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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 814 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Creating Healthy 
Opportunities and Improving Child Education and Support Act'' or as the 
``CHOICES Act''.
    (b) Table of Contents.--The table of contents of 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.
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.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Accredited child care facility.--The term ``accredited 
        child care facility'' means--
                    (A) a facility that is accredited, by a child care 
                credentialing or accreditation entity recognized by a 
                State or national organization described in paragraph 
                (2)(A), to provide child care (except children who a 
                tribal organization elects to serve through a facility 
                described in subparagraph (B));
                    (B) a facility that is accredited, by a child care 
                credentialing or accreditation entity recognized by a 
                tribal organization, to provide child care for children 
                served by the tribal organization;
                    (C) a facility that is used as a Head Start center 
                under the Head Start Act (42 U.S.C. 9831 et seq.) and 
                is in compliance with applicable performance standards 
                established by regulation under such Act for Head Start 
                programs; or
                    (D) a military child development center (as defined 
                in section 1798(1) of title 10, United States Code) 
                that is in a facility owned or leased by the Department 
                of Defense or the Coast Guard.
            (2) Child care credentialing or accreditation entity.--The 
        term ``child care credentialing or accreditation entity'' means 
        a nonprofit private organization or public agency that--
                    (A) is recognized by a State agency, a tribal 
                organization, or a national organization that serves as 
                a peer review panel on the standards and procedures of 
                public and private child care or school accrediting 
                bodies; and
                    (B) accredits a facility or credentials an 
                individual to provide child care on the basis of--
                            (i) an accreditation or credentialing 
                        instrument based on peer-validated research;
                            (ii) compliance with applicable State and 
                        local licensing requirements, or standards 
                        described in section 658E(c)(2)(E)(ii) of the 
                        Child Care and Development Block Grant Act (42 
                        U.S.C. 9858c(c)(2)(E)(ii)), as appropriate, for 
                        the facility or individual;
                            (iii) outside monitoring of the facility or 
                        individual; and
                            (iv) criteria that provide assurances of--
                                    (I) compliance with age-appropriate 
                                health and safety standards at the 
                                facility or by the individual;
                                    (II) use of developmentally 
                                appropriate educational activities, as 
                                an integral part of the child care 
                                program carried out at the facility or 
                                by the individual; and
                                    (III) use of ongoing staff 
                                development or training activities for 
                                the staff of the facility or the 
                                individual, including related skills-
                                based testing.
            (3) Credentialed child care professional.--The term 
        ``credentialed child care professional'' means--
                    (A) an individual who--
                            (i) is credentialed, by a child care 
                        credentialing or accreditation entity 
                        recognized by a State or a national 
                        organization described in paragraph (2)(A), to 
                        provide child care (except children who a 
                        tribal organization elects to serve through an 
                        individual described in subparagraph (B)); or
                            (ii) successfully completes a 4-year or 
                        graduate degree in a relevant academic field 
                        (such as early childhood education, education, 
                        or recreation services);
                    (B) an individual who is credentialed, by a child 
                care credentialing or accreditation entity recognized 
                by a tribal organization, to provide child care for 
                children served by the tribal organization; or
                    (C) an individual certified by the Armed Forces of 
                the United States to provide child care as a family 
                child care provider (as defined in section 658P of the 
                Child Care and Development Block Grant Act of 1990 (42 
                U.S.C. 9858n)) in military family housing.
            (4) State; tribal organization.--The terms ``State'' and 
        ``tribal organization'' have the meaning given the term in 
        section 658P of the Child Care and Development Block Grant Act 
        (42 U.S.C. 9858n).

       TITLE II--ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE

      Subtitle A--Child Care Quality Improvement Incentive Program

SEC. 101. DEFINITIONS.

    In this subtitle:
            (1) Child care provider.--The term ``child care provider'' 
        means--
                    (A) a center-based child care provider, a group 
                home child care provider, a family child care provider, 
                or other provider of non-residential child care 
                services for compensation that--
                            (i) is licensed, regulated, registered, or 
                        otherwise legally operating under State law; 
                        and
                            (ii) satisfies the State and local 
                        requirements;
                applicable to the child care services the provider 
                provides; or
                    (B) a child care provider that is 18 years of age 
                or older who provides child care services only to an 
                eligible child who is, by affinity or consanguinity, or 
                by court decree, the grandchild, great grandchild, 
                sibling, niece, or nephew of such provider, if such 
                provider does not reside in the same residence with the 
                child for whom the provider is providing care and if 
                the provider complies with any applicable requirements 
                that govern child care provided by the relative 
                involved.
            (2) Family child care provider.--The term ``family child 
        care provider'' has the meaning given the term in section 658P 
        of the Child Care and Development Block Grant Act of 1990 (42 
        U.S.C. 9858n).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.

SEC. 102. ESTABLISHMENT OF STATE PROGRAM.

    (a) In General.--The Secretary shall establish a program to award 
grants to eligible States to pay for the Federal share of the cost of 
enabling such States to carry out activities to improve the quality of 
child care for children in the States (except children who a tribal 
organization elects to serve under section 106).
    (b) Awarding of Grants.--The Secretary shall award the grants to 
the States from allotments made in accordance with section 103.
    (c) Limitation on Administrative Costs.--
            (1) In general.--The Secretary shall not use more than 5 
        percent of the amount appropriated under section 107 for a 
        fiscal year for the administrative costs associated with the 
        administration of the program under this section.
            (2) Definition.--In paragraph (1), the term 
        ``administrative costs'' shall not include the costs of 
        providing direct services.

SEC. 103. DISTRIBUTION.

    (a) Amounts Reserved.--The Secretary shall reserve not more than 
\1/2\ of 1 percent of the amount appropriated under this subtitle for 
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.
    (b) State Allotment.--
            (1) General rule.--From the amount appropriated under 
        section 107 for each fiscal year and remaining after 
        reservations made under subsection (a), section 102(c), and 
        section 106, the Secretary shall allot to each State an amount 
        equal to the sum of--
                    (A) an amount that bears the same ratio to 50 
                percent of the 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 the 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) Minimum allotment.--The amount of an allotment awarded 
        to a State under this subsection shall not be less than an 
        amount equal to 0.75 percent of the total amount appropriated 
        for the fiscal year under section 107.
            (3) 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 the children in all States as 
        provided by the most recent annual estimates of population in 
        the States by the Bureau of the Census of the Department of 
        Commerce.
            (4) 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 National School Lunch Act (42 
        U.S.C. 1751 et seq.) to the number of the children in all 
        States as determined annually by the Department of Agriculture.
            (5) 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, the allotment 
                        percentage of that State shall be considered to 
                        be 1.2 percent; and
                            (ii) is less than 0.8 percent, the 
                        allotment percentage of the State shall be 
                        considered to be 0.8 percent.
                    (C) Per capita income.--For purposes of 
                subparagraph (A), per capita income shall be--
                            (i) determined at 2-year intervals;
                            (ii) applied for the 2-year period 
                        beginning on October 1 of the first fiscal year 
                        beginning on the date the determination is 
                        made; and
                            (iii) equal to the average of the annual 
                        per capita incomes for the most recent period 
                        of 3 consecutive years for which satisfactory 
                        data are available from the Department of 
                        Commerce at the time the determination is made.
    (c) Data and Information.--The Secretary shall obtain from each 
appropriate Federal agency, the most recent data and information 
necessary to determine the allotments provided for in subsection (b).
    (d) Reallotments.--
            (1) In general.--Any portion of the allotment under 
        subsection (b) to a State that the Secretary determines is not 
        required to carry out State activities approved under section 
        104, in the period for which the allotment is made available, 
        shall be reallotted by the Secretary to other States in 
        proportion to the original allotments to the other States.
            (2) Limitations.--
                    (A) Reduction.--The amount of any reallotment to 
                which a State is entitled under paragraph (1) shall be 
                reduced to the extent that the allotment exceeds the 
                amount that the Secretary estimates will be used in the 
                State to carry out State activities approved under 
                section 104.
                    (B) Reallotments.--The amount of the reduction 
                shall be similarly reallotted among States for which no 
                reduction in an allotment or reallotment is required by 
                this subsection.
            (3) Amounts reallotted.--For purposes of any other section 
        of this subtitle, any amount reallotted to a State under this 
        subsection shall be considered to be part of the allotment made 
        under subsection (b) to the State.
    (e) Definition.--In this section, the term ``State'' includes only 
the 50 States, the District of Columbia, and the Commonwealth of Puerto 
Rico.

SEC. 104. STATE ELIGIBILITY AND APPLICATION REQUIREMENTS.

    (a) Eligibility.--To be eligible to receive a grant under this 
subtitle, a State shall certify to the Secretary that the State--
            (1) has not reduced the scope of any State child care 
        standards or requirements that were in effect on January 1, 
        1995;
            (2) has not limited the State licensing requirements with 
        respect to the types of providers that must obtain licenses in 
        order to provide child care in the State as compared to the 
        types of providers that were required to obtain the licenses on 
        January 1, 1995;
            (3) has not otherwise restricted the application of State 
        child care licensing requirements that were in effect on 
        January 1, 1995;
            (4) is in compliance with the requirements applicable to 
        the State under the Child Care and Development Block Grant Act 
        of 1990 (42 U.S.C. 9858 et seq.); and
            (5) has, with respect to the fiscal year involved, made 
        available sufficient State matching funds to draw down at least 
        80 percent of the amount awarded to the State for the preceding 
        fiscal year under a grant under section 418(a)(2) of the Social 
        Security Act (42 U.S.C. 618(a)(2)).
    (b) Federal Share.--
            (1) In general.--The Federal share of the cost of the State 
        activities approved under this section is 90 percent.
            (2) Non-federal share.--A State that receives a grant under 
        section 102 shall contribute the non-Federal share of the cost 
        in cash (which may be provided from State or local public 
        sources or through donations from private entities).
    (c) Application.--To be eligible to receive a grant under this 
subtitle, a State shall prepare and submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary shall require, including--
            (1) an assurance that the State will comply with the 
        requirements applicable to States under this subtitle; and
            (2) an assurance that the State will not use funds received 
        under the grant to supplant or replace funds used by the State 
        to improve the quality or increase the supply of child care as 
        required under section 658G of the Child Care and Development 
        Block Grant Act of 1990 (42 U.S.C. 9858e).

SEC. 105. USE OF FUNDS BY STATES.

    A State may use amounts provided under a grant awarded under this 
subtitle to the State to--
            (1) establish a subsidy program to provide funds to child 
        care providers who are credentialed in the State (as described 
        in section 2(3));
            (2) provide assistance to small businesses located in the 
        State in establishing and operating child care programs that 
        may include--
                    (A) technical assistance in the establishment of a 
                child care program;
                    (B) assistance for the start-up costs related to a 
                child care program;
                    (C) assistance for the training of child care 
                providers;
                    (D) scholarships for low-income wage earners in the 
                programs;
                    (E) assistance to enable the businesses to provide 
                services to care for sick children or to provide care 
                to school age children; or
                    (F) assistance to enable the businesses to provide 
                care for children with disabilities;
            (3) improve parental choice through consumer education 
        efforts in the State concerning child care, including the 
        expansion of resource and referral services and improvement of 
        State child care complaint systems;
            (4) establish a scholarship program for child care 
        providers to assist in meeting the educational or training 
        costs associated with accreditation of facilities or 
        credentialing of providers (as described in paragraphs (1) and 
        (3) of section 2);
            (5) expand State-based child care training and technical 
        assistance activities;
            (6) develop criteria for State recognition of entities to 
        accredit facilities, and credential child care providers, in 
        the State, as described in section 2;
            (7) provide increased rates of reimbursement under Federal 
        or State child care assistance programs for child care that is 
        provided by credentialed child care professionals or at 
        accredited child care centers;
            (8) provide differential rates of reimbursement under 
        Federal or State child care assistance programs for special 
        needs children;
            (9) purchase special equipment or supplies or otherwise 
        provide for the payment of other extraordinary expenses 
        required for the care of special needs (including disabled) 
        children and the distribution of such equipment or supplies to 
        child care providers serving special needs children;
            (10) support networks for family child care providers;
            (11) establish linkages between child care providers;
            (12) conduct background checks of child care providers; and
            (13) increase State monitoring of licensed child care 
        facilities in accordance with State law.

SEC. 106. RESERVATION.

    The Secretary shall reserve not more than 1.5 percent of the amount 
appropriated under section 107 for a fiscal year to make grants under 
this subtitle to tribal organizations submitting applications described 
in section 104(c), to be used in accordance with section 105.

SEC. 107. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this subtitle 
$200,000,000 for each of fiscal years 2000 through 2004.

 Subtitle B--Increased Enforcement of State Health and Safety Standards

SEC. 111. ENFORCEMENT OF STATE HEALTH AND SAFETY STANDARDS.

    (a) Identification of State Inspection Rate.--
            (1) In general.--Section 658E(c)(2)(G) of the Child Care 
        and Development Block Grant Act of 1990 (42 U.S.C. 
        9858c(c)(2)(G)) is amended by striking the period and inserting 
        ``, and provide the percentage of child care provider 
        inspections required under State law that were completed by the 
        State for each of the 2 preceding fiscal years.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        applies to State plans under the Child Care and Development 
        Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) on and after 
September 1, 2000.
    (b) Increased or Decreased Allotments.--Section 658O(b) of the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m(b)) 
is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by inserting ``, subject to paragraph (5),'' after 
        ``shall''; and
            (2) by adding at the end the following:
            ``(5) Increased or decreased allotment based on state 
        inspection rate.--
                    ``(A) Increased allotment for fiscal years 2000, 
                2001, and 2002.--
                            ``(i) In general.--Subject to clause (iii), 
                        for fiscal years 2000, 2001, and 2002, the 
                        allotment determined for a State under 
                        paragraph (1) for each such fiscal year shall 
                        be increased by an amount equal to 10 percent 
                        of such allotment for the fiscal year involved 
                        with respect to any State--
                                    ``(I) that certifies to the 
                                Secretary that the State has not 
                                reduced the scope of any State child 
                                care health or safety standards or 
                                requirements that were in effect on 
                                January 1, 1995; and
                                    ``(II) that, with respect to the 
                                preceding fiscal year, had a percentage 
                                of completed child care provider 
                                inspections (as required to be reported 
                                under section 658E(c)(2)(G)) that was 
                                not less than the target inspection and 
                                enforcement percentage specified under 
                                clause (ii) for the fiscal year for 
                                which the allotment is to be paid.
                            ``(ii) Target inspection and enforcement 
                        percentage.--For purposes of clause (i)(II), 
                        the target inspection and enforcement 
                        percentage is--
                                    ``(I) for fiscal year 2000, 75 
                                percent;
                                    ``(II) for fiscal year 2001, 80 
                                percent; and
                                    ``(III) for fiscal year 2002, 100 
                                percent.
                            ``(iii) Pro rata reductions if insufficient 
                        appropriations.--The Secretary shall make pro 
                        rata reductions in the percentage increase 
                        otherwise required under clause (i) for a State 
                        allotment for a fiscal year as necessary so 
                        that the aggregate of all the allotments made 
                        under this subsection does not exceed the 
                        amount appropriated for that fiscal year under 
                        section 658B, and remaining after reservations 
                        under subsection (a).
                    ``(B) Decreased allotment for fiscal years 2001 and 
                2002.--
                            ``(i) In general.--The allotment determined 
                        for a State under paragraph (1) for each of 
                        fiscal years 2001 and 2002 shall be decreased 
                        by an amount that is not less than 2 percent of 
                        such allotment for the fiscal year involved 
                        (except that such amount shall not be more than 
                        the State's expenditures on administrative 
                        costs under this subchapter during the 
                        preceding fiscal year), with respect to any 
                        State that, with respect to the preceding 
                        fiscal year, had a percentage of completed 
                        child care provider inspections (as required to 
                        be reported under section 658E(c)(2)(G)) that 
                        was less than the minimum inspection and 
                        enforcement percentage specified under clause 
                        (ii) for the fiscal year for which the 
                        allotment is to be paid.
                            ``(ii) Minimum inspection and enforcement 
                        percentage.--For purposes of clause (i), the 
                        minimum inspection and enforcement percentage 
                        is--
                                    ``(I) for fiscal year 2001, 50 
                                percent; and
                                    ``(II) for fiscal year 2002, 75 
                                percent.
                            ``(iii) Requirement to expend state funds 
                        to replace reduction.--If the allotment 
                        determined for a State for a fiscal year is 
                        reduced by reason of clause (i), the State 
                        shall, during the immediately succeeding fiscal 
                        year, expend additional State funds under the 
                        State plan funded under this subchapter, in an 
                        amount equal to the amount of such reduction. 
                        During the succeeding fiscal year, the State 
                        shall maintain the level of services provided 
                        by the State under this subchapter during 
the fiscal year for which the determination is made.''.

    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.

    (a) Provision of Information.--
            (1) In general.--The Secretary of Health and Human 
        Services, by awarding contracts to qualified entities on a 
        competitive basis, shall--
                    (A) provide technical assistance concerning the 
                importance of the high quality child care to States, 
                units of local government, private nonprofit child care 
                organizations, child care credentialing or 
                accreditation entities, child care providers, and 
                parents;
                    (B) collect and disseminate information on the 
                importance of high quality child care to States, units 
                of local government, private non-profit child care 
                organizations, child care credentialing or 
                accreditation entities, child care providers, and 
                parents, including, in partnership with the Advertising 
                Council or another professional advertising group, 
                carrying out a public awareness campaign promoting 
                quality child care.
            (2) Preference.--In awarding the contracts, the Secretary 
        shall give preference to qualified entities with experience in 
        carrying out the activities described in paragraph (1).
    (b) Uniformity in Data Collection and Dissemination by National, 
State, and Local Child Care Resource and Referral Services.--The 
Secretary of Health and Human Services shall develop a mechanism, for 
use by organizations including organizations providing the resource and 
referral services described in section 658G (42 U.S.C. 9858e), for the 
collection and dissemination of statistical data on the supply and 
demand for child care on the national, State, and local levels.
    (c) Grant Program.--
            (1) In general.--The Secretary of Health and Human Services 
        shall award competitive grants to child care credentialing or 
        accreditation entities that have been providing credentialing 
        or accreditation services for child care providers for not more 
        than 10 years.
            (2) Application.--To be eligible to receive a grant under 
        this subsection, a child care credentialing or accreditation 
        entity shall prepare and submit to the Secretary an application 
        at such time, in such manner, and containing such information 
        as the Secretary shall require.
            (3) Use of funds.--Amounts provided under a grant awarded 
        under paragraph (1) shall be used by grantees to refine and 
        evaluate the procedures and methods used by such grantees in 
        accrediting facilities as accredited child care facilities or 
        credentialing individual child care providers as credentialed 
        child care professionals. Such procedures and methods shall be 
        designed to ensure that the highest quality child care is 
        provided by the accredited child care facilities and 
        credentialed child care professionals, to provide information 
        about the accreditation or credentialing process to providers, 
        and to provide subsidies to needy individuals and organizations 
        to enable such individuals and organization to participate in 
        the accreditation or credentialing process.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 2000 through 2004.

       TITLE II--EXPANDING PROFESSIONAL DEVELOPMENT OPPORTUNITIES

SEC. 201. CHILD CARE TRAINING INFRASTRUCTURE.

    (a) Definitions.--In this section:
            (1) Child care provider.--The term ``child care provider'' 
        has the meaning given the term in section 101.
            (2) Elementary school; secondary school.--The terms 
        ``elementary school'' and ``secondary school'' have the 
        meanings given the terms in section 14101 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 8801).
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (5) Training site.--The term ``training site'' means a 
        training site described in subsection (e)(1).
    (b) Grants.--
            (1) In general.--The Secretary shall make grants to 
        eligible organizations to develop and operate technology-based 
        child care training infrastructures, to facilitate--
                    (A) the accreditation of facilities as accredited 
                child care facilities and accredited family child care 
                homes;
                    (B) the credentialing of individuals as 
                credentialed child care professionals; and
                    (C) the dissemination of child care, child 
                development, and early childhood education information 
                and research to child care providers.
            (2) Organizations given priority.--In awarding grants under 
        this subsection, the Secretary shall give priority to eligible 
        national organizations that have established child care 
        training infrastructures similar in concept and purpose to 
        infrastructures described in this section.
    (c) Use of Funds.--An organization that receives a grant under 
subsection (b) shall use the funds made available through the grant 
to--
            (1) develop partnerships, to the maximum extent possible, 
        with elementary schools, secondary schools, institutions of 
        higher education, Federal, State, and local government 
        agencies, and private entities, to share equipment, technical 
        assistance, and other technological resources, for the 
        development of the infrastructure described in subsection (b);
            (2) enter into arrangements with entities for the provision 
        of sites from which the infrastructure will disseminate 
        training;
            (3) ensure the establishment of at least 2 of the training 
        sites in each State, and additional training sites based on the 
        populations and geographic considerations of States;
            (4) enter into arrangements with child care credentialing 
        or accreditation entities that are recognized (as described in 
        section 2(2)) by more than 1 State agency or tribal 
        organization, for the development of child care training to be 
        disseminated through the infrastructure;
            (5) provide, directly or through a contract (which may for 
        good cause be a sole source contract), expertise to convert 
        training courses for distance transmission, provide interactive 
        environments, and conduct registration, testing, electronic 
        storage of information, and other technology-based activities 
        to adapt and enhance training course content consistent with 
        the medium of transmission involved through the infrastructure;
            (6) provide, through a logistical scheduling mechanism, 
        equitable access to the infrastructure for all child care 
        credentialing or accreditation entities described in paragraph 
        (4) that request an opportunity to disseminate child care 
        training through the infrastructure and meet the requirements 
        of this section;
            (7) develop and implement a mechanism for participants in 
        the training to evaluate the infrastructure, including 
        providing comments on the accessibility and affordability of 
        the training, and recommendations for improvements in the 
        training;
            (8) develop and implement a monitoring system to provide 
        data on the training provided through the infrastructure, 
        including data on--
                    (A) the number of facilities and individuals 
                participating in the training;
                    (B) the number of facilities receiving 
                accreditation (including a repeat accreditation) as 
                accredited child care facilities, and individuals 
                receiving credentialing (including a repeat 
                credentialing) as credentialed child care 
                professionals, after fulfilling requirements that 
                include participation in the training;
                    (C) the number of accredited child care facilities, 
                and credentialed child care professionals, 
                participating in the training; and
                    (D) the number of sites in which the training is 
                received, analyzed--
                            (i) by State; and
                            (ii) by location in an urban, suburban, or 
                        rural area; and
            (9) establish and operate the child care training revolving 
        fund described in section 202.
    (d) Eligibility.--To be eligible to receive the grant, an 
organization shall be an organization that--
            (1) is a private, nonprofit entity that is not--
                    (A) a child care credentialing or accreditation 
                entity;
                    (B) a subsidiary or affiliate of a child care 
                credentialing or accreditation entity; or
                    (C) an entity that has a subsidiary or affiliate 
                that is a child care credentialing or accreditation 
                entity;
            (2) has experience in developing partnerships with child 
        care credentialing or accreditation entities, institutions of 
        higher education, and State and local governments, for the 
        provision of child care training;
            (3) has experience in providing and coordinating the 
        provision of child care training to family child care providers 
        and center-based child care providers;
            (4) is related to child care provider support organizations 
        in 35 or more States, through membership in a common 
        organization, affiliation, or another mechanism;
            (5) has experience in working with rural and urban child 
        care provider support organizations and child care providers; 
        and
            (6) has experience in working with national child care 
        groups and organizations, including Federal government 
        agencies, providers of child care training, child care 
        credentialing or accreditation entities, and educational 
        groups.
    (e) Application.--To be eligible to receive a grant under 
subsection (b), an organization shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require, including--
            (1) information describing, and indicating a preliminary 
        count of the number of, the sites from which the infrastructure 
        will disseminate training;
            (2) an assurance that the organization will require that--
                    (A) each child care credentialing or accreditation 
                entity that disseminates training through the 
                infrastructure will provide, during at least 60 percent 
                of the dissemination period, an opportunity for 
                participants in the training--
                            (i) to interact with an identified trainer 
                        or training leader at the training site; or
                            (ii) to elect to engage in other 
                        interactive training; and
                    (B) no child care credentialing or accreditation 
                entity may collect fees for participation in the 
                training that total more than--
                            (i) the cost to the entity for developing, 
                        conducting, and providing materials for, the 
                        training; minus
                            (ii) the amount that the entity receives 
                        under this section or from any other source to 
                        develop, conduct, and provide materials for, 
                        the training; and
            (3) information demonstrating that the organization will 
        comply with the requirements of subsection (f)(2)(A).
    (f) Development and Operation of Infrastructure.--
            (1) Contracts.--An organization that receives a grant under 
        subsection (b) may use funds made available through the grant 
        to enter into contracts, which may for good cause be sole 
        source contracts, for the development of the technological and 
        logistical aspects of the infrastructure. The organization 
        shall enter into such a contract with an entity with experience 
        in establishing technology-based interactive educational or 
        training programs.
            (2) Time lines.--
                    (A) Board, personnel, and revolving fund.--Not 
                later than 6 months after the date of receipt of the 
                grant, the organization shall--
                            (i) establish a governing board;
                            (ii) establish bylaws to ensure fair 
                        representation on the board of entities 
                        disseminating training through the 
                        infrastructure;
                            (iii) appoint a Chief Executive Project 
                        Officer to oversee the daily operation of the 
                        infrastructure; and
                            (iv) establish and operate the child care 
                        training revolving fund described in section 
                        202.
                    (B) Training sites.--
                            (i) 50 percent operational.--Not later than 
                        3 years after the date of receipt of the grant, 
                        the organization shall disseminate training at 
                        50 percent of the sites described in the 
                        information submitted under subsection (e)(1).
                            (ii) 75 percent operational.--Not later 
                        than 4 years after the date of receipt of the 
                        grant, the organization shall disseminate 
                        training at 75 percent of the sites.
                            (iii) 90 percent operational.--Not later 
                        than 5 years after the date of receipt of the 
                        grant, the organization shall disseminate 
                        training at 90 percent of the sites.
                    (C) Evaluation.--The organization shall develop and 
                implement the mechanism for conducting evaluations of 
                the infrastructure described in subsection (c)(7) not 
                later than 3 years after the date of receipt of the 
                grant.
    (g) Mandatory Participation by Federal Departments.--The Secretary 
of Health and Human Services, the Secretary of Education, and the 
Secretary of Defense shall participate in the infrastructure by 
ensuring that the training disseminated through the infrastructure 
includes training provided in accordance with curricula developed by 
their departments (or by contractors for the departments) for providers 
carrying out activities under the Head Start Act (42 U.S.C. 9831 et 
seq.), the Safe and Drug-Free Schools and Communities Act of 1994 (20 
U.S.C. 7101 et seq.), and the Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858 et seq.), and other relevant curricula 
developed by the departments (or by contractors for the departments).
    (h) Corporation.--The organization may establish a nonprofit 
corporation containing the governing board, Chief Executive Project 
Officer, and personnel, to carry out this section.
    (i) Administrative Costs.--Prior to the date on which the 
organization disseminates training at 75 percent of the sites described 
in the information submitted under subsection (e)(1), the organization 
may use not more than 25 percent of the funds made available through 
the grant to pay for the administrative costs of carrying out this 
section. Effective on that date, the organization may use not more than 
15 percent of the funds to pay for the administrative costs.
    (j) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2000 through 2005.

SEC. 202. CHILD CARE TRAINING REVOLVING FUND.

    (a) Establishment.--
            (1) In general.--The Chief Executive Project Officer shall 
        use not less than 10 percent of the funds made available 
        through a grant made under section 201 during the 5 years after 
        the date of receipt of the grant to establish and operate a 
        child care training revolving fund (referred to in this section 
        as the ``Fund'')--
                    (A) from which the Chief Executive Project Officer 
                shall make loans to eligible borrowers for the purpose 
                of enabling the persons to purchase computers, 
                satellite dishes, and other equipment that will be used 
                to disseminate training through the infrastructure 
                described in section 201; and
                    (B) into which all payments, charges, and other 
                amounts collected from loans made under subparagraph 
                (A) shall be deposited notwithstanding any other 
                provision of law.
            (2) Separate account.--The Fund shall be maintained as a 
        separate account. Any portion of the Fund that is not required 
        for expenditure shall be invested in obligations of the United 
        States or in obligations guaranteed or insured by the United 
        States.
            (3) Interest earned.--The interest earned on the 
        investments shall be credited to and form a part of the Fund.
    (b) Eligible Borrowers.--To be eligible to receive a loan under 
subsection (a), a borrower shall be a child care provider who seeks to 
receive training through the infrastructure or an entity that has 
entered into an arrangement with the Chief Executive Project Officer to 
provide a training site (as defined in section 201) for the 
infrastructure.
    (c) Application.--To be eligible to receive a loan under subsection 
(a), a borrower shall submit an application to the Chief Executive 
Project Officer at such time, in such manner, and containing such 
information as the Chief Executive Project Officer, in consultation 
with the governing board and the chief executive officer of an 
organization receiving a grant under section 201, may require. At a 
minimum, the application shall include--
            (1) an assurance that the person shall use the equipment 
        funded through the loan to receive or disseminate training 
        through the infrastructure, for such period as the Secretary 
        may by regulation prescribe; and
            (2) an assurance that the person shall permit other persons 
        to use the equipment to receive or disseminate training through 
        the infrastructure, for such period as the Secretary may by 
        regulation prescribe.
    (d) Loans.--In making loans under subsection (a), the Chief 
Executive Project Officer shall--
            (1) to the maximum extent practicable, equitably distribute 
        the loans among borrowers in the various States, and among 
        borrowers in urban, suburban, and rural areas; and
            (2) take into consideration the availability to the 
        borrowers of resources from sources other than the Fund, 
        including the availability of resources through the 
        partnerships described in section 201(c)(1).
    (e) Terms and Conditions.--
            (1) Conditions.--The Chief Executive Project Officer may 
        make a loan to a borrower under subsection (a) only if the 
        Chief Executive Project Officer determines that--
                    (A) the borrower is unable to obtain resources from 
                other sources on reasonable terms and conditions; and
                    (B) there is a reasonable prospect that the 
                borrower will repay the loan.
            (2) Terms.--A loan made under subsection (a) shall be--
                    (A) for a term that does not exceed 4 years; and
                    (B) at no interest.
            (3) Collateral.--The Chief Executive Project Officer may 
        require any borrower of a loan made under subsection (a) to 
        provide such collateral as the Chief Executive Project Officer 
        determines to be necessary to secure the loan.
            (4) Procedures and definitions.--Prior to making loans 
        under subsection (a), the Chief Executive Project Officer shall 
        establish written procedures and definitions pertaining to 
        defaults and collections of payments under the loans, which 
        shall be subject to the review and approval of the Secretary. 
        The governing board and chief executive officer of the 
        organization involved shall provide to each applicant for a 
        loan under subsection (a), at the time application for the loan 
        is made, a written copy of the procedures and definitions.
    (f) Defaults.--
            (1) Notice.--The Chief Executive Project Officer shall 
        provide the governing board and the chief executive officer of 
        the organization at regular intervals written notice of each 
        loan made under subsection (a) that is in default and the 
        status of the loan.
            (2) Action.--
                    (A) Notification.--After making reasonable efforts 
                to collect all amounts payable under a loan made under 
                subsection (a) that is in default, the Chief Executive 
                Project Officer shall notify the governing board and 
                the chief executive officer of the organization that 
                the loan is uncollectable or collectible only at an 
                unreasonable cost. The notification shall include 
                recommendations for future action to be taken by the 
                Chief Executive Project Director.
                    (B) Instructions.--On receiving the notification, 
                the governing board and the chief executive officer of 
                the organization shall advise the Chief Executive 
                Project Officer--
                            (i) to continue with its collection 
                        activities;
                            (ii) to cancel, adjust, compromise, or 
                        reduce the amount of the loan; or
                            (iii) to modify any term or condition of 
                        the loan, including any term or condition 
                        relating to the time of payment of any 
                        installment of principal, or portion of 
                        principal, that is payable under the loan.
    (g) Administration and Assistance.--
            (1) In general.--Consistent with section 201(i), the Chief 
        Executive Project Officer shall, out of funds available in the 
        Fund--
                    (A) pay expenses incurred by the Chief Executive 
                Project Officer in administering the Fund; and
                    (B) provide competent management and technical 
                assistance to borrowers of loans made under subsection 
                (a) to assist the borrowers to achieve the purposes of 
                the loans.
            (2) Assistance by the secretary.--The Secretary shall 
        provide to the chief executive officer of the organization and 
        the Chief Executive Project Officer such management and 
        technical assistance as the chief executive officer of the 
        organization and the Chief Executive Project Officer may 
        request in order to carry out the provisions of this section.
    (h) Regulations.--The Secretary may prescribe such regulations as 
may be necessary to carry out the objectives of this section, including 
regulations involving reporting and auditing.

TITLE III--EXPANDING YOUTH DEVELOPMENT OPPORTUNITIES DURING NON-SCHOOL 
                                 HOURS

SEC. 301. PURPOSE.

    The purpose of this title is to establish programs that provide 
care for school-age youth during non-school hours, in order to create 
activities for youth that better enable youth to develop the skills and 
competencies that are necessary to successfully transition from 
childhood to adulthood.

SEC. 302. DEFINITIONS.

    In this title:
            (1) Assistant Secretary.--The term ``Assistant Secretary'' 
        means the Assistant Secretary for Children and Families of the 
        Department of Health and Human Services.
            (2) Non-school hours program.--The term ``non-school hours 
        program'' means a program, such as a youth development program, 
that provides care for youth during non-school hours.
            (3) Protective factors.--The term ``protective factors'' 
        means research-based factors or activities that enable youth to 
        resist high-risk behaviors that may produce negative health or 
        social outcomes.
            (4) Risk factors.--The term ``risk factors'' means 
        research-based precursors that predict an increased probability 
        of developing high-risk behavior.
            (5) Youth.--The term ``youth'' means an individual who is 
        attending an elementary or secondary school, as defined in 
        section 14101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 8801).
            (6) Youth development program.--The term ``youth 
        development program'' means a program that--
                    (A) in order to enable youth to deal successfully 
                with the challenges of adolescence and prepare the 
                youth for the independence and responsibilities of 
                being parents, workers, and citizens, helps the youth 
                to develop--
                            (i) social competencies, such as work and 
                        family life skills, problem-solving skills, and 
                        communication skills;
                            (ii) physical competencies, such as 
                        physical conditioning, endurance, and an 
                        appreciation for and strategies to achieve 
                        lifelong physical health and fitness;
                            (iii) emotional competencies, such as a 
                        sense of personal identity, self-confidence, 
                        autonomy, and the ability to resist negative 
                        peer pressure;
                            (iv) moral competencies, such as character 
                        development, personal values, ethics, and a 
                        sense of responsibility and citizenship 
                        (including participation in civic life and 
                        community service); and
                            (v) cognitive competencies, such as 
                        knowledge, reasoning ability, creativity, and a 
                        lifelong commitment to learning and 
                        achievement;
                    (B) conducts activities that (excluding academic 
                activities conducted outside the classroom and 
                tutoring) have a primarily nonacademic focus;
                    (C) employs primarily active and experimental 
                learning methods;
                    (D) builds relationships between adults who are 
                positive adult role models and youth in a non-school 
                hours program setting; and
                    (E) promotes the competencies described in 
                subparagraph (A) through group or one-to-one 
                activities, which may include activities authorized 
                under section 308(b).

SEC. 303. ESTABLISHMENT OF PROGRAM.

    (a) Grants.--The Assistant Secretary shall award grants to eligible 
States, from allotments made under section 304, to enable the eligible 
States to award grants to entities to pay for the Federal share of the 
cost of establishing quality non-school hours programs.
    (b) Federal Share.--
            (1) In general.--The Federal share of the cost described in 
        subsection (a) shall be 80 percent.
            (2) Non-federal share.--The non-Federal share of the cost 
        described in subsection (a) may be contributed in cash or in 
        kind, fairly evaluated, including facilities, equipment, or 
        services (which may be provided from State or local public 
        sources or through donations from private entities). For 
        purposes of this paragraph the term ``facilities'' includes the 
        use of facilities, but the term ``equipment'' means donated 
        equipment and not the use of equipment.

SEC. 304. STATE ALLOTMENTS.

    (a) Reservation.--The Assistant Secretary shall reserve not more 
than \1/2\ of 1 percent of the amount appropriated under section 412 
for each fiscal year for payments to Guam, American Samoa, the United 
States Virgin Islands, and the Commonwealth of the Northern Mariana 
Islands, to be allotted in accordance with their respective needs for 
assistance under this title.
    (b) Allotments.--From the amount appropriated under section 412 for 
each fiscal year and remaining after amounts are reserved under 
subsection (a), the Assistant Secretary shall allot to each State that 
has an application approved under section 305, an amount determined 
under subsection (c).
    (c) Allotment Formula.--
            (1) In general.--Subject to paragraph (2), the Assistant 
        Secretary shall allot to each State an amount equal to the sum 
        of--
                    (A) an amount that bears the same ratio to 50 
                percent of the remainder described in subsection (b) as 
                the number of children and youth who are age 5 through 
                17 in the State bears to the number of such children 
and youth in all States; and
                    (B) an amount that bears the same ratio to 50 
                percent of the remainder as the number of children and 
                youth in the State who are receiving free or reduced 
                price lunches under the school lunch program 
                established under the National School Lunch Act (42 
                U.S.C. 1751 et seq.) bears to the number of such 
                children and youth in all States.
            (2) Minimum allotment.--No State shall receive an allotment 
        under paragraph (1) for a fiscal year in an amount that is less 
        than \1/2\ of 1 percent of the total amount appropriated for 
        the fiscal year under section 412.
    (d) Data and Information.--The Assistant Secretary shall obtain 
from each appropriate Federal agency, the most recent data and 
information necessary to determine the allotments provided for in this 
section.
    (e) Reallotments.--
            (1) In general.--Any portion of the allotment to a State 
        that is not used for activities under section 308 or subsection 
        (g), in the fiscal year for which the allotment is made 
        available, shall be reallotted by the Assistant Secretary to 
        other States in proportion to the original allotments to the 
        other States.
            (2) Limitations.--
                    (A) Reduction of reallotment amount.--The amount of 
                any reallotment to which a State is entitled under 
                paragraph (1) shall be reduced to the extent that the 
                allotment exceeds the amount that the Assistant 
                Secretary estimates will be used by the State or 
                entities in the State to carry out activities under 
                section 308 or subsection (g).
                    (B) Reallotment of the reduction.--The amount of 
                any reduction under subparagraph (A) shall be 
                reallotted among all other States for which no 
                reduction in an allotment or reallotment is required by 
                this subsection.
            (3) Amounts reallotted.--For purposes of this title, any 
        amount reallotted to a State under this subsection from an 
        allotment made for a fiscal year shall be considered to be part 
        of the allotment made under subsection (b) to the State for the 
        following fiscal year.
    (f) Supplement Not Supplant.--Amounts received under this section 
shall be used to supplement and not supplant other Federal, State, and 
local public funds expended to provide non-school hours programs.
    (g) Administrative Costs.--A State that receives a grant under this 
title may use--
            (1) not more than 5 percent of the funds made available 
        through the grant to carry out training and technical 
        assistance activities under this title; and
            (2) not more than an additional 10 percent of the funds to 
        pay for other costs associated with administering activities 
        under this title.
    (h) Definition.--In this section, the term ``State'' means the 50 
States, the District of Columbia, and the Commonwealth of Puerto Rico.

SEC. 305. STATE APPLICATION.

    (a) In General.--To be eligible for a grant under this title, a 
State shall submit an application to the Assistant Secretary at such 
time, in such manner, and accompanied by such information as the 
Assistant Secretary may reasonably require.
    (b) Contents.--Each application submitted pursuant to subsection 
(a) shall contain--
            (1) such information as the Assistant Secretary determines 
        is necessary to ensure that the grant will be distributed and 
        used in accordance with this title; and
            (2) information designating administrative regions (in 
        which the administration of Federal or State programs is 
        carried out), or political subdivisions, of the State as 
        regions to which funds will be allocated under section 306.

SEC. 306. LOCAL ALLOCATIONS AND GRANTS.

    (a) Allocations.--From the funds made available to a State under 
section 304(b) for each fiscal year and not used under section 304(g), 
the State shall allocate to each region designated under section 
305(b)(2) an amount equal to the sum of--
            (1) an amount that bears the same ratio to 50 percent of 
        the remainder as the number of children and youth who are age 5 
        through 17 in the region bears to the number of such children 
        and youth in all regions of the State; and
            (2) an amount that bears the same ratio to 50 percent of 
        the remainder as the number of children and youth in the region 
        who are receiving free or reduced price lunches under the 
        school lunch program established under the National School 
        Lunch Act (42 U.S.C. 1751 et seq.) bears to the number of such 
        children and youth in all regions of the State.
    (b) Allocation Data and Information.--The State shall obtain from 
each appropriate Federal or State agency, the most recent data and 
information necessary to determine the allocations provided for in this 
section.
    (c) Reallocations.--
            (1) In general.--Any portion of the allocation to a region 
        that is not used for activities under section 308, in the 
        fiscal year for which the allocation is made available, shall 
        be reallocated by the State to other regions in proportion to 
        the original allocations.
            (2) Limitations.--
                    (A) Reduction of reallocation amount.--The amount 
                of any reallocation to which a region is entitled under 
                paragraph (1) shall be reduced to the extent that the 
                allocation exceeds the amount that the State estimates 
                will be used by entities in the region to carry out 
                activities under section 308.
                    (B) Reallocation of the reduction.--The amount of 
                any reduction under subparagraph (A) shall be 
                reallocated among other regions for which no reduction 
                in an allocation or reallocation is required by this 
                subsection.
            (3) Amounts reallocated.--For purposes of this title, any 
        amount reallocated to a region under this subsection from an 
        allocation made for a fiscal year shall be considered to be 
        part of the allocation made under subsection (a) to the region 
        for the following fiscal year.
    (d) Grants.--The State shall use the funds allocated to each region 
under subsection (a) to award grants, on a competitive basis, to 
entities in that region.
    (e) Preference.--In awarding a grant under subsection (d), the 
State shall give preference to an entity that provides an assurance 
that the entity will use the funds made available through the grant to 
carry out a non-school hours program that will--
            (1) have activities that are designed to remove barriers to 
        the availability of non-school hours child care; and
            (2) coordinate resources from public and private entities 
        to achieve a cohesive network consisting of a variety of 
        activities for youth.
    (f) Supplement Not Supplant.--Amounts received under this section 
shall be used to supplement and not supplant other Federal, State, and 
local public funds expended to provide non-school hours programs.

SEC. 307. LOCAL APPLICATION.

    (a) In General.--An entity within a region that desires to receive 
a grant under section 306 shall submit an application to the State at 
such time, in such manner, and accompanied by such information as the 
State may require.
    (b) Contents.--Each application submitted pursuant to subsection 
(a) shall contain--
            (1) a statement that demonstrates that the entity maintains 
        co-operative agreements with a broad range of community 
        entities that provide direct or indirect services to youth; and
            (2) such information as the State determines is necessary 
        to ensure that the allocation will be distributed and used in 
        accordance with this title.

SEC. 308. USE OF GRANT FUNDS.

    (a) Program Requirements.--Funds made available through a grant 
received under this title for a non-school hours program shall be used 
by an entity to pay for activities that--
            (1) meet the child care needs of working parents during 
        non-school hours, including the hours before and after school, 
        weekends, school holidays, vacation periods, and other non-
        school hours;
            (2) address at least 2 of the competencies described under 
        paragraph (6)(A) of section 302;
            (3) are designed to reduce risk factors;
            (4) are designed to increase protective factors; and
            (5) are designed to assist youth in acquiring skills and 
        competencies necessary to make a successful transition from 
        childhood to adulthood.
    (b) Authorized Activities.--Funds made available through a grant 
received under this title may be used by an entity for activities for 
youth, including activities that focus on or promote--
            (1) leadership development;
            (2) mentoring;
            (3) crime and delinquency prevention;
            (4) community service or volunteerism;
            (5) literacy;
            (6) involvement in youth groups;
            (7) sports and recreation;
            (8) peer counseling and teaching;
            (9) the arts;
            (10) character development;
            (11) prevention of violence, including domestic violence;
            (12) mediation skills training;
            (13) drug abuse prevention;
            (14) alcohol education;
            (15) parenting skills;
            (16) camping and environmental education;
            (17) ethnic or cultural enrichment; and
            (18) tutoring and academic enrichment.
    (c) Limitation.--
            (1) Low-income youth.--Each entity that receives a grant 
        under this title shall use not less than 50 percent of the 
        funds made available through the grant to subsidize the cost of 
        activities described in subsection (b) for youth who are 
        children of families that meet the income eligibility 
        guidelines for free or reduced price lunches under section 9(b) 
        of the National School Lunch Act (42 U.S.C. 1758(b)).
            (2) Information.--An entity that receives a grant under 
        this title shall be considered to be a person directly 
        connected with the administration of a Federal education 
        program for purposes of section 9(b)(2)(C)(iii)(II)(aa) of the 
        National School Lunch Act (42 U.S.C. 
        1758(b)(2)(C)(iii)(II)(aa)). A school serving youth who are 
        receiving services under this title from the entity shall 
        provide information to the entity on the income eligibility 
        status of the youth who are children described in section 
        9(b)(2)(C)(iv) of such Act (42 U.S.C. 1758(b)(2)(C)(iv)), in 
        accordance with that section, to enable the entity to meet the 
        requirements of paragraph (1).

SEC. 309. FEDERAL ADMINISTRATION; DUTIES OF THE ASSISTANT SECRETARY.

    (a) Monitoring and Evaluation.--The Assistant Secretary shall 
develop and establish a system for monitoring and evaluating the 
effectiveness of activities funded under this title.
    (b) Coordination.--The Assistant Secretary shall consult with the 
heads of appropriate Federal agencies, including the Administrator of 
the Office of Juvenile Justice and Delinquency Prevention, and other 
Federal officers carrying out Federal non-school hours programs, to 
ensure effective coordination of activities funded under this title 
with other Federal programs serving youth and families.
    (c) Training and Technical Assistance.--The Assistant Secretary 
shall develop and establish a system for providing training and 
technical assistance to States and local entities to increase their 
capacity to provide quality non-school hours programs.
    (d) Noncompliance.--If the Assistant Secretary determines, based on 
a review of the annual reports, audits, or other documentation required 
under this title, that a State or an entity that receives a grant under 
this title is not complying with the requirements of this title, the 
Assistant Secretary shall--
            (1) inform the State or entity of the deficiencies that 
        need correction;
            (2) provide appropriate training and technical assistance 
        designed to correct the deficiencies and ensure compliance with 
        the requirements; and
            (3) initiate actions to terminate funding to the State or 
        an entity under this title if, after a reasonable period of 
        time, the State or entity has not made substantial efforts to 
        correct the deficiencies and comply with the requirements.

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

    (a) Designation of State Entity.--In order for a State to receive a 
grant under this title, the Governor of the State shall establish or 
designate an entity to administer the activities carried out in the 
State under this title.
    (b) Youth Development Input.--The State shall establish a mechanism 
to regularly receive advice and input from a representative mix of 
individuals and organizations that provide services under this title to 
youth, or receive services under this title, to improve the 
effectiveness and increase coordination of non-school hours programs 
under this title in the State.
    (c) Review and Compliance.--
            (1) Monitoring operations.--The State shall have primary 
        responsibility for ensuring that the grant is administered in 
        compliance with this title.
            (2) Technical assistance.--The State shall provide 
        technical assistance related to the development and 
        implementation of non-school hours programs receiving grants 
        under this title.
            (3) Noncompliance.--If the State determines, based on a 
        review of the annual reports, audits, or other documentation 
        required under this title, that an entity carrying out an 
        activity funded by this title is not complying with the 
        requirements of this title, the State shall--
                    (A) inform the entity of the deficiencies that need 
                correction;
                    (B) provide appropriate training and technical 
                assistance designed to correct the deficiencies and 
                ensure compliance with the requirements; and
                    (C) initiate actions to terminate funding to the 
                entity under this title if, after a reasonable period 
                of time, the entity has not made substantial efforts to 
                correct the deficiencies and comply with the 
                requirements.
    (d) Annual Report and Audit.--
            (1) In general.--Each State shall, not later than 120 days 
        after the end of each fiscal year of the State, prepare and 
        submit to the Assistant Secretary an annual report, in such 
        manner and containing such information as the Assistant 
        Secretary may reasonably require to determine compliance with 
        this title.
            (2) Contents.--The report described in paragraph (1) shall 
        include--
                    (A) information on the activities funded in the 
                State under this title during the fiscal year; and
                    (B) the extent to which the activities funded in 
                the State have helped youth develop the competencies 
                described in paragraph (6) of section 302.
            (3) Audit.--Together with each report submitted under this 
        section, the State shall submit the findings of an independent 
        audit conducted in accordance with chapter 75 of title 31, 
        United States Code, concerning such activities.

SEC. 311. COORDINATION WITH OTHER PROGRAMS.

    Activities that receive funding under this title shall be 
coordinated with programs and activities that receive funding under the 
Safe and Drug-Free Schools and Communities Act of 1994 (20 U.S.C. 7101 
et seq.) or the 21st Century Community Learning Centers Act (20 U.S.C. 
8241 et seq.).

SEC. 312. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to carry 
out this title--
            (1) $500,000,000 for fiscal year 2000;
            (2) $600,000,000 for fiscal year 2001;
            (3) $700,000,000 for fiscal year 2002;
            (4) $800,000,000 for fiscal year 2003; and
            (5) $1,000,000,000 for fiscal year 2004.
    (b) Availability of Funds.--Subject to sections 304(e) and 306(c), 
no State or entity that receives funds during a fiscal year may expend 
the funds after the end of the fiscal year.

     TITLE IV--EXPANDING CHILD CARE SUBSIDY FOR LOW-INCOME FAMILIES

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    Section 658B of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858) is amended by striking ``$1,000,000,000'' and 
inserting ``$2,000,000,000''.

SEC. 402. APPLICATION AND PLAN.

    Section 658E(c) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858c(c)) is amended--
            (1) in paragraph (2), by striking subparagraph (H) and 
        inserting the following:
                    ``(H) Provide an assurance that if the State uses 
                an automated system described in section 658K(a)(3), 
                the State will ensure that the system--
                            ``(i) if used to provide payment for child 
                        care services, operates in a manner that 
                        ensures prompt and accurate payment of child 
                        care providers; and
                            ``(ii) does not limit parental choice.'';
            (2) in paragraph (3)(D)--
                    (A) by striking ``a substantial portion'' and 
                inserting ``not less than 70 percent''; and
                    (B) by striking ``described in paragraph (2)(H)'' 
                and inserting ``receiving assistance under a State 
                program under part A of title IV of the Social Security 
                Act (42 U.S.C. 601 et seq.), families attempting to 
                transition off the assistance program through work 
                activities, and families that are at risk of becoming 
                dependent on the assistance program'';
            (3) in paragraph (4)(A)--
                    (A) by inserting ``, of the type chosen by the 
                parents of the children,'' after ``comparable child 
                care services''; and
                    (B) by adding at the end the following: ``To ensure 
                maximum parental choice, the State plan shall provide 
                that the rates for the State shall be determined under 
                separate rate schedules dependent upon--
                            ``(i) the age of the child served;
                            ``(ii) the child care setting;
                            ``(iii) the special needs of the child; and
                            ``(iv) the geographic location of the 
                        services within a State.''; and
            (4) in paragraph (5)--
                    (A) by striking ``The'' and inserting the 
                following:
                    ``(A) In general.--The''; and
                    (B) by inserting after subparagraph (A) (as 
                designated in subparagraph (A)) the following:
                    ``(B) Application of copayment.--The State plan 
                shall provide that, if the State provides to a family a 
                subsidy authorized under this subchapter that is less 
                than 85 percent of the applicable market rate 
                determined under paragraph (4) and also requires a 
                copayment from the family to meet the cost sharing 
                requirement of subparagraph (A), the State shall reduce 
                the amount of the copayment by the amount of the 
                difference between the market rate and the subsidy.''.

SEC. 403. AUTOMATED SYSTEMS.

    Section 658K(a) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858i(a)) is amended by adding at the end the 
following:
            ``(3) Automated systems.--A State that receives funds to 
        carry out this subchapter may use an automated system, 
        including an electronic benefit transfer system--
                    ``(A) for monitoring or tracking child care 
                attendance or otherwise conducting data collection 
                under this subchapter;
                    ``(B) as a means of ensuring prompt and accurate 
                payment for child care services under this subchapter; 
                or
                    ``(C) for other purposes that increase the 
                efficiency of the State in administering the funds.''.
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