I 

109TH CONGRESS 

1ST SESSION H. R. 1589 

To improve the lives of working families by providing family and medical 

need assistance, child care assistance, in-school and afterschool assistance, family care assistance, and encouraging the establishment of familyfriendly workplaces. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 13, 2005 

Ms. WOOLSEY (for herself, Mr. GEORGE MILLER of California, Ms. DELAURO, 

Mr. OWENS, Mr. KILDEE, Mr. WEXLER, Ms. MILLENDER-MCDONALD, 

Mr. KUCINICH, Ms. CARSON, Mr. FILNER, Mr. SANDERS, Mr. WAXMAN, 

Mr. LANTOS, Mr. BLUMENAUER, Mr. DAVIS of Illinois, Mr. RUSH, Ms. 

PELOSI, Mrs. MCCARTHY, Ms. CORRINE BROWN of Florida, Mrs. 

CHRISTENSEN, Ms. JACKSON-LEE of Texas, Mr. HINOJOSA, Mr. PAYNE, 

Mrs. JONES of Ohio, Mr. MCDERMOTT, Ms. MATSUI, Ms. WASSERMAN

SCHULTZ, Ms. SOLIS, Mrs. CAPPS, Ms. KILPATRICK of Michigan, Mr. 

BROWN of Ohio, Mr. JACKSON of Illinois, Ms. LEE, Ms. LINDA T. 

SA ́NCHEZ of California, Mrs. DAVIS of California, Mr. GRIJALVA, Ms. 

MCKINNEY, Mr. FARR, Mr. LEWIS of Georgia, Ms. WATSON, and Mr. 

DOGGETT) introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committees on House Administration, Government Reform, and Financial Services, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To improve the lives of working families by providing family 

and medical need assistance, child care assistance, inschool and afterschool assistance, family care assistance, 

and encouraging the establishment of family-friendly 

workplaces. 
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Family and Workplace Balancing Act of 2005’’ or ‘‘Bal6 ancing Act of 2005’’ . 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

TITLE I—PAID LEAVE FOR NEW PARENTS AND FAMILY AND 

MEDICAL LEAVE ENHANCEMENT ACT OF 2003 

Subtitle A—Paid Leave for New Parents 

Sec. 101. Short title. 

Sec. 102. Purpose. 

Sec. 103. Definitions. 

Sec. 104. Grants. 

Sec. 105. Notification. 

Sec. 106. Report. 

Sec. 107. Authorization of appropriations. 

Sec. 108. Technical and conforming amendments. 

Subtitle B—Family and Medical Leave Enhancement Act of 2003 

Sec. 111. Short title. 

Sec. 112. Additional leave for parental involvement. 

Sec. 113. Parental involvement leave for civil servants. 

Sec. 114. Clarification of leave entitlement. 

Sec. 115. Definition of grandchild. 

TITLE II—CHILD CARE EXPANSION AND IMPROVEMENT 

Subtitle A—Care for Young Children 

Sec. 201. Expanding child care for young children. 

Subtitle B—Improving Child Care Quality Through Teacher Incentives 

Sec. 221. Purpose. 

Sec. 222. Definitions. 

Sec. 223. Funds for child care provider development and retention grants, 

scholarships, and health benefits coverage. 

Sec. 224. Allotments to States. 

Sec. 225. Application and plan. 

Sec. 226. Child care provider development and retention grant program. 
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Sec. 227. Child care provider scholarship program. 

Sec. 228. Child care provider health benefits coverage. 

Sec. 229. Annual report. 

Sec. 230. Evaluation of health benefits programs by Secretary. 

Sec. 231. Authorization of appropriations. 

Subtitle C—Child Care Construction and Renovation Incentive Grants 

Sec. 241. Short title. 

Sec. 242. Use of community development block grants to establish child care 

facilities. 

Sec. 243. Insurance for mortgages on new and rehabilitated child care facilities. 

Sec. 244. Insurance for mortgages for acquisition or refinancing debt of existing child care facilities. 

Sec. 245. Study of availability of secondary markets for mortgages on child 

care facilities. 

Sec. 246. Technical and financial assistance grants. 

Subtitle D—Business Child Care Incentive Grant Program 

Sec. 251. Business child care incentive grant program. 

TITLE III—PRE-SCHOOL, IN-SCHOOL, AND AFTERSCHOOL 

ASSISTANCE 

Subtitle A—Universal Prekindergarten Act 

Sec. 301. Short title. 

Sec. 302. Findings and purpose. 

Sec. 303. Prekindergarten grant program authorization. 

Sec. 304. State requirements. 

Sec. 305. Local requirements. 

Sec. 306. Professional development set-aside. 

Sec. 307. Reporting. 

Sec. 308. Federal funds supplementary. 

Sec. 309. Definitions. 

Sec. 310. Authorization of appropriations. 

Subtitle B—Universal Free School Breakfast Program 

Sec. 311. Universal free school breakfast program. 

Subtitle C—Nutritional Improvement for Children Served under Child 

Nutrition Programs 

Sec. 321. Nutritional improvement for children served under child nutrition 

programs. 

Subtitle D—Child and Adult Care Food Program 

Sec. 331. Reimbursements for afterschool dinners. 

Sec. 332. Eligibility of private child care centers. 

Subtitle E—Afterschool Education Enhancement Act 

Sec. 341. Short title. 

Sec. 342. Amendments regarding 21st century community learning centers. 

TITLE IV—IMPROVING THE WORKPLACE FOR FAMILIES 
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Subtitle A—Part-Time and Temporary Workers Benefits 

Sec. 401. Treatment of employees working at less than full-time under participation, vesting, and accrual rules governing pension plans. 

Sec. 402. Treatment of employees working at less than full-time under group 

health plans. 

Sec. 403. Expansion of definition of employee to include certain individuals 

whose services are leased or contracted for. 

Sec. 404. Effective dates. 

Subtitle B—United States Business Telework Act 

Sec. 411. Short title. 

Sec. 412. Telework pilot program. 

Sec. 413. Report to Congress. 

Sec. 414. Definition. 

Sec. 415. Termination. 

Sec. 416. Authorization of appropriations. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) Currently in two-thirds of married families 

4 with children in the United States, both parents 

5 work full-time. Seventy-one percent of mothers with 

6 children under age 18 work full-time, and another 

7 29 percent work part-time. 

8 (2) The National Study of the Changing Work9 force found that 70 percent of employed parents in10 dicated that they don’t have enough time with their 

11 children. 

12 (3)(A) A survey conducted by the Boys and 

13 Girls Clubs of America found that more than half of 

14 the respondents indicated that they had little or no 

15 time to spend in physical activities with their chil16 dren. 
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1 (B) Parents in 3,500,000 households, rep2 resenting 7,000,000 children, spend an hour or less 

3 a week doing physical activities with their children. 

4 (C) The primary obstacle cited by the parents 

5 to engaging in physical activities with their children 

6 was their work schedules. 

7 (4) Nearly two-thirds of employees who need to 

8 take family or medical leave do not take such leave 

9 because they cannot afford to forgo the pay. 

10 (5) Nearly every industrialized nation other 

11 than the United States, and most developing na12 tions, provides parents with paid leave for infant 

13 care. 

14 (6) In the United States, more than half of all 

15 mothers of children under the age of one now work. 

16 Yet parents of infants and toddlers face acute prob17 lems finding child care, and child care that is avail18 able is often of mediocre quality. 

19 (7) The cost of child care averages $4,000 to 

20 $6,000 per year in the United States, and families 

21 with younger children or with more than one child 

22 face even greater costs. For example, the average 

23 annual cost of child care for a 4-year-old in an 

24 urban area center is more than the average annual 

25 cost of public college tuition in all but one State. 
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1 (8) The average annual child care teacher sal2 ary is $15,430, a wage so low that many programs 

3 find it extremely challenging to recruit fully qualified 

4 teachers and to retain them. High turnover rates 

5 make it more difficult to provide quality and con6 tinuity of care. 

7 (9) Only 12 percent of eligible children receive 

8 child care assistance through the Child Care Devel9 opment Block Grant, and only about 3 out of 5 eligi10 ble preschoolers are able to participate in the Head 

11 Start program. 

12 (10) Among needy students, school nutrition 

13 programs often provide the primary opportunity for 

14 consumption of nutritionally valuable foods. 

15 (11) Breakfast is a critical meal for children 

16 and provides the nutrition necessary to optimize 

17 their learning capacities. 

18 (12) According to the Bureau of the Census, 

19 nearly 7,000,000 children in the United States are 

20 left alone after school each week without adult su21 pervision or structured activities of any kind. 

22 (13) Violent juvenile crime peaks between the 

23 hours of 3:00 p.m. and 7:00 p.m. and teens are 

24 more likely to be victims of serious violent crime in 
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1 the hour after school lets out than any other time 

2 of the day. 

3 (14) The Nation’s communities can benefit 

4 from teleworking, which give workers more time to 

5 spend at home with their families. 

6 (15) Companies with telework programs have 

7 found that telework can boost employee productivity 

8 5 percent to 20 percent, thereby saving businesses 

9 valuable resources and time. 

10 (16) More United States families are working 

11 more hours than ever. In 2000, the average Amer12 ican worker worked 36 hours more, almost a full 

13 week, than in 1990. A recent AFL–CIO poll found 

14 that nearly three-quarters of working adults indi15 cated that they have little or no control over their 

16 work schedules. 

17 (17) The AFL–CIO’s ‘‘Ask a Working Woman’’ 

18 survey for 2002 reported that 63 percent of working 

19 women work more than 40 hours a week, 30 percent 

20 of working women work 20 to 39 hours a week, and 

21 7 percent of working women work less than 20 

22 hours a week. 
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1 TITLE I—PAID LEAVE FOR NEW 

2 PARENTS AND FAMILY AND 

3 MEDICAL LEAVE ENHANCE4 MENT ACT OF 2005 

5 Subtitle A—Paid Leave for New 

6 Parents 

7 SEC. 101. SHORT TITLE. 

8 This subtitle may be cited as the ‘‘Family Income to 

9 Respond to Significant Transitions Act’’. 

10 SEC. 102. PURPOSE. 

11 The purpose of this subtitle is to establish a program 

12 that supports the efforts of States and political subdivi13 sions of States to provide partial or full wage replacement, 

14 often referred to as FIRST insurance, to new parents so 

15 that the new parents are able to spend time with a new 

16 infant or newly adopted child, and to other employees. 

17 SEC. 103. DEFINITIONS. 

18 In this subtitle: 

19 (1) EMPLOYER; SON OR DAUGHTER; STATE.— 

20 The terms ‘‘employer’’, ‘‘son or daughter’’, and 

21 ‘‘State’’ have the meanings given the terms in sec22 tion 101 of the Family and Medical Leave Act of 

23 1993 (29 U.S.C. 2611). 
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1 (2) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Labor, acting after consultation 

3 with the Secretary of Health and Human Services. 

4 SEC. 104. GRANTS. 

5 (a) GRANTS.— 

6 (1) IN GENERAL.—The Secretary of Labor shall 

7 make grants to eligible entities to pay for the Fed8 eral share of the cost of carrying out projects that 

9 assist families by providing, through various mecha10 nisms, wage replacement for eligible individuals who 

11 are responding to— 

12 (A) caregiving needs resulting from the 

13 birth or adoption of a son or daughter; or 

14 (B) other family caregiving needs. 

15 (2) PERIODS.—The Secretary shall make the 

16 grants for periods of five years. 

17 (b) ELIGIBLE ENTITIES.—To be eligible to receive a 

18 grant under this section, an entity shall be a State or polit19 ical subdivision of a State. 

20 (c) USE OF FUNDS.— 

21 (1) IN GENERAL.—An entity that receives a 

22 grant under this section may use the funds made 

23 available through the grant to provide partial or full 

24 wage replacement as described in subsection (a) to 

25 an eligible individual— 
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1 (A) directly; 

2 (B) through an insurance program, such 

3 as a State temporary disability insurance pro4 gram or a State unemployment compensation 

5 benefit program; 

6 (C) through a private disability or other 

7 insurance plan, or another mechanism provided 

8 by a private employer; or 

9 (D) through another mechanism. 

10 (2) PERIOD.—In carrying out a project under 

11 this section, the entity shall provide partial or full 

12 wage replacement to an eligible individual for not 

13 less than six weeks during a period of leave, or an 

14 absence from employment, described in subsection 

15 (d)(2), during any 12-month period. Wage replace16 ment available to an eligible individual under this 

17 subsection shall be in addition to any compensation 

18 from annual or sick leave that the individual may 

19 elect to use during a period of leave, or an absence 

20 from employment, described in subsection (d)(2), 

21 during any 12-month period. 

22 (3) ADMINISTRATIVE COSTS.—No entity may 

23 use more than ten percent of the total funds made 

24 available through the grant during the five-year pe-
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1 riod of the grant to pay for the administrative costs 

2 relating to a project described in subsection (a). 

3 (d) ELIGIBLE INDIVIDUALS.—To be eligible to re4 ceive wage replacement under subsection (a), an individual 

5 shall— 

6 (1) meet such eligibility criteria as the eligible 

7 entity providing the wage replacement may specify 

8 in an application described in subsection (e); and 

9 (2) be— 

10 (A) an individual who is taking leave, 

11 under the Family and Medical Leave Act of 

12 1993 (29 U.S.C. 2601 et seq.), under other 

13 Federal, State, or local law, or under a private 

14 plan, for a reason described in subparagraph 

15 (A) or (B) of section 102(a)(1) of the Family 

16 and Medical Leave Act of 1993 (29 U.S.C. 

17 2612(a)(1)); 

18 (B) at the option of the eligible entity, an 

19 individual who— 

20 (i) is taking leave, under that Act, 

21 under other Federal, State, or local law, or 

22 under a private plan, for a reason de23 scribed in subparagraph (C), (D), (E), or 

24 (F) of section 102(a)(1) of the Family and 
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1 Medical Leave Act of 1993 (29 U.S.C. 

2 2612(a)(1)); or 

3 (ii) leaves employment, and has an ab4 sence from employment, because the indi5 vidual has elected to care for a son or 

6 daughter under the age of one year; or 

7 (C) at the option of the eligible entity, an 

8 individual who has an absence from employ9 ment and has other characteristics specified by 

10 the eligible entity in an application described in 

11 subsection (e). 

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

13 under this section, an entity shall submit an application 

14 to the Secretary, at such time, in such manner, and con15 taining such information as the Secretary may require, in16 cluding, at a minimum— 

17 (1) a description of the wage replacement pro18 gram; 

19 (2)(A) information on the number and type of 

20 families to be covered by the project, and the extent 

21 of such coverage in the area served under the grant; 

22 and 

23 (B) information on any criteria or characteris24 tics that the entity will use to determine whether an 

25 individual is eligible for wage replacement under 
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1 subsection (a), as described in paragraphs (1) and 

2 (2)(C) of subsection (d); 

3 (3) if the project will expand on State and pri4 vate systems of wage replacement for eligible indi5 viduals, information on the manner in which the 

6 project will expand on the systems; and 

7 (4) information demonstrating the manner in 

8 which the wage replacement assistance provided 

9 through the project will assist families in which an 

10 individual takes leave or is absent from employment 

11 as described in subsection (d)(2). 

12 (f) SELECTION CRITERIA.—In selecting entities to re13 ceive grants for projects under this section, the Secretary 

14 shall— 

15 (1) take into consideration— 

16 (A) the scope of the proposed projects; 

17 (B) the cost-effectiveness, feasibility, and 

18 financial soundness of the proposed projects; 

19 (C) the extent to which the proposed 

20 projects would expand access to wage replace21 ment in response to family caregiving needs, 

22 particularly for low-wage employees, in the area 

23 served by the grant; and 
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1 (D) the benefits that would be offered to 

2 families and children through the proposed 

3 projects; and 

4 (2) to the extent feasible, select entities pro5 posing projects that utilize diverse mechanisms, in6 cluding expansion of State unemployment compensa7 tion benefit programs, and establishment or expan8 sion of State temporary disability insurance pro9 grams, to provide the wage replacement. 

10 (g) FEDERAL SHARE.— 

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

12 cost described in subsection (a) shall be— 

13 (A) 50 percent for the first year of the 

14 grant period; 

15 (B) 40 percent for the second year of that 

16 period; 

17 (C) 30 percent for the third year of that 

18 period; and 

19 (D) 20 percent for each subsequent year. 

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

21 share of the cost may be in cash or in kind, fairly 

22 evaluated, including plant, equipment, and services 

23 and may be provided from State, local, or private 

24 sources, or from Federal sources other than this 

25 subtitle. 
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1 (h) SUPPLEMENT NOT SUPPLANT.—Funds appro2 priated pursuant to the authority of this subtitle shall be 

3 used to supplement and not supplant other Federal, State, 

4 and local public funds and private funds expended to pro5 vide wage replacement. 

6 (i) EFFECT ON EXISTING RIGHTS.—Nothing in this 

7 subtitle shall be construed to supersede, preempt, or other8 wise infringe on the provisions of any collective bargaining 

9 agreement or any employment benefit program or plan 

10 that provides greater rights to employees than the rights 

11 established under this subtitle. 

12 SEC. 105. NOTIFICATION. 

13 An eligible entity that provides partial or full wage 

14 replacement to an eligible individual under this subtitle 

15 shall notify (in a form and manner prescribed by the Sec16 retary)— 

17 (1) the employer of the individual of the 

18 amount of the wage replacement provided; and 

19 (2) the individual and the employer of the indi20 vidual that the employer shall count an appropriate 

21 period of leave, calculated under section 102(g) of 

22 the Family and Medical Leave Act of 1993 (29 

23 U.S.C. 2612(g)), as added by section 108, against 

24 the total amount of leave (if any) to which the em-
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1 ployee is entitled under section 102(a)(1) of that Act 

2 (29 U.S.C. 2612(a)(1)). 

3 SEC. 106. REPORT. 

4 Not later than three years after the beginning of the 

5 grant period for the first grant made under section 104, 

6 and annually thereafter, the Secretary shall submit to 

7 Congress a report that contains a description and evalua8 tion of the program under this subtitle for the preceding 

9 year. 

10 SEC. 107. AUTHORIZATION OF APPROPRIATIONS. 

11 There are authorized to be appropriated to carry out 

12 this subtitle $400,000,000 for fiscal year 2006 and such 

13 sums as may be necessary for each subsequent fiscal year. 

14 SEC. 108. TECHNICAL AND CONFORMING AMENDMENTS. 

15 (a) IN GENERAL.—Section 102 of the Family and 

16 Medical Leave Act of 1993 (29 U.S.C. 2612) is amended 

17 by adding at the end the following: 

18 ‘‘(g) RELATIONSHIP TO FIRST INSURANCE.— 

19 ‘‘(1) FULL WAGE REPLACEMENT.—If an eligible 

20 entity provides full wage replacement to an employee 

21 for a period under title I of the Family and Work22 place Balancing Act of 2005, the employee’s em23 ployer shall count an amount of leave, equal to that 

24 period, against the total amount of leave (if any) to 
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1 which the employee is entitled under subsection 

2 (a)(1). 

3 ‘‘(2) PARTIAL WAGE REPLACEMENT.—If an eli4 gible entity provides partial wage replacement to an 

5 employee for a period under title I of the Family 

6 and Workplace Balancing Act of 2005, the employ7 ee’s employer shall— 

8 ‘‘(A) total the amount of partial wage re9 placement provided for that period; 

10 ‘‘(B) convert the total into a corresponding 

11 amount of full wage replacement provided for a 

12 proportionately reduced period; and 

13 ‘‘(C) count an amount of leave, equal to 

14 the period described in subparagraph (B), 

15 against the total amount of leave (if any) to 

16 which the employee is entitled under subsection 

17 (a)(1).’’. 

18 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

19 Section 102(d)(2) of the Family and Medical Leave Act 

20 of 1993 (29 U.S.C. 2612(d)(2)) is amended by striking 

21 ‘‘for leave’’ and inserting ‘‘for any unpaid leave’’. 
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1 Subtitle B—Family and Medical 

2 Leave Enhancement Act of 2005 

3 SEC. 111. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘Family and Med5 ical Leave Enhancement Act of 2005’’. 

6 SEC. 112. ADDITIONAL ENTITLEMENT TO LEAVE FOR PA7 RENTAL INVOLVEMENT. 

8 (a) LEAVE REQUIREMENT.—Section 102(a) of the 

9 Family and Medical Leave Act of 1993 (29 U.S.C. 

10 2612(a)) is amended by adding at the end the following 

11 new paragraph: 

12 ‘‘(3) ENTITLEMENT TO ADDITIONAL LEAVE FOR

13 PARENTAL INVOLVEMENT.— 

14 ‘‘(A) IN GENERAL.—Subject to section 

15 103(f), in addition to leave available under 

16 paragraph (1), an eligible employee shall be en17 titled to a total of four hours of leave during 

18 any 30-day period, and a total of 24 hours of 

19 leave during any 12-month period to participate 

20 in or attend an activity that— 

21 ‘‘(i) is sponsored by a school or com22 munity organization; and 

23 ‘‘(ii) relates to a program of the 

24 school or organization that is attended by 
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1 a son or daughter or a grandchild of the 

2 employee. 

3 ‘‘(B) DEFINITIONS.—As used in this para4 graph: 

5 ‘‘(i) SCHOOL.—The term ‘school’ 

6 means an elementary school or secondary 

7 school (as such terms are defined in the 

8 Elementary and Secondary Education Act 

9 of 1965 (20 U.S.C. 6301 et seq.)), a Head 

10 Start program assisted under the Head 

11 Start Act (42 U.S.C. 9831 et seq.), and a 

12 child care facility licensed under State law. 

13 ‘‘(ii) COMMUNITY ORGANIZATION.— 

14 The term ‘community organization’ means 

15 a private nonprofit organization that is 

16 representative of a community or a signifi17 cant segment of a community and provides 

18 activities for individuals described in sub19 paragraph (A) or (B) of section 101(12), 

20 such as a scouting or sports organiza21 tion.’’. 

22 (b) SCHEDULE.—Section 102(b)(1) of such Act (29 

23 U.S.C. 2612(b)(1)) is amended by inserting after the sec24 ond sentence the following new sentence: ‘‘Leave under 
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1 subsection (a)(3)(A) may be taken intermittently or on a 

2 reduced leave schedule.’’. 

3 (c) SUBSTITUTION OF PAID LEAVE.—Section 

4 102(d)(2)(A) of such Act (29 U.S.C. 2612(d)(2)(A)) is 

5 amended by inserting after ‘‘subsection (a)(1)’’ the fol6 lowing: ‘‘or under subsection (a)(3)(A)’’. 

7 (d) NOTICE.—Section 102(e)(1) of such Act (29 

8 U.S.C. 2612(e)(1)) is amended by adding at the end the 

9 following new sentence: ‘‘In any case in which an employee 

10 requests leave under subsection (a)(3)(A), the employee 

11 shall provide the employer with not less than seven days’ 

12 notice, before the date the leave is to begin, of the employ13 ee’s intention to take leave under such subsection.’’. 

14 (e) CERTIFICATION.—Section 103 of such Act (29 

15 U.S.C. 2613) is amended by adding at the end the fol16 lowing new subsection: 

17 ‘‘(f) CERTIFICATION FOR PARENTAL INVOLVEMENT

18 LEAVE.—An employer may require that a request for 

19 leave under section 102(a)(3)(A) be supported by a certifi20 cation issued at such time and in such manner as the Sec21 retary may by regulation prescribe.’’. 
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1 SEC. 113. ENTITLEMENT TO LEAVE FOR CIVIL SERVANTS 

2 FOR PARENTAL INVOLVEMENT. 

3 (a) LEAVE REQUIREMENT.—Section 6382(a) of title 

4 5, United States Code, is amended by adding at the end 

5 the following new paragraph: 

6 ‘‘(3)(A) Subject to section 6383(f), in addition to 

7 leave available under paragraph (1), an employee shall be 

8 entitled to a total of four hours of leave during any 30- 

9 day period, and a total of 24 hours of leave during any 

10 12-month period to participate in or attend an activity 

11 that— 

12 ‘‘(i) is sponsored by a school or community or13 ganization; and 

14 ‘‘(ii) relates to a program of the school or orga15 nization that is attended by a son or daughter or a 

16 grandchild of the employee. 

17 ‘‘(B) For the purpose of this paragraph: 

18 ‘‘(i) The term ‘school’ means an elementary 

19 school or secondary school (as such terms are de20 fined in the Elementary and Secondary Education 

21 Act of 1965 (20 U.S.C. 6301 et seq.)), a Head Start 

22 program assisted under the Head Start Act (42 

23 U.S.C. 9831 et seq.), and a child care facility li24 censed under State law. 

25 ‘‘(ii) The term ‘community organization’ means 

26 a private nonprofit organization that is representa-
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1 tive of a community or a significant segment of a 

2 community and provides activities for individuals de3 scribed in subparagraph (A) or (B) of section 

4 6381(6), such as a scouting or sports organization.’’. 

5 (b) SCHEDULE.—Section 6382(b)(1) of such title is 

6 amended by inserting after the second sentence the fol7 lowing new sentence: ‘‘Leave under subsection (a)(3)(A) 

8 may be taken intermittently or on a reduced leave sched9 ule.’’. 

10 (c) SUBSTITUTION OF PAID LEAVE.—Section 

11 6382(d) of such title is amended by inserting before ‘‘, 

12 except’’ the following: ‘‘, or for leave provided under sub13 section (a)(3)(A) any of the employee’s accrued or accu14 mulated annual leave under subchapter I for any part of 

15 the 24-hour period of such leave under such subsection’’. 

16 (d) NOTICE.—Section 6382(e)(1) of such title is 

17 amended by adding at the end the following new sentence: 

18 ‘‘In any case in which an employee requests leave under 

19 subsection (a)(3)(A), the employee shall provide the em20 ploying agency with not less than seven days’ notice, be21 fore the date the leave is to begin, of the employee’s inten22 tion to take leave under such subsection.’’. 

23 (e) CERTIFICATION.—Section 6383 of such title is 

24 amended by adding at the end the following new sub25 section: 
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1 ‘‘(f) An employing agency may require that a request 

2 for leave under section 6382(a)(3)(A) be supported by a 

3 certification issued at such time and in such manner as 

4 the Office of Personnel Management may by regulation 

5 prescribe.’’. 

6 SEC. 114. CLARIFICATION OF ENTITLEMENT TO LEAVE. 

7 (a) IN GENERAL.—Section 102(a)(1) of the Family 

8 and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)) 

9 and section 6382(a)(1) of title 5, United States Code, are 

10 each amended by adding at the end the following new sub11 paragraphs: 

12 ‘‘(E) In order to meet routine family med13 ical care needs, including transportation of a 

14 son or daughter or a grandchild for medical and 

15 dental appointments for annual checkups and 

16 vaccinations. 

17 ‘‘(F) In order to meet the routine family 

18 medical care needs of elderly individuals who 

19 are related to the eligible employee, including 

20 visits to nursing homes and group homes.’’. 

21 (b) SCHEDULE.— 

22 (1) FAMILY AND MEDICAL LEAVE ACT OF

23 1993.—The first sentence of section 102(b)(1) of 

24 such Act (29 U.S.C. 2612(b)(1)) is amended by 
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1 striking ‘‘subparagraph (A) or (B)’’ and inserting 

2 ‘‘subparagraph (A), (B), (E), or (F)’’. 

3 (2) TITLE 5.—The first sentence of section 

4 6382(b)(1) of such title is amended by striking 

5 ‘‘subparagraph (A) or (B)’’ and inserting ‘‘subpara6 graph (A), (B), (E), or (F)’’. 

7 (c) SUBSTITUTION OF PAID LEAVE.— 

8 (1) FAMILY AND MEDICAL LEAVE ACT OF

9 1993.—Section 102(d)(2)(A) of such Act (29 U.S.C. 

10 2612(d)(2)(A)) (as amended by section 3(c)) is fur11 ther amended by striking ‘‘subparagraph (A), (B), 

12 or (C)’’ and inserting ‘‘subparagraph (A), (B), (C), 

13 (E), or (F)’’. 

14 (2) TITLE 5.—Section 6382(d) of such title (as 

15 amended by section 4(c)) is further amended by 

16 striking ‘‘subparagraph (A), (B), (C), or (D)’’ and 

17 inserting ‘‘subparagraph (A), (B), (C), (D), (E), or 

18 (F)’’. 

19 (d) NOTICE.— 

20 (1) FAMILY AND MEDICAL LEAVE ACT OF

21 1993.—The first sentence of section 102(e)(1) of 

22 such Act (29 U.S.C. 2612(e)(1)) (as created by the 

23 amendment made by section 3(d)) is amended by 

24 striking ‘‘subparagraph (A) or (B)’’ and inserting 

25 ‘‘subparagraph (A), (B), (E), or (F)’’. 
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1 (2) TITLE 5.—The first sentence of section 

2 6382(e)(1) of such title (as created by the amend3 ment made by section 4(d)) is amended by striking 

4 ‘‘subparagraph (A) or (B)’’ and inserting ‘‘subpara5 graph (A), (B), (E), or (F)’’. 

6 (e) SPOUSES EMPLOYED BY SAME EMPLOYER.—Sec7 tion 102(f)(1) of the Family and Medical Leave Act of 

8 1993 (29 U.S.C. 2612(f)(1)) is amended by striking ‘‘sub9 paragraph (A) or (B)’’ and inserting ‘‘subparagraph (A), 

10 (B), (E), or (F)’’. 

11 (f) CERTIFICATION.— 

12 (1) FAMILY AND MEDICAL LEAVE ACT OF

13 1993.—Section 103 of such Act (29 U.S.C. 2613) (as 

14 amended by section 3(e)) is further amended by add15 ing at the end the following new subsection: 

16 ‘‘(g) CERTIFICATION FOR ROUTINE FAMILY MED17 ICAL CARE NEEDS.—An employer may require that a re18 quest for leave under subparagraph (E) or (F) of section 

19 102(a)(1) be supported by a certification issued at such 

20 time and in such manner as the Secretary may by regula21 tion prescribe.’’. 

22 (2) TITLE 5.—Section 6383 of such title (as 

23 amended by section 4(e)) is further amended by add24 ing at the end the following new subsection: 
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1 ‘‘(g) An employing agency may require that a request 

2 for leave under subparagraph (E) or (F) of section 

3 6382(a)(1) be supported by a certification issued at such 

4 time and in such manner as the Office of Personnel Man5 agement may by regulation prescribe.’’. 

6 SEC. 115. DEFINITION OF GRANDCHILD. 

7 (a) NON-CIVIL-SERVICE EMPLOYEES.—Section 101 

8 of the Family and Medical Leave Act (29 U.S.C. 2611) 

9 is amended by adding at the end the following new para10 graph: 

11 ‘‘(14) GRANDCHILD.—The term ‘grandchild’ 

12 means a son or daughter of an employee’s child.’’. 

13 (b) CIVIL SERVICE EMPLOYEES.—Section 6381 of 

14 title 5, United States Code, is amended— 

15 (1) in paragraph (5)(B), by striking ‘‘and’’ at 

16 the end; 

17 (2) in paragraph (6)(B), by striking the period 

18 at the end and inserting ‘‘; and’’; and 

19 (3) by adding at the end the following new 

20 paragraph: 

21 ‘‘(7) the term ‘grandchild’ means a son or 

22 daughter of an employee’s child.’’. 
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1 TITLE II—CHILD CARE 

2 EXPANSION AND IMPROVEMENT 

3 Subtitle A—Care for Young 

4 Children 

5 SEC. 201. EXPANDING CHILD CARE FOR YOUNG CHILDREN. 

6 (a) GOALS.—Section 658A(b) of the Child Care and 

7 Development Block Grant Act of 1990 (42 U.S.C. 9801 

8 note) is amended— 

9 (1) in paragraph (4), by striking ‘‘and’’; 

10 (2) in paragraph (5), by striking the period and 

11 inserting ‘‘; and’’; and 

12 (3) by adding at the end the following: 

13 ‘‘(6) to assist States in improving child care 

14 services for young children.’’. 

15 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

16 658B of the Child Care and Development Block Grant Act 

17 of 1990 (42 U.S.C. 9858) is amended— 

18 (1) by striking ‘‘There’’ and inserting ‘‘(a) In 

19 General.—There’’; and 

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

21 ‘‘(b) CHILD CARE ACTIVITIES FOR YOUNG CHIL22 DREN.—In addition to amounts appropriated under sub23 section (a), there is authorized to be appropriated to carry 

24 out child care activities for young children under this sub-
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1 chapter $500,000,000 for each of the fiscal years 2006, 

2 2007, and 2008.’’. 

3 (c) CHILD CARE ACTIVITIES FOR YOUNG CHIL4 DREN.—The Child Care and Development Block Grant 

5 Act of 1990 (42 U.S.C. 9801 et seq.) is amended by in6 serting after section 658G the following: 

7 ‘‘SEC. 658H. CHILD CARE ACTIVITIES FOR YOUNG CHIL8 DREN. 

9 ‘‘Child care activities for young children for which 

10 funds under this subchapter may be used include activities 

11 that are designed to accomplish the following: 

12 ‘‘(1) Increase the availability of child care serv13 ices for young children with disabilities. 

14 ‘‘(2) Provide support services for networks of 

15 family child care providers. 

16 ‘‘(3) Provide or support programs that provide 

17 training, services, materials, equipment, or other 

18 support to caregivers, eligible child care providers, 

19 and family child care providers that provide child 

20 care to young children. Such support may include 

21 the purchase of equipment such as cribs and high 

22 chairs. 

23 ‘‘(4) Provide funds to increase compensation of24 fered and provide bonuses to caregivers, eligible 

25 child care providers, and family child care providers 
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1 who provide child care to children under the age of 

2 3 years, especially those caregivers and providers 

3 who have formal education in early childhood devel4 opment. 

5 ‘‘(5) Provide and support networks between 

6 health care providers and caregivers, eligible child 

7 care providers, and family child care providers that 

8 provide child care to young children. 

9 ‘‘(6) Provide child care services for young chil10 dren who are enrolled in Head Start programs under 

11 the Head Start Act (42 U.S.C. 9831 et seq.).’’. 

12 (d) DEFINITIONS.—Section 658P of the Child Care 

13 and Development Block Grant Act of 1990 (42 U.S.C. 

14 9858n) is amended by adding at the end the following: 

15 ‘‘(15) YOUNG CHILDREN.—The term ‘young 

16 children’ means eligible children who are less than 3 

17 years of age.’’. 

18 Subtitle B—Improving Child Care 

19 Quality Through Teacher Incen20 tives 

21 SEC. 221. PURPOSE. 

22 The purposes of this subtitle are— 

23 (1) to establish the Child Care Provider Devel24 opment and Retention Grant Program, the Child 
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1 Care Provider Scholarship Program, and a program 

2 of child care provider health benefits coverage; and 

3 (2) to help children receive the high quality 

4 child care and early education the children need for 

5 positive cognitive and social development, by reward6 ing and promoting the retention of committed, quali7 fied child care providers and by providing financial 

8 assistance to improve the educational qualifications 

9 of child care providers. 

10 SEC. 222. DEFINITIONS. 

11 In this subtitle: 

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

13 care provider’’ means an individual who provides a 

14 service directly to a child on a person-to-person basis 

15 for compensation for— 

16 (A) a center-based child care provider that 

17 is licensed or regulated under State or local law 

18 and that satisfies the State and local require19 ments applicable to the child care services pro20 vided; 

21 (B) a licensed or regulated family child 

22 care provider that satisfies the State and local 

23 requirements applicable to the child care serv24 ices provided; or 
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1 (C) an out-of-school time program that is 

2 licensed or regulated under State or local law 

3 and that satisfies the State and local require4 ments applicable to the child care services pro5 vided. 

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

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

8 such term in section 658P of the Child Care and 

9 Development Block Grant Act of 1990 (42 U.S.C. 

10 9858n). 

11 (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

12 has the meaning given such term in section 4 of the 

13 Indian Self-Determination and Education Assistance 

14 Act (25 U.S.C. 450b). 

15 (4) LEAD AGENCY.—The term ‘‘lead agency’’ 

16 means the agency designated under section 658D of 

17 the Child Care and Development Block Grant Act of 

18 1990 (42 U.S.C. 9858b). 

19 (5) SECRETARY.—The term ‘‘Secretary’’ means 

20 the Secretary of Health and Human Services. 

21 (6) STATE.—The term ‘‘State’’ means any of 

22 the several States, the District of Columbia, the 

23 Commonwealth of Puerto Rico, the Virgin Islands of 

24 the United States, Guam, American Samoa, or the 

25 Commonwealth of the Northern Mariana Islands. 
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1 (7) TRIBAL ORGANIZATION.—The term ‘‘tribal 

2 organization’’ has the meaning given the term in 

3 section 4 of the Indian Self-Determination and Edu4 cation Assistance Act (25 U.S.C. 450b). 

5 SEC. 223. FUNDS FOR CHILD CARE PROVIDER DEVELOP6 MENT AND RETENTION GRANTS, SCHOLAR7 SHIPS, AND HEALTH BENEFITS COVERAGE. 

8 (a) IN GENERAL.—From amounts appropriated to 

9 carry out this subtitle, the Secretary may allot and dis10 tribute funds to eligible States, and make payments to In11 dian tribes and tribal organizations, to pay for the Federal 

12 share of the cost of carrying out activities under sections 

13 226, 227, and 228 for eligible child care providers. 

14 (b) ALLOTMENTS.—The funds shall be allotted and 

15 distributed, and the payments shall be made, by the Sec16 retary in accordance with section 224, and expended by 

17 the States (directly, or at the option of the States, through 

18 units of general purpose local government), and by Indian 

19 tribes and tribal organizations, in accordance with this 

20 subtitle. 

21 SEC. 224. ALLOTMENTS TO STATES. 

22 (a) AMOUNTS RESERVED.— 

23 (1) TERRITORIES AND POSSESSIONS.—The Secretary shall reserve not more than 1 24 ⁄2 of 1 percent 

25 of the funds appropriated under section 231(a), and 
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not more than 1 1 ⁄2 of 1 percent of the funds appro2 priated under section 232(b), for any fiscal year for 

3 payments to the Virgin Islands of the United States, 

4 Guam, American Samoa, and the Commonwealth of 

5 the Northern Mariana Islands, to be allotted in ac6 cordance with their respective needs. 

7 (2) INDIAN TRIBES AND TRIBAL ORGANIZA8 TIONS.—The Secretary shall reserve not more than 

9 3 percent of the funds appropriated under section 

10 231(a), and not more than 3 percent of the funds 

11 appropriated under section 231(b), for any fiscal 

12 year for payments to Indian tribes and tribal organi13 zations with applications approved under subsection 

14 (c). 

15 (b) ALLOTMENTS TO REMAINING STATES.— 

16 (1) GENERAL AUTHORITY.—From the funds 

17 appropriated under section 231(a) for any fiscal year 

18 and remaining after the reservations made under 

19 subsection (a), and from the funds appropriated 

20 under section 231(b) for any fiscal year and remain21 ing after the reservations made under subsection (a), 

22 the Secretary shall allot to each State an amount 

23 equal to the sum of— 

24 (A) an amount that bears the same ratio 

25 to 50 percent of the appropriate remainder as 
34 

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1 the product of the young child factor of the 

2 State and the allotment percentage of the State 

3 bears to the sum of the corresponding products 

4 for all States; and 

5 (B) an amount that bears the same ratio 

6 to 50 percent of such 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) YOUNG CHILD FACTOR.—In this subsection, 

12 the term ‘‘young child factor’’ means the ratio of the 

13 number of children under 5 years of age in the State 

14 to the number of such children in all the States, as 

15 determined according to the most recent annual esti16 mates of population in the States, as provided by the 

17 Bureau of the Census. 

18 (3) SCHOOL LUNCH FACTOR.—In this sub19 section, the term ‘‘school lunch factor’’ means the 

20 ratio of the number of children who are receiving 

21 free or reduced price lunches under the school lunch 

22 program established under the Richard B. Russell 

23 National School Lunch Act (42 U.S.C. 1751 et seq.) 

24 in the State to the number of such children in all 
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1 the States, as determined annually by the Depart2 ment of Agriculture. 

3 (4) ALLOTMENT PERCENTAGE.— 

4 (A) IN GENERAL.—Except as provided in 

5 subparagraph (B), for purposes of this sub6 section, the allotment percentage for a State 

7 shall be determined by dividing the per capita 

8 income of all individuals in the United States, 

9 by the per capita income of all individuals in 

10 the State. 

11 (B) LIMITATIONS.—For purposes of this 

12 subsection, if an allotment percentage deter13 mined under subparagraph (A)— 

14 (i) is more than 1.2 percent, the allot15 ment percentage of that State shall be con16 sidered 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 
36 

•HR 1589 IH 

1 year beginning after the date such deter2 mination 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 such determination is made. 

9 (c) PAYMENTS TO INDIAN TRIBES AND TRIBAL OR10 GANIZATIONS.— 

11 (1) RESERVATION OF FUNDS.—From amounts 

12 reserved under subsection (a)(2), the Secretary may 

13 make grants to or enter into contracts with Indian 

14 tribes and tribal organizations that submit applica15 tions under this subsection, to plan and carry out 

16 programs and activities— 

17 (A) to encourage child care providers to 

18 improve their qualifications; 

19 (B) to retain qualified child care providers 

20 in the child care field; and 

21 (C) to provide health benefits coverage for 

22 child care providers. 

23 (2) APPLICATIONS AND REQUIREMENTS.—To 

24 be eligible to receive a grant or contract under this 

25 subsection, an Indian tribe or tribal organization 
37 

•HR 1589 IH 

1 shall submit an application to the Secretary at such 

2 time, in such manner, and containing such informa3 tion as the Secretary may require. The application 

4 shall provide that the applicant— 

5 (A) will coordinate the programs and ac6 tivities involved, to the maximum extent prac7 ticable, with the lead agency in each State in 

8 which the applicant will carry out such pro9 grams and activities; and 

10 (B) will make such reports on, and conduct 

11 such audits of the funds made available through 

12 the grant or contract for, programs and activi13 ties under this subtitle as the Secretary may re14 quire. 

15 (d) DATA AND INFORMATION.—The Secretary shall 

16 obtain from each appropriate Federal agency, the most re17 cent data and information necessary to determine the al18 lotments provided for in subsection (b). 

19 (e) REALLOTMENTS.— 

20 (1) IN GENERAL.—Any portion of an allotment 

21 under subsection (b) to a State for a fiscal year that 

22 the Secretary determines will not be distributed to 

23 the State for such fiscal year shall be reallotted by 

24 the Secretary to other States in proportion to the 
38 

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1 original corresponding allotments made under such 

2 subsection to such States for such fiscal year. 

3 (2) LIMITATIONS.— 

4 (A) REDUCTION.—The amount of any re5 allotment to which a State is entitled under this 

6 subsection shall be reduced to the extent that 

7 such amount exceeds the amount that the Sec8 retary estimates will be distributed to the State 

9 to carry out corresponding activities under this 

10 subtitle. 

11 (B) REALLOTMENTS.—The amount of 

12 such reduction shall be reallotted to States for 

13 which no reduction in a corresponding allot14 ment, or in a corresponding reallotment, is re15 quired by this subsection, in proportion to the 

16 original corresponding allotments made under 

17 subsection (b) to such States for such fiscal 

18 year. 

19 (3) AMOUNTS REALLOTTED.—For purposes of 

20 this subtitle (other than this subsection and sub21 section (b)), any amount reallotted to a State under 

22 this subsection shall be considered to be part of the 

23 corresponding allotment made under subsection (b) 

24 to the State. 
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•HR 1589 IH 

1 (4) INDIAN TRIBES OR TRIBAL ORGANIZA2 TIONS.—Any portion of a grant or contract made to 

3 an Indian tribe or tribal organization under sub4 section (c) that the Secretary determines is not 

5 being used in a manner consistent with the provi6 sions of this subtitle in the period for which the 

7 grant or contract is made available, shall be used by 

8 the Secretary to make payments to other tribes or 

9 organizations that have submitted applications under 

10 subsection (c) in accordance with their respective 

11 needs. 

12 (f) COST-SHARING.— 

13 (1) CHILD CARE PROVIDER DEVELOPMENT AND

14 RETENTION GRANTS AND SCHOLARSHIPS.— 

15 (A) FEDERAL SHARE.—The Federal share 

16 of the cost of carrying out activities under sec17 tions 226 and 227, with funds allotted under 

18 this section and distributed by the Secretary to 

19 a State, shall be— 

20 (i) not more than 90 percent of the 

21 cost of each grant made under such sec22 tions, in the first fiscal year for which the 

23 State receives such funds; 

24 (ii) not more than 85 percent of the 

25 cost of each grant made under such sec-
40 

•HR 1589 IH 

1 tions, in the second fiscal year for which 

2 the State receives such funds; 

3 (iii) not more than 80 percent of the 

4 cost of each grant made under such sec5 tions, in the third fiscal year for which the 

6 State receives such funds; and 

7 (iv) not more than 75 percent of the 

8 cost of each grant made under such sec9 tions, in any subsequent fiscal year for 

10 which the State receives such funds. 

11 (B) NON-FEDERAL SHARE.— 

12 (i) IN GENERAL.—The State may pro13 vide the non-Federal share of the cost in 

14 cash or in the form of an in-kind contribu15 tion, fairly evaluated by the Secretary. 

16 (ii) IN-KIND CONTRIBUTION.—In this 

17 subparagraph, the term ‘‘in-kind contribu18 tion’’ means payment of the costs of par19 ticipation of eligible child care providers in 

20 health insurance programs or retirement 

21 programs. 

22 (2) CHILD CARE PROVIDER HEALTH BENEFITS

23 COVERAGE.— 

24 (A) FEDERAL SHARE.—The Federal share 

25 of the cost of carrying out activities under sec-
41 

•HR 1589 IH 

1 tion 228, with funds allotted under this section 

2 and distributed by the Secretary to a State, 

3 shall be not more than 50 percent of such cost. 

4 (B) NON-FEDERAL SHARE.—The State 

5 may provide the non-Federal share of the cost 

6 in cash or in kind, fairly evaluated by the Sec7 retary, including plant, equipment, or services. 

8 The State shall provide the non-Federal share 

9 directly or through donations from public or 

10 private entities. Amounts provided by the Fed11 eral Government, or services assisted or sub12 sidized to any significant extent by the Federal 

13 Government, may not be included in deter14 mining the amount of such share. 

15 (g) AVAILABILITY OF ALLOTTED FUNDS DISTRIB16 UTED TO STATES.—Of the funds allotted under this sec17 tion for activities described in sections 226 and 227 and 

18 distributed by the Secretary to a State for a fiscal year— 

19 (1) not less than 67.5 percent shall be available 

20 to the State for grants under section 226; 

21 (2) not less than 22.5 percent shall be available 

22 to the State for grants under section 227; and 

23 (3) not more than 10 percent shall be available 

24 to pay administrative costs incurred by the State to 
42 

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1 carry out activities described in sections 226 and 

2 227. 

3 (h) DEFINITION.—For the purposes of subsections 

4 (a) through (e), the term ‘‘State’’ includes only the 50 

5 States, the District of Columbia, and the Commonwealth 

6 of Puerto Rico. 

7 SEC. 225. APPLICATION AND PLAN. 

8 (a) APPLICATION.—To be eligible to receive a dis9 tribution of funds allotted under section 224, a State shall 

10 submit to the Secretary an application at such time, in 

11 such manner, and containing such information as the Sec12 retary may require by rule and shall include in such appli13 cation— 

14 (1) a State plan that satisfies the requirements 

15 of subsection (b); and 

16 (2) assurances of compliance satisfactory to the 

17 Secretary with respect to the requirements of section 

18 228. 

19 (b) REQUIREMENTS OF PLAN.— 

20 (1) LEAD AGENCY.—The State plan shall iden21 tify the lead agency to make grants under this sub22 title for the State. 

23 (2) RECRUITMENT AND RETENTION OF CHILD

24 CARE PROVIDERS.—The State plan shall describe 

25 how the lead agency will encourage both the recruit-
43 

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1 ment of qualified child care providers who are new 

2 to the child care field and the retention of qualified 

3 child care providers who have a demonstrated com4 mitment to the child care field. 

5 (3) NOTIFICATION OF AVAILABILITY OF GRANTS

6 AND BENEFITS.—The State plan shall describe how 

7 the lead agency will identify all eligible child care 

8 providers in the State and notify the providers of the 

9 availability of grants and benefits under this sub10 title. 

11 (4) DISTRIBUTION OF GRANTS.—The State 

12 plan shall describe how the lead agency will make 

13 grants under sections 226 and 227 to eligible child 

14 care providers in selected geographical areas in the 

15 State in compliance with the following requirements: 

16 (A) SELECTION OF GEOGRAPHICAL

17 AREAS.—For the purpose of making such 

18 grants for a fiscal year, the State shall— 

19 (i) select a variety of geographical 

20 areas, determined by the State, that, col21 lectively— 

22 (I) include urban areas, suburban 

23 areas, and rural areas; and 

24 (II) are areas whose residents 

25 have diverse income levels; and 
44 

•HR 1589 IH 

1 (ii) give special consideration to geo2 graphical areas selected under this sub3 paragraph for the preceding fiscal year. 

4 (B) SELECTION OF CHILD CARE PRO5 VIDERS TO RECEIVE GRANTS.—In making 

6 grants under section 226, the State may make 

7 grants only to eligible child care providers in 

8 geographical areas selected under subparagraph 

9 (A), but may give special consideration in such 

10 areas to eligible child care providers— 

11 (i) who have attained a higher rel12 evant educational credential; 

13 (ii) who provide a specific kind of 

14 child care services; 

15 (iii) who provide child care services to 

16 populations who meet specific economic 

17 characteristics; or 

18 (iv) who meet such other criteria as 

19 the State may establish. 

20 (C) LIMITATION.—The State shall describe 

21 how the State will ensure that grants made 

22 under section 226 to child care providers will 

23 not be used to offset reductions in the com24 pensation of such providers. 
45 

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1 (D) REPORTING REQUIREMENT.—With re2 spect to each particular geographical area se3 lected under subparagraph (A), the State shall 

4 provide an assurance that the State will, for 

5 each fiscal year for which such State receives a 

6 grant under section 226— 

7 (i) include in the report required by 

8 section 229, detailed information regard9 ing— 

10 (I) the continuity of employment 

11 of the grant recipients as child care 

12 providers with the same employer; 

13 (II) with respect to each em14 ployer that employed such a grant re15 cipient, whether such employer was 

16 accredited by a recognized national or 

17 State accrediting body during the pe18 riod of employment; and 

19 (III) to the extent practicable 

20 and available to the State, the rate 

21 and frequency of employment turnover 

22 of qualified child care providers 

23 throughout such area, 

24 during the 2-year period ending on the 

25 deadline for submission of applications for 
46 

•HR 1589 IH 

1 grants under section 226 for that fiscal 

2 year; and 

3 (ii) provide a follow-up report, not 

4 later than 90 days after the end of the suc5 ceeding fiscal year that includes informa6 tion regarding— 

7 (I) the continuity of employment 

8 of the grant recipients as child care 

9 providers with the same employer; 

10 (II) with respect to each em11 ployer that employed such a grant re12 cipient, whether such employer was 

13 accredited by a recognized national or 

14 State accrediting body during the pe15 riod of employment; and 

16 (III) to the extent practicable 

17 and available to the State, detailed in18 formation regarding the rate and fre19 quency of employment turnover of 

20 qualified child care providers through21 out such area, 

22 during the 1-year period beginning on the 

23 date on which the grant to the State was 

24 made under section 226. 
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1 (5) CHILD CARE PROVIDER DEVELOPMENT AND

2 RETENTION GRANT PROGRAM.—The State plan shall 

3 describe how the lead agency will determine the 

4 amounts of grants to be made under section 226 in 

5 accordance with the following requirements: 

6 (A) SUFFICIENT AMOUNTS.—The State 

7 shall demonstrate that the amounts of indi8 vidual grants to be made under section 226 will 

9 be sufficient— 

10 (i) to encourage child care providers 

11 to improve their qualifications; and 

12 (ii) to retain qualified child care pro13 viders in the child care field. 

14 (B) AMOUNTS TO CREDENTIALED PRO15 VIDERS.—Such grants made to eligible child 

16 care providers who have a child development as17 sociate credential (or equivalent) and who are 

18 employed full-time to provide child care services 

19 shall be in an amount that is not less than 

20 $1,000 per year. 

21 (C) AMOUNTS TO PROVIDERS WITH HIGH22 ER LEVELS OF EDUCATION.—The State shall 

23 make such grants in amounts greater than 

24 $1,000 per year to eligible child care providers 

25 who have higher levels of education than the 
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1 education required for a credential such as a 

2 child development associate credential (or equiv3 alent), according to the following requirements: 

4 (i) PROVIDERS WITH BACCALAUREATE

5 DEGREES IN RELEVANT FIELDS.—An eligi6 ble child care provider who has a bacca7 laureate degree in the area of child devel8 opment or early child education shall re9 ceive a grant under section 226 in an 

10 amount that is not less than twice the 

11 amount of the grant that is made under 

12 section 226 to an eligible child care pro13 vider who has an associate of the arts de14 gree in the area of child development or 

15 early child education. 

16 (ii) PROVIDERS WITH ASSOCIATE DE17 GREES.—An eligible child care provider 

18 who has an associate of the arts degree in 

19 the area of child development or early child 

20 education shall receive a grant under sec21 tion 226 in an amount that is not less 

22 than 150 percent of the amount of the 

23 grant that is made under section 226 to an 

24 eligible child care provider who has a child 

25 development associate credential (or equiv-
49 

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1 alent) and is employed full-time to provide 

2 child care services. 

3 (iii) OTHER PROVIDERS WITH BACCA4 LAUREATE DEGREES.— 

5 (I) IN GENERAL.—Except as pro6 vided in subclause (II), an eligible 

7 child care provider who has a bacca8 laureate degree in a field other than 

9 child development or early child edu10 cation shall receive a grant under sec11 tion 226 in an amount equal to the 

12 amount of the grant that is made 

13 under section 226 to an eligible child 

14 care provider who has an associate of 

15 the arts degree in the area of child de16 velopment or early child education. 

17 (II) EXCEPTION.—If an eligible 

18 child care provider who has such a 

19 baccalaureate degree obtains addi20 tional educational training in the area 

21 of child development or early child 

22 education, as specified by the State, 

23 such provider shall receive a grant 

24 under section 226 in an amount equal 

25 to the amount of the grant that is 
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1 made under section 226 to an eligible 

2 child care provider who has a bacca3 laureate degree specified in clause (i). 

4 (D) AMOUNTS TO FULL-TIME PRO5 VIDERS.—The State shall make a grant under 

6 section 226 to an eligible child care provider 

7 who works full-time in a greater amount than 

8 the amount of the grant that is made under 

9 section 226 to an eligible child care provider 

10 who works part-time, based on the State defini11 tions of full-time and part-time work. 

12 (E) AMOUNTS TO EXPERIENCED PRO13 VIDERS.—The State shall make grants under 

14 section 226 in progressively larger amounts to 

15 eligible child care providers to reflect the num16 ber of years worked as child care providers. 

17 (6) DISTRIBUTION OF CHILD CARE PROVIDER

18 SCHOLARSHIPS.—The State plan shall describe how 

19 the lead agency will make grants for scholarships in 

20 compliance with section 227 and shall specify the 

21 types of educational and training programs for 

22 which the scholarship grants made under such sec23 tion may be used, including only programs that— 

24 (A) are administered by institutions of 

25 higher education that are eligible to participate 
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1 in student financial assistance programs under 

2 title IV of the Higher Education Act of 1965 

3 (20 U.S.C. 1070 et seq.); and 

4 (B) lead to a State or nationally recog5 nized credential in the area of child develop6 ment or early child education, an associate of 

7 the arts degree in the area of child development 

8 or early child education, or a baccalaureate de9 gree in the area of child development or early 

10 child education. 

11 (7) EMPLOYER CONTRIBUTION.—The State 

12 plan shall describe how the lead agency will encour13 age employers of child care providers to contribute 

14 to the attainment of education goals by eligible child 

15 care providers who receive grants under section 227. 

16 (8) SUPPLEMENTATION.—The State plan shall 

17 provide assurances that amounts received by the 

18 State to carry out sections 226, 227, and 228 will 

19 be used only to supplement, and not to supplant, 

20 Federal, State, and local funds otherwise available to 

21 support existing services and activities (as of the 

22 date the amounts are used) that— 

23 (A) encourage child care providers to im24 prove their qualifications and that promote the 
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1 retention of qualified child care providers in the 

2 child care field; or 

3 (B) provide health benefits coverage for 

4 child care providers. 

5 SEC. 226. CHILD CARE PROVIDER DEVELOPMENT AND RE6 TENTION GRANT PROGRAM. 

7 (a) IN GENERAL.—A State that receives funds allot8 ted under section 224 and made available to carry out this 

9 section shall expend such funds to pay for the Federal 

10 share of the cost of making grants to eligible child care 

11 providers in accordance with this section, to improve the 

12 qualifications and promote the retention of qualified child 

13 care providers. 

14 (b) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi15 ble to receive a grant under this section, a child care pro16 vider shall— 

17 (1) have a child development associate creden18 tial (or equivalent), an associate of the arts degree 

19 in the area of child development or early child edu20 cation, a baccalaureate degree in the area of child 

21 development or early child education, or a bacca22 laureate degree in an unrelated field; and 

23 (2) be employed as a child care provider for not 

24 less than 1 calendar year, or (if the provider is em25 ployed on the date of the eligibility determination in 
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1 a child care program that operates for less than a 

2 full calendar year) the program equivalent of 1 cal3 endar year, ending on the date of the application for 

4 such grant, except that not more than 3 months of 

5 education related to child development or to early 

6 child education obtained during the corresponding 

7 calendar year may be treated as employment that 

8 satisfies the requirements of this paragraph. 

9 (c) PRESERVATION OF ELIGIBILITY.—A State shall 

10 not take into consideration whether a child care provider 

11 is receiving, may receive, or may be eligible to receive any 

12 funds or benefits under any other provision of this subtitle 

13 for purposes of selecting eligible child care providers to 

14 receive grants under this section. 

15 SEC. 227. CHILD CARE PROVIDER SCHOLARSHIP PROGRAM. 

16 (a) IN GENERAL.—A State that receives funds allot17 ted under section 224 and made available to carry out this 

18 section shall expend such funds to pay for the Federal 

19 share of the cost of making scholarship grants to eligible 

20 child care providers in accordance with this section, to im21 prove their educational qualifications to provide child care 

22 services. 

23 (b) ELIGIBILITY REQUIREMENT FOR SCHOLARSHIP

24 GRANTS.—To be eligible to receive a scholarship grant 

25 under this section, a child care provider shall be employed 
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1 as a child care provider for not less than 1 calendar year, 

2 or (if the provider is employed on the date of the eligibility 

3 determination in a child care program that operates for 

4 less than a full calendar year) the program equivalent of 

5 1 calendar year, ending on the date of the application for 

6 such grant. 

7 (c) SELECTION OF GRANTEES.—For purposes of se8 lecting eligible child care providers to receive scholarship 

9 grants under this section and determining the amounts of 

10 such grants, a State shall not— 

11 (1) take into consideration whether a child care 

12 provider is receiving, may receive, or may be eligible 

13 to receive any funds or benefits under any other pro14 vision of this subtitle, or under any other Federal or 

15 State law that provides funds for educational pur16 poses; or 

17 (2) consider as resources of such provider any 

18 funds such provider is receiving, may receive, or may 

19 be eligible to receive under any other provision of 

20 this subtitle, under any other Federal or State law 

21 that provides funds for educational purposes, or 

22 from a private entity. 

23 (d) COST-SHARING REQUIRED.—The amount of a 

24 scholarship grant made under this section to an eligible 
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1 child care provider shall be less than the cost of the edu2 cational or training program for which such grant is made. 

3 (e) ANNUAL MAXIMUM SCHOLARSHIP GRANT

4 AMOUNT.—The maximum aggregate dollar amount of a 

5 scholarship grant made by a State to an eligible child care 

6 provider under this section in a fiscal year shall be $1,500. 

7 SEC. 228. CHILD CARE PROVIDER HEALTH BENEFITS COV8 ERAGE. 

9 (a) SHORT TITLE.—This section may be cited as the 

10 ‘‘Healthy Early Education Workforce Grant Program 

11 Act’’. 

12 (b) DEFINITION.—In this section, the terms ‘‘depend13 ent’’, ‘‘domestic partner’’, and ‘‘spouse’’, used with respect 

14 to a State, have the meanings given the terms by the 

15 State. 

16 (c) GENERAL AUTHORITY.—A State that receives 

17 funds allotted under section 224 and made available to 

18 carry out this section shall expend such funds to pay for 

19 the Federal share of the cost of providing access to afford20 able health benefits coverage for— 

21 (1) eligible child care providers; and 

22 (2) at the discretion of the State involved, the 

23 spouses, domestic partners, and dependents of such 

24 providers. 
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1 (d) PERMISSIBLE ACTIVITIES.—In carrying out sub2 section (c), the State may expend such funds for any of 

3 the following: 

4 (1) To reimburse an employer of an eligible 

5 child care provider, or the provider, for the employ6 er’s or provider’s share (or a portion of the share) 

7 of the premiums or other costs for coverage under 

8 group or individual health plans. 

9 (2) To offset the cost of enrolling eligible child 

10 care providers in public health benefits plans, such 

11 as the medicaid program under title XIX of the So12 cial Security Act (42 U.S.C. 1396 et seq.), the State 

13 children’s health insurance program under title XXI 

14 of such Act (42 U.S.C. 1397aa et seq.), or public 

15 employee health benefit plans. 

16 (3) To otherwise subsidize the cost of health 

17 benefits coverage for eligible child care providers. 

18 (e) ELIGIBILITY CRITERIA FOR HEALTH BENEFITS

19 COVERAGE.—The State may establish criteria to limit the 

20 child care providers who may receive benefits through the 

21 allotment. 

22 (f) SELECTION OF GRANTEES.—For purposes of se23 lecting eligible child care providers to receive benefits 

24 under this section for a fiscal year, a State shall give— 

25 (1) highest priority to— 
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1 (A) providers that meet any applicable cri2 teria established in accordance with subsection 

3 (e) and received such assistance during the pre4 vious fiscal year; and 

5 (B) at the State’s discretion, the spouses, 

6 domestic partners, and dependents of such pro7 viders; and 

8 (2) second highest priority to— 

9 (A) providers that meet any applicable cri10 teria established in accordance with subsection 

11 (e) and are accredited by the National Associa12 tion for the Education of Young Children or the 

13 National Association for Family Child Care; 

14 and 

15 (B) at the State’s discretion, the spouses, 

16 domestic partners, and dependents of such pro17 viders. 

18 SEC. 229. ANNUAL REPORT. 

19 A State that receives funds appropriated to carry out 

20 this subtitle for a fiscal year shall submit to the Secretary, 

21 not later than 90 days after the end of such fiscal year, 

22 a report— 

23 (1) specifying the uses for which the State ex24 pended such funds, and the aggregate amount of 
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1 funds (including State funds) expended for each of 

2 such uses; 

3 (2) containing available data relating to grants 

4 made and benefits provided with such funds, includ5 ing— 

6 (A) the number of eligible child care pro7 viders who received such grants and benefits; 

8 (B) the amounts of such grants and bene9 fits; 

10 (C) any other information that describes or 

11 evaluates the effectiveness of this subtitle; 

12 (D) the particular geographical areas se13 lected under section 225 for the purpose of 

14 making such grants; 

15 (E) with respect to grants made under sec16 tion 226— 

17 (i) the number of years grant recipi18 ents have been employed as child care pro19 viders; 

20 (ii) the level of training and education 

21 of grant recipients; 

22 (iii) to the extent practicable and 

23 available to the State, detailed information 

24 regarding the salaries and other compensa25 tion received by grant recipients to provide 
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1 child care services before, during, and after 

2 receiving such grants; 

3 (iv) the number of children who re4 ceived child care services provided by grant 

5 recipients; 

6 (v) information on family demo7 graphics of such children; 

8 (vi) the types of settings described in 

9 subparagraphs (A), (B), and (C) of section 

10 222(1) in which grant recipients are em11 ployed; and 

12 (vii) the ages of the children who re13 ceived child care services provided by grant 

14 recipients; 

15 (F) with respect to grants made under sec16 tion 227— 

17 (i) the number of years grant recipi18 ents have been employed as child care pro19 viders; 

20 (ii) the level of training and education 

21 of grant recipients; 

22 (iii) to the extent practicable and 

23 available to the State, detailed information 

24 regarding the salaries and other compensa25 tion received by grant recipients to provide 
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1 child care services before, during, and after 

2 receiving such grants; 

3 (iv) the types of settings described in 

4 subparagraphs (A), (B), and (C) of section 

5 222(1) in which grant recipients are em6 ployed; 

7 (v) the ages of the children who re8 ceived child care services provided by grant 

9 recipients; 

10 (vi) the number of course credits or 

11 credentials obtained by grant recipients; 

12 and 

13 (vii) the amount of time taken for 

14 completion of the educational and training 

15 programs for which such grants were 

16 made; and 

17 (G) such other information as the Sec18 retary may require by rule. 

19 SEC. 230. EVALUATION OF HEALTH BENEFITS PROGRAMS 

20 BY SECRETARY. 

21 (a) EVALUATION.—The Secretary shall conduct an 

22 evaluation of several State programs carried out with 

23 grants made under section 228, representing various ap24 proaches to raising the rate of child care providers with 

25 health benefits coverage. 
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1 (b) ASSESSMENT OF IMPACTS.—In evaluating State 

2 programs under subsection (a), the Secretary may con3 sider any information appropriate to measure the success 

4 of the programs, and shall assess the impact of the pro5 grams on the following: 

6 (1) The rate of child care providers with health 

7 benefits coverage. 

8 (2) The take-up rate by eligible child care pro9 viders. 

10 (3) The turnover rate in the child care field. 

11 (4) The average wages paid to a child care pro12 vider. 

13 (c) REPORT.—Not later than 3 years after the date 

14 of enactment of this subtitle, the Secretary shall prepare 

15 and submit a report to Congress containing the results 

16 of the evaluation conducted under subsection (a), together 

17 with recommendations for strengthening programs carried 

18 out with grants made under section 228. 

19 SEC. 231. AUTHORIZATION OF APPROPRIATIONS. 

20 (a) CHILD CARE PROVIDER DEVELOPMENT, RETEN21 TION, AND SCHOLARSHIPS.—There are authorized to be 

22 appropriated to carry out the activities described in sec23 tions 226 and 227 $500,000,000 for fiscal year 2006 and 

24 such sums as may be necessary for each of fiscal years 

25 2007 through 2010. 
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1 (b) CHILD CARE PROVIDER HEALTH BENEFITS COV2 ERAGE.—There is authorized to be appropriated to carry 

3 out the activities described in section 228 $200,000,000 

4 for fiscal year 2006 and such sums as may be necessary 

5 for each of fiscal years 2007 through 2010. 

6 Subtitle C—Child Care Construc7 tion and Renovation Incentive 

8 Grants 

9 SEC. 241. SHORT TITLE. 

10 This subtitle may be cited as the ‘‘Child Care Con11 struction and Renovation Incentive Grants Act’’. 

12 SEC. 242. USE OF COMMUNITY DEVELOPMENT BLOCK 

13 GRANTS TO ESTABLISH CHILD CARE FACILI14 TIES. 

15 Section 105(a) of the Housing and Community De16 velopment Act of 1974 (42 U.S.C. 5305(a)) is amended— 

17 (1) in paragraph (24), by striking ‘‘and’’ at the 

18 end; 

19 (2) in paragraph (25), by striking the period at 

20 the end and inserting ‘‘; and’’; and 

21 (3) by adding at the end the following: 

22 ‘‘(26) the construction and renovation of child 

23 care facilities.’’. 
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1 SEC. 243. INSURANCE FOR MORTGAGES ON NEW AND RE2 HABILITATED CHILD CARE FACILITIES. 

3 Title II of the National Housing Act (12 U.S.C. 1707 

4 et seq.) is amended by adding at the end the following: 

5 ‘‘SEC. 257. MORTGAGE INSURANCE FOR CHILD CARE FA6 CILITIES. 

7 ‘‘(a) DEFINITIONS.—In this section: 

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

9 care facility’— 

10 ‘‘(A) means a public or private facility 

11 that— 

12 ‘‘(i) has as its purpose the care and 

13 development of— 

14 ‘‘(I) children who are less than 

15 16 years of age; or 

16 ‘‘(II) school-age children and 

17 youth during non-school hours; and 

18 ‘‘(ii) is operated in accordance with all 

19 applicable State and local laws and regula20 tions; and 

21 ‘‘(B) does not include any facility for 

22 school-age children that is primarily for use 

23 during normal school hours. 

24 ‘‘(2) EQUIPMENT.—The term ‘equipment’ in25 cludes— 
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1 ‘‘(A) machinery, utilities, and built-in 

2 equipment, and any necessary enclosure or 

3 structure to house them; and 

4 ‘‘(B) any other items necessary for the 

5 functioning of a particular facility as a child 

6 care facility, including necessary furniture, 

7 books, and curricular and program materials. 

8 ‘‘(3) FIRST MORTGAGE.—The term ‘first mort9 gage’— 

10 ‘‘(A) means such classes of first liens as 

11 are commonly given to secure advances (includ12 ing advances during construction) on, or the 

13 unpaid purchase price of, real estate under the 

14 laws of the State in which the real estate is lo15 cated, together with the credit instrument or in16 struments (if any) secured thereby; and 

17 ‘‘(B) includes any mortgage in the form of 

18 1 or more trust mortgages or mortgage inden19 tures or deeds of trust, securing notes, bonds, 

20 or other credit instruments, that, by the same 

21 instrument or by a separate instrument, creates 

22 a security interest in initial equipment, whether 

23 or not attached to the realty. 

24 ‘‘(4) MORTGAGE.—The term ‘mortgage’ means 

25 a first mortgage on real estate in fee simple, or on 
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1 the interest of either the lessor or lessee thereof 

2 under a lease having a period of not less than 7 

3 years to run beyond the maturity date of the mort4 gage. 

5 ‘‘(5) MORTGAGOR.—The term ‘mortgagor’ has 

6 the meaning given the term in section 207(a). 

7 ‘‘(b) INSURANCE OF MORTGAGES.—In order to facili8 tate the establishment and rehabilitation of child care fa9 cilities, the Secretary may— 

10 ‘‘(1) insure a mortgage that is secured by a 

11 property or project that is— 

12 ‘‘(A) a new child care facility, including a 

13 new addition to an existing child care facility 

14 (regardless of whether the existing facility is 

15 being rehabilitated); or 

16 ‘‘(B) a substantially rehabilitated child 

17 care facility, including equipment to be used in 

18 the operation of the facility; and 

19 ‘‘(2) make a commitment to insure any mort20 gage described in paragraph (1) before the date of 

21 execution or disbursement of the mortgage. 

22 ‘‘(c) TERMS AND CONDITIONS.— 

23 ‘‘(1) ELIGIBLE CHILD CARE FACILITIES.—Each 

24 mortgage insured under this section shall be secured 

25 by a child care facility for which a certification of 
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1 compliance has been issued by the Secretary under 

2 section 258(c) during the 12-month period preceding 

3 the date on which the commitment to insure the 

4 mortgage is issued under this section. 

5 ‘‘(2) APPROVED MORTGAGOR.— 

6 ‘‘(A) IN GENERAL.—Each mortgage in7 sured under this section shall be executed by a 

8 mortgagor approved by the Secretary. 

9 ‘‘(B) REGULATION.—The Secretary may— 

10 ‘‘(i) require an approved mortgagor 

11 who executes a mortgage under subpara12 graph (A) to be regulated with respect to 

13 charges and methods of financing and, if 

14 the mortgagor is a corporate entity, with 

15 respect to capital structure and rate of re16 turn; and 

17 ‘‘(ii) as an aid to the regulation of any 

18 mortgagor under clause (i), make such 

19 contracts with and acquire for not more 

20 than $100 such stock or interest in such 

21 mortgagor as the Secretary considers to be 

22 necessary. 

23 ‘‘(C) STOCK OR INTEREST.—Any stock or 

24 interest purchased under subparagraph (B)(ii) 

25 shall be— 
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1 ‘‘(i) paid for out of the General Insur2 ance Fund; and 

3 ‘‘(ii) redeemed by the mortgagor at 

4 par upon the termination of all obligations 

5 of the Secretary under the insurance. 

6 ‘‘(3) PRINCIPAL OBLIGATION.—Each mortgage 

7 insured under this section shall involve a principal 

8 obligation in an amount not to exceed 90 percent of 

9 the estimated value of the property or project, or 95 

10 percent of the estimated value of the property or 

11 project in the case of a mortgagor that is a private 

12 nonprofit corporation or association (as defined pur13 suant to section 221(d)(3)), including— 

14 ‘‘(A) equipment to be used in the operation 

15 of the facility when the proposed improvements 

16 are completed and the equipment is installed; or 

17 ‘‘(B) a solar energy system (as defined in 

18 subparagraph (3) of the last paragraph of sec19 tion 2(a)) or residential energy conservation 

20 measures (as defined in subparagraphs (A) 

21 through (G) and (I) of section 210(11) of the 

22 National Energy Conservation Policy Act), in 

23 cases in which the Secretary determines that 

24 such measures are in addition to those required 
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1 under the minimum property standards and will 

2 be cost-effective over the life of the measure. 

3 ‘‘(4) AMORTIZATION AND INTEREST.—Each 

4 mortgage insured under this section shall— 

5 ‘‘(A) provide for complete amortization by 

6 periodic payments under such terms as the Sec7 retary shall prescribe; 

8 ‘‘(B) have a maturity date satisfactory to 

9 the Secretary, but in no event longer than 25 

10 years; and 

11 ‘‘(C) bear interest at such rate as may be 

12 agreed upon by the mortgagor and the mort13 gagee, and the Secretary shall not issue any 

14 regulations or establish any terms or conditions 

15 that interfere with the ability of the mortgagor 

16 and mortgagee to determine the interest rate. 

17 ‘‘(5) RELEASE.—The Secretary may consent to 

18 the release of a part or parts of the mortgaged prop19 erty or project from the lien of any mortgage in20 sured under this section upon such terms and condi21 tions as the Secretary may prescribe. 

22 ‘‘(6) MORTGAGE INSURANCE TERMS.—Sub23 sections (d), (e), (g), (h), (i), (j), (k), (l), and (n) of 

24 section 207 apply to any mortgage insured under 

25 this section, except that all references in such sub-
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1 sections to section 207 shall be construed, for pur2 poses of mortgage insurance under this section, to 

3 refer to this section. 

4 ‘‘(d) MORTGAGE INSURANCE FOR FIRE SAFETY

5 EQUIPMENT LOANS.— 

6 ‘‘(1) AUTHORITY.—The Secretary may, upon 

7 such terms and conditions as the Secretary may pre8 scribe, make commitments to insure and insure 

9 loans made by financial institutions or other ap10 proved mortgagees to child care facilities to provide 

11 for the purchase and installation of fire safety equip12 ment necessary for compliance with the 1967 edition 

13 of the Life Safety Code of the National Fire Protec14 tion Association (or any subsequent edition specified 

15 by the Secretary of Health and Human Services). 

16 ‘‘(2) LOAN REQUIREMENTS.—To be eligible for 

17 insurance under this subsection a loan shall— 

18 ‘‘(A) not exceed the estimate by the Sec19 retary of the reasonable cost of the equipment 

20 fully installed; 

21 ‘‘(B) bear interest at such rate as may be 

22 agreed upon by the mortgagor and the mort23 gagee; 

24 ‘‘(C) have a maturity date satisfactory to 

25 the Secretary; 
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1 ‘‘(D) be made by a financial institution or 

2 other mortgagee approved by the Secretary as 

3 eligible for insurance under section 2 or a mort4 gagee approved under section 203(b)(1); 

5 ‘‘(E) comply with other such terms, condi6 tions, and restrictions as the Secretary may 

7 prescribe; and 

8 ‘‘(F) be made with respect to a child care 

9 facility for which a certification of compliance 

10 has been issued by the Secretary under section 

11 258(c) during the 12-month period preceding 

12 the date on which the commitment to insure is 

13 issued under this subsection. 

14 ‘‘(3) INSURANCE REQUIREMENTS.— 

15 ‘‘(A) SECTION 2.—Subsections (c), (d), 

16 and (h) of section 2 shall apply to any loan in17 sured under this subsection, except that all ref18 erences in such subsections to ‘this section’ or 

19 ‘this title’ shall be construed, for purposes of 

20 this subsection, to refer to this subsection. 

21 ‘‘(B) SECTION 220.—Paragraphs (5), (6), 

22 (7), (9), and (10) of section 220(h) shall apply 

23 to any loan insured under this subsection, ex24 cept that all references in such paragraphs to 

25 home improvement loans shall be construed, for 
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1 purposes of this subsection, to refer to loans 

2 under this subsection. 

3 ‘‘(e) SCHEDULES AND DEADLINES.—The Secretary 

4 shall establish schedules and deadlines for the processing 

5 and approval (or provision of notice of disapproval) of ap6 plications for mortgage insurance under this section. 

7 ‘‘(f) LIMITATION ON INSURANCE AUTHORITY.— 

8 ‘‘(1) TERMINATION.—No mortgage may be in9 sured under this section or section 223(h) after Sep10 tember 30, 2007, except pursuant to a commitment 

11 to insure issued on or before such date. 

12 ‘‘(2) AGGREGATE PRINCIPAL AMOUNT LIMITA13 TION.— 

14 ‘‘(A) IN GENERAL.—The aggregate prin15 cipal amount of mortgages for which the Sec16 retary enters into commitments to insure under 

17 this section or section 223(h) on or before the 

18 date described in paragraph (1) may not exceed 

19 $2,000,000,000. 

20 ‘‘(B) REPORT.—If, on the date described 

21 in paragraph (1), the aggregate insurance au22 thority provided under this paragraph has not 

23 been fully used, the Secretary of the Treasury 

24 shall submit to Congress a report evaluating the 
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1 need for continued mortgage insurance under 

2 this section. 

3 ‘‘(g) NONDISCRIMINATION REQUIREMENT.— 

4 ‘‘(1) IN GENERAL.—A child care facility receiv5 ing assistance under this title may not discriminate 

6 on the basis of race, color, or national origin (to the 

7 extent provided in title VI of the Civil Rights Act of 

8 1964 (42 U.S.C. 2000d et seq.)), religion (subject to 

9 subparagraph (B)), national origin, sex (to the ex10 tent provided in title IX of the Education Amend11 ments of 1972 (20 U.S.C. 1681 et seq.)), or dis12 ability (to the extent provided in section 504 of the 

13 Rehabilitation Act of 1973 (29 U.S.C. 794)), under 

14 any program or activity receiving Federal financial 

15 assistance under this title. 

16 ‘‘(2) FACILITIES OF RELIGIOUS ORGANIZA17 TIONS.—The prohibition with respect to religion 

18 under paragraph (1) shall not apply to a child care 

19 facility that is controlled by, or that is closely identi20 fied with, the tenets of a particular religious organi21 zation, if the application of this paragraph would not 

22 be consistent with the religious tenets of such orga23 nization. 

24 ‘‘(h) LIABILITY INSURANCE.—A child care provider 

25 operating a child care facility assisted under this section 
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1 or section 223(h) shall obtain and maintain liability insur2 ance in such amounts and subject to such requirements 

3 as the Secretary considers to be appropriate. 

4 ‘‘(i) SMALL PURPOSE LOANS.— 

5 ‘‘(1) IN GENERAL.—To the extent that amounts 

6 are made available pursuant to subsection (l), the 

7 Secretary shall make loans, directly or indirectly, to 

8 providers of child care facilities for reconstruction or 

9 renovation of such facilities, in accordance with this 

10 subsection. 

11 ‘‘(2) REQUIREMENTS.—A loan under this sub12 section— 

13 ‘‘(A) may be made only for a child care fa14 cility that is financially and operationally viable, 

15 as determined under standards established by 

16 the Secretary; 

17 ‘‘(B) may not have a term to maturity ex18 ceeding 7 years; 

19 ‘‘(C) shall bear interest at a rate estab20 lished by the Secretary; and 

21 ‘‘(D) shall be subject to such other terms 

22 and conditions as the Secretary may establish 

23 by regulation. 
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1 ‘‘(3) AGGREGATE LOAN AMOUNT.—The aggre2 gate amount of loans under this subsection to a sin3 gle provider may not exceed $30,000. 

4 ‘‘(j) NOTIFICATION.—The Secretary shall take such 

5 actions as may be necessary to publicize the availability 

6 of the programs for mortgage insurance under this section 

7 and section 223(h), and the loan program under sub8 section (i) of this section, in a manner that ensures that 

9 information concerning such programs will be available to 

10 child care providers throughout the United States. 

11 ‘‘(k) REGULATIONS.—The Secretary shall— 

12 ‘‘(1) issue any regulations necessary to carry 

13 out this section; and 

14 ‘‘(2) in carrying out paragraph (1), consult with 

15 the Secretary of Health and Human Services with 

16 respect to any aspects of the regulations regarding 

17 child care facilities. 

18 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to carry out this section 

20 $30,000,000 for fiscal year 2006, to remain available until 

21 expended, of which not more than 10 percent may be used 

22 for loans under subsection (i).’’. 
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1 SEC. 244. INSURANCE FOR MORTGAGES FOR ACQUISITION 

2 OR REFINANCING DEBT OF EXISTING CHILD 

3 CARE FACILITIES. 

4 (a) IN GENERAL.—Section 223 of the National 

5 Housing Act (12 U.S.C. 1715n) is amended by adding at 

6 the end the following: 

7 ‘‘(h) MORTGAGE INSURANCE FOR PURCHASE OR RE8 FINANCING OF EXISTING CHILD CARE FACILITIES.— 

9 ‘‘(1) DEFINITIONS.—In this subsection, the 

10 terms that are defined in section 257(a) have the 

11 same meanings as in that section. 

12 ‘‘(2) AUTHORITY.—Notwithstanding any other 

13 provision of this Act, the Secretary may insure 

14 under any section of this title a mortgage executed 

15 in connection with— 

16 ‘‘(A) the purchase or refinancing of an ex17 isting child care facility; 

18 ‘‘(B) the purchase of a structure to serve 

19 as a child care facility; or 

20 ‘‘(C) the refinancing of existing debt of an 

21 existing child care facility. 

22 ‘‘(3) PURCHASE OF EXISTING FACILITIES AND

23 STRUCTURES.—In the case of the purchase under 

24 this subsection of an existing child care facility or 

25 purchase of an existing structure to serve as such a 

26 facility, the Secretary shall prescribe any terms and 
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1 conditions that the Secretary considers necessary to 

2 ensure that— 

3 ‘‘(A) the facility or structure purchased 

4 continues to be used as a child care facility; and 

5 ‘‘(B) the facility receives a certification of 

6 compliance under section 258(c). 

7 ‘‘(4) REFINANCING OF EXISTING FACILITIES.— 

8 In the case of refinancing of an existing child care 

9 facility, the Secretary shall prescribe any terms and 

10 conditions that the Secretary considers necessary to 

11 ensure that— 

12 ‘‘(A) the refinancing is used to lower the 

13 monthly debt service costs (taking into account 

14 any fees or charges connected with such refi15 nancing) of the existing facility; 

16 ‘‘(B) the proceeds of any refinancing will 

17 be employed only to retire the existing indebted18 ness and pay the necessary cost of refinancing 

19 on the existing facility; 

20 ‘‘(C) the existing facility is economically 

21 viable; and 

22 ‘‘(D) the facility receives a certification of 

23 compliance under section 258(c). 

24 ‘‘(5) LIMITATION ON INSURANCE AUTHORITY.— 

25 The authority of the Secretary to enter into commit-
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1 ments to insure mortgages under this subsection is 

2 subject to section 257(f).’’. 

3 SEC. 245. STUDY OF AVAILABILITY OF SECONDARY MAR4 KETS FOR MORTGAGES ON CHILD CARE FA5 CILITIES. 

6 (a) STUDY.—The Secretary of the Treasury shall 

7 conduct a study of the secondary mortgage markets to de8 termine— 

9 (1) whether such a market exists for purchase 

10 of mortgages eligible for insurance under sections 

11 223(h) and 257 of the National Housing Act (as 

12 added by this subtitle); 

13 (2) whether such a market would affect the 

14 availability of credit available for development of 

15 child care facilities or would lower development costs 

16 of such facilities; and 

17 (3) the extent to which such a market or other 

18 activities to provide credit enhancement for loans for 

19 child care facilities is needed to meet the demand for 

20 such facilities. 

21 (b) REPORT.—Not later than 2 years after the date 

22 of enactment of this Act, the Secretary of the Treasury 

23 shall submit to Congress a report regarding the results 

24 of the study conducted under this section. 
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1 SEC. 246. TECHNICAL AND FINANCIAL ASSISTANCE 

2 GRANTS. 

3 (a) DEFINITIONS.—In this section: 

4 (1) CHILD CARE FACILITY.—The term ‘‘child 

5 care facility’’ has the meaning given that term in 

6 section 257(a) of the National Housing Act, as 

7 added by section 243 of this Act. 

8 (2) ELIGIBLE INTERMEDIARY.—The term ‘‘eli9 gible intermediary’’ means a intermediary organiza10 tion that— 

11 (A) is described in section 501(c)(3) of the 

12 Internal Revenue Code of 1986; 

13 (B) is exempt from taxation under section 

14 501(a) of such Code; and 

15 (C) has demonstrated experience in— 

16 (i) financing the construction and ren17 ovation of physical facilities; 

18 (ii) providing technical and financial 

19 assistance to child care providers or other 

20 similar entities; 

21 (iii) working with businesses (whether 

22 small or large); and 

23 (iv) securing private sources for cap24 ital financing; and 

25 (3) ELIGIBLE RECIPIENT.—The term ‘‘eligible 

26 recipient’’ means any— 
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1 (A) existing or start-up center-based or 

2 home-based child care provider; and 

3 (B) organization in the process of estab4 lishing a center-based or home-based child care 

5 program or otherwise seeking to provide child 

6 care services. 

7 (4) EQUIPMENT.—The term ‘‘equipment’’ has 

8 the meaning given that term in section 257(a) of the 

9 National Housing Act, as added by section 243 of 

10 this Act. 

11 (b) GRANT AUTHORITY.—The Secretary of Housing 

12 and Urban Development, in consultation with the Sec13 retary of Health and Human Services, may award grants 

14 on a competitive basis in accordance with this section to 

15 eligible intermediaries for use in accordance with sub16 sections (e) and (f). 

17 (c) APPLICATIONS.—To be eligible to receive a grant 

18 under this section an eligible intermediary shall submit to 

19 the Secretary an application, in such form and containing 

20 such information as the Secretary may require. 

21 (d) PRIORITY.—In awarding grants under this sec22 tion the Secretary shall give a priority to applicants under 

23 subsection (c) that serve low-income or rural areas. 

24 (e) USE OF FUNDS.— 
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1 (1) REVOLVING LOAN FUND.—Each eligible 

2 intermediary that receives a grant under this section 

3 shall deposit the grant amount into a child care re4 volving loan fund established by the eligible inter5 mediary. 

6 (2) ELIGIBLE ASSISTANCE.—Subject to sub7 section (f), from amounts deposited into the revolv8 ing loan fund under paragraph (1), each eligible 

9 intermediary shall provide to eligible recipients— 

10 (A) financial assistance (in the form of 

11 loans, grants, investments, guarantees, interest 

12 subsidies, and other appropriate forms of assist13 ance) for the construction of new child care fa14 cilities, child care facility planning, and acquisi15 tion or improvement of child care facilities or 

16 equipment; and 

17 (B) technical assistance in obtaining public 

18 or private financing for such construction, plan19 ning, acquisition, and improvement, including 

20 developing and implementing financing re21 sources, options, and plans for such eligible re22 cipients. 

23 (3) LOAN REPAYMENTS AND INVESTMENT PRO24 CEEDS.—Any amount received by an eligible inter25 mediary from an eligible recipient in the form of 
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1 loan principal repayment or investment proceeds 

2 shall be deposited into the child care revolving fund 

3 of the eligible intermediary for redistribution to 

4 other eligible recipients in accordance with this sec5 tion. 

6 (f) ALLOCATION OF FUNDS.—Of the amounts dis7 tributed from the revolving loan fund of an eligible inter8 mediary under subsection (e)(2) in each fiscal year— 

9 (1) not less than 50 percent shall be used for 

10 financial assistance pursuant to subparagraph (A) of 

11 subsection (e)(2), except that the amount made 

12 available to any eligible recipient under this para13 graph may not exceed 40 percent of the total costs 

14 incurred by that eligible recipient in connection with 

15 the construction, planning, acquisition, or improve16 ment assisted; and 

17 (2) the amount remaining after distribution 

18 under paragraph (1), shall be used to provide tech19 nical assistance pursuant to subparagraph (B) of 

20 subsection (e)(2). 

21 (g) DAVIS BACON ACT.—The Act of March 3, 1931 

22 (popularly known as the Davis-Bacon Act) shall apply to 

23 actions taken under this section. 
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1 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $10,000,000 for each of fiscal years 2006 through 2010. 

4 Subtitle D—Business Child Care 

5 Incentive Grant Program 

6 SEC. 251. BUSINESS CHILD CARE INCENTIVE GRANT PRO7 GRAM. 

8 (a) ESTABLISHMENT.—The Secretary of Health and 

9 Human Services (referred to in this section as the ‘‘Sec10 retary’’) shall establish a program to award grants to 

11 States, on a competitive basis, to assist States in providing 

12 funds to encourage the establishment and operation of em13 ployer operated child care programs. 

14 (b) APPLICATION.—To be eligible to receive a grant 

15 under this section, a State shall prepare and submit to 

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

17 and containing such information as the Secretary may re18 quire, including an assurance that the funds required 

19 under subsection (e) will be provided. 

20 (c) AMOUNT OF GRANT.—The Secretary shall deter21 mine the amount of a grant to a State under this section 

22 based on the population of children less than 5 years of 

23 age in the State as compared to the population of all 

24 States receiving grants under this section. 

25 (d) USE OF FUNDS.— 
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1 (1) IN GENERAL.—A State shall use amounts 

2 provided under a grant awarded under this section 

3 to provide assistance to businesses located in the 

4 State to enable the businesses to establish and oper5 ate child care programs. Such assistance may in6 clude— 

7 (A) technical assistance in the establish8 ment of a child care program; 

9 (B) assistance for the startup costs related 

10 to a child care program; 

11 (C) assistance for the training of child care 

12 providers; 

13 (D) scholarships for low-income wage earn14 ers; 

15 (E) the provision of services to care for 

16 sick children or to provide care to school aged 

17 children; 

18 (F) the entering into of contracts with 

19 local resource and referral or local health de20 partments; 

21 (G) assistance for care for children with 

22 disabilities; or 

23 (H) assistance for any other activity deter24 mined appropriate by the State. 
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1 (2) APPLICATION.—To be eligible to receive as2 sistance from a State under this section, a business 

3 shall prepare and submit to the State an application 

4 at such time, in such manner, and containing such 

5 information as the State may require. 

6 (3) PREFERENCE.— 

7 (A) IN GENERAL.—In providing assistance 

8 under this section, a State shall give priority to 

9 applicants that desire to form a consortium to 

10 provide child care in a geographic area within 

11 the State where such care is not generally avail12 able or accessible. 

13 (B) CONSORTIUM.—For purposes of sub14 paragraph (A), a consortium shall be made up 

15 of 2 or more entities that may include busi16 nesses, nonprofit agencies or organizations, 

17 local governments, or other appropriate entities. 

18 (4) LIMITATION.—With respect to grant funds 

19 received under this section, a State may not provide 

20 in excess of $100,000 in assistance from such funds 

21 to any single applicant. 

22 (e) MATCHING REQUIREMENT.—To be eligible to re23 ceive a grant under this section a State shall provide as24 surances to the Secretary that, with respect to the costs 

25 to be incurred by an entity receiving assistance in carrying 
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1 out activities under this section, the entity will make avail2 able (directly or through donations from public or private 

3 entities) non-Federal contributions to such costs in an 

4 amount equal to— 

5 (1) for the first fiscal year in which the entity 

6 receives such assistance, not less than 50 percent of 

7 such costs ($1 for each $1 of assistance provided to 

8 the entity under the grant); 

9 (2) for the second fiscal year in which the entity receives such assistance, not less than 662 10 ⁄3 per11 cent of such costs ($2 for each $1 of assistance pro12 vided to the entity under the grant); and 

13 (3) for the third fiscal year in which the entity 

14 receives such assistance, not less than 75 percent of 

15 such costs ($3 for each $1 of assistance provided to 

16 the entity under the grant). 

17 (f) REQUIREMENTS OF PROVIDERS.—To be eligible 

18 to receive assistance under a grant awarded under this 

19 section a child care provider shall comply with all applica20 ble State and local licensing and regulatory requirements 

21 and all applicable health and safety standards in effect 

22 in the State. 

23 (g) ADMINISTRATION.— 

24 (1) STATE RESPONSIBILITY.—A State shall 

25 have responsibility for administering a grant award-
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1 ed for the State under this section and for moni2 toring entities that receive assistance under such 

3 grant. 

4 (2) AUDITS.—A State shall require each entity 

5 receiving assistance under the grant awarded under 

6 this section to conduct an annual audit with respect 

7 to the activities of the entity. Such audits shall be 

8 submitted to the State. 

9 (3) MISUSE OF FUNDS.— 

10 (A) REPAYMENT.—If the State determines, 

11 through an audit or otherwise, that an entity 

12 receiving assistance under a grant awarded 

13 under this section has misused the assistance, 

14 the State shall notify the Secretary of the mis15 use. The Secretary, upon such a notification, 

16 may seek from such an entity the repayment of 

17 an amount equal to the amount of any such 

18 misused assistance plus interest. 

19 (B) APPEALS PROCESS.—The Secretary 

20 shall by regulation provide for an appeals proc21 ess with respect to repayments under this para22 graph. 

23 (h) REPORTING REQUIREMENTS.— 

24 (1) 2-YEAR STUDY.— 
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1 (A) IN GENERAL.—Not later than 2 years 

2 after the date on which the Secretary first 

3 awards grants under this section, the Secretary 

4 shall conduct a study to determine— 

5 (i) the capacity of entities to meet the 

6 child care needs of communities within 

7 States; 

8 (ii) the kinds of partnerships that are 

9 being formed with respect to child care at 

10 the local level to carry out programs fund11 ed under this section; and 

12 (iii) who is using the programs funded 

13 under this section and the income levels of 

14 such individuals. 

15 (B) REPORT.—Not later than 28 months 

16 after the date on which the Secretary first 

17 awards grants under this section, the Secretary 

18 shall prepare and submit to the appropriate 

19 committees of Congress a report on the results 

20 of the study conducted in accordance with sub21 paragraph (A). 

22 (2) 4-YEAR STUDY.— 

23 (A) IN GENERAL.—Not later than 4 years 

24 after the date on which the Secretary first 

25 awards grants under this section, the Secretary 
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1 shall conduct a study to determine the number 

2 of child care facilities funded through entities 

3 that received assistance through a grant award4 ed under this section that remain in operation 

5 and the extent to which such facilities are meet6 ing the child care needs of the individuals 

7 served by such facilities. 

8 (B) REPORT.—Not later than 52 months 

9 after the date on which the Secretary first 

10 awards grants under this section, the Secretary 

11 shall prepare and submit to the appropriate 

12 committees of Congress a report on the results 

13 of the study conducted in accordance with sub14 paragraph (A). 

15 (i) DEFINITION.—In this section, the term ‘‘busi16 ness’’ means an employer who employed an average of at 

17 least 2 employees on business days during the preceding 

18 calendar year. 

19 (j) AUTHORIZATION OF APPROPRIATIONS.— 

20 (1) IN GENERAL.—There is authorized to be 

21 appropriated to carry out this section, $60,000,000 

22 for the period of fiscal years 2006 through 2008. 

23 (2) EVALUATIONS AND ADMINISTRATION.— 

24 With respect to the total amount appropriated for 

25 such period in accordance with this subsection, not 
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1 more than $5,000,000 of that amount may be used 

2 for expenditures related to conducting evaluations 

3 required under, and the administration of, this sec4 tion. 

5 (k) TERMINATION OF PROGRAM.—The program es6 tablished under subsection (a) shall terminate on Sep7 tember 30, 2009. 

8 TITLE III—PRE-SCHOOL, IN9 SCHOOL, AND AFTERSCHOOL 

10 ASSISTANCE 

11 Subtitle A—Universal 

12 Prekindergarten Act 

13 SEC. 301. SHORT TITLE. 

14 This subtitle may be cited as the ‘‘Universal Pre15 kindergarten Act’’. 

16 SEC. 302. FINDINGS AND PURPOSE. 

17 (a) FINDINGS.—The Congress finds the following: 

18 (1) High-quality prekindergarten programs help 

19 children to succeed academically. Children who at20 tended a high-quality prekindergarten program have 

21 higher academic achievement, lower rates of grade 

22 retention, are less likely to be placed in special edu23 cation, and graduate from high school at higher 

24 rates than those who did not. 
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1 (2) Early childhood education can reduce juve2 nile delinquency rates. A 15-year study following 

3 989 low-income children who attended high-quality, 

4 comprehensive prekindergarten found that they were 

5 33 percent less likely to be arrested, and 42 percent 

6 less likely to be arrested for a violent crime, than 

7 children in the control group. 

8 (3) There is currently a drastic shortage of af9 fordable, quality early education programs that are 

10 accessible for working families. 

11 (4) Full-day, full-calendar-year universal pre12 kindergarten programs would ensure all children 3, 

13 4, and 5 years old have access to school readiness 

14 programs and quality child care. 

15 (5) Research shows that investing in quality 

16 prekindergarten programs will provide savings in the 

17 form of reduced need for remedial education, de18 creased crime rates, lower school dropout rates, and 

19 decreased welfare dependence. 

20 (b) PURPOSE.—The purpose of this subtitle is to en21 sure that all children 3, 4, and 5 years old have access 

22 to a high-quality full-day, full-calendar-year prekinder23 garten program by providing grants to States to assist in 

24 developing a universal prekindergarten program that is 

25 voluntary and free-of-charge. 
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1 SEC. 303. PREKINDERGARTEN GRANT PROGRAM AUTHOR2 IZATION. 

3 The Secretary of Health and Human Services, in con4 sultation with the Secretary of Education, shall provide 

5 grants to an agency designated by each State (hereafter 

6 in this subtitle referred to as the ‘‘designated State agen7 cy’’) for the development of high-quality full-day, full-cal8 endar-year universal prekindergarten programs for all 

9 children 3, 4, and 5 years old in the State. 

10 SEC. 304. STATE REQUIREMENTS. 

11 (a) STATE MATCHING FUNDS.—Federal funds made 

12 available to a designated State agency under this subtitle 

13 shall be matched at least 20 percent by State funds. 

14 (b) STATE APPLICATION.—To be eligible to receive 

15 funds under this subtitle, a designated State agency shall 

16 submit an application at such time, in such manner, and 

17 containing such information as the Secretary of Health 

18 and Human Services may require. The application shall 

19 include the following: 

20 (1) How the designated State agency, in over21 seeing the State’s universal prekindergarten pro22 gram, will coordinate with other State agencies re23 sponsible for early childhood education and health 

24 programs. 
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1 (2) A State plan to establish and implement a 

2 statewide universal prekindergarten program, in ac3 cordance with subsection (c). 

4 (c) STATE PLAN.—The State plan required under 

5 subsection (b)(2) shall include each of the following: 

6 (1) A description of the universal prekinder7 garten program that will be established and how it 

8 will support children’s cognitive, social, emotional, 

9 and physical development. 

10 (2) A statement of the goals for universal pre11 kindergarten programs and how program outcomes 

12 will be measured. 

13 (3) A description of— 

14 (A) how funding will be distributed to eli15 gible prekindergarten program providers based 

16 on the need for early childhood education in 

17 each geographical area served by such pro18 viders; and 

19 (B) how the designated State agency will 

20 involve representatives of early childhood pro21 gram providers (including child care providers, 

22 Head Start programs, and State and local 

23 agencies) that sponsor programs addressing 

24 children 3, 4, and 5 years old. 
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1 (4) A description of how the designated State 

2 agency will coordinate with existing State-funded 

3 prekindergarten programs, federally funded pro4 grams (such as Head Start programs), public school 

5 programs, and child care providers. 

6 (5) A description of how an eligible prekinder7 garten program provider may apply to the des8 ignated State agency for funding under this Act. 

9 (6) A plan to address the shortages of qualified 

10 early childhood education teachers, including how to 

11 increase such teachers’ compensation to be com12 parable to that of public school teachers. 

13 (7) How the designated State agency will pro14 vide ongoing professional development opportunities 

15 to help increase the number of teachers in early 

16 childhood programs who meet the State’s education 

17 or credential requirements for prekindergarten 

18 teachers. 

19 (8) A plan to address how the universal pre20 kindergarten program will meet the needs of chil21 dren with disabilities, limited English proficiency, 

22 and other special needs. 

23 (9) A plan to provide transportation to children 

24 to and from the universal prekindergarten program. 
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1 (10) A description of how the State will provide 

2 the 20 percent match of Federal funds. 

3 (d) ADMINISTRATION.—A designated State agency 

4 may not use more than 5 percent of a grant under this 

5 subtitle for costs associated with State administration of 

6 the program under this subtitle. 

7 SEC. 305. LOCAL REQUIREMENTS. 

8 (a) IN GENERAL.—An eligible prekindergarten pro9 gram provider receiving funding under this subtitle 

10 shall— 

11 (1) maintain a maximum class size of 20 chil12 dren; 

13 (2) maintain a ratio of not more than 10 chil14 dren for each member of the teaching staff; 

15 (3)(A) ensure that all prekindergarten teachers 

16 meet the requirements for teachers at a State-fund17 ed prekindergarten program under an applicable 

18 State law; and 

19 (B) document that the State is demonstrating 

20 significant progress in assisting prekindergarten 

21 teachers on working toward a bachelor of arts de22 gree with training in early childhood development or 

23 early childhood education; 
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1 (4)(A) be accredited by a national organization 

2 with demonstrated experience in accrediting pre3 kindergarten programs; or 

4 (B) provide assurances that it shall obtain such 

5 accreditation not later than 3 years after first re6 ceiving funding under this subtitle; and 

7 (5) meet applicable State and local child care li8 censing health and safety standards. 

9 (b) LOCAL APPLICATION.—Eligible prekindergarten 

10 program providers desiring to receive funding under this 

11 subtitle shall submit an application to the designated 

12 State agency overseeing funds under this subtitle con13 taining the following: 

14 (1) A description of the prekindergarten pro15 gram. 

16 (2) A statement of the demonstrated need for 

17 a program, or an enhanced or expanded program, in 

18 the area served by the eligible prekindergarten pro19 gram provider. 

20 (3) A description of the age-appropriate and de21 velopmentally appropriate educational curriculum to 

22 be provided that will help children be ready for 

23 school and assist them in the transition to kinder24 garten. 
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1 (4) A description of how the eligible prekinder2 garten program provider will collaborate with exist3 ing community-based child care providers and Head 

4 Start programs. 

5 (5) A description of how students and families 

6 will be assisted in obtaining supportive services 

7 available in their communities. 

8 (6) A plan to promote parental involvement in 

9 the prekindergarten program. 

10 (7) A description of how teachers will receive 

11 ongoing professional development in early childhood 

12 development and education. 

13 (8) An assurance that prekindergarten pro14 grams receiving funds under this subtitle provide the 

15 data required in section 7(c). 

16 SEC. 306. PROFESSIONAL DEVELOPMENT SET-ASIDE. 

17 (a) IN GENERAL.—A designated State agency may 

18 set aside up to 5 percent of a grant under this subtitle 

19 for ongoing professional development activities for teach20 ers and staff at prekindergarten programs that wish to 

21 participate in the universal prekindergarten grant pro22 gram under this subtitle. A designated State agency using 

23 the set-aside for professional development must include in 

24 its application the following: 
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1 (1) A description of how the designated State 

2 agency will ensure that eligible prekindergarten pro3 gram providers in a range of settings (including 

4 child care providers, Head Start programs, and 

5 schools) will participate in the professional develop6 ment programs. 

7 (2) An assurance that, in developing its applica8 tion and in carrying out its program, the profes9 sional development provider has consulted, and will 

10 consult, with relevant agencies, early childhood orga11 nizations, early childhood education experts, and 

12 early childhood program providers. 

13 (3) A description of how the designated State 

14 agency will ensure that the professional development 

15 is ongoing and accessible to educators in all geo16 graphic areas of the State, including by the use of 

17 advanced educational technologies. 

18 (4) A description of how the designated State 

19 agency will ensure that such set-aside funds will be 

20 used to pay the cost of additional education and 

21 training. 

22 (5) A description of how the designated State 

23 agency will work with other agencies and institutions 

24 of higher education to provide scholarships and 

25 other financial assistance to prekindergarten staff. 
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1 (6) A description of how the State educational 

2 agency will provide a financial incentive, such as a 

3 financial stipend or a bonus, to educators who par4 ticipate in and complete such professional develop5 ment. 

6 (7) A description of how the professional devel7 opment activities will be carried out, including the 

8 following: 

9 (A) How programs and educators will be 

10 selected to participate. 

11 (B) How professional development pro12 viders will be selected, based on demonstrated 

13 experience in providing research-based profes14 sional development to early childhood educators. 

15 (C) The types of research-based profes16 sional development activities that will be carried 

17 out in all domains of children’s physical, cog18 nitive, social, and emotional development and 

19 on early childhood pedagogy. 

20 (D) How the program will train early 

21 childhood educators to meet the diverse edu22 cational needs of children in the community, es23 pecially children who have limited English pro24 ficiency, disabilities, and other special needs. 
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1 (E) How the program will coordinate with 

2 and build upon, but not supplant or duplicate, 

3 early childhood education professional develop4 ment activities that exist in the community. 

5 (b) USES OF FUNDS.—Funds set aside under this 

6 section may be used for ongoing professional develop7 ment— 

8 (1) to provide prekindergarten teachers and 

9 staff with the knowledge and skills for the applica10 tion of recent research on child cognitive, social, 

11 emotional, and physical development, including lan12 guage and literacy development, and on early child13 hood pedagogy; 

14 (2) to provide the cost of education needed to 

15 obtain a credential or degree with specific training 

16 in early childhood development or education; 

17 (3) to work with children who have limited 

18 English proficiency, disabilities, and other special 

19 needs; and 

20 (4) to select and use developmentally appro21 priate screening and diagnostic assessments to im22 prove teaching and learning and make appropriate 

23 referrals for services to support prekindergarten 

24 children’s development and learning. 
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1 SEC. 307. REPORTING. 

2 (a) REPORT BY SECRETARY.—For each year in which 

3 funding is provided under this subtitle, the Secretary of 

4 Health and Human Services shall submit an annual report 

5 to the Congress on the implementation and effectiveness 

6 of the universal prekindergarten program under this sub7 title. 

8 (b) REPORT BY DESIGNATED STATE AGENCY.—Each 

9 designated State agency that provides grants to eligible 

10 prekindergarten program providers under this subtitle 

11 shall submit to the Secretary an annual report on the im12 plementation and effectiveness of the programs in the 

13 State supported under this subtitle. Such report shall con14 tain such additional information as the Secretary may rea15 sonably require. 

16 (c) REPORT BY GRANT RECIPIENT.—Each eligible 

17 prekindergarten program provider that receives a grant 

18 under this subtitle shall submit to the designated State 

19 agency an annual report that includes, with respect to the 

20 program supported by such grant, the following: 

21 (1) A description of the type of program and a 

22 statement of the number and ages of children served 

23 by the program, as well as the number and ages of 

24 children with a disability or a native language other 

25 than English. 
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1 (2) A description of the qualifications of the 

2 program staff and the type of ongoing professional 

3 development provided to such staff. 

4 (3) A statement of all sources of Federal, State, 

5 local, and private funds received by the program. 

6 (4) A description of the curricula, materials, 

7 and activities used by the program to support early 

8 childhood development and learning. 

9 (5) Such other information as the designated 

10 State agency may reasonably require. 

11 SEC. 308. FEDERAL FUNDS SUPPLEMENTARY. 

12 Funds made available under this subtitle may not be 

13 used to supplant other Federal, State, local, or private 

14 funds that would, in the absence of such Federal funds, 

15 be made available for the program assisted under this sub16 title. 

17 SEC. 309. DEFINITIONS. 

18 In this subtitle: 

19 (1) The term ‘‘eligible prekindergarten program 

20 provider’’ means a prekindergarten program pro21 vider that is— 

22 (A) a school; 

23 (B) supported, sponsored, supervised, or 

24 carried out by a local educational agency; 

25 (C) a Head Start program; or 
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1 (D) a child care provider. 

2 (2) The term ‘‘prekindergarten program’’ 

3 means a program serving children 3, 4, and 5 years 

4 old that supports children’s cognitive, social, emo5 tional, and physical development and helps prepare 

6 those children for the transition to kindergarten. 

7 (3) The term ‘‘local educational agency’’ has 

8 the meaning given that term in the Elementary and 

9 Secondary Education Act of 1965 (20 U.S.C. 6301 

10 et seq.). 

11 (4) The term ‘‘prekindergarten teacher’’ means 

12 an individual who has received, or is working to13 ward, a bachelor of arts degree in early childhood 

14 education. 

15 SEC. 310. AUTHORIZATION OF APPROPRIATIONS. 

16 There are authorized to be appropriated to carry out 

17 this subtitle— 

18 (1) $10,000,000,000 for fiscal year 2006; 

19 (2) $20,000,000,000 for fiscal year 2007; 

20 (3) $30,000,000,000 for fiscal year 2008; 

21 (4) $40,000,000,000 for fiscal year 2009; and 

22 (5) $50,000,000,000 for fiscal year 2010. 
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1 Subtitle B—Universal Free School 

2 Breakfast Program 

3 SEC. 311. UNIVERSAL FREE SCHOOL BREAKFAST PRO4 GRAM. 

5 (a) FREE BREAKFAST AND UNIVERSAL ELIGI6 BILITY.—Section 4 of the Child Nutrition Act of 1966 (42 

7 U.S.C. 1773) is amended to read as follows: 

8 ‘‘SEC. 4. SCHOOL BREAKFAST PROGRAM AUTHORIZATION. 

9 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated such sums as are nec11 essary to enable the Secretary to carry out a program to 

12 assist States and the Department of Defense to initiate, 

13 maintain, or expand nonprofit breakfast programs to pro14 vide free breakfasts to school children without regard to 

15 family income in all schools which make application for 

16 participation and agree to carry out a nonprofit free 

17 breakfast program in accordance with this Act. Appropria18 tions and expenditures for this Act shall be considered 

19 Health and Human Services functions for budget purposes 

20 rather than functions of Agriculture. 

21 ‘‘(b) APPORTIONMENT TO STATES.— 

22 ‘‘(1)(A) IN GENERAL.—The Secretary shall 

23 make breakfast payments to each State educational 

24 agency each fiscal year, at such times as the Sec25 retary may determine, from the sums appropriated 
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1 for such purpose, in an amount equal to the product 

2 obtained by multiplying— 

3 ‘‘(i) the number of breakfasts served free 

4 during such fiscal year to children in schools in 

5 such States which participate in the school 

6 breakfast program under agreements with such 

7 State educational agency; by 

8 ‘‘(ii) the national breakfast payment as 

9 prescribed in paragraph (2) of this subsection. 

10 ‘‘(B) AGREEMENTS.—The agreements described 

11 in subparagraph (A)(i) shall be permanent agree12 ments that may be amended as necessary. Nothing 

13 in the preceding sentence shall be construed to limit 

14 the ability of the State educational agency to sus15 pend or terminate any such agreement in accordance 

16 with regulations prescribed by the Secretary. 

17 ‘‘(2) NATIONAL BREAKFAST PAYMENT.—The 

18 national payment for each breakfast shall be $1.40 

19 (as adjusted each July 1 pursuant to section 

20 11(a)(3)(B) of the Richard B. Russell National 

21 School Lunch Act (42 U.S.C. 1759a(a)(3)(B)). 

22 ‘‘(3) LIMITATION.—No breakfast payment may 

23 be made under this subsection for any breakfast 

24 served by a school unless such breakfast consists of 

25 a combination of foods which meet the minimum nu-
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1 tritional requirements prescribed by the Secretary 

2 under subsection (e) of this section. 

3 ‘‘(4) NUTRITION QUALITY ADJUSTMENT.—The 

4 Secretary shall increase by 6 cents the annually ad5 justed payment for each breakfast served under this 

6 Act and section 17 of the Richard B. Russell Na7 tional School Lunch Act. These funds shall be used 

8 to assist States, to the extent feasible, in improving 

9 the nutritional quality of the breakfasts. 

10 ‘‘(5) AGRICULTURAL COMMODITIES.—Notwith11 standing any other provision of law, whenever stocks 

12 of agricultural commodities are acquired by the Sec13 retary or the Commodity Credit Corporation and are 

14 not likely to be sold by the Secretary or the Com15 modity Credit Corporation or otherwise used in pro16 grams of commodity sale or distribution, the Sec17 retary shall make such commodities available to 

18 school food authorities and eligible institutions serv19 ing breakfasts under this Act in a quantity equal in 

20 value to not less than 3 cents for each breakfast 

21 served under this Act. 

22 ‘‘(6) EFFECT ON EXPENDITURES.—Expendi23 tures of funds from State and local sources for the 

24 maintenance of the breakfast program shall not be 
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1 diminished as a result of funds or commodities re2 ceived under paragraph (4) or (5). 

3 ‘‘(c) STATE DISBURSEMENT TO SCHOOLS.—Funds 

4 paid to any State during any fiscal year for the purpose 

5 of this section shall be disbursed by the State educational 

6 agency, in accordance with such agreements approved by 

7 the Secretary as may be entered into by such State agency 

8 and the schools in the State, to those schools in the State 

9 which the State educational agency, determines are eligi10 ble to participate in the school breakfast program. 

11 ‘‘(d) PARTICIPATION BY SCHOOLS.— 

12 ‘‘(1) REQUIREMENTS FOR PARTICIPATION.—To 

13 be eligible to participate in the school breakfast pro14 gram under this section, a school food authority 

15 shall— 

16 ‘‘(A) agree to serve all breakfasts at no 

17 charge to all students who wish to participate 

18 without regard to family income in all partici19 pating schools; and 

20 ‘‘(B) meet all other requirements that the 

21 Secretary may reasonably establish. 

22 ‘‘(2) START-UP ASSISTANCE.—The Secretary is 

23 authorized to provide additional assistance to schools 

24 not participating in the school breakfast program 

25 prior to the enactment of the Family and Workplace 
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1 Balancing Act of 2005 in order to assist such 

2 schools to begin participation in the school breakfast 

3 program under this section. 

4 ‘‘(3) STATE EDUCATIONAL AGENCY ASSIST5 ANCE.—Each State educational agency shall assist 

6 schools not participating in the school breakfast pro7 gram prior to the enactment of the Family and 

8 Workplace Balancing Act of 2005 to enter into 

9 agreements with such agencies in order to partici10 pate in the school breakfast program under this sec11 tion. 

12 ‘‘(e) NUTRITIONAL AND OTHER PROGRAM REQUIRE13 MENTS.— 

14 ‘‘(1) MINIMUM NUTRITIONAL REQUIRE15 MENTS.—Breakfasts served by schools participating 

16 in the school breakfast program under this section 

17 shall consist of a combination of foods and shall 

18 meet minimum nutritional requirements prescribed 

19 by the Secretary on the basis of tested nutritional 

20 research, except that the minimum nutritional re21 quirements shall be measured by not less than the 

22 weekly average of the nutrient content of school 

23 breakfasts. 

24 ‘‘(2) TECHNICAL ASSISTANCE AND TRAINING.— 

25 The Secretary shall provide through State edu-
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1 cational agencies technical assistance and training, 

2 including technical assistance and training in the 

3 preparation of foods high in complex carbohydrates 

4 and lower-fat versions of foods commonly used in the 

5 school breakfast program established under this sec6 tion, to schools participating in the school breakfast 

7 program to assist the schools in complying with the 

8 nutritional requirements prescribed by the Secretary 

9 pursuant to paragraph (1) and in providing appro10 priate meals to children with medically certified spe11 cial dietary needs. 

12 ‘‘(3) OPTION VERSUS SERVE.—At the option of 

13 a local school food authority, a student in a school 

14 under the authority that participates in the school 

15 breakfast program under this Act may be allowed to 

16 refuse not more than one item of a breakfast that 

17 the student does not intend to consume. A refusal of 

18 an offered food item shall not affect the amount of 

19 payments made under this Act to a school for the 

20 breakfast.’’. 

21 (b) TECHNICAL AMENDMENTS.— 

22 (1) CHILD NUTRITION ACT OF 1966.—Section 

23 20 of the Child Nutrition Act of 1966 (42 U.S.C. 

24 1789) is amended by striking subsection (b) and re-
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1 designating subsections (c) through (e) as sub2 sections (b) through (d), respectively. 

3 (2) RICHARD B. RUSSELL NATIONAL SCHOOL

4 LUNCH ACT.—The Richard B. Russell National 

5 School Lunch Act is amended— 

6 (A) in section 11(a)(1)— 

7 (i) in subparagraph (C), by striking 

8 ‘‘or breakfasts’’ each place it appears; 

9 (ii) in subparagraph (C)(i)(I), by 

10 striking ‘‘or in the case of a school’’ and 

11 all that follows through ‘‘4 successive 

12 school years’’; 

13 (iii) in subparagraph (D)(iii), by strik14 ing ‘‘or for free and reduced price lunches 

15 and breakfasts’’; 

16 (iv) in subparagraph (D)(iv), by strik17 ing ‘‘or school breakfast’’; 

18 (v) in subparagraph (E)(i)(I) by strik19 ing ‘‘or in the case of a school’’ and all 

20 that follows through ‘‘4 successive school 

21 years’’; and 

22 (vi) in subparagraph (E)(i)(II)— 

23 (I) by striking ‘‘or breakfasts’’ 

24 both places it appears; and 
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1 (II) by striking ‘‘or school break2 fast’’; 

3 (B) in section 11(a)(3)(A), by striking 

4 clause (iii); 

5 (C) in section 13(a)(1)(C), by striking ‘‘or 

6 breakfasts’’; 

7 (D) in section 17— 

8 (i) in subsection (c), by striking para9 graph (2), and redesignating paragraphs 

10 (3) through (6) as paragraphs (2) through 

11 (5), respectively; and 

12 (ii) in subsection (f)(3)(E)(ii(I), by 

13 striking ‘‘meals’’ and inserting ‘‘lunches’’; 

14 and 

15 (E) in section 18, by striking subsection 

16 (e) and redesignating subsections (f) and (g) as 

17 subsections (e) and (f), respectively. 
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1 Subtitle C—Nutritional Improve2 ment for Children Served Under 

3 Child Nutrition Programs 

4 SEC. 321. NUTRITIONAL IMPROVEMENT FOR CHILDREN 

5 SERVED UNDER CHILD NUTRITION PRO6 GRAMS. 

7 (a) IN GENERAL.—Section 18 of the Richard B. Rus8 sell National School Lunch Act (42 U.S.C. 1769) is 

9 amended by adding at the end the following: 

10 ‘‘(h) HEALTHY SCHOOL NUTRITION ENVIRONMENT

11 INCENTIVE GRANTS.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall estab13 lish a program under which the Secretary shall make 

14 competitive grants to selected local educational agen15 cies— 

16 ‘‘(A) to create healthy school nutrition en17 vironments; and 

18 ‘‘(B) to assess the impact of the environ19 ments on the health and well-being of children 

20 enrolled in the schools. 

21 ‘‘(2) SELECTION OF SCHOOLS.—In selecting 

22 local educational agencies to receive incentive grants 

23 under this subsection, the Secretary shall— 

24 ‘‘(A) ensure that not less than 75 percent 

25 of the schools under the jurisdiction of the 
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1 agencies selected to participate in the program 

2 established under this subsection are schools in 

3 which not less than 50 percent of the students 

4 enrolled in each school are eligible for free or 

5 reduced price meals under this Act; 

6 ‘‘(B) ensure that, of the agencies selected 

7 to participate in the program, there is appro8 priate representation of rural, urban, and sub9 urban schools, as determined by the Secretary; 

10 ‘‘(C) ensure that, of the agencies selected 

11 to participate in the program, there is appro12 priate representation of elementary, middle, and 

13 secondary schools, as determined by the Sec14 retary; 

15 ‘‘(D) ensure that agencies selected to re16 ceive a grant under this subsection meet the re17 quirements of paragraph (3); 

18 ‘‘(E) give priority to agencies that develop 

19 comprehensive plans that include the involve20 ment of a broad range of community stake21 holders in achieving healthy school nutrition en22 vironments; 

23 ‘‘(F) give priority to agencies that develop 

24 comprehensive plans that include a strategy for 

25 maintaining healthy school nutrition environ-
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1 ments in the years following the fiscal years for 

2 which the agencies receive grants under this 

3 subsection; 

4 ‘‘(G) select only agencies that submit grant 

5 applications by May 1, 2006; and 

6 ‘‘(H) make grant awards effective not later 

7 than July 15, 2006. 

8 ‘‘(3) REQUIREMENTS.— 

9 ‘‘(A) INPUT.—Prior to the solicitation of 

10 proposals for grants under this subsection, the 

11 Secretary shall solicit input from appropriate 

12 nutrition, health, and education organizations 

13 (such as the American School Food Service As14 sociation, the American Dietetic Association, 

15 and the National School Boards Association) 

16 regarding the appropriate criteria for a healthy 

17 school environment. 

18 ‘‘(B) CRITERIA FOR HEALTHY SCHOOL EN19 VIRONMENTS.—The Secretary shall, taking into 

20 account input received under subparagraph (A), 

21 establish criteria for defining a healthy school 

22 environment, including criteria that— 

23 ‘‘(i) provide program meals that meet 

24 nutritional standards for breakfasts and 

25 lunches established by the Secretary; 
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1 ‘‘(ii) ensure that all food served (in2 cluding food served in participating schools 

3 and service institutions in competition with 

4 the programs authorized under this Act 

5 and the Child Nutrition Act of 1966 (42 

6 U.S.C. 1771 et seq.)) on school grounds 

7 during regular school hours is consistent 

8 with the nutritional standards for break9 fasts and lunches established by the Sec10 retary; 

11 ‘‘(iii) promote the consumption of 

12 fruits and vegetables; 

13 ‘‘(iv) provide nutrition education to 

14 students and staff; and 

15 ‘‘(v) meet other criteria established by 

16 the Secretary. 

17 ‘‘(C) PLANS.—To be eligible to receive a 

18 grant under this subsection, a local educational 

19 agency shall submit to the Secretary a healthy 

20 school nutrition environment plan that describes 

21 the actions the schools under the jurisdiction of 

22 such agency will take to meet the criteria estab23 lished under subparagraph (B). 
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1 ‘‘(4) GRANTS.—For each of fiscal years 2006 

2 through 2009, the Secretary shall make a grant to 

3 each agency selected under paragraph (2). 

4 ‘‘(5) EVALUATIONS.— 

5 ‘‘(A) IN GENERAL.—The Secretary, acting 

6 through the Administrator of the Food and Nu7 trition Service, shall conduct an evaluation of a 

8 representative sample of schools that receive 

9 grants under this subsection. 

10 ‘‘(B) CONTENT.—The evaluation shall 

11 measure, at a minimum, the effects of a healthy 

12 school nutrition environment on— 

13 ‘‘(i) overweight children and obesity; 

14 ‘‘(ii) dietary intake; 

15 ‘‘(iii) nutrition education and behav16 ior; 

17 ‘‘(iv) the adequacy of time to eat; 

18 ‘‘(v) physical activities; 

19 ‘‘(vi) parental and student attitudes 

20 and participation; and 

21 ‘‘(vii) related funding issues, including 

22 the cost of maintaining a healthy school 

23 nutrition environment. 

24 ‘‘(C) REPORTS.—The Secretary shall sub25 mit to the Committee on Education and the 
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1 Workforce of the House of Representatives and 

2 the Committee on Agriculture, Nutrition, and 

3 Forestry of the Senate— 

4 ‘‘(i) not later than December 31, 

5 2006, an interim report on the activities of 

6 schools evaluated under this subsection; 

7 and 

8 ‘‘(ii) not later than December 31, 

9 2008, a final report on the activities of 

10 schools evaluated under this subsection. 

11 ‘‘(6) FUNDING.— 

12 ‘‘(A) IN GENERAL.—Out of any funds in 

13 the Treasury not otherwise appropriated, the 

14 Secretary of the Treasury shall transfer to the 

15 Secretary of Agriculture to carry out this sub16 section— 

17 ‘‘(i) on October 1, 2005, $10,000,000; 

18 and 

19 ‘‘(ii) on October 1, 2006, and each 

20 October 1 thereafter through October 1, 

21 2009, $35,000,000. 

22 ‘‘(B) RECEIPT AND ACCEPTANCE.—The 

23 Secretary shall be entitled to receive, shall ac24 cept, and shall use to carry out this section the 
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1 funds transferred under subparagraph (A), 

2 without further appropriation. 

3 ‘‘(C) AVAILABILITY OF FUNDS.—Funds 

4 transferred under subparagraph (A) shall re5 main available until expended. 

6 ‘‘(D) EVALUATIONS.—Of the funds made 

7 available under this paragraph, the Secretary 

8 shall use not more than $5,000,000 to conduct 

9 evaluations under paragraph (5).’’. 

10 (b) COMPETITIVE FOODS IN SCHOOLS.— 

11 (1) IN GENERAL.—Section 10 of the Child Nu12 trition Act of 1966 (42 U.S.C. 1779) is amended— 

13 (A) in subsection (a), by striking ‘‘, includ14 ing’’ and all that follows through ‘‘Lunch Act’’; 

15 and 

16 (B) by striking subsection (b) and insert17 ing the following: 

18 ‘‘(b) COMPETITIVE FOODS IN SCHOOLS.— 

19 ‘‘(1) IN GENERAL.—The regulations under sub20 section (a) may include provisions that regulate the 

21 service of food in participating schools and service 

22 institutions in competition with the programs au23 thorized under this Act and the Richard B. Russell 

24 National School Lunch Act (42 U.S.C. 1751 et seq.) 
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1 (referred to in this subsection as ‘competitive 

2 foods’). 

3 ‘‘(2) REGULATIONS.—The regulations promul4 gated under paragraph (1)— 

5 ‘‘(A) shall apply to all school grounds dur6 ing the duration of the school day; 

7 ‘‘(B) shall not supersede or otherwise af8 fect State and local regulations on competitive 

9 foods that, as determined by the Secretary, con10 form to the nutritional goals of the regulations 

11 promulgated by the Secretary; 

12 ‘‘(C) shall require that the proceeds from 

13 the sale of competitive foods in schools be used 

14 for the benefit of the schools or of organizations 

15 of students approved by the schools, if those 

16 sales are allowed by the regulations; 

17 ‘‘(D) shall take into account the differing 

18 needs of— 

19 ‘‘(i) elementary schools; 

20 ‘‘(ii) middle schools and junior high 

21 schools; and 

22 ‘‘(iii) high schools; and 

23 ‘‘(E) shall implement the recommendations 

24 of the Institute of Medicine made under para25 graph (3). 
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1 ‘‘(3) INSTITUTE OF MEDICINE RECOMMENDA2 TIONS.— 

3 ‘‘(A) IN GENERAL.—The Secretary of Ag4 riculture shall offer to enter into an agreement 

5 with the Institute of Medicine of the National 

6 Academy of Sciences under which the Institute 

7 of Medicine, based on sound nutritional science, 

8 shall make recommendations to the Secretary 

9 regarding the regulation of competitive foods 

10 (as defined in section 10(b)(1) of the Child Nu11 trition Act of 1966 (as amended by paragraph 

12 (1)(B))). 

13 ‘‘(B) REGULATIONS.—Not later than 1 

14 year after the date of receipt of final rec15 ommendations from the Institute of Medicine, 

16 the Secretary shall promulgate regulations to 

17 carry out section 10(b) of the Child Nutrition 

18 Act of 1966 (as amended by paragraph (1)(B)) 

19 in accordance with the recommendations of the 

20 Institute of Medicine. 

21 ‘‘(C) REPORT.—Not later than 1 year 

22 after the date of receipt of final recommenda23 tions from the Institute of Medicine, the Sec24 retary shall submit to the Committee on Edu25 cation and the Workforce of the House of Rep-
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1 resentatives and the Committee on Agriculture, 

2 Nutrition, and Forestry of the Senate a report 

3 that describes the actions of the Secretary 

4 under subparagraph (B).’’. 

5 Subtitle D—Child and Adult Care 

6 Food Program 

7 SEC. 331. REIMBURSEMENTS FOR AFTERSCHOOL DINNERS. 

8 Section 17(r) of the Richard B. Russell National 

9 School Lunch Act (42 U.S.C. 1766(r)) is amended by 

10 striking paragraph (5). 

11 Subtitle E—Afterschool Education 

12 Enhancement Act 

13 SEC. 341. SHORT TITLE. 

14 This subtitle may be cited as the ‘‘Afterschool Edu15 cation Enhancement Act’’. 

16 SEC. 342. AMENDMENTS REGARDING 21ST CENTURY COM17 MUNITY LEARNING CENTERS. 

18 Part B of title IV of the Elementary and Secondary 

19 Education Act of 1965 (20 U.S.C. 7171 et seq.) is amend20 ed— 

21 (1) in subsection (a) of section 4203— 

22 (A) by striking paragraph (3); and 

23 (B) by redesignating paragraphs (4) 

24 through (14) as paragraphs (3) through (13), 

25 respectively; and 
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1 (2) in section 4204— 

2 (A) in paragraph (2) of subsection (b)— 

3 (i) by striking subparagraph (F); and 

4 (ii) by redesignating subparagraphs 

5 (G) through (N) as subparagraphs (F) 

6 through (M), respectively; and 

7 (B) by amending paragraph (1) of sub8 section (i) to read as follows: 

9 ‘‘(1) IN GENERAL.—In awarding grants under 

10 this part, a State educational agency shall give pri11 ority to applications submitted jointly by eligible en12 tities consisting of not less than— 

13 ‘‘(A) 1 local educational agency receiving 

14 funds under part A of title I; and 

15 ‘‘(B) 1 community-based organization or 

16 other public or private entity.’’. 

17 TITLE IV—IMPROVING THE 

18 WORKPLACE FOR FAMILIES 

19 Subtitle A—Part-Time and 

20 Temporary Workers Benefits 

21 SEC. 401. TREATMENT OF EMPLOYEES WORKING AT LESS 

22 THAN FULL-TIME UNDER PARTICIPATION, 

23 VESTING, AND ACCRUAL RULES GOVERNING 

24 PENSION PLANS. 

25 (a) PARTICIPATION RULES.— 
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1 (1) IN GENERAL.—Section 202(a)(3) of the 

2 Employee Retirement Income Security Act of 1974 

3 (29 U.S.C. 1052(a)(3)) is amended by adding at the 

4 end the following new subparagraph: 

5 ‘‘(E)(i) For purposes of this paragraph, in the case 

6 of any employee who, as of the beginning of the 12-month 

7 period referred to in subparagraph (A)— 

8 ‘‘(I) has customarily completed 500 or 

9 more hours of service per year but less than 

10 1,000 hours of service per year, or 

11 ‘‘(II) is employed in a type of position in 

12 which employment customarily constitutes 500 

13 or more hours of service per year but less than 

14 1,000 hours of service per year, 

15 completion of 500 hours of service within such 12- 

16 month period shall be treated as completion of 1,000 

17 hours of service. 

18 ‘‘(ii) For purposes of this subparagraph, the extent 

19 to which employment in any type of position customarily 

20 constitutes less than 1,000 hours of service per year shall 

21 be determined with respect to each pension plan in accord22 ance with such regulations as the Secretary may prescribe 

23 providing for consideration of facts and circumstances pe24 culiar to the work-force constituting the participants in 

25 such plan.’’. 
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1 (2) CONFORMING AMENDMENT.—Section 

2 204(b)(1)(E) of such Act (29 U.S.C. 1054(b)(1)(E)) 

3 is amended by striking ‘‘section 202(a)(3)(A)’’ and 

4 inserting ‘‘subparagraphs (A) and (E) of section 

5 202(a)(3)’’. 

6 (b) VESTING RULES.— 

7 (1) IN GENERAL.—Section 203(b)(2) of such 

8 Act (29 U.S.C. 1053(b)(2)) is amended by adding at 

9 the end the following new subparagraph: 

10 ‘‘(E)(i) For purposes of this paragraph, in the case 

11 of any employee who, as of the beginning of the period 

12 designated by the plan pursuant to subparagraph (A)— 

13 ‘‘(I) has customarily completed 500 or 

14 more hours of service per year but less than 

15 1,000 hours of service per year, or 

16 ‘‘(II) is employed in a type of position in 

17 which employment customarily constitutes 500 

18 or more hours of service per year but less than 

19 1,000 hours of service per year, 

20 completion of 500 hours of service within such pe21 riod shall be treated as completion of 1,000 hours of 

22 service. 

23 ‘‘(ii) For purposes of this subparagraph, the extent 

24 to which employment in any type of position customarily 

25 constitutes less than 1,000 hours of service per year shall 
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1 be determined with respect to each pension plan in accord2 ance with such regulations as the Secretary may prescribe 

3 providing for consideration of facts and circumstances pe4 culiar to the work-force constituting the participants in 

5 such plan.’’. 

6 (2) 1-YEAR BREAKS IN SERVICE.—Section 

7 203(b)(3) of such Act (29 U.S.C. 1053(b)(3)) is 

8 amended by adding at the end the following new 

9 subparagraph: 

10 ‘‘(F)(i) For purposes of this paragraph, in the case 

11 of any employee who, as of the beginning of the period 

12 designated by the plan pursuant to subparagraph (A)— 

13 ‘‘(I) has customarily completed 500 or more 

14 hours of service per year but less than 1,000 hours 

15 of service per year, or 

16 ‘‘(II) is employed in a type of position in which 

17 employment customarily constitutes 500 or more 

18 hours of service per year but less than 1,000 hours 

19 of service per year, 

20 completion of 250 hours of service within such period shall 

21 be treated as completion of 500 hours of service. 

22 ‘‘(ii) For purposes of this subparagraph, the extent 

23 to which employment in any type of position customarily 

24 constitutes less than 1,000 hours of service per year shall 

25 be determined with respect to each pension plan in accord-
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1 ance with such regulations as the Secretary may prescribe 

2 providing for consideration of facts and circumstances pe3 culiar to the work-force constituting the participants in 

4 such plan.’’. 

5 (c) ACCRUAL RULES.—Section 204(b)(4)(C) of such 

6 Act (29 U.S.C. 1054(b)(4)(C)) is amended— 

7 (1) by inserting ‘‘(i)’’ after ‘‘(C)’’; and 

8 (2) by adding at the end the following new 

9 clauses: 

10 ‘‘(ii) For purposes of this subparagraph, in the case 

11 of any employee who, as of the beginning of the period 

12 designated by the plan pursuant to clause (i)— 

13 ‘‘(I) has customarily completed 500 or more 

14 hours of service per year but less than 1,000 hours 

15 of service per year, or 

16 ‘‘(II) is employed in a type of position in which 

17 employment customarily constitutes 500 or more 

18 hours of service per year but less than 1,000 hours 

19 of service per year, 

20 completion of 500 hours of service within such period shall 

21 be treated as completion of 1,000 hours of service. 

22 ‘‘(iii) For purposes of clause (ii), the extent to which 

23 employment in any type of position customarily constitutes 

24 less than 1,000 hours of service per year shall be deter25 mined with respect to each pension plan in accordance 
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1 with such regulations as the Secretary may prescribe pro2 viding for consideration of facts and circumstances pecu3 liar to the work-force constituting the participants in such 

4 plan.’’. 

5 SEC. 402. TREATMENT OF EMPLOYEES WORKING AT LESS 

6 THAN FULL-TIME UNDER GROUP HEALTH 

7 PLANS. 

8 (a) IN GENERAL.—Part 2 of subtitle B of title I of 

9 the Employee Retirement Income Security Act of 1974 is 

10 amended— 

11 (1) by redesignating section 211 (29 U.S.C. 

12 1061) as section 212; and 

13 (2) by inserting after section 210 (29 U.S.C. 

14 1060) the following new section: 

15 ‘‘SEC. 211. TREATMENT OF PART-TIME WORKERS UNDER 

16 GROUP HEALTH PLANS. 

17 ‘‘(a) IN GENERAL.—A reduction in the employer-pro18 vided premium under a group health plan with respect to 

19 any employee for any period of coverage solely because the 

20 employee’s customary employment is less than full-time 

21 may be provided under such plan only if the employee is 

22 described in subsection (b) and only to the extent per23 mitted under subsection (c). 

24 ‘‘(b) REDUCTIONS APPLICABLE TO EMPLOYEES

25 WORKING LESS THAN FULL-TIME.— 
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1 ‘‘(1) IN GENERAL.—An employee is described in 

2 this subsection if such employee, as of the beginning 

3 of the period of coverage referred to in subsection 

4 (a)— 

5 ‘‘(A) has customarily completed less than 

6 30 hours of service per week, or 

7 ‘‘(B) is employed in a type of position in 

8 which employment customarily constitutes less 

9 than 30 hours of service per week. 

10 ‘‘(2) REGULATIONS.—For purposes of para11 graph (1), whether employment in any type of posi12 tion customarily constitutes less than 30 hours of 

13 service per week shall be determined with respect to 

14 each group health plan in accordance with such reg15 ulations as the Secretary may prescribe providing 

16 for consideration of facts and circumstances peculiar 

17 to the work-force constituting the participants in 

18 such plan. 

19 ‘‘(c) AMOUNT OF PERMISSIBLE REDUCTION.—The 

20 employer-provided premium under a group health plan 

21 with respect to any employee for any period of coverage, 

22 after the reduction permitted under subsection (a), shall 

23 not be less than a ratable portion of the employer-provided 

24 premium which would be provided under such plan for 
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1 such period of coverage with respect to an employee who 

2 completes 30 hours of service per week. 

3 ‘‘(d) DEFINITIONS.—For purposes of this section— 

4 ‘‘(1) GROUP HEALTH PLAN.—The term ‘group 

5 health plan’ has the meaning provided such term in 

6 section 607(1). 

7 ‘‘(2) EMPLOYER-PROVIDED PREMIUM.— 

8 ‘‘(A) IN GENERAL.—The term ‘employer9 provided premium’ under a plan for any period 

10 of coverage means the portion of the applicable 

11 premium under the plan for such period of cov12 erage which is attributable under the plan to 

13 employer contributions. 

14 ‘‘(B) APPLICABLE PREMIUM.—For pur15 poses of subparagraph (A), in determining the 

16 applicable premium of a group health plan, 

17 principles similar to the principles applicable 

18 under section 604 shall apply.’’. 

19 (b) CONFORMING AMENDMENTS.— 

20 (1) Section 201(1) of such Act (29 U.S.C. 

21 1051(1)) is amended by inserting ‘‘, except with re22 spect to section 211’’ before the semicolon. 

23 (2) The table of contents in section 1 of such 

24 Act is amended by striking the item relating to sec25 tion 211 and inserting the following new items: 
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‘‘211. Treatment of part-time workers under group health plans. 

‘‘212. Effective date.’’. 

1 SEC. 403. EXPANSION OF DEFINITION OF EMPLOYEE TO IN2 CLUDE CERTAIN INDIVIDUALS WHOSE SERV3 ICES ARE LEASED OR CONTRACTED FOR. 

4 Paragraph (6) of section 3 of the Employee Retire5 ment Income Security Act of 1974 (29 U.S.C. 1002(6)) 

6 is amended— 

7 (1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and 

8 (2) by adding at the end the following new sub9 paragraph: 

10 ‘‘(B) Such term includes, with respect to any em11 ployer, any person who is not an employee (within the 

12 meaning of subparagraph (A)) of such employer and who 

13 provides services to such employer, if— 

14 ‘‘(i) such person has (pursuant to an agreement 

15 with such employer or any other person) performed 

16 such services for such employer (or for such em17 ployer and related persons (within the meaning of 

18 section 144(a)(3) of the Internal Revenue Code of 

19 1986)) for a period of at least 1 year (6 months in 

20 the case of core health benefits) at the rate of at 

21 least 500 hours of service per year, and 

22 ‘‘(ii) such services are of a type historically per23 formed, in the business field of the employer, by em24 ployees (within the meaning of subparagraph (A)).’’. 
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1 SEC. 404. EFFECTIVE DATES. 

2 (a) IN GENERAL.—Except as provided in subsection 

3 (b), the amendments made by this subtitle shall apply with 

4 respect to plan years beginning on or after January 1, 

5 2005. 

6 (b) SPECIAL RULE FOR COLLECTIVELY BARGAINED

7 PLANS.—In the case of a plan maintained pursuant to 1 

8 or more collective bargaining agreements between em9 ployee representatives and 1 or more employers ratified 

10 on or before the date of the enactment of this Act, sub11 section (a) shall be applied to benefits pursuant to, and 

12 individuals covered by, any such agreement by substituting 

13 for ‘‘January 1, 2005’’ the date of the commencement of 

14 the first plan year beginning on or after the earlier of— 

15 (1) the later of— 

16 (A) January 1, 2005, or 

17 (B) the date on which the last of such col18 lective bargaining agreements terminates (de19 termined without regard to any extension there20 of after the date of the enactment of this Act), 

21 or 

22 (2) January 1, 2007. 

23 (c) PLAN AMENDMENTS.—If any amendment made 

24 by this subtitle requires an amendment to any plan, such 

25 plan amendment shall not be required to be made before 
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1 the first plan year beginning on or after January 1, 2005, 

2 if— 

3 (1) during the period after such amendment 

4 made by this Act takes effect and before such first 

5 plan year, the plan is operated in accordance with 

6 the requirements of such amendment made by this 

7 subtitle, and 

8 (2) such plan amendment applies retroactively 

9 to the period after such amendment made by this 

10 subtitle takes effect and such first plan year. 

11 A plan shall not be treated as failing to provide definitely 

12 determinable benefits or contributions, or to be operated 

13 in accordance with the provisions of the plan, merely be14 cause it operates in accordance with this subsection. 

15 Subtitle B—United States Business 

16 Telework Act 

17 SEC. 411. SHORT TITLE. 

18 This subtitle may be cited as the ‘‘United States 

19 Business Telework Act’’. 

20 SEC. 412. TELEWORK PILOT PROGRAM. 

21 (a) PROGRAM.—In accordance with this subtitle, the 

22 Secretary of Labor shall conduct, in not more than 5 

23 States, a pilot program to raise awareness about telework 

24 among employers and to encourage such employers to 

25 offer telework options to employees. 
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1 (b) PERMISSIBLE ACTIVITIES.—In carrying out the 

2 pilot program, the Secretary is encouraged to— 

3 (1) produce educational materials and conduct 

4 presentations designed to raise awareness of the 

5 benefits and the ease of telework; 

6 (2) conduct outreach to businesses that are con7 sidering offering telework options; 

8 (3) acquire telework technologies and equip9 ment to be used for demonstration purposes; and 

10 (4) ensure that expectant and new mothers who 

11 are employed by businesses that participate in the 

12 pilot program are given the option to telework dur13 ing the 1-year period after the date of birth. 

14 SEC. 413. REPORT TO CONGRESS. 

15 Not later than 2 years after the first date on which 

16 funds are appropriated to carry out this subtitle, the Sec17 retary shall transmit to the Congress a report containing 

18 the results of an evaluation of the pilot program and any 

19 recommendations as to whether the pilot program, with 

20 or without modification, should be expanded. 

21 SEC. 414. DEFINITION. 

22 In this subtitle, the term ‘‘telework’’ means the per23 formance of any portion of work functions by an employee 

24 outside the normal place of business under circumstances 

25 which reduce or eliminate the need to commute. 
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1 SEC. 415. TERMINATION. 

2 The pilot program shall terminate 2 years after the 

3 first date on which funds are appropriated to carry out 

4 this subtitle. 

5 SEC. 416. AUTHORIZATION OF APPROPRIATIONS. 

6 There is authorized to be appropriated $5,000,000 to 

7 carry out this subtitle. 

Æ