credentials an in16 dividual to provide child care on the basis of—

17 (i) an accreditation or credentialing

18 instrument based on peer-validated re19 search;

20 (ii) compliance with applicable State

21 and local licensing requirements, or stand22 ards described in section 658E(c)(2)(E)(ii)

23 of the Child Care and Development Block

24 Grant Act (42 U.S.C. 9858c(c)(2)(E)(ii)),
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1 as appropriate, for the facility or indi2 vidual;

3 (iii) outside monitoring of the facility

4 or individual; and

5 (iv) criteria that provide assurances

6 of—

7 (I) compliance with age-appro8 priate health and safety standards at

9 the facility or by the individual;

10 (II) use of developmentally ap11 propriate educational activities, as an

12 integral part of the child care pro13 gram carried out at the facility or by

14 the individual; and

15 (III) use of ongoing staff devel16 opment or training activities for the

17 staff of the facility or the individual,

18 including related skills-based testing.

19 (3) CREDENTIALED CHILD CARE PROFES20 SIONAL.—The term ‘‘credentialed child care profes21 sional’’ means—

22 (A) an individual who—

23 (i) is credentialed, by a child care

24 credentialing or accreditation entity recog25 nized by a State or a national organization
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1 described in paragraph (2)(A), to provide

2 child care (except children who a tribal or3 ganization elects to serve through an indi4 vidual described in subparagraph (B)); or

5 (ii) successfully completes a 4-year or

6 graduate degree in a relevant academic

7 field (such as early childhood education,

8 education, or recreation services);

9 (B) an individual who is credentialed, by a

10 child care credentialing or accreditation entity

11 recognized by a tribal organization, to provide

12 child care for children served by the tribal orga13 nization; or

14 (C) an individual certified by the Armed

15 Forces of the United States to provide child

16 care as a family child care provider (as defined

17 in section 658P of the Child Care and Develop18 ment Block Grant Act of 1990 (42 U.S.C.

19 9858n)) in military family housing.

20 (4) STATE; TRIBAL ORGANIZATION.—The terms

21 ‘‘State’’ and ‘‘tribal organization’’ have the meaning

22 given the term in section 658P of the Child Care

23 and Development Block Grant Act (42 U.S.C.

24 9858n).
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1 TITLE II—ACTIVITIES TO IM2 PROVE THE QUALITY OF

3 CHILD CARE

4 Subtitle A—Child Care Quality

5 Improvement Incentive Program

6 SEC. 101. DEFINITIONS.

7 In this subtitle:

8 (1) CHILD CARE PROVIDER.—The term ‘‘child

9 care provider’’ means—

10 (A) a center-based child care provider, a

11 group home child care provider, a family child

12 care provider, or other provider of non-residen13 tial child care services for compensation that—

14 (i) is licensed, regulated, registered, or

15 otherwise legally operating under State

16 law; and

17 (ii) satisfies the State and local re18 quirements;

19 applicable to the child care services the provider

20 provides; or

21 (B) a child care provider that is 18 years

22 of age or older who provides child care services

23 only to an eligible child who is, by affinity or

24 consanguinity, or by court decree, the grand25 child, great grandchild, sibling, niece, or neph-
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1 ew of such provider, if such provider does not

2 reside in the same residence with the child for

3 whom the provider is providing care and if the

4 provider complies with any applicable require5 ments that govern child care provided by the

6 relative involved.

7 (2) FAMILY CHILD CARE PROVIDER.—The term

8 ‘‘family child care provider’’ has the meaning given

9 the term in section 658P of the Child Care and De10 velopment Block Grant Act of 1990 (42 U.S.C.

11 9858n).

12 (3) SECRETARY.—The term ‘‘Secretary’’ means

13 the Secretary of Health and Human Services.

14 SEC. 102. ESTABLISHMENT OF STATE PROGRAM.

15 (a) IN GENERAL.—The Secretary shall establish a

16 program to award grants to eligible States to pay for the

17 Federal share of the cost of enabling such States to carry

18 out activities to improve the quality of child care for chil19 dren in the States (except children who a tribal organiza20 tion elects to serve under section 106).

21 (b) AWARDING OF GRANTS.—The Secretary shall

22 award the grants to the States from allotments made in

23 accordance with section 103.

24 (c) LIMITATION ON ADMINISTRATIVE COSTS.—
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1 (1) IN GENERAL.—The Secretary shall not use

2 more than 5 percent of the amount appropriated

3 under section 107 for a fiscal year for the adminis4 trative costs associated with the administration of

5 the program under this section.

6 (2) DEFINITION.—In paragraph (1), the term

7 ‘‘administrative costs’’ shall not include the costs of

8 providing direct services.

9 SEC. 103. DISTRIBUTION.

10 (a) AMOUNTS RESERVED.—The Secretary shall reserve not more than 1 11 ⁄2 of 1 percent of the amount appro12 priated under this subtitle for each fiscal year for pay13 ments to Guam, American Samoa, the Virgin Islands of

14 the United States, and the Commonwealth of the North15 ern Mariana Islands to be allotted in accordance with their

16 respective needs.

17 (b) STATE ALLOTMENT.—

18 (1) GENERAL RULE.—From the amount appro19 priated under section 107 for each fiscal year and

20 remaining after reservations made under subsection

21 (a), section 102(c), and section 106, the Secretary

22 shall allot to each State an amount equal to the sum

23 of—

24 (A) an amount that bears the same ratio

25 to 50 percent of the remainder as the product
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1 of the young child factor of the State and the

2 allotment percentage of the State bears to the

3 sum of the corresponding products for all

4 States; and

5 (B) an amount that bears the same ratio

6 to 50 percent of the remainder as the product

7 of the school lunch factor of the State and the

8 allotment percentage of the State bears to the

9 sum of the corresponding products for all

10 States.

11 (2) MINIMUM ALLOTMENT.—The amount of an

12 allotment awarded to a State under this subsection

13 shall not be less than an amount equal to 0.75 per14 cent of the total amount appropriated for the fiscal

15 year under section 107.

16 (3) YOUNG CHILD FACTOR.—The term ‘‘young

17 child factor’’ means the ratio of the number of chil18 dren in the State under 5 years of age to the num19 ber of the children in all States as provided by the

20 most recent annual estimates of population in the

21 States by the Bureau of the Census of the Depart22 ment of Commerce.

23 (4) SCHOOL LUNCH FACTOR.—The term

24 ‘‘school lunch factor’’ means the ratio of the number

25 of children in the State who are receiving free or re-
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1 duced price lunches under the school lunch program

2 established under the National School Lunch Act

3 (42 U.S.C. 1751 et seq.) to the number of the chil4 dren in all States as determined annually by the De5 partment of Agriculture.

6 (5) ALLOTMENT PERCENTAGE.—

7 (A) IN GENERAL.—The allotment percent8 age for a State is determined by dividing the

9 per capita income of all individuals in the

10 United States, by the per capita income of all

11 individuals in the State.

12 (B) LIMITATIONS.—If an allotment per13 centage determined under subparagraph (A)—

14 (i) exceeds 1.2 percent, the allotment

15 percentage of that State shall be consid16 ered to be 1.2 percent; and

17 (ii) is less than 0.8 percent, the allot18 ment percentage of the State shall be con19 sidered to be 0.8 percent.

20 (C) PER CAPITA INCOME.—For purposes

21 of subparagraph (A), per capita income shall

22 be—

23 (i) determined at 2-year intervals;

24 (ii) applied for the 2-year period be25 ginning on October 1 of the first fiscal
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1 year beginning on the date the determina2 tion is made; and

3 (iii) equal to the average of the an4 nual per capita incomes for the most re5 cent period of 3 consecutive years for

6 which satisfactory data are available from

7 the Department of Commerce at the time

8 the determination is made.

9 (c) DATA AND INFORMATION.—The Secretary shall

10 obtain from each appropriate Federal agency, the most re11 cent data and information necessary to determine the al12 lotments provided for in subsection (b).

13 (d) REALLOTMENTS.—

14 (1) IN GENERAL.—Any portion of the allotment

15 under subsection (b) to a State that the Secretary

16 determines is not required to carry out State activi17 ties approved under section 104, in the period for

18 which the allotment is made available, shall be real19 lotted by the Secretary to other States in proportion

20 to the original allotments to the other States.

21 (2) LIMITATIONS.—

22 (A) REDUCTION.—The amount of any re23 allotment to which a State is entitled under

24 paragraph (1) shall be reduced to the extent

25 that the allotment exceeds the amount that the
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1 Secretary estimates will be used in the State to

2 carry out State activities approved under sec3 tion 104.

4 (B) REALLOTMENTS.—The amount of the

5 reduction shall be similarly reallotted among

6 States for which no reduction in an allotment

7 or reallotment is required by this subsection.

8 (3) AMOUNTS REALLOTTED.—For purposes of

9 any other section of this subtitle, any amount real10 lotted to a State under this subsection shall be con11 sidered to be part of the allotment made under sub12 section (b) to the State.

13 (e) DEFINITION.—In this section, the term ‘‘State’’

14 includes only the 50 States, the District of Columbia, and

15 the Commonwealth of Puerto Rico.

16 SEC. 104. STATE ELIGIBILITY AND APPLICATION REQUIRE17 MENTS.

18 (a) ELIGIBILITY.—To be eligible to receive a grant

19 under this subtitle, a State shall certify to the Secretary

20 that the State—

21 (1) has not reduced the scope of any State child

22 care standards or requirements that were in effect

23 on January 1, 1995;

24 (2) has not limited the State licensing require25 ments with respect to the types of providers that
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1 must obtain licenses in order to provide child care

2 in the State as compared to the types of providers

3 that were required to obtain the licenses on January

4 1, 1995;

5 (3) has not otherwise restricted the application

6 of State child care licensing requirements that were

7 in effect on January 1, 1995;

8 (4) is in compliance with the requirements ap9 plicable to the State under the Child Care and De10 velopment Block Grant Act of 1990 (42 U.S.C.

11 9858 et seq.); and

12 (5) has, with respect to the fiscal year involved,

13 made available sufficient State matching funds to

14 draw down at least 80 percent of the amount award15 ed to the State for the preceding fiscal year under

16 a grant under section 418(a)(2) of the Social Secu17 rity Act (42 U.S.C. 618(a)(2)).

18 (b) FEDERAL SHARE.—

19 (1) IN GENERAL.—The Federal share of the

20 cost of the State activities approved under this sec21 tion is 90 percent.

22 (2) NON-FEDERAL SHARE.—A State that re23 ceives a grant under section 102 shall contribute the

24 non-Federal share of the cost in cash (which may be
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1 provided from State or local public sources or

2 through donations from private entities).

3 (c) APPLICATION.—To be eligible to receive a grant

4 under this subtitle, a State shall prepare and submit to

5 the Secretary an application at such time, in such manner,

6 and containing such information as the Secretary shall re7 quire, including—

8 (1) an assurance that the State will comply

9 with the requirements applicable to States under

10 this subtitle; and

11 (2) an assurance that the State will not use

12 funds received under the grant to supplant or re13 place funds used by the State to improve the quality

14 or increase the supply of child care as required

15 under section 658G of the Child Care and Develop16 ment Block Grant Act of 1990 (42 U.S.C. 9858e).

17 SEC. 105. USE OF FUNDS BY STATES.

18 A State may use amounts provided under a grant

19 awarded under this subtitle to the State to—

20 (1) establish a subsidy program to provide

21 funds to child care providers who are credentialed in

22 the State (as described in section 2(3));

23 (2) provide assistance to small businesses lo24 cated in the State in establishing and operating child

25 care programs that may include—
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1 (A) technical assistance in the establish2 ment of a child care program;

3 (B) assistance for the start-up costs re4 lated to a child care program;

5 (C) assistance for the training of child care

6 providers;

7 (D) scholarships for low-income wage earn8 ers in the programs;

9 (E) assistance to enable the businesses to

10 provide services to care for sick children or to

11 provide care to school age children; or

12 (F) assistance to enable the businesses to

13 provide care for children with disabilities;

14 (3) improve parental choice through consumer

15 education efforts in the State concerning child care,

16 including the expansion of resource and referral

17 services and improvement of State child care com18 plaint systems;

19 (4) establish a scholarship program for child

20 care providers to assist in meeting the educational or

21 training costs associated with accreditation of facili22 ties or credentialing of providers (as described in

23 paragraphs (1) and (3) of section 2);

24 (5) expand State-based child care training and

25 technical assistance activities;
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1 (6) develop criteria for State recognition of en2 tities to accredit facilities, and credential child care

3 providers, in the State, as described in section 2;

4 (7) provide increased rates of reimbursement

5 under Federal or State child care assistance pro6 grams for child care that is provided by credentialed

7 child care professionals or at accredited child care

8 centers;

9 (8) provide differential rates of reimbursement

10 under Federal or State child care assistance pro11 grams for special needs children;

12 (9) purchase special equipment or supplies or

13 otherwise provide for the payment of other extraor14 dinary expenses required for the care of special

15 needs (including disabled) children and the distribu16 tion of such equipment or supplies to child care pro17 viders serving special needs children;

18 (10) support networks for family child care pro19 viders;

20 (11) establish linkages between child care pro21 viders;

22 (12) conduct background checks of child care

23 providers; and

24 (13) increase State monitoring of licensed child

25 care facilities in accordance with State law.
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1 SEC. 106. RESERVATION.

2 The Secretary shall reserve not more than 1.5 per3 cent of the amount appropriated under section 107 for a

4 fiscal year to make grants under this subtitle to tribal or5 ganizations submitting applications described in section

6 104(c), to be used in accordance with section 105.

7 SEC. 107. AUTHORIZATION OF APPROPRIATIONS.

8 There is authorized to be appropriated to carry out

9 this subtitle $200,000,000 for each of fiscal years 2000

10 through 2004.

11 Subtitle B—Increased Enforcement

12 of State Health and Safety

13 Standards

14 SEC. 111. ENFORCEMENT OF STATE HEALTH AND SAFETY

15 STANDARDS.

16 (a) IDENTIFICATION OF STATE INSPECTION RATE.—

17 (1) IN GENERAL.—Section 658E(c)(2)(G) of

18 the Child Care and Development Block Grant Act of

19 1990 (42 U.S.C. 9858c(c)(2)(G)) is amended by

20 striking the period and inserting ‘‘, and provide the

21 percentage of child care provider inspections re22 quired under State law that were completed by the

23 State for each of the 2 preceding fiscal years.’’.

24 (2) EFFECTIVE DATE.—The amendment made

25 by paragraph (1) applies to State plans under the

26 Child Care and Development Block Grant Act of
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1 1990 (42 U.S.C. 9858 et seq.) on and after Sep2 tember 1, 2000.

3 (b) INCREASED OR DECREASED ALLOTMENTS.—Sec4 tion 658O(b) of the Child Care and Development Block

5 Grant Act of 1990 (42 U.S.C. 9858m(b)) is amended—

6 (1) in paragraph (1), in the matter preceding

7 subparagraph (A), by inserting ‘‘, subject to para8 graph (5),’’ after ‘‘shall’’; and

9 (2) by adding at the end the following:

10 ‘‘(5) INCREASED OR DECREASED ALLOTMENT

11 BASED ON STATE INSPECTION RATE.—

12 ‘‘(A) INCREASED ALLOTMENT FOR FISCAL

13 YEARS 2000, 2001, AND 2002.—

14 ‘‘(i) IN GENERAL.—Subject to clause

15 (iii), for fiscal years 2000, 2001, and

16 2002, the allotment determined for a State

17 under paragraph (1) for each such fiscal

18 year shall be increased by an amount equal

19 to 10 percent of such allotment for the fis20 cal year involved with respect to any

21 State—

22 ‘‘(I) that certifies to the Sec23 retary that the State has not reduced

24 the scope of any State child care

25 health or safety standards or require-
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1 ments that were in effect on January

2 1, 1995; and

3 ‘‘(II) that, with respect to the

4 preceding fiscal year, had a percent5 age of completed child care provider

6 inspections (as required to be reported

7 under section 658E(c)(2)(G)) that

8 was not less than the target inspec9 tion and enforcement percentage spec10 ified under clause (ii) for the fiscal

11 year for which the allotment is to be

12 paid.

13 ‘‘(ii) TARGET INSPECTION AND EN14 FORCEMENT PERCENTAGE.—For purposes

15 of clause (i)(II), the target inspection and

16 enforcement percentage is—

17 ‘‘(I) for fiscal year 2000, 75 per18 cent;

19 ‘‘(II) for fiscal year 2001, 80

20 percent; and

21 ‘‘(III) for fiscal year 2002, 100

22 percent.

23 ‘‘(iii) PRO RATA REDUCTIONS IF IN24 SUFFICIENT APPROPRIATIONS.—The Sec25 retary shall make pro rata reductions in
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1 the percentage increase otherwise required

2 under clause (i) for a State allotment for

3 a fiscal year as necessary so that the ag4 gregate of all the allotments made under

5 this subsection does not exceed the amount

6 appropriated for that fiscal year under sec7 tion 658B, and remaining after reserva8 tions under subsection (a).

9 ‘‘(B) DECREASED ALLOTMENT FOR FISCAL

10 YEARS 2001 AND 2002.—

11 ‘‘(i) IN GENERAL.—The allotment de12 termined for a State under paragraph (1)

13 for each of fiscal years 2001 and 2002

14 shall be decreased by an amount that is

15 not less than 2 percent of such allotment

16 for the fiscal year involved (except that

17 such amount shall not be more than the

18 State’s expenditures on administrative

19 costs under this subchapter during the pre20 ceding fiscal year), with respect to any

21 State that, with respect to the preceding

22 fiscal year, had a percentage of completed

23 child care provider inspections (as required

24 to be reported under section

25 658E(c)(2)(G)) that was less than the
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1 minimum inspection and enforcement per2 centage specified under clause (ii) for the

3 fiscal year for which the allotment is to be

4 paid.

5 ‘‘(ii) MINIMUM INSPECTION AND EN6 FORCEMENT PERCENTAGE.—For purposes

7 of clause (i), the minimum inspection and

8 enforcement percentage is—

9 ‘‘(I) for fiscal year 2001, 50 per10 cent; and

11 ‘‘(II) for fiscal year 2002, 75

12 percent.

13 ‘‘(iii) REQUIREMENT TO EXPEND

14 STATE FUNDS TO REPLACE REDUCTION.—

15 If the allotment determined for a State for

16 a fiscal year is reduced by reason of clause

17 (i), the State shall, during the immediately

18 succeeding fiscal year, expend additional

19 State funds under the State plan funded

20 under this subchapter, in an amount equal

21 to the amount of such reduction. During

22 the succeeding fiscal year, the State shall

23 maintain the level of services provided by

24 the State under this subchapter during the
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1 fiscal year for which the determination is

2 made.’’.

3 Subtitle C—Distribution of Infor4 mation About Quality Child

5 Care

6 SEC. 121. EXPANSION OF ROLE OF THE DEPARTMENT OF

7 HEALTH AND HUMAN SERVICES IN THE COL8 LECTION AND DISSEMINATION OF INFORMA9 TION AND TECHNOLOGY.

10 (a) PROVISION OF INFORMATION.—

11 (1) IN GENERAL.—The Secretary of Health and

12 Human Services, by awarding contracts to qualified

13 entities on a competitive basis, shall—

14 (A) provide technical assistance concerning

15 the importance of the high quality child care to

16 States, units of local government, private non17 profit child care organizations, child care

18 credentialing or accreditation entities, child care

19 providers, and parents;

20 (B) collect and disseminate information on

21 the importance of high quality child care to

22 States, units of local government, private non23 profit child care organizations, child care

24 credentialing or accreditation entities, child care

25 providers, and parents, including, in partner-
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1 ship with the Advertising Council or another

2 professional advertising group, carrying out a

3 public awareness campaign promoting quality

4 child care.

5 (2) PREFERENCE.—In awarding the contracts,

6 the Secretary shall give preference to qualified enti7 ties with experience in carrying out the activities de8 scribed in paragraph (1).

9 (b) UNIFORMITY IN DATA COLLECTION AND DIS10 SEMINATION BY NATIONAL, STATE, AND LOCAL CHILD

11 CARE RESOURCE AND REFERRAL SERVICES.—The Sec12 retary of Health and Human Services shall develop a

13 mechanism, for use by organizations including organiza14 tions providing the resource and referral services described

15 in section 658G (42 U.S.C. 9858e), for the collection and

16 dissemination of statistical data on the supply and demand

17 for child care on the national, State, and local levels.

18 (c) GRANT PROGRAM.—

19 (1) IN GENERAL.—The Secretary of Health and

20 Human Services shall award competitive grants to

21 child care credentialing or accreditation entities that

22 have been providing credentialing or accreditation

23 services for child care providers for not more than

24 10 years.
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1 (2) APPLICATION.—To be eligible to receive a

2 grant under this subsection, a child care

3 credentialing or accreditation entity shall prepare

4 and submit to the Secretary an application at such

5 time, in such manner, and containing such informa6 tion as the Secretary shall require.

7 (3) USE OF FUNDS.—Amounts provided under

8 a grant awarded under paragraph (1) shall be used

9 by grantees to refine and evaluate the procedures

10 and methods used by such grantees in accrediting

11 facilities as accredited child care facilities or

12 credentialing individual child care providers as

13 credentialed child care professionals. Such proce14 dures and methods shall be designed to ensure that

15 the highest quality child care is provided by the ac16 credited child care facilities and credentialed child

17 care professionals, to provide information about the

18 accreditation or credentialing process to providers,

19 and to provide subsidies to needy individuals and or20 ganizations to enable such individuals and organiza21 tion to participate in the accreditation or

22 credentialing process.

23 (d) AUTHORIZATION OF APPROPRIATIONS.—There is

24 authorized to be appropriated to carry out this section

25 $15,000,000 for each of fiscal years 2000 through 2004.
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1 TITLE II—EXPANDING PROFES2 SIONAL DEVELOPMENT OP3 PORTUNITIES

4 SEC. 201. CHILD CARE TRAINING INFRASTRUCTURE.

5 (a) DEFINITIONS.—In this section:

6 (1) CHILD CARE PROVIDER.—The term ‘‘child

7 care provider’’ has the meaning given the term in

8 section 101.

9 (2) ELEMENTARY SCHOOL; SECONDARY

10 SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec11 ondary school’’ have the meanings given the terms

12 in section 14101 of the Elementary and Secondary

13 Education Act of 1965 (20 U.S.C. 8801).

14 (3) INSTITUTION OF HIGHER EDUCATION.—The

15 term ‘‘institution of higher education’’ has the

16 meaning given the term in section 101(a) of the

17 Higher Education Act of 1965 (20 U.S.C. 1001(a)).

18 (4) SECRETARY.—The term ‘‘Secretary’’ means

19 the Secretary of Health and Human Services.

20 (5) TRAINING SITE.—The term ‘‘training site’’

21 means a training site described in subsection (e)(1).

22 (b) GRANTS.—

23 (1) IN GENERAL.—The Secretary shall make

24 grants to eligible organizations to develop and oper-
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1 ate technology-based child care training infrastruc2 tures, to facilitate—

3 (A) the accreditation of facilities as accred4 ited child care facilities and accredited family

5 child care homes;

6 (B) the credentialing of individuals as

7 credentialed child care professionals; and

8 (C) the dissemination of child care, child

9 development, and early childhood education in10 formation and research to child care providers.

11 (2) ORGANIZATIONS GIVEN PRIORITY.—In

12 awarding grants under this subsection, the Secretary

13 shall give priority to eligible national organizations

14 that have established child care training infrastruc15 tures similar in concept and purpose to infrastruc16 tures described in this section.

17 (c) USE OF FUNDS.—An organization that receives

18 a grant under subsection (b) shall use the funds made

19 available through the grant to—

20 (1) develop partnerships, to the maximum ex21 tent possible, with elementary schools, secondary

22 schools, institutions of higher education, Federal,

23 State, and local government agencies, and private

24 entities, to share equipment, technical assistance,

25 and other technological resources, for the develop-
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1 ment of the infrastructure described in subsection

2 (b);

3 (2) enter into arrangements with entities for

4 the provision of sites from which the infrastructure

5 will disseminate training;

6 (3) ensure the establishment of at least 2 of the

7 training sites in each State, and additional training

8 sites based on the populations and geographic con9 siderations of States;

10 (4) enter into arrangements with child care

11 credentialing or accreditation entities that are recog12 nized (as described in section 2(2)) by more than 1

13 State agency or tribal organization, for the develop14 ment of child care training to be disseminated

15 through the infrastructure;

16 (5) provide, directly or through a contract

17 (which may for good cause be a sole source con18 tract), expertise to convert training courses for dis19 tance transmission, provide interactive environments,

20 and conduct registration, testing, electronic storage

21 of information, and other technology-based activities

22 to adapt and enhance training course content con23 sistent with the medium of transmission involved

24 through the infrastructure;
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1 (6) provide, through a logistical scheduling

2 mechanism, equitable access to the infrastructure for

3 all child care credentialing or accreditation entities

4 described in paragraph (4) that request an oppor5 tunity to disseminate child care training through the

6 infrastructure and meet the requirements of this sec7 tion;

8 (7) develop and implement a mechanism for

9 participants in the training to evaluate the infra10 structure, including providing comments on the ac11 cessibility and affordability of the training, and rec12 ommendations for improvements in the training;

13 (8) develop and implement a monitoring system

14 to provide data on the training provided through the

15 infrastructure, including data on—

16 (A) the number of facilities and individuals

17 participating in the training;

18 (B) the number of facilities receiving ac19 creditation (including a repeat accreditation) as

20 accredited child care facilities, and individuals

21 receiving credentialing (including a repeat

22 credentialing) as credentialed child care profes23 sionals, after fulfilling requirements that in24 clude participation in the training;
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1 (C) the number of accredited child care fa2 cilities, and credentialed child care profes3 sionals, participating in the training; and

4 (D) the number of sites in which the train5 ing is received, analyzed—

6 (i) by State; and

7 (ii) by location in an urban, suburban,

8 or rural area; and

9 (9) establish and operate the child care training

10 revolving fund described in section 202.

11 (d) ELIGIBILITY.—To be eligible to receive the grant,

12 an organization shall be an organization that—

13 (1) is a private, nonprofit entity that is not—

14 (A) a child care credentialing or accredita15 tion entity;

16 (B) a subsidiary or affiliate of a child care

17 credentialing or accreditation entity; or

18 (C) an entity that has a subsidiary or affil19 iate that is a child care credentialing or accredi20 tation entity;

21 (2) has experience in developing partnerships

22 with child care credentialing or accreditation enti23 ties, institutions of higher education, and State and

24 local governments, for the provision of child care

25 training;
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1 (3) has experience in providing and coordi2 nating the provision of child care training to family

3 child care providers and center-based child care pro4 viders;

5 (4) is related to child care provider support or6 ganizations in 35 or more States, through member7 ship in a common organization, affiliation, or an8 other mechanism;

9 (5) has experience in working with rural and

10 urban child care provider support organizations and

11 child care providers; and

12 (6) has experience in working with national

13 child care groups and organizations, including Fed14 eral government agencies, providers of child care

15 training, child care credentialing or accreditation en16 tities, and educational groups.

17 (e) APPLICATION.—To be eligible to receive a grant

18 under subsection (b), an organization shall submit an ap19 plication to the Secretary at such time, in such manner,

20 and containing such information as the Secretary may re21 quire, including—

22 (1) information describing, and indicating a

23 preliminary count of the number of, the sites from

24 which the infrastructure will disseminate training;
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1 (2) an assurance that the organization will re2 quire that—

3 (A) each child care credentialing or accred4 itation entity that disseminates training

5 through the infrastructure will provide, during

6 at least 60 percent of the dissemination period,

7 an opportunity for participants in the

8 training—

9 (i) to interact with an identified train10 er or training leader at the training site; or

11 (ii) to elect to engage in other inter12 active training; and

13 (B) no child care credentialing or accredi14 tation entity may collect fees for participation

15 in the training that total more than—

16 (i) the cost to the entity for devel17 oping, conducting, and providing materials

18 for, the training; minus

19 (ii) the amount that the entity re20 ceives under this section or from any other

21 source to develop, conduct, and provide

22 materials for, the training; and

23 (3) information demonstrating that the organi24 zation will comply with the requirements of sub25 section (f)(2)(A).
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1 (f) DEVELOPMENT AND OPERATION OF INFRASTRUC2 TURE.—

3 (1) CONTRACTS.—An organization that receives

4 a grant under subsection (b) may use funds made

5 available through the grant to enter into contracts,

6 which may for good cause be sole source contracts,

7 for the development of the technological and

8 logistical aspects of the infrastructure. The organiza9 tion shall enter into such a contract with an entity

10 with experience in establishing technology-based

11 interactive educational or training programs.

12 (2) TIME LINES.—

13 (A) BOARD, PERSONNEL, AND REVOLVING

14 FUND.—Not later than 6 months after the date

15 of receipt of the grant, the organization shall—

16 (i) establish a governing board;

17 (ii) establish bylaws to ensure fair

18 representation on the board of entities dis19 seminating training through the infrastruc20 ture;

21 (iii) appoint a Chief Executive Project

22 Officer to oversee the daily operation of

23 the infrastructure; and
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1 (iv) establish and operate the child

2 care training revolving fund described in

3 section 202.

4 (B) TRAINING SITES.—

5 (i) 50 PERCENT OPERATIONAL.—Not

6 later than 3 years after the date of receipt

7 of the grant, the organization shall dis8 seminate training at 50 percent of the sites

9 described in the information submitted

10 under subsection (e)(1).

11 (ii) 75 PERCENT OPERATIONAL.—Not

12 later than 4 years after the date of receipt

13 of the grant, the organization shall dis14 seminate training at 75 percent of the

15 sites.

16 (iii) 90 PERCENT OPERATIONAL.—Not

17 later than 5 years after the date of receipt

18 of the grant, the organization shall dis19 seminate training at 90 percent of the

20 sites.

21 (C) EVALUATION.—The organization shall

22 develop and implement the mechanism for con23 ducting evaluations of the infrastructure de24 scribed in subsection (c)(7) not later than 3

25 years after the date of receipt of the grant.
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1 (g) MANDATORY PARTICIPATION BY FEDERAL DE2 PARTMENTS.—The Secretary of Health and Human Serv3 ices, the Secretary of Education, and the Secretary of De4 fense shall participate in the infrastructure by ensuring

5 that the training disseminated through the infrastructure

6 includes training provided in accordance with curricula de7 veloped by their departments (or by contractors for the

8 departments) for providers carrying out activities under

9 the Head Start Act (42 U.S.C. 9831 et seq.), the Safe

10 and Drug-Free Schools and Communities Act of 1994 (20

11 U.S.C. 7101 et seq.), and the Child Care and Development

12 Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), and

13 other relevant curricula developed by the departments (or

14 by contractors for the departments).

15 (h) CORPORATION.—The organization may establish

16 a nonprofit corporation containing the governing board,

17 Chief Executive Project Officer, and personnel, to carry

18 out this section.

19 (i) ADMINISTRATIVE COSTS.—Prior to the date on

20 which the organization disseminates training at 75 percent

21 of the sites described in the information submitted under

22 subsection (e)(1), the organization may use not more than

23 25 percent of the funds made available through the grant

24 to pay for the administrative costs of carrying out this

25 section. Effective on that date, the organization may use
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1 not more than 15 percent of the funds to pay for the ad2 ministrative costs.

3 (j) AUTHORIZATION OF APPROPRIATIONS.—There is

4 authorized to be appropriated to carry out this section

5 $50,000,000 for each of fiscal years 2000 through 2005.

6 SEC. 202. CHILD CARE TRAINING REVOLVING FUND.

7 (a) ESTABLISHMENT.—

8 (1) IN GENERAL.—The Chief Executive Project

9 Officer shall use not less than 10 percent of the

10 funds made available through a grant made under

11 section 201 during the 5 years after the date of re12 ceipt of the grant to establish and operate a child

13 care training revolving fund (referred to in this sec14 tion as the ‘‘Fund’’)—

15 (A) from which the Chief Executive

16 Project Officer shall make loans to eligible bor17 rowers for the purpose of enabling the persons

18 to purchase computers, satellite dishes, and

19 other equipment that will be used to dissemi20 nate training through the infrastructure de21 scribed in section 201; and

22 (B) into which all payments, charges, and

23 other amounts collected from loans made under

24 subparagraph (A) shall be deposited notwith25 standing any other provision of law.
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1 (2) SEPARATE ACCOUNT.—The Fund shall be

2 maintained as a separate account. Any portion of

3 the Fund that is not required for expenditure shall

4 be invested in obligations of the United States or in

5 obligations guaranteed or insured by the United

6 States.

7 (3) INTEREST EARNED.—The interest earned

8 on the investments shall be credited to and form a

9 part of the Fund.

10 (b) ELIGIBLE BORROWERS.—To be eligible to receive

11 a loan under subsection (a), a borrower shall be a child

12 care provider who seeks to receive training through the

13 infrastructure or an entity that has entered into an ar14 rangement with the Chief Executive Project Officer to pro15 vide a training site (as defined in section 201) for the in16 frastructure.

17 (c) APPLICATION.—To be eligible to receive a loan

18 under subsection (a), a borrower shall submit an applica19 tion to the Chief Executive Project Officer at such time,

20 in such manner, and containing such information as the

21 Chief Executive Project Officer, in consultation with the

22 governing board and the chief executive officer of an orga23 nization receiving a grant under section 201, may require.

24 At a minimum, the application shall include—
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1 (1) an assurance that the person shall use the

2 equipment funded through the loan to receive or dis3 seminate training through the infrastructure, for

4 such period as the Secretary may by regulation pre5 scribe; and

6 (2) an assurance that the person shall permit

7 other persons to use the equipment to receive or dis8 seminate training through the infrastructure, for

9 such period as the Secretary may by regulation pre10 scribe.

11 (d) LOANS.—In making loans under subsection (a),

12 the Chief Executive Project Officer shall—

13 (1) to the maximum extent practicable, equi14 tably distribute the loans among borrowers in the

15 various States, and among borrowers in urban, sub16 urban, and rural areas; and

17 (2) take into consideration the availability to

18 the borrowers of resources from sources other than

19 the Fund, including the availability of resources

20 through the partnerships described in section

21 201(c)(1).

22 (e) TERMS AND CONDITIONS.—

23 (1) CONDITIONS.—The Chief Executive Project

24 Officer may make a loan to a borrower under sub-
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1 section (a) only if the Chief Executive Project Offi2 cer determines that—

3 (A) the borrower is unable to obtain re4 sources from other sources on reasonable terms

5 and conditions; and

6 (B) there is a reasonable prospect that the

7 borrower will repay the loan.

8 (2) TERMS.—A loan made under subsection (a)

9 shall be—

10 (A) for a term that does not exceed 4

11 years; and

12 (B) at no interest.

13 (3) COLLATERAL.—The Chief Executive Project

14 Officer may require any borrower of a loan made

15 under subsection (a) to provide such collateral as the

16 Chief Executive Project Officer determines to be

17 necessary to secure the loan.

18 (4) PROCEDURES AND DEFINITIONS.—Prior to

19 making loans under subsection (a), the Chief Execu20 tive Project Officer shall establish written proce21 dures and definitions pertaining to defaults and col22 lections of payments under the loans, which shall be

23 subject to the review and approval of the Secretary.

24 The governing board and chief executive officer of

25 the organization involved shall provide to each appli-
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1 cant for a loan under subsection (a), at the time ap2 plication for the loan is made, a written copy of the

3 procedures and definitions.

4 (f) DEFAULTS.—

5 (1) NOTICE.—The Chief Executive Project Offi6 cer shall provide the governing board and the chief

7 executive officer of the organization at regular inter8 vals written notice of each loan made under sub9 section (a) that is in default and the status of the

10 loan.

11 (2) ACTION.—

12 (A) NOTIFICATION.—After making reason13 able efforts to collect all amounts payable under

14 a loan made under subsection (a) that is in de15 fault, the Chief Executive Project Officer shall

16 notify the governing board and the chief execu17 tive officer of the organization that the loan is

18 uncollectable or collectible only at an unreason19 able cost. The notification shall include rec20 ommendations for future action to be taken by

21 the Chief Executive Project Director.

22 (B) INSTRUCTIONS.—On receiving the no23 tification, the governing board and the chief ex24 ecutive officer of the organization shall advise

25 the Chief Executive Project Officer—
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1 (i) to continue with its collection ac2 tivities;

3 (ii) to cancel, adjust, compromise, or

4 reduce the amount of the loan; or

5 (iii) to modify any term or condition

6 of the loan, including any term or condi7 tion relating to the time of payment of any

8 installment of principal, or portion of prin9 cipal, that is payable under the loan.

10 (g) ADMINISTRATION AND ASSISTANCE.—

11 (1) IN GENERAL.—Consistent with section

12 201(i), the Chief Executive Project Officer shall, out

13 of funds available in the Fund—

14 (A) pay expenses incurred by the Chief Ex15 ecutive Project Officer in administering the

16 Fund; and

17 (B) provide competent management and

18 technical assistance to borrowers of loans made

19 under subsection (a) to assist the borrowers to

20 achieve the purposes of the loans.

21 (2) ASSISTANCE BY THE SECRETARY.—The

22 Secretary shall provide to the chief executive officer

23 of the organization and the Chief Executive Project

24 Officer such management and technical assistance as

25 the chief executive officer of the organization and
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1 the Chief Executive Project Officer may request in

2 order to carry out the provisions of this section.

3 (h) REGULATIONS.—The Secretary may prescribe

4 such regulations as may be necessary to carry out the ob5 jectives of this section, including regulations involving re6 porting and auditing.

7 TITLE III—EXPANDING YOUTH

8 DEVELOPMENT OPPORTUNI9 TIES DURING NON-SCHOOL

10 HOURS

11 SEC. 301. PURPOSE.

12 The purpose of this title is to establish programs that

13 provide care for school-age youth during non-school hours,

14 in order to create activities for youth that better enable

15 youth to develop the skills and competencies that are nec16 essary to successfully transition from childhood to adult17 hood.

18 SEC. 302. DEFINITIONS.

19 In this title:

20 (1) ASSISTANT SECRETARY.—The term ‘‘As21 sistant Secretary’’ means the Assistant Secretary for

22 Children and Families of the Department of Health

23 and Human Services.

24 (2) NON-SCHOOL HOURS PROGRAM.—The term

25 ‘‘non-school hours program’’ means a program, such
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1 as a youth development program, that provides care

2 for youth during non-school hours.

3 (3) PROTECTIVE FACTORS.—The term ‘‘protec4 tive factors’’ means research-based factors or activi5 ties that enable youth to resist high-risk behaviors

6 that may produce negative health or social outcomes.

7 (4) RISK FACTORS.—The term ‘‘risk factors’’

8 means research-based precursors that predict an in9 creased probability of developing high-risk behavior.

10 (5) YOUTH.—The term ‘‘youth’’ means an indi11 vidual who is attending an elementary or secondary

12 school, as defined in section 14101 of the Elemen13 tary and Secondary Education Act of 1965 (20

14 U.S.C. 8801).

15 (6) YOUTH DEVELOPMENT PROGRAM.—The

16 term ‘‘youth development program’’ means a pro17 gram that—

18 (A) in order to enable youth to deal suc19 cessfully with the challenges of adolescence and

20 prepare the youth for the independence and re21 sponsibilities of being parents, workers, and

22 citizens, helps the youth to develop—

23 (i) social competencies, such as work

24 and family life skills, problem-solving

25 skills, and communication skills;
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1 (ii) physical competencies, such as

2 physical conditioning, endurance, and an

3 appreciation for and strategies to achieve

4 lifelong physical health and fitness;

5 (iii) emotional competencies, such as a

6 sense of personal identity, self-confidence,

7 autonomy, and the ability to resist negative

8 peer pressure;

9 (iv) moral competencies, such as char10 acter development, personal values, ethics,

11 and a sense of responsibility and citizen12 ship (including participation in civic life

13 and community service); and

14 (v) cognitive competencies, such as

15 knowledge, reasoning ability, creativity,

16 and a lifelong commitment to learning and

17 achievement;

18 (B) conducts activities that (excluding aca19 demic activities conducted outside the classroom

20 and tutoring) have a primarily nonacademic

21 focus;

22 (C) employs primarily active and experi23 mental learning methods;
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1 (D) builds relationships between adults

2 who are positive adult role models and youth in

3 a non-school hours program setting; and

4 (E) promotes the competencies described

5 in subparagraph (A) through group or one-to6 one activities, which may include activities au7 thorized under section 308(b).

8 SEC. 303. ESTABLISHMENT OF PROGRAM.

9 (a) GRANTS.—The Assistant Secretary shall award

10 grants to eligible States, from allotments made under sec11 tion 304, to enable the eligible States to award grants to

12 entities to pay for the Federal share of the cost of estab13 lishing quality non-school hours programs.

14 (b) FEDERAL SHARE.—

15 (1) IN GENERAL.—The Federal share of the

16 cost described in subsection (a) shall be 80 percent.

17 (2) NON-FEDERAL SHARE.—The non-Federal

18 share of the cost described in subsection (a) may be

19 contributed in cash or in kind, fairly evaluated, in20 cluding facilities, equipment, or services (which may

21 be provided from State or local public sources or

22 through donations from private entities). For pur23 poses of this paragraph the term ‘‘facilities’’ includes

24 the use of facilities, but the term ‘‘equipment’’
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1 means donated equipment and not the use of equip2 ment.

3 SEC. 304. STATE ALLOTMENTS.

4 (a) RESERVATION.—The Assistant Secretary shall reserve not more than 1 5 ⁄2 of 1 percent of the amount appro6 priated under section 412 for each fiscal year for pay7 ments to Guam, American Samoa, the United States Vir8 gin Islands, and the Commonwealth of the Northern Mar9 iana Islands, to be allotted in accordance with their re10 spective needs for assistance under this title.

11 (b) ALLOTMENTS.—From the amount appropriated

12 under section 412 for each fiscal year and remaining after

13 amounts are reserved under subsection (a), the Assistant

14 Secretary shall allot to each State that has an application

15 approved under section 305, an amount determined under

16 subsection (c).

17 (c) ALLOTMENT FORMULA.—

18 (1) IN GENERAL.—Subject to paragraph (2),

19 the Assistant Secretary shall allot to each State an

20 amount equal to the sum of—

21 (A) an amount that bears the same ratio

22 to 50 percent of the remainder described in

23 subsection (b) as the number of children and

24 youth who are age 5 through 17 in the State
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1 bears to the number of such children and youth

2 in all States; and

3 (B) an amount that bears the same ratio

4 to 50 percent of the remainder as the number

5 of children and youth in the State who are re6 ceiving free or reduced price lunches under the

7 school lunch program established under the Na8 tional School Lunch Act (42 U.S.C. 1751 et

9 seq.) bears to the number of such children and

10 youth in all States.

11 (2) MINIMUM ALLOTMENT.—No State shall re12 ceive an allotment under paragraph (1) for a fiscal

year in an amount that is less than 1 13 ⁄2 of 1 percent

14 of the total amount appropriated for the fiscal year

15 under section 412.

16 (d) DATA AND INFORMATION.—The Assistant Sec17 retary shall obtain from each appropriate Federal agency,

18 the most recent data and information necessary to deter19 mine the allotments provided for in this section.

20 (e) REALLOTMENTS.—

21 (1) IN GENERAL.—Any portion of the allotment

22 to a State that is not used for activities under sec23 tion 308 or subsection (g), in the fiscal year for

24 which the allotment is made available, shall be real25 lotted by the Assistant Secretary to other States in
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1 proportion to the original allotments to the other

2 States.

3 (2) LIMITATIONS.—

4 (A) REDUCTION OF REALLOTMENT

5 AMOUNT.—The amount of any reallotment to

6 which a State is entitled under paragraph (1)

7 shall be reduced to the extent that the allot8 ment exceeds the amount that the Assistant

9 Secretary estimates will be used by the State or

10 entities in the State to carry out activities

11 under section 308 or subsection (g).

12 (B) REALLOTMENT OF THE REDUCTION.—

13 The amount of any reduction under subpara14 graph (A) shall be reallotted among all other

15 States for which no reduction in an allotment

16 or reallotment is required by this subsection.

17 (3) AMOUNTS REALLOTTED.—For purposes of

18 this title, any amount reallotted to a State under

19 this subsection from an allotment made for a fiscal

20 year shall be considered to be part of the allotment

21 made under subsection (b) to the State for the fol22 lowing fiscal year.

23 (f) SUPPLEMENT NOT SUPPLANT.—Amounts re24 ceived under this section shall be used to supplement and
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1 not supplant other Federal, State, and local public funds

2 expended to provide non-school hours programs.

3 (g) ADMINISTRATIVE COSTS.—A State that receives

4 a grant under this title may use—

5 (1) not more than 5 percent of the funds made

6 available through the grant to carry out training and

7 technical assistance activities under this title; and

8 (2) not more than an additional 10 percent of

9 the funds to pay for other costs associated with ad10 ministering activities under this title.

11 (h) DEFINITION.—In this section, the term ‘‘State’’

12 means the 50 States, the District of Columbia, and the

13 Commonwealth of Puerto Rico.

14 SEC. 305. STATE APPLICATION.

15 (a) IN GENERAL.—To be eligible for a grant under

16 this title, a State shall submit an application to the Assist17 ant Secretary at such time, in such manner, and accom18 panied by such information as the Assistant Secretary

19 may reasonably require.

20 (b) CONTENTS.—Each application submitted pursu21 ant to subsection (a) shall contain—

22 (1) such information as the Assistant Secretary

23 determines is necessary to ensure that the grant will

24 be distributed and used in accordance with this title;

25 and
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1 (2) information designating administrative re2 gions (in which the administration of Federal or

3 State programs is carried out), or political subdivi4 sions, of the State as regions to which funds will be

5 allocated under section 306.

6 SEC. 306. LOCAL ALLOCATIONS AND GRANTS.

7 (a) ALLOCATIONS.—From the funds made available

8 to a State under section 304(b) for each fiscal year and

9 not used under section 304(g), the State shall allocate to

10 each region designated under section 305(b)(2) an amount

11 equal to the sum of—

12 (1) an amount that bears the same ratio to 50

13 percent of the remainder as the number of children

14 and youth who are age 5 through 17 in the region

15 bears to the number of such children and youth in

16 all regions of the State; and

17 (2) an amount that bears the same ratio to 50

18 percent of the remainder as the number of children

19 and youth in the region who are receiving free or re20 duced price lunches under the school lunch program

21 established under the National School Lunch Act

22 (42 U.S.C. 1751 et seq.) bears to the number of

23 such children and youth in all regions of the State.

24 (b) ALLOCATION DATA AND INFORMATION.—The

25 State shall obtain from each appropriate Federal or State
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1 agency, the most recent data and information necessary

2 to determine the allocations provided for in this section.

3 (c) REALLOCATIONS.—

4 (1) IN GENERAL.—Any portion of the allocation

5 to a region that is not used for activities under sec6 tion 308, in the fiscal year for which the allocation

7 is made available, shall be reallocated by the State

8 to other regions in proportion to the original alloca9 tions.

10 (2) LIMITATIONS.—

11 (A) REDUCTION OF REALLOCATION

12 AMOUNT.—The amount of any reallocation to

13 which a region is entitled under paragraph (1)

14 shall be reduced to the extent that the alloca15 tion exceeds the amount that the State esti16 mates will be used by entities in the region to

17 carry out activities under section 308.

18 (B) REALLOCATION OF THE REDUC19 TION.—The amount of any reduction under

20 subparagraph (A) shall be reallocated among

21 other regions for which no reduction in an allo22 cation or reallocation is required by this sub23 section.

24 (3) AMOUNTS REALLOCATED.—For purposes of

25 this title, any amount reallocated to a region under
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1 this subsection from an allocation made for a fiscal

2 year shall be considered to be part of the allocation

3 made under subsection (a) to the region for the fol4 lowing fiscal year.

5 (d) GRANTS.—The State shall use the funds allocated

6 to each region under subsection (a) to award grants, on

7 a competitive basis, to entities in that region.

8 (e) PREFERENCE.—In awarding a grant under sub9 section (d), the State shall give preference to an entity

10 that provides an assurance that the entity will use the

11 funds made available through the grant to carry out a

12 non-school hours program that will—

13 (1) have activities that are designed to remove

14 barriers to the availability of non-school hours child

15 care; and

16 (2) coordinate resources from public and pri17 vate entities to achieve a cohesive network consisting

18 of a variety of activities for youth.

19 (f) SUPPLEMENT NOT SUPPLANT.—Amounts re20 ceived under this section shall be used to supplement and

21 not supplant other Federal, State, and local public funds

22 expended to provide non-school hours programs.

23 SEC. 307. LOCAL APPLICATION.

24 (a) IN GENERAL.—An entity within a region that de25 sires to receive a grant under section 306 shall submit
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1 an application to the State at such time, in such manner,

2 and accompanied by such information as the State may

3 require.

4 (b) CONTENTS.—Each application submitted pursu5 ant to subsection (a) shall contain—

6 (1) a statement that demonstrates that the en7 tity maintains co-operative agreements with a broad

8 range of community entities that provide direct or

9 indirect services to youth; and

10 (2) such information as the State determines is

11 necessary to ensure that the allocation will be dis12 tributed and used in accordance with this title.

13 SEC. 308. USE OF GRANT FUNDS.

14 (a) PROGRAM REQUIREMENTS.—Funds made avail15 able through a grant received under this title for a non16 school hours program shall be used by an entity to pay

17 for activities that—

18 (1) meet the child care needs of working par19 ents during non-school hours, including the hours

20 before and after school, weekends, school holidays,

21 vacation periods, and other non-school hours;

22 (2) address at least 2 of the competencies de23 scribed under paragraph (6)(A) of section 302;

24 (3) are designed to reduce risk factors;
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1 (4) are designed to increase protective factors;

2 and

3 (5) are designed to assist youth in acquiring

4 skills and competencies necessary to make a success5 ful transition from childhood to adulthood.

6 (b) AUTHORIZED ACTIVITIES.—Funds made avail7 able through a grant received under this title may be used

8 by an entity for activities for youth, including activities

9 that focus on or promote—

10 (1) leadership development;

11 (2) mentoring;

12 (3) crime and delinquency prevention;

13 (4) community service or volunteerism;

14 (5) literacy;

15 (6) involvement in youth groups;

16 (7) sports and recreation;

17 (8) peer counseling and teaching;

18 (9) the arts;

19 (10) character development;

20 (11) prevention of violence, including domestic

21 violence;

22 (12) mediation skills training;

23 (13) drug abuse prevention;

24 (14) alcohol education;

25 (15) parenting skills;
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1 (16) camping and environmental education;

2 (17) ethnic or cultural enrichment; and

3 (18) tutoring and academic enrichment.

4 (c) LIMITATION.—

5 (1) LOW-INCOME YOUTH.—Each entity that re6 ceives a grant under this title shall use not less than

7 50 percent of the funds made available through the

8 grant to subsidize the cost of activities described in

9 subsection (b) for youth who are children of families

10 that meet the income eligibility guidelines for free or

11 reduced price lunches under section 9(b) of the Na12 tional School Lunch Act (42 U.S.C. 1758(b)).

13 (2) INFORMATION.—An entity that receives a

14 grant under this title shall be considered to be a per15 son directly connected with the administration of a

16 Federal education program for purposes of section

17 9(b)(2)(C)(iii)(II)(aa) of the National School Lunch

18 Act (42 U.S.C. 1758(b)(2)(C)(iii)(II)(aa)). A school

19 serving youth who are receiving services under this

20 title from the entity shall provide information to the

21 entity on the income eligibility status of the youth

22 who are children described in section 9(b)(2)(C)(iv)

23 of such Act (42 U.S.C. 1758(b)(2)(C)(iv)), in ac24 cordance with that section, to enable the entity to

25 meet the requirements of paragraph (1).
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1 SEC. 309. FEDERAL ADMINISTRATION; DUTIES OF THE AS2 SISTANT SECRETARY.

3 (a) MONITORING AND EVALUATION.—The Assistant

4 Secretary shall develop and establish a system for moni5 toring and evaluating the effectiveness of activities funded

6 under this title.

7 (b) COORDINATION.—The Assistant Secretary shall

8 consult with the heads of appropriate Federal agencies,

9 including the Administrator of the Office of Juvenile Jus10 tice and Delinquency Prevention, and other Federal offi11 cers carrying out Federal non-school hours programs, to

12 ensure effective coordination of activities funded under

13 this title with other Federal programs serving youth and

14 families.

15 (c) TRAINING AND TECHNICAL ASSISTANCE.—The

16 Assistant Secretary shall develop and establish a system

17 for providing training and technical assistance to States

18 and local entities to increase their capacity to provide

19 quality non-school hours programs.

20 (d) NONCOMPLIANCE.—If the Assistant Secretary de21 termines, based on a review of the annual reports, audits,

22 or other documentation required under this title, that a

23 State or an entity that receives a grant under this title

24 is not complying with the requirements of this title, the

25 Assistant Secretary shall—
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1 (1) inform the State or entity of the deficiencies

2 that need correction;

3 (2) provide appropriate training and technical

4 assistance designed to correct the deficiencies and

5 ensure compliance with the requirements; and

6 (3) initiate actions to terminate funding to the

7 State or an entity under this title if, after a reason8 able period of time, the State or entity has not made

9 substantial efforts to correct the deficiencies and

10 comply with the requirements.

11 SEC. 310. STATE ADMINISTRATION; DUTIES OF THE STATES.

12 (a) DESIGNATION OF STATE ENTITY.—In order for

13 a State to receive a grant under this title, the Governor

14 of the State shall establish or designate an entity to ad15 minister the activities carried out in the State under this

16 title.

17 (b) YOUTH DEVELOPMENT INPUT.—The State shall

18 establish a mechanism to regularly receive advice and

19 input from a representative mix of individuals and organi20 zations that provide services under this title to youth, or

21 receive services under this title, to improve the effective22 ness and increase coordination of non-school hours pro23 grams under this title in the State.

24 (c) REVIEW AND COMPLIANCE.—
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1 (1) MONITORING OPERATIONS.—The State

2 shall have primary responsibility for ensuring that

3 the grant is administered in compliance with this

4 title.

5 (2) TECHNICAL ASSISTANCE.—The State shall

6 provide technical assistance related to the develop7 ment and implementation of non-school hours pro8 grams receiving grants under this title.

9 (3) NONCOMPLIANCE.—If the State determines,

10 based on a review of the annual reports, audits, or

11 other documentation required under this title, that

12 an entity carrying out an activity funded by this title

13 is not complying with the requirements of this title,

14 the State shall—

15 (A) inform the entity of the deficiencies

16 that need correction;

17 (B) provide appropriate training and tech18 nical assistance designed to correct the defi19 ciencies and ensure compliance with the re20 quirements; and

21 (C) initiate actions to terminate funding to

22 the entity under this title if, after a reasonable

23 period of time, the entity has not made sub24 stantial efforts to correct the deficiencies and

25 comply with the requirements.
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1 (d) ANNUAL REPORT AND AUDIT.—

2 (1) IN GENERAL.—Each State shall, not later

3 than 120 days after the end of each fiscal year of

4 the State, prepare and submit to the Assistant Sec5 retary an annual report, in such manner and con6 taining such information as the Assistant Secretary

7 may reasonably require to determine compliance

8 with this title.

9 (2) CONTENTS.—The report described in para10 graph (1) shall include—

11 (A) information on the activities funded in

12 the State under this title during the fiscal year;

13 and

14 (B) the extent to which the activities fund15 ed in the State have helped youth develop the

16 competencies described in paragraph (6) of sec17 tion 302.

18 (3) AUDIT.—Together with each report sub19 mitted under this section, the State shall submit the

20 findings of an independent audit conducted in ac21 cordance with chapter 75 of title 31, United States

22 Code, concerning such activities.

23 SEC. 311. COORDINATION WITH OTHER PROGRAMS.

24 Activities that receive funding under this title shall

25 be coordinated with programs and activities that receive
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1 funding under the Safe and Drug-Free Schools and Com2 munities Act of 1994 (20 U.S.C. 7101 et seq.) or the 21st

3 Century Community Learning Centers Act (20 U.S.C.

4 8241 et seq.).

5 SEC. 312. AUTHORIZATION OF APPROPRIATIONS.

6 (a) IN GENERAL.—There is authorized to be appro7 priated to carry out this title—

8 (1) $500,000,000 for fiscal year 2000;

9 (2) $600,000,000 for fiscal year 2001;

10 (3) $700,000,000 for fiscal year 2002;

11 (4) $800,000,000 for fiscal year 2003; and

12 (5) $1,000,000,000 for fiscal year 2004.

13 (b) AVAILABILITY OF FUNDS.—Subject to sections

14 304(e) and 306(c), no State or entity that receives funds

15 during a fiscal year may expend the funds after the end

16 of the fiscal year.

17 TITLE IV—EXPANDING CHILD

18 CARE SUBSIDY FOR LOW-IN19 COME FAMILIES

20 SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

21 Section 658B of the Child Care and Development

22 Block Grant Act of 1990 (42 U.S.C. 9858) is amended

23 by striking ‘‘$1,000,000,000’’ and inserting

24 ‘‘$2,000,000,000’’.
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1 SEC. 402. APPLICATION AND PLAN.

2 Section 658E(c) of the Child Care and Development

3 Block Grant Act of 1990 (42 U.S.C. 9858c(c)) is

4 amended—

5 (1) in paragraph (2), by striking subparagraph

6 (H) and inserting the following:

7 ‘‘(H) Provide an assurance that if the

8 State uses an automated system described in

9 section 658K(a)(3), the State will ensure that

10 the system—

11 ‘‘(i) if used to provide payment for

12 child care services, operates in a manner

13 that ensures prompt and accurate payment

14 of child care providers; and

15 ‘‘(ii) does not limit parental choice.’’;

16 (2) in paragraph (3)(D)—

17 (A) by striking ‘‘a substantial portion’’ and

18 inserting ‘‘not less than 70 percent’’; and

19 (B) by striking ‘‘described in paragraph

20 (2)(H)’’ and inserting ‘‘receiving assistance

21 under a State program under part A of title IV

22 of the Social Security Act (42 U.S.C. 601 et

23 seq.), families attempting to transition off the

24 assistance program through work activities, and

25 families that are at risk of becoming dependent

26 on the assistance program’’;
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1 (3) in paragraph (4)(A)—

2 (A) by inserting ‘‘, of the type chosen by

3 the parents of the children,’’ after ‘‘comparable

4 child care services’’; and

5 (B) by adding at the end the following:

6 ‘‘To ensure maximum parental choice, the State

7 plan shall provide that the rates for the State

8 shall be determined under separate rate sched9 ules dependent upon—

10 ‘‘(i) the age of the child served;

11 ‘‘(ii) the child care setting;

12 ‘‘(iii) the special needs of the child;

13 and

14 ‘‘(iv) the geographic location of the

15 services within a State.’’; and

16 (4) in paragraph (5)—

17 (A) by striking ‘‘The’’ and inserting the

18 following:

19 ‘‘(A) IN GENERAL.—The’’; and

20 (B) by inserting after subparagraph (A)

21 (as designated in subparagraph (A)) the fol22 lowing:

23 ‘‘(B) APPLICATION OF COPAYMENT.—The

24 State plan shall provide that, if the State pro25 vides to a family a subsidy authorized under
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1 this subchapter that is less than 85 percent of

2 the applicable market rate determined under

3 paragraph (4) and also requires a copayment

4 from the family to meet the cost sharing re5 quirement of subparagraph (A), the State shall

6 reduce the amount of the copayment by the

7 amount of the difference between the market

8 rate and the subsidy.’’.

9 SEC. 403. AUTOMATED SYSTEMS.

10 Section 658K(a) of the Child Care and Development

11 Block Grant Act of 1990 (42 U.S.C. 9858i(a)) is amended

12 by adding at the end the following:

13 ‘‘(3) AUTOMATED SYSTEMS.—A State that re14 ceives funds to carry out this subchapter may use an

15 automated system, including an electronic benefit

16 transfer system—

17 ‘‘(A) for monitoring or tracking child care

18 attendance or otherwise conducting data collec19 tion under this subchapter;

20 ‘‘(B) as a means of ensuring prompt and

21 accurate payment for child care services under

22 this subchapter; or
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1 ‘‘(C) for other purposes that increase the

2 efficiency of the State in administering the

3 funds.’’.

Æ