I

107TH CONGRESS

1ST SESSION H. R. 1990

To leave no child behind.

IN THE HOUSE OF REPRESENTATIVES

MAY 24, 2001

Mr. GEORGE MILLER of California (for himself, Mr. GILMAN, Mr. SANDERS,

Mr. KILDEE, Mrs. MORELLA, Mr. SCOTT, Mrs. DAVIS of California, Mr.

STARK, Ms. NORTON, Mr. FRANK, Mrs. MINK of Hawaii, Mr. BONIOR,

Ms. BROWN of Florida, Ms. DELAURO, Mr. CUMMINGS, Mr.

LATOURETTE, Mr. KUCINICH, Mr. KENNEDY of Rhode Island, Mr.

BISHOP, Mr. HINOJOSA, Mr. JACKSON of Illinois, Mr. RODRIGUEZ, Ms.

JACKSON-LEE of Texas, Ms. SCHAKOWSKY, Mr. GUTIERREZ, and Mr.

OWENS) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy

and Commerce, Education and the Workforce, Agriculture, the Judiciary,

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

MAY 26 (legislative day, May 25), 2001

Deleted sponsors: Mr. BISHOP, Mr. GUTIERREZ, Mr. KUCINICH, Mrs. MINK

of Hawaii, Ms. NORTON, Ms. SCHAKOWSKY, Mr. BONIOR, Mr.

CUMMINGS, Mr. GILMAN, Mr. HINOJOSA, Ms. JACKSON-LEE of Texas,

Mr. LATOURETTE, Mrs. MORELLA, Mr. OWENS, and Mr. SCOTT (added

May 24, 2001; deleted May 26 (legislative day, May 25), 2001)

A BILL

To leave no child behind.

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

2 This Act may be cited as the ‘‘Leave No Child Behind

3 Act of 2001’’.

4 SEC. 2. TABLE OF CONTENTS.

5 The table of contents for this Act is as follows:

TITLE I—HEALTHY START—CHILDREN’S HEALTH INSURANCE

Subtitle A—Children’s Health Insurance

Sec. 1001. MediKids health insurance.

Sec. 1002. Benefits for all children born after 2002.

Sec. 1003. MediKids premium.

Sec. 1004. Refundable credit for cost-sharing expenses under MediKids program.

Sec. 1005. Report on long-term revenues.

Subtitle B—Children’s Health Insurance Eligibility Expansion and Enrollment

Improvements

CHAPTER 1—ELIGIBILITY EXPANSIONS

SUBCHAPTER A—MEDICAID AND SCHIP

Sec. 1101. Expansion of children’s eligibility for medicaid and SCHIP.

Sec. 1102. Optional coverage of legal immigrants under the medicaid program

and title XXI.

SUBCHAPTER B—FAMILY OPPORTUNITY ACT

Sec. 1111. Short title; amendments to Social Security Act.

Sec. 1112. Opportunity for families of disabled children to purchase medicaid

coverage for such children.

Sec. 1113. Treatment of inpatient psychiatric hospital services for individuals

under age 21 in home or community-based services waivers.

Sec. 1114. Demonstration of coverage under the medicaid program of children

with potentially severe disabilities.

Sec. 1115. Development and support of family-to-family health information centers.

Sec. 1116. Restoration of medicaid eligibility for certain SSI beneficiaries.

CHAPTER 2—ENROLLMENT IMPROVEMENTS

Sec. 1121. Application of simplified title XXI procedures under the medicaid

program.

Sec. 1122. Automatic enrollment of children born to title XXI parents.

CHAPTER 3—EFFECTIVE DATE

Sec. 1131. Effective date.

Subtitle C—Improving Access to Care

CHAPTER 1—COMMISSION
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Sec. 1201. Commission on Children’s Access to Care.

CHAPTER 2—CHILDREN’S HEALTH INSURANCE ACCOUNTABILITY

Sec. 1211. Short title.

Sec. 1212. Findings.

Sec. 1213. Amendments to the Public Health Service Act.

Sec. 1214. Amendments to the Employee Retirement Income Security Act of

1974.

Sec. 1215. Studies.

CHAPTER 3—EPSDT

Sec. 1221. Collection of data regarding the delivery of EPSDT services.

Subtitle D—Reducing Public Health Risks

CHAPTER 1—ASTHMA TREATMENTS

Sec. 1301. Findings.

Sec. 1302. Asthma, vision, and hearing screening for early Head Start and

Head Start programs.

Sec. 1303. Asthma, vision, and hearing screening and treatment for children

enrolled in public schools.

Sec. 1304. General effective date.

CHAPTER 2—INCREASE IN HUD PROGRAMS

Sec. 1311. Lead-based paint hazard control grants.

Sec. 1312. Healthy Homes Initiative program.

CHAPTER 3—YOUTH SMOKING CESSATION AND EDUCATION

Sec. 1321. Short title.

SUBCHAPTER A—PROTECTION OF CHILDREN FROM TOBACCO

PART I—FOOD AND DRUG ADMINISTRATION JURISDICTION AND GENERAL

AUTHORITY

Sec. 1331. Reference.

Sec. 1332. Statement of general authority.

Sec. 1333. Nonapplicability to other drugs or devices.

Sec. 1334. Conforming amendments to confirm jurisdiction.

Sec. 1335. General rule.

Sec. 1336. Safety and efficacy standard and recall authority.

PART II—REGULATION OF TOBACCO PRODUCTS

Sec. 1341. Performance standards.

Sec. 1342. Application of Federal Food, Drug, and Cosmetic Act to tobacco

products.

Sec. 1343. Funding.

Sec. 1344. Repeals.

SUBCHAPTER B—MISCELLANEOUS PROVISIONS

Sec. 1351. Nonapplication to tobacco producers.

Sec. 1352. Equal treatment of retail outlets.
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CHAPTER 4—COVERAGE OF CHILDHOOD IMMUNIZATIONS

Sec. 1361. Short title.

Sec. 1362. Amendments to the Employee Retirement Income Security Act of

1974.

Sec. 1363. Amendments to the Public Health Service Act.

Sec. 1364. Amendments to the Internal Revenue Code of 1986.

Sec. 1365. Effective dates.

Subtitle E—Reducing Environmental Health Risks

CHAPTER 1—ENVIRONMENTAL PROTECTION OF CHILDREN

Sec. 1401. Short title.

Sec. 1402. Environmental protection for children and other vulnerable subpopulations.

Sec. 1403. Conforming amendment.

CHAPTER 2—SCHOOL ENVIRONMENTAL PROTECTION

Sec. 1411. Short title.

Sec. 1412. Integrated pest management systems for schools.

Sec. 1413. Conforming amendment.

Sec. 1414. Effective date.

TITLE II—HEALTHY START—SUPPORT FOR HEALTHY

DEVELOPMENT

Subtitle A—Promotion of State and Local Support

Sec. 2001. State and local parenting support and education grant program.

Subtitle B—Support for Parents Caring for Children

Sec. 2101. Short title.

Sec. 2102. Findings.

Sec. 2103. Coverage of employees.

Subtitle C—Paid Family Leave

Sec. 2201. Short title.

Sec. 2202. Findings.

Sec. 2203. Purposes.

Sec. 2204. Definitions.

Sec. 2205. Demonstration projects.

Sec. 2206. Evaluations and reports.

Sec. 2207. Authorization of appropriations.

Subtitle D—Health Care for the Uninsured

Sec. 2301. Familycare coverage of parents under the medicaid program and

title XXI.

Subtitle E—Awareness of Environmental Risks to Children

Sec. 2401. Short title.

Sec. 2402. Finding.

CHAPTER 1—CHILDREN’S ENVIRONMENTAL PROTECTION
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SUBCHAPTER A—DISCLOSURE OF INDUSTRIAL RELEASES THAT PRESENT A

SIGNIFICANT RISK TO CHILDREN

Sec. 2411. Reporting requirements.

SUBCHAPTER B—DISCLOSURE OF HIGH HEALTH RISK CHEMICALS IN

CHILDREN’S CONSUMER PRODUCTS

Sec. 2421. List of toxic chemicals.

Sec. 2422. Reporting of toxic chemicals in consumer products.

Sec. 2423. Exemptions.

Sec. 2424. Private citizen enforcement.

CHAPTER 2—PUBLIC RIGHT TO KNOW ABOUT TOXIC CHEMICAL USE

Sec. 2431. Disclosure of toxic chemical use by comparable facilities.

Sec. 2432. Disclosure of toxic chemical use.

Sec. 2433. Streamlined data collection and dissemination.

Sec. 2434. Trade secret protection.

Subtitle F—Promoting Responsible Fatherhood

CHAPTER 1—BLOCK GRANTS

Sec. 2501. Block grants to States to encourage media campaigns.

Sec. 2502. Responsible fatherhood block grant.

CHAPTER 2—NATIONAL CLEARINGHOUSE

Sec. 2511. National clearinghouse for responsible fatherhood programs.

TITLE III—HEAD START AND CHILD CARE

Subtitle A—Infants and Toddlers

Sec. 3001. Reservation of Head Start Act funds for infants and toddlers.

Sec. 3002. Reservation of child care and development block grant funds for infants and toddlers.

Subtitle B—Child Care Access

CHAPTER 1—IMPROVING ACCESS TO CHILD CARE

Sec. 3101. Payment rates.

CHAPTER 2—IMPROVEMENTS TO THE CHILD CARE AND DEVELOPMENT

BLOCK GRANT PROGRAM

Sec. 3111. Authorization of appropriations.

Sec. 3112. State plan requirements.

Sec. 3113. Definitions.

Subtitle C—Child Care Quality Improvement

CHAPTER 1—FOCUS ON COMMITTED AND UNDERPAID STAFF FOR

CHILDREN’S SAKE

Sec. 3201. Short title.

Sec. 3202. Findings and purpose.

Sec. 3203. Definitions.
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Sec. 3204. Funds for child care provider development and retention grants and

for child care provider scholarships.

Sec. 3205. Allotments to States.

Sec. 3206. Application and plan.

Sec. 3207. Child care provider development and retention grant program.

Sec. 3208. Child care provider scholarship program.

Sec. 3209. Annual report.

Sec. 3210. Authorization of appropriations.

CHAPTER 2—STRENGTHENING QUALITY THROUGH THE CHILD CARE AND

DEVELOPMENT BLOCK GRANT

Sec. 3231. State plan.

Sec. 3232. Child care quality improvements.

Sec. 3233. Administration and enforcement.

CHAPTER 3—CHILD CARE CENTERS IN FEDERAL FACILITIES

Sec. 3241. Short title.

Sec. 3242. Definitions.

Sec. 3243. Providing quality child care in Federal facilities.

Sec. 3244. Federal child care evaluation.

Sec. 3245. Child care services for Federal employees.

Sec. 3246. Miscellaneous provisions relating to child care provided by Federal

agencies.

CHAPTER 4—EARLY LEARNING

Sec. 3251. Short title; findings.

Sec. 3252. Purposes.

Sec. 3253. Definitions.

Sec. 3254. Prohibitions.

Sec. 3255. Authorization and appropriation of funds.

Sec. 3256. Allotments to States.

Sec. 3257. Administrative costs.

Sec. 3258. State requirements.

Sec. 3259. State administration.

Sec. 3260. Local application.

Sec. 3261. Local administration.

Sec. 3262. Use of funds.

Sec. 3263. Repealer.

Sec. 3264. Effective date.

CHAPTER 5—CHILD CARE FACILITIES FINANCING

Sec. 3271. Short title.

Sec. 3272. Technical and financial assistance grants.

Subtitle D—Head Start Access and Improvement

Sec. 3301. Authorization of appropriations.

Subtitle E—Education Improvements

CHAPTER 1—INCREASING ACCESS TO QUALITY PREKINDERGARTEN

PROGRAMS

Sec. 3401. Prekindergarten programs.
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CHAPTER 2—EXPANDING EARLY LITERACY EFFORTS

Sec. 3411. Early literacy.

Sec. 3412. Technical amendments.

CHAPTER 3—INCREASING THE AVAILABILITY OF BOOKS

Sec. 3421. Short title.

Sec. 3422. Findings.

Sec. 3423. Definitions.

Sec. 3424. Grants to State agencies.

Sec. 3425. Contracts to child care resource and referral agencies.

Sec. 3426. Use of funds.

Sec. 3427. Report to Congress.

Sec. 3428. Special postage stamps for child literacy.

Sec. 3429. Authorization of appropriations.

CHAPTER 4—INCREASED ACCOUNTABILITY

Sec. 3431. Low achieving children meet high standards.

Sec. 3432. Purpose and intent.

Sec. 3433. Authorization of appropriations.

Sec. 3434. Reservation and allocation.

Sec. 3435. State plans.

Sec. 3436. Local educational agency plans.

Sec. 3437. Targeted assistance schools.

Sec. 3438. School choice.

Sec. 3439. Assessment and local educational agency and school improvement.

Sec. 3440. State assistance for school support and improvement.

Sec. 3441. Academic achievement awards program; improving State assessments.

Sec. 3442. Parental involvement changes.

Sec. 3443. Professional development.

Sec. 3444. Requirements; records.

Sec. 3445. Coordination requirements.

CHAPTER 5—QUALITY TEACHING AND LEADERSHIP

SUBCHAPTER A—AMENDMENTS TO TITLE II OF THE ELEMENTARY AND

SECONDARY EDUCATION ACT OF 1965

Sec. 3461. Amendments to title II.

SUBCHAPTER B—NATIONAL BOARD CERTIFICATION PROGRAM

Sec. 3471. Purpose.

Sec. 3472. Grants to expand participation in the national board certification

program.

SUBCHAPTER C—STUDENT LOAN FORGIVENESS FOR TEACHERS

Sec. 3481. Student loan forgiveness for teachers.

CHAPTER 6—SCHOOL CONSTRUCTION

SUBCHAPTER A—SCHOOL MODERNIZATION BONDS

Sec. 3501. Short title.

Sec. 3502. Expansion of incentives for public schools.
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Sec. 3503. Application of certain labor standards on construction projects financed under public school modernization program.

SUBCHAPTER B—SCHOOLS AS CENTERS OF THE COMMUNITY

Sec. 3551. Findings.

Sec. 3552. Purpose.

Sec. 3553. Program authorized.

Sec. 3554. Use of funds.

Sec. 3555. Applications.

Sec. 3556. Authorization of appropriations.

CHAPTER 7—CHILD OPPORTUNITY ZONE FAMILY CENTERS

Sec. 3571. Child opportunity zone family centers.

TITLE IV—FAIR START—LIFTING CHILDREN OUT OF POVERTY

Subtitle A—Expanding the Child Tax Credit

Sec. 4001. Expansion of child tax credit; credit made partially refundable.

Subtitle B—Strengthening the Earned Income Tax Credit

Sec. 4101. Short title.

Sec. 4102. Increased earned income tax credit for 2 or more qualifying children.

Sec. 4103. Simplification of definition of earned income.

Sec. 4104. Simplification of definition of child dependent.

Sec. 4105. Other modifications to earned income tax credit.

Subtitle C—Marriage Penalty Relief

Sec. 4201. Marriage penalty relief for earned income credit.

Subtitle D—Expanding the Dependent Care Tax Credit

Sec. 4301. Dependent care tax credit.

TITLE V—FAIR START—SUPPORT TO PROMOTE WORK AND

REDUCE POVERTY

Subtitle A—Gateways Grant Program

Sec. 5001. Gateways grant program.

Subtitle B—Support From Both Parents

CHAPTER 1—CHILD SUPPORT DISTRIBUTION

Sec. 5101. Short title.

SUBCHAPTER A—DISTRIBUTION OF CHILD SUPPORT

Sec. 5111. Distribution of child support collected by States on behalf of children receiving certain welfare benefits.

SUBCHAPTER B—REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS

Sec. 5116. Mandatory review and modification of child support orders for

TANF recipients.
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SUBCHAPTER C—DEMONSTRATIONS OF EXPANDED INFORMATION AND

ENFORCEMENT

Sec. 5121. Guidelines for involvement of public non-IV-D child support enforcement agencies in child support enforcement.

Sec. 5122. Demonstrations involving establishment and enforcement of child

support obligations by public non-IV-D child support enforcement agencies.

Sec. 5123. GAO report to Congress on private child support enforcement agencies.

Sec. 5124. Effective date.

SUBCHAPTER D—EXPANDED ENFORCEMENT

Sec. 5126. Decrease in amount of child support arrearage triggering passport

denial.

Sec. 5127. Use of tax refund intercept program to collect past-due child support on behalf of children who are not minors.

Sec. 5128. Garnishment of compensation paid to veterans for service-connected

disabilities in order to enforce child support obligations.

SUBCHAPTER E—MISCELLANEOUS

Sec. 5131. Report on undistributed child support payments.

Sec. 5132. Use of new hire information to assist in administration of unemployment compensation programs.

Sec. 5133. Immigration provisions.

Sec. 5134. Correction of errors in conforming amendments in the welfare-towork and child support amendments of 1999.

Sec. 5135. Increase in payment rate to States for expenditures for short-term

training of staff of certain child welfare agencies.

Sec. 5136. Effective date.

CHAPTER 2—CHILD SUPPORT DEMONSTRATION PROGRAMS

Sec. 5141. Short title.

Sec. 5142. Purposes.

Sec. 5143. Definitions.

Sec. 5144. Establishment of child support assurance demonstration projects.

Subtitle C—Fair Wages and Unemployment Insurance

CHAPTER 1—FAIR MINIMUM WAGE

Sec. 5201. Short title.

Sec. 5202. Minimum wage.

Sec. 5203. Applicability of minimum wage to the Commonwealth of the Northern Mariana Islands.

CHAPTER 2—LIVABLE WAGES FOR EMPLOYEES UNDER FEDERAL

CONTRACTS

Sec. 5211. Short title.

Sec. 5212. Findings.

Sec. 5213. Poverty level wage.

Sec. 5214. Effective date.

CHAPTER 3—UNEMPLOYMENT INSURANCE
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Sec. 5221. Parity for part-time workers, fair counting of wages, and use of improved technology for making wage data available.

Sec. 5222. Ensuring unemployment compensation for individuals that are separated from employment due to domestic violence.

Sec. 5223. Loss of child care as good cause for leaving employment.

Subtitle D—Jobs for Low-Income Parents

Sec. 5301. Disregard of months engaged in work for purposes of 5-year TANF

assistance limit.

Sec. 5302. Strengthening TANF education and training requirements.

Sec. 5303. Addition of poverty reduction bonus to TANF.

Sec. 5304. Participation in workforce investment boards.

Sec. 5305. Clarification of TANF purpose.

Sec. 5306. Effective date.

Subtitle E—Incentives to Serve Families

Sec. 5401. Development of model caseworker training materials.

Sec. 5402. Exception to limit on TANF administrative expenditures for caseworker bonuses and other State initiatives to eliminate barriers

to work.

Sec. 5403. Strengthening of TANF individual responsibility plans.

Sec. 5404. Effective date.

Subtitle F—Addressing Work Barriers

Sec. 5501. Funding to access to jobs program.

Sec. 5502. Requirement to identify and provide services to address barriers to

employment of TANF recipients.

Sec. 5503. State option to establish exceptions from time limit for receipt of

TANF assistance based on severe barriers to employment.

Sec. 5504. Effective date.

Subtitle G—Protection for Families in Need

Sec. 5601. Earn-back of months of TANF assistance.

Sec. 5602. Establishment of a fair conciliation process for families under

TANF.

Sec. 5603. Effective date.

Subtitle H—TANF Reauthorization

Sec. 5701. Reauthorization of TANF State family assistance grants.

Sec. 5702. Prohibition on supplantation of TANF funds.

TITLE VI—FAIR START

Subtitle A—Child and Adult Care Food Program

Sec. 6001. Participation of for-profit care centers in child and adult care food

program.

Sec. 6002. Categorical eligibility requirements.

Sec. 6003. Increase in administrative reimbursement rates.

Sec. 6004. Program for at-risk school children.

Subtitle B—Food Stamp Program

Sec. 6101. Limited eligibility of food stamp benefits for qualified aliens.
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Sec. 6102. Conforming food stamp and medicaid income definitions; simplified

income calculations.

Sec. 6103. Prevention of hunger among families with children.

Sec. 6104. Encouragement of collection of child support.

Sec. 6105. Elimination of excess shelter expense deduction cap for families with

high shelter costs.

Sec. 6106. Periodic redetermination of eligibility.

Sec. 6107. Transitional benefits option.

Sec. 6108. Improving State incentives to serve working families.

Sec. 6109. Authorization of appropriations for additional commodities under

emergency food assistance program.

TITLE VII—FAIR START HOUSING

Subtitle A—Section 8 Vouchers

Sec. 7001. Rental assistance voucher program.

Sec. 7002. Voucher success fund.

Subtitle B—National Affordable Housing Trust Fund

Sec. 7101. Purposes.

Sec. 7102. National Affordable Housing Trust Fund.

Sec. 7103. Administration of National Affordable Housing Trust Fund.

Sec. 7104. Regulations.

Subtitle C—Housing Preservation Matching Grants

Sec. 7201. Short title.

Sec. 7202. Findings and purposes.

Sec. 7203. Definitions.

Sec. 7204. Authority.

Sec. 7205. Applications.

Sec. 7206. Use of grants.

Sec. 7207. Grant amount limitation.

Sec. 7208. Matching requirements.

Sec. 7209. Treatment of subsidy layering requirements.

Sec. 7210. Regulations.

Sec. 7211. Authorization of appropriations.

TITLE VIII—SAFE START

Subtitle A—Promotion of Permanency for Children

Sec. 8001. Reimbursement for preventive, protective, crisis, permanency, independent living, and post-permanency services and activities.

Sec. 8002. Child and family service plan and case reviews.

Sec. 8003. Kinship guardianship assistance payments for children.

Sec. 8004. Elimination of financial eligibility requirement for foster care maintenance and adoption assistance payments.

Sec. 8005. Establishment of uniform Federal matching rate.

Sec. 8006. Elimination of disincentive for foster parents to adopt children with

special needs who have been in their foster care.

Sec. 8007. Extension of adoption assistance payments.

Sec. 8008. Reimbursement for room and board in foster family homes, child

care institutions, or supervised living arrangements for young

people aging out of foster care.
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Sec. 8009. Funding for vouchers to assist young people aging out of foster care

make the transition to self-sufficiency.

Sec. 8010. Additional accountability.

Sec. 8011. Authority of Indian tribes to receive Federal funds for foster care

and adoption assistance.

Subtitle B—Promoting Safe and Stable Families

Sec. 8101. Expansion of the promoting safe and stable families program.

Subtitle C—Social Services Block Grant

Sec. 8201. Short title.

Sec. 8202. Findings.

Sec. 8202. Restoration of authority to transfer up to 10 percent of TANF

funds to the social services block grant.

Sec. 8204. Restoration of funds for the social services block grant.

Sec. 8205. Requirement to submit annual report on State activities.

Subtitle D—Child Protection and Alcohol and Drug Partnerships

Sec. 8301. Short title.

Sec. 8302. Child protection/alcohol and drug partnerships for children.

Subtitle E—Permanency Grants

Sec. 8401. Establishment of permanency grants program.

Subtitle F—Addressing the Needs of Children Exposed to Domestic Violence

Sec. 8501. Purposes.

Sec. 8502. Definitions.

Sec. 8503. Grants to address the needs of children who are exposed to domestic

violence.

Sec. 8504. Training and coordination of child welfare agencies and domestic

violence service providers.

Sec. 8505. Research and data collection on the impact of domestic violence on

children.

Sec. 8506. Grants to schools and early education and child care programs for

prevention of violence against women.

Sec. 8507. Training of law enforcement and court personnel.

Subtitle G—Enhancing Healthy Emotional Development in Young Children

Sec. 8601. Enhancing healthy emotional development.

TITLE IX—SUCCESSFUL TRANSITION TO ADULTHOOD

Subtitle A—21st Century Community Learning Centers

Sec. 9001. Centers.

Subtitle B—Youth Development

CHAPTER 1—SHORT TITLE; POLICY; FINDINGS; DEFINITIONS

Sec. 9101. Short title.

Sec. 9102. A national youth policy.

Sec. 9103. Findings.
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Sec. 9104. Definitions.

CHAPTER 2—COORDINATION OF NATIONAL YOUTH POLICY

Sec. 9111. Office on National Youth Policy.

Sec. 9112. Council on National Youth Policy.

CHAPTER 3—GRANTS FOR STATE AND COMMUNITY PROGRAMS

Sec. 9121. Purpose.

Sec. 9122. Authorization of appropriations.

Sec. 9123. Allotments to States.

Sec. 9124. State agencies and planning and mobilization areas.

Sec. 9125. State plans.

Sec. 9126. Distribution of funds for State activities and local allocations.

Sec. 9127. Community boards and area agencies on youth.

Sec. 9128. Area plans.

Sec. 9129. Grants and contracts to eligible entities.

Sec. 9130. Eligible entities.

Sec. 9131. Applications.

Sec. 9132. Youth development programs.

CHAPTER 4—TRAINING, RESEARCH, AND EVALUATION

Sec. 9141. Purpose.

Sec. 9142. Grants and contracts.

Sec. 9143. Authorization of appropriations.

Subtitle C—Youth Programs

Sec. 9201. Americorps.

Sec. 9202. Youthbuild program.

Sec. 9203. Youth workforce investment activities.

Sec. 9204. Transition training for reintegrating youth offenders.

TITLE X—SAFE START—JUVENILE JUSTICE

Subtitle A—Juvenile Delinquency Prevention and Protection

Sec. 10001. Definition of juvenile.

Sec. 10002. State plan allocation.

Sec. 10003. State plan requirements.

Sec. 10004. Repeal of part H.

Sec. 10005. Funding of Federal assistance for State and local programs.

Sec. 10006. Funding of grants for prevention programs.

Sec. 10007. Authorization of appropriations.

Subtitle B—Mental Health Juvenile Justice

Sec. 10101. Short title.

Sec. 10102. Training of justice system personnel.

Sec. 10103. Block grant funding for treatment and diversion programs.

Sec. 10104. Initiative for comprehensive, intersystem programs.

Sec. 10105. Federal Coordinating Council on the Criminalization of Juveniles

With Mental Disorders.

Sec. 10106. Mental health screening and treatment for prisoners.

Sec. 10107. Inapplicability of amendments.
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Subtitle C—Juvenile Justice and Accountability

Sec. 10201. Short title.

Sec. 10202. Grant program.

Sec. 10203. Increase in funding for title III of the JJDPA.

Sec. 10204. Funding for the services for youthful offenders.

Sec. 10205. Authorization for the Juvenile Justice and Delinquency Prevention

Act of 1974.

TITLE XI—SAFE START—GUN SAFETY

Subtitle A—Closing the Gun Show Loophole

Sec. 11001. Extension of Brady background checks to gun shows.

Subtitle B—Child Safety Locks

Sec. 11101. Requirement of child handgun safety locks.

Subtitle C—Unlawful Weapons Transfers

Sec. 11201. Unlawful weapons transfers to juveniles.

Subtitle D—Large Capacity Ammunition Feeding Devices

Sec. 11301. Ban on importing large capacity ammunition feeding devices.

Subtitle E—Enforcement of Gun Laws

Sec. 11401. Enhance enforcement of gun violence laws.

Subtitle F—Miscellaneous

Sec. 11501. Study of marketing practices of the firearms industry.

Sec. 11502. Regulation of Internet firearms transfers.

Sec. 11503. Reduction of gun trafficking.

TITLE XII—MISCELLANEOUS

Sec. 12001. Advisory Committee on Private Sector Support for Children and

Families.

Sec. 12002. Improvement of data collection and reporting regarding children

and families.
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1 TITLE I—HEALTHY START—

2 CHILDREN’S HEALTH INSUR3 ANCE

4 Subtitle A—Children’s Health

5 Insurance

6 SEC. 1001. MEDIKIDS HEALTH INSURANCE.

7 (a) SHORT TITLE OF TITLE.—This title may be cited

8 as the ‘‘MediKids Health Insurance Act of 2001’’.

9 (b) FINDINGS.—Congress finds the following:

10 (1) More than 11 million American children are

11 uninsured.

12 (2) Children who are uninsured receive less

13 medical care and less preventive care and have a

14 poorer level of health, which result in lifetime costs

15 to themselves and to the entire American economy.

16 (3) Although SCHIP and Medicaid are success17 fully extending a health coverage safety net to a

18 growing portion of the vulnerable low-income popu19 lation of uninsured children, we now see that they

20 alone cannot achieve 100 percent health insurance

21 coverage for our nation’s children due to inevitable

22 gaps during outreach and enrollment, fluctuations in

23 eligibility, and variations in access to private insur24 ance at all income levels.
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1 (4) As all segments of our society continue to

2 become more and more transient, with many

3 changes in employment over the working lifetime of

4 parents, the need for a reliable safety net of health

5 insurance which follows children across State lines,

6 already a major problem for the children of migrant

7 and seasonal farmworkers, will become a major con8 cern for all families in the United States.

9 (5) The Medicare program has successfully

10 evolved over the years to provide a stable, universal

11 source of health insurance for the nation’s disabled

12 and those over age 65, and therefore provides a test13 ed model for designing a program to reach out to

14 America’s children.

15 (6) The problem of insuring 100 percent of all

16 American children could be gradually solved by auto17 matically enrolling all children born after December

18 31, 2002, in a program modeled after Medicare (and

19 to be known as ‘‘MediKids’’), and allowing those

20 children to be transferred into other equivalent or

21 better insurance programs, including either private

22 insurance, SCHIP, or Medicaid, if they are eligible

23 to do so, but maintaining the child’s default enroll24 ment in MediKids for any times when the child’s ac25 cess to other sources of insurance is lost.
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1 (7) A family’s freedom of choice to use other in2 surers to cover children would not be interfered with

3 in any way, and children eligible for SCHIP and

4 Medicaid would continue to be enrolled in those pro5 grams, but the underlying safety net of MediKids

6 would always be available to cover any gaps in insur7 ance due to changes in medical condition, employ8 ment, income, or marital status, or other changes af9 fecting a child’s access to alternate forms of insur10 ance.

11 (8) The MediKids program can be administered

12 without impacting the finances or status of the exist13 ing Medicare program.

14 (9) The MediKids benefit package can be tai15 lored to the special needs of children and updated

16 over time.

17 (10) The financing of the program can be ad18 ministered without difficulty by a yearly payment of

19 affordable premiums through a family’s tax filing (or

20 adjustment of a family’s earned income tax credit).

21 (11) The cost of the program will gradually rise

22 as the number of children using MediKids as the in23 surer of last resort increases, and a future Congress

24 always can accelerate or slow down the enrollment

25 process as desired, while the societal costs for emer-
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1 gency room usage, lost productivity and work days,

2 and poor health status for the next generation of

3 Americans will decline.

4 (12) Over time 100 percent of American chil5 dren will always have basic health insurance, and we

6 can therefore expect a healthier, more equitable, and

7 more productive society.

8 SEC. 1002. BENEFITS FOR ALL CHILDREN BORN AFTER

9 2002.

10 (a) IN GENERAL.—The Social Security Act is amend11 ed by adding at the end the following new title:

12 ‘‘TITLE XXII—MEDIKIDS PROGRAM

13 ‘‘SEC. 2201. ELIGIBILITY.

14 ‘‘(a) ELIGIBILITY OF INDIVIDUALS BORN AFTER DE15 CEMBER 31, 2002; ALL CHILDREN UNDER 23 YEARS OF

16 AGE IN SIXTH YEAR.—An individual who meets the fol17 lowing requirements with respect to a month is eligible to

18 enroll under this title with respect to such month:

19 ‘‘(1) AGE.—

20 ‘‘(A) FIRST YEAR.—During the first year

21 in which this title is effective, the individual has

22 not attained 6 years of age.

23 ‘‘(B) SECOND YEAR.—During the second

24 year in which this title is effective, the indi25 vidual has not attained 11 years of age.
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1 ‘‘(C) THIRD YEAR.—During the third year

2 in which this title is effective, the individual has

3 not attained 16 years of age.

4 ‘‘(D) FOURTH YEAR.—During the fourth

5 year in which this title is effective, the indi6 vidual has not attained 21 years of age.

7 ‘‘(E) FIFTH AND SUBSEQUENT YEARS.—

8 During the fifth year in which this title is effec9 tive and each subsequent year, the individual

10 has not attained 23 years of age.

11 ‘‘(2) CITIZENSHIP.—The individual is a citizen

12 or national of the United States or is lawfully resid13 ing in the United States.

14 ‘‘(b) ENROLLMENT PROCESS.—An individual may

15 enroll in the program established under this title only in

16 such manner and form as may be prescribed by regula17 tions, and only during an enrollment period prescribed by

18 the Secretary consistent with the provisions of this section.

19 Such regulations shall provide a process under which—

20 ‘‘(1) individuals who are born in the United

21 States after December 31, 2002, are deemed to be

22 enrolled at the time of birth and a parent or guard23 ian of such an individual is permitted to pre-enroll

24 in the month prior to the expected month of birth;
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1 ‘‘(2) individuals who are born outside the

2 United States after such date and who become eligi3 ble to enroll by virtue of immigration into (or an ad4 justment of immigration status in) the United

5 States are deemed enrolled at the time of entry or

6 adjustment of status;

7 ‘‘(3) eligible individuals may otherwise be en8 rolled at such other times and manner as the Sec9 retary shall specify, including the use of outstationed

10 eligibility sites as described in section

11 1902(a)(55)(A) and the use of presumptive eligi12 bility provisions like those described in section

13 1920A; and

14 ‘‘(4) at the time of automatic enrollment of a

15 child, the Secretary provides for issuance to a parent

16 or custodian of the individual a card evidencing cov17 erage under this title and for a description of such

18 coverage.

19 The provisions of section 1837(h) apply with respect to

20 enrollment under this title in the same manner as they

21 apply to enrollment under part B of title XVIII.

22 ‘‘(c) DATE COVERAGE BEGINS.—

23 ‘‘(1) IN GENERAL.—The period during which

24 an individual is entitled to benefits under this title
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1 shall begin as follows, but in no case earlier than

2 January 1, 2003:

3 ‘‘(A) In the case of an individual who is

4 enrolled under paragraph (1) or (2) of sub5 section (b), the date of birth or date of obtain6 ing appropriate citizenship or immigration sta7 tus, as the case may be.

8 ‘‘(B) In the case of an another individual

9 who enrolls (including pre-enrolls) before the

10 month in which the individual satisfies eligi11 bility for enrollment under subsection (a), the

12 first day of such month of eligibility.

13 ‘‘(C) In the case of an another individual

14 who enrolls during or after the month in which

15 the individual first satisfies eligibility for enroll16 ment under such subsection, the first day of the

17 following month.

18 ‘‘(2) AUTHORITY TO PROVIDE FOR PARTIAL

19 MONTHS OF COVERAGE.—Under regulations, the

20 Secretary may, in the Secretary’s discretion, provide

21 for coverage periods that include portions of a

22 month in order to avoid lapses of coverage.

23 ‘‘(3) LIMITATION ON PAYMENTS.—No payments

24 may be made under this title with respect to the ex25 penses of an individual enrolled under this title un-
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1 less such expenses were incurred by such individual

2 during a period which, with respect to the individual,

3 is a coverage period under this section.

4 ‘‘(d) EXPIRATION OF ELIGIBILITY.—An individual’s

5 coverage period under this part shall continue until the

6 individual’s enrollment has been terminated because the

7 individual no longer meets the requirements of subsection

8 (a) (whether because of age or change in immigration sta9 tus).

10 ‘‘(e) ENTITLEMENT TO MEDIKIDS BENEFITS FOR

11 ENROLLED INDIVIDUALS.—An individual enrolled under

12 this section is entitled to the benefits described in section

13 2202.

14 ‘‘(f) LOW-INCOME INFORMATION.—At the time of en15 rollment of a child under this title, the Secretary shall

16 make an inquiry as to whether or not the family income

17 of the family that includes the child is less than 150 per18 cent of the poverty line for a family of the size involved.

19 If the family income is below such level, the Secretary shall

20 encode in the identification card issued in connection with

21 eligibility under this title a code indicating such fact. The

22 Secretary also shall provide for a toll-free telephone line

23 at which providers can verify whether or not such a child

24 is in a family the income of which is below such level.
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1 ‘‘(g) CONSTRUCTION.—Nothing in this title shall be

2 construed as requiring (or preventing) an individual who

3 is enrolled under this section from seeking medical assist4 ance under a State medicaid plan under title XIX or child

5 health assistance under a State child health plan under

6 title XXI.

7 ‘‘SEC. 2202. BENEFITS.

8 ‘‘(a) SECRETARIAL SPECIFICATION OF BENEFIT

9 PACKAGE.—

10 ‘‘(1) IN GENERAL.—The Secretary shall specify

11 the benefits to be made available under this title

12 consistent with the provisions of this section and in

13 a manner designed to meet the health needs of chil14 dren.

15 ‘‘(2) UPDATING.—The Secretary shall update

16 the specification of benefits over time to ensure the

17 inclusion of age-appropriate benefits as the enrollee

18 population gets older.

19 ‘‘(3) ANNUAL UPDATING.—The Secretary shall

20 establish procedures for the annual review and up21 dating of such benefits to account for changes in

22 medical practice, new information from medical re23 search, and other relevant developments in health

24 science.
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1 ‘‘(4) INPUT.—The Secretary shall seek the

2 input of the pediatric community in specifying and

3 updating such benefits.

4 ‘‘(5) LIMITATION ON UPDATING.—In no case

5 shall updating of benefits under this subsection re6 sult in a failure to provide benefits required under

7 subsection (b).

8 ‘‘(b) INCLUSION OF CERTAIN BENEFITS.—

9 ‘‘(1) MEDICARE CORE BENEFITS.—Such bene10 fits shall include (to the extent consistent with other

11 provisions of this section) at least the same benefits

12 (including coverage, access, availability, duration,

13 and beneficiary rights) that are available under

14 parts A and B of title XVIII.

15 ‘‘(2) ALL REQUIRED MEDICAID BENEFITS.—

16 Such benefits shall also include all items and serv17 ices for which medical assistance is required to be

18 provided under section 1902(a)(10)(A) to individuals

19 described in such section, including early and peri20 odic screening, diagnostic services, and treatment

21 services.

22 ‘‘(3) INCLUSION OF PRESCRIPTION DRUGS.—

23 Such benefits also shall include (as specified by the

24 Secretary) prescription drugs and biologicals.

25 ‘‘(4) COST-SHARING.—
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), such benefits also shall include the

3 cost-sharing (in the form of deductibles, coin4 surance, and copayments) applicable under title

5 XVIII with respect to comparable items and

6 services, except that no cost-sharing shall be

7 imposed with respect to early and periodic

8 screening and diagnostic services included

9 under paragraph (2).

10 ‘‘(B) NO COST-SHARING FOR LOWEST IN11 COME CHILDREN.—Such benefits shall not in12 clude any cost-sharing for children in families

13 the income of which (as determined for pur14 poses of section 1905(p)) does not exceed 150

15 percent of the official income poverty line (re16 ferred to in such section) applicable to a family

17 of the size involved.

18 ‘‘(C) REFUNDABLE CREDIT FOR COST19 SHARING FOR OTHER LOW-INCOME CHIL20 DREN.—For a refundable credit for cost-shar21 ing in the case of children in certain families,

22 see section 35 of the Internal Revenue Code of

23 1986.

24 ‘‘(c) PAYMENT SCHEDULE.—The Secretary, with the

25 assistance of the Medicare Payment Advisory Commission,
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1 shall develop and implement a payment schedule for bene2 fits covered under this title. To the extent feasible, such

3 payment schedule shall be consistent with comparable pay4 ment schedules and reimbursement methodologies applied

5 under parts A and B of title XVIII.

6 ‘‘(d) INPUT.—The Secretary shall specify such bene7 fits and payment schedules only after obtaining input from

8 appropriate child health providers and experts.

9 ‘‘(e) ENROLLMENT IN HEALTH PLANS.—The Sec10 retary shall provide for the offering of benefits under this

11 title through enrollment in a health benefit plan that

12 meets the same (or similar) requirements as the require13 ments that apply to Medicare+Choice plans under part

14 C of title XVIII. In the case of individuals enrolled under

15 this title in such a plan, the Medicare+Choice capitation

16 rate described in section 1853(c) shall be adjusted in an

17 appropriate manner to reflect differences between the pop18 ulation served under this title and the population under

19 title XVIII.

20 ‘‘SEC. 2203. PREMIUMS.

21 ‘‘(a) AMOUNT OF MONTHLY PREMIUMS.—

22 ‘‘(1) IN GENERAL.—The Secretary shall, during

23 September of each year (beginning with 2002), es24 tablish a monthly MediKids premium. Subject to

25 paragraph (2), the monthly MediKids premium for
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a year is equal to 1 1 ⁄12 of the annual premium rate

2 computed under subsection (b).

3 ‘‘(2) ELIMINATION OF MONTHLY PREMIUM FOR

4 DEMONSTRATION OF EQUIVALENT COVERAGE (IN5 CLUDING COVERAGE UNDER LOW-INCOME PRO6 GRAMS).—The amount of the monthly premium im7 posed under this section for an individual for a

8 month shall be zero in the case of an individual who

9 demonstrates to the satisfaction of the Secretary

10 that the individual has basic health insurance cov11 erage for that month the actuarial value of which,

12 as determined by the Secretary, is at least actuari13 ally equivalent to the benefits available under this

14 title. For purposes of the previous sentence enroll15 ment in a medicaid plan under title XIX, a State

16 child health insurance plan under title XXI, or

17 under the medicare program under title XVIII is

18 deemed to constitute basic health insurance coverage

19 described in such sentence.

20 ‘‘(b) ANNUAL PREMIUM.—

21 ‘‘(1) NATIONAL, PER CAPITA AVERAGE.—The

22 Secretary shall estimate the average, annual per

23 capita amount that would be payable under this title

24 with respect to individuals residing in the United

25 States who meet the requirement of section
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1 2201(a)(1) as if all such individuals were eligible for

2 (and enrolled) under this title during the entire year

3 (and assuming that section 1862(b)(2)(A)(i) did not

4 apply).

5 ‘‘(2) ANNUAL PREMIUM.—Subject to subsection

6 (d), the annual premium under this subsection for

7 months in a year is equal to 25 percent of the aver8 age, annual per capita amount estimated under

9 paragraph (1) for the year.

10 ‘‘(c) PAYMENT OF MONTHLY PREMIUM.—

11 ‘‘(1) PERIOD OF PAYMENT.—In the case of an

12 individual who participates in the program estab13 lished by this title, subject to subsection (d), the

14 monthly premium shall be payable for the period

15 commencing with the first month of the individual’s

16 coverage period and ending with the month in which

17 the individual’s coverage under this title terminates.

18 ‘‘(2) COLLECTION THROUGH TAX RETURN.—

19 For provisions providing for the payment of monthly

20 premiums under this subsection, see section 59B of

21 the Internal Revenue Code of 1986.

22 ‘‘(3) PROTECTIONS AGAINST FRAUD AND

23 ABUSE.—The Secretary shall develop, in coordina24 tion with States and other health insurance issuers,

25 administrative systems to ensure that claims which
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1 are submitted to more than one payor are coordi2 nated and duplicate payments are not made.

3 ‘‘(d) REDUCTION IN PREMIUM FOR CERTAIN LOW4 INCOME FAMILIES.—For provisions reducing the premium

5 under this section for certain low-income families, see sec6 tion 59B(c) of the Internal Revenue Code of 1986.

7 ‘‘SEC. 2204. MEDIKIDS TRUST FUND.

8 ‘‘(a) ESTABLISHMENT OF TRUST FUND.—

9 ‘‘(1) IN GENERAL.—There is hereby created on

10 the books of the Treasury of the United States a

11 trust fund to be known as the ‘MediKids Trust

12 Fund’ (in this section referred to as the ‘Trust

13 Fund’). The Trust Fund shall consist of such gifts

14 and bequests as may be made as provided in section

15 201(i)(1) and such amounts as may be deposited in,

16 or appropriated to, such fund as provided in this

17 title.

18 ‘‘(2) PREMIUMS.—Premiums collected under

19 section 2203 shall be transferred to the Trust Fund.

20 ‘‘(b) INCORPORATION OF PROVISIONS.—

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

22 subsections (b) through (i) of section 1841 shall

23 apply with respect to the Trust Fund and this title

24 in the same manner as they apply with respect to
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1 the Federal Supplementary Medical Insurance Trust

2 Fund and part B, respectively.

3 ‘‘(2) MISCELLANEOUS REFERENCES.—In apply4 ing provisions of section 1841 under paragraph

5 (1)—

6 ‘‘(A) any reference in such section to ‘this

7 part’ is construed to refer to title XXII;

8 ‘‘(B) any reference in section 1841(h) to

9 section 1840(d) and in section 1841(i) to sec10 tions 1840(b)(1) and 1842(g) are deemed ref11 erences to comparable authority exercised under

12 this title;

13 ‘‘(C) payments may be made under section

14 1841(g) to the Trust Funds under sections

15 1817 and 1841 as reimbursement to such funds

16 for payments they made for benefits provided

17 under this title; and

18 ‘‘(D) the Board of Trustees of the

19 MediKids Trust Fund shall be the same as the

20 Board of Trustees of the Federal Supple21 mentary Medical Insurance Trust Fund.

22 ‘‘SEC. 2205. OVERSIGHT AND ACCOUNTABILITY.

23 ‘‘(a) THROUGH ANNUAL REPORTS OF TRUSTEES.—

24 The Board of Trustees of the MediKids Trust Fund under

25 section 2204(b)(1) shall report on an annual basis to Con-
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1 gress concerning the status of the Trust Fund and the

2 need for adjustments in the program under this title to

3 maintain financial solvency of the program under this

4 title.

5 ‘‘(b) PERIODIC GAO REPORTS.—The Comptroller

6 General of the United States shall periodically submit to

7 Congress reports on the adequacy of the financing of cov8 erage provided under this title. The Comptroller General

9 shall include in such report such recommendations for ad10 justments in such financing and coverage as the Comp11 troller General deems appropriate in order to maintain fi12 nancial solvency of the program under this title.

13 ‘‘SEC. 2206. INCLUSION OF CARE COORDINATION SERVICES.

14 ‘‘(a) IN GENERAL.—

15 ‘‘(1) PROGRAM AUTHORITY.—The Secretary,

16 beginning in 2003, may implement a care coordina17 tion services program in accordance with the provi18 sions of this section under which, in appropriate cir19 cumstances, eligible individuals may elect to have

20 health care services covered under this title managed

21 and coordinated by a designated care coordinator.

22 ‘‘(2) ADMINISTRATION BY CONTRACT.—The

23 Secretary may administer the program under this

24 section through a contract with an appropriate pro25 gram administrator.
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1 ‘‘(3) COVERAGE.—Care coordination services

2 furnished in accordance with this section shall be

3 treated under this title as if they were included in

4 the definition of medical and other health services

5 under section 1861(s) and benefits shall be available

6 under this title with respect to such services without

7 the application of any deductible or coinsurance.

8 ‘‘(b) ELIGIBILITY CRITERIA; IDENTIFICATION AND

9 NOTIFICATION OF ELIGIBLE INDIVIDUALS.—

10 ‘‘(1) INDIVIDUAL ELIGIBILITY CRITERIA.—The

11 Secretary shall specify criteria to be used in making

12 a determination as to whether an individual may ap13 propriately be enrolled in the care coordination serv14 ices program under this section, which shall include

15 at least a finding by the Secretary that for cohorts

16 of individuals with characteristics identified by the

17 Secretary, professional management and coordina18 tion of care can reasonably be expected to improve

19 processes or outcomes of health care and to reduce

20 aggregate costs to the programs under this title.

21 ‘‘(2) PROCEDURES TO FACILITATE ENROLL22 MENT.—The Secretary shall develop and implement

23 procedures designed to facilitate enrollment of eligi24 ble individuals in the program under this section.

25 ‘‘(c) ENROLLMENT OF INDIVIDUALS.—
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1 ‘‘(1) SECRETARY’S DETERMINATION OF ELIGI2 BILITY.—The Secretary shall determine the eligi3 bility for services under this section of individuals

4 who are enrolled in the program under this section

5 and who make application for such services in such

6 form and manner as the Secretary may prescribe.

7 ‘‘(2) ENROLLMENT PERIOD.—

8 ‘‘(A) EFFECTIVE DATE AND DURATION.—

9 Enrollment of an individual in the program

10 under this section shall be effective as of the

11 first day of the month following the month in

12 which the Secretary approves the individual’s

13 application under paragraph (1), shall remain

14 in effect for one month (or such longer period

15 as the Secretary may specify), and shall be

16 automatically renewed for additional periods,

17 unless terminated in accordance with such pro18 cedures as the Secretary shall establish by regu19 lation. Such procedures shall permit an indi20 vidual to disenroll for cause at any time and

21 without cause at re-enrollment intervals.

22 ‘‘(B) LIMITATION ON REENROLLMENT.—

23 The Secretary may establish limits on an indi24 vidual’s eligibility to reenroll in the program

25 under this section if the individual has
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1 disenrolled from the program more than once

2 during a specified time period.

3 ‘‘(d) PROGRAM.—The care coordination services pro4 gram under this section shall include the following ele5 ments:

6 ‘‘(1) BASIC CARE COORDINATION SERVICES.—

7 ‘‘(A) IN GENERAL.—Subject to the cost-ef8 fectiveness criteria specified in subsection

9 (b)(1), except as otherwise provided in this sec10 tion, enrolled individuals shall receive services

11 described in section 1905(t)(1) and may receive

12 additional items and services as described in

13 subparagraph (B).

14 ‘‘(B) ADDITIONAL BENEFITS.—The Sec15 retary may specify additional benefits for which

16 payment would not otherwise be made under

17 this title that may be available to individuals

18 enrolled in the program under this section (sub19 ject to an assessment by the care coordinator of

20 an individual’s circumstance and need for such

21 benefits) in order to encourage enrollment in, or

22 to improve the effectiveness of, such program.

23 ‘‘(2) CARE COORDINATION REQUIREMENT.—

24 Notwithstanding any other provision of this title, the

25 Secretary may provide that an individual enrolled in
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1 the program under this section may be entitled to

2 payment under this title for any specified health

3 care items or services only if the items or services

4 have been furnished by the care coordinator, or co5 ordinated through the care coordination services pro6 gram. Under such provision, the Secretary shall pre7 scribe exceptions for emergency medical services as

8 described in section 1852(d)(3), and other excep9 tions determined by the Secretary for the delivery

10 of timely and needed care.

11 ‘‘(e) CARE COORDINATORS.—

12 ‘‘(1) CONDITIONS OF PARTICIPATION.—In order

13 to be qualified to furnish care coordination services

14 under this section, an individual or entity shall—

15 ‘‘(A) be a health care professional or entity

16 (which may include physicians, physician group

17 practices, or other health care professionals or

18 entities the Secretary may find appropriate)

19 meeting such conditions as the Secretary may

20 specify;

21 ‘‘(B) have entered into a care coordination

22 agreement; and

23 ‘‘(C) meet such criteria as the Secretary

24 may establish (which may include experience in
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1 the provision of care coordination or primary

2 care physician’s services).

3 ‘‘(2) AGREEMENT TERM; PAYMENT.—

4 ‘‘(A) DURATION AND RENEWAL.—A care

5 coordination agreement under this subsection

6 shall be for one year and may be renewed if the

7 Secretary is satisfied that the care coordinator

8 continues to meet the conditions of participa9 tion specified in paragraph (1).

10 ‘‘(B) PAYMENT FOR SERVICES.—The Sec11 retary may negotiate or otherwise establish pay12 ment terms and rates for services described in

13 subsection (d)(1).

14 ‘‘(C) LIABILITY.—Case coordinators shall

15 be subject to liability for actual health damages

16 which may be suffered by recipients as a result

17 of the care coordinator’s decisions, failure or

18 delay in making decisions, or other actions as

19 a care coordinator.

20 ‘‘(D) TERMS.—In addition to such other

21 terms as the Secretary may require, an agree22 ment under this section shall include the terms

23 specified in subparagraphs (A) through (C) of

24 section 1905(t)(3).
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1 ‘‘SEC. 2207. ADMINISTRATION AND MISCELLANEOUS.

2 ‘‘(a) IN GENERAL.—Except as otherwise provided in

3 this title—

4 ‘‘(1) the Secretary shall enter into appropriate

5 contracts with providers of services, other health

6 care providers, carriers, and fiscal intermediaries,

7 taking into account the types of contracts used

8 under title XVIII with respect to such entities, to

9 administer the program under this title;

10 ‘‘(2) individuals enrolled under this title shall

11 be treated for purposes of title XVIII as though the

12 individual were entitled to benefits under part A and

13 enrolled under part B of such title;

14 ‘‘(3) benefits described in section 2202 that are

15 payable under this title to such individuals shall be

16 paid in a manner specified by the Secretary (taking

17 into account, and based to the greatest extent prac18 ticable upon, the manner in which they are provided

19 under title XVIII);

20 ‘‘(4) provider participation agreements under

21 title XVIII shall apply to enrollees and benefits

22 under this title in the same manner as they apply

23 to enrollees and benefits under title XVIII; and

24 ‘‘(5) individuals entitled to benefits under this

25 title may elect to receive such benefits under health

26 plans in a manner, specified by the Secretary, simi-
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1 lar to the manner provided under part C of title

2 XVIII.

3 ‘‘(b) COORDINATION WITH MEDICAID AND

4 SCHIP.—Notwithstanding any other provision of law, in5 dividuals entitled to benefits for items and services under

6 this title who also qualify for benefits under title XIX or

7 XXI or any other Federally funded program may continue

8 to qualify and obtain benefits under such other title or

9 program, and in such case such an individual shall elect

10 either—

11 ‘‘(1) such other title or program to be primary

12 payor to benefits under this title, in which case no

13 benefits shall be payable under this title and the

14 monthly premium under section 2203 shall be zero;

15 or

16 ‘‘(2) benefits under this title shall be primary

17 payor to benefits provided under such program or

18 title, in which case the Secretary shall enter into

19 agreements with States as may be appropriate to

20 provide that, in the case of such individuals, the ben21 efits under titles XIX and XXI or such other pro22 gram (including reduction of cost-sharing) are pro23 vided on a ‘wrap-around’ basis to the benefits under

24 this title.’’.
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1 (b) CONFORMING AMENDMENTS TO SOCIAL SECU2 RITY ACT PROVISIONS.—

3 (1) Section 201(i)(1) of the Social Security Act

4 (42 U.S.C. 401(i)(1)) is amended by striking ‘‘or the

5 Federal Supplementary Medical Insurance Trust

6 Fund’’ and inserting ‘‘the Federal Supplementary

7 Medical Insurance Trust Fund, and the MediKids

8 Trust Fund’’.

9 (2) Section 201(g)(1)(A) of such Act (42

10 U.S.C. 401(g)(1)(A)) is amended by striking ‘‘ and

11 the Federal Supplementary Medical Insurance Trust

12 Fund established by title XVIII’’ and inserting ‘‘,

13 the Federal Supplementary Medical Insurance Trust

14 Fund, and the MediKids Trust Fund established by

15 title VIII’’.

16 (3) Section 1853(c) of such Act (42 U.S.C.

17 1395w–23(c)) is amended—

18 (A) in paragraph (1), by striking ‘‘and

19 (7)’’ and inserting ‘‘, (7), and (8)’’, and

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

21 ‘‘(8) ADJUSTMENT FOR MEDIKIDS.—In apply22 ing this subsection with respect to individuals enti23 tled to benefits under title XXII, the Secretary shall

24 provide for an appropriate adjustment in the

25 Medicare+Choice capitation rate as may be appro-
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1 priate to reflect differences between the population

2 served under such title and the population under

3 parts A and B.’’.

4 (c) MAINTENANCE OF MEDICAID ELIGIBILITY AND

5 BENEFITS FOR CHILDREN.—

6 (1) IN GENERAL.—In order for a State to con7 tinue to be eligible for payments under section

8 1903(a) of the Social Security Act (42 U.S.C.

9 1396b(a))—

10 (A) the State may not reduce standards of

11 eligibility, or benefits, provided under its State

12 medicaid plan under title XIX of the Social Se13 curity Act or under its State child health plan

14 under title XXI of such Act for individuals

15 under 23 years of age below such standards of

16 eligibility, and benefits, in effect on the date of

17 the enactment of this Act; and

18 (B) the State shall demonstrate to the sat19 isfaction of the Secretary of Health and Human

20 Services that any savings in State expenditures

21 under title XIX or XXI of the Social Security

22 Act that results from children from enrolling

23 under title XXII of such Act shall be used in

24 a manner that improves services to beneficiaries

25 under title XIX of such Act, such as through
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1 increases in provider payment rates, expansion

2 of eligibility, improved nurse and nurse aide

3 staffing and improved inspections of nursing fa4 cilities, and coverage of additional services.

5 (2) MEDIKIDS AS PRIMARY PAYOR.—In apply6 ing title XIX of the Social Security Act, the

7 MediKids program under title XXII of such Act

8 shall be treated as a primary payor in cases in which

9 the election described in section 2207(b)(2) of such

10 Act, as added by subsection (a), has been made.

11 (d) EXPANSION OF MEDPAC MEMBERSHIP TO 19.—

12 (1) IN GENERAL.—Section 1805(c) of the So13 cial Security Act (42 U.S.C. 1395b–6(c)) is

14 amended—

15 (A) in paragraph (1), by striking ‘‘17’’ and

16 inserting ‘‘19’’; and

17 (B) in paragraph (2)(B), by inserting ‘‘ex18 perts in children’s health,’’ after ‘‘other health

19 professionals,’’.

20 (2) INITIAL TERMS OF ADDITIONAL MEM21 BERS.—

22 (A) IN GENERAL.—For purposes of stag23 gering the initial terms of members of the

24 Medicare Payment Advisory Commission under

25 section 1805(c)(3) of the Social Security Act
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1 (42 U.S.C. 1395b–6(c)(3)), the initial terms of

2 the 2 additional members of the Commission

3 provided for by the amendment under sub4 section (a)(1) are as follows:

5 (i) One member shall be appointed for

6 1 year.

7 (ii) One member shall be appointed

8 for 2 years.

9 (B) COMMENCEMENT OF TERMS.—Such

10 terms shall begin on January 1, 2002.

11 SEC. 1003. MEDIKIDS PREMIUM.

12 (a) GENERAL RULE.—Subchapter A of chapter 1 of

13 the Internal Revenue Code of 1986 (relating to determina14 tion of tax liability) is amended by adding at the end the

15 following new part:

16 ‘‘PART VIII—MEDIKIDS PREMIUM

‘‘Sec. 59B. MediKids premium.

17 ‘‘SEC. 59B. MEDIKIDS PREMIUM.

18 ‘‘(a) IMPOSITION OF TAX.—In the case of an indi19 vidual to whom this section applies, there is hereby im20 posed (in addition to any other tax imposed by this sub21 title) a MediKids premium for the taxable year.

22 ‘‘(b) INDIVIDUALS SUBJECT TO PREMIUM.—
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1 ‘‘(1) IN GENERAL.—This section shall apply to

2 an individual if the taxpayer has a MediKid at any

3 time during the taxable year.

4 ‘‘(2) MEDIKID.—For purposes of this section,

5 the term ‘MediKid’ means, with respect to a tax6 payer, any individual with respect to whom the tax7 payer is required to pay a premium under section

8 2203(c) of the Social Security Act for any month of

9 the taxable year.

10 ‘‘(c) AMOUNT OF PREMIUM.—For purposes of this

11 section, the MediKids premium for a taxable year is the

12 sum of the monthly premiums under section 2203 of the

13 Social Security Act for months in the taxable year.

14 ‘‘(d) EXCEPTIONS BASED ON ADJUSTED GROSS IN15 COME.—

16 ‘‘(1) EXEMPTION FOR VERY LOW-INCOME TAX17 PAYERS.—

18 ‘‘(A) IN GENERAL.—No premium shall be

19 imposed by this section on any taxpayer having

20 an adjusted gross income not in excess of the

21 exemption amount.

22 ‘‘(B) EXEMPTION AMOUNT.—For purposes

23 of this paragraph, with respect to a family, the

24 exemption amount is the amount equal to 150

25 percent of the income official poverty line (as
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1 defined by the Office of Management and

2 Budget, and revised annually in accordance

3 with section 673(2) of the Omnibus Budget

4 Reconciliation Act of 1981) applicable to a fam5 ily of the size involved.

6 ‘‘(C) PHASEOUT OF EXEMPTION.—In the

7 case of a taxpayer having an adjusted gross in8 come which exceeds the exemption amount but

9 does not exceed twice the exemption amount,

10 the premium shall be the amount which bears

11 the same ratio to the premium which would

12 (but for this subparagraph) apply to the tax13 payer as such excess bears to the exemption

14 amount.

15 ‘‘(2) PREMIUM LIMITED TO 5 PERCENT OF AD16 JUSTED GROSS INCOME.—In no event shall any tax17 payer be required to pay a premium under this sec18 tion in excess of an amount equal to 5 percent of the

19 taxpayer’s adjusted gross income.

20 ‘‘(e) COORDINATION WITH OTHER PROVISIONS.—

21 ‘‘(1) NOT TREATED AS MEDICAL EXPENSE.—

22 For purposes of this chapter, any premium paid

23 under this section shall not be treated as expense for

24 medical care.
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1 ‘‘(2) NOT TREATED AS TAX FOR CERTAIN PUR2 POSES.—The premium paid under this section shall

3 not be treated as a tax imposed by this chapter for

4 purposes of determining—

5 ‘‘(A) the amount of any credit allowable

6 under this chapter, or

7 ‘‘(B) the amount of the minimum tax im8 posed by section 55.

9 ‘‘(3) TREATMENT UNDER SUBTITLE F.—For

10 purposes of subtitle F, the premium paid under this

11 section shall be treated as if it were a tax imposed

12 by section 1.’’.

13 (b) TECHNICAL AMENDMENTS.—

14 (1) Subsection (a) of section 6012 of such Code

15 is amended by inserting after paragraph (9) the fol16 lowing new paragraph:

17 ‘‘(10) Every individual liable for a premium

18 under section 59B.’’.

19 (2) The table of parts for subchapter A of chap20 ter 1 of such Code is amended by adding at the end

21 the following new item:

‘‘Part VIII. MediKids premium.’’.

22 (c) EFFECTIVE DATE.—The amendments made by

23 this section shall apply to months beginning after Decem24 ber 2002, in taxable years ending after such date.
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1 SEC. 1004. REFUNDABLE CREDIT FOR COST-SHARING EX2 PENSES UNDER MEDIKIDS PROGRAM.

3 (a) IN GENERAL.—Subpart C of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of

5 1986 (relating to refundable credits) is amended by redes6 ignating section 35 as section 36 and by inserting after

7 section 34 the following new section:

8 ‘‘SEC. 35. COST-SHARING EXPENSES UNDER MEDIKIDS PRO9 GRAM.

10 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in11 dividual who has a MediKid (as defined in section 59B)

12 at any time during the taxable year, there shall be allowed

13 as a credit against the tax imposed by this subtitle an

14 amount equal to 50 percent of the amount paid by the

15 taxpayer during the taxable year as cost-sharing under

16 section 2202(b)(4) of the Social Security Act.

17 ‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN18 COME.—The amount of the credit which would (but for

19 this subsection) be allowed under this section for the tax20 able year shall be reduced (but not below zero) by an

21 amount which bears the same ratio to such amount of

22 credit as the excess of the taxpayer’s adjusted gross in23 come for such taxable year over the exemption amount (as

24 defined in section 59B(d)) bears to such exemption

25 amount.’’.

26 (b) TECHNICAL AMENDMENTS.—
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1 (1) Paragraph (2) of section 1324(b) of title

2 31, United States Code, is amended by inserting be3 fore the period ‘‘or from section 35 of such Code’’.

4 (2) The table of sections for subpart C of part

5 IV of subchapter A of chapter 1 of such Code is

6 amended by striking the last item and inserting the

7 following new items:

‘‘Sec. 35. Cost-sharing expenses under MediKids program.

‘‘Sec. 36. Overpayments of tax.’’.

8 (c) EFFECTIVE DATE.—The amendments made by

9 this section shall apply to taxable years beginning after

10 December 31, 2002.

11 SEC. 1005. REPORT ON LONG-TERM REVENUES.

12 Within 1 year after the date of enactment of this

13 title, the Secretary of the Treasury shall propose a gradual

14 schedule of progressive tax changes to fund the program

15 under title XXII of the Social Security Act, as the number

16 of enrollees grows in the out-years.
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1 Subtitle B—Children’s Health In2 surance Eligibility Expansion

3 and Enrollment Improvements

4 CHAPTER 1—ELIGIBILITY EXPANSIONS

5 Subchapter A—Medicaid and SCHIP

6 SEC. 1101. EXPANSION OF CHILDREN’S ELIGIBILITY FOR

7 MEDICAID AND SCHIP.

8 (a) EXPANSION OF INCOME ELIGIBILITY UNDER

9 SCHIP.—Section 2110(c)(4) of the Social Security Act

10 (42 U.S.C. 42 U.S.C. 1397jj(c)(4)) is amended by striking

11 ‘‘200’’ and inserting ‘‘300’’.

12 (b) MANDATORY BUY-IN COVERAGE.—

13 (1) MEDICAID.—Section 1902(a)(10)(A)(i) of

14 the Social Security Act (42 U.S.C.

15 1396a(a)(10)(A)(i)) is amended—

16 (A) by striking ‘‘or’’ at the end of sub17 clause (VI);

18 (B) by striking the semicolon at the end of

19 subclause (VII) and insert ‘‘, or’’; and

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

21 ‘‘(VIII) who are children in fami22 lies whose income exceeds 300 percent

23 of the income official poverty line (as

24 defined by the Office of Management

25 and Budget, and revised annually in
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1 accordance with section 673(2) of the

2 Omnibus Budget Reconciliation Act of

3 1981) applicable to a family of the

4 size involved subject, notwithstanding

5 section 1916, to payment of premiums

6 or other cost-sharing charges (set on

7 a sliding scale based on income) that

8 the State may determine;’’.

9 (2) SCHIP.—Section 2107(e)(1) of such Act

10 (42 U.S.C. 1397gg(e)(1)) is amended by adding at

11 the end the following new subparagraph:

12 ‘‘(E) Section 1902(a)(10)(A)(i)(VIII) (re13 lating to buy-in coverage for children whose

14 family income exceeds 300 percent of the pov15 erty line).’’.

16 (c) EFFECTIVE DATE.—The amendments made by

17 this section apply to medical assistance and child health

18 assistance provided on or after October 1, 2001.

19 SEC. 1102. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS

20 UNDER THE MEDICAID PROGRAM AND TITLE

21 XXI.

22 (a) MEDICAID PROGRAM.—Section 1903(v) of the

23 Social Security Act (42 U.S.C. 1396b(v)) is amended—

24 (1) in paragraph (1), by striking ‘‘paragraph

25 (2)’’ and inserting ‘‘paragraphs (2) and (4)’’; and
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1 (2) by adding at the end the following:

2 ‘‘(4)(A) A State may elect (in a plan amendment

3 under this title) to provide medical assistance under this

4 title for aliens who are lawfully residing in the United

5 States (including battered aliens described in section

6 431(c) of the Personal Responsibility and Work Oppor7 tunity Reconciliation Act of 1996) and who are otherwise

8 eligible for such assistance, within any of the following eli9 gibility categories:

10 ‘‘(i) PREGNANT WOMEN.—Women during preg11 nancy (and during the 60-day period beginning on

12 the last day of the pregnancy).

13 ‘‘(ii) CHILDREN.—Children (as defined under

14 such plan), including optional targeted low-income

15 children described in section 1905(u)(2)(B).

16 ‘‘(B)(i) In the case of a State that has elected to pro17 vide medical assistance to a category of aliens under sub18 paragraph (A), no debt shall accrue under an affidavit of

19 support against any sponsor of such an alien on the basis

20 of provision of assistance to such category and the cost

21 of such assistance shall not be considered as an unreim22 bursed cost.

23 ‘‘(ii) The provisions of sections 401(a), 402(b), 403,

24 and 421 of the Personal Responsibility and Work Oppor-
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1 tunity Reconciliation Act of 1996 shall not apply to a

2 State that makes an election under subparagraph (A).’’.

3 (b) TITLE XXI.—Section 2107(e)(1) of the Social

4 Security Act (42 U.S.C. 1397gg(e)(1)), as amended by

5 section 803 of the Medicare, Medicaid, and SCHIP Bene6 fits Improvement and Protection Act of 2000 (as enacted

7 into law by section 1(a)(6) of Public Law 106–554), is

8 amended by adding at the end the following:

9 ‘‘(E) Section 1903(v)(4) (relating to op10 tional coverage of permanent resident alien chil11 dren), but only if the State has elected to apply

12 such section to that category of children under

13 title XIX.’’.

14 (c) EFFECTIVE DATE.—The amendments made by

15 this section take effect on October 1, 2001, and apply to

16 medical assistance and child health assistance furnished

17 on or after such date.

18 Subchapter B—Family Opportunity Act

19 SEC. 1111. SHORT TITLE; AMENDMENTS TO SOCIAL SECU20 RITY ACT.

21 (a) SHORT TITLE.—This subchapter may be cited as

22 the ‘‘Family Opportunity Act of 2001’’ or the ‘‘Dylan Lee

23 James Act’’.

24 (b) AMENDMENTS TO SOCIAL SECURITY ACT.—Ex25 cept as otherwise specifically provided, whenever in this
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1 Act an amendment is expressed in terms of an amendment

2 to or repeal of a section or other provision, the reference

3 shall be considered to be made to that section or other

4 provision of the Social Security Act.

5 SEC. 1112. OPPORTUNITY FOR FAMILIES OF DISABLED

6 CHILDREN TO PURCHASE MEDICAID COV7 ERAGE FOR SUCH CHILDREN.

8 (a) STATE OPTION TO ALLOW FAMILIES OF DIS9 ABLED CHILDREN TO PURCHASE MEDICAID COVERAGE

10 FOR SUCH CHILDREN.—

11 (1) IN GENERAL.—Section 1902 (42 U.S.C.

12 1396a), as amended by section 2(a) of the Breast

13 and Cervical Cancer Prevention and Treatment Act

14 of 2000 (Public Law 106–354; 114 Stat. 1381) and

15 section 702(b) of the Medicare, Medicaid, and

16 SCHIP Benefits Improvement and Protection Act of

17 2000 (as enacted into law by section 1(a)(6) of Pub18 lic Law 106–554), is amended—

19 (A) in subsection (a)(10)(A)(ii)—

20 (i) by striking ‘‘or’’ at the end of sub21 clause (XVII);

22 (ii) by adding ‘‘or’’ at the end of sub23 clause (XVIII); and

24 (iii) by adding at the end the fol25 lowing new subclause:
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1 ‘‘(XIX) who are disabled children

2 described in subsection (cc)(1);’’; and

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

4 subsection:

5 ‘‘(cc)(1) Individuals described in this paragraph are

6 individuals—

7 ‘‘(A) who have not attained 18 years of age;

8 ‘‘(B) who would be considered disabled under

9 section 1614(a)(3)(C) (determined without regard to

10 the reference to age in that section) but for having

11 earnings or deemed income or resources (as deter12 mined under title XVI for children) that exceed the

13 requirements for receipt of supplemental security in14 come benefits; and

15 ‘‘(C) whose family income does not exceed such

16 income level as the State establishes and does not

17 exceed—

18 ‘‘(i) 300 percent of the income official pov19 erty line (as defined by the Office of Manage20 ment and Budget, and revised annually in ac21 cordance with section 673(2) of the Omnibus

22 Budget Reconciliation Act of 1981) applicable

23 to a family of the size involved; or

24 ‘‘(ii) such higher percent of such poverty

25 line as a State may establish, except that no
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1 Federal financial participation shall be provided

2 under section 1903(a) for any medical assist3 ance provided to an individual who would not be

4 described in this subsection but for this

5 clause.’’.

6 (2) INTERACTION WITH EMPLOYER-SPONSORED

7 FAMILY COVERAGE.—Section 1902(cc) (42 U.S.C.

8 1396a(cc)), as added by paragraph (1), is amended

9 by adding at the end the following new paragraph:

10 ‘‘(2)(A) If an employer of a parent of an individual

11 described in paragraph (1) offers family coverage under

12 a group health plan (as defined in section 2791(a) of the

13 Public Health Service Act), the State may—

14 ‘‘(i) require such parent to apply for, enroll in,

15 and pay premiums for, such coverage as a condition

16 of such parent’s child being or remaining eligible for

17 medical assistance under subsection

18 (a)(10)(A)(ii)(XIX) if the parent is determined eligi19 ble for such coverage and the employer contributes

20 at least 50 percent of the total cost of annual pre21 miums for such coverage; and

22 ‘‘(ii) if such coverage is obtained—

23 ‘‘(I) subject to paragraph (2) of section

24 1916(h), reduce the premium imposed by the

25 State under that section (if any) in an amount
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1 that reasonably reflects the premium contribu2 tion made by the parent for private coverage on

3 behalf of a child with a disability; and

4 ‘‘(II) treat such coverage as a third party

5 liability under subsection (a)(25).

6 ‘‘(B) In the case of a parent to which subparagraph

7 (A) applies, if the family income of such parent does not

8 exceed 300 percent of the income official poverty line (re9 ferred to in paragraph (1)(C)(i)), a State may provide for

10 payment of any portion of the annual premium for such

11 family coverage that the parent is required to pay. Any

12 payments made by the State under this subparagraph

13 shall be considered, for purposes of section 1903(a), to

14 be payments for medical assistance.’’.

15 (b) STATE OPTION TO IMPOSE INCOME-RELATED

16 PREMIUMS.—Section 1916 (42 U.S.C. 1396o) is

17 amended—

18 (1) in subsection (a), by striking ‘‘subsection

19 (g)’’ and inserting ‘‘subsections (g) and (h)’’; and

20 (2) by adding at the end the following new sub21 section:

22 ‘‘(h)(1) With respect to disabled children provided

23 medical assistance under section 1902(a)(10)(A)(ii)(XIX),

24 subject to paragraph (2), a State may (in a uniform man25 ner for such children) require the families of such children
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1 to pay monthly premiums set on a sliding scale based on

2 family income.

3 ‘‘(2) A premium requirement imposed under para4 graph (1) may only apply to the extent that—

5 ‘‘(A) the aggregate amount of such premium

6 and any premium that the parent is required to pay

7 for family coverage under section 1902(cc)(2)(A)(i)

8 does not exceed 5 percent of the family’s income;

9 and

10 ‘‘(B) the requirement is imposed consistent with

11 section 1902(cc)(2)(A)(ii)(I).

12 ‘‘(3) A State shall not require prepayment of a pre13 mium imposed pursuant to paragraph (1) and shall not

14 terminate eligibility of a child under section

15 1902(a)(10)(A)(ii)(XIX) for medical assistance under this

16 title on the basis of failure to pay any such premium until

17 such failure continues for a period of not less than 60 days

18 from the date on which the premium became past due.

19 The State may waive payment of any such premium in

20 any case where the State determines that requiring such

21 payment would create an undue hardship.’’.

22 (c) CONFORMING AMENDMENT.—Section 1903(f)(4)

23 (42 U.S.C. 1396b(f)(4)), as amended by section 710(a)

24 of the Medicare, Medicaid, and SCHIP Benefits Improve25 ment and Protection Act of 2000 (as enacted into law by
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1 section 1(a)(6) of Public Law 106–554), is amended in

2 the matter preceding subparagraph (A) by inserting

3 ‘‘1902(a)(10)(A)(ii)(XIX),’’ after ‘‘1902(a)(10)(A)

4 (ii)(XVIII),’’.

5 (d) TECHNICAL AMENDMENTS.—

6 (1) Section 1902 (42 U.S.C. 1396a), as amend7 ed by section 702(b) of the Medicare, Medicaid, and

8 SCHIP Benefits Improvement and Protection Act of

9 2000 (as enacted into law by section 1(a)(6) of Pub10 lic Law 106–554), is amended by redesignating the

11 subsection (aa) added by such section as subsection

12 (bb).

13 (2) Section 1902(a)(15) (42 U.S.C.

14 1396a(a)(15)), as added by section 702(a)(2) of the

15 Medicare, Medicaid, and SCHIP Benefits Improve16 ment and Protection Act of 2000 (as so enacted into

17 law), is amended by striking ‘‘subsection (aa)’’ and

18 inserting ‘‘subsection (bb)’’.

19 (3) Section 1915(b) (42 U.S.C. 1396n(b)), as

20 amended by section 702(c)(2) of the Medicare, Med21 icaid, and SCHIP Benefits Improvement and Pro22 tection Act of 2000 (as so enacted into law), is

23 amended by striking ‘‘1902(aa)’’ and inserting

24 ‘‘1902(bb)’’.

25 (e) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—The amendments made by

2 subsections (a), (b), and (c) shall apply to medical

3 assistance for items and services furnished on or

4 after January 1, 2002.

5 (2) TECHNICAL AMENDMENTS.—The amend6 ments made by subsection (d) shall take effect as if

7 included in the enactment of section 702 of the

8 Medicare, Medicaid, and SCHIP Benefits Improve9 ment and Protection Act of 2000 (as enacted into

10 law by section 1(a)(6) of Public Law 106–554).

11 SEC. 1113. TREATMENT OF INPATIENT PSYCHIATRIC HOS12 PITAL SERVICES FOR INDIVIDUALS UNDER

13 AGE 21 IN HOME OR COMMUNITY-BASED

14 SERVICES WAIVERS.

15 (a) IN GENERAL.—Section 1915(c) (42 U.S.C.

16 1396n(c)) is amended—

17 (1) in paragraph (1)—

18 (A) in the first sentence, by inserting ‘‘, or

19 inpatient psychiatric hospital services for indi20 viduals under age 21,’’ after ‘‘intermediate care

21 facility for the mentally retarded’’; and

22 (B) in the second sentence, by inserting ‘‘,

23 or inpatient psychiatric hospital services for in24 dividuals under age 21’’ before the period;
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1 (2) in paragraph (2)(B), by striking ‘‘or serv2 ices in an intermediate care facility for the mentally

3 retarded’’ each place it appears and inserting ‘‘,

4 services in an intermediate care facility for the men5 tally retarded, or inpatient psychiatric hospital serv6 ices for individuals under age 21’’;

7 (3) by striking paragraph (2)(C) and inserting

8 the following:

9 ‘‘(C) such individuals who are determined to be

10 likely to require the level of care provided in a hos11 pital, nursing facility, or intermediate care facility

12 for the mentally retarded, or inpatient psychiatric

13 hospital services for individuals under age 21, are

14 informed of the feasible alternatives, if available

15 under the waiver, at the choice of such individuals,

16 to the provision of inpatient hospital services, nurs17 ing facility services, services in an intermediate care

18 facility for the mentally retarded, or inpatient psy19 chiatric hospital services for individuals under age

20 21;’’; and

21 (4) in paragraph (7)(A)—

22 (A) by inserting ‘‘, or inpatient psychiatric

23 hospital services for individuals under age 21,’’

24 after ‘‘intermediate care facility for the men25 tally retarded’’; and
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1 (B) by inserting ‘‘, or who would require

2 inpatient psychiatric hospital services for indi3 viduals under age 21’’ before the period.

4 (b) EFFECTIVE DATE.—The amendments made by

5 subsection (a) apply with respect to medical assistance

6 provided on or after January 1, 2001.

7 SEC. 1114. DEMONSTRATION OF COVERAGE UNDER THE

8 MEDICAID PROGRAM OF CHILDREN WITH PO9 TENTIALLY SEVERE DISABILITIES.

10 (a) STATE APPLICATION.—A State may apply to the

11 Secretary of Health and Human Services (in this section

12 referred to as the ‘‘Secretary’’) for approval of a dem13 onstration project (in this section referred to as a ‘‘dem14 onstration project’’) under which up to a specified max15 imum number of children with a potentially severe dis16 ability (as defined in subsection (b)) are provided medical

17 assistance under the State medicaid plan under title XIX

18 of the Social Security Act (42 U.S.C. 1396 et seq.).

19 (b) CHILD WITH A POTENTIALLY SEVERE DIS20 ABILITY DEFINED.—

21 (1) IN GENERAL.—In this section, the term

22 ‘‘child with a potentially severe disability’’ means,

23 with respect to a demonstration project, an indi24 vidual who—

25 (A) has not attained 21 years of age;
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1 (B) has a physical or mental condition,

2 disease, disorder (including a congenital birth

3 defect or a metabolic condition), injury, or de4 velopmental disability that was incurred before

5 the individual attained such age; and

6 (C) is reasonably expected, but for the re7 ceipt of medical assistance under the State

8 medicaid plan, to reach the level of disability

9 defined under section 1614(a)(3) of the Social

10 Security Act (42 U.S.C. 1382c(a)(3)), (deter11 mined without regard to the reference to age

12 in subparagraph (C) of that section).

13 (2) EXCEPTION.—Such term does not include

14 an individual who would be considered disabled

15 under section 1614(a)(3)(C) of the Social Security

16 Act (42 U.S.C. 1382c(a)(3)(C)) (determined without

17 regard to the reference to age in that section).

18 (c) APPROVAL OF DEMONSTRATION PROJECTS.—

19 (1) IN GENERAL.—Subject to paragraph (3),

20 the Secretary shall approve applications under sub21 section (a) that meet the requirements of paragraph

22 (2) and such additional terms and conditions as the

23 Secretary may require. The Secretary may waive the

24 requirement of section 1902(a)(1) of the Social Se-
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1 curity Act (42 U.S.C. 1396a(a)(1)) to allow for sub2 State demonstrations.

3 (2) TERMS AND CONDITIONS OF DEMONSTRA4 TION PROJECTS.—The Secretary may not approve a

5 demonstration project under this section unless the

6 State provides assurances satisfactory to the Sec7 retary that the following conditions are or will be

8 met:

9 (A) INDEPENDENT EVALUATION.—The

10 State provides for an independent evaluation of

11 the project to be conducted during fiscal year

12 2006.

13 (B) CONSULTATION FOR DEVELOPMENT

14 OF CRITERIA.—The State consults with appro15 priate pediatric health professionals in estab16 lishing the criteria for determining whether a

17 child has a potentially severe disability.

18 (C) ANNUAL REPORT.—The State submits

19 an annual report to the Secretary (in a uniform

20 form and manner established by the Secretary)

21 on the use of funds provided under the grant

22 that includes the following:

23 (i) Enrollment and financial statistics

24 on—
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1 (I) the total number of children

2 with a potentially severe disability en3 rolled in the demonstration project,

4 disaggregated by disability;

5 (II) the services provided by cat6 egory or code and the cost of each

7 service so categorized or coded; and

8 (III) the number of children en9 rolled in the demonstration project

10 who also receive services through pri11 vate insurance.

12 (ii) With respect to the report sub13 mitted for fiscal year 2006, the results of

14 the independent evaluation conducted

15 under subparagraph (A).

16 (iii) Such additional information as

17 the Secretary may require.

18 (3) LIMITATIONS ON FEDERAL FUNDING.—

19 (A) APPROPRIATION.—

20 (i) IN GENERAL.—Out of any funds in

21 the Treasury not otherwise appropriated,

22 there is appropriated to carry out this

23 section—

24 (I) $16,666,000 for each of fiscal

25 years 2002 and 2003; and
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1 (II) $16,667,000 for each of fis2 cal years 2004 through 2007.

3 (ii) BUDGET AUTHORITY.—Clause (i)

4 constitutes budget authority in advance of

5 appropriations Acts and represents the ob6 ligation of the Federal Government to pro7 vide for the payment of the amounts ap8 propriated under clause (i).

9 (B) LIMITATION ON PAYMENTS.—In no

10 case may—

11 (i) the aggregate amount of payments

12 made by the Secretary to States under this

13 section exceed $100,000,000;

14 (ii) the aggregate amount of payments

15 made by the Secretary to States for ad16 ministrative expenses relating to the eval17 uations and annual reports required under

18 subparagraphs (A) and (C) of paragraph

19 (2) exceed $2,000,000 of such

20 $100,000,000; or

21 (iii) payments be provided by the Sec22 retary for a fiscal year after fiscal year

23 2010.

24 (C) FUNDS ALLOCATED TO STATES.—
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1 (i) IN GENERAL.—The Secretary shall

2 allocate funds to States based on their ap3 plications and the availability of funds. In

4 making such allocations, the Secretary

5 shall ensure an equitable distribution of

6 funds among States with large populations

7 and States with small populations.

8 (ii) AVAILABILITY.—Funds allocated

9 to a State under a grant made under this

10 section for a fiscal year shall remain avail11 able until expended.

12 (D) FUNDS NOT ALLOCATED TO STATES.—

13 Funds not allocated to States in the fiscal year

14 for which they are appropriated shall remain

15 available in succeeding fiscal years for alloca16 tion by the Secretary using the allocation for17 mula established under this section.

18 (E) PAYMENTS TO STATES.—The Sec19 retary shall pay to each State with a dem20 onstration project approved under this section,

21 from its allocation under subparagraph (C), an

22 amount for each quarter equal to the Federal

23 medical assistance percentage (as defined in

24 section 1905(b) of the Social Security Act (42

25 U.S.C. 1395d(b))) of expenditures in the quar-
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1 ter for medical assistance provided to children

2 with a potentially severe disability.

3 (d) RECOMMENDATION.—Not later than October 1,

4 2005, the Secretary shall submit a recommendation to the

5 Committee on Commerce of the House of Representatives

6 and the Committee on Finance of the Senate regarding

7 whether the demonstration project established under this

8 section should be continued after fiscal year 2007.

9 (e) STATE DEFINED.—In this section, the term

10 ‘‘State’’ has the meaning given such term for purposes of

11 title XIX of the Social Security Act (42 U.S.C. 1396 et

12 seq.).

13 SEC. 1115. DEVELOPMENT AND SUPPORT OF FAMILY-TO14 FAMILY HEALTH INFORMATION CENTERS.

15 Section 501 (42 U.S.C. 701) is amended by adding

16 at the end the following new subsection:

17 ‘‘(c)(1) In addition to amounts appropriated under

18 subsection (a) and retained under section 502(a)(1) for

19 the purpose of carrying out activities described in sub20 section (a)(2), there is appropriated to the Secretary, out

21 of any money in the Treasury not otherwise appropriated,

22 for the purpose of enabling the Secretary (through grants,

23 contracts, or otherwise) to provide for special projects of

24 regional and national significance for the development and

25 support of family-to-family health information centers de-
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1 scribed in paragraph (2), $10,000,000 for each of fiscal

2 years 2002 through 2007. Funds appropriated under this

3 paragraph shall remain available until expended.

4 ‘‘(2) The family-to-family health information centers

5 described in this paragraph are centers that—

6 ‘‘(A) assist families of children with disabilities

7 or special health care needs to make informed

8 choices about health care in order to promote good

9 treatment decisions, cost-effectiveness, and improved

10 health outcomes for such children;

11 ‘‘(B) provide information regarding the health

12 care needs of, and resources available for, children

13 with disabilities or special health care needs;

14 ‘‘(C) identify successful health delivery models

15 for such children;

16 ‘‘(D) develop with representatives of health care

17 providers, managed care organizations, health care

18 purchasers, and appropriate State agencies a model

19 for collaboration between families of such children

20 and health professionals;

21 ‘‘(E) provide training and guidance regarding

22 caring for such children;

23 ‘‘(F) conduct outreach activities to the families

24 of such children, health professionals, schools, and

25 other appropriate entities and individuals; and
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1 ‘‘(G) are staffed by families of children with

2 disabilities or special health care needs who have ex3 pertise in Federal and State public and private

4 health care systems and health professionals.

5 ‘‘(3) The provisions of this title that are applicable

6 to the funds made available to the Secretary under section

7 502(a)(1) apply in the same manner to funds made avail8 able to the Secretary under paragraph (1).’’.

9 SEC. 1116. RESTORATION OF MEDICAID ELIGIBILITY FOR

10 CERTAIN SSI BENEFICIARIES.

11 (a) IN GENERAL.—Section 1902(a)(10)(A)(i)(II) (42

12 U.S.C. 1396a(a)(10)(A)(i)(II)) is amended—

13 (1) by inserting ‘‘(aa)’’ after ‘‘(II)’’;

14 (2) by striking ‘‘or who are’’ and inserting

15 ‘‘, (bb) who are’’; and

16 (3) by inserting before the comma at the end

17 the following: ‘‘, or (cc) who are under 21 years of

18 age and with respect to whom supplemental security

19 income benefits would be paid under title XVI if

20 subparagraphs (A) and (B) of section 1611(c)(7)

21 were applied without regard to the phrase ‘the first

22 day of the month following’ ’’.

23 (b) EFFECTIVE DATE.—The amendments made by

24 subsection (a) shall apply to medical assistance for items

25 and services furnished on or after the first day of the first
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1 calendar quarter that begins after the date of enactment

2 of this Act.

3 CHAPTER 2—ENROLLMENT

4 IMPROVEMENTS

5 SEC. 1121. APPLICATION OF SIMPLIFIED TITLE XXI PROCE6 DURES UNDER THE MEDICAID PROGRAM.

7 (a) APPLICATION UNDER MEDICAID.—

8 (1) IN GENERAL.—Section 1902(l) of the Social

9 Security Act (42 U.S.C. 1396a(l)) is amended—

10 (A) in paragraph (3), by inserting ‘‘subject

11 to paragraph (5)’’, after ‘‘Notwithstanding sub12 section (a)(17),’’; and

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

14 ‘‘(5) With respect to determining the eligibility of in15 dividuals under 19 years of age (or such higher age as

16 the State has elected under paragraph (1)(D)) for medical

17 assistance under subsection (a)(10)(A) notwithstanding

18 any other provision of this title, if the State has estab19 lished a State child health plan under title XXI—

20 ‘‘(A) the State may not apply a resource stand21 ard;

22 ‘‘(B) the State shall use the same simplified eli23 gibility form (that in no case shall be more than 4

24 pages and that permits application other than in
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1 person) as the State uses under such State child

2 health plan with respect to such individuals;

3 ‘‘(C) the State shall provide for initial eligibility

4 determinations and redeterminations of eligibility

5 using the same verification policies, forms, and fre6 quency as the State uses for such purposes under

7 such State child health plan with respect to such in8 dividuals;

9 ‘‘(D) the State shall not require a face-to-face

10 interview for purposes of initial eligibility determina11 tions and redeterminations and shall allow for self12 declaration of initial eligibility and recertification in13 formation; and

14 ‘‘(E) the State shall coordinate the enrollment

15 of children under this title and title XXI with the

16 enrollment of such children and their families in

17 other Federal means-tested public assistance pro18 grams, including child care programs, free or re19 duced price lunches or breakfasts under the Richard

20 B. Russell National School Lunch Act (42 U.S.C.

21 1751 et seq.), assistance under the special supple22 mental nutrition program for women, infants, and

23 children (WIC) under section 17 of the Child Nutri24 tion Act of 1966 (42 U.S.C. 1786), and benefits

25 under the Food Stamp Act of 1977.’’.
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1 (2) EFFECTIVE DATE.—The amendments made

2 by paragraph (1) apply to determinations of eligi3 bility made on or after the date that is 1 year after

4 the date of the enactment of this Act, whether or

5 not regulations implementing such amendments have

6 been issued.

7 (3) DEVELOPMENT OF UNIFORM APPLICA8 TION.—Not later than 1 year after the date of en9 actment of this Act, the Secretary of Health and

10 Human Services, in consultation with States and or11 ganizations with expertise in outreach to, and enroll12 ment of, children without health insurance, shall de13 velop a uniform application that meets the require14 ments of section 1902(l)(5) of the Social Security

15 Act, as added by paragraph (1), and may be used

16 in any State.

17 (b) PRESUMPTIVE ELIGIBILITY.—

18 (1) IN GENERAL.—Section 1920A(b)(3)(A)(i) of

19 the Social Security Act (42 U.S.C. 1396r–

20 1a(b)(3)(A)(i)), as amended by section 708(a) of the

21 Medicare, Medicaid, and SCHIP Benefits Improve22 ment and Protection Act of 2000 (as enacted into

23 law by section 1(a)(6) of Public Law 106–554), is

24 amended by inserting ‘‘a child care resource and re-
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1 ferral agency,’’ after ‘‘a State or tribal child support

2 enforcement agency,’’.

3 (2) APPLICATION TO PRESUMPTIVE ELIGIBILITY

4 FOR PREGNANT WOMEN UNDER MEDICAID.—Section

5 1920(b) of the Social Security Act (42 U.S.C.

6 1396r–1(b)) is amended by adding at the end after

7 and below paragraph (2) the following flush sen8 tence:

9 ‘‘The term ‘qualified provider’ includes a qualified entity

10 as defined in section 1920A(b)(3).’’.

11 (3) APPLICATION UNDER TITLE XXI.—

12 (A) IN GENERAL.—Section 2107(e)(1)(D)

13 of the Social Security Act (42 U.S.C.

14 1397gg(e)(1)), as added by section 803 of the

15 Medicare, Medicaid, and SCHIP Benefits Im16 provement and Protection Act of 2000 (as en17 acted into law by section 1(a)(6) of Public Law

18 106–554), is amended to read as follows:

19 ‘‘(D) Sections 1920 and 1920A (relating to

20 presumptive eligibility).’’.

21 (B) EXCEPTION FROM LIMITATION ON AD22 MINISTRATIVE EXPENSES.—Section 2105(c)(2)

23 of such Act (42 U.S.C. 1397ee(c)(2)) is amend24 ed by adding at the end the following:
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1 ‘‘(C) EXCEPTION FOR PRESUMPTIVE ELI2 GIBILITY EXPENDITURES.—The limitation

3 under subparagraph (A) on expenditures shall

4 not apply to expenditures attributable to the

5 application of section 1920 or 1920A (pursuant

6 to section 2107(e)(1)(D)), regardless of whether

7 the child is determined to be ineligible for the

8 program under this title or title XIX.’’.

9 (C) CONFORMING ELIMINATION OF RE10 SOURCE TEST.—Section 2102(b)(1)(A) of such

11 Act (42 U.S.C. 1397bb(b)(1)(A)) is amended—

12 (i) by striking ‘‘and resources (includ13 ing any standards relating to spenddowns

14 and disposition of resources)’’; and

15 (ii) by adding at the end the fol16 lowing: ‘‘Effective 1 year after the date of

17 the enactment of the Leave No Child Be18 hind Act of 2001, such standards may not

19 include the application of a resource stand20 ard or test.’’.

21 (c) AUTOMATIC REASSESSMENT OF ELIGIBILITY FOR

22 TITLE XXI AND MEDICAID BENEFITS FOR CHILDREN

23 LOSING MEDICAID OR TITLE XXI ELIGIBILITY.—
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1 (1) LOSS OF MEDICAID ELIGIBILITY.—Section

2 1902(a) of the Social Security Act (42 U.S.C.

3 1396a(a)) is amended—

4 (A) by striking the period at the end of

5 paragraph (65) and inserting ‘‘; and’’; and

6 (B) by inserting after paragraph (65) the

7 following:

8 ‘‘(66) provide, in the case of a State with a

9 State child health plan under title XXI, that before

10 medical assistance to a child (or a parent of a child)

11 is discontinued under this title, a determination of

12 whether the child (or parent) is eligible for benefits

13 under title XXI shall be made and, if determined to

14 be so eligible, the child (or parent) shall be auto15 matically enrolled in the program under such title

16 without the need for a new application.’’.

17 (2) LOSS OF TITLE XXI ELIGIBILITY.—Section

18 2102(b)(3) (42 U.S.C. 1397bb(b)(3)) is amended by

19 redesignating subparagraphs (D) and (E) as sub20 paragraphs (E) and (F), respectively, and by insert21 ing after subparagraph (C) the following:

22 ‘‘(D) that before health assistance to a

23 child (or a parent of a child) is discontinued

24 under this title, a determination of whether the

25 child (or parent) is eligible for benefits under
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1 title XIX is made and, if determined to be so

2 eligible, the child (or parent) is automatically

3 enrolled in the program under such title with4 out the need for a new application;’’.

5 (3) EFFECTIVE DATE.—The amendments made

6 by paragraphs (1) and (2) apply to individuals who

7 lose eligibility under the medicaid program under

8 title XIX, or under a State child health insurance

9 plan under title XXI, respectively, of the Social Se10 curity Act on or after the date that is 60 days after

11 the date of the enactment of this Act.

12 (d) PROVISION OF MEDICAID AND SCHIP APPLICA13 TIONS AND INFORMATION UNDER THE SCHOOL LUNCH

14 PROGRAM.—Section 9(b)(2)(B) of the Richard B. Russell

15 National School Lunch Act (42 U.S.C. 1758(b)(2)(B)) is

16 amended—

17 (1) by striking ‘‘(B) Applications’’ and inserting

18 ‘‘(B)(i) Applications’’; and

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

20 ‘‘(ii)(I) Applications for free and reduced price

21 lunches that are distributed pursuant to clause (i) to par22 ents or guardians of children in attendance at schools par23 ticipating in the school lunch program under this Act shall

24 also contain information on the availability of medical as25 sistance under title XIX of the Social Security Act (42
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1 U.S.C. 1396 et seq.) (commonly referred to as the ‘med2 icaid program’) and of child health assistance under title

3 XXI of such Act (commonly referred to as ‘SCHIP’), in4 cluding information on how to obtain an application for

5 assistance under such program.

6 ‘‘(II) Information on the medicaid program and

7 SCHIP under subclause (I) shall be provided on a form

8 separate from the application form for free and reduced

9 price lunches under clause (i).’’.

10 (e) 12-MONTHS CONTINUOUS ELIGIBILITY.—

11 (1) MEDICAID.—Section 1902(e)(12) of the So12 cial Security Act (42 U.S.C. 1396a(e)(12)) is

13 amended—

14 (A) by striking ‘‘At the option of the State,

15 the plan may’’ and inserting ‘‘The plan shall’’;

16 (B) by striking ‘‘an age specified by the

17 State (not to exceed 19 years of age)’’ and in18 serting ‘‘19 years of age (or such higher age as

19 the State has elected under subsection

20 (l)(1)(D)) or who is eligible for medical assist21 ance as the parent of such a child’’;

22 (C) in subparagraph (A), by striking ‘‘a

23 period (not to exceed 12 months) ’’ and insert24 ing ‘‘the 12-month period beginning on the

25 date’’; and
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1 (D) in subparagraph (B), by inserting ‘‘or,

2 in the case of a parent of a child, the child)’’

3 after ‘‘the individual’’.

4 (2) TITLE XXI.—Section 2101(b)(2) of such

5 Act (42 U.S.C. 1397aa(b)(2)) is amended by adding

6 at the end the following: ‘‘Such methods shall pro7 vide 12-months continuous eligibility for children

8 and parents under this title in the same manner as

9 section 1902(e)(12) provides 12-months continuous

10 eligibility for individuals described in such section

11 under title XIX.’’.

12 SEC. 1122. AUTOMATIC ENROLLMENT OF CHILDREN BORN

13 TO TITLE XXI PARENTS.

14 Section 2102(b)(1) of the Social Security Act (42

15 U.S.C. 1397bb(b)(1)) is amended by adding at the end

16 the following new subparagraph:

17 ‘‘(C) AUTOMATIC ELIGIBILITY OF CHIL18 DREN BORN TO APARENT BEING PROVIDED

19 FAMILYCARE.—Such eligibility standards shall

20 provide for automatic coverage of a child born

21 to an individual who is provided assistance

22 under this title in the same manner as medical

23 assistance would be provided under section

24 1902(e)(4) to a child described in such sec25 tion.’’.
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1 CHAPTER 3—EFFECTIVE DATE

2 SEC. 1131. EFFECTIVE DATE.

3 (a) IN GENERAL.—Subject to subsection (b), the

4 amendments made by this subtitle take effect on the date

5 of enactment of this Act.

6 (b) EXTENSION OF EFFECTIVE DATE FOR STATE

7 LAW AMENDMENT.—In the case of a State plan under

8 title XIX or XXI of the Social Security Act which the Sec9 retary of Health and Human Services determines requires

10 State legislation in order for the plan to meet the addi11 tional requirements imposed by the amendments made by

12 this subtitle, such State plan shall not be regarded as fail13 ing to comply with such requirements solely on the basis

14 of its failure to meet the additional requirements before

15 the first day of the first calendar quarter beginning after

16 the close of the first regular session of the State legisla17 ture that begins after the date of enactment of this Act.

18 For purposes of the previous sentence, in the case of a

19 State that has a 2-year legislative session, each year of

20 the session is considered to be a separate regular session

21 of the State legislature.
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1 Subtitle C—Improving Access to

2 Care

3 CHAPTER 1—COMMISSION

4 SEC. 1201. COMMISSION ON CHILDREN’S ACCESS TO CARE.

5 (a) ESTABLISHMENT.—There is established a Com6 mission on Children’s Access to Care (in this section re7 ferred to as the ‘‘Commission’’).

8 (b) MEMBERSHIP.—

9 (1) COMPOSITION.—The Commission shall be

10 composed of 11 members of whom—

11 (A) 3 members shall be appointed by the

12 President;

13 (B) 2 members shall be appointed by the

14 Majority Leader of the Senate;

15 (C) 2 members shall be appointed by the

16 Speaker of the House of Representatives;

17 (D) 2 members shall be appointed by the

18 Minority Leader of the Senate; and

19 (E) 2 members shall be appointed by the

20 Minority Leader of the House of Representa21 tives.

22 (2) QUALIFICATIONS.—Members of the Com23 mission shall be appointed from among representa24 tives of children’s advocacy groups and children’s

25 health care providers.
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1 (3) TIMING OF APPOINTMENTS.—Members of

2 the Commission shall be appointed not later than 6

3 months after the date of enactment of this Act.

4 (4) CHAIR.—

5 (A) IN GENERAL.—The Commission shall

6 select a Chair from among its members.

7 (B) DUTIES.—The Chair of the Commis8 sion shall be responsible for—

9 (i) the assignment of duties and re10 sponsibilities among staff personnel and

11 their continuing supervision; and

12 (ii) the use and expenditure of funds

13 available to the Commission.

14 (5) VACANCIES.—Any vacancy on the Commis15 sion shall be filled in the same manner as the origi16 nal incumbent was appointed.

17 (6) TRAVEL EXPENSES.—The members of the

18 Commission shall be allowed travel expenses, includ19 ing per diem in lieu of subsistence, at rates author20 ized for employees of agencies under subchapter I of

21 chapter 57 of title 5, United States Code, while

22 away from their homes or regular places of business

23 in the performance of services for the Commission.

24 (c) MEETINGS.—
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1 (1) INITIAL MEETING.—Not later than 30 days

2 after the date on which all members of the Commis3 sion have been appointed, the Commission shall hold

4 its first meeting.

5 (2) TIME.—The Commission shall meet at the

6 call of the Chair.

7 (3) QUORUM.—A majority of the members of

8 the Commission shall constitute a quorum, but a

9 lesser number of members may hold hearings.

10 (d) DUTIES.—

11 (1) IN GENERAL.—The Commission shall con12 duct annual studies of children’s access to health

13 care.

14 (2) MATTERS STUDIED.—Each year the Com15 mission shall study—

16 (A) the impact of payment rates under the

17 medicaid and the State children’s health insur18 ance programs on access to health care and

19 provider participation in the delivery of health

20 care to children;

21 (B) the access to health care of children

22 with special health care needs, particularly

23 those in managed care delivery systems;

24 (C) the access to, and delivery of, preven25 tive health care to children;
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1 (D) Federal and State government efforts

2 to collect data, report, evaluate, and monitor

3 children’s access to health care, including Fed4 eral and State government deficiencies in as5 sessing children’s access to health care;

6 (E) the needs for supplemental and ena7 bling services to improve children’s access to

8 health care, including translation and transpor9 tation services; and

10 (F) other factors that impact the ability of

11 families with children to gain access to health

12 care services.

13 (3) REPORTS.—

14 (A) IN GENERAL.—Not later than 1 year

15 after the date of the initial meeting of the Com16 mission, and annually thereafter, the Commis17 sion shall submit to Congress and the President

18 a report.

19 (B) CONTENTS.—Each report shall contain

20 the results of the study conducted for that year

21 and the Commission’s recommendations to im22 prove children’s—

23 (i) health status; and

24 (ii) access to health care.

25 (e) POWERS OF THE COMMISSION.—
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1 (1) HEARINGS.—The Commission may hold

2 hearings, sit and act at times and places, take testi3 mony, and receive evidence as the Commission con4 siders advisable to carry out this section.

5 (2) INFORMATION FROM FEDERAL AGENCIES.—

6 The Commission may secure directly from any Fed7 eral department or agency such information as the

8 Commission considers necessary to carry out this

9 section. Upon request of the Chair of the Commis10 sion, the head of such department or agency shall

11 furnish such information to the Commission.

12 (3) POSTAL SERVICES.—The Commission may

13 use the United States mails in the same manner and

14 under the same conditions as other departments and

15 agencies of the Federal Government.

16 (4) GIFTS.—The Commission may accept, use,

17 and dispose of gifts or donations of services or prop18 erty.

19 (f) STAFF AND ADMINISTRATIVE SUPPORT.—

20 (1) IN GENERAL.—The Chair of the Commis21 sion may, without regard to the civil service laws

22 and regulations, appoint and terminate an executive

23 director and such other additional personnel as may

24 be necessary to enable the Commission to perform
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1 its duties. The employment of an executive director

2 shall be subject to confirmation by the Commission.

3 (2) COMPENSATION.—The Chair of the Com4 mission may fix the compensation of the executive

5 director and other personnel without regard to chap6 ter 51 and subchapter III of chapter 53 of title 5,

7 United States Code, relating to classification of posi8 tions and General Schedule pay rates, except that

9 the rate of pay for the executive director and other

10 personnel may not exceed the rate payable for level

11 V of the Executive Schedule under section 5316 of

12 title 5, United States Code.

13 (3) DETAIL OF GOVERNMENT EMPLOYEES.—

14 Any Federal Government employee may be detailed

15 to the Commission without reimbursement, and such

16 detail shall be without interruption or loss of civil

17 service status or privilege.

18 (4) PROCUREMENT OF TEMPORARY AND INTER19 MITTENT SERVICES.—The Chair of the Commission

20 may procure temporary and intermittent services

21 under section 3109(b) of title 5, United States Code,

22 at rates for individuals which do not exceed the daily

23 equivalent of the annual rate of basic pay prescribed

24 for level V of the Executive Schedule under section

25 5316 of title 5, United States Code.
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1 CHAPTER 2—CHILDREN’S HEALTH

2 INSURANCE ACCOUNTABILITY

3 SEC. 1211. SHORT TITLE.

4 This chapter may be cited as the ‘‘Children’s Health

5 Insurance Accountability Act of 2001’’.

6 SEC. 1212. FINDINGS.

7 Congress makes the following findings:

8 (1) Children have health and development needs

9 that are markedly different than those for the adult

10 population.

11 (2) Children experience complex and continuing

12 changes during the continuum from birth to adult13 hood in which appropriate health care is essential

14 for optimal development.

15 (3) The vast majority of work done on develop16 ment methods to assess the effectiveness of health

17 care services and the impact of medical care on pa18 tient outcomes and patient satisfaction has been fo19 cused on adults.

20 (4) Health outcome measures need to be age,

21 gender, and developmentally appropriate to be useful

22 to families and children.

23 (5) Costly disorders of adulthood often have

24 their origins in childhood, making early access to ef25 fective health services in childhood essential.
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1 (6) More than 200 chronic conditions, disabil2 ities and diseases affect children, including asthma,

3 diabetes, sickle cell anemia, spina bifida, epilepsy,

4 autism, cerebral palsy, congenital heart disease,

5 mental retardation, and cystic fibrosis. These chil6 dren need the services of specialists who have in

7 depth knowledge about their particular condition.

8 (7) Children’s patterns of illness, disability and

9 injury differ dramatically from adults.

10 SEC. 1213. AMENDMENTS TO THE PUBLIC HEALTH SERVICE

11 ACT.

12 (a) PATIENT PROTECTION STANDARDS.—Title

13 XXVII of the Public Health Service Act (42 U.S.C. 300gg

14 et seq.) is amended—

15 (1) by redesignating part C as part D; and

16 (2) by inserting after part B the following new

17 part:

18 ‘‘PART C—CHILDREN’S HEALTH PROTECTION

19 STANDARDS

20 ‘‘SEC. 2770. ACCESS TO CARE.

21 ‘‘(a) ACCESS TO APPROPRIATE PRIMARY CARE PRO22 VIDERS.—

23 ‘‘(1) IN GENERAL.—If a group health plan, or

24 a health insurance issuer in connection with the pro25 vision of health insurance coverage, requires or pro-
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1 vides for an enrollee to designate a participating pri2 mary care provider for a child of such enrollee—

3 ‘‘(A) the plan or issuer shall permit the en4 rollee to designate a physician who specializes

5 in pediatrics as the child’s primary care pro6 vider; and

7 ‘‘(B) if such an enrollee has not designated

8 such a provider for the child, the plan or issuer

9 shall consider appropriate pediatric expertise in

10 mandatorily assigning such an enrollee to a pri11 mary care provider.

12 ‘‘(2) CONSTRUCTION.—Nothing in paragraph

13 (1) shall waive any requirements of coverage relating

14 to medical necessity or appropriateness with respect

15 to coverage of services.

16 ‘‘(b) ACCESS TO PEDIATRIC SPECIALTY SERVICES.—

17 ‘‘(1) REFERRAL TO SPECIALTY CARE FOR CHIL18 DREN REQUIRING TREATMENT BY SPECIALISTS.—

19 ‘‘(A) IN GENERAL.—In the case of a child

20 who is covered under a group health plan, or

21 health insurance coverage offered by a health

22 insurance issuer and who has a mental or phys23 ical condition, disability, or disease of sufficient

24 seriousness and complexity to require diagnosis,

25 evaluation or treatment by a specialist, the plan
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1 or issuer shall make or provide for a referral

2 to a specialist who has extensive experience or

3 training, and is available and accessible to pro4 vide the treatment for such condition or dis5 ease, including the choice of a nonprimary care

6 physician specialist participating in the plan or

7 a referral to a nonparticipating provider as pro8 vided for under subparagraph (D) if such a pro9 vider is not available within the plan.

10 ‘‘(B) SPECIALIST DEFINED.—For purposes

11 of this subsection, the term ‘specialist’ means,

12 with respect to a condition, disability, or dis13 ease, a health care practitioner, facility, or cen14 ter (such as a center of excellence) that has ex15 tensive pediatric expertise through appropriate

16 training or experience to provide high quality

17 care in treating the condition, disability or dis18 ease.

19 ‘‘(C) REFERRALS TO PARTICIPATING PRO20 VIDERS.—A plan or issuer is not required under

21 subparagraph (A) to provide for a referral to a

22 specialist that is not a participating provider,

23 unless the plan or issuer does not have an ap24 propriate specialist that is available and acces25 sible to treat the enrollee’s condition and that
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1 is a participating provider with respect to such

2 treatment.

3 ‘‘(D) TREATMENT OF NONPARTICIPATING

4 PROVIDERS.—If a plan or issuer refers a child

5 enrollee to a nonparticipating specialist, services

6 provided pursuant to the referral shall be pro7 vided at no additional cost to the enrollee be8 yond what the enrollee would otherwise pay for

9 services received by such a specialist that is a

10 participating provider.

11 ‘‘(E) SPECIALISTS AS PRIMARY CARE PRO12 VIDERS.—A plan or issuer shall have in place a

13 procedure under which a child who is covered

14 under health insurance coverage provided by

15 the plan or issuer who has a condition or dis16 ease that requires specialized medical care over

17 a prolonged period of time shall receive a refer18 ral to a pediatric specialist affiliated with the

19 plan, or if not available within the plan, to a

20 nonparticipating provider for such condition

21 and such specialist may be responsible for and

22 capable of providing and coordinating the

23 child’s primary and specialty care.

24 ‘‘(2) STANDING REFERRALS.—
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1 ‘‘(A) IN GENERAL.—A group health plan,

2 or health insurance issuer in connection with

3 the provision of health insurance coverage of a

4 child, shall have a procedure by which a child

5 who has a condition, disability, or disease that

6 requires ongoing care from a specialist may re7 quest and obtain a standing referral to such

8 specialist for treatment of such condition. If the

9 primary care provider in consultation with the

10 medical director of the plan or issuer and the

11 specialist (if any), determines that such a

12 standing referral is appropriate, the plan or

13 issuer shall authorize such a referral to such a

14 specialist. Such standing referral shall be con15 sistent with a treatment plan.

16 ‘‘(B) TREATMENT PLANS.—A group health

17 plan, or health insurance issuer, with the par18 ticipation of the family and the health care pro19 viders of the child, shall develop a treatment

20 plan for a child who requires ongoing care that

21 covers a specified period of time (but in no

22 event less than a 6-month period). Services pro23 vided for under the treatment plan shall not re24 quire additional approvals or referrals through

25 a gatekeeper.
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1 ‘‘(C) TERMS OF REFERRAL.—The provi2 sions of subparagraph (C) and (D) of para3 graph (1) shall apply with respect to referrals

4 under subparagraph (A) in the same manner as

5 they apply to referrals under paragraph (1)(A).

6 ‘‘(c) ADEQUACY OF ACCESS.—For purposes of sub7 sections (a) and (b), a group health plan or health insur8 ance issuer in connection with health insurance coverage

9 shall ensure that a sufficient number, distribution, and va10 riety of qualified participating health care providers are

11 available so as to ensure that all covered health care serv12 ices, including specialty services, are available and acces13 sible to all enrollees in a timely manner.

14 ‘‘(d) COVERAGE OF EMERGENCY SERVICES.—

15 ‘‘(1) IN GENERAL.—If a group health plan, or

16 health insurance coverage offered by a health insur17 ance issuer, provides any benefits for children with

18 respect to emergency services (as defined in para19 graph (2)(A)), the plan or issuer shall cover emer20 gency services furnished under the plan or

21 coverage—

22 ‘‘(A) without the need for any prior au23 thorization determination;

24 ‘‘(B) whether or not the physician or pro25 vider furnishing such services is a participating
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1 physician or provider with respect to such serv2 ices; and

3 ‘‘(C) without regard to any other term or

4 condition of such coverage (other than exclusion

5 of benefits, or an affiliation or waiting period,

6 permitted under section 2701).

7 ‘‘(2) DEFINITIONS.—In this subsection:

8 ‘‘(A) EMERGENCY MEDICAL CONDITION

9 BASED ON PRUDENT LAYPERSON STANDARD.—

10 The term ‘emergency medical condition’ means

11 a medical condition manifesting itself by acute

12 symptoms of sufficient severity (including se13 vere pain) such that a prudent layperson, who

14 possesses an average knowledge of health and

15 medicine, could reasonably expect the absence

16 of immediate medical attention to result in a

17 condition described in clause (i), (ii), or (iii) of

18 section 1867(e)(1)(A) of the Social Security

19 Act.

20 ‘‘(B) EMERGENCY SERVICES.—The term

21 ‘emergency services’ means—

22 ‘‘(i) a medical screening examination

23 (as required under section 1867 of the So24 cial Security Act) that is within the capa25 bility of the emergency department of a
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1 hospital, including ancillary services rou2 tinely available to the emergency depart3 ment to evaluate an emergency medical

4 condition (as defined in subparagraph

5 (A)); and

6 ‘‘(ii) within the capabilities of the

7 staff and facilities available at the hospital,

8 such further medical examination and

9 treatment as are required under section

10 1867 of such Act to stabilize the patient.

11 ‘‘(3) REIMBURSEMENT FOR MAINTENANCE

12 CARE AND POST-STABILIZATION CARE.—A group

13 health plan, and health insurance issuer offering

14 health insurance coverage, shall provide, in covering

15 services other than emergency services, for reim16 bursement with respect to services which are other17 wise covered and which are provided to an enrollee

18 other than through the plan or issuer if the services

19 are maintenance care or post-stabilization care cov20 ered under the guidelines established under section

21 1852(d) of the Social Security Act (relating to pro22 moting efficient and timely coordination of appro23 priate maintenance and post-stabilization care of an

24 enrollee after an enrollee has been determined to be

25 stable).
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1 ‘‘(e) PROHIBITION ON FINANCIAL BARRIERS.—A

2 health insurance issuer in connection with the provision

3 of health insurance coverage may not impose any cost

4 sharing for pediatric specialty services provided under

5 such coverage to enrollee children in amounts that exceed

6 the cost-sharing required for other specialty care under

7 such coverage.

8 ‘‘(f) CHILDREN WITH SPECIAL HEALTH CARE

9 NEEDS.—A health insurance issuer in connection with the

10 provision of health insurance coverage shall ensure that

11 such coverage provides special consideration for the provi12 sion of services to enrollee children with special health care

13 needs. Appropriate procedures shall be implemented to

14 provide care for children with special health care needs.

15 The development of such procedures shall include partici16 pation by the families of such children.

17 ‘‘(g) DEFINITIONS.—In this part:

18 ‘‘(1) CHILD.—The term ‘child’ means an indi19 vidual who is under 19 years of age.

20 ‘‘(2) CHILDREN WITH SPECIAL HEALTH CARE

21 NEEDS.—The term ‘children with special health care

22 needs’ means those children who have or are at ele23 vated risk for chronic physical, developmental, be24 havioral or emotional conditions and who also re-
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1 quire health and related services of a type and

2 amount not usually required by children.

3 ‘‘SEC. 2771. CONTINUITY OF CARE.

4 ‘‘(a) IN GENERAL.—If a contract between a health

5 insurance issuer, in connection with the provision of health

6 insurance coverage, and a health care provider is termi7 nated (other than by the issuer for failure to meet applica8 ble quality standards or for fraud) and an enrollee is un9 dergoing a course of treatment from the provider at the

10 time of such termination, the issuer shall—

11 ‘‘(1) notify the enrollee of such termination,

12 and

13 ‘‘(2) subject to subsection (c), permit the en14 rollee to continue the course of treatment with the

15 provider during a transitional period (provided under

16 subsection (b)).

17 ‘‘(b) TRANSITIONAL PERIOD.—

18 ‘‘(1) IN GENERAL.—Except as provided in para19 graphs (2) through (4), the transitional period under

20 this subsection shall extend for at least—

21 ‘‘(A) 60 days from the date of the notice

22 to the enrollee of the provider’s termination in

23 the case of a primary care provider, or

24 ‘‘(B) 120 days from such date in the case

25 of another provider.
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1 ‘‘(2) INSTITUTIONAL CARE.—The transitional

2 period under this subsection for institutional or in3 patient care from a provider shall extend until the

4 discharge or termination of the period of institu5 tionalization and shall include reasonable follow-up

6 care related to the institutionalization and shall also

7 include institutional care scheduled prior to the date

8 of termination of the provider status.

9 ‘‘(3) PREGNANCY.—If—

10 ‘‘(A) an enrollee has entered the second

11 trimester of pregnancy at the time of a pro12 vider’s termination of participation, and

13 ‘‘(B) the provider was treating the preg14 nancy before date of the termination,

15 the transitional period under this subsection with re16 spect to provider’s treatment of the pregnancy shall

17 extend through the provision of post-partum care di18 rectly related to the delivery.

19 ‘‘(4) TERMINAL ILLNESS.—

20 ‘‘(A) IN GENERAL.—If—

21 ‘‘(i) an enrollee was determined to be

22 terminally ill (as defined in subparagraph

23 (B)) at the time of a provider’s termi24 nation of participation, and
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1 ‘‘(ii) the provider was treating the ter2 minal illness before the date of termi3 nation,

4 the transitional period under this subsection

5 shall extend for the remainder of the enrollee’s

6 life for care directly related to the treatment of

7 the terminal illness.

8 ‘‘(B) DEFINITION.—In subparagraph (A),

9 an enrollee is considered to be ‘terminally ill’ if

10 the enrollee has a medical prognosis that the

11 enrollee’s life expectancy is 6 months or less.

12 ‘‘(c) PERMISSIBLE TERMS AND CONDITIONS.—An

13 issuer may condition coverage of continued treatment by

14 a provider under subsection (a)(2) upon the provider

15 agreeing to the following terms and conditions:

16 ‘‘(1) The provider agrees to continue to accept

17 reimbursement from the issuer at the rates applica18 ble prior to the start of the transitional period as

19 payment in full.

20 ‘‘(2) The provider agrees to adhere to the

21 issuer’s quality assurance standards and to provide

22 to the issuer necessary medical information related

23 to the care provided.

24 ‘‘(3) The provider agrees otherwise to adhere to

25 the issuer’s policies and procedures, including proce-
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1 dures regarding referrals and obtaining prior au2 thorization and providing services pursuant to a

3 treatment plan approved by the issuer.

4 ‘‘SEC. 2772. CONTINUOUS QUALITY IMPROVEMENT.

5 ‘‘(a) IN GENERAL.—A health insurance issuer that

6 offers health insurance coverage for children shall estab7 lish and maintain an ongoing, internal quality assurance

8 program that at a minimum meets the requirements of

9 subsection (b).

10 ‘‘(b) REQUIREMENTS.—The internal quality assur11 ance program of an issuer under subsection (a) shall—

12 ‘‘(1) establish and measure a set of health care,

13 functional assessments, structure, processes and out14 comes, and quality indicators that are unique to chil15 dren and based on nationally accepted standards or

16 guidelines of care;

17 ‘‘(2) maintain written protocols consistent with

18 recognized clinical guidelines or current consensus

19 on the pediatric field, to be used for purposes of in20 ternal utilization review, with periodic updating and

21 evaluation by pediatric specialists to determine effec22 tiveness in controlling utilization;

23 ‘‘(3) provide for peer review by health care pro24 fessionals of the structure, processes, and outcomes
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1 related to the provision of health services, including

2 pediatric review of pediatric cases;

3 ‘‘(4) include in member satisfaction surveys,

4 questions on child and family satisfaction and expe5 rience of care, including care to children with special

6 needs;

7 ‘‘(5) monitor and evaluate the continuity of

8 care with respect to children;

9 ‘‘(6) include pediatric measures that are di10 rected at meeting the needs of at-risk children and

11 children with chronic conditions, disabilities and se12 vere illnesses;

13 ‘‘(7) maintain written guidelines to ensure the

14 availability of medications appropriate to children;

15 ‘‘(8) use focused studies of care received by

16 children with certain types of chronic conditions and

17 disabilities and focused studies of specialized services

18 used by children with chronic conditions and disabil19 ities;

20 ‘‘(9) monitor access to pediatric specialty serv21 ices; and

22 ‘‘(10) monitor child health care professional

23 satisfaction.

24 ‘‘(c) UTILIZATION REVIEW ACTIVITIES.—

25 ‘‘(1) COMPLIANCE WITH REQUIREMENTS.—
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1 ‘‘(A) IN GENERAL.—A health insurance

2 issuer that offers health insurance coverage for

3 children shall conduct utilization review activi4 ties in connection with the provision of such

5 coverage only in accordance with a utilization

6 review program that meets at a minimum the

7 requirements of this subsection.

8 ‘‘(B) DEFINITIONS.—In this subsection:

9 ‘‘(i) CLINICAL PEERS.—The term

10 ‘clinical peer’ means, with respect to a re11 view, a physician or other health care pro12 fessional who holds a non-restricted license

13 in a State and in the same or similar spe14 cialty as typically manages the pediatric

15 medical condition, procedure, or treatment

16 under review.

17 ‘‘(ii) HEALTH CARE PROFESSIONAL.—

18 The term ‘health care professional’ means

19 a physician or other health care practi20 tioner licensed or certified under State law

21 to provide health care services and who is

22 operating within the scope of such licen23 sure or certification.

24 ‘‘(iii) UTILIZATION REVIEW.—The

25 terms ‘utilization review’ and ‘utilization
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1 review activities’ mean procedures used to

2 monitor or evaluate the clinical necessity,

3 appropriateness, efficacy, or efficiency of

4 health care services, procedures or settings

5 for children, and includes prospective re6 view, concurrent review, second opinions,

7 case management, discharge planning, or

8 retrospective review specific to children.

9 ‘‘(2) WRITTEN POLICIES AND CRITERIA.—

10 ‘‘(A) WRITTEN POLICIES.—A utilization

11 review program shall be conducted consistent

12 with written policies and procedures that govern

13 all aspects of the program.

14 ‘‘(B) USE OF WRITTEN CRITERIA.—A utili15 zation review program shall utilize written clin16 ical review criteria specific to children and de17 veloped pursuant to the program with the input

18 of appropriate physicians, including pediatri19 cians, nonprimary care pediatric specialists, and

20 other child health professionals.

21 ‘‘(C) ADMINISTRATION BY HEALTH CARE

22 PROFESSIONALS.—A utilization review program

23 shall be administered by qualified health care

24 professionals, including health care profes-
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1 sionals with pediatric expertise who shall over2 see review decisions.

3 ‘‘(3) USE OF QUALIFIED, INDEPENDENT PER4 SONNEL.—

5 ‘‘(A) IN GENERAL.—A utilization review

6 program shall provide for the conduct of utiliza7 tion review activities only through personnel

8 who are qualified and, to the extent required,

9 who have received appropriate pediatric or child

10 health training in the conduct of such activities

11 under the program.

12 ‘‘(B) PEER REVIEW OF ADVERSE CLINICAL

13 DETERMINATIONS.—A utilization review pro14 gram shall provide that clinical peers shall

15 evaluate the clinical appropriateness of adverse

16 clinical determinations and divergent clinical

17 options.

18 ‘‘SEC. 2773. APPEALS AND GRIEVANCE MECHANISMS FOR

19 CHILDREN.

20 ‘‘(a) INTERNAL APPEALS PROCESS.—A health insur21 ance issuer in connection with the provision of health in22 surance coverage for children shall establish and maintain

23 a system to provide for the resolution of complaints and

24 appeals regarding all aspects of such coverage. Such a sys25 tem shall include an expedited procedure for appeals on
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1 behalf of a child enrollee in situations in which the time

2 frame of a standard appeal would jeopardize the life,

3 health, or development of the child.

4 ‘‘(b) EXTERNAL APPEALS PROCESS.—A health in5 surance issuer in connection with the provision of health

6 insurance coverage for children shall provide for an inde7 pendent external review process that meets the following

8 requirements:

9 ‘‘(1) External appeal activities shall be con10 ducted through clinical peers, a physician or other

11 health care professional who is appropriately

12 credentialed in pediatrics with the same or similar

13 specialty and typically manages the condition, proce14 dure, or treatment under review or appeal.

15 ‘‘(2) External appeal activities shall be con16 ducted through an entity that has sufficient pedi17 atric expertise, including subspecialty expertise, and

18 staffing to conduct external appeal activities on a

19 timely basis.

20 ‘‘(3) Such a review process shall include an ex21 pedited procedure for appeals on behalf of a child

22 enrollee in which the time frame of a standard ap23 peal would jeopardize the life, health, or development

24 of the child.
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1 ‘‘SEC. 2774. ACCOUNTABILITY THROUGH DISTRIBUTION OF

2 INFORMATION.

3 ‘‘(a) IN GENERAL.—A health insurance issuer in con4 nection with the provision of health insurance coverage for

5 children shall submit to enrollees (and prospective enroll6 ees), and make available to the public, in writing the

7 health-related information described in subsection (b).

8 ‘‘(b) INFORMATION.—The information to be provided

9 under subsection (a) shall include a report of measures

10 of structures, processes, and outcomes regarding each

11 health insurance product offered to participants and de12 pendents in a manner that is separate for both the adult

13 and child enrollees, using measures that are specific to

14 each group.’’.

15 (b) APPLICATION TO GROUP HEALTH INSURANCE

16 COVERAGE.—

17 (1) IN GENERAL.—Subpart 2 of part A of title

18 XXVII of the Public Health Service Act (42 U.S.C.

19 300gg-4 et seq.) is amended by adding at the end

20 the following new section:

21 ‘‘SEC. 2707. CHILDREN’S HEALTH ACCOUNTABILITY STAND22 ARDS.

23 ‘‘(a) IN GENERAL.—Each health insurance issuer

24 shall comply with children’s health accountability require25 ment under part C with respect to group health insurance

26 coverage it offers.
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1 ‘‘(b) ASSURING COORDINATION.—The Secretary of

2 Health and Human Services and the Secretary of Labor

3 shall ensure, through the execution of an interagency

4 memorandum of understanding between such Secretaries,

5 that—

6 ‘‘(1) regulations, rulings, and interpretations

7 issued by such Secretaries relating to the same mat8 ter over which such Secretaries have responsibility

9 under part C (and this section) and section 714 of

10 the Employee Retirement Income Security Act of

11 1974 are administered so as to have the same effect

12 at all times; and

13 ‘‘(2) coordination of policies relating to enforc14 ing the same requirements through such Secretaries

15 in order to have a coordinated enforcement strategy

16 that avoids duplication of enforcement efforts and

17 assigns priorities in enforcement.’’.

18 (2) CONFORMING AMENDMENT.—Section 2792

19 of the Public Health Service Act (42 U.S.C. 300gg–

20 92) is amended by inserting ‘‘and section 2707(b)’’

21 after ‘‘of 1996’’.

22 (c) APPLICATION TO INDIVIDUAL HEALTH INSUR23 ANCE COVERAGE.—Part B of title XXVII of the Public

24 Health Service Act (42 U.S.C. 300gg-41 et seq.) is amend-
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1 ed by inserting after section 2752 the following new sec2 tion:

3 ‘‘SEC. 2753. CHILDREN’S HEALTH ACCOUNTABILITY STAND4 ARDS.

5 ‘‘Each health insurance issuer shall comply with chil6 dren’s health accountability requirements under part C

7 with respect to individual health insurance coverage it of8 fers.’’.

9 (d) MODIFICATION OF PREEMPTION STANDARDS.—

10 (1) GROUP HEALTH INSURANCE COVERAGE.—

11 Section 2723 of the Public Health Service Act (42

12 U.S.C. 300gg–23) is amended—

13 (A) in subsection (a)(1), by striking ‘‘sub14 section (b)’’ and inserting ‘‘subsections (b) and

15 (c)’’;

16 (B) by redesignating subsections (c) and

17 (d) as subsections (d) and (e), respectively; and

18 (C) by inserting after subsection (b) the

19 following new subsection:

20 ‘‘(c) SPECIAL RULES IN CASE OF CHILDREN’S

21 HEALTH ACCOUNTABILITY REQUIREMENTS.—Subject to

22 subsection (a)(2), the provisions of section 2707 and part

23 C, and part D insofar as it applies to section 2707 or part

24 C, shall not prevent a State from establishing require25 ments relating to the subject matter of such provisions
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1 so long as such requirements are at least as stringent on

2 health insurance issuers as the requirements imposed

3 under such provisions.’’.

4 (2) INDIVIDUAL HEALTH INSURANCE COV5 ERAGE.—Section 2762 of the Public Health Service

6 Act (42 U.S.C. 300gg–62), as added by section

7 605(b)(3)(B) of Public Law 104–204, is amended—

8 (A) in subsection (a), by striking ‘‘sub9 section (b), nothing in this part’’ and inserting

10 ‘‘subsections (b) and (c)’’, and

11 (B) by adding at the end the following new

12 subsection:

13 ‘‘(c) SPECIAL RULES IN CASE OF CHILDREN’S

14 HEALTH ACCOUNTABILITY REQUIREMENTS.—Subject to

15 subsection (b), the provisions of section 2753 and part C,

16 and part D insofar as it applies to section 2753 or part

17 C, shall not prevent a State from establishing require18 ments relating to the subject matter of such provisions

19 so long as such requirements are at least as stringent on

20 health insurance issuers as the requirements imposed

21 under such section.’’.

22 SEC. 1214. AMENDMENTS TO THE EMPLOYEE RETIREMENT

23 INCOME SECURITY ACT OF 1974.

24 (a) IN GENERAL.—Subpart B of part 7 of subtitle

25 B of title I of the Employee Retirement Income Security
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1 Act of 1974 (29 U.S.C. 1185 et seq.) is amended by add2 ing at the end the following:

3 ‘‘SEC. 714. CHILDREN’S HEALTH ACCOUNTABILITY STAND4 ARDS.

5 ‘‘(a) IN GENERAL.—Subject to subsection (b), the

6 provisions of part C of title XXVII of the Public Health

7 Service Act shall apply under this subpart and part to a

8 group health plan (and group health insurance coverage

9 offered in connection with a group health plan) as if such

10 part were incorporated in this section.

11 ‘‘(b) APPLICATION.—In applying subsection (a)

12 under this subpart and part, any reference in such part

13 C—

14 ‘‘(1) to health insurance coverage is deemed to

15 be a reference only to group health insurance cov16 erage offered in connection with a group health plan

17 and to also be a reference to coverage under a group

18 health plan;

19 ‘‘(2) to a health insurance issuer is deemed to

20 be a reference only to such an issuer in relation to

21 group health insurance coverage or, with respect to

22 a group health plan, to the plan;

23 ‘‘(3) to the Secretary is deemed to be a ref24 erence to the Secretary of Labor;
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1 ‘‘(4) to an applicable State authority is deemed

2 to be a reference to the Secretary of Labor; and

3 ‘‘(5) to an enrollee with respect to health insur4 ance coverage is deemed to include a reference to a

5 participant or beneficiary with respect to a group

6 health plan.’’.

7 (b) MODIFICATION OF PREEMPTION STANDARDS.—

8 Section 731 of the Employee Retirement Income Security

9 Act of 1974 (42 U.S.C. 1191) is amended—

10 (1) in subsection (a)(1), by striking ‘‘subsection

11 (b)’’ and inserting ‘‘subsections (b) and (c)’’;

12 (2) by redesignating subsections (c) and (d) as

13 subsections (d) and (e), respectively; and

14 (3) by inserting after subsection (b) the fol15 lowing new subsection:

16 ‘‘(c) SPECIAL RULES IN CASE OF PATIENT AC17 COUNTABILITY REQUIREMENTS.—Subject to subsection

18 (a)(2), the provisions of section 714, shall not prevent a

19 State from establishing requirements relating to the sub20 ject matter of such provisions so long as such require21 ments are at least as stringent on group health plans and

22 health insurance issuers in connection with group health

23 insurance coverage as the requirements imposed under

24 such provisions.’’.

25 (c) CONFORMING AMENDMENTS.—
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1 (1) Section 732(a) of the Employee Retirement

2 Income Security Act of 1974 (29 U.S.C. 1185(a)) is

3 amended by striking ‘‘section 711’’ and inserting

4 ‘‘sections 711 and 714’’.

5 (2) The table of contents in section 1 of the

6 Employee Retirement Income Security Act of 1974

7 is amended by inserting after the item relating to

8 section 713 the following new item:

‘‘Sec. 714. Children’s health accountability standards.’’.

9 SEC. 1215. STUDIES.

10 (a) BY SECRETARY.—Not later than 1 year after the

11 date of enactment of this Act, the Secretary of Health and

12 Human Services shall conduct a study, and prepare and

13 submit to Congress a report, concerning—

14 (1) the unique characteristics of patterns of ill15 ness, disability, and injury in children;

16 (2) the development of measures of quality of

17 care and outcomes related to the health care of chil18 dren; and

19 (3) the access of children to primary mental

20 health services and the coordination of managed be21 havioral health services.

22 (b) BY GAO.—

23 (1) MANAGED CARE.—Not later than 1 year

24 after the date of enactment of this Act, the General

25 Accounting Office shall conduct a study, and pre-
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1 pare and submit to the Committee on Health, Edu2 cation, Labor, and Pensions of the Senate and the

3 Committee on Energy and Commerce of the House

4 of Representatives a report, concerning—

5 (A) an assessment of the structure and

6 performance of non-governmental health plans,

7 medicaid managed care organizations, plans

8 under title XIX of the Social Security Act (42

9 U.S.C. 1396 et seq.), and the program under

10 title XXI of the Social Security Act (42 U.S.C.

11 1397aa et seq.) serving the needs of children

12 with special health care needs;

13 (B) an assessment of the structure and

14 performance of non-governmental plans in serv15 ing the needs of children as compared to med16 icaid managed care organizations under title

17 XIX of the Social Security Act (42 U.S.C. 1396

18 et seq.); and

19 (C) the emphasis that private managed

20 care health plans place on primary care and the

21 control of services as it relates to care and serv22 ices provided to children with special health

23 care needs.

24 (2) PLAN SURVEY.—Not later than 1 year after

25 the date of enactment of this Act, the General Ac-
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1 counting Office shall prepare and submit to the

2 Committee on Health, Education, Labor, and Pen3 sions of the Senate and the Committee on Energy

4 and Commerce of the House of Representatives a re5 port that contains a survey of health plan activities

6 that address the unique health needs of adolescents,

7 including quality measures for adolescents and inno8 vative practice arrangement.

9 CHAPTER 3—EPSDT

10 SEC. 1221. COLLECTION OF DATA REGARDING THE DELIV11 ERY OF EPSDT SERVICES.

12 Section 1902(a)(43) of the Social Security Act (42

13 U.S.C. 1396a(a)(43)) is amended—

14 (1) in subparagraph (C), by striking ‘‘and’’ at

15 the end;

16 (2) in subparagraph (D)(iv), by striking the

17 semicolon and inserting ‘‘, and’’; and

18 (3) by inserting after subparagraph (D)(iv), the

19 following new subparagraph:

20 ‘‘(E) beginning with fiscal year 2003, re21 porting to the Secretary (in a uniform form and

22 manner established by the Secretary that does

23 not identify individual patients and that allows

24 for the comparison of data within and among

25 States) the following information relating to
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1 early and periodic screening, diagnostic, and

2 treatment services provided to each child en3 rolled under the plan during each fiscal year:

4 ‘‘(i) as of the date of enrollment of

5 the child, the child’s—

6 ‘‘(I) age, State of residence, gen7 der, and race/ethnicity,

8 ‘‘(II) the basis for eligibility for

9 medical assistance,

10 ‘‘(III) immunization history,

11 ‘‘(IV) blood-lead level,

12 ‘‘(V) weight and height percentile

13 compared to the widely accepted

14 standard percentiles for the child’s

15 age,

16 ‘‘(VI) general health and any

17 chronic conditions or disabilities, and

18 ‘‘(VII) the primary service deliv19 ery arrangement (such as fee-for-serv20 ice, managed care, preferred provider

21 organization, or other provider prac22 tice arrangement); and

23 ‘‘(ii) throughout the fiscal year (at

24 such intervals as the Secretary shall speci25 fy)—
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1 ‘‘(I) the number of medical

2 screenings the child received and a

3 specific description of the services per4 formed as part of such screenings

5 (such as the weighing and measuring

6 of the child and the administering of

7 a blood-lead level test),

8 ‘‘(II) the number of screenings

9 the child received for vision and hear10 ing problems,

11 ‘‘(III) the number of dental

12 screenings the child received,

13 ‘‘(IV) information regarding

14 whether a condition was discovered

15 from any of such screenings, whether

16 the child was referred for, and re17 ceived, further treatment, and if so,

18 the number of visits, and the treat19 ments received, and

20 ‘‘(V) the actual or estimated

21 costs of each of such screenings and

22 treatments,

23 ‘‘(VI) information regarding

24 whether such screenings and treat25 ments are more comprehensive that
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1 similar screenings and treatments pro2 vided to adult individuals enrolled in

3 the plan, and

4 ‘‘(VII) the service delivery ar5 rangement for such screening and

6 treatment provided;’’.

7 Subtitle D—Reducing Public

8 Health Risks

9 CHAPTER 1—ASTHMA TREATMENTS

10 SEC. 1301. FINDINGS.

11 Congress finds that—

12 (1)(A) asthma is 1 of the most common and

13 deadly diseases in the United States, affecting an es14 timated 14,000,000 to 15,000,000 individuals in the

15 United States, including almost 5,000,000 children;

16 (B) asthma is the most common chronic illness

17 in children, affecting an estimated 7 percent of chil18 dren in the United States;

19 (C) although asthma can occur at any age,

20 about 80 percent of the children who develop asthma

21 do so before starting school;

22 (D) asthma is the single greatest cause of

23 school absenteeism, with 10,100,000 days missed

24 from school per year in the United States; and
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1 (E) according to a 1995 National Institutes of

2 Health workshop report, the cost of lost productivity

3 from missed school days for parents of children with

4 asthma is estimated at $1,000,000,000 per year;

5 and

6 (2)(A) vision and hearing screening is an essen7 tial part of child health care;

8 (B) a vision or hearing deficit may undermine

9 a child’s ability to learn;

10 (C) the Chicago public school system has deter11 mined through vision screening that a far higher

12 number of children identified as failing academically

13 suffer from vision impairment;

14 (D) students who have failed a grade 1 or more

15 times are even more likely to have a vision problem;

16 (E) more than 30 percent of students in Chi17 cago public schools who were retained during the

18 1998-1999 school year failed their school-based vi19 sion screening, a rate that is 50 percent higher than

20 children who were not failing;

21 (F) schools play a critical role in promoting a

22 clear link between visual and hearing acuity and

23 academic performance;
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1 (G) providing vision and hearing screening in

2 schools helps children receive those essential health

3 care services in a timely fashion;

4 (H) many parents find it difficult to take time

5 off work in order to ensure that their children re6 ceive preventive or other nonemergency health care

7 services; and

8 (I) allowing children to receive nonemergency

9 health care services at school would ensure that the

10 children receive services that promote healthy lives

11 and better academic achievement.

12 SEC. 1302. ASTHMA, VISION, AND HEARING SCREENING FOR

13 EARLY HEAD START AND HEAD START PRO14 GRAMS.

15 (a) EARLY HEAD START PROGRAMS.—Section 645A

16 of the Head Start Act (42 U.S.C. 9840a) is amended by

17 adding at the end the following:

18 ‘‘(h) ASTHMA, VISION, AND HEARING SCREENING.—

19 ‘‘(1) IN GENERAL.—An entity that receives as20 sistance under this section may carry out a program

21 under which the entity—

22 ‘‘(A) determines whether a child eligible to

23 participate in the program described in sub24 section (a)(1) has received each of an asthma,

25 vision, and hearing screening test using a test
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1 that is appropriate for age and risk factors on

2 the enrollment of the child in the program; and

3 ‘‘(B) in the case of a child who has not re4 ceived each of an asthma, and vision, and hear5 ing screening test, ensures that the enrolled

6 child receives such a test either by referral or

7 by performing the test (under contract or other8 wise).

9 ‘‘(2) REIMBURSEMENT.—

10 ‘‘(A) IN GENERAL.—On the request of an

11 entity that performs or arranges for the per12 formance of an asthma, vision, or hearing

13 screening test under paragraph (1) on a child

14 who is eligible for or receiving medical assist15 ance under a State plan under title XIX of the

16 Social Security Act (42 U.S.C. 1396 et seq.),

17 the Secretary of Health and Human Services,

18 notwithstanding any other provision of, or limi19 tation under, title XIX of the Social Security

20 Act, shall reimburse the entity, from funds that

21 are made available under that title, for 100 per22 cent of the cost of the test and data reporting.

23 ‘‘(B) COSTS.—The costs of a test con24 ducted under this subsection—
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1 ‘‘(i) shall include reimbursement for

2 testing devices and associated supplies ap3 proved for sale by the Food and Drug Ad4 ministration and used in compliance with

5 section 353 of the Public Health Service

6 Act (42 U.S.C. 263a); and

7 ‘‘(ii) shall include reimbursement for

8 administering the tests and related serv9 ices, as determined appropriate by the

10 State agency.

11 ‘‘(3) HEAD START.—This subsection shall apply

12 to Head Start programs that include coverage, di13 rectly or indirectly, for infants and toddlers under

14 the age of 3 years.’’.

15 (b) HEAD START PROGRAMS.—Section 642(b) of the

16 Head Start Act (42 U.S.C. 9837(b)) is amended—

17 (1) in paragraph (10), by striking ‘‘and’’ at the

18 end;

19 (2) in paragraph (11), by striking the period at

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

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

22 ‘‘(12) with respect to an agency that elects to

23 carry out a program under section 645(h), comply

24 with the requirements of such section 645A(h) in the
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1 case of each child eligible to participate in the Head

2 Start program to be carried out by the agency.’’.

3 (c) PAYMENTS FOR SCREENING AND TREATMENT

4 PROVIDED TO CHILDREN ELIGIBLE UNDER MEDICAID OR

5 SCHIP.—

6 (1) MEDICAID.—Section 1903(c) of the Social

7 Security Act (42 U.S.C. 1396b(c)) is amended—

8 (A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and

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

10 ‘‘(2) Nothing in this title or any other provision of

11 law, including the payment limitation commonly known as

12 the ‘free care rule’, shall be construed as prohibiting or

13 restricting, or authorizing the Secretary to prohibit or re14 strict, payment under subsection (a) for medical assist15 ance for covered services furnished to a child who is eligi16 ble for or receiving medical assistance under the State

17 plan and who receives an asthma, vision, hearing, or other

18 health screening test, or is provided treatment, education

19 in disease management, corrective eyewear, or hearing

20 aids, through a public elementary or secondary school,

21 whether directly or indirectly, and regardless of whether

22 the school participates in a program established under

23 subsection (a) or (b) of section 320B of the Public Health

24 Service Act.’’.
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1 (2) SCHIP.—Section 2105 of the Social Secu2 rity Act (42 U.S.C.1397ee) is amended by adding at

3 the end the following:

4 ‘‘(g) REQUIRED PAYMENT FOR CERTAIN SCHOOL5 BASED SERVICES.—Nothing in this title or any other pro6 vision of law (including the payment limitation under title

7 XIX commonly known as the ‘free care rule’ to the extent,

8 if any, such limitation applies to the program established

9 under this title), shall be construed as prohibiting or re10 stricting, or authorizing the Secretary to prohibit or re11 strict, payment under subsection (a) for child health as12 sistance for covered services furnished to a child who is

13 eligible for or receiving such assistance under the State

14 plan and who receives an asthma, vision, or hearing

15 screening test, or other health screening test that is avail16 able to children receiving assistance under the State plan,

17 or is provided treatment, education in disease manage18 ment, corrective eyewear, or hearing aids through a public

19 elementary or secondary school, whether directly or indi20 rectly, and regardless of whether the school participates

21 in a program established under subsection (a) or (b) of

22 section 320B of the Public Health Service Act.’’.
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1 SEC. 1303. ASTHMA, VISION, AND HEARING SCREENING AND

2 TREATMENT FOR CHILDREN ENROLLED IN

3 PUBLIC SCHOOLS.

4 Part B of title III of the Public Health Service Act

5 (42 U.S.C. 243 et seq.) is amended by adding at the end

6 the following:

7 ‘‘SEC. 320B. ASTHMA, VISION, AND HEARING SCREENING

8 AND TREATMENT FOR CHILDREN ENROLLED

9 IN PUBLIC SCHOOLS.

10 ‘‘(a) ASTHMA SCREENING AND CASE MANAGEMENT

11 PROGRAM.—

12 ‘‘(1) IN GENERAL.—The Secretary, in collabo13 ration with the Secretary of Education, shall carry

14 out an asthma screening and case management pro15 gram under which local educational agencies shall be

16 reimbursed for the provision of asthma screening

17 and case management to children enrolled in public

18 elementary schools and secondary schools located in

19 areas with respect to which there is a high incidence

20 of childhood asthma.

21 ‘‘(2) PROGRAM ELEMENTS.—Under the pro22 gram, a local educational agency shall—

23 ‘‘(A) determine whether a child enrolled in

24 a school described in paragraph (1) has received

25 an asthma screening test using a test that is
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1 appropriate for age and risk factors on the en2 rollment of the child in the school;

3 ‘‘(B) in the case of a child who has not re4 ceived an asthma screening test, ensure that

5 the child receives such a test either by referral

6 or by performing the test (under contract or

7 otherwise); and

8 ‘‘(C) in the case of a child determined to

9 have asthma, provide treatment or refer the

10 child for treatment (including case manage11 ment) and education in the management of

12 asthma.

13 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—

14 There is authorized to be appropriated to carry out

15 this subsection with respect to a child, and any data

16 reporting with respect to the child, who is not eligi17 ble for coverage under title XIX or XXI of the So18 cial Security Act, or is not otherwise covered under

19 a health insurance plan, $10,000,000 for each fiscal

20 year.

21 ‘‘(b) VISION AND HEARING SCREENING PROGRAM.—

22 ‘‘(1) IN GENERAL.—The Secretary shall carry

23 out a vision and hearing screening program under

24 which local educational agencies shall be reimbursed

25 for the provision of vision and hearing screening and
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1 corrective eyewear and hearing aids to children en2 rolled in public elementary schools and secondary

3 schools.

4 ‘‘(2) PROGRAM ELEMENTS.—Under the pro5 gram, a local educational agency shall—

6 ‘‘(A) elect to provide vision and hearing

7 screening tests—

8 ‘‘(i) to all children enrolled in a school

9 who are most likely to suffer from vision or

10 hearing loss; or

11 ‘‘(ii) to all children enrolled in a

12 school;

13 ‘‘(B) ensure that the category of children

14 elected under subparagraph (A) receive such

15 tests, either by referral or by performing the

16 test (under contract or otherwise), that are ap17 propriate for the age and risk factors of the

18 children, based on the enrollment of the chil19 dren in the school; and

20 ‘‘(C) in the case of any child determined to

21 have a vision or hearing impairment, provide

22 the child with such eyewear and hearing aids as

23 are appropriate to correct the child’s vision or

24 hearing, to the extent that such correction is

25 feasible.
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1 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—

2 There is authorized to be appropriated to carry out

3 this subsection with respect to a child, and any data

4 reporting with respect to the child, who is not eligi5 ble for coverage under title XIX or XXI of the So6 cial Security Act, or is not otherwise covered under

7 a health insurance plan, $10,000,000 for each fiscal

8 year.

9 ‘‘(c) REIMBURSEMENT.—

10 ‘‘(1) CHILDREN ENROLLED IN OR ELIGIBLE

11 FOR MEDICAID.—

12 ‘‘(A) IN GENERAL.—With respect to a

13 child who is eligible for or receiving medical as14 sistance under a State plan under title XIX of

15 the Social Security Act (42 U.S.C. 1396 et

16 seq.) and who receives, or is provided, a test,

17 treatment, education, corrective eyewear, or

18 hearing aid under a program established under

19 subsection (a) or (b), the Secretary, notwith20 standing any other provision of, or limitation

21 under, such title XIX, including the payment

22 limitation commonly known as the ‘free care

23 rule’, shall reimburse the local educational

24 agency administering such program from funds

25 that are made available under such title XIX
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1 for 100 percent of the cost of the performance,

2 arrangement, or provision and data reporting.

3 ‘‘(B) COSTS.—The costs of a test con4 ducted under this section shall include reim5 bursement for—

6 ‘‘(i) testing devices and associated

7 supplies approved for sale by the Food and

8 Drug Administration and used in compli9 ance with section 353; and

10 ‘‘(ii) administering the tests and re11 lated services, as determined appropriate

12 by the State agency responsible for the ad13 ministration of title XIX of the Social Se14 curity Act (42 U.S.C. 1396 et seq.).

15 ‘‘(2) CHILDREN ENROLLED IN OR ELIGIBLE

16 FOR SCHIP.—

17 ‘‘(A) IN GENERAL.—With respect to a

18 child who is eligible for or receiving child health

19 assistance under a State plan under title XXI

20 of the Social Security Act (42 U.S.C. 1397aa et

21 seq.) and who receives, or is provided, a test,

22 treatment, education, corrective eyewear, or

23 hearing aid under a program established under

24 subsection (a) or (b), the Secretary, notwith25 standing any other provision of, or limitation
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1 under, such title XXI, or any other provision of

2 law (including the payment limitation under

3 title XIX commonly known as the ‘free care

4 rule’ to the extent, if any, such limitation ap5 plies to the State children’s health insurance

6 program established under title XXI of that

7 Act), shall reimburse the local educational agen8 cy administering such program from funds that

9 are made available under such title XXI for

10 100 percent of the cost of the performance, ar11 rangement, or provision and data reporting.

12 ‘‘(B) COSTS.—The costs shall include the

13 costs described in paragraph (1)(B).

14 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec15 tion shall be construed to require that a local educational

16 agency participate in a program carried out by the Sec17 retary under this section.

18 ‘‘(e) DEFINITIONS.—In this section, the terms ‘local

19 educational agency’ and ‘elementary and secondary school’

20 shall have the meanings given such terms in section 14101

21 of the Elementary and Secondary Education Act of 1965

22 (20 U.S.C. 8801).’’.

23 SEC. 1304. GENERAL EFFECTIVE DATE.

24 (a) IN GENERAL.—Except as provided in subsection

25 (b), the amendments made by this chapter take effect on
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1 the date that is 18 months after the date of enactment

2 of this Act.

3 (b) HEAD START WAIVERS.—

4 (1) IN GENERAL.—An entity carrying out ac5 tivities under section 642 or 645A of the Head Start

6 Act (42 U.S.C. 9837, 9840a), may be awarded a

7 waiver from the amendments made by section 1302

8 if the State where the entity is located establishes to

9 the satisfaction of the Secretary of Health and

10 Human Services, in accordance with requirements

11 and procedures recommended in accordance with

12 paragraph (2) to the Secretary by the Director of

13 the Centers for Disease Control and Prevention a

14 plan for increasing the number of asthma, vision,

15 and hearing screening tests of children enrolled in

16 the Early Head Start and Head Start programs in

17 the State.

18 (2) DEVELOPMENT OF WAIVER PROCEDURES

19 AND REQUIREMENTS.—Not later than 1 year after

20 the date of enactment of this Act, the Director of

21 the Centers for Disease Control and Prevention shall

22 develop and recommend to the Secretary of Health

23 and Human Services criteria and procedures (includ24 ing a timetable for the submission of the State plan
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1 described in paragraph (1)) for the awarding of

2 waivers under that paragraph.

3 CHAPTER 2—INCREASE IN FUNDING FOR

4 HUD PROGRAMS

5 SEC. 1311. LEAD-BASED PAINT HAZARD CONTROL GRANTS.

6 Section 1011(p) of the Residential Lead-Based Paint

7 Hazard Reduction Act of 1992 (42 U.S.C. 4852) is

8 amended by striking ‘‘appropriated’’ and all that follows

9 through the period and inserting ‘‘appropriated—

10 ‘‘(1) $125,000,000 for fiscal year 1993 and

11 $250,000,000 for fiscal year 1994;

12 ‘‘(2) $200,000,000 for fiscal year 2002;

13 ‘‘(3) $250,000,000 for fiscal year 2003; and

14 ‘‘(4) $300,000,000 beginning with fiscal year

15 2004 and fiscal years thereafter.’’.

16 SEC. 1312. HEALTHY HOMES INITIATIVE PROGRAM.

17 There are authorized to be appropriated for the

18 Healthy Homes Initiative program pursuant to sections

19 501 and 502 of the Housing and Urban Development Act

20 of 1970, for which funds were provided under title II of

21 the Departments of Veterans Affairs and Housing and

22 Urban Development, Independent Agencies Appropria23 tions Act, 2000—

24 (1) $100,000,000 for fiscal year 2002; and
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1 (2) $150,000,000 beginning with fiscal year

2 2003 and fiscal years thereafter.

3 CHAPTER 3—YOUTH SMOKING CESSATION

4 AND EDUCATION

5 SEC. 1321. SHORT TITLE.

6 This chapter may be cited as the ‘‘Kids Deserve Free7 dom from Tobacco Act of 2001’’ or the ‘‘KIDS Act’’.

8 Subchapter A—Protection of Children from

9 Tobacco

10 PART I—FOOD AND DRUG ADMINISTRATION

11 JURISDICTION AND GENERAL AUTHORITY

12 SEC. 1331. REFERENCE.

13 Whenever in this subchapter an amendment or repeal

14 is expressed in terms of an amendment to, or repeal of,

15 a section or other provision, the reference shall be consid16 ered to be made to a section or other provision of the Fed17 eral Food, Drug, and Cosmetic Act (21 U.S.C. 301 et

18 seq.).

19 SEC. 1332. STATEMENT OF GENERAL AUTHORITY.

20 The regulations promulgated by the Secretary in the

21 rule dated August 28, 1996 (Vol. 61, No. 168 C.F.R.),

22 adding part 897 to title 21, Code of Federal Regulations,

23 shall be deemed to have been lawfully promulgated under

24 the Food, Drug, and Cosmetic Act as amended by this
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1 subchapter. Such regulations shall apply to all tobacco

2 products.

3 SEC. 1333. NONAPPLICABILITY TO OTHER DRUGS OR DE4 VICES.

5 Nothing in this subchapter, or an amendment made

6 by this subchapter, shall be construed to affect the regula7 tion of drugs and devices that are not tobacco products

8 by the Secretary under the Federal Food, Drug, and Cos9 metic Act.

10 SEC. 1334. CONFORMING AMENDMENTS TO CONFIRM JU11 RISDICTION.

12 (a) DEFINITIONS.—

13 (1) DRUG.—Section 201(g)(1) (21 U.S.C.

14 321(g)(1)) is amended by striking ‘‘; and (D)’’ and

15 inserting ‘‘; (D) nicotine in tobacco products; and

16 (E)’’.

17 (2) DEVICES.—Section 201(h) (21 U.S.C.

18 321(h)) is amended by adding at the end the fol19 lowing: ‘‘Such term includes a tobacco product.’’.

20 (3) OTHER DEFINITIONS.—Section 201 (21

21 U.S.C. 321) is amended by adding at the end the

22 following:

23 ‘‘(kk) The term ‘tobacco product’ means any

24 product made or derived from tobacco that is in25 tended for human consumption.’’.
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1 (b) PROHIBITED ACTS.—Section 301 (21 U.S.C.

2 331) is amended by adding at the end the following:

3 ‘‘(aa) The manufacture, labeling, distribution, adver4 tising and sale of any adulterated or misbranded tobacco

5 product in violation of—

6 ‘‘(1) regulations issued under this Act; or

7 ‘‘(2) the KIDS Act, or regulations issued under

8 such Act.’’.

9 (c) ADULTERATED DRUGS AND DEVICES.—

10 (1) IN GENERAL.—Section 501 of the Federal

11 Food, Drug, and Cosmetic Act (21 U.S.C. 351) is

12 amended by adding at the end the following:

13 ‘‘(j) If it is a tobacco product and it does not comply

14 with the provisions of subchapter D of this chapter or the

15 KIDS Act.’’.

16 (2) MISBRANDING.—Section 502(q) (21 U.S.C.

17 352(q)) is amended—

18 (A) by striking ‘‘or (2)’’ and inserting in

19 lieu thereof ‘‘(2)’’; and

20 (B) by inserting before the period the fol21 lowing: ‘‘, or (3) in the case of a tobacco prod22 uct, it is sold, distributed, advertised, labeled,

23 or used in violation of this Act or the KIDS

24 Act, or regulations prescribed under such

25 Acts’’.
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1 (d) RESTRICTED DEVICE.—Section 520(e) (21

2 U.S.C. 360j(e)) is amended—

3 (1) in paragraph (1), by striking ‘‘or use—’’

4 and inserting ‘‘or use, including restrictions on the

5 access to, and the advertising and promotion of, to6 bacco products—’’; and

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

8 ‘‘(3) Tobacco products are a restricted device under

9 this paragraph.’’.

10 (e) REGULATORY AUTHORITY.—Section 503(g) (21

11 U.S.C. 353(g)) is amended by adding at the end the fol12 lowing:

13 ‘‘(5) The Secretary may regulate any tobacco product

14 as a drug, device, or both, and may designate the office

15 of the Administration that shall be responsible for regu16 lating such products.’’.

17 SEC. 1335. GENERAL RULE.

18 Section 513(a)(1)(B) (21 U.S.C. 360c(a)(1)(B)) is

19 amended by adding at the end the following: ‘‘The sale

20 of tobacco products to adults that comply with perform21 ance standards established for these products under sec22 tion 514 and other provisions of this Act and any regula23 tions prescribed under this Act shall not be prohibited by

24 the Secretary, notwithstanding sections 502(j), 516, and

25 518.’’.
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1 SEC. 1336. SAFETY AND EFFICACY STANDARD AND RECALL

2 AUTHORITY.

3 (a) SAFETY AND EFFICACY STANDARD.—Section

4 513(a) (21 U.S.C. 360c(a)) is amended—

5 (1) in paragraph (1)(B), by inserting after the

6 first sentence the following: ‘‘For a device which is

7 a tobacco product, the assurance in the previous sen8 tence need not be found if the Secretary finds that

9 special controls achieve the best public health re10 sult.’’; and

11 (2) in paragraph (2)—

12 (A) by redesignating subparagraphs (A),

13 (B) and (C) as clauses (i), (ii) and (iii), respec14 tively;

15 (B) by striking ‘‘(2) For’’ and inserting

16 ‘‘(2)(A) For’’; and

17 (C) by adding at the end the following:

18 ‘‘(B) For purposes of paragraph (1)(B), subsections

19 (c)(2)(C), (d)(2)(B), (e)(2)(A), (f)(3)(B)(i), and

20 (f)(3)(C)(i), and sections 514, 519(a), 520(e), and 520(f),

21 the safety and effectiveness of a device that is a tobacco

22 product need not be found if the Secretary finds that the

23 action to be taken under any such provision would achieve

24 the best public health result. The finding as to whether

25 the best public health result has been achieved shall be

26 determined with respect to the risks and benefits to the
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1 population as a whole, including users and non-users of

2 the tobacco product, and taking into account—

3 ‘‘(i) the increased or decreased likelihood that

4 existing consumers of tobacco products will stop

5 using such products; and

6 ‘‘(ii) the increased or decreased likelihood that

7 those who do not use tobacco products will start

8 using such products.’’.

9 (b) RECALL AUTHORITY.—Section 518(e)(1) (21

10 U.S.C. 360h(e)(1)) is amended by inserting after ‘‘adverse

11 health consequences or death,’’ the following: ‘‘and for to12 bacco products that the best public health result would

13 be achieved,’’.

14 PART II—REGULATION OF TOBACCO PRODUCTS

15 SEC. 1341. PERFORMANCE STANDARDS.

16 Section 514(a) (21 U.S.C. 60d(a)) is amended—

17 (1) in paragraph (2), by striking ‘‘device’’ and

18 inserting ‘‘nontobacco product device’’;

19 (2) by redesignating paragraphs (3) and (4) as

20 paragraphs (6) and (7), respectively; and

21 (3) by inserting after paragraph (2) the fol22 lowing:

23 ‘‘(3) The Secretary may adopt a performance stand24 ard under section 514(a)(2) for a tobacco product regard-
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1 less of whether the product has been classified under sec2 tion 513. Such standard may—

3 ‘‘(A) include provisions to achieve the best pub4 lic health result;

5 ‘‘(B) where necessary to achieve the best public

6 health result, include—

7 ‘‘(i) provisions respecting the construction,

8 components, constituents, ingredients, and

9 properties of the tobacco product device, includ10 ing the reduction or elimination (or both) of

11 nicotine and the other components, ingredients,

12 and constituents of the tobacco product, its

13 components and its by-products, based upon the

14 best available technology;

15 ‘‘(ii) provisions for the testing (on a sam16 ple basis or, if necessary, on an individual

17 basis) of the tobacco product device or, if it is

18 determined that no other more practicable

19 means are available to the Secretary to assure

20 the conformity of the tobacco product device to

21 such standard, provisions for the testing (on a

22 sample basis or, if necessary, on an individual

23 basis) by the Secretary or by another person at

24 the direction of the Secretary;
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1 ‘‘(iii) provisions for the measurement of

2 the performance characteristics of the tobacco

3 product device;

4 ‘‘(iv) provisions requiring that the results

5 of each test or of certain tests of the tobacco

6 product device required to be made under

7 clause (ii) demonstrate that the tobacco product

8 device is in conformity with the portions of the

9 standard for which the test or tests were re10 quired; and

11 ‘‘(v) a provision that the sale and distribu12 tion of the tobacco product device be restricted

13 but only to the extent that the sale and dis14 tribution of a tobacco product device may other15 wise be restricted under this Act; and

16 ‘‘(C) where appropriate, require the use and

17 prescribe the form and content of labeling for the

18 use of the tobacco product device.

19 ‘‘(4) Not later than 1 year after the date of enact20 ment of the KIDS Act, the Secretary (acting through the

21 Commissioner of Food and Drugs) shall establish a Sci22 entific Advisory Committee to evaluate whether a level or

23 range of levels exists at which nicotine yields do not

24 produce drug-dependence. The Advisory Committee shall

25 also review any other safety, dependence or health issue
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1 assigned to it by the Secretary. The Secretary need not

2 promulgate regulations to establish the Committee.’’.

3 SEC. 1342. APPLICATION OF FEDERAL FOOD, DRUG, AND

4 COSMETIC ACT TO TOBACCO PRODUCTS.

5 (a) TOBACCO PRODUCTS REGULATION.—Chapter V

6 (21 U.S.C. 351 et seq.) is amended by adding at the end

7 the following:

8 ‘‘SUBCHAPTER F—TOBACCO PRODUCT DEVEL9 OPMENT, MANUFACTURING, AND ACCESS

10 RESTRICTIONS

11 ‘‘SEC. 570. PROMULGATION OF REGULATIONS.

12 ‘‘Any regulations necessary to implement this sub13 chapter shall be promulgated not later than 12 months

14 after the date of enactment of this subchapter using notice

15 and comment rulemaking (in accordance with chapter 5

16 of title 5, United States Code). Such regulations may be

17 revised thereafter as determined necessary by the Sec18 retary.

19 ‘‘SEC. 571. MAIL-ORDER SALES.

20 ‘‘(a) IN GENERAL.—Not later than 2 years after the

21 date of enactment of this subchapter, the Secretary shall

22 review and determine whether persons under the age of

23 18 years are obtaining tobacco products by means of the

24 mail.
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1 ‘‘(b) RESTRICTIONS.—Based solely upon the review

2 conducted under subsection (a), the Secretary may take

3 regulatory and administrative action to restrict or elimi4 nate mail order sales of tobacco products.

5 ‘‘SEC. 572. IMPLEMENTATION OF THE PROPOSED RESOLU6 TION.

7 ‘‘(a) ADDITIONAL RESTRICTIONS ON MARKETING,

8 ADVERTISING, AND ACCESS.—Not later than 18 months

9 after the date of the enactment of this subchapter, the

10 Secretary shall revise the regulations related to tobacco

11 products promulgated by the Secretary on August 28,

12 1996 (61 Fed. Reg. 44396) to include the additional re13 strictions on marketing, advertising, and access described

14 in Title IA and Title IC of the Proposed Resolution en15 tered into by the tobacco manufacturers and the State at16 torneys general on June 20, 1997, except that the Sec17 retary shall not include an additional restriction on mar18 keting or advertising in such regulations if its inclusion

19 would violate the First Amendment to the Constitution.

20 ‘‘(b) WARNINGS.—Not later than 18 months after the

21 date of the enactment of this subchapter, the Secretary

22 shall promulgate regulations to require warnings on ciga23 rette and smokeless tobacco labeling and advertisements.

24 The content, format, and rotation of warnings shall con25 form to the specifications described in Title IB of the Pro-
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1 posed Resolution entered into by the tobacco manufactur2 ers and the State attorneys general on June 20, 1997.

3 ‘‘(c) RULES OF CONSTRUCTION.—

4 ‘‘(1) IN GENERAL.—Nothing in this section

5 shall be construed to limit the ability of the Sec6 retary to change the text or layout of any of the

7 warning statements, or any of the labeling provi8 sions, under the regulations promulgated under sub9 section (b) and other provisions of this Act, if deter10 mined necessary by the Secretary in order to make

11 such statements or labels larger, more prominent,

12 more conspicuous, or more effective.

13 ‘‘(2) UNFAIR ACTS.—Nothing in this section

14 (other than the requirements of subsections (a) and

15 (b)) shall be construed to limit or restrict the au16 thority of the Federal Trade Commission with re17 spect to unfair or deceptive acts or practices in the

18 advertising of tobacco products.

19 ‘‘(d) LIMITED PREEMPTION.—

20 ‘‘(1) STATE AND LOCAL ACTION.—No warning

21 label with respect to tobacco products, or any other

22 tobacco product for which warning labels have been

23 required under this section, other than the warning

24 labels required under this Act, shall be required by
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1 any State or local statute or regulation to be in2 cluded on any package of a tobacco product.

3 ‘‘(2) EFFECT ON LIABILITY LAW.—Nothing in

4 this section shall relieve any person from liability at

5 common law or under State statutory law to any

6 other person.

7 ‘‘(e) VIOLATION OF SECTION.—Any tobacco product

8 that is in violation of this section shall be deemed to be

9 misbranded.

10 ‘‘SEC. 573. GENERAL RESPONSIBILITIES OF MANUFACTUR11 ERS, DISTRIBUTORS AND RETAILERS.

12 ‘‘Each manufacturer, distributor, and retailer shall

13 ensure that the tobacco products it manufactures, labels,

14 advertises, packages, distributes, sells, or otherwise holds

15 for sale comply with all applicable requirements of this

16 Act.

17 ‘‘SEC. 574. DISCLOSURE AND REPORTING OF TOBACCO AND

18 NONTOBACCO INGREDIENTS AND CONSTITU19 ENTS.

20 ‘‘(a) DISCLOSURE OF ALL INGREDIENTS.—

21 ‘‘(1) IMMEDIATE AND ANNUAL DISCLOSURE.—

22 Not later than 30 days after the date of enactment

23 of this subchapter, and annually thereafter, each

24 manufacturer of a tobacco product shall submit to

25 the Secretary an ingredient list for each brand of to-
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1 bacco product it manufactures that contains the in2 formation described in paragraph (2).

3 ‘‘(2) REQUIREMENTS.—The list described in

4 paragraph (1) shall, with respect to each brand or

5 variety of tobacco product of a manufacturer,

6 include—

7 ‘‘(A) a list of all ingredients, constituents,

8 substances, and compounds that are found in or

9 added to the tobacco or tobacco product (in10 cluding the paper, filter, or packaging of the

11 product if applicable) in the manufacture of the

12 tobacco product, for each brand or variety of to13 bacco product so manufactured, including, if

14 determined necessary by the Secretary, any ma15 terial added to the tobacco used in the product

16 prior to harvesting;

17 ‘‘(B) the quantity of the ingredients, con18 stituents, substances, and compounds that are

19 listed under subparagraph (A) in each brand or

20 variety of tobacco product;

21 ‘‘(C) the nicotine content of the product,

22 measured in milligrams of nicotine;

23 ‘‘(D) for each brand or variety of

24 cigarettes—
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1 ‘‘(i) the filter ventilation percentage

2 (the level of air dilution in the cigarette as

3 provided by the ventilation holes in the fil4 ter, described as a percentage);

5 ‘‘(ii) the pH level of the smoke of the

6 cigarette; and

7 ‘‘(iii) the tar, unionized (free) nico8 tine, and carbon monoxide delivery level

9 and any other smoking conditions estab10 lished by the Secretary, reported in milli11 grams of tar, nicotine, and carbon mon12 oxide per cigarette;

13 ‘‘(E) for each brand or variety of smoke14 less tobacco products—

15 ‘‘(i) the pH level of the tobacco;

16 ‘‘(ii) the moisture content of the to17 bacco expressed as a percentage of the

18 weight of the tobacco; and

19 ‘‘(iii) the nicotine content—

20 ‘‘(I) for each gram of the prod21 uct, measured in milligrams of nico22 tine;

23 ‘‘(II) expressed as a percentage

24 of the dry weight of the tobacco; and
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1 ‘‘(III) with respect to unionized

2 (free) nicotine, expressed as a percent3 age per gram of the tobacco and ex4 pressed in milligrams per gram of the

5 tobacco; and

6 ‘‘(F) any other information determined ap7 propriate by the Secretary.

8 ‘‘(3) METHODS.—The Secretary shall have the

9 authority to promulgate regulations to establish the

10 methods to be used by manufacturers in making the

11 determinations required under paragraph (2).

12 ‘‘(4) OTHER TOBACCO PRODUCTS.—The Sec13 retary shall prescribe such regulations as may be

14 necessary to establish information disclosure proce15 dures for other tobacco products.

16 ‘‘(b) SAFETY ASSESSMENTS.—

17 ‘‘(1) APPLICATION TO NEW INGREDIENTS.—

18 ‘‘(A) IN GENERAL.—Not later than 1 year

19 after the date of enactment of this subchapter,

20 and annually thereafter, each manufacturer

21 shall submit to the Secretary a safety assess22 ment for each new ingredient, constituent, sub23 stance, or compound that such manufacturer

24 desires to make a part of a tobacco product.

25 Such new ingredient, constituent, substance, or
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1 compound shall not be included in a tobacco

2 product prior to approval by the Secretary of

3 such a safety assessment.

4 ‘‘(B) METHOD OF FILING.—A safety as5 sessment submitted under subparagraph (A)

6 shall be signed by an officer of the manufac7 turer who is acting on behalf of the manufac8 turer and who has the authority to bind the

9 manufacturer, and contain a statement that en10 sures that the information contained in the as11 sessment is true, complete and accurate.

12 ‘‘(C) DEFINITION OF NEW INGREDIENT.—

13 For purposes of subparagraph (A), the term

14 ‘new ingredient, constituent, substance, or com15 pound’ means an ingredient, constituent, sub16 stance, or compound listed under subsection

17 (a)(1) that was not used in the brand or variety

18 of tobacco product involved prior to January 1,

19 1998.

20 ‘‘(2) APPLICATION TO OTHER INGREDIENTS.—

21 With respect to the application of this section to in22 gredients, constituents substances, or compounds

23 listed under subsection (a) to which paragraph (1)

24 does not apply, all such ingredients, constituents,

25 substances, or compounds shall be reviewed through
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1 the safety assessment process within the 5-year pe2 riod beginning on the date of enactment of this sub3 chapter. The Secretary shall develop a procedure for

4 the submission of safety assessments of such ingre5 dients, constituents, substances, or compounds that

6 staggers such safety assessments within the 5-year

7 period.

8 ‘‘(3) BASIS OF ASSESSMENT.—The safety as9 sessment of an ingredient, constituent, substance, or

10 compound described in paragraphs (1) and (2)

11 shall—

12 ‘‘(A) be based on the best scientific evi13 dence available at the time of the submission of

14 the assessment; and

15 ‘‘(B) demonstrate that there is a reason16 able certainty among experts qualified by sci17 entific training and experience who are con18 sulted, that the ingredient, constituent, sub19 stance, or compound will not present any risk

20 to consumers or the public in the quantities

21 used under the intended conditions of use.

22 ‘‘(c) PROHIBITION.—

23 ‘‘(1) REGULATIONS.—Not later than 12 months

24 after the date of enactment of this subchapter, the

25 Secretary shall promulgate regulations to prohibit
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1 the use of any ingredient, constituent, substance, or

2 compound in the tobacco product of a

3 manufacturer—

4 ‘‘(A) if no safety assessment has been sub5 mitted by the manufacturer for the ingredient,

6 constituent, substance, or compound as other7 wise required under this section; or

8 ‘‘(B) if the Secretary finds that the manu9 facturer has failed to demonstrate the safety of

10 the ingredient, constituent, substance, or com11 pound that was the subject of the assessment

12 under paragraph (2).

13 ‘‘(2) REVIEW OF ASSESSMENTS.—

14 ‘‘(A) GENERAL REVIEW.—Not later than

15 180 days after the receipt of a safety assess16 ment under subsection (b), the Secretary shall

17 review the findings contained in such assess18 ment and approve or disapprove of the safety of

19 the ingredient, constituent, substance, or com20 pound that was the subject of the assessment.

21 The Secretary may, for good cause, extend the

22 period for such review. The Secretary shall pro23 vide notice to the manufacturer of an action

24 under this subparagraph.
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1 ‘‘(B) INACTION BY SECRETARY.—If the

2 Secretary fails to act with respect to an assess3 ment of an existing ingredient, constituent, sub4 stance, or additive during the period referred to

5 in subparagraph (A), the manufacturer of the

6 tobacco product involved may continue to use

7 the ingredient, constituent, substance, or com8 pound involved until such time as the Secretary

9 makes a determination with respect to the as10 sessment.

11 ‘‘(d) RIGHT TO KNOW; FULL DISCLOSURE OF IN12 GREDIENTS TO THE PUBLIC.—

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (3), a package of a tobacco product shall dis15 close all ingredients, constituents, substances, or

16 compounds contained in the product in accordance

17 with regulations promulgated under section 701(a)

18 by the Secretary.

19 ‘‘(2) DISCLOSURE OF PERCENTAGE OF DOMES20 TIC AND FOREIGN TOBACCO.—The regulations re21 ferred to in paragraph (1) shall require that the

22 package of a tobacco product disclose, with respect

23 to the tobacco contained in the product—

24 ‘‘(A) the percentage that is domestic to25 bacco; and
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1 ‘‘(B) the percentage that is foreign to2 bacco.

3 ‘‘(3) HEALTH DISCLOSURE.—Notwithstanding

4 section 301(j), the Secretary may require the public

5 disclosure of any ingredient, constituent, substance,

6 or compound contained in a tobacco product that re7 lates to a trade secret or other matter referred to in

8 section 1905 of title 18, United States Code, if the

9 Secretary determines that such disclosure will pro10 mote the public health.

11 ‘‘SEC. 575. REDUCED RISK PRODUCTS.

12 ‘‘(a) PROHIBITION.—

13 ‘‘(1) IN GENERAL.—No manufacturer, dis14 tributor or retailer of tobacco products may make

15 any direct or implied statement in advertising or on

16 a product package that could reasonably be inter17 preted to state or imply a reduced health risk associ18 ated with a tobacco product unless the manufacturer

19 demonstrates to the Secretary, in such form as the

20 Secretary may require, that based on the best avail21 able scientific evidence the product significantly re22 duces the overall health risk to the public when com23 pared to other tobacco products.

24 ‘‘(2) SUBMISSION TO SECRETARY.—Prior to

25 making any statement described in paragraph (1), a
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1 manufacturer, distributor or retailer shall submit

2 such statement to the Secretary, who shall review

3 such statement to ensure its accuracy and, in the

4 case of advertising, to prevent such statement from

5 increasing, or preventing the contraction of, the size

6 of the overall market for tobacco products.

7 ‘‘(b) DETERMINATION BY SECRETARY.—If the Sec8 retary determines that a statement described in subsection

9 (a)(2) is permissible because the tobacco product does

10 present a significantly reduced overall health risk to the

11 public, the Secretary may permit such statement to be

12 made.

13 ‘‘(c) DEVELOPMENT OR ACQUISITION OF REDUCED

14 RISK TECHNOLOGY.—

15 ‘‘(1) IN GENERAL.—Any manufacturer that de16 velops or acquires any technology that the manufac17 turer reasonably believes will reduce the risk from

18 tobacco products shall notify the Secretary of the de19 velopment or acquisition of the technology. Such no20 tice shall be in such form and within such time as

21 the Secretary shall require.

22 ‘‘(2) CONFIDENTIALITY.—With respect to any

23 technology described in paragraph (1) that is in the

24 early stages of development (as determined by the

25 Secretary), the Secretary shall establish protections
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1 to ensure the confidentiality of any proprietary in2 formation submitted to the Secretary under this sub3 section during such development.

4 ‘‘SEC. 576. ACCESS TO COMPANY INFORMATION.

5 ‘‘(a) COMPLIANCE PROCEDURES.—Each manufac6 turer of tobacco products shall establish procedures to en7 sure compliance with this Act.

8 ‘‘(b) REQUIREMENT.—In addition to any other dis9 closure obligations under this Act, the KIDS Act, or any

10 other law, each manufacturer of tobacco products shall,

11 not later than 90 days after the date of the enactment

12 of the KIDS Act and thereafter as required by the Sec13 retary, disclose to the Secretary all nonpublic information

14 and research in its possession or control relating to the

15 addiction or dependency, or the health or safety of tobacco

16 products, including (without limitation) all research relat17 ing to processes to make tobacco products less hazardous

18 to consumers and the research and documents described

19 in subsection (c).

20 ‘‘(c) RESEARCH AND DOCUMENTS.—The documents

21 described in this section include any documents concerning

22 tobacco product research relating to—

23 ‘‘(1) nicotine, including—

24 ‘‘(A) the interaction between nicotine and

25 other components in tobacco products including
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1 ingredients in the tobacco and smoke compo2 nents;

3 ‘‘(B) the role of nicotine in product design

4 and manufacture, including product charters,

5 and parameters in product development, the to6 bacco blend, filter technology, and paper;

7 ‘‘(C) the role of nicotine in tobacco leaf

8 purchasing;

9 ‘‘(D) reverse engineering activities involv10 ing nicotine (such as analyzing the products of

11 other companies);

12 ‘‘(E) an analysis of nicotine delivery; and

13 ‘‘(F) the biology, psychopharmacology and

14 any other health effects of nicotine;

15 ‘‘(2) other ingredients, including—

16 ‘‘(A) the identification of ingredients in to17 bacco products and constituents in smoke, in18 cluding additives used in product components

19 such as paper, filter, and wrapper;

20 ‘‘(B) any research on the health effects of

21 ingredients; and

22 ‘‘(C) any research or other information ex23 plaining what happens to ingredients when they

24 are heated and burned;
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1 ‘‘(3) less hazardous or safer products, including

2 any research or product development information on

3 activities involving reduced risk, less hazardous, low4 tar or reduced-tar, low-nicotine or reduced-nicotine

5 or nicotine-free products; and

6 ‘‘(4) tobacco product advertising, marketing

7 and promotion, including—

8 ‘‘(A) documents related to the design of

9 advertising campaigns, including the desired de10 mographics for individual products on the mar11 ket or being tested;

12 ‘‘(B) documents concerning the age of ini13 tiation of tobacco use, general tobacco use be14 havior, beginning smokers, pre-smokers, and

15 new smokers;

16 ‘‘(C) documents concerning the effects of

17 advertising; and

18 ‘‘(D) documents concerning future mar19 keting options or plans in light of the require20 ments and regulations to be imposed under this

21 subchapter or the KIDS Act.

22 ‘‘(d) AUTHORITY OF SECRETARY.—With respect to

23 tobacco product manufacturers, the Secretary shall have

24 the same access to records and information and inspection
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1 authority as is available with respect to manufacturers of

2 other medical devices.

3 ‘‘SEC. 577. OVERSIGHT OF TOBACCO PRODUCT MANUFAC4 TURING.

5 ‘‘The Secretary shall by regulation prescribe good

6 manufacturing practice standards for tobacco products.

7 Such regulations shall be modeled after good manufac8 turing practice regulations for medical devices, food, and

9 other items under section 520(f). Such standards shall be

10 directed specifically toward tobacco products, and shall

11 include—

12 ‘‘(1) a quality control system, to ensure that to13 bacco products comply with such standards;

14 ‘‘(2) a system for inspecting tobacco product

15 materials to ensure their compliance with such

16 standards;

17 ‘‘(3) requirements for the proper handling of

18 finished tobacco products;

19 ‘‘(4) strict tolerances for pesticide chemical resi20 dues in or on tobacco or tobacco product commod21 ities in the possession of the manufacturer, except

22 that nothing in this paragraph shall be construed to

23 affect any authority of the Environmental Protection

24 Agency;
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1 ‘‘(5) authority for officers or employees of the

2 Secretary to inspect any factory, warehouse, or other

3 establishment of any tobacco product manufacturer,

4 and to have access to records, files, papers, proc5 esses, controls and facilities related to tobacco prod6 uct manufacturing, in accordance with appropriate

7 authority and rules promulgated under this Act; and

8 ‘‘(6) a requirement that the tobacco product

9 manufacturer maintain such files and records as the

10 Secretary may specify, as well as that the manufac11 turer report to the Secretary such information as

12 the Secretary shall require, in accordance with sec13 tion 519.

14 ‘‘SEC. 578. PRESERVATION OF STATE AND LOCAL AUTHOR15 ITY.

16 ‘‘Notwithstanding section 521 and except as other17 wise provided for in section 572(e), nothing in this sub18 chapter shall be construed as prohibiting a State or local19 ity from imposing requirements, prohibitions, penalties or

20 other measures to further the purposes of this subchapter

21 that are in addition to the requirements, prohibitions, or

22 penalties required under this subchapter. State and local

23 governments may impose additional tobacco product con24 trol measures to further restrict or limit the use of such

25 products.’’.
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1 SEC. 1343. FUNDING.

2 (a) AUTHORIZATION OF APPROPRIATIONS.—There

3 are authorized to be appropriated such sums as may be

4 necessary to carry out this part (and the amendments

5 made by this part).

6 (b) TRIGGER.—No expenditures shall be made under

7 this part (or the amendments made by this part) during

8 any fiscal year in which the annual amount appropriated

9 for the Food and Drug Administration is less than the

10 amount so appropriated for the prior fiscal year.

11 SEC. 1344. REPEALS.

12 The following provisions of law are repealed:

13 (1) The Federal Cigarette Labeling and Adver14 tising Act (15 U.S.C. 1331 et seq.), except for sec15 tions 5(d)(1) and (2) and 6.

16 (2) The Comprehensive Smokeless Tobacco

17 Health Education Act of 1986 (15 U.S.C. 4401 et

18 seq.), except for sections 3(f) and 8(a) and (b).

19 (3) The Comprehensive Smoking Education Act

20 of 1964 (Public law 98-474).

21 Subchapter B—Miscellaneous Provisions

22 SEC. 1351. NONAPPLICATION TO TOBACCO PRODUCERS.

23 (a) IN GENERAL.—This chapter and the amendments

24 made by this chapter shall not apply to the producers of

25 tobacco leaf, including tobacco growers, tobacco ware26 houses, and tobacco grower cooperatives.
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1 (b) RULE OF CONSTRUCTION.—Nothing in this chap2 ter, or an amendment made by this chapter, shall be con3 strued to provide the Secretary of Health and Human

4 Services with the authority to—

5 (1) enter onto a farm owned by a producer of

6 tobacco leaf without the written consent of such pro7 ducer; or

8 (2) promulgate regulations on any matter that

9 involves the production of tobacco leaf or a producer

10 thereof, other than activities by a manufacturer that

11 affect production.

12 (c) MANUFACTURER ACTING AS PRODUCER.—Not13 withstanding any other provision of this section, if a pro14 ducer of tobacco leaf is also a tobacco product manufac15 turer or is owned or controlled by a tobacco product manu16 facturer, the producer shall be subject to the provisions

17 of this chapter, and the amendments made by this chap18 ter, in the producer’s capacity as a manufacturer.

19 (d) DEFINITION.—In this section, the term ‘‘con20 trolled by’’ means a producer that is a member of the same

21 controlled group of corporations, as that term is used for

22 purposes of section 52(a) of the Internal Revenue Code

23 of 1986, or under common control within the meaning of

24 the regulations promulgated under section 52(b) of such

25 Code.
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1 SEC. 1352. EQUAL TREATMENT OF RETAIL OUTLETS.

2 The Secretary of Health and Human Services shall

3 promulgate regulations to require that retail establish4 ments that are accessible to individuals under the age of

5 18, for which the predominant business is the sale of to6 bacco products, comply with any advertising restrictions

7 applicable to such establishments.

8 CHAPTER 4—COVERAGE OF CHILDHOOD

9 IMMUNIZATIONS

10 SEC. 1361. SHORT TITLE.

11 This chapter be cited as the ‘‘Comprehensive Insur12 ance Coverage of Childhood Immunization Act of 2001’’.

13 SEC. 1362. AMENDMENTS TO THE EMPLOYEE RETIREMENT

14 INCOME SECURITY ACT OF 1974.

15 (a) IN GENERAL.—Subpart B of part 7 of subtitle

16 B of title I of the Employee Retirement Income Security

17 Act of 1974 (29 U.S.C. 1185 et seq.), as amended by sec18 tion 1214, is further amended by adding at the end the

19 following:

20 ‘‘SEC. 715. STANDARD RELATING TO COVERAGE OF CHILD21 HOOD IMMUNIZATION.

22 ‘‘(a) IN GENERAL.—A group health plan, and a

23 health insurance issuer offering health insurance coverage

24 in connection with a group health plan, shall provide for

25 each plan year comprehensive coverage for routine immu26 nizations for each individual who is a dependent of a par-
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1 ticipant or beneficiary under the plan and is under 19

2 years of age.

3 ‘‘(b) COMPREHENSIVE COVERAGE.—For purposes of

4 this section, comprehensive coverage for routine immuni5 zations for a plan year consists of coverage, without

6 deductibles, coinsurance, or other cost-sharing, for immu7 nizations (including the vaccine itself) in accordance with

8 the most recent version of the Recommended Childhood

9 Immunization Schedule issued prior to such plan year by

10 the Advisory Committee on Immunization Practices of the

11 Centers for Disease Control and Prevention.’’.

12 (b) CONFORMING AMENDMENT.—The table of con13 tents in section 1 of the Employee Retirement Income Se14 curity Act of 1974, as amended by section 1214, is further

15 amended by inserting after the item relating to section

16 714 the following new item:

‘‘Sec. 715. Standard relating to coverage of childhood immunization.’’.

17 SEC. 1363. AMENDMENTS TO THE PUBLIC HEALTH SERVICE

18 ACT.

19 (a) GROUP MARKET.—Subpart 2 of part A of title

20 XXVII of the Public Health Service Act (42 U.S.C.

21 300gg–4 et seq.) is amended by adding at the end the

22 following:
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1 ‘‘SEC. 2707. STANDARD RELATING TO COVERAGE OF CHILD2 HOOD IMMUNIZATION.

3 ‘‘(a) IN GENERAL.—A group health plan, and a

4 health insurance issuer offering health insurance coverage

5 in connection with a group health plan, shall provide for

6 each plan year comprehensive coverage for routine immu7 nizations for each individual who is a dependent of a par8 ticipant or beneficiary under the plan and is under 19

9 years of age.

10 ‘‘(b) COMPREHENSIVE COVERAGE.—For purposes of

11 this section, comprehensive coverage for routine immuni12 zations for a plan year consists of coverage, without

13 deductibles, coinsurance, or other cost-sharing, for immu14 nizations (including the vaccine itself) in accordance with

15 the most recent version of the Recommended Childhood

16 Immunization Schedule issued prior to such plan year by

17 the Advisory Committee on Immunization Practices of the

18 Centers for Disease Control and Prevention.’’.

19 (b) INDIVIDUAL MARKET.—The first subpart 3 of

20 part B of title XXVII of the Public Health Service Act

21 (42 U.S.C. 300gg–51 et seq.) (relating to other require22 ments) (42 U.S.C. 300gg–51 et seq.) is amended—

23 (1) by redesignating such subpart as subpart 2;

24 and

25 (2) by inserting after section 2753, as added by

26 section 1213(c), the following:
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1 ‘‘SEC. 2754. STANDARD RELATING TO COVERAGE OF CHILD2 HOOD IMMUNIZATION.

3 ‘‘The provisions of section 2707 shall apply to health

4 insurance coverage offered by a health insurance issuer

5 in the individual market in the same manner as they apply

6 to health insurance coverage offered by a health insurance

7 issuer in connection with a group health plan in the small

8 or large group market.’’.

9 SEC. 1364. AMENDMENTS TO THE INTERNAL REVENUE

10 CODE OF 1986.

11 Subchapter B of chapter 100 of the Internal Revenue

12 Code of 1986 is amended—

13 (1) in the table of sections, by inserting after

14 the item relating to section 9812 the following new

15 item:

‘‘Sec. 9813. Standard relating to coverage of childhood immunization.’’;

16 and

17 (2) by inserting after section 9812 the fol18 lowing:

19 ‘‘SEC. 9813. STANDARD RELATING TO COVERAGE OF CHILD20 HOOD IMMUNIZATION.

21 ‘‘(a) IN GENERAL.—A group health plan shall pro22 vide for each plan year comprehensive coverage for routine

23 immunizations for each individual who is a dependent of
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1 a participant or beneficiary under the plan and is under

2 19 years of age.

3 ‘‘(b) COMPREHENSIVE COVERAGE.—For purposes of

4 this section, comprehensive coverage for routine immuni5 zations for a plan year consists of coverage, without

6 deductibles, coinsurance, or other cost-sharing, for immu7 nizations (including the vaccine itself) in accordance with

8 the most recent version of the Recommended Childhood

9 Immunization Schedule issued prior to such plan year by

10 the Advisory Committee on Immunization Practices of the

11 Centers for Disease Control and Prevention.’’.

12 SEC. 1365. EFFECTIVE DATES.

13 (a) GROUP HEALTH INSURANCE COVERAGE.—Sub14 ject to subsection (c), the amendments made by sections

15 1362, 1363(a), and 1364 apply with respect to group

16 health plans for plan years beginning on or after January

17 1, 2002.

18 (b) INDIVIDUAL HEALTH INSURANCE COVERAGE.—

19 The amendment made by section 1363(b) applies with re20 spect to health insurance coverage offered, sold, issued,

21 renewed, in effect, or operated in the individual market

22 on or after such date.

23 (c) COLLECTIVE BARGAINING EXCEPTION.—In the

24 case of a group health plan maintained pursuant to 1 or

25 more collective bargaining agreements between employee
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1 representatives and 1 or more employers ratified before

2 the date of enactment of this Act, the amendments made

3 sections 1362, 1363(a), and 1364 shall not apply to plan

4 years beginning before the later of—

5 (1) the earliest date as of which all such collec6 tive bargaining agreements relating to the plan have

7 terminated (determined without regard to any exten8 sion thereof agreed to after the date of the enact9 ment of this Act), or

10 (2) January 1, 2002.

11 For purposes of paragraph (1), any plan amendment made

12 pursuant to a collective bargaining agreement relating to

13 the plan which amends the plan solely to conform to any

14 requirement added by sections 1362, 1363(a), and 1364

15 shall not be treated as a termination of such collective bar16 gaining agreement.

17 Subtitle E—Reducing

18 Environmental Health Risks

19 CHAPTER 1—ENVIRONMENTAL

20 PROTECTION OF CHILDREN

21 SEC. 1401. SHORT TITLE.

22 This chapter may be cited as the ‘‘Children’s Envi23 ronmental Protection Act’’.
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1 SEC. 1402. ENVIRONMENTAL PROTECTION FOR CHILDREN

2 AND OTHER VULNERABLE SUBPOPULATIONS.

3 The Toxic Substances Control Act (15 U.S.C. 2601

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

5 ‘‘TITLE V—ENVIRONMENTAL

6 PROTECTION FOR CHILDREN

7 AND OTHER VULNERABLE

8 SUBPOPULATIONS

9 ‘‘SEC. 501. FINDINGS AND POLICY.

10 ‘‘(a) FINDINGS.—Congress finds that—

11 ‘‘(1) the protection of public health and safety

12 depends on individuals and government officials

13 being aware of the pollution dangers that exist in

14 their homes, schools, and communities, and whether

15 those dangers present special threats to the health

16 of children and other vulnerable subpopulations;

17 ‘‘(2) children spend much of their young lives

18 in schools and day care centers, and may face sig19 nificant exposure to pesticides and other environ20 mental pollutants in those locations;

21 ‘‘(3) the metabolism, physiology, and diet of

22 children, and exposure patterns of children to envi23 ronmental pollutants, differ from those of adults,

24 and those differences and the inherent nature of im25 mature and developing systems of children can make
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1 children more susceptible than adults to the harmful

2 effects of environmental pollutants;

3 ‘‘(4) a study conducted by the National Acad4 emy of Sciences that particularly considered the ef5 fects of pesticides on children concluded that current

6 approaches to assessing pesticide risks typically do

7 not consider risks to children and, as a result, cur8 rent standards and tolerances often fail to ade9 quately protect children;

10 ‘‘(5) there are often insufficient data to enable

11 the Administrator, when establishing an environ12 mental and public health standard for an environ13 mental pollutant, to evaluate the special suscepti14 bility or exposure of children to environmental pol15 lutants;

16 ‘‘(6) when data are lacking to evaluate the spe17 cial susceptibility or exposure of children to an envi18 ronmental pollutant, the Administrator generally—

19 ‘‘(A) does not presume that the environ20 mental pollutant presents a special risk to chil21 dren; and

22 ‘‘(B) does not apply a special or additional

23 margin of safety to protect the health of chil24 dren in establishing an environmental or public

25 health standard for that pollutant; and
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1 ‘‘(7) safeguarding children from environmental

2 pollutants requires the systematic collection of data

3 concerning the special susceptibility and exposure of

4 children to those pollutants, and the adoption of an

5 additional safety factor of at least 10-fold in the es6 tablishment of environmental and public health

7 standards where reliable data are not available.

8 ‘‘(b) POLICY.—It is the policy of the United States

9 that—

10 ‘‘(1) the public has the right to be informed

11 about the pollution dangers to which children are

12 being exposed in their homes, schools and commu13 nities, and how those dangers may present special

14 health threats to children and other vulnerable sub15 populations;

16 ‘‘(2) each environmental and public health

17 standard for an environmental pollutant established

18 by the Administrator must, with an adequate margin

19 of safety, protect children and other vulnerable sub20 populations;

21 ‘‘(3) where data sufficient to evaluate the spe22 cial susceptibility and exposure of children (including

23 exposure in utero) to an environmental pollutant are

24 lacking, the Administrator should presume that the

25 environmental pollutant poses a special risk to chil-
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1 dren and should apply an appropriate additional

2 margin of safety of at least 10-fold in establishing

3 an environmental or public health standard for that

4 environmental pollutant;

5 ‘‘(4) since it is difficult to identify all conceiv6 able risks and address all uncertainties associated

7 with pesticide use, the use of dangerous pesticides in

8 schools and day care centers should be eliminated;

9 and

10 ‘‘(5) the Environmental Protection Agency, the

11 Department of Health and Human Services (includ12 ing the National Institute of Environmental Health

13 Sciences and the Agency for Toxic Substances and

14 Disease Registry), the National Institutes of Health,

15 and other Federal agencies should support research

16 on the short-term and long-term health effects of cu17 mulative and synergistic exposures of children and

18 other vulnerable subpopulations to environmental

19 pollutants.

20 ‘‘SEC. 502. DEFINITIONS.

21 ‘‘In this title:

22 ‘‘(1) CHILD.—The term ‘child’ means an indi23 vidual 18 years of age or younger.

24 ‘‘(2) COMMITTEE.—The term ‘Committee’

25 means the Children’s Environmental Health Protec-
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1 tion Advisory Committee established under section

2 506.

3 ‘‘(3) DAY CARE CENTER.—The term ‘day care

4 center’ means a center-based child care provider that

5 is licensed, regulated, or registered under applicable

6 State or local law.

7 ‘‘(4) ENVIRONMENTAL POLLUTANT.—The term

8 ‘environmental pollutant’ includes—

9 ‘‘(A) a hazardous substance (as defined in

10 section 101 of the Comprehensive Environ11 mental Response, Compensation, and Liability

12 Act of 1980 (42 U.S.C. 9601));

13 ‘‘(B) a contaminant (as defined in section

14 1401 of the Safe Drinking Water Act (42

15 U.S.C. 300f));

16 ‘‘(C) an air pollutant subject to regulation

17 under the Clean Air Act (42 U.S.C. 7401 et

18 seq.);

19 ‘‘(D) a water pollutant subject to regula20 tion under the Federal Water Pollution Control

21 Act (33 U.S.C. 1251 et seq.); and

22 ‘‘(E) a pesticide subject to regulation

23 under the Federal Insecticide, Fungicide, and

24 Rodenticide Act (7 U.S.C. 136 et seq.).
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1 ‘‘(5) PESTICIDE.—The term ‘pesticide’ has the

2 meaning given the term in section 2 of the Federal

3 Insecticide, Fungicide, and Rodenticide Act (7

4 U.S.C. 136).

5 ‘‘(6) SCHOOL.—The term ‘school’ means an ele6 mentary school (as defined in section 14101 of the

7 Elementary and Secondary Education Act of 1965

8 (20 U.S.C. 8801)), a secondary school (as defined in

9 section 14101 of that Act), a kindergarten, or a

10 nursery school that is public or receives Federal

11 funding.

12 ‘‘(7) VULNERABLE SUBPOPULATION.—The

13 term ‘vulnerable subpopulation’ means—

14 ‘‘(A) children;

15 ‘‘(B) pregnant women;

16 ‘‘(C) the elderly;

17 ‘‘(D) individuals with a history of serious

18 illness; and

19 ‘‘(E) any other subpopulation identified by

20 the Administrator as being likely to experience

21 special health risks from environmental pollut22 ants.

23 ‘‘SEC. 503. SAFEGUARDING CHILDREN AND OTHER VULNER24 ABLE SUBPOPULATIONS.

25 ‘‘(a) IN GENERAL.—The Administrator shall—
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1 ‘‘(1) ensure that each environmental and public

2 health standard for an environmental pollutant pro3 tects children and other vulnerable subpopulations

4 with an adequate margin of safety;

5 ‘‘(2) explicitly evaluate data concerning the spe6 cial susceptibility and exposure of children to any

7 environmental pollutant for which an environmental

8 or public health standard is established; and

9 ‘‘(3) adopt an additional margin of safety of at

10 least 10-fold in the establishment of an environ11 mental or public health standard for an environ12 mental pollutant in the absence of reliable data on

13 toxicity and exposure of the child to an environ14 mental pollutant or if there is a lack of reliable data

15 on the susceptibility of the child to an environmental

16 pollutant for which the environmental and public

17 health standard is being established.

18 ‘‘(b) ESTABLISHING, MODIFYING, OR REEVALUATING

19 ENVIRONMENTAL AND PUBLIC HEALTH STANDARDS.—

20 ‘‘(1) IN GENERAL.—In establishing, modifying,

21 or reevaluating any environmental or public health

22 standard for an environmental pollutant under any

23 law administered by the Administrator, the Adminis24 trator shall take into consideration available infor25 mation concerning—
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1 ‘‘(A) all routes of exposure of children to

2 that environmental pollutant; and

3 ‘‘(B) the special susceptibility of children

4 to the environmental pollutant, including—

5 ‘‘(i) neurological differences between

6 children and adults;

7 ‘‘(ii) the effect of exposure to that en8 vironmental pollutant in utero; and

9 ‘‘(iii) the cumulative effect on a child

10 of exposure to that environmental pollutant

11 and any other substance having a common

12 toxicological mechanism.

13 ‘‘(2) ADDITIONAL SAFETY MARGIN.—If any of

14 the data described in paragraph (1) are not avail15 able, the Administrator shall, in completing a risk

16 assessment, risk characterization, or other assess17 ment of risk underlying an environmental or public

18 health standard, adopt an additional margin of safe19 ty of at least 10-fold to take into account—

20 ‘‘(A) potential pre-natal and post-natal

21 toxicity of an environmental pollutant; and

22 ‘‘(B) the completeness of data concerning

23 the exposure and toxicity of the environmental

24 pollutant to children.
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1 ‘‘(c) IDENTIFICATION AND REVISION OF CURRENT

2 ENVIRONMENTAL AND PUBLIC HEALTH STANDARDS

3 THAT PRESENT SPECIAL RISKS TO CHILDREN.—

4 ‘‘(1) IN GENERAL.—Not later than 1 year after

5 the date of enactment of this title and annually

6 thereafter, based on the recommendations of the

7 Committee, the Administrator shall—

8 ‘‘(A) repromulgate, in accordance with this

9 section, at least 3 of the environmental and

10 public health standards identified by the Com11 mittee as posing a special risk to children; or

12 ‘‘(B) publish a finding in the Federal Reg13 ister that provides the reasons of the Adminis14 trator for declining to repromulgate at least 3

15 of the environmental and public health stand16 ards identified by the Committee as posing a

17 special risk to children.

18 ‘‘(2) DETERMINATION BY ADMINISTRATOR.—If

19 the Administrator makes the finding described in

20 paragraph (1)(B), the Administrator shall repromul21 gate in accordance with this section at least 3 envi22 ronmental and public health standards determined

23 to pose a greater risk to children’s health than the

24 environmental and public health standards identified
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1 by the Children’s Environmental Health Protection

2 Advisory Committee.

3 ‘‘(3) REPORT.—Not later than 1 year after the

4 date of enactment of this title and annually there5 after, the Administrator shall submit a report to

6 Congress describing the progress made by the Ad7 ministrator in carrying out this subsection.

8 ‘‘SEC. 504. SAFER ENVIRONMENT FOR CHILDREN.

9 ‘‘Not later than 1 year after the date of enactment

10 of this title, the Administrator shall—

11 ‘‘(1) identify environmental pollutants com12 monly used or found in areas that are reasonably ac13 cessible to children;

14 ‘‘(2) create a scientifically peer-reviewed list of

15 substances identified under paragraph (1) with

16 known, likely, or suspected health risks to children;

17 ‘‘(3) develop a scientifically peer reviewed list of

18 safer-for-children substances and products rec19 ommended by the Administrator for use in areas

20 that are reasonably accessible to children that, when

21 applied as recommended by the manufacturer, will

22 minimize potential risks to children from exposure to

23 environmental pollutants;

24 ‘‘(4) establish guidelines to help reduce and

25 eliminate exposure of children to environmental pol-
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1 lutants in areas reasonably accessible to children, in2 cluding advice on how to establish an integrated pest

3 management program;

4 ‘‘(5) develop a family right-to-know information

5 kit that includes a summary of helpful information

6 and guidance to families, such as—

7 ‘‘(A) the information developed under

8 paragraph (3);

9 ‘‘(B) the guidelines established under para10 graph (4);

11 ‘‘(C) information on the potential health

12 effects of environmental pollutants;

13 ‘‘(D) practical suggestions on how parents

14 may reduce the exposure of their children to en15 vironmental pollutants; and

16 ‘‘(E) other information determined to be

17 relevant by the Administrator, in cooperation

18 with the Director of the Centers for Disease

19 Control and Prevention;

20 ‘‘(6) make all information developed under this

21 subsection available to Federal and State agencies,

22 to the public, and on the Internet; and

23 ‘‘(7) review and update the lists developed

24 under paragraphs (2) and (3) at least annually.
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1 ‘‘SEC. 505. RESEARCH TO IMPROVE INFORMATION ON THE

2 EFFECTS OF ENVIRONMENTAL POLLUTANTS

3 ON CHILDREN.

4 ‘‘(a) EXPOSURE AND TOXICITY DATA.—The Admin5 istrator, the Secretary of Agriculture, and the Secretary

6 of Health and Human Services shall coordinate and sup7 port the development and implementation of basic and ap8 plied research initiatives to examine—

9 ‘‘(1) the health effects and toxicity of pesticides

10 (including active and inert ingredients) and other

11 environmental pollutants on children and other vul12 nerable subpopulations; and

13 ‘‘(2) the exposure of children and other vulner14 able subpopulations to environmental pollutants.

15 ‘‘(b) BIENNIAL REPORTS.—The Administrator, the

16 Secretary of Agriculture, and the Secretary of Health and

17 Human Services shall submit biennial reports to Congress

18 describing actions taken to carry out this section.

19 ‘‘SEC. 506. CHILDREN’S ENVIRONMENTAL HEALTH PROTEC20 TION ADVISORY COMMITTEE.

21 ‘‘(a) ESTABLISHMENT.—The Administrator shall es22 tablish a Children’s Environmental Health Protection Ad23 visory Committee to assist the Administrator in carrying

24 out this title.

25 ‘‘(b) COMPOSITION.—The Committee shall be com26 prised of—
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1 ‘‘(1) medical professionals specializing in pedi2 atric health;

3 ‘‘(2) educators;

4 ‘‘(3) representatives of community groups;

5 ‘‘(4) representatives of environmental and pub6 lic health nonprofit organizations;

7 ‘‘(5) industry representatives; and

8 ‘‘(6) representatives of State environmental and

9 public health departments.

10 ‘‘(c) DUTIES.—Not later than 2 years after the date

11 of enactment of this title and annually thereafter, the

12 Committee shall develop a list of standards that merit re13 evaluation by the Administrator in order to better protect

14 the health of children.

15 ‘‘(d) TERMINATION.—The Committee shall terminate

16 not later than 15 years after the date on which the Com17 mittee is established.

18 ‘‘SEC. 507. AUTHORIZATION OF APPROPRIATIONS.

19 There are authorized to be appropriated such sums

20 as are necessary to carry out this title.’’.

21 SEC. 1403. CONFORMING AMENDMENT.

22 The table of contents in section 1 of the Toxic Sub23 stances Control Act (15 U.S.C. prec. 2601) is amended

24 by adding at the end the following:

‘‘TITLE V—ENVIRONMENTAL PROTECTION FOR CHILDREN AND

OTHER VULNERABLE SUBPOPULATIONS
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‘‘Sec. 501. Findings and policy.

‘‘Sec. 502. Definitions.

‘‘Sec. 503. Safeguarding children and other vulnerable subpopulations.

‘‘Sec. 504. Safer environment for children.

‘‘Sec. 505. Research to improve information on the effects of environmental pollutants on children.

‘‘Sec. 506. Children’s environmental health protection advisory committee.

‘‘Sec. 507. Authorization of appropriations.’’.

1 CHAPTER 2—SCHOOL ENVIRONMENTAL

2 PROTECTION

3 SEC. 1411. SHORT TITLE.

4 This chapter may be cited as the ‘‘School Environ5 ment Protection Act’’.

6 SEC. 1412. INTEGRATED PEST MANAGEMENT SYSTEMS FOR

7 SCHOOLS.

8 The Federal Insecticide, Fungicide, and Rodenticide

9 Act is amended—

10 (1) by redesignating sections 33 and 34 (7

11 U.S.C. 136x, 136y) as sections 34 and 35, respec12 tively; and

13 (2) by inserting after section 32 (7 U.S.C.

14 136w–7) the following:

15 ‘‘SEC. 33. INTEGRATED PEST MANAGEMENT SYSTEMS FOR

16 SCHOOLS.

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

18 ‘‘(1) BOARD.—The term ‘Board’ means the Na19 tional School Integrated Pest Management Advisory

20 Board established under subsection (c).
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1 ‘‘(2) CONTACT PERSON.—The term ‘contact

2 person’ means an individual who is—

3 ‘‘(A) knowledgeable about integrated pest

4 management systems; and

5 ‘‘(B) designated by a local educational

6 agency as the contact person under subsection

7 (f).

8 ‘‘(3) CRACK AND CREVICE TREATMENT.—The

9 term ‘crack and crevice treatment’ means the appli10 cation of small quantities of a pesticide in a building

11 into openings such as those commonly found at ex12 pansion joints, between levels of construction, and

13 between equipment and floors.

14 ‘‘(4) EMERGENCY.—The term ‘emergency’

15 means an urgent need to mitigate or eliminate a

16 pest that threatens the health or safety of a student

17 or staff member.

18 ‘‘(5) FUND.—The term ‘Fund’ means the Inte19 grated Pest Management Trust Fund established

20 under subsection (m).

21 ‘‘(6) INTEGRATED PEST MANAGEMENT SYS22 TEM.—The term ‘integrated pest management sys23 tem’ means a managed pest control system that—

24 ‘‘(A) eliminates or mitigates economic,

25 health, and aesthetic damage caused by pests;
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1 ‘‘(B) uses—

2 ‘‘(i) integrated methods;

3 ‘‘(ii) site or pest inspections;

4 ‘‘(iii) pest population monitoring;

5 ‘‘(iv) an evaluation of the need for

6 pest control; and

7 ‘‘(v) 1 or more pest control methods,

8 including sanitation, structural repair, me9 chanical and biological controls, other non10 chemical methods, and (if nontoxic options

11 are unreasonable and have been exhausted)

12 least toxic pesticides; and

13 ‘‘(C) minimizes—

14 ‘‘(i) the use of pesticides; and

15 ‘‘(ii) the risk to human health and the

16 environment associated with pesticide ap17 plications.

18 ‘‘(7) LEAST TOXIC PESTICIDES.—

19 ‘‘(A) IN GENERAL.—The term ‘least toxic

20 pesticides’ means—

21 ‘‘(i) boric acid and disodium

22 octoborate tetrahydrate;

23 ‘‘(ii) silica gels;

24 ‘‘(iii) diatomaceous earth;
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1 ‘‘(iv) nonvolatile insect and rodent

2 baits in tamper resistant containers or for

3 crack and crevice treatment only;

4 ‘‘(v) microbe-based insecticides;

5 ‘‘(vi) botanical insecticides (not in6 cluding synthetic pyrethroids) without toxic

7 synergists;

8 ‘‘(vii) biological, living control agents;

9 and

10 ‘‘(viii) materials for which the

11 inert ingredients are nontoxic and dis12 closed.

13 ‘‘(B) EXCLUSIONS.—The term ‘least toxic

14 pesticides’ does not include a pesticide that is

15 determined by the Administrator to be an

16 acutely or moderately toxic pesticide, car17 cinogen, mutagen, teratogen, reproductive toxin,

18 developmental neurotoxin, endocrine disrupter,

19 or immune system toxin, and any application of

20 the pesticide using a broadcast spray, dust,

21 tenting, fogging, or baseboard spray applica22 tion.

23 ‘‘(8) LIST.—The term ‘list’ means the list of

24 least toxic pesticides established under subsection

25 (d).
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1 ‘‘(9) LOCAL EDUCATIONAL AGENCY.—The term

2 ‘local educational agency’ has the meaning given the

3 term in section 14101 of the Elementary and Sec4 ondary Education Act of 1965 (20 U.S.C. 8801).

5 ‘‘(10) OFFICIAL.—The term ‘official’ means the

6 official appointed by the Administrator under sub7 section (e).

8 ‘‘(11) PERSON.—The term ‘person’ means—

9 ‘‘(A) an individual that attends, has chil10 dren enrolled in, works at, or uses a school;

11 ‘‘(B) a resident of a school district; and

12 ‘‘(C) any other individual that may be af13 fected by pest management activities of a

14 school.

15 ‘‘(12) PESTICIDE.—

16 ‘‘(A) IN GENERAL.—The term ‘pesticide’

17 means any substance or mixture of substances,

18 including herbicides and bait stations, intended

19 for—

20 ‘‘(i) preventing, destroying, repelling,

21 or mitigating any pest;

22 ‘‘(ii) use as a plant regulator, defo23 liant, or desiccant; or

24 ‘‘(iii) use as a spray adjuvant such as

25 a wetting agent or adhesive.
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1 ‘‘(B) EXCLUSION.—The term ‘pesticide’

2 does not include antimicrobial agents such as

3 disinfectants or deodorizers used for cleaning

4 products.

5 ‘‘(13) SCHOOL.—The term ‘school’ means a

6 public—

7 ‘‘(A) elementary school (as defined in sec8 tion 14101 of the Elementary and Secondary

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

10 ‘‘(B) secondary school (as defined in sec11 tion 14101 of that Act); or

12 ‘‘(C) kindergarten or nursery school.

13 ‘‘(14) SCHOOL GROUNDS.—

14 ‘‘(A) IN GENERAL.—The term ‘school

15 grounds’ means the area outside of the school

16 buildings controlled, managed, or owned by the

17 school or school district.

18 ‘‘(B) INCLUSIONS.—The term ‘school

19 grounds’ includes a lawn, playground, sports

20 field, and any other property or facility con21 trolled, managed, owned, or leased for use for

22 a school-sponsored event, by a school.

23 ‘‘(15) SPACE SPRAYING.—

24 ‘‘(A) IN GENERAL.—The term ‘space

25 spraying’ means application of a pesticide by
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1 discharge into the air throughout an inside

2 area.

3 ‘‘(B) INCLUSION.—The term ‘space spray4 ing’ includes the application of a pesticide using

5 a broadcast spray, dust, tenting, or fogging.

6 ‘‘(C) EXCLUSION.—The term ‘space spray7 ing’ does not include crack and crevice treat8 ment.

9 ‘‘(16) STAFF MEMBER.—

10 ‘‘(A) IN GENERAL.—The term ‘staff mem11 ber’ means an employee of a school or local

12 educational agency.

13 ‘‘(B) INCLUSIONS.—The term ‘staff mem14 ber’ includes an administrator, teacher, and

15 other person that is regularly employed by a

16 school or local educational agency.

17 ‘‘(C) EXCLUSIONS.—The term ‘staff mem18 ber’ does not include—

19 ‘‘(i) an employee hired by a school,

20 local educational agency, or State to apply

21 a pesticide; or

22 ‘‘(ii) a person assisting in the applica23 tion of a pesticide.

24 ‘‘(17) STATE EDUCATIONAL AGENCY.—The

25 term ‘State educational agency’ has the meaning
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1 given the term in section 14101 of the Elementary

2 and Secondary Education Act of 1965 (20 U.S.C.

3 8801).

4 ‘‘(18) UNIVERSAL NOTIFICATION.—The term

5 ‘universal notification’ means notice provided by a

6 local educational agency or school to—

7 ‘‘(A) all parents or guardians of children

8 attending the school; and

9 ‘‘(B) staff members of the school or local

10 educational agency.

11 ‘‘(b) INTEGRATED PEST MANAGEMENT SYSTEMS.—

12 ‘‘(1) IN GENERAL.—The Administrator, in con13 sultation with the Secretary of Education, shall es14 tablish a National School Integrated Pest Manage15 ment Advisory System to develop and update uni16 form standards and criteria for implementing inte17 grated pest management systems in schools.

18 ‘‘(2) IMPLEMENTATION.—Not later than 18

19 months after the date of enactment of this sub20 section, each local educational agency of a school

21 district shall develop and implement in each of the

22 schools in the school district an integrated pest man23 agement system that complies with this section.

24 ‘‘(3) STATE PROGRAMS.—If, on the date of en25 actment of this section, a State maintains an inte-
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1 grated pest management system that meets the

2 standards and criteria established under paragraph

3 (1) (as determined by the Board), a local edu4 cational agency in the State may continue to imple5 ment the system in a school or in the school district

6 in accordance with paragraph (2).

7 ‘‘(4) APPLICATION TO SCHOOLS AND SCHOOL

8 GROUNDS.—The requirements of this section that

9 apply to a school, including the requirement to im10 plement an integrated management system, apply to

11 pesticide application in a school building and on the

12 school grounds.

13 ‘‘(5) APPLICATION OF PESTICIDES WHEN

14 SCHOOLS IN USE.—A school shall prohibit—

15 ‘‘(A) the application of a pesticide when a

16 school or school grounds are occupied or in use;

17 or

18 ‘‘(B) the use of an area or room treated by

19 a pesticide, other than a least toxic pesticide,

20 during the 24-hour period beginning at the end

21 of the treatment.

22 ‘‘(c) NATIONAL SCHOOL INTEGRATED PEST MAN23 AGEMENT ADVISORY BOARD.—

24 ‘‘(1) IN GENERAL.—The Administrator, in con25 sultation with the Secretary of Education, shall es-
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1 tablish a National School Integrated Pest Manage2 ment Advisory Board to—

3 ‘‘(A) establish uniform standards and cri4 teria for developing integrated pest manage5 ment systems and policies in schools;

6 ‘‘(B) develop standards for the use of least

7 toxic pesticides in schools; and

8 ‘‘(C) advise the Administrator on any other

9 aspects of the implementation of this section.

10 ‘‘(2) COMPOSITION OF BOARD.—The Board

11 shall be composed of 12 members and include 1 rep12 resentative from each of the following groups:

13 ‘‘(A) Parents.

14 ‘‘(B) Public health care professionals.

15 ‘‘(C) Medical professionals.

16 ‘‘(D) State integrated pest management

17 system coordinators.

18 ‘‘(E) Independent integrated pest manage19 ment specialists that have carried out school in20 tegrated pest management programs.

21 ‘‘(F) Environmental advocacy groups.

22 ‘‘(G) Children’s health advocacy groups.

23 ‘‘(H) Trade organization for pest control

24 operators.

25 ‘‘(I) Teachers and staff members.
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1 ‘‘(J) School maintenance staff.

2 ‘‘(K) School administrators.

3 ‘‘(L) School board members.

4 ‘‘(3) APPOINTMENT.—Not later than 180 days

5 after the date of enactment of this section, the Ad6 ministrator shall appoint members of the Board

7 from nominations received from Parent Teacher As8 sociations, school districts, States, and other inter9 ested persons and organizations.

10 ‘‘(4) TERM.—

11 ‘‘(A) IN GENERAL.—A member of the

12 Board shall serve for a term of 5 years, except

13 that the Administrator may shorten the terms

14 of the original members of the Board in order

15 to provide for a staggered term of appointment

16 for all members of the Board.

17 ‘‘(B) CONSECUTIVE TERMS.—Subject to

18 subparagraph (C), a member of the Board shall

19 not serve consecutive terms unless the term of

20 the member has been reduced by the Adminis21 trator.

22 ‘‘(C) MAXIMUM TERM.—In no event may a

23 member of the Board serve for more than 6

24 consecutive years.
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1 ‘‘(5) MEETINGS.—The Administrator shall

2 convene—

3 ‘‘(A) an initial meeting of the Board not

4 later than 60 days after the appointment of the

5 members; and

6 ‘‘(B) subsequent meetings on a periodic

7 basis, but not less often than 2 times each year.

8 ‘‘(6) COMPENSATION.—A member of the Board

9 shall serve without compensation, but may be reim10 bursed by the Administrator for expenses (in accord11 ance with section 5703 of title 5, United States

12 Code) incurred in performing duties as a member of

13 the Board.

14 ‘‘(7) CHAIRPERSON.—The Board shall select a

15 Chairperson for the Board.

16 ‘‘(8) QUORUM.—A majority of the members of

17 the Board shall constitute a quorum for the purpose

18 of conducting business.

19 ‘‘(9) DECISIVE VOTES.—Two-thirds of the votes

20 cast at a meeting of the Board at which a quorum

21 is present shall be decisive for any motion.

22 ‘‘(10) ADMINISTRATION.—The Administrator—

23 ‘‘(A) shall—

24 ‘‘(i) authorize the Board to hire a

25 staff director; and
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1 ‘‘(ii) detail staff of the Environmental

2 Protection Agency, or allow for the hiring

3 of staff for the Board; and

4 ‘‘(B) subject to the availability of appro5 priations, may pay necessary expenses incurred

6 by the Board in carrying out this subtitle, as

7 determined appropriate by the Administrator.

8 ‘‘(11) RESPONSIBILITIES OF THE BOARD.—

9 ‘‘(A) IN GENERAL.—The Board shall pro10 vide recommendations to the Administrator re11 garding the implementation of this section.

12 ‘‘(B) LIST OF LEAST TOXIC PESTICIDES.—

13 Not later than 1 year after the initial meeting

14 of the Board, the Board shall—

15 ‘‘(i) review implementation of this sec16 tion (including use of least toxic pes17 ticides); and

18 ‘‘(ii) review and make recommenda19 tions to the Administrator with respect to

20 new proposed active and inert ingredients

21 or proposed amendments to the list in ac22 cordance with subsection (d).

23 ‘‘(C) TECHNICAL ADVISORY PANELS.—

24 ‘‘(i) IN GENERAL.—The Board shall

25 convene technical advisory panels to pro-
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1 vide scientific evaluations of the materials

2 considered for inclusion on the list.

3 ‘‘(ii) COMPOSITION.—A panel de4 scribed in clause (i) shall include experts

5 on integrated pest management, children’s

6 health, entomology, health sciences, and

7 other relevant disciplines.

8 ‘‘(D) SPECIAL REVIEW.—

9 ‘‘(i) IN GENERAL.—Not later than 2

10 years after the initial meeting of the

11 Board, the Board shall review, with the as12 sistance of a technical advisory panel, pes13 ticides used in school buildings and on

14 school grounds for their acute toxicity and

15 chronic effects, including cancer,

16 mutations, birth defects, reproductive dys17 function, neurological and immune system

18 effects, and endocrine system disruption.

19 ‘‘(ii) DETERMINATION.—The Board—

20 ‘‘(I) shall determine whether the

21 use of pesticides described in clause

22 (i) may endanger the health of chil23 dren; and

24 ‘‘(II) may recommend to the Ad25 ministrator restrictions on pesticide
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1 use in school buildings and on school

2 grounds.

3 ‘‘(12) REQUIREMENTS.—In establishing the

4 proposed list, the Board shall—

5 ‘‘(A) review available information from the

6 Environmental Protection Agency, the National

7 Institute of Environmental Health Studies,

8 medical and scientific literature, and such other

9 sources as appropriate, concerning the potential

10 for adverse human and environmental effects of

11 substances considered for inclusion in the pro12 posed list; and

13 ‘‘(B) cooperate with manufacturers of sub14 stances considered for inclusion in the proposed

15 list to obtain a complete list of ingredients and

16 determine that such substances contain inert

17 ingredients that are generally recognized as

18 safe.

19 ‘‘(13) PETITIONS.—The Board shall establish

20 procedures under which individuals may petition the

21 Board for the purpose of evaluating substances for

22 inclusion on the list.

23 ‘‘(14) PERIODIC REVIEW.—
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1 ‘‘(A) IN GENERAL.—The Board shall re2 view each substance included on the list at least

3 once during each 5-year period beginning on—

4 ‘‘(i) the date that the substance was

5 initially included on the list; or

6 ‘‘(ii) the date of the last review of the

7 substance under this subsection.

8 ‘‘(B) SUBMISSION TO ADMINISTRATOR.—

9 The Board shall submit the results of a review

10 under subparagraph (A) to the Administrator

11 with a recommendation as to whether the sub12 stance should continue to be included on the

13 list.

14 ‘‘(15) CONFIDENTIALITY.—Any business sen15 sitive material obtained by the Board in carrying out

16 this section shall be treated as confidential business

17 information by the Board and shall not be released

18 to the public.

19 ‘‘(d) LIST OF LEAST TOXIC PESTICIDES; PESTICIDE

20 REVIEW.—

21 ‘‘(1) IN GENERAL.—The Board shall rec22 ommend to the Administrator a list of least toxic

23 pesticides (including the pesticides described in sub24 section (a)(7)) that may be used as least toxic pes25 ticides, any restrictions on the use of the listed pes-
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1 ticides, and any recommendations regarding restric2 tions on all other pesticides, in accordance with this

3 section.

4 ‘‘(2) PROCEDURE FOR EVALUATING PESTICIDE

5 USE.—

6 ‘‘(A) LIST OF LEAST TOXIC PESTICIDES.—

7 ‘‘(i) IN GENERAL.—The Administrator

8 shall establish a list of least toxic pes9 ticides that may be used in school build10 ings and on school grounds, including any

11 restrictions on the use of the pesticides,

12 that is based on the list prepared by the

13 Board.

14 ‘‘(ii) REGULATORY REVIEW.—The Ad15 ministrator shall initiate regulatory review

16 of all other pesticides recommended for re17 striction by the Board.

18 ‘‘(B) RECOMMENDATIONS.—Not later than

19 1 year after receiving the proposed list and re20 strictions, and recommended restrictions on all

21 other pesticides from the Board, the Adminis22 trator shall—

23 ‘‘(i) publish the proposed list and re24 strictions and all other proposed pesticide

25 restrictions in the Federal Register and
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1 seek public comment on the proposed pro2 posals; and

3 ‘‘(ii) after evaluating all comments re4 ceived concerning the proposed list and re5 strictions, but not later than 1 year after

6 the close of the period during which public

7 comments are accepted, publish the final

8 list and restrictions in the Federal Reg9 ister, together with a discussion of com10 ments received.

11 ‘‘(C) FINDINGS.—Not later than 2 years

12 after publication of the final list and restric13 tions, the Administrator shall make a deter14 mination and issue findings on whether use of

15 registered pesticides in school buildings and on

16 school grounds may endanger the health of chil17 dren.

18 ‘‘(D) NOTICE AND COMMENT.—

19 ‘‘(i) IN GENERAL.—Prior to estab20 lishing or making amendments to the list,

21 the Administrator shall publish the pro22 posed list or any proposed amendments to

23 the list in the Federal Register and seek

24 public comment on the proposals.
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1 ‘‘(ii) RECOMMENDATIONS.—The Ad2 ministrator shall include in any publication

3 described in clause (i) any changes or

4 amendments to the proposed list that are

5 recommended to and by the Administrator.

6 ‘‘(E) PUBLICATION OF LIST.—After evalu7 ating all comments received concerning the pro8 posed list or proposed amendments to the list,

9 the Administrator shall publish the final list in

10 the Federal Register, together with a descrip11 tion of comments received.

12 ‘‘(e) OFFICE OF PESTICIDE PROGRAMS.—

13 ‘‘(1) ESTABLISHMENT.—The Administrator

14 shall appoint an official for school pest management

15 within the Office of Pesticide Programs of the Envi16 ronmental Protection Agency to coordinate the de17 velopment and implementation of integrated pest

18 management systems in schools.

19 ‘‘(2) DUTIES.—The official shall—

20 ‘‘(A) coordinate the development of school

21 integrated pest management systems and poli22 cies;

23 ‘‘(B) consult with schools concerning—

24 ‘‘(i) issues related to the integrated

25 pest management systems of schools;
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1 ‘‘(ii) the use of least toxic pesticides;

2 and

3 ‘‘(iii) the registration of pesticides,

4 and amendments to the registrations, as

5 the registrations and amendments relate to

6 the use of integrated pest management

7 systems in schools; and

8 ‘‘(C) support and provide technical assist9 ance to the Board.

10 ‘‘(f) CONTACT PERSON.—

11 ‘‘(1) IN GENERAL.—Each local educational

12 agency of a school district shall designate a contact

13 person for carrying out an integrated pest manage14 ment system in schools in the school district.

15 ‘‘(2) DUTIES.—The contact person of a school

16 district shall—

17 ‘‘(A) maintain information about pesticide

18 applications inside and outside schools within

19 the school district, in school buildings, and on

20 school grounds;

21 ‘‘(B) act as a contact for inquiries about

22 the integrated pest management system;

23 ‘‘(C) maintain material safety data sheets

24 and labels for all pesticides that may be used in

25 the school district;
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1 ‘‘(D) be informed of Federal and State

2 chemical health and safety information and con3 tact information;

4 ‘‘(E) maintain scheduling of all pesticide

5 usage for schools in the school district;

6 ‘‘(F) maintain contact with Federal and

7 State integrated pest management system ex8 perts; and

9 ‘‘(G) obtain periodic updates and training

10 from State integrated pest management system

11 experts.

12 ‘‘(3) PESTICIDE USE DATA.—A local edu13 cational agency of a school district shall—

14 ‘‘(A) maintain all pesticide use data for

15 each school in the school district; and

16 ‘‘(B) on request, make the data available

17 to the public for review.

18 ‘‘(g) NOTICE OF INTEGRATED PEST MANAGEMENT

19 SYSTEM.—

20 ‘‘(1) IN GENERAL.—At the beginning of each

21 school year, each local educational agency or school

22 of a school district shall include a notice of the inte23 grated pest management system of the school dis24 trict in school calendars or other forms of universal

25 notification.
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1 ‘‘(2) CONTENTS.—The notice shall include a de2 scription of—

3 ‘‘(A) the integrated pest management sys4 tem of the school district;

5 ‘‘(B) any pesticide (including any least

6 toxic pesticide) or bait station that may be used

7 in a school building or on school grounds as

8 part of the integrated pest management system;

9 ‘‘(C) the name, address, and telephone

10 number of the contact person of the school dis11 trict;

12 ‘‘(D) a statement that—

13 ‘‘(i) the contact person maintains the

14 product label and material safety data

15 sheet of each pesticide (including each

16 least toxic pesticide) and bait station that

17 may be used by a school in buildings or on

18 school grounds;

19 ‘‘(ii) the label and data sheet is avail20 able for review by a parent, guardian, staff

21 member, or student attending the school;

22 and

23 ‘‘(iii) the contact person is available to

24 parents, guardians, and staff members for

25 information and comment; and
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1 ‘‘(E) the time and place of any meetings

2 that will be held under subsection (g)(1).

3 ‘‘(3) USE OF PESTICIDES.—A local educational

4 agency or school may use a pesticide during a school

5 year only if the use of the pesticide has been dis6 closed in the notice required under paragraph (1) at

7 the beginning of the school year.

8 ‘‘(4) NEW EMPLOYEES AND STUDENTS.—After

9 the beginning of each school year, a local educational

10 agency or school of a school district shall provide

11 the notice required under this subsection to—

12 ‘‘(A) each new staff member who is em13 ployed during the school year; and

14 ‘‘(B) the parent or guardian of each new

15 student enrolled during the school year.

16 ‘‘(h) USE OF PESTICIDES.—

17 ‘‘(1) IN GENERAL.—If a local educational agen18 cy or school determines that a pest in the school or

19 on school grounds cannot be controlled after having

20 used the integrated pest management system of the

21 school or school district and least toxic pesticides,

22 the school may use a pesticide (other than space

23 spraying of the pesticide) to control the pest in ac24 cordance with this subsection.
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1 ‘‘(2) PRIOR NOTIFICATION OF PARENTS,

2 GUARDIANS, AND STAFF MEMBERS.—

3 ‘‘(A) IN GENERAL.—Subject to paragraphs

4 (4) and (5), not less than 72 hours before a

5 pesticide (other than a least toxic pesticide) is

6 used by a school, the school shall provide to a

7 parent or guardian of each student enrolled at

8 the school and each staff member of the school,

9 notice that includes—

10 ‘‘(i) the common name, trade name,

11 and Environmental Protection Agency reg12 istration number of the pesticide;

13 ‘‘(ii) a description of the location of

14 the application of the pesticide;

15 ‘‘(iii) a description of the date and

16 time of application, except that, in the case

17 of outdoor pesticide applications, 1 notice

18 shall include 3 dates, in chronological

19 order, that the outdoor pesticide applica20 tions may take place if the preceding date

21 is canceled;

22 ‘‘(iv) a statement that ‘The Office of

23 Pesticide Programs of the United States

24 Environmental Protection Agency has stat25 ed: ‘Where possible, persons who poten-
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1 tially are sensitive, such as pregnant

2 women and infants (less than 2 years old),

3 should avoid any unnecessary pesticide ex4 posure.’;

5 ‘‘(v) a description of potential adverse

6 effects of the pesticide based on the mate7 rial safety data sheet of the pesticide;

8 ‘‘(vi) a description of the reasons for

9 the application of the pesticide;

10 ‘‘(vii) the name and telephone number

11 of the contact person of the school district;

12 and

13 ‘‘(viii) any additional warning infor14 mation related to the pesticide.

15 ‘‘(B) METHOD OF NOTIFICATION.—The

16 school may provide the notice required by sub17 paragraph (A) by—

18 ‘‘(i) written notice sent home with the

19 student and provided to the staff member;

20 ‘‘(ii) a telephone call;

21 ‘‘(iii) direct contact; or

22 ‘‘(iv) written notice mailed at least 1

23 week before the application.

24 ‘‘(C) REISSUANCE.—If the date of the ap25 plication of the pesticide needs to be extended
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1 beyond the period required for notice under this

2 paragraph, the school shall reissue the notice

3 under this paragraph for the new date of appli4 cation.

5 ‘‘(3) POSTING OF SIGNS.—

6 ‘‘(A) IN GENERAL.—Subject to paragraphs

7 (4) and (5), at least 72 hours before a pesticide

8 (other than a least toxic pesticide) is used by a

9 school, the school shall post a sign that provides

10 notice of the application of the pesticide—

11 ‘‘(i) in a prominent place that is in or

12 adjacent to the location to be treated; and

13 ‘‘(ii) at each entrance to the building

14 or school grounds to be treated.

15 ‘‘(B) ADMINISTRATION.—A sign required

16 under subparagraph (A) for the application of

17 a pesticide shall—

18 ‘‘(i) remain posted for at least 72

19 hours after the end of the treatment;

‘‘(ii) be at least 81 20 ⁄2 inches by 11

21 inches; and

22 ‘‘(iii) state the same information as

23 that required for prior notification of the

24 application under paragraph (2).
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1 ‘‘(C) OUTDOOR PESTICIDE APPLICA2 TIONS.—

3 ‘‘(i) IN GENERAL.—In the case of out4 door pesticide applications, each sign shall

5 include 3 dates, in chronological order,

6 that the outdoor pesticide application may

7 take place if the preceding date is canceled

8 due to weather.

9 ‘‘(ii) DURATION OF POSTING.—A sign

10 described in clause (i) shall be posted after

11 an outdoor pesticide application in accord12 ance with subparagraph (B).

13 ‘‘(4) ADMINISTRATION.—

14 ‘‘(A) APPLICATORS.—Paragraphs (2) and

15 (3) shall apply to any person that applies a pes16 ticide in a school or on school grounds, includ17 ing a custodian, staff member, or commercial

18 applicator.

19 ‘‘(B) TIME OF YEAR.—Paragraphs (2) and

20 (3) shall apply to a school—

21 ‘‘(i) during the school year; and

22 ‘‘(ii) during holidays and the summer

23 months, if the school is in use, with notice

24 provided to all staff members and the par-
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1 ents or guardians of the students that are

2 using the school in an authorized manner.

3 ‘‘(5) EMERGENCIES.—

4 ‘‘(A) IN GENERAL.—A school may apply a

5 pesticide (other than a least toxic pesticide) in

6 the school or on school grounds without com7 plying with paragraphs (2) and (3) in an emer8 gency, subject to subparagraph (B).

9 ‘‘(B) SUBSEQUENT NOTIFICATION OF PAR10 ENTS, GUARDIANS, AND STAFF MEMBERS.—Not

11 later than the earlier of the time that is 24

12 hours after a school applies a pesticide under

13 this paragraph or on the morning of the next

14 school day, the school shall provide to each par15 ent or guardian of a student enrolled at the

16 school, and staff member of the school, notice

17 of the application of the pesticide for emergency

18 pest control that includes—

19 ‘‘(i) the information required for a no20 tice under paragraph (2)(A);

21 ‘‘(ii) a description of the problem and

22 the factors that qualified the problem as

23 an emergency that threatened the health or

24 safety of a student or staff member; and
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1 ‘‘(iii) a description of the steps the

2 school will take in the future to avoid

3 emergency application of a pesticide under

4 this paragraph.

5 ‘‘(C) METHOD OF NOTIFICATION.—The

6 school may provide the notice required by sub7 paragraph (B) by—

8 ‘‘(i) written notice sent home with the

9 student and provided to the staff member;

10 ‘‘(ii) a telephone call; or

11 ‘‘(iii) direct contact.

12 ‘‘(D) POSTING OF SIGNS.—A school apply13 ing a pesticide under this paragraph shall post

14 a sign warning of the pesticide application in

15 accordance with paragraph (3).

16 ‘‘(E) MODIFICATION OF INTEGRATED PEST

17 MANAGEMENT PLANS.—If a school in a school

18 district applies a pesticide under this para19 graph, the local educational agency of the

20 school district shall modify the integrated pest

21 management plan of the school district to mini22 mize the future applications of pesticides under

23 this paragraph.

24 ‘‘(6) DRIFT OF PESTICIDES ONTO SCHOOL

25 GROUNDS.—Each local educational agency, State
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1 pesticide lead agency, and the Administrator are en2 couraged to—

3 ‘‘(A) identify sources of pesticides that

4 drift from treated land to school grounds of the

5 educational agency; and

6 ‘‘(B) take steps necessary to create an in7 door and outdoor school environment that are

8 protected from pesticides described in subpara9 graph (A).

10 ‘‘(i) MEETINGS.—

11 ‘‘(1) IN GENERAL.—Before the beginning of a

12 school year, at the beginning of each new calendar

13 year, and at a regularly scheduled meeting of a

14 school board, each local educational agency shall

15 provide an opportunity for the contact person des16 ignated under subsection (d) to receive and address

17 public comments regarding the integrated pest man18 agement system of the school district.

19 ‘‘(2) EMERGENCY MEETINGS.—An emergency

20 meeting of a school board to address a pesticide ap21 plication may be called under locally appropriate

22 procedures for convening emergency meetings.

23 ‘‘(j) INVESTIGATIONS AND ORDERS.—
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1 ‘‘(1) IN GENERAL.—Not later than 60 days

2 after receiving a complaint of a violation of this sec3 tion, the Administrator shall—

4 ‘‘(A) conduct an investigation of the com5 plaint;

6 ‘‘(B) determine whether it is reasonable to

7 believe the complaint has merit; and

8 ‘‘(C) notify the complainant and the per9 son alleged to have committed the violation of

10 the findings of the Administrator.

11 ‘‘(2) PRELIMINARY ORDER.—If the Adminis12 trator determines it is reasonable to believe a viola13 tion occurred, the Administrator shall issue a pre14 liminary order (that includes findings) to impose the

15 penalty described in subsection (j).

16 ‘‘(3) OBJECTIONS TO PRELIMINARY ORDER.—

17 ‘‘(A) IN GENERAL.—Not later than 30

18 days after the preliminary order is issued under

19 paragraph (2), the complainant and the person

20 alleged to have committed the violation may—

21 ‘‘(i) file objections to the preliminary

22 order (including findings); and

23 ‘‘(ii) request a hearing on the record.

24 ‘‘(B) FINAL ORDER.—If a hearing is not

25 requested within 30 days after the preliminary
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1 order is issued, the preliminary order shall be

2 final and not subject to judicial review.

3 ‘‘(4) HEARING.—A hearing under this sub4 section shall be conducted expeditiously.

5 ‘‘(5) FINAL ORDER.—Not later than 120 days

6 after the end of the hearing, the Administrator shall

7 issue a final order.

8 ‘‘(6) SETTLEMENT AGREEMENT.—Before the

9 final order is issued, the proceeding may be termi10 nated by a settlement agreement, which shall remain

11 open, entered into by the Administrator, the com12 plainant, and the person alleged to have committed

13 the violation.

14 ‘‘(7) COSTS.—

15 ‘‘(A) IN GENERAL.—If the Administrator

16 issues a final order against a school or school

17 district for violation of this section and the

18 complainant requests, the Administrator may

19 assess against the person against whom the

20 order is issued the costs (including attorney’s

21 fees) reasonably incurred by the complainant in

22 bringing the complaint.

23 ‘‘(B) AMOUNT.—The Administrator shall

24 determine the amount of the costs that were

25 reasonably incurred by the complainant.
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1 ‘‘(8) JUDICIAL REVIEW AND VENUE.—

2 ‘‘(A) IN GENERAL.—A person adversely af3 fected by an order issued after a hearing under

4 this subsection may file a petition for review

5 not later than 60 days after the date that the

6 order is issued, in a district court of the United

7 States or other United States court for any dis8 trict in which a local educational agency or

9 school is found, resides, or transacts business.

10 ‘‘(B) TIMING.—The review shall be heard

11 and decided expeditiously.

12 ‘‘(C) COLLATERAL REVIEW.—An order of

13 the Administrator subject to review under this

14 paragraph shall not be subject to judicial review

15 in a criminal or other civil proceeding.

16 ‘‘(k) CIVIL PENALTY.—

17 ‘‘(1) IN GENERAL.—Any local educational agen18 cy, school, or person that violates this section may

19 be assessed a civil penalty by the Administrator

20 under subsections (h) and (i), respectively, of not

21 more than $10,000 for each offense.

22 ‘‘(2) TRANSFER TO TRUST FUND.—Except as

23 provided in subsection (i)(4)(B), civil penalties col24 lected under paragraph (1) shall be deposited in the

25 Fund.
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1 ‘‘(l) INTEGRATED PEST MANAGEMENT TRUST

2 FUND.—

3 ‘‘(1) ESTABLISHMENT.—There is established in

4 the Treasury of the United States a trust fund to

5 be known as the ‘Integrated Pest Management

6 Trust Fund’, consisting of—

7 ‘‘(A) amounts deposited in the Fund under

8 subsection (j)(2);

9 ‘‘(B) amounts transferred to the Secretary

10 of the Treasury for deposit into the Fund under

11 paragraph (5); and

12 ‘‘(C) any interest earned on investment of

13 amounts in the Fund under paragraph (3).

14 ‘‘(2) EXPENDITURES FROM FUND.—

15 ‘‘(A) IN GENERAL.—Subject to subpara16 graph (B), on request by the Administrator, the

17 Secretary of the Treasury shall transfer from

18 the Fund to the Administrator, without further

19 appropriation, such amounts as the Secretary

20 determines are necessary to provide funds to

21 each State educational agency of a State, in

22 proportion to the amount of civil penalties col23 lected in the State under subsection (j)(1), to

24 carry out education, training, propagation, and

25 development activities under integrated pest
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1 management systems of schools in the State to

2 remedy the harmful effects of actions taken by

3 the persons that paid the civil penalties.

4 ‘‘(B) ADMINISTRATIVE EXPENSES.—An

5 amount not to exceed 6 percent of the amounts

6 in the Fund shall be available for each fiscal

7 year to pay the administrative expenses nec8 essary to carry out this subsection.

9 ‘‘(3) INVESTMENT OF AMOUNTS.—

10 ‘‘(A) IN GENERAL.—The Secretary of the

11 Treasury shall invest such portion of the Fund

12 as is not, in the judgment of the Secretary of

13 the Treasury, required to meet current with14 drawals. Investments may be made only in in15 terest-bearing obligations of the United States.

16 ‘‘(B) ACQUISITION OF OBLIGATIONS.—For

17 the purpose of investments under subparagraph

18 (A), obligations may be acquired—

19 ‘‘(i) on original issue at the issue

20 price; or

21 ‘‘(ii) by purchase of outstanding obli22 gations at the market price.

23 ‘‘(C) SALE OF OBLIGATIONS.—Any obliga24 tion acquired by the Fund may be sold by the

25 Secretary of the Treasury at the market price.
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1 ‘‘(D) CREDITS TO FUND.—The interest on,

2 and the proceeds from the sale or redemption

3 of, any obligations held in the Fund shall be

4 credited to and form a part of the Fund.

5 ‘‘(4) TRANSFERS OF AMOUNTS.—

6 ‘‘(A) IN GENERAL.—The amounts required

7 to be transferred to the Fund under this sub8 section shall be transferred at least monthly

9 from the general fund of the Treasury to the

10 Fund on the basis of estimates made by the

11 Secretary of the Treasury.

12 ‘‘(B) ADJUSTMENTS.—Proper adjustment

13 shall be made in amounts subsequently trans14 ferred to the extent prior estimates were in ex15 cess of or less than the amounts required to be

16 transferred.

17 ‘‘(5) ACCEPTANCE AND USE OF DONATIONS.—

18 The Secretary may accept and use donations to

19 carry out paragraph (2)(A). Amounts received by

20 the Secretary in the form of donations shall be

21 transferred to the Secretary of the Treasury for de22 posit into the Fund.

23 ‘‘(m) EMPLOYEE PROTECTION.—

24 ‘‘(1) IN GENERAL.—No local educational agen25 cy, school, or person may harass, prosecute, hold lia-
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1 ble, or discriminate against any employee or other

2 person because the employee or other person—

3 ‘‘(A) is assisting or demonstrating an in4 tent to assist in achieving compliance with this

5 section (including any regulation);

6 ‘‘(B) is refusing to violate or assist in the

7 violation of this section (including any regula8 tion); or

9 ‘‘(C) has commenced, caused to be com10 menced, or is about to commence a proceeding,

11 has testified or is about to testify at a pro12 ceeding, or has assisted or participated or is

13 about to participate in any manner in such a

14 proceeding or in any other action to carry out

15 this section.

16 ‘‘(2) COMPLAINTS.—Not later than 1 year after

17 an alleged violation occurred, an employee or other

18 person alleging a violation of this section, or another

19 person at the request of the employee, may file a

20 complaint with the Administrator.

21 ‘‘(3) REMEDIAL ACTION.—If the Administrator

22 decides, on the basis of a complaint, that a local

23 educational agency, school, or person violated para24 graph (1), the Administrator shall order the local

25 educational agency, school, or person to—
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1 ‘‘(A) take affirmative action to abate the

2 violation;

3 ‘‘(B) reinstate the complainant to the

4 former position with the same pay and terms

5 and privileges of employment; and

6 ‘‘(C) pay compensatory damages, including

7 back pay.

8 ‘‘(n) GRANTS.—

9 ‘‘(1) IN GENERAL.—The Administrator, in con10 sultation with the Secretary of Education, shall pro11 vide grants to local educational agencies to develop

12 and implement integrated pest management systems

13 in schools in the school district of the local edu14 cational agencies.

15 ‘‘(2) AMOUNT.—The amount of a grant pro16 vided to a local educational agency of a school dis17 trict under paragraph (1) shall be based on the ratio

18 that the number of students enrolled in schools in

19 the school district bears to the total number of stu20 dents enrolled in schools in all school districts in the

21 United States.

22 ‘‘(o) RELATIONSHIP TO STATE AND LOCAL REQUIRE23 MENTS.—This section (including regulations promulgated

24 under this section) shall not preempt requirements im25 posed on local educational agencies and schools related to
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1 the use of integrated pest management by State or local

2 law (including regulations) that are more stringent than

3 the requirements imposed under this section.

4 ‘‘(p) REGULATIONS.—Subject to subsection (m), the

5 Administrator shall promulgate such regulations as are

6 necessary to carry out this section.

7 ‘‘(q) RESTRICTION ON PESTICIDE USE.—Not later

8 than 6 years after the date of enactment of this section,

9 no pesticide, other than a pesticide that is defined as a

10 least toxic pesticide under this subsection, shall be used

11 in a school or on school grounds unless the Administrator

12 has met the deadlines and requirements of this section.

13 ‘‘(r) AUTHORIZATION OF APPROPRIATIONS.—There

14 are authorized to be appropriated to carry out this section

15 $7,000,000 for each of fiscal years 2002 through 2006.’’.

16 SEC. 1413. CONFORMING AMENDMENT.

17 The table of contents in section 1(b) of the Federal

18 Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.

19 prec. 121) is amended by striking the items relating to

20 sections 30 through 32 and inserting the following:

‘‘Sec. 30. Minimum requirements for training of maintenance applicators and

service technicians.

‘‘Sec. 31. Environmental Protection Agency minor use program.

‘‘Sec. 32. Department of Agriculture minor use program.

‘‘(a) In general.

‘‘(b)(1) Minor use pesticide data.

‘‘(2) Minor Use Pesticide Data Revolving Fund.

‘‘Sec. 33. Integrated pest management systems for schools.
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‘‘(a) Definitions.

‘‘(1) Board.

‘‘(2) Contact person.

‘‘(3) Crack and crevice treatment.

‘‘(4) Emergency.

‘‘(5) Fund.

‘‘(6) Integrated pest management system.

‘‘(7) Least toxic pesticides.

‘‘(8) List.

‘‘(9) Local educational agency.

‘‘(10) Official.

‘‘(11) Person.

‘‘(12) Pesticide.

‘‘(13) School.

‘‘(14) School grounds.

‘‘(15) Space spraying.

‘‘(16) Staff member.

‘‘(17) State educational agency.

‘‘(18) Universal notification.

‘‘(b) Integrated pest management systems.

‘‘(1) In general.

‘‘(2) Implementation.

‘‘(3) State programs.

‘‘(4) Application to schools and school grounds.

‘‘(5) Application of pesticides when schools in use.

‘‘(c) National School Integrated Pest Management Advisory

Board.

‘‘(1) In general.

‘‘(2) Composition of Board.

‘‘(3) Appointment.

‘‘(4) Term.

‘‘(5) Meetings.

‘‘(6) Compensation.

‘‘(7) Chairperson.

‘‘(8) Quorum.

‘‘(9) Decisive votes.

‘‘(10) Administration.

‘‘(11) Responsibilities of the Board.

‘‘(12) Requirements.

‘‘(13) Petitions.

‘‘(14) Periodic review.

‘‘(15) Confidentiality.

‘‘(d) List of least toxic pesticides.

‘‘(1) In general.

‘‘(2) Procedure for evaluating pesticide use.

‘‘(e) Office of Pesticide Programs.

‘‘(1) Establishment.

‘‘(2) Duties.

‘‘(f) Contact person.

‘‘(1) In general.

‘‘(2) Duties.

‘‘(3) Pesticide use data.

‘‘(g) Notice of integrated pest management system.

‘‘(1) In general.

‘‘(2) Contents.
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‘‘(3) Use of pesticides.

‘‘(4) New employees and students.

‘‘(h) Use of pesticides.

‘‘(1) In general.

‘‘(2) Prior notification of parents, guardians, and staff

members.

‘‘(3) Posting of signs.

‘‘(4) Administration.

‘‘(5) Emergencies.

‘‘(6) Drift of pesticides onto school grounds.

‘‘(i) Meetings.

‘‘(1) In general.

‘‘(2) Emergency meetings.

‘‘(j) Investigations and orders.

‘‘(1) In general.

‘‘(2) Preliminary order.

‘‘(3) Objections to preliminary order.

‘‘(4) Hearing.

‘‘(5) Final order.

‘‘(6) Settlement agreement.

‘‘(7) Costs.

‘‘(8) Judicial review and venue.

‘‘(k) Civil penalty.

‘‘(1) In general.

‘‘(2) Transfer to Trust Fund.

‘‘(l) Integrated Pest Management Trust Fund.

‘‘(1) Establishment.

‘‘(2) Expenditures from Fund.

‘‘(3) Investment of amounts.

‘‘(4) Transfers of amounts.

‘‘(5) Acceptance and use of donations.

‘‘(m) Employee protection.

‘‘(1) In general.

‘‘(2) Complaints.

‘‘(3) Remedial action.

‘‘(n) Grants.

‘‘(1) In general.

‘‘(2) Amount.

‘‘(o) Relationship to State and local requirements.

‘‘(p) Regulations.

‘‘(q) Restriction on pesticide use.

‘‘(r) Authorization of appropriations.

‘‘Sec. 34. Severability.

‘‘Sec. 35. Authorization of appropriations.’’.

1 SEC. 1414. EFFECTIVE DATE.

2 This chapter and the amendments made by this chap3 ter take effect on October 1, 2001.
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1 TITLE II—HEALTHY START - SUP2 PORT FOR HEALTHY DEVEL3 OPMENT

4 Subtitle A—Promotion of State and

5 Local Support

6 SEC. 2001. STATE AND LOCAL PARENTING SUPPORT AND

7 EDUCATION GRANT PROGRAM.

8 (a) STATE ALLOTMENTS.—

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

10 Human Services (referred to in this section as the

11 ‘‘Secretary’’) shall make grants, from allotments

12 made under paragraph (2), to eligible States to sup13 port parenting support and education programs.

14 (2) ALLOTMENTS.—From the funds appro15 priated under subsection (h) for a fiscal year, the

16 Secretary shall allot to each State an amount that

17 bears the same relationship to the funds as the total

18 number of children in the State bears to the total

19 number of children in all States, but no State shall

receive less than 1 20 ⁄2 of 1 percent of the funds.

21 (3) RESERVATION.—

22 (A) IN GENERAL.—For each State in

23 which the population of Indians (including Alas24 ka Natives) is more than 2 percent of the popu25 lation of the State, the Governor of the State
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1 shall reserve for Indian tribes 2 percent of the

2 funds received through an allotment made

3 under paragraph (2).

4 (B) DISTRIBUTION.—

5 (i) IN GENERAL.—Except as described

6 in clause (ii), from the funds reserved

7 under subparagraph (A), the Governor

8 shall allocate to each Indian tribe in the

9 State an amount that bears the same rela10 tionship to the funds as the total number

11 of children in the tribe bears to the total

12 number of children in all Indian tribes in

13 the State.

14 (ii) ALASKA.—The Governor of Alas15 ka shall allocate the funds reserved under

16 subparagraph (A) for Indian tribes in

17 Alaska to the nonprofit entities described

18 in section 419(4)(B) of the Social Security

19 Act (42 U.S.C. 619(4)(B)). The Governor

20 shall allocate to each region of the State,

21 for such entities, an amount that bears the

22 same relationship to the funds as the total

23 number of Alaska Native children in the

24 region bears to the total number of Alaska

25 Native children in all regions of the State.
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1 (C) DEFINITIONS.—In this paragraph:

2 (i) ALASKA NATIVE.—The term

3 ‘‘Alaska Native’’ has the meaning given

4 the term ‘‘Native’’ in section 3 of the Alas5 ka Native Claims Settlement Act (43

6 U.S.C. 1602).

7 (ii) INDIAN; INDIAN TRIBE.—The

8 terms ‘Indian’ and ‘Indian tribe’ have the

9 meanings given the terms in section 4 of

10 the Indian Self-Determination and Edu11 cation Assistance Act (25 U.S.C. 450b).

12 (b) STATE PARENTING SUPPORT AND EDUCATION

13 COUNCILS.—

14 (1) IN GENERAL.—To be eligible to receive a

15 grant under subsection (a), the Governor of each

16 State shall appoint or designate an existing entity

17 (as of the date of the appointment or designation)

18 to serve as a State Parenting Support and Edu19 cation Council (referred to in this section as the

20 ‘‘Council’’), which shall include—

21 (A) representatives of parents;

22 (B) representatives of the State govern23 ment;

24 (C) bipartisan representation from the

25 State legislature;
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1 (D) representatives from communities; and

2 (E) representatives of children’s organiza3 tions interested in promoting parenting support

4 and education programs.

5 (2) RESPONSIBILITIES.—

6 (A) ASSESSMENT.—The Council shall con7 duct a needs and resources assessment of par8 enting support and education programs in the

9 State to—

10 (i) determine areas in which such pro11 grams are lacking or inadequate; and

12 (ii) identify the additional programs

13 that are needed and the programs that re14 quire additional resources.

15 (B) GRANTS.—On completion of the as16 sessment, the Council for a State may use the

17 grant received by the State under subsection (a)

18 to make grants under subsection (c) in a man19 ner that takes into account the results of the

20 assessment.

21 (c) GRANTS TO STATE AND LOCAL AGENCIES AND

22 ENTITIES.—

23 (1) IN GENERAL.—The Council may carry out

24 a program under which the Council makes grants to

25 State agencies to provide parenting support and edu-
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1 cation programs on a statewide basis, or to local

2 agencies (including schools) and nonprofit service

3 providers (including faith-based organizations) to

4 provide parenting support and education programs.

5 (2) APPLICATIONS.—To be eligible to receive a

6 grant under this subsection, an agency or entity

7 shall submit an application to a Council at such

8 time, in such manner, and containing such informa9 tion as the Council may require.

10 (d) LOCAL USE OF FUNDS.—An agency or entity

11 that receives a grant under subsection (c) may use the

12 funds made available through the grant to carry out par13 enting support and education programs that—

14 (1) provide parenting support to promote early

15 brain development and childhood development and

16 education, including—

17 (A) providing assistance to schools to offer

18 classroom instruction on brain stimulation,

19 child development, and early childhood edu20 cation;

21 (B) distributing materials developed by en22 tities that reflect best parenting practices;

23 (C) developing and distributing referral in24 formation on programs and services available to
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1 children and families at the local level, includ2 ing information on eligibility criteria;

3 (D) conducting voluntary hospital visits for

4 postpartum women and in-home visits for fami5 lies with infants, toddlers, or newly adopted

6 children to provide hands-on training and one7 on-one instruction on brain stimulation, child

8 development, and early childhood education;

9 and

10 (E) carrying out parenting education pro11 grams, including training programs, with re12 spect to best parenting practices;

13 (2) provide parenting support for parents of

14 adolescents and youth, including providing funds for

15 services and support for parents and other care16 givers of adolescents and youth being served by a

17 range of education, social service, mental health,

18 health, runaway, and homeless youth programs,

19 which parenting support—

20 (A) may be provided by the Boys and Girls

21 Club, the YMCA, the YWCA, entities that pro22 vide after school programs, entities that provide

23 4-H programs, or other community based orga24 nizations; and
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1 (B) may include providing parent-caregiver

2 support groups, peer support groups, parent

3 education classes, seminars or discussion groups

4 on problems facing adolescents and youth, or

5 advocates and mentors to help parents under6 stand and work with schools, the courts, and

7 various treatment programs; or

8 (3) provide parenting support and education re9 source centers, including—

10 (A) centers that may serve as a single

11 point of contact for the provision to children

12 and their families of comprehensive services,

13 which—

14 (i) shall include services available to

15 children from Federal, State, and local

16 government agencies and nonprofit organi17 zations; and

18 (ii) may include child care, respite

19 care, pediatric care, child abuse prevention

20 programs, nutrition programs, parent

21 training, infant and child cardiopulmonary

22 resuscitation programs, safety training,

23 caregiver training and education, and other

24 related programs;
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1 (B) centers that provide a national toll-free

2 parent hotline that provides 24-hour consulta3 tion and advice, on an anonymous basis, includ4 ing referrals to local community-based services;

5 and

6 (C) centers that provide respite care for

7 parents with children with special needs, single

8 mothers, and parents with at-risk youth.

9 (e) REPORTING.—Each agency or entity that receives

10 a grant under this section shall prepare and submit to the

11 Council every 2 years a report describing the program that

12 the agency or entity carried out under this section, the

13 number of parents and children served, and the success

14 of the program in supporting and educating parents using

15 specific performance measures.

16 (f) ADMINISTRATIVE COSTS.—Not more than 5 per17 cent of the amount made available through a grant re18 ceived by a State under subsection (a) may be used for

19 the administrative expenses of the State Council in imple20 menting the grant program described in subsection (c).

21 (g) SUPPLEMENT NOT SUPPLANT.—Funds appro22 priated pursuant to this section shall be used to supple23 ment and not supplant other Federal, State, and local

24 public funds expended for parenting support and edu25 cation programs.
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1 (h) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated to carry out this section

3 $100,000,000 for each of fiscal years 2002 and 2003,

4 $200,000,000 for each of fiscal years 2004 and 2005, and

5 $300,000,000 for fiscal year 2006.

6 (i) DEFINITION.—In this section, the term ‘‘child’’

7 means an individual who is younger than age 18.

8 Subtitle B—Support for Parents

9 Caring for Children

10 SEC. 2101. SHORT TITLE.

11 This subtitle may be cited as the ‘‘Family and Med12 ical Leave Fairness Act of 2001’’.

13 SEC. 2102. FINDINGS.

14 Congress finds that—

15 (1) the Family and Medical Leave Act of 1993

16 (29 U.S.C. 2601 et seq.) has provided employees

17 with a significant new tool in balancing the needs of

18 their families with the demands of work;

19 (2) the Family and Medical Leave Act of 1993

20 has had a minimal impact on business, and over 90

21 percent of private employers covered by the Act ex22 perienced little or no cost and a minimal, or positive,

23 impact on productivity as a result of the Act;

24 (3) although both employers at workplaces with

25 large numbers of employees and employers at work-
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1 places with small numbers of employees reported

2 that compliance with the Family and Medical Leave

3 Act of 1993 involved very easy administration and

4 low costs, the smaller employers found it easier and

5 less expensive to comply with the Act than the larger

6 employers;

7 (4) over three-quarters of worksites with under

8 50 employees covered by the Family and Medical

9 Leave Act of 1993 report no cost increases or small

10 cost increases associated with compliance with the

11 Act;

12 (5) in 1998, 27 percent of Americans needed to

13 take family or medical leave but were unable to do

14 so, and 44 percent of these employees did not take

15 such leave because they would have lost their jobs or

16 their employers did not allow it;

17 (6) only 57 percent of the private workforce is

18 currently protected by the Family and Medical

19 Leave Act of 1993; and

20 (7) 13,000,000 more private employees, or an

21 additional 14 percent of the private workforce, would

22 be protected by the Family and Medical Leave Act

23 of 1993 if the Act was expanded to cover private

24 employers with 25 or more employees.
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1 SEC. 2103. COVERAGE OF EMPLOYEES.

2 Paragraphs (2)(B)(ii) and (4)(A)(i) of section 101 of

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

4 2611(2)(B)(ii) and (4)(A)(i)) are amended by striking

5 ‘‘50’’ each place it appears and inserting ‘‘25’’.

6 Subtitle C—Paid Family Leave

7 SEC. 2201. SHORT TITLE.

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

9 Respond to Significant Transitions Insurance Act’’.

10 SEC. 2202. FINDINGS.

11 Congress finds that—

12 (1) nearly every industrialized nation other than

13 the United States, and most developing nations, pro14 vide parents with paid leave for infant care;

15 (2)(A) parents’ interactions with their infants

16 have a major influence on the physical, cognitive,

17 and social development of the infants; and

18 (B) optimal development of an infant depends

19 on a strong attachment between an infant and the

20 infant’s parents;

(3) nearly 2 21 ⁄3 of employees, who need to take

22 family or medical leave, but do not take the leave,

23 report that they cannot afford to take the leave;

24 (4) although some employees in the United

25 States receive wage replacement during periods of

26 family or medical leave, the benefit of wage replace-
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1 ment is not shared equally in the workforce, as dem2 onstrated by the fact that—

3 (A) employees with less education and

4 lower income are less likely to receive wage re5 placement than employees with more education

6 and higher salaries; and

7 (B) female employees, employees from ra8 cial minority groups, and younger employees

9 are slightly less likely to receive wage replace10 ment than male employees, white employees,

11 and older employees, respectively;

12 (5) in order to cope financially with taking fam13 ily or medical leave, of persons taking that leave

14 without full wage replacement—

15 (A) 40 percent cut their leave short;

16 (B) 39 percent put off paying bills;

17 (C) 25 percent borrowed money; and

18 (D) 9 percent obtained public assistance;

19 (6) taking family or medical leave often drives

20 employees earning low wages into poverty, and 21

21 percent of such low-wage employees who take family

22 or medical leave without full wage replacement re23 sort to public assistance;

24 (7) studies document shortages in the supply of

25 infant care, and that the shortages are expected to
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1 worsen as welfare reform measures are implemented;

2 and

3 (8) compared to 30 years ago, families have ex4 perienced an average decrease of 22 hours per week

5 in time that parents spend with their children.

6 SEC. 2203. PURPOSES.

7 The purposes of this subtitle are—

8 (1) to establish a demonstration program that

9 supports the efforts of States and political subdivi10 sions to provide partial or full wage replacement,

11 often referred to as FIRST insurance, to new par12 ents so that the new parents are able to spend time

13 with a new infant or newly adopted child, and to

14 other employees; and

15 (2) to learn about the most effective mecha16 nisms for providing the wage replacement assistance.

17 SEC. 2204. DEFINITIONS.

18 In this subtitle:

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

20 the Secretary of Labor, acting after consultation

21 with the Secretary of Health and Human Services.

22 (2) SON OR DAUGHTER; STATE.—The terms

23 ‘‘son or daughter’’ and ‘‘State’’ have the meanings

24 given the terms in section 101 of the Family and

25 Medical Leave Act of 1993 (29 U.S.C. 2611).
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1 SEC. 2205. DEMONSTRATION PROJECTS.

2 (a) GRANTS.—The Secretary shall make grants to eli3 gible entities to pay for the Federal share of the cost of

4 carrying out projects that assist families by providing,

5 through various mechanisms, wage replacement for eligi6 ble individuals that are responding to caregiving needs re7 sulting from the birth or adoption of a son or daughter

8 or other family caregiving needs. The Secretary shall make

9 the grants for periods of 5 years.

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

11 grant under this section, an entity shall be a State or polit12 ical subdivision of a State.

13 (c) USE OF FUNDS.—

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

15 grant under this section may use the funds made

16 available through the grant to provide partial or full

17 wage replacement as described in subsection (a) to

18 eligible individuals—

19 (A) directly;

20 (B) through an insurance program, such

21 as a State temporary disability insurance pro22 gram or the State unemployment compensation

23 benefit program;

24 (C) through a private disability or other

25 insurance plan, or another mechanism provided

26 by a private employer; or
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1 (D) through another mechanism.

2 (2) ADMINISTRATIVE COSTS.—No entity may

3 use more than 10 percent of the total funds made

4 available through the grant during the 5-year period

5 of the grant to pay for the administrative costs re6 lating to a project described in subsection (a).

7 (d) ELIGIBLE INDIVIDUALS.—To be eligible to re8 ceive wage replacement under subsection (a), an individual

9 shall—

10 (1) meet such eligibility criteria as the eligible

11 entity providing the wage replacement may specify

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

13 (2) be—

14 (A) an individual who is taking leave,

15 under the Family and Medical Leave Act of

16 1993 (29 U.S.C. 2601 et seq.), other Federal,

17 State, or local law, or a private plan, for a rea18 son described in subparagraph (A) or (B) of

19 section 102(a)(1) of the Family and Medical

20 Leave Act of 1993 (29 U.S.C. 2612(a)(1));

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

22 individual who—

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

24 other Federal, State, or local law, or a pri25 vate plan, for a reason described in sub-
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1 paragraph (C) or (D) of section 102(a)(1)

2 of the Family and Medical Leave Act of

3 1993 (29 U.S.C. 2612(a)(1)); or

4 (ii) leaves employment because the in5 dividual has elected to care for a son or

6 daughter under age 1; or

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

8 individual with other characteristics specified by

9 the eligible entity in an application described in

10 subsection (e).

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

12 under this section, an entity shall submit an application

13 to the Secretary, at such time, in such manner, and con14 taining such information as the Secretary may require, in15 cluding, at a minimum—

16 (1) a plan for the project to be carried out with

17 the grant;

18 (2) information demonstrating that the appli19 cant consulted representatives of employers and em20 ployees, including labor organizations, in developing

21 the plan;

22 (3) estimates of the costs and benefits of the

23 project;

24 (4)(A) information on the number and type of

25 families to be covered by the project, and the extent
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1 of such coverage in the area served under the grant;

2 and

3 (B) information on any criteria or characteris4 tics that the entity will use to determine whether an

5 individual is eligible for wage replacement under

6 subsection (a), as described in paragraphs (1) and

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

8 (5) if the project will expand on State and pri9 vate systems of wage replacement for eligible indi10 viduals, information on the manner in which the

11 project will expand on the systems;

12 (6) information demonstrating the manner in

13 which the wage replacement assistance provided

14 through the project will assist families in which an

15 individual takes leave as described in subsection

16 (d)(1); and

17 (7) an assurance that the applicant will partici18 pate in efforts to evaluate the effectiveness of the

19 project.

20 (f) SELECTION CRITERIA.—In selecting entities to re21 ceive grants for projects under this section, the Secretary

22 shall—

23 (1) take into consideration—

24 (A) the scope of the proposed projects;
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1 (B) the cost-effectiveness, feasibility, and

2 financial soundness of the proposed projects;

3 (C) the extent to which the proposed

4 projects would expand access to wage replace5 ment in response to family caregiving needs,

6 particularly for low-wage employees, in the area

7 served by the grant; and

8 (D) the benefits that would be offered to

9 families and children through the proposed

10 projects; and

11 (2) to the extent feasible, select entities pro12 posing projects that utilize diverse mechanisms, in13 cluding expansion of State unemployment compensa14 tion benefit programs, and establishment or expan15 sion of State temporary disability insurance pro16 grams, to provide the wage replacement.

17 (g) FEDERAL SHARE.—

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

19 cost described in subsection (a) shall be—

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

21 grant period;

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

23 period;

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

25 period; and
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1 (D) 20 percent for each subsequent year.

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

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

4 evaluated, including plant, equipment, and services

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

6 sources, or Federal sources other than this subtitle.

7 (h) SUPPLEMENT NOT SUPPLANT.—Funds appro8 priated pursuant to the authority of this subtitle shall be

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

10 and local public funds and private funds expended to pro11 vide wage replacement.

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

13 subtitle shall be construed to supersede, preempt, or other14 wise infringe on the provisions of any collective bargaining

15 agreement or any employment benefit program or plan

16 that provides greater rights to employees than the rights

17 established under this subtitle.

18 SEC. 2206. EVALUATIONS AND REPORTS.

19 (a) AVAILABLE FUNDS.—The Secretary shall use not

20 more than 2 percent of the funds made available under

21 section 2205 to carry out this section.

22 (b) EVALUATIONS.—The Secretary shall, directly or

23 by contract, evaluate the effectiveness of projects carried

24 out with grants made under section 2205, including

25 conducting—
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1 (1) research relating to the projects, including

2 research comparing—

3 (A) the scope of the projects, including the

4 type of insurance or other wage replacement

5 mechanism used, the method of financing used,

6 the eligibility requirements, the level of the

7 wage replacement benefit provided (such as the

8 percentage of salary replaced), and the length

9 of the benefit provided, for the projects;

10 (B) the utilization of the projects, includ11 ing the characteristics of individuals who ben12 efit from the projects, particularly low-wage

13 workers, and factors that determine the ability

14 of eligible individuals to obtain wage replace15 ment through the projects; and

16 (C) the costs of and savings achieved by

17 the projects, including the cost-effectiveness of

18 the projects and their benefits for children and

19 families;

20 (2) analysis of the overall need for wage re21 placement; and

22 (3) analysis of the impact of the projects on the

23 overall availability of wage replacement.

24 (c) REPORTS.—
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1 (1) INITIAL REPORT.—Not later than 3 years

2 after the beginning of the grant period for the first

3 grant made under section 2205, the Secretary shall

4 prepare and submit to Congress a report that con5 tains information resulting from the evaluations con6 ducted under subsection (b).

7 (2) SUBSEQUENT REPORTS.—Not later than 4

8 years after the beginning of that grant period, and

9 annually thereafter, the Secretary shall prepare and

10 submit to Congress a report that contains—

11 (A) information resulting from the evalua12 tions conducted under subsection (b); and

13 (B) usage data for the demonstration

14 projects, for the most recent year for which

15 data are available.

16 SEC. 2207. AUTHORIZATION OF APPROPRIATIONS.

17 There are authorized to be appropriated to carry out

18 this subtitle $400,000,000 for fiscal year 2002 and such

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

20 Subtitle D—Health Care for the

21 Uninsured

22 SEC. 2301. FAMILYCARE COVERAGE OF PARENTS UNDER

23 THE MEDICAID PROGRAM AND TITLE XXI.

24 (a) INCENTIVES TO IMPLEMENT FAMILYCARE COV25 ERAGE.—
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1 (1) UNDER MEDICAID.—

2 (A) ESTABLISHMENT OF NEW OPTIONAL

3 ELIGIBILITY CATEGORY.—Section

4 1902(a)(10)(A)(ii) of the Social Security Act

5 (42 U.S.C. 1396a(a)(10)(A)(ii)) is amended—

6 (i) by striking ‘‘or’’ at the end of sub7 clause (XVI);

8 (ii) by adding ‘‘or’’ at the end of sub9 clause (XVII); and

10 (iii) by adding at the end the fol11 lowing new subclause:

12 ‘‘(XVIII) who are parents de13 scribed in subsection (k)(1), but only

14 if the State meets the conditions de15 scribed in subsection (k)(2);’’.

16 (B) CONDITIONS FOR COVERAGE.—Section

17 1902 of such Act is further amended by insert18 ing after subsection (j) the following new sub19 section:

20 ‘‘(k)(1)(A) Parents described in this paragraph are

21 the parents of an individual who is under 19 years of age

22 (or such higher age as the State may have elected under

23 section 1902(l)(1)(D)) and who is eligible and enrolled for

24 medical assistance under subsection (a)(10)(A), if—
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1 ‘‘(i) such parents are not otherwise eligible for

2 such assistance under such subsection; and

3 ‘‘(ii) the income of the family that includes such

4 parents does not exceed an income level specified by

5 the State consistent with paragraph (2)(B).

6 ‘‘(B) In this subsection, the term ‘parent’ has the

7 meaning given the term ‘caretaker’ for purposes of car8 rying out section 1931, and such additional meaning as

9 defined by the State and approved by the Secretary.

10 ‘‘(2) The conditions for a State to provide medical

11 assistance under subsection (a)(10)(A)(ii)(XVIII) are as

12 follows:

13 ‘‘(A) The State has a State child health plan

14 under title XXI which (whether implemented under

15 such title or under this title)—

16 ‘‘(i) has an income standard (or will estab17 lish an income standard that is effective at the

18 time additional allotments are available to the

19 State under section 2104(d), as amended by the

20 Leave No Child Behind Act of 2001) for chil21 dren that is at least 200 percent of the poverty

22 line; and

23 ‘‘(ii) does not limit the acceptance of appli24 cations, does not use a waiting list for children

25 who meet eligibility standards to qualify for as-
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1 sistance, and provides benefits to all children in

2 the State who apply for and meet eligibility

3 standards.

4 ‘‘(B) The income level specified under para5 graph (1)(A)(ii) for parents in a family exceeds the

6 income level applicable under section 1931 but does

7 not exceed the highest income level applicable to a

8 child in the family under this title. A State may not

9 cover such parents with higher family income with10 out covering parents with a lower family income.

11 ‘‘(3) In the case of a parent described in paragraph

12 (1) who is also the parent of a child who is eligible and

13 enrolled for child health assistance under title XXI, the

14 State may elect (on a uniform basis) to cover all such par15 ents under section 2111 or under subsection (a)(10)(A).’’.

16 (C) ENHANCED MATCHING FUNDS AVAIL17 ABLE.—Section 1905 of such Act (42 U.S.C.

18 1396d) is amended—

19 (i) in the fourth sentence of sub20 section (b), by striking ‘‘or subsection

21 (u)(3)’’ and inserting ‘‘, (u)(3), or (u)(4)’’;

22 and

23 (ii) in subsection (u)—

24 (I) by redesignating paragraph

25 (4) as paragraph (6), and
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1 (II) by inserting after paragraph

2 (3) the following new paragraph:

3 ‘‘(4) For purposes of subsection (b) and section

4 2105(a)(1):

5 ‘‘(A) FAMILYCARE PARENTS.—The expendi6 tures described in this subparagraph are the fol7 lowing:

8 ‘‘(i) PARENTS.—Expenditures for medical

9 assistance made available under section 1931,

10 or under section 1902(a)(10)(A)(ii)(XVIII) for

11 parents described in section 1902(k)(1), in a

12 family the income of which exceeds the income

13 level applicable under such section 1931 to a

14 family of the size involved as of January 1,

15 2000.

16 ‘‘(ii) CERTAIN PREGNANT WOMEN.—Ex17 penditures for medical assistance for pregnant

18 women under section 1902(l)(1)(A) in a family

19 the income of which exceeds the income level

20 applicable under section 1902(l)(2)(A) to a

21 family of the size involved as of January 1,

22 2000.’’.

23 (D) APPROPRIATION FROM TITLE XXI AL24 LOTMENT FOR CERTAIN MEDICAID EXPANSION

25 COSTS.—Section 2105(a)(1)(C) of such Act (42
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1 U.S.C. 1397ee(a)(1)(C))) is amended by insert2 ing ‘‘and for medical assistance that is attrib3 utable to expenditures described in section

4 1905(u)(4)(A)’’ before the semicolon.

5 (E) ONLY COUNTING ENHANCED PORTION

6 FOR COVERAGE OF ADDITIONAL PREGNANT

7 WOMEN.—Section 1905 of such Act (42 U.S.C.

8 1396d) is amended—

9 (i) in the fourth sentence of sub10 section (b), by inserting ‘‘(except in the

11 case of expenditures described in sub12 section (u)(5))’’ after ‘‘do not exceed’’;

13 (ii) in subsection (u), by inserting

14 after paragraph (4) (as inserted by sub15 paragraph (C)), the following new para16 graph:

17 ‘‘(5) For purposes of the fourth sentence of sub18 section (b) and section 2105(a), the following payments

19 under this title do not count against a State’s allotment

20 under section 2104:

21 ‘‘(A) REGULAR FMAP FOR EXPENDITURES FOR

22 PREGNANT WOMEN WITH INCOME ABOVE JANUARY

23 1, 2000 INCOME LEVEL AND BELOW 185 PERCENT OF

24 POVERTY.—The portion of the payments made for

25 expenditures described in paragraph (4)(A)(ii) that
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1 represents the amount that would have been paid if

2 the enhanced FMAP had not been substituted for

3 the Federal medical assistance percentage.’’.

4 (2) UNDER TITLE XXI.—

5 (A) FAMILYCARE COVERAGE.—Title XXI

6 of such Act is amended by adding at the end

7 the following new section:

8 ‘‘SEC. 2111. OPTIONAL FAMILYCARE COVERAGE OF PAR9 ENTS OF TARGETED LOW-INCOME CHILDREN.

10 ‘‘(a) OPTIONAL COVERAGE.—Notwithstanding any

11 other provision of this title, a State child health plan may

12 provide for coverage, through an amendment to its State

13 child health plan under section 2102, of FamilyCare as14 sistance for targeted low-income parents in accordance

15 with this section, but only if—

16 ‘‘(1) the State meets the conditions described in

17 section 1902(k)(2); and

18 ‘‘(2) the State elects to provide medical assist19 ance under section 1902(a)(10)(A)(ii)(XVIII) and

20 elects an applicable income limit that is not lower

21 than the limit described in subsection (b)(2)(A).

22 ‘‘(b) DEFINITIONS.—For purposes of this section:

23 ‘‘(1) FAMILYCARE ASSISTANCE.—The term

24 ‘FamilyCare assistance’ has the meaning given the

25 term child health assistance in section 2110(a) as if
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1 any reference to targeted low-income children were

2 a reference to targeted low-income parents.

3 ‘‘(2) TARGETED LOW-INCOME PARENT.—The

4 term ‘targeted low-income parent’ has the meaning

5 given the term targeted low-income child in section

6 2110(b) as if the reference to a child were deemed

7 a reference to a parent (as defined in paragraph (3))

8 of the child; except that in applying such section—

9 ‘‘(A) there shall be substituted for the in10 come limit described in paragraph (1)(B)(ii)(I)

11 the applicable income limit in effect for a tar12 geted low-income child;

13 ‘‘(B) in paragraph (3), January 1, 2000,

14 shall be substituted for July 1, 1997; and

15 ‘‘(C) in paragraph (4), January 1, 2000,

16 shall be substituted for March 31, 1997.

17 ‘‘(3) PARENT.—The term ‘parent’ has the

18 meaning given the term ‘caretaker’ for purposes of

19 carrying out section 1931, and such additional

20 meaning as defined by the State and approved by

21 the Secretary.

22 ‘‘(4) OPTIONAL TREATMENT OF PREGNANT

23 WOMEN AS PARENTS.—A State child health plan

24 may treat a pregnant woman who is not otherwise

25 a parent as a targeted low-income parent for pur-
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1 poses of this section but only if the State has estab2 lished an income level under section 1902(l)(2)(A)(i)

3 for pregnant women that is at least 185 percent of

4 the income official poverty line described in such sec5 tion.

6 ‘‘(c) REFERENCES TO TERMS AND SPECIAL

7 RULES.—In the case of, and with respect to, a State pro8 viding for coverage of FamilyCare assistance to targeted

9 low-income parents under subsection (a), the following

10 special rules apply:

11 ‘‘(1) Any reference in this title (other than sub12 section (b)) to a targeted low-income child is deemed

13 to include a reference to a targeted low-income par14 ent.

15 ‘‘(2) Any such reference to child health assist16 ance with respect to such parents is deemed a ref17 erence to FamilyCare assistance.

18 ‘‘(3) In applying section 2103(e)(3)(B) in the

19 case of a family provided coverage under this sec20 tion, the limitation on total annual aggregate cost21 sharing shall be applied to the entire family.

22 ‘‘(4) In applying section 2110(b)(4), any ref23 erence to ‘section 1902(l)(2) or 1905(n)(2) (as se24 lected by a State)’ is deemed a reference to the in25 come level applicable to parents under section 1931,
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1 or, in the case of a pregnant woman described in

2 subsection (b)(4), the income level established under

3 section 1902(l)(2)(A).’’.

4 (B) ADDITIONAL ALLOTMENT FOR STATES

5 PROVIDING FAMILYCARE.—

6 (i) IN GENERAL.—Section 2104 of

7 such Act (42 U.S.C. 1397dd) is amended

8 by inserting after subsection (c) the fol9 lowing new subsection:

10 ‘‘(d) ADDITIONAL ALLOTMENTS FOR STATE PRO11 VIDING FAMILYCARE.—

12 ‘‘(1) APPROPRIATION; TOTAL ALLOTMENT.—

13 For the purpose of providing additional allotments

14 to States electing to provide FamilyCare coverage

15 under section 2111, there is appropriated, out of any

16 money in the Treasury not otherwise appropriated—

17 ‘‘(A) for fiscal year 2002, $2,000,000,000;

18 ‘‘(B) for fiscal year 2003, $2,000,000,000;

19 ‘‘(C) for fiscal year 2004, $3,000,000,000;

20 ‘‘(D) for fiscal year 2005, $3,000,000,000;

21 ‘‘(E) for fiscal year 2006, $6,000,000,000;

22 ‘‘(F) for fiscal year 2007, $7,000,000,000;

23 ‘‘(G) for fiscal year 2008, $8,000,000,000;

24 ‘‘(H) for fiscal year 2009, $9,000,000,000;
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1 ‘‘(I) for fiscal year 2010, $10,000,000,000;

2 and

3 ‘‘(J) for fiscal year 2011 and each fiscal

4 year thereafter, the amount of the allotment

5 provided under this paragraph for the preceding

6 fiscal year increased by the percentage increase

7 (if any) in the medical care expenditure cat8 egory of the Consumer Price Index for All

9 Urban Consumers (United States city average).

10 ‘‘(2) STATE AND TERRITORIAL ALLOTMENTS.—

11 ‘‘(A) IN GENERAL.—In addition to the al12 lotments provided under subsections (b) and

13 (c), subject to paragraph (3), of the amount

14 available for the additional allotments under

15 paragraph (1) for a fiscal year, the Secretary

16 shall allot to each State with a State child

17 health plan approved under this title and which

18 has elected to provide coverage under section

19 2111 during the fiscal year—

20 ‘‘(i) in the case of such a State other

21 than a commonwealth or territory de22 scribed in clause (ii), the same proportion

23 as the proportion of the State’s allotment

24 under section 2104(b) (determined without

25 regard to section 2104(f)) to 98.95 percent
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1 of the total amount of the allotments

2 under such section for such States eligible

3 for an allotment under this subparagraph

4 for such fiscal year; and

5 ‘‘(ii) in the case of a commonwealth or

6 territory described in section 2104(c)(3),

7 the same proportion as the proportion of

8 the commonwealth’s or territory’s allot9 ment under section 2104(c) (determined

10 without regard to section 2104(f)) to 1.05

11 percent of the total amount of the allot12 ments under such section for common13 wealths and territories eligible for an allot14 ment under this subparagraph for such fis15 cal year.

16 ‘‘(B) REDISTRIBUTION OF UNUSED ALLOT17 MENTS.—In applying subsection (f) with re18 spect to additional allotments made available

19 under this subsection, the procedures estab20 lished under such subsection shall ensure such

21 additional allotments are only made available to

22 States which have elected to provide coverage

23 under section 2111.

24 ‘‘(3) USE OF ADDITIONAL ALLOTMENT.—Addi25 tional allotments provided under this subsection are
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1 not available for amounts expended before October

2 1, 2001. Such amounts are available for amounts ex3 pended on or after such date for child health assist4 ance for targeted low-income children, as well as for

5 FamilyCare assistance.’’.

6 (ii) CONFORMING AMENDMENTS.—

7 Section 2104 of such Act (42 U.S.C.

8 1397dd) is further amended—

9 (I) in subsection (a), by inserting

10 ‘‘subject to subsection (d),’’ after

11 ‘‘under this section,’’;

12 (II) in subsection (b)(1), by in13 serting ‘‘and subsection (d)’’ after

14 ‘‘Subject to paragraph (4)’’; and

15 (III) in subsection (c)(1), by in16 serting ‘‘subject to subsection (d),’’

17 after ‘‘for a fiscal year,’’.

18 (C) NO COST-SHARING FOR PREGNANCY19 RELATED BENEFITS.—Section 2103(e)(2) of

20 such Act (42 U.S.C. 1397cc(e)(2)) is

21 amended—

22 (i) in the heading, by inserting ‘‘AND

23 PREGNANCY-RELATED SERVICES’’ after

24 ‘‘PREVENTIVE SERVICES’’; and
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1 (ii) by inserting before the period at

2 the end the following: ‘‘and for pregnancy3 related services’’.

4 (3) EFFECTIVE DATE.—The amendments made

5 by this subsection apply to items and services fur6 nished on or after October 1, 2001.

7 (b) RULES FOR IMPLEMENTATION BEGINNING WITH

8 FISCAL YEAR 2006.—

9 (1) REQUIRED COVERAGE OF FAMILYCARE PAR10 ENTS.—Section 1902(a)(10)(A)(i) of the Social Se11 curity Act (42 U.S.C. 1396a(a)(10)(A)(i)) is

12 amended—

13 (A) by striking ‘‘or’’ at the end of sub14 clause (VI);

15 (B) by striking the semicolon at the end of

16 subclause (VII) and insert ‘‘, or’’; and

17 (C) by adding at the end the following new

18 subclause:

19 ‘‘(VIII) who would be parents de20 scribed in subsection (k)(1) if the in21 come level specified in subsection

22 (k)(2)(B) were equal to at least 100

23 percent of the poverty line referred to

24 in such subsection;’’.
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1 (2) EXPANSION OF AVAILABILITY OF EN2 HANCED MATCH UNDER MEDICAID FOR PRE-CHIP

3 EXPANSIONS.—Paragraph (4) of section 1905(u) of

4 such Act (42 U.S.C. 1396d(u)), as inserted by sub5 section (a)(1)(C), is amended—

6 (A) by amending clause (ii) of subpara7 graph (A) to read as follows:

8 ‘‘(ii) CERTAIN PREGNANT WOMEN.—Ex9 penditures for medical assistance for pregnant

10 women under section 1902(l)(1)(A) in a family

11 the income of which exceeds the 133 percent of

12 the income official poverty line.’’; and

13 (B) by adding at the end the following new

14 subparagraphs:

15 ‘‘(B) PARENTS WITH INCOME ABOVE 100 PER16 CENT OF POVERTY BUT BELOW JANUARY 1, 2000 IN17 COME LEVEL.—The expenditures described in this

18 subparagraph are expenditures for medical assist19 ance made available for any parents described in

20 section 1902(a)(10)(A)(i)(VIII), whose income ex21 ceeds 100 percent of the income official poverty line

22 applicable to a family of the size involved but does

23 not exceed the applicable income level established

24 under this title (under section 1931 or otherwise) for
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1 a parent in a family of the size involved as of Janu2 ary 1, 2000.

3 ‘‘(C) CHILDREN IN FAMILIES WITH INCOME

4 ABOVE MEDICAID MANDATORY LEVEL NOT PRE5 VIOUSLY DESCRIBED.—The expenditures described

6 in this subparagraph are expenditures (other than

7 expenditures described in paragraph (2) or (3)) for

8 medical assistance made available to any child who

9 is eligible for assistance under section

10 1902(a)(10)(A) and the income of whose family ex11 ceeds the minimum income level required under sub12 section 1902(l)(2) for a child of the age involved

13 (treating any child who is 19 or 20 years of age as

14 being 18 years of age).’’.

15 (3) OFFSET OF ADDITIONAL EXPENDITURES

16 FOR ENHANCED MATCH FOR PRE-CHIP EXPANSION;

17 ELIMINATION OF OFFSET FOR REQUIRED COVERAGE

18 OF FAMILYCARE PARENTS.—

19 (A) IN GENERAL.—Section 1905(u)(5) of

20 such Act (42 U.S.C. 1396d(u)(5)), as added by

21 subsection (a)(1)(E), is amended—

22 (i) by amending subparagraph (A) to

23 read as follows:

24 ‘‘(A) REGULAR FMAP FOR EXPENDITURES FOR

25 PREGNANT WOMEN WITH INCOME ABOVE 133 PER-
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1 CENT OF POVERTY.—The portion of the payments

2 made for expenditures described in paragraph

3 (4)(A)(ii) that represents the amount that would

4 have been paid if the enhanced FMAP had not been

5 substituted for the Federal medical assistance per6 centage.’’; and

7 (ii) by adding at the end the following

8 new subparagraphs:

9 ‘‘(B) FAMILYCARE PARENTS UNDER 100 PER10 CENT OF POVERTY.—Payments for expenditures de11 scribed in paragraph (4)(A)(i) in the case of parents

12 whose income does not exceed 100 percent of the in13 come official poverty line applicable to a family of

14 the size involved.

15 ‘‘(C) REGULAR FMAP FOR EXPENDITURES FOR

16 PARENTS WITH INCOME ABOVE 100 PERCENT OF

17 POVERTY BUT BELOW JANUARY 1, 2000 INCOME

18 LEVEL.—The portion of the payments made for ex19 penditures described in paragraph (4)(B) that rep20 resents the amount that would have been paid if the

21 enhanced FMAP had not been substituted for the

22 Federal medical assistance percentage.

23 ‘‘(D) REGULAR FMAP FOR EXPENDITURES FOR

24 CERTAIN CHILDREN IN FAMILIES WITH INCOME

25 ABOVE MEDICAID MANDATORY LEVEL.—The portion
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1 of the payments made for expenditures described in

2 paragraph (4)(C) that represents the amount that

3 would have been paid if the enhanced FMAP had

4 not been substituted for the Federal medical assist5 ance percentage.’’.

6 (B) CONFORMING AMENDMENTS.—Section

7 2105(a)(1)(C) of such Act (42 U.S.C.

8 1397ee(1)(1)(C)), as amended by subsection

9 (a)(1)(D), is amended by striking ‘‘and for

10 medical assistance that is attributable to ex11 penditures described in section 1905(u)(4)(A)’’

12 and inserting ‘‘and for medical assistance that

13 is attributable to expenditures described in sec14 tion 1905(u)(4), except as provided in section

15 1905(u)(5)’’.

16 (3) EFFECTIVE DATE.—The amendments made

17 by this subsection apply as of October 1, 2005, to

18 fiscal years beginning on or after such date and to

19 expenditures under the State plan on and after such

20 date.

21 (c) MAKING TITLE XXI BASE ALLOTMENTS PERMA22 NENT.—Section 2104(a) of such Act (42 U.S.C.

23 1397dd(a)) is amended—

24 (1) by striking ‘‘and’’ at the end of paragraph

25 (9);
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1 (2) by striking the period at the end of para2 graph (10) and inserting ‘‘; and’’; and

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

4 paragraph:

5 ‘‘(11) for fiscal year 2008 and each fiscal year

6 thereafter, the amount of the allotment provided

7 under this subsection for the preceding fiscal year

8 increased by the percentage increase (if any) in the

9 medical care expenditure category of the Consumer

10 Price Index for All Urban Consumers (United States

11 city average).’’.

12 (d) OPTIONAL APPLICATION OF PRESUMPTIVE ELI13 GIBILITY PROVISIONS TO PARENTS.—Section 1920A of

14 such Act (42 U.S.C. 1396r–1a) is amended by adding at

15 the end the following new subsection:

16 ‘‘(e) In accordance with regulations, a State may

17 elect to apply the previous provisions of this section to pro18 vide for a period of presumptive eligibility for medical as19 sistance for a parent of a child with respect to whom such

20 a period is provided under this section.’’.

21 (e) CONFORMING AMENDMENTS.—

22 (1) ELIGIBILITY CATEGORIES.—Section

23 1905(a) of such Act (42 U.S.C. 1396d(a)) is amend24 ed, in the matter before paragraph (1)—
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1 (A) by striking ‘‘or’’ at the end of clause

2 (xi);

3 (B) by inserting ‘‘or’’ at the end of clause

4 (xii); and

5 (C) by inserting after clause (xii) the fol6 lowing new clause:

7 ‘‘(xiii) who are parents described (or treated as

8 if described) in section 1902(k)(1),’’.

9 (2) INCOME LIMITATIONS.—Section 1903(f)(4)

10 of such Act (42 U.S.C. 1396b(f)(4))—

11 (A) effective October 1, 2005, by inserting

12 ‘‘1902(a)(10)(A)(i)(VIII),’’ after

13 ‘‘1902(a)(10)(A)(i)(VII),’’; and

14 (B) by inserting

15 ‘‘1902(a)(10)(A)(ii)(XVII),

16 1902(a)(10)(A)(ii)(XVIII),’’ after

17 ‘‘1902(a)(10)(A)(ii)(XVI),’’.

18 (3) CONFORMING AMENDMENT RELATING TO

19 NO WAITING PERIOD FOR CERTAIN WOMEN.—Section

20 2102(b)(1)(B) of such Act (42 U.S.C.

21 1397bb(b)(1)(B)) is amended—

22 (A) by striking ‘‘, and’’ at the end of

23 clause (i) and inserting a semicolon;

24 (B) by striking the period at the end of

25 clause (ii) and inserting ‘‘; and’’; and
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1 (C) by adding at the end the following new

2 clause:

3 ‘‘(iii) may not apply a waiting period

4 (including a waiting period to carry out

5 paragraph (3)(C)) in the case of targeted

6 low-income women who are pregnant.’’.

7 Subtitle E—Awareness of

8 Environmental Risks to Children

9 SEC. 2401. SHORT TITLE.

10 This subtitle may be cited as the ‘‘Children’s Envi11 ronmental Protection and Right to Know Act’’.

12 SEC. 2402. FINDING.

13 Congress finds that requirements to disclose informa14 tion about environmental risks will improve health and

15 safety by—

16 (1) prompting persons causing those risks to re17 duce the risks; and

18 (2) enabling individuals to take actions to pro19 tect themselves from those risks.
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1 CHAPTER 1—CHILDREN’S

2 ENVIRONMENTAL PROTECTION

3 Subchapter A—Disclosure of Industrial Re4 leases That Present a Significant Risk to

5 Children

6 SEC. 2411. REPORTING REQUIREMENTS.

7 (a) IN GENERAL.—Section 313(f) of the Emergency

8 Planning and Community Right-To-Know Act of 1986 (42

9 U.S.C. 11023(f)) is amended by striking paragraph (1)

10 and inserting the following:

11 ‘‘(1) IN GENERAL.—

12 ‘‘(A) TOXIC CHEMICAL THRESHOLD QUAN13 TITY.—The threshold quantities for purposes of

14 reporting toxic chemicals under this section are

15 as follows:

16 ‘‘(i) TOXIC CHEMICALS USED AT FA17 CILITIES.—The threshold quantity of a

18 toxic chemical used at a facility shall be

19 10,000 pounds of the toxic chemical per

20 year.

21 ‘‘(ii) MANUFACTURED OR PROCESSED

22 TOXIC CHEMICALS.—The threshold quan23 tity of a toxic chemical manufactured or

24 processed at a facility shall be—
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1 ‘‘(I) 75,000 pounds of a toxic

2 chemical per year, for any toxic chem3 ical for which a toxic chemical release

4 form is required to be submitted

5 under this section on or before July 1,

6 1988;

7 ‘‘(II) 50,000 pounds of a toxic

8 chemical per year, for any toxic chem9 ical for which a toxic chemical release

10 form is required to be submitted dur11 ing the period beginning July 2, 1988,

12 and ending July 1, 1989; and

13 ‘‘(III) 25,000 pounds of a toxic

14 chemical per year, for any toxic chem15 ical for which any toxic release form

16 is required to be submitted on or after

17 July 2, 1989.

18 ‘‘(B) TOXIC CHEMICALS RELEASED FROM

19 FACILITIES.—

20 ‘‘(i) TOXIC CHEMICAL THRESHOLD

21 PROGRAM.—

22 ‘‘(I) ESTABLISHMENT.—Not

23 later than 2 years after the date of

24 enactment of the Children’s Environ25 mental Protection and Right to Know
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1 Act, subject to clause (ii) and in addi2 tion to the reporting thresholds for

3 the toxic chemicals specified in sub4 clause (II), the Administrator shall es5 tablish a reporting threshold for each

6 toxic chemical that the Administrator

7 determines may present a significant

8 risk to children’s health or the envi9 ronment due to, as determined by

10 the—

11 ‘‘(aa) the persistent use or

12 existence of the toxic chemical in

13 the environment;

14 ‘‘(bb) the potential of the

15 toxic chemical to bioaccumulate

16 or disrupt endocrine systems; or

17 ‘‘(cc) other characteristics of

18 the toxic chemical.

19 ‘‘(II) TOXIC CHEMICALS IN20 CLUDED.—The Administrator shall

21 establish a reporting threshold under

22 subclause (I) for—

23 ‘‘(aa) lead;

24 ‘‘(bb) mercury;

25 ‘‘(cc) dioxin;
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1 ‘‘(dd) cadmium;

2 ‘‘(ee) chromium; and

3 ‘‘(ff) each substance identi4 fied as a bioaccumulative chem5 ical of concern in the final rule

6 promulgated by the Adminis7 trator entitled ‘Water Quality

8 Guidance for the Great Lakes

9 System, Part III’ (60 Fed. Reg.

10 15336 (March 23, 1995)).

11 ‘‘(ii) THRESHOLD QUANTITY.—The

12 Administrator shall establish by regulation

13 each threshold quantity for a toxic chem14 ical described in clause (i) at a level that,

15 as determined by the Administrator, will

16 ensure reporting of at least 80 percent of

17 the aggregate of all releases of the toxic

18 chemical from facilities that—

19 ‘‘(I) have 10 or more full-time

20 employees; and

21 ‘‘(II) are designated with any of

22 Standard Industrial Classification

23 Codes 20 through 39 or any of the

24 Standard Industrial Classification
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1 Codes added under subsection

2 (b)(1)(B).’’.

3 (b) CONFORMING AMENDMENTS.—

4 (1) Section 313 of the Emergency Planning and

5 Community Right-To-Know Act of 1986 (42 U.S.C.

6 11023) is amended—

7 (A) in subsections (a) and (b)(1)(A), by

8 striking ‘‘or otherwise used’’ each place it ap9 pears and inserting ‘‘otherwise used, or re10 leased’’;

11 (B) in subsection (c)—

12 (i) by striking ‘‘are those chemicals’’

13 and inserting the following: ‘‘are—

14 ‘‘(1) those chemicals’’;

15 (ii) by striking the period at the end

16 and inserting ‘‘; and’’; and

17 (iii) by adding at the end the fol18 lowing:

19 ‘‘(2) dioxin and each other substance identified

20 as a bioaccumulative chemical of concern in the final

21 rule promulgated by the Administrator entitled

22 ‘Water Quality Guidance for the Great Lakes Sys23 tem, Part III’ (60 Fed. Reg. 15336 (March 23,

24 1995)).’’; and
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1 (C) in the first sentence of subsection

2 (f)(2), by striking ‘‘paragraph (1)’’ and insert3 ing ‘‘subparagraph (A) or (B) of paragraph

4 (1)’’.

5 (2) Section 326(a)(1)(B) of the Emergency

6 Planning and Community Right-To-Know Act of

7 1986 (42 U.S.C. 11046(a)(1)(B)) is amended by

8 adding at the end the following:

9 ‘‘(vii) Establish reporting thresholds for chemi10 cals referred to in section 313(f)(1)(C).’’.

11 Subchapter B—Disclosure of High Health

12 Risk Chemicals in Children’s Consumer

13 Products

14 SEC. 2421. LIST OF TOXIC CHEMICALS.

15 (a) DEFINITION OF ELIGIBLE PRODUCT.—Section 2

16 of the Federal Hazardous Substances Act (15 U.S.C.

17 1261) is amended by adding at the end the following:

18 ‘‘(u) ELIGIBLE PRODUCT.—

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), the term ‘eligible product’ means any toy

21 or other article intended for use by children.

22 ‘‘(2) EXCEPTION.—On and after the date that

23 is 3 years after the date of enactment of this sub24 section, the term ‘eligible product’ means any con-
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1 sumer product (as defined in section 3 of the Con2 sumer Product Safety Act (15 U.S.C. 2052)).’’.

3 (b) LIST OF TOXIC CHEMICALS.—Section 3 of the

4 Federal Hazardous Substances Act (15 U.S.C. 1262) is

5 amended by adding at the end the following:

6 ‘‘(k) LIST OF TOXIC CHEMICALS.—

7 ‘‘(1) DEFINITIONS.—In this subsection:

8 ‘‘(A) ADMINISTRATOR.—The term ‘Admin9 istrator’ means the Administrator of the Envi10 ronmental Protection Agency.

11 ‘‘(B) CHAIRMAN.—The term ‘Chairman’

12 means the Chairman of the Consumer Product

13 Safety Commission.

14 ‘‘(2) LIST.—Not later than 1 year after the

15 date of enactment of this subsection, the Adminis16 trator, acting jointly with the Chairman, shall pub17 lish in the Federal Register a list of substances or

18 mixtures of substances that have been determined by

19 the Administrator and the Chairman to be toxic to

20 children due to their carcinogenic, neurotoxic, or re21 productive toxic effects.

22 ‘‘(3) SUBSTANCES AND INFORMATION TO BE

23 INCLUDED.—The list under that paragraph shall

24 include—
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1 ‘‘(A)(i) any chemical that has been identi2 fied by a Federal agency as being a carcinogen,

3 neurotoxin, or reproductive toxin;

4 ‘‘(ii) each chemical identified as a Group A

5 or Group B carcinogen in the notice published

6 by the Administrator entitled ‘Regulation of

7 Pesticides in Food: Addressing the Delaney

8 Paradox Policy Statement’ (53 Fed. Reg.

9 41118 (October 19, 1988));

10 ‘‘(iii) each chemical that adversely affects

11 the nervous system of children, as identified in

12 criteria documents of the National Institute for

13 Occupational Safety and Health;

14 ‘‘(iv) each chemical identified by the Con15 sumer Product Safety Commission as having

16 sufficient evidence to demonstrate—

17 ‘‘(I) carcinogenicity in humans or ani18 mals;

19 ‘‘(II) neurotoxicity in humans or ani20 mals;

21 ‘‘(III) human developmental toxicity;

22 or

23 ‘‘(IV) male or female reproductive tox24 icity in humans or animals;
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1 ‘‘(v) each chemical regulated as a

2 neurotoxin, reproductive toxin, or developmental

3 toxin by the Administrator; and

4 ‘‘(vi) each chemical on the Biennial List of

5 Carcinogens submitted to Congress by the Sec6 retary of Health and Human Services; and

7 ‘‘(B) such reasonably available information

8 on adverse health effects of any substance or

9 mixture of substances as was used to determine

10 whether to include the substance or mixture on

11 the list required under paragraph (2).

12 ‘‘(4) DATA.—In carrying out paragraph (3), the

13 Secretary and the Chairman shall require manufac14 turers and importers of substances and mixtures of

15 substances on the list required under paragraph (2)

16 to generate, and shall obtain from any Federal,

17 State, or local government, such data as are suffi18 cient to identify substances or mixtures of

19 substances—

20 ‘‘(A) that are toxic within the meaning of

21 paragraph (2); and

22 ‘‘(B) to which infants and young children

23 are exposed.

24 ‘‘(l) CHEMICAL TESTING AND RISK ASSESSMENT.—

25 As soon as practicable after the date of enactment of this
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1 subsection, the Administrator of the Environmental Pro2 tection Agency, in consultation with experts in pediatric

3 toxicology and exposure, shall develop and implement new

4 short-term and long-term strategies for more comprehen5 sive chemical testing and risk assessment to ensure that

6 risks of exposure to children (including exposure to chil7 dren in utero) are, to the maximum extent practicable,

8 fully understood.’’.

9 SEC. 2422. REPORTING OF TOXIC CHEMICALS IN CON10 SUMER PRODUCTS.

11 (a) REPORTING.—The Federal Hazardous Sub12 stances Act (15 U.S.C. 1261 et seq.) is amended by add13 ing at the end the following:

14 ‘‘SEC. 25. REPORTING OF TOXIC CHEMICALS.

15 ‘‘(a) IN GENERAL.—A manufacturer or importer of

16 any eligible product that contains, or is composed of, a

17 substance or mixture of substances listed under section

18 3(k) shall submit to the Commission a report that de19 scribes each of the following:

20 ‘‘(1) The identity of the manufacturer or im21 porter of the eligible product.

22 ‘‘(2) A description of the eligible product (in23 cluding any model name and model number of the

24 eligible product).
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1 ‘‘(3) The identity of the substance or mixture

2 of substances listed under section 3(k) (including the

3 concentration of the substance or mixture in the eli4 gible product).

5 ‘‘(4) Any information known to the manufac6 turer or importer that would support a determina7 tion that the eligible product is not a misbranded

8 hazardous substance or a banned hazardous sub9 stance.

10 ‘‘(5) Such data as are generated by the manu11 facturer or importer as are sufficient to identify any

12 substances or mixtures of substances manufactured

13 or imported that are toxic to children, as described

14 in section 3(k)(2).

15 ‘‘(b) PUBLICATION.—The Commission shall annually

16 publish in the Federal Register, and make available to the

17 public in an electronic format, the information submitted

18 under subsection (a).

19 ‘‘(c) REGULATIONS.—The Commission shall promul20 gate such regulations as necessary to carry out this sec21 tion.

22 ‘‘(d) APPLICATION OF SECTION.—Subsection (a)

23 shall apply to a substance or mixture of substances listed

24 under section 3(k) beginning on the date that is 1 year
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1 after the date on which the substance or mixture of sub2 stances is listed under that section.’’.

3 (b) PROHIBITED ACTS.—

4 (1) IN GENERAL.—Section 4 of the Federal

5 Hazardous Substances Act (15 U.S.C. 1263) is

6 amended by adding at the end the following:

7 ‘‘(l) The failure to report as required under section

8 25.’’.

9 (2) CONFORMING AMENDMENT.—Section

10 5(c)(1) of the Federal Hazardous Substances Act

11 (15 U.S.C. 1264(c)(1)) is amended in the second

12 sentence by striking ‘‘and (k)’’ and inserting ‘‘(k),

13 and (l)’’.

14 SEC. 2423. EXEMPTIONS.

15 (a) IN GENERAL.—Section 3(c) of the Federal Haz16 ardous Substances Act (15 U.S.C. 1262(c)) is amended—

17 (1) by striking ‘‘(c) If the Commission finds’’

18 and inserting the following:

19 ‘‘(c) EXEMPTION FROM REQUIREMENTS BY REGULA20 TION.—

21 ‘‘(1) IN GENERAL.—If the Commission deter22 mines’’; and

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

24 ‘‘(2) ADDITIONAL REGULATIONS.—In addition

25 to regulations promulgated under paragraph (1), the
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1 Commission may promulgate regulations exempting

2 from the reporting requirements of section 25 any

3 substance or mixture of substances.

4 ‘‘(3) APPLICABILITY.—This subsection shall not

5 apply to any substance or mixture of substances un6 less the Commission determines that the substance

7 or mixture would not, by reason of containing a sub8 stance or mixture of substances listed under section

9 3(k), cause substantial personal injury or substantial

10 illness during, or as a proximate result of, any cus11 tomary or reasonably foreseeable handling or use

12 (including reasonably foreseeable ingestion by chil13 dren).’’.

14 (b) CONFORMING AMENDMENT.—Section 3(d) of the

15 Federal Hazardous Substances Act (15 U.S.C. 1262(d))

16 is amended by striking ‘‘adequate requirements satisfying

17 the purposes of’’ and inserting ‘‘requirements at least as

18 stringent as’’.

19 SEC. 2424. PRIVATE CITIZEN ENFORCEMENT.

20 The Federal Hazardous Substances Act (15 U.S.C.

21 1261 et seq.) (as amended by section 2422(a)) is amended

22 by adding at the end the following:
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1 ‘‘SEC. 26. PRIVATE CITIZEN ENFORCEMENT.

2 ‘‘(a) IN GENERAL.—Subject to subsection (c), any

3 person other than the Commission may bring a civil action

4 in United States district court—

5 ‘‘(1) against any person, for violation of sub6 section (a), (b), or (l) of section 4; or

7 ‘‘(2) against the Commission, for a failure of

8 the Commission to perform any nondiscretionary act

9 or duty under the amendments made by the Chil10 dren’s Environmental Protection and Right to Know

11 Act.

12 ‘‘(b) JURISDICTION.—In the case of a civil action

13 under subsection (a)—

14 ‘‘(1) the United States district courts shall have

15 jurisdiction over the civil action without regard to

16 the amount in controversy or the citizenship of the

17 parties; and

18 ‘‘(2) the court may apply any appropriate civil

19 penalties under section 5 or order the Commission to

20 perform any nondiscretionary act or duty that the

21 Commission failed to perform.

22 ‘‘(c) ACTIONS PROHIBITED.—No action may be com23 menced under this section unless—

24 ‘‘(1) not later than 60 days before the date on

25 which the action is filed, the plaintiff gives notice of

26 the intent to bring the action—
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1 ‘‘(A) to the Commission; and

2 ‘‘(B) in the case of an action for a viola3 tion of section 4, to the person that is alleged

4 to have violated that section; and

5 ‘‘(2) in the case of an action for a violation of

6 section 4, the Commission has not commenced and

7 is not diligently pursuing a civil action on behalf of

8 the United States.

9 ‘‘(d) INTERVENTION.—In any action on behalf of the

10 United States following receipt of a notice under sub11 section (d)(1), the person providing the notice may inter12 vene as of right as a plaintiff in the action.

13 ‘‘(e) COSTS.—

14 ‘‘(1) IN GENERAL.—Except as provided in para15 graph (2), in any action under subsection (a), the

16 costs of litigation (including reasonable attorney

17 fees) may be awarded to—

18 ‘‘(A) any substantially prevailing plaintiff;

19 and

20 ‘‘(B) in any action under subsection (c),

21 the party intervening under subsection (c), if

22 that party contributed significantly to the suc23 cess of the plaintiff.

24 ‘‘(2) WAIVER.—The award of costs under para25 graph (1) may be fully or partially waived by a court
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1 if the court finds such an award to be inappropriate

2 under the circumstances.

3 ‘‘(f) BURDEN OF PROOF.—In any action under sub4 section (a)(1), if the person alleged to have violated section

5 4 asserts that a substance or mixture of substances is not

6 a hazardous substance by reason of containing a substance

7 or mixture of substances listed under section 3(k), the

8 burden of proof shall be the alleged violator to establish

9 that the substance or mixture of substances is not a haz10 ardous substance.

11 ‘‘(g) PENALTY FUND.—

12 ‘‘(1) ESTABLISHMENT.—There is established in

13 the Treasury of the United States a fund to be used

14 in carrying out this section (referred to in this sec15 tion as the ‘Fund’).

16 ‘‘(2) DEPOSIT OF ASSESSED PENALTIES.—A

17 penalty assessed as a result of a civil action under

18 subsection (a) shall be deposited in the Fund.

19 ‘‘(3) USE OF FUNDS.—On request by the Com20 mission, the Secretary of the Treasury shall transfer

21 from the Fund to the Commission such amounts as

22 the Commission determines are necessary to finance

23 compliance and enforcement activities under this

24 Act.
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1 ‘‘(4) AVAILABILITY.—Amounts in the Fund

2 shall remain available for use by the Commission

3 until expended, without further appropriation.

4 ‘‘(5) REPORTS.—The Commission shall submit

5 to Congress an annual report that describes—

6 ‘‘(A) any funds deposited into the Fund

7 during the year for which the report is sub8 mitted (including the sources of those funds);

9 and

10 ‘‘(B) the actual and proposed uses of the

11 funds.

12 ‘‘(h) OTHER PROJECTS.—Notwithstanding sub13 section (g), in lieu of being deposited in the Fund, any

14 civil penalty assessed may, at the option of the court (after

15 consultation with the Commission), be used to fund

16 projects of the Commission that are—

17 ‘‘(1) consistent with this Act; and

18 ‘‘(2) designed to enhance public awareness of—

19 ‘‘(A) the health effects of toxic substances

20 or mixtures of toxic substances in eligible prod21 ucts; and

22 ‘‘(B) the potential for exposure of children

23 to toxic substances or mixtures of toxic sub24 stances in eligible products.’’.
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1 CHAPTER 2—PUBLIC RIGHT TO KNOW

2 ABOUT TOXIC CHEMICAL USE

3 SEC. 2431. DISCLOSURE OF TOXIC CHEMICAL USE BY COM4 PARABLE FACILITIES.

5 Section 313(b)(1)(B) of the Emergency Planning and

6 Community Right-To-Know Act of 1986 (42 U.S.C.

7 11023(b)(1)(B)) is amended—

8 (1) by striking ‘‘(B) The Administrator’’ and

9 inserting the following:

10 ‘‘(B) MODIFICATIONS TO COVERED FACILI11 TIES.—

12 ‘‘(i) MODIFICATION BY THE ADMINIS13 TRATOR.—The Administrator’’; and

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

15 ‘‘(ii) MODIFICATIONS BEGINNING

16 WITH 2002 REPORTING YEAR.—Effective

17 beginning with the 2002 reporting year,

18 any facility identified by the Standard In19 dustrial Classification Codes specified in

20 the proposed rule entitled ‘Addition of Fa21 cilities in Certain Industry Sectors; Toxic

22 Chemical Release Reporting; Community

23 Right-to-Know, Part II’ (61 Fed. Reg.

24 33588 (June 27, 1996)) shall be subject to

25 the requirements of this section.
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1 ‘‘(iii) REGULATIONS TO ADD ADDI2 TIONAL CATEGORIES OF FACILITIES.—

3 ‘‘(I) IN GENERAL.—Not later

4 than 2 years after the date of enact5 ment of this clause, subject to sub6 clause (II), the Administrator shall

7 promulgate final regulations to re8 quire compliance with this section by

9 all additional categories of facilities

10 that use or release toxic chemicals in

11 volumes similar to the volumes used

12 or released by facilities that are cov13 ered by this section as of the date of

14 enactment of this clause.

15 ‘‘(II) INAPPLICABILITY TO

16 FARMS.—Subclause (I) shall not apply

17 to any farm.’’.

18 SEC. 2432. DISCLOSURE OF TOXIC CHEMICAL USE.

19 (a) IN GENERAL.—Section 313 of the Emergency

20 Planning and Community Right-To-Know Act of 1986 (42

21 U.S.C. 11023) is amended—

22 (1) in the second sentence of subsection (a), by

23 striking ‘‘releases’’ and inserting ‘‘toxic chemical

24 uses and releases’’;

25 (2) in subsection (g)(1)(C)—
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1 (A) by inserting ‘‘for the preceding cal2 endar year’’ after ‘‘items of information’’;

3 (B) in clause (ii), by striking ‘‘the pre4 ceding calendar year’’ and inserting ‘‘the cal5 endar year’’; and

6 (C) by adding at the end the following:

7 ‘‘(v)(I) The number of employees, including

8 contractors, at the facility.

9 ‘‘(II) The number of employees, including con10 tractors, at the facility that were exposed to the

11 toxic chemical.

12 ‘‘(III) An estimate of the quantity and level of

13 occupational exposures to the toxic chemical.

14 ‘‘(vi)(I) The following materials accounting in15 formation:

16 ‘‘(aa) A description of the uses of the toxic

17 chemical at the facility.

18 ‘‘(bb) The starting inventory of the toxic

19 chemical at the facility.

20 ‘‘(cc) The quantity of the toxic chemical

21 produced at the facility.

22 ‘‘(dd) The quantity of the toxic chemical

23 transported into the facility and the mode of

24 transportation.
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1 ‘‘(ee) The quantity of the toxic chemical

2 consumed at the facility.

3 ‘‘(ff) The quantity of the toxic chemical

4 transported out of the facility as products or in

5 products, and the quantity intended for—

6 ‘‘(AA) industrial use;

7 ‘‘(BB) commercial use;

8 ‘‘(CC) consumer use; and

9 ‘‘(DD) any additional category of use

10 that the Administrator may designate.

11 ‘‘(gg) The quantity of the toxic chemical

12 entering any waste stream (or otherwise re13 leased into the environment) before recycling,

14 treatment, or disposal.

15 ‘‘(hh) The ending inventory of the toxic

16 chemical at the facility.

17 ‘‘(ii) The quantity of the toxic chemical re18 cycled at the facility that is subsequently used

19 at the facility.

20 ‘‘(jj) The quantity of the toxic chemical

21 used, which shall be calculated with respect to

22 a toxic chemical by adding the quantities re23 ported under items (bb), (cc), (dd), and (ii)

24 with respect to the toxic chemical and sub-
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1 tracting the quantity reported under subclause

2 (hh) with respect to the toxic chemical.

3 ‘‘(II) Each quantity reported under this clause

4 shall be complete and verifiable by computations

5 using conventional materials accounting practices.

6 ‘‘(III) If the sum of the quantities reported

7 under items (bb), (cc), (dd), and (ii) of subclause (I)

8 does not equal the sum of the quantities reported

9 under subclauses (ee), (ff), (gg), and (hh) of that

10 subclause, the form shall provide an explanation of

11 the difference in the sums.

12 ‘‘(vii) The quantity of the reduction, from the

13 year prior to the preceding calendar year, in the

14 quantity of the toxic chemical entering any waste

15 stream (or otherwise released into the environment)

16 before recycling, treatment, or disposal (as reported

17 under section 6607(b)(1) of the Pollution Prevention

18 Act of 1990 (42 U.S.C. 13106(b)(1)), as a result

19 of—

20 ‘‘(I) equipment or technology modifica21 tions;

22 ‘‘(II) process or procedure modifications;

23 ‘‘(III) reformulation or redesign of prod24 ucts;

25 ‘‘(IV) substitution of raw materials; and
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1 ‘‘(V) improvements in housekeeping, main2 tenance, training, or inventory control.

3 ‘‘(viii) The quantity of the reduction, from the

4 year prior to the preceding calendar year, in the

5 quantity of the toxic chemical used as determined

6 under clause (vi)(I)(jj) as a result of all activities

7 specified in clause (vii).’’; and

8 (3) in the second sentence of subsection (h), by

9 inserting ‘‘uses of toxic chemicals at covered facili10 ties and’’ after ‘‘inform persons about’’.

11 (b) REGULATIONS.—Not later than 2 years after the

12 date of enactment of this Act, the Administrator of the

13 Environmental Protection Agency shall promulgate regu14 lations concerning the information to be provided under

15 section 313(g)(1)(C)(v) of the Emergency Planning and

16 Community Right-To-Know Act of 1986 (42 U.S.C.

17 11023(g)(1)(C)(v)).

18 SEC. 2433. STREAMLINED DATA COLLECTION AND DISSEMI19 NATION.

20 Section 313 of the Emergency Planning and Commu21 nity Right-To-Know Act of 1986 (42 U.S.C. 11023) is

22 amended by adding at the end the following:

23 ‘‘(m) STREAMLINED DATA COLLECTION AND DIS24 SEMINATION.—
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1 ‘‘(1) IN GENERAL.—To enhance public access

2 and use of information resources, to facilitate com3 pliance with reporting requirements, and to promote

4 multimedia permitting, reporting, and pollution pre5 vention, the Administrator shall, not later than 3

6 years after the date of enactment of this

7 subsection—

8 ‘‘(A) establish standard data formats for

9 management of information collected under this

10 title and other Federal environmental laws;

11 ‘‘(B) integrate information collected under

12 this title and other Federal environmental laws,

13 using—

14 ‘‘(i) common company, facility, indus15 try, geographic, and chemical identifiers;

16 and

17 ‘‘(ii) other identifiers as the Adminis18 trator determines to be appropriate;

19 ‘‘(C) establish a system for indexing, locat20 ing, and obtaining agency-held information

21 about parent companies, facilities, industries,

22 chemicals, geographic locations, ecological indi23 cators, and the regulatory status of chemicals

24 and entities subject to regulation under this

25 title and other Federal environmental laws;
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1 ‘‘(D) consolidate all annual reporting re2 quirements, under this title and other Federal

3 environmental laws, for small business concerns

4 (as defined in section 3 of the Small Business

5 Act (15 U.S.C. 632)) in a manner that allows

6 reporting to 1 point of contact using 1 form or

7 electronic reporting system; and

8 ‘‘(E) provide members of the public 1 point

9 of contact for access to all publicly available in10 formation collected by the Administrator for

11 any 1 regulated entity.

12 ‘‘(2) CONSOLIDATION.—Not later than 5 years

13 after the date of enactment of this subsection, the

14 Administrator shall consolidate all annual reporting

15 under this title and other Federal environmental

16 laws, for each entity subject to such reporting, in a

17 manner that allows reporting to 1 point of contact

18 using 1 form or electronic reporting system.

19 ‘‘(3) UNDERSTANDABLE LANGUAGE.—In im20 proving the means by which the Administrator pro21 vides information to the public and requires informa22 tion be reported by regulated entities, as required by

23 paragraphs (1) and (2), the Administrator shall use

24 language and methods of communication that the

25 Administrator finds to be clear and understandable
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1 by a member of the public of average intelligence,

2 education, and experience.’’.

3 SEC. 2434. TRADE SECRET PROTECTION.

4 Section 322 of the Emergency Planning and Commu5 nity Right-To-Know Act of 1986 (42 U.S.C. 11042) is

6 amended—

7 (1) in subsection (a)(1), by adding at the end

8 the following:

9 ‘‘(C) WITHHOLDING OF MATERIALS AC10 COUNTING INFORMATION.—

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

12 (ii), any person required to submit mate13 rials accounting information under section

14 313(g)(1)(C)(vi) may withhold any item of

15 that information (as determined under reg16 ulations promulgated by the Administrator

17 under subsection (c)) if the person com18 plies with paragraph (2) with respect to

19 the information to be withheld.

20 ‘‘(ii) LIMITATION.—Clause (i) does

21 not provide authority to withhold any in22 formation covered by the Pollution Preven23 tion Act of 1990 (42 U.S.C. 13101 et

24 seq.).’’;
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1 (2) in subsection (b)(4), by inserting ‘‘or other

2 information withheld’’ after ‘‘The chemical identity’’;

3 (3) in subsection (d)—

4 (A) in the first sentence of paragraph (1),

5 by inserting ‘‘, or other information withheld

6 under subsection (a)(1),’’ after ‘‘toxic chem7 ical’’; and

8 (B) in paragraphs (2) through (4), by in9 serting ‘‘or other information withheld’’ after

10 ‘‘chemical identity’’ each place it appears;

11 (4) in subsection (f), by inserting ‘‘or other in12 formation withheld under subsection (a)(1)’’ after

13 ‘‘chemical identity’’; and

14 (5) in subsection (h)—

15 (A) in paragraph (1), by inserting ‘‘, or

16 other information withheld under subsection

17 (a)(1),’’ before ‘‘is claimed as’’; and

18 (B) in paragraph (2), by inserting ‘‘, or

19 other information withheld under subsection

20 (a)(1),’’ after ‘‘identity of a toxic chemical’’.
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1 Subtitle F—Promoting Responsible

2 Fatherhood

3 CHAPTER 1—BLOCK GRANTS

4 SEC. 2501. BLOCK GRANTS TO STATES TO ENCOURAGE

5 MEDIA CAMPAIGNS.

6 (a) IN GENERAL.—Part D of title IV of the Social

7 Security Act (42 U.S.C. 651 et seq.) is amended by adding

8 at the end the following:

9 ‘‘SEC. 469C. BLOCK GRANTS TO STATES FOR MEDIA CAM10 PAIGNS PROMOTING RESPONSIBLE FATHER11 HOOD.

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

13 ‘‘(1) BROADCAST ADVERTISEMENT.—The term

14 ‘broadcast advertisement’ means a communication

15 intended to be aired by a television or radio broad16 cast station, including a communication intended to

17 be transmitted through a cable channel.

18 ‘‘(2) CHILD AT RISK.—The term ‘child at risk’

19 means each young child whose family income does

20 not exceed the poverty line.

21 ‘‘(3) POVERTY LINE.—The term ‘poverty line’

22 has the meaning given such term in section 673(2)

23 of the Omnibus Budget Reconciliation Act of 1981

24 (including any revision required by such section)

25 that is applicable to a family of the size involved.
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1 ‘‘(4) PRINTED OR OTHER ADVERTISEMENT.—

2 The term ‘printed or other advertisement’ includes

3 any communication intended to be distributed

4 through a newspaper, magazine, outdoor advertising

5 facility, mailing, or any other type of general public

6 advertising, but does not include any broadcast ad7 vertisement.

8 ‘‘(5) STATE.—The term ‘State’ means each of

9 the 50 States, the District of Columbia, the Com10 monwealth of Puerto Rico, the United States Virgin

11 Islands, Guam, American Samoa, and the Common12 wealth of the Northern Mariana Islands.

13 ‘‘(6) YOUNG CHILD.—The term ‘young child’

14 means an individual under age 5.

15 ‘‘(b) STATE CERTIFICATIONS.—Not later than Octo16 ber 1 of each fiscal year for which a State desires to re17 ceive an allotment under this section, the chief executive

18 officer of the State shall submit to the Secretary a certifi19 cation that the State will—

20 ‘‘(1) use such funds to promote the formation

21 and maintenance of married 2-parent families,

22 strengthen fragile families, and promote responsible

23 fatherhood through media campaigns conducted in

24 accordance with the requirements of subsection (d);
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1 ‘‘(2) return any unused funds to the Secretary

2 in accordance with the reconciliation process under

3 subsection (e); and

4 ‘‘(3) comply with the reporting requirements

5 under subsection (f).

6 ‘‘(c) PAYMENTS TO STATES.—For each of fiscal years

7 2002 through 2006, the Secretary shall pay to each State

8 that submits a certification under subsection (b), from any

9 funds appropriated under subsection (h), for the fiscal

10 year an amount equal to the amount of the allotment de11 termined for the fiscal year under subsection (g).

12 ‘‘(d) ESTABLISHMENT OF MEDIA CAMPAIGNS.—Each

13 State receiving an allotment under this section for a fiscal

14 year shall use the allotment to conduct media campaigns

15 as follows:

16 ‘‘(1) CONDUCT OF MEDIA CAMPAIGNS.—

17 ‘‘(A) RADIO AND TELEVISION MEDIA CAM18 PAIGNS.—

19 ‘‘(i) PRODUCTION OF BROADCAST AD20 VERTISEMENTS.—At the option of the

21 State, to produce broadcast advertisements

22 that promote the formation and mainte23 nance of married 2-parent families,

24 strengthen fragile families, and promote

25 responsible fatherhood.
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1 ‘‘(ii) AIR TIME CHALLENGE PRO2 GRAM.—At the option of the State, to es3 tablish an air time challenge program

4 under which the State may spend amounts

5 allotted under this section to purchase time

6 from a broadcast station to air a broadcast

7 advertisement produced under subpara8 graph (A), but only if the State obtains an

9 amount of time of the same class and dur10 ing a comparable period to air the adver11 tisement using non-Federal contributions.

12 ‘‘(B) OTHER MEDIA CAMPAIGNS.—At the

13 option of the State, to conduct a media cam14 paign that consists of the production and dis15 tribution of printed or other advertisements

16 that promote the formation and maintenance of

17 married 2-parent families, strengthen fragile

18 families, and promote responsible fatherhood.

19 ‘‘(2) ADMINISTRATION OF MEDIA CAMPAIGNS.—

20 A State may administer media campaigns funded

21 under this section directly or through grants, con22 tracts, or cooperative agreements with public agen23 cies, local governments, or private entities, including

24 charitable and religious organizations.
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1 ‘‘(3) CONSULTATION WITH DOMESTIC VIO2 LENCE ASSISTANCE CENTERS.—In developing broad3 cast and printed advertisements to be used in the

4 media campaigns conducted under paragraph (1),

5 the State or other entity administering the campaign

6 shall consult with representatives of State and local

7 domestic violence centers.

8 ‘‘(4) NON-FEDERAL CONTRIBUTIONS.—In this

9 subsection, the term ‘non-Federal contributions’ in10 cludes contributions by the State and by public and

11 private entities. Such contributions may be in cash

12 or in kind. Such term does not include any amounts

13 provided by the Federal Government, or services as14 sisted or subsidized to any significant extent by the

15 Federal Government, or any amount expended by a

16 State before October 1, 2002.

17 ‘‘(e) RECONCILIATION PROCESS.—

18 ‘‘(1) 3-YEAR AVAILABILITY OF AMOUNTS AL19 LOTTED.—Each State that receives an allotment

20 under this section shall return to the Secretary any

21 unused portion of the amount allotted to a State

22 under this section for a fiscal year not later than the

23 last day of the second succeeding fiscal year together

24 with any earnings on such unused portion.
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1 ‘‘(2) PROCEDURE FOR REDISTRIBUTION OF UN2 USED ALLOTMENTS.—The Secretary shall establish

3 an appropriate procedure for redistributing to States

4 that have expended the entire amount allotted under

5 this section any amount that is—

6 ‘‘(A) returned to the Secretary by States

7 under paragraph (1); or

8 ‘‘(B) not allotted to a State under this sec9 tion because the State did not submit a certifi10 cation under subsection (b) by October 1 of a

11 fiscal year.

12 ‘‘(f) REPORTING REQUIREMENTS.—

13 ‘‘(1) MONITORING AND EVALUATION.—Each

14 State receiving an allotment under this section for a

15 fiscal year shall monitor and evaluate the media

16 campaigns conducted using funds made available

17 under this section in such manner as the Secretary,

18 in consultation with the States, determines appro19 priate.

20 ‘‘(2) ANNUAL REPORTS.—Not less frequently

21 than annually, each State receiving an allotment

22 under this section for a fiscal year shall submit to

23 the Secretary reports on the media campaigns con24 ducted under this section at such time, in such man-
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1 ner, and containing such information as the Sec2 retary may require.

3 ‘‘(g) AMOUNT OF ALLOTMENTS.—

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), of the amount appropriated for the pur6 pose of making allotments under this section for a

7 fiscal year, the Secretary shall allot to each State

8 that submits a certification under subsection (b) for

9 the fiscal year an amount equal to the sum of—

10 ‘‘(A) the amount that bears the same ratio

11 to 50 percent of such funds as the number of

12 young children in the State (as determined by

13 the Secretary based on the most recent March

14 supplement to the Current Population Survey

15 of the Bureau of the Census before the begin16 ning of the calendar year in which such fiscal

17 year begins) as bears to the number of such

18 children in all States; and

19 ‘‘(B) the amount that bears the same ratio

20 to 50 percent of such funds as the number of

21 children at risk in the State (as determined by

22 the Secretary based on the most recent March

23 supplement to the Current Population Survey

24 of the Bureau of the Census before the begin25 ning of the calendar year in which such fiscal
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1 year begins) bears to the number of such chil2 dren in all States.

3 ‘‘(2) MINIMUM ALLOTMENTS.—No allotment

4 for a fiscal year under this section shall be less

5 than—

6 ‘‘(A) in the case of a State other than the

7 Commonwealth of Puerto Rico, the United

8 States Virgin Islands, Guam, American Samoa,

9 and the Commonwealth of the Northern Mar10 iana Islands, 1 percent of the amount appro11 priated for the fiscal year under subsection (h);

12 and

13 ‘‘(B) in the case of the Commonwealth of

14 Puerto Rico, the United States Virgin Islands,

15 Guam, American Samoa, and the Common16 wealth of the Northern Mariana Islands, 0.5

17 percent of such amount.

18 ‘‘(3) PRO RATA REDUCTIONS.—The Secretary

19 shall make such pro rata reductions to the allot20 ments determined under paragraph (1) as are nec21 essary to comply with the requirements of paragraph

22 (2).

23 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

24 is authorized to be appropriated $25,000,000 for each of
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1 fiscal years 2002 through 2006 for purposes of making

2 allotments to States under this section.’’.

3 (b) EVALUATION.—

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

5 Human Services shall conduct an evaluation of the

6 impact of the media campaigns funded under section

7 469C of the Social Security Act, as added by sub8 section (a).

9 (2) REPORT.—Not later than December 31,

10 2004, the Secretary of Health and Human Services

11 shall report to Congress the results of the evaluation

12 under paragraph (1).

13 (3) AUTHORIZATION OF APPROPRIATIONS.—

14 There is authorized to be appropriated $1,000,000

15 for fiscal year 2002 for purposes of conducting the

16 evaluation required under this subsection, to remain

17 available until expended.

18 SEC. 2502. RESPONSIBLE FATHERHOOD BLOCK GRANT.

19 (a) IN GENERAL.—Part D of title IV of the Social

20 Security Act (42 U.S.C. 651 et seq.), as amended by sec21 tion 2501, is amended by adding at the end the following:

22 ‘‘SEC. 469D. RESPONSIBLE FATHERHOOD BLOCK GRANT.

23 ‘‘(a) DEFINITIONS.—In this section:
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1 ‘‘(1) CHILD AT RISK.—The term ‘child at risk’

2 has the meaning given such term in section

3 469C(a)(2).

4 ‘‘(2) POVERTY LINE.—The term ‘poverty line’

5 has the meaning given such term in section

6 469C(a)(3).

7 ‘‘(3) STATE.—The term ‘State’ has the mean8 ing given such term in section 469C(a)(5).

9 ‘‘(4) YOUNG CHILD.—The term ‘young child’

10 has the meaning given such term in section

11 469C(a)(6).

12 ‘‘(b) STATE CERTIFICATIONS.—Not later than Octo13 ber 1 of each fiscal year for which a State desires to re14 ceive an allotment under this section, the chief executive

15 officer of the State shall submit to the Secretary a certifi16 cation that the State will—

17 ‘‘(1) comply with the matching requirements

18 under subsection (c)(2);

19 ‘‘(2) use such funds to promote responsible fa20 therhood in accordance with the requirements of

21 subsection (d);

22 ‘‘(3) use such funds to promote or sustain mar23 riage in accordance with subparagraph (A) or (B) of

24 subsection (d)(2);
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1 ‘‘(4) return any unused funds to the Secretary

2 in accordance with the reconciliation process under

3 subsection (e); and

4 ‘‘(5) comply with the reporting requirements

5 under subsection (f).

6 ‘‘(c) PAYMENTS TO STATES.—

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

8 for each of fiscal years 2002 through 2006, the Sec9 retary shall pay to each State that submits a certifi10 cation described in subsection (b), from any funds

11 appropriated under subsection (h), for the fiscal year

12 an amount equal to the amount of the allotment de13 termined under subsection (g).

14 ‘‘(2) MATCHING REQUIREMENT.—The Sec15 retary may not make a payment to a State under

16 paragraph (1) unless the State agrees that, with re17 spect to the costs to be incurred by the State in sup18 porting the programs described in subsection (d),

19 the State will make available non-Federal contribu20 tions in an amount equal to 25 percent of the

21 amount of Federal funds paid to the State under

22 such clause.

23 ‘‘(3) NON-FEDERAL CONTRIBUTIONS.—In this

24 subsection, the term ‘non-Federal contributions’ in25 cludes contributions by the State and by public and
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1 private entities. Such contributions may be in cash

2 or in kind. Such term does not include any amounts

3 provided by the Federal Government, or services as4 sisted or subsidized to any significant extent by the

5 Federal Government or any amount expended by a

6 State before October 1, 2002.

7 ‘‘(d) RESPONSIBLE FATHERHOOD PROGRAMS.—

8 ‘‘(1) SUPPORT OF PROGRAMS.—A State shall

9 use the allotments received under this section to

10 support programs described in paragraph (2) di11 rectly or through a grant, contract, or cooperative

12 agreement with any public agency, local government,

13 or private entity (including any charitable or reli14 gious organization) with experience in administering

15 such a program.

16 ‘‘(2) PROGRAMS DESCRIBED.—Responsible Fa17 therhood programs include programs that—

18 ‘‘(A) promote marriage through such ac19 tivities as counseling, mentoring, disseminating

20 information about the benefits of marriage and

21 2-parent involvement for children, enhancing re22 lationship skills, teaching on how to control ag23 gressive behavior, and disseminating informa24 tion on the causes of domestic violence and

25 child abuse;
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1 ‘‘(B) sustain marriages through marriage

2 preparation programs, premarital counseling,

3 marital inventories, skills-based marriage edu4 cation, financial planning seminars, programs

5 to help parents improve their economic status,

6 and divorce education and reduction programs,

7 including mediation and counseling;

8 ‘‘(C) promote responsible parenting

9 through such activities as counseling, men10 toring, disseminating information about good

11 parenting practices, skills-based parenting edu12 cation, encouraging child support payments,

13 and other methods; and

14 ‘‘(D) help fathers and their families avoid

15 or leave cash welfare and improve their eco16 nomic status by providing such activities as

17 work first services, job search, job training,

18 subsidized employment, job retention, job en19 hancement, and encouraging education, includ20 ing career-advancing education, dissemination

21 of employment materials, coordination with ex22 isting employment services such as Welfare to

23 Work and referrals to local employment train24 ing initiatives, and other methods.
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1 ‘‘(3) TARGETED LOW-INCOME PARTICIPANTS.—

2 Not less than 50 percent of the participants in each

3 program supported under paragraph (1) shall be—

4 ‘‘(A) parents of a child who is, or within

5 the past 24 months has been, a recipient of as6 sistance or services under a State program

7 funded under this part; or

8 ‘‘(B) parents, including an expectant par9 ent or a married parent, whose income (after

10 adjustment for court-ordered child support paid

11 or received) does not exceed 150 percent of the

12 poverty line.

13 ‘‘(4) CONSULTATION WITH DOMESTIC VIO14 LENCE ASSISTANCE CENTERS.—Each State or entity

15 administering a program supported under paragraph

16 (1) shall consult with representatives of State and

17 local domestic violence centers.

18 ‘‘(5) SUPPLEMENT NOT SUPPLANT.—Amounts

19 allotted to a State under this section shall be used

20 to supplement and not supplant other Federal,

21 State, or local funds provided to the State under this

22 part or any other provision of law that are used to

23 support programs and activities similar to the a re24 sponsible fatherhood program described in para25 graph (2).
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1 ‘‘(6) RESTRICTIONS ON USE.—No amount allot2 ted under this section may be used for court pro3 ceedings on matters of child visitation or child cus4 tody, or for legislative advocacy.

5 ‘‘(e) RECONCILIATION PROCESS.—

6 ‘‘(1) 3-YEAR AVAILABILITY OF AMOUNTS AL7 LOTTED.—Each State that receives an allotment

8 under this section shall return to the Secretary any

9 unused portion of the amount allotted to a State

10 under this section for a fiscal year not later than the

11 last day of the second succeeding fiscal year, to12 gether with any earnings on such unused portion.

13 ‘‘(2) PROCEDURE FOR REDISTRIBUTION OF UN14 USED ALLOTMENTS.—The Secretary shall establish

15 an appropriate procedure for redistributing to States

16 that have expended the entire amount allotted under

17 this section any amount that is—

18 ‘‘(A) returned to the Secretary by States

19 under paragraph (1); or

20 ‘‘(B) not allotted to a State under this sec21 tion because the State did not submit a certifi22 cation under subsection (b) by October 1 of a

23 fiscal year.

24 ‘‘(f) REPORTING REQUIREMENTS.—
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1 ‘‘(1) MONITORING AND EVALUATION.—Each

2 State receiving an allotment under this section shall

3 monitor and evaluate the programs supported using

4 funds made available under this section in such

5 manner as the Secretary, in consultation with the

6 States, determines appropriate.

7 ‘‘(2) ANNUAL REPORTS.—Not less frequently

8 than annually, each State receiving an allotment

9 under this section for a fiscal year shall submit to

10 the Secretary reports on the programs supported

11 under this section at such time, in such manner, and

12 containing such information as the Secretary may

13 reasonably require.

14 ‘‘(g) AMOUNT OF ALLOTMENTS.—

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), of the amount appropriated for the pur17 pose of making allotments under this section for a

18 fiscal year the Secretary shall allot to each State

19 that submits a certification under subsection (b) for

20 that fiscal year an amount equal to the sum of—

21 ‘‘(A) the amount that bears the same ratio

22 to 50 percent of such funds as the number of

23 young children in the State (as determined by

24 the Secretary based on the most recent March

25 supplement to the Current Population Survey
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1 of the Bureau of the Census before the begin2 ning of the calendar year in which such fiscal

3 year begins) as bears to the number of such

4 children in all States; and

5 ‘‘(B) the amount that bears the same ratio

6 to 50 percent of such funds as the number of

7 children at risk in the State (as determined by

8 the Secretary based on the most recent March

9 supplement to the Current Population Survey

10 of the Bureau of the Census before the begin11 ning of the calendar year in which such fiscal

12 year begins) bears to the number of such chil13 dren in all States.

14 ‘‘(2) MINIMUM ALLOTMENTS.—No allotment

15 for a fiscal year under this section shall be less

16 than—

17 ‘‘(A) in the case of a State other than the

18 Commonwealth of Puerto Rico, the United

19 States Virgin Islands, Guam, American Samoa,

20 and the Commonwealth of the Northern Mar21 iana Islands, 1 percent of the amount appro22 priated for the fiscal year under subsection (h);

23 and

24 ‘‘(B) in the case of the Commonwealth of

25 Puerto Rico, the United States Virgin Islands,
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1 Guam, American Samoa, and the Common2 wealth of the Northern Mariana Islands, 0.5

3 percent of such amount.

4 ‘‘(3) PRO RATA REDUCTIONS.—The Secretary

5 shall make such pro rata reductions to the allot6 ments determined under paragraph (1) as are nec7 essary to comply with the requirements of paragraph

8 (2).

9 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

10 is authorized to be appropriated $50,000,000 for each of

11 fiscal years 2002 through 2006 for purposes of making

12 allotments to States under this section.’’.

13 (b) EVALUATION AND REPORT.—

14 (1) EVALUATION.—

15 (A) IN GENERAL.—The Secretary of

16 Health and Human Services (in this subsection

17 referred to as the ‘‘Secretary’’), in consultation

18 with the Secretary of Labor, shall, directly or

19 through a grant, contract, or interagency agree20 ment, conduct an evaluation of the projects

21 funded under section 469D of the Social Secu22 rity Act (as added by subsection (a)).

23 (B) OUTCOMES ASSESSMENT.—The eval24 uation conducted under subparagraph (A) shall

25 assess, among other outcomes selected by the
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1 Secretary, effects of the projects on marriage,

2 parenting, employment, earnings, payment of

3 child support, and incidence of domestic vio4 lence and child abuse.

5 (C) PROJECT SELECTION.—In selecting

6 projects for the evaluation, the Secretary should

7 include projects that are most likely to further

8 the purposes of this section.

9 (D) RANDOM ASSIGNMENT.—In conducting

10 the evaluation, random assignment should be

11 used wherever possible.

12 (2) REPORT.—Not later than December 31,

13 2004, the Secretary shall submit to Congress a re14 port on the results of the evaluation conducted

15 under paragraph (1).

16 (3) AUTHORIZATION OF APPROPRIATIONS.—

17 There is authorized to be appropriated $1,000,000

18 for each of fiscal years 2002 through 2006 to carry

19 out this subsection.

20 CHAPTER 2—NATIONAL CLEARINGHOUSE

21 SEC. 2511. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE

22 FATHERHOOD PROGRAMS.

23 Part D of title IV of the Social Security Act (42

24 U.S.C. 651), as amended by section 2502, is amended by

25 adding at the end the following:
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1 ‘‘SEC. 469E. MEDIA CAMPAIGN NATIONAL CLEARINGHOUSE

2 FOR RESPONSIBLE FATHERHOOD.

3 ‘‘(a) MEDIA CAMPAIGN AND NATIONAL CLEARING4 HOUSE.—

5 ‘‘(1) IN GENERAL.—From any funds appro6 priated under subsection (c), the Secretary shall con7 tract with a nationally recognized, nonprofit father8 hood promotion organization described in subsection

9 (b) to—

10 ‘‘(A) develop, promote, and distribute to

11 interested States, local governments, public

12 agencies, and private entities a media campaign

13 that encourages the appropriate involvement of

14 both parents in the life of any child of the par15 ents, with a priority for programs that specifi16 cally address the issue of responsible father17 hood; and

18 ‘‘(B) develop a national clearinghouse to

19 assist States and communities in efforts to pro20 mote and support marriage and responsible fa21 therhood by collecting, evaluating, and making

22 available (through the Internet and by other

23 means) to other States information regarding

24 the media campaigns established under section

25 469C.
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1 ‘‘(2) COORDINATION WITH DOMESTIC VIOLENCE

2 PROGRAMS.—The Secretary shall ensure that the na3 tionally recognized nonprofit fatherhood promotion

4 organization with a contract under paragraph (1)

5 coordinates the media campaign developed under

6 subparagraph (A) of such paragraph and the na7 tional clearinghouse developed under subparagraph

8 (B) of such paragraph with a national, State, or

9 local domestic violence program.

10 ‘‘(b) NATIONALLY RECOGNIZED, NONPROFIT FA11 THERHOOD PROMOTION ORGANIZATION DESCRIBED.—

12 The nationally recognized, nonprofit fatherhood promotion

13 organization described in this subsection is such an orga14 nization that has at least 4 years of experience in—

15 ‘‘(1) designing and disseminating a national

16 public education campaign, including the production

17 and successful placement of television, radio, and

18 print public service announcements that promote the

19 importance of responsible fatherhood; and

20 ‘‘(2) providing consultation and training to

21 community-based organizations interested in imple22 menting fatherhood outreach, support, or skill devel23 opment programs with an emphasis on promoting

24 married fatherhood as the ideal.
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1 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There

2 is authorized to be appropriated $2,000,000 for each of

3 fiscal years 2002 through 2006 to carry out this section.’’.

4 TITLE III—HEAD START AND

5 CHILD CARE

6 Subtitle A—Infants and Toddlers

7 SEC. 3001. RESERVATION OF HEAD START ACT FUNDS FOR

8 INFANTS AND TODDLERS.

9 Section 640(a)(6) of the Head Start Act (42 U.S.C.

10 9835(a)(6)) is amended—

11 (1) by striking subparagraph (A) and inserting

12 the following:

13 ‘‘(A) Except as provided in subparagraph (B), from

14 amounts reserved and allotted pursuant to paragraphs (2)

15 and (4), the Secretary shall use, for grants for programs

16 described in section 645A(a), a portion of the combined

17 total of such amounts equal to—

18 ‘‘(i) 10 percent of the funds appropriated pur19 suant to section 639(a) for fiscal year 2002;

20 ‘‘(ii) 11 percent of such funds for fiscal year

21 2003;

22 ‘‘(iii) 12 percent of such funds for fiscal year

23 2004;

24 ‘‘(iv) 13 percent of such funds for fiscal year

25 2005;
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1 ‘‘(v) 15 percent of such funds for fiscal year

2 2006;

3 ‘‘(vi) 20 percent of such funds for fiscal year

4 2007;

5 ‘‘(vii) 25 percent of such funds for fiscal year

6 2008;

7 ‘‘(viii) 30 percent of such funds for fiscal 2009;

8 ‘‘(ix) 35 percent of such funds for fiscal 2010;

9 and

10 ‘‘(x) 40 percent of such funds for fiscal 2011.’’;

11 and

12 (2) in subparagraph (B)—

13 (A) by striking clause (i); and

14 (B) by redesignating clauses (ii) and (iii)

15 as clauses (i) and (ii), respectively.

16 SEC. 3002. RESERVATION OF CHILD CARE AND DEVELOP17 MENT BLOCK GRANT FUNDS FOR INFANTS

18 AND TODDLERS.

19 Section 658G of the Child Care and Development

20 Block Grant Act of 1990 (42 U.S.C. 9858e) is amended—

21 (1) by striking the heading and inserting the

22 following:
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1 ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF

2 CHILD CARE AND ACTIVITIES FOR INFANTS

3 AND TODDLERS.’’;

4 (2) by inserting before ‘‘A State’’ the following:

5 ‘‘(a) ACTIVITIES TO IMPROVE THE QUALITY OF

6 CHILD CARE.—’’; and

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

8 ‘‘(b) ACTIVITIES FOR INFANTS AND TODDLERS.—A

9 State that receives funds to carry out this subchapter for

10 a fiscal year shall use, for activities that are designed to

11 improve and expand child care for children from birth

12 through age 3, not less than—

13 ‘‘(1) 5 percent of such funds for fiscal year

14 2002;

15 ‘‘(2) 6 percent of such funds for fiscal year

16 2003;

17 ‘‘(3) 7 percent of such funds for fiscal year

18 2004;

19 ‘‘(4) 8 percent of such funds for fiscal year

20 2005;

21 ‘‘(5) 9 percent of such funds for fiscal year

22 2006; and

23 ‘‘(6) 10 percent of such funds for fiscal year

24 2007.’’.
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1 Subtitle B—Child Care Access

2 CHAPTER 1—IMPROVING ACCESS TO

3 CHILD CARE

4 SEC. 3101. PAYMENT RATES.

5 Section 658E(c)(4) of the Child Care and Develop6 ment Block Grant Act of 1990 (42 U.S.C. 9858c(c)(4))

7 is amended by striking subparagraph (A) and inserting

8 the following:

9 ‘‘(A) IN GENERAL.—The State plan shall

10 provide an assurance that payment rates for the

11 provision of child care services for which assist12 ance is provided under this subchapter—

13 ‘‘(i) are set at not less than the rate

14 at the 100th percentile of the market rate

15 for child care in the State, calculated as a

16 rate—

17 ‘‘(I) determined in accordance

18 with market surveys (that reflect vari19 ations in the cost of care by locality)

20 conducted by the State not less often

21 than once every 2 years; and

22 ‘‘(II) adjusted at intervals be23 tween such surveys to reflect increases

24 in the cost of living, in such manner

25 as the Secretary may specify;
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1 ‘‘(ii) are set at rates higher than the

2 rate at the 100th percentile of the market

3 rate for care of higher than average qual4 ity, such as care by accredited providers,

5 care that includes the provision of com6 prehensive services, care provided at un7 usual hours, care for children with special

8 needs, care for children from low-income

9 and rural communities, and care of a type

10 that is in short supply; and

11 ‘‘(iii) are set at rates that reflect vari12 ations in the cost of providing care for

13 children of different ages and different

14 types of care.’’.

15 CHAPTER 2—IMPROVEMENTS TO THE

16 CHILD CARE AND DEVELOPMENT

17 BLOCK GRANT PROGRAM

18 SEC. 3111. AUTHORIZATION OF APPROPRIATIONS.

19 (a) CHILD CARE AND DEVELOPMENT BLOCK GRANT

20 ACT OF 1990.—Section 658B of the Child Care and De21 velopment Block Grant Act of 1990 (42 U.S.C. 9858), is

22 amended to read as follows:

23 ‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

24 ‘‘There are authorized to be appropriated to carry out

25 this subchapter—
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1 ‘‘(1) $2,936,400,000 for fiscal year 2002;

2 ‘‘(2) $4,104,300,000 for fiscal year 2003;

3 ‘‘(3) $5,292,400,000 for fiscal year 2004;

4 ‘‘(4) $6,524,900,000 for fiscal year 2005;

5 ‘‘(5) $7,827,700,000 for fiscal year 2006;

6 ‘‘(6) $9,092,800,000 for fiscal year 2007;

7 ‘‘(7) $10,524,100,000 for fiscal year 2008;

8 ‘‘(8) $11,830,500,000 for fiscal year 2009;

9 ‘‘(9) $13,343,900,000 for fiscal year 2010; and

10 ‘‘(10) $14,991,200,000 for fiscal year 2011.’’.

11 (b) SOCIAL SECURITY ACT.—Section 418(a)(3) of

12 the Social Security Act (42 U.S.C. 618(a)(3)) is amended

13 by striking subparagraphs (A) through (F) and inserting

14 the following:

15 ‘‘(A) $3,989,100,000 for fiscal year 2002;

16 ‘‘(B) $5,575,600,000 for fiscal year 2003;

17 ‘‘(C) $7,189,800,000 for fiscal year 2004;

18 ‘‘(D) $8,864,100,000 for fiscal year 2005;

19 ‘‘(E) $10,634,000,000 for fiscal year 2006;

20 ‘‘(F) $12,352,500,000 for fiscal year 2007;

21 ‘‘(G) $14,297,000,000 for fiscal year 2008;

22 ‘‘(H) $16,071,800,000 for fiscal year

23 2009;

24 ‘‘(I) $18,127,600,000 for fiscal year 2010;

25 and
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1 ‘‘(J) $20,365,600,000 for fiscal year

2 2011.’’.

3 SEC. 3112. STATE PLAN REQUIREMENTS.

4 Section 658E(c)(2) of the Child Care and Develop5 ment Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2))

6 is amended—

7 (1) by striking subparagraph (D) and inserting

8 the following:

9 ‘‘(D) CONSUMER EDUCATION INFORMA10 TION.—Certify that the State will collect and

11 disseminate to parents of eligible children and

12 the general public, consumer education informa13 tion that will promote informed child care

14 choices, and describe how the State will inform

15 parents receiving assistance under a State pro16 gram funded under part A of title IV of the So17 cial Security Act (42 U.S.C. 601 et seq.) and

18 low-income parents about eligibility for assist19 ance under this subchapter.’’; and

20 (2) by adding at the end the following new sub21 paragraphs:

22 ‘‘(I) AVAILABILITY OF STAFF.—Describe

23 how the State will ensure that staff from the

24 lead agency described in section 658D will be

25 available, at the offices of the State program
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1 funded under part A of title IV of the Social

2 Security Act, to provide information about eligi3 bility for assistance under this subchapter.

4 ‘‘(J) ELIGIBILITY REDETERMINATION.—

5 Demonstrate that each child that receives as6 sistance under this subchapter in the State will

7 receive such assistance for not less than 1 year

8 before the State redetermines the eligibility of

9 the child under this subchapter.’’.

10 SEC. 3113. DEFINITIONS.

11 Section 658P(4)(C) of the Child Care and Develop12 ment Block Grant Act of 1990 (42 U.S.C. 9858n(4)(C))

13 is amended—

14 (1) in clause (i), by striking ‘‘or’’ at the end;

15 (2) in clause (ii), by striking the period and in16 serting ‘‘; or’’; and

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

18 ‘‘(iii) is a foster child.’’.
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1 Subtitle C—Child Care Quality

2 Improvement

3 CHAPTER 1—FOCUS ON COMMITTED AND

4 UNDERPAID STAFF FOR CHILDREN’S

5 SAKE

6 SEC. 3201. SHORT TITLE.

7 This Act may be cited as the ‘‘Focus On Committed

8 and Underpaid Staff for Children’s Sake Act’’ or as the

9 ‘‘FOCUS Act’’.

10 SEC. 3202. FINDINGS AND PURPOSE.

11 (a) FINDINGS.—Congress makes the following find12 ings:

13 (1) Research on early brain development and

14 early childhood demonstrates that the experiences

15 children have and the attachments children form

16 early in life have a decisive, long-lasting impact on

17 their later development and learning.

18 (2) High-quality, developmentally appropriate

19 child care beginning in early childhood and con20 tinuing through the years that children are in school

21 improves the scholastic success and educational at22 tainment of children, and the success and attain23 ment persist into adulthood.

24 (3) According to a growing body of research,

25 the single most important determinant of child care
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1 quality is the presence of consistent, sensitive, well2 trained, and well-compensated child care providers.

3 However, child care programs nationwide experience

4 high turnover in teaching staff, fueled by poor com5 pensation and few opportunities for advancement.

6 (4) The Department of Labor reports that, in

7 1999, the average wage for a child care provider was

8 $7.42 per hour, or $15,430 annually. For full-time,

9 full-year work, the average annual wage for a child

10 care provider was not much above the 1999 poverty

11 line of $13,423 for a family consisting of a parent

12 and 2 children. Family child care providers earned

13 even less. The median weekly wage of a family child

14 care provider in 1999 was $264, which equals an

15 annual wage of $13,728.

16 (5) Despite the important role child care pro17 viders may play in early child development and

18 learning, on average, a child care provider earns less

19 in a year than a bus driver ($26,460), barber

20 ($20,970), or janitor ($18,220).

21 (6) Employer-sponsored benefits are minimal

22 for most child care staff. Even for child care pro23 viders at child care centers, the availability of health

24 care coverage for staff remains woefully inadequate.
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1 (7) To offer compensation that would be suffi2 cient to attract and retain qualified child care pro3 viders, child care programs would have to charge

4 parents fees that many parents could not afford. For

5 programs that serve low-income children whose fami6 lies qualify for Federal and State child care sub7 sidies, the reimbursement rates set by the State

8 strongly influence the level of compensation that

9 staff receive. Current reimbursement rates for cen10 ter-based child care services and family child care

11 services are insufficient to recruit and retain quali12 fied child care providers and to ensure high-quality

13 services for children.

14 (8) Teachers leaving the profession are being

15 replaced by staff with less education and formal

16 training in early child development.

17 (9) As a result of low wages and limited bene18 fits, many child care providers do not work for long

19 periods in the child care field. Approximately 30 per20 cent of all teaching staff employed at child care cen21 ters leaves employment with a child care center each

22 year.

23 (10) Child care providers, as well as the chil24 dren, families, and businesses that depend upon the

25 providers, suffer the consequences of inadequate
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1 compensation. This is true, with few exceptions, for

2 providers in all types of programs, including sub3 sidized and nonsubsidized programs, programs of4 fered by for-profit and nonprofit entities, and pro5 grams in large and small child care settings.

6 (11) Because of the severe nationwide shortage

7 of qualified staff available for employment by child

8 care programs, several States have recently initiated

9 programs to improve the quality of child care by in10 creasing the training and compensation of child care

11 providers. Such programs encourage the training,

12 education, and increased retention of qualified child

13 care providers by offering financial incentives, in14 cluding scholarships and increases in compensation,

15 that range from $350 to $6,500 annually.

16 (b) PURPOSES.—The purposes of this Act are—

17 (1) to establish the Child Care Provider Devel18 opment and Retention Grant Program and the Child

19 Care Provider Scholarship Program; and

20 (2) to help children receive the high quality

21 child care and early education the children need for

22 positive cognitive and social development, by reward23 ing and promoting the retention of committed, quali24 fied child care providers and by providing financial
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1 assistance to improve the educational qualifications

2 of child care providers.

3 SEC. 3203. DEFINITIONS.

4 In this Act:

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

6 care provider’’ means an individual who provides a

7 service directly to a child on a person to person basis

8 for compensation for—

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

10 is licensed or regulated under State or local law

11 and that satisfies the State and local require12 ments applicable to the child care services pro13 vided;

14 (B) a licensed or regulated family child

15 care provider that satisfies the State and local

16 requirements applicable to the child care serv17 ices provided; or

18 (C) an out-of-school time program that is

19 licensed or regulated under State or local law

20 and that satisfies the State and local require21 ments applicable to the child care services pro22 vided.

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

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

25 such term in section 658P of the Child Care and
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1 Development Block Grant Act of 1990 (42 U.S.C.

2 9858n).

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

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

5 Indian Self-Determination and Education Assistance

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

7 (4) IN-KIND CONTRIBUTION.—The term ‘‘in8 kind contribution’’ means payment of the costs of

9 participation of eligible child care providers in health

10 insurance programs or retirement programs.

11 (5) LEAD AGENCY.—The term ‘‘lead agency’’

12 means the agency designated under section 658D of

13 the Child Care and Development Block Grant Act of

14 1990 (42 U.S.C. 9858b).

15 (6) SECRETARY.—The term ‘‘Secretary’’ means

16 the Secretary of Health and Human Services.

17 (7) STATE.—The term ‘‘State’’ means any of

18 the several States, the District of Columbia, the

19 Commonwealth of Puerto Rico, Guam, American

20 Samoa, or the Commonwealth of the Northern Mar21 iana Islands.

22 (8) TRIBAL ORGANIZATION.—The term ‘‘tribal

23 organization’’ has the meaning given the term in

24 section 4 of the Indian Self-Determination and Edu25 cation Assistance Act (25 U.S.C. 450b).
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1 SEC. 3204. FUNDS FOR CHILD CARE PROVIDER DEVELOP2 MENT AND RETENTION GRANTS AND FOR

3 CHILD CARE PROVIDER SCHOLARSHIPS.

4 (a) IN GENERAL.—The Secretary may allot and dis5 tribute funds appropriated to carry out this Act to eligible

6 States and Indian tribes and tribal organizations to pay

7 for the Federal share of the cost of making grants under

8 sections 3207 and 3208 to eligible child care providers.

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

10 distributed by the Secretary in accordance with section

11 3205, and expended by the States (directly, or at the op12 tion of the States, through units of general purpose local

13 government), and by Indian tribes and tribal organiza14 tions, in accordance with this Act.

15 SEC. 3205. ALLOTMENTS TO STATES.

16 (a) AMOUNTS RESERVED.—

17 (1) TERRITORIES AND POSSESSIONS.—The Secretary shall reserve not more than 1 18 ⁄2 of 1 percent

19 of the funds appropriated to carry out this Act for

20 any fiscal year for distribution to Guam, American

21 Samoa, and the Commonwealth of the Northern

22 Mariana Islands, to be allotted in accordance with

23 their respective needs, to plan and carry out pro24 grams and activities to encourage child care pro25 viders to improve their qualifications and to retain

26 qualified child care providers in the child care field.
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1 (2) INDIAN TRIBES AND TRIBAL ORGANIZA2 TIONS.—The Secretary shall reserve not more than

3 3 percent of the funds appropriated to carry out this

4 Act for any fiscal year for payments to Indian tribes

5 and tribal organizations with applications approved

6 under subsection (c), to plan and carry out pro7 grams and activities to encourage child care pro8 viders to improve their qualifications and to retain

9 qualified child care providers in the child care field.

10 (b) ALLOTMENTS TO REMAINING STATES.—

11 (1) GENERAL AUTHORITY.—From the funds

12 appropriated to carry out this Act for any fiscal year

13 and remaining after the reservations made under

14 subsection (a), the Secretary shall allot to each State

15 (excluding Guam, American Samoa, and the Com16 monwealth of the Northern Mariana Islands) an

17 amount equal to the sum of—

18 (A) an amount that bears the same ratio

19 to 50 percent of such remainder as the product

20 of the young child factor of the State and the

21 allotment percentage of the State bears to the

22 sum of the corresponding products for all

23 States; and

24 (B) an amount that bears the same ratio

25 to 50 percent of such remainder as the product
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1 of the school lunch factor of the State and the

2 allotment percentage of the State bears to the

3 sum of the corresponding products for all

4 States.

5 (2) YOUNG CHILD FACTOR.—In this subsection,

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

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

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

9 determined according to the most recent annual esti10 mates of population in the States, as provided by the

11 Bureau of the Census.

12 (3) SCHOOL LUNCH FACTOR.—In this sub13 section, the term ‘‘school lunch factor’’ means the

14 ratio of the number of children who are receiving

15 free or reduced price lunches under the school lunch

16 program established under the Richard B. Russell

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

18 in the State to the number of such children in all

19 the States, as determined annually by the Depart20 ment of Agriculture.

21 (4) ALLOTMENT PERCENTAGE.—

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

23 subparagraph (B), for purposes of this sub24 section, the allotment percentage for a State

25 shall be determined by dividing the per capita
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1 income of all individuals in the United States,

2 by the per capita income of all individuals in

3 the State.

4 (B) LIMITATIONS.—For purposes of this

5 subsection, if an allotment percentage deter6 mined under subparagraph (A)—

7 (i) is more than 1.2 percent, the allot8 ment percentage of that State shall be con9 sidered to be 1.2 percent; and

10 (ii) is less than 0.8 percent, the allot11 ment percentage of the State shall be con12 sidered to be 0.8 percent.

13 (C) PER CAPITA INCOME.—For purposes

14 of subparagraph (A), per capita income shall

15 be—

16 (i) determined at 2-year intervals;

17 (ii) applied for the 2-year period be18 ginning on October 1 of the first fiscal

19 year beginning after the date such deter20 mination is made; and

21 (iii) equal to the average of the an22 nual per capita incomes for the most re23 cent period of 3 consecutive years for

24 which satisfactory data are available from
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1 the Department of Commerce at the time

2 such determination is made.

3 (c) PAYMENTS TO INDIAN TRIBES AND TRIBAL OR4 GANIZATIONS.—

5 (1) RESERVATION OF FUNDS.—From amounts

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

7 make grants to or enter into contracts with Indian

8 tribes and tribal organizations that submit applica9 tions under this subsection, to plan and carry out

10 programs and activities to encourage child care pro11 viders to improve their qualifications and to retain

12 qualified child care providers in the child care field.

13 (2) APPLICATIONS AND REQUIREMENTS.—To

14 be eligible to receive a grant or contract under this

15 subsection, an Indian tribe or tribal organization

16 shall submit an application to the Secretary at such

17 time, in such manner, and containing such informa18 tion as the Secretary may require. The application

19 shall provide that the applicant—

20 (A) will coordinate the programs and ac21 tivities involved, to the maximum extent prac22 ticable, with the lead agency in each State in

23 which the applicant will carry out such pro24 grams and activities; and
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1 (B) will make such reports on, and conduct

2 such audits of the funds made available through

3 the grant or contract for, programs and activi4 ties under this Act as the Secretary may re5 quire.

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

7 obtain from each appropriate Federal agency, the most re8 cent data and information necessary to determine the al9 lotments provided for in subsection (b).

10 (e) REALLOTMENTS.—

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

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

13 the Secretary determines will not be distributed to

14 the State for such fiscal year shall be reallotted by

15 the Secretary to other States in proportion to the

16 original allotments made under such subsection to

17 such States for such fiscal year.

18 (2) LIMITATIONS.—

19 (A) REDUCTION.—The amount of any re20 allotment to which a State is entitled under this

21 subsection shall be reduced to the extent that

22 such amount exceeds the amount that the Sec23 retary estimates will be distributed to the State

24 to make grants under this Act.
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1 (B) REALLOTMENTS.—The amount of

2 such reduction shall be reallotted to States for

3 which no reduction in an allotment, or in a real4 lotment, is required by this subsection, in pro5 portion to the original allotments made under

6 subsection (b) to such States for such fiscal

7 year.

8 (3) AMOUNTS REALLOTTED.—For purposes of

9 this Act (other than this subsection and subsection

10 (b)), any amount reallotted to a State under this

11 subsection shall be considered to be part of the allot12 ment made under subsection (b) to the State.

13 (f) COST-SHARING.—

14 (1) FEDERAL SHARE.—The Federal share of

15 the cost of making grants under sections 3207 and

16 3208, with funds allotted under this section and dis17 tributed by the Secretary to a State, shall be—

18 (A) not more than 90 percent of the cost

19 of each grant made under such sections, in the

20 1st fiscal year for which the State receives such

21 funds;

22 (B) not more than 85 percent of the cost

23 of each grant made under such sections, in the

24 2d fiscal year for which the State receives such

25 funds;
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1 (C) not more than 80 percent of the cost

2 of each grant made under such sections, in the

3 3d fiscal year for which the State receives such

4 funds; and

5 (D) not more than 75 percent of the cost

6 of each grant made under such sections, in any

7 subsequent fiscal year for which the State re8 ceives such funds.

9 (2) STATE SHARE.—The non-Federal share of

10 the cost of making such grants shall be paid by the

11 State in cash or in the form of an in-kind contribu12 tion, fairly evaluated by the Secretary.

13 (g) AVAILABILITY OF ALLOTTED FUNDS DISTRIB14 UTED TO STATES.—Of the funds allotted under this sec15 tion and distributed by the Secretary to a State for a fiscal

16 year—

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

18 to the State for grants under section 3207;

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

20 to the State for grants under section 3208; and

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

22 to pay administrative costs incurred by the State to

23 carry out this Act.
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1 SEC. 3206. APPLICATION AND PLAN.

2 (a) APPLICATION.—To be eligible to receive a dis3 tribution of funds allotted under section 3205, a State

4 shall submit to the Secretary an application at such time,

5 in such manner, and containing such information as the

6 Secretary may require by rule and shall include in such

7 application a State plan that satisfies the requirements of

8 subsection (b).

9 (b) REQUIREMENTS OF PLAN.—

10 (1) LEAD AGENCY.—The State plan shall iden11 tify the lead agency to make grants under this Act

12 for the State.

13 (2) RECRUITMENT AND RETENTION OF CHILD

14 CARE PROVIDERS.—The State plan shall describe

15 how the lead agency will encourage both the recruit16 ment of eligible child care providers who are new to

17 the child care field and the retention of eligible child

18 care providers who have a demonstrated commit19 ment to the child care field.

20 (3) NOTIFICATION OF GRANT AVAILABILITY.—

21 The State plan shall describe how the lead agency

22 will identify all eligible child care providers in the

23 State and notify the providers of the availability of

24 grants under this Act.

25 (4) DISTRIBUTION OF GRANTS.—The State

26 plan shall describe how the lead agency will make
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1 grants under sections 3207 and 3208 to child care

2 providers in selected geographical areas in the State

3 in compliance with the following requirements:

4 (A) SELECTION OF GEOGRAPHICAL

5 AREAS.—For the purpose of making such

6 grants for a fiscal year, the State shall—

7 (i) select a variety of geographical

8 areas, determined by the State, that,

9 collectively—

10 (I) include urban areas, suburban

11 areas, and rural areas; and

12 (II) are areas whose residents

13 have diverse income levels; and

14 (ii) give special consideration to geo15 graphical areas selected under this sub16 paragraph for the preceding fiscal year.

17 (B) SELECTION OF CHILD CARE PRO18 VIDERS TO RECEIVE GRANTS.—In making

19 grants under section 3207, the State may make

20 grants only to eligible child care providers in

21 geographical areas selected under subparagraph

22 (A), but—

23 (i) may give special consideration in

24 such areas to eligible child care providers

25 who have attained a higher relevant edu-
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1 cational credential, who provide a specific

2 kind of child care services, who provide

3 child care services to populations who meet

4 specific economic characteristics, or who

5 meet such other criteria as the State may

6 establish; and

7 (ii) shall give special consideration to

8 eligible child care providers who received a

9 grant under such section in the preceding

10 fiscal year.

11 (C) LIMITATION.—The State shall describe

12 how the State will ensure that grants made

13 under section 3207 to child care providers will

14 not be used to offset reductions in the com15 pensation of such providers.

16 (D) REPORTING REQUIREMENT.—With re17 spect to each particular geographical area se18 lected under subparagraph (A), the State shall

19 provide an assurance that the State will, for

20 each fiscal year for which such State receives a

21 grant under section 3207—

22 (i) include in the report required by

23 section 3209, detailed information

24 regarding—
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1 (I) the continuity of employment

2 of the grant recipients as child care

3 providers with the same employer;

4 (II) with respect to each em5 ployer that employed such a grant re6 cipient, whether such employer was

7 accredited by a recognized national or

8 State accrediting body during the pe9 riod of employment; and

10 (III) to the extent practicable

11 and available to the State, the rate

12 and frequency of employment turnover

13 of qualified child care providers

14 throughout such area,

15 during the 2-year period ending on the

16 deadline for submission of applications for

17 grants under section 3207 for that fiscal

18 year; and

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

20 later than 90 days after the end of the suc21 ceeding fiscal year that includes informa22 tion regarding—

23 (I) the continuity of employment

24 of the grant recipients as child care

25 providers with the same employer;
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1 (II) with respect to each em2 ployer that employed such a grant re3 cipient, whether such employer was

4 accredited by a recognized national or

5 State accrediting body during the pe6 riod of employment; and

7 (III) to the extent practicable

8 and available to the State, detailed in9 formation regarding the rate and fre10 quency of employment turnover of

11 qualified child care providers through12 out such area,

13 during the 1-year period beginning on the

14 date on which the grant to the State was

15 made under section 3207.

16 (5) CHILD CARE PROVIDER DEVELOPMENT AND

17 RETENTION GRANT PROGRAM.—The State plan shall

18 describe how the lead agency will determine the

19 amounts of grants to be made under section 3207

20 in accordance with the following requirements:

21 (A) SUFFICIENT AMOUNTS.—The State

22 shall demonstrate that the amounts of indi23 vidual grants to be made under section 3207

24 will be sufficient—
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1 (i) to encourage child care providers

2 to improve their qualifications; and

3 (ii) to retain qualified child care pro4 viders in the child care field.

5 (B) AMOUNTS TO CREDENTIALED PRO6 VIDERS.—Such grants made to child care pro7 viders who have a child development associate

8 credential and who are employed full-time to

9 provide child care services shall be in an

10 amount that is not less than $1,000 per year.

11 (C) AMOUNTS TO PROVIDERS WITH HIGH12 ER LEVELS OF EDUCATION.—The State shall

13 make such grants in amounts greater than

14 $1,000 per year to child care providers who

15 have higher levels of education than the edu16 cation required for a credential such as a child

17 development associate credential, according to

18 the following requirements:

19 (i) PROVIDERS WITH BACCALAUREATE

20 DEGREES IN RELEVANT FIELDS.—A child

21 care provider who has a baccalaureate de22 gree in the area of child development or

23 early child education shall receive a grant

24 under section 3207 in an amount that is

25 not less than twice the amount of the
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1 grant that is made under section 3207 to

2 a child care provider who has an associate

3 of the arts degree in the area of child de4 velopment or early child education.

5 (ii) PROVIDERS WITH ASSOCIATE DE6 GREES.—A child care provider who has an

7 associate of the arts degree in the area of

8 child development or early child education

9 shall receive a grant under section 3207 in

10 an amount that is not less than 150 per11 cent of the amount of the grant that is

12 made under section 3207 to a child care

13 provider who has a child development asso14 ciate credential and is employed full-time

15 to provide child care services.

16 (iii) OTHER PROVIDERS WITH BACCA17 LAUREATE DEGREES.—

18 (I) IN GENERAL.—Except as pro19 vided in subclause (II), a child care

20 provider who has a baccalaureate de21 gree in a field other than child devel22 opment or early child education shall

23 receive a grant under section 3207 in

24 an amount equal to the amount of the

25 grant that is made under section 3207
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1 to a child care provider who has an

2 associate of the arts degree in the

3 area of child development or early

4 child education.

5 (II) EXCEPTION.—If a child care

6 provider who has such a baccalaureate

7 degree obtains additional educational

8 training in the area of child develop9 ment or early child education, as spec10 ified by the State, such provider shall

11 receive a grant under section 3207 in

12 an amount equal to the amount of the

13 grant that is made under section 3207

14 to a child care provider who has a

15 baccalaureate degree specified in

16 clause (i).

17 (D) AMOUNTS TO FULL-TIME PRO18 VIDERS.—The State shall make a grant under

19 section 3207 to a child care provider who works

20 full-time in a greater amount than the amount

21 of the grant that is made under section 3207

22 to a child care provider who works part-time,

23 based on the State definitions of full-time and

24 part-time work.
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1 (E) AMOUNTS TO EXPERIENCED PRO2 VIDERS.—The State shall make grants under

3 section 3207 in progressively larger amounts to

4 child care providers to reflect the number of

5 years worked as child care providers.

6 (6) DISTRIBUTION OF CHILD CARE PROVIDER

7 SCHOLARSHIPS.—The State plan shall describe how

8 the lead agency will make grants for scholarships in

9 compliance with section 3208 and shall specify the

10 types of educational and training programs for

11 which the scholarship grants made under such sec12 tion may be used, including only programs that—

13 (A) are administered by institutions of

14 higher education that are eligible to participate

15 in student financial assistance programs under

16 title IV of the Higher Education Act of 1965

17 (20 U.S.C. 1070 et seq.); and

18 (B) lead to a State or nationally recog19 nized credential in the area of child develop20 ment or early child education, an associate of

21 the arts degree in the area of child development

22 or early child education, or a baccalaureate de23 gree in the area of child development or early

24 child education.
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1 (7) EMPLOYER CONTRIBUTION.—The State

2 plan shall describe how the lead agency will encour3 age employers of child care providers to contribute

4 to the attainment of education goals by child care

5 providers who receive grants under section 3208.

6 (8) SUPPLEMENTATION.—The State plan shall

7 provide assurances that amounts received by the

8 State to carry out sections 3207 and 3208 will be

9 used only to supplement, and not to supplant, Fed10 eral, State, and local funds otherwise available to

11 support existing services and activities (as of the

12 date the amounts are used) that encourage child

13 care providers to improve their qualifications and

14 that promote the retention of qualified child care

15 providers in the child care field.

16 SEC. 3207. CHILD CARE PROVIDER DEVELOPMENT AND RE17 TENTION GRANT PROGRAM.

18 (a) IN GENERAL.—A State that receives funds allot19 ted under section 3205 and made available to carry out

20 this section shall expend such funds to make grants to

21 eligible child care providers in accordance with this sec22 tion, to improve the qualifications and promote the reten23 tion of qualified child care providers.
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1 (b) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi2 ble to receive a grant under this section, a child care pro3 vider shall—

4 (1) have a child development associate creden5 tial or equivalent, an associate of the arts degree in

6 the area of child development or early child edu7 cation, a baccalaureate degree in the area of child

8 development or early child education, or a bacca9 laureate degree in an unrelated field; and

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

11 less than 1 calendar year, or (if the provider is em12 ployed on the date of the eligibility determination in

13 a child care program that operates for less than a

14 full calendar year) the program equivalent of 1 cal15 endar year, ending on the date of the application for

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

17 education related to child development or to early

18 child education obtained during the corresponding

19 calendar year may be treated as employment that

20 satisfies the requirements of this paragraph.

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

22 not take into consideration whether a child care provider

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

24 funds under section 3208 for purposes of selecting eligible

25 child care providers to receive grants under this section.
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1 SEC. 3208. CHILD CARE PROVIDER SCHOLARSHIP PRO2 GRAM.

3 (a) IN GENERAL.—A State that receives funds allot4 ted under section 3205 and made available to carry out

5 this section shall expend such funds to make scholarship

6 grants to eligible child care providers in accordance with

7 this section, to improve their educational qualifications to

8 provide child care services.

9 (b) ELIGIBILITY REQUIREMENT FOR SCHOLARSHIP

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

11 under this section, a child care provider shall be employed

12 as a child care provider for not less than 1 calendar year,

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

14 determination in a child care program that operates for

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

16 1 calendar year, ending on the date of the application for

17 such grant.

18 (c) SELECTION OF GRANTEES.—For purposes of se19 lecting eligible child care providers to receive scholarship

20 grants under this section and determining the amounts of

21 such grants, a State shall not—

22 (1) take into consideration whether a child care

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

24 to receive any funds under any other provision of

25 this Act, or under any other Federal or State law

26 that provides funds for educational purposes; or
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1 (2) consider as resources of such provider any

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

3 be eligible to receive under any other provision of

4 this Act, under any other Federal or State law that

5 provides funds for educational purposes, or from a

6 private entity.

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

8 scholarship grant made under this section to an eligible

9 child care provider shall be less than the cost of the edu10 cational or training program for which such grant is made.

11 (e) ANNUAL MAXIMUM SCHOLARSHIP GRANT

12 AMOUNT.—The maximum aggregate dollar amount of a

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

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

15 SEC. 3209. ANNUAL REPORT.

16 A State that receives funds appropriated to carry out

17 this Act for a fiscal year shall submit to the Secretary,

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

19 a report—

20 (1) specifying the uses for which the State ex21 pended such funds, and the aggregate amount of

22 funds (including State funds) expended for each of

23 such uses;

24 (2) containing available data relating to grants

25 made with such funds, including—
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1 (A) the number of child care providers who

2 received such grants;

3 (B) the amounts of such grants;

4 (C) any other information that describes or

5 evaluates the effectiveness of this Act;

6 (D) the particular geographical areas se7 lected under section 3206 for the purpose of

8 making such grants;

9 (E) with respect to grants made under sec10 tion 3207—

11 (i) the number of years grant recipi12 ents have been employed as child care pro13 viders;

14 (ii) the level of training and education

15 of grant recipients;

16 (iii) to the extent practicable and

17 available to the State, detailed information

18 regarding the salaries and other compensa19 tion received by grant recipients to provide

20 child care services before, during, and after

21 receiving such grant;

22 (iv) the number of children who re23 ceived child care services provided by grant

24 recipients;
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1 (v) information on family demo2 graphics of such children;

3 (vi) the types of settings described in

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

5 3203(a)(1) in which grant recipients are

6 employed; and

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

9 recipients;

10 (F) with respect to grants made under sec11 tion 3208—

12 (i) the number of years grant recipi13 ents have been employed as child care pro14 viders;

15 (ii) the level of training and education

16 of grant recipients;

17 (iii) to the extent practicable and

18 available to the State, detailed information

19 regarding the salaries and other compensa20 tion received by grant recipients to provide

21 child care services before, during, and after

22 receiving such grant;

23 (iv) the types of settings described in

24 subparagraphs (A), (B), and (C) of section
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1 3203(a)(1) in which grant recipients are

2 employed;

3 (v) the ages of the children who re4 ceived child care services provided by grant

5 recipients;

6 (vi) the number of course credits or

7 credentials obtained by grant recipients;

8 and

9 (vii) the amount of time taken for

10 completion of the educational and training

11 programs for which such grants were

12 made; and

13 (G) such other information as the Sec14 retary may require by rule.

15 SEC. 3210. AUTHORIZATION OF APPROPRIATIONS.

16 There is authorized to be appropriated

17 $5,000,000,000 in the aggregate for fiscal years 2002

18 through 2006 to carry out this Act.

19 CHAPTER 2—STRENGTHENING QUALITY

20 THROUGH THE CHILD CARE AND DE21 VELOPMENT BLOCK GRANT

22 SEC. 3231. STATE PLAN.

23 Section 658E(c)(2) of the Child Care and Develop24 ment Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)),
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1 as amended in section 3112, is further amended by adding

2 at the end the following:

3 ‘‘(K) ESTABLISHMENT OF TRAINING RE4 QUIREMENTS.—Certify that there are require5 ments in effect within the State, under State or

6 local law, that are designed to support the

7 learning and development of children and that

8 are applicable to all child care providers that

9 provide services for which assistance is made

10 available under this subchapter. Such require11 ments shall include requirements relating to

12 preservice training in childhood development.

13 ‘‘(L) INSURING THE SAFETY OF CHIL14 DREN.—Certify that there are requirements in

15 effect within the State, under State or local

16 law, that require that evaluators from an appro17 priate State or local agency make not less than

18 2 unannounced visits annually to each child

19 care provider in the State that provides services

20 for which assistance is made available under

21 this subchapter.’’.

22 SEC. 3232. CHILD CARE QUALITY IMPROVEMENTS.

23 Section 658G of the Child Care and Development

24 Block Grant Act of 1990 (42 U.S.C. 9858e), as amended
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1 in section 3002, is further amended by striking subsection

2 (a) and inserting the following:

3 ‘‘(a) ACTIVITIES TO IMPROVE THE QUALITY OF

4 CHILD CARE.—

5 ‘‘(1) IN GENERAL.—A State that receives funds

6 to carry out this subchapter shall reserve and use

7 not less than 12 percent of the funds—

8 ‘‘(A) for 1 or more activities consisting

9 of—

10 ‘‘(i) providing directly, or providing fi11 nancial assistance to private nonprofit or12 ganizations or public entities (including

13 units of general purpose local government)

14 for the development, establishment, expan15 sion, operation, and coordination of, child

16 care resource and referral services;

17 ‘‘(ii) making grants or providing loans

18 to eligible child care providers to assist the

19 providers in meeting applicable State and

20 local child care standards and recognized

21 accreditation standards;

22 ‘‘(iii) improving the ability of State or

23 local government, as applicable, to monitor

24 compliance with, and to enforce, State and

25 local licensing and regulatory requirements
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1 (including registration requirements) appli2 cable to child care providers;

3 ‘‘(iv) providing training and technical

4 assistance in areas relating to the provision

5 of child care services, such as training re6 lating to promotion of health and safety,

7 promotion of good nutrition, provision of

8 first aid, recognition of communicable dis9 eases, child abuse detection and preven10 tion, and care of children with special

11 needs; and

12 ‘‘(v) improving salaries and other

13 compensation paid to full-time and part14 time staff who provide child care services

15 for which assistance is made available

16 under this subchapter; and

17 ‘‘(B) to support the system described in

18 paragraph (2).

19 ‘‘(2) CHILD CARE RESOURCE AND REFERRAL

20 SYSTEM.—The State shall use a portion of the funds

21 reserved under paragraph (1) to support a system of

22 local child care resource and referral organizations

23 coordinated by a statewide lead child care resource

24 and referral organization. The local child care re25 source and referral organizations shall—
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1 ‘‘(A) provide parents in the State with in2 formation and support concerning child care op3 tions in their communities;

4 ‘‘(B) collect data on the supply of and de5 mand for child care in political subdivisions

6 within the State;

7 ‘‘(C) develop links with the business com8 munity; and

9 ‘‘(D) increase the supply and improve the

10 quality of child care in the State and in political

11 subdivisions in the State.’’.

12 SEC. 3233. ADMINISTRATION AND ENFORCEMENT.

13 (a) IN GENERAL.—Section 658I of the Child Care

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

15 9858g) is amended by adding at the end the following:

16 ‘‘(c) FEDERAL ADMINISTRATION ACTIVITIES.—The

17 Secretary shall use the funds reserved under section

18 658O(a)(3)—

19 ‘‘(1) to support the establishment of a national

20 data system to develop statistics on the supply of,

21 demand for, and quality of child care, early edu22 cation, and non-school-hours programs, including

23 use of data collected through child care resource and

24 referral organizations at the national, State, and

25 local levels;
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1 ‘‘(2) to prepare and submit to Congress an an2 nual report on the supply of, demand for, and qual3 ity of child care, early education, and non-school4 hours programs, using data collected through State

5 and local child care resource and referral organiza6 tions and other sources; and

7 ‘‘(3) to provide technical assistance to States to

8 enable the States to participate in carrying out the

9 activities described in paragraphs (1) and (2).’’.

10 (b) RESERVATION.—Section 658O(a) of the Child

11 Care and Development Block Grant Act of 1990 (42

12 U.S.C. 9858m(a)) is amended by adding at the end the

13 following:

14 ‘‘(3) ADMINISTRATION.—The Secretary shall

15 reserve not more than 2 percent of the amount ap16 propriated under section 658B for each fiscal year

17 to carry out section 658I(c).’’.

18 CHAPTER 3—CHILD CARE CENTERS IN

19 FEDERAL FACILITIES

20 SEC. 3241. SHORT TITLE.

21 This chapter may be cited as the ‘‘Federal Employees

22 Child Care Act’’.

23 SEC. 3242. DEFINITIONS.

24 In this chapter (except as otherwise provided in sec25 tion 3245):
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1 (1) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of General Serv3 ices.

4 (2) CHILD CARE ACCREDITATION ENTITY.—The

5 term ‘‘child care accreditation entity’’ means a non6 profit private organization or public agency that—

7 (A) is recognized by a State agency or by

8 a national organization that serves as a peer re9 view panel on the standards and procedures of

10 public and private child care or school accred11 iting bodies; and

12 (B) accredits a facility to provide child

13 care on the basis of—

14 (i) an accreditation or credentialing

15 instrument based on peer-validated re16 search;

17 (ii) compliance with applicable State

18 or local licensing requirements, as appro19 priate, for the facility;

20 (iii) outside monitoring of the facility;

21 and

22 (iv) criteria that provide assurances

23 of—
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1 (I) use of developmentally appro2 priate health and safety standards at

3 the facility;

4 (II) use of developmentally ap5 propriate educational activities, as an

6 integral part of the child care pro7 gram carried out at the facility; and

8 (III) use of ongoing staff devel9 opment or training activities for the

10 staff of the facility, including related

11 skills-based testing.

12 (3) ENTITY SPONSORING A CHILD CARE FACIL13 ITY.—The term ‘‘entity sponsoring a child care facil14 ity’’ means a Federal agency that operates, or an

15 entity that enters into a contract or licensing agree16 ment with a Federal agency to operate, a child care

17 facility primarily for the use of Federal employees.

18 (4) EXECUTIVE AGENCY.—The term ‘‘Executive

19 agency’’ has the meaning given the term in section

20 105 of title 5, United States Code, except that the

21 term—

22 (A) does not include the Department of

23 Defense and the Coast Guard; and
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1 (B) includes the General Services Adminis2 tration, with respect to the administration of a

3 facility described in paragraph (5)(B).

4 (5) EXECUTIVE FACILITY.—The term ‘‘execu5 tive facility’’—

6 (A) means a facility that is owned or

7 leased by an Executive agency; and

8 (B) includes a facility that is owned or

9 leased by the General Services Administration

10 on behalf of a judicial office.

11 (6) FEDERAL AGENCY.—The term ‘‘Federal

12 agency’’ means an Executive agency, a legislative of13 fice, or a judicial office.

14 (7) JUDICIAL FACILITY.—The term ‘‘judicial fa15 cility’’ means a facility that is owned or leased by a

16 judicial office (other than a facility that is also a fa17 cility described in paragraph (5)(B)).

18 (8) JUDICIAL OFFICE.—The term ‘‘judicial of19 fice’’ means an entity of the judicial branch of the

20 Federal Government.

21 (9) LEGISLATIVE FACILITY.—The term ‘‘legisla22 tive facility’’ means a facility that is owned or leased

23 by a legislative office.
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1 (10) LEGISLATIVE OFFICE.—The term ‘‘legisla2 tive office’’ means an entity of the legislative branch

3 of the Federal Government.

4 (11) STATE.—The term ‘‘State’’ has the mean5 ing given the term in section 658P of the Child Care

6 and Development Block Grant Act of 1990 (42

7 U.S.C. 9858n).

8 SEC. 3243. PROVIDING QUALITY CHILD CARE IN FEDERAL

9 FACILITIES.

10 (a) EXECUTIVE FACILITIES.—

11 (1) STATE AND LOCAL LICENSING REQUIRE12 MENTS.—

13 (A) IN GENERAL.—Any entity sponsoring

14 a child care facility in an executive facility

15 shall—

16 (i) comply with child care standards

17 described in paragraph (2) that are no less

18 stringent than applicable State or local li19 censing requirements that are related to

20 the provision of child care in the State or

21 locality involved; or

22 (ii) obtain the applicable State or local

23 licenses, as appropriate, for the facility.
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1 (B) COMPLIANCE.—Not later than 6

2 months after the date of enactment of this

3 Act—

4 (i) the entity shall comply, or make

5 substantial progress (as determined by the

6 Administrator) toward complying, with

7 subparagraph (A); and

8 (ii) any contract or licensing agree9 ment used by an Executive agency for the

10 provision of child care services in the child

11 care facility shall include a condition that

12 the child care be provided by an entity that

13 complies with the standards described in

14 subparagraph (A)(i) or obtains the licenses

15 described in subparagraph (A)(ii).

16 (2) HEALTH, SAFETY, AND FACILITY STAND17 ARDS.—The Administrator shall by regulation estab18 lish standards relating to health, safety, facilities, fa19 cility design, and other aspects of child care that the

20 Administrator determines to be appropriate for child

21 care in executive facilities, and require child care fa22 cilities, and entities sponsoring child care facilities,

23 in executive facilities to comply with the standards.

24 The standards shall include requirements that child
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1 care facilities be inspected for, and be free of, lead

2 hazards.

3 (3) ACCREDITATION STANDARDS.—

4 (A) IN GENERAL.—The Administrator

5 shall issue regulations requiring, to the max6 imum extent possible, any entity sponsoring an

7 eligible child care facility (as defined by the Ad8 ministrator) in an executive facility to comply

9 with standards of a child care accreditation en10 tity.

11 (B) COMPLIANCE.—The regulations shall

12 require that, not later than 3 years after the

13 date of enactment of this Act—

14 (i) the entity shall comply, or make

15 substantial progress (as determined by the

16 Administrator) toward complying, with the

17 standards; and

18 (ii) any contract or licensing agree19 ment used by an Executive agency for the

20 provision of child care services in the child

21 care facility shall include a condition that

22 the child care be provided by an entity that

23 complies with the standards.

24 (4) EVALUATION AND COMPLIANCE.—
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1 (A) IN GENERAL.—The Administrator

2 shall evaluate the compliance, with the require3 ments of paragraph (1) and the regulations

4 issued pursuant to paragraphs (2) and (3), as

5 appropriate, of child care facilities, and entities

6 sponsoring child care facilities, in executive fa7 cilities. The Administrator may conduct the

8 evaluation of such a child care facility or entity

9 directly, or through an agreement with another

10 Federal agency or private entity, other than the

11 Federal agency for which the child care facility

12 is providing services. If the Administrator de13 termines, on the basis of such an evaluation,

14 that the child care facility or entity is not in

15 compliance with the requirements, the Adminis16 trator shall notify the Executive agency.

17 (B) EFFECT OF NONCOMPLIANCE.—On re18 ceipt of the notification of noncompliance issued

19 by the Administrator, the head of the Executive

20 agency shall—

21 (i) if the entity operating the child

22 care facility is the agency—

23 (I) not later than 2 business days

24 after the date of receipt of the notifi25 cation, correct any deficiencies that
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1 are determined by the Administrator

2 to be life threatening or to present a

3 risk of serious bodily harm;

4 (II) not later than 4 months

5 after the date of receipt of the notifi6 cation, develop and provide to the Ad7 ministrator a plan to correct any

8 other deficiencies in the operation of

9 the facility and bring the facility and

10 entity into compliance with the re11 quirements;

12 (III) provide the parents of the

13 children receiving child care services

14 at the child care facility and employ15 ees of the facility with a notification

16 detailing the deficiencies described in

17 subclauses (I) and (II) and actions

18 that will be taken to correct the defi19 ciencies, and post a copy of the notifi20 cation in a conspicuous place in the

21 facility for 5 working days or until the

22 deficiencies are corrected, whichever is

23 later;

24 (IV) bring the child care facility

25 and entity into compliance with the
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1 requirements and certify to the Ad2 ministrator that the facility and entity

3 are in compliance, based on an onsite

4 evaluation of the facility conducted by

5 an individual with expertise in child

6 care health and safety; and

7 (V) in the event that deficiencies

8 determined by the Administrator to be

9 life threatening or to present a risk of

10 serious bodily harm cannot be cor11 rected within 2 business days after

12 the date of receipt of the notification,

13 close the child care facility, or the af14 fected portion of the facility, until the

15 deficiencies are corrected and notify

16 the Administrator of the closure; and

17 (ii) if the entity operating the child

18 care facility is a contractor or licensee of

19 the Executive agency—

20 (I) require the contractor or li21 censee, not later than 2 business days

22 after the date of receipt of the notifi23 cation, to correct any deficiencies that

24 are determined by the Administrator
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1 to be life threatening or to present a

2 risk of serious bodily harm;

3 (II) require the contractor or li4 censee, not later than 4 months after

5 the date of receipt of the notification,

6 to develop and provide to the head of

7 the agency a plan to correct any other

8 deficiencies in the operation of the

9 child care facility and bring the facil10 ity and entity into compliance with

11 the requirements;

12 (III) require the contractor or li13 censee to provide the parents of the

14 children receiving child care services

15 at the child care facility and employ16 ees of the facility with a notification

17 detailing the deficiencies described in

18 subclauses (I) and (II) and actions

19 that will be taken to correct the defi20 ciencies, and to post a copy of the no21 tification in a conspicuous place in the

22 facility for 5 working days or until the

23 deficiencies are corrected, whichever is

24 later;
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1 (IV) require the contractor or li2 censee to bring the child care facility

3 and entity into compliance with the

4 requirements and certify to the head

5 of the agency that the facility and en6 tity are in compliance, based on an

7 onsite evaluation of the facility con8 ducted by an independent entity with

9 expertise in child care health and

10 safety; and

11 (V) in the event that deficiencies

12 determined by the Administrator to be

13 life threatening or to present a risk of

14 serious bodily harm cannot be cor15 rected within 2 business days after

16 the date of receipt of the notification,

17 close the child care facility, or the af18 fected portion of the facility, until the

19 deficiencies are corrected and notify

20 the Administrator of the closure,

21 which closure may be grounds for the

22 immediate termination or suspension

23 of the contract or license of the con24 tractor or licensee.
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1 (C) COST REIMBURSEMENT.—The Execu2 tive agency shall reimburse the Administrator

3 for the costs of carrying out subparagraph (A)

4 for child care facilities located in an executive

5 facility other than an executive facility of the

6 General Services Administration. If an entity is

7 sponsoring a child care facility for 2 or more

8 Executive agencies, the Administrator shall allo9 cate the reimbursement costs with respect to

10 the entity among the agencies in a fair and eq11 uitable manner, based on the extent to which

12 each agency is eligible to place children in the

13 facility.

14 (5) DISCLOSURE OF PRIOR VIOLATIONS TO PAR15 ENTS AND FACILITY EMPLOYEES.—

16 (A) IN GENERAL.—The Administrator

17 shall issue regulations that require that each

18 entity sponsoring a child care facility in an ex19 ecutive facility, upon receipt by the child care

20 facility or the entity (as applicable) of a request

21 by any individual who is—

22 (i) a parent of any child enrolled at

23 the facility;
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1 (ii) a parent of a child for whom an

2 application has been submitted to enroll at

3 the facility; or

4 (iii) an employee of the facility;

5 shall provide to the individual the copies and

6 description described in subparagraph (B).

7 (B) COPIES AND DESCRIPTION.—The enti8 ty shall provide—

9 (i) copies of all notifications of defi10 ciencies that have been provided in the

11 past with respect to the facility under

12 clause (i)(III) or (ii)(III), as applicable, of

13 paragraph (4)(B); and

14 (ii) a description of the actions that

15 were taken to correct the deficiencies.

16 (b) LEGISLATIVE FACILITIES.—

17 (1) ACCREDITATION.—The Chief Administra18 tive Officer of the House of Representatives, the Li19 brarian of Congress, and the head of a designated

20 entity in the Senate shall ensure that, not later than

21 1 year after the date of enactment of this Act, the

22 corresponding child care facility obtains accredita23 tion by a child care accreditation entity, in accord24 ance with the accreditation standards of the entity.

25 (2) REGULATIONS.—
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1 (A) IN GENERAL.—If the corresponding

2 child care facility does not maintain accredita3 tion status with a child care accreditation enti4 ty, the Chief Administrative Officer of the

5 House of Representatives, the Librarian of Con6 gress, or the head of the designated entity in

7 the Senate shall issue regulations governing the

8 operation of the corresponding child care facil9 ity, to ensure the safety and quality of care of

10 children placed in the facility. The regulations

11 shall be no less stringent in content and effect

12 than the requirements of subsection (a)(1) and

13 the regulations issued by the Administrator

14 under paragraphs (2) and (3) of subsection (a),

15 except to the extent that appropriate adminis16 trative officers make the determination de17 scribed in subparagraph (B).

18 (B) MODIFICATION MORE EFFECTIVE.—

19 The determination referred to in subparagraph

20 (A) is a determination, for good cause shown

21 and stated together with the regulations, that a

22 modification of the regulations would be more

23 effective for the implementation of the require24 ments and standards described in subsection (a)

25 for the corresponding child care facilities, and
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1 entities sponsoring the corresponding child care

2 facilities, in legislative facilities.

3 (3) CORRESPONDING CHILD CARE FACILITY.—

4 In this subsection, the term ‘‘corresponding child

5 care facility’’, used with respect to the Chief Admin6 istrative Officer, the Librarian, or the head of a des7 ignated entity described in paragraph (1), means a

8 child care facility operated by, or under a contract

9 or licensing agreement with, an office of the House

10 of Representatives, the Library of Congress, or an

11 office of the Senate, respectively.

12 (c) JUDICIAL BRANCH STANDARDS AND COMPLI13 ANCE.—

14 (1) STATE AND LOCAL LICENSING REQUIRE15 MENTS HEALTH, SAFETY, AND FACILITY STAND16 ARDS, AND ACCREDITATION STANDARDS.—The Di17 rector of the Administrative Office of the United

18 States Courts shall issue regulations for child care

19 facilities, and entities sponsoring child care facilities,

20 in judicial facilities, which shall be no less stringent

21 in content and effect than the requirements of sub22 section (a)(1) and the regulations issued by the Ad23 ministrator under paragraphs (2) and (3) of sub24 section (a), except to the extent that the Director

25 may determine, for good cause shown and stated to-
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1 gether with the regulations, that a modification of

2 such regulations would be more effective for the im3 plementation of the requirements and standards de4 scribed in paragraphs (1), (2), and (3) of subsection

5 (a) for child care facilities, and entities sponsoring

6 child care facilities, in judicial facilities.

7 (2) EVALUATION AND COMPLIANCE.—

8 (A) DIRECTOR OF THE ADMINISTRATIVE

9 OFFICE OF THE UNITED STATES COURTS.—The

10 Director of the Administrative Office of the

11 United States Courts shall have the same au12 thorities and duties with respect to the evalua13 tion of, compliance of, and cost reimbursement

14 for child care facilities, and entities sponsoring

15 child care facilities, in judicial facilities as the

16 Administrator has under subsection (a)(4) with

17 respect to the evaluation of, compliance of, and

18 cost reimbursement for such centers and enti19 ties sponsoring such centers, in executive facili20 ties.

21 (B) HEAD OF A JUDICIAL OFFICE.—The

22 head of a judicial office shall have the same au23 thorities and duties with respect to the compli24 ance of and cost reimbursement for child care

25 facilities, and entities sponsoring child care fa-
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1 cilities, in judicial facilities as the head of an

2 Executive agency has under subsection (a)(4)

3 with respect to the compliance of and cost reim4 bursement for such centers and entities spon5 soring such centers, in executive facilities.

6 (d) APPLICATION.—Notwithstanding any other provi7 sion of this section, if 8 or more child care facilities are

8 sponsored in facilities owned or leased by an Executive

9 agency, the Administrator shall delegate to the head of

10 the agency the evaluation and compliance responsibilities

11 assigned to the Administrator under subsection (a)(4)(A).

12 (e) TECHNICAL ASSISTANCE, STUDIES, AND RE13 VIEWS.—The Administrator may provide technical assist14 ance, and conduct and provide the results of studies and

15 reviews, for Executive agencies, and entities sponsoring

16 child care facilities in executive facilities, on a reimburs17 able basis, in order to assist the entities in complying with

18 this section. The Chief Administrative Officer of the

19 House of Representatives, the Librarian of Congress, the

20 head of the designated Senate entity described in sub21 section (b), and the Director of the Administrative Office

22 of the United States Courts, may provide technical assist23 ance, and conduct and provide the results of studies and

24 reviews, or request that the Administrator provide tech25 nical assistance, and conduct and provide the results of
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1 studies and reviews, for legislative offices and judicial of2 fices, as appropriate, and entities operating child care fa3 cilities in legislative facilities or judicial facilities, as ap4 propriate, on a reimbursable basis, in order to assist the

5 entities in complying with this section.

6 (f) INTERAGENCY COUNCIL.—

7 (1) COMPOSITION.—The Administrator shall es8 tablish an interagency council, comprised of—

9 (A) representatives of all Executive agen10 cies described in subsection (d) and other Exec11 utive agencies at the election of the heads of the

12 agencies;

13 (B) a representative of the Chief Adminis14 trative Officer of the House of Representatives,

15 at the election of the Chief Administrative Offi16 cer;

17 (C) a representative of the head of the des18 ignated Senate entity described in subsection

19 (b), at the election of the head of the entity;

20 (D) a representative of the Librarian of

21 Congress, at the election of the Librarian; and

22 (E) a representative of the Director of the

23 Administrative Office of the United States

24 Courts, at the election of the Director.
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1 (2) FUNCTIONS.—The council shall facilitate

2 cooperation and sharing of best practices, and de3 velop and coordinate policy, regarding the provision

4 of child care, including the provision of areas for

5 nursing mothers and other lactation support facili6 ties and services, in the Federal Government.

7 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

8 authorized to be appropriated to carry out this section

9 $900,000 for fiscal year 2002 and such sums as may be

10 necessary for each subsequent fiscal year.

11 SEC. 3244. FEDERAL CHILD CARE EVALUATION.

12 (a) IN GENERAL.—Not later than 1 year after the

13 date of enactment of this Act, the Administrator and the

14 Director of the Office of Personnel Management shall

15 jointly prepare and submit to Congress a report that eval16 uates child care provided by entities sponsoring child care

17 facilities in executive facilities, legislative facilities, or judi18 cial facilities.

19 (b) CONTENTS.—The evaluation shall contain, at a

20 minimum—

21 (1) information on the number of children re22 ceiving child care described in subsection (a), ana23 lyzed by age, including information on the number

24 of those children who are age 6 through 12;
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1 (2) information on the number of families not

2 using child care described in subsection (a) because

3 of the cost of the child care; and

4 (3) recommendations for improving the quality

5 and cost-effectiveness of child care described in sub6 section (a), including recommendations of options

7 for creating an optimal organizational structure and

8 using best practices for the delivery of the child

9 care.

10 SEC. 3245. CHILD CARE SERVICES FOR FEDERAL EMPLOY11 EES.

12 (a) IN GENERAL.—In addition to services authorized

13 to be provided by an agency of the United States pursuant

14 to section 616 of the Act of December 22, 1987 (40

15 U.S.C. 490b), an Executive agency that provides or pro16 poses to provide child care services for Federal employees

17 may use agency funds to provide the child care services,

18 in a facility that is owned or leased by an Executive agen19 cy, or through a contractor, for civilian employees of the

20 agency.

21 (b) AFFORDABILITY.—Funds so used with respect to

22 any such facility or contractor shall be applied to improve

23 the affordability of child care for lower income Federal

24 employees using or seeking to use the child care services

25 offered by the facility or contractor.
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1 (c) REGULATIONS.—The Administrator after con2 sultation with the Director of the Office of Personnel Man3 agement, shall, within 180 days after the date of enact4 ment of this Act, issue regulations necessary to carry out

5 this section.

6 (d) DEFINITION.—For purposes of this section, the

7 term ‘‘Executive agency’’ has the meaning given the term

8 by section 105 of title 5, United States Code, but does

9 not include the General Accounting Office.

10 SEC. 3246. MISCELLANEOUS PROVISIONS RELATING TO

11 CHILD CARE PROVIDED BY FEDERAL AGEN12 CIES.

13 (a) AVAILABILITY OF FEDERAL CHILD CARE CEN14 TERS FOR ONSITE CONTRACTORS; PERCENTAGE GOAL.—

15 Section 616 of the Act of December 22, 1987 (40 U.S.C.

16 490b) is amended—

17 (1) in subsection (a)—

18 (A) by striking ‘‘officer or agency of the

19 United States’’ and inserting ‘‘Federal agency

20 or officer of a Federal agency’’; and

21 (B) by striking paragraphs (2) and (3) and

22 inserting the following:

23 ‘‘(2) the officer or agency determines that the

24 space will be used to provide child care and related

25 services to—
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1 ‘‘(A) children of Federal employees or on2 site Federal contractors; or

3 ‘‘(B) dependent children who live with

4 Federal employees or onsite Federal contrac5 tors; and

6 ‘‘(3) the officer or agency determines that the

7 individual or entity will give priority for available

8 child care and related services in the space to Fed9 eral employees and onsite Federal contractors.’’; and

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

11 ‘‘(f)(1)(A) The Administrator of General Services

12 shall confirm that at least 50 percent of aggregate enroll13 ment in Federal child care centers governmentwide are

14 children of Federal employees or onsite Federal contrac15 tors, or dependent children who live with Federal employ16 ees or onsite Federal contractors.

17 ‘‘(B) Each provider of child care services at an indi18 vidual Federal child care center shall maintain 50 percent

19 of the enrollment at the center of children described under

20 subparagraph (A) as a goal for enrollment at the center.

21 ‘‘(C)(i) If enrollment at a center does not meet the

22 percentage goal under subparagraph (B), the provider

23 shall develop and implement a business plan with the

24 sponsoring Federal agency to achieve the goal within a

25 reasonable timeframe.
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1 ‘‘(ii) The plan shall be approved by the Administrator

2 of General Services based on—

3 ‘‘(I) compliance of the plan with standards es4 tablished by the Administrator; and

5 ‘‘(II) the effect of the plan on achieving the ag6 gregate Federal enrollment percentage goal.

7 ‘‘(2) The Administrator of General Services may

8 enter into public-private partnerships or contracts with

9 nongovernmental entities to increase the capacity, quality,

10 affordability, or range of child care and related services

11 and may, on a demonstration basis, waive subsection

12 (a)(3) and paragraph (1) of this subsection.’’.

13 (b) PAYMENT OF COSTS OF TRAINING PROGRAMS.—

14 Section 616(b)(3) of such Act (40 U.S.C. 490b(b)(3)) is

15 amended to read as follows:

16 ‘‘(3) If a Federal agency has a child care facility in

17 a Federal space, or is a sponsoring agency for a child care

18 facility in a Federal space, the agency or the General Serv19 ices Administration may pay accreditation fees, including

20 renewal fees, for that center to be accredited. Any Federal

21 agency that provides or proposes to provide child care

22 services for children referred to in subsection (a)(2), may

23 reimburse any Federal employee or any person employed

24 to provide the services for the costs of training programs,

25 conferences, and meetings and related travel, transpor-
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1 tation, and subsistence expenses incurred in connection

2 with those activities. Any per diem allowance made under

3 this section shall not exceed the rate specified in regula4 tions prescribed under section 5707 of title 5, United

5 States Code.’’.

6 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

7 Section 616(c) of such Act (40 U.S.C. 490b(c)) is

8 amended—

9 (1) by inserting ‘‘Federal’’ before ‘‘child care

10 centers’’; and

11 (2) by striking ‘‘Federal workers’’ and inserting

12 ‘‘Federal employees’’.

13 (d) PROVISION OF CHILD CARE BY PRIVATE ENTI14 TIES.—Section 616(d) of such Act (40 U.S.C. 490b(d))

15 is amended to read as follows:

16 ‘‘(d)(1) If a Federal agency has a child care facility

17 in a Federal space, or is a sponsoring agency for a child

18 care facility in a Federal space, the agency, the child care

19 center board of directors, or the General Services Adminis20 tration may enter into an agreement with 1 or more pri21 vate entities under which the private entities would assist

22 in defraying the general operating expenses of the child

23 care providers including salaries and tuition assistance

24 programs at the facility.
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1 ‘‘(2)(A) Notwithstanding any other provision of law,

2 if a Federal agency does not have a child care program,

3 or if the Administrator of General Services has identified

4 a need for child care for Federal employees at a Federal

5 agency providing child care services that do not meet the

6 requirements of subsection (a), the agency or the Adminis7 trator may enter into an agreement with a non-Federal,

8 licensed, and accredited child care facility, or a planned

9 child care facility that will become licensed and accredited,

10 for the provision of child care services for children of Fed11 eral employees.

12 ‘‘(B) Before entering into an agreement, the head of

13 the Federal agency shall determine that child care services

14 to be provided through the agreement are more cost-effec15 tively provided through the arrangement than through es16 tablishment of a Federal child care facility.

17 ‘‘(C) The Federal agency may provide any of the

18 services described in subsection (b)(3) if, in exchange for

19 the services, the facility reserves child care spaces for chil20 dren referred to in subsection (a)(2), as agreed to by the

21 parties. The cost of any such services provided by a Fed22 eral agency to a Federal child care facility on behalf of

23 another Federal agency shall be reimbursed by the receiv24 ing agency.
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1 ‘‘(3) This subsection does not apply to residential

2 child care programs.’’.

3 (e) PILOT PROJECTS.—Section 616 of such Act (40

4 U.S.C. 490b) is further amended by adding at the end

5 the following:

6 ‘‘(g)(1) Upon approval of the agency head, a Federal

7 agency may conduct a pilot project not otherwise author8 ized by law for no more than 2 years to test innovative

9 approaches to providing alternative forms of quality child

10 care assistance for Federal employees. A Federal agency

11 head may extend a pilot project for an additional 2-year

12 period. Before any pilot project may be implemented, a

13 determination shall be made by the agency head that initi14 ating the pilot project would be more cost-effective than

15 establishing a new Federal child care facility. Costs of any

16 pilot project shall be paid solely by the agency conducting

17 the pilot project.

18 ‘‘(2) The Administrator of General Services shall

19 serve as an information clearinghouse for pilot projects

20 initiated by other Federal agencies to disseminate infor21 mation concerning the pilot projects to the other Federal

22 agencies.

23 ‘‘(3) Within 6 months after completion of the initial

24 2-year pilot project period, a Federal agency conducting

25 a pilot project under this subsection shall provide for an
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1 evaluation of the impact of the project on the delivery of

2 child care services to Federal employees, and shall submit

3 the results of the evaluation to the Administrator of Gen4 eral Services. The Administrator shall share the results

5 with other Federal agencies.’’.

6 (g) DEFINITIONS.—Section 616 of such Act (40

7 U.S.C. 490b) is further amended by adding at the end

8 the following:

9 ‘‘(h) In this section:

10 ‘‘(1) The term ‘Federal agency’ has the mean11 ing given the term ‘Executive agency’ in section

12 3242 of the Federal Employees Child Care Act.

13 ‘‘(2) The terms ‘Federal building’ and ‘Federal

14 space’ have the meanings given the term ‘executive

15 facility’ in such section 3242.

16 ‘‘(3) The term ‘Federal child care center’

17 means a child care center in an executive facility, as

18 defined in such section 3242.

19 ‘‘(4) The terms ‘Federal contractor’ and ‘Fed20 eral employee’ mean a contractor and an employee,

21 respectively, of an Executive agency, as defined in

22 such section 3242.’’.
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1 CHAPTER 4—EARLY LEARNING

2 SEC. 3251. SHORT TITLE; FINDINGS.

3 (a) SHORT TITLE.—This chapter may be cited as the

4 ‘‘Early Learning Linkages Act of 2001’’.

5 (b) FINDINGS.—Congress finds that—

6 (1) medical research demonstrates that ade7 quate stimulation of a young child’s brain between

8 birth and age 5 is critical to the physical develop9 ment of the young child’s brain;

10 (2) parents are the most significant and effec11 tive teachers of their children, and they alone are re12 sponsible for choosing the best early learning oppor13 tunities for their child;

14 (3) parent education and parent involvement

15 are critical to the success of any early learning pro16 gram or activity;

17 (4) the more intensively parents are involved in

18 their child’s early learning, the greater the cognitive

19 and noncognitive benefits to their children;

20 (5) many parents have difficulty finding the in21 formation and support the parents seek to help their

22 children grow to their full potential;

23 (6) each day approximately 13,000,000 young

24 children, including 6,000,000 infants or toddlers,
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1 spend some or all of their day being cared for by

2 someone other than their parents;

3 (7) quality early learning programs, including

4 those designed to promote effective parenting, can

5 increase the literacy rate, the secondary school grad6 uation rate, the employment rate, and the college en7 rollment rate for children who have participated in

8 voluntary early learning programs and activities;

9 (8) early childhood interventions can yield sub10 stantial advantages to participants in terms of emo11 tional and cognitive development, education, eco12 nomic well-being, and health, with the latter two ad13 vantages applying to the children’s families as well;

14 (9) participation in quality early learning pro15 grams, including those designed to promote effective

16 parenting, can decrease the future incidence of teen17 age pregnancy, welfare dependency, at-risk behav18 iors, and juvenile delinquency for children;

19 (10) several cost-benefit analysis studies indi20 cate that for each $1 invested in quality early learn21 ing programs, the Federal Government can save over

22 $5 by reducing the number of children and families

23 who participate in Federal Government programs

24 like special education and welfare;
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1 (11) for children placed in the care of others

2 during the workday, the low salaries paid to the

3 child care staff, the lack of career progression for

4 the staff, and the lack of child development special5 ists involved in early learning and child care pro6 grams, make it difficult to attract and retain the

7 quality of staff necessary for a positive early learn8 ing experience;

9 (12) Federal Government support for early

10 learning has primarily focused on out-of-home care

11 programs like those established under the Head

12 Start Act, the Child Care and Development Block

13 Grant of 1990, and part C of the Individuals with

14 Disabilities Education Act, and these programs—

15 (A) serve far fewer than half of all eligible

16 children;

17 (B) are not primarily designed to provide

18 support for parents who care for their young

19 children in the home; and

20 (C) lack a means of coordinating early

21 learning opportunities in each community; and

22 (13) by helping communities increase, expand,

23 and better coordinate early learning opportunities

24 for children and their families, the productivity and

25 creativity of future generations will be improved, and
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1 the Nation will be prepared for continued leadership

2 in the 21st century.

3 SEC. 3252. PURPOSES.

4 The purposes of this chapter are—

5 (1) to increase the availability of voluntary pro6 grams, services, and activities that support early

7 childhood development, increase parent effectiveness,

8 and promote the learning and socio-emotional readi9 ness of young children so that young children enter

10 school ready to learn;

11 (2) to remove barriers to the provision of an ac12 cessible system of early childhood learning programs

13 in communities throughout the United States;

14 (3) to increase the availability and affordability

15 of professional development activities and compensa16 tion for caregivers and child care providers; and

17 (4) to facilitate the development of community18 based systems of collaborative service delivery mod19 els characterized by resource sharing, linkages be20 tween appropriate supports, and local planning for

21 services.

22 SEC. 3253. DEFINITIONS.

23 In this chapter:

24 (1) CAREGIVER.—The term ‘‘caregiver’’ means

25 an individual (including a relative, neighbor, or fam-
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1 ily friend) who regularly or frequently provides care,

2 with or without compensation, for a child for whom

3 the individual is not the parent.

4 (2) CHILD CARE PROVIDER.—The term ‘‘child

5 care provider’’ means a provider of non-residential

6 child care services (including center-based, family7 based, or in-home child care services) for compensa8 tion who or that is legally operating under State law,

9 and complies with applicable State and local require10 ments for the provision of child care services.

11 (3) EARLY LEARNING.—The term ‘‘early learn12 ing’’, used with respect to a program or activity,

13 means learning designed to facilitate the develop14 ment of cognitive, language, motor, and social-emo15 tional skills for, and to promote learning readiness

16 in, young children.

17 (4) EARLY LEARNING PROGRAM.—The term

18 ‘‘early learning program’’ means—

19 (A) a program of services or activities that

20 helps parents, caregivers, and child care pro21 viders incorporate early learning into the daily

22 lives of young children; or

23 (B) a program that directly provides early

24 learning to young children.
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1 (5) INDIAN TRIBE.—The term ‘‘Indian tribe’’

2 has the meaning given the term in section 4 of the

3 Indian Self-Determination and Education Assistance

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

5 (6) LOCAL COUNCIL.—The term ‘‘Local Coun6 cil’’ means a Local Council established or designated

7 under section 3261(a) that serves one or more local8 ities.

9 (7) LOCALITY.—The term ‘‘locality’’ means a

10 city, county, borough, township, or area served by

11 another general purpose unit of local government, an

12 Indian tribe, a Regional Corporation, or a Native

13 Hawaiian entity.

14 (8) MIGRATORY CHILDREN.—The term ‘‘migra15 tory children’’ has the meaning given such term in

16 section 1309 of the Elementary and Secondary Edu17 cation Act of 1965 (20 U.S.C. 6399).

18 (9) PARENT.—The term ‘‘parent’’ means a bio19 logical parent, an adoptive parent, a stepparent, a

20 foster parent, or a legal guardian of, or a person

21 standing in loco parentis to, a child.

22 (10) POVERTY LINE.—The term ‘‘poverty line’’

23 means the poverty line (as defined by the Office of

24 Management and Budget, and revised annually in

25 accordance with section 673(2) of the Community
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1 Services Block Grant Act (42 U.S.C. 9902(2))) ap2 plicable to a family of the size involved.

3 (11) PREKINDERGARTEN EDUCATION PRO4 GRAM.—The term ‘‘prekindergarten education pro5 gram’’ means a program that—

6 (A) serves children ages 3, 4, and 5 years

7 old and that supports children’s cognitive, so8 cial, emotional, and physical development and

9 helps prepare children for the transition to kin10 dergarten; and

11 (B) complies with the Head Start perform12 ance standards as in effect under section

13 641A(a) of the Head Start Act (42 U.S.C.

14 9836a(a)).

15 (12) REGIONAL CORPORATION.—The term ‘‘Re16 gional Corporation’’ means an entity listed in section

17 419(4)(B) of the Social Security Act (42 U.S.C.

18 619(4)(B)).

19 (13) SECRETARY.—The term ‘‘Secretary’’

20 means the Secretary of Health and Human Services.

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

22 the several States, the District of Columbia, the

23 Commonwealth of Puerto Rico, Guam, American

24 Samoa, or the Commonwealth of the Northern Mar25 iana Islands.
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1 (15) TRAINING.—The term ‘‘training’’ means

2 instruction in early learning that—

3 (A) is required for certification under

4 State and local laws, regulations, and policies;

5 (B) is required to receive a nationally or

6 State recognized credential or its equivalent;

7 (C) is received in a postsecondary edu8 cation program focused on early learning or

9 early childhood development in which the indi10 vidual is enrolled; or

11 (D) is provided, certified, or sponsored by

12 an organization that is recognized for its exper13 tise in promoting early learning or early child14 hood development.

15 (16) YOUNG CHILD.—The term ‘‘young child’’

16 means any child from birth to the age of mandatory

17 school attendance in the State where the child re18 sides.

19 SEC. 3254. PROHIBITIONS.

20 (a) PARTICIPATION NOT REQUIRED.—No person, in21 cluding a parent, shall be required to participate in any

22 program of early childhood education, early learning, par23 ent education, or developmental screening pursuant to the

24 provisions of this chapter.
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1 (b) RIGHTS OF PARENTS.—Nothing in this chapter

2 shall be construed to affect the rights of parents otherwise

3 established in Federal, State, or local law.

4 (c) NONDUPLICATION.—No funds provided under

5 this chapter shall be used to carry out an activity funded

6 under another provision of law providing for Federal child

7 care or early learning programs, unless an expansion of

8 such activity is identified in the local needs assessment

9 and performance goals under this chapter.

10 SEC. 3255. AUTHORIZATION AND APPROPRIATION OF

11 FUNDS.

12 There are authorized to be appropriated to the De13 partment of Health and Human Services to carry out this

14 chapter—

15 (1) $1,000,000,000 for fiscal year 2002;

16 (2) $1,500,000,000 for fiscal year 2003; and

17 (3) such sums as may be necessary for fiscal

18 years 2004 and 2005.

19 SEC. 3256. ALLOTMENTS TO STATES.

20 (a) AMOUNTS RESERVED.—

21 (1) TERRITORIES AND POSSESSIONS.—The Secretary shall reserve not more than 1 22 ⁄2 of 1 percent

23 of the funds appropriated to carry out this chapter

24 for any fiscal year for distribution to Guam, Amer25 ican Samoa, and the Commonwealth of the Northern
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1 Mariana Islands, to be allotted in accordance with

2 their respective needs.

3 (2) INDIAN TRIBES AND TRIBAL ORGANIZA4 TIONS.—The Secretary shall reserve not more than

5 3 percent of the funds appropriated to carry out this

6 chapter for any fiscal year for distribution to Indian

7 tribes and tribal organizations with applications ap8 proved under subsection (c).

9 (b) ALLOTMENTS TO REMAINING STATES.—

10 (1) GENERAL AUTHORITY.—From the funds

11 appropriated to carry out this chapter for any fiscal

12 year remaining after reserving funds under sub13 section (a), the Secretary shall allot to each State

14 (excluding Guam, American Samoa, and the Com15 monwealth of the Northern Mariana Islands) an

16 amount equal to the sum of—

17 (A) an amount that bears the same ratio

18 to 50 percent of such remainder as the product

19 of the young child factor of the State and the

20 allotment percentage of the State bears to the

21 sum of the corresponding products for all

22 States, and

23 (B) an amount that bears the same ratio

24 to 50 percent of such remainder as the product

25 of the school lunch factor of the State and the
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1 allotment percentage of the State bears to the

2 sum of the corresponding products for all

3 States.

4 (2) YOUNG CHILD FACTOR.—The term ‘‘young

5 child factor’’ means the ratio of the number of chil6 dren in the State under 5 years of age to the num7 ber of such children in all States as provided by the

8 most recent annual estimates of population in the

9 States by the Bureau of the Census.

10 (3) SCHOOL LUNCH FACTOR.—The term

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

12 of children in the State who are receiving free or re13 duced price lunches under the school lunch program

14 established under the National School Lunch Act

15 (42 U.S.C. 1751 et seq.) to the number of such chil16 dren in all the States as determined annually by the

17 Department of Agriculture.

18 (4) ALLOTMENT PERCENTAGE.—

19 (A) IN GENERAL.—The allotment percent20 age for a State is determined by dividing the

21 per capita income of all individuals in the

22 United States, by the per capita income of all

23 individuals in the State.

24 (B) LIMITATIONS.—If an allotment per25 centage determined under subparagraph (A)—
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1 (i) is more than 1.2 percent, then the

2 allotment percentage of that State shall be

3 considered to be 1.2 percent, and

4 (ii) is less than 0.8 percent, then the

5 allotment percentage of the State shall be

6 considered to be 0.8 percent. ––

7 (C) PER CAPITA INCOME.—For purposes

8 of subparagraph (A), per capita income shall

9 be—

10 (i) determined at 2-year intervals,

11 (ii) applied for the 2-year period be12 ginning on October 1 of the first fiscal

13 year beginning on the date such deter14 mination is made, and

15 (iii) equal to the average of the an16 nual per capita incomes for the most re17 cent period of 3 consecutive years for

18 which satisfactory data are available from

19 the Department of Commerce at the time

20 such determination is made.

21 (c) ALLOTMENTS TO INDIAN TRIBES AND TRIBAL

22 ORGANIZATIONS.—

23 (1) RESERVATION OF FUNDS.—From amounts

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

25 make allotments to Indian tribes and tribal organi-
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1 zations that submit applications under this sub2 section, to plan and carry out programs and activi3 ties to encourage child care providers to improve

4 their qualifications and to retain qualified child care

5 providers in the child care field.

6 (2) APPLICATIONS AND REQUIREMENTS.—An

7 application for an allotment to an Indian tribe or

8 tribal organization under this section shall provide

9 that—

10 (A) the applicant will coordinate, to the

11 maximum extent practicable, with the lead

12 agency in each State in which the applicant will

13 carry out such programs and activities, and

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

15 such audits of, programs and activities under

16 this chapter as the Secretary may require.

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

18 obtain from each appropriate Federal agency, the most re19 cent data and information necessary to determine the al20 lotments provided for in subsection (b).

21 (e) REALLOTMENTS.—

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

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

24 the Secretary determines will not be distributed to

25 the State for such fiscal year shall be reallotted by
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1 the Secretary to other States proportionately based

2 on allotments made under such subsection to such

3 States for such fiscal year.

4 (2) LIMITATIONS.—

5 (A) REDUCTION.—The amount of any re6 allotment to which a State is entitled to under

7 paragraph (1) shall be reduced to the extent

8 that such amount exceeds the amount that the

9 Secretary estimates will be distributed to the

10 State to make grants under this chapter.

11 (B) REALLOTMENTS.—The amount of

12 such reduction shall be reallotted proportion13 ately based on allotments made under sub14 section (b) to States with respect to which no

15 reduction in an allotment, or in a reallotment,

16 is required by this subsection.

17 (3) AMOUNTS REALLOTTED.—For purposes of

18 this chapter (other than this subsection and sub19 section (b)), any amount reallotted to a State under

20 this subsection shall be considered to be part of the

21 allotment made under subsection (b) to the State.

22 (f) FEDERAL SHARE.—

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

24 cost of making grants under this chapter shall be 85

25 percent for the first and second years of the grant,
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1 80 percent for the third and fourth years of the

2 grant, and 75 percent for the subsequent years of

3 the grant.

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

5 share of the cost of making grants under this chap6 ter may be contributed in cash or in kind, fairly

7 evaluated, including facilities, equipment, or services,

8 which may be provided from State or local public

9 sources, or through donations from private entities.

10 For the purposes of this paragraph the term ‘‘facili11 ties’’ includes the use of facilities, but the term

12 ‘‘equipment’’ means donated equipment and not the

13 use of equipment.

14 (g) MAINTENANCE OF EFFORT.—The Secretary shall

15 not make a grant under this chapter to any State unless

16 the Secretary first determines that the total expenditures

17 by the State and its political subdivisions to support early

18 learning programs (other than funds used to pay the non19 Federal share under subsection (f)(2)) for the fiscal year

20 for which the determination is made is equal to or greater

21 than such expenditures for the preceding fiscal year.

22 (h) SUPPLEMENT NOT SUPPLANT.—Amounts re23 ceived under this chapter shall be used to supplement and

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

25 expended to promote early learning.
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1 (i) SPECIAL RULE.—If funds appropriated to carry

2 out this chapter are less than $150,000,000 for any fiscal

3 year, the Secretary shall make grants for the fiscal year

4 directly to Local Councils, on a competitive basis, to pay

5 the Federal share of the cost of carrying out early learning

6 programs in the locality served by the Local Council. In

7 carrying out the preceding sentence—

8 (1) subsection (g) of this section, section

9 3257(b), and section 3259(b)(4) shall not apply;

10 (2) the Secretary shall provide such technical

11 assistance and monitoring as necessary to ensure

12 that the use of the funds by Local Councils and the

13 distribution of the funds to Local Councils are con14 sistent with this chapter; and

15 (3) subject to paragraph (1), the Secretary

16 shall assume the responsibilities of the Lead State

17 Agency under this chapter, as appropriate.

18 SEC. 3257. ADMINISTRATIVE COSTS.

19 (a) FEDERAL ADMINISTRATIVE COSTS.—The Sec20 retary may use not more than 3 percent of the amount

21 appropriated under section 3255 for a fiscal year to pay

22 for the administrative costs of carrying out this chapter,

23 including the monitoring and evaluation of State and local

24 efforts.
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1 (b) STATE ADMINISTRATIVE COSTS.—A State that

2 receives a grant under this chapter may use—

3 (1) not more than 2 percent of the funds made

4 available through the grant to carry out activities

5 designed to coordinate early learning programs on

6 the State level, including programs funded or oper7 ated by the State educational agency, health, chil8 dren and family, and human service agencies, and

9 any State-level collaboration or coordination council

10 involving early learning and education, such as the

11 entities funded under section 640(a)(5) of the Head

12 Start Act (42 U.S.C. 9835(a)(5));

13 (2) not more than 2 percent of the funds made

14 available through the grant for the administrative

15 costs of carrying out the grant program and the

16 costs of reporting State and local efforts to the Sec17 retary; and

18 (3) not more than 3 percent of the funds made

19 available through the grant for training, technical

20 assistance, and wage incentives provided by the

21 State to Local Councils.

22 SEC. 3258. STATE REQUIREMENTS.

23 (a) IN GENERAL.—The Secretary may make grants

24 to eligible States that comply with section 3259, to expand
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1 access to and quality of early learning programs that meet

2 requirements in section 3262.

3 (b) STATE APPLICATIONS.—

4 (1) IN GENERAL.—To be eligible to receive a

5 grant under subsection (a), a State shall submit an

6 application in accordance with this subsection to the

7 Secretary at such time, in such manner, and con8 taining such information as the Secretary may rea9 sonably require.

10 (2) CONTENTS OF STATE APPLICATION.—The

11 State shall include in such application a plan that

12 includes—

13 (A) a statement ensuring that the State

14 has identified a Lead State Agency to admin15 ister and monitor the grant and ensure State16 level coordination of early learning programs;

17 (B) a statement describing the manner in

18 which the Lead State Agency will allocate funds

19 received under this chapter to localities as re20 quired under section 3259;

21 (C) a description of how grant funds will

22 be used to improve access to and quality of

23 early learning programs as required under sec24 tion 3262;
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1 (D) a description of the performance goals

2 to be achieved by funds received under this

3 chapter and the measure to be used to evaluate

4 progress toward such goals; and

5 (E) a statement describing how the State

6 will provide technical assistance to ensure that

7 Local Councils receiving funds under this chap8 ter comply with the requirements of this chap9 ter.

10 SEC. 3259. STATE ADMINISTRATION.

11 (a) IN GENERAL.—For a State to be eligible to re12 ceive a grant under this chapter, the State shall appoint

13 a Lead State Agency to carry out the functions described

14 in subsection (b).

15 (b) LEAD STATE AGENCY.—

16 (1) IN GENERAL.—The Lead State Agency as

17 described in subsection (a) shall allocate funds in ac18 cordance with section 3258 to localities.

19 (2) LIMITATION.—The Lead State Agency shall

20 allocate not less than 93 percent of such funds that

21 have been provided to the State for a fiscal year

22 more than 1 locality.

23 (3) FUNCTIONS OF AGENCY.—In addition to al24 locating funds under paragraph (1), the Lead State

25 Agency shall—
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1 (A) advise and assist Local Councils in the

2 performance of their duties under this chapter;

3 (B) develop and submit the State applica4 tion and the State plan required under section

5 3258;

6 (C) evaluate and approve applications sub7 mitted by localities;

8 (D) ensure collaboration with respect to

9 assistance provided under this chapter between

10 the State agencies responsible for education,

11 child care, health and social services;

12 (E) prepare and submit to the Secretary

13 an annual report, after approval by the State

14 Council designated under subsection (c), which

15 shall include a statement describing the manner

16 in which funds received under section 3258 are

17 expended and documentation of the effects that

18 resources under this chapter have had on—

19 (i) the number of children in full day,

20 full year Head Start programs, as provided

21 under the Head Start Act (42 U.S.C. 9831

22 et seq.);

23 (ii) the number of infants and tod24 dlers in programs that provide comprehen25 sive Early Head Start services, as provided
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1 under the Head Start Act (42 U.S.C. 9831

2 et seq.);

3 (iii) the number of children attending,

4 and types of programs providing, pre5 kindergarten, including those with special

6 needs;

7 (iv) the linkages between early learn8 ing programs and health care services for

9 young children;

10 (v) linkages among early learning pro11 grams;

12 (vi) access to early learning activities

13 for young children with special needs;

14 (vii) expansion of the days or times

15 that children are served in existing early

16 learning programs;

17 (viii) removal of ancillary barriers to

18 early learning, including transportation dif19 ficulties, absence of programs during non20 traditional work times, and family afford21 ability; and

22 (ix) professional development, and re23 cruitment and retention incentives, for

24 caregivers.
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1 (4) STATE PREFERENCE.—In making grants to

2 Local Councils under this chapter, the State shall

3 give preference to supporting Local Councils that

4 meet criteria that are specified by the State and ap5 proved by the Secretary, for qualifying as serving

6 areas of greatest need for improving access to and

7 quality of early learning programs.

8 (c) STATE COUNCIL.—

9 (1) IN GENERAL.—The State Council referred

10 to in subsection (b)(3) shall be composed of a group

11 of representatives of agencies, institutions, and other

12 entities, as described in paragraphs (2) and (3), that

13 provide child care or early learning services in the

14 State.

15 (2) MEMBERSHIP.—Except as provided in para16 graph (6), the chief executive officer of the State

17 shall appoint to the State Council at least 1 rep18 resentative from—

19 (A) the office of the chief executive officer

20 of the State;

21 (B) the State educational agency;

22 (C) the State agency administering funds

23 received under the Child Care and Development

24 Block Grant Act of 1990 (42 U.S.C. 9858 et

25 seq.);
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1 (D) the State social services agency;

2 (E) the State Head Start association;

3 (F) organizations representing parents

4 within the State;

5 (G) resource and referral agencies within

6 the State; and

7 (H) specialists in early child development.

8 (3) ADDITIONAL MEMBERS.—In addition to

9 representatives appointed under subparagraph (2),

10 the chief executive officer of the State may appoint

11 to the State Council additional representatives

12 from—

13 (A) the State Board of Education;

14 (B) the State health agency;

15 (C) the State labor or employment agency;

16 (D) organizations representing teachers;

17 (E) organizations representing business;

18 and

19 (F) organizations representing labor.

20 (4) REPRESENTATION.—To the extent prac21 ticable, the chief executive officer of the State shall

22 appoint representatives under subparagraphs (2)

23 and (3) in a manner that is diverse or balanced ac24 cording to the race, ethnicity, and gender of its

25 members.
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1 (5) FUNCTIONS OF THE COUNCIL.—The State

2 Council shall—

3 (A) conduct a needs and resources assess4 ment, or use such an assessment if conducted

5 not later than 2 years prior to the date of en6 actment of this chapter, to—

7 (i) determine where early learning

8 programs are lacking or are inadequate

9 within the State, with particular attention

10 to poor urban and rural areas, and what

11 special services are needed within the

12 State, such as services for children whose

13 native language is a language other than

14 English; and

15 (ii) identify all existing State-funded

16 early learning programs, and, to the extent

17 practical, other programs serving pre18 kindergarten children in the State, includ19 ing parent education programs, and to

20 specify which programs might be expanded

21 or upgraded with the use of funds received

22 under section 3255; and

23 (B) based on the assessment described in

24 subparagraph (A), determine funding priorities
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1 for amounts received under section 3255 for the

2 State.

3 (6) DESIGNATING AN EXISTING ENTITY AS

4 STATE COUNCIL.—To the extent that a State has a

5 State Council or a entity that functions as such be6 fore the date of enactment of this chapter that is

7 comparable to the State Council described in this

8 subsection, the State shall be considered to be in

9 compliance with this subsection.

10 SEC. 3260. LOCAL APPLICATION.

11 (a) IN GENERAL.—To be eligible to receive a grant

12 under this chapter, a Local Council shall submit an appli13 cation to the Lead State Agency at such time, in such

14 manner, and containing such information as the Lead

15 Agency may require.

16 (b) CONTENTS.—An application submitted under

17 subsection (a) shall include a statement containing an as18 surance that the local government entity, Indian tribe, Re19 gional Corporation, or Native Hawaiian entity has estab20 lished or designated a Local Council under section

21 3261(a), and the Local Council has developed a local plan

22 for carrying out early learning programs under this chap23 ter that includes—

24 (1) a needs and resources assessment con25 cerning early learning services and access to such
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1 services by families, and a statement describing how

2 early learning programs will be funded consistent

3 with the assessment;

4 (2) a statement of how the Local Council will

5 ensure that funded programs will meet the perform6 ance goals referred to in section 3258(b)(2)(D) es7 tablished by the State; and

8 (3) a description of how the Local Council will

9 form collaboratives among local child care, social,

10 and health services and educational providers to

11 maximize resources and concentrate efforts on areas

12 of greatest need.

13 SEC. 3261. LOCAL ADMINISTRATION.

14 (a) LOCAL COUNCIL.—

15 (1) IN GENERAL.—To be eligible to receive a

16 grant under this chapter, a local government entity,

17 Indian tribe, Regional Corporation or Native Hawai18 ian entity, as appropriate, shall establish or des19 ignate a Local Council, which shall be composed

20 of—

21 (A) representatives of local agencies and

22 organizations directly affected by early learning

23 programs assisted under this chapter;

24 (B) parents or representatives of families

25 with young children;
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1 (C) other individuals concerned with early

2 learning issues in the locality, such as rep3 resentative entities providing elementary edu4 cation, child care resource and referral services,

5 early learning opportunities, child care, and

6 health services; and

7 (D) other key community leaders.

8 (2) DESIGNATING EXISTING ENTITY.—If a local

9 government entity, Indian tribe, Regional Corpora10 tion, or Native Hawaiian entity has, before the date

11 of enactment of the Early Learning Development

12 Act, a Local Council or a regional entity that is

13 comparable to the Local Council described in para14 graph (1), the entity, tribe, or corporation may des15 ignate the council or entity as a Local Council under

16 this chapter, and shall be considered to have estab17 lished a Local Council in compliance with this sub18 section.

19 (3) FUNCTIONS.—The Local Council shall be

20 responsible for preparing and submitting the appli21 cation described in section 3260.

22 (b) ADMINISTRATION.—

23 (1) ADMINISTRATIVE COSTS.—Not more than 7

24 percent of the funds received by a Local Council

25 under this chapter shall be used to pay for the ad-
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1 ministrative costs of the Local Council in carrying

2 out this chapter.

3 (2) FISCAL AGENT.—A Local Council may des4 ignate any entity with a demonstrated capacity for

5 administering grants, that is affected by, or con6 cerned with, early learning issues, including the

7 State, to serve as fiscal agent for the administration

8 of grant funds received by the Local Council under

9 this chapter.

10 SEC. 3262. USE OF FUNDS.

11 (a) IN GENERAL.—Grants received under this chap12 ter by Local Councils shall be used in accordance with this

13 chapter to provide funds to service providers to—

14 (1) increase the number of children served in

15 State prekindergarten education programs;

16 (2) increase the number of Head Start pro17 grams providing full working day, full calendar year

18 Head Start services;

19 (3) increase the number of children served in

20 Early Head Start programs carried out under sec21 tion 645A of the Head Start Act (42 U.S.C. 9840a);

22 (4) enhance the quality of and access to edu23 cation and comprehensive services and support serv24 ices provided through the Child Care and Develop25 ment Block Grant Act of 1990 (42 U.S.C. 9858 et
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1 seq.) to child care programs and providers, including

2 health screening and diagnosis of children, parent

3 involvement and parent education, nutrition services

4 and education, staff and personnel training in early

5 childhood development, and upgrading the salaries of

6 early childhood development staff, and the develop7 ment of salary schedules for staff with varying levels

8 of experience, expertise and education;

9 (5) develop linkages among early learning pro10 grams within a community and between early learn11 ing programs and health care services for young

12 children in ways that facilitate greater access to

13 early learning programs;

14 (6) increase access to and quality of early learn15 ing opportunities for young children with special

16 needs, including migratory children, children with

17 limited English proficiency, and children with devel18 opmental delays, by facilitating coordination with

19 other programs serving such young children;

20 (7) improve the quality of early learning pro21 grams through professional development and train22 ing activities, increased compensation, and recruit23 ment and retention incentives for early learning pro24 viders;
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1 (8) remove ancillary barriers to early learning,

2 including transportation difficulties and family af3 fordability of early learning programs;

4 (9) increase access to home visitation programs

5 that are designed to improve early learning if serv6 ices are provided by staff who are given sufficient

7 training, and clinical and administrative supervision,

8 by a registered nurse or a qualified early childhood

9 professional;

10 (10) improve coordination between localities

11 carrying out early learning programs and persons

12 providing early intervention services under part C of

13 the Individuals with Disabilities Education Act (20

14 U.S.C. 1431 et seq.); or

15 (11) increase the number of child care providers

16 serving families during nontraditional work time if

17 such providers are licensed by the State.

18 SEC. 3263. REPEALER.

19 The Early Learning Opportunities Act (title VIII of

20 the Departments of Labor, Health and Human Services,

21 and Education, and Related Agencies Appropriations Act,

22 2001) (as enacted into law by section 1(a)(1) of Public

23 Law 106–554) is repealed.
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1 SEC. 3264. EFFECTIVE DATE.

2 This chapter shall take effect on the 1st day of the

3 1st fiscal year that begins after the date of the enactment

4 of this Act.

5 CHAPTER 5—CHILD CARE FACILITIES

6 FINANCING

7 SEC. 3271. SHORT TITLE.

8 This chapter may be cited as the ‘‘Child Care Facili9 ties Financing Act’’.

10 SEC. 3272. TECHNICAL AND FINANCIAL ASSISTANCE

11 GRANTS.

12 (a) DEFINITIONS.—In this section:

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

14 care facility’’ means a center-based or home-based

15 child care facility.

16 (2) ELIGIBLE INTERMEDIARY.—The term ‘‘eli17 gible intermediary’’ means a private, nonprofit inter18 mediary organization that has demonstrated experi19 ence in—

20 (A) providing technical or financial assist21 ance for the construction and renovation of

22 physical facilities;

23 (B) providing technical or financial assist24 ance to child care providers; and
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1 (C) securing private sources for capital fi2 nancing of child care or other low-income com3 munity development.

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

5 recipient’’ means—

6 (A) any existing or new center-based or

7 home-based child care provider that provides

8 services to eligible children under a program

9 carried out under the Child Care and Develop10 ment Block Grant Act of 1990 (42 U.S.C. 9858

11 et seq.), or another program serving low-income

12 children as determined by the Secretary; and

13 (B) any organization in the process of es14 tablishing a center-based or home-based child

15 care program or otherwise seeking to provide

16 child care services to children described in sub17 paragraph (A).

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

19 the Secretary of Health and Human Services.

20 (b) GRANT AUTHORITY.—The Secretary may award

21 grants on a competitive basis in accordance with this sec22 tion to eligible intermediaries to assist the intermediaries

23 in carrying out the activities described in subsection (e).

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

25 under this section an eligible intermediary shall submit to
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1 the Secretary an application, in such form and containing

2 such information as the Secretary may require.

3 (d) PRIORITY.—In awarding grants under this sec4 tion the Secretary shall give a priority to applicants under

5 subsection (c) that serve low-income areas or individuals.

6 (e) USE OF FUNDS.—

7 (1) REVOLVING FUND.—Each eligible inter8 mediary that receives a grant under this section

9 shall deposit the grant amount into a child care re10 volving fund established by the eligible intermediary.

11 (2) PAYMENTS FROM FUND.—Subject to sub12 section (f), from amounts deposited into the revolv13 ing fund under paragraph (1), each eligible inter14 mediary shall provide technical and financial assist15 ance (in the form of loans, grants, investments,

16 guarantees, interest subsidies, and other appropriate

17 forms of assistance) to eligible recipients to pay for

18 the Federal share of the cost of the acquisition, con19 struction, or improvement of child care facilities or

20 equipment, or for the improvement of related man21 agement and business practices, for each such recipi22 ent. The amounts may be used solely for the purpose

23 of providing technical or financial assistance.

24 (3) LOAN REPAYMENTS AND INVESTMENT PRO25 CEEDS.—Any amount received by an eligible inter-
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1 mediary from an eligible recipient in the form of a

2 loan repayment or investment proceeds shall be de3 posited into the child care revolving fund of the eligi4 ble intermediary for redistribution to other eligible

5 recipients in accordance with this section.

6 (f) FEDERAL SHARE.—

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

8 cost described in subsection (e)(2) shall be not more

9 than 50 percent.

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

11 share of the cost may be provided in cash or in kind,

12 fairly evaluated, including plant, equipment, or serv13 ices.

14 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

15 authorized to be appropriated to carry out this section

16 $500,000,000 for each of fiscal years 2002 through 2006.

17 Subtitle D—Head Start Access and

18 Improvement

19 SEC. 3301. AUTHORIZATION OF APPROPRIATIONS.

20 Section 639(a) of the Head Start Act (42 U.S.C.

21 9834(a)) is amended to read as follows:

22 ‘‘(a) There are authorized to be appropriated to carry

23 out this subchapter—

24 ‘‘(1) $7,199,812,000 for fiscal year 2002;

25 ‘‘(2) $8,000,000,000 for fiscal year 2003;
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1 ‘‘(3) $9,000,000,000 for fiscal year 2004;

2 ‘‘(4) $10,000,000,000 for fiscal year 2005;

3 ‘‘(5) $11,002,000,000 for fiscal year 2006;

4 ‘‘(6) $12,200,000,000 for fiscal year 2007;

5 ‘‘(7) $13,605,000,000 for fiscal year 2008;

6 ‘‘(8) $15,275,000,000 for fiscal year 2009;

7 ‘‘(9) $17,280,000,000 for fiscal year 2010; and

8 ‘‘(10) $19,720,000,000 for fiscal year 2011.’’.

9 Subtitle E—Education

10 Improvements

11 Chapter 1—Increasing Access to Quality

12 Prekindergarten Programs

13 SEC. 3401. PREKINDERGARTEN PROGRAMS.

14 Title X of the Elementary and Secondary Education

15 Act of 1965 (20 U.S.C. 8001 et seq.) is amended—

16 (1) by redesignating part L as part N; and

17 (2) by inserting after part K the following:

18 ‘‘PART L—PREKINDERGARTEN PROGRAMS

19 ‘‘SEC. 10996A. FINDINGS.

20 ‘‘Congress finds the following:

21 ‘‘(1) Countless studies have shown what every

22 parent already knows: High-quality preschool edu23 cation programs work. Such programs prepare chil24 dren to learn when they go to school, and increase

25 the success of students throughout their lives.
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1 ‘‘(2) Children who get a high-quality prekinder2 garten education are less likely to repeat a grade

3 level and have less need for special education in4 struction than those with no prekindergarten experi5 ence.

6 ‘‘(3) Prekindergarten programs make a signifi7 cant difference in the lives of children from low-in8 come families. A recent study found that children in

9 high-quality child care programs had better thinking

10 and attention skills, better mathematics and pre11 reading skills, and fewer behavioral problems.

12 ‘‘(4) In a study following children to age 21

13 who received high-quality early childhood education,

14 such children were more likely to have enrolled in

15 college, been employed, and delayed parenthood.

16 ‘‘SEC. 10996B. DEFINITIONS.

17 ‘‘In this part:

18 ‘‘(1) PREKINDERGARTEN.—The term ‘pre19 kindergarten’ means a program serving children

20 ages 3, 4, and 5 years old that supports children’s

21 cognitive, social, emotional, and physical develop22 ment and helps prepare children for the transition to

23 kindergarten.
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1 ‘‘(2) ELIGIBLE PREKINDERGARTEN PRO2 VIDER.—The term ‘eligible prekindergarten provider’

3 means—

4 ‘‘(A) a child care program or Head Start

5 agency under the Head Start Act (42 U.S.C.

6 9831 et seq.) that—

7 ‘‘(i) has met applicable State licensing

8 requirements and has obtained accredita9 tion by a national accrediting body with

10 demonstrated experience in accrediting

11 child care programs, prekindergarten pro12 grams, or schools; or

13 ‘‘(ii) agrees to obtain such accredita14 tion not later than 3 years after receipt of

15 a grant under this part; and

16 ‘‘(B) a local educational agency in partner17 ship with an early childhood program, organiza18 tion, or agency that serves prekindergarten

19 school children.

20 ‘‘(3) PREKINDERGARTEN TEACHER.—The term

21 ‘prekindergarten teacher’ means an individual who

22 has, or is working toward, a bachelor of arts degree

23 in early childhood development.
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1 ‘‘SEC. 10996C. PROGRAM AUTHORIZED.

2 ‘‘(a) IN GENERAL.—From amounts made available

3 under section 10996G, the Secretary may provide grants

4 to States with approved applications under subsection

5 (b)(2) for the purpose of enabling to States to award sub6 grants to eligible prekindergarten providers to establish,

7 enhance, or expand prekindergarten programs.

8 ‘‘(b) STATE AGENCY.—

9 ‘‘(1) IN GENERAL.—A State desiring a grant

10 under this part shall designate a State agency to ad11 minister the grant.

12 ‘‘(2) APPLICATION.—

13 ‘‘(A) IN GENERAL.—With respect to a

14 State desiring a grant under this part, the

15 State agency designated under paragraph (1)

16 shall submit an application to the Secretary at

17 such time, in such manner, and containing such

18 information as the Secretary may require.

19 ‘‘(B) CONTENTS.—The application sub20 mitted under subparagraph (A) shall include—

21 ‘‘(i) an assurance that the State will

22 provide non-Federal matching funds, for

23 carrying out the programs to be funded by

24 a grant under this part, in an amount

25 equal to not less than 20 percent of the

26 grant award; and
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1 ‘‘(ii) a description of—

2 ‘‘(I) how grant funds will be used

3 to expand or enhance existing efforts

4 across the State in providing access to

5 high quality prekindergarten pro6 grams;

7 ‘‘(II) how the State will collabo8 rate with local child care agencies and

9 councils, including local child care re10 source and referral agencies;

11 ‘‘(III) how grant funds will be

12 used to supplement and not supplant

13 existing Federal, State, local and pri14 vate funds used for prekindergarten

15 programs;

16 ‘‘(IV) how the State will ensure

17 that grant funds are provided to a

18 range of types of eligible prekinder19 garten providers;

20 ‘‘(V) how the State will help eli21 gible prekindergarten providers at22 tract and retain qualified prekinder23 garten teachers;

24 ‘‘(VI) how the State will identify

25 eligible prekindergarten providers and
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1 identify children to receive prekinder2 garten education; and

3 ‘‘(VII) how the State will give

4 priority in awarding subgrants under

5 paragraph (3)(B) to full-time pre6 kindergarten programs, including the

7 expansion of existing part-time pro8 grams into full-time programs.

9 ‘‘(3) DUTIES.—The State agency designated

10 under paragraph (1) shall—

11 ‘‘(A) receive and administer grant funds

12 received under this part;

13 ‘‘(B) award subgrants, from such grant

14 funds received, to eligible prekindergarten pro15 viders to carry out section 10996E; and

16 ‘‘(C) conduct evaluations of prekinder17 garten programs carried out by eligible pre18 kindergarten providers that receive subgrants

19 under subparagraph (B).

20 ‘‘SEC. 10996D. LOCAL APPLICATIONS.

21 ‘‘(a) IN GENERAL.—An eligible prekindergarten pro22 vider that desires to receive a subgrant under this part

23 shall submit an application to the appropriate State agen24 cy designated under section 10996C(b)(1) at such time,
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1 in such manner, and containing such information as such

2 State agency may reasonably require.

3 ‘‘(b) CONTENT.—An application submitted under

4 subsection (a), at a minimum, shall—

5 ‘‘(1) demonstrate a need for the establishment,

6 enhancement, or expansion of a prekindergarten pro7 gram;

8 ‘‘(2) describe how the eligible prekindergarten

9 provider will collaborate with local early childhood

10 councils and agencies;

11 ‘‘(3) provide an assurance that each individual

12 hired as a teacher by the eligible prekindergarten

13 provider is qualified to teach children at the pre14 kindergarten level;

15 ‘‘(4) provide an assurance that the ratio of

16 teacher or child development specialist to children at

17 each prekindergarten program administered by the

18 provider will not exceed 1–10;

19 ‘‘(5) provide a description of how funds will be

20 used to coordinate with and enhance, but not dupli21 cate or supplant, early childhood programs serving

22 eligible children that exist in the community;

23 ‘‘(6) describe how the eligible prekindergarten

24 provider will use a collaborative process with organi25 zations and members of the community that have an
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1 interest and experience in early childhood develop2 ment and education to establish, enhance, or expand

3 prekindergarten programs;

4 ‘‘(7) describe how the program to be funded

5 under the subgrant will meet the diverse needs of

6 children, ages 3 through 5, in the community who

7 are not enrolled in kindergarten, including children

8 with disabilities or whose native language is other

9 than English;

10 ‘‘(8) describe how the eligible prekindergarten

11 provider will collaborate with local schools to ensure

12 a smooth transition for participating students from

13 prekindergarten to kindergarten and early elemen14 tary education;

15 ‘‘(9) describe the results the prekindergarten

16 program is intended to achieve, and what tools will

17 be used to measure the progress in attaining those

18 results; and

19 ‘‘(10) provide an assurance that none of the

20 funds received under this part will be used for the

21 construction or renovation of existing or new facili22 ties (except for minor remodeling needed to accom23 plish the purposes of this part).
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1 ‘‘SEC. 10996E. LOCAL USES OF FUNDS.

2 ‘‘(a) IN GENERAL.—An eligible prekindergarten pro3 vider that receives a subgrant under this part shall use

4 funds received under such subgrant to establish, enhance,

5 or expand prekindergarten programs for children, ages 3

6 through 5, who are not enrolled in kindergarten,

7 including—

8 ‘‘(1) providing a program that focuses on the

9 developmental needs of participating children, in10 cluding their social, cognitive, physical, and lan11 guage-development needs, and uses research-based

12 approaches that build on competencies that lead to

13 school success, particularly in language and literacy

14 development and in reading;

15 ‘‘(2) paying the costs of purchasing educational

16 equipment, including educational materials, nec17 essary to provide a high quality program;

18 ‘‘(3) pursuing accreditation by a national ac19 creditation body with demonstrated experience in ac20 creditation of prekindergarten programs, to be ob21 tained not later than 3 years after the date on which

22 funds are first received under this part;

23 ‘‘(4) helping prekindergarten teachers pursue

24 and attain the credential and degree requirements

25 established by the State and provide a stipend for
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1 attaining educational or professional development;

2 and

3 ‘‘(5) meeting the needs of working parents.

4 ‘‘(b) PERMISSIBLE USES OF FUNDS.—An eligible

5 prekindergarten provider that receives a subgrant under

6 this part may use funds received under such subgrant to

7 pay for transporting students to and from a prekinder8 garten program.

9 ‘‘SEC. 10996F. REPORTING.

10 ‘‘(a) LOCAL REPORTS.—Each eligible prekinder11 garten provider that receives a subgrant under this part

12 shall submit to the State agency designated under section

13 10996C(b)(1), not later than 18 months after the date

14 on which the provider first receives such subgrant, a re15 port relating to the period for which subgrant funds were

16 received, containing information on—

17 ‘‘(1) the number and ages of children served by

18 the provider, including information disaggregated by

19 family income, race, disability, native language;

20 ‘‘(2) the number of hours of service per day and

21 number of months of service;

22 ‘‘(3) the total number of prekindergarten teach23 ers employed by the provider; and

24 ‘‘(4) other sources of Federal, State, local, and

25 private funds used to operate the prekindergarten
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1 program for which subgrants funds were received

2 under this part.

3 ‘‘(b) REPORT TO CONGRESS.—The Secretary shall

4 submit an annual report to Congress that evaluates the

5 prekindergarten programs established, enhanced, or ex6 panded under this part.

7 ‘‘SEC. 10996G. AUTHORIZATION OF APPROPRIATIONS.

8 ‘‘There are authorized to be appropriated to carry out

9 this part $2,000,000,000 for fiscal year 2002,

10 $4,000,000,000 for fiscal year 2003, $5,000,000,000 for

11 fiscal year 2004, $8,000,000,000 for fiscal year 2005, and

12 $10,000,000,000 for fiscal year 2006.’’.

13 Chapter 2—Expanding Early Literacy Efforts

14 SEC. 3411. EARLY LITERACY.

15 Part C of Title II of the Elementary and Secondary

16 Education Act of 1965 (20 U.S.C. 6661 et seq.) is

17 amended—

18 (1) by redesignating section 2251 as section

19 2251A;

20 (2) by inserting before section 2251A (as so re21 designated) the following:

22 ‘‘SEC. 2251. SHORT TITLE.

23 ‘‘This part may be cited as the ‘Reading Excellence

24 Act’.’’;
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1 (3) by redesignating section 2260 as section

2 2261;

3 (4) by inserting after section 2259 the fol4 lowing:

5 ‘‘SEC. 2260. EARLY LITERACY.

6 ‘‘(a) DEFINITIONS.—In this section:

7 ‘‘(1) EARLY CHILDHOOD EDUCATOR.—The

8 term ‘early childhood educator’ means an individual

9 who spends most or all of the program day working

10 directly with young children and who has responsi11 bility for implementing the educational components

12 of an early childhood education program.

13 ‘‘(2) EARLY CHILDHOOD EDUCATION PRO14 GRAM.—The term ‘early childhood education pro15 gram’ means a licensed or regulated child care cen16 ter, preschool, State-funded prekindergarten pro17 gram, or Head Start program.

18 ‘‘(3) EARLY LITERACY.—The term ‘early lit19 eracy’ means the development of young children’s

20 vocabulary, reading, and writing skills in preparation

21 to learn to read and write.

22 ‘‘(4) LOCAL EARLY LITERACY PARTNERSHIP.—

23 The term ‘local early literacy partnership’ means a

24 partnership, council, or consortia that includes rep25 resentatives of—
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1 ‘‘(A) the local educational agency;

2 ‘‘(B) teachers in kindergarten through 3d

3 grade who are responsible for reading instruc4 tion, including teachers working with children

5 whose native language is not English and chil6 dren with disabilities;

7 ‘‘(C) early childhood educators working in

8 a range of early childhood education programs

9 and with children in a range of ages from birth

10 through age 5, including educators working

11 with children whose native language is not

12 English and children with disabilities;

13 ‘‘(D) the local child care resource and re14 ferral agency, local child care council, Head

15 Start agency, and other appropriate local child

16 care agencies;

17 ‘‘(E) family literacy programs;

18 ‘‘(F) public libraries;

19 ‘‘(G) local institutions of higher education

20 that provide professional development in re21 search-based early literacy and scientifically

22 based reading instruction; and

23 ‘‘(H) parents of children in early childhood

24 programs and in schools.
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1 ‘‘(5) RESEARCH-BASED EARLY LITERACY.—The

2 term ‘research-based early literacy’ means the appli3 cation of rigorous, systemic and objective procedures

4 to obtain valid knowledge relevant to language and

5 literacy development and instruction that—

6 ‘‘(A) is based on recent national reports

7 synthesizing research on effective practices to

8 support children’s literacy and prevent later

9 reading difficulties;

10 ‘‘(B) draws on high quality quantitative re11 search;

12 ‘‘(C) uses systematic methods that draw on

13 observation or experiment;

14 ‘‘(D) relies on multiple measures;

15 ‘‘(E) meets accepted standards of evidence

16 as judged by a panel of independent experts;

17 and

18 ‘‘(F) draws on the knowledge of effective

19 teaching strategies for young children.

20 ‘‘(6) YOUNG CHILDREN.—The term ‘young chil21 dren’ means children from birth through age 5 (or

22 until mandatory school age as determined by the

23 State).

24 ‘‘(b) GRANT PROGRAM.—The Secretary shall award

25 grants to State educational agencies to enable such State
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1 educational agencies to award subgrants to local early lit2 eracy partnerships for the purpose of enhancing the early

3 literacy in early childhood programs serving children from

4 birth until kindergarten.

5 ‘‘(c) APPLICATION.—A State educational agency de6 siring a grant under this section shall submit an applica7 tion to the Secretary at such time, in such manner, and

8 containing such information as the Secretary may require,

9 including—

10 ‘‘(1) how the State educational agency will dis11 seminate information to a range of early childhood

12 education providers, organizations, local educational

13 agencies, and institutions of higher education re14 garding the partnership grants;

15 ‘‘(2) how the State educational agency will pro16 vide technical assistance to local early literacy part17 nerships by disseminating information on research

18 regarding early literacy curricula and teaching prac19 tice; and

20 ‘‘(3) how the State educational agency will co21 ordinate with other State agencies having responsi22 bility for early childhood education programs in the

23 selection of the local grantees and in providing tech24 nical assistance and information.
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1 ‘‘(d) ADMINISTRATION.—A State educational agency

2 receiving a grant under this section may reserve not more

3 than 2 percent of the grant funds received for administra4 tive purposes.

5 ‘‘(e) LOCAL EARLY LITERACY PARTNERSHIP APPLI6 CATION.—A local early literacy partnership desiring a

7 subgrant under this section shall submit an application to

8 the State educational agency at such time, in such man9 ner, and containing such information as the State edu10 cational agency may require. The application shall identify

11 the lead partner (which shall have a demonstrated history

12 of effective administration of large grants) that will act

13 as the fiscal agent and shall describe—

14 ‘‘(1) the roles and responsibilities of each part15 ner entity in the partnership and the resources that

16 will be made available to each such partner entity to

17 carry out those roles and responsibilities;

18 ‘‘(2) how the partnership will identify early

19 childhood education programs and early childhood

20 educators that would benefit from the services and

21 professional development to be provided by the part22 nership under this section;

23 ‘‘(3) how the partnership will coordinate Fed24 eral, State, local, and private resources related to

25 early literacy and family literacy;
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1 ‘‘(4) how the research-based early literacy cur2 ricula and materials will be made available to early

3 childhood education programs;

4 ‘‘(5) how ongoing professional development in

5 research-based early literacy will be provided to early

6 childhood educators in a range of early childhood

7 education programs, including the use of technology

8 to deliver such professional development as appro9 priate;

10 ‘‘(6) how the partnership will establish the pres11 ence of an early literacy specialist in the local child

12 care resource and referral agency or other appro13 priate early childhood education agency in order to

14 provide technical assistance and information to pro15 grams and early childhood educators;

16 ‘‘(7) how the services will build on existing early

17 literacy and family literacy programs and profes18 sional development in the community;

19 ‘‘(8) how the early literacy activities and profes20 sional development for early childhood educators will

21 be coordinated with the activities and professional

22 development of kindergarten teachers in the same

23 geographic area;
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1 ‘‘(9) how families will participate in early lit2 eracy programs to enhance their children’s language

3 and literacy progress;

4 ‘‘(10) how the partnership will collect and re5 port data as required under subsection (g); and

6 ‘‘(11) how the professional development and

7 other activities and materials to be supplied by the

8 partnership under this section will support the early

9 literacy of children whose native language is not

10 English, children with disabilities, and other children

11 at risk of having reading difficulties.

12 ‘‘(f) USES OF FUNDS.—The early literacy partner13 ship shall use funds for—

14 ‘‘(1) providing research-based early literacy

15 instruction methods, strategies, and curricula to

16 early childhood providers serving children from birth

17 through age 5 in a range of settings in the commu18 nity;

19 ‘‘(2) providing ongoing, regular, professional

20 development to early childhood educators in the se21 lection and use of research-based early literacy in22 struction methods, strategies, and curricula;

23 ‘‘(3) providing a stipend or bonus of sufficient

24 size to each childhood educator who receives the on25 going professional development in research-based
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1 early literacy, and who commits to remaining in the

2 same early childhood education program for a min3 imum of 1 additional full year;

4 ‘‘(4) establishing 1 or more early literacy spe5 cialists in the local child care resource and referral

6 agency or other appropriate local child care agency

7 or council to provide technical assistance and to dis8 seminate information;

9 ‘‘(5) coordinating the delivery of early literacy

10 and family literacy services within the community;

11 and

12 ‘‘(6) collecting and reporting information to the

13 State educational agency as required in subsection

14 (g).

15 ‘‘(g) EVALUATIONS AND REPORTS.—Each local part16 nership that receives a grant under this section shall sub17 mit a report to the State educational agency that

18 includes—

19 ‘‘(1) a description of the types of early child20 hood education programs that received services

21 through the grant, including disaggregated informa22 tion on the age, race, ethnicity, native language, dis23 ability status, gender, and family income of the chil24 dren served and the qualifications, by credential or
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1 degree, and compensation of the staff (including di2 rectors and teachers);

3 ‘‘(2) the extent to which professional develop4 ment in research-based early literacy was made ac5 cessible and used by early childhood education staff

6 in the local area;

7 ‘‘(3) how early literacy activities were coordi8 nated with family literacy programs and activities;

9 and

10 ‘‘(4) how each partner carried out the partner’s

11 respective roles and responsibilities under the appli12 cation.’’; and

13 (5) by amending section 2261 (as so redesig14 nated) by adding at the end the following:

15 ‘‘(3) FISCAL YEARS 2002 TO 2006.—There are

16 authorized to be appropriated to carry out this

17 part—

18 ‘‘(A) $500,000,000 for fiscal year 2002;

19 ‘‘(B) $600,000,000 for fiscal year 2003;

20 ‘‘(C) $700,000,000 for fiscal year 2004;

21 ‘‘(D) $850,000,000 for fiscal year 2005;

22 and

23 ‘‘(E) $1,000,000,000 for fiscal year

24 2006.’’.
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1 SEC. 3412. TECHNICAL AMENDMENTS.

2 The Elementary and Secondary Education Act of

3 1965 (20 U.S.C. 6301 et seq.) is amended—

4 (1) in section 1202(c)(1), by striking ‘‘section

5 2260(b)(3)’’ and inserting ‘‘section 2261(b)(3)’’;

6 (2) in section 2257, by striking ‘‘section

7 2260(b)(1)’’ and inserting ‘‘section 2261(b)(1)’’; and

8 (3) in section 2258, by striking ‘‘2260(b)(2)’’

9 and inserting ‘‘section 2261(b)(2)’’.

10 Chapter 3—Increasing the Availability of

11 Books

12 SEC. 3421. SHORT TITLE.

13 This chapter may be cited as the ‘‘Book Stamp Act’’.

14 SEC. 3422. FINDINGS.

15 Congress finds the following:

16 (1) Literacy is fundamental to all learning.

17 (2) Between 40 and 60 percent of the Nation’s

18 children do not read at grade level, particularly chil19 dren in families and school districts that are chal20 lenged by significant financial or social instability.

21 (3) Increased investments in child literacy are

22 needed to improve opportunities for children and the

23 efficacy of the Nation’s education investments.

24 (4) Increasing access to books in the home is

25 an important means of improving child literacy,

26 which can be accomplished nationally at modest cost.
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1 (5) Effective channels for book distribution al2 ready exist through child care providers.

3 SEC. 3423. DEFINITIONS.

4 In this chapter:

5 (1) EARLY LEARNING PROGRAM.—The term

6 ‘‘early learning’’, used with respect to a program,

7 means a program of activities designed to facilitate

8 development of cognitive, language, motor, and so9 cial-emotional skills in children under age 6 as a

10 means of enabling the children to enter school ready

11 to learn, such as a Head Start or Early Head Start

12 program carried out under the Head Start Act (42

13 U.S.C. 9831 et seq.), or a State pre-kindergarten

14 program.

15 (2) SECRETARY.—The term ‘‘Secretary’’ means

16 the Secretary of Health and Human Services.

17 (3) STATE.—The term ‘‘State’’ means the 50

18 States, the District of Columbia, the Commonwealth

19 of Puerto Rico, Guam, the United States Virgin Is20 lands, American Samoa, and the Commonwealth of

21 the Northern Mariana Islands.

22 (4) STATE AGENCY.—The term ‘‘State agency’’

23 means an agency designated under section 658D of

24 the Child Care and Development Block Grant Act of

25 1990 (42 U.S.C. 9858b).
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1 SEC. 3424. GRANTS TO STATE AGENCIES.

2 (a) ESTABLISHMENT OF PROGRAM.—The Secretary

3 shall establish and carry out a program to promote child

4 literacy and improve children’s access to books at home

5 and in early learning and other child care programs, by

6 making books available through early learning and other

7 child care programs.

8 (b) GRANTS.—

9 (1) IN GENERAL.—In carrying out the program,

10 the Secretary shall make grants to State agencies

11 from allotments determined under paragraph (2).

12 (2) ALLOTMENTS.—For each fiscal year, the

13 Secretary shall allot to each State an amount that

14 bears the same ratio to the total of the available

15 funds for the fiscal year as the amount the State re16 ceives under section 658O(b) of the Child Care and

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

18 9858m(b)) for the fiscal year bears to the total

19 amount received by all States under that section for

20 the fiscal year.

21 (c) APPLICATIONS.—To be eligible to receive an allot22 ment under this section, a State shall submit an applica23 tion to the Secretary at such time, in such manner, and

24 containing such information as the Secretary may require.

25 (d) ACCOUNTABILITY.—The provisions of sections

26 658I(b) and 658K(b) of the Child Care and Development
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1 Block Grant Act of 1990 (42 U.S.C. 9858g(b), 9858i(b))

2 shall apply to States receiving grants under this chapter,

3 except that references in those sections—

4 (1) to a chapter shall be considered to be ref5 erences to this chapter; and

6 (2) to a plan or application shall be considered

7 to be references to an application submitted under

8 subsection (c).

9 (e) DEFINITION.—In this section, the term ‘‘available

10 funds’’, used with respect to a fiscal year, means the total

11 of—

12 (1) the funds made available under section

13 416(c)(1) of title 39, United States Code for the fis14 cal year; and

15 (2) the amounts appropriated under section

16 3409 for the fiscal year.

17 SEC. 3425. CONTRACTS TO CHILD CARE RESOURCE AND

18 REFERRAL AGENCIES.

19 A State agency that receives a grant under section

20 3404 shall use funds made available through the grant

21 to enter into contracts with local child care resource and

22 referral agencies to carry out the activities described in

23 section 3406. The State agency may reserve not more than

24 3 percent of the funds made available through the grant
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1 to support a public awareness campaign relating to the

2 activities.

3 SEC. 3426. USE OF FUNDS.

4 (a) ACTIVITIES.—

5 (1) BOOK PAYMENTS FOR ELIGIBLE PRO6 VIDERS.—A child care resource and referral agency

7 that receives a contract under section 3405 shall use

8 the funds made available through the grant to pro9 vide payments for eligible early learning program

10 and other child care providers, on the basis of local

11 needs, to enable the providers to make books avail12 able, to promote child literacy and improve chil13 dren’s access to books at home and in early learning

14 and other child care programs.

15 (2) ELIGIBLE PROVIDERS.—To be eligible to re16 ceive a payment under paragraph (1), a provider

17 shall—

18 (A)(i) be a center-based child care pro19 vider, a group home child care provider, or a

20 family child care provider, described in section

21 658P(5)(A) of the Child Care and Development

22 Block Grant Act of 1990 (42 U.S.C.

23 9858n(5)(A)); or

24 (ii) be a Head Start agency designated

25 under section 641 of the Head Start Act (42
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1 U.S.C. 9836), an entity that receives assistance

2 under section 645A of such Act (42 U.S.C.

3 9840a) to carry out an Early Head Start pro4 gram or another provider of an early learning

5 program; and

6 (B) provide services in an area where chil7 dren face high risks of literacy difficulties, as

8 defined by the Secretary.

9 (b) RESPONSIBILITIES.—A child care resource and

10 referral agency that receives a contract under section 3405

11 to provide payments to eligible providers shall—

12 (1) consult with local individuals and organiza13 tions concerned with early literacy (including parents

14 and organizations carrying out the Reach Out and

15 Read, First Book, and Reading Is Fundamental pro16 grams) regarding local book distribution needs;

17 (2) make reasonable efforts to learn public de18 mographic and other information about local fami19 lies and child literacy programs carried out by the

20 eligible providers, as needed to inform the agency’s

21 decisions as the agency carries out the contract;

22 (3) coordinate local orders of the books made

23 available under this chapter;

24 (4) distribute, to each eligible provider that re25 ceives a payment under this chapter, not fewer than
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1 1 book every 6 months for each child served by the

2 provider for more than 3 of the preceding 6 months;

3 (5) use not more than 5 percent of the funds

4 made available through the contract to provide train5 ing and technical assistance to the eligible providers

6 on the effective use of books with young children at

7 different stages of development; and

8 (6) be a training resource for eligible providers

9 that want to offer parent workshops on developing

10 reading readiness.

11 (c) DISCOUNTS.—

12 (1) IN GENERAL.—Federal funds made avail13 able under this chapter for the purchase of books

14 may only be used to purchase books on the same

15 terms as are customarily available in the book indus16 try to entities carrying out nonprofit bulk book pur17 chase and distribution programs.

18 (2) TERMS.—An entity offering books for pur19 chase under this chapter shall be presumed to have

20 met the requirements of paragraph (1), absent con21 trary evidence, if the terms include a discount of 43

22 percent off the catalogue price of the books, with no

23 additional charge for shipping and handling of the

24 books.
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1 (d) ADMINISTRATION.—The child care resource and

2 referral agency may not use more than 6 percent of the

3 funds made available through the contract for administra4 tive costs.

5 SEC. 3427. REPORT TO CONGRESS.

6 Not later than 2 years of the date of enactment of

7 this chapter, the Secretary shall prepare and submit to

8 Congress a report on the implementation of the activities

9 carried out under this chapter.

10 SEC. 3428. SPECIAL POSTAGE STAMPS FOR CHILD LIT11 ERACY.

12 Chapter 4 of title 39, United States Code is amended

13 by adding at the end the following:

14 ‘‘§ 416. Special postage stamps for child literacy

15 ‘‘(a) In order to afford the public a convenient way

16 to contribute to funding for child literacy, the Postal Serv17 ice shall establish a special rate of postage for first-class

18 mail under this section. The stamps that bear the special

19 rate of postage shall promote childhood literacy and shall,

20 to the extent practicable, contain an image relating to a

21 character in a children’s book or cartoon.

22 ‘‘(b)(1) The rate of postage established under this

23 section—
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1 ‘‘(A) shall be equal to the regular first-class

2 rate of postage, plus a differential of not to exceed

3 25 percent;

4 ‘‘(B) shall be set by the Governors in accord5 ance with such procedures as the Governors shall by

6 regulation prescribe (in lieu of the procedures de7 scribed in chapter 36); and

8 ‘‘(C) shall be offered as an alternative to the

9 regular first-class rate of postage.

10 ‘‘(2) The use of the special rate of postage established

11 under this section shall be voluntary on the part of postal

12 patrons.

13 ‘‘(c)(1) Of the amounts becoming available for child

14 literacy pursuant to this section, the Postal Service shall

15 pay 100 percent to the Department of Health and Human

16 Services.

17 ‘‘(2) Payments made under this subsection to the De18 partment shall be made under such arrangements as the

19 Postal Service shall by mutual agreement with such De20 partment establish in order to carry out the objectives of

21 this section, except that, under those arrangements, pay22 ments to such agency shall be made at least twice a year.

23 ‘‘(3) In this section, the term ‘amounts becoming

24 available for child literacy pursuant to this section’

25 means—
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1 ‘‘(A) the total amounts received by the Postal

2 Service that the Postal Service would not have re3 ceived but for the enactment of this section; reduced

4 by

5 ‘‘(B) an amount sufficient to cover reasonable

6 costs incurred by the Postal Service in carrying out

7 this section, including costs attributable to the print8 ing, sale, and distribution of stamps under this sec9 tion,

10 as determined by the Postal Service under regulations that

11 the Postal Service shall prescribe.

12 ‘‘(d) It is the sense of Congress that nothing in this

13 section should—

14 ‘‘(1) directly or indirectly cause a net decrease

15 in total funds received by the Department of Health

16 and Human Services, or any other agency of the

17 Government (or any component or program of the

18 Government), below the level that would otherwise

19 have been received but for the enactment of this sec20 tion; or

21 ‘‘(2) affect regular first-class rates of postage

22 or any other regular rates of postage.

23 ‘‘(e) Special postage stamps made available under

24 this section shall be made available to the public beginning

25 on such date as the Postal Service shall by regulation pre-
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1 scribe, but in no event later than 12 months after the date

2 of enactment of this section.

3 ‘‘(f) The Postmaster General shall include in each re4 port provided under section 2402, with respect to any pe5 riod during any portion of which this section is in effect,

6 information concerning the operation of this section, ex7 cept that, at a minimum, each report shall include infor8 mation on—

9 ‘‘(1) the total amounts described in subsection

10 (c)(3)(A) that were received by the Postal Service

11 during the period covered by such report; and

12 ‘‘(2) of the amounts described in paragraph (1),

13 how much (in the aggregate and by category) was

14 required for the purposes described in subsection

15 (c)(3)(B).

16 ‘‘(g) This section shall cease to be effective at the

17 end of the 2-year period beginning on the date on which

18 special postage stamps made available under this section

19 are first made available to the public.’’.

20 SEC. 3429. AUTHORIZATION OF APPROPRIATIONS.

21 There is authorized to be appropriated to carry out

22 this chapter $50,000,000 for each of fiscal years 2002

23 through 2006.
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1 Chapter 4—Increased Accountability

2 SEC. 3431. LOW ACHIEVING CHILDREN MEET HIGH STAND3 ARDS.

4 The Elementary and Secondary Education Act of

5 1965 (20 U.S.C. 6301 et seq.) is amended in the heading

6 for title I by striking ‘‘DISADVANTAGED’’ and in7 serting ‘‘LOW-ACHIEVING’’.

8 SEC. 3432. PURPOSE AND INTENT.

9 Section 1001 of the Elementary and Secondary Edu10 cation Act of 1965 (20 U.S.C. 6301) is amended to read

11 as follows:

12 ‘‘SEC. 1001. FINDINGS; RECOGNITION OF NEED; STATEMENT

13 OF PURPOSE.

14 ‘‘(a) FINDINGS.—Congress finds the following:

15 ‘‘(1) Schools that enroll high concentrations of

16 children living in poverty face the greatest chal17 lenges, but effective educational strategies based on

18 scientifically based research can succeed in edu19 cating children to high standards.

20 ‘‘(2) High-poverty schools are much more likely

21 to be identified as failing to meet State standards

22 for satisfactory progress. As a result, these schools

23 are generally the most in need of additional re24 sources and technical assistance to build the capac-
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1 ity of these schools to address the many needs of

2 their students.

3 ‘‘(3) The educational progress of children par4 ticipating in programs under this title is closely as5 sociated with their being taught by a fully qualified

6 staff, particularly in schools with the highest con7 centrations of poverty, where paraprofessionals,

8 uncertified teachers, and teachers teaching out of

9 field frequently provide instructional services.

10 ‘‘(4) States, local educational agencies, and

11 schools should be held accountable for improving

12 student achievement, while being given appropriate

13 flexibility.

14 ‘‘(5) Programs funded under this title must

15 demonstrate increased effectiveness in improving

16 schools in order to ensure all children achieve to

17 high standards.

18 ‘‘(b) RECOGNITION OF NEED.—The Congress recog19 nizes the following:

20 ‘‘(1) Educational needs are particularly great

21 for low-achieving children in our Nation’s highest22 poverty schools, children with limited English pro23 ficiency, children of migrant workers, children with

24 disabilities, Indian children, children who are ne-
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1 glected or delinquent, and young children and their

2 parents who are in need of family literacy services.

3 ‘‘(2) Despite decades of education reform ef4 forts, a sizable achievement gap remains between

5 minority and nonminority students, and between dis6 advantaged students and their more advantaged

7 peers.

8 ‘‘(3) States, local educational agencies and

9 schools should be held accountable for improving the

10 academic achievement of all students, and for identi11 fying and turning around low-performing schools.

12 ‘‘(4) Federal education assistance is intended

13 not only to increase pupil achievement overall, but

14 also more specifically and importantly, to help en15 sure that all pupils, especially the disadvantaged,

16 meet challenging standards for curriculum content

17 and pupil performance. It can only be determined if

18 schools, local educational agencies, and States, are

19 reaching this goal if pupil achievement results are

20 disaggregated by at-risk categories.

21 ‘‘(c) PURPOSE AND INTENT.—The purpose and in22 tent of this title are to ensure that all children have a

23 fair and equal opportunity to obtain a high quality edu24 cation.
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1 SEC. 3433. AUTHORIZATION OF APPROPRIATIONS.

2 (a) ADDITIONAL ASSISTANCE.—Subsection (f) of sec3 tion 1002 of the Elementary and Secondary Education

4 Act of 1965 (20 U.S.C. 6302(f)) is amended to read as

5 follows:

6 ‘‘(f) SCHOOL IMPROVEMENT.—Each State may re7 serve for the purpose of carrying out its duties under sec8 tion 1116 and 1117, the greater of one-half of 1 percent

9 of the amount allocated under this part, or $200,000.’’.

10 (b) FEDERAL ACTIVITIES.—Subsection (g) of section

11 1002 of the Elementary and Secondary Education Act of

12 1965 (20 U.S.C. 6302(g)) is amended by striking ‘‘1995’’

13 each place it appears and inserting ‘‘2002’’.

14 (c) STATE ADMINISTRATION.—Section 1002 of the

15 Elementary and Secondary Education Act of 1965 (20

16 U.S.C. 6302) is amended by adding at the end the fol17 lowing:

18 ‘‘(h) STATE ADMINISTRATION.—

19 ‘‘(1) STATE RESERVATION.—Each State may

20 reserve, from the grants it receives under parts A,

21 C, and D, of this title, an amount equal to the

22 greater of—

23 ‘‘(A) 1 percent of the amount it received

24 under parts A, C, and D; or
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1 ‘‘(B) $400,000 ($50,000 for each outlying

2 area), to carry out administrative duties as3 signed under parts A, C, and D.

4 ‘‘(2) SPECIAL RULE.—The amount reserved by

5 each State under this subsection may not exceed the

6 amount of State funds expended by the State edu7 cational agency to administer elementary and sec8 ondary education programs in such State.

9 ‘‘(i) ASSISTANCE FOR LOCAL SCHOOL IMPROVE10 MENT.—

11 ‘‘(1) PROGRAM AUTHORIZED.—The Secretary

12 shall award grants to States to provide subgrants to

13 local educational agencies for the purpose of pro14 viding assistance for school improvement consistent

15 with section 1116. Such grants shall be allocated

16 among States, the Bureau of Indian Affairs, and the

17 outlying areas, in the same proportion to the grants

18 received by each State, the Bureau of Indian Affairs,

19 and the outlying areas for the fiscal year under

20 parts A, C, and D of this title. The Secretary shall

21 expeditiously allocate a portion of such funds to

22 States for the purpose of assisting local educational

23 agencies and schools that were in school improve24 ment status on the date preceding the date of enact25 ment of the Leave No Child Behind Act of 2001.
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1 ‘‘(2) REALLOCATIONS.—If a State does not

2 apply for funds under this subsection, the Secretary

3 shall reallocate such funds to other States in the

4 same proportion that funds are allocated under

5 paragraph (1).

6 ‘‘(3) STATE APPLICATIONS.—Each State edu7 cational agency that desires to receive funds under

8 this subsection shall submit an application to the

9 Secretary at such time, and containing such infor10 mation as the Secretary shall reasonably require, ex11 cept that such requirement shall be waived if a State

12 educational agency has submitted such information

13 as part of its State plan under this part. Each State

14 plan shall describe how such funds will be allocated

15 to ensure that the State educational agency and

16 local educational agencies comply with school im17 provement and corrective action requirements of sec18 tion 1116.

19 ‘‘(4) LOCAL EDUCATIONAL AGENCY GRANTS.—

20 A grant to a local educational agency under this

21 subsection shall be—

22 ‘‘(A) of sufficient size and scope to support

23 the activities required under sections 1116 and

24 1117, but not less than $50,000 and not more

25 than $500,000 to each participating school;
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1 ‘‘(B) integrated with other funds under

2 this Act; and

3 ‘‘(C) renewable for 2 additional 1-year pe4 riods if schools are making yearly progress con5 sistent with State and local educational agency

6 plans developed under section 1116.

7 ‘‘(5) PRIORITY.—The State, in awarding such

8 grants, shall give priority to local educational agen9 cies with the lowest achieving schools, that dem10 onstrate the greatest need for such funds, and that

11 demonstrate the strongest commitment to making

12 sure such funds are used to provide adequate re13 sources to enable such schools to meet the yearly

14 progress goals under State and local school improve15 ment and corrective action plans under section 1116.

16 ‘‘(6) ADMINISTRATIVE COSTS.—A State edu17 cational agency that receives a grant award under

18 this subsection may reserve not more than 5 percent

19 of such award for administration, evaluation, and

20 technical assistance expenses.

21 ‘‘(7) LOCAL AWARDS.—Each local educational

22 agency that applies for assistance under this sub23 section shall describe how it will provide the lowest

24 achieving schools the resources necessary to meet

25 yearly progress goals under State and local school
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1 improvement and corrective action plans under sec2 tion 1116.

3 ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.—

4 There are authorized to be appropriated to carry out

5 this subsection, $250,000,000 for fiscal year 2002,

6 $300,000,000 for fiscal year 2003, $350,000,000 for

7 fiscal year 2004, $400,000,000 for fiscal year 2005,

8 and $450,000,000 for fiscal year 2006.’’.

9 SEC. 3434. RESERVATION AND ALLOCATION.

10 Section 1003 of the Elementary and Secondary Edu11 cation Act of 1965 (20 U.S.C. 6303) is repealed.

12 SEC. 3435. STATE PLANS.

13 Section 1111 of the Elementary and Secondary Edu14 cation Act of 1965 (20 U.S.C. 6311) is amended to read

15 as follows:

16 ‘‘SEC. 1111. STATE PLANS.

17 ‘‘(a) PLANS REQUIRED.—

18 ‘‘(1) IN GENERAL.—Any State desiring to re19 ceive a grant under this part shall submit to the

20 Secretary a plan, developed in consultation with local

21 educational agencies, teachers, pupil services per22 sonnel, administrators (including administrators of

23 programs described in other parts of this title),

24 other staff, and parents, that satisfies the require25 ments of this section and that is coordinated with
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1 other programs under this Act, the Individuals with

2 Disabilities Education Act, the Carl D. Perkins Vo3 cational and Technical Education Act of 1998, and

4 the Head Start Act.

5 ‘‘(2) CONSOLIDATED PLAN.—A State plan sub6 mitted under paragraph (1) may be submitted as

7 part of a consolidated plan under section 10202.

8 ‘‘(b) STANDARDS, ASSESSMENTS, AND ACCOUNT9 ABILITY.—

10 ‘‘(1) CHALLENGING STANDARDS.—(A) Each

11 State plan shall demonstrate that the State has

12 adopted and implemented challenging content stand13 ards and challenging student performance standards

14 that will be used by the State, its local educational

15 agencies, and its schools to carry out this part, ex16 cept that a State shall not be required to submit

17 such standards to the Secretary.

18 ‘‘(B) The standards required by subparagraph

19 (A) shall be the same standards that the State ap20 plies to all schools and children in the State.

21 ‘‘(C) The State shall have such standards for

22 elementary school and secondary school children

23 served under this part in subjects determined by the

24 State, but including at least mathematics, reading

25 or language arts, and science, which shall include
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1 the same knowledge, skills, and levels of perform2 ance expected of all children.

3 ‘‘(D) Standards under this paragraph shall

4 include—

5 ‘‘(i) challenging content standards in aca6 demic subjects that—

7 ‘‘(I) specify what children are ex8 pected to know and be able to do;

9 ‘‘(II) contain coherent and rigorous

10 content; and

11 ‘‘(III) encourage the teaching of ad12 vanced skills; and

13 ‘‘(ii) challenging student performance

14 standards that—

15 ‘‘(I) are aligned with the State’s con16 tent standards;

17 ‘‘(II) describe 2 levels of high per18 formance, proficient and advanced, that

19 determine how well children are mastering

20 the material in the State content stand21 ards; and

22 ‘‘(III) describe a third level of per23 formance, basic, to provide complete infor24 mation about the progress of the lower

25 performing children toward achieving to
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1 the proficient and advanced levels of per2 formance.

3 ‘‘(E) For the subjects in which students will be

4 served under this part, but for which a State is not

5 required by subparagraphs (A), (B), and (C) to de6 velop, and has not otherwise developed such stand7 ards, the State plan shall describe a strategy for en8 suring that such students are taught the same

9 knowledge and skills and held to the same expecta10 tions as are all children.

11 ‘‘(2) ADEQUATE YEARLY PROGRESS.—

12 ‘‘(A) IN GENERAL.—Each State plan shall

13 demonstrate, based on assessments described

14 under paragraph (4), what constitutes adequate

15 yearly progress of—

16 ‘‘(i) any school served under this part

17 toward enabling all children to meet the

18 State’s challenging student performance

19 standards;

20 ‘‘(ii) any local educational agency that

21 received funds under this part toward ena22 bling all children in schools receiving as23 sistance under this part to meet the

24 State’s challenging student performance

25 standards; and
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1 ‘‘(iii) the State in enabling all children

2 in schools receiving assistance under this

3 part to meet the State’s challenging stu4 dent performance standards.

5 ‘‘(B) DEFINITION.—Adequate yearly

6 progress shall be defined in a manner that—

7 ‘‘(i) applies the same high standards

8 of academic performance to all students in

9 the State;

10 ‘‘(ii) takes into account the progress

11 of all students in the State and in each

12 local educational agency and school served

13 under section 1114 or 1115;

14 ‘‘(iii) uses the State challenging con15 tent and challenging student performance

16 standards and assessments described in

17 paragraphs (1) and (4);

18 ‘‘(iv) compares separately, within each

19 State, local educational agency, and school,

20 the performance and progress of students

21 by gender, each major ethnic and racial

22 group, by English proficiency status, by

23 migrant status, by students with disabil24 ities as compared to nondisabled students,

25 and by economically disadvantaged stu-
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1 dents as compared to students who are not

2 economically disadvantaged (except that

3 such disaggregation shall not be required

4 in a case in which the number of students

5 in a category is insufficient to yield statis6 tically reliable information or the results

7 would reveal individually identifiable infor8 mation about an individual student);

9 ‘‘(v) compares the proportions of stu10 dents at the ‘basic’, ‘proficient’, and ‘ad11 vanced’ levels of performance with the pro12 portions of students at each of the 3 levels

13 in the same grade in the previous school

14 year;

15 ‘‘(vi) includes annual numerical goals

16 for improving the performance of all

17 groups specified in clause (iv) and nar18 rowing gaps in performance between these

19 groups; and

20 ‘‘(vii) includes a timeline for ensuring

21 that each group of students described in

22 clause (iv) meets or exceeds the State’s

23 proficient level of performance on each

24 State assessment used for the purposes of

25 section 1111 and section 1116 not later
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1 than 10 years after the date of enactment

2 of the Leave No Child Behind Act of 2001;

3 and

4 ‘‘(viii) at the State’s discretion, may

5 also include other academic measures such

6 as promotion, completion of college pre7 paratory courses, and high school comple8 tion, except that inclusion of such other

9 measures may not change which schools or

10 local educational agencies would otherwise

11 be subject to improvement or corrective ac12 tion under section 1116 if the discretionary

13 indicators were not included.

14 ‘‘(C) ANNUAL IMPROVEMENT FOR

15 STATES.—For a State to make adequate yearly

16 progress under subparagraph (A)(iii), not less

17 than 90 percent of the local educational agen18 cies within its jurisdiction shall meet the State’s

19 criteria for adequate yearly progress.

20 ‘‘(D) ANNUAL IMPROVEMENT FOR LOCAL

21 EDUCATIONAL AGENCIES.—For a local edu22 cational agency to make adequate yearly

23 progress under subparagraph (A)(ii), not less

24 than 90 percent of the schools within its juris-
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1 diction must meet the State’s criteria for ade2 quate yearly progress.

3 ‘‘(E) ANNUAL IMPROVEMENT FOR

4 SCHOOLS.—For a school to make adequate

5 yearly progress under subparagraph (A)(i), not

6 less than 90 percent of each group of students

7 described in subparagraph (B)(iv) who are en8 rolled in such school are required to take the

9 assessments consistent with section

10 612(a)(17)(A) of the Individuals with Disabil11 ities Education Act and paragraph (4)(F)(iii)

12 on which adequate yearly progress is based.

13 The requirement of this subparagraph must be

14 met for such assessments to be used to deter15 mine whether a school is making adequate year16 ly progress.

17 ‘‘(F) PUBLIC NOTICE AND COMMENT.—

18 Each State shall ensure that in developing its

19 plan for adequate yearly progress, it diligently

20 seeks public comment from a range of institu21 tions and individuals in the State with an inter22 est in improved student achievement and that

23 the State makes and will continue to make a

24 substantial effort to ensure that information

25 under this part is widely known and understood
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1 by the public, parents, teachers, and school ad2 ministrators throughout the State. Such efforts

3 shall include, at a minimum, publication of such

4 information and explanatory text, broadly to the

5 public through such means as the Internet, the

6 media, and public agencies.

7 ‘‘(G) REVIEW.—The Secretary shall review

8 the information from States on the adequate

9 yearly progress of schools and local educational

10 agencies required under subparagraphs (A) and

11 (B) for the purpose of determining State and

12 local compliance with section 1116.

13 ‘‘(H) REVISION.—The Secretary shall re14 quire States to revise their definition of ade15 quate yearly progress, consistent with the re16 quirements of this paragraph. Such revisions

17 shall be submitted to the Secretary for approval

18 not later than 1 year after the date of enact19 ment of the Leave No Child Behind Act of

20 2001.

21 ‘‘(3) STATE AUTHORITY.—If a State edu22 cational agency provides evidence that is satisfactory

23 to the Secretary that neither the State educational

24 agency nor any other State government official,

25 agency, or entity has sufficient authority, under
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1 State law, to adopt curriculum content and student

2 performance standards, and assessments aligned

3 with such standards, that will be applicable to all

4 students enrolled in the State’s public schools, then

5 the State educational agency may meet the require6 ments of this subsection by—

7 ‘‘(A) adopting standards and assessments

8 that meet the requirements of this subsection,

9 on a statewide basis, limiting their applicability

10 to students served under this part; or

11 ‘‘(B) adopting and implementing policies

12 that ensure that each local educational agency

13 in the State that receives grants under this part

14 will adopt curriculum content and student per15 formance standards, and assessments aligned

16 with such standards, that meet all of the cri17 teria in this subsection and any regulations re18 garding such standards and assessments that

19 the Secretary may publish, and that are appli20 cable to all students served by each such local

21 educational agency.

22 ‘‘(4) ASSESSMENTS.—Each State plan shall

23 demonstrate that the State has implemented and is

24 administering a set of high-quality, yearly student

25 assessments that include, at a minimum, assess-
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1 ments in mathematics, reading or language arts, and

2 science as the primary means of determining the

3 yearly performance of each local educational agency

4 and school served under this title in enabling all

5 children served under this part to meet the State’s

6 challenging student performance standards. Such as7 sessments shall—

8 ‘‘(A) be the same assessments used to

9 measure the performance of all children, if the

10 State measures the performance of all children;

11 ‘‘(B) be criterion referenced and aligned

12 with the State’s challenging content and stu13 dent performance standards and provide coher14 ent information about student attainment of

15 such standards;

16 ‘‘(C) be used for purposes for which such

17 assessments are valid and reliable, and be con18 sistent with relevant, nationally recognized pro19 fessional and technical standards for such as20 sessments;

21 ‘‘(D) measure the proficiency of students

22 in the academic subjects in which a State has

23 adopted challenging content and student per24 formance standards and be administered not

25 less than one or more times during—
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1 ‘‘(i) grades 3 through 5;

2 ‘‘(ii) grades 6 through 9; and

3 ‘‘(iii) grades 10 through 12;

4 ‘‘(E) involve multiple up-to-date measures

5 of student performance, including measures

6 that assess higher order thinking skills and un7 derstanding;

8 ‘‘(F) provide for—

9 ‘‘(i) the participation in such assess10 ments of all students;

11 ‘‘(ii) the reasonable adaptations and

12 accommodations for students with disabil13 ities defined under 602(3) of the Individ14 uals with Disabilities Education Act nec15 essary to measure the achievement of such

16 students relative to State content and

17 State student performance standards; and

18 ‘‘(iii) the inclusion of limited English

19 proficient students who shall be assessed,

20 to the extent practicable, in the language

21 and form most likely to yield accurate and

22 reliable information on such students’

23 knowledge of, and skills in, the subject

24 area being assessed;
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1 ‘‘(G) include students who have attended

2 schools in a local educational agency for a full

3 academic year but have not attended a single

4 school for a full academic year, except that the

5 performance of students who have attended

6 more than 1 school in the local educational

7 agency in any academic year shall be used only

8 in determining the progress of the local edu9 cational agency;

10 ‘‘(H) provide individual student reports,

11 which include assessment scores, or other infor12 mation on the attainment of student perform13 ance standards; and

14 ‘‘(I) enable results to be disaggregated

15 within each State, local educational agency, and

16 school by gender, by each major racial and eth17 nic group, by English proficiency status, by mi18 grant status, by students with disabilities as

19 compared to nondisabled students, and by eco20 nomically disadvantaged students as compared

21 to students who are not economically disadvan22 taged.

23 ‘‘(5) SPECIAL RULE.—

24 ‘‘(A) IN GENERAL.—Assessment measures

25 that do not meet the requirements of paragraph
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1 (4)(C) may be included as one of the multiple

2 measures, if a State includes in the State plan

3 information regarding the State’s efforts to

4 validate such measures.

5 ‘‘(B) STUDENT LITERACY SKILLS.—States

6 may measure the literacy skills of students 1 or

7 more times during kindergarten through grade

8 2. Such measurement shall serve only as a diag9 nostic tool, with its sole purpose being the im10 provement of reading instruction.

11 ‘‘(6) LANGUAGE ASSESSMENTS.—Each State

12 plan shall identify the languages other than English

13 that are present in the participating student popu14 lation and indicate the languages for which yearly

15 student assessments are not available and are need16 ed. The State shall make every effort to develop

17 such assessments and may request assistance from

18 the Secretary if linguistically accessible assessment

19 measures are needed. Upon request, the Secretary

20 shall assist with the identification of appropriate as21 sessment measures in the needed languages, but

22 shall not mandate a specific assessment or mode of

23 instruction.

24 ‘‘(7) REQUIREMENT.—Each State plan shall

25 describe—
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1 ‘‘(A) how the State educational agency will

2 ensure that each local educational agency and

3 school affected by the State plan to develop the

4 capacity to comply with each of the require5 ments of sections 1112(c)(1)(D), 1114(c), and

6 1115(c) that is applicable to such agency or

7 school;

8 ‘‘(B) what specific steps the State edu9 cational agency will take to assist, and provide

10 resources to, schools and local educational agen11 cies that receive funds under this part to ensure

12 that all students enrolled in such schools and

13 local educational agencies reach, at a minimum,

14 the proficient level of performance;

15 ‘‘(C) the actions the State will take to en16 sure that critical education services and re17 sources are available in local educational agen18 cies that receive funds under this part to the

19 extent that such services are available in local

20 educational agencies that do not receive funds

21 under this part;

22 ‘‘(D) whether services in local educational

23 agencies that receive funds under this part are

24 of comparable quality to the services in local
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1 educational agencies that do not receive funds

2 under this part;

3 ‘‘(E) at a minimum—

4 ‘‘(i) how the State will ensure, not

5 later than December 1, 2004, that stu6 dents from families with incomes below the

7 poverty line and minority students receive

8 instruction from fully qualified teachers at

9 the same rate as other students;

10 ‘‘(ii) how the State will ensure, not

11 later than December 1, 2004, that stu12 dents from families with incomes below the

13 poverty line and minority students have

14 the same access to challenging curricula

15 and rigorous courses, including advance

16 placement courses, as do other students;

17 ‘‘(iii) how the State will ensure, not

18 later than December 1, 2004, that the

19 quality and availability of instructional ma20 terials and instructional resources includ21 ing technology in local educational agencies

22 receiving funds under this part, is com23 parable to such quality and availability in

24 local educational agencies not receiving

25 funds under this part; and
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1 ‘‘(F) the measures that the State edu2 cational agency will use annually to measure

3 and publicly report progress regarding subpara4 graph (E).

5 ‘‘(8) EXCLUSION FROM ASSESSMENTS.—

6 ‘‘(A) IN GENERAL.—Local educational

7 agencies receiving funds under this part shall

8 compile information and report, by individual

9 school, on students who do not participate in

10 assessments required under paragraph (4).

11 Such report, which shall be distributed widely

12 to the public, shall include—

13 ‘‘(i) a list of each reason that students

14 did not participate in any such assessment;

15 and

16 ‘‘(ii) the number from each group of

17 students described in paragraph (2)(B)(iv)

18 who did not participate on any such as19 sessment for each reason.

20 ‘‘(B) PROTECTION.—Reports required

21 under subparagraph (A) shall not report infor22 mation in a case in which it would reveal indi23 vidually identifiable information.
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1 ‘‘(c) OTHER PROVISIONS TO SUPPORT TEACHING

2 AND LEARNING.—Each State plan shall contain assur3 ances that—

4 ‘‘(1) the State educational agency will work

5 with other agencies, including educational service

6 agencies or other local consortia, and institutions to

7 provide technical assistance to local educational

8 agencies and schools to carry out the State edu9 cational agency’s responsibilities under this part, in10 cluding technical assistance in providing professional

11 development under section 1119 and technical as12 sistance under section 1117; and

13 ‘‘(2)(A) where educational service agencies

14 exist, the State educational agency will consider pro15 viding professional development and technical assist16 ance through such agencies; and

17 ‘‘(B) where educational service agencies do not

18 exist, the State educational agency will consider pro19 viding professional development and technical assist20 ance through other cooperative agreements such as

21 through a consortium of local educational agencies;

22 ‘‘(3) the State educational agency will notify

23 local educational agencies and the public of the con24 tent and student performance standards and assess25 ments developed under this section, and of the au-
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1 thority to operate schoolwide programs, and will ful2 fill the State educational agency’s responsibilities re3 garding local educational agency improvement and

4 school improvement under section 1116, including

5 such corrective actions as are necessary;

6 ‘‘(4) the State educational agency will provide

7 the least restrictive and burdensome regulations for

8 local educational agencies and individual schools par9 ticipating in a program assisted under this part;

10 ‘‘(5) if applicable, the State educational agency

11 will inform the Secretary and the public of how and

12 which Federal laws hinder the ability of States—

13 ‘‘(A) to improve overall student achieve14 ment; and

15 ‘‘(B) to close achievement gaps between

16 groups of students described in subsection

17 (b)(2)(B)(iv);

18 ‘‘(6) the State educational agency will encour19 age schools to consolidate funds from other Federal,

20 State, and local sources for schoolwide reform in

21 schoolwide programs under section 1114;

22 ‘‘(7) the State educational agency will modify or

23 eliminate State fiscal and accounting barriers so

24 that schools can easily consolidate funds from other
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1 Federal, State, and local sources for schoolwide pro2 grams under section 1114;

3 ‘‘(8) the State educational agency has involved

4 the committee of practitioners established under sec5 tion 1603(b) in developing the plan and monitoring

6 its implementation; and

7 ‘‘(9) the State educational agency will inform

8 local educational agencies of the local educational

9 agency’s authority to seek waivers under title X and,

10 if the State is an Ed-Flex Partnership State, waivers

11 under the Education Flexibility Partnership Act of

12 1999 (30 U.S.C. 589a et seq.).

13 ‘‘(d) PEER REVIEW AND SECRETARIAL APPROVAL.—

14 ‘‘(1) SECRETARIAL DUTIES.—The Secretary

15 shall—

16 ‘‘(A) establish a peer review process to as17 sist in the review of State plans;

18 ‘‘(B) approve a State plan after its submis19 sion unless the Secretary determines that the

20 plan does not meet the requirements of this sec21 tion;

22 ‘‘(C) if the Secretary determines that the

23 State plan does not meet the requirements of

24 subsection (a), (b), or (c), immediately notify
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1 the State of such determination and the reasons

2 for such determination;

3 ‘‘(D) not decline to approve a State’s plan

4 before—

5 ‘‘(i) offering the State an opportunity

6 to revise its plan;

7 ‘‘(ii) providing technical assistance in

8 order to assist the State to meet the re9 quirements under subsections (a), (b), and

10 (c); and

11 ‘‘(iii) providing a hearing;

12 ‘‘(E) have the authority to disapprove a

13 State plan for not meeting the requirements of

14 this part, but shall not have the authority to re15 quire a State, as a condition of approval of the

16 State plan, to include in, or delete from, such

17 plan one or more specific elements of the

18 State’s content standards or to use specific as19 sessment instruments or items; and

20 ‘‘(2) STATE REVISIONS.—States shall revise

21 their plans if necessary to satisfy the requirements

22 of this section. Revised plans shall be submitted to

23 the Secretary for approval not later than 1 year

24 after the date of enactment of the Leave No Child

25 Behind Act of 2001.
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1 ‘‘(e) DURATION OF THE PLAN.—

2 ‘‘(1) IN GENERAL.—Each State plan shall—

3 ‘‘(A) be submitted for the first year for

4 which this part is in effect after the date of en5 actment of the Leave No Child Behind Act of

6 2001;

7 ‘‘(B) remain in effect for the duration of

8 the State’s participation under this part; and

9 ‘‘(C) be periodically reviewed and revised

10 by the State, as necessary, to reflect changes in

11 the State’s strategies and programs under this

12 part.

13 ‘‘(2) ADDITIONAL INFORMATION.—If the State

14 makes significant changes in its plan, such as the

15 adoption of new State content standards and State

16 student performance standards, new assessments, or

17 a new definition of adequate yearly progress, the

18 State shall submit such information to the Sec19 retary.

20 ‘‘(f) LIMITATION ON CONDITIONS.—Nothing in this

21 part shall be construed to authorize an officer or employee

22 of the Federal Government to mandate, direct, or control

23 a State, local educational agency, or school’s specific in24 structional content or student performance standards and
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1 assessments, curriculum, or program of instruction, as a

2 condition of eligibility to receive funds under this part.

3 ‘‘(g) PENALTIES.—

4 ‘‘(1) IN GENERAL.—If a State fails to dem5 onstrate that it has in place challenging content

6 standards and student performance standards and

7 assessments, and a system for measuring and moni8 toring adequate yearly progress which includes the

9 disaggregation of data by groups, as described in

10 subsection (b)(2)(B)(iv), the State shall be ineligible

11 to receive any administrative funds under section

12 1002(h) that exceed the amount received by the

13 State for such purpose in the previous year.

14 ‘‘(2) ADDITIONAL FUNDS.—Based on the extent

15 to which the requirements of paragraph (1) are not

16 met, additional administrative funds shall be with17 held in such amount as the Secretary determines ap18 propriate, except that for each additional year that

19 the State fails to comply with such requirements, the

20 Secretary shall withhold not less than one-fifth of

21 the amount the State receives for administrative ex22 penses under section 1002(h).

23 ‘‘(3) WAIVER.—Notwithstanding title X of this

24 Act and the Education Flexibility Partnership Act of

25 1999 or any other provision of law, a waiver shall
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1 not be granted except that a State may request a 1-

2 time, 1-year waiver to meet the requirements of this

3 section.

4 ‘‘(h) SCHOOL REPORT CARDS; PARENTAL INFORMA5 TION.—

6 ‘‘(1) IN GENERAL.—

7 ‘‘(A) ANNUAL REPORT CARDS.—Not later

8 than the beginning of the 2002–2003 school

9 year, a State that receives assistance under this

10 Act shall prepare and publicly disseminate an

11 annual report card on all schools that receive

12 funds under this part. States and local edu13 cational agencies may issue report cards under

14 this section only for local educational agencies

15 and schools receiving funds under this part, ex16 cept that if a State or local educational agency

17 issues a report card for all students, the State

18 or local educational agency may include the in19 formation under this section as part of such re20 port card.

21 ‘‘(B) IMPLEMENTATION.—The State shall

22 ensure the dissemination of this information at

23 all levels. Such information shall be—

24 ‘‘(i) concise; and
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1 ‘‘(ii) presented in a format and man2 ner, and to the extent practicable, in a lan3 guage that parents can understand.

4 ‘‘(2) CONTENT OF ANNUAL STATE REPORT

5 CARDS.—

6 ‘‘(A) REQUIRED INFORMATION.—The

7 State shall, at a minimum, include in the an8 nual State report cards information for the

9 State on each local educational agency and

10 school regarding—

11 ‘‘(i) student performance on statewide

12 assessments for the current and preceding

13 years in at least mathematics, reading or

14 language arts, and science, including—

15 ‘‘(I) a comparison of the propor16 tions of students who performed at

17 ‘basic’, ‘proficient’, and ‘advanced’

18 levels in each subject area, for each

19 grade level at which assessments are

20 required under this part, with propor21 tions in each of the same 3 categories

22 at the same grade levels in the pre23 vious school year; and

24 ‘‘(II) a statement of the percent25 age of students not tested and a list-
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1 ing of categories of the reasons why

2 they were not tested;

3 ‘‘(ii) retention in grade, completion of

4 advanced placement courses, and 4-year

5 graduation rates;

6 ‘‘(iii) the professional qualifications of

7 teachers in the aggregate, including the

8 percentage of course sections in core aca9 demic subjects taught by teachers with

10 emergency or provisional credentials, and

11 the percentage of class sections not taught

12 by fully qualified teachers; and

13 ‘‘(iv) the professional qualifications of

14 paraprofessionals, the number of para15 professionals in the aggregate and the

16 ratio of paraprofessionals to teachers in

17 the classroom.

18 ‘‘(B) STUDENT DATA.—Student data in

19 each report card shall contain disaggregated re20 sults for the following categories:

21 ‘‘(i) Gender.

22 ‘‘(ii) Racial and ethnic group.

23 ‘‘(iii) Migrant status.

24 ‘‘(iv) Students with disabilities, as

25 compared to students who are not disabled.
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1 ‘‘(v) Economically disadvantaged stu2 dents, as compared to students who are

3 not economically disadvantaged.

4 ‘‘(vi) Students with limited English

5 proficiency, as compared to students who

6 are proficient in English.

7 ‘‘(C) OPTIONAL INFORMATION.—A State

8 may include in its report card any other infor9 mation it determines appropriate to reflect

10 school quality and school achievement, including

11 information on average class size by grade level,

12 and information on school safety, such as the

13 incidence of school violence and drug and alco14 hol abuse, and the incidence of student suspen15 sions and expulsions.

16 ‘‘(3) CONTENT OF LOCAL EDUCATIONAL AGEN17 CIES REPORTS.—

18 ‘‘(A) MINIMUM REQUIREMENTS.—The

19 State shall ensure that each local educational

20 agency collects appropriate data and publishes

21 and publicly disseminates an annual report card

22 for each of its schools that includes, at a

23 minimum—
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1 ‘‘(i) the information described in para2 graphs (2)(A) and (2)(B) for each local

3 educational agency and school and—

4 ‘‘(I) in the case of a local edu5 cational agency—

6 ‘‘(aa) the number and per7 centage of schools identified for

8 school improvement, including

9 schools identified under section

10 1116(b) of this Act;

11 ‘‘(bb) information that

12 shows how students in its schools

13 perform on the statewide assess14 ment compared to students in the

15 State as a whole; and

16 ‘‘(II) in the case of a school—

17 ‘‘(aa) whether it has been

18 identified for school improve19 ment; and

20 ‘‘(bb) information that

21 shows how its students performed

22 on the statewide assessment com23 pared to students in the local

24 educational agency and the State

25 as a whole.
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1 ‘‘(B) OTHER INFORMATION.—A local edu2 cational agency may include in its annual report

3 card any other appropriate information regard4 less of whether such information is included in

5 the annual State report card.

6 ‘‘(4) DISSEMINATION AND ACCESSIBILITY OF

7 REPORTS.—

8 ‘‘(A) STATE REPORT CARDS.—State an9 nual report cards under paragraph (2) shall be

10 disseminated to all schools and local educational

11 agencies in the State, and made broadly avail12 able to the public through means such as post13 ing on the Internet, distribution to the media,

14 and distribution through public agencies.

15 ‘‘(B) LOCAL EDUCATIONAL AGENCY RE16 PORTS.—Local educational agency report cards

17 under paragraph (3) shall be disseminated to

18 all schools in the school district and to all par19 ents of students attending these schools and

20 made broadly available to the public through

21 means such as posting on the Internet, distribu22 tion to the media, and distribution through

23 public agencies.

24 ‘‘(5) PARENT’S RIGHT-TO-KNOW.—
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1 ‘‘(A) QUALIFICATIONS.—A local edu2 cational agency that receives funds under this

3 part shall provide, upon request, in an under4 standable and uniform format, to any parent of

5 a student attending any school receiving funds

6 under this part, information regarding the pro7 fessional qualifications of the student’s class8 room teachers, including, at a minimum, the

9 following:

10 ‘‘(i) Whether the teacher has met

11 State qualification and licensing criteria

12 for the grade levels and subject areas in

13 which the teacher provides instruction.

14 ‘‘(ii) Whether the teacher is teaching

15 under emergency or other provisional sta16 tus through which State qualification or li17 censing criteria have been waived.

18 ‘‘(iii) The baccalaureate degree major

19 of the teacher and any other graduate cer20 tification or degree held by the teacher,

21 and the field of discipline of the certifi22 cation or degree.

23 ‘‘(iv) Whether the child is provided

24 services by paraprofessionals and the quali25 fications of such paraprofessional.
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1 ‘‘(B) ADDITIONAL INFORMATION.—In ad2 dition to the information that parents may re3 quest under subparagraph (A), and the infor4 mation provided in subsection (c), a school that

5 receives funds under this part shall provide to

6 each individual parent or guardian—

7 ‘‘(i) information on the level of per8 formance of the individual student for

9 whom they are the parent or guardian in

10 each of the State assessments as required

11 under this part; and

12 ‘‘(ii) timely notice that the student for

13 whom they are the parent or guardian has

14 been assigned or has been taught for 2 or

15 more consecutive weeks by a substitute

16 teacher or by a teacher not fully qualified.

17 ‘‘(C) NOTIFICATION.—A local educational

18 agency shall notify parents of students attend19 ing any school receiving funds under this part,

20 on an annual basis, of their ability to request

21 information under this paragraph and initially

22 not later than 1 year after the date of enact23 ment of the Leave No Child Behind Act of

24 2001. A local educational agency shall provide

25 such notification to parents in a format, and to
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1 the extent practicable, in a language they can

2 understand.

3 ‘‘(6) PLAN CONTENT.—A State shall include in

4 its plan under subsection (b) an assurance that it

5 has in effect a policy that meets the requirements of

6 this section.

7 ‘‘(i) PRIVACY.—Information collected under this sec8 tion shall be collected and disseminated in a manner that

9 protects the privacy of individuals.

10 ‘‘(j) SPECIAL RULE ON SCIENCE STANDARDS AND

11 ASSESSMENTS.—Notwithstanding subsections (b) and (h),

12 no State shall be required to meet the requirements under

13 this title relating to science standards or assessments until

14 the beginning of the 2006–2007 school year.’’.

15 SEC. 3436. LOCAL EDUCATIONAL AGENCY PLANS.

16 (a) PLANS REQUIRED.—Subsection (a) of section

17 1112 of the Elementary and Secondary Education Act of

18 1965 (20 U.S.C. 6312(a)) is amended—

19 (1) in paragraph (1), by striking ‘‘the Goals

20 2000: Educate America Act’’ and all that follows

21 and inserting the following: ‘‘the Individuals with

22 Disabilities Education Act, the Carl D. Perkins Vo23 cational and Technical Education Act of 1998, the

24 Head Start Act, and other Acts, as appropriate.’’;

25 and
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1 (2) in paragraph (2), by striking ‘‘14304’’ and

2 inserting ‘‘10204’’.

3 (b) PLAN PROVISIONS.—Subsection (b) of section

4 1112 of the Elementary and Secondary Education Act of

5 1965 (20 U.S.C. 6312(b)) is amended—

6 (1) by striking ‘‘Each’’ in the matter preceding

7 paragraph (1) and inserting ‘‘In order to help low8 achieving children achieve to high standards, each’’;

9 (2) in paragraph (1)—

10 (A) by striking ‘‘part’’ each place it ap11 pears and inserting ‘‘title’’;

12 (B) in subparagraph (B), by inserting

13 ‘‘low-achieving’’ before ‘‘children’’;

14 (C) by striking ‘‘and’’ at the end of sub15 paragraph (B);

16 (D) by inserting ‘‘and’’ at the end of sub17 paragraph (C); and

18 (E) by adding at the end the following new

19 subparagraph:

20 ‘‘(D) determine the literacy levels of first

21 graders and their need for interventions, and a

22 description of how the local educational agency

23 will ensure that any such assessments—

24 ‘‘(i) are developmentally appropriate;

25 and
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1 ‘‘(ii) use multiple measures to provide

2 information about the variety of skills that

3 scientifically based research has identified

4 as leading to early acquisition of reading

5 skills.’’;

6 (3) in paragraph (4)(B), by striking ‘‘under

7 part C or who were formerly eligible for services

8 under part C in the two-year period preceding the

9 date of enactment of the Improving America’s

10 School Act of 1994, neglected or delinquent youth

11 and youth at risk of dropping out served under part

12 D’’ and inserting ‘‘under part C, neglected or delin13 quent youth, Indian children served under title IX,’’;

14 (4) in paragraph (7), by striking ‘‘eligible

15 homeless children’’ and inserting ‘‘homeless chil16 dren’’;

17 (5) by striking the period at the end of para18 graph (9) and inserting ‘‘; and’’; and

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

20 paragraphs:

21 ‘‘(10) a description of the actions the local edu22 cational agency will take to assist its low-performing

23 schools, including schools identified for improvement

24 under section 1116;
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1 ‘‘(11) a description of how the agency will pro2 mote the use of extended learning time, such as an

3 extended school year and before and after school and

4 summer programs; and

5 ‘‘(12) a description of the activity established

6 by the local educational agency in accordance with

7 section 1119(b)(1).’’.

8 (c) ASSURANCES.—Subsection (c) of section 1112 of

9 the Elementary and Secondary Education Act of 1965 (20

10 U.S.C. 6312(c)) is amended to read as follows:

11 ‘‘(c) ASSURANCES.—

12 ‘‘(1) IN GENERAL.—Each local educational

13 agency plan shall provide assurances that the local

14 educational agency will—

15 ‘‘(A) inform eligible schools and parents of

16 schoolwide project authority and the ability of

17 such schools to consolidate funds from Federal,

18 State, and local sources;

19 ‘‘(B) provide technical assistance and sup20 port to schoolwide programs;

21 ‘‘(C) work in consultation with schools as

22 the schools develop the schools’ plans pursuant

23 to section 1114 and assist schools as the

24 schools implement such plans or undertake ac25 tivities pursuant to section 1115 so that each
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1 school can make adequate yearly progress to2 ward meeting the State student performance

3 standards;

4 ‘‘(D) fulfill such agency’s school improve5 ment responsibilities under section 1116, in6 cluding taking corrective actions under section

7 1116(b)(9);

8 ‘‘(E) provide services to eligible children

9 attending private elementary and secondary

10 schools in accordance with section 1120, and

11 timely and meaningful consultation with private

12 school officials regarding such services;

13 ‘‘(F) take into account the experience of

14 model programs for the educationally disadvan15 taged, and the findings of relevant scientifically

16 based research indicating that services may be

17 most effective if focused on students in the ear18 liest grades at schools that receive funds under

19 this part;

20 ‘‘(G) in the case of a local educational

21 agency that chooses to use funds under this

22 part to provide early childhood development

23 services to low-income children below the age of

24 compulsory school attendance, ensure that such

25 services comply with the performance standards
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1 established under section 641A(a) of the Head

2 Start Act;

3 ‘‘(H) inform eligible schools of the local

4 educational agency’s authority to obtain waivers

5 on the school’s behalf under title X of this Act,

6 and if the State is an Ed-Flex Partnership

7 State, waivers under the Education Flexibility

8 Partnership Act of 1999;

9 ‘‘(I) coordinate and collaborate, to the ex10 tent feasible and necessary as determined by

11 the local educational agency, with other agen12 cies providing services to children, youth, and

13 families; and

14 ‘‘(J) ensure that by not later than Decem15 ber 1, 2004, students from families with in16 comes below the poverty line and minority stu17 dents are not taught by teachers who are not

18 fully qualified at a greater rate than other stu19 dents.

20 ‘‘(2) SPECIAL RULE.—The Secretary—

21 ‘‘(A) shall consult with the Secretary of

22 Health and Human Services on the implemen23 tation of subparagraph (G) and shall establish

24 procedures (taking into consideration existing

25 State and local laws, and local teacher con-
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1 tracts) to assist local educational agencies to

2 comply with such subparagraph; and

3 ‘‘(B) upon publication, shall disseminate to

4 local educational agencies the Head Start per5 formance standards as in effect under section

6 641A(a) of the Head Start Act, and such agen7 cies affected by subparagraph (G) shall plan for

8 the implementation of such subparagraph (tak9 ing into consideration existing State and local

10 laws, and local teacher contracts), including

11 pursuing the availability of other Federal,

12 State, and local funding sources to assist in

13 compliance with such subparagraph.’’.

14 (d) PLAN DEVELOPMENT AND DURATION.—Section

15 1112 of the Elementary and Secondary Education Act of

16 1965 (20 U.S.C. 6312) is amended by striking subsection

17 (d) and inserting the following:

18 ‘‘(d) PLAN DEVELOPMENT AND DURATION.—

19 ‘‘(1) CONSULTATION.—Each local educational

20 agency plan shall be developed in consultation with

21 teachers, administrators (including administrators of

22 programs described in other parts of this title), and

23 other appropriate school personnel, and with parents

24 of children in schools served under this part.
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1 ‘‘(2) DURATION.—Each such plan shall be sub2 mitted for the first year for which this part is in ef3 fect following the date of enactment of the Leave No

4 Child Behind Act of 2001 and shall remain in effect

5 for the duration of the agency’s participation under

6 this part.

7 ‘‘(3) REVIEW.—Each such local educational

8 agency shall periodically review, and as necessary,

9 revise its plan.’’.

10 (e) STATE APPROVAL.—Section 1112 of the Elemen11 tary and Secondary Education Act of 1965 (20 U.S.C.

12 6312(e)) is amended by striking subsection (e) and insert13 ing the following:

14 ‘‘(e) STATE APPROVAL.—

15 ‘‘(1) IN GENERAL.—Each local educational

16 agency plan shall be filed according to a schedule es17 tablished by the State educational agency.

18 ‘‘(2) APPROVAL.—The State educational agency

19 shall approve a local educational agency’s plan only

20 if the State educational agency determines that the

21 local educational agency’s plan—

22 ‘‘(A) will enable schools served under this

23 part to substantially help children served under

24 this part meet the standards expected of all

25 children described in section 1111(b)(1); and
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1 ‘‘(B) will meet the requirements of this

2 section.’’.

3 SEC. 3437. TARGETED ASSISTANCE SCHOOLS.

4 (a) FULLY QUALIFIED TEACHER.—Subsection

5 (c)(1)(F) of section 1115 of the Elementary and Sec6 ondary Education Act of 1965 (20 U.S.C. 6315(c)(1)(F))

7 is amended by striking ‘‘highly qualified staff;’’ and insert8 ing ‘‘fully qualified teachers as defined in section

9 2812(4)(A);’’.

10 (b) INTEGRATION OF PROFESSIONAL DEVELOP11 MENT.—Subsection (d) of section 1115 of the Elementary

12 and Secondary Education Act of 1965 (20 U.S.C.

13 6515(d)) is amended to read as follows:

14 ‘‘(d) INTEGRATION OF PROFESSIONAL DEVELOP15 MENT.—To promote the integration of staff supported

16 with funds under this part, public school personnel who

17 are paid with funds received under this part may partici18 pate in general professional development and school plan19 ning activities.’’.

20 SEC. 3438. SCHOOL CHOICE.

21 Subsection (b) of section 1115A of the Elementary

22 and Secondary Education Act of 1965 (20 U.S.C.

23 6316(b)) is amended by striking paragraphs (7) through

24 (10) and inserting the following:
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1 ‘‘(7) parents of eligible students in the local

2 educational agency will be given prompt notice of the

3 existence of the public school choice program and its

4 availability to them, and a clear explanation of how

5 the program will operate;

6 ‘‘(8) the program will include charter schools

7 and any other public school and shall not include a

8 school that is or has been identified as a school in

9 school improvement or is or has been in corrective

10 action for the past 2 consecutive years;

11 ‘‘(9) transportation services or the costs of

12 transportation may be provided by the local edu13 cational agency with funds under this part; and

14 ‘‘(10) such local educational agency will comply

15 with the other requirements of this part.’’.

16 SEC. 3439. ASSESSMENT AND LOCAL EDUCATIONAL AGEN17 CY AND SCHOOL IMPROVEMENT.

18 (a) LOCAL REVIEW.—Section 1116(a) of the Elemen19 tary and Secondary Education Act of 1965 (20 U.S.C.

20 6317(a)) is amended—

21 (1) in paragraph (2), by striking

22 ‘‘1111(b)(2)(A)(i)’’ and inserting ‘‘1111(b)(2)(B)’’;

23 (2) in paragraph (3), by striking ‘‘individual

24 school performance profiles’’ and inserting ‘‘school

25 reports’’;
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1 (3) in paragraph (3), by striking ‘‘and’’ after

2 the semicolon;

3 (4) in paragraph (4), by striking the period at

4 the end and inserting ‘‘; and’’; and

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

6 ‘‘(5) review the effectiveness of the actions and

7 activities the schools are carrying out under this

8 part with respect to parental involvement assisted

9 under this Act.’’.

10 (b) SCHOOL IMPROVEMENT.—Section 1116 of the El11 ementary and Secondary Education Act of 1965 (20

12 U.S.C. 6317) is amended by striking subsections (b), (c),

13 and (d) and by inserting after subsection (a) the following:

14 ‘‘(b) SCHOOL IMPROVEMENT.—

15 ‘‘(1) IN GENERAL.—A local educational agency

16 shall identify for school improvement any school

17 served under this part that—

18 ‘‘(A) for 2 consecutive years failed to make

19 adequate yearly progress as defined in the

20 State’s plan under section 1111(b)(2); or

21 ‘‘(B) was in school improvement status

22 under this section on the day preceding the

23 date of enactment of the Leave No Child Be24 hind Act of 2001.
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1 ‘‘(2) TRANSITION.—The 2-year period described

2 in paragraph (1)(A) shall include any continuous pe3 riod of time immediately preceding the date of en4 actment of the Leave No Child Behind Act of 2001

5 during which a school did not make adequate yearly

6 progress as defined in the State’s plan, as such plan

7 was in effect on the day preceding the date of such

8 enactment.

9 ‘‘(3) TARGETED ASSISTANCE SCHOOLS.—To de10 termine if a school that is conducting a targeted as11 sistance program under section 1115 should be iden12 tified as in need of improvement under this sub13 section, a local educational agency may choose to re14 view the progress of only those students in such

15 school who are served under this part.

16 ‘‘(4) OPPORTUNITY TO REVIEW AND PRESENT

17 EVIDENCE.—

18 ‘‘(A) IN GENERAL.—Before identifying a

19 school for school improvement under paragraph

20 (1), the local educational agency shall provide

21 the school with an opportunity to review the

22 school-level data, including assessment data, on

23 which the proposed identification is based.

24 ‘‘(B) SUPPORTING EVIDENCE.—If the

25 school principal believes that the proposed iden-
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1 tification is in error for statistical or other sub2 stantive reasons, the principal may provide sup3 porting evidence to the local educational agency,

4 which such agency shall consider before making

5 a final determination.

6 ‘‘(5) NOTIFICATION TO PARENTS.—A local edu7 cational agency shall, in an easily understandable

8 format, provide in writing to parents of each student

9 in a school identified for school improvement—

10 ‘‘(A) an explanation of what the school im11 provement identification means and how the

12 school compares in terms of academic perform13 ance to other schools in the local educational

14 agency and State;

15 ‘‘(B) the reasons for such identification;

16 ‘‘(C) the data on which such identification

17 is based;

18 ‘‘(D) an explanation of what the school is

19 doing to address the problem of low achieve20 ment;

21 ‘‘(E) an explanation of how parents can

22 become involved in upgrading the quality of the

23 school;

24 ‘‘(F) an explanation of the right of par25 ents, pursuant to paragraph (6), to transfer
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1 their child to another public school, including a

2 public charter school, that is not in school im3 provement, and how such transfer shall operate;

4 and

5 ‘‘(G) notification to parents in a format

6 and, to the extent practicable, in a language

7 they can understand.

8 ‘‘(6) PUBLIC SCHOOL CHOICE OPTION.—

9 ‘‘(A) SCHOOLS IDENTIFIED FOR IMPROVE10 MENT.—After the date of enactment of the

11 Leave No Child Behind Act of 2001, a local

12 educational agency shall provide all students en13 rolled in a school identified for school improve14 ment with an option to transfer to any other

15 public school within the local educational agen16 cy or any public school consistent with subpara17 graph (C), including a public charter school

18 that has not been identified for school improve19 ment, unless such option to transfer is prohib20 ited by State law, or local law, which includes

21 school board-approved local educational agency

22 policy.

23 ‘‘(B) CAPACITY.—If a local educational

24 agency described in subparagraph (A) dem25 onstrates to the satisfaction of the State edu-
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1 cational agency that such local educational

2 agency lacks the capacity to provide all students

3 with the option to transfer described in sub4 paragraph (A), and after giving notice to the

5 parents of children affected that it is not pos6 sible, consistent with State and local law, to ac7 commodate the transfer request of every stu8 dent, the local educational agency shall permit

9 as many students as possible (who shall be se10 lected by the local educational agency on an eq11 uitable basis) to transfer to a public school that

12 has not been identified for school improvement

13 under section 1116(b).

14 ‘‘(C) COOPERATIVE AGREEMENT.—If all

15 public schools in the local educational agency to

16 which a child may transfer to, are identified for

17 school improvement, the agency shall, to the ex18 tent practicable, establish a cooperative agree19 ment with other local educational agencies in

20 the area for the transfer.

21 ‘‘(D) TRANSPORTATION.—The local edu22 cational agency in which the schools have been

23 identified for improvement may use up to 10

24 percent of the funds received under this part to

25 provide transportation to students whose par-
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1 ents choose to transfer their child or children to

2 a different school.

3 ‘‘(E) WAIVER.—A local educational agency

4 using funds received under this part for trans5 portation consistent with subparagraph (D)

6 may request a waiver of the limit of the use of

7 such funds described in subparagraph (D) from

8 the Secretary.

9 ‘‘(F) CONTINUE OPTION.—Once a school is

10 no longer identified for school improvement, the

11 local educational agency may continue to pro12 vide public school choice as an option to stu13 dents in such school for a period of not less

14 than 2 years.

15 ‘‘(7) SCHOOL PLAN.—

16 ‘‘(A) IN GENERAL.—Each school identified

17 under paragraph (1) for school improvement

18 shall, not later than 3 months after being so

19 identified, develop or revise a school plan, in

20 consultation with parents, school staff, the local

21 educational agency, and other outside experts

22 for approval by the local educational agency.

23 Such plan shall—
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1 ‘‘(i) incorporate scientifically based re2 search strategies that strengthen the core

3 academic program in the school;

4 ‘‘(ii) adopt policies that have the

5 greatest likelihood of improving the per6 formance of participating children in meet7 ing the State’s student performance stand8 ards;

9 ‘‘(iii) address the professional develop10 ment needs of staff, particularly teachers

11 and principals;

12 ‘‘(iv) establish specific goals and ob13 jectives the school will undertake for mak14 ing adequate yearly progress which include

15 specific numerical performance goals and

16 targets for each of the groups of students

17 identified in the disaggregated data pursu18 ant to section 1111(b)(2), consistent with

19 section 1111(b)(2)(B);

20 ‘‘(v) identify how the school will pro21 vide written notification to parents, in a

22 format and to the extent practicable in a

23 language such parents can understand;

24 and
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1 ‘‘(vi) specify the responsibilities of the

2 local educational agency and the school

3 under the plan.

4 ‘‘(B) CONDITIONAL APPROVAL.—A local

5 educational agency may condition approval of a

6 school plan, including a revised plan, on inclu7 sion of one or more of the corrective actions

8 specified in paragraph (9).

9 ‘‘(C) IMPLEMENTATION.—A school shall

10 implement its plan or revised plan expeditiously,

11 but not later than the beginning of the school

12 year after which the school has been identified

13 for improvement.

14 ‘‘(D) REVIEW.—The local educational

15 agency shall promptly review the plan, including

16 a revised plan, work with the school as nec17 essary, and approve the plan if it meets the re18 quirements of this section.

19 ‘‘(8) TECHNICAL ASSISTANCE.—

20 ‘‘(A) IN GENERAL.—For each school iden21 tified for school improvement under paragraph

22 (1), the local educational agency shall provide

23 technical assistance as the school develops and

24 implements its plan, including a revised plan.
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1 ‘‘(B) SPECIFIC TECHNICAL ASSISTANCE.—

2 Such technical assistance—

3 ‘‘(i) shall include effective methods

4 and instructional strategies that are based

5 upon scientifically based research that

6 strengthens the core academic program in

7 the school and addresses the specific ele8 ments of student performance problems in

9 the school;

10 ‘‘(ii) may be provided directly by the

11 local educational agency, through mecha12 nisms authorized under section 1117, or

13 with the local educational agency’s ap14 proval, by an institution of higher edu15 cation, a private nonprofit organization, an

16 educational service agency, a comprehen17 sive regional assistance center under part

18 A of title XIII (as such center was in exist19 ence prior to the date of enactment of

20 Leave No Child Behind Act of 2001), or

21 other entities with experience in helping

22 schools improve achievement.

23 ‘‘(C) TECHNICAL ASSISTANCE.—Technical

24 assistance provided under this section by the

25 local educational agency or an entity authorized
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1 by such agency shall be based upon scientif2 ically based research.

3 ‘‘(9) CORRECTIVE ACTION.—In order to help

4 students served under this part meet challenging

5 State standards, each local educational agency shall

6 implement a system of corrective action in accord7 ance with the following:

8 ‘‘(A) IN GENERAL.—After providing tech9 nical assistance under paragraph (8) and sub10 ject to subparagraph (F), the local educational

11 agency—

12 ‘‘(i) may take corrective action at any

13 time with respect to a school that has been

14 identified under paragraph (1);

15 ‘‘(ii) shall take corrective action with

16 respect to any school that fails to make

17 adequate yearly progress, as defined by the

18 State, after the end of the second year fol19 lowing its identification under paragraph

20 (1); and

21 ‘‘(iii) shall continue to provide tech22 nical assistance while instituting any cor23 rective action under clause (i) or (ii).
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1 ‘‘(B) DEFINITION.—As used in this para2 graph, the term ‘corrective action’ means ac3 tion, consistent with State and local law, that—

4 ‘‘(i) substantially and directly re5 sponds to the consistent academic failure

6 that caused the local educational agency to

7 take such action and to any underlying

8 staffing, curricular, or other problems in

9 the school; and

10 ‘‘(ii) is designed to substantially in11 crease the likelihood that students will per12 form at the proficient and advanced per13 formance levels.

14 ‘‘(C) CERTAIN SCHOOLS.—In the case of a

15 school described in subparagraph (A)(ii), the

16 local educational agency shall take not less than

17 1 of the following corrective actions:

18 ‘‘(i) Withhold funds from the school.

19 ‘‘(ii) Decrease decisionmaking author20 ity at the school level.

21 ‘‘(iii) Make alternative governance ar22 rangements, including reopening the school

23 as a public charter school.

24 ‘‘(iv) Reconstitute the school by re25 quiring each person employed at the school
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1 to reapply for future employment at the

2 same school or for any position in the local

3 educational agency.

4 ‘‘(v) Authorize students to transfer to

5 other higher performing public schools

6 served by the local educational agency, in7 cluding public charter schools, and provide

8 such students transportation (or the costs

9 of transportation) to such schools in con10 junction with not less than 1 additional ac11 tion described under this subparagraph.

12 ‘‘(vi) Institute and fully implement a

13 new curriculum, including appropriate pro14 fessional development for all relevant staff,

15 that is based upon scientifically based re16 search and offers substantial promise of

17 improving educational achievement for low18 performing students.

19 ‘‘(D) IMPLEMENTATION DELAY.—A local

20 educational agency may delay, for a period not

21 to exceed 1 year, implementation of corrective

22 action only if the failure to make adequate

23 yearly progress was justified due to exceptional

24 or uncontrollable circumstances such as a nat25 ural disaster or a precipitous and unforeseen
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1 decline in the financial resources of the local

2 educational agency or school.

3 ‘‘(E) PUBLICATION.—The local educational

4 agency shall publish, and disseminate to the

5 public and to parents in a format and, to the

6 extent practicable, in a language that they can

7 understand, any corrective action it takes under

8 this paragraph through such means as the

9 Internet, the media, and public agencies.

10 ‘‘(F) REVIEW.—(i) Before taking correc11 tive action with respect to any school under this

12 paragraph, a local educational agency shall pro13 vide the school an opportunity to review the

14 school level data, including assessment data, on

15 which the proposed determination is made.

16 ‘‘(ii) If the school believes that the pro17 posed determination is in error for statistical or

18 other substantive reasons, it may provide sup19 porting evidence to the local educational agency,

20 which shall consider such evidence before mak21 ing a final determination.

22 ‘‘(10) STATE EDUCATIONAL AGENCY RESPON23 SIBILITIES.—If a State educational agency deter24 mines that a local educational agency failed to carry

25 out its responsibilities under this section, it shall
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1 take such action as it finds necessary, consistent

2 with this section, to improve the affected schools and

3 to ensure that the local educational agency carries

4 out its responsibilities under this section.

5 ‘‘(c) STATE REVIEW AND LOCAL EDUCATIONAL

6 AGENCY IMPROVEMENT.—

7 ‘‘(1) IN GENERAL.—A State educational agency

8 shall—

9 ‘‘(A) annually review the progress of each

10 local educational agency receiving funds under

11 this part to determine whether schools receiving

12 assistance under this part are making adequate

13 yearly progress as defined in section 1111(b)(2)

14 toward meeting the State’s student performance

15 standards; and

16 ‘‘(B) publicize and disseminate to local

17 educational agencies, teachers and other staff,

18 parents, students, and the community the re19 sults of the State review consistent with section

20 1111, including statistically sound

21 disaggregated results, as required by section

22 1111(b)(2).

23 ‘‘(2) IDENTIFICATION OF LOCAL EDUCATIONAL

24 AGENCY FOR IMPROVEMENT.—A State educational
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1 agency shall identify for improvement any local edu2 cational agency that—

3 ‘‘(A) for 2 consecutive years failed to make

4 adequate yearly progress as defined in the

5 State’s plan under section 1111(b)(2); or

6 ‘‘(B) was in improvement status under this

7 section as this section was in effect on the day

8 preceding the date of enactment of the Leave

9 No Child Behind Act of 2001.

10 ‘‘(3) TRANSITION.—The 2-year period described

11 in paragraph (2)(A) shall include any continuous pe12 riod of time immediately preceding the date of en13 actment of the Leave No Child Behind Act of 2001,

14 during which a local educational agency did not

15 make adequate yearly progress as defined in the

16 State’s plan, as such plan was in effect on the day

17 preceding the date of such enactment.

18 ‘‘(4) TARGETED ASSISTANCE SCHOOLS.—For

19 purposes of targeted assistance schools in a local

20 educational agency, a State educational agency may

21 choose to review the progress of only the students in

22 such schools who are served under this part.

23 ‘‘(5) OPPORTUNITY TO REVIEW AND PRESENT

24 EVIDENCE.—
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1 ‘‘(A) REVIEW.—Before identifying a local

2 educational agency for improvement under

3 paragraph (2), a State educational agency shall

4 provide the local educational agency with an op5 portunity to review the local educational agency

6 data, including assessment data, on which that

7 proposed identification is based.

8 ‘‘(B) SUPPORTING EVIDENCE.—If the local edu9 cational agency believes that the proposed identifica10 tion is in error for statistical or other substantive

11 reasons, it may provide supporting evidence to the

12 State educational agency, which such agency shall

13 consider before making a final determination.

14 ‘‘(6) NOTIFICATION TO PARENTS.—The State

15 educational agency shall promptly notify parents in

16 a format, and to the extent practicable in a language

17 they can understand, of each student enrolled in a

18 school in a local educational agency identified for

19 improvement, of the reasons for such agency’s iden20 tification and how parents can participate in upgrad21 ing the quality of the local educational agency.

22 ‘‘(7) LOCAL EDUCATIONAL AGENCY REVI23 SIONS.—

24 ‘‘(A) PLAN.—Each local educational agen25 cy identified under paragraph (2) shall, not
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1 later than 3 months after being so identified,

2 develop or revise a local educational agency

3 plan, in consultation with parents, school staff,

4 and others. Such plan shall—

5 ‘‘(i) incorporate scientifically based re6 search strategies that strengthen the core

7 academic program in the local educational

8 agency;

9 ‘‘(ii) identify specific goals and objec10 tives the local educational agency will un11 dertake to make adequate yearly progress

12 and which—

13 ‘‘(I) have the greatest likelihood

14 of improving the performance of par15 ticipating children in meeting the

16 State’s student performance stand17 ards;

18 ‘‘(II) address the professional de19 velopment needs of staff; and

20 ‘‘(III) include specific numerical

21 performance goals and targets for

22 each of the groups of students identi23 fied in the disaggregated data pursu24 ant to section 1111(b)(2) consistent

25 with section 1111(b)(2)(B);
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1 ‘‘(iii) identify how the local edu2 cational agency will provide written notifi3 cation to parents in a format, and to the

4 extent practicable in a language, they can

5 understand, pursuant to paragraph (6);

6 and

7 ‘‘(iv) specify the responsibilities of the

8 State educational agency and the local edu9 cational agency under the plan.

10 ‘‘(B) IMPLEMENTATION.—The local edu11 cational agency shall implement its plan or re12 vised plan expeditiously, but not later than the

13 beginning of the school year after which the

14 school has been identified for improvement.

15 ‘‘(8) STATE EDUCATIONAL AGENCY RESPONSI16 BILITY.—

17 ‘‘(A) IN GENERAL.—For each local edu18 cational agency identified under paragraph (2),

19 the State educational agency shall provide tech20 nical or other assistance, if requested, as au21 thorized under section 1117, to better enable

22 the local educational agency—

23 ‘‘(i) to develop and implement its re24 vised plan as approved by the State edu-
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1 cational agency consistent with the require2 ments of this section; and

3 ‘‘(ii) to work with schools needing im4 provement.

5 ‘‘(B) TECHNICAL ASSISTANCE.—Technical

6 assistance provided under this section by the

7 State educational agency or an entity author8 ized by such agency shall be based upon sci9 entifically based research.

10 ‘‘(9) CORRECTIVE ACTION.—In order to help

11 students served under this part meet challenging

12 State standards, each State educational agency shall

13 implement a system of corrective action in accord14 ance with the following:

15 ‘‘(A) IN GENERAL.—After providing tech16 nical assistance under paragraph (8) and sub17 ject to subparagraph (D), the State educational

18 agency—

19 ‘‘(i) may take corrective action at any

20 time with respect to a local educational

21 agency that has been identified under

22 paragraph (2);

23 ‘‘(ii) shall take corrective action with

24 respect to any local educational agency

25 that fails to make adequate yearly
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1 progress, as defined by the State, after the

2 end of the second year following its identi3 fication under paragraph (2); and

4 ‘‘(iii) shall continue to provide tech5 nical assistance while instituting any cor6 rective action under clause (i) or (ii).

7 ‘‘(B) DEFINITION.—As used in this para8 graph, the term ‘corrective action’ means ac9 tion, consistent with State law, that—

10 ‘‘(i) substantially and directly re11 sponds to the consistent academic failure

12 that caused the State educational agency

13 to take such action and to any underlying

14 staffing, curricular, or other problems in

15 the school; and

16 ‘‘(ii) is designed to meet the goal of

17 having all students served under this part

18 perform at the proficient and advanced

19 performance levels.

20 ‘‘(C) CERTAIN LOCAL EDUCATIONAL AGEN21 CIES.—In the case of a local educational agency

22 described in this paragraph, the State edu23 cational agency shall take not less than 1 of the

24 following corrective actions:
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1 ‘‘(i) Withhold funds from the local

2 educational agency.

3 ‘‘(ii) Reconstitute school district per4 sonnel.

5 ‘‘(iii) Remove particular schools from

6 the jurisdiction of the local educational

7 agency and establish alternative arrange8 ments for public governance and super9 vision of such schools.

10 ‘‘(iv) Appoint, through the State edu11 cational agency, a receiver or trustee to ad12 minister the affairs of the local educational

13 agency in place of the superintendent and

14 school board.

15 ‘‘(v) Abolish or restructure the local

16 educational agency.

17 ‘‘(vi) Authorize students to transfer

18 from a school operated by a local edu19 cational agency to a higher performing

20 public school operated by another local

21 educational agency, or to a public charter

22 school and provide such students transpor23 tation (or the costs of transportation) to

24 such schools, in conjunction with not less
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1 than 1 additional action described under

2 this paragraph.

3 ‘‘(D) HEARING.—Prior to implementing

4 any corrective action, the State educational

5 agency shall provide due process and a hearing

6 to the affected local educational agency, if State

7 law provides for such process and hearing.

8 ‘‘(E) PUBLICATION.—The State edu9 cational agency shall publish, and disseminate

10 to parents and the public any corrective action

11 it takes under this paragraph through such

12 means as the Internet, the media, and public

13 agencies.

14 ‘‘(F) DELAY.—A State educational agency

15 may delay, for a period not to exceed 1 year,

16 implementation of corrective action if the fail17 ure to make adequate yearly progress was justi18 fied due to exceptional or uncontrollable cir19 cumstances such as a natural disaster or a pre20 cipitous and unforeseen decline in the financial

21 resources of the local educational agency or

22 school.’’.
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1 SEC. 3440. STATE ASSISTANCE FOR SCHOOL SUPPORT AND

2 IMPROVEMENT.

3 Section 1117 of the Elementary and Secondary Edu4 cation Act of 1965 (20 U.S.C. 6318) is amended to read

5 as follows:

6 ‘‘SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND

7 IMPROVEMENT.

8 ‘‘(a) SYSTEM FOR SUPPORT.—Each State edu9 cational agency shall establish a statewide system of inten10 sive and sustained support and improvement for local edu11 cational agencies and schools receiving funds under this

12 part, in order to increase the opportunity for all students

13 in those agencies and schools to meet the State’s content

14 standards and student performance standards.

15 ‘‘(b) PRIORITIES.—In carrying out this section, a

16 State educational agency shall—

17 ‘‘(1) first, provide support and assistance to

18 local educational agencies subject to corrective action

19 under section 1116 and assist schools, in accordance

20 with section 1116(b)(10), for which a local edu21 cational agency has failed to carry out its respon22 sibilities under paragraph (8) or (9) of section

23 1116(b);

24 ‘‘(2) second, provide support and assistance to

25 other local educational agencies identified for im26 provement under section 1116; and
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1 ‘‘(3) third, provide support and assistance to

2 other local educational agencies and schools partici3 pating under this part that need that support and

4 assistance in order to achieve the purpose of this

5 part.

6 ‘‘(c) APPROACHES.—In order to achieve the purpose

7 described in subsection (a), each such system shall provide

8 technical assistance and support through such approaches

9 as—

10 ‘‘(1) school support teams, composed of individ11 uals who are knowledgeable about scientifically

12 based research on and practice of teaching and

13 learning, particularly about strategies for improving

14 educational results for low-achieving children; and

15 ‘‘(2) the designation and use of ‘‘Distinguished

16 Educators’’, chosen from schools served under this

17 part that have been especially successful in improv18 ing academic achievement.

19 ‘‘(d) FUNDS.—Each State educational agency shall

20 use funds reserved under section 1002(f) and authorized

21 under section 1002(i) for such purpose.

22 ‘‘(e) ALTERNATIVES.—The State may devise addi23 tional approaches to providing the assistance described in

24 paragraphs (1) and (2) of subsection (c), such as pro25 viding assistance through institutions of higher education
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1 and educational service agencies or other local consortia,

2 and the State may seek approval from the Secretary to

3 use funds made available under section 1002(h) for such

4 approaches as part of the State plan.’’.

5 SEC. 3441. ACADEMIC ACHIEVEMENT AWARDS PROGRAM;

6 IMPROVING STATE ASSESSMENTS.

7 Subpart 1 of part A of title I of the Elementary and

8 Secondary Education Act of 1965 (20 U.S.C. 6311 et

9 seq.) is amended by inserting after section 1117 the fol10 lowing:

11 ‘‘SEC. 1117A. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.

12 ‘‘(a) ESTABLISHMENT OF ACADEMIC ACHIEVEMENT

13 AWARDS PROGRAM.—

14 ‘‘(1) IN GENERAL.—Each State receiving a

15 grant under this part shall establish a program for

16 making academic achievement awards to recognize

17 and financially reward schools served under this part

18 that have—

19 ‘‘(A) significantly closed the achievement

20 gap between the groups of students defined in

21 section 1111(b)(2); or

22 ‘‘(B) exceeded their adequate yearly

23 progress goals, consistent with section

24 1111(b)(2), for 2 or more consecutive years.
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1 ‘‘(2) AWARDS TO TEACHERS.—A State program

2 under paragraph (1) shall also recognize and provide

3 financial awards to teachers teaching in a school de4 scribed in such paragraph whose students consist5 ently make significant gains in academic achieve6 ment in the areas in which the teacher provides in7 struction over multiple academic years.

8 ‘‘(b) FUNDING.—

9 ‘‘(1) RESERVATION OF FUNDS BY STATE.—For

10 the purpose of carrying out this section, each State

11 receiving a grant under this part shall reserve, from

12 the amount (if any) by which the funds received by

13 the State under this part for a fiscal year exceed the

14 amount received by the State under this part for the

15 preceding fiscal year, not more than 25 percent of

16 such excess amount.

17 ‘‘(2) USE WITHIN 3 YEARS.—Notwithstanding

18 any other provision of law, the amount reserved

19 under paragraph (1) by a State for each fiscal year

20 shall remain available to the State until expended

21 for a period not exceeding 3 years.

22 ‘‘(3) SPECIAL ALLOCATION RULE FOR SCHOOLS

23 IN HIGH-POVERTY AREAS.—

24 ‘‘(A) IN GENERAL.—Each State receiving

25 a grant under this part shall distribute at least
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1 85 percent of the amount reserved under para2 graph (1) for each fiscal year to schools de3 scribed in subparagraph (B), or to teachers

4 teaching in such schools.

5 ‘‘(B) SCHOOLS DESCRIBED.—A school de6 scribed in subparagraph (A) is a school whose

7 student population is in the highest quartile of

8 schools statewide in terms of the percentage of

9 children eligible for free or reduced priced

10 lunches under the Richard B. Russell National

11 School Lunch Act.

12 ‘‘SEC. 1117B. GRANTS FOR THE IMPROVEMENT OF STATE

13 ASSESSMENT SYSTEMS.

14 ‘‘(a) PURPOSE.—The purpose of this section is to en15 able States to improve the quality and fairness of State

16 assessment systems and to ensure that such assessment

17 systems accurately measure how well all children are

18 achieving challenging State student performance stand19 ards.

20 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary is au21 thorized to award grants, in an amount not less than

22 $500,000, to State educational agencies with final assess23 ment systems that have been reviewed by the Secretary

24 and approved as being deemed in full compliance with sec25 tion 1111(b)(4).
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1 ‘‘(c) APPLICATION.—A State educational agency de2 siring a grant under this section for any fiscal year, shall

3 submit an application to the Secretary for approval, at

4 such time and containing such information as the Sec5 retary may require.

6 ‘‘(d) AUTHORIZED USES OF FUNDS.—States having

7 an approved application under subsection (c) may use

8 grant funds for the purpose of—

9 ‘‘(1) assuring the continued validity and reli10 ability of State assessments;

11 ‘‘(2) refining the assessments to ensure their

12 continued alignment with the State’s content stand13 ards;

14 ‘‘(3) providing for multiple measures to increase

15 the reliability and validity of student and school clas16 sifications that have high stakes consequences;

17 ‘‘(4) strengthening the capacity of local edu18 cational agencies and schools to provide all students

19 the opportunity to increase educational achievement

20 and to ensure fairness and equitable treatment in

21 testing;

22 ‘‘(5) expanding the range of accommodations

23 available to limited English proficient students and

24 students with disabilities to improve rates of inclu25 sion and to include instructional material develop-
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1 ment and modified assessment practices that are

2 culturally and ability appropriate, respectively;

3 ‘‘(6) improving the alignment of curricula and

4 instruction materials with the State content stand5 ards and State performance standards;

6 ‘‘(7) enhancing opportunities for professional

7 development for teachers that include—

8 ‘‘(A) improving the capability of teachers

9 to be proficient in sound classroom assessment

10 and knowledgeable in State content and per11 formance standards and assessments; and

12 ‘‘(B) improving the capability of teachers

13 to provide high quality instruction within the

14 content areas;

15 ‘‘(8) providing for the collection of performance

16 data for children in kindergarten through grade 2—

17 ‘‘(A) for early diagnosis of children’s

18 needs;

19 ‘‘(B) to evaluate program effectiveness;

20 ‘‘(C) to guide curriculum and instruction;

21 or

22 ‘‘(D) to provide information that can be

23 used to measure school and local educational

24 agency progress;
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1 ‘‘(9) expanding the range of valid and reliable

2 assessments to other academic subjects such as

3 science, history, geography, foreign languages, the

4 arts, civic and government, and economics; and

5 ‘‘(10) improving the dissemination of informa6 tion on student achievement and school performance

7 to parents and the community.

8 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There

9 are authorized to be appropriated to carry out this section,

10 $100,000,000 for fiscal year 2002, and such sums as may

11 be necessary for each of the 4 succeeding fiscal years.’’.

12 SEC. 3442. PARENTAL INVOLVEMENT CHANGES.

13 (a) LOCAL EDUCATIONAL AGENCY POLICY.—Sub14 section (a) of section 1118 of the Elementary and Sec15 ondary Education Act of 1965 (20 U.S.C. 6319(a)) is

16 amended—

17 (1) in paragraph (1), by striking ‘‘programs,

18 activities, and procedures’’ and inserting ‘‘activities

19 and procedures’’.

20 (2) in paragraph (2) by striking subparagraphs

21 (E) and (F) and inserting the following:

22 ‘‘(E) conduct, with the involvement of par23 ents, an annual evaluation of the content and

24 effectiveness of the parental involvement policy
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1 in improving the academic quality of the schools

2 served under this part;

3 ‘‘(F) involve parents in efforts to improve

4 academics in schools served under this part;

5 and

6 ‘‘(G) promote consumer friendly environ7 ments at the local educational agency and

8 schools served under this part.’’;

9 (3) in paragraph (3) by adding at the end the

10 following new subparagraph:

11 ‘‘(C) Not less than 90 percent of the funds re12 served under subparagraph (A) shall be distributed

13 to schools served under this part.’’.

14 (b) NOTICE.—Paragraph (1) of section 1118(b) of

15 the Elementary and Secondary Education Act of 1965 (20

16 U.S.C. 6319(b)(1)) is amended by inserting after the first

17 sentence the following: ‘‘Parents shall be notified of the

18 policy in a format, and to the extent practicable, in a lan19 guage they can understand.’’.

20 (c) PARENTAL INVOLVEMENT.—Paragraph (4) of

21 section 1118(c) of the Elementary and Secondary Edu22 cation Act of 1965 (20 U.S.C. 6319(c)(4)) is amended—

23 (1) in subparagraph (B), by striking ‘‘perform24 ance profiles required under section 1116(a)(3)’’ and
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1 inserting ‘‘school report cards required under section

2 1111’’;

3 (2) by redesignating subparagraphs (D) and

4 (E) as subparagraphs (F) and (G), respectively;

5 (3) by inserting after subparagraph (C) the fol6 lowing new subparagraphs:

7 ‘‘(D) notice of the school’s status as a

8 school identified for school improvement under

9 section 1116(b), if applicable, and a clear expla10 nation of what such identification means;

11 ‘‘(E) notice of the corrective action that

12 has been taken against the school under section

13 1116(b)(9) and 1116(c)(9), if applicable, and a

14 clear explanation of what such action means;’’;

15 and

16 (4) in subparagraph (G) (as so redesignated),

17 by striking ‘‘subparagraph (D)’’ and inserting ‘‘sub18 paragraph (F)’’.

19 (d) BUILDING CAPACITY FOR INVOLVEMENT.—Sub20 section (e) of section 1118 of the Elementary and Sec21 ondary Education Act of 1965 (20 U.S.C 6319(e)) is

22 amended to read as follows:

23 ‘‘(e) BUILDING CAPACITY FOR INVOLVEMENT.—To

24 ensure effective involvement of parents and to support a

25 partnership among the school, parents, and the commu-
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1 nity to improve student achievement, each school and local

2 educational agency—

3 ‘‘(1) shall provide assistance to participating

4 parents in such areas as understanding the State’s

5 content standards and State student performance

6 standards, the provisions of section 1111(b)(8),

7 State and local assessments, the requirements of this

8 part, and how to monitor a child’s progress and

9 work with educators to improve the performance of

10 their children as well as information on how parents

11 can participate in decisions relating to the education

12 of their children;

13 ‘‘(2) shall provide materials and training, such

14 as—

15 ‘‘(A) coordinating necessary literacy train16 ing from other sources to help parents work

17 with their children to improve their children’s

18 achievement; and

19 ‘‘(B) training to help parents work with

20 their children to improve their children’s

21 achievement;

22 ‘‘(3) shall educate teachers, pupil services per23 sonnel, principals, and other staff, with the assist24 ance of parents, in the value and utility of contribu25 tions of parents, and in how to reach out to, commu-
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1 nicate with, and work with parents as equal part2 ners, implement and coordinate parent programs,

3 and build ties between home and school;

4 ‘‘(4) shall coordinate and integrate parent in5 volvement programs and activities with Head Start,

6 Even Start, the Home Instruction Programs for

7 Preschool Youngsters, the Parents as Teachers Pro8 gram, and public preschool programs and other pro9 grams, to the extent feasible and appropriate;

10 ‘‘(5) shall conduct other activities, as appro11 priate and feasible, such as parent resource centers

12 and opportunities for parents to learn how to be13 come full partners in the education of their children;

14 ‘‘(6) shall ensure, to the extent possible, that

15 information related to school and parent programs,

16 meetings, and other activities is sent to the homes

17 of participating children in the language used in

18 such homes;

19 ‘‘(7) shall provide such other reasonable sup20 port for parental involvement activities under this

21 section as parents may request;

22 ‘‘(8) shall expand the use of electronic commu23 nications among teachers, students, and parents,

24 such as through the use of websites and e-mail com25 munications;
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1 ‘‘(9) may involve parents in the development of

2 training for teachers, principals, and other educators

3 to improve the effectiveness of such training in im4 proving instruction and services to the children of

5 such parents in a format, and to the extent prac6 ticable, in a language the parents can understand;

7 ‘‘(10) may provide necessary literacy training

8 from funds received under this part if the local edu9 cational agency has exhausted all other reasonably

10 available sources of funding for such activities;

11 ‘‘(11) may pay reasonable and necessary ex12 penses associated with local parental involvement ac13 tivities, including transportation and child care

14 costs, to enable parents to participate in school-re15 lated meetings and training sessions;

16 ‘‘(12) may train and support parents to en17 hance the involvement of other parents;

18 ‘‘(13) may arrange meetings at a variety of

19 times, such as in the mornings and evenings, in

20 order to maximize the opportunities for parents to

21 participate in school related activities;

22 ‘‘(14) may arrange for teachers or other edu23 cators, who work directly with participating children,

24 to conduct in-home conferences with parents who are

25 unable to attend such conferences at school;
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1 ‘‘(15) may adopt and implement model ap2 proaches to improving parental involvement, such as

3 Even Start;

4 ‘‘(16) may establish a district-wide parent advi5 sory council to advise on all matters related to pa6 rental involvement in programs supported under this

7 part; and

8 ‘‘(17) may develop appropriate roles for com9 munity-based organizations and businesses in parent

10 involvement activities, including providing informa11 tion about opportunities for organizations and busi12 nesses to work with parents and schools, and en13 couraging the formation of partnerships between ele14 mentary, middle, and secondary schools and local

15 businesses that include a role for parents.’’.

16 (e) ACCESSIBILITY.—Subsection (f) of section 1118

17 of the Elementary and Secondary Education Act of 1965

18 (20 U.S.C. 6319(f)) is amended to read as follows:

19 ‘‘(f) ACCESSIBILITY.—In carrying out the parental

20 involvement requirements of this part, local educational

21 agencies and schools, to the extent practicable, shall pro22 vide full opportunities for the participation of parents with

23 limited English proficiency, parents with disabilities, and

24 parents of migratory children, including providing infor25 mation and school report cards required under section
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1 1111 in a format, and to the extent practicable, in a lan2 guage such parents understand.’’.

3 SEC. 3443. PROFESSIONAL DEVELOPMENT.

4 Subpart 1 of part A of title I of the Elementary and

5 Secondary Education Act of 1965 (20 U.S.C. 6311 et

6 seq.) is amended by inserting after section 1119 the fol7 lowing:

8 ‘‘SEC. 1119A. PROFESSIONAL DEVELOPMENT.

9 ‘‘(a) PURPOSE.—The purpose of this section is to as10 sist each local educational agency receiving assistance

11 under this part in increasing the academic achievement

12 of eligible children (as defined in section 1115(b)(1)(B))

13 through improved teacher quality.

14 ‘‘(b) PROFESSIONAL DEVELOPMENT ACTIVITIES.—

15 ‘‘(1) REQUIRED ACTIVITIES.—Professional de16 velopment activities under this section shall—

17 ‘‘(A) support professional development ac18 tivities that give teachers, principals, and ad19 ministrators the knowledge and skills to provide

20 students with the opportunity to meet chal21 lenging State or local content standards and

22 student performance standards;

23 ‘‘(B) support the recruiting, hiring, and

24 training of fully qualified teachers, including
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1 teachers fully qualified through State and local

2 alternative routes;

3 ‘‘(C) advance teacher understanding of ef4 fective instructional strategies based on scientif5 ically based research for improving student

6 achievement, at a minimum, in reading or lan7 guage arts and mathematics;

8 ‘‘(D) be directly related to the curriculum

9 and content areas in which the teacher provides

10 instruction;

11 ‘‘(E) be designed to enhance the ability of

12 a teacher to understand and use the State’s

13 standards for the subject area in which the

14 teacher provides instruction;

15 ‘‘(F) be tied to scientifically based research

16 demonstrating the effectiveness of such profes17 sional development activities or programs in in18 creasing student achievement or substantially

19 increasing the knowledge and teaching skills of

20 teachers;

21 ‘‘(G) be of sufficient intensity and duration

22 (not to include 1-day or short-term workshops

23 and conferences) to have a positive and lasting

24 impact on the teacher’s performance in the

25 classroom, except that this paragraph shall not
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1 apply to an activity if such activity is 1 compo2 nent of a long-term comprehensive professional

3 development plan established by the teacher

4 and the teacher’s supervisor based upon an as5 sessment of their needs, their students’ needs,

6 and the needs of the local educational agency;

7 ‘‘(H) be developed with extensive participa8 tion of teachers, principals, parents, and admin9 istrators of schools to be served under this part;

10 ‘‘(I) to the extent appropriate, provide

11 training for teachers in the use of technology so

12 that technology and its applications are effec13 tively used in the classroom to improve teaching

14 and learning in the curriculum and academic

15 content areas in which the teachers provide in16 struction;

17 ‘‘(J) as a whole, be regularly evaluated for

18 their impact on increased teacher effectiveness

19 and improved student achievement, with the

20 findings of such evaluations used to improve the

21 quality of professional development; and

22 ‘‘(K) include strategies for identifying and

23 eliminating gender and racial bias in instruc24 tional materials, methods, and practices.
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1 ‘‘(2) OPTIONAL ACTIVITIES.—Such professional

2 development activities may include—

3 ‘‘(A) instruction in the use of data and as4 sessments to inform and instruct classroom

5 practice;

6 ‘‘(B) instruction in ways that teachers,

7 principals, pupil services personnel, and school

8 administrators may work more effectively with

9 parents;

10 ‘‘(C) the forming of partnerships with in11 stitutions of higher education to establish

12 school-based teacher training programs that

13 provide prospective teachers and novice teachers

14 with an opportunity to work under the guidance

15 of experienced teachers and college faculty, but

16 only if each such institution of higher education

17 meets the reporting requirements of section 207

18 of the Higher Education Act of 1965 (20

19 U.S.C. 1027) and its teacher preparation pro20 gram has not been identified by its State as

21 low-performing under such Act;

22 ‘‘(D) the creation of career ladder pro23 grams for paraprofessionals (assisting teachers

24 under this part) to obtain the education nec-
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1 essary for such paraprofessionals to become li2 censed and certified teachers;

3 ‘‘(E) instruction in ways to teach special

4 needs children;

5 ‘‘(F) instruction in the ways that teachers,

6 principals, and guidance counselors can work

7 with parents and students from groups such as

8 females and minorities that are under rep9 resented in careers in mathematics, science, en10 gineering, and technology, to encourage and

11 maintain the interest of such students in these

12 careers;

13 ‘‘(G) joint professional development activi14 ties involving programs under this part, Head

15 Start, Even Start, or State-run preschool pro16 gram personnel;

17 ‘‘(H) instruction in experiential-based

18 teaching methods such as service or applied

19 learning;

20 ‘‘(I) mentoring programs focusing on

21 changing teacher behaviors and practices to

22 help novice teachers, including teachers who are

23 members of a minority group, develop and gain

24 confidence in their skills, to increase the likeli25 hood that they will continue in the teaching
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1 profession, and generally to improve the quality

2 of their teaching; and

3 ‘‘(J) instruction in gender-equitable meth4 ods, techniques, and practices.

5 ‘‘(c) PROGRAM PARTICIPATION.—Each local edu6 cational agency receiving assistance under this part may

7 design professional development programs so that—

8 ‘‘(1) all school staff in schools participating in

9 a schoolwide program under section 1114 can par10 ticipate in professional development activities; and

11 ‘‘(2) all school staff in targeted assistance

12 schools may participate in professional development

13 activities if such participation will result in better

14 addressing the needs of students served under this

15 part.

16 ‘‘(d) PARENTAL PARTICIPATION.—Parents may par17 ticipate in professional development activities under this

18 part if the school determines that parental participation

19 is appropriate.

20 ‘‘(e) CONSORTIA.—In carrying out such professional

21 development programs, local educational agencies may

22 provide services through consortia arrangements with

23 other local educational agencies, educational service agen24 cies or other local consortia, institutions of higher edu25 cation, or other public or private institutions or organiza-
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1 tions, but only if each such institution of higher education

2 meets the reporting requirements of section 207 of the

3 Higher Education Act of 1965 (20 U.S.C. 1027) and its

4 teacher preparation program has not been identified by

5 its State as low-performing under such Act.

6 ‘‘(f) CONSOLIDATION OF FUNDS.—Funds provided

7 under this part that are used for professional development

8 purposes may be consolidated with funds provided under

9 title II of this Act and other sources.

10 ‘‘(g) SPECIAL RULE.—No State educational agency

11 shall require a school or a local educational agency to ex12 pend a specific amount of funds for professional develop13 ment activities under this part, except that this paragraph

14 shall not apply with respect to requirements under section

15 1116(c)(9).’’.

16 SEC. 3444. REQUIREMENTS; RECORDS.

17 (a) REQUIREMENTS.—Section 1120A(c)(2) of the El18 ementary and Secondary Education Act of 1965 (20

19 U.S.C. 6322(c)(2)) is amended to read as follows:

20 ‘‘(2) CRITERIA FOR MEETING COMPARABILITY

21 REQUIREMENT.—

22 ‘‘(A) APPROVAL.—To meet the require23 ment of paragraph (1), a local educational

24 agency shall obtain the State educational agen25 cy’s approval of a comprehensive, 3-year plan to
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1 ensure comparability in the use of State and

2 local funds and educational services among its

3 schools receiving funds under this part and its

4 other schools with respect to:

5 ‘‘(i) the rates at which class sections

6 are taught by experienced and fully quali7 fied teachers, including such rates for low8 income and minority students;

9 ‘‘(ii) curriculum, in terms of both the

10 range of courses offered, and the oppor11 tunity to participate in rigorous courses in12 cluding advanced placement (AP) courses,

13 including such rates for low-income and

14 minority students; and

15 ‘‘(iii) the quality and availability of in16 structional materials and instructional re17 sources including technology.’’

18 ‘‘(B) EXCLUSION.—A local educational

19 agency need not include unpredictable changes

20 in student enrollment or personnel assignments

21 that occur after the beginning of a school year

22 in determining comparability of services under

23 this subsection.

24 ‘‘(C) REQUIREMENTS.—Notwithstanding

25 subparagraph (A), a local educational agency
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1 may continue to meet the requirement of para2 graph (1) by complying with subparagraph (A)

3 as such subparagraph was in effect on the day

4 preceding the date of enactment of the Leave

5 No Child Behind Act of 2001, except that each

6 local educational agency shall be required to

7 comply with subparagraph (A), as amended by

8 such Act not later than July 1, 2004.’’.

9 (b) RECORDS.—Section 1120A(c)(3)(B) of the Ele10 mentary and Secondary Education Act of 1965 (20 U.S.C.

11 6322(c)(3)(B)) is amended by striking ‘‘biennially’’ and

12 inserting ‘‘annually’’.

13 SEC. 3445. COORDINATION REQUIREMENTS.

14 Section 1120B of the Elementary and Secondary

15 Education Act of 1965 (20 U.S.C. 6323 et seq.) is

16 amended—

17 (1) in subsection (a), by striking ‘‘to the extent

18 feasible’’ and all that follows through the period and

19 inserting ‘‘with local Head Start agencies, and if

20 feasible, other early childhood development pro21 grams.’’;

22 (2) in subsection (b)—

23 (A) in paragraph (3) by striking ‘‘and’’

24 after the semicolon;
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1 (B) in paragraph (4) by striking the period

2 and inserting ‘‘; and’’; and

3 (C) by adding at the end, the following:

4 ‘‘(5) linking the educational services provided in

5 such local educational agency with the services pro6 vided in local Head Start agencies.’’.

7 Chapter 5—Quality Teaching and Leadership

8 Subchapter A—Amendments to Title II of the

9 Elementary and Secondary Education Act

10 of 1965

11 SEC. 3461. AMENDMENTS TO TITLE II.

12 Title II of the Elementary and Secondary Education

13 Act of 1965 (20 U.S.C. 6601 et seq.) is amended—

14 (1) by redesignating part E as part J;

15 (2) by redesignating sections 2401 and 2402 as

16 sections 2901 and 2902 respectively; and

17 (3) by inserting after part D the following:

18 ‘‘PART E—CLASS SIZE REDUCTION

19 ‘‘SEC. 2401. GRANT PROGRAM.

20 ‘‘(a) PURPOSES.—The purposes of this section are—

21 ‘‘(1) to reduce class size through the use of

22 fully qualified teachers;

23 ‘‘(2) to assist States and local educational agen24 cies in recruiting, hiring, and training 100,000

25 teachers in order to reduce class sizes nationally, in
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1 kindergarten through grade 3, to an average of 18

2 students per regular classroom; and

3 ‘‘(3) to improve teaching in those grades so

4 that all students can learn to read independently

5 and well by the end of the 3d grade.

6 ‘‘(b) ALLOTMENT TO STATES.—

7 ‘‘(1) RESERVATION.—From the amount made

8 available to carry out this part for a fiscal year, the

9 Secretary shall reserve not more than 1 percent for

10 the Secretary of the Interior (on behalf of the Bu11 reau of Indian Affairs) and the outlying areas for

12 activities carried out in accordance with this section.

13 ‘‘(2) STATE ALLOTMENTS.—

14 ‘‘(A) HOLD HARMLESS.—

15 ‘‘(i) IN GENERAL.—Subject to sub16 paragraph (B) and clause (ii), from the

17 amount made available to carry out this

18 part for a fiscal year and not reserved

19 under paragraph (1), the Secretary shall

20 allot to each State an amount equal to the

21 amount that such State received for the

22 preceding fiscal year under this section or

23 section 306 of the Department of Edu24 cation Appropriations Act, 2001, as the

25 case may be.
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1 ‘‘(ii) RATABLE REDUCTION.—If the

2 amount made available to carry out this

3 part for a fiscal year and not reserved

4 under paragraph (1) is insufficient to pay

5 the full amounts that all States are eligible

6 to receive under clause (i) for such fiscal

7 year, the Secretary shall ratably reduce

8 such amounts for such fiscal year.

9 ‘‘(B) ALLOTMENT OF ADDITIONAL

10 FUNDS.—

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

12 (ii), for any fiscal year for which the

13 amount made available to carry out this

14 part and not reserved under paragraph (1)

15 exceeds the amount made available to the

16 States for the preceding year under the au17 thorities described in subparagraph (A)(i),

18 the Secretary shall allot to each of those

19 States the percentage of the excess amount

20 that is the greater of—

21 ‘‘(I) the percentage the State re22 ceived for the preceding fiscal year of

23 the total amount made available to

24 the States under section 1122; or
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1 ‘‘(II) the percentage so received

2 of the total amount made available to

3 the States under section 6101(b), as

4 in effect on the day before the date of

5 enactment of the Leave No Child Be6 hind Act of 2001, or the cor7 responding provision of this title, as

8 the case may be.

9 ‘‘(ii) RATABLE REDUCTIONS.—If the

10 excess amount for a fiscal year is insuffi11 cient to pay the full amounts that all

12 States are eligible to receive under clause

13 (i) for such fiscal year, the Secretary shall

14 ratably reduce such amounts for such fis15 cal year.

16 ‘‘(c) ALLOCATION TO LOCAL EDUCATIONAL AGEN17 CIES.—

18 ‘‘(1) ALLOCATION.—Each State that receives

19 funds under this section shall allocate 100 percent

20 of those funds to local educational agencies, of

21 which—

22 ‘‘(A) 80 percent shall be allocated to those

23 local educational agencies in proportion to the

24 number of children, age 5 through 17, from

25 families with incomes below the poverty line (as
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1 defined by the Office of Management and

2 Budget and revised annually in accordance with

3 section 673(2) of the Community Services

4 Block Grant Act (42 U.S.C. 9902(2))) applica5 ble to a family of the size involved, who reside

6 in the school district served by that local edu7 cational agency for the most recent fiscal year

8 for which satisfactory data are available, com9 pared to the number of those children who re10 side in the school districts served by all the

11 local educational agencies in the State for that

12 fiscal year; and

13 ‘‘(B) 20 percent shall be allocated to those

14 local educational agencies in accordance with

15 the relative enrollments of children, age 5

16 through 17, in public and private nonprofit ele17 mentary schools and secondary schools within

18 the areas served by those agencies.

19 ‘‘(2) EXCEPTION.—Notwithstanding paragraph

20 (1) and subsection (d)(2)(B), if the award to a local

21 educational agency under this section is less than

22 the starting salary for a new fully qualified teacher

23 for a school served by that agency, that agency may

24 use funds made available under this section to—
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1 ‘‘(A) help pay the salary of a full- or part2 time fully qualified teacher hired to reduce class

3 size, which may be done in combination with

4 the expenditure of other Federal, State, or local

5 funds; or

6 ‘‘(B) pay for activities described in sub7 section (d)(2)(A)(iii) that may be related to

8 teaching in smaller classes.

9 ‘‘(d) USE OF FUNDS.—

10 ‘‘(1) MANDATORY USES.—Each local edu11 cational agency that receives funds under this sec12 tion shall use those funds to carry out effective ap13 proaches to reducing class size through use of fully

14 qualified teachers to improve educational achieve15 ment for both regular and special needs children,

16 with particular consideration given to reducing class

17 size in the early elementary grades for which some

18 research has shown class size reduction is most ef19 fective.

20 ‘‘(2) PERMISSIBLE USES.—

21 ‘‘(A) IN GENERAL.—Each such local edu22 cational agency may use funds made available

23 under this section for—

24 ‘‘(i) recruiting (including through the

25 use of signing bonuses and other financial
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1 incentives), hiring, and training fully quali2 fied regular and special education teachers

3 (which may include hiring special edu4 cation teachers to team-teach with regular

5 teachers in classrooms that contain both

6 children with disabilities and non-disabled

7 children) and teachers of special needs

8 children;

9 ‘‘(ii) testing new teachers for aca10 demic content knowledge, and to meet

11 State certification or licensing require12 ments that are consistent with title II of

13 the Higher Education Act of 1965; and

14 ‘‘(iii) providing professional develop15 ment (which may include such activities as

16 promoting retention and mentoring) for

17 teachers, including special education teach18 ers and teachers of special needs children,

19 in order to meet the goal of ensuring that

20 all teachers have the general knowledge,

21 teaching skills, and subject matter knowl22 edge necessary to teach effectively in the

23 content areas in which the teachers teach,

24 consistent with title II of the Higher Edu25 cation Act of 1965.
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1 ‘‘(B) LIMITATION ON TESTING AND PRO2 FESSIONAL DEVELOPMENT.—

3 ‘‘(i) IN GENERAL.—Except as pro4 vided in clause (ii), a local educational

5 agency may use not more than a total of

6 25 percent of the funds received by the

7 agency under this section for activities de8 scribed in clauses (ii) and (iii) of subpara9 graph (A).

10 ‘‘(ii) SPECIAL RULE.—A local edu11 cational agency may use more than 25 per12 cent of the funds the agency receives under

13 this section for activities described in sub14 paragraph (A)(iii) for the purpose of help15 ing teachers who are not yet fully qualified

16 in attaining full qualification if 10 percent

17 or more of the elementary school classes in

18 a school are taught by individuals who are

19 not fully qualified teachers or the State

20 educational agency has waived State cer21 tification or licensing requirements for 10

22 percent or more of such teachers.

23 ‘‘(C) USE OF FUNDS BY AGENCIES THAT

24 HAVE REDUCED CLASS SIZE.—Notwithstanding

25 subparagraph (B), a local educational agency
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1 that has already reduced class size in the early

2 elementary grades to 18 or fewer children (or

3 has already reduced class size to a State or

4 local class size reduction goal that was in effect

5 on November 28, 1999 if that goal is 20 or

6 fewer children) may use funds received under

7 this section—

8 ‘‘(i) to make further class size reduc9 tions in kindergarten through third grade;

10 ‘‘(ii) to reduce class size in other

11 grades; or

12 ‘‘(iii) to carry out activities to improve

13 teacher quality, including professional de14 velopment.

15 ‘‘(3) SUPPLEMENT, NOT SUPPLANT.—Each

16 such agency shall use funds made available under

17 this section only to supplement, and not to supplant,

18 State and local funds that, in the absence of funds

19 made available under this section, would otherwise

20 be expended for activities described in this section.

21 ‘‘(4) LIMITATION ON USE FOR SALARIES AND

22 BENEFITS.—

23 ‘‘(A) IN GENERAL.—Except as provided in

24 subparagraph (B), no funds made available

25 under this section may be used to increase the
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1 salaries of, or provide benefits (other than par2 ticipation in professional development and en3 richment programs) to, teachers who are not

4 hired under this section.

5 ‘‘(B) EXCEPTION.—Funds made available

6 under this section may be used to pay the sala7 ries of teachers hired under section 306 of the

8 Department of Education Appropriations Act,

9 2001.

10 ‘‘(e) REPORTS.—

11 ‘‘(1) STATE ACTIVITIES.—Each State receiving

12 funds under this section shall prepare and submit to

13 the Secretary a biennial report on activities carried

14 out in the State under this section that provides the

15 information described in section 6202(a)(2) with re16 spect to the activities.

17 ‘‘(2) PROGRESS CONCERNING CLASS SIZE AND

18 QUALIFIED TEACHERS.—Each State and local edu19 cational agency receiving funds under this section

20 shall annually report to parents and the public, in

21 numeric form as compared to the previous year,

22 on—

23 ‘‘(A) the agency’s progress in reducing

24 class size, and increasing the percentage of
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1 classes in core academic areas taught by fully

2 qualified teachers ; and

3 ‘‘(B) the impact that hiring additional fully

4 qualified teachers and reducing class size, has

5 had, if any, on increasing student academic

6 achievement.

7 ‘‘(3) NOTICE.—Each local educational agency

8 that receives funds under this section shall provide,

9 to each individual parent of a child who attends a

10 school served by such local educational agency, time11 ly, written notice if the child has been assigned or

12 has been taught for 2 or more consecutive weeks by

13 a substitute teacher, as defined by such local edu14 cational agency, or a teacher who is not fully quali15 fied.

16 ‘‘(f) PRIVATE SCHOOLS.—If a local educational agen17 cy uses funds made available under this section for profes18 sional development activities, the agency shall ensure the

19 equitable participation of private nonprofit elementary

20 schools and secondary schools in such activities in accord21 ance with section 6402. Section 6402 shall not apply to

22 other activities carried out under this section.

23 ‘‘(g) ADMINISTRATIVE EXPENSES.—A local edu24 cational agency that receives funds under this section may
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1 use not more than 3 percent of such funds for local admin2 istrative costs.

3 ‘‘(h) APPLICATION.—Each local educational agency

4 that desires to receive funds under this section shall sub5 mit an application to the State educational agency at such

6 time, in such manner, and containing such information as

7 the State educational agency may require. Each such ap8 plication shall include a description of the agency’s pro9 gram to reduce class size by hiring additional fully quali10 fied teachers.

11 ‘‘(i) CERTIFICATION, LICENSING, AND COM12 PETENCY.—No funds made available under this section

13 may be used to pay the salary of any teacher unless such

14 teacher is fully qualified.

15 ‘‘(j) DEFINITION.—As used in this section, the term

16 ‘certified’ includes certification through State or local al17 ternative routes.

18 ‘‘SEC. 2402. AUTHORIZATION OF APPROPRIATIONS.

19 ‘‘There are authorized to be appropriated to carry out

20 this part $2,537,000,000 for fiscal year 2002,

21 $3,452,000,000 for fiscal year 2003, $4,336,000,000 for

22 fiscal year 2004, and $5,281,000,000 for each of fiscal

23 years 2005 and 2006.
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1 ‘‘PART F—TROOPS TO TEACHERS

2 ‘‘SEC. 2501. FINDINGS.

3 ‘‘Congress finds the following:

4 ‘‘(1) School districts will need to hire more than

5 2,000,000 teachers during the first decade of the

6 21st century.

7 ‘‘(2) The need for teachers in the areas of

8 mathematics, science, foreign languages, special edu9 cation, and bilingual education, and for teachers able

10 to teach in high-poverty school districts, will be par11 ticularly high. To meet this need, talented Ameri12 cans of all ages should be recruited to become suc13 cessful, qualified teachers.

14 ‘‘(3) Nearly 13 percent of teachers of academic

15 subjects have neither an undergraduate major nor

16 minor in their main assignment fields. This problem

17 is most acute in high-poverty local educational agen18 cies, where the out-of-field teaching percentage is 22

19 percent.

20 ‘‘(4) The Third International Math and Science

21 Study (TIMSS) ranked United States high school

22 seniors last among 16 countries in physics and next

23 to last in mathematics. It is also evident, mainly

24 from the TIMSS data, that based on academic

25 scores, a stronger emphasis needs to be placed on
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1 the academic preparation of our children in mathe2 matics and science.

3 ‘‘(5) One-fourth of high-poverty local edu4 cational agencies find it very difficult to fill bilingual

5 teaching positions, and nearly half of public school

6 teachers have students in their classrooms for whom

7 English is a second language.

8 ‘‘(6) Many career-changing professionals with

9 strong content-area skills are interested in a teach10 ing career, but they need assistance in getting the

11 appropriate pedagogical training and classroom ex12 perience.

13 ‘‘(7) The teacher placement program known as

14 the ‘troops-to-teachers program’, which was estab15 lished by the Secretary of Defense and the Secretary

16 of Transportation under section 1151 of title 10,

17 United States Code, has been highly successful in

18 securing high-quality teachers for teaching positions

19 in high-poverty local educational agencies.

20 ‘‘SEC. 2502. PURPOSE.

21 ‘‘The purpose of this part is to address the need of

22 local educational agencies that are high-poverty local edu23 cational agencies or low-performing local educational

24 agencies for fully qualified teachers in particular subject
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1 areas, such as mathematics, science, foreign languages, bi2 lingual education, and special education, by—

3 ‘‘(1) continuing and enhancing the troops-to4 teachers program for recruiting and supporting the

5 placement of former members of the Armed Forces

6 as teachers in such local educational agencies; and

7 ‘‘(2) recruiting, preparing, placing, and sup8 porting career-changing professionals who have

9 knowledge and experience that will help them be10 come such teachers.

11 ‘‘SEC. 2503. CONTINUATION AND SUPPORT FOR TROOPS-TO12 TEACHERS PROGRAM.

13 ‘‘(a) CONTINUATION.—The Secretary may enter into

14 a written agreement with the Secretary of Defense and

15 the Secretary of Transportation, or take such other steps

16 as the Secretary determines are appropriate, to ensure ef17 fective continuation of the troops-to-teachers program,

18 notwithstanding the duration of the program specified in

19 section 1151(c)(1)(A) of title 10, United States Code.

20 ‘‘(b) SUPPORT.—Before providing any assistance

21 under section 2504 for a fiscal year, the Secretary shall

22 first—

23 ‘‘(1) consult with the Secretary of Defense and

24 the Secretary of Transportation regarding the ap-
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1 propriate amount of funding needed to continue and

2 enhance the troops-to-teachers program; and

3 ‘‘(2) upon agreement, transfer that amount to

4 the Secretary of Defense to carry out the troops-to5 teachers program.

6 ‘‘SEC. 2504. TRANSITION OF CAREER-CHANGING PROFES7 SIONALS TO TEACHING.

8 ‘‘(a) AUTHORITY TO SUPPORT TRANSITION PRO9 GRAMS.—The Secretary may use funds appropriated pur10 suant to the authorization of appropriations in section

11 2507 to award grants to, and enter into contracts or coop12 erative agreements with, institutions of higher education,

13 including historically Black colleges and universities and

14 Hispanic-serving institutions, and public and private non15 profit agencies or organizations to recruit, prepare, place,

16 and support career-changing professionals as teachers in

17 local educational agencies that are high-poverty local edu18 cational agencies or low-performing local educational

19 agencies.

20 ‘‘(b) APPLICATION.—Each entity described in sub21 section (a) that desires assistance under subsection (a)

22 shall submit an application to the Secretary containing

23 such information as the Secretary may require,

24 including—
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1 ‘‘(1) a description of the target group of career2 changing professionals upon which the applicant will

3 focus in carrying out its program under this part,

4 including a description of the characteristics of that

5 target group that shows how the knowledge and ex6 perience of its members are relevant to meeting the

7 purpose of this part;

8 ‘‘(2) a description of how the applicant will

9 identify and recruit career-changing professionals for

10 its program under this part;

11 ‘‘(3) a description of the training that career12 changing professionals will receive in the program

13 and how that training will relate to their certifi14 cation as teachers;

15 ‘‘(4) a description of how the applicant will en16 sure that career-changing professionals are placed

17 and teach in high-poverty local educational agencies

18 or low-performing local educational agencies;

19 ‘‘(5) a description of the teacher induction serv20 ices (which may be provided through existing induc21 tion programs) that the career-changing profes22 sionals in the program will receive throughout at

23 least their first year of teaching;

24 ‘‘(6) a description of how the applicant will col25 laborate, as needed, with other institutions, agencies,
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1 or organizations to recruit, train, place, and support

2 career-changing professionals under this part, in3 cluding evidence of the commitment of those institu4 tions, agencies, or organizations to the applicant’s

5 program;

6 ‘‘(7) a description of how the applicant will

7 evaluate the progress and effectiveness of its pro8 gram, including—

9 ‘‘(A) the program’s goals and objectives;

10 ‘‘(B) the performance indicators the appli11 cant will use to measure the program’s

12 progress; and

13 ‘‘(C) the outcome measures that will be

14 used to determine the program’s effectiveness;

15 and

16 ‘‘(8) an assurance that the applicant will pro17 vide to the Secretary such information as the Sec18 retary determines necessary to evaluate the overall

19 effectiveness of programs under this part.

20 ‘‘SEC. 2505. USES OF FUNDS AND PERIOD OF SERVICE.

21 ‘‘(a) AUTHORIZED ACTIVITIES.—Funds provided

22 under section 2504 may be used for—

23 ‘‘(1) recruiting career-changing professionals,

24 including informing them of opportunities under the

25 program and putting them in contact with other in-
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1 stitutions, agencies, or organizations that will train,

2 place, and support them;

3 ‘‘(2) training stipends and other financial incen4 tives for career-changing professionals in the pro5 gram, such as moving expenses, not to exceed

6 $5,000, in the aggregate, per participant;

7 ‘‘(3) assisting institutions of higher education

8 or other providers of teacher training to tailor their

9 training to meet the particular needs of career10 changing professionals;

11 ‘‘(4) placement activities, including identifying

12 high-poverty, low-performing local educational agen13 cies with needs for the particular skills and charac14 teristics of the newly trained career-changing profes15 sionals and assisting those persons to obtain employ16 ment in those local educational agencies; and

17 ‘‘(5) post-placement induction or support activi18 ties.

19 ‘‘(b) PERIOD OF SERVICE.—A career-changing pro20 fessional selected to participate in a program under this

21 part who completes his or her training shall serve in a

22 high-poverty local educational agency or a low-performing

23 local educational agency for at least 3 years.

24 ‘‘(c) REPAYMENT.—The Secretary shall establish

25 such requirements as the Secretary determines appro-
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1 priate to ensure that career-changing professionals who

2 receive a training stipend or other financial incentive

3 under subsection (a)(2), but who fail to complete their

4 service obligation under subsection (b), repay all or a por5 tion of such stipend or other incentive.

6 ‘‘SEC. 2506. EQUITABLE DISTRIBUTION.

7 ‘‘To the extent practicable, the Secretary shall make

8 awards and enter into contracts and cooperative agree9 ments under section 2504 to support teacher placement

10 programs for career-changing professionals in different

11 geographic regions of the United States.

12 ‘‘SEC. 2507. AUTHORIZATION OF APPROPRIATIONS.

13 ‘‘There is authorized to be appropriated to the Sec14 retary to carry out this part, $40,000,000 for fiscal year

15 2002 and such sums as may be necessary for the next

16 4 succeeding fiscal years.

17 ‘‘PART G—EARLY CHILDHOOD EDUCATOR

18 PROFESSIONAL DEVELOPMENT

19 ‘‘SEC. 2601. PURPOSE.

20 ‘‘In support of the national effort to attain the first

21 of America’s Education Goals, the purpose of this part

22 is to enhance the school readiness of young children, par23 ticularly disadvantaged young children, and to prevent

24 them from encountering difficulties once they enter school,

25 by improving the knowledge and skills of early childhood
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1 educators who work in communities that have high con2 centrations of children living in poverty.

3 ‘‘SEC. 2602. PROGRAM AUTHORIZED.

4 ‘‘(a) GRANTS TO PARTNERSHIPS.—The Secretary

5 shall carry out the purpose of this part by awarding

6 grants, on a competitive basis, to partnerships consisting

7 of—

8 ‘‘(1)(A) one or more institutions of higher edu9 cation that provide professional development for

10 early childhood educators who work with children

11 from low-income families in high-need communities;

12 or

13 ‘‘(B) another public or private, nonprofit entity

14 that provides such professional development;

15 ‘‘(2) one or more public agencies (including

16 local educational agencies, State educational agen17 cies, State human services agencies, and State and

18 local agencies administering programs under the

19 Child Care and Development Block Grant Act of

20 1990), Head Start agencies, or private, nonprofit or21 ganizations; and

22 ‘‘(3) to the extent feasible, an entity with dem23 onstrated experience in providing training to edu24 cators in early childhood education programs in

25 identifying and preventing behavior problems or
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1 working with children identified or suspected to be

2 victims of abuse.

3 ‘‘(b) DURATION AND NUMBER OF GRANTS.—

4 ‘‘(1) DURATION.—Each grant under this part

5 shall be awarded for not more than 4 years.

6 ‘‘(2) NUMBER.—No partnership may receive

7 more than 1 grant under this part.

8 ‘‘SEC. 2603. APPLICATIONS.

9 ‘‘(a) APPLICATIONS REQUIRED.—Any partnership

10 that desires to receive a grant under this part shall submit

11 an application to the Secretary at such time, in such man12 ner, and containing such information as the Secretary may

13 require.

14 ‘‘(b) CONTENTS.—Each such application shall

15 include—

16 ‘‘(1) a description of the high-need community

17 to be served by the project, including such demo18 graphic and socioeconomic information as the Sec19 retary may request;

20 ‘‘(2) information on the quality of the early

21 childhood educator professional development pro22 gram currently conducted by the institution of high23 er education or other provider in the partnership;

24 ‘‘(3) the results of the needs assessment that

25 the entities in the partnership have undertaken to
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1 determine the most critical professional development

2 needs of the early childhood educators to be served

3 by the partnership and in the broader community,

4 and a description of how the proposed project will

5 address those needs;

6 ‘‘(4) a description of how the proposed project

7 will be carried out, including—

8 ‘‘(A) how individuals will be selected to

9 participate;

10 ‘‘(B) the types of research-based profes11 sional development activities that will be carried

12 out;

13 ‘‘(C) how research on effective professional

14 development and on adult learning will be used

15 to design and deliver project activities;

16 ‘‘(D) how the project will coordinate with

17 and build on, and will not supplant or dupli18 cate, early childhood education professional de19 velopment activities that exist in the commu20 nity;

21 ‘‘(E) how the project will train early child22 hood educators to provide services that are

23 based on developmentally appropriate practices

24 and the best available research on child social,
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1 emotional, physical and cognitive development

2 and on early childhood pedagogy;

3 ‘‘(F) how the program will train early

4 childhood educators to meet the diverse edu5 cational needs of children in the community, in6 cluding children who have limited English pro7 ficiency, disabilities, or other special needs; and

8 ‘‘(G) how the project will train early child9 hood educators in identifying and preventing

10 behavioral problems or working with children

11 identified as or suspected to be victims of

12 abuse;

13 ‘‘(5) a description of—

14 ‘‘(A) the specific objectives that the part15 nership will seek to attain through the project,

16 and how the partnership will measure progress

17 toward attainment of those objectives; and

18 ‘‘(B) how the objectives and the measure19 ment activities align with the performance indi20 cators established by the Secretary under sec21 tion 2606(a);

22 ‘‘(6) a description of the partnership’s plan for

23 institutionalizing the activities carried out under the

24 project, so that the activities continue once Federal

25 funding ceases;
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1 ‘‘(7) an assurance that, where applicable, the

2 project will provide appropriate professional develop3 ment to volunteers working directly with young chil4 dren, as well as to paid staff; and

5 ‘‘(8) an assurance that, in developing its appli6 cation and in carrying out its project, the partner7 ship has consulted with, and will consult with, rel8 evant agencies, early childhood educator organiza9 tions, and early childhood providers that are not

10 members of the partnership.

11 ‘‘SEC. 2604. SELECTION OF GRANTEES.

12 ‘‘(a) CRITERIA.—The Secretary shall select partner13 ships to receive funding on the basis of the community’s

14 need for assistance and the quality of the applications.

15 ‘‘(b) GEOGRAPHIC DISTRIBUTION.—In selecting

16 partnerships, the Secretary shall seek to ensure that com17 munities in different regions of the Nation, as well as both

18 urban and rural communities, are served.

19 ‘‘SEC. 2605. USES OF FUNDS.

20 ‘‘(a) IN GENERAL.—Each partnership receiving a

21 grant under this part shall use the grant funds to carry

22 out activities that will improve the knowledge and skills

23 of early childhood educators who are working in early

24 childhood programs that are located in high-need commu-
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1 nities and serve concentrations of children from low-in2 come families.

3 ‘‘(b) ALLOWABLE ACTIVITIES.—Such activities may

4 include—

5 ‘‘(1) professional development for individuals

6 working as early childhood educators, particularly to

7 familiarize those individuals with the application of

8 recent research on child, language, and literacy de9 velopment and on early childhood pedagogy;

10 ‘‘(2) professional development for early child11 hood educators in working with parents, based on

12 the best current research on child social, emotional,

13 physical and cognitive development and parent in14 volvement, so that the educators can prepare their

15 children to succeed in school;

16 ‘‘(3) professional development for early child17 hood educators to work with children who have lim18 ited English proficiency, disabilities, and other spe19 cial needs;

20 ‘‘(4) professional development to train early

21 childhood educators in identifying and preventing

22 behavioral problems in children or working with chil23 dren identified or suspected to be victims of abuse;
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1 ‘‘(5) activities that assist and support early

2 childhood educators during their first three years in

3 the field;

4 ‘‘(6) development and implementation of early

5 childhood educator professional development pro6 grams that make use of distance learning and other

7 technologies;

8 ‘‘(7) professional development activities related

9 to the selection and use of screening and diagnostic

10 assessments to improve teaching and learning; and

11 ‘‘(8) data collection, evaluation, and reporting

12 needed to meet the requirements of this part relat13 ing to accountability.

14 ‘‘SEC. 2606. ACCOUNTABILITY.

15 ‘‘(a) PERFORMANCE INDICATORS.—Simultaneously

16 with the publication of any application notice for grants

17 under this part, the Secretary shall announce performance

18 indicators for this part, which shall be designed to

19 measure—

20 ‘‘(1) the quality and accessibility of the profes21 sional development provided;

22 ‘‘(2) the impact of that professional develop23 ment on the early childhood education provided by

24 the individuals who are trained; and
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1 ‘‘(3) such other measures of program impact as

2 the Secretary determines appropriate.

3 ‘‘(b) ANNUAL REPORTS; TERMINATION.—

4 ‘‘(1) ANNUAL REPORTS.—Each partnership re5 ceiving a grant under this part shall report annually

6 to the Secretary on the partnership’s progress

7 against the performance indicators.

8 ‘‘(2) TERMINATION.—The Secretary may termi9 nate a grant under this part at any time if the Sec10 retary determines that the partnership is not making

11 satisfactory progress against the indicators.

12 ‘‘SEC. 2607. COST-SHARING.

13 ‘‘(a) IN GENERAL.—Each partnership shall provide,

14 from other sources, which may include other Federal

15 sources—

16 ‘‘(1) at least 50 percent of the total cost of its

17 project for the grant period; and

18 ‘‘(2) at least 20 percent of the project cost in

19 each year.

20 ‘‘(b) ACCEPTABLE CONTRIBUTIONS.—A partnership

21 may meet the requirement of subsection (a) through cash

22 or in-kind contributions, fairly valued.

23 ‘‘(c) WAIVERS.—The Secretary may waive or modify

24 the requirements of subsection (a) in cases of dem25 onstrated financial hardship.
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1 ‘‘SEC. 2608. DEFINITIONS.

2 ‘‘In this part:

3 ‘‘(1) HIGH-NEED COMMUNITY.—

4 ‘‘(A) IN GENERAL.—The term ‘high-need

5 community’ means—

6 ‘‘(i) a municipality, or a portion of a

7 municipality, in which at least 50 percent

8 of the children are from low-income fami9 lies; or

10 ‘‘(ii) a municipality that is one of the

11 10 percent of municipalities within the

12 State having the greatest numbers of such

13 children.

14 ‘‘(B) DETERMINATION.—In determining

15 which communities are described in subpara16 graph (A), the Secretary shall use such data as

17 the Secretary determines are most accurate and

18 appropriate.

19 ‘‘(2) LOW-INCOME FAMILY.—The term ‘low-in20 come family’ means a family with an income below

21 the poverty line (as defined by the Office of Manage22 ment and Budget and revised annually in accordance

23 with section 673(2) of the Community Services

24 Block Grant Act (42 U.S.C. 9902(2))) applicable to

25 a family of the size involved for the most recent fis26 cal year for which satisfactory data are available.
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1 ‘‘(3) EARLY CHILDHOOD EDUCATOR.—The

2 term ‘early childhood educator’ means a person pro3 viding or employed by a provider of non-residential

4 child care services (including center-based, family5 based, and in-home child care services) for com6 pensation that is legally operating under State law,

7 and that complies with applicable State and local re8 quirements for the provision of child care services to

9 children at any age from birth through kindergarten.

10 ‘‘SEC. 2609. FEDERAL COORDINATION.

11 ‘‘The Secretary and the Secretary of Health and

12 Human Services shall coordinate activities under this part

13 and other early childhood programs administered by the

14 two Secretaries.

15 ‘‘SEC. 2610. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘For the purpose of carrying out this part, there are

17 authorized to be appropriated $100,000,000 for fiscal year

18 2002 and such sums as may be necessary for each of the

19 6 succeeding fiscal years.
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1 ‘‘PART H—PRINCIPAL LEADERSHIP

2 DEVELOPMENT

3 ‘‘SEC. 2701. PROFESSIONAL DEVELOPMENT FOR PRIN4 CIPALS AS LEADERS OF SCHOOL REFORM.

5 ‘‘(a) COMPETITIVE GRANTS.—The Secretary is au6 thorized to award, on a competitive basis, grants to eligible

7 partnerships—

8 ‘‘(1) consisting of—

9 ‘‘(A) one or more institutions of higher

10 education that provide professional development

11 for principals and other school administrators;

12 and

13 ‘‘(B) one or more local educational agen14 cies; and

15 ‘‘(2) that may include other entities, agencies,

16 and organizations, such as a State educational agen17 cy, a State agency for higher education, and profes18 sional organizations for principals, administrators,

19 teachers, and parents.

20 ‘‘(b) APPLICATION.—An eligible partnership that de21 sires to receive a grant under this section shall submit an

22 application to the Secretary at such time, in such form,

23 and containing such information as the Secretary may re24 quire. Each such application shall include—

25 ‘‘(1) a description of the activities the partner26 ship will carry out to meet the purpose of this part;
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1 ‘‘(2) a description of how those activities will

2 build on and be coordinated with other professional

3 development activities, including activities under this

4 title and title II of the Higher Education Act of

5 1965;

6 ‘‘(3) a description of how principals, teachers,

7 and other interested parties were involved in devel8 oping the application and will be involved in plan9 ning and carrying out the activities under this sec10 tion; and

11 ‘‘(4) a description of how the professional devel12 opment will result in the acquisition of a license, de13 gree, or continuing education unit.

14 ‘‘(c) USE OF FUNDS.—An eligible partnership that

15 receives a grant under this section shall use the grant

16 funds to provide professional development to principals

17 and other school administrators to enable them to be effec18 tive school leaders and prepare all students to achieve to

19 challenging State content and student performance stand20 ards, including professional development on—

21 ‘‘(1) comprehensive school reform;

22 ‘‘(2) leadership skills;

23 ‘‘(3) recruitment, assignment, retention, and

24 evaluation of teacher and other instructional staff;

25 ‘‘(4) State content standards;
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1 ‘‘(5) effective instructional practice;

2 ‘‘(6) using smaller classes effectively; and

3 ‘‘(7) parental and community involvement.

4 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

5 is authorized to be appropriated to carry out this part,

6 $100,000,000 for fiscal year 2002, and such sums as may

7 be necessary for each of the 4 succeeding fiscal years.

8 ‘‘PART I—COMPETITIVE GRANTS TO ESTABLISH

9 PROGRAMS FOR TEACHER QUALITY IM10 PROVEMENT

11 ‘‘SEC. 2801. ALLOTMENTS TO STATES.

12 ‘‘(a) IN GENERAL.—The Secretary is authorized to

13 make grants to eligible State educational agencies for the

14 improvement of teaching and learning through sustained

15 and intensive high-quality professional development, men16 toring, and recruitment activities (and covered recruit17 ment, at the election of a local educational agency) at the

18 State and local levels. Each grant shall consist of the allot19 ment determined for the State under subsection (b).

20 ‘‘(b) DETERMINATION OF AMOUNT OF ALLOT21 MENT.—

22 ‘‘(1) RESERVATION OF FUNDS.—

23 ‘‘(A) IN GENERAL.—From the total

24 amount made available to carry out this part
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1 for any fiscal year, the Secretary shall

2 reserve—

‘‘(i) 1 3 ⁄2 of 1 percent for allotments for

4 the outlying areas to be distributed among

5 those outlying areas on the basis of their

6 relative need, as determined by the Sec7 retary, for professional development, men8 toring, and recruitment activities carried

9 out in accordance with the purposes of this

10 part; and

‘‘(ii) 1 11 ⁄2 of 1 percent for the Secretary

12 of the Interior for programs carried out in

13 accordance with the purposes of this part

14 to provide professional development, men15 toring, and recruitment activities for teach16 ers and other staff in schools operated or

17 funded by the Bureau of Indian Affairs.

18 ‘‘(B) LIMITATION.—Notwithstanding sub19 paragraph (A), the Secretary shall not reserve,

20 for either the outlying areas under subpara21 graph (A)(i) or the schools operated or funded

22 by the Bureau of Indian Affairs under subpara23 graph (A)(ii), more than the amount reserved

24 for those areas or schools for fiscal year 2000
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1 under the authority described in paragraph

2 (2)(A)(i).

3 ‘‘(2) STATE ALLOTMENTS.—

4 ‘‘(A) HOLD HARMLESS.—

5 ‘‘(i) IN GENERAL.—Subject to sub6 paragraph (B), from the total amount

7 made available to carry out this part for

8 any fiscal year and not reserved under

9 paragraph (1), the Secretary shall allot to

10 each of the 50 States, the District of Co11 lumbia, and the Commonwealth of Puerto

12 Rico an amount equal to the amount that

13 the State received for fiscal year 2000

14 under section 2202(b) of this Act (as in ef15 fect on the day before the date of enact16 ment of the Leave No Child Behind Act of

17 2001).

18 ‘‘(ii) RATABLE REDUCTION.—If the

19 total amount made available to carry out

20 this part for any fiscal year and not re21 served under paragraph (1) is insufficient

22 to pay the full amounts that all States are

23 eligible to receive under clause (i) for any

24 fiscal year, the Secretary shall ratably re25 duce such amounts for such fiscal year.
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1 ‘‘(B) ALLOTMENT OF ADDITIONAL

2 FUNDS.—

3 ‘‘(i) IN GENERAL.—Subject to clause

4 (ii), for any fiscal year for which the total

5 amount made available to carry out this

6 part and not reserved under paragraph (1)

7 exceeds the total amount made available to

8 the 50 States, the District of Columbia,

9 and the Commonwealth of Puerto Rico for

10 fiscal year 2000 under the authority de11 scribed in subparagraph (A)(i), the Sec12 retary shall allot to each of those States

13 the sum of—

14 ‘‘(I) an amount that bears the

15 same relationship to 40 percent of the

16 excess amount as the number of indi17 viduals age 5 through 17 in the State,

18 as determined by the Secretary on the

19 basis of the most recent satisfactory

20 data, bears to the number of those in21 dividuals in all such States, as so de22 termined; and

23 ‘‘(II) an amount that bears the

24 same relationship to 60 percent of the

25 excess amount as the number of indi-
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1 viduals age 5 through 17 from fami2 lies with incomes below the poverty

3 line in the State, as determined by the

4 Secretary on the basis of the most re5 cent satisfactory data, bears to the

6 number of those individuals in all

7 such States, as so determined.

8 ‘‘(ii) EXCEPTION.—No State receiving

9 an allotment under clause (i) may receive

less than 1 10 ⁄2 of 1 percent of the total ex11 cess amount allotted under clause (i) for a

12 fiscal year.

13 ‘‘(3) REALLOTMENT.—If any State described in

14 paragraph (2) does not apply for an allotment under

15 paragraph (2) for any fiscal year, the Secretary shall

16 reallot such amount to the remaining such States in

17 accordance with paragraph (2).

18 ‘‘SEC. 2802. STATE APPLICATIONS.

19 ‘‘(a) APPLICATIONS REQUIRED.—

20 ‘‘(1) IN GENERAL.—Each State desiring to re21 ceive a grant under this part shall submit an appli22 cation to the Secretary at such time, in such man23 ner, and containing such information as the Sec24 retary may reasonably require.
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1 ‘‘(2) DEVELOPMENT.—The State educational

2 agency shall develop the State application—

3 ‘‘(A) in consultation with the State agency

4 for higher education, community-based and

5 other nonprofit organizations, and institutions

6 of higher education; and

7 ‘‘(B) with the extensive participation of

8 teachers, teacher educators, school administra9 tors, and content specialists.

10 ‘‘(b) CONTENTS.—Each such application shall

11 include—

12 ‘‘(1) a description of the State’s shortages of

13 fully qualified teachers relating to high-poverty

14 school districts and high-need academic subjects (as

15 such districts or subjects are determined by the

16 State);

17 ‘‘(2) an assessment of the need for professional

18 development for veteran teachers in the State and

19 the need for strong mentoring programs for begin20 ning teachers that are—

21 ‘‘(A) developed with the involvement of

22 teachers; and

23 ‘‘(B) based on student achievement data in

24 the core academic subjects and other indicators
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1 of the need for professional development and

2 mentoring programs;

3 ‘‘(3) a description of how the State educational

4 agency will use funds made available under this part

5 to improve the quality of the State’s teaching force,

6 eliminate the use of out-of-field placement of teach7 ers, and eliminate the use of teachers hired with

8 emergency or other provisional credentials by setting

9 numerical, annual improvement goals, and meet the

10 requirements of this section;

11 ‘‘(4) a description of how the State educational

12 agency will align activities assisted under this part

13 with State content and student performance stand14 ards, and State assessments, by setting numerical,

15 annual improvement goals;

16 ‘‘(5) a description of how the State educational

17 agency will coordinate activities funded under this

18 part with professional development, mentoring, and

19 recruitment activities that are supported with funds

20 from other relevant Federal and non-Federal pro21 grams;

22 ‘‘(6) a plan, developed with the extensive par23 ticipation of teachers, for addressing long-term

24 teacher recruitment, retention, professional develop25 ment, and mentoring needs, which may include—
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1 ‘‘(A) providing technical assistance to help

2 school districts reform hiring and employment

3 practices to improve the recruitment and reten4 tion of fully qualified teachers, especially with

5 respect to high-poverty schools; and

6 ‘‘(B) establishing State or regional part7 nerships to address teacher shortages;

8 ‘‘(7) a description of how the State educational

9 agency will assist local educational agencies in imple10 menting effective and sustained professional develop11 ment and mentoring activities and high-quality re12 cruitment activities under this part;

13 ‘‘(8) an assurance that the State will consist14 ently monitor the progress of each local educational

15 agency and school in the State in achieving the goals

16 specified in the information submitted under para17 graphs (1) through (7);

18 ‘‘(9) a description of how the State educational

19 agency will work with recipients of grants awarded

20 for recruitment activities under section 2805(b) to

21 ensure that recruits who successfully complete a

22 teacher corps program will be certified or licensed;

23 and

24 ‘‘(10) the assurances and description referred

25 to in section 2810.
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1 ‘‘(c) APPROVAL.—The Secretary shall, using a peer2 review process, approve a State application if the applica3 tion meets the requirements of this section and holds rea4 sonable promise of achieving the purposes of this part.

5 ‘‘SEC. 2803. STATE USE OF FUNDS.

6 ‘‘(a) IN GENERAL.—Of the funds allotted to a State

7 under section 2801 for a fiscal year—

8 ‘‘(1) not more than 6 percent shall be used by

9 the State educational agency to carry out State ac10 tivities described in section 2804, or for the adminis11 tration of this part (other than the administration of

12 section 2809) except that not more than 3 percent

13 shall be used for the administration of this part;

14 ‘‘(2) 60 percent shall be used by the State edu15 cational agency to provide grants to local edu16 cational agencies under section 2805(a) for profes17 sional development and mentoring (except as pro18 vided in section 2807(c));

19 ‘‘(3) 30 percent shall be used by the State edu20 cational agency—

21 ‘‘(A) except as provided in subparagraph

22 (B), to provide grants to recruitment partner23 ships under section 2805(b) for recruitment ac24 tivities; or
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1 ‘‘(B) if the State educational agency deter2 mines that all elementary school and secondary

3 school teachers in the State that are teaching

4 core academic subjects are fully qualified, to

5 provide the grants described in paragraph (2);

6 and

7 ‘‘(4) 4 percent (or 4 percent of the amount the

8 State would have been allotted if the appropriation

9 for this part were $1,730,000,000, whichever is

10 greater) shall be used by the State agency for higher

11 education to provide grants to partnerships under

12 section 2809.

13 ‘‘(b) PRIORITY FOR PROFESSIONAL DEVELOPMENT

14 AND MENTORING IN MATHEMATICS AND SCIENCE.—

15 ‘‘(1) PRIORITY.—

16 ‘‘(A) APPROPRIATIONS OF NOT MORE

17 THAN $300,000,000.—Except as provided in sec18 tion 2807(c), for any fiscal year for which the

19 appropriation for this part is $300,000,000 or

20 less, each State educational agency that receives

21 funds under this part, working jointly with the

22 State agency for higher education, shall ensure

23 that all funds received under this part are used

24 for—
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1 ‘‘(i) professional development and

2 mentoring in mathematics and science that

3 are aligned with State content and student

4 performance standards; and

5 ‘‘(ii) recruitment activities to attract

6 fully qualified math and science teachers to

7 high-poverty schools.

8 ‘‘(B) APPROPRIATIONS OF MORE THAN

9 $300,000,000.—Except as provided in section

10 2807(c), for any fiscal year for which the ap11 propriation for this part is greater than

12 $300,000,000, the State educational agency

13 and the State agency for higher education shall

14 jointly ensure that the total amount of funds

15 that the agencies receive under this part and

16 that the agencies use for activities described in

17 subparagraph (A) is at least as great as the al18 lotment the State would have received if that

19 appropriation had been $300,000,000.

20 ‘‘(2) INTERDISCIPLINARY ACTIVITIES.—A State

21 may use funds received under this part for activities

22 that focus on more than 1 core academic subject,

23 and apply the funds toward meeting the require24 ments of paragraph (1), if the activities include a
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1 strong focus on improving instruction in mathe2 matics or science.

3 ‘‘(3) ADDITIONAL FUNDS.—Except as provided

4 in section 2807(c), each State educational agency

5 that receives funds under this part and the State

6 agency for higher education shall jointly ensure that

7 any portion of the funds that exceeds the amount re8 quired by paragraph (1) to be spent on activities de9 scribed in paragraph (1)(A) is used to provide—

10 ‘‘(A) professional development and men11 toring in 1 or more of the core academic sub12 jects that are aligned with State content and

13 student performance standards; and

14 ‘‘(B) recruitment activities involving teach15 ers of 1 or more of the core academic subjects.

16 ‘‘SEC. 2804. STATE LEVEL ACTIVITIES.

17 ‘‘(a) ACTIVITIES.—Each State educational agency

18 that receives a grant described in section 2801 shall use

19 the funds made available under section 2803(a)(1) to

20 carry out statewide strategies and activities to improve

21 teacher quality, including—

22 ‘‘(1) establishing, expanding, or improving al23 ternative routes to State certification or licensing of

24 teachers, for highly qualified individuals with a bac25 calaureate degree, mid-career professionals from
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1 other occupations, or paraprofessionals, that are at

2 least as rigorous as the State’s standards for initial

3 certification or licensing of teachers;

4 ‘‘(2) developing or improving systems to evalu5 ate the effectiveness of professional development,

6 mentoring, and recruitment activities in improving

7 teacher quality, skills, and content knowledge, and

8 the impact of the professional development, men9 toring, and recruitment activities on increasing stu10 dent academic achievement and student performance

11 with performance measures drawn from assessments

12 that objectively measure student achievement

13 against State performance standards;

14 ‘‘(3) funding projects to promote reciprocity of

15 teacher certification or licensure between or among

16 States;

17 ‘‘(4) providing assistance to local educational

18 agencies to reduce out-of-field placements and the

19 use of emergency credentials;

20 ‘‘(5) supporting certification by the National

21 Board for Professional Teaching Standards of teach22 ers who are teaching or will teach in high-poverty

23 schools;

24 ‘‘(6) providing assistance to local educational

25 agencies in implementing effective programs of re-
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1 cruitment activities, and professional development

2 and mentoring, including supporting efforts to en3 courage and train teachers to become mentor teach4 ers;

5 ‘‘(7) increasing the rigor and quality of State

6 certification and licensure tests for individuals enter7 ing the field of teaching, including subject matter

8 tests for elementary school, middle school, and sec9 ondary school teachers; and

10 ‘‘(8) implementing teacher recognition pro11 grams.

12 ‘‘(b) COORDINATION.—A State that receives a grant

13 to carry out this part and a grant under section 202 of

14 the Higher Education Act of 1965 shall coordinate the

15 activities carried out under this section and the activities

16 carried out under that section 202.

17 ‘‘SEC. 2805. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

18 ‘‘(a) GRANTS FOR PROFESSIONAL DEVELOPMENT

19 AND MENTORING ACTIVITIES.—

20 ‘‘(1) IN GENERAL.—A State educational agency

21 that receives a grant described in section 2801 shall

22 use the funds made available under section

23 2803(a)(2) (and any funds made available under

24 section 2803(a)(3)(B)) to make grants to eligible

25 local educational agencies, from allocations made
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1 under paragraph (2), to carry out the activities de2 scribed in section 2807(a) (except as provided in sec3 tion 2807(c)).

4 ‘‘(2) ALLOCATIONS.—The State educational

5 agency shall allocate to each eligible local edu6 cational agency the sum of—

7 ‘‘(A) an amount that bears the same rela8 tionship to 20 percent of the funds described in

9 paragraph (1) as the number of individuals en10 rolled in public and private nonprofit elemen11 tary schools and secondary schools in the geo12 graphic area served by the agency bears to the

13 number of those individuals in the geographic

14 areas served by all the local educational agen15 cies in the State; and

16 ‘‘(B) an amount that bears the same rela17 tionship to 80 percent of the funds as the num18 ber of individuals age 5 through 17 from fami19 lies with incomes below the poverty line, in the

20 geographic area served by the agency, as deter21 mined by the Secretary on the basis of the most

22 recent satisfactory data, bears to the number of

23 those individuals in the geographic areas served

24 by all the local educational agencies in the

25 State, as so determined.
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1 ‘‘(3) ELIGIBILITY.—To be eligible to receive a

2 grant from a State educational agency under this

3 subsection, a local educational agency shall serve

4 schools that include—

5 ‘‘(A) high-poverty schools;

6 ‘‘(B) schools that need support for improv7 ing teacher quality based on low achievement of

8 students served;

9 ‘‘(C) schools that have low teacher reten10 tion rates;

11 ‘‘(D) schools that need to improve or ex12 pand the knowledge and skills of new and vet13 eran teachers in high-priority content areas;

14 ‘‘(E) schools that have high out-of-field

15 placement rates; or

16 ‘‘(F) high-poverty schools that have been

17 identified for improvement in accordance with

18 section 1116.

19 ‘‘(4) EQUITABLE GEOGRAPHIC DISTRIBU20 TION.—A State educational agency shall ensure an

21 equitable distribution of grants under this subsection

22 among eligible local educational agencies serving

23 urban and rural areas.

24 ‘‘(b) GRANTS FOR RECRUITMENT ACTIVITIES.—
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1 ‘‘(1) IN GENERAL.—A State educational agency

2 that receives a grant under section 2801 shall use

3 the funds made available under section

4 2803(a)(3)(A) to make grants to eligible recruitment

5 partnerships, on a competitive basis, to carry out the

6 recruitment activities and meet requirements de7 scribed in section 2807(b).

8 ‘‘(2) ELIGIBILITY.—

9 ‘‘(A) IN GENERAL.—To be eligible to re10 ceive a grant from a State educational agency

11 under this subsection, a recruitment

12 partnership—

13 ‘‘(i) shall include an eligible local edu14 cational agency, or a consortium of eligible

15 local educational agencies;

16 ‘‘(ii) shall include an institution of

17 higher education, a tribal college, or a

18 community college; and

19 ‘‘(iii) may include other members,

20 such as a nonprofit organization or profes21 sional education organization.

22 ‘‘(B) ELIGIBLE LOCAL EDUCATIONAL

23 AGENCY.—In subparagraph (A), the term ‘eligi24 ble local educational agency’ means a local edu25 cational agency that receives assistance under
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1 part A of title I, and meets any additional eligi2 bility criteria that the appropriate State edu3 cational agency may establish.

4 ‘‘(3) EQUITABLE GEOGRAPHIC DISTRIBU5 TION.—A State educational agency shall ensure an

6 equitable distribution of grants under this subsection

7 among eligible recruitment partnerships serving

8 urban and rural areas.

9 ‘‘SEC. 2806. LOCAL APPLICATIONS.

10 ‘‘(a) IN GENERAL.—A local educational agency or a

11 recruitment partnership seeking to receive a grant from

12 a State educational agency under section 2805 to carry

13 out activities described in section 2807 shall submit an

14 application to the State educational agency at such time,

15 in such manner, and containing such information as the

16 State educational agency may reasonably require.

17 ‘‘(b) CONTENTS RELATING TO PROFESSIONAL DE18 VELOPMENT AND MENTORING ACTIVITIES.—If the local

19 educational agency seeks a grant under section 2805(a)

20 to carry out activities described in section 2807(a), the

21 local application described in subsection (a) shall include

22 in the application, at a minimum, the following:

23 ‘‘(1) A description of how the local educational

24 agency intends to use the funds provided through
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1 the grant to carry out activities that meet require2 ments described in section 2807(a).

3 ‘‘(2) An assurance that the local educational

4 agency will target the funds to high-poverty, low-per5 forming schools served by the local educational agen6 cy that—

7 ‘‘(A) have the lowest proportions of quali8 fied teachers;

9 ‘‘(B) are identified for school improvement

10 and corrective action under section 1116; or

11 ‘‘(C) are identified for school improvement

12 in accordance with other measures of school

13 quality as determined and documented by the

14 local educational agency.

15 ‘‘(3) A description of how the local educational

16 agency will coordinate professional development and

17 mentoring activities described in section 2807(a)

18 with professional development and mentoring activi19 ties provided through other Federal, State, and local

20 programs, including programs authorized under—

21 ‘‘(A) titles I, IV, and V, and part A of title

22 VII; and

23 ‘‘(B) where applicable, the Individuals with

24 Disabilities Education Act, the Carl D. Perkins

25 Vocational and Technical Education Act of
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1 1998, and title II of the Higher Education Act

2 of 1965.

3 ‘‘(4) A description of how the local educational

4 agency will integrate funds received to carry out ac5 tivities described in section 2807(a) with funds re6 ceived under title V that are used for professional

7 development and mentoring in order to carry out

8 professional development and mentoring activities

9 that—

10 ‘‘(A) train teachers, paraprofessionals,

11 counselors, pupil services personnel, administra12 tors, and other school staff, including school li13 brary media specialists, in how to use tech14 nology to improve learning and teaching; and

15 ‘‘(B) take into special consideration the

16 different learning needs for, and exposures to,

17 technology for all students, including females,

18 students with disabilities, students with limited

19 English proficiency, and students who have eco20 nomic and educational disadvantages.

21 ‘‘(5) A description of how the local application

22 was developed with extensive participation of teach23 ers, paraprofessionals, principals, and parents.

24 ‘‘(6) A description of how the professional de25 velopment and mentoring activities described in sec-
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1 tion 2807(a) will address the ongoing professional

2 development and mentoring of teachers, paraprofes3 sionals, counselors, pupil services personnel, admin4 istrators, and other school staff, including school li5 brary media specialists.

6 ‘‘(7) A description of how the professional de7 velopment and mentoring activities described in sec8 tion 2807(a) will have a substantial, measurable,

9 and positive impact on student achievement and how

10 the activities will be used as part of a broader strat11 egy to eliminate the achievement gap that separates

12 low-income and minority students from other stu13 dents.

14 ‘‘(8) A description of how the local educational

15 agency will address the needs of teachers of students

16 with disabilities, students with limited English pro17 ficiency, and other students with special needs.

18 ‘‘(9) A description of how the local educational

19 agency will provide training to teachers to enable the

20 teachers to work with parents, involve parents in

21 their child’s education, and encourage parents to be22 come collaborators with schools in promoting their

23 child’s education.
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1 ‘‘(10) The assurances and description referred

2 to in section 2811, with respect to professional de3 velopment and mentoring activities.

4 ‘‘(c) DEVELOPMENT AND CONTENTS RELATING TO

5 RECRUITMENT ACTIVITIES.—If an eligible local edu6 cational agency (as defined in section 2805(b)) seeks a

7 grant under section 2805(b) to carry out activities de8 scribed in section 2807(b)—

9 ‘‘(1) the eligible local educational agency shall

10 enter into a recruitment partnership, which shall

11 jointly prepare and submit the local application de12 scribed in subsection (a); and

13 ‘‘(2) at a minimum, the application shall

14 include—

15 ‘‘(A) a description of how the recruitment

16 partnership will meet the teacher corps program

17 requirements described in section 2808;

18 ‘‘(B) a description of the individual and

19 collective responsibilities of members of the re20 cruitment partnership in meeting the require21 ments and goals of a teacher corps program de22 scribed in section 2808;

23 ‘‘(C) information demonstrating that the

24 State agency responsible for teacher licensure
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1 or certification in the State in which a recruit2 ment partnership is established will—

3 ‘‘(i) ensure that a corps member who

4 successfully completes a teacher corps pro5 gram will have the academic requirements

6 necessary for initial certification or licen7 sure as a teacher in the State; and

8 ‘‘(ii) work with the recruitment part9 nership to ensure the partnership uses

10 high-quality methods and establishes high11 quality requirements concerning alternative

12 routes to certification or licensing, in order

13 to meet State requirements for certifi14 cation or licensure; and

15 ‘‘(D) the assurances and description re16 ferred to in section 2811, with respect to re17 cruitment activities.

18 ‘‘(d) CONTENTS RELATING TO COVERED RECRUIT19 MENT.—If the local educational agency seeks a grant

20 under section 2805(a) to carry out activities described in

21 section 2807(c), the local application described in sub22 section (a) shall include, at a minimum, a description of

23 the activities and the manner in which the activities will

24 contribute to accomplishing the objectives of section 2811,
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1 and how the activities are in compliance with the require2 ments of title I.

3 ‘‘(e) APPROVAL.—A State educational agency shall

4 approve a local educational agency’s or recruitment part5 nership’s application under this section only if the State

6 educational agency determines that the application is of

7 high quality and holds reasonable promise of achieving the

8 purposes of this part.

9 ‘‘SEC. 2807. LOCAL ACTIVITIES.

10 ‘‘(a) PROFESSIONAL DEVELOPMENT AND MEN11 TORING ACTIVITIES.—Except as provided in subsection

12 (c), each local educational agency receiving a grant under

13 section 2805(a) shall use the funds made available

14 through the grant to carry out activities that—

15 ‘‘(1) are professional development activities (as

16 defined in section 2812(12)(A)) that—

17 ‘‘(A) improve teacher knowledge of—

18 ‘‘(i) 1 or more of the core academic

19 subjects;

20 ‘‘(ii) effective instructional strategies,

21 methods, and skills for improving student

22 achievement in core academic subjects, in23 cluding strategies for identifying and elimi24 nating gender and racial bias;
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1 ‘‘(iii) the use of data and assessments

2 to inform teachers about and thereby help

3 teachers improve classroom practice; and

4 ‘‘(iv) innovative instructional meth5 odologies designed to meet the diverse

6 learning needs of individual students, in7 cluding methodologies that integrate aca8 demic and technical skills and applied

9 learning (such as service learning), meth10 odologies for interactive and interdiscipli11 nary team teaching, and other alternative

12 teaching strategies, such as strategies for

13 experiential learning, career-related edu14 cation, and environmental education, that

15 integrate real world applications into the

16 core academic subjects;

17 ‘‘(B) provide teachers and paraprofes18 sionals (and other staff as appropriate) with in19 formation on recent research findings on how

20 children learn to read and with staff develop21 ment on research-based instructional strategies

22 for the teaching of reading;

23 ‘‘(C) replicate effective instructional prac24 tices that involve collaborative groups of teach-
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1 ers and administrators from the same school or

2 district, using strategies such as—

3 ‘‘(i) provision of dedicated time for

4 collaborative lesson planning and cur5 riculum development meetings;

6 ‘‘(ii) provision of collaborative profes7 sional development experiences for veteran

8 teachers based on the standards in the

9 core academic subjects of the National

10 Board for Professional Teaching Stand11 ards;

12 ‘‘(iii) consultation with exemplary

13 teachers;

14 ‘‘(iv) provision of short-term and long15 term visits to classrooms and schools;

16 ‘‘(v) participation of teams of teachers

17 in summer institutes and summer immer18 sion activities that are focused on pre19 paring teachers to enable all students to

20 meet high standards in 1 or more of the

21 core academic subjects; and

22 ‘‘(vi) establishment and maintenance

23 of local professional networks that provide

24 a forum for interaction among teachers

25 and administrators and that allow for the
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1 exchange of information on advances in

2 content knowledge and teaching skills;

3 ‘‘(D) provide for the participation of para4 professionals, pupil services personnel, and

5 other school staff;

6 ‘‘(E) include strategies for fostering mean7 ingful parental involvement and relations with

8 parents to encourage parents to become collabo9 rators in their children’s education, for improv10 ing classroom management and discipline, and

11 for integrating technology into a curriculum;

12 ‘‘(F) as a whole, are regularly evaluated

13 for their impact on increased teacher effective14 ness and improved student achievement, with

15 the findings of the evaluations used to improve

16 the quality of activities described in this para17 graph;

18 ‘‘(G) include, to the extent practicable, the

19 establishment of a partnership with an institu20 tion of higher education, another local edu21 cational agency, a teacher organization, or an22 other organization, for the purpose of carrying

23 out activities described in this paragraph; and

24 ‘‘(H) include ongoing and school-based

25 support for activities described in this para-
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1 graph, such as support for peer review, coach2 ing, or study groups, and the provision of re3 lease time as needed for the activities; and

4 ‘‘(2) are mentoring activities.

5 ‘‘(b) RECRUITMENT ACTIVITIES.—Each recruitment

6 partnership receiving a grant under section 2805(b) shall

7 use the funds made available through the grant to carry

8 out recruitment activities described in section 2808.

9 ‘‘(c) COVERED RECRUITMENT.—A local educational

10 agency receiving a grant under section 2805(a) for a fiscal

11 year may elect to use a portion of the funds made available

12 through the grant, but not more than the agency’s share

13 of 10 percent of the funds allotted to the State involved

14 under section 2801 for the fiscal year, to carry out recruit15 ment (including recruitment through the use of signing

16 bonuses and other financial incentives) and hiring of fully

17 qualified teachers.

18 ‘‘SEC. 2808. RECRUITMENT ACTIVITIES THROUGH A TEACH19 ER CORPS PROGRAM.

20 ‘‘(a) TEACHER CORPS PROGRAM REQUIREMENTS.—

21 ‘‘(1) RECRUITMENT.—A recruitment partner22 ship that receives a grant under section 2805(b)

23 shall broadly recruit and screen for a teacher corps

24 a highly qualified pool of candidates who dem-
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1 onstrate the potential to become effective teachers.

2 Each candidate shall meet—

3 ‘‘(A) standards to ensure that—

4 ‘‘(i) each corps member possesses ap5 propriate, high-level credentials and pre6 sents the likelihood of becoming an effec7 tive teacher; and

8 ‘‘(ii) each group of corps members in9 cludes people who have expertise in aca10 demic subjects and otherwise meet the spe11 cific needs of the district to be served; and

12 ‘‘(B) any additional standard that the re13 cruitment partnership establishes to enhance

14 the quality and diversity of candidates and to

15 meet the academic and grade level needs of the

16 partnership.

17 ‘‘(2) REQUIRED CURRICULUM AND PLACE18 MENT.—Members of the recruitment partnership

19 shall work together to plan and develop a program

20 that includes—

21 ‘‘(A) a rigorous curriculum that includes a

22 preservice training program (incorporating in23 novative approaches to preservice training, such

24 as distance learning), for a period not to exceed

25 1 year, that provides corps members with the
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1 skills and knowledge necessary to become effec2 tive teachers, by—

3 ‘‘(i) requiring completed course work

4 in basic areas of teaching, such as prin5 ciples of learning and child development,

6 effective teaching strategies, assessments,

7 and classroom management, and in the

8 pedagogy related to the academic subjects

9 in which a corps member intends to teach;

10 ‘‘(ii) providing extensive preparation

11 in the pedagogy of reading to corps mem12 bers, including preparation components

13 that focus on—

14 ‘‘(I) understanding the psy15 chology of reading, and human growth

16 and development;

17 ‘‘(II) understanding the structure

18 of the English language; and

19 ‘‘(III) learning and applying the

20 best teaching methods to all aspects

21 of reading instruction;

22 ‘‘(iii) providing training in the use of

23 technology as a tool to enhance a corps

24 member’s effectiveness as a teacher and
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1 improve the achievement of the corps mem2 ber’s students; and

3 ‘‘(iv) focusing on the teaching skills

4 and knowledge that corps members need to

5 enable all students to meet the State’s

6 highest challenging content and student

7 performance standards;

8 ‘‘(B) placement of a corps member with

9 the local educational agency participating in the

10 recruitment partnership, in a teaching intern11 ship that—

12 ‘‘(i) includes intensive mentoring;

13 ‘‘(ii) provides a reduced teaching load;

14 and

15 ‘‘(iii) provides regular opportunities

16 for the corps member to co-teach with a

17 mentor teacher, observe other teachers,

18 and be observed and coached by other

19 teachers;

20 ‘‘(C) individualized inservice training over

21 the course of the corps member’s first 2 years

22 of full-time teaching that provides—

23 ‘‘(i) high-quality professional develop24 ment, coordinated jointly by members of

25 the recruitment partnership, and the
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1 course work necessary to provide additional

2 or supplementary knowledge to meet the

3 specific needs of the corps member; and

4 ‘‘(ii) ongoing mentoring by a teacher

5 who meets the criteria for a mentor teach6 er described in paragraph (4)(B), including

7 the requirements of section 2812(10); and

8 ‘‘(D) collaboration between the recruitment

9 partnership and local community student and

10 parent groups, to assist corps members in en11 hancing their understanding of the community

12 in which the members are placed.

13 ‘‘(3) EVALUATION.—A recruitment partnership

14 shall evaluate a corps member’s progress in course

15 study and classroom practice at regular intervals.

16 Each recruitment partnership shall have a formal

17 process to identify corps members who seem unlikely

18 to become effective teachers and terminate their par19 ticipation in the program.

20 ‘‘(4) MENTOR TEACHERS.—

21 ‘‘(A) IN GENERAL.—A recruitment part22 nership shall develop a plan for the program,

23 which shall include strategies for identifying, re24 cruiting, training, and providing ongoing sup-
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1 port to individuals who will serve as mentor

2 teachers to corps members.

3 ‘‘(B) MENTOR TEACHER REQUIRE4 MENTS.—The plan described in subparagraph

5 (A) shall specify the criteria that the recruit6 ment partnership will use to identify and select

7 mentor teachers and, at a minimum, shall—

8 ‘‘(i) require a mentor teacher to meet

9 the requirements of section 2812(10); and

10 ‘‘(ii) require that consideration be

11 given to teachers with national board cer12 tification.

13 ‘‘(C) COMPENSATION.—The plan shall

14 specify the compensation—

15 ‘‘(i) for mentor teachers, including

16 monetary compensation, release time, or a

17 reduced work load to ensure that mentor

18 teachers can provide ongoing support for

19 corps members; and

20 ‘‘(ii) for corps members, including sal21 ary levels and the stipends, if any, that will

22 be provided during a corps member’s

23 preservice training.

24 ‘‘(5) ASSURANCES.—The plan shall include as25 surances that—
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1 ‘‘(A) a corps member will be assigned to

2 teach only academic subjects and grade levels

3 for which the member is fully qualified;

4 ‘‘(B) corps members, to the extent prac5 ticable, will be placed in schools with teams of

6 corps members; and

7 ‘‘(C) every mentor teacher will be provided

8 sufficient time to meet the needs of the corps

9 members assigned to the mentor teacher.

10 ‘‘(b) CORPS MEMBER QUALIFICATIONS.—

11 ‘‘(1) CANDIDATES INTENDING TO TEACH IN EL12 EMENTARY SCHOOLS.—At a minimum, to be accept13 ed by a teacher corps program, a candidate who in14 tends to teach at the elementary school level shall—

15 ‘‘(A) have a bachelor’s degree;

16 ‘‘(B) possess an outstanding commitment

17 to working with children and youth;

18 ‘‘(C) possess a strong professional or post19 secondary record of achievement; and

20 ‘‘(D) pass all basic skills and subject mat21 ter tests required by the State for teacher cer22 tification or licensure.

23 ‘‘(2) CANDIDATES INTENDING TO TEACH IN

24 SECONDARY SCHOOLS.—At a minimum, to be ac-
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1 cepted by a teacher corps program, a candidate who

2 intends to teach at the secondary school level shall—

3 ‘‘(A) meet the requirements described in

4 paragraph (1); and

5 ‘‘(B)(i) possess at least an academic major

6 or postsecondary degree in each academic sub7 ject in which the candidate intends to teach; or

8 ‘‘(ii) if the candidate did not major or earn

9 a postsecondary degree in an academic subject

10 in which the candidate intends to teach, have

11 completed a rigorous course of instruction in

12 that subject that is equivalent to having ma13 jored in the subject.

14 ‘‘(3) SPECIAL RULE.—Notwithstanding para15 graph (2)(B), the recruitment partnership may con16 sider the candidate to be an eligible corps member

17 and accept the candidate for a teacher corps pro18 gram if the candidate has worked successfully and

19 directly in a field and in a position that provided the

20 candidate with direct and substantive knowledge in

21 the academic subject in which the candidate intends

22 to teach.

23 ‘‘(c) THREE-YEAR COMMITMENT TO TEACHING IN

24 ELIGIBLE DISTRICTS.—
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1 ‘‘(1) IN GENERAL.—In return for acceptance to

2 a teacher corps program, a corps member shall com3 mit to 3 years of full-time teaching in a school or

4 district served by a local educational agency partici5 pating in a recruitment partnership receiving funds

6 under this part.

7 ‘‘(2) REIMBURSEMENT.—

8 ‘‘(A) IN GENERAL.—If a corps member

9 leaves the school district to which the corps

10 member has been assigned prior to the end of

11 the 3-year period described in paragraph (1),

12 the corps member shall be required to reim13 burse the Secretary for the amount of the Fed14 eral share of the cost of the corps member’s

15 participation in the teacher corps program.

16 ‘‘(B) PARTNERSHIP CLAIMS.—A recruit17 ment partnership that provides a teacher corps

18 program to a corps member who leaves the

19 school district, as discussed in subparagraph

20 (A), may submit a claim to the corps member

21 requiring the corps member to reimburse the

22 recruitment partnership for the amount of the

23 partnership’s share of the cost described in sub24 paragraph (A).
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1 ‘‘(C) REDUCTION.—Reimbursements re2 quired under this paragraph may be reduced

3 proportionally based on the amount of time a

4 corps member remained in the teacher corps

5 program beyond the corps member’s initial 2

6 years of service.

7 ‘‘(D) WAIVER.—The Secretary may waive

8 reimbursements required under subparagraph

9 (A) in the case of severe hardship to a corps

10 member who leaves the school district, as de11 scribed in subparagraph (A).

12 ‘‘(d) FEDERAL SHARE; NON-FEDERAL SHARE.—

13 ‘‘(1) PAYMENT OF FEDERAL SHARE.—The Sec14 retary shall pay to each recruitment partnership car15 rying out a teacher corps program under this section

16 the Federal share of the cost of the activities de17 scribed in the partnership’s application under section

18 2806(c).

19 ‘‘(2) NON-FEDERAL SHARE.—A recruitment

20 partnership’s share of the cost of the activities de21 scribed in the partnership’s application under section

22 2806(c)—

23 ‘‘(A) may be provided in cash or in kind,

24 fairly evaluated, including plant, equipment, or

25 services; and
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1 ‘‘(B)(i) for the first year for which the

2 partnership receives assistance under this part,

3 shall be not less than 10 percent;

4 ‘‘(ii) for the second such year, shall be not

5 less than 20 percent;

6 ‘‘(iii) for the third year such year, shall be

7 not less than 30 percent;

8 ‘‘(iv) for the fourth such year, shall be not

9 less than 40 percent; and

10 ‘‘(v) for the fifth such year, shall be not

11 less than 50 percent.

12 ‘‘SEC. 2809. GRANTS TO PARTNERSHIPS OF INSTITUTIONS

13 OF HIGHER EDUCATION AND LOCAL EDU14 CATIONAL AGENCIES.

15 ‘‘(a) ADMINISTRATION.—A State agency for higher

16 education may use, from the funds made available to the

17 agency under section 2803(a)(4) for any fiscal year, not

more than 31 18 ⁄3 percent for the expenses of the agency in

19 administering this section, including conducting evalua20 tions of activities on the performance measures described

21 in section 2804(a)(2).

22 ‘‘(b) GRANTS TO PARTNERSHIPS.—

23 ‘‘(1) IN GENERAL.—The State agency for high24 er education shall use the remainder of the funds, in

25 cooperation with the State educational agency, to
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1 make grants to (including entering into contracts or

2 cooperative agreements with) partnerships of—

3 ‘‘(A) institutions of higher education that

4 are in full compliance with all reporting require5 ments of title II of the Higher Education Act

6 of 1965 or nonprofit organizations of dem7 onstrated effectiveness in providing professional

8 development and mentoring in the core aca9 demic subjects; and

10 ‘‘(B) eligible local educational agencies (as

11 defined in section 2805(b)(2)), to carry out ac12 tivities (and only activities) described in sub13 section (e).

14 ‘‘(2) SIZE; DURATION.—Each grant made under

15 this section shall be—

16 ‘‘(A) in a sufficient amount to carry out

17 the objectives of this section effectively; and

18 ‘‘(B) for a period of 3 years, which the

19 State agency for higher education may extend

20 for an additional 2 years if the agency deter21 mines that the partnership is making substan22 tial progress toward meeting the specific goals

23 set out in the written agreement required in

24 subsection (c) and on the performance meas25 ures described in section 2804(a)(2).
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1 ‘‘(3) APPLICATIONS.—To be eligible to receive a

2 grant under this section, a partnership shall submit

3 an application to the State agency for higher edu4 cation at such time, in such manner, and containing

5 such information as the agency may reasonably re6 quire.

7 ‘‘(4) AWARD PROCESS AND BASIS.—The State

8 agency for higher education shall make the grants

9 on a competitive basis, using a peer review process.

10 ‘‘(5) PRIORITY.—In making the grants, the

11 State agency for higher education shall give priority

12 to partnerships submitting applications for projects

13 that focus on mentoring programs for beginning

14 teachers.

15 ‘‘(6) CONSIDERATIONS.—In making such a

16 grant for a partnership, the State agency for higher

17 education shall consider—

18 ‘‘(A) the need of the local educational

19 agency involved for the professional develop20 ment and mentoring activities proposed in the

21 application;

22 ‘‘(B) the quality of the program proposed

23 in the application and the likelihood of success

24 of the program in improving classroom instruc25 tion and student academic achievement; and
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1 ‘‘(C) such other criteria as the agency

2 finds to be appropriate.

3 ‘‘(c) AGREEMENTS.—

4 ‘‘(1) IN GENERAL.—No partnership may receive

5 a grant under this section unless the institution of

6 higher education or nonprofit organization involved

7 enters into a written agreement with at least 1 eligi8 ble local educational agency (as defined in section

9 2805(b)(2)) to provide professional development and

10 mentoring for elementary school and secondary

11 school teachers in the schools served by that agency

12 in the core academic subjects.

13 ‘‘(2) GOALS.—Each such agreement shall iden14 tify specific measurable annual goals concerning how

15 the professional development and mentoring that the

16 partnership provides will enhance the ability of the

17 teachers to prepare all students to meet challenging

18 State and local content and student performance

19 standards.

20 ‘‘(d) JOINT EFFORTS WITHIN INSTITUTIONS OF

21 HIGHER EDUCATION.—Each professional development

22 and mentoring activity assisted under this section by a

23 partnership containing an institution of higher education

24 shall involve the joint effort of the institution of higher

25 education’s school or department of education and the
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1 schools or departments of the institution in the specific

2 disciplines in which the professional development and men3 toring will be provided.

4 ‘‘(e) USES OF FUNDS.—A partnership that receives

5 funds under this section shall use the funds for activities

6 (and only for activities) that consist of—

7 ‘‘(1) professional development and mentoring in

8 the core academic subjects, aligned with State or

9 local content standards, for teams of teachers from

10 a school or school district and, where appropriate,

11 administrators and paraprofessionals;

12 ‘‘(2) research-based professional development

13 and mentoring programs to assist beginning teach14 ers, which may include—

15 ‘‘(A) mentoring and coaching by trained

16 mentor teachers that lasts at least 2 years;

17 ‘‘(B) team teaching with veteran teachers

18 who have a consistent record of helping their

19 students make substantial academic gains;

20 ‘‘(C) provision of time for observation of,

21 and consultation with, veteran teachers;

22 ‘‘(D) provision of reduced teaching loads;

23 and

24 ‘‘(E) provision of additional time for prep25 aration;
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1 ‘‘(3) the provision of technical assistance to

2 school and agency staff for planning, implementing,

3 and evaluating professional development and men4 toring;

5 ‘‘(4) the provision of training for teachers to

6 help the teachers develop the skills necessary to

7 work most effectively with parents; and

8 ‘‘(5) in appropriate cases, the provision of

9 training to address areas of teacher and adminis10 trator shortages.

11 ‘‘(f) COORDINATION.—Any partnership that carries

12 out professional development and mentoring activities

13 under this section shall coordinate the activities with ac14 tivities carried out under title II of the Higher Education

15 Act of 1965, if a local educational agency or institution

16 of higher education in the partnership is participating in

17 programs funded under that title.

18 ‘‘(g) ANNUAL REPORTS.—

19 ‘‘(1) IN GENERAL.—Beginning with fiscal year

20 2002, each partnership that receives a grant under

21 this section shall prepare and submit to the appro22 priate State agency for higher education, by a date

23 set by that agency, an annual report on the progress

24 of the partnership on the performance measures de25 scribed in section 2804(a)(2).
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1 ‘‘(2) CONTENTS.—Each such report shall—

2 ‘‘(A) include a copy of each written agree3 ment required by subsection (c) that is entered

4 into by the partnership; and

5 ‘‘(B) describe how the members of the

6 partnership have collaborated to achieve the

7 specific goals set out in the agreement, and the

8 results of that collaboration.

9 ‘‘(3) COPY.—The State agency for higher edu10 cation shall provide the State educational agency

11 with a copy of each such report.

12 ‘‘SEC. 2810. STATE APPLICATION ACCOUNTABILITY PROVI13 SIONS.

14 ‘‘(a) ASSURANCES.—Each State application sub15 mitted under section 2802 shall contain assurances that—

16 ‘‘(1) beginning on the date of enactment of the

17 Leave No Child Behind Act of 2001, no school in

18 the State that is served under this part will use

19 funds received under this part to hire a teacher who

20 is not a fully qualified teacher; and

21 ‘‘(2) not later than 4 years after the date of en22 actment of the Leave No Child Behind Act of 2001,

23 each teacher in the State who provides services to

24 students served under this part shall be a fully

25 qualified teacher.
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1 ‘‘(b) WITHHOLDING.—If a State fails to meet the re2 quirements described in subsection (a)(2) for a fiscal year

3 in which the requirements apply—

4 ‘‘(1) the Secretary shall withhold, for the fol5 lowing fiscal year, a portion of the funds that would

6 otherwise be available to the State under section

7 2803(a)(1) for the administration of this part; and

8 ‘‘(2) the State shall be subject to such other

9 penalties as are provided by law for a violation of

10 this Act.

11 ‘‘(c) ASSISTANCE BY STATE EDUCATIONAL AGEN12 CY.—Each State application submitted under section

13 2802 shall describe how the State educational agency will

14 help each local educational agency and school in the State

15 develop the capacity to comply with the requirements of

16 this section.

17 ‘‘SEC. 2811. LOCAL APPLICATION ACCOUNTABILITY PROVI18 SIONS.

19 ‘‘Each local application submitted under section 2806

20 shall contain assurances that—

21 ‘‘(1) the agency will not hire a teacher with

22 funds made available to the agency under this part,

23 unless the teacher is a fully qualified teacher;

24 ‘‘(2) the local educational agency and schools

25 served by the agency will work to ensure, through
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1 voluntary agreements and incentive programs, that

2 elementary school and secondary school teachers in

3 high-poverty schools served by the local educational

4 agency will be at least as well qualified, in terms of

5 experience and credentials, as the instructional staff

6 in schools served by the same local educational agen7 cy that are not high-poverty schools;

8 ‘‘(3) any teacher who receives certification from

9 the National Board for Professional Teaching

10 Standards will be considered fully qualified to teach

11 in the academic subjects in which the teacher is cer12 tified in high-poverty schools in any school district

13 or community served by the local educational agen14 cy; and

15 ‘‘(4) the agency will—

16 ‘‘(A) make available, on request and in an

17 understandable and uniform format, to any par18 ent of a student attending any school served by

19 the local educational agency, information re20 garding the professional qualifications of the

21 student’s classroom teachers with regard to—

22 ‘‘(i) whether the teacher has met

23 State certification or licensing criteria for

24 the academic subjects and grade level in

25 which the teacher teaches the student;
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1 ‘‘(ii) whether the teacher is teaching

2 with emergency credentials or whether any

3 State certification or licensing standard

4 has been waived for the teacher; and

5 ‘‘(iii) the academic qualifications of

6 the teacher in the academic subjects and

7 grade levels in which the teacher teaches;

8 and

9 ‘‘(B) inform parents that the parents are

10 entitled to receive the information upon request.

11 ‘‘SEC. 2812. DEFINITIONS.

12 ‘‘In this part:

13 ‘‘(1) BEGINNING TEACHER.—The term ‘begin14 ning teacher’ means a fully qualified teacher who

15 has taught for 3 years or less.

16 ‘‘(2) CORE ACADEMIC SUBJECTS.—The term

17 ‘core academic subjects’ means—

18 ‘‘(A) mathematics;

19 ‘‘(B) science;

20 ‘‘(C) reading (or language arts) and

21 English;

22 ‘‘(D) social studies (consisting of history,

23 civics, government, geography, and economics);

24 ‘‘(E) foreign languages; and
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1 ‘‘(F) fine arts (consisting of music, dance,

2 drama, and the visual arts).

3 ‘‘(3) COVERED RECRUITMENT.—The term ‘cov4 ered recruitment’ means activities described in sec5 tion 2807(c).

6 ‘‘(4) FULLY QUALIFIED.—

7 ‘‘(A) IN GENERAL.—The term ‘fully quali8 fied’, used with respect to a teacher, means a

9 teacher who—

10 ‘‘(i)(I) is certified or licensed and has

11 demonstrated the academic subject knowl12 edge, teaching knowledge, and teaching

13 skills necessary to teach effectively in the

14 academic subject in which the teacher

15 teaches, according to the standards de16 scribed in subparagraph (B) or (C), as ap17 propriate; and

18 ‘‘(II) shall not be a teacher for whom

19 State certification or licensing require20 ments have been waived or who is teaching

21 under emergency credentials; or

22 ‘‘(ii) meets the standards of the Na23 tional Board for Professional Teaching

24 Standards.
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1 ‘‘(B) ELEMENTARY SCHOOL INSTRUC2 TIONAL STAFF.—For purposes of complying

3 with subparagraph (A)(i), each elementary

4 school teacher (other than a middle school

5 teacher) in the State shall, at a minimum—

6 ‘‘(i) have State certification or a State

7 license to teach (which may include certifi8 cation or licensing obtained through alter9 native routes); and

10 ‘‘(ii) hold a bachelor’s degree and

11 demonstrate the academic subject knowl12 edge, teaching knowledge, and teaching

13 skills required to teach effectively in read14 ing, writing, mathematics, social studies,

15 science, and other academic subjects.

16 ‘‘(C) MIDDLE SCHOOL AND SECONDARY

17 SCHOOL INSTRUCTIONAL STAFF.—For purposes

18 of complying with subparagraph (A)(i), each

19 middle school or secondary school teacher in the

20 State shall, at a minimum—

21 ‘‘(i) have State certification or a State

22 license to teach (which may include certifi23 cation or licensing obtained through alter24 native routes); and
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1 ‘‘(ii) hold a bachelor’s degree or high2 er degree and demonstrate a high level of

3 competence in all academic subjects in

4 which the teacher teaches through—

5 ‘‘(I) achievement of a high level

6 of performance on rigorous academic

7 subject tests;

8 ‘‘(II) completion of an academic

9 major (or courses totaling an equiva10 lent number of credit hours) in each

11 of the academic subjects in which the

12 teacher teaches; or

13 ‘‘(III) for a teacher hired prior to

14 the date of enactment of the Leave

15 No Child Behind Act of 2001, comple16 tion of appropriate course work for

17 mastery of such academic subjects.

18 ‘‘(5) HIGH-POVERTY.—The term ‘high-poverty’,

19 used with respect to a school, means a school that

20 serves a high number or percentage of children from

21 families with incomes below the poverty line, as de22 termined by the State in which the school is located.

23 ‘‘(6) HIGH-POVERTY LOCAL EDUCATIONAL

24 AGENCY.—The term ‘high-poverty local educational

25 agency’ means a local educational agency for which
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1 the number of children served by the agency who are

2 age 5 through 17, and from families with incomes

3 below the poverty line—

4 ‘‘(A) is not less than 20 percent of the

5 number of all children served by the agency; or

6 ‘‘(B) is more than 10,000.

7 ‘‘(7) INSTITUTION OF HIGHER EDUCATION.—

8 The term ‘institution of higher education’—

9 ‘‘(A) has the meaning given the term in

10 section 101(a) of the Higher Education Act of

11 1965; and

12 ‘‘(B) if such an institution prepares teach13 ers and receives Federal funds, means such an

14 institution that—

15 ‘‘(i) is in full compliance with the re16 quirements of section 207 of the Higher

17 Education Act of 1965; and

18 ‘‘(ii) does not have a teacher prepara19 tion program identified by a State as low20 performing.

21 ‘‘(8) LOW-PERFORMING SCHOOL.—The term

22 ‘low-performing school’ means—

23 ‘‘(A) a school identified by a local edu24 cational agency for school improvement under

25 section 1116(c); or
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1 ‘‘(B) a school in which the great majority

2 of students, as determined by the State in

3 which the school is located, fail to meet State

4 student performance standards based on assess5 ments the local educational agency is using

6 under part A of title I.

7 ‘‘(9) MENTORING.—The term ‘mentoring’

8 means activities that—

9 ‘‘(A) consist of structured guidance and

10 regular and ongoing support for beginning

11 teachers, that—

12 ‘‘(i) is designed to help the teachers

13 continue to improve their practice of teach14 ing and to develop their instructional skills;

15 and

16 ‘‘(ii)(I) is part of a multiyear, develop17 mental induction process;

18 ‘‘(II) involves the assistance of a men19 tor teacher and other appropriate individ20 uals from a school, local educational agen21 cy, or institution of higher education; and

22 ‘‘(III) may include coaching, class23 room observation, team teaching, and re24 duced teaching loads; and
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1 ‘‘(B) may include the establishment of a

2 partnership by a local educational agency with

3 an institution of higher education, another local

4 educational agency, teacher organization, or an5 other organization, for the purpose of carrying

6 out the activities described in subparagraph

7 (A).

8 ‘‘(10) MENTOR TEACHER.—The term ‘mentor

9 teacher’ means a fully qualified teacher who—

10 ‘‘(A) is a highly competent classroom

11 teacher who is formally selected and trained to

12 work effectively with beginning teachers (includ13 ing corps members described in section 2808);

14 ‘‘(B) is full-time, and is assigned and

15 qualified to teach in the content area or grade

16 level in which a beginning teacher (including a

17 corps member described in section 2808), to

18 whom the teacher provides mentoring, intends

19 to teach;

20 ‘‘(C) has been consistently effective in

21 helping diverse groups of students make sub22 stantial achievement gains; and

23 ‘‘(D) has been selected to provide men24 toring through a peer review process that uses,

25 as the primary selection criterion for the proc-
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1 ess, the teacher’s ability to help students

2 achieve academic gains.

3 ‘‘(11) POVERTY LINE.—The term ‘poverty line’

4 means the poverty line (as defined by the Office of

5 Management and Budget, and revised annually in

6 accordance with section 673(2) of the Community

7 Services Block Grant Act (42 U.S.C. 9902(2))) ap8 plicable to a family of the size involved.

9 ‘‘(12) PROFESSIONAL DEVELOPMENT.—The

10 term ‘professional development’ means activities that

11 are—

12 ‘‘(A)(i) an integral part of broad

13 schoolwide and districtwide educational im14 provement plans and enhance the ability of

15 teachers and other staff to help all students, in16 cluding females, students with disabilities, stu17 dents with limited English proficiency, and stu18 dents who have economic and educational dis19 advantages, meet high State and local content

20 and student performance standards;

21 ‘‘(ii) sustained, intensive, school-embedded,

22 tied to State standards, and of high quality and

23 sufficient duration to have a positive and last24 ing impact on classroom instruction (not one25 time workshops); and
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1 ‘‘(iii) based on the best available research

2 on teaching and learning; and

3 ‘‘(B) described in subparagraphs (A)

4 through (F) of section 2807(a)(1).

5 ‘‘(13) RECRUITMENT ACTIVITIES.—The term

6 ‘recruitment activities’ means activities carried out

7 through a teacher corps program as described in sec8 tion 2808 to attract highly qualified individuals, in9 cluding individuals taking nontraditional routes to

10 teaching, to enter teaching and support the individ11 uals during necessary certification and licensure ac12 tivities.

13 ‘‘(14) RECRUITMENT PARTNERSHIP.—The term

14 ‘recruitment partnership’ means a partnership de15 scribed in section 2805(b)(2).

16 ‘‘SEC. 2813. AUTHORIZATION OF APPROPRIATIONS.

17 ‘‘There is authorized to be appropriated to carry out

18 this part, $1,730,000,000 for fiscal year 2002 and for

19 each of the 4 succeeding fiscal years.’’.

20 Subchapter B—National Board Certification

21 Program

22 SEC. 3471. PURPOSE.

23 It is the purpose of this subchapter to assist 105,000

24 elementary school or secondary school teachers in becom25 ing board certified by the year 2006.
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1 SEC. 3472. GRANTS TO EXPAND PARTICIPATION IN THE NA2 TIONAL BOARD CERTIFICATION PROGRAM.

3 (a) DEFINITIONS.—The terms used in this section

4 have the meanings given the terms in section 14101 of

5 the Elementary and Secondary Education Act of 1965 (20

6 U.S.C. 8801).

7 (b) GRANTS AUTHORIZED.—From amounts appro8 priated under subsection (f), the Secretary shall award

9 grants to States to enable such States to provide subsidies

10 to elementary school and secondary school teachers who

11 enroll in the certification program of the National Board

12 for Professional Teaching Standards.

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

14 under subsection (b), a State shall prepare and submit to

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

16 and containing such information as the Secretary may re17 quire.

18 (d) AMOUNT OF GRANT.—The amount of a grant

19 awarded to a State under subsection (b) shall be deter20 mined by the Secretary.

21 (e) USE OF FUNDS.—

22 (1) IN GENERAL.—A State shall use amounts

23 received under a grant under this section to provide

24 a subsidy to an eligible teacher who enrolls and com25 pletes the teaching certification program of the Na26 tional Board for Professional Teaching Standards.
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1 (2) ELIGIBILITY.—

2 (A) IN GENERAL.—To be eligible to receive

3 a subsidy under this section an individual

4 shall—

5 (i) be a teacher in an elementary

6 school or secondary school, served by a

7 local educational agency that meets the eli8 gibility requirements described in subpara9 graph (B), in the State involved;

10 (ii) prepare and submit to the State

11 an application at such time, in such man12 ner, and containing such information as

13 the State may require; and

14 (iii) certify to the State that the indi15 vidual intends to enroll and complete the

16 teaching certification program of the Na17 tional Board for Professional Teaching

18 Standards.

19 (B) LOCAL EDUCATIONAL AGENCY.—A

20 local educational agency described in subpara21 graph (A)(i) is a local educational agency

22 that—

23 (i) serves low achieving students as

24 measured by low graduation rates or low

25 scores on assessment exams;
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1 (ii) has a low teacher retention rate in

2 the schools served by the local educational

3 agency;

4 (iii) has a high rate of out-of-field

5 placement of teachers in the schools served

6 by the local educational agency; and

7 (iv) has a shortage of teachers of

8 mathematics or physical science in the

9 schools served by the local educational

10 agency.

11 (3) AMOUNT OF SUBSIDY.—Subject to the

12 availability of funds, a State shall provide a teacher

13 who has an application approved under paragraph

14 (2) with a subsidy in an amount equal to 90 percent

15 of the cost of enrollment in the program described

16 in paragraph (2)(A)(iii).

17 (f) APPROPRIATIONS.—There are authorized to be

18 appropriated to carry out this section, $37,800,000 for

19 each of the fiscal years 2002 through 2006.

20 Subchapter C—Student Loan Forgiveness for

21 Teachers

22 SEC. 3481. STUDENT LOAN FORGIVENESS FOR TEACHERS.

23 (a) GUARANTEED LOANS.—Section 428J of the

24 Higher Education Act of 1965 (20 U.S.C. 1078–10) is

25 amended to read as follows:
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1 ‘‘SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.

2 ‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of

3 this section to encourage individuals to enter and continue

4 in the teaching profession.

5 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary shall

6 carry out a program, through the holder of the loan, of

7 assuming the obligation to repay in accordance with sub8 section (c) a qualified loan amount for a loan made under

9 section 428 or 428H for any borrower who—

10 ‘‘(1) is employed as a full-time teacher during

11 the academic year beginning in calendar year 2001

12 or during any subsequent academic year—

13 ‘‘(A) in a school that qualifies under sec14 tion 465(a)(2)(A) for loan cancellation for Per15 kins loan recipients who teach in such schools;

16 ‘‘(B) if employed as a secondary school

17 teacher, is teaching—

18 ‘‘(i) a subject area that is relevant to

19 the borrower’s academic major as certified

20 by the chief administrative officer of the

21 public or nonprofit private secondary

22 school in which the borrower is employed;

23 or

24 ‘‘(ii) special education or bilingual

25 education;
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1 ‘‘(C) if employed as an elementary school

2 teacher, has demonstrated, as certified by the

3 chief administrative officer of the public or non4 profit private elementary school in which the

5 borrower is employed, knowledge and teaching

6 skills in reading, writing, mathematics, special

7 education, bilingual education, or other areas of

8 the elementary school curriculum; and

9 ‘‘(D) is fully qualified, as such term is de10 fined in section 2812(4)(A) of the Elementary

11 and Secondary Education Act of 1965; and

12 ‘‘(2) is not in default on a loan for which the

13 borrower seeks forgiveness.

14 ‘‘(c) QUALIFIED LOANS AMOUNT.—

15 ‘‘(1) IN GENERAL.—Of the aggregate loan obli16 gations of a borrower on loans made under section

17 428 or 428H that are outstanding after the comple18 tion of the first complete school year of teaching de19 scribed in subsection (b)(1) for which the borrower

20 applies for repayment under this section, the Sec21 retary shall repay not more than—

22 ‘‘(A) $3,000 for each of the first and sec23 ond such complete school years;

24 ‘‘(B) $4,000 for the third such complete

25 school year; and
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1 ‘‘(C) $5,000 for each of the fourth and

2 fifth such complete school years.

3 ‘‘(2) TREATMENT OF CONSOLIDATION LOANS.—

4 A loan amount for a loan made under section 428C

5 may be a qualified loan amount for the purposes of

6 this subsection only to the extent that such loan

7 amount was used to repay a Federal Direct Stafford

8 Loan, a Federal Direct Unsubsidized Stafford Loan,

9 or a loan made under section 428 or 428H for a

10 borrower who meets the requirements of subsection

11 (b), as determined in accordance with regulations

12 prescribed by the Secretary.

13 ‘‘(d) REGULATIONS.—The Secretary is authorized to

14 issue such regulations as may be necessary to carry out

15 the provisions of this section.

16 ‘‘(e) CONSTRUCTION.—Nothing in this section shall

17 be construed to authorize any refunding of any repayment

18 of a loan.

19 ‘‘(f) LIST.—If the list of schools in which a teacher

20 may perform service pursuant to subsection (b) is not

21 available before May 1 of any year, the Secretary may use

22 the list for the year preceding the year for which the deter23 mination is made to make such service determination.

24 ‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—
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1 ‘‘(1) CONTINUED ELIGIBILITY.—Any teacher

2 who performs service in a school that—

3 ‘‘(A) meets the requirements of subsection

4 (b)(1)(A) in any year during such service; and

5 ‘‘(B) in a subsequent year fails to meet the

6 requirements of such subsection,

7 may continue to teach in such school and shall be

8 eligible for loan forgiveness pursuant to subsection

9 (b).

10 ‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No

11 borrower may, for the same service, receive a benefit

12 under both this subsection and subtitle D of title I

13 of the National and Community Service Act of 1990

14 (42 U.S.C. 12571 et seq.). No borrower may receive

15 a reduction of loan obligations under both this sec16 tion and section 460.

17 ‘‘(h) DEFINITION.—For purposes of this section, the

18 term ‘year’, where applied to service as a teacher, means

19 an academic year as defined by the Secretary.’’.

20 (b) DIRECT LOANS.—Section 460 of such Act (20

21 U.S.C. 1087j) is amended to read as follows:

22 ‘‘SEC. 460. LOAN FORGIVENESS FOR TEACHERS.

23 ‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of

24 this section to encourage individuals to enter and continue

25 in the teaching profession.
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1 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary shall

2 carry out a program of canceling the obligation to repay

3 a qualified loan amount in accordance with subsection (c)

4 for Federal Direct Stafford Loans and Federal Direct Un5 subsidized Stafford Loans made under this part for any

6 borrower who—

7 ‘‘(1) is employed as a full-time teacher during

8 the academic year beginning in calendar year 2001

9 or during any subsequent academic year—

10 ‘‘(A) in a school that qualifies under sec11 tion 465(a)(2)(A) for loan cancellation for Per12 kins loan recipients who teach in such schools;

13 ‘‘(B) if employed as a secondary school

14 teacher, is teaching—

15 ‘‘(i) a subject area that is relevant to

16 the borrower’s academic major as certified

17 by the chief administrative officer of the

18 public or nonprofit private secondary

19 school in which the borrower is employed;

20 or

21 ‘‘(ii) special education or bilingual

22 education;

23 ‘‘(C) if employed as an elementary school

24 teacher, has demonstrated, as certified by the

25 chief administrative officer of the public or non-
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1 profit private elementary school in which the

2 borrower is employed, knowledge and teaching

3 skills in reading, writing, mathematics, special

4 education, bilingual education, and other areas

5 of the elementary school curriculum; and

6 ‘‘(D) is fully qualified, as such term is de7 fined in section 2812(4)(A) of the Elementary

8 and Secondary Education Act of 1965; and

9 ‘‘(2) is not in default on a loan for which the

10 borrower seeks forgiveness.

11 ‘‘(c) QUALIFIED LOANS AMOUNT.—

12 ‘‘(1) IN GENERAL.—Of the aggregate loan obli13 gations of a borrower on Federal Direct Stafford

14 Loans and Federal Direct Unsubsidized Stafford

15 Loans made under this part that are outstanding

16 after the completion of the first complete school year

17 of teaching described in subsection (b)(1) for which

18 the borrower applies for cancellation under this sec19 tion, the Secretary shall cancel not more than—

20 ‘‘(A) $3,000 for each of the first and sec21 ond such complete school years;

22 ‘‘(B) $4,000 for the third such complete

23 school year; and

24 ‘‘(C) $5,000 for each of the fourth and

25 fifth such complete school years.
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1 ‘‘(2) TREATMENT OF CONSOLIDATION LOANS.—

2 A loan amount for a Federal Direct Consolidation

3 Loan may be a qualified loan amount for the pur4 poses of this subsection only to the extent that such

5 loan amount was used to repay a Federal Direct

6 Stafford Loan, a Federal Direct Unsubsidized Staf7 ford Loan, or a loan made under section 428 or

8 428H, for a borrower who meets the requirements of

9 subsection (b), as determined in accordance with

10 regulations prescribed by the Secretary.

11 ‘‘(d) REGULATIONS.—The Secretary is authorized to

12 issue such regulations as may be necessary to carry out

13 the provisions of this section.

14 ‘‘(e) CONSTRUCTION.—Nothing in this section shall

15 be construed to authorize any refunding of any repayment

16 of a loan.

17 ‘‘(f) LIST.—If the list of schools in which a teacher

18 may perform service pursuant to subsection (b) is not

19 available before May 1 of any year, the Secretary may use

20 the list for the year preceding the year for which the deter21 mination is made to make such service determination.

22 ‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—

23 ‘‘(1) CONTINUED ELIGIBILITY.—Any teacher

24 who performs service in a school that—
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1 ‘‘(A) meets the requirements of subsection

2 (b)(1)(A) in any year during such service; and

3 ‘‘(B) in a subsequent year fails to meet the

4 requirements of such subsection,

5 may continue to teach in such school and shall be

6 eligible for loan forgiveness pursuant to subsection

7 (b).

8 ‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No

9 borrower may, for the same service, receive a benefit

10 under both this subsection and subtitle D of title I

11 of the National and Community Service Act of 1990

12 (42 U.S.C. 12571 et seq.). No borrower may receive

13 a reduction of loan obligations under both this sec14 tion and section 428J.

15 ‘‘(h) DEFINITION.—For purposes of this section, the

16 term ‘year’, where applied to service as a teacher, means

17 an academic year as defined by the Secretary.’’.

18 CHAPTER 6—SCHOOL CONSTRUCTION

19 Subchapter A—School Modernization Bonds

20 SEC. 3501. SHORT TITLE.

21 This subchapter may be cited as the ‘‘America’s Bet22 ter Classroom Act of 2001’’.
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1 SEC. 3502. EXPANSION OF INCENTIVES FOR PUBLIC

2 SCHOOLS.

3 (a) IN GENERAL.—Chapter 1 of the Internal Rev4 enue Code of 1986 is amended by adding at the end the

5 following:

6 ‘‘Subchapter Y—Public School Modernization

7 Provisions

‘‘Sec. 1400K. Credit to holders of qualified public school modernization bonds.

‘‘Sec. 1400L. Qualified school construction bonds.

‘‘Sec. 1400M. Qualified zone academy bonds.

8 ‘‘SEC. 1400K. CREDIT TO HOLDERS OF QUALIFIED PUBLIC

9 SCHOOL MODERNIZATION BONDS.

10 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax11 payer who holds a qualified public school modernization

12 bond on a credit allowance date of such bond which occurs

13 during the taxable year, there shall be allowed as a credit

14 against the tax imposed by this chapter for such taxable

15 year an amount equal to the sum of the credits determined

16 under subsection (b) with respect to credit allowance dates

17 during such year on which the taxpayer holds such bond.

18 ‘‘(b) AMOUNT OF CREDIT.—

19 ‘‘(1) IN GENERAL.—The amount of the credit

20 determined under this subsection with respect to any

21 credit allowance date for a qualified public school

22 modernization bond is 25 percent of the annual

23 credit determined with respect to such bond.
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1 ‘‘(2) ANNUAL CREDIT.—The annual credit de2 termined with respect to any qualified public school

3 modernization bond is the product of—

4 ‘‘(A) the applicable credit rate, multiplied

5 by

6 ‘‘(B) the outstanding face amount of the

7 bond.

8 ‘‘(3) APPLICABLE CREDIT RATE.—For purposes

9 of paragraph (1), the applicable credit rate with re10 spect to an issue is the rate equal to an average

11 market yield (as of the day before the date of

12 issuance of the issue) on outstanding long-term cor13 porate debt obligations (determined under regula14 tions prescribed by the Secretary).

15 ‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE16 DEMPTION.—In the case of a bond which is issued

17 during the 3-month period ending on a credit allow18 ance date, the amount of the credit determined

19 under this subsection with respect to such credit al20 lowance date shall be a ratable portion of the credit

21 otherwise determined based on the portion of the 3-

22 month period during which the bond is outstanding.

23 A similar rule shall apply when the bond is re24 deemed.

25 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—
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1 ‘‘(1) IN GENERAL.—The credit allowed under

2 subsection (a) for any taxable year shall not exceed

3 the excess of—

4 ‘‘(A) the sum of the regular tax liability

5 (as defined in section 26(b)) plus the tax im6 posed by section 55, over

7 ‘‘(B) the sum of the credits allowable

8 under part IV of subchapter A (other than sub9 part C thereof, relating to refundable credits).

10 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the

11 credit allowable under subsection (a) exceeds the

12 limitation imposed by paragraph (1) for such taxable

13 year, such excess shall be carried to the succeeding

14 taxable year and added to the credit allowable under

15 subsection (a) for such taxable year.

16 ‘‘(d) QUALIFIED PUBLIC SCHOOL MODERNIZATION

17 BOND; CREDIT ALLOWANCE DATE.—For purposes of this

18 section—

19 ‘‘(1) QUALIFIED PUBLIC SCHOOL MODERNIZA20 TION BOND.—The term ‘qualified public school mod21 ernization bond’ means—

22 ‘‘(A) a qualified zone academy bond, and

23 ‘‘(B) a qualified school construction bond.

24 ‘‘(2) CREDIT ALLOWANCE DATE.—The term

25 ‘credit allowance date’ means—
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1 ‘‘(A) March 15,

2 ‘‘(B) June 15,

3 ‘‘(C) September 15, and

4 ‘‘(D) December 15.

5 Such term includes the last day on which the bond

6 is outstanding.

7 ‘‘(e) OTHER DEFINITIONS.—For purposes of this

8 subchapter—

9 ‘‘(1) LOCAL EDUCATIONAL AGENCY.—The term

10 ‘local educational agency’ has the meaning given to

11 such term by section 14101 of the Elementary and

12 Secondary Education Act of 1965. Such term in13 cludes the local educational agency that serves the

14 District of Columbia but does not include any other

15 State agency.

16 ‘‘(2) BOND.—The term ‘bond’ includes any ob17 ligation.

18 ‘‘(3) STATE.—The term ‘State’ includes the

19 District of Columbia and any possession of the

20 United States.

21 ‘‘(4) PUBLIC SCHOOL FACILITY.—The term

22 ‘public school facility’ shall not include—

23 ‘‘(A) any stadium or other facility pri24 marily used for athletic contests or exhibitions
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1 or other events for which admission is charged

2 to the general public, or

3 ‘‘(B) any facility which is not owned by a

4 State or local government or any agency or in5 strumentality of a State or local government.

6 ‘‘(f) CREDIT INCLUDED IN GROSS INCOME.—Gross

7 income includes the amount of the credit allowed to the

8 taxpayer under this section (determined without regard to

9 subsection (c)) and the amount so included shall be treat10 ed as interest income.

11 ‘‘(g) BONDS HELD BY REGULATED INVESTMENT

12 COMPANIES.—If any qualified public school modernization

13 bond is held by a regulated investment company, the credit

14 determined under subsection (a) shall be allowed to share15 holders of such company under procedures prescribed by

16 the Secretary.

17 ‘‘(h) CREDITS MAY BE STRIPPED.—Under regula18 tions prescribed by the Secretary—

19 ‘‘(1) IN GENERAL.—There may be a separation

20 (including at issuance) of the ownership of a quali21 fied public school modernization bond and the enti22 tlement to the credit under this section with respect

23 to such bond. In case of any such separation, the

24 credit under this section shall be allowed to the per25 son who on the credit allowance date holds the in-
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1 strument evidencing the entitlement to the credit

2 and not to the holder of the bond.

3 ‘‘(2) CERTAIN RULES TO APPLY.—In the case

4 of a separation described in paragraph (1), the rules

5 of section 1286 shall apply to the qualified public

6 school modernization bond as if it were a stripped

7 bond and to the credit under this section as if it

8 were a stripped coupon.

9 ‘‘(i) TREATMENT FOR ESTIMATED TAX PURPOSES.—

10 Solely for purposes of sections 6654 and 6655, the credit

11 allowed by this section to a taxpayer by reason of holding

12 a qualified public school modernization bonds on a credit

13 allowance date shall be treated as if it were a payment

14 of estimated tax made by the taxpayer on such date.

15 ‘‘(j) CREDIT MAY BE TRANSFERRED.—Nothing in

16 any law or rule of law shall be construed to limit the trans17 ferability of the credit allowed by this section through sale

18 and repurchase agreements.

19 ‘‘(k) REPORTING.—Issuers of qualified public school

20 modernization bonds shall submit reports similar to the

21 reports required under section 149(e).

22 ‘‘(l) TERMINATION.—This section shall not apply to

23 any bond issued after September 30, 2006.
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1 ‘‘SEC. 1400L. QUALIFIED SCHOOL CONSTRUCTION BONDS.

2 ‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.—

3 For purposes of this subchapter, the term ‘qualified school

4 construction bond’ means any bond issued as part of an

5 issue if—

6 ‘‘(1) 95 percent or more of the proceeds of such

7 issue are to be used for the construction, rehabilita8 tion, or repair of a public school facility or for the

9 acquisition of land on which such a facility is to be

10 constructed with part of the proceeds of such issue,

11 ‘‘(2) the bond is issued by a State or local gov12 ernment within the jurisdiction of which such school

13 is located,

14 ‘‘(3) the issuer designates such bond for pur15 poses of this section, and

16 ‘‘(4) the term of each bond which is part of

17 such issue does not exceed 15 years.

18 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES19 IGNATED.—The maximum aggregate face amount of

20 bonds issued during any calendar year which may be des21 ignated under subsection (a) by any issuer shall not exceed

22 the sum of—

23 ‘‘(1) the limitation amount allocated under sub24 section (d) for such calendar year to such issuer,

25 and
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1 ‘‘(2) if such issuer is a large local educational

2 agency (as defined in subsection (e)(4)) or is issuing

3 on behalf of such an agency, the limitation amount

4 allocated under subsection (e) for such calendar year

5 to such agency.

6 ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS

7 DESIGNATED.—There is a national qualified school con8 struction bond limitation for each calendar year. Such lim9 itation is—

10 ‘‘(1) $11,000,000,000 for 2002,

11 ‘‘(2) $11,000,000,000 for 2003, and

12 ‘‘(3) except as provided in subsection (f), zero

13 after 2003.

14 ‘‘(d) 60 PERCENT OF LIMITATION ALLOCATED

15 AMONG STATES.—

16 ‘‘(1) IN GENERAL.—60 percent of the limitation

17 applicable under subsection (c) for any calendar year

18 shall be allocated by the Secretary among the States

19 in proportion to the respective numbers of children

20 in each State who have attained age 5 but not age

21 18 for the most recent fiscal year ending before such

22 calendar year. The limitation amount allocated to a

23 State under the preceding sentence shall be allocated

24 by the State to issuers within such State and such
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1 allocations may be made only if there is an approved

2 State application.

3 ‘‘(2) MINIMUM ALLOCATIONS TO STATES.—

4 ‘‘(A) IN GENERAL.—The Secretary shall

5 adjust the allocations under this subsection for

6 any calendar year for each State to the extent

7 necessary to ensure that the sum of—

8 ‘‘(i) the amount allocated to such

9 State under this subsection for such year,

10 and

11 ‘‘(ii) the aggregate amounts allocated

12 under subsection (e) to large local edu13 cational agencies in such State for such

14 year,

15 is not less than an amount equal to such

16 State’s minimum percentage of the amount to

17 be allocated under paragraph (1) for the cal18 endar year.

19 ‘‘(B) MINIMUM PERCENTAGE.—A State’s

20 minimum percentage for any calendar year is

21 the minimum percentage described in section

22 1124(d) of the Elementary and Secondary Edu23 cation Act of 1965 (20 U.S.C. 6334(d)) for

24 such State for the most recent fiscal year end25 ing before such calendar year.
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1 ‘‘(3) ALLOCATIONS TO CERTAIN POSSES2 SIONS.—The amount to be allocated under para3 graph (1) to any possession of the United States

4 other than Puerto Rico shall be the amount which

5 would have been allocated if all allocations under

6 paragraph (1) were made on the basis of respective

7 populations of individuals below the poverty line (as

8 defined by the Office of Management and Budget).

9 In making other allocations, the amount to be allo10 cated under paragraph (1) shall be reduced by the

11 aggregate amount allocated under this paragraph to

12 possessions of the United States.

13 ‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In

14 addition to the amounts allocated under this sub15 section, $200,000,000 for calendar year 2002, and

16 $200,000,000 for calendar year 2003, shall be allo17 cated by the Secretary of the Interior for purposes

18 of the construction, rehabilitation, and repair of

19 schools funded by the Bureau of Indian Affairs. In

20 the case of amounts allocated under the preceding

21 sentence, Indian tribal governments (as defined in

22 section 7871) shall be treated as qualified issuers for

23 purposes of this subchapter.

24 ‘‘(5) APPROVED STATE APPLICATION.—For

25 purposes of paragraph (1), the term ‘approved State
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1 application’ means an application which is approved

2 by the Secretary of Education and which includes—

3 ‘‘(A) the results of a recent publicly-avail4 able survey (undertaken by the State with the

5 involvement of local education officials, mem6 bers of the public, and experts in school con7 struction and management) of such State’s

8 needs for public school facilities, including de9 scriptions of—

10 ‘‘(i) health and safety problems at

11 such facilities,

12 ‘‘(ii) the capacity of public schools in

13 the State to house projected enrollments,

14 and

15 ‘‘(iii) the extent to which the public

16 schools in the State offer the physical in17 frastructure needed to provide a high-qual18 ity education to all students, and

19 ‘‘(B) a description of how the State will al20 locate to local educational agencies, or other21 wise use, its allocation under this subsection to

22 address the needs identified under subpara23 graph (A), including a description of how it

24 will—
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1 ‘‘(i) ensure that the needs of both

2 rural and urban areas will be recognized,

3 ‘‘(ii) give highest priority to localities

4 with the greatest needs, as demonstrated

5 by inadequate school facilities coupled with

6 a low level of resources to meet those

7 needs,

8 ‘‘(iii) use its allocation under this sub9 section to assist localities that lack the fis10 cal capacity to issue bonds on their own,

11 and

12 ‘‘(iv) ensure that its allocation under

13 this subsection is used only to supplement,

14 and not supplant, the amount of school

15 construction, rehabilitation, and repair in

16 the State that would have occurred in the

17 absence of such allocation.

18 Any allocation under paragraph (1) by a State shall

19 be binding if such State reasonably determined that

20 the allocation was in accordance with the plan ap21 proved under this paragraph.

22 ‘‘(e) 40 PERCENT OF LIMITATION ALLOCATED

23 AMONG LARGEST SCHOOL DISTRICTS.—

24 ‘‘(1) IN GENERAL.—40 percent of the limitation

25 applicable under subsection (c) for any calendar year
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1 shall be allocated under paragraph (2) by the Sec2 retary among local educational agencies which are

3 large local educational agencies for such year. No

4 qualified school construction bond may be issued by

5 reason of an allocation to a large local educational

6 agency under the preceding sentence unless such

7 agency has an approved local application.

8 ‘‘(2) ALLOCATION FORMULA.—The amount to

9 be allocated under paragraph (1) for any calendar

10 year shall be allocated among large local educational

11 agencies in proportion to the respective amounts

12 each such agency received for Basic Grants under

13 subpart 2 of part A of title I of the Elementary and

14 Secondary Education Act of 1965 (20 U.S.C. 6331

15 et seq.) for the most recent fiscal year ending before

16 such calendar year.

17 ‘‘(3) ALLOCATION OF UNUSED LIMITATION TO

18 STATE.—The amount allocated under this subsection

19 to a large local educational agency for any calendar

20 year may be reallocated by such agency to the State

21 in which such agency is located for such calendar

22 year. Any amount reallocated to a State under the

23 preceding sentence may be allocated as provided in

24 subsection (d)(1).
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1 ‘‘(4) LARGE LOCAL EDUCATIONAL AGENCY.—

2 For purposes of this section, the term ‘large local

3 educational agency’ means, with respect to a cal4 endar year, any local educational agency if such

5 agency is—

6 ‘‘(A) among the 100 local educational

7 agencies with the largest numbers of children

8 aged 5 through 17 from families living below

9 the poverty level, as determined by the Sec10 retary using the most recent data available

11 from the Department of Commerce that are

12 satisfactory to the Secretary, or

13 ‘‘(B) 1 of not more than 25 local edu14 cational agencies (other than those described in

15 subparagraph (A)) that the Secretary of Edu16 cation determines (based on the most recent

17 data available satisfactory to the Secretary) are

18 in particular need of assistance, based on a low

19 level of resources for school construction, a high

20 level of enrollment growth, or such other factors

21 as the Secretary deems appropriate.

22 ‘‘(5) APPROVED LOCAL APPLICATION.—For

23 purposes of paragraph (1), the term ‘approved local

24 application’ means an application which is approved

25 by the Secretary of Education and which includes—
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1 ‘‘(A) the results of a recent publicly-avail2 able survey (undertaken by the local educational

3 agency or the State with the involvement of

4 school officials, members of the public, and ex5 perts in school construction and management)

6 of such agency’s needs for public school facili7 ties, including descriptions of—

8 ‘‘(i) the overall condition of the local

9 educational agency’s school facilities, in10 cluding health and safety problems,

11 ‘‘(ii) the capacity of the agency’s

12 schools to house projected enrollments, and

13 ‘‘(iii) the extent to which the agency’s

14 schools offer the physical infrastructure

15 needed to provide a high-quality education

16 to all students,

17 ‘‘(B) a description of how the local edu18 cational agency will use its allocation under this

19 subsection to address the needs identified under

20 subparagraph (A), and

21 ‘‘(C) a description of how the local edu22 cational agency will ensure that its allocation

23 under this subsection is used only to supple24 ment, and not supplant, the amount of school

25 construction, rehabilitation, or repair in the lo-
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1 cality that would have occurred in the absence

2 of such allocation.

3 A rule similar to the rule of the last sentence of sub4 section (d)(5) shall apply for purposes of this para5 graph.

6 ‘‘(f) CARRYOVER OF UNUSED LIMITATION.—If for

7 any calendar year—

8 ‘‘(1) the amount allocated under subsection (d)

9 to any State, exceeds

10 ‘‘(2) the amount of bonds issued during such

11 year which are designated under subsection (a) pur12 suant to such allocation,

13 the limitation amount under such subsection for such

14 State for the following calendar year shall be increased

15 by the amount of such excess. A similar rule shall apply

16 to the amounts allocated under subsection (d)(5) or (e).

17 ‘‘(g) SPECIAL RULES RELATING TO ARBITRAGE.—

18 ‘‘(1) IN GENERAL.—A bond shall not be treated

19 as failing to meet the requirement of subsection

20 (a)(1) solely by reason of the fact that the proceeds

21 of the issue of which such bond is a part are in22 vested for a temporary period (but not more than 36

23 months) until such proceeds are needed for the pur24 pose for which such issue was issued.
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1 ‘‘(2) BINDING COMMITMENT REQUIREMENT.—

2 Paragraph (1) shall apply to an issue only if, as of

3 the date of issuance, there is a reasonable expecta4 tion that—

5 ‘‘(A) at least 10 percent of the proceeds of

6 the issue will be spent within the 6-month pe7 riod beginning on such date for the purpose for

8 which such issue was issued, and

9 ‘‘(B) the remaining proceeds of the issue

10 will be spent with due diligence for such pur11 pose.

12 ‘‘(3) EARNINGS ON PROCEEDS.—Any earnings

13 on proceeds during the temporary period shall be

14 treated as proceeds of the issue for purposes of ap15 plying subsection (a)(1) and paragraph (1) of this

16 subsection.

17 ‘‘SEC. 1400M. QUALIFIED ZONE ACADEMY BONDS.

18 ‘‘(a) QUALIFIED ZONE ACADEMY BOND.—For pur19 poses of this subchapter—

20 ‘‘(1) IN GENERAL.—The term ‘qualified zone

21 academy bond’ means any bond issued as part of an

22 issue if—

23 ‘‘(A) 95 percent or more of the proceeds of

24 such issue are to be used for a qualified pur-
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1 pose with respect to a qualified zone academy

2 established by a local educational agency,

3 ‘‘(B) the bond is issued by a State or local

4 government within the jurisdiction of which

5 such academy is located,

6 ‘‘(C) the issuer—

7 ‘‘(i) designates such bond for purposes

8 of this section,

9 ‘‘(ii) certifies that it has written as10 surances that the private business con11 tribution requirement of paragraph (2) will

12 be met with respect to such academy, and

13 ‘‘(iii) certifies that it has the written

14 approval of the local educational agency

15 for such bond issuance, and

16 ‘‘(D) the term of each bond which is part

17 of such issue does not exceed 15 years.

18 Rules similar to the rules of section 1400L(g) shall

19 apply for purposes of paragraph (1).

20 ‘‘(2) PRIVATE BUSINESS CONTRIBUTION RE21 QUIREMENT.—

22 ‘‘(A) IN GENERAL.—For purposes of para23 graph (1), the private business contribution re24 quirement of this paragraph is met with respect

25 to any issue if the local educational agency that
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1 established the qualified zone academy has writ2 ten commitments from private entities to make

3 qualified contributions having a present value

4 (as of the date of issuance of the issue) of not

5 less than 10 percent of the proceeds of the

6 issue.

7 ‘‘(B) QUALIFIED CONTRIBUTIONS.—For

8 purposes of subparagraph (A), the term ‘quali9 fied contribution’ means any contribution (of a

10 type and quality acceptable to the local edu11 cational agency) of—

12 ‘‘(i) equipment for use in the qualified

13 zone academy (including state-of-the-art

14 technology and vocational equipment),

15 ‘‘(ii) technical assistance in developing

16 curriculum or in training teachers in order

17 to promote appropriate market driven tech18 nology in the classroom,

19 ‘‘(iii) services of employees as volun20 teer mentors,

21 ‘‘(iv) internships, field trips, or other

22 educational opportunities outside the acad23 emy for students, or

24 ‘‘(v) any other property or service

25 specified by the local educational agency.
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1 ‘‘(3) QUALIFIED ZONE ACADEMY.—The term

2 ‘qualified zone academy’ means any public school (or

3 academic program within a public school) which is

4 established by and operated under the supervision of

5 a local educational agency to provide education or

6 training below the postsecondary level if—

7 ‘‘(A) such public school or program (as the

8 case may be) is designed in cooperation with

9 business to enhance the academic curriculum,

10 increase graduation and employment rates, and

11 better prepare students for the rigors of college

12 and the increasingly complex workforce,

13 ‘‘(B) students in such public school or pro14 gram (as the case may be) will be subject to the

15 same academic standards and assessments as

16 other students educated by the local educational

17 agency,

18 ‘‘(C) the comprehensive education plan of

19 such public school or program is approved by

20 the local educational agency, and

21 ‘‘(D)(i) such public school is located in an

22 empowerment zone or enterprise community

23 (including any such zone or community des24 ignated after the date of the enactment of this

25 section), or
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1 ‘‘(ii) there is a reasonable expectation (as

2 of the date of issuance of the bonds) that at

3 least 35 percent of the students attending such

4 school or participating in such program (as the

5 case may be) will be eligible for free or reduced6 cost lunches under the school lunch program es7 tablished under the National School Lunch Act.

8 ‘‘(4) QUALIFIED PURPOSE.—The term ‘quali9 fied purpose’ means, with respect to any qualified

10 zone academy—

11 ‘‘(A) constructing, rehabilitating, or repair12 ing the public school facility in which the acad13 emy is established,

14 ‘‘(B) acquiring the land on which such fa15 cility is to be constructed with part of the pro16 ceeds of such issue,

17 ‘‘(C) providing equipment for use at such

18 academy,

19 ‘‘(D) developing course materials for edu20 cation to be provided at such academy, and

21 ‘‘(E) training teachers and other school

22 personnel in such academy.

23 ‘‘(b) LIMITATIONS ON AMOUNT OF BONDS DES24 IGNATED.—
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1 ‘‘(1) IN GENERAL.—There is a national zone

2 academy bond limitation for each calendar year.

3 Such limitation is—

4 ‘‘(A) $400,000,000 for 1998,

5 ‘‘(B) $400,000,000 for 1999,

6 ‘‘(C) $400,000,000 for 2000,

7 ‘‘(D) $400,000,000 for 2001,

8 ‘‘(E) $1,400,000,000 for 2002,

9 ‘‘(F) $1,400,000,000 for 2003, and

10 ‘‘(G) except as provided in paragraph (3),

11 zero after 2003.

12 ‘‘(2) ALLOCATION OF LIMITATION.—

13 ‘‘(A) ALLOCATION AMONG STATES.—

14 ‘‘(i) 1998, 1999, 2000, AND 2001 LIMI15 TATIONS.—The national zone academy

16 bond limitations for calendar years 1998,

17 1999, 2000, and 2001 shall be allocated by

18 the Secretary among the States on the

19 basis of their respective populations of in20 dividuals below the poverty line (as defined

21 by the Office of Management and Budget).

22 ‘‘(ii) LIMITATION AFTER 2001.—The

23 national zone academy bond limitation for

24 any calendar year after 2001 shall be allo25 cated by the Secretary among the States in
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1 proportion to the respective amounts each

2 such State received for Basic Grants under

3 subpart 2 of part A of title I of the Ele4 mentary and Secondary Education Act of

5 1965 (20 U.S.C. 6331 et seq.) for the

6 most recent fiscal year ending before such

7 calendar year.

8 ‘‘(B) ALLOCATION TO LOCAL EDU9 CATIONAL AGENCIES.—The limitation amount

10 allocated to a State under subparagraph (A)

11 shall be allocated by the State to qualified zone

12 academies within such State.

13 ‘‘(C) DESIGNATION SUBJECT TO LIMITA14 TION AMOUNT.—The maximum aggregate face

15 amount of bonds issued during any calendar

16 year which may be designated under subsection

17 (a) with respect to any qualified zone academy

18 shall not exceed the limitation amount allocated

19 to such academy under subparagraph (B) for

20 such calendar year.

21 ‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If

22 for any calendar year—

23 ‘‘(A) the limitation amount under this sub24 section for any State, exceeds
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1 ‘‘(B) the amount of bonds issued during

2 such year which are designated under sub3 section (a) (or the corresponding provisions of

4 prior law) with respect to qualified zone acad5 emies within such State,

6 the limitation amount under this subsection for such

7 State for the following calendar year shall be in8 creased by the amount of such excess.’’

9 (b) REPORTING.—Subsection (d) of section 6049 of

10 the Internal Revenue Code of 1986 (relating to returns

11 regarding payments of interest) is amended by adding at

12 the end the following:

13 ‘‘(8) REPORTING OF CREDIT ON QUALIFIED

14 PUBLIC SCHOOL MODERNIZATION BONDS.—

15 ‘‘(A) IN GENERAL.—For purposes of sub16 section (a), the term ‘interest’ includes amounts

17 includible in gross income under section

18 1400K(f) and such amounts shall be treated as

19 paid on the credit allowance date (as defined in

20 section 1400K(d)(2)).

21 ‘‘(B) REPORTING TO CORPORATIONS,

22 ETC.—Except as otherwise provided in regula23 tions, in the case of any interest described in

24 subparagraph (A) of this paragraph, subsection

25 (b)(4) of this section shall be applied without
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1 regard to subparagraphs (A), (H), (I), (J), (K),

2 and (L)(i).

3 ‘‘(C) REGULATORY AUTHORITY.—The Sec4 retary may prescribe such regulations as are

5 necessary or appropriate to carry out the pur6 poses of this paragraph, including regulations

7 which require more frequent or more detailed

8 reporting.’’

9 (c) CONFORMING AMENDMENTS.—

10 (1) Subchapter U of chapter 1 of the Internal

11 Revenue Code of 1986 is amended by striking part

12 IV, by redesignating part V as part IV, and by re13 designating section 1397F as section 1397E.

14 (2) The table of subchapters for chapter 1 of

15 the Internal Revenue Code of 1986 is amended by

16 adding at the end the following:

‘‘Subchapter Y. Public school modernization provisions.’’

17 (3) The table of parts of subchapter U of chap18 ter 1 of the Internal Revenue Code of 1986 is

19 amended by striking the last 2 items and inserting

20 the following:

‘‘Part IV. Regulations.’’

21 (e) EFFECTIVE DATES.—

22 (1) IN GENERAL.—Except as otherwise pro23 vided in this subsection, the amendments made by
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1 this section shall apply to obligations issued after

2 December 31, 2001.

3 (2) REPEAL OF RESTRICTION ON ZONE ACAD4 EMY BOND HOLDERS.—In the case of bonds to

5 which section 1397E of the Internal Revenue Code

6 of 1986 (as in effect before the date of enactment

7 of this Act) applies, the limitation of such section to

8 eligible taxpayers (as defined in subsection (d)(6) of

9 such section) shall not apply after the date of enact10 ment of this Act.

11 SEC. 3503. APPLICATION OF CERTAIN LABOR STANDARDS

12 ON CONSTRUCTION PROJECTS FINANCED

13 UNDER PUBLIC SCHOOL MODERNIZATION

14 PROGRAM.

15 Section 439 of the General Education Provisions Act

16 (relating to labor standards) (20 U.S.C. 1232b) is

17 amended—

18 (1) by inserting ‘‘(a)’’ before ‘‘All laborers and

19 mechanics’’; and

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

21 ‘‘(b)(1) For purposes of this section, the term ‘appli22 cable program’ also includes the qualified zone academy

23 bond provisions enacted by section 226 of the Taxpayer

24 Relief Act of 1997 and the program established by section

25 3502 of the America’s Better Classroom Act of 2001.
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1 ‘‘(2) A State or local government participating in a

2 program described in paragraph (1) shall—

3 ‘‘(A) in the awarding of contracts, give priority

4 to contractors with substantial numbers of employ5 ees residing in the local education area to be served

6 by the school being constructed; and

7 ‘‘(B) include in the construction contract for

8 such school a requirement that the contractor give

9 priority in hiring new workers to individuals residing

10 in such local education area.

11 ‘‘(3) In the case of a program described in paragraph

12 (1), nothing in this subsection or subsection (a) shall be

13 construed to deny any tax credit allowed under such pro14 gram. If amounts are required to be withheld from con15 tractors to pay wages to which workers are entitled, such

16 amounts shall be treated as expended for construction pur17 poses in determining whether the requirements of such

18 program are met.’’.

19 Subchapter B—Schools as Centers of the

20 Community

21 SEC. 3551. FINDINGS.

22 Congress makes the following findings:

23 (1) Communities across the Nation need to

24 build and modernize thousands of public elementary

25 schools and secondary schools in the coming decade
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1 in ways that reflect new approaches to teaching and

2 learning, and in ways that reflect the fact that learn3 ing is a lifelong process for persons of all ages.

4 These schools can make an enduring difference for

5 these communities by affecting not just students but

6 entire neighborhoods for generations.

7 (2) The National Symposium on School Design

8 has recommended that local educational agencies

9 hold community dialogues that discuss the planning

10 and design of their new school buildings. Community

11 partnerships of parents, educators, architects, urban

12 planners, students, and other interested parties can

13 assist local educational agencies to design new

14 schools that better meet the needs of their commu15 nities now and in the future.

16 (3) Establishing such community partnerships

17 for the purpose of broadening public participation in

18 the planning and design of schools encourages

19 broader community involvement in the schools, gen20 erates creativity in the planning process, and pro21 motes savings, cost-sharing, and the most effective

22 use of the school building by the entire community.

23 Such partnerships can help create schools that are

24 centers of teaching and learning for the entire com25 munity.
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1 SEC. 3552. PURPOSE.

2 The purpose of this subchapter is to assist local edu3 cational agencies and their communities to increase the

4 involvement of parents, teachers, students, and community

5 groups in the planning and design of new and renovated

6 public elementary school and secondary school buildings

7 that—

8 (1) enhance teaching and learning, and accom9 modate the needs of all learners;

10 (2) serve as a center of the community;

11 (3) promote health, safety, and security;

12 (4) effectively use all available resources; and

13 (5) are flexible and can accommodate changing

14 community needs.

15 SEC. 3553. PROGRAM AUTHORIZED.

16 (a) GRANTS AUTHORIZED.—

17 (1) IN GENERAL.—From funds appropriated

18 under section 3556, the Secretary shall award

19 grants to local educational agencies participating in

20 eligible consortia to enable the eligible consortia to

21 support the planning and design of—

22 (A) new elementary school or secondary

23 school buildings; or

24 (B) the renovation of existing elementary

25 school or secondary school buildings.
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1 (2) DEFINITION OF ELIGIBLE CONSORTIUM.—

2 In this subchapter, the term ‘‘eligible consortium’’

3 means a consortium that—

4 (A) shall include at least 1 local edu5 cational agency; and

6 (B) may include such organizations and in7 dividuals as a State educational agency, a com8 munity-based organization, a local government,

9 a business or industry, an architect, a parent,

10 teacher, or senior citizen group, a library, or a

11 museum.

12 (b) REQUIREMENTS.—

13 (1) DURATION.—Grants under this subchapter

14 shall be awarded for not more than 1 year.

15 (2) LIMITATION.—Not more than 1 grant pro16 vided under this subchapter may be used to plan or

17 design the same school.

18 (3) MATCHING.—A grant under this subchapter

19 shall not be used to pay for more than 50 percent

20 of the cost of a planning or design project. A recipi21 ent of a grant under this subchapter shall provide at

22 least 50 percent of the cost of the planning or design

23 project from non-Federal sources, which may include

24 in-kind contributions, fairly evaluated.
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1 (c) GEOGRAPHIC DISTRIBUTION.—In awarding

2 grants under this subchapter, the Secretary is authorized

3 to take such steps as are necessary to ensure an equitable

4 geographic distribution of the grants, including distrib5 uting the grants among rural, urban, and suburban local

6 educational agencies.

7 SEC. 3554. USE OF FUNDS.

8 A grant under this subchapter shall be used by a local

9 educational agency to support the planning or design of

10 a new school building, or of the renovation of an existing

11 school building, and may be used for activities such as—

12 (1) community outreach activities (including the

13 development and circulation of explanatory materials

14 and the cost of meetings) designed to encourage

15 greater participation by the community;

16 (2) the development, with the involvement of all

17 stakeholders, of a master plan for a school district;

18 and

19 (3) necessary administrative support for the eli20 gible consortium.

21 SEC. 3555. APPLICATIONS.

22 (a) IN GENERAL.—Each local educational agency de23 siring a grant under this subchapter shall submit to the

24 Secretary an application at such time, and containing such

25 information, as the Secretary may require.
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1 (b) CONTENTS.—Each application submitted under

2 this subchapter shall describe—

3 (1) the community to be served by the new or

4 renovated school, including the needs of that com5 munity with respect to such school;

6 (2) the individuals and groups that compose the

7 eligible consortium and their respective functions;

8 (3) the project activities to be supported by the

9 grant and how the activities will help meet the needs

10 of that community and the purpose of this sub11 chapter; and

12 (4) the availability of resources for the project,

13 and how the resources will be obtained.

14 SEC. 3556. AUTHORIZATION OF APPROPRIATIONS.

15 There are authorized to be appropriated to carry out

16 this subchapter $10,000,000 for fiscal year 2002, and

17 such sums as may be necessary for each of the 4 suc18 ceeding fiscal years.

19 Chapter 7—Child Opportunity Zone Family

20 Centers

21 SEC. 3571. CHILD OPPORTUNITY ZONE FAMILY CENTERS.

22 Title X of the Elementary and Secondary Education

23 Act of 1965 (20 U.S.C. 8001 et seq.), as amended by sec24 tion 3401, is further amended by inserting after part L

25 the following:
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1 ‘‘PART M—CHILD OPPORTUNITY ZONE FAMILY

2 CENTERS

3 ‘‘SEC. 10997A. SHORT TITLE.

4 ‘‘This part may be cited as the ‘Child Opportunity

5 Zone Family Center Act of 2001’.

6 ‘‘SEC. 10997B. PURPOSE.

7 ‘‘The purpose of this part is to encourage eligible

8 partnerships to establish or expand child opportunity zone

9 family centers in public elementary schools and secondary

10 schools in order to provide comprehensive support services

11 for children and their families, and to improve the chil12 dren’s educational, health, mental health, and social out13 comes.

14 ‘‘SEC. 10997C. DEFINITIONS.

15 ‘‘In this part:

16 ‘‘(1) CHILD OPPORTUNITY ZONE FAMILY CEN17 TER.—The term ‘child opportunity zone family cen18 ter’ means a school-based or school-linked commu19 nity service center that provides and links children

20 and their families with comprehensive information,

21 support, services, and activities to improve the edu22 cation, health, mental health, safety, and economic

23 well-being of the children and their families.

24 ‘‘(2) ELIGIBLE PARTNERSHIP.—The term ‘eligi25 ble partnership’ means a partnership—

26 ‘‘(A) that contains—
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1 ‘‘(i) at least 1 public elementary

2 school or secondary school that—

3 ‘‘(I) receives assistance under

4 title I and for which a measure of

5 poverty determination is made under

6 section 1113(a)(5) with respect to a

7 minimum of 40 percent of the chil8 dren in the school; and

9 ‘‘(II) demonstrates parent in10 volvement and parent support for the

11 partnership’s activities;

12 ‘‘(ii) a local educational agency;

13 ‘‘(iii) a public agency, other than a

14 local educational agency, such as a local or

15 State department of health, mental health,

16 or social services;

17 ‘‘(iv) a nonprofit community-based or18 ganization, providing health, mental

19 health, or social services;

20 ‘‘(v) a local child care resource and re21 ferral agency; and

22 ‘‘(vi) a local organization representing

23 parents; and

24 ‘‘(B) that may contain—
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1 ‘‘(i) an institution of higher education;

2 and

3 ‘‘(ii) other public or private nonprofit

4 entities with experience in providing serv5 ices to disadvantaged families.

6 ‘‘SEC. 10997D. GRANTS AUTHORIZED.

7 ‘‘(a) IN GENERAL.—The Secretary may award, on a

8 competitive basis, grants to eligible partnerships to pay

9 for the Federal share of the cost of establishing and ex10 panding child opportunity zone family centers.

11 ‘‘(b) DURATION.—The Secretary shall award grants

12 under this section for periods of 5 years.

13 ‘‘SEC. 10997E. REQUIRED ACTIVITIES.

14 ‘‘Each eligible partnership receiving a grant under

15 this part shall use the grant funds—

16 ‘‘(1) in accordance with the needs assessment

17 described in section 10997F(b)(1), to provide or link

18 children and their families with information, sup19 port, activities, or services in core areas such as edu20 cation, child care, before- and after-school care and

21 enrichment programs, health services, mental health

22 services, family support, nutrition, literacy services,

23 parenting skills, and drop-out prevention;

24 ‘‘(2) to provide intensive, high-quality, research25 based programs that—
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1 ‘‘(A) provide violence prevention education

2 for families and developmentally appropriate in3 structional services to children (including chil4 dren below the age of compulsory school attend5 ance); and

6 ‘‘(B) provide effective strategies for nur7 turing and supporting the emotional, social, and

8 cognitive growth of children; and

9 ‘‘(3) to provide training, information, and sup10 port to families to enable the families to participate

11 effectively in their children’s education, and to help

12 their children meet challenging standards, including

13 assisting families to—

14 ‘‘(A) understand the applicable account15 ability systems, including State and local con16 tent standards, performance standards, and as17 sessments, their children’s educational perform18 ance in comparison to the standards, and the

19 steps the school is taking to address the chil20 dren’s needs and to help the children meet the

21 standards; and

22 ‘‘(B) communicate effectively with per23 sonnel responsible for providing educational

24 services to the families’ children, and to partici25 pate in the development and implementation of
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1 school-parent compacts, parent involvement

2 policies, and school plans.

3 ‘‘SEC. 10997F. APPLICATIONS.

4 ‘‘(a) IN GENERAL.—Each eligible partnership desir5 ing a grant under this part shall submit an application

6 to the Secretary at such time, in such manner, and con7 taining such information as the Secretary may require.

8 ‘‘(b) CONTENTS.—Each application submitted pursu9 ant to subsection (a) shall—

10 ‘‘(1) include a needs assessment, including a de11 scription of how the partnership will ensure that the

12 activities to be assisted under this part will be tai13 lored to meet the specific needs of the children and

14 families to be served;

15 ‘‘(2) describe arrangements that have been for16 malized between the participating public elementary

17 school or secondary school, and other partnership

18 members;

19 ‘‘(3) describe how the partnership will effec20 tively coordinate with the centers under section 1118

21 and utilize Federal, State, and local sources of fund22 ing that provide assistance to families and their chil23 dren;

24 ‘‘(4) describe the partnership’s plan to—
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1 ‘‘(A) develop and carry out the activities

2 assisted under this part with extensive partici3 pation of parents, administrators, teachers,

4 pupil services personnel, social and human serv5 ice agencies, and community organizations and

6 leaders; and

7 ‘‘(B) coordinate the activities assisted

8 under this part with the education reform ef9 forts of the participating public elementary

10 school or secondary school, and the partici11 pating local educational agency;

12 ‘‘(5) describe how the partnership will ensure

13 that underserved populations such as families of stu14 dents with limited English proficiency, and families

15 of students with disabilities, are effectively involved,

16 informed, and assisted;

17 ‘‘(6) describe how the partnership will collect

18 and analyze data, and will utilize specific perform19 ance measures and indicators to—

20 ‘‘(A) determine the impact of activities as21 sisted under this part as described in section

22 10997I(a); and

23 ‘‘(B) improve the activities assisted under

24 this part; and
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1 ‘‘(7) describe how the partnership will protect

2 the privacy of families and their children partici3 pating in the activities assisted under this part.

4 ‘‘SEC. 10997G. FEDERAL SHARE.

5 ‘‘The Federal share of the cost of establishing and

6 expanding child opportunity zone family centers—

7 ‘‘(1) for the first year for which an eligible

8 partnership receives assistance under this part shall

9 not exceed 90 percent;

10 ‘‘(2) for the second such year, shall not exceed

11 80 percent;

12 ‘‘(3) for the third such year, shall not exceed 70

13 percent;

14 ‘‘(4) for the fourth such year, shall not exceed

15 60 percent; and

16 ‘‘(5) for the fifth such year, shall not exceed 50

17 percent.

18 ‘‘SEC. 10997H. FUNDING.

19 ‘‘(a) CONTINUATION OF FUNDING.—Each eligible

20 partnership that receives a grant under this part shall,

21 after the third year for which the partnership receives

22 funds through the grant, be eligible to continue to receive

23 the funds if the Secretary determines that the partnership

24 has made significant progress in meeting the performance
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1 measures used for the partnership’s local evaluation under

2 section 10997I(a).

3 ‘‘(b) LIMITATION ON USE OF FUNDS TO OFFSET

4 OTHER PROGRAMS.—Notwithstanding any other provision

5 of law, none of the funds received under a grant under

6 this part may be used to pay for expenses related to any

7 other Federal program, including treating such funds as

8 an offset against such a Federal program.

9 ‘‘SEC. 10997I. EVALUATIONS AND REPORTS.

10 ‘‘(a) LOCAL EVALUATIONS.—Each partnership re11 ceiving funds under this part shall conduct annual evalua12 tions and submit to the Secretary reports containing the

13 results of the evaluations. The reports shall include the

14 results of the partnership’s performance assessment effec15 tiveness in reaching and meeting the needs of families and

16 children served under this part, including performance

17 measures demonstrating—

18 ‘‘(1) improvements in areas such as student

19 achievement, family participation in schools, and ac20 cess to health care, mental health care, child care,

21 and family support services, resulting from activities

22 assisted under this part; and

23 ‘‘(2) reductions in such areas as violence among

24 youth, truancy, suspension, and dropout rates, re25 sulting from activities assisted under this part.
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1 ‘‘(b) NATIONAL EVALUATIONS.—The Secretary shall

2 reserve not more than 3 percent of the amount appro3 priated under this part to carry out a national evaluation

4 of the effectiveness of the activities assisted under this

5 part. Such evaluation shall be completed not later than

6 3 years after the date of enactment of the Child Oppor7 tunity Zone Family Center Act of 2001, and every year

8 thereafter and shall be submitted to Congress.

9 ‘‘(c) EXEMPLARY ACTIVITIES.—The Secretary shall

10 broadly disseminate information on exemplary activities

11 developed under this part.

12 ‘‘SEC. 10997J. AUTHORIZATION OF APPROPRIATIONS.

13 ‘‘There are authorized to be appropriated to carry out

14 this part $100,000,000 for fiscal year 2002, and such

15 sums as may be necessary for each of the fiscal years 2003

16 through 2005.’’.

17 TITLE IV—FAIR START—LIFTING

18 CHILDREN OUT OF POVERTY

19 Subtitle A—Expanding the Child

20 Tax Credit

21 SEC. 4001. EXPANSION OF CHILD TAX CREDIT; CREDIT

22 MADE PARTIALLY REFUNDABLE.

23 (a) INCREASE IN AMOUNT ALLOWED.—Subsection

24 (a) of section 24 of the Internal Revenue Code of 1986
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1 (relating to allowance of credit) is amended to read as fol2 lows:

3 ‘‘(a) ALLOWANCE OF CREDIT.—

4 ‘‘(1) IN GENERAL.—There shall be allowed as a

5 credit against the tax imposed by this chapter for

6 the taxable year with respect to each qualifying child

7 of the taxpayer an amount equal to the applicable

8 amount.

9 ‘‘(2) APPLICABLE AMOUNT.—For purposes of

10 paragraph (1), the applicable amount shall be deter11 mined as follows:

‘‘In the case of any taxable

year beginning in—

The applicable amount is—

2002 ......................................................................................... $600

2003 ......................................................................................... 700

2004 ......................................................................................... 800

2005 ......................................................................................... 900

2006 or thereafter .................................................................... 1,000.’’.

12 (b) CREDIT ALLOWED AGAINST ALTERNATIVE MIN13 IMUM TAX.—

14 (1) IN GENERAL.—Section 24(b) of the Internal

15 Revenue Code of 1986 (relating to limitation based

16 on adjusted gross income) is amended by adding at

17 the end the following new paragraph:

18 ‘‘(3) LIMITATION BASED ON AMOUNT OF

19 TAX.—The credit allowed under subsection (a) for

20 any taxable year shall not exceed the excess of—
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1 ‘‘(A) the sum of the regular tax liability

2 (as defined in section 26(b)) plus the tax im3 posed by section 55, over

4 ‘‘(B) the sum of the credits allowable

5 under this subpart (other than this section) and

6 section 27 for the taxable year.’’.

7 (2) CONFORMING AMENDMENTS.—

8 (A) Section 24(d) of such Code is

9 amended—

10 (i) by striking ‘‘section 26(a)’’ each

11 place it appears and inserting ‘‘subsection

12 (b)(3)’’, and

13 (ii) in paragraph (1)(B) by striking

14 ‘‘aggregate amount of credits allowed by

15 this subpart’’ and inserting ‘‘amount of

16 credit allowed by this section’’.

17 (B) Paragraph (1) of section 26(a) of such

18 Code is amended by inserting ‘‘(other than sec19 tion 24)’’ after ‘‘this subpart’’.

20 (C) Subsection (c) of section 23 is amend21 ed by striking ‘‘and section 1400C’’ and insert22 ing ‘‘and sections 24 and 1400C’’.

23 (D) Subparagraph (C) of section 25(e)(1)

24 is amended by inserting ‘‘, 24,’’ after ‘‘sections

25 23’’.
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1 (E) Section 904(h) of such Code is amend2 ed by inserting ‘‘(other than section 24)’’ after

3 ‘‘chapter’’.

4 (F) Subsection (d) of section 1400C is

5 amended by inserting ‘‘and section 24’’ after

6 ‘‘this section’’.

7 (G) The heading for section 24(b) of such

8 Code is amended to read as follows: ‘‘LIMITA9 TIONS.—’’.

10 (H) The heading for section 24(b)(1) of

11 such Code is amended to read as follows: ‘‘LIM12 ITATION BASED ON ADJUSTED GROSS IN13 COME.—’’.

14 (c) PORTION OF CHILD CREDIT TREATED AS RE15 FUNDABLE.—

16 (1) IN GENERAL.—Paragraph (1) of section

17 24(d) of the Internal Revenue Code of 1986 (relat18 ing to additional credit for families with 3 or more

19 children), as amended by subsection (b)(2)(A), is

20 amended to read as follows:

21 ‘‘(1) IN GENERAL.—The aggregate credits al22 lowed to a taxpayer under subpart C shall be in23 creased by the sum of the credits allowable under

24 this section for all qualifying children of the tax25 payer (determined without regard to this subsection
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1 and the limitation under subsection (b)(3)). The

2 amount of the credit allowed under this subsection

3 shall not be treated as a credit allowed under this

4 subpart and shall reduce the amount of credit other5 wise allowable under subsection (a) without regard

6 to subsection (b)(3).’’.

7 (2) CONFORMING AMENDMENTS.—

8 (A) Section 24(d) of such Code is amended

9 by striking paragraphs (2) and (3).

10 (B) The heading for section 24(d) of such

11 Code is amended to read as follows: ‘‘ADDI12 TIONAL CREDIT FOR CERTAIN FAMILIES.—’’.

13 (C) Section 32 of such Code is amended by

14 striking subsection (m).

15 (d) COORDINATION WITH FEDERAL MEANS-TESTED

16 PROGRAMS.—Section 24(d) of the Internal Revenue Code

17 of 1986 (relating to additional credit for certain families),

18 as amended by subsection (c), is amended by adding at

19 the end the following new paragraph:

20 ‘‘(2) COORDINATION WITH MEANS-TESTED PRO21 GRAMS.—For purposes of any benefits, assistance,

22 or supportive services under any Federal program or

23 under any State or local program financed, in whole

24 or in part, with Federal funds or with State funds,

25 taken into account under any maintenance of effort
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1 requirements, which imposes income limitations on

2 eligibility for such program, any refund made to an

3 individual (or the spouse of an individual) by reason

4 of this subsection shall not be treated as income

5 (and shall not be taken into account in determining

6 resources for the month of its receipt and the fol7 lowing month).’’.

8 (e) EFFECTIVE DATE.—The amendments made by

9 this section shall apply to taxable years beginning after

10 December 31, 2001.

11 Subtitle B—Strengthening the

12 Earned Income Tax Credit

13 SEC. 4101. SHORT TITLE.

14 This subtitle may be cited as the ‘‘Tax Relief for

15 Working Families Act of 2001’’.

16 SEC. 4102. INCREASED EARNED INCOME TAX CREDIT FOR 2

17 OR MORE QUALIFYING CHILDREN.

18 (a) IN GENERAL.—The table in section 32(b)(1)(A)

19 of the Internal Revenue Code of 1986 (relating to percent20 ages) is amended—

21 (1) in the second item—

22 (A) by striking ‘‘or more’’, and

23 (B) by striking ‘‘21.06’’ and inserting

24 ‘‘19.06’’, and
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1 (2) by inserting after the second item the fol2 lowing:

‘‘3 or more qualifying children 45 ............................. 19.06’’.

3 (b) EFFECTIVE DATE.—The amendments made by

4 this section shall apply to taxable years beginning after

5 December 31, 2001.

6 SEC. 4103. SIMPLIFICATION OF DEFINITION OF EARNED IN7 COME.

8 (a) IN GENERAL.—Section 32(c)(2)(A)(i) of the In9 ternal Revenue Code of 1986 (defining earned income) is

10 amended by inserting ‘‘, but only if such amounts are in11 cludible in gross income for the taxable year’’ after ‘‘other

12 employee compensation’’.

13 (b) CONFORMING AMENDMENT.—Section

14 32(c)(2)(B) of the Internal Revenue Code of 1986 (defin15 ing earned income) is amended by striking ‘‘and’’ at the

16 end of clause (iv), by striking the period at the end of

17 clause (v) and inserting ‘‘, and’’, and by adding at the

18 end the following:

19 ‘‘(vi) the requirement under subpara20 graph (A)(i) that an amount be includible

21 in gross income shall not apply if such

22 amount is exempt from tax under section

23 7873 or is derived directly from restricted

24 and allotted land under the Act of Feb-
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1 ruary 8, 1887 (commonly known as the In2 dian General Allotment Act) (25 U.S.C.

3 331 et seq.) or from land held under Acts

4 or treaties containing an exception provi5 sion similar to the Indian General Allot6 ment Act.’’.

7 (c) EFFECTIVE DATE.—The amendments made by

8 this section shall apply to amounts received in taxable

9 years beginning after December 31, 2001.

10 SEC. 4104. SIMPLIFICATION OF DEFINITION OF CHILD DE11 PENDENT.

12 (a) REMOVAL OF SUPPORT TEST FOR CERTAIN INDI13 VIDUALS.—Section 152(a) of the Internal Revenue Code

14 of 1986 (relating to general definition) is amended to read

15 as follows:

16 ‘‘(a) GENERAL DEFINITION.—For purposes of this

17 subtitle—

18 ‘‘(1) DEPENDENT.—The term ‘dependent’

19 means—

20 ‘‘(A) any individual described in paragraph

21 (2) over half of whose support, for the calendar

22 year in which the taxable year of the taxpayer

23 begins, was received from the taxpayer (or is

24 treated under subsection (c) as received from

25 the taxpayer), or
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1 ‘‘(B) any individual described in subsection

2 (f).

3 ‘‘(2) INDIVIDUALS.—An individual is described

4 in this paragraph if such individual is—

5 ‘‘(A) a brother, sister, stepbrother, or step6 sister of the taxpayer,

7 ‘‘(B) the father or mother of the taxpayer,

8 or an ancestor of either,

9 ‘‘(C) a stepfather or stepmother of the tax10 payer,

11 ‘‘(D) a son or daughter of a brother or sis12 ter of the taxpayer,

13 ‘‘(E) a brother or sister of the father or

14 mother of the taxpayer,

15 ‘‘(F) a son-in-law, daughter-in-law, father16 in-law, mother-in-law, brother-in-law, or sister17 in-law of the taxpayer, or

18 ‘‘(G) an individual (other than an indi19 vidual who at any time during the taxable year

20 was the spouse, determined without regard to

21 section 7703, of the taxpayer) who, for the tax22 able year of the taxpayer, has as their principal

23 place of abode the home of the taxpayer and is

24 a member of the taxpayer’s household.’’.
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1 (b) OTHER MODIFICATIONS.—Section 152 of the In2 ternal Revenue Code of 1986 (relating to dependent de3 fined) is amended by adding at the end the following:

4 ‘‘(f) SUBSECTION (f) DEPENDENTS.—

5 ‘‘(1) IN GENERAL.—An individual is described

6 in this subsection for the taxable year if such

7 individual—

8 ‘‘(A) bears a relationship to the taxpayer

9 described in paragraph (2),

10 ‘‘(B) except in the case of an eligible foster

11 child or as provided in subsection (e), has the

12 same principal place of abode as the taxpayer

13 for more than one-half of such taxable year,

14 and

15 ‘‘(C)(i) has not attained the age of 19 at

16 the close of the calendar year in which the tax17 able year begins, or

18 ‘‘(ii) is a student (within the meaning of

19 section 151(c)(4)) who has not attained the age

20 of 24 at the close of such calendar year.

21 ‘‘(2) RELATIONSHIP TEST.—An individual bears

22 a relationship to the taxpayer described in this para23 graph if such individual is—

24 ‘‘(A) a son or daughter of the taxpayer, or

25 a descendant of either, or
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1 ‘‘(B) a stepson or stepdaughter of the tax2 payer.

3 ‘‘(3) SPECIAL RULES.—

4 ‘‘(A) 2 OR MORE CLAIMING DEPENDENT.—

5 Except as provided in subparagraph (B), if an

6 individual may be claimed as a dependent by 2

7 or more taxpayers (but for this subparagraph)

8 for a taxable year beginning in the same cal9 endar year, only the taxpayer with the highest

10 adjusted gross income for such taxable year

11 shall be allowed the deduction with respect to

12 such individual.

13 ‘‘(B) RELEASE OF CLAIM TO EXEMP14 TION.—Subparagraph (A) shall not apply with

15 respect to an individual if—

16 ‘‘(i) the taxpayer with the highest ad17 justed gross income under subparagraph

18 (A), for any calendar year signs a written

19 declaration (in such manner and form as

20 the Secretary may by regulations pre21 scribe) that such taxpayer will not claim

22 such individual as a dependent for any tax23 able year beginning in such calendar year,

24 ‘‘(ii) the other taxpayer provides over

25 half of such individual’s support for the
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1 calendar year in which the taxable year of

2 such other taxpayer begins, and

3 ‘‘(iii) such other taxpayer attaches

4 such written declaration to such taxpayer’s

5 return for the taxable year beginning dur6 ing such calendar year.’’.

7 (c) RULES RELATING TO FOSTER CHILD.—Section

8 152(b)(2) of the Internal Revenue Code of 1986 (relating

9 to rules relating to general definition) is amended by strik10 ing ‘‘a foster child’’ and all that follows through ‘‘indi11 vidual)’’ and inserting ‘‘an eligible foster child (as defined

12 in section 32(c)(3)(B)(iii)) of an individual’’.

13 (d) EXEMPTION FROM GROSS INCOME TEST.—Sec14 tion 151(c)(3) of the Internal Revenue Code of 1986 (re15 lating to definition of child) is amended by striking ‘‘or

16 stepdaughter’’ and inserting ‘‘stepdaughter, or a descend17 ant of such individual’’.

18 (e) WAIVER OF DEDUCTION FOR DIVORCED PAR19 ENTS.—

20 (1) IN GENERAL.—So much of section 152(e)

21 as precedes paragraph (4) of the Internal Revenue

22 Code of 1986 (relating to support test in case of

23 child of divorced parents, etc.) is amended to read

24 as follows:
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1 ‘‘(e) SPECIAL RULES FOR CHILD OF DIVORCED PAR2 ENTS.—

3 ‘‘(1) RELEASE OF CLAIM TO EXEMPTION.—In

4 the case of a child (as defined in section 151(c)(3))

5 of parents—

6 ‘‘(A) who are divorced or legally separated

7 under a decree of divorce or separate mainte8 nance,

9 ‘‘(B) who are separated under a written

10 separation agreement, or

11 ‘‘(C) who live apart at all times during the

12 last 6 months of the calendar year,

13 the custodial parent who is entitled to the deduction

14 under section 151 for a taxable year with respect to

15 such child may release such deduction to the non16 custodial parent.

17 ‘‘(2) PROCEDURE.—The noncustodial parent

18 may claim a child described in paragraph (1) as a

19 dependent for the taxable year if—

20 ‘‘(A) the custodial parent signs a written

21 declaration (in such manner and form as the

22 Secretary may by regulations prescribe) that

23 such custodial parent will not claim such child

24 as a dependent for any taxable year beginning

25 in such calendar year,
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1 ‘‘(B) the custodial parent and the non2 custodial parent provide over half of such

3 child’s support for the calendar year in which

4 the taxable years of such parents begin, and

5 ‘‘(C) the noncustodial parent attaches such

6 written declaration to such noncustodial par7 ent’s return for the taxable year beginning dur8 ing such calendar year.

9 ‘‘(3) DEFINITIONS.—For purposes of this

10 subsection—

11 ‘‘(A) CUSTODIAL PARENT.—The term ‘cus12 todial parent’ means, with regard to an indi13 vidual, a parent who has custody of such indi14 vidual for a greater portion of the calendar year

15 than the noncustodial parent.

16 ‘‘(B) NONCUSTODIAL PARENT.—The term

17 ‘noncustodial parent’ means the parent who is

18 not the custodial parent.’’.

19 (2) PRE-1985 INSTRUMENTS.—Section

20 152(e)(4)(A) of such Code (relating to exception for

21 certain pre-1985 instruments) is amended by strik22 ing ‘‘A child’’ and all that follows through ‘‘non23 custodial parent’’ and inserting ‘‘A noncustodial par24 ent described in paragraph (1) shall be entitled to
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1 the deduction under section 151 for a taxable year

2 with respect to a child if’’.

3 (f) CONFORMING AMENDMENTS.—

4 (1) Section 1(g)(5)(A) of the Internal Revenue

5 Code of 1986 is amended by inserting ‘‘as in effect

6 on the day before the date of the enactment of the

7 Tax Relief for Working Families Act of 2001’’ after

8 ‘‘152(e)’’.

9 (2) Section 2(b)(1)(A)(i) of such Code is

10 amended by striking ‘‘paragraph (2) or (4) of’’.

11 (3) Section 2(b)(3)(B)(i) of such Code is

12 amended by striking ‘‘paragraph (9)’’ and inserting

13 ‘‘paragraph (2)(G)’’.

14 (4) Section 21(e)(5)(A) of such Code is amend15 ed by striking ‘‘paragraph (2) or (4) of’’.

16 (5) Section 21(e)(5) of such Code is amended

17 in the matter following subclause (B) by inserting

18 ‘‘as in effect on the day before the date of the enact19 ment of the Tax Relief for Working Families Act of

20 2001’’ after ‘‘152(e)(1)’’.

21 (6) Section 32(c)(1)(G) of such Code is amend22 ed by striking ‘‘(3)(D).’’ and inserting ‘‘(1)(C). An

23 individual whose qualifying child or qualifying chil24 dren are not taken into account under subsection (b)

25 solely by reason of paragraph (3)(D) shall be treated
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1 as an eligible individual if such individual otherwise

2 meets the requirements of subparagraph (A)(ii).’’.

3 (7) Section 32(c)(3)(B)(ii) of such Code is

4 amended by striking ‘‘paragraph (2) or (4) of’’.

5 (8) Section 51(i)(1)(C) of such Code is amend6 ed by striking ‘‘152(a)(9)’’ and inserting

7 ‘‘152(a)(2)(G)’’.

8 (9) Section 152(b) of such Code is amended by

9 striking ‘‘specified in subsection (a)’’ and inserting

10 ‘‘specified in subsection (a)(2) or (f)(2)’’.

11 (10) Section 152(c) of such Code is amended by

12 striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’.

13 (11) Section 7703(b)(1) of such Code is amend14 ed by striking ‘‘paragraph (2) or (4) of’’.

15 (12) The following provisions of such Code are

16 each amended by striking ‘‘paragraphs (1) through

17 (8) of section 152(a)’’ and inserting ‘‘subparagraphs

18 (A) through (F) of subsection (a)(2) or subsection

19 (f)(2) of section 152’’:

20 (A) Section 170(g)(3).

21 (B) Subparagraphs (A) and (B) of section

22 51(i)(1).

23 (C) The second sentence of section

24 213(d)(11).

25 (D) Section 529(e)(2)(B).
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1 (E) Section 7702B(f)(2)(C)(iii).

2 (g) EFFECTIVE DATE.—The amendments made by

3 this section shall apply to taxable years beginning after

4 December 31, 2001.

5 SEC. 4105. OTHER MODIFICATIONS TO EARNED INCOME

6 TAX CREDIT.

7 (a) MODIFICATION OF JOINT RETURN REQUIRE8 MENT.—Section 32(d) of the Internal Revenue Code of

9 1986 (relating to married individuals) is amended to read

10 as follows:

11 ‘‘(d) MARRIED INDIVIDUALS.—

12 ‘‘(1) IN GENERAL.—If the taxpayer is married

13 at the close of the taxable year, the credit shall be

14 allowed under subsection (a) only if the taxpayer

15 and his spouse file a joint return for the taxable

16 year.

17 ‘‘(2) MARITAL STATUS.—For purposes of para18 graph (1), an individual legally separated from his

19 spouse under a decree of divorce or of separate

20 maintenance shall not be considered as married.

21 ‘‘(3) CERTAIN MARRIED INDIVIDUALS LIVING

22 APART.—For purposes of paragraph (1), if—

23 ‘‘(A) an individual—

24 ‘‘(i) is married and files a separate re25 turn, and
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1 ‘‘(ii) has a qualifying child who is a

2 son, daughter, stepson, or stepdaughter of

3 such individual, and

4 ‘‘(B) during the last 6 months of such tax5 able year, such individual and such individual’s

6 spouse do not have the same principal place of

7 abode,

8 such individual shall not be considered as married.’’.

9 (b) MODIFICATION OF RULE WHERE THERE ARE 2

10 OR MORE ELIGIBLE INDIVIDUALS.—Subparagraph (C) of

11 section 32(c)(1) of the Internal Revenue Code of 1986 (re12 lating to 2 or more eligible individuals) is amended to read

13 as follows:

14 ‘‘(C) 2 OR MORE ELIGIBLE INDIVIDUALS.—

15 ‘‘(i) IN GENERAL.—Except as pro16 vided in clause (ii), if 2 or more individuals

17 would (but for this subparagraph and after

18 application of subparagraph (B)) be treat19 ed as eligible individuals with respect to

20 the same qualifying child for taxable years

21 beginning in the same calendar year, only

22 the individual with the highest modified

23 adjusted gross income for such taxable

24 years shall be treated as an eligible indi-
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1 vidual with respect to such qualifying

2 child.

3 ‘‘(ii) EXCEPTION FOR CERTAIN PAR4 ENTS.—An otherwise eligible individual

5 who is not treated under clause (i) as the

6 only eligible individual with respect to any

7 qualifying child shall be treated as an eligi8 ble individual with respect to such child

9 if—

10 ‘‘(I) such child is the son, daugh11 ter, stepson, or stepdaughter of such

12 individual,

13 ‘‘(II) such child is not taken into

14 account under subsection (b) by any

15 other individual, and

16 ‘‘(III) the limitation under sub17 section (a)(2) for the individual who

18 would (but for this clause) be treated

19 under clause (i) as the only eligible in20 dividual with respect to such child

21 would be greater than zero (deter22 mined as if such individual had 2

23 qualifying children).’’.

24 (c) EXPANSION OF MATHEMATICAL ERROR AUTHOR25 ITY.—Paragraph (2) of section 6213(g) of the Internal
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1 Revenue Code of 1986 (relating to definitions) is amended

2 by striking ‘‘and’’ at the end of subparagraph (K), by

3 striking the period at the end of subparagraph (L) and

4 inserting ‘‘, and’’, and by inserting after subparagraph (L)

5 the following new subparagraph:

6 ‘‘(M) the entry on the return claiming the

7 credit under section 32 with respect to a child

8 if, according to the Federal Case Registry of

9 Child Support Orders established under section

10 453(h) of the Social Security Act, the taxpayer

11 is a noncustodial parent of such child.’’.

12 (d) EFFECTIVE DATES.—

13 (1) IN GENERAL.—Except as provided in para14 graph (2), the amendments made by this section

15 shall apply to taxable years beginning after Decem16 ber 31, 2000.

17 (2) EXPANSION OF MATHEMATICAL ERROR AU18 THORITY.—The amendment made by subsection (c)

19 shall apply to taxable years beginning after Decem20 ber 31, 2001.
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1 Subtitle C—Marriage Penalty

2 Relief

3 SEC. 4201. MARRIAGE PENALTY RELIEF FOR EARNED IN4 COME CREDIT.

5 (a) IN GENERAL.—Paragraph (2) of section 32(b) of

6 the Internal Revenue Code of 1986 (relating to percent7 ages and amounts) is amended—

8 (1) by striking ‘‘AMOUNTS.—The earned’’ and

9 inserting ‘‘AMOUNTS.—

10 ‘‘(A) IN GENERAL.—Subject to subpara11 graph (B), the earned’’; and

12 (2) by adding at the end the following new sub13 paragraph:

14 ‘‘(B) JOINT RETURNS.—In the case of a

15 joint return, the earned income amount deter16 mined under subparagraph (A) shall be 120

17 percent of the otherwise applicable amount. If

18 any amount determined under the preceding

19 sentence is not a multiple of $10, such amount

20 shall be rounded to the nearest multiple of

21 $10.’’.

22 (b) EFFECTIVE DATE.—The amendments made by

23 this section shall apply to taxable years beginning after

24 December 31, 2001.
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1 Subtitle D—Expanding the

2 Dependent Care Tax Credit

3 SEC. 4301. DEPENDENT CARE TAX CREDIT.

4 (a) DEPENDENT CARE SERVICES.—Subpart C of

5 part IV of subchapter A of chapter 1 of the Internal Rev6 enue Code of 1986 (relating to refundable credits), as

7 amended by section 4001(b)(1), is amended by redesig8 nating section 36 as section 37 and by inserting after sec9 tion 35 the following new section:

10 ‘‘SEC. 36. DEPENDENT CARE SERVICES.

11 ‘‘(a) ALLOWANCE OF CREDIT.—

12 ‘‘(1) IN GENERAL.—In the case of an individual

13 who maintains a household which includes as a

14 member 1 or more qualifying individuals, there shall

15 be allowed as a credit against the tax imposed by

16 this subtitle for the taxable year an amount equal to

17 the applicable percentage of the sum of—

18 ‘‘(A) the employment-related expenses paid

19 by such individual during the taxable year, plus

20 ‘‘(B) the respite care expenses paid by

21 such individual during the taxable year.

22 ‘‘(2) APPLICABLE PERCENTAGE DEFINED.—

23 ‘‘(A) IN GENERAL.—For purposes of para24 graph (1), the term ‘applicable percentage’

25 means 50 percent reduced (but not below 20
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1 percent) by 1 percentage point for each full

2 $1,000 amount by which the taxpayer’s ad3 justed gross income for the taxable year exceeds

4 $15,000.

5 ‘‘(B) COST-OF-LIVING ADJUSTMENT.—

6 ‘‘(i) IN GENERAL.—In the case of a

7 taxable year beginning in a calendar year

8 after 2001, subparagraph (A) shall be ap9 plied by increasing the $15,000 amount

10 contained therein by the cost-of-living ad11 justment (as defined in section 1(f)(3)) for

12 such calendar year determined by sub13 stituting ‘2000’ for ‘1992’ in subparagraph

14 (B) of section 1(f)(3).

15 ‘‘(ii) ROUNDING.—If any increase de16 termined under clause (i) is not a multiple

17 of $10, such increase shall be rounded to

18 the nearest multiple of $10 (or if such in19 crease is a multiple of $5, such increase

20 shall be increased to the next highest mul21 tiple of $10).

22 ‘‘(b) EMPLOYMENT-RELATED EXPENSES.—For pur23 poses of this section—

24 ‘‘(1) DETERMINATION OF ELIGIBLE EX25 PENSES.—
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1 ‘‘(A) IN GENERAL.—The term ‘employ2 ment-related expenses’ means amounts paid for

3 the following expenses, but only if such ex4 penses are incurred to enable the taxpayer to be

5 gainfully employed for any period for which

6 there are 1 or more qualifying individuals with

7 respect to the taxpayer:

8 ‘‘(i) expenses for household services,

9 and

10 ‘‘(ii) expenses for the care of a quali11 fying individual.

12 Such term shall not include any amount paid

13 for services outside the taxpayer’s household at

14 a camp where the qualifying individual stays

15 overnight and shall not include any respite care

16 expense taken into account under subsection

17 (a).

18 ‘‘(B) EXCEPTION.—Employment-related

19 expenses described in subparagraph (A) which

20 are incurred for services outside the taxpayer’s

21 household shall be taken into account only if in22 curred for the care of—

23 ‘‘(i) a qualifying individual described

24 in subsection (d)(1), or
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1 ‘‘(ii) a qualifying individual (not de2 scribed in subsection (d)(1)) who regularly

3 spends at least 8 hours each day in the

4 taxpayer’s household.

5 ‘‘(C) DEPENDENT CARE CENTERS.—Em6 ployment-related expenses described in subpara7 graph (A) which are incurred for services pro8 vided outside the taxpayer’s household by a de9 pendent care center (as defined in subpara10 graph (D)) shall be taken into account only if—

11 ‘‘(i) such center complies with all ap12 plicable laws and regulations of a State or

13 unit of local government, and

14 ‘‘(ii) the requirements of subpara15 graph (B) are met.

16 ‘‘(D) DEPENDENT CARE CENTER DE17 FINED.—For purposes of this paragraph, the

18 term ‘dependent care center’ means any facility

19 which—

20 ‘‘(i) provides care for more than 6 in21 dividuals (other than individuals who re22 side at the facility), and

23 ‘‘(ii) receives a fee, payment, or grant

24 for providing services for any of the indi-
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1 viduals (regardless of whether such facility

2 is operated for profit).

3 ‘‘(2) DOLLAR LIMIT ON AMOUNT CRED4 ITABLE.—

5 ‘‘(A) IN GENERAL.—The amount of the

6 employment-related expenses incurred during

7 any taxable year which may be taken into ac8 count under subsection (a) shall not exceed—

9 ‘‘(i) $2,400 if there is 1 qualifying in10 dividual with respect to the taxpayer for

11 such taxable year, or

12 ‘‘(ii) $4,800 if there are 2 or more

13 qualifying individuals with respect to the

14 taxpayer for such taxable year.

15 The amount determined under clause (i) or (ii)

16 (whichever is applicable) shall be reduced by the

17 aggregate amount excludable from gross income

18 under section 129 for the taxable year.

19 ‘‘(B) REDUCTION IN LIMIT FOR AMOUNT

20 OF RESPITE CARE EXPENSES.—The limitation

21 of subparagraph (A) shall be reduced by the

22 amount of the respite care expenses taken into

23 account by the taxpayer under subsection (a)

24 for the taxable year.

25 ‘‘(3) EARNED INCOME LIMITATION.—
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1 ‘‘(A) IN GENERAL.—Except as otherwise

2 provided in this paragraph, the amount of the

3 employment-related expenses incurred during

4 any taxable year which may be taken into ac5 count under subsection (a) shall not exceed—

6 ‘‘(i) in the case of an individual who

7 is not married at the close of such year,

8 such individual’s earned income for such

9 year, or

10 ‘‘(ii) in the case of an individual who

11 is married at the close of such year, the

12 lesser of such individual’s earned income or

13 the earned income of his spouse for such

14 year.

15 ‘‘(B) SPECIAL RULE FOR SPOUSE WHO IS

16 A STUDENT OR INCAPABLE OF CARING FOR

17 HIMSELF.—In the case of a spouse who is a

18 student or a qualified individual described in

19 subsection (d)(3), for purposes of subparagraph

20 (A), such spouse shall be deemed for each

21 month during which such spouse is a full-time

22 student at an educational institution, or is such

23 a qualifying individual, to be gainfully employed

24 and to have earned income of not less than—
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1 ‘‘(i) $200 if paragraph (2)(A)(i) ap2 plies for the taxable year, or

3 ‘‘(ii) $400 if paragraph (2)(A)(ii) ap4 plies for the taxable year.

5 In the case of any husband and wife, this sub6 paragraph shall apply with respect to only one

7 spouse for any one month.

8 ‘‘(c) RESPITE CARE EXPENSES.—For purposes of

9 this section—

10 ‘‘(1) IN GENERAL.—The term ‘respite care ex11 penses’ means expenses paid (whether or not to en12 able the taxpayer to be gainfully employed) for—

13 ‘‘(A) the care of a qualifying individual—

14 ‘‘(i) who has attained the age of 13,

15 or

16 ‘‘(ii) who is under the age of 13 but

17 has a physical or mental impairment which

18 results in the individual being incapable of

19 caring for himself,

20 during any period when such individual regu21 larly spends at least 8 hours each day in the

22 taxpayer’s household, or

23 ‘‘(B) the care (for not more than 14 days

24 during the calendar year) of a qualifying indi25 vidual described in subparagraph (A) during
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1 any period during which the individual does not

2 regularly spend at least 8 hours each day in the

3 taxpayer’s household.

4 ‘‘(2) DOLLAR LIMIT.—The amount of the res5 pite care expenses incurred during any taxable year

6 which may be taken into account under subsection

7 (a) shall not exceed—

8 ‘‘(A) $1,200 if such expenses are incurred

9 with respect to only 1 qualifying individual for

10 the taxable year, or

11 ‘‘(B) $2,400 if such expenses are incurred

12 for 2 or more qualifying individuals for such

13 taxable year.

14 ‘‘(d) QUALIFYING INDIVIDUAL.—For purposes of this

15 section, the term ‘qualifying individual’ means—

16 ‘‘(1) a dependent of the taxpayer who is under

17 the age of 13 and with respect to whom the taxpayer

18 is entitled to a deduction under section 151(c),

19 ‘‘(2) a dependent of the taxpayer who is phys20 ically or mentally incapable of caring for himself, or

21 ‘‘(3) the spouse of the taxpayer, if he is phys22 ically or mentally incapable of caring for himself.

23 ‘‘(e) SPECIAL RULES.—For purposes of this

24 section—
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1 ‘‘(1) MAINTAINING HOUSEHOLD.—An indi2 vidual shall be treated as maintaining a household

3 for any period only if over half the cost of maintain4 ing the household for such period is furnished by

5 such individual (or, if such individual is married

6 during such period, is furnished by such individual

7 and his spouse).

8 ‘‘(2) MARRIED COUPLES MUST FILE JOINT RE9 TURN.—If the taxpayer is married at the close of

10 the taxable year, the credit shall be allowed under

11 subsection (a) only if the taxpayer and his spouse

12 file a joint return for the taxable year.

13 ‘‘(3) MARITAL STATUS.—An individual legally

14 separated from his spouse under a decree of divorce

15 or of separate maintenance shall not be considered

16 as married.

17 ‘‘(4) CERTAIN MARRIED INDIVIDUALS LIVING

18 APART.—If—

19 ‘‘(A) an individual who is married and who

20 files a separate return—

21 ‘‘(i) maintains as his home a house22 hold that constitutes for more than one23 half of the taxable year the principal place

24 of abode of a qualifying individual, and
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1 ‘‘(ii) furnishes over half the cost of

2 maintaining such household during the

3 taxable year, and

4 ‘‘(B) during the last 6 months of such tax5 able year such individual’s spouse is not a mem6 ber of such household,

7 such individual shall not be considered as married.

8 ‘‘(5) SPECIAL DEPENDENCY TEST IN CASE OF

9 DIVORCED PARENTS, ETC.—If—

10 ‘‘(A) paragraph (2) or (4) of section

11 152(e) applies to any child with respect to any

12 calendar year, and

13 ‘‘(B) such child is under the age of 13 or

14 is physically or mentally incapable of caring for

15 himself,

16 in the case of any taxable year beginning in such

17 calendar year, such child shall be treated as a quali18 fying individual with respect to the custodial parent

19 (within the meaning of section 152(e)(1)), and shall

20 not be treated as a qualifying individual with respect

21 to the noncustodial parent.

22 ‘‘(6) PAYMENTS TO RELATED INDIVIDUALS.—

23 No credit shall be allowed under subsection (a) for

24 any amount paid by the taxpayer to an individual—
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1 ‘‘(A) with respect to whom, for the taxable

2 year, a deduction under section 151(c) (relating

3 to deduction for personal exemptions for de4 pendents) is allowable either to the taxpayer or

5 his spouse, or

6 ‘‘(B) who is a child of the taxpayer (within

7 the meaning of section 151(c)(3)) who has not

8 attained the age of 19 at the close of the tax9 able year.

10 For purposes of this paragraph, the term ‘taxable

11 year’ means the taxable year of the taxpayer in

12 which the service is performed.

13 ‘‘(7) STUDENT.—The term ‘student’ means an

14 individual who during each of 5 calendar months

15 during the taxable year is a full-time student at an

16 educational organization.

17 ‘‘(8) EDUCATIONAL ORGANIZATION.—The term

18 ‘educational organization’ means an educational or19 ganization described in section 170(b)(1)(A)(ii).

20 ‘‘(9) IDENTIFYING INFORMATION REQUIRED

21 WITH RESPECT TO SERVICE PROVIDER.—No credit

22 shall be allowed under subsection (a) for any amount

23 paid to any person unless—
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1 ‘‘(A) the name, address, and taxpayer

2 identification number of such person are in3 cluded on the return claiming the credit, or

4 ‘‘(B) if such person is an organization de5 scribed in section 501(c)(3) and exempt from

6 tax under section 501(a), the name and address

7 of such person are included on the return

8 claiming the credit.

9 In the case of a failure to provide the information

10 required under the preceding sentence, the preceding

11 sentence shall not apply if it is shown that the tax12 payer exercised due diligence in attempting to pro13 vide the information so required.

14 ‘‘(f) REGULATIONS.—The Secretary shall prescribe

15 such regulations as may be necessary to carry out the pur16 poses of this section.’’.

17 (b) CONFORMING AMENDMENTS.—

18 (1) Section 21 of such Code is repealed.

19 (2) Section 23(f)(1) of such Code and section

20 129(a)(2)(C) of such Code are each amended by

21 striking ‘‘section 21(e)’’ and inserting ‘‘section

22 36(e)’’.

23 (3) Section 129(b)(2) of such Code is amended

24 by striking ‘‘section 21(d)(2)’’ and inserting ‘‘section

25 36(b)(3)(B)’’.
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1 (4) Section 129(e)(1) of such Code is amended

2 by striking ‘‘under section 21(b)(2) (relating to ex3 penses for household and dependent care services

4 necessary for gainful employment)’’ and inserting

5 ‘‘or respite care services under section 36 (relating

6 to dependent care services)’’.

7 (5) Section 213(e) of such Code is amended by

8 striking ‘‘section 21’’ and inserting ‘‘section 36’’.

9 (6) Section 6213(g)(2)(H) of such Code is

10 amended by striking ‘‘section 21 (related to expenses

11 for household and dependent care services necessary

12 for gainful employment)’’ and inserting ‘‘section 36

13 (relating to dependent care services)’’.

14 (c) TECHNICAL AMENDMENTS.—(1) The table of sec15 tions for subpart C of part IV of subchapter A of chapter

16 1 of such Code is amended by striking the item relating

17 to section 36 and inserting the following:

‘‘Sec. 36. Dependent care services.

‘‘Sec. 37. Overpayments of tax.’’.

18 (2) The table of sections for subpart A of such part

19 IV is amended by striking the item relating to section 21.

20 (d) EFFECTIVE DATE.—The amendments made by

21 this section shall apply to taxable years beginning after

22 December 31, 2000.
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1 TITLE V—FAIR START—SUPPORT

2 TO PROMOTE WORK AND RE3 DUCE POVERTY

4 Subtitle A—Gateways Grant

5 Program

6 SEC. 5001. GATEWAYS GRANT PROGRAM.

7 (a) PURPOSES.—The purposes of this section are

8 to—

9 (1) inform low-income families with children

10 about programs available to families leaving welfare

11 and other programs to support low-income families

12 with children;

13 (2) provide incentives to States and counties to

14 improve and coordinate application and renewal pro15 cedures for low-income family with children support

16 programs; and

17 (3) track the extent to which low-income fami18 lies with children receive the benefits and services

19 for which they are eligible.

20 (b) DEFINITIONS.—In this section:

21 (1) LOCALITY.—The term locality means a mu22 nicipality that does not administer a temporary as23 sistance for needy families program funded under

24 part A of title IV of the Social Security Act (42
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1 U.S.C. 601 et seq.) (in this section referred to as

2 ‘‘TANF’’).

3 (2) LOW-INCOME FAMILY WITH CHILDREN SUP4 PORT PROGRAM.—The term ‘‘low-income family with

5 children support program’’ means a program de6 signed to provide low-income families with assistance

7 or benefits to enable the family to become self-suffi8 cient and includes—

9 (A) TANF;

10 (B) the food stamp program established

11 under the Food Stamp Act of 1977 (7 U.S.C.

12 2011 et seq.) (in this section referred to as

13 ‘‘food stamps’’);

14 (C) the medicaid program funded under

15 title XIX of the Social Security Act (42 U.S.C.

16 1396 et seq.);

17 (D) the State children’s health insurance

18 program (SCHIP) funded under title XXI of

19 the Social Security Act (42 U.S.C. 1397aa et

20 seq.);

21 (E) the child care program funded under

22 the Child Care Development Block Grant Act of

23 1990 (42 U.S.C. 9858 et seq.);
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1 (F) the child support program funded

2 under part D of title IV of the Social Security

3 Act (42 U.S.C. 651 et seq.);

4 (G) the earned income tax credit under

5 section 32 of the Internal Revenue Code of

6 1986;

7 (H) the low-income home energy assistance

8 program (LIHEAP) established under the Low9 Income Home Energy Assistance Act of 1981

10 (42 U.S.C 8621 et seq.);

11 (I) the special supplemental nutrition pro12 gram for women, infants, and children (WIC)

13 established under section 17 of the Child Nutri14 tion Act of 1966 (42 U.S.C. 1786);

15 (J) programs under the Workforce Invest16 ment Act of 1998 (29 U.S.C. 2801 et seq.); and

17 (K) any other Federal or State funded pro18 gram designed to provide family and work sup19 port to low-income families with children.

20 (3) NONPROFIT.—The term ‘‘nonprofit’’, as ap21 plied to a school, agency, organization, or institution

22 means a school, agency, organization, or institution

23 owned and operated by 1 or more nonprofit corpora24 tions or associations, no part of the net earnings of
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1 which inures, or may lawfully inure, to the benefit

2 of any private shareholder or individual.

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

4 the Secretary of Health and Human Services.

5 (5) STATE.—The term ‘‘State’’ means each of

6 the several States of the United States, the District

7 of Columbia, the Commonwealth of Puerto Rico,

8 American Samoa, Guam, and the United States Vir9 gin Islands.

10 (c) AUTHORIZATION OF GRANTS.—

11 (1) STATES AND COUNTIES.—

12 (A) IN GENERAL.—The Secretary is au13 thorized to award grants to States and counties

14 to pay the Federal share of the costs involved

15 in improving the administration of low-income

16 family with children support programs, includ17 ing simplifying application, recertification, re18 porting, and verification rules.

19 (B) FEDERAL SHARE.—The Federal share

20 shall be 80 percent.

21 (2) NONPROFITS AND LOCALITIES.—The Sec22 retary is authorized to award grants to nonprofits

23 and localities to distribute information about and de24 velop service centers for low-income family with chil25 dren support programs.
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1 (d) GRANT APPROVAL CRITERIA.—

2 (1) IN GENERAL.—The Secretary, in consulta3 tion with the Secretary of Agriculture, shall establish

4 criteria for approval of an application for a grant

5 under this section that include consideration of—

6 (A) an applicant’s record of serving low-in7 come populations;

8 (B) an applicant’s ability to reach hard-to9 serve populations;

10 (C) the level of innovation in the appli11 cant’s grant proposal; and

12 (D) any partnerships between the public

13 and private sector in the applicant’s grant pro14 posal.

15 (2) SEPARATE CRITERIA.—Separate criteria

16 shall be established for the grants authorized under

17 paragraphs (1) and (2) of subsection (c).

18 (e) USES OF FUNDS.—

19 (1) STATES AND COUNTIES.—

20 (A) IMPROVEMENTS IN PROGRAMS.—

21 Grants awarded to States and counties under

22 subsection (c)(1) shall be used to—

23 (i) simplify low-income family with

24 children support program application, re-
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1 certification, reporting, and verification

2 rules;

3 (ii) create uniformity in eligibility cri4 teria for low-income family with children

5 support programs;

6 (iii) develop options for families to

7 apply for low-income family with children

8 support programs through the telephone,

9 mail, facsimile, Internet, or electronic mail,

10 and submit any recertifications or reports

11 required for such families through these

12 options;

13 (iv) co-locate eligibility workers for

14 various low-income family with children

15 support programs at strategically located

16 sites; and

17 (v) develop or enhance one-stop serv18 ice centers for low-income family with chil19 dren support programs, including estab20 lishing evening and weekend hours at these

21 centers.

22 (B) CUSTOMER SURVEYS.—

23 (i) IN GENERAL.—A grant awarded to

24 a State or county under subsection (c)(1)
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1 shall be used to carry out a customer sur2 vey.

3 (ii) MODEL SURVEYS.—The customer

4 survey under clause (i) shall be modeled

5 after a form developed by the Secretary

6 under subsection (g).

7 (iii) REPORTS TO SECRETARY.—Not

8 later than 1 year after a State or county

9 is awarded a grant under subsection (c)(1),

10 and annually thereafter, the State or coun11 ty shall submit a report to the Secretary

12 detailing the results of the customer survey

13 carried out under clause (i).

14 (iv) REPORTS TO PUBLIC.—A State or

15 county receiving a grant under subsection

16 (c)(1) and the Secretary shall make the re17 port required under clause (iii) available to

18 the public.

19 (v) PUBLIC COMMENT.—A State or

20 county receiving a grant under subsection

21 (c)(1) shall accept public comments and

22 hold public hearings on the report made

23 available under clause (iv).

24 (C) TRACKING SYSTEMS.—
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1 (i) IN GENERAL.—A grant awarded to

2 a State or county under subsection (c)(1)

3 shall be used to implement a tracking sys4 tem to determine the level of participation

5 in low-income family with children support

6 programs of the eligible population.

7 (ii) REPORTS.—Not later than 1 year

8 after a State or county is awarded a grant

9 under subsection (c)(1), and annually

10 thereafter, the State or county shall submit

11 a report to the Secretary detailing the ef12 fectiveness of the tracking system imple13 mented under clause (i).

14 (D) REPORTING.—A State or county

15 awarded a grant under subsection (c)(1) shall

16 adopt the most favorable options available

17 under Federal law to reduce or eliminate re18 quirements for low-income families receiving as19 sistance under TANF or food stamps to report

20 changes in income, residence, or employment,

21 including such requirements as they relate to

22 the determination of State expenditures to meet

23 TANF maintenance of effort requirements.
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1 (E) IN-PERSON INTERVIEWS.—A State or

2 county awarded a grant under subsection

3 (c)(1)—

4 (i) may expend funds made available

5 under the grant to provide for reporting

6 and recertification procedures through the

7 telephone, mail, facsimile, Internet, or elec8 tronic mail; and

9 (ii) shall adopt the most favorable op10 tions available under Federal law to reduce

11 or eliminate requirements for in-person

12 interviews for redeterminations of eligi13 bility for TANF or food stamps.

14 (F) SHARING DOCUMENTATION AND

15 VERIFICATION INFORMATION.—A grant award16 ed to a State or county under subsection (c)(1)

17 shall be used to develop procedures by which—

18 (i) a low-income family is relieved of

19 the requirement to present documentation

20 to establish eligibility for various low-in21 come family with children support pro22 grams where information concerning the

23 family’s income exists in State databases

24 and the family is provided adequate oppor-
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1 tunity to review, correct, and contest such

2 information;

3 (ii) a low-income family is given the

4 option to present the same documentation

5 to establish eligibility for various low-in6 come family with children support pro7 grams; and

8 (iii) verification of the documentation

9 presented under clause (ii) is shared

10 among agencies with responsibility for the

11 administration of low-income family with

12 children support programs.

13 (G) JURISDICTION-WIDE IMPLEMENTA14 TION.—

15 (i) IN GENERAL.—A grant awarded to

16 a State or county under subsection (c)(1)

17 shall be used for activities throughout the

18 jurisdiction.

19 (ii) EXCEPTION.—A State or county

20 awarded a grant under subsection (c)(1)

21 may use grant funds to develop one-stop

22 service centers and telephone, mail, fac23 simile, Internet, or electronic mail applica24 tion and renewal procedures for low-income

25 family with children support programs
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1 without regard to the requirements of

2 clause (i).

3 (H) SUPPLEMENT NOT SUPPLANT.—Funds

4 provided to a State or county under a grant

5 awarded under subsection (c)(1) shall be used

6 to supplement and not supplant other State or

7 county public funds expended to provide sup8 port services for low-income families.

9 (2) NONPROFITS AND LOCALITIES.—A grant

10 awarded to a nonprofit or locality under subsection

11 (c)(2) shall be used to—

12 (A) develop one-stop service centers for

13 low-income family with children support pro14 grams in cooperation with States and counties;

15 and

16 (B) provide information about and refer17 rals to low-income family with children support

18 programs through the dissemination of mate19 rials at strategic locations, including schools,

20 clinics, and shopping locations.

21 (f) APPLICATION.—

22 (1) IN GENERAL.—Each applicant desiring a

23 grant under paragraph (1) or (2) of subsection (c)

24 shall submit an application to the Secretary at such
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1 time, in such manner, and accompanied by such in2 formation as the Secretary may reasonably require.

3 (2) STATES AND COUNTIES.—

4 (A) NON-FEDERAL SHARE.—Each State or

5 county applicant shall provide assurances that

6 the applicant will pay the non-Federal share of

7 the activities for which a grant is sought.

8 (B) CERTIFICATION PERIODS.—

9 (i) IN GENERAL.—In order to receive

10 a grant under subsection (c)(1), each State

11 or county applicant shall provide assur12 ances that the applicant will establish cer13 tification periods of at least 1 year for

14 TANF and food stamps.

15 (ii) EXCEPTION.—The certification

16 period under clause (i) may be extended to

17 2 years for households in which all mem18 bers of the household are elderly or dis19 abled.

20 (C) PARTNERSHIPS.—Each State or coun21 ty applicant shall submit a memorandum of un22 derstanding demonstrating that the applicant

23 has entered into a partnership to coordinate its

24 efforts under the grant with the efforts of other

25 State and county agencies that have responsi-
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1 bility for providing low-income families with as2 sistance or benefits.

3 (g) DUTIES OF THE SECRETARY.—

4 (1) SURVEY FORM.—The Secretary, in coopera5 tion with other relevant agencies, shall develop a

6 customer survey form to determine whether low-in7 come families—

8 (A) encounter any impediments in applying

9 for or renewing their participation in low-in10 come family with children support programs;

11 and

12 (B) are unaware of low-income family with

13 children support programs for which they are

14 eligible.

15 (2) REPORTS.—

16 (A) ANNUAL REPORTS.—Not later than 1

17 year after the date of enactment of this Act,

18 and annually thereafter, the Secretary shall

19 submit a report to Congress describing the uses

20 of grant funds awarded under this section.

21 (B) RESULTS OF TRACKING SYSTEMS AND

22 SURVEYS.—The Secretary shall submit a report

23 to Congress detailing the results of the tracking

24 systems implemented and customer surveys car25 ried out by States and counties under sub-
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1 section (e) as the information becomes avail2 able.

3 (h) MISCELLANEOUS.—

4 (1) MATCHING FUNDS.—

5 (A) IN GENERAL.—Matching funds re6 quired from a State or county awarded a grant

7 under subsection (c)(1) may—

8 (i) include in-kind services and ex9 penditures by municipalities and private

10 entities; and

11 (ii) be considered a qualified State ex12 penditure for purposes of determining

13 whether the State has satisfied the mainte14 nance of effort requirements of the tem15 porary assistance for needy families pro16 gram under section 409(a)(7) of the Social

17 Security Act (42 U.S.C. 609(a)(7)).

18 (B) CONFORMING AMENDMENT.—Section

19 409(a)(7)(B)(iv) of the Social Security Act (42

20 U.S.C. 609(a)(7)(B)(iv)) is amended by striking

21 ‘‘title.’’ and inserting ‘‘title, and also includes

22 State funds which are expended as a condition

23 of receiving Federal funds under a grant made

24 under section 5001 of the Leave No Child Be25 hind Act.’’.
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1 (2) LIMITATION ON EXPENDITURES.—

2 (A) IN GENERAL.—Subject to paragraph

3 3—

4 (i) not more than 20 percent of a

5 grant awarded under subsection (c) shall

6 be expended on customer surveys or track7 ing systems; and

8 (ii) except as provided in subpara9 graph (B), not more than 15 percent of a

10 grant awarded under subsection (c) shall

11 be expended on administrative costs.

12 (B) AUTOMATION EXCEPTION.—The limi13 tation on administrative expenditures under

14 subparagraph (A)(ii) shall not apply to expendi15 tures for the acquisition, implementation, or

16 maintenance of information technology, comput17 erization, or other automated data processing to

18 accomplish the purposes of a grant awarded

19 under subsection (c).

20 (3) REVERSION OF FUNDS.—Any funds not ex21 pended by a grantee within 2 years after awarded a

22 grant shall be available for redistribution among

23 other grantees in such manner and amount as the

24 Secretary may determine, unless the Secretary ex-
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1 tends by regulation the 2-year time period to expend

2 funds.

3 (4) NONAPPORTIONMENT.—Notwithstanding

4 any other provision of law, a State, county, locality,

5 or nonprofit awarded a grant under subsection (c) is

6 not required to apportion the costs of providing in7 formation about low-income family with children

8 support programs among all low-income family with

9 children support programs.

10 (5) ADMINISTRATIVE COSTS OF THE SEC11 RETARY.—Not more than 5 percent of the funds ap12 propriated to carry out this section shall be ex13 pended on administrative costs of the Secretary.

14 (i) AUTHORIZATION OF APPROPRIATIONS.—There is

15 authorized to be appropriated to carry out this section

16 $500,000,000 for the period of fiscal years 2002 through

17 2006.

18 Subtitle B—Support From Both

19 Parents

20 CHAPTER 1—CHILD SUPPORT

21 DISTRIBUTION

22 SEC. 5101. SHORT TITLE.

23 This subtitle may be cited as the ‘‘Child Support Dis24 tribution Act of 2001’’.
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1 Subchapter A—Distribution of Child Support

2 SEC. 5111. DISTRIBUTION OF CHILD SUPPORT COLLECTED

3 BY STATES ON BEHALF OF CHILDREN RE4 CEIVING CERTAIN WELFARE BENEFITS.

5 (a) MODIFICATION OF RULE REQUIRING ASSIGN6 MENT OF SUPPORT RIGHTS AS A CONDITION OF RECEIV7 ING TANF.—Section 408(a)(3) of the Social Security Act

8 (42 U.S.C. 608(a)(3)) is amended to read as follows:

9 ‘‘(3) NO ASSISTANCE FOR FAMILIES NOT AS10 SIGNING CERTAIN SUPPORT RIGHTS TO THE

11 STATE.—A State to which a grant is made under

12 section 403 shall require, as a condition of providing

13 assistance to a family under the State program

14 funded under this part, that a member of the family

15 assign to the State any rights the family member

16 may have (on behalf of the family member or of any

17 other person for whom the family member has ap18 plied for or is receiving such assistance) to support

19 from any other person, not exceeding the total

20 amount of assistance so provided to the family,

21 which accrues during the period that the family re22 ceives assistance under the program.’’.

23 (b) INCREASING CHILD SUPPORT PAYMENTS TO

24 FAMILIES AND SIMPLIFYING CHILD SUPPORT DISTRIBU25 TION RULES.—
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1 (1) DISTRIBUTION RULES.—

2 (A) IN GENERAL.—Section 457(a) of such

3 Act (42 U.S.C. 657(a)) is amended to read as

4 follows:

5 ‘‘(a) IN GENERAL.—Subject to subsections (e) and

6 (f), the amounts collected on behalf of a family as support

7 by a State pursuant to a plan approved under this part

8 shall be distributed as follows:

9 ‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the

10 case of a family receiving assistance from the State,

11 the State shall—

12 ‘‘(A) pay to the Federal Government the

13 Federal share of the amount collected, subject

14 to paragraph (3)(A);

15 ‘‘(B) retain, or pay to the family, the State

16 share of the amount collected, subject to para17 graph (3)(B); and

18 ‘‘(C) pay to the family any remaining

19 amount.

20 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS21 SISTANCE.—In the case of a family that formerly re22 ceived assistance from the State:

23 ‘‘(A) CURRENT SUPPORT.—To the extent

24 that the amount collected does not exceed the
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1 current support amount, the State shall pay the

2 amount to the family.

3 ‘‘(B) ARREARAGES.—To the extent that

4 the amount collected exceeds the current sup5 port amount, the State—

6 ‘‘(i) shall first pay to the family the

7 excess amount, to the extent necessary to

8 satisfy support arrearages not assigned

9 pursuant to section 408(a)(3);

10 ‘‘(ii) if the amount collected exceeds

11 the amount required to be paid to the fam12 ily under clause (i), shall—

13 ‘‘(I) pay to the Federal Govern14 ment, the Federal share of the excess

15 amount described in this clause, sub16 ject to paragraph (3)(A); and

17 ‘‘(II) retain, or pay to the family,

18 the State share of the excess amount

19 described in this clause, subject to

20 paragraph (3)(B); and

21 ‘‘(iii) shall pay to the family any re22 maining amount.

23 ‘‘(3) LIMITATIONS.—

24 ‘‘(A) FEDERAL REIMBURSEMENTS.—The

25 total of the amounts paid by the State to the
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1 Federal Government under paragraphs (1) and

2 (2) of this subsection with respect to a family

3 shall not exceed the Federal share of the

4 amount assigned with respect to the family pur5 suant to section 408(a)(3).

6 ‘‘(B) STATE REIMBURSEMENTS.—The

7 total of the amounts retained by the State

8 under paragraphs (1) and (2) of this subsection

9 with respect to a family shall not exceed the

10 State share of the amount assigned with respect

11 to the family pursuant to section 408(a)(3).

12 ‘‘(4) FAMILIES THAT NEVER RECEIVED ASSIST13 ANCE.—In the case of any other family, the State

14 shall pay the amount collected to the family.

15 ‘‘(5) FAMILIES UNDER CERTAIN AGREE16 MENTS.—Notwithstanding paragraphs (1) through

17 (4), in the case of an amount collected for a family

18 in accordance with a cooperative agreement under

19 section 454(33), the State shall distribute the

20 amount collected pursuant to the terms of the agree21 ment.

22 ‘‘(6) STATE FINANCING OPTIONS.—To the ex23 tent that the State share of the amount payable to

24 a family for a month pursuant to paragraph (2)(B)

25 of this subsection exceeds the amount that the State
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1 estimates (under procedures approved by the Sec2 retary) would have been payable to the family for

3 the month pursuant to former section 457(a)(2) (as

4 in effect for the State immediately before the date

5 this subsection first applies to the State) if such

6 former section had remained in effect, the State may

7 elect to use the grant made to the State under sec8 tion 403(a) to pay the amount, or to have the pay9 ment considered a qualified State expenditure for

10 purposes of section 409(a)(7), but not both.

11 ‘‘(7) STATE OPTION TO PASS THROUGH ADDI12 TIONAL SUPPORT WITH FEDERAL FINANCIAL PAR13 TICIPATION.—

14 ‘‘(A) IN GENERAL.—Notwithstanding

15 paragraphs (1) and (2), a State shall not be re16 quired to pay to the Federal Government the

17 Federal share of an amount collected on behalf

18 of a family that is not a recipient of assistance

19 under the State program funded under part A,

20 to the extent that the State pays the amount to

21 the family.

22 ‘‘(B) RECIPIENTS OF TANF FOR LESS

23 THAN 5 YEARS.—

24 ‘‘(i) IN GENERAL.—Notwithstanding

25 paragraphs (1) and (2), a State shall not
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1 be required to pay to the Federal Govern2 ment the Federal share of an amount col3 lected on behalf of a family that is a recipi4 ent of assistance under the State program

5 funded under part A and that has received

6 the assistance for not more than 5 years

7 after the date of enactment of this para8 graph, to the extent that—

9 ‘‘(I) the State pays the amount

10 to the family; and

11 ‘‘(II) subject to clause (ii), the

12 amount is disregarded in determining

13 the amount and type of the assistance

14 provided to the family.

15 ‘‘(ii) LIMITATION.—Of the amount

16 disregarded as described in clause (i)(II),

17 the maximum amount that may be taken

18 into account for purposes of clause (i) shall

19 not exceed $400 per month, except that, in

20 the case of a family that includes 2 or

21 more children, the State may elect to in22 crease the maximum amount to not more

23 than $600 per month.’’.

24 (B) APPROVAL OF ESTIMATION PROCE25 DURES.—Not later than October 1, 2001, the
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1 Secretary of Health and Human Services, in

2 consultation with the States (as defined for

3 purposes of part D of title IV of the Social Se4 curity Act), shall establish the procedures to be

5 used to make the estimate described in section

6 457(a)(6) of such Act.

7 (2) CURRENT SUPPORT AMOUNT DEFINED.—

8 Section 457(c) of such Act (42 U.S.C. 657(c)) is

9 amended by adding at the end the following:

10 ‘‘(5) CURRENT SUPPORT AMOUNT.—The term

11 ‘current support amount’ means, with respect to

12 amounts collected as support on behalf of a family,

13 the amount designated as the monthly support obli14 gation of the noncustodial parent in the order re15 quiring the support.’’.

16 (c) BA N ON RECOVERY OF MEDICAID COSTS FOR

17 CERTAIN BIRTHS.—Section 454 of such Act (42 U.S.C.

18 654) is amended—

19 (1) by striking ‘‘and’’ at the end of paragraph

20 (32);

21 (2) by striking the period at the end of para22 graph (33) and inserting ‘‘; and’’; and

23 (3) by inserting after paragraph (33) the fol24 lowing:
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1 ‘‘(34) provide that the State shall not use the

2 State program operated under this part to collect

3 any amount owed to the State by reason of costs in4 curred under the State plan approved under title

5 XIX for the birth of a child for whom support rights

6 have been assigned pursuant to section 408(a)(3),

7 471(a)(17), or 1912.’’.

8 (d) STATE OPTION TO DISCONTINUE CERTAIN SUP9 PORT ASSIGNMENTS.—Section 457(b) of such Act (42

10 U.S.C. 657(b)) is amended by striking ‘‘shall’’ and insert11 ing ‘‘may’’.

12 (e) CONFORMING AMENDMENTS.—

13 (1) Section 409(a)(7)(B)(i)(I)(aa) of such Act

14 (42 U.S.C. 609(a)(7)(B)(i)(I)(aa)) is amended by

15 striking ‘‘457(a)(1)(B)’’ and inserting ‘‘457(a)(1)’’.

16 (2) Section 404(a) of such Act (42 U.S.C.

17 604(a)) is amended—

18 (A) by striking ‘‘or’’ at the end of para19 graph (1);

20 (B) by striking the period at the end of

21 paragraph (2) and inserting ‘‘; or’’; and

22 (C) by adding at the end the following:

23 ‘‘(3) to fund payment of an amount pursuant to

24 clause (i) or (ii) of section 457(a)(2)(B), but only to

25 the extent that the State properly elects under sec-
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1 tion 457(a)(6) to use the grant to fund the pay2 ment.’’.

3 (3) Section 409(a)(7)(B)(i) of such Act (42

4 U.S.C. 609(a)(7)(B)(i)) is amended by adding at the

5 end the following:

6 ‘‘(V) PORTIONS OF CERTAIN

7 CHILD SUPPORT PAYMENTS COL8 LECTED ON BEHALF OF AND DISTRIB9 UTED TO FAMILIES NO LONGER RE10 CEIVING ASSISTANCE.—Any amount

11 paid by a State pursuant to clause (i)

12 or (ii) of section 457(a)(2)(B), but

13 only to the extent that the State prop14 erly elects under section 457(a)(6) to

15 have the payment considered a quali16 fied State expenditure.’’.

17 (f) EFFECTIVE DATE.—

18 (1) IN GENERAL.—The amendments made by

19 this section shall take effect on October 1, 2006,

20 and shall apply to payments under parts A and D

21 of title IV of the Social Security Act for calendar

22 quarters beginning on or after such date, and with23 out regard to whether regulations to implement such

24 amendments (in the case of State programs operated

25 under such part D) are promulgated by such date.
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1 (2) STATE OPTION TO ACCELERATE EFFECTIVE

2 DATE.—In addition, a State may elect to have the

3 amendments made by this section apply to the State

4 and to amounts collected by the State, on and after

5 such date as the State may select that is after the

6 date of enactment of this Act and before October 1,

7 2006.

8 Subchapter B—Review and Adjustment of

9 Child Support Orders

10 SEC. 5116. MANDATORY REVIEW AND MODIFICATION OF

11 CHILD SUPPORT ORDERS FOR TANF RECIPI12 ENTS.

13 (a) REVIEW EVERY 3 YEARS.—Section

14 466(a)(10)(A)(i) of the Social Security Act (42 U.S.C.

15 666(a)(10)(A)(i)) is amended in the matter preceding sub16 clause (I)—

17 (1) by striking ‘‘or,’’ and inserting ‘‘or’’; and

18 (2) by striking ‘‘upon the request of the State

19 agency under the State plan or of either parent,’’.

20 (b) REVIEW UPON LEAVING TANF.—

21 (1) NOTICE OF CERTAIN FAMILIES LEAVING

22 TANF.—Section 402(a) of such Act (42 U.S.C.

23 602(a)) is amended by adding at the end the fol24 lowing:
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1 ‘‘(8) CERTIFICATION THAT THE CHILD SUP2 PORT ENFORCEMENT PROGRAM WILL BE PROVIDED

3 NOTICE OF CERTAIN FAMILIES LEAVING TANF PRO4 GRAM.—A certification by the chief executive officer

5 of the State that the State has established proce6 dures to ensure that the State agency administering

7 the child support enforcement program under the

8 State plan approved under part D will be provided

9 notice of the impending discontinuation of assistance

10 to an individual under the State program funded

11 under this part if the individual has custody of a

12 child whose other parent is alive and not living at

13 home with the child.’’.

14 (2) REVIEW.—Section 466(a)(10) of such Act

15 (42 U.S.C. 666(a)(10)) is amended—

16 (A) in the paragraph heading, by striking

17 ‘‘UPON REQUEST’’;

18 (B) in subparagraph (C), by striking ‘‘this

19 paragraph’’ and inserting ‘‘subparagraph (A) or

20 (B)’’; and

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

22 ‘‘(D) REVIEW UPON LEAVING TANF.—On

23 receipt of a notice issued pursuant to section

24 402(a)(8), the State child support enforcement

25 agency shall—
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1 ‘‘(i) examine the case file involved;

2 ‘‘(ii) determine what actions (if any)

3 are needed to locate any noncustodial par4 ent, establish paternity or a support order,

5 or enforce a support order in the case;

6 ‘‘(iii) immediately take the actions;

7 and

8 ‘‘(iv) if there is a support order in the

9 case which the State has not reviewed dur10 ing the 1-year period ending with receipt

11 of the notice, notwithstanding subpara12 graph (B), review and, if appropriate, ad13 just the order in accordance with subpara14 graph (A).’’.

15 Subchapter C—Demonstrations of Expanded

16 Information and Enforcement

17 SEC. 5121. GUIDELINES FOR INVOLVEMENT OF PUBLIC

18 NON-IV–D CHILD SUPPORT ENFORCEMENT

19 AGENCIES IN CHILD SUPPORT ENFORCE20 MENT.

21 (a) IN GENERAL.—Not later than October 1, 2002,

22 the Secretary, in consultation with States, local govern23 ments, and individuals or companies knowledgeable about

24 involving public non-IV–D child support enforcement

25 agencies in child support enforcement, shall develop rec-
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1 ommendations which address the participation of public

2 non-IV–D child support enforcement agencies in the es3 tablishment and enforcement of child support obligations.

4 The matters addressed by the recommendations shall in5 clude substantive and procedural rules which should be

6 followed with respect to privacy safeguards, data security,

7 due process rights, administrative compatibility with Fed8 eral and State automated systems, eligibility requirements

9 (such as registration, licensing, and posting of bonds) for

10 access to information and use of enforcement mechanisms,

11 recovery of costs by charging fees, penalties for violations

12 of the rules, treatment of collections for purposes of sec13 tion 458 of such Act, and avoidance of duplication of ef14 fort.

15 (b) DEFINITIONS.—In this title:

16 (1) CHILD SUPPORT.—The term ‘‘child sup17 port’’ has the meaning given in section 459(i)(2) of

18 the Social Security Act.

19 (2) PUBLIC NON-IV–D CHILD SUPPORT EN20 FORCEMENT AGENCY.—The term ‘‘public non-IV–D

21 child support enforcement agency’’ means an agency,

22 of a political subdivision of a State, which is prin23 cipally responsible for the operation of a child sup24 port registry or for the establishment or enforcement

25 of an obligation to pay child support other than pur-
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1 suant to the State plan approved under part D of

2 title IV of such Act, or a clerk of court office of a

3 political subdivision of a State.

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

5 the Secretary of Health and Human Services.

6 (4) STATE.—The term ‘‘State’’ shall have the

7 meaning given in section 1101(a)(1) of the Social

8 Security Act for purposes of part D of title IV of

9 such Act.

10 SEC. 5122. DEMONSTRATIONS INVOLVING ESTABLISHMENT

11 AND ENFORCEMENT OF CHILD SUPPORT OB12 LIGATIONS BY PUBLIC NON-IV–D CHILD SUP13 PORT ENFORCEMENT AGENCIES.

14 (a) PURPOSE.—The purpose of this section is to de15 termine the extent to which public non-IV–D child support

16 enforcement agencies may contribute effectively to the es17 tablishment and enforcement of child support obligations.

18 (b) APPLICATIONS.—

19 (1) CONSIDERATION.—The Secretary shall con20 sider all applications received from States desiring to

21 conduct demonstration projects under this section.

22 (2) PREFERENCES.—In considering which ap23 plications to approve under this section, the Sec24 retary shall give preference to applications submitted
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1 by States that had a public non-IV–D child support

2 enforcement agency as of January 1, 2001.

3 (3) APPROVAL.—

4 (A) TIMING; LIMITATION ON NUMBER OF

5 PROJECTS.—On July 1, 2003, the Secretary

6 may approve not more than 10 applications for

7 projects providing for the participation of a

8 public non-IV–D child support enforcement

9 agency in the establishment and enforcement of

10 child support obligations, and, if the Secretary

11 receives at least 5 such applications that meet

12 such requirements as the Secretary may estab13 lish, shall approve not less than 5 such applica14 tions.

15 (B) REQUIREMENTS.—The Secretary may

16 not approve an application for a project

17 unless—

18 (i) the applicant and the Secretary

19 have entered into a written agreement

20 which addresses at a minimum, privacy

21 safeguards, data security, due process

22 rights, automated systems, liability, over23 sight, and fees, and the applicant has

24 made a commitment to conduct the project

25 in accordance with the written agreement
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1 and such other requirements as the Sec2 retary may establish;

3 (ii) the project includes a research

4 plan (but such plan shall not be required

5 to use random assignment) that is focused

6 on assessing the costs and benefits of the

7 project; and

8 (iii) the project appears likely to con9 tribute significantly to the achievement of

10 the purpose of this title.

11 (c) DEMONSTRATION AUTHORITY.—On approval of

12 an application submitted by a State under this section—

13 (1) the State agency responsible for admin14 istering the State plan under part D of title IV of

15 the Social Security Act may, subject to the privacy

16 safeguards of section 454(26) of such Act, provide

17 to any public non-IV–D child support enforcement

18 agency participating in the demonstration project all

19 information in the State Directory of New Hires and

20 any information obtained through information com21 parisons under section 453(j)(3) of such Act about

22 an individual with respect to whom the public non23 IV–D agency is seeking to establish or enforce a

24 child support obligation, if the public non-IV–D

25 agency meets such requirements as the State may
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1 establish and has entered into an agreement with

2 the State under which the public non-IV–D agency

3 has made a binding commitment to carry out estab4 lishment and enforcement activities with respect to

5 the child support obligation subject to the same data

6 security, privacy protection, and due process require7 ments applicable to the State agency and in accord8 ance with procedures approved by the head of the

9 State agency;

10 (2) the State agency may charge and collect

11 fees from any such public non-IV–D agency to re12 cover costs incurred by the State agency in providing

13 information and services to the public non-IV–D

14 agency under the demonstration project;

15 (3) if a public non-IV–D child support enforce16 ment agency has agreed to collect past-due support

17 (as defined in section 464(c) of such Act) owed by

18 a named individual, and the State agency has sub19 mitted a notice to the Secretary of the Treasury

20 pursuant to section 464 of such Act on behalf of the

21 public non-IV–D agency, then the Secretary of the

22 Treasury shall consider the State agency to have

23 agreed to collect such support for purposes of such

24 section 464, and the State agency may collect from

25 the public non-IV–D agency any fee which the State
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1 is required to pay for the cost of applying the offset

2 procedure in the case;

3 (4) for so long as a public non-IV–D child sup4 port enforcement agency is participating in the dem5 onstration project, the public non-IV–D agency shall

6 be considered part of the State agency for purposes

7 of section 469A of such Act; and

8 (5) for so long as a public non-IV–D child sup9 port enforcement agency is participating in the dem10 onstration project, the public non-IV–D agency shall

11 be considered part of the State agency for purposes

12 of section 303(e) of such Act but only with respect

13 to any child support obligation that the public non14 IV–D agency has agreed to collect.

15 (d) WAIVER AUTHORITY.—The Secretary may waive

16 or vary the applicability of any provision of sections

17 303(e), 454(31), 464, 466(a)(7), 466(a)(17), and 469A

18 of the Social Security Act to the extent necessary to enable

19 the conduct of demonstration projects under this section,

20 subject to the preservation of the data security, privacy

21 protection, and due process requirements of part D of title

22 IV of such Act.

23 (e) FEDERAL AUDIT.—

24 (1) IN GENERAL.—The Comptroller General of

25 the United States shall conduct an audit of the dem-
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1 onstration projects conducted under this section for

2 the purpose of examining and evaluating the manner

3 in which information and enforcement tools are used

4 by the public non-IV–D child support enforcement

5 agencies participating in the projects.

6 (2) REPORT TO CONGRESS.—

7 (A) IN GENERAL.—The Comptroller Gen8 eral of the United States shall submit to Con9 gress a report on the audit required by para10 graph (1).

11 (B) TIMING.—The report required by sub12 paragraph (A) shall be so submitted not later

13 than October 1, 2005.

14 (f) SECRETARIAL REPORT TO CONGRESS.—

15 (1) IN GENERAL.—The Secretary shall submit

16 to Congress a report on the demonstration projects

17 conducted under this section, which shall include the

18 results of any research or evaluation conducted pur19 suant to this title, and shall include policy rec20 ommendations regarding the establishment and en21 forcement of child support obligations by the agen22 cies involved.

23 (2) TIMING.—The report required by paragraph

24 (1) shall be so submitted not later than October 1,

25 2006.
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1 SEC. 5123. GAO REPORT TO CONGRESS ON PRIVATE CHILD

2 SUPPORT ENFORCEMENT AGENCIES.

3 (a) IN GENERAL.—Not later than October 1, 2002,

4 the Comptroller General of the United States shall submit

5 to Congress a report on the activities of private child sup6 port enforcement agencies that shall be designed to help

7 Congress determine whether the agencies are providing a

8 needed service in a fair manner using accepted debt collec9 tion practices and at a reasonable fee.

10 (b) MATTERS TO BE ADDRESSED.—Among the mat11 ters addressed by the report required by subsection (a)

12 shall be the following:

13 (1) The number of private child support en14 forcement agencies.

15 (2) The types of debt collection activities con16 ducted by the private agencies.

17 (3) The fees charged by the private agencies.

18 (4) The methods used by the private agencies

19 to collect fees from custodial parents.

20 (5) The nature and degree of cooperation the

21 private agencies receive from State agencies respon22 sible for administering State plans under part D of

23 title IV of the Social Security Act.

24 (6) The extent to which the conduct of the pri25 vate agencies is subject to Federal or State regula-
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1 tion, and if so, the extent to which the regulations

2 are effectively enforced.

3 (7) The amount of child support owed but un4 collected and changes in this amount in recent years.

5 (8) The average period of time required for the

6 completion of successful enforcement actions yielding

7 collections of past-due child support by both the

8 child support enforcement programs operated pursu9 ant to State plans approved under part D of title IV

10 of the Social Security Act and, to the extent known,

11 by private child support enforcement agencies.

12 (9) The types of Federal and State child sup13 port enforcement remedies and resources currently

14 available to private child support enforcement agen15 cies, and the types of such remedies and resources

16 now restricted to use by State agencies admin17 istering State plans referred to in paragraph (8).

18 (c) PRIVATE CHILD SUPPORT ENFORCEMENT AGEN19 CY DEFINED.—In this section, the term ‘‘private child

20 support enforcement agency’’ means a person or any other

21 nonpublic entity which seeks to establish or enforce an ob22 ligation to pay child support (as defined in section

23 459(i)(2) of the Social Security Act).
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1 SEC. 5124. EFFECTIVE DATE.

2 This title shall take effect on the date of enactment

3 of this Act.

4 Subchapter D—Expanded Enforcement

5 SEC. 5126. DECREASE IN AMOUNT OF CHILD SUPPORT AR6 REARAGE TRIGGERING PASSPORT DENIAL.

7 Section 452(k) of the Social Security Act (42 U.S.C.

8 652(k)) is amended by striking ‘‘$5,000’’ and inserting

9 ‘‘$2,500’’.

10 SEC. 5127. USE OF TAX REFUND INTERCEPT PROGRAM TO

11 COLLECT PAST-DUE CHILD SUPPORT ON BE12 HALF OF CHILDREN WHO ARE NOT MINORS.

13 Section 464 of the Social Security Act (42 U.S.C.

14 664) is amended—

15 (1) in subsection (a)(2)(A), by striking ‘‘(as

16 that term is defined for purposes of this paragraph

17 under subsection (c))’’; and

18 (2) in subsection (c)—

19 (A) in paragraph (1)—

20 (i) by striking ‘‘(1) Except as pro21 vided in paragraph (2), as used in’’ and in22 serting ‘‘In’’; and

23 (ii) by inserting ‘‘(whether or not a

24 minor)’’ after ‘‘a child’’ each place it ap25 pears; and

26 (B) by striking paragraphs (2) and (3).
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1 SEC. 5128. GARNISHMENT OF COMPENSATION PAID TO VET2 ERANS FOR SERVICE-CONNECTED DISABIL3 ITIES IN ORDER TO ENFORCE CHILD SUP4 PORT OBLIGATIONS.

5 Section 459(h) of the Social Security Act (42 U.S.C.

6 659(h)) is amended—

7 (1) in paragraph (1)(A)(ii)(V), by striking all

8 that follows ‘‘Armed Forces’’ and inserting a semi9 colon; and

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

11 ‘‘(3) LIMITATIONS WITH RESPECT TO COM12 PENSATION PAID TO VETERANS FOR SERVICE-CON13 NECTED DISABILITIES.—Notwithstanding any other

14 provision of this section:

15 ‘‘(A) Compensation described in paragraph

16 (1)(A)(ii)(V) shall not be subject to withholding

17 pursuant to this section—

18 ‘‘(i) for payment of alimony; or

19 ‘‘(ii) for payment of child support if

20 the individual is fewer than 60 days in ar21 rears in payment of the support.

22 ‘‘(B) Not more than 50 percent of any

23 payment of compensation described in para24 graph (1)(A)(ii)(V) may be withheld pursuant

25 to this section.’’.
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1 Subchapter E—Miscellaneous

2 SEC. 5131. REPORT ON UNDISTRIBUTED CHILD SUPPORT

3 PAYMENTS.

4 Not later than 6 months after the date of enactment

5 of this Act, the Secretary of Health and Human Services

6 shall submit to the Committee on Ways and Means of the

7 House of Representatives and the Committee on Finance

8 of the Senate a report on the procedures that the States

9 use generally to locate custodial parents for whom child

10 support has been collected but not yet distributed due to

11 a change in address. The report shall include an estimate

12 of the total amount of such undistributed child support

13 and the average length of time it takes for such child sup14 port to be distributed. The Secretary shall include in the

15 report recommendations as to whether additional proce16 dures should be established at the Federal or State level

17 to expedite the payment of undistributed child support.

18 SEC. 5132. USE OF NEW HIRE INFORMATION TO ASSIST IN

19 ADMINISTRATION OF UNEMPLOYMENT COM20 PENSATION PROGRAMS.

21 (a) IN GENERAL.—Section 453(j) of the Social Secu22 rity Act (42 U.S.C. 653(j)) is amended by adding at the

23 end the following:
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1 ‘‘(7) INFORMATION COMPARISONS AND DISCLO2 SURE TO ASSIST IN ADMINISTRATION OF UNEMPLOY3 MENT COMPENSATION PROGRAMS.—

4 ‘‘(A) IN GENERAL.—If a State agency re5 sponsible for the administration of an unem6 ployment compensation program under Federal

7 or State law transmits to the Secretary the

8 name and social security account number of an

9 individual, the Secretary shall, if the informa10 tion in the National Directory of New Hires in11 dicates that the individual may be employed,

12 disclose to the State agency the name, address,

13 and employer identification number of any pu14 tative employer of the individual, subject to this

15 paragraph.

16 ‘‘(B) CONDITION ON DISCLOSURE.—The

17 Secretary shall make a disclosure under sub18 paragraph (A) only to the extent that the Sec19 retary determines that the disclosure would not

20 interfere with the effective operation of the pro21 gram under this part.

22 ‘‘(C) USE OF INFORMATION.—A State

23 agency may use information provided under this

24 paragraph only for purposes of administering a

25 program referred to in subparagraph (A).’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall take effect on October 1, 2001.

3 SEC. 5133. IMMIGRATION PROVISIONS.

4 (a) NONIMMIGRANT ALIENS INELIGIBLE TO RE5 CEIVE VISAS AND EXCLUDED FROM ADMISSION FOR

6 NONPAYMENT OF CHILD SUPPORT.—

7 (1) IN GENERAL.—Section 212(a)(10) of the

8 Immigration and Nationality Act (8 U.S.C.

9 1182(a)(10)) is amended by adding at the end the

10 following:

11 ‘‘(F) NONPAYMENT OF CHILD SUPPORT.—

12 ‘‘(i) IN GENERAL.—Any non13 immigrant alien is inadmissible who is le14 gally obligated under a judgment, decree,

15 or order to pay child support (as defined in

16 section 459(i) of the Social Security Act),

17 and whose failure to pay such child sup18 port has resulted in an arrearage exceeding

19 $2,500, until child support payments

20 under the judgment, decree, or order are

21 satisfied or the nonimmigrant alien is in

22 compliance with an approved payment

23 agreement.

24 ‘‘(ii) WAIVER AUTHORIZED.—The At25 torney General may waive the application
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1 of clause (i) in the case of an alien, if the

2 Attorney General—

3 ‘‘(I) has received a request for

4 the waiver from the court or adminis5 trative agency having jurisdiction over

6 the judgment, decree, or order obli7 gating the alien to pay child support

8 that is referred to in such clause; or

9 ‘‘(II) determines that there are

10 prevailing humanitarian or public in11 terest concerns.’’.

12 (2) EFFECTIVE DATE.—The amendment made

13 by this subsection shall take effect 180 days after

14 the date of enactment of this Act.

15 (b) AUTHORIZATION TO SERVE LEGAL PROCESS IN

16 CHILD SUPPORT CASES ON CERTAIN ARRIVING

17 ALIENS.—

18 (1) IN GENERAL.—Section 235(d) of the Immi19 gration and Nationality Act (8 U.S.C. 1225(d)) is

20 amended by adding at the end the following:

21 ‘‘(5) AUTHORITY TO SERVE PROCESS IN CHILD

22 SUPPORT CASES.—

23 ‘‘(A) IN GENERAL.—To the extent con24 sistent with State law, immigration officers are

25 authorized to serve on any alien who is an ap-
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1 plicant for admission to the United States legal

2 process with respect to any action to enforce or

3 establish a legal obligation of an individual to

4 pay child support (as defined in section 459(i)

5 of the Social Security Act).

6 ‘‘(B) DEFINITION.—For purposes of sub7 paragraph (A), the term ‘legal process’ means

8 any writ, order, summons, or other similar

9 process, which is issued by—

10 ‘‘(i) a court or an administrative

11 agency of competent jurisdiction in any

12 State, territory, or possession of the

13 United States; or

14 ‘‘(ii) an authorized official pursuant to

15 an order of such a court or agency or pur16 suant to State or local law.’’.

17 (2) EFFECTIVE DATE.—The amendment made

18 by this subsection shall apply to aliens applying for

19 admission to the United States on or after 180 days

20 after the date of enactment of this Act.

21 (c) AUTHORIZATION TO SHARE CHILD SUPPORT EN22 FORCEMENT INFORMATION TO ENFORCE IMMIGRATION

23 AND NATURALIZATION LAW.—
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1 (1) SECRETARIAL RESPONSIBILITY.—Section

2 452 of the Social Security Act (42 U.S.C. 652) is

3 amended by adding at the end the following:

4 ‘‘(m) If the Secretary receives a certification by a

5 State agency, in accordance with section 454(35), that an

6 individual who is a nonimmigrant alien (as defined in sec7 tion 101(a)(15) of the Immigration and Nationality Act)

8 owes arrearages of child support in an amount exceeding

9 $2,500, the Secretary may, at the request of the State

10 agency, the Secretary of State, or the Attorney General,

11 or on the Secretary’s own initiative, provide such certifi12 cation to the Secretary of State and the Attorney General

13 information in order to enable them to carry out their re14 sponsibilities under sections 212(a)(10) and 235(d) of

15 such Act.’’.

16 (2) STATE AGENCY RESPONSIBILITY.—Section

17 454 of the Social Security Act (42 U.S.C. 654), as

18 amended by section 5111(c) of this Act, is

19 amended—

20 (A) by striking ‘‘and’’ at the end of para21 graph (33);

22 (B) by striking the period at the end of

23 paragraph (34) and inserting ‘‘; and’’; and

24 (C) by inserting after paragraph (34) the

25 following:
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1 ‘‘(35) provide that the State agency will have in

2 effect a procedure for certifying to the Secretary, in

3 such format and accompanied by such supporting

4 documentation as the Secretary may require, deter5 minations that nonimmigrant aliens owe arrearages

6 of child support in an amount exceeding $2,500.’’.

7 SEC. 5134. CORRECTION OF ERRORS IN CONFORMING

8 AMENDMENTS IN THE WELFARE-TO-WORK

9 AND CHILD SUPPORT AMENDMENTS OF 1999.

10 The amendments made by section 2402 of Public

11 Law 106–246 shall take effect as if included in the enact12 ment of section 806 of H.R. 3424 of the 106th Congress

13 by section 1000(a)(4) of Public Law 106–113.

14 SEC. 5135. INCREASE IN PAYMENT RATE TO STATES FOR

15 EXPENDITURES FOR SHORT-TERM TRAINING

16 OF STAFF OF CERTAIN CHILD WELFARE

17 AGENCIES.

18 Section 474(a)(3)(B) of the Social Security Act (42

19 U.S.C. 674(a)(3)(B)) is amended by inserting ‘‘, or State20 licensed or State-approved child welfare agencies providing

21 services,’’ after ‘‘child care institutions’’.

22 SEC. 5136. EFFECTIVE DATE.

23 (a) IN GENERAL.—Except as otherwise provided in

24 this subtitle and in subsection (b) of this section, this sub25 title and the amendments made by this subtitle shall take
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1 effect on October 1, 2002, and shall apply to payments

2 under part D of title IV of the Social Security Act for

3 calendar quarters beginning on or after such date, and

4 without regard to whether regulations to implement such

5 amendments are promulgated by such date.

6 (b) DELAY PERMITTED IF STATE LEGISLATION RE7 QUIRED.—In the case of a State plan approved under sec8 tion 454 of the Social Security Act which requires State

9 legislation (other than legislation appropriating funds) in

10 order for the plan to meet the additional requirements im11 posed by the amendments made by this Act, the State plan

12 shall not be regarded as failing to comply with the addi13 tional requirements solely on the basis of the failure of

14 the plan to meet the additional requirements before the

15 first day of the first calendar quarter beginning after the

16 close of the first regular session of the State legislature

17 that begins after the date of enactment of this Act. For

18 purposes of the previous sentence, in the case of a State

19 that has a 2-year legislative session, each year of such ses20 sion shall be deemed to be a separate regular session of

21 the State legislature.
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1 CHAPTER 2—CHILD SUPPORT

2 DEMONSTRATION PROGRAMS

3 SEC. 5141. SHORT TITLE.

4 This chapter may be cited as the ‘‘Child Support As5 surance Act of 2001’’.

6 SEC. 5142. PURPOSES.

7 The purposes of this chapter are to enable partici8 pating States to establish, expand, or improve child sup9 port assurance systems in order to improve the economic

10 circumstances of children who do not receive a minimum

11 level of child support in a given month from the noncusto12 dial parents of such children, to strengthen the establish13 ment and enforcement of child support awards, and to

14 promote work by custodial and noncustodial parents.

15 SEC. 5143. DEFINITIONS.

16 In this chapter:

17 (1) CHILD.—The term ‘‘child’’ means an indi18 vidual who is of such an age, disability, or edu19 cational status as to be eligible for child support as

20 provided for by law.

21 (2) ELIGIBLE CHILD.—The term ‘‘eligible

22 child’’ means a child who—

23 (A) is not currently receiving cash assist24 ance under the State program funded under
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1 part A of title IV of the Social Security Act (42

2 U.S.C. 601 et seq.);

3 (B) meets the eligibility requirements es4 tablished by the State for participation in a

5 project administered under this section; and

6 (C) is the subject of a support order, as

7 defined in section 453(p) of the Social Security

8 Act (42 U.S.C. 653(p)), or for which good

9 cause exists, as determined by the appropriate

10 State agency under section 454(29)(A) of such

11 Act (42 U.S.C. 654(29)(A)), for not having or

12 pursuing a support order.

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

14 the Secretary of Health and Human Services.

15 SEC. 5144. ESTABLISHMENT OF CHILD SUPPORT ASSUR16 ANCE DEMONSTRATION PROJECTS.

17 (a) DEMONSTRATIONS AUTHORIZED.—The Secretary

18 shall make grants to not less than 3 and not more than

19 5 States to conduct demonstration projects for the pur20 pose of establishing, expanding, or improving a system of

21 an assured minimum child support payment to an eligible

22 child in accordance with this section.

23 (b) APPLICATION AND SELECTION.—

24 (1) APPLICATION REQUIREMENTS.—An applica25 tion for a grant under this section shall be sub-
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1 mitted by the chief executive officer of a State and

2 shall—

3 (A) contain a description of the proposed

4 child support assurance project to be estab5 lished, expanded, or improved using amounts

6 provided under this section, including the level

7 of the assured minimum child support payment

8 to be provided and the agencies that will be in9 volved;

10 (B) specify whether the project will be car11 ried out throughout the State or in limited

12 areas of the State;

13 (C) specify the level of income, if any, at

14 which a recipient or applicant will be ineligible

15 for an assured minimum child support payment

16 under the project;

17 (D) estimate the number of children who

18 will be eligible for assured minimum child sup19 port payments under the project;

20 (E) contain a description of the work re21 quirements, if any, for custodial parents whose

22 children are participating in the project;

23 (F) contain a commitment by the State to

24 carry out the project during a period of not less
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1 than 3 and not more than 5 consecutive fiscal

2 years beginning with fiscal year 2002; and

3 (G) contain such other information as the

4 Secretary may require by regulation.

5 (2) SELECTION CRITERIA.—The Secretary shall

6 consider—

7 (A) geographic diversity in the selection of

8 States to conduct demonstration projects under

9 this section; and

10 (B) any other criteria that the Secretary

11 determines will contribute to the achievement of

12 the purposes of this title.

13 (c) USE OF FUNDS.—

14 (1) GRANT FUNDS.—A State shall use amounts

15 provided under a grant awarded under this section

16 to carry out a child support assurance project that

17 is designed to provide a minimum monthly child sup18 port payment for each eligible child participating in

19 the project to the extent that such minimum child

20 support is not paid in a month by the noncustodial

21 parent.

22 (2) TANF FUNDS.—

23 (A) IN GENERAL.—A State selected to con24 duct a demonstration project under this title

25 may use, in addition to the amounts provided
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1 under a grant awarded under this section,

2 funds provided under a State family assistance

3 grant under section 403(a)(1) of the Social Se4 curity Act (42 U.S.C. 603(a)(1)) for the pur5 pose described in paragraph (1).

6 (B) AUTHORITY TO INCLUDE AMOUNTS

7 USED FOR PURPOSES OF TANF MAINTENANCE

8 OF EFFORT REQUIREMENTS.—Section

9 409(a)(7)(B)(i)(I) of the Social Security Act

10 (42 U.S.C. 609(a)(7)(B)(i)(I)) is amended by

11 adding at the end the following:

12 ‘‘(ff) Notwithstanding clause

13 (iv), funds provided under a

14 State family assistance grant,

15 under section 403(a)(1) that are

16 used to establish, expand, or im17 prove a system of assured min18 imum child support payments to

19 eligible children (regardless of

20 whether such children reside with

21 an eligible family, as defined in

22 subclause (IV)) in accordance

23 with the Leave No Child Behind

24 Act of 2001.’’.
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1 (d) TREATMENT OF CHILD SUPPORT PAYMENT.—

2 Any assured minimum child support payment received by

3 an individual under this title shall be considered child sup4 port for purposes of determining the treatment of such

5 payment under—

6 (1) the Internal Revenue Code of 1986; and

7 (2) any eligibility requirements for any means8 tested program of assistance.

9 (e) DURATION.—A demonstration project conducted

10 under this section shall commence on October 1, 2003,

11 and shall be conducted for not less than 3 and not more

12 than 5 consecutive fiscal years, except that the Secretary

13 may terminate a project before the end of such period if

14 the Secretary determines that the State conducting the

15 project is not in compliance with the terms of the applica16 tion approved by the Secretary under this section.

17 (f) EVALUATIONS AND REPORTS.—

18 (1) STATE EVALUATIONS.—

19 (A) IN GENERAL.—Each State admin20 istering a demonstration project under this sec21 tion shall—

22 (i) provide for evaluation of the

23 project, meeting such conditions and

24 standards as the Secretary may require;

25 and
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1 (ii) submit to the Secretary reports, at

2 the times and in the formats as the Sec3 retary may require, and containing any in4 formation (in addition to the information

5 required under subparagraph (B)) as the

6 Secretary may require.

7 (B) REQUIRED INFORMATION.—A report

8 submitted under subparagraph (A)(ii) shall in9 clude information on and analysis of the effect

10 of the project with respect to—

11 (i) the amount of child support col12 lected for project recipients;

13 (ii) the economic circumstances and

14 work efforts of custodial parents;

15 (iii) the work efforts of noncustodial

16 parents;

17 (iv) the rate of compliance by non18 custodial parents with support orders;

19 (v) project recipients’ need for assist20 ance under means-tested assistance pro21 grams other than the project administered

22 under this section; and

23 (vi) any other matters that the Sec24 retary may specify.
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1 (C) METHODOLOGY.—Information re2 quired under this paragraph shall be collected

3 through the use of scientifically acceptable sam4 pling methods.

5 (2) REPORTS TO CONGRESS.—The Secretary

6 shall, on the basis of reports received from States

7 administering projects under this section, submit in8 terim reports and, not later than 6 months after the

9 conclusion of all projects administered under this

10 section, a final report to Congress. A report sub11 mitted under this paragraph shall contain an assess12 ment of the effectiveness of the State projects ad13 ministered under this section and any recommenda14 tions for legislative action that the Secretary con15 siders appropriate.

16 (g) FUNDING.—There shall be available to the Sec17 retary, from amounts made available to carry out part D

18 of title IV of the Social Security Act, for purposes of car19 rying out demonstration projects under this section,

20 amounts not to exceed—

21 (1) $27,000,000 for fiscal year 2004;

22 (2) $55,000,000 for fiscal year 2005; and

23 (3) $70,000,000 for each of fiscal years 2006

24 through 2008.
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1 Subtitle C—Fair Wages and

2 Unemployment Insurance

3 CHAPTER 1—FAIR MINIMUM WAGE

4 SEC. 5201. SHORT TITLE.

5 This chapter may be cited as the ‘‘Fair Minimum

6 Wage Act of 2001’’.

7 SEC. 5202. MINIMUM WAGE.

8 (a) IN GENERAL.—Section 6(a)(1) of the Fair Labor

9 Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended

10 to read as follows:

11 ‘‘(1) except as otherwise provided in this sec12 tion, not less than—

13 ‘‘(A) $5.75 an hour beginning 30 days

14 after the date of enactment of the Fair Min15 imum Wage Act of 2001;

16 ‘‘(B) $6.25 an hour during the year begin17 ning January 1, 2002; and

18 ‘‘(C) $6.65 an hour beginning January 1,

19 2003;’’.

20 (b) EFFECTIVE DATE.—The amendment made by

21 subsection (a) shall take effect 30 days after the date of

22 enactment of this Act.
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1 SEC. 5203. APPLICABILITY OF MINIMUM WAGE TO THE

2 COMMONWEALTH OF THE NORTHERN MAR3 IANA ISLANDS.

4 (a) IN GENERAL.—Section 6 of the Fair Labor

5 Standards Act of 1938 (29 U.S.C. 206) shall apply to the

6 Commonwealth of the Northern Mariana Islands.

7 (b) TRANSITION.—Notwithstanding subsection (a),

8 the minimum wage applicable to the Commonwealth of the

9 Northern Mariana Islands under section 6(a)(1) of the

10 Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1))

11 shall be—

12 (1) $3.55 an hour beginning 30 days after the

13 date of enactment of this Act; and

14 (2) increased by $0.50 an hour (or such lesser

15 amount as may be necessary to equal the minimum

16 wage under section 6(a)(1) of such Act), beginning

17 6 months after the date of enactment of this Act

18 and every 6 months thereafter until the minimum

19 wage applicable to the Commonwealth of the North20 ern Mariana Islands under this subsection is equal

21 to the minimum wage set forth in such section.
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1 CHAPTER 2—LIVABLE WAGES FOR EM2 PLOYEES UNDER FEDERAL CON3 TRACTS

4 SEC. 5211. SHORT TITLE.

5 This chapter may be cited as the ‘‘Federal Living

6 Wage Responsibility Act’’.

7 SEC. 5212. FINDINGS.

8 The Congress finds the following:

9 (1) American workers are working harder to

10 make ends meet.

11 (2) The wages of many working Americans

12 have not kept pace with the cost of providing for

13 their families.

14 (3) The Federal Government provides billions of

15 dollars in subsidies to businesses each year through

16 both spending programs and the Internal Revenue

17 Code of 1986.

18 (4) Recipients of Federal contracts have bene19 fited greatly from the provision of taxpayers’ dollars.

20 (5) The Congressional Budget Office concluded

21 that the Federal Government spends more than $30

22 billion a year on spending and credit programs.

23 (6) Congress must ensure that Federal dollars

24 are used responsibly to improve the economic secu25 rity and well-being of Americans across the country.
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1 SEC. 5213. POVERTY LEVEL WAGE.

2 (a) REQUIREMENT.—

3 (1) GENERAL RULE.—Except as provided in

4 paragraph (2), any employer under a Federal con5 tract for an amount exceeding $10,000 or a sub6 contract under a Federal contract for such an

7 amount shall, except as provided in subsection (b),

8 pay each of the employer’s employees working on or

9 hired in conjunction with such contract or

10 subcontract—

11 (A) an hourly wage necessary for such em12 ployee to earn, while working 40 hours a week

13 on a full-time basis, the amount of the Federal

14 poverty level for a family of 4 (as published in

15 the Federal Register by the Department of

16 Health and Human Services under the author17 ity of section 673(2) of the Omnibus Budget

18 Reconciliation Act of 1981), or

19 (B) $8.20 an hour,

20 whichever is greater.

21 (2) EXCEPTION.—An employer which is—

22 (A) a small business concern as defined

23 under section 3 of the Small Business Act (15

24 U.S.C. 632), or

25 (B) a nonprofit organization exempt from

26 Federal income tax under section 501(c) of the
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1 Internal Revenue Code of 1986 if the ratio of

2 the total compensation of its chief executive of3 ficer to the compensation of the full-time equiv4 alent of its lowest paid employee is not greater

5 than 25 to 1,

6 shall not be required to pay the wage prescribed by

7 paragraph (1).

8 (3) SCOPE.—An employer may not avoid the re9 quirement of paragraph (1) by laying off or other10 wise terminating the employment of an employee

11 with the intention of replacing such employee with

12 an employee who, under subsection (b), is not eligi13 ble for the subsection (a) wage.

14 (b) EXCEPTION.—An employee who is participating

15 in—

16 (1) an apprenticeship program, or

17 (2) any other training program which does not

18 exceed 6 months in duration and which is offered to

19 an employee while employed in productive work that

20 provides training, technical and other related skills,

21 and personal skills that are essential to the full and

22 adequate performance of the employee’s employ23 ment,

24 is not eligible for the wage prescribed by subsection (a).
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1 (c) CONTRACT REQUIREMENT.—Any contract be2 tween the Federal Government and any contractor and

3 any contract between such contractor with a subcontractor

4 to carry out work for the Federal Government shall re5 quire the contractor or subcontractor to pay the wage pre6 scribed by subsection (a)(1).

7 (d) ENFORCEMENT.—

8 (1) SUSPENSION.—If an employer does not pay

9 the wage required by subsection (a) the Federal con10 tract or subcontract under which such employer was

11 employing employees shall be suspended.

12 (2) INELIGIBILITY.—An employer described in

13 paragraph (1) shall not be eligible for any Federal

14 contract or subcontract for a period of 5 years be15 ginning on the date the employer does not pay the

16 required wage.

17 (3) RESTITUTION.—An employer who does not

18 pay the wage required by subsection (a) shall be lia19 ble to the United States in an amount equal to the

20 unpaid wages and in addition an equal amount as

21 liquidated damages. The Secretary of Labor shall

22 pay to the employees who were not paid such wage

23 the amount recovered by the United States under

24 this paragraph.
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1 SEC. 5214. EFFECTIVE DATE.

2 This chapter shall take effect with respect to Federal

3 contracts entered into, renewed, or extended after 90 days

4 after the date of enactment of this Act.

5 CHAPTER 3—UNEMPLOYMENT

6 INSURANCE

7 SEC. 5221. PARITY FOR PART-TIME WORKERS, FAIR COUNT8 ING OF WAGES, AND USE OF IMPROVED

9 TECHNOLOGY FOR MAKING WAGE DATA

10 AVAILABLE.

11 (a) IN GENERAL.—Subsection (a) of section 3304 of

12 the Internal Revenue Code of 1986 (relating to approval

13 of State unemployment compensation laws) is amended—

14 (1) in paragraph (18), by striking ‘‘and’’ at the

15 end;

16 (2) by redesignating paragraph (19) as para17 graph (21); and

18 (3) by inserting after paragraph (18) the fol19 lowing new paragraphs:

20 ‘‘(19) compensation shall not be denied to an

21 individual solely because such individual is seeking

22 only part-time work, if—

23 ‘‘(A) such individual otherwise qualifies for

24 unemployment compensation; and

25 ‘‘(B) the part-time work sought by such in26 dividual generally requires seeking suitable and
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1 comparable part-time work under provisions of

2 State law reasonably implementing this provi3 sion;

4 ‘‘(20) with respect to each individual who was

5 initially determined ineligible for compensation

6 under provisions of State law relating to base period

7 wages and employment, eligibility for compensation

8 is determined by using wage and employment infor9 mation received by the State agency from any em10 ployer for the most recently completed calendar

11 quarter, except that nothing in this paragraph shall

12 be construed as prohibiting a State from using any

13 additional wage and employment information consid14 ered by such State for monetary eligibility; and’’.

15 (b) EFFECTIVE DATES.—

16 (1) IN GENERAL.—Except as provided in sub17 section (b), the amendments made by this title shall

18 apply to compensation paid for weeks of unemploy19 ment beginning after June 30, 2002.

20 (2) AMENDMENT RELATING TO USE OF RECENT

21 WAGES.—Section 3304(a)(20) of the Internal Rev22 enue Code of 1986, as added by subsection (a)(3),

23 shall apply to compensation paid for weeks of unem24 ployment beginning after December 31, 2002.
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1 SEC. 5222. ENSURING UNEMPLOYMENT COMPENSATION

2 FOR INDIVIDUALS THAT ARE SEPARATED

3 FROM EMPLOYMENT DUE TO DOMESTIC VIO4 LENCE.

5 (a) UNEMPLOYMENT COMPENSATION.—Section 3304

6 of the Internal Revenue Code of 1986 (relating to approval

7 of State unemployment compensation laws), as amended

8 by section 5221, is amended—

9 (1) in subsection (a)—

10 (A) in paragraph (20), by striking ‘‘and’’

11 at the end;

12 (B) by redesignating paragraph (21) as

13 paragraph (22); and

14 (C) by inserting after paragraph (20) the

15 following new paragraph:

16 ‘‘(21) compensation is to be paid where an indi17 vidual is separated from employment due to cir18 cumstances directly resulting from domestic violence;

19 and’’; and

20 (2) by adding at the end the following new sub21 section:

22 ‘‘(g) CONSTRUCTION.—

23 ‘‘(1) IN GENERAL.—For purposes of subsection

24 (a)(21), an employee’s separation from employment

25 shall be treated as due to circumstances directly re-
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1 sulting from domestic violence if the separation re2 sulted from—

3 ‘‘(A) the employee’s reasonable fear of fu4 ture domestic violence at or en route to or from

5 the employee’s place of employment;

6 ‘‘(B) the employee’s wish to relocate to an7 other geographic area in order to avoid future

8 domestic violence against the employee or the

9 employee’s family;

10 ‘‘(C) the employee’s need to recover from

11 traumatic stress resulting from the employee’s

12 experience of domestic violence;

13 ‘‘(D) the employer’s denial of the employ14 ee’s request for the temporary leave from em15 ployment to address domestic violence and its

16 effects; or

17 ‘‘(E) any other circumstance in which do18 mestic violence causes the employee to reason19 ably believe that termination of employment is

20 necessary for the future safety of the employee

21 or the employee’s family.

22 ‘‘(2) REASONABLE EFFORTS TO RETAIN EM23 PLOYMENT.—For purposes of subsection (a)(21), if

24 State law requires the employee to have made rea25 sonable efforts to retain employment as a condition
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1 for receiving unemployment compensation, such re2 quirement shall be met if the employee—

3 ‘‘(A) sought protection from, or assistance

4 in responding to, domestic violence, including

5 calling the police or seeking legal, social work,

6 medical, clergy, or other assistance;

7 ‘‘(B) sought safety, including refuge in a

8 shelter or temporary or permanent relocation,

9 whether or not the employee actually obtained

10 such refuge or accomplished such relocation; or

11 ‘‘(C) reasonably believed that options such

12 as taking a leave of absence, transferring jobs,

13 or receiving an alternative work schedule would

14 not be sufficient to guarantee the employee or

15 the employee’s family’s safety.

16 ‘‘(3) ACTIVE SEARCH FOR EMPLOYMENT.—For

17 purposes of subsection (a)(21), if State law requires

18 the employee to actively search for employment after

19 separation from employment as a condition for re20 ceiving unemployment compensation, such require21 ment shall be treated as met where the employee is

22 temporarily unable to actively search for employment

23 because the employee is engaged in seeking safety or

24 relief for the employee or the employee’s family from

25 domestic violence, including—
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1 ‘‘(A) going into hiding or relocating or at2 tempting to do so, including activities associ3 ated with such hiding or relocation, such as

4 seeking to obtain sufficient shelter, food, school5 ing for children, or other necessities of life for

6 the employee or the employee’s family;

7 ‘‘(B) actively pursuing legal protection or

8 remedies, including meeting with the police,

9 going to court to make inquiries or file papers,

10 meeting with attorneys, or attending court pro11 ceedings; or

12 ‘‘(C) participating in psychological, social,

13 or religious counseling or support activities to

14 assist the employee in ending domestic violence.

15 ‘‘(4) PROVISION OF INFORMATION TO MEET

16 CERTAIN REQUIREMENTS.—In determining if an em17 ployee meets the requirements of paragraphs (1),

18 (2), and (3), the unemployment agency of the State

19 in which an employee is requesting unemployment

20 compensation by reason of subsection (a)(21) may

21 require the employee to provide—

22 ‘‘(A) documentation of the domestic vio23 lence, such as—

24 ‘‘(i) police or court records; or
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1 ‘‘(ii) documentation from a shelter

2 worker or an employee of a domestic vio3 lence program, an attorney, a clergy mem4 ber, or a medical or other professional

5 from whom the employee has sought as6 sistance in addressing domestic violence

7 and its effects; or

8 ‘‘(B) other corroborating evidence, such

9 as—

10 ‘‘(i) a statement from any other indi11 vidual with knowledge of the circumstances

12 which provide the basis for the claim; or

13 ‘‘(ii) physical evidence of domestic vio14 lence, such as photographs or torn or

15 bloody clothes.

16 All evidence of domestic violence experienced by an

17 employee, including an employee’s statement, any

18 corroborating evidence, and the fact that an em19 ployee has applied for, or inquired about, unemploy20 ment compensation available by reason of subsection

21 (a)(21) shall be retained in the strictest confidence

22 by such State unemployment agency, except to the

23 extent consented to by the employee where disclosure

24 is necessary to protect the employee’s safety.
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1 ‘‘(5) EFFECT OF CLAIMS.—Claims filed for un2 employment compensation solely by reason of sub3 section (a)(21) shall be disregarded in determining

4 an employer’s State unemployment taxes based on

5 unemployment experience.’’.

6 (b) SOCIAL SECURITY PERSONNEL TRAINING.—Sec7 tion 303(a) of the Social Security Act (42 U.S.C. 503(a))

8 is amended—

9 (1) by redesignating paragraphs (4) through

10 (10) as paragraphs (5) through (11), respectively;

11 and

12 (2) by inserting after paragraph (3) the fol13 lowing new paragraph:

14 ‘‘(4) Such methods of administration as will en15 sure that claims reviewers and hearing personnel are

16 adequately trained in—

17 ‘‘(A) the nature and dynamics of claims

18 for unemployment compensation based on do19 mestic violence under section 3304(a)(20) of

20 the Internal Revenue Code of 1986; and

21 ‘‘(B) methods of ascertaining and keeping

22 confidential information about possible experi23 ences of domestic violence to ensure that—

24 ‘‘(i) requests for unemployment com25 pensation based on domestic violence are
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1 reliably screened, identified, and adju2 dicated; and

3 ‘‘(ii) complete confidentiality is pro4 vided for the employee’s claim and sub5 mitted evidence; and’’.

6 (c) FUNDING FOR IMPROVED TECHNOLOGY TO AS7 SIST IN DETERMINING BENEFIT ELIGIBILITY.—Section

8 901(c) of the Social Security Act (42 U.S.C. 1101(c)) is

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

11 ‘‘(6) In addition to amounts provided under para12 graph (1)(A)(i), there is hereby appropriated out of the

13 employment security administration account $60,000,000

14 for fiscal year 2001 (which shall remain available for obli15 gation to the States through fiscal year 2003) for the pur16 pose of assisting States in funding technology and other

17 costs that accelerate access to wage and employment infor18 mation in order to determine eligibility for unemployment

19 compensation.’’.

20 (d) DEFINITIONS.—Section 3306 of the Internal Rev21 enue Code of 1986 (relating to definitions) is amended by

22 adding at the end the following new subsection:

23 ‘‘(u) DOMESTIC VIOLENCE.—For purposes of this

24 chapter, the term ‘domestic violence’ has the meaning

25 given such term in section 2003(1) of title I of the Omni-
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1 bus Crime Control and Safe Streets Act of 1968 (42

2 U.S.C. 3796gg–2).’’.

3 (e) EFFECTIVE DATE.—

4 (1) IN GENERAL.—Except as provided in para5 graphs (2) and (3), the amendments made by this

6 section shall take effect on November 1, 2001.

7 (2) FUNDING FOR IMPROVED TECHNOLOGY TO

8 ASSIST IN DETERMINING BENEFIT ELIGIBILITY.—

9 The amendment made by subsection (c) shall take

10 effect on the date of enactment of this Act.

11 (3) EXCEPTION.—In the case of any State the

12 legislature of which has not been in session for at

13 least 30 calendar days (whether or not successive)

14 between the date of enactment of this Act and No15 vember 1, 2001, the amendments made by this sec16 tion shall take effect 30 calendar days after the first

17 day on which such legislature is in session on or

18 after November 1, 2001.

19 SEC. 5223. LOSS OF CHILD CARE AS GOOD CAUSE FOR

20 LEAVING EMPLOYMENT.

21 (a) IN GENERAL.—Subsection (a) of section 3304 of

22 the Internal Revenue Code of 1986 (relating to approval

23 of State unemployment compensation laws), as amended

24 by section 5222, is amended—
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1 (1) in paragraph (21), by striking ‘‘and’’ at the

2 end;

3 (2) by redesignating paragraph (22) as para4 graph (23); and

5 (3) by inserting after paragraph (21) the fol6 lowing new paragraph:

7 ‘‘(22) if any individual leaves employment be8 cause of loss of adequate child care for a dependent

9 child under the age of 12, for purposes of deter10 mining such individual’s eligibility for compensation

11 for any subsequent week for which such individual

12 meets the State law requirements relating to avail13 ability for work and active search for work—

14 ‘‘(A) such individual shall be treated as

15 having left such employment for good cause,

16 and

17 ‘‘(B) any failure to return to such employ18 ment or to otherwise meet such State law re19 quirements, while the lack of such child care

20 continues, shall be disregarded; and’’.

21 (b) EFFECTIVE DATE.—

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendments made by subsection (a)

24 shall take effect on November 1, 2001.
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1 (2) EXCEPTION.—In the case of any State the

2 legislature of which has not been in session for at

3 least 30 calendar days (whether or not successive)

4 between the date of enactment of this Act and No5 vember 1, 2001, the amendments made by sub6 section (a) shall take effect 30 calendar days after

7 the first day on which such legislature is in session

8 on or after November 1, 2001.

9 Subtitle D—Jobs for Low-Income

10 Parents

11 SEC. 5301. DISREGARD OF MONTHS ENGAGED IN WORK

12 FOR PURPOSES OF 5-YEAR TANF ASSISTANCE

13 LIMIT.

14 Section 408(a)(7) of the Social Security Act (42

15 U.S.C. 608(a)(7)) is amended—

16 (1) by redesignating subparagraphs (E), (F),

17 and (G) as subparagraphs (G), (H), and (I), respec18 tively; and

19 (2) by inserting after subparagraph (D), the

20 following:

21 ‘‘(E) DISREGARD OF MONTHS OF ASSIST22 ANCE RECEIVED BY ADULT WHILE ENGAGED IN

23 WORK.—In determining the number of months

24 for which an adult has received assistance

25 under a State or tribal program funded under
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1 this part, the State or tribe shall disregard any

2 month during which the adult is engaged in a

3 work activity described in paragraph (1), (2),

4 (3), (4), (5), (6), (7), (8), or (12) of section

5 407(d) in accordance with the requirements of

6 section 407(c).’’.

7 SEC. 5302. STRENGTHENING TANF EDUCATION AND TRAIN8 ING REQUIREMENTS.

9 (a) IN GENERAL.—Section 407(c) of the Social Secu10 rity Act (42 U.S.C. 607(c)) is amended—

11 (1) in paragraph (1)(A), by striking ‘‘not fewer

12 than 20 hours per week of which are attributable to

13 an activity described in paragraph (1), (2), (3), (4),

14 (5), (6), (7), (8), or (12) of subsection (d),’’; and

15 (2) in paragraph (2)(D)—

16 (A) by striking ‘‘30 percent’’ and inserting

17 ‘‘50 percent’’;

18 (B) by striking ‘‘For purposes of’’ and in19 serting the following:

20 ‘‘(i) IN GENERAL.—For purposes of’’;

21 and

22 (C) by adding at the end the following:

23 ‘‘(ii) WAIVER.—The Secretary may

24 waive the requirements of clause (i) with

25 respect to an individual if a State dem-
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1 onstrates that the vocational educational

2 training or education described in subpara3 graph (C) that the individual is engaged in

4 is part of the individual’s individual re5 sponsibility plan developed under section

6 408(b) and is designed to ensure that the

7 individual has a better chance of sus8 taining stable employment.’’.

9 (b) ELIMINATION OF 12-MONTH LIMIT ON VOCA10 TIONAL EDUCATIONAL TRAINING; INCLUSION OF POST11 SECONDARY EDUCATION.—Section 407(d) of the Social

12 Security Act (42 U.S.C. 607(d)) is amended—

13 (1) in paragraph (8), by striking ‘‘(not to ex14 ceed 12 months with respect to any individual)’’;

15 (2) in paragraph (11), by striking ‘‘and’’ at the

16 end;

17 (3) by redesignating paragraph (12) as para18 graph (13); and

19 (4) by inserting after paragraph (11), the fol20 lowing:

21 ‘‘(12) post-secondary education related to em22 ployment; and’’.
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1 SEC. 5303. ADDITION OF POVERTY REDUCTION BONUS TO

2 TANF.

3 Section 403(a) of the Social Security Act (42 U.S.C.

4 603(a)), is amended by adding at the end the following:

5 ‘‘(6) BONUS TO REWARD STATES THAT REDUCE

6 POVERTY.—

7 ‘‘(A) IN GENERAL.—The Secretary shall

8 make a grant pursuant to this paragraph to

9 each State for each fiscal year beginning with

10 fiscal year 2003 for which the State is a quali11 fied poverty reduction State, as determined

12 under subparagraph (C).

13 ‘‘(B) AMOUNT OF GRANT.—With respect

14 to a fiscal year, each State that the Secretary

15 determines is a qualified poverty reduction

16 State for that fiscal year shall receive a grant

17 in an amount equal to the ratio of the amount

18 appropriated under subparagraph (D) for that

19 fiscal year to the total number of all such

20 States for that fiscal year.

21 ‘‘(C) DETERMINATION OF QUALIFIED POV22 ERTY REDUCTION STATES.—For purposes of

23 subparagraph (A), a State shall be considered a

24 qualified poverty reduction State for a fiscal

25 year if the State satisfies the following:
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1 ‘‘(i) PROVISION OF CERTAIN ASSIST2 ANCE.—The State demonstrates to the

3 Secretary that the State program funded

4 under this part provides in each local polit5 ical subdivision of the State for at least 3

6 of the following:

7 ‘‘(I) A work expense or transpor8 tation allowance for any low-income

9 family that is not receiving assistance

10 under the State program.

11 ‘‘(II) The use of income dis12 regards sufficient to allow a family to

13 remain eligible for at least partial as14 sistance under the State program

15 until the sum of the family’s earned

16 income and cash assistance exceed the

17 poverty line applicable to such family.

18 ‘‘(III) On-the-job training or

19 work/study programs in occupations

20 likely to provide a livable wage. For

21 purposes of this subclause, the term

22 ‘livable wage’ means such hourly wage

23 as is necessary for an employee to

24 earn, while working 40 hours a week

25 on a full-year basis, an amount equal
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1 to the amount of the Federal poverty

2 level for a family of 4 for that year

3 (as published in the Federal Register

4 by the Department of Health and

5 Human Services under the authority

6 of section 673(2) of the Omnibus

7 Budget Reconciliation Act of 1981).

8 ‘‘(IV) Temporary subsidized em9 ployment that provides at least the

10 minimum wage applicable under sec11 tion 6 of the Fair Labor Standards

12 Act for parents or caregivers who are

13 unable to find other employment.

14 ‘‘(V) Non-recurrent assistance to

15 help pay for the repair of a vehicle or

16 appliance, past-due rent, a utility or

17 fuel bill, vehicle licensing or insurance

18 costs, or for other purposes deemed

19 necessary by the State to enable eligi20 ble families with children to maintain

21 stable work and living situations.

22 ‘‘(VI) A minimum monthly child

23 support payment paid by the State to

24 a low-income family with at least 1

25 child support order if the noncustodial
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1 parent does not pay the minimum

2 payment required under the order.

3 ‘‘(VII) With respect to families

4 that have assigned to the State in ac5 cordance with section 408(a)(3) any

6 child support rights a family member

7 may have (on behalf of the family

8 member or of any other person for

9 whom the family member has applied

10 for or is receiving such assistance), a

11 pass through of child support collec12 tions to the family, with at least $100

13 per month of the pass-through pay14 ment disregarded for purposes of cal15 culating assistance for the family

16 under the State program funded

17 under this part.

18 ‘‘(VIII) An increase in the

19 State’s minimum wage to at least

20 $6.15 per hour or a State minimum

21 wage indexed to inflation.

22 ‘‘(ii) DEMONSTRATION OF IMPROVED

23 OUTCOMES FOR CURRENT AND FORMER

24 RECIPIENTS OF ASSISTANCE.—
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1 ‘‘(I) IN GENERAL.—With respect

2 to a fiscal year, the State is one of the

3 10 States with the greatest year-to4 year decline or, in the absence of 10

5 such States, the least year-to-year in6 crease, in the child poverty rate ad7 justed by the severity of poverty. For

8 purposes of this subclause, the child

9 poverty rate adjusted by the severity

10 of poverty shall be determined with

11 respect to a State for a fiscal year by

12 multiplying the State’s percentage of

13 children with family income below the

14 poverty line for that fiscal year by the

15 average difference per poor child in

16 the State between the child’s family

17 income and the poverty line.

18 ‘‘(II) DETERMINATION OF IN19 COME.—For purposes of subclause

20 (I), the Secretary shall, to the extent

21 feasible, consider the following in cal22 culating a family’s income:

23 ‘‘(aa) Cash income, such as

24 earnings, child support received
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1 by the family, and government

2 cash payments.

3 ‘‘(bb) Benefits received

4 under the Food Stamp Act of

5 1977.

6 ‘‘(cc) Federal, State, or local

7 income taxes paid by the family

8 for the preceding taxable year

9 and the refundable portion of any

10 tax credits received.

11 ‘‘(D) APPROPRIATION.—Out of any money

12 in the Treasury of the United States not other13 wise appropriated, there is appropriated for fis14 cal year 2003 and each fiscal year thereafter,

15 $200,000,000 to make the grants required

16 under this paragraph.’’.

17 SEC. 5304. PARTICIPATION IN WORKFORCE INVESTMENT

18 BOARDS.

19 (a) STATE WORKFORCE INVESTMENT BOARDS.—

20 Section 111(b)(1)(C) of the Workforce Investment Act of

21 1998 (29 U.S.C. 2821(b)(1)(C)) is amended—

22 (1) by redesignating clause (vii) as clause (viii);

23 (2) in clause (vi), by striking ‘‘and’’ at the end;

24 and

25 (3) by inserting after clause (vi) the following:
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1 ‘‘(vii) a representative of a lead State

2 agency with responsibility for the State

3 program funded under part A of title IV of

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

5 seq.); and’’.

6 (b) LOCAL WORKFORCE INVESTMENT BOARDS.—

7 Section 117(b)(2)(A) of the Workforce Investment Act of

8 1998 (29 U.S.C. 2832(b)(2)(A)) is amended—

9 (1) in clause (v), by striking ‘‘and’’ at the end;

10 and

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

12 ‘‘(vii) a representative of the local

13 agency, if any, with responsibility for the

14 program funded under part A of title IV of

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

16 seq.); and’’.

17 SEC. 5305. CLARIFICATION OF TANF PURPOSE.

18 Section 401(a) of the Social Security Act (42 U.S.C.

19 601(a)) is amended—

20 (1) by redesignating paragraphs (3) and (4) as

21 paragraphs (4) and (5), respectively; and

22 (2) by inserting after paragraph (2), the fol23 lowing:

24 ‘‘(3) reduce poverty among families with chil25 dren;’’.
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1 SEC. 5306. EFFECTIVE DATE.

2 The amendments made by this subtitle take effect on

3 October 1, 2001.

4 Subtitle E—Incentives to Serve

5 Families

6 SEC. 5401. DEVELOPMENT OF MODEL CASEWORKER TRAIN7 ING MATERIALS.

8 (a) DEVELOPMENT OF MODEL CASEWORKER TRAIN9 ING MATERIALS.—The Secretary of Health and Human

10 Services shall develop model training materials (including

11 guidebooks and other resources) for caseworkers assigned

12 to administer the provision of assistance to a family under

13 the State program funded under part A of title IV of the

14 Social Security Act (42 U.S.C. 601 et seq.). The model

15 training materials shall be designed to train the case16 workers to improve the access of the family to other serv17 ices and benefits that the family, or individuals within the

18 family, may be eligible for, including—

19 (1) benefits under the food stamp program, as

20 defined in section 3(h) of the Food Stamp Act of

21 1977 (7 U.S.C. 2012(h));

22 (2) medical assistance under the medicaid pro23 gram under title XIX of the Social Security Act (42

24 U.S.C. 1396 et seq.);
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1 (3) child health assistance under the State chil2 dren’s health insurance program under title XXI of

3 the Social Security Act (42 U.S.C. 1397aa et seq.);

4 (4) the special supplemental nutrition program

5 for women, infants, and children (WIC) under sec6 tion 17 of the Child Nutrition Act of 1966 (42

7 U.S.C. 1786);

8 (5) child care assistance;

9 (6) transportation assistance;

10 (7) education or training assistance;

11 (8) job placement activities;

12 (9) the earned income tax credit under section

13 32 of the Internal Revenue Code of 1986; and

14 (10) services to treat or alleviate substance

15 abuse, mental illness, or family violence.

16 (b) AUTHORIZATION OF APPROPRIATIONS.—There is

17 authorized to be appropriated to the Secretary of Health

18 and Human Services to carry out this section such sums

19 as may be necessary for fiscal year 2002 and each fiscal

20 year thereafter.
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1 SEC. 5402. EXCEPTION TO LIMIT ON TANF ADMINISTRATIVE

2 EXPENDITURES FOR CASEWORKER BONUSES

3 AND OTHER STATE INITIATIVES TO ELIMI4 NATE BARRIERS TO WORK.

5 Section 404(b)(2) of the Social Security Act (42

6 U.S.C. 604(b)(2)) is amended—

7 (1) in the heading, by striking ‘‘EXCEPTION’’;

8 and inserting ‘‘EXCEPTIONS’’;

9 (2) by striking ‘‘Paragraph (1)’’ and inserting

10 the following:

11 ‘‘(A) INFORMATION TECHNOLOGY AND

12 COMPUTERIZATION.—Paragraph (1)’’; and

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

14 ‘‘(B) CASEWORKER BONUSES AND OTHER

15 STATE INITIATIVES TO ELIMINATE BARRIERS

16 TO WORK.—

17 ‘‘(i) IN GENERAL.—Paragraph (1)

18 shall not apply to the use of a grant to

19 provide a cash bonus to a caseworker for

20 a family receiving assistance under the

21 State program funded under this part

22 based on the number of such families that

23 the State determines the caseworker as24 sists achieve a goal described in clause (ii),

25 or for expenditures incurred for other

26 State initiatives designed to eliminate bar-
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1 riers to work for families receiving assist2 ance under the State program funded

3 under this part.

4 ‘‘(ii) CASEWORKER GOALS.—For pur5 poses of clause (i), the goals described in

6 this clause are the following:

7 ‘‘(I) Obtain employment that

8 provides wages and benefits that en9 able the family to have income that

10 exceeds the poverty line applicable to

11 a family of the size involved.

12 ‘‘(II) Obtain supportive services

13 and benefits for which the family is el14 igible.

15 ‘‘(III) With respect to an indi16 vidual within a family, overcome a

17 barrier to the individual’s employ18 ment, including a barrier resulting

19 from a lack of transportation or child

20 care, a life crisis due to family vio21 lence, substance abuse, or a mental or

22 physical disability.

23 ‘‘(IV) With respect to an indi24 vidual within a family, retain employ25 ment for at least 6 months.’’.
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1 SEC. 5403. STRENGTHENING OF TANF INDIVIDUAL RESPON2 SIBILITY PLANS.

3 Section 408(b) of the Social Security Act (42 U.S.C.

4 608(b)) is amended—

5 (1) in paragraph (2)—

6 (A) in subparagraph (A)—

7 (i) in the matter preceding clause (i),

8 by striking ‘‘may’’ and inserting ‘‘shall’’;

9 and

10 (ii) in clause (i), by striking ‘‘imme11 diately into private sector employment’’

12 and inserting ‘‘into a job leading to stable

13 employment with earnings above the pov14 erty line applicable to a family of the size

15 involved (based on 35 hours of work per

16 week) and health care benefits for the em17 ployee and the employee’s dependents’’;

18 and

19 (B) in subparagraph (B)—

20 (i) in the matter preceding clause (i),

21 by striking ‘‘may’’ and inserting ‘‘shall’’;

22 (ii) in clause (i), by striking ‘‘(or, at

23 the option of the State, 180 days)’’;

24 (iii) in clause (ii), by striking ‘‘(or, at

25 the option of the State, 90 days)’’; and
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1 (2) by striking paragraph (4) and inserting the

2 following:

3 ‘‘(4) PENALTY FOR NONCOMPLIANCE BY THE

4 STATE.—In addition to any other penalties that may

5 be imposed against a State for failure to comply

6 with the requirements of this part, the Secretary

7 may reduce the grant payable to a State under sec8 tion 403(a)(1) if the Secretary determines that the

9 State has failed, without good cause, to comply with

10 the requirements of this subsection.’’.

11 SEC. 5404. EFFECTIVE DATE.

12 The amendments made by this subtitle take effect on

13 October 1, 2001.

14 Subtitle F—Addressing Work

15 Barriers

16 SEC. 5501. FUNDING FOR ACCESS TO JOBS PROGRAM.

17 Section 3037 of the Transportation Equity Act for

18 the 21st Century (49 U.S.C. 5309 note) is amended in

19 subsection (l)(1)—

20 (1) in subparagraph (A), by striking clauses

21 (iv) and (v) and inserting the following:

22 ‘‘(iv) $150,000,000 for fiscal year

23 2002;

24 ‘‘(v) $170,000,000 for fiscal year

25 2003;
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1 ‘‘(vi) $190,000,000 for fiscal year

2 2004;

3 ‘‘(vii) $200,000,000 for fiscal year

4 2005; and

5 ‘‘(viii) $225,000,000 for fiscal year

6 2006.’’;

7 (2) in subparagraph (B), by striking clauses

8 (iv) and (v) and inserting the following:

9 ‘‘(iv) $50,000,000 for each of fiscal

10 years 2002 through 2006.’’; and

11 (3) in subparagraph (C)—

12 (A) by inserting ‘‘and’’ after the semicolon

13 in clause (ii);

14 (B) by striking ‘‘; and’’ in clause (iii) and

15 inserting a period; and

16 (C) by striking clause (iv).

17 SEC. 5502. REQUIREMENT TO IDENTIFY AND PROVIDE

18 SERVICES TO ADDRESS BARRIERS TO EM19 PLOYMENT OF TANF RECIPIENTS.

20 (a) REQUIREMENT TO IDENTIFY AS PART OF INDI21 VIDUAL RESPONSIBILITY PLAN.—Section 408(b) of the

22 Social Security Act (42 U.S.C. 608(b)), as amended by

23 section 5403, is amended—

24 (1) in paragraph (1), by striking ‘‘who—’’ and

25 all that follows and inserting ‘‘has attained 18 years
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1 of age, using caseworkers who are trained to utilize

2 assessment methods approved by the State to iden3 tify recipients with severe barriers to employment,

4 such as being subjected to domestic violence, having

5 mental health, substance or alcohol abuse problems,

6 homelessness, a physical or mental disability, or illit7 eracy problems.’’; and

8 (2) in paragraph (2)(A)(iv), by inserting ‘‘over9 come any severe barriers to employment identified

10 by the State under paragraph (1), and to’’ after

11 ‘‘will be able to’’.

12 (b) EXEMPTION FROM WORK REQUIREMENT IF

13 STATE FAILS TO PROVIDE SERVICES.—Section 407(e) of

14 the Social Security Act (42 U.S.C. 607(e)) is amended—

15 (1) in paragraph (1), by striking ‘‘paragraph

16 (2)’’ and inserting ‘‘paragraphs (2) and (3)’’;

17 (2) in paragraph (2), in the heading, by strik18 ing ‘‘EXCEPTION’’; and inserting ‘‘SINGLE CUSTO19 DIAL PARENT WITH A YOUNG CHILD’’; and

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

21 ‘‘(3) INDIVIDUAL WITH A SEVERE BARRIER TO

22 EMPLOYMENT TO WHOM THE STATE FAILS TO PRO23 VIDE SERVICES.—Notwithstanding paragraph (1), a

24 State may not reduce assistance under the State

25 program funded under this part based on a refusal
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1 of an individual to engage in work required in ac2 cordance with this section if, as part of the assess3 ment required under section 408(b)(1), the indi4 vidual has been identified as having a severe barrier

5 to employment and the State fails to provide services

6 necessary to overcome the barrier.’’.

7 SEC. 5503. STATE OPTION TO ESTABLISH EXCEPTIONS

8 FROM TIME LIMIT FOR RECEIPT OF TANF AS9 SISTANCE BASED ON SEVERE BARRIERS TO

10 EMPLOYMENT.

11 Section 408(a)(7)(C) of the Social Security Act (42

12 U.S.C. 608(a)(7)(C)) is amended—

13 (1) in clause (ii), by striking ‘‘The average’’

14 and inserting ‘‘Subject to clause (iv), the average’’;

15 and

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

17 ‘‘(iv) STATE OPTION FOR EXCEPTIONS

18 BASED ON SEVERE BARRIERS TO EMPLOY19 MENT.—At State option, the limit de20 scribed in clause (ii) shall not apply with

21 respect to each category of exception based

22 on severe barriers to employment as the

23 State may determine.’’.
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1 SEC. 5504. EFFECTIVE DATE.

2 The amendments made by this subtitle take effect on

3 October 1, 2001.

4 Subtitle G—Protection for Families

5 in Need

6 SEC. 5601. EARN-BACK OF MONTHS OF TANF ASSISTANCE.

7 Section 408(a)(7) of the Social Security Act (42

8 U.S.C. 608(a)(7)), as amended by section 5301, is amend9 ed by inserting after subparagraph (E) the following:

10 ‘‘(F) EARN-BACK OF MONTHS OF ASSIST11 ANCE.—In determining the number of months

12 for which an adult has received assistance

13 under a State or tribal program funded under

14 this part, the State or tribe shall disregard 1

15 month for every 3 months that the adult is en16 gaged in a work activity defined in paragraph

17 (1), (2), or (3) of section 407(d) in accordance

18 with the requirements of section 407(c) and

19 during which the individual is not receiving as20 sistance under the State program funded under

21 this part.’’.

22 SEC. 5602. ESTABLISHMENT OF A FAIR CONCILIATION

23 PROCESS FOR FAMILIES UNDER TANF.

24 Section 408 of the Social Security Act (42 U.S.C.

25 608) is amended by adding at the end the following:

26 ‘‘(h) FAIR CONCILIATION PROCEDURES.—
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1 ‘‘(1) IN GENERAL.—Any case closed under the

2 State program funded under this part shall be sub3 ject to a customer service review in accordance with

4 the requirements of this subsection to ensure that a

5 case is not erroneously terminated and to give a

6 family another opportunity to participate in the pro7 gram.

8 ‘‘(2) REQUIREMENTS.—

9 ‘‘(A) INITIAL REVIEW.—A customer service

10 reviewer shall examine the case record for each

11 case closed to determine—

12 ‘‘(i) whether the caseworker respon13 sible for the case has attempted to make

14 personal contact with the parent or care15 giver before recommending closure of the

16 case; and

17 ‘‘(ii) whether sufficient documentation

18 exists in the case record to establish both

19 a factual and policy basis for closure of the

20 case, including documentation of written

21 notice of the closure to the parent or care22 giver.

23 ‘‘(B) RETURN TO CASEWORKER.—Any

24 case in which a customer service reviewer deter25 mines that no personal contact has been at-
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1 tempted before closure of the case, or that in2 sufficient documentation exists, shall be re3 turned to the caseworker for the provision of

4 such attempted contact or documentation.

5 ‘‘(C) ADDITIONAL ATTEMPTED PERSONAL

6 CONTACT.—If a case is not returned to a case7 worker under subparagraph (A), the customer

8 service reviewer shall attempt to make personal

9 contact with the parent or caregiver involved,

10 including, if 3 attempts are required, an at11 tempt outside of normal business hours. A case

12 shall be closed after 3 unsuccessful attempts.

13 ‘‘(D) DETERMINATION OF GOOD CAUSE

14 FOR EXCEPTION TO CLOSURE.—

15 ‘‘(i) IN GENERAL.—With respect to a

16 case in which a caseworker or a customer

17 service reviewer has made personal contact

18 with the parent or caregiver, the customer

19 service reviewer shall determine whether

20 barriers to participation in the program

21 exist, whether there are grounds for ex22 emption from the time limits or any other

23 program requirements, or whether there

24 was an error in the application of the facts

25 or policy.
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1 ‘‘(ii) MODIFICATION OF INDIVIDUAL

2 RESPONSIBILITY PLAN.—If a customer

3 service reviewer determines under clause

4 (i) that a case should not be closed, the

5 customer service reviewer shall work with

6 the parent or caregiver to modify the par7 ent’s or caregiver’s individual responsibility

8 plan developed under subsection (b) as ap9 propriate, including with respect to the

10 provision of any additional services needed

11 to assist the individual in becoming work12 ready.

13 ‘‘(E) PLAN FOR COMPLIANCE.—If a cus14 tomer service reviewer determines that subpara15 graph (D) does not apply and a parent or care16 giver is not subject to the time limit for receipt

17 of assistance under subsection (a)(7), the re18 viewer shall ask the parent or caregiver if the

19 parent or caregiver is now willing to comply

20 with program requirements, and establish a

21 plan with the parent or caregiver for compli22 ance. If the parent or caregiver does not comply

23 with such plan, the case shall be closed without

24 regard to the preceding subparagraphs of this

25 paragraph.
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1 ‘‘(F) WRITTEN NOTICE.—With respect to

2 a case closed by a customer service reviewer

3 under this subsection, the reviewer shall send

4 the family involved a final written notice of the

5 case closure that informs the family of—

6 ‘‘(i) the specific factual basis of the

7 closure;

8 ‘‘(ii) the steps that the family can

9 take to maintain eligibility for assistance

10 under the State program; and

11 ‘‘(iii) the procedure for appealing the

12 closure decision.’’.

13 SEC. 5603. EFFECTIVE DATE.

14 The amendments made by this subtitle take effect on

15 October 1, 2001.

16 Subtitle H—TANF Reauthorization

17 SEC. 5701. REAUTHORIZATION OF TANF STATE FAMILY AS18 SISTANCE GRANTS.

19 Section 403(a)(1) of the Social Security Act (42

20 U.S.C. 603(a)(1)) is amended—

21 (1) in subparagraph (A), by striking ‘‘fiscal

22 years 1996, 1997, 1998, 1999, 2000, 2001, and

23 2002’’ and inserting ‘‘the fiscal years during the pe24 riod beginning with fiscal year 1996 and ending with

25 fiscal year 2007’’; and
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1 (2) in subparagraph (E), by striking ‘‘fiscal

2 years 1996, 1997, 1998, 1999, 2000, 2001, and

3 2002’’ and inserting ‘‘each of the fiscal years during

4 the period beginning with fiscal year 1996 and end5 ing with fiscal year 2007’’.

6 SEC. 5702. PROHIBITION ON SUPPLANTATION OF TANF

7 FUNDS.

8 Section 408(a) of the Social Security Act (42 U.S.C.

9 608(a)) is amended by adding at the end the following

10 new paragraph:

11 ‘‘(12) SUPPLEMENT NOT SUPPLANT.—Funds

12 made available under this part shall be used to sup13 plement, not supplant, other Federal, State, or local

14 funds that are used for existing services and activi15 ties that promote the purposes of this part.’’.

16 TITLE VI—FAIR START

17 Subtitle A—Child and Adult Care

18 Food Program

19 SEC. 6001. PARTICIPATION OF FOR-PROFIT CARE CENTERS

20 IN CHILD AND ADULT CARE FOOD PROGRAM.

21 Section 17(a)(2)(B) of the Richard B. Russell Na22 tional School Lunch Act (42 U.S.C. 1766(a)(2)(B)) is

23 amended—

24 (1) by striking ‘‘if—’’ and all that follows

25 through ‘‘2001, at’’ and inserting ‘‘if at’’; and
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1 (2) by striking ‘‘meals; or’’ and all that follows

2 and inserting ‘‘meals;’’.

3 SEC. 6002. CATEGORICAL ELIGIBILITY REQUIREMENTS.

4 Section 17(f)(3)(A)(ii) of the Richard B. Russell Na5 tional School Lunch Act (42 U.S.C. 1766(f)(3)(A)(ii)) is

6 amended by adding at the end the following:

7 ‘‘(V) CATEGORICAL ELIGI8 BILITY.—In making a determination

9 of income eligibility under subclauses

10 (I)(cc) and (II), a family or group day

11 care home sponsoring organization

12 may consider a provider participating

13 in or subsidized under, or a provider

14 with a child participating in or sub15 sidized under, a federally or State

16 supported child care or other benefit

17 program with an income eligibility

18 limit that does not exceed the eligi19 bility standard for free or reduced

20 price meals under section 9 to be a

21 provider whose household meets the

22 income eligibility guidelines under sec23 tion 9.’’.
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1 SEC. 6003. INCREASE IN ADMINISTRATIVE REIMBURSE2 MENT RATES.

3 Section 17(f)(3) of the Richard B. Russell National

4 School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by

5 striking subparagraph (B) and inserting the following:

6 ‘‘(B) REIMBURSEMENT FOR ADMINISTRA7 TIVE EXPENSES.—

8 ‘‘(i) IN GENERAL.—Family or group

9 day care home sponsoring organizations

10 shall also receive reimbursement for ad11 ministrative expenses in amounts not ex12 ceeding the maximum allowable levels pre13 scribed by the Secretary.

14 ‘‘(ii) ADJUSTMENT.—The maximum

15 allowable levels prescribed under clause (i)

16 shall be—

17 ‘‘(I) adjusted July 1 of each year

18 to reflect changes for the 12-month

19 period ending in the preceding June,

20 in the Consumer Price Index for All

21 Urban Consumers published by the

22 Bureau of Labor Statistics of the De23 partment of Labor, rounded to the

24 nearest lower dollar increment; and

25 ‘‘(II) in addition to the adjust26 ments required under subclause (I),
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1 increased by $2.00 for each level de2 scribed in clause (i).’’.

3 SEC. 6004. PROGRAM FOR AT-RISK SCHOOL CHILDREN.

4 Section 17(r) of the Richard B. Russell National

5 School Lunch Act (42 U.S.C. 1766(r)) is amended—

6 (1) in paragraph (1)(B)—

7 (A) by inserting ‘‘(i)’’ after ‘‘(B)’’;

8 (B) by striking ‘‘in a geographical area’’

9 and all that follows through the period and in10 serting the following: ‘‘in a geographical area—

11 ‘‘(I) that is served by a school in

12 which at least 50 percent of the children

13 are eligible for free or reduced price school

14 meals under this Act or the Child Nutri15 tion Act of 1966 (42 U.S.C. 1771 et seq.);

16 or

17 ‘‘(II) in which poor economic condi18 tions exist, as determined by the Secretary

19 based on—

20 ‘‘(aa) information provided from

21 the local department of welfare, zon22 ing commission, or census tracts; or

23 ‘‘(bb) information from other ap24 propriate sources; or’’; and

25 (C) by adding at the end the following:
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1 ‘‘(ii) is enrolled in a program authorized

2 under this subsection operated at a site not de3 scribed in clause (i).’’;

4 (2) in paragraph (4), by striking subparagraphs

5 (B) and (C) and inserting the following:

6 ‘‘(B) RATES.—

7 ‘‘(i) MEALS.—A meal shall be reim8 bursed under this subsection—

9 ‘‘(I) for children participating in

10 a program at a site described in para11 graph (1)(B)(i), at the rate estab12 lished for free meals under subsection

13 (c); and

14 ‘‘(II) for children enrolled in a

15 program under paragraph 1(B)(ii), at

16 the applicable rate for meals estab17 lished under subsection (c).

18 ‘‘(ii) SUPPLEMENTS.—A supplement

19 shall be reimbursed under this

20 subsection—

21 ‘‘(I) for children participating in

22 a program at a site described in para23 graph (1)(B)(i), at the rate estab24 lished for a free supplement under

25 subsection (c)(3); and
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1 ‘‘(II) for children enrolled in a

2 program under paragraph 1(B)(ii), at

3 the applicable rate for supplements es4 tablished under subsection (c)(3).

5 ‘‘(C) NO CHARGE.—In the case of at-risk

6 school child participating in a program at a site

7 described in paragraph (1)(B)(i), a meal or

8 supplement provided under this subsection to

9 the child shall be served without charge.’’; and

10 (3) by striking paragraph (5).

11 Subtitle B—Food Stamp Program

12 SEC. 6101. RESTORATION OF FOOD STAMP BENEFITS FOR

13 QUALIFIED ALIENS.

14 (a) LIMITED ELIGIBILITY OF QUALIFIED ALIENS

15 FOR CERTAIN FEDERAL PROGRAMS.—

16 (1) IN GENERAL.—Section 402(a) of the Per17 sonal Responsibility and Work Opportunity Rec18 onciliation Act of 1996 (8 U.S.C. 1612(a)) is

19 amended—

20 (A) in paragraph (2)—

21 (i) in subparagraph (A), by striking

22 ‘‘Federal programs’’ and inserting ‘‘Fed23 eral program’’;

24 (ii) in subparagraph (D)—

25 (I) by striking clause (ii); and
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1 (II) in clause (i)—

2 (aa) by striking ‘‘(i)

3 SSI.—’’ and all that follows

4 through ‘‘paragraph (3)(A)’’ and

5 inserting the following:

6 ‘‘(i) IN GENERAL.—With respect to

7 the specified Federal program described in

8 paragraph (3)’’;

9 (bb) by redesignating sub10 clauses (II) through (IV) as

11 clauses (ii) through (iv) and in12 denting appropriately;

13 (cc) by striking ‘‘subclause

14 (I)’’ each place it appears and in15 serting ‘‘clause (i)’’; and

16 (dd) in clause (iv) (as redes17 ignated by item (bb)), by striking

18 ‘‘this clause’’ and inserting ‘‘this

19 subparagraph’’;

20 (iii) in subparagraph (E), by striking

21 ‘‘paragraph (3)(A) (relating to the supple22 mental security income program)’’ and in23 serting ‘‘paragraph (3)’’;

24 (iv) in subparagraph (F);
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1 (I) by striking ‘‘Federal pro2 grams’’ and inserting ‘‘Federal pro3 gram’’;

4 (II) in clause (ii)(I)—

5 (aa) by striking ‘‘(I) in the

6 case of the specified Federal pro7 gram described in paragraph

8 (3)(A),’’; and

9 (bb) by striking ‘‘; and’’ and

10 inserting a period; and

11 (III) by striking subclause (II);

12 (v) in subparagraph (G), by striking

13 ‘‘Federal programs’’ and inserting ‘‘Fed14 eral program’’;

15 (vi) in subparagraph (H), by striking

16 ‘‘paragraph (3)(A) (relating to the supple17 mental security income program)’’ and in18 serting ‘‘paragraph (3)’’; and

19 (vii) by striking subparagraphs (I),

20 (J), and (K); and

21 (B) in paragraph (3)—

22 (i) by striking ‘‘means any’’ and all

23 that follows through ‘‘The supplemental’’

24 and inserting ‘‘means the supplemental’’;

25 and
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1 (ii) by striking subparagraph (B).

2 (2) CONFORMING AMENDMENT.—Section

3 402(b)(2)(F) of the Personal Responsibility and

4 Work Opportunity Reconciliation Act of 1996 (8

5 U.S.C. 1612(b)(2)(F)) is amended by striking ‘‘sub6 section (a)(3)(A)’’ and inserting ‘‘subsection (a)(3)’’.

7 (b) FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED

8 ALIENS FOR FEDERAL MEANS-TESTED PUBLIC BEN9 EFIT.—Section 403 of the Personal Responsibility and

10 Work Opportunity Reconciliation Act of 1996 (8 U.S.C.

11 1613) is amended—

12 (1) in subsection (c)(2), by adding at the end

13 the following:

14 ‘‘(L) Assistance or benefits under the Food

15 Stamp Act of 1977 (7 U.S.C. 2011 et seq.).’’;

16 and

17 (2) in subsection (d)—

18 (A) by striking ‘‘not apply’’ and all that

19 follows through ‘‘(1) an individual’’ and insert20 ing ‘‘not apply to an individual’’; and

21 (B) by striking ‘‘; or’’ and all that follows

22 through ‘‘402(a)(3)(B)’’.

23 (c) AUTHORITY FOR STATES TO PROVIDE FOR AT24 TRIBUTION OF SPONSOR’S INCOME AND RESOURCES TO

25 THE QUALIFIED ALIEN WITH RESPECT TO STATE PRO-
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1 GRAMS.—Section 422(b) of the Personal Responsibility

2 and Work Opportunity Reconciliation Act of 1996 (8

3 U.S.C. 1632(b)) is amended by adding at the end the fol4 lowing:

5 ‘‘(8) Programs comparable to assistance or ben6 efits under the Food Stamp Act of 1977 (7 U.S.C.

7 2011 et seq.).’’.

8 (d) REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

9 SUPPORT.—Section 423(d) of the Personal Responsibility

10 and Work Opportunity Reconciliation Act of 1996 (8

11 U.S.C. 1183a note; Public Law 104–193) is amended by

12 adding at the end the following:

13 ‘‘(12) Benefits under the Food Stamp Act of

14 1977 (7 U.S.C. 2011 et seq.), if a sponsor is unable

15 to make the reimbursement because the sponsor ex16 periences hardship (including bankruptcy, disability,

17 and indigence) or if the sponsor experiences severe

18 circumstances beyond the control of the sponsor, as

19 determined by the Secretary of Agriculture.’’.

20 (e) DERIVATIVE ELIGIBILITY FOR BENEFITS.—Sec21 tion 436 of the Personal Responsibility and Work Oppor22 tunity Reconciliation Act of 1996 (8 U.S.C. 1646) is re23 pealed.

24 (f) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), this section and the amendments made by

3 this section take effect on April 1, 2002.

4 (2) EXCEPTIONS.—The amendments made by

5 subsections (a) through (d) shall—

6 (A) not apply to a certification period that

7 begins not later than April 1, 2002, and ends

8 not later than October 1, 2002, unless the

9 State agency (as defined in section 3 of the

10 Food Stamp Act of 1977 (7 U.S.C. 2012))

11 elects to make such amendments applicable be12 fore the ends of the period, but not before April

13 1, 2002; and

14 (B) apply on October 1, 2002 to a certifi15 cation period that begins not later than April 1,

16 2002, and ends after October 1, 2002, unless

17 the State agency elects to make the amend18 ments applicable to the certification period on a

19 date before October 1, 2002, but not before

20 April 1, 2002.

21 SEC. 6102. CONFORMING FOOD STAMP AND MEDICAID IN22 COME DEFINITIONS; SIMPLIFIED INCOME

23 CALCULATIONS.

24 Section 5(d) of the Food Stamp Act of 1977 (7

25 U.S.C. 2014(d)) is amended—
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1 (1) in paragraph (3)—

2 (A) by striking ‘‘and (C)’’ and inserting

3 ‘‘(C)’’; and

4 (B) by adding at the end the following: ‘‘

5 and (D) to the extent that any other edu6 cational loans on which payment is deferred,

7 grants, scholarships, fellowships, veterans’ edu8 cational benefits, and the like are excluded

9 under Title XIX of the Social Security Act (42

10 U.S.C. 1396 et seq.).’’;

11 (2) by striking ‘‘ and (15)’’ and inserting

12 ‘‘(15)’’; and

13 (3) by inserting before the period at the end the

14 following: ‘‘(16) any State complementary assistance

15 program payments that are excluded under sub16 sections (a) and (b) of section 1931 of the Social Se17 curity Act (42 U.S.C. 1396u–1(a),(b)), and (17) at

18 the option of the State agency, any type of income

19 that the State agency does not consider when deter20 mining eligibility for cash assistance under a pro21 gram funded under part A of title IV of the Social

22 Security Act (42 U.S.C. 601 et seq.) or medical as23 sistance under section 1931 of the Social Security

24 Act (41 U.S.C. 1396u–1): Provided, That this para25 graph shall not authorize a State agency to exclude
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1 earned income, benefits under titles II, IV, or XVI

2 of the Social Security Act (42 U.S.C. 401 et seq.),

3 or other types of income that the Secretary considers

4 necessary for the equitable determinations of eligi5 bility and benefit levels’’.

6 SEC. 6103. PREVENTION OF HUNGER AMONG FAMILIES

7 WITH CHILDREN.

8 (a) STANDARD DEDUCTION.—Section 5(e) of the

9 Food Stamp Act of 1977 (7 U.S.C. 2014(e)) is amended

10 by striking paragraph (1) and inserting the following:

11 ‘‘(1) STANDARD DEDUCTION.—

12 ‘‘(A) IN GENERAL.—Subject to subpara13 graph (B), the Secretary shall allow a standard

14 deduction for each household in the 48 contig15 uous States and the District of Columbia, Alas16 ka, Hawaii, Guam, and the Virgin Islands of

17 the United States that is equal to the applicable

18 percentage established under subparagraph (C)

19 of the income standard of eligibility under sub20 section (c)(1).

21 ‘‘(B) LIMITATIONS.—The standard deduc22 tion for each household in the 48 contiguous

23 States and the District of Columbia, Alaska,

24 Hawaii, Guam, and the Virgin Islands of the
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1 United States under subparagraph (A) shall not

2 be—

3 ‘‘(i) less than $134, $229, $189,

4 $269, and $118, respectively; or

5 ‘‘(ii) more than the applicable percent6 age specified in subparagraph (C) of the

7 income standard of eligibility established

8 under section (c)(1) for a household of 6

9 members.

10 ‘‘(C) APPLICABLE PERCENTAGE.—The ap11 plicable percentage referred to in subpara12 graphs (A) and (B) shall be—

13 ‘‘(i) for fiscal year 2002, 8 percent;

14 ‘‘(ii) for fiscal year 2003, 8.5 percent;

15 ‘‘(iii) for fiscal year 2004, 9 percent;

16 ‘‘(iv) for fiscal year 2005, 9.5 percent;

17 and

18 ‘‘(v) for fiscal year 2006 and each

19 subsequent fiscal year, 10 percent.’’.

20 (b) APPLICATION DATE.—The amendments made by

21 this section shall apply on the later of—

22 (1) July 1, 2002; or

23 (2) at the option of a State agency of a State

24 (as those terms are defined in section 3 of the Food
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1 Stamp Act of 1977 (7 U.S.C. 2012)), October 1,

2 2002.

3 SEC. 6104. ENCOURAGEMENT OF COLLECTION OF CHILD

4 SUPPORT.

5 (a) IN GENERAL.—Section 5(e)(2) of the Food

6 Stamp Act of 1977 (7 U.S.C. 2014(e)(2)) is amended—

7 (1) by inserting ‘‘AND CHILD SUPPORT’’ after

8 ‘‘INCOME’’;

9 (2) in subparagraph (A)—

10 (A) by striking ‘‘DEFINITION OF’’ and all

11 that follows through ‘‘not include’’ and insert12 ing the following: ‘‘LIMITATION ON DEDUC13 TION.—A deduction under this paragraph shall

14 not apply to’’;

15 (B) in clause (i), by striking ‘‘or’’;

16 (C) in clause (ii), by striking the period at

17 the end and inserting ‘‘; or’’; and

18 (D) by adding at the end the following:

19 ‘‘(iii) child support received to the ex20 tent of any reduction in public assistance

21 to the household as a result of receiving

22 the support.’’; and

23 (3) in subparagraph (B)—

24 (A) by striking ‘‘with earned income’’; and
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1 (B) by striking ‘‘to compensate’’ and all

2 that follows through the period and inserting

3 the following: ‘‘and child support received from

4 an identified or putative parent of a child in the

5 household if that parent is not a household

6 member.’’.

7 (b) EFFECTIVE DATE.—The amendments made by

8 this section take effect on—

9 (1) July 1, 2002; or

10 (2) at the option of a State agency of a State

11 (as those terms are defined in section 3 of the Food

12 Stamp Act of 1977 (7 U.S.C. 2012)), October 1,

13 2002.

14 SEC. 6105. ELIMINATION OF EXCESS SHELTER EXPENSE DE15 DUCTION CAP FOR FAMILIES WITH HIGH

16 SHELTER COSTS.

17 Section 5(e)(7) of the Food Stamp Act of 1977 (7

18 U.S.C. 2014(e)(7)) is amended—

19 (1) by striking subparagraph (B); and

20 (2) by redesignating subparagraph (C) as sub21 paragraph (B).

22 SEC. 6106. PERIODIC REDETERMINATION OF ELIGIBILITY.

23 (a) IN GENERAL.—Section 11(e) of the Food Stamp

24 Act of 1977 (7 U.S.C. 2020(e)) is amended by striking

25 paragraph (4) and inserting the following:
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1 ‘‘(4)(A) that the State agency shall periodically

2 require the household to cooperate in a redetermina3 tion of eligibility under procedures consistent with

4 paragraph (2); and

5 ‘‘(B) that, in carrying out subparagraph (A), a

6 State agency—

7 ‘‘(i) shall require a redetermination of eli8 gibility at least once—

9 ‘‘(I) every 12 months; or

10 ‘‘(II) every 24 months, if—

11 ‘‘(aa) the State agency has con12 tact with the household at least once

13 every 12 months; and

14 ‘‘(bb) all adult household mem15 bers are elderly or disabled;

16 ‘‘(ii) except as provided in clause (iii), shall

17 continue to provide benefits to households dur18 ing the redetermination process; and

19 ‘‘(iii) shall not provide further allotments

20 to any household that the State agency deter21 mines has refused to cooperate in the redeter22 mination of eligibility;’’.

23 (b) CONFORMING AMENDMENTS—
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1 (1) Section 3 of the Food Stamp Act of 1977

2 (7 U.S.C. 2012) is amended by striking subsection

3 (c).

4 (2) Section 5 of the Food Stamp Act of 1977

5 (7 U.S.C. 2014) is amended—

6 (A) in subsection (d)(2), by striking ‘‘in

7 the certification period’’; and

8 (B) in subsection (e)—

9 (i) in paragraph (6)(B)(ii)(III), by

10 striking ‘‘has been anticipated for the cer11 tification period’’ and inserting ‘‘was an12 ticipated when the household applied for

13 benefits or at the most recent redetermina14 tion of eligibility’’; and

15 (ii) in paragraph (7)(C)(iii)(II), by

16 striking ‘‘the end of a certification period’’

17 and inserting ‘‘each redetermination of eli18 gibility’’.

19 (3) Section 6(c)(1)(C)(iv) of the Food Stamp

20 Act of 1977 (7 U.S.C.2015(c)(1)(C)(iv)) is amended

21 by striking ‘‘certification period’’ each place it ap22 pears and inserting ‘‘interval between required rede23 terminations of eligibility’’.

24 (4) Section 8(c) of the Food Stamp Act of 1977

25 (7 U.S.C. 2017) is amended—
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1 (A) in paragraph (1), by striking ‘‘within

2 a certification period’’; and

3 (B) in paragraph (2), by striking ‘‘expira4 tion of’’ and all that follows through ‘‘certifi5 cation period,’’ and inserting ‘‘termination of

6 benefits to a household,’’.

7 (5) Section 11(e) of the Food Stamp Act of

8 1977 (7 U.S.C. 2020(e) is amended—

9 (A) in paragraph (10)—

10 (i) by striking ‘‘within the household’s

11 certification period’’; and

12 (ii) by striking ‘‘until such time’’ and

13 all that follows through ‘‘occurs earlier’’;

14 and

15 (B) in paragraph (16), by striking ‘‘recer16 tification’’ and inserting ‘‘redetermination of

17 the eligibility of’’.

18 SEC. 6107. TRANSITIONAL BENEFITS OPTION.

19 (a) IN GENERAL.—Section 11 of the Food Stamp Act

20 of 1977 (7 U.S.C. 2020) is amended by adding at the end

21 the following:

22 ‘‘(s) TRANSITIONAL BENEFITS OPTION.—

23 ‘‘(1) IN GENERAL.—A State may provide tran24 sitional food stamp benefits to a household that is

25 no longer eligible to receive cash assistance under a
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1 State program funded under part A of title IV of the

2 Social Security Act (42 U.S.C. 601 et seq.).

3 ‘‘(2) TRANSITIONAL BENEFITS PERIOD.—Under

4 paragraph (1), a household may continue to receive

5 food stamp benefits for a period of not more than

6 6 months after the date on which cash assistance is

7 terminated.

8 ‘‘(3) AMOUNT.—During the transitional bene9 fits period under paragraph (2), a household shall

10 receive an amount equal to the allotment received in

11 the month immediately preceding the date on which

12 cash assistance is terminated, adjusted for—

13 ‘‘(A) the change in household income as a

14 result of the termination of cash assistance; and

15 ‘‘(B) any changes in circumstances that

16 may result in an increase in the food stamp al17 lotment of the household and that the house18 hold elects to report (as verified in accordance

19 with standards established by the Secretary).

20 ‘‘(4) DETERMINATION OF FUTURE ELIGI21 BILITY.—In the final month of the transitional bene22 fits period under paragraph (2), the State agency

23 may—

24 ‘‘(A) require a household to cooperate in a

25 redetermination of eligibility to receive uninter-
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1 rupted benefits after the transitional benefits

2 period; and

3 ‘‘(B) renew eligibility for a new certifi4 cation period for the household without regard

5 to whether the previous certification period has

6 expired.

7 ‘‘(5) LIMITATION.—A household sanctioned

8 under section 6 shall not be eligible for transitional

9 benefits under this subsection.’’.

10 (b) CONFORMING AMENDMENTS.—

11 (1) Section 11(e)(4)(B) of the Food Stamp Act

12 of 1977 (7 U.S.C. 2020(e)(4)(B)) (as amended by

13 section 6106(a)) is amended—

14 (A) in clause (ii), by striking ‘‘and’’ at the

15 end;

16 (B) in clause (iii), by inserting ‘‘and’’ after

17 the semicolon; and

18 (C) by adding at the end the following:

19 ‘‘(iv) may extend the intervals under

20 clause (i) to the end of a transitional bene21 fits period established by a State under

22 section 11(s);’’.

23 (2) Section 6(c) of the Food Stamp Act of 1977

24 (7 U.S.C. 2015(c)) is amended by striking ‘‘No

25 household’’ and inserting ‘‘Except in a case in which
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1 a household is receiving transitional benefits during

2 the transitional benefits period under subsection (s),

3 no household’’.

4 SEC. 6108. IMPROVING STATE INCENTIVES TO SERVE

5 WORKING FAMILIES.

6 (a) TARGETED QUALITY CONTROL SYSTEM.—Sec7 tion 16(c) of the Food Stamp Act of 1977 (7 U.S.C.

8 2025(c)) is amended—

9 (1) in paragraph (1)—

10 (A) in subparagraph (B), by striking

11 ‘‘and’’ at the end;

12 (B) by striking subparagraph (C) and in13 serting the following:

14 ‘‘(C) except as provided in subparagraph

15 (D), for any fiscal year in which the Secretary

16 determines that a 95-percent statistical prob17 ability exists that the payment error rate of a

18 State agency exceeds the national performance

19 measure for payment error rates under para20 graph (6) by more than 1 percentage point,

21 other than for good cause shown, the State

22 agency shall pay to the Secretary an amount, to

23 be determined by the Secretary based on an in24 vestigation and finding that the State adminis25 tration of the program under this Act was seri-
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1 ously negligent, that reflects the extent of neg2 ligence, not to exceed 5 percent of the amount

3 provided the State agency under subsection (a);

4 and’’; and

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

6 ‘‘(D) if, in any 3 consecutive fiscal years,

7 the Secretary determines that a 95-percent sta8 tistical probability exists that the payment error

9 rate of a State agency exceeds the national per10 formance measure for payment error rates

11 under paragraph (6) by more than 1 percentage

12 point, other than for good cause shown, the

13 agency shall pay to the Secretary an amount

14 equal to the product of—

15 ‘‘(i) the value of all allotments issued

16 by the State agency in the fiscal year;

17 times

18 ‘‘(ii) the lesser of—

19 ‘‘(I) the ratio of—

20 ‘‘(aa) the amount by which

21 the payment error rate of the

22 State agency for the fiscal year

23 exceeds by more than 1 percent24 age point the national perform-
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1 ance measure for the fiscal year;

2 bears to

3 ‘‘(bb) 10 percent, or

4 ‘‘(II) 1; times

5 ‘‘(iii) the amount by which the pay6 ment error rate of the State agency for the

7 fiscal year exceeds by more than 1 percent8 age point the national performance meas9 ure for the fiscal year.’’;

10 (2) in paragraph (2)(A), by inserting before the

11 semicolon the following: ‘‘, as adjusted downward to

12 eliminate any increases that may result from the

13 State agency serving a higher percentage of

14 households—

15 ‘‘(i) with earned income than—

16 ‘‘(I) the State agency served in fiscal

17 year 1992; or

18 ‘‘(II) the national average for the cur19 rent year; and

20 ‘‘(ii) containing 1 or more members who

21 are not United States citizens than—

22 ‘‘(I) the State agency served in fiscal

23 year 1998; or

24 ‘‘(II) the national average for the cur25 rent year’’;
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1 (3) in paragraph (4), by striking the first sen2 tence and inserting the following: ‘‘The Secretary

3 may require a State agency to report any factors

4 that the Secretary considers necessary to determine

5 a State agency’s payment error rate, enhanced ad6 ministrative funding, claim for payment error, or

7 performance under the measures under paragraph

8 (10).’’;

9 (4) in paragraph (5), by striking the first sen10 tence and inserting the following: ‘‘To facilitate the

11 implementation of this subsection each State agency

12 shall expeditiously submit to the Secretary data re13 garding its operations in each fiscal year sufficient

14 for the Secretary to comply with paragraph (10) and

15 to establish the payment error rate for the State

16 agency for such fiscal year and determine the

17 amount of either incentive payments under para18 graph (1)(A) or claims under subparagraph (C) or

19 (D) of paragraph (1).’’; and

20 (5) by inserting at the end the following:

21 ‘‘(10)(A) ADDITIONAL PERFORMANCE MEAS22 URES.—In addition to the performance measures

23 under paragraph (1), the Secretary shall measure—

24 ‘‘(i) compliance with the deadlines under

25 paragraphs (3) and (9) of section 11(e);
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1 ‘‘(ii) the percentage of negative eligibility

2 decisions that are made in error; and

3 ‘‘(iii) the number of households that

4 have—

5 ‘‘(I) incomes less than 130 percent of

6 the poverty rate;

7 ‘‘(II) annual earnings equal to at least

8 1000 times the Federal minimum hourly

9 rate under the Fair Labor Standards Act

10 of 1938 (29 U.S.C. 201 et seq.); and

11 ‘‘(III) children under age 18;

12 that receive food stamps in the State as a per13 centage of the number of the low-income work14 ing households with children in the State.

15 ‘‘(B) BONUS PAYMENTS.—For each fiscal year,

16 with respect to each of the performance measures in

17 subparagraph (A), the Secretary shall make excel18 lence bonus payments of $1,000,000 to—

19 ‘‘(i) each of the 5 States with the highest

20 performance; and

21 ‘‘(ii) each of the 5 States with the perform22 ance that has most improved during the fiscal

23 year.

24 ‘‘(C) INVESTIGATION.—
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1 ‘‘(1) IN GENERAL.—For any fiscal year in

2 which the Secretary determines that a 95-per3 cent statistical probability exists that the per4 formance of a State agency with respect to any

5 of the performance measures in subparagraph

6 (A) is substantially worse than a level the Sec7 retary determines reasonable, the Secretary

8 shall investigate the State agency.

9 ‘‘(2) CORRECTIVE ACTION.—If the Sec10 retary determines that the administration by

11 the State agency has been deficient, the Sec12 retary shall require the State agency to take

13 prompt corrective action.’’.

14 (b) APPLICATION DATE.—

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the amendments made by this section

17 shall apply to all fiscal years beginning on or after

18 October 1, 1999.

19 (2) ADDITIONAL PERFORMANCE MEASURES.—

20 The amendments made by subsection (a)(5) shall

21 apply to all fiscal years beginning on or after Octo22 ber 1, 2001.
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1 SEC. 6109. AUTHORIZATION OF APPROPRIATIONS FOR AD2 DITIONAL COMMODITIES UNDER EMER3 GENCY FOOD ASSISTANCE PROGRAM.

4 Section 214 of the Emergency Food Assistance Act

5 of 1983 (7 U.S.C. 7515) is amended by adding at the end

6 the following:

7 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—

8 ‘‘(1) IN GENERAL.—In addition to any other

9 funds that are made available to carry out this sec10 tion, there are authorized to be appropriated to pur11 chase and make available additional commodities

12 under this section $20,000,000 for each of fiscal

13 years 2002 through 2006.

14 ‘‘(2) DIRECT EXPENSES.—Not less than 50

15 percent of the amount made available under para16 graph (1) shall be used to pay direct expenses (as

17 defined in section 204(a)(2)) incurred by emergency

18 feeding organizations to distribute additional com19 modities to needy persons.’’.

20 TITLE VII—FAIR START

21 HOUSING

22 Subtitle A—Section 8 Vouchers

23 SEC. 7001. RENTAL ASSISTANCE VOUCHER PROGRAM.

24 (a) IN GENERAL.—The Secretary of Housing and

25 Urban Development (referred to in this subtitle as the

26 ‘‘Secretary’’) shall provide 1,000,000 incremental housing
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1 vouchers for rental assistance under section 8(o) of the

2 United States Housing Act of 1937 (42 U.S.C. 1437f(o))

3 during the 10 year period following the date of enactment

4 of this Act.

5 (b) AUTHORIZATION OF APPROPRIATIONS.—There

6 are authorized to be appropriated such sums as necessary

7 to carry out this section.

8 SEC. 7002. VOUCHER SUCCESS FUND.

9 (a) VOUCHER SUCCESS FUND.—

10 (1) ESTABLISHMENT.—There is established the

11 Voucher Success Fund (referred to in this section as

12 the ‘‘Fund’’).

13 (2) PURPOSES.—The purposes of the Fund

14 are—

15 (A) to address barriers that individuals en16 counter in successfully utilizing voucher rental

17 assistance provided under section 8(o) of the

18 United States Housing Act of 1937 (42 U.S.C.

19 1437f(o)); and

20 (B) to help improve the operation of that

21 voucher rental assistance program.

22 (3) USES OF ASSISTANCE.—The Secretary shall

23 provide assistance from the Fund to States on a

24 competitive basis, which assistance shall be used—
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1 (A) by communities that are determined by

2 an appropriate State agency of the State to be

3 experiencing problems in utilizing voucher rent4 al assistance provided under section 8(o) of the

5 United States Housing Act of 1937 (42 U.S.C.

6 1437f(o)), including—

7 (i) difficult market conditions;

8 (i) low rates of success for families at9 tempting to use voucher rental assistance

10 provided under that section;

11 (iii) concentrations of assisted families

12 in high poverty neighborhoods; and

13 (iv) other program difficulties; and

14 (B) for activities that include—

15 (i) technical assistance to local public

16 housing authorities or communities to im17 prove the success of the voucher rental as18 sistance program under section 8(o) of the

19 United States Housing Act (42 U.S.C.

20 1437f(o));

21 (ii) assistance for families in using

22 that assistance, including mobility coun23 seling, assistance with security deposits,

24 transportation, and other activities in25 tended to increase the likelihood that fami-
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1 lies will succeed in leasing units or leasing

2 units outside of areas of concentrated pov3 erty; and

4 (iii) outreach to landlords and com5 munity groups to encourage participation

6 in that voucher rental assistance program.

7 (4) MONITORING SYSTEMS.—The Secretary

8 may use not more than 1 percent of any amount

9 made available to the Fund under this section to es10 tablish monitoring systems for the Fund.

11 (5) REPORT.—Not later than 12 months after

12 the date of enactment of this Act, the Secretary

13 shall—

14 (A) conduct a detailed evaluation of the ef15 fect of providing assistance under this section;

16 and

17 (B) submit a report to Congress regarding

18 the evaluation conducted under subparagraph

19 (A).

20 (6) AUTHORIZATION OF APPROPRIATIONS.—

21 There is authorized to be appropriated to the Fund,

22 $50,000,000 for each of fiscal years 2002 through

23 2011 to carry out the provisions of this section.
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1 Subtitle B—National Affordable

2 Housing Trust Fund

3 SEC. 7101. PURPOSES.

4 The purposes of this subtitle are—

5 (1) to fill the growing gap in the national abil6 ity to build affordable housing by using profits gen7 erated by Federal housing programs to fund addi8 tional housing activities, and not supplant existing

9 housing appropriations;

10 (2) to enable rental housing to be built for

11 those families with the greatest need in areas with

12 the greatest opportunities in mixed-income settings;

13 and

14 (3) to promote homeownership for low-income

15 families.

16 SEC. 7102. NATIONAL AFFORDABLE HOUSING TRUST FUND.

17 (a) ESTABLISHMENT OF TRUST FUND.—There is es18 tablished in the Treasury of the United States a trust fund

19 to be known as the ‘‘National Affordable Housing Trust

20 Fund’’ (referred to in this subtitle as the ‘‘Trust Fund’’)

21 for the purpose of promoting the development of afford22 able housing.

23 (b) DEPOSITS TO THE TRUST FUND.—For fiscal

24 year 2002 and each fiscal year thereafter, there is author-
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1 ized to be appropriated to the Trust Fund an amount

2 equal to the sum of—

3 (1) any revenue generated by the Mutual Mort4 gage Insurance Fund of the Federal Housing Ad5 ministration in excess of the amount necessary for

6 the Mutual Mortgage Insurance Fund to maintain a

7 capital ratio of 3 percent for the preceding fiscal

8 year; and

9 (2) any revenue generated by the Government

10 National Mortgage Association in excess of the

11 amount necessary to pay the administrative costs

12 and expenses necessary to ensure the safety and

13 soundness of the Government National Mortgage As14 sociation for the preceding fiscal year, as determined

15 by the Secretary of Housing and Urban Develop16 ment.

17 (c) EXPENDITURES FROM THE TRUST FUND.—For

18 fiscal year 2002 and each fiscal year thereafter, amounts

19 appropriated to the Trust Fund shall be available to the

20 Secretary of Housing and Urban Development for use in

21 accordance with section 7103.

22 SEC. 7103. ADMINISTRATION OF NATIONAL AFFORDABLE

23 HOUSING TRUST FUND.

24 (a) DEFINITIONS.—In this section:
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1 (1) AFFORDABLE HOUSING.—The term ‘‘afford2 able housing’’ means housing for rental that bears

3 rents not greater than the lesser of—

4 (A) the existing fair market rent for com5 parable units in the area, as established by the

6 Secretary under section 8 of the United States

7 Housing Act of 1937 (42 U.S.C. 1437f); or

8 (B) a rent that does not exceed 30 percent

9 of the adjusted income of a family whose in10 come equals 65 percent of the median income

11 for the area, as determined by the Secretary,

12 with an adjustment for the number of bedrooms

13 in the unit, except that the Secretary may es14 tablish income ceilings that are higher or lower

15 than 65 percent of the median for the area if

16 the Secretary finds that such variations are

17 necessary because of prevailing levels of con18 struction costs or fair market rents, or unusu19 ally high or low family incomes.

20 (2) CONTINUED ASSISTANCE RENTAL SUBSIDY

21 PROGRAM.—The term ‘‘continued assistance rental

22 subsidy program’’ means a program under which—

23 (A) project-based assistance is provided,

24 for not more than 3 years, to a family in an af25 fordable housing unit developed with assistance
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1 made available under subsection (c) or (d) in a

2 project that partners with a public housing

3 agency, which agency agrees—

4 (i) to provide the assisted family with

5 a priority for the receipt of a voucher

6 under section 8(o) of the United States

7 Housing Act of 1937 (42 U.S.C. 1437f(o))

8 if the family chooses to move after the ini9 tial year of occupancy; and

10 (ii) to refer eligible voucher holders to

11 the property when a vacancy occurs; and

12 (B) after 3 years, subject to appropria13 tions, continued assistance is provided under

14 section 8(o) of the United States Housing Act

15 of 1937 (42 U.S.C. 1437f(o)), notwithstanding

16 any provision to the contrary in that section,

17 if—

18 (i) the program is administered to

19 provide families with the option of contin20 ued assistance with tenant-based vouchers

21 if such a family chooses to move after the

22 initial year of occupancy; and

23 (ii) the public housing agency agrees

24 to refer eligible voucher holders to the

25 property when a vacancy occurs.
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1 (3) ELIGIBLE ACTIVITY.—The term ‘‘eligible

2 activity’’ means an activity that relates to the devel3 opment of affordable housing, including—

4 (A) the construction of new housing;

5 (B) the acquisition of real property;

6 (C) site preparation and improvement, in7 cluding demolition;

8 (D) substantial rehabilitation of existing

9 housing; and

10 (E) rental subsidy for not more than 3

11 years under a continued assistance rental sub12 sidy program.

13 (4) ELIGIBLE ENTITY.—The term ‘‘eligible enti14 ty’’ includes any public or private nonprofit or for15 profit entity, unit of local government, regional plan16 ning entity, and any other entity engaged in the de17 velopment of affordable housing, as determined by

18 the Secretary.

19 (5) ELIGIBLE INTERMEDIARY.—The term ‘‘eli20 gible intermediary’’ means—

21 (A) a nonprofit community development

22 corporation;

23 (B) a community development financial in24 stitution (as defined in section 103 of the Com-
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1 munity Development Banking and Financial In2 stitutions Act of 1994 (12 U.S.C. 4702));

3 (C) a State or local trust fund;

4 (D) any entity eligible for assistance under

5 section 4 of the HUD Demonstration Act of

6 1993 (42 U.S.C. 9816 note);

7 (E) a national, regional, or statewide non8 profit organization; and

9 (F) any other appropriate nonprofit entity,

10 as determined by the Secretary.

11 (6) EXTREMELY LOW-INCOME FAMILIES.—The

12 term ‘‘extremely low-income families’’ means very

13 low-income families (as defined in section 3(b) of the

14 United States Housing Act of 1937 (42 U.S.C.

15 1437a(b)) whose incomes do not exceed 30 percent

16 of the median family income for the area, as deter17 mined by the Secretary with adjustments for smaller

18 and larger families, except that the Secretary may

19 establish income ceilings that are higher or lower

20 than 30 percent of the median for the area if the

21 Secretary finds that such variations are necessary

22 because of unusually high or low family incomes.

23 (7) LOW-INCOME FAMILIES.—The term ‘‘low-in24 come families’’ has the same meaning as in section
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1 3(b) of the United States Housing Act of 1937 (42

2 U.S.C. 1437a(b)).

3 (8) NON-FEDERAL SOURCES.—Non-Federal

4 sources include—

5 (A) 50 percent of funds allocable to tax

6 credits allocated under section 42 of the Inter7 nal Revenue Code of 1986;

8 (B) 50 percent of revenue from mortgage

9 revenue bonds issued under section 143 of that

10 Code; and

11 (C) 50 percent of proceeds from the sale of

12 tax exempt bonds.

13 (9) SECRETARY.—The term ‘‘Secretary’’ means

14 the Secretary of Housing and Urban Development.

15 (10) STATE.—The term ‘‘State’’ has the same

16 meaning as in section 3(b) of the United States

17 Housing Act of 1937 (42 U.S.C. 1437a(b)).

18 (b) ALLOCATION TO STATES AND ELIGIBLE INTER19 MEDIARIES.—For fiscal year 2002 and each fiscal year

20 thereafter, of the total amount made available to the Sec21 retary from the Trust Fund under section 7102(c)—

22 (1) 75 percent shall be used by the Secretary

23 to award grants to States in accordance with sub24 section (c); and
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1 (2) 25 percent shall be used by the Secretary

2 to award grants to eligible intermediaries in accord3 ance with subsection (d).

4 (c) GRANTS TO STATES.—

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

6 from the amount made available for each fiscal year

7 under subsection (b)(1), the Secretary shall award

8 grants to States, in accordance with an allocation

9 formula established by the Secretary, based on the

10 pro rata share of each State of the total need among

11 all States for an increased supply of affordable hous12 ing, as determined on the basis of—

13 (A) the number and percentage of families

14 in the State that live in substandard housing;

15 (B) the number and percentage of families

16 in the State that pay more than 50 percent of

17 their annual income for housing costs;

18 (C) the number and percentage of persons

19 living at or below the poverty level in the State;

20 (D) the cost of developing or carrying out

21 substantial rehabilitation of housing in the

22 State;

23 (E) the age of the multifamily housing

24 stock in the State; and
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1 (F) such other factors as the Secretary de2 termines to be appropriate.

3 (2) GRANT AMOUNT.—The amount of a grant

4 award to a State under this subsection shall be equal

5 to the lesser of—

6 (A) 4 times the amount of assistance pro7 vided by the State from non-Federal sources;

8 and

9 (B) the allocation determined in accord10 ance with paragraph (1).

11 (3) AWARD OF STATE ALLOCATION TO CERTAIN

12 ENTITIES.—

13 (A) IN GENERAL.—If the amount provided

14 by a State from non-Federal sources is less

15 than 25 percent of the amount that would be

16 awarded to the State under this subsection

17 based on the allocation formula described in

18 paragraph (1), then not later than 60 days

19 after the date on which the Secretary deter20 mines that the State is not eligible for the full

21 allocation determined under paragraph (1), the

22 Secretary shall publish a notice regarding the

23 availability of the funds for which the State is

24 ineligible.
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1 (B) APPLICATIONS.—Not later than 9

2 months after the date of publication of a notice

3 of funding availability under subparagraph (A),

4 a nonprofit or public entity (or a consortium

5 thereof, which may include units of local gov6 ernment working together on a regional basis)

7 may submit to the Secretary an application for

8 the available assistance or a portion of the

9 available assistance, which application shall

10 include—

11 (i) a certification that the applicant

12 will provide assistance in an amount equal

13 to 25 percent of the amount of assistance

14 made available to the applicant under this

15 paragraph; and

16 (ii) an allocation plan that meets the

17 requirements of paragraph (4)(B) for use

18 or distribution in the State of any assist19 ance made available to the applicant under

20 this paragraph and the assistance provided

21 by the applicant for purposes of clause (i).

22 (C) AWARD OF ASSISTANCE.—The Sec23 retary shall award the amount that is not

24 awarded to a State by operation of paragraph

25 (2) to 1 or more applicants that meet the re-
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1 quirements of subparagraph (B) of this para2 graph that are selected by the Secretary based

3 on selection criteria, established by regulation

4 of the Secretary.

5 (4) DISTRIBUTION TO ELIGIBLE ENTITIES.—

6 (A) IN GENERAL.—Of the amount that a

7 State receives under a grant award under this

8 subsection and the assistance provided by the

9 State from non-Federal sources for purposes of

10 paragraph (2)(A) to eligible entities for the pur11 pose of assisting those entities in carrying out

12 eligible activities in the State, the State shall

13 distribute—

14 (i) 75 percent to eligible entities for

15 eligible activities relating to the develop16 ment of affordable housing for rental by

17 extremely low-income families in the State;

18 and

19 (ii) 25 percent to eligible entities for

20 eligible activities relating to the develop21 ment of affordable housing for rental by

22 low-income families in the State, or for

23 homeownership assistance for low-income

24 families in the State.
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1 (B) ALLOCATION PLAN.—Each State shall,

2 after giving notice to the public, an opportunity

3 for public comment, and consideration of public

4 comments received, establish an allocation plan

5 for the distribution of assistance under this

6 paragraph, which plan shall be submitted to the

7 Secretary and shall be made available to the

8 public by the State, and which shall include—

9 (i) application requirements for eligi10 ble entities seeking to receive assistance

11 under this paragraph, including a require12 ment that each application include—

13 (I) a certification by the appli14 cant that any housing developed with

15 assistance under this paragraph will

16 remain affordable for extremely low17 income families or low-income fami18 lies, as applicable, for not less than 40

19 years;

20 (II) a certification by the appli21 cant that the tenant contribution to22 wards rent for a family that resides in

23 a unit developed with assistance under

24 this paragraph will not exceed 30 per-
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1 cent of the adjusted income of that

2 family; and

3 (III) a certification by the appli4 cant that the owner of a project in

5 which any housing developed with as6 sistance under this paragraph is lo7 cated will make a percentage of units

8 in the project available to families as9 sisted under the voucher program

10 under section 8(o) of the United

11 States Housing Act of 1937 (42

12 U.S.C. 1437f(o)) on the same basis as

13 other families eligible for the housing

14 (except that only the expected share

15 of rent of the voucher holder shall be

16 considered), which percentage shall

17 not be less than the percentage of the

18 total cost of developing or rehabili19 tating the project that is funded with

20 assistance under this paragraph; and

21 (ii) factors for consideration in select22 ing among applicants that meet the appli23 cation requirements under clause (i), which

24 factors shall give preference to applicants

25 based on—
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1 (I) the amount of assistance for

2 the eligible activities leveraged by the

3 applicant from private and other non4 Federal sources, including assistance

5 made available under section 8 of the

6 United States Housing Act of 1937

7 (42 U.S.C. 1437f) that is devoted to

8 the project in which the housing to be

9 developed with assistance under this

10 paragraph is located;

11 (II) the extent of local assistance

12 that will be provided in carrying out

13 the eligible activities, including—

14 (aa) financial assistance;

15 and

16 (bb) the extent to which the

17 applicant has worked with the

18 unit of local government in which

19 the housing will be located to ad20 dress issues of siting and exclu21 sionary zoning or other policies

22 that are barriers to affordable

23 housing;
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1 (III) the degree to which the de2 velopment in which the housing will

3 be located is mixed-income;

4 (IV) whether the housing will be

5 located in a census tract in which the

6 poverty rate is less than 20 percent;

7 (V) whether the housing will be

8 located in a community undergoing

9 revitalization;

10 (VI) the extent of employment

11 and other opportunities for low-in12 come families in the area in which the

13 housing will be located; and

14 (VII) the extent to which the ap15 plicant demonstrates the ability to

16 maintain units as affordable for ex17 tremely low-income or low-income

18 families, as applicable, through the

19 use of assistance made available under

20 this paragraph, assistance leveraged

21 from non-Federal sources, assistance

22 made available under section 8 of the

23 United States Housing Act of 1937

24 (42 U.S.C. 1437f), State or local as25 sistance, programs to increase tenant
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1 income, cross-subsidization, and any

2 other resources.

3 (C) FORMS OF ASSISTANCE.—

4 (i) IN GENERAL.—Assistance distrib5 uted under this paragraph may be in the

6 form of capital grants, non-interest bearing

7 or low-interest loans or advances, deferred

8 payment loans, guarantees, and any other

9 forms of assistance approved by the Sec10 retary.

11 (ii) REPAYMENTS.—If a State awards

12 assistance under this paragraph in the

13 form of a loan or other mechanism by

14 which funds are later repaid to the State,

15 any repayments received by the State shall

16 be distributed by the State in accordance

17 with the allocation plan described in sub18 paragraph (B) during the following fiscal

19 year.

20 (D) COORDINATION WITH OTHER ASSIST21 ANCE.—In distributing assistance under this

22 paragraph, each State shall, to the maximum

23 extent practicable, coordinate the distribution

24 with the provision of other affordable housing

25 assistance by the State, including—
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1 (i) housing credit dollar amounts allo2 cated by the State under section 42(h) of

3 the Internal Revenue Code of 1986;

4 (ii) assistance made available under

5 the HOME Investment Partnerships Act

6 (42 U.S.C. 12721 et seq.) or the commu7 nity development block grant program; and

8 (iii) private activity bonds.

9 (d) NATIONAL COMPETITION.—

10 (1) IN GENERAL.—From the amount made

11 available for each fiscal year under subsection

12 (b)(2), the Secretary shall award grants on a com13 petitive basis to eligible intermediaries, which grants

14 shall be used in accordance with paragraph (3) of

15 this subsection.

16 (2) APPLICATION REQUIREMENTS AND SELEC17 TION CRITERIA.—The Secretary, by regulation, shall

18 establish application requirements and selection cri19 teria for the award of competitive grants to eligible

20 intermediaries under this subsection, which criteria

21 shall include—

22 (A) the ability of the eligible intermediary

23 to meet housing needs of low-income families on

24 a national or regional scope;
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1 (B) the capacity of the eligible inter2 mediary to use the grant award in accordance

3 with paragraph (3), based on the past perform4 ance and management of the applicant; and

5 (C) the extent to which the eligible inter6 mediary has leveraged funding from private and

7 other non-Federal sources for the eligible activi8 ties.

9 (3) USE OF GRANT AWARD.—

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

11 subparagraph (B), of the amount of a grant

12 made available under this subsection, an eligible

13 intermediary shall ensure that—

14 (i) 75 percent shall be used for eligi15 ble activities relating to the development of

16 affordable housing for rental by extremely

17 low-income families; and

18 (ii) 25 percent shall be used for eligi19 ble activities relating to the development of

20 affordable housing for rental by low-income

21 families, or for homeownership assistance

22 for low-income families.

23 (B) EXCEPTION.—

24 (i) IN GENERAL.—If a grant made

25 available under this subsection is used for
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1 a project described in clause (ii), an eligi2 ble intermediary may use that amount for

3 eligible activities relating to the develop4 ment of housing for rental by families

5 whose incomes are less than 60 percent of

6 the area median income, and for home7 ownership activities for families whose in8 comes are less than 80 percent of area me9 dian income.

10 (ii) PROJECT CONTRIBUTING TO A

11 CONCERTED COMMUNITY REVITALIZATION

12 PLAN.—A project is described in this

13 clause if—

14 (I) it is located in a community

15 undergoing concerted revitalization

16 and is contributing to a community

17 revitalization plan; and

18 (II) it is located in a census tract

19 in which—

20 (aa) the median household

21 income is less than 60 percent of

22 the area median income; or

23 (bb) the rate of poverty is

24 greater than 20 percent.
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1 (C) PLAN OF USE.—Each eligible inter2 mediary that receives a grant under this sub3 section shall establish a plan for the use or dis4 tribution of the amount made available under

5 the grant, which plan shall be submitted to the

6 Secretary and shall include information relating

7 to the manner in which the eligible intermediary

8 will either use or distribute that amount,

9 including—

10 (i) a certification that assistance

11 under this subsection will be used to sup12 plement assistance leveraged from private

13 and other non-Federal sources, including

14 assistance made available under section 8

15 of the United States Housing Act of 1937

16 (42 U.S.C. 1437f) that is devoted to the

17 project in which the housing to be devel18 oped is located;

19 (ii) a certification that local assistance

20 will be provided in carrying out the eligible

21 activities, which may include—

22 (I) financial assistance; and

23 (II) a good faith effort to work

24 with the unit of local government in

25 which the housing will be located to
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1 address issues of siting and exclu2 sionary zoning or other policies that

3 are barriers to affordable housing;

4 (iii) a certification that any housing

5 developed with assistance under this sub6 section will remain affordable for extremely

7 low-income families or low-income families,

8 as applicable, for not less than 40 years;

9 (iv) a certification that any housing

10 developed by the applicant with assistance

11 under this subsection will be located—

12 (I) in a mixed-income develop13 ment in a census tract having a pov14 erty rate of not more than 20 percent,

15 and near employment and other op16 portunities for low-income families; or

17 (II) in a community undergoing

18 revitalization;

19 (v) a certification that the tenant con20 tribution toward rent for a family residing

21 in a unit developed with assistance under

22 this paragraph will not exceed 30 percent

23 of the adjusted income of that family; and

24 (vi) a certification by the applicant

25 that the owner of a project in which any
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1 housing developed with assistance under

2 this subsection is located will make a per3 centage of units in the project available to

4 families assisted under the voucher pro5 gram under section 8(o) of the United

6 States Housing Act of 1937 (42 U.S.C.

7 1437f(o)) on the same basis as other fami8 lies eligible for the housing (except that

9 only the expected share of rent of the

10 voucher holder shall be considered), which

11 percentage shall not be less than the per12 centage of the total cost of developing or

13 rehabilitating the project that is funded

14 with assistance under this subsection.

15 (D) FORMS OF ASSISTANCE.—

16 (i) IN GENERAL.—An eligible inter17 mediary may distribute the amount made

18 available under a grant under this sub19 section in the form of capital grants, non20 interest bearing or low-interest loans or

21 advances, deferred payment loans, guaran22 tees, and other forms of assistance.

23 (ii) REPAYMENTS.—If an eligible

24 intermediary awards assistance under this

25 subsection in the form of a loan or other
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1 mechanism by which funds are later repaid

2 to the eligible intermediary, any repay3 ments received by the eligible intermediary

4 shall be distributed by the eligible inter5 mediary in accordance with the plan of use

6 described in subparagraph (C) during the

7 following fiscal year.

8 SEC. 7104. REGULATIONS.

9 Not later than 6 months after the date of enactment

10 of this Act, the Secretary of Housing and Urban Develop11 ment shall promulgate regulations to carry out this sub12 title.

13 Subtitle C—Housing Preservation

14 Matching Grants

15 SEC. 7201. SHORT TITLE.

16 This subtitle may be cited as the ‘‘Housing Preserva17 tion Matching Grant Act of 2001’’.

18 SEC. 7202. FINDINGS AND PURPOSES.

19 (a) FINDINGS.—Congress finds that—

20 (1) more than 55,300 affordable housing dwell21 ing units in the United States have been lost

22 through termination of low income affordability re23 quirements, which usually involves the prepayment

24 of the outstanding principal balance under the mort25 gage on the project in which such units are located;
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1 (2) more than 265,000 affordable housing

2 dwelling units in the United States are at risk of

3 prepayment;

4 (3) the loss of the privately owned, federally as5 sisted affordable housing, which is occurring during

6 a period when rents for unassisted housing are in7 creasing and few units of additional affordable hous8 ing are being developed, will cause unacceptable

9 harm on current tenants of affordable housing and

10 will precipitate a national crisis in the supply of

11 housing for low-income households;

12 (4) the demand for affordable housing far ex13 ceeds the supply of affordable housing, as evidenced

14 by studies in 1998 that found that—

15 (A) 5,300,000 households (one-seventh of

16 all renters in the Nation) have worst-case hous17 ing needs; and

18 (B) the number of families with at least

19 one full-time worker and having worst-case

20 housing needs increased from 1991 to 1995 by

21 265,000 to almost 1,400,000 (a 24 percent in22 crease);

23 (5) the shortage of affordable housing in the

24 United States reached a record high in 1995, when

25 the number of low-income households exceeded the
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1 number of low-cost rental dwelling units by

2 4,400,000;

3 (6) between 1990 and 1995, the shortage of af4 fordable housing in the United States increased by

5 1,000,000 dwelling units, as the supply of low-cost

6 units decreased by 100,000 and the number of low7 income renter households increased by 900,000;

8 (7) there are nearly 2 low-income renters in the

9 United States for every low-cost rental dwelling unit;

10 (8) 2 of every 3 low-income renters receive no

11 housing assistance, and approximately 2,000,000

12 low-income households remain on waiting lists for

13 affordable housing;

14 (9) the shortage of affordable housing dwelling

15 units results in low-income households that are not

16 able to acquire low-cost rental units paying large

17 proportions of their incomes for rent; and

18 (10) in 1995, 82 percent of low-income renter

19 households were paying more than 30 percent of

20 their incomes for rent and utilities.

21 (b) PURPOSES.—The purposes of this subtitle are—

22 (1) to promote the preservation of affordable

23 housing units by providing matching grants to

24 States that have developed and funded programs for

25 the preservation of privately owned housing that is
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1 affordable to low-income families and persons and

2 was produced for such purpose with Federal assist3 ance;

4 (2) to minimize the involuntary displacement of

5 tenants who are currently residing in such housing,

6 many of whom are elderly or disabled persons; and

7 (3) to continue the partnerships among the

8 Federal Government, State and local governments,

9 and the private sector in operating and assisting

10 housing that is affordable to low-income Americans.

11 SEC. 7203. DEFINITIONS.

12 For purposes of this subtitle, the following definitions

13 shall apply:

14 (1) LOW-INCOME AFFORDABILITY RESTRIC15 TION.—The term ‘‘low-income affordability restric16 tion’’ means, with respect to a housing project, any

17 limitation imposed by regulation or regulatory agree18 ment on rents for tenants of the project, rent con19 tributions for tenants of the project, or income-eligi20 bility for occupancy in the project.

21 (2) PROJECT-BASED ASSISTANCE.—The term

22 ‘‘project-based assistance’’ has the same meaning as

23 in section 16(c) of the United States Housing Act

24 of 1937 (42 U.S.C. 1437n(c)), except that the term
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1 includes assistance under any successor program to

2 any program referred to in that section.

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

4 the Secretary of Housing and Urban Development.

5 (4) STATE.—The term ‘‘State’’ means each of

6 the several States of the United States, the District

7 of Columbia, the Commonwealth of Puerto Rico, the

8 Commonwealth of the Northern Mariana Islands,

9 Guam, the Virgin Islands, American Samoa, and

10 any other territory or possession of the United

11 States.

12 SEC. 7204. AUTHORITY.

13 The Secretary shall, to the extent that amounts are

14 made available pursuant to section 7211, make grants

15 under this subtitle to States for low-income housing pres16 ervation.

17 SEC. 7205. APPLICATIONS.

18 (a) IN GENERAL.—Each State that seeks a grant

19 under this subtitle shall submit an application to the Sec20 retary (through an appropriate State agency) at such

21 time, in such manner, and accompanied by such informa22 tion as the Secretary may reasonably require.

23 (b) CONTENTS.—Each application submitted pursu24 ant to subsection (a) shall contain any information and

25 certifications necessary for the Secretary to determine
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1 whether the State is eligible to receive a grant under this

2 subtitle.

3 SEC. 7206. USE OF GRANTS.

4 (a) IN GENERAL.—Amounts from grants made under

5 this subtitle may be used by States only for assistance for

6 acquisition, preservation incentives, operating costs, and

7 capital expenditures for a housing project that meets the

8 requirements of subsection (b), (c), or (d).

9 (b) PROJECTS WITH HUD-INSURED MORTGAGES.—

10 A project meets the requirements of this subsection only

11 if—

12 (1) the project is financed by a loan or mort13 gage that is—

14 (A) insured or held by the Secretary under

15 section 221(d)(3) of the National Housing Act

16 (12 U.S.C. 1715l(d)(3)) and the project is re17 ceiving loan management assistance under sec18 tion 8 of the United States Housing Act of

19 1937 (42 U.S.C. 1437f) due to a conversion

20 from section 101 of the Housing and Urban

21 Development Act of 1965 (12 U.S.C. 1701s);

22 (B) insured or held by the Secretary and

23 bears interest at a rate determined under the

24 proviso of section 221(d)(5) of the National

25 Housing Act (12 U.S.C. 1715l(d)(5));
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1 (C) insured, assisted, or held by the Sec2 retary or a State or State agency under section

3 236 of the National Housing Act (12 U.S.C.

4 1715z–1); or

5 (D) held by the Secretary and formerly in6 sured under a program referred to in subpara7 graph (A), (B), or (C);

8 (2) with respect to the mortgage referred to in

9 paragraph (1), the project is subject to an uncondi10 tional waiver of—

11 (A) all rights to any prepayment of the

12 mortgage; and

13 (B) all rights to any voluntary termination

14 of the mortgage insurance contract for the

15 mortgage; and

16 (3) the owner of the project has entered into

17 binding commitments (applicable to any subsequent

18 owner) to extend all low-income affordability restric19 tions for the project, including any such restrictions

20 imposed because of any contract for project-based

21 assistance for the project.

22 (c) PROJECTS WITH SECTION 8 PROJECT-BASED AS23 SISTANCE.—A project meets the requirements of this sub24 section only if—
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1 (1) the project is subject to a contract for

2 project-based assistance; and

3 (2) the owner of the project has entered into

4 binding commitments (applicable to any subsequent

5 owner)—

6 (A) to extend the project-based assistance

7 for the maximum period allowable under law

8 (subject to the availability of amounts for such

9 purpose); and

10 (B) to extend any low-income affordability

11 restrictions applicable to the project in connec12 tion with the project-based assistance.

13 (d) PROJECTS PURCHASED BY RESIDENTS.—A

14 project meets the requirements of this subsection only if

15 the project—

16 (1) is or was eligible low-income housing (as de17 fined in section 229 of the Low-Income Housing

18 Preservation and Resident Homeownership Act of

19 1990 (12 U.S.C. 4119); and

20 (2) has been purchased by a resident council for

21 the housing, or is approved by the Secretary for

22 such purchase, for conversion to homeownership

23 housing under a resident homeownership program

24 meeting the requirements of section 226 of the Low-
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1 Income Housing Preservation and Resident Home2 ownership Act of 1990 (12 U.S.C. 4116).

3 (e) COMBINATION OF ASSISTANCE.—Notwith4 standing subsection (a), any project that is otherwise eligi5 ble for assistance with grant amounts provided under this

6 subtitle because the project meets the requirements under

7 subsection (b) or (c), and that also meets the requirements

8 under paragraph (1) of the other of such subsections, shall

9 be eligible for assistance under this subtitle only if the

10 project complies with all of the requirements under such

11 other subsection.

12 SEC. 7207. GRANT AMOUNT LIMITATION.

13 The Secretary shall limit the portion of the aggregate

14 amount of grants under this subtitle made available for

15 any fiscal year that may be provided to a single State

16 based upon the proportion of the need of that State (as

17 determined by the Secretary) for assistance under this

18 subtitle to the aggregate need among all States approved

19 for assistance under this subtitle for that fiscal year.

20 SEC. 7208. MATCHING REQUIREMENTS.

21 (a) IN GENERAL.—The Secretary may not make a

22 grant under this subtitle to any State for any fiscal year

23 in an amount that exceeds twice the amount that the State

24 certifies, as the Secretary shall require, that the State will

25 contribute for such fiscal year, or has contributed since
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1 January 1, 2001, from non-Federal sources for the pur2 poses under section 7206(a).

3 (b) TREATMENT OF PREVIOUS CONTRIBUTIONS.—

4 Any portion of amounts contributed after January 1,

5 2001, that are counted for the purpose of meeting the re6 quirement under subsection (a) for a fiscal year may not

7 be counted for such purpose for any subsequent fiscal

8 year.

9 (c) TREATMENT OF TAX CREDITS.—Tax credits pro10 vided under section 42 of the Internal Revenue Code of

11 1986, and proceeds from the sale of tax-exempt bonds by

12 any State or local government entity shall not be consid13 ered non-Federal sources for purposes of this section.

14 SEC. 7209. TREATMENT OF SUBSIDY LAYERING REQUIRE15 MENTS.

16 Neither section 7208 nor any other provision of this

17 subtitle may be construed to prevent the use of tax credits

18 provided under section 42 of the Internal Revenue Code

19 of 1986, in connection with housing assisted with grant

20 amounts provided under this subtitle, to the extent that

21 such use is in accordance with section 102(d) of the De22 partment of Housing and Urban Development Reform Act

23 of 1989 (42 U.S.C. 3545(d)) and section 911 of the Hous24 ing and Community Development Act of 1992 (42 U.S.C.

25 3545 note).
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1 SEC. 7210. REGULATIONS.

2 The Secretary may issue regulations to carry out this

3 subtitle.

4 SEC. 7211. AUTHORIZATION OF APPROPRIATIONS.

5 There are authorized to be appropriated for grants

6 under this subtitle such sums as are necessary for each

7 of fiscal years 2002 through 2006.

8 TITLE VIII—SAFE START

9 Subtitle A—Promotion of

10 Permanency for Children

11 SEC. 8001. REIMBURSEMENT FOR PREVENTIVE, PROTEC12 TIVE, CRISIS, PERMANENCY, INDEPENDENT

13 LIVING, AND POST-PERMANENCY SERVICES

14 AND ACTIVITIES.

15 (a) IN GENERAL.—Part E of title IV of the Social

16 Security Act (42 U.S.C. 670 et seq.) is amended by insert17 ing after section 474 the following:

18 ‘‘SEC. 474A. PAYMENTS FOR PREVENTIVE, PROTECTIVE,

19 CRISIS, PERMANENCY, INDEPENDENT LIV20 ING, AND POST-PERMANENCY SERVICES AND

21 ACTIVITIES.

22 ‘‘(a) IN GENERAL.—In addition to any other pay23 ments made to a State under this title, for each quarter

24 beginning after September 30, 2001, the Secretary shall

25 pay each State which has a plan approved under this part

26 and that opts to receive payments under this section, a
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1 payment, subject to subsection (e), equal to the Federal

2 medical assistance percentage of the costs of providing the

3 services and activities described in subsection (b) in order

4 to ensure that the timelines set forth in section 475(5),

5 as added by the Adoption and Safe Families Act of 1997,

6 can be honored and the goals of safety and permanence

7 for children will be realized.

8 ‘‘(b) SERVICES AND ACTIVITIES DESCRIBED.—The

9 services and activities described in this subsection are as

10 follows:

11 ‘‘(1) PREVENTIVE, PROTECTIVE, AND CRISIS

12 SERVICES.—

13 ‘‘(A) IN GENERAL.—Preventive, protective,

14 and crisis services for children and parents who

15 come to the attention of the State or a local

16 agency and whose cases are referred for assess17 ment or investigation because of a concern

18 about the risk of abuse or neglect.

19 ‘‘(B) REQUIREMENTS.—In the case of

20 services other than investigation and

21 assessment—

22 ‘‘(i) the agency and the parents must

23 have agreed to the provision of such serv24 ices in the case plan for the family; and
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1 ‘‘(ii) funding for such services under

2 this part shall be provided for not more

3 than 18 months within a 48 month period,

4 consistent with the exception provided in

5 subsection (c).

6 ‘‘(2) PERMANENCY SERVICES.—Permanency

7 services for children and parents to help ensure that

8 when a child is placed in foster care, prompt deci9 sions can be made about the appropriate perma10 nency plan for the child, but only if the agency and

11 the parents have agreed to the provision of such

12 services to the parents in the case plan for the fam13 ily and funding for such services under this part

14 (other than foster care maintenance payments under

15 section 472) will be provided for not more than 18

16 months within a 48 month period, consistent with

17 the exception provided in subsection (c).

18 ‘‘(3) POST-PERMANENCY SERVICES.—

19 ‘‘(A) IN GENERAL.—Post-permanency

20 services for children and their parents or other

21 caregivers when children have been in foster

22 care funded under this part and are returned to

23 their birth families, are in adoptive families, or

24 are placed permanently with a legal guardian or

25 a fit and willing relative, if the agency and the
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1 child’s caregivers have agreed to the provision

2 of such services in the case plan for the family,

3 but only to the extent that—

4 ‘‘(i) with respect to such services for

5 children returned to their birth families,

6 such services are provided for not more

7 than 18 months within a 48 month period,

8 consistent with the exception provided in

9 subsection (c); and

10 ‘‘(ii) with respect to such services for

11 children who are adopted from foster care

12 or placed permanently with a legal guard13 ian or a fit and willing relative, such serv14 ices are provided on an as-needed basis

15 consistent with the child and family service

16 plan.

17 ‘‘(4) APPLICATION TO CERTAIN CHIL18 DREN.—With respect to the services described

19 in paragraph (1), (2), or (3) that are provided

20 to children who have come to the attention of

21 the State or a local agency before the date of

22 enactment of the Leave No Child Behind Act of

23 2001, the 18-month time limit for such services

24 for such children shall commence on a date de-
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1 termined by the State that is not more than

2 180 days after such date of enactment.

3 ‘‘(5) INDEPENDENT LIVING SERVICES.—Inde4 pendent living services to help children who are like5 ly to remain in foster care until attaining 18 years

6 of age and children who are former foster care re7 cipients who have not attained 21 years of age make

8 the transition to self-sufficiency by providing services

9 such as assistance in obtaining a high school di10 ploma, a General Equivalency Diploma, or post-sec11 ondary education or training, career exploration, vo12 cational training, job placement and retention, train13 ing in daily living skills, budgeting and financial

14 management skills, substance abuse prevention, pre15 ventive health activities, financial, housing, coun16 seling, personal or emotional support (through inter17 action with dedicated adults), and other appropriate

18 support services.

19 ‘‘(c) SAFETY EXCEPTION.—

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

21 beginning with fiscal year 2003, a State may exempt

22 up to the number of children and parents receiving

23 any of the services described in subsection (b) that

24 equals 20 percent of the number of such children

25 and parents who received such services during the
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1 preceding fiscal year, from the time limits specified

2 for such services in such subsection in order to help

3 ensure that children will be served safely and appro4 priately in accordance with their individual needs.

5 ‘‘(2) BIENNIAL REVIEW.—

6 ‘‘(A) EXCEPTED CASES.—A State shall bi7 ennially review the cases excepted under para8 graph (1), in accordance with guidelines devel9 oped by the Secretary, to ensure the continued

10 appropriateness of the exceptions and to deter11 mine the circumstances under which such ex12 ceptions have been made, and shall report the

13 findings of the review to the Secretary. Such re14 port shall include a recommendation, if nec15 essary, that the Secretary allow the State to ad16 just the maximum percentage for such excep17 tions to address changed circumstances. A

18 State may proceed in accordance with the rec19 ommendation unless the Secretary disapproves

20 the recommendation within 60 days of the re21 ceipt of the recommendation.

22 ‘‘(B) FOSTER CARE CHILDREN.—In addi23 tion to the review required under subparagraph

24 (A), a State shall biennially review, in accord25 ance with guidelines developed by the Secretary,
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1 the cases of children who have remained in fos2 ter care and for which foster care maintenance

3 payments (as defined in section 474(4)) have

4 been made for more than 18 months and sub5 mit a report on such review to the Secretary.

6 Such report shall describe, with respect to each

7 such child, the child’s age, special needs (if

8 any), type of placement, and the length of time

9 that the child has been in foster care.

10 ‘‘(C) REPORT.—Not later than January 1,

11 2006, and January 1 of every other year there12 after, the Secretary shall submit a report to

13 Congress on the reviews and recommendations

14 required under subparagraphs (A) and (B) for

15 the preceding fiscal year. Such report shall in16 clude a summary of the Secretary’s findings on

17 the appropriateness of the safety exceptions and

18 the States’ progress in meeting the needs of the

19 children who receive services or foster care for

20 more than 18 months.

21 ‘‘(d) NO PAYMENT FOR SERVICES REIMBURSABLE

22 UNDER TITLE XIX.—No payments may be made under

23 this section for any services described in subsection (b)

24 that the State is reimbursed for under title XIX.
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1 ‘‘(e) MAINTENANCE OF EFFORT.—A State may not

2 receive payments under this section unless, for fiscal year

3 2002 and each fiscal year thereafter, the total State and

4 local expenditures for services and activities described in

5 subsection (b) for that fiscal year equals or exceeds the

6 total of such expenditures for fiscal year 2001.’’.

7 (b) STATE PLAN AMENDMENT.—Section 471(a) of

8 such Act (42 U.S.C. 671(a)) is amended—

9 (1) in paragraph (23)(B), by striking ‘‘and’’ at

10 the end;

11 (2) in paragraph (24), by striking the period

12 and inserting ‘‘; and’’; and

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

14 ‘‘(25) provides that the State shall describe—

15 ‘‘(A) prior to the beginning of a fiscal year,

16 the types of preventive, protective, crisis, per17 manency, independent living, and post-perma18 nency services that the State expects to be

19 made available under the plan during that fiscal

20 year;

21 ‘‘(B) the populations expected to be pro22 vided such services during the fiscal year;

23 ‘‘(C) notwithstanding paragraph (3), the

24 geographic areas in the State in which the serv-
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1 ices are likely to be available during the fiscal

2 year;

3 ‘‘(D) the role of public and nonprofit pri4 vate agencies and community-based organiza5 tions referred to in section 432(b)(1) in the

6 planning and decisionmaking regarding which

7 such services would be provided during the fis8 cal year and how the services to be provided

9 would promote safety and permanence for chil10 dren; and

11 ‘‘(E) prior to the beginning of the third

12 fiscal year of implementation of such services,

13 and prior to the beginning of each fiscal year

14 thereafter, what the State proposes to do to re15 duce the length of time families need to receive

16 services from the State agency.’’.

17 SEC. 8002. CHILD AND FAMILY SERVICE PLAN AND CASE

18 REVIEWS.

19 (a) IN GENERAL.—Section 471(a)(16) of the Social

20 Security Act (42 U.S.C. 671(a)(16)) is amended—

21 (1) by inserting ‘‘(A)’’ after ‘‘(16)’’;

22 (2) by adding ‘‘and’’ after the semicolon; and

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

24 ‘‘(B)(i) provides for the development of a child

25 and family service plan and for case reviews by a cit-
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1 izen review board or an administrative review body

2 no less frequently than once every 6 months for each

3 child and family member receiving preventive, pro4 tective, crisis, permanency, independent living, or

5 post-permanency services; and

6 ‘‘(ii) provides that each child and family service

7 plan developed under clause (i) shall describe the

8 steps taken to assure the safety of the child, provide

9 the services that are needed and, where applicable,

10 have been agreed to by the agency and the parent,

11 the extent of progress that has been made toward

12 meeting the service needs of the child and the fam13 ily, and the continuing necessity for and appro14 priateness of the services being provided with respect

15 to—

16 ‘‘(I) each child, parent, or caregiver who

17 comes to the attention of the State agency and

18 whose case is referred for assessment or inves19 tigation because of a concern about the risk of

20 abuse or neglect, and who receives preventive,

21 protective, crisis, permanency, independent liv22 ing, or post-permanency services under this

23 part; and

24 ‘‘(II) each child, parent, or caregiver who

25 receives post-permanency services under this
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1 part when a child is returned to the birth fam2 ily, placed in an adoptive family, or placed per3 manently with a legal guardian or a fit and

4 willing relative.’’

5 (b) EFFECTIVE DATE.—The amendments made by

6 this section take effect on October 1, 2001.

7 SEC. 8003. KINSHIP GUARDIANSHIP ASSISTANCE PAY8 MENTS FOR CHILDREN.

9 (a) IN GENERAL.—Part E of title IV of the Social

10 Security Act (42 U.S.C. 670 et seq.) is amended by insert11 ing after section 472 the following:

12 ‘‘SEC. 472A. KINSHIP GUARDIANSHIP ASSISTANCE PAY13 MENTS FOR CHILDREN.

14 ‘‘(a) IN GENERAL.—Each State with a plan approved

15 under this part may, at State option, enter into kinship

16 guardianship assistance agreements to provide kinship

17 guardianship assistance payments on behalf of children to

18 grandparents and other relatives who have assumed legal

19 guardianship (as defined in section 475(7)) of the children

20 for whom they have cared as foster parents and for whom

21 they have committed to care for on a permanent basis.

22 ‘‘(b) KINSHIP GUARDIANSHIP ASSISTANCE AGREE23 MENT.—

24 ‘‘(1) IN GENERAL.—In order to receive pay25 ments under this section, a State shall—
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1 ‘‘(A) negotiate and enter into a written,

2 binding, kinship guardianship assistance agree3 ment with the prospective relative guardian of

4 a child that meets the requirements of this sub5 section; and

6 ‘‘(B) provide the prospective relative

7 guardian with a copy of the agreement.

8 ‘‘(2) MINIMUM REQUIREMENTS.—The agree9 ment shall specify, at a minimum—

10 ‘‘(A) the amount of, and manner in which,

11 each kinship guardianship assistance payment

12 will be provided under the agreement;

13 ‘‘(B) the additional services and assistance

14 that the child and relative guardian will be eli15 gible for under the agreement;

16 ‘‘(C) the procedure by which the relative

17 guardian may apply for additional services as

18 needed, provided the agency and relative guard19 ian agree on the additional services as specified

20 in the case plan; and

21 ‘‘(D) subject to paragraph (3), that the

22 State will pay the total cost of nonrecurring ex23 penses associated with obtaining legal guardian24 ship of the child.
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1 ‘‘(2) INTERSTATE APPLICATION.—The agree2 ment shall provide—

3 ‘‘(A) that the agreement shall remain in

4 effect without regard to the State residency of

5 the kinship guardian; and

6 ‘‘(B) for the protection of the interests of

7 the child in any case where the kinship guard8 ian and the child move to another State while

9 the agreement is in effect.

10 ‘‘(3) NO AFFECT ON FEDERAL REIMBURSE11 MENT.—Nothing in paragraph (1)(D) shall be con12 strued as affecting the ability of the State to obtain

13 reimbursement from the Federal Government for

14 costs described in that paragraph.

15 ‘‘(c) KINSHIP GUARDIANSHIP ASSISTANCE PAY16 MENT.—

17 ‘‘(1) IN GENERAL.—The kinship guardianship

18 assistance payment shall be based on consideration

19 of the needs of the relative guardian and of the child

20 and shall be at least equal to the amount of the fos21 ter care maintenance payment for which the child

22 would have been eligible if the child remained in fos23 ter care. The payment may be readjusted periodi24 cally based on relevant changes in such needs.

25 ‘‘(2) LIMITATION.—
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1 ‘‘(A) IN GENERAL.—Except as provided in

2 subparagraph (B), no kinship guardianship as3 sistance payment may be made to a relative

4 guardian for any child who has attained age 18.

5 ‘‘(B) EXCEPTIONS.—A kinship guardian6 ship assistance payment may be made to a rel7 ative guardian with respect to a child who—

8 ‘‘(i) is a full-time student in a sec9 ondary school or in the equivalent level of

10 a vocational or technical training program

11 and has not attained age 19; or

12 ‘‘(ii) with respect to a child who the

13 State determines has a mental or physical

14 disability that warrants the continuation of

15 assistance to age 21.

16 ‘‘(d) CHILD’S ELIGIBILITY FOR A KINSHIP GUARD17 IANSHIP ASSISTANCE PAYMENT.—

18 ‘‘(1) IN GENERAL.—A child is eligible for a kin19 ship guardianship assistance payment under this

20 section if the State agency determines the following:

21 ‘‘(A) The child has been—

22 ‘‘(i) removed from his or her home

23 pursuant to a voluntary placement agree24 ment or as a result of a judicial determina25 tion to the effect that continuation in the
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1 home would be contrary to the welfare of

2 the child; and

3 ‘‘(ii) under the care of the State agen4 cy for the 12-month period ending on the

5 date of such agency determination.

6 ‘‘(B) Being returned home or adopted are

7 not appropriate permanency options for the

8 child.

9 ‘‘(C) The child demonstrates a strong at10 tachment to the prospective relative guardian

11 and the relative guardian has a strong commit12 ment to caring permanently for the child.

13 ‘‘(D) With respect to a child who has at14 tained age 14, the child has been consulted re15 garding the kinship guardianship arrangement.

16 ‘‘(2) TREATMENT OF SIBLINGS.—With respect

17 to a child who is described in paragraph (1) whose

18 sibling or siblings are not so described—

19 ‘‘(A) the child and any sibling of the child

20 may be placed in the same kinship guardianship

21 arrangement if the State agency and the rel22 ative agree on the appropriateness of the ar23 rangement for the siblings; and
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1 ‘‘(B) kinship guardianship assistance pay2 ments may be paid for the child and each sib3 ling so placed.’’.

4 (b) CONFORMING AMENDMENTS.—

5 (1) STATE PLAN REQUIREMENT.—Section

6 471(a)(20) of such Act (42 U.S.C. 671(a)(20) is

7 amended by striking ‘‘before the foster or adoptive

8 parent may be finally approved for placement of a

9 child on whose behalf foster care maintenance pay10 ments or adoption assistance payments’’ and insert11 ing ‘‘or relative guardian before the foster or adop12 tive parent or relative guardian may be finally ap13 proved for placement of a child on whose behalf fos14 ter care maintenance payments, adoption assistance

15 payments, or kinship guardianship assistance pay16 ments’’.

17 (2) DEFINITIONS.—Section 475(1) of such Act

18 (42 U.S.C. 675(1)) is amended by adding at the end

19 the following:

20 ‘‘(F) In the case of a child with respect to

21 whom the permanency plan is placement with a

22 relative and receipt of kinship guardianship as23 sistance payments under section 472A, a de24 scription of—
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1 ‘‘(i) the steps that the agency has

2 taken to determine that it is not appro3 priate for the child to be returned home or

4 adopted;

5 ‘‘(ii) the reasons why a permanent

6 placement with a fit and willing relative

7 through a kinship guardianship assistance

8 arrangement is in the child’s best interests;

9 ‘‘(iii) the ways in which the child

10 meets the eligibility requirements for a kin11 ship guardianship assistance payment;

12 ‘‘(iv) the efforts the agency has made

13 to discuss adoption by the child’s relative

14 foster parent as a more permanent alter15 native to legal guardianship and, in the

16 case of a relative foster parent who has

17 chosen not to pursue adoption, documenta18 tion of the reasons why; and

19 ‘‘(v) the efforts made by the State

20 agency to secure the consent of the child’s

21 parent or parents to the kinship guardian22 ship assistance arrangement, or the rea23 sons why such efforts were not made.’’.
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1 SEC. 8004. ELIMINATION OF FINANCIAL ELIGIBILITY RE2 QUIREMENT FOR FOSTER CARE MAINTE3 NANCE AND ADOPTION ASSISTANCE PAY4 MENTS.

5 (a) FOSTER CARE MAINTENANCE PAYMENTS.—Sec6 tion 472(a) of the Social Security Act (42 U.S.C. 672(a))

7 is amended—

8 (1) in the matter preceding paragraph (1), by

9 striking ‘‘would have met the requirements of sec10 tion 406(a) (as so in effect) or of section 407 (as

11 such sections were in effect on July 16, 1996) but

12 for his removal from the home of a relative (speci13 fied in section 406(a)),’’ and inserting ‘‘has been re14 moved from his or her home’’;

15 (2) in paragraph (2), by adding ‘‘and’’ at the

16 end;

17 (3) in paragraph (3), by striking ‘‘; and’’ and

18 inserting a period;

19 (4) by striking paragraph (4); and

20 (5) by striking the last 2 sentences of that sec21 tion.

22 (b) ADOPTION ASSISTANCE PAYMENTS.—Section

23 473(a)(2) of the Social Security Act (42 U.S.C. 673(a)(2))

24 is amended—

25 (1) in subparagraph (A)(i)—
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1 (A) by striking ‘‘met the requirements of

2 section 406(a) or section 407 (as such sections

3 were in effect on July 16, 1996) or would have

4 met such requirements except for his removal

5 from the home of a relative (specified in section

6 406(a) (as so in effect))’’ and inserting ‘‘has

7 been removed from his or her home’’; and

8 (B) by striking ‘‘(or 403 (as such section

9 was in effect on July 16, 1996))’’;

10 (2) in subparagraph (A)(iii), by adding ‘‘and’’

11 at the end;

12 (3) by striking subparagraph (B);

13 (4) by redesignating subparagraph (C) as sub14 paragraph (B); and

15 (5) by striking ‘‘The last sentence of section

16 472(a)’’ and all that follows and inserting ‘‘Any

17 child who meets the requirements of subparagraph

18 (B), who was determined eligible for adoption assist19 ance payments under this part with respect to a

20 prior adoption, who is available for adoption because

21 the prior adoption has been dissolved and the paren22 tal rights of the adoptive parents have been termi23 nated or because the child’s adoptive parents have

24 died, and who fails to meet the requirements of sub25 paragraph (A) but would meet such requirements if
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1 the child were treated as if the child were in the

2 same circumstances the child was in the last time

3 the child was determined eligible for adoption assist4 ance payments under this part and the prior adop5 tion were treated as never having occurred, shall be

6 treated as meeting the requirements of this para7 graph for purposes of paragraph (1)(B)(ii).’’.

8 SEC. 8005. ESTABLISHMENT OF UNIFORM FEDERAL MATCH9 ING RATE.

10 (a) IN GENERAL.—Section 474(a) of the Social Secu11 rity Act (42 U.S.C. 674(a)) is amended—

12 (1) in the matter preceding paragraph (1)—

13 (A) by striking ‘‘of—’’ and inserting ‘‘of

14 the following:’’;

15 (B) by striking ‘‘(1) an amount’’ and all

16 that follows through the end of paragraph (3)

17 and inserting the following:

18 ‘‘(1) The Federal medical assistance percentage

19 (as defined in section 1905(b)) of each of the fol20 lowing:

21 ‘‘(A) The total amount expended during

22 such quarter as foster care maintenance pay23 ments under section 472 for children in foster

24 family homes or child-care institutions.
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1 ‘‘(B) The total amount expended during

2 such quarter as kinship guardianship assistance

3 payments under section 472A for children with

4 a kinship guardianship assistance agreement.

5 ‘‘(C) The total amount expended during

6 such quarter as adoption assistance payments

7 under section 473 pursuant to adoption assist8 ance agreements.

9 ‘‘(D) Subject to paragraph (3), the total

10 amount expended during such quarter for pre11 ventive, protective, crisis, permanency, inde12 pendent living, and post-permanency services

13 and activities under section 474A.

14 ‘‘(E) The total amounts expended during

15 such quarter as found necessary by the Sec16 retary for the provision of child placement serv17 ices and for the proper and efficient administra18 tion of the State plan.

19 ‘‘(F) The total amounts expended during

20 such quarter as found necessary by the Sec21 retary for the training of—

22 ‘‘(i) personnel employed or preparing for

23 employment by the State agency or by the local

24 agency administering the plan in the political

25 subdivision (including short- and long-term
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1 training at educational institutions through

2 grants to such institutions or by direct financial

3 assistance to students enrolled in such institu4 tions);

5 ‘‘(ii) current or prospective foster or adop6 tive parents and the members of the staff of

7 State-licensed or State-approved child care in8 stitutions providing care to foster and adopted

9 children receiving assistance under this part, in

10 ways that increase the ability of such current

11 or prospective parents, staff members, and in12 stitutions to provide support and assistance to

13 foster and adopted children, whether incurred

14 directly by the State or by contract but only

15 for such expenditures (including travel and per

16 diem expenses) that are incurred for short-term

17 training;

18 ‘‘(iii) the staff of private State licensed or

19 State approved child welfare agencies that pro20 vide preventive, crisis, protective permanency,

21 post-permanency, and independent living serv22 ices or care to foster and adopted children and

23 children with relative guardians who are eligible

24 for assistance under this part (including joint

25 training and cross training of such staff);
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1 ‘‘(iv) court staff, including judges, judicial

2 personnel, law enforcement personnel, agency

3 attorneys, attorneys representing parents in

4 proceedings conducted by or under the super5 vision of an abuse or neglect court, attorneys

6 representing children in such proceedings,

7 guardian ad litems, volunteers who participate

8 in court-appointed special advocate (CASA)

9 programs, and citizen review board members

10 when under court auspices to keep children safe

11 and provide permanent families for children,

12 but only to the extent that any training offered

13 to judges or any judicial personnel is offered by,

14 or under contract with, the State or local agen15 cy in collaboration with the judicial conference

16 or other appropriate judicial governing body op17 erating in the State; and

18 ‘‘(v) staff employed by State, local, or pri19 vate nonprofit substance abuse prevention and

20 treatment agencies, mental health providers, do21 mestic violence prevention and treatment pro22 viders, health agencies, child care agencies,

23 schools, and community service agencies that

24 are collaborating with the State or local agency

25 administering the State plan under this part to
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1 keep children safe and provide permanent fami2 lies for children, including adoptive families.

3 ‘‘(G) The total amounts expended during

4 such quarter as found necessary by the Sec5 retary for the planning, design, development,

6 installation, or operation of statewide mecha7 nized data collection and information retrieval

8 systems (including expenditures for hardware

9 components for such systems) but only to the

10 extent that such systems—

11 ‘‘(i) meet the requirements imposed

12 by regulations promulgated pursuant to

13 section 479(b)(2);

14 ‘‘(ii) to the extent practicable, are ca15 pable of interfacing with the State data

16 collection system that collects information

17 relating to child abuse and neglect; and

18 ‘‘(iii) are determined by the Secretary

19 to be likely to provide more efficient, eco20 nomical, and effective administration of

21 the programs carried out under a State

22 plan approved under part B or this part.’’;

23 (2) in paragraph (4)—

24 (A) by striking ‘‘the lesser’’ and inserting

25 ‘‘The lesser’’; and
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1 (B) by redesignating such paragraph as

2 paragraph (2); and

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

4 paragraph:

5 ‘‘(3) With respect to a State that elects to pro6 vide preventive, protective, crisis, permanency, inde7 pendent living, and post-permanency services and ac8 tivities under section 474A, that begins the process

9 for accreditation of the State agency administering

10 the program under this part within 3 years after the

11 date of enactment of the Leave No Child Behind Act

12 of 2001, and that has such State agency accredited

13 by a nationally recognized accrediting agency ap14 proved by the Secretary to provide such accredita15 tion, the Federal medical assistance percentage for

16 the State shall be increased by 1 percentage point a

17 year for each of the 4 consecutive years in which the

18 agency is so accredited for purposes of making the

19 payments described in paragraph (1)(D), beginning

20 with the first fiscal year quarter that begins after

21 the State submits to the Secretary evidence of such

22 accreditation.’’.

23 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 473(a)(6)(B) of such Act (42

2 U.S.C. 673(a)(6)(B)) is amended by striking

3 ‘‘474(a)(3)(E)’’ and inserting ‘‘474(a)(1)(E)’’.

4 (2) Section 477(h) of such Act (42 U.S.C.

5 677(h)) is amended by striking ‘‘474(a)(4)’’ and in6 serting ‘‘474(a)(2)’’.

7 SEC. 8006. ELIMINATION OF DISINCENTIVE FOR FOSTER

8 PARENTS TO ADOPT CHILDREN WITH SPE9 CIAL NEEDS WHO HAVE BEEN IN THEIR FOS10 TER CARE.

11 The last sentence of section 473(a)(3) of the Social

12 Security Act (42 U.S.C 673(a)(3)) is amended to read as

13 follows: ‘‘However, an adoptive parent shall be eligible to

14 receive an adoption assistance payment under clause (ii)

15 of paragraph (1)(B) that is at least equal to the foster

16 care maintenance payment which would have been paid

17 during the period if the child with respect to whom the

18 adoption assistance payment is made had been in a foster

19 family home.’’.

20 SEC. 8007. EXTENSION OF ADOPTION ASSISTANCE PAY21 MENTS.

22 Section 473(a)(4) of the Social Security Act (42

23 U.S.C. 673(a)(4)) is amended by striking ‘‘(or,’’ and in24 serting ‘‘(or, in the case of a child who is a full-time stu25 dent in a secondary school or in the equivalent educational
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1 level of a vocational or technical training program, the age

2 of nineteen, or’’.

3 SEC. 8008. REIMBURSEMENT FOR ROOM AND BOARD IN

4 FOSTER FAMILY HOMES, CHILD CARE INSTI5 TUTIONS, OR SUPERVISED LIVING ARRANGE6 MENTS FOR YOUNG PEOPLE AGING OUT OF

7 FOSTER CARE.

8 Section 472 of the Social Security Act (42 U.S.C.

9 672) is amended by adding at the end the following:

10 ‘‘(i)(1) Notwithstanding any other provision of this

11 part, a State may make foster care maintenance payments

12 (as defined in section 475(4)) under this section on behalf

13 of eligible individuals described in paragraph (2) for reim14 bursement of room and board expenses incurred for such

15 individuals in a foster family home, child care institution,

16 or other supervised living arrangement as approved by the

17 State agency, in order to assist such individuals to leave

18 foster care and transition to self-sufficiency.

19 ‘‘(2) An eligible individual described in this para20 graph is an individual who—

21 ‘‘(A) was in foster care on the date that the in22 dividual attained age 17 and had been in foster care

23 for at least 1 year prior to that date;

24 ‘‘(B) has not attained age 22;
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1 ‘‘(C) is in the process of completing secondary

2 education, enrolled in an institution that provides

3 postsecondary education or vocational training, or is

4 employed for at least 80 hours per month;

5 ‘‘(D) is participating in independent living ac6 tivities of the type that may be supported under the

7 John H. Chafee Foster Care Independence Program

8 under section 477; and

9 ‘‘(E) has a case plan that includes a specific

10 plan for how the individual will achieve independent

11 living and that provides for the individual to reside

12 in a setting that promotes personal responsibility

13 and encourages self-sufficiency.

14 ‘‘(3)(A) A State may not receive payments under sec15 tion 474(a)(1)(A) for expenditures under this subsection

16 unless with respect to fiscal year 2002 and each fiscal year

17 thereafter, the total Federal, State, and local expenditures

18 for reimbursements described in paragraph (1) in the

19 State (or for related independent living services) equals

20 or exceeds the total of such expenditures for fiscal year

21 2001.

22 ‘‘(B) The amount of total Federal, State, and local

23 expenditures required under subparagraph (A) to be main24 tained for a fiscal year may be reduced appropriately if

25 the total Federal expenditures for that fiscal year are less
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1 than such the amount of such expenditures for fiscal year

2 2001.

3 ‘‘(4) With respect to a fiscal year, a State that makes

4 foster care maintenance payments under this subsection

5 shall submit to the Secretary an annual report that in6 cludes the following:

7 ‘‘(A) The number of eligible individuals de8 scribed in paragraph (2) who received foster care

9 maintenance payments under this subsection and the

10 nature of the settings in which such individuals were

11 housed.

12 ‘‘(B) A description of the steps being under13 taken in the State to promote housing opportunities

14 for individuals transitioning from foster care after

15 attaining age 18 and for individuals that have al16 ready transitioned out of foster care as a result of

17 age.

18 ‘‘(C) Recommendations regarding the types of

19 Federal assistance that would assist the State to

20 better meet the housing need of the individuals de21 scribed in subparagraph (B).’’.
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1 SEC. 8009. FUNDING FOR VOUCHERS TO ASSIST YOUNG

2 PEOPLE AGING OUT OF FOSTER CARE MAKE

3 THE TRANSITION TO SELF-SUFFICIENCY.

4 Section 477 of the Social Security Act (42 U.S.C.

5 677) is amended by adding at the end the following:

6 ‘‘(i) VOUCHERS TO ASSIST THE TRANSITION TO

7 SELF-SUFFICIENCY.—

8 ‘‘(1) GRANTS TO STATES.—

9 ‘‘(A) IN GENERAL.—Notwithstanding any

10 other provision of this part, and in addition to

11 payments made to a State under section

12 474(a)(2), the Secretary shall make grants to

13 States for vouchers to help eligible individuals

14 described in paragraph (2) make the transition

15 to self-sufficiency.

16 ‘‘(B) APPLICATION.—A State that desires

17 to receive a grant under this subsection shall

18 submit an application to the Secretary at such

19 time, and in such form and manner as the Sec20 retary shall require.

21 ‘‘(C) COMPETITIVE GRANTS.—The Sec22 retary shall award grants to States under this

23 subsection on a competitive basis, based on cri24 teria established by the Secretary.
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1 ‘‘(2) ELIGIBLE INDIVIDUALS DESCRIBED.—An

2 eligible individual described in this paragraph is an

3 individual who—

4 ‘‘(A) is described in section 472(i)(2); or

5 ‘‘(B) has been adopted from foster care, or

6 placed with a relative with a kinship guardian7 ship assistance agreement, on or after the indi8 vidual’s 16th birthday and has not yet attained

9 age 22.

10 ‘‘(3) VOUCHER REQUIREMENTS.—A State re11 ceiving a grant under this subsection shall use the

12 funds provided under the grant to provide a voucher

13 of up to $5000 per year for the costs incurred by

14 an eligible individual described in paragraph (2) who

15 applies for the voucher of obtaining—

16 ‘‘(A) a General Equivalency Diploma (and

17 related supports provided to assist an eligible

18 individual in obtaining such a degree);

19 ‘‘(B) a post-secondary education; or

20 ‘‘(C) vocational training.

21 ‘‘(4) MATCHING REQUIREMENT.—A State may

22 not receive a grant under this subsection unless the

23 State agrees to provide $1 for every $3 awarded

24 under the grant.
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1 ‘‘(5) MAINTENANCE OF EFFORT REQUIRE2 MENT.—A State may not receive a grant under this

3 subsection unless with respect to fiscal year 2002

4 and each fiscal year thereafter, the total State, and

5 local expenditures for vouchers described in para6 graph (3) in such State (or for similar expenditures)

7 equals or exceeds the total of such expenditures for

8 fiscal year 2001.

9 ‘‘(6) ANNUAL REPORT.—Each State that re10 ceives a grant under this subsection shall submit an

11 annual report to the Secretary that includes the fol12 lowing:

13 ‘‘(A) The number of eligible individuals de14 scribed in paragraph (2) who received vouchers

15 during the year involved, the nature of the ac16 tivities that were supported by the vouchers,

17 and a description of the institutions where the

18 vouchers were used.

19 ‘‘(B) The number of individuals who ap20 plied for a voucher funded under this section

21 during such year, were determined to be eligible

22 for a voucher, but did not receive a voucher be23 cause funding was not available.

24 ‘‘(C) A description of other steps being un25 dertaken in the State to promote educational
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1 and training opportunities for individuals who

2 are in foster care and are about to age out of

3 such care and for individuals who have aged out

4 of foster care.

5 ‘‘(D) Recommendations regarding the

6 types of Federal assistance that would assist

7 the State to better meet the educational and

8 training needs of individuals described in sub9 paragraph (C).

10 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

11 To carry out this section, there are authorized to be

12 appropriated to the Secretary $120,000,000 for each

13 of fiscal years 2002 through 2006.’’.

14 SEC. 8010. ADDITIONAL ACCOUNTABILITY.

15 Section 471(a) of the Social Security Act (42 U.S.C.

16 671(a)), as amended by section 8001(b), is amended—

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

18 end;

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

20 and inserting a semicolon;

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

22 ‘‘(26) provides that, beginning with January 1,

23 2004, and each January 1 thereafter, the State

24 agency shall prepare and submit to the Secretary,

25 and make available to the public, including through
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1 posting on the State agency’s Internet website, a re2 port that, with respect to the 2 preceding fiscal

3 years that are the subject of the report, describes—

4 ‘‘(A) how the funding made available

5 under section 474A has been used;

6 ‘‘(B) the impact that the services and ac7 tivities undertaken with such funding has had

8 on—

9 ‘‘(i) preventing the abuse and neglect

10 and repeat abuse and neglect of children;

11 ‘‘(ii) preventing the entry and re-entry

12 of children into foster care;

13 ‘‘(iii) decreasing the length of stay of

14 children in foster care in the State; and

15 ‘‘(iv) promoting permanent place16 ments for children;

17 ‘‘(C) efforts by the State agency to im18 prove the quality and retention of supervisors

19 and staff who are delivering services under the

20 State plan approved under this part, directly or

21 under contract, and to improve the workloads of

22 staff;

23 ‘‘(D) efforts by the State agency or local

24 agencies to use community partners to promote
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1 safety and permanence for children, including a

2 description of—

3 ‘‘(i) collaborative work with substance

4 abuse, mental health, health, or domestic

5 violence agencies or providers to address

6 the needs of the families assisted under

7 this part;

8 ‘‘(ii) the involvement of community9 based organizations with the State agency;

10 ‘‘(iii) how parents are engaged in the

11 delivery of services; and

12 ‘‘(iv) efforts to utilize family team

13 meeting, family group decisionmaking, or

14 other activities that build on family

15 strengths and address what families need;

16 ‘‘(E) the procedures that are in place to

17 ensure that children who are returned home or

18 placed in other permanent settings receive the

19 support they need to remain home or in such a

20 setting; and

21 ‘‘(F) the status of the State’s most recent

22 child and family services review and its pro23 gram improvement plan activities, if applicable;

24 and
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1 ‘‘(27) provides that, beginning on January 1,

2 2004, the independent body charged with reviewing

3 cases of children (such as a court, citizen review

4 board, or independent administrative review body)

5 biannually shall submit a report to the Secretary, in

6 such form and manner as the Secretary shall re7 quire, that describes—

8 ‘‘(A) the status of children in the State, as

9 reflected in the reviews conducted by such body;

10 ‘‘(B) the barriers to moving children in the

11 State in accordance with the permanency plans

12 for such children; and

13 ‘‘(C) recommendations for the amount of

14 resources, fiscal and otherwise, that are needed

15 to better meet the goals of safety and perma16 nence for children established in the Adoption

17 and Safe Families Act of 1997.’’.

18 SEC. 8011. AUTHORITY OF INDIAN TRIBES TO RECEIVE FED19 ERAL FUNDS FOR FOSTER CARE AND ADOP20 TION ASSISTANCE.

21 (a) CHILDREN PLACED IN TRIBAL CUSTODY ELIGI22 BLE FOR FOSTER CARE FUNDING.—Section 472(a)(2) of

23 the Social Security Act (42 U.S.C. 672(a)(2)) is

24 amended—
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1 (1) by striking ‘‘or (B)’’ and inserting ‘‘(B)’’;

2 and

3 (2) by inserting before the semicolon the fol4 lowing: ‘‘, or (C) an Indian tribe (as defined in sec5 tion 479B(e)) or an intertribal consortium if the In6 dian tribe or consortium is not operating a program

7 pursuant to section 479B and (i) has a cooperative

8 agreement with a State pursuant to section 479B(c)

9 or (ii) submits to the Secretary a description of the

10 arrangements (jointly developed or developed in con11 sultation with the State) made by the Indian tribe

12 or consortium for the payment of funds and the pro13 vision of the child welfare services and protections

14 required by this title’’.

15 (b) PROGRAMS OPERATED BY INDIAN TRIBAL ORGA16 NIZATIONS.—Part E of title IV of the Social Security Act

17 (42 U.S.C. 670 et seq.) is amended by adding at the end

18 the following:

19 ‘‘SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL OR20 GANIZATIONS.

21 ‘‘(a) APPLICATION.—Except as provided in sub22 section (b), this part shall apply to an Indian tribe that

23 elects to operate a program under this part in the same

24 manner as this part applies to a State.

25 ‘‘(b) MODIFICATION OF PLAN REQUIREMENTS.—
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1 ‘‘(1) IN GENERAL.—In the case of an Indian

2 tribe submitting a plan for approval under section

3 471, the plan shall—

4 ‘‘(A) in lieu of the requirement of section

5 471(a)(3), identify the service area or areas and

6 population to be served by the Indian tribe; and

7 ‘‘(B) in lieu of the requirement of section

8 471(a)(10), provide for the approval of foster

9 homes pursuant to tribal standards and in a

10 manner that ensures the safety of, and account11 ability for, children placed in foster care.

12 ‘‘(2) DETERMINATION OF FEDERAL SHARE.—

13 ‘‘(A) PER CAPITA INCOME.—

14 ‘‘(i) IN GENERAL.—For purposes of

15 determining the Federal medical assistance

16 percentage applicable to an Indian tribe el17 igible for payments under section 474(a),

18 the calculation of an Indian tribe’s per

19 capita income shall be based upon the serv20 ice population of the Indian tribe as de21 fined in its plan in accordance with para22 graph (1)(A).

23 ‘‘(ii) CONSIDERATION OF OTHER IN24 FORMATION.—An Indian tribe may submit

25 to the Secretary such information as the
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1 Indian tribe considers relevant to the cal2 culation of the per capita income of the In3 dian tribe, and the Secretary shall consider

4 such information before making the cal5 culation.

6 ‘‘(B) SOURCES OF NON-FEDERAL

7 SHARE.—An Indian tribe may use Federal or

8 State funds to match payments for which the

9 Indian tribe is eligible under section 474.

10 ‘‘(3) MODIFICATION OF OTHER REQUIRE11 MENTS.—Upon the request of an Indian tribe or

12 tribes, the Secretary may modify any requirement

13 under this part if, after consulting with the Indian

14 tribe or tribes, the Secretary determines that modi15 fication of the requirement would advance the best

16 interests and the safety of children served by the In17 dian tribe or tribes.

18 ‘‘(4) CONSORTIUM.—The participating Indian

19 tribes of an intertribal consortium may develop and

20 submit a single plan under section 471 that meets

21 the requirements of this section.

22 ‘‘(c) COOPERATIVE AGREEMENTS.—An Indian tribe

23 or intertribal consortium and a State may enter into a

24 cooperative agreement for the administration or payment

25 of funds pursuant to this part. In any case where an In-
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1 dian tribe or intertribal consortium and a State enter into

2 a cooperative agreement that incorporates any of the pro3 visions of this section, those provisions shall be valid and

4 enforceable. Any such cooperative agreement that is in ef5 fect as of the date of enactment of this section, shall re6 main in full force and effect subject to the right of either

7 party to the agreement to revoke or modify the agreement

8 pursuant to the terms of the agreement.

9 ‘‘(d) REGULATIONS.—Not later than 1 year after the

10 date of enactment of this section, the Secretary shall, in

11 full consultation with Indian tribes and tribal organiza12 tions, promulgate regulations to carry out this section.

13 ‘‘(e) DEFINITIONS OF INDIAN TRIBE; TRIBAL ORGA14 NIZATIONS.—In this section, the terms ‘Indian tribe’ and

15 ‘tribal organization’ have the meanings given those terms

16 in subsections (e) and (l) of section 4 of the Indian Self17 Determination and Education Assistance Act (25 U.S.C.

18 450b), respectively.’’.

19 (c) EFFECTIVE DATE.—The amendments made by

20 this section take effect on the date of enactment of this

21 Act without regard to regulations to implement such

22 amendments being promulgated by such date.
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1 Subtitle B—Promoting Safe and

2 Stable Families

3 SEC. 8101. EXPANSION OF THE PROMOTING SAFE AND STA4 BLE FAMILIES PROGRAM.

5 (a) REAUTHORIZATION AND INCREASE IN FUND6 ING.—Section 430(b) of the Social Security Act (42

7 U.S.C. 629(b)) is amended—

8 (1) in paragraph (7), by striking ‘‘and’’ at the

9 end;

10 (2) in paragraph (8), by striking the period and

11 inserting ‘‘; and’’; and

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

13 ‘‘(9) for each of fiscal years 2002 through

14 2006, $705,000,000.’’.

15 (b) CONTINUATION OF RESERVATION OF FUNDS FOR

16 EVALUATION, RESEARCH, TRAINING, AND TECHNICAL

17 ASSISTANCE.—Section 430(d)(1) of the Social Security

18 Act (42 U.S.C. 629(d)(1)) is amended by striking ‘‘, 1996,

19 1997, 1998, 1999, 2000, and 2001’’ and inserting

20 ‘‘through 2006’’.

21 (c) INCREASE IN RESERVATION OF FUNDS FOR

22 STATE COURT ASSESSMENTS.—Section 430(d)(2) of the

23 Social Security Act (42 U.S.C. 629(d)(2)) is amended—

24 (1) by striking ‘‘and’’ after ‘‘1995,’’; and
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1 (2) by striking ‘‘, 1997, 1998, 1999, 2000, and

2 2001,’’ and inserting ‘‘through 2001, $15,000,000

3 of the amounts so described for each of fiscal years

4 2002 and 2003, and $20,000,000 of the amounts so

5 described for each of fiscal years 2004 through

6 2006,’’.

7 (d) INCREASE IN RESERVATION OF FUNDS FOR IN8 DIAN TRIBES.—Section 430(d)(3) of the Social Security

9 Act (42 U.S.C. 629(d)(3)) is amended by striking ‘‘1 per10 cent’’ and inserting ‘‘3 percent’’.

11 Subtitle C—Social Services Block

12 Grant

13 SEC. 8201. SHORT TITLE.

14 This subtitle may be cited as the ‘‘Social Services

15 Block Grant Restoration Act of 2001’’.

16 SEC. 8202. FINDINGS.

17 Congress makes the following findings:

18 (1) Since 1975, title XX of the Social Security

19 Act (42 U.S.C. 1397 et seq.), commonly referred to

20 as the Social Services Block Grant (in this section

21 referred to as ‘‘SSBG’’), has authorized funding for

22 social services to ensure that at-risk children and

23 families, the elderly, and physically and mentally dis24 abled individuals remain stable, independent, and

25 economically self sufficient. In 1981, Congress and
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1 the Reagan Administration converted SSBG into a

2 block grant designed to give maximum flexibility to

3 States to serve these fundamental purposes.

4 (2) Funds provided under the SSBG focus cost5 effective support at the community level that pre6 vents the need for inappropriate institutional care

7 which is more costly for Federal and State programs

8 such as the medicaid, medicare, and the social secu9 rity disability benefits programs.

10 (3) The SSBG helps to further the goals set

11 forth in the Personal Responsibility and Work Op12 portunity Reconciliation Act of 1996 (Public Law

13 104–193; 110 Stat. 2105) by supporting the Tem14 porary Assistance to Needy Families program

15 (TANF) and support-related programs such as on16 the-job training, child care, transportation, coun17 seling, and other services that facilitate long-term

18 family stability and economic self-sufficiency.

19 (4) The SSBG provides essential funding to

20 many States for child welfare services that support

21 the goals of the Adoption and Safe Families Act of

22 1997 (Public Law 105–89; 111 Stat. 2115) to pro23 mote a safe family environment and encourage adop24 tion to move children into stable and permanent

25 families.
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1 (5) The SSBG helps promote independent living

2 for vulnerable and low-income elderly individuals by

3 supporting home care services, including home-deliv4 ered meals, adult protective services, adult day care,

5 and other essential case management services pro6 vided in every State.

7 (6) It is reported that 820,000 older Americans

8 are abused and neglected in this country each year.

9 There are additional concerns about the under re10 porting of elderly abuse and neglect. The SSBG sup11 ports adult protective services that prevent wide12 spread abuse and neglect of older Americans and

13 help more than 651,000 elderly individuals in 31

14 States.

15 (7) More than 570,000 disabled individuals re16 ceive a range of community-based services and sup17 ports nationwide. The SSBG provides significant re18 sources to fill the funding gaps in the developmental

19 disabilities system by supporting such services as

20 early intervention and crisis intervention, adult day

21 care, respite care, transportation, employment train22 ing, and independent living services in 38 States.

23 (8) The SSBG supports essential mental health

24 and related services to ensure that vulnerable adults

25 and children receive early intervention to prevent
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1 more serious and costly mental health crises in the

2 future. Such services include the provision of coun3 seling to almost 400,000 adults and children, case

4 management services for nearly 900,000 families,

5 and the provision of information and referral assist6 ance to more than 1,300,000 individuals.

7 (9) There are nearly 3,000,000 reports of child

8 abuse and neglect each year. There are currently

9 over 300,000 children in the American foster care

10 system. The SSBG enables the provision of child

11 protective services to 1,300,000 children, adoption

12 services to over 150,000 children and families, and

13 prevention and intervention services to more than

14 700,000 families.

15 (10) The SSBG has been eroded by more than

16 $1,000,000,000 over the last 6 years resulting in

17 cuts in services in many States and local commu18 nities.

19 (11) Temporary Assistance to Needy Families

20 (TANF) block grants cannot be used to make up

21 cuts to the SSBG because a large percentage of

22 SSBG funds are used for the elderly, disabled, and

23 other populations that are ineligible for TANF

24 funds.
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1 (12) The 104th Congress made a commitment

2 to the SSBG in the Personal Responsibility and

3 Work Opportunity Reconciliation Act of 1996 (Pub4 lic Law 104–193; 110 Stat. 2105) by authorizing

5 the program at $2,380,000,000 through fiscal year

6 2002 and returning the authorization for the pro7 gram to $2,800,000,000 in fiscal year 2003 and

8 each succeeding fiscal year.

9 SEC 8203. RESTORATION OF AUTHORITY TO TRANSFER UP

10 TO 10 PERCENT OF TANF FUNDS TO THE SO11 CIAL SERVICES BLOCK GRANT.

12 (a) IN GENERAL.—Section 404(d)(2) of the Social

13 Security Act (42 U.S.C. 604(d)(2)) is amended to read

14 as follows:

15 ‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE

16 TO TITLE XX PROGRAMS.—A State may use not

17 more than 10 percent of the amount of any grant

18 made to the State under section 403(a) for a fiscal

19 year to carry out State programs pursuant to title

20 XX.’’.

21 (b) EFFECTIVE DATE.—The amendment made by

22 subsection (a) applies to amounts made available for fiscal

23 year 2002 and each fiscal year thereafter.
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1 SEC. 8204. RESTORATION OF FUNDS FOR THE SOCIAL SERV2 ICES BLOCK GRANT.

3 (a) IN GENERAL.—Section 2003(c) of the Social Se4 curity Act (42 U.S.C. 1397b(c)) is amended—

5 (1) in paragraph (10), by striking ‘‘and’’ at the

6 end; and

7 (2) by striking paragraph (11) and inserting

8 the following new paragraphs:

9 ‘‘(11) $1,725,000,000 for the fiscal year 2001;

10 and

11 ‘‘(12) $2,380,000,000 for the fiscal year 2002

12 and each fiscal year thereafter.’’.

13 (b) EFFECTIVE DATE.—The amendments made by

14 subsection (a) shall take effect as if included in the enact15 ment of the Departments of Labor, Health and Human

16 Services, and Education, and Related Agencies Appropria17 tions Act, 2001 (as enacted into law by section 1(a)(1)

18 of Public Law 106–554).

19 SEC. 8205. REQUIREMENT TO SUBMIT ANNUAL REPORT ON

20 STATE ACTIVITIES.

21 (a) IN GENERAL.—Section 2006(c) of the Social Se22 curity Act (42 U.S.C. 1397e(c)) is amended by adding at

23 the end the following new sentence: ‘‘The Secretary shall

24 compile the information submitted by the States and sub25 mit that information to Congress on an annual basis.’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) applies to information submitted by States

3 under section 2006 of the Social Security Act (42 U.S.C.

4 1397e) with respect to fiscal year 2001 and each fiscal

5 year thereafter.

6 Subtitle D—Child Protection and

7 Alcohol and Drug Partnerships

8 SEC. 8301. SHORT TITLE.

9 This subtitle may be cited as the ‘‘Child Protection/

10 Alcohol and Drug Partnership Act of 2001’’.

11 SEC. 8302. CHILD PROTECTION/ALCOHOL AND DRUG PART12 NERSHIPS FOR CHILDREN.

13 Part B of title IV of the Social Security Act (42

14 U.S.C. 620 et seq.) is amended by adding at the end the

15 following:

16 ‘‘Subpart 3—Child Protection/Alcohol and Drug

17 Partnerships For Children

18 ‘‘SEC. 440. DEFINITIONS.

19 ‘‘In this subpart:

20 ‘‘(1) ALASKA NATIVE ORGANIZATION.—The

21 term ‘Alaska Native Organization’ means any orga22 nized group of Alaska Natives eligible to operate a

23 Federal program under the Indian Self-Determina24 tion Act (25 U.S.C. 450f et seq.) or such group’s

25 designee.
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1 ‘‘(2) ADMINISTRATIVE COSTS.—

2 ‘‘(A) IN GENERAL.—The term ‘administra3 tive costs’ means the costs for the general ad4 ministration of administrative activities, includ5 ing contract costs and all overhead costs.

6 ‘‘(B) EXCLUSION.—Such term does not in7 clude the direct costs of providing services and

8 costs related to case management, training,

9 technical assistance, evaluation, establishment,

10 and operation of information systems, and such

11 other similar costs that are also an integral

12 part of service delivery.

13 ‘‘(3) ELIGIBLE STATE.—The term ‘eligible

14 State’ means a State that submits a joint applica15 tion from the State agencies that—

16 ‘‘(A) includes a plan that meets the re17 quirements of section 442; and

18 ‘‘(B) is approved by the Secretary for a 5-

19 year period after consultation with the Assist20 ant Secretary for the Administration for Chil21 dren and Families and the Administrator of the

22 Substance Abuse and Mental Health Services

23 Administration.

24 ‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’

25 means any Indian tribe, band, Nation or other orga-
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1 nized group or community of Indians, including any

2 Alaska Native Organization, that is recognized as el3 igible for the special programs and services provided

4 by the United States to Indians because of their sta5 tus as Indians.

6 ‘‘(5) STATE.—

7 ‘‘(A) IN GENERAL.—The term ‘State’

8 means each of the 50 States, the District of Co9 lumbia, and the territories described in sub10 paragraph (B).

11 ‘‘(B) TERRITORIES.—

12 ‘‘(i) IN GENERAL.—The territories de13 scribed in this subparagraph are Puerto

14 Rico, Guam, the United States Virgin Is15 lands, American Samoa, and the Northern

16 Mariana Islands.

17 ‘‘(ii) AUTHORITY TO MODIFY RE18 QUIREMENTS.—The Secretary may modify

19 the requirements of this subpart with re20 spect to a territory described in clause (i)

21 to the extent necessary to allow such a ter22 ritory to conduct activities through funds

23 provided under a grant made under this

24 subpart.
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1 ‘‘(6) STATE AGENCIES.—The term ‘State agen2 cies’ means the State child welfare agency and the

3 unit of State government responsible for the admin4 istration of the substance abuse prevention and

5 treatment block grant provided under subpart II of

6 part B of title XIX of the Public Health Service Act

7 (42 U.S.C. 300x–21 et seq.).

8 ‘‘(7) TRIBAL ORGANIZATION.—The term ‘tribal

9 organization’ means the recognized governing body

10 of an Indian tribe.

11 ‘‘SEC. 441. GRANTS TO PROMOTE CHILD PROTECTION/AL12 COHOL AND DRUG PARTNERSHIPS FOR CHIL13 DREN.

14 ‘‘(a) AUTHORITY TO AWARD GRANTS.—The Sec15 retary may award grants to eligible States and directly

16 to Indian tribes in accordance with the requirements of

17 this subpart for the purpose of promoting joint activities

18 among Federal, State, and local public child welfare and

19 alcohol and drug abuse prevention and treatment agencies

20 (and among child welfare and alcohol and drug abuse pre21 vention and treatment agencies that are providing services

22 to children in Indian tribes) that focus on families with

23 alcohol or drug abuse problems who come to the attention

24 of the child welfare system and are designed to—
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1 ‘‘(1) increase the capacity of both the child wel2 fare system and the alcohol and drug abuse preven3 tion and treatment system to address comprehen4 sively and in a timely manner the needs of such fam5 ilies to improve child safety, family stability, and

6 permanence; and

7 ‘‘(2) promote recovery from alcohol and drug

8 abuse problems.

9 ‘‘(b) NOTIFICATION.—Not later than 60 days after

10 the date a joint application is submitted by the State agen11 cies or an application is submitted by an Indian tribe, the

12 Secretary shall notify a State or Indian tribe that the ap13 plication has been approved or disapproved.

14 ‘‘SEC. 442. PLAN REQUIREMENTS.

15 ‘‘(a) CONTENTS.—Subject to subsection (c), the plan

16 shall contain the following:

17 ‘‘(1) A detailed description of how the State

18 agencies will work jointly to implement a range of

19 activities to meet the alcohol and drug abuse preven20 tion and treatment needs of families who come to

21 the attention of the child welfare system and to pro22 mote child safety, permanence, and family stability.

23 ‘‘(2) An assurance that the heads of the State

24 agencies shall jointly administer the grant program
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1 funded under this subpart and a description of how

2 they will do so.

3 ‘‘(3) A description of the nature and extent of

4 the problem of alcohol and drug abuse among fami5 lies who come to the attention of the child welfare

6 system in the State, and of any plans being imple7 mented to further identify and assess the extent of

8 the problem.

9 ‘‘(4) A description of any joint activities already

10 being undertaken by the State agencies in the State

11 on behalf of families with alcohol and drug abuse

12 problems who come to the attention of the child wel13 fare system (including any existing data on the im14 pact of such joint activities) such as activities relat15 ing to—

16 ‘‘(A) the appropriate screening and assess17 ment of cases;

18 ‘‘(B) consultation on cases involving alco19 hol and drug abuse;

20 ‘‘(C) arrangements for addressing con21 fidentiality and sharing of information;

22 ‘‘(D) cross training of staff;

23 ‘‘(E) co-location of services;

24 ‘‘(F) support for comprehensive treatment

25 programs for parents and their children; and
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1 ‘‘(G) establishing priority of child welfare

2 families for assessment or treatment.

3 ‘‘(5)(A) A description of the joint activities to

4 be funded in whole or in part with the funds pro5 vided under the grant, including the sequencing of

6 the activities proposed to be conducted under the 5-

7 year funding cycle and the goals to be achieved dur8 ing such funding cycle. The activities and goals shall

9 be designed to improve the capacity of the State

10 agencies to work jointly to improve child safety, fam11 ily stability, and permanence for children whose fam12 ilies come to the attention of the child welfare sys13 tem and to promote their parents’ recovery from al14 cohol and drug abuse.

15 ‘‘(B) The description shall include a statement

16 as to why the State agencies chose the specified ac17 tivities and goals.

18 ‘‘(6) A description as to whether and how the

19 joint activities described in paragraph (5), and other

20 related activities funded with Federal funds, will ad21 dress some or all of the following practices and pro22 cedures:

23 ‘‘(A) Practices and procedures designed to

24 appropriately—
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1 ‘‘(i) identify alcohol and drug treat2 ment needs;

3 ‘‘(ii) assess such needs;

4 ‘‘(iii) assess risks to the safety of a

5 child and the need for permanency with re6 spect to the placement of a child;

7 ‘‘(iv) enroll families in appropriate

8 services and treatment in their commu9 nities; and

10 ‘‘(v) regularly assess the progress of

11 families receiving such treatment.

12 ‘‘(B) Practices and procedures designed to

13 provide comprehensive and timely individualized

14 alcohol and drug abuse prevention and treat15 ment services for families who come to the at16 tention of the child welfare system that include

17 a range of options that are available, accessible,

18 and appropriate, and that may include the fol19 lowing components:

20 ‘‘(i) Preventive and early intervention

21 services for children of parents with alcohol

22 and drug abuse problems that integrate al23 cohol and drug abuse prevention services

24 with mental health and domestic violence

25 services, and that recognize the mental,
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1 emotional, and developmental problems the

2 children may experience.

3 ‘‘(ii) Prevention and early intervention

4 services for parents at risk for alcohol and

5 drug abuse problems.

6 ‘‘(iii) Comprehensive home-based, out7 patient, and residential treatment options.

8 ‘‘(iv) After-care support (both formal

9 and informal) for families in recovery that

10 promotes child safety and family stability.

11 ‘‘(v) Services and supports that focus

12 on parents, parents with their children,

13 parents’ children, other family members,

14 and parent-child interaction.

15 ‘‘(C) Elimination of existing barriers to

16 treatment and to child safety and permanence,

17 such as difficulties in sharing information

18 among agencies and differences between the

19 values and treatment protocols of the different

20 agencies.

21 ‘‘(D) Effective engagement and retention

22 strategies.

23 ‘‘(E) Pre-service and in-service joint train24 ing of management and staff of child welfare

25 and alcohol and drug abuse prevention and
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1 treatment agencies, and, where appropriate,

2 judges and other court staff, to—

3 ‘‘(i) increase such individuals’ aware4 ness and understanding of alcohol and

5 drug abuse and related child abuse and ne6 glect;

7 ‘‘(ii) more accurately identify and

8 screen alcohol and drug abuse and child

9 abuse in families;

10 ‘‘(iii) improve assessment skills of

11 both child abuse and alcohol and drug

12 abuse staff, including skills to assess risk

13 to children’s safety;

14 ‘‘(iv) increase staff knowledge of the

15 services and resources that are available in

16 such individuals’ communities and appro17 priate for such families; and

18 ‘‘(v) increase awareness of the impor19 tance of permanence for children and the

20 timelines for decisionmaking regarding per21 manence in the child welfare system.

22 ‘‘(F) Progress in enhancing the abilities of

23 the State agencies to improve the data systems

24 of such agencies in order to monitor the

25 progress of families, evaluate service and treat-
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1 ment outcomes, and determine which ap2 proaches and activities are most effective.

3 ‘‘(G) Evaluation strategies to demonstrate

4 the effectiveness of treatment and identify the

5 aspects of treatment that have the greatest im6 pact on families in different circumstances.

7 ‘‘(H) Training and technical assistance to

8 increase the capacity within the State to carry

9 out 1 or more of the activities described in this

10 paragraph or related activities that are designed

11 to expand prevention and treatment services

12 for, and staff training to assist families with al13 cohol and drug abuse problems who come to the

14 attention of the child welfare system.

15 ‘‘(7) A description of the jurisdictions in the

16 State (including whether such jurisdictions are

17 urban, suburban, or rural) where the joint activities

18 will be provided, and the plans for expanding such

19 activities to other parts of the State during the 5-

20 year funding cycle.

21 ‘‘(8) A description of the methods to be used in

22 measuring progress toward the goals identified

23 under paragraph (5), including how the State agen24 cies will jointly measure their performance in accord25 ance with section 445, and how remaining barriers
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1 to meeting the needs of families with alcohol or drug

2 abuse problems who come to the attention of the

3 child welfare system will be assessed.

4 ‘‘(9) A description of what input was obtained

5 in the development of the plan and the joint applica6 tion from each of the following groups of individuals,

7 and the manner in which each will continue to be in8 volved in the proposed joint activities:

9 ‘‘(A) Staff who provide alcohol and drug

10 abuse prevention and treatment and related

11 services to families who come to the attention

12 of the child welfare system.

13 ‘‘(B) Advocates for children and parents

14 who come to the attention of the child welfare

15 and alcohol and drug abuse prevention and

16 treatment systems.

17 ‘‘(C) Consumers of both child welfare and

18 alcohol and drug abuse prevention and treat19 ment services.

20 ‘‘(D) Direct service staff and supervisors

21 from public and private child welfare and alco22 hol and drug abuse prevention and treatment

23 agencies.

24 ‘‘(E) Judges and court staff.
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1 ‘‘(F) Representatives of the State agencies

2 and private providers providing health, mental

3 health, domestic violence, housing, education,

4 and employment services.

5 ‘‘(G) A representative of the State agency

6 in charge of administering the temporary assist7 ance to needy families program funded under

8 part A of this title.

9 ‘‘(10) An assurance of the coordination, to the

10 extent feasible and appropriate, of the activities

11 funded under a grant made under this subpart with

12 the services or benefits provided under other Federal

13 or federally assisted programs that serve families

14 with alcohol and drug abuse problems who come to

15 the attention of the child welfare system, including

16 health, mental health, domestic violence, housing,

17 and employment programs, the temporary assistance

18 to needy families program funded under part A of

19 this title, other child welfare and alcohol and drug

20 abuse prevention and treatment programs, and the

21 courts.

22 ‘‘(11) An assurance that not more than 10 per23 cent of expenditures under the plan for any fiscal

24 year shall be for administrative costs.
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1 ‘‘(12) An assurance that alcohol and drug

2 treatment services provided at least in part with

3 funds provided under a grant made under this sub4 part shall be licensed, certified, or otherwise ap5 proved by the appropriate State alcohol and drug

6 abuse agencies, or in the case of an Indian tribe, by

7 a State alcohol and drug abuse agency, the Indian

8 Health Service, or other designated licensing agency.

9 ‘‘(13) An assurance that Federal funds pro10 vided to the State under a grant made under this

11 subpart will not be used to supplant Federal or non12 Federal funds for services and activities provided as

13 of the date of the submission of the plan that assist

14 families with alcohol and drug abuse problems who

15 come to the attention of the child welfare system.

16 ‘‘(b) AMENDMENTS.—

17 ‘‘(1) IN GENERAL.—An eligible State or Indian

18 tribe may amend, in whole or in part, its plan at any

19 time through transmittal of a plan amendment.

20 ‘‘(2) 60-DAY APPROVAL DEADLINE.—A plan

21 amendment is considered approved unless the Sec22 retary notifies an eligible State or Indian tribe in

23 writing, within 60 days after receipt of the amend24 ment, that the amendment is disapproved (and the
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1 reasons for disapproval) or that specified additional

2 information is needed.

3 ‘‘(c) REQUIREMENTS FOR APPLICATIONS BY INDIAN

4 TRIBES.—

5 ‘‘(1) IN GENERAL.—In order to be eligible for

6 a grant made under this subpart, an Indian tribe

7 shall—

8 ‘‘(A) submit a plan to the Secretary that

9 describes—

10 ‘‘(i) the activities the tribe will under11 take with both child welfare and alcohol

12 and drug agencies that serve the tribe’s

13 children to address the needs of families

14 who come to the attention of the child wel15 fare agencies and have alcohol and drug

16 problems; and

17 ‘‘(ii) whether and how such activities

18 address any of the practice and policy

19 areas in subsection (a)(6); and

20 ‘‘(B) subject to paragraph (2), meet the

21 other requirements of subsection (a) unless,

22 with respect to a specific requirement of such

23 subsection, the Secretary determines that it

24 would be inappropriate to apply such require25 ment to an Indian tribe, taking into account the
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1 resources, needs, and other circumstances of

2 the Indian tribe.

3 ‘‘(2) ADMINISTRATIVE COSTS; USE OF FEDERAL

4 FUNDS.—Paragraphs (11) and (13) of subsection

5 (a) shall not apply to a plan submitted by an Indian

6 tribe. The indirect cost rate agreement in effect for

7 an Indian tribe shall apply with respect to adminis8 trative costs under the tribe’s plan.

9 ‘‘(3) AUTHORITY FOR INTERTRIBAL CONSOR10 TIUM.—The participating Indian tribes of an inter11 tribal consortium may develop and submit a single

12 plan that meets the applicable requirements of sub13 section (a) (as so determined by the Secretary) and

14 paragraph (1) of this subsection.

15 ‘‘SEC. 443. APPROPRIATION OF FUNDS.

16 ‘‘(a) APPROPRIATIONS.—For the purpose of pro17 viding allotments to eligible States and Indian tribes under

18 this subpart and research and training under subsection

19 (b)(3), there is appropriated out of any money in the

20 Treasury not otherwise appropriated—

21 ‘‘(1) for fiscal year 2002, $200,000,000;

22 ‘‘(2) for fiscal year 2003, $275,000,000;

23 ‘‘(3) for fiscal year 2004, $375,000,000;

24 ‘‘(4) for fiscal year 2005, $475,000,000; and

25 ‘‘(5) for fiscal year 2006, $575,000,000.
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1 ‘‘(b) RESERVATION OF FUNDS.—With respect to a

2 fiscal year:

3 ‘‘(1) TERRITORIES.—The Secretary shall re4 serve 2 percent of the amount appropriated under

5 subsection (a) for such fiscal year for payments to

6 Puerto Rico, Guam, the United States Virgin Is7 lands, American Samoa, and the Northern Mariana

8 Islands.

9 ‘‘(2) INDIAN TRIBES.—The Secretary shall re10 serve not less than 3 nor more than 5 percent of the

11 amount appropriated under subsection (a) for such

12 fiscal year for direct payments to Indian tribes and

13 Indian tribal organizations for activities intended to

14 increase the capacity of the Indian tribes and tribal

15 organizations to expand treatment, services, and

16 training to assist families with alcohol and drug

17 abuse problems who come to the attention of the

18 child welfare agencies.

19 ‘‘(3) RESEARCH AND TRAINING.—

20 ‘‘(A) IN GENERAL.—Subject to subpara21 graph (B), the Secretary shall reserve 1 percent

22 of the amount appropriated under subsection

23 (a) for such fiscal year for practice-based re24 search on the effectiveness of various ap25 proaches for the screening, assessment, engage-
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1 ment, treatment, retention, and monitoring of

2 families with alcohol and drug abuse problems

3 who come to the attention of the child welfare

4 system, and for training of staff in such areas

5 and shall ensure that a portion of such amount

6 is used for research on the effectiveness of these

7 approaches for Indian children and for the

8 training of staff serving children from the In9 dian tribes.

10 ‘‘(B) DETERMINATION OF USE OF

11 FUNDS.—Funds reserved under subparagraph

12 (A) may only be used to carry out a research

13 agenda that addresses the areas described in

14 such subparagraph and that is established by

15 the Secretary, together with the Assistant Sec16 retary for the Administration for Children and

17 Families and the Administrator of Substance

18 Abuse and Mental Health Services Administra19 tion, with input from public and private non20 profit providers, consumers, representatives of

21 Indian tribes, and advocates, as well as others

22 with expertise in research in such areas.

23 ‘‘SEC. 444. PAYMENTS TO ELIGIBLE STATES AND INDIAN

24 TRIBES.

25 ‘‘(a) AMOUNT OF GRANT.—
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1 ‘‘(1) ELIGIBLE STATES OTHER THAN TERRI2 TORIES.—

3 ‘‘(A) IN GENERAL.—From the amount ap4 propriated under subsection (a) of section 443

5 for a fiscal year, after the reservation of funds

6 required under subsection (b) of that section for

7 the fiscal year and subject to subparagraphs

8 (B) and (C), the Secretary shall pay to each eli9 gible State (after the Secretary has determined

10 that the State has satisfied the matching re11 quirement under subsection (b)) an amount

12 that bears the same ratio to such amount for

13 such fiscal year as the number of children

14 under the age of 18 that reside in the eligible

15 State bears to the total number of children

16 under the age of 18 who reside in all such eligi17 ble States for such fiscal year.

18 ‘‘(B) MINIMUM ALLOTMENT.—In no case

19 shall the amount of a payment to an eligible

20 State for a fiscal year be less than an amount

21 equal to 0.5 percent of the amount appropriated

22 under subsection (a) of section 443 for the fis23 cal year, after the reservation of funds required

24 under subsection (b) of that section.
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1 ‘‘(C) PRO RATA REDUCTIONS.—The Sec2 retary shall make pro rata reductions in the

3 amounts of the allotments determined under

4 subparagraph (A) for a fiscal year to the extent

5 necessary to comply with subparagraph (B).

6 ‘‘(2) TERRITORIES.—From the amounts re7 served under section 443(b)(1) for a fiscal year, the

8 Secretary shall pay to each territory described in

9 section 440(5)(B) with an approved plan that meets

10 the requirements of section 442 (after the Secretary

11 has determined that the territory has satisfied the

12 matching requirement under subsection (b)) an

13 amount that bears the same ratio to such amount

14 for such fiscal year as the number of children under

15 the age of 18 that reside in the territory bears to

16 the total number of children under the age of 18

17 who reside in all such territories for such fiscal year.

18 ‘‘(3) INDIAN TRIBES OR TRIBAL ORGANIZA19 TIONS.—From the amount reserved under section

20 443(b)(2) for a fiscal year, the Secretary shall pay

21 to each Indian tribe with an approved plan that

22 meets the requirements of section 442(c) (after the

23 Secretary has determined that the Indian tribe has

24 satisfied the matching requirement under subsection

25 (b)) an amount that bears the same ratio to such re-
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1 served amount for such fiscal year as the number of

2 children under the age of 18 in the Indian tribe

3 bears to the total number of children under the age

4 of 18 in all Indian tribes with plans so approved for

5 such fiscal year, as determined by the Secretary on

6 the basis of the most current and reliable informa7 tion available to the Secretary. For purposes of mak8 ing the allocations required under the preceding sen9 tence, an Indian tribe may submit data and other in10 formation that it has on the number of Indian chil11 dren under the age of 18 for consideration by the

12 Secretary.

13 ‘‘(b) MATCHING REQUIREMENT.—

14 ‘‘(1) IN GENERAL.—In order to receive a grant

15 under this subpart for a fiscal year, an eligible State

16 or Indian tribe shall provide through non-Federal

17 contributions the applicable percentage determined

18 under paragraph (2) for such fiscal year of the costs

19 of conducting activities funded in whole or in part

20 with funds provided under the grant. Such contribu21 tions shall be paid jointly by the State agencies, in

22 the case of an eligible State, or by an Indian tribe.

23 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes

24 of paragraph (1), the applicable percentage for an

25 eligible State or Indian tribe for a fiscal year is—
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1 ‘‘(A) 15 percent, in the case of fiscal years

2 2002 and 2003;

3 ‘‘(B) 20 percent, in the case of fiscal years

4 2004 and 2005; and

5 ‘‘(C) 25 percent, in the case of fiscal year

6 2006.

7 ‘‘(3) SOURCE OF MATCH.—

8 ‘‘(A) ELIGIBLE STATES.—The non-Federal

9 contributions required of an eligible State under

10 this subsection may be in cash or in kind, fairly

11 evaluated, including plant, equipment, or serv12 ices. The contributions may be made directly or

13 through donations from public or private enti14 ties. Amounts provided by the Federal Govern15 ment, or services assisted or subsidized to any

16 significant extent by the Federal Government

17 may not be included in determining whether an

18 eligible State has provided the applicable per19 centage of such contributions for a fiscal year.

20 ‘‘(B) INDIAN TRIBES.—With respect to an

21 Indian tribe, such contributions may be made in

22 cash, through donated funds, through non-pub23 lic third party in kind contributions, or from

24 Federal funds received under any of the fol25 lowing provisions of law:
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1 ‘‘(i) The Indian Child Welfare Act of

2 1978 (25 U.S.C. 1901 et seq.).

3 ‘‘(ii) The Indian Self-Determination

4 and Education Assistance Act (25 U.S.C.

5 450b et seq.).

6 ‘‘(iii) Title I of the Housing and Com7 munity Development Act of 1974 (42

8 U.S.C. 5301 et seq.).

9 ‘‘(4) WAIVER.—

10 ‘‘(A) ELIGIBLE STATES.—In the case of an

11 eligible State, the Secretary, after consultation

12 with the Assistant Secretary for the Adminis13 tration for Children and Families and the Ad14 ministrator of the Substance Abuse and Mental

15 Health Services Administration, may modify the

16 applicable percentage determined under para17 graph (2) for matching funds if the Secretary

18 determines that economic conditions in the eli19 gible State justify making such modification.

20 ‘‘(B) INDIAN TRIBES.—In the case of an

21 Indian tribe, the Secretary may modify the ap22 plicable percentage determined under such

23 paragraph if the Secretary determines that it

24 would be inappropriate to apply to the Indian

25 tribe, taking into the resources and needs of the
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1 tribe and the amount of funds the tribe would

2 receive under a grant made under this section.

3 ‘‘(c) USE OF FUNDS.—Funds provided under a grant

4 made under this subpart may only be used to carry out

5 activities specified in the plan, as approved by the Sec6 retary.

7 ‘‘(d) DEADLINE FOR REQUEST FOR PAYMENT.—An

8 eligible State or Indian tribe shall apply to be paid funds

9 under a grant made under this subpart not later than the

10 beginning of the fourth quarter of a fiscal year or such

11 funds shall be reallotted under subsection (f).

12 ‘‘(e) CARRYOVER OF FUNDS.—Funds paid to an eli13 gible State or Indian tribe under a grant made under this

14 subpart for a fiscal year may be expended in that fiscal

15 year or the succeeding fiscal year.

16 ‘‘(f) REALLOTMENT OF FUNDS.—

17 ‘‘(1) ELIGIBLE STATES.—In the case of an eli18 gible State that does not apply for funds allotted to

19 the eligible State under a grant made under this

20 subpart for a fiscal year within the time provided

21 under subsection (d), or that does not expend such

22 funds during the time provided under subsection (e),

23 the funds which the eligible State would have been

24 entitled to for such fiscal year shall be reallotted to

25 1 or more other eligible States on the basis of each
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1 such State’s relative need for additional payments,

2 as determined by the Secretary, after consultation

3 with the Assistant Secretary for the Administration

4 for Children and Families and the Administrator of

5 the Substance Abuse and Mental Health Services

6 Administration.

7 ‘‘(2) INDIAN TRIBES.—In the case of an Indian

8 tribe that does not expend funds allotted to the tribe

9 during the time provided under subsection (e), the

10 funds to which the Indian tribe would have been en11 titled to for such fiscal year shall be reallotted to the

12 remaining Indian tribes that are implementing ap13 proved plans in amounts that are proportional to the

14 percentage of Indian children under the age of 18 in

15 each such tribe.

16 ‘‘SEC. 445. PERFORMANCE ACCOUNTABILITY; REPORTS

17 AND EVALUATIONS.

18 ‘‘(a) PERFORMANCE MEASUREMENT.—

19 ‘‘(1) ESTABLISHMENT OF INDICATORS.—The

20 Secretary, in consultation with the Assistant Sec21 retary for the Administration for Children and Fam22 ilies, the Administrator of the Substance Abuse and

23 Mental Health Services Administration, Chief Exec24 utive Officers of a State or Territory, State legisla25 tors, State and local public officials responsible for
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1 administering child welfare and alcohol and drug

2 abuse prevention and treatment programs, court

3 staff, consumers of the services, and advocates for

4 children and parents who come to the attention of

5 the child welfare system, shall, within 12 months of

6 the date of enactment of the Child Protection/Alco7 hol and Drug Partnership Act of 2001, establish in8 dicators that will be used to assess periodically the

9 performance of eligible States and Indian tribes in

10 using grant funds provided under this subpart to

11 promote child safety, permanence, and well-being

12 and recovery in families who come to the attention

13 of the child welfare system.

14 ‘‘(2) COORDINATION.—The indicators estab15 lished under paragraph (1) shall be based on and co16 ordinated with the performance outcomes established

17 for the child welfare system pursuant to section

18 203(b) of the Adoption and Safe Families Act of

19 1997 and the performance measures developed

20 under subpart II of part B of title XIX of the Public

21 Health Service Act (relating to the substance abuse

22 prevention and treatment block grant).

23 ‘‘(3) PURPOSE.—The indicators will be used to

24 measure periodically the progress made by the State

25 agencies and by child welfare and alcohol and drug
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1 abuse prevention and treatment agencies serving

2 children in Indian tribes in the activities that such

3 agencies jointly engage in with such grant funds. An

4 eligible State or Indian tribe will be measured

5 against itself, assessing progress over time against

6 a baseline established at the time the grant activities

7 were undertaken.

8 ‘‘(4) ILLUSTRATIVE EXAMPLES.—The indica9 tors developed should address the range of activities

10 that eligible States and Indian tribes have the option

11 of engaging in with such grant funds. Examples of

12 the types of progress to be measured in the different

13 areas of activity include the following:

14 ‘‘(A) Improving the screening and assess15 ment of families who come to the attention of

16 the child welfare system with alcohol and drug

17 problems, so such families can be promptly re18 ferred for appropriate treatment when nec19 essary.

20 ‘‘(B) Increasing the availability of com21 prehensive and timely individualized treatment

22 for families with alcohol and drug problems who

23 come to the attention of the child welfare sys24 tem.
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1 ‘‘(C) Increasing the number or proportion

2 of families who, when they come to the atten3 tion of the child welfare system with alcohol

4 and drug problems, promptly enter appropriate

5 treatment.

6 ‘‘(D) Increasing the engagement and re7 tention in treatment of families with alcohol

8 and drug problems who come to the attention

9 of the child welfare system.

10 ‘‘(E) Decreasing the number of children

11 who re-enter foster care after being returned to

12 families who had alcohol or drug problems when

13 the children entered foster care.

14 ‘‘(F) Increasing the number or proportion

15 of staff in both the public child welfare and al16 cohol and drug abuse prevention and treatment

17 agencies who have received training on the

18 needs of families that come to the attention of

19 the child welfare and alcohol and drug abuse

20 prevention and treatment systems for help, and

21 the help that can be provided to such families.

22 ‘‘(G) Increasing the proportion of parents

23 who complete treatment for alcohol or drug

24 abuse and show improvement in their pre-em25 ployment or employment status.
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1 ‘‘(5) DETERMINATION OF PROGRESS.—

2 ‘‘(A) INITIAL REPORT.—Not later than the

3 end of the first fiscal year in which funds are

4 received under a grant made under this sub5 part, the State agencies in each eligible State

6 that receives such funds, and the Indian tribes

7 that receive such funds, shall submit to the Sec8 retary a report on the activities carried out dur9 ing the fiscal year with such funds. The report

10 shall contain such information as the Secretary

11 determines is necessary to provide an accurate

12 description of the activities conducted with such

13 funds and of any changes in the use of such

14 funds that are planned for the succeeding fiscal

15 year.

16 ‘‘(B) USE OF INDICATORS.—As soon as

17 possible after the establishment of indicators

18 under paragraph (1), the State agencies and In19 dian tribes shall conduct evaluations, directly or

20 under contract, of their progress with respect to

21 such indicators that are directly related to ac22 tivities the eligible State or Indian tribe is en23 gaging in with such grant funds and include in24 formation on the evaluation in the reports to

25 the Secretary required under subparagraphs
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1 (C) and (D). After the third year in which such

2 activities are conducted, an eligible State or In3 dian tribe shall include in the evaluation at

4 least some indicators that address improve5 ments in treatment for families with alcohol

6 and drug problems who come to the attention

7 of the child welfare system.

8 ‘‘(C) SUBSEQUENT REPORTS.—After the

9 initial report is submitted under subparagraph

10 (A), an eligible State or Indian tribe shall sub11 mit to the Secretary, not later than June 30 of

12 each fiscal year thereafter in which the State or

13 tribe carries out activities with grant funds pro14 vided under this subpart, a report on the appli15 cation of the indicators established under para16 graph (1) to such activities. The reports shall

17 include an explanation regarding why the spe18 cific indicators used were chosen, how such in19 dicators are expected to impact a child’s safety,

20 permanence, well-being, and parental recovery,

21 and the results (as of the date of submission of

22 the report) of the evaluation conducted under

23 subparagraph (B).

24 ‘‘(D) FINAL REPORT.—Not later than Sep25 tember 30, 2006, each eligible State and Indian
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1 tribe with an approved plan under this part

2 shall submit a final report on the evaluations

3 conducted under subparagraph (B) and the

4 progress made in achieving the goals specified

5 in the plan of the State or Indian tribe.

6 ‘‘(E) FAILURE TO REPORT.—

7 ‘‘(i) IN GENERAL.—Subject to clause

8 (ii), an eligible State or Indian tribe that

9 fails to submit the reports required under

10 this paragraph or to conduct the evalua11 tion required under subparagraph (B) shall

12 not be eligible to receive grant funds pro13 vided under this subpart for the fiscal year

14 following the fiscal year in which such

15 State or Indian tribe failed to submit such

16 report or conduct such evaluation.

17 ‘‘(ii) CORRECTIVE ACTION.—An eligi18 ble State or Indian tribe to which clause

19 (i) applies may, notwithstanding such

20 clause, receive grant funds under this sub21 part for a succeeding fiscal year if prior to

22 September 30 of the fiscal year in which

23 such failure occurred, the State agencies of

24 the eligible State, or the Indian tribe, sub25 mit to the Secretary a plan to monitor and
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1 evaluate in a timely manner the activities

2 conducted with such funds, and such plan

3 is approved in a timely manner by the Sec4 retary, after consultation with the Admin5 istration for Children and Families and the

6 Substance Abuse and Mental Health Serv7 ices Administration.

8 ‘‘(b) SECRETARIAL REPORTS AND EVALUATIONS.—

9 ‘‘(1) ANNUAL REPORTS.—On the basis of re10 ports submitted under subsection (a), the Secretary,

11 in consultation with the Assistant Secretary for the

12 Administration for Children and Families and the

13 Administrator of the Substance Abuse and Mental

14 Health Services Administration, shall report annu15 ally, beginning on October 1, 2003, to the Com16 mittee on Ways and Means of the House of Rep17 resentatives and the Committee on Finance of the

18 Senate on the joint activities conducted with funds

19 provided under grants made under this subpart, the

20 indicators that have been established, and the

21 progress that has been made in addressing the needs

22 of families with alcohol and drug abuse problems

23 who come to the attention of the child welfare sys24 tem and in achieving the goals of child safety, per25 manence, and family stability.
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1 ‘‘(2) EVALUATIONS.—Not later than 6 months

2 after the end of each 5-year funding cycle under this

3 subpart, the Secretary shall submit a report to the

4 committees described in paragraph (1) that summa5 rizes the results of the evaluations conducted by eli6 gible States and Indian tribes under subsection

7 (a)(5)(B), as reported by such States and Indian

8 tribes in accordance with subparagraphs (C) and

9 (D) of subsection (a)(5). The Secretary shall include

10 in the report required under this paragraph rec11 ommendations for further legislative or administra12 tive actions that are designed to assist children and

13 families with alcohol and drug abuse problems who

14 come to the attention of the child welfare system.’’.

15 Subtitle E—Permanency Grants

16 SEC. 8401. ESTABLISHMENT OF PERMANENCY GRANTS

17 PROGRAM.

18 Part E of title IV of the Social Security Act (42

19 U.S.C. 670 et seq.), as amended by section 8011(b), is

20 amended by adding at the end the following:

21 ‘‘SEC. 479C. PERMANENCY GRANTS.

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

23 ‘‘(1) QUALIFIED STATE AGENCY.—The term

24 ‘qualified State agency’ means, with respect to a

25 State, the State agency—
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1 ‘‘(A) with responsibility for administering

2 the program authorized by subpart 1 of part B

3 and the program authorized under this part;

4 and

5 ‘‘(B) that submits an application in ac6 cordance with the requirements of subsection

7 (c).

8 ‘‘(2) WAITING CHILDREN.—The term ‘waiting

9 children’ means the children described in subsection

10 (b)(2).

11 ‘‘(b) AUTHORITY TO AWARD GRANTS.—The Sec12 retary shall award a one-time grant to each qualified State

13 agency for the purposes of—

14 ‘‘(1) promoting the permanency goals of the

15 Adoption and Safe Families Act of 1997; and

16 ‘‘(2) enabling the agency to reduce existing

17 backlogs of children with permanent placement plans

18 pursuant to that Act who, as of the date of enact19 ment of that Act, were waiting to be placed in per20 manent homes, through return to their families,

21 placement in adoptive homes, or placement with a

22 legal guardian or a fit or willing relative.

23 ‘‘(c) APPLICATION.—A State agency desiring a grant

24 under this section shall submit an application for a grant,
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1 in such form and manner as the Secretary shall require,

2 that contains a description of the following:

3 ‘‘(1) The barriers to achieving the permanency

4 goals established in the Adoption and Safe Families

5 Act of 1997.

6 ‘‘(2) The results of the review of the perma7 nency plans for children in foster care on November

8 19, 1997 (the date of enactment of that Act),

9 including—

10 ‘‘(A) the number of children who have per11 manency plans;

12 ‘‘(B) a description of the permanency goals

13 for such children;

14 ‘‘(C) the age of such children;

15 ‘‘(D) the current placements and special

16 needs of such children; and

17 ‘‘(E) the number of such children who

18 have and the number of such children who have

19 not yet been placed in accordance with those

20 plans.

21 ‘‘(3) The activities the agency proposes, includ22 ing a specific plan and timetable, to—

23 ‘‘(A) move the waiting children to perma24 nent homes; and
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1 ‘‘(B) reduce the backlog of waiting chil2 dren.

3 ‘‘(4) How the grant funds will be used to

4 help secure permanent homes for waiting chil5 dren.

6 ‘‘(5) Subject to subsection (e), the infor7 mation described in that subsection.

8 ‘‘(c) USE OF FUNDS.—Funds provided under a grant

9 made under this section may be used for any purpose that

10 the Secretary determines will assist the State agency to

11 secure permanent homes for waiting children.

12 ‘‘(d) AVAILABILITY OF FUNDS.—Funds awarded

13 under a grant made under this section shall remain avail14 able for expenditure by a qualified State agency through

15 the end of the second succeeding fiscal year.

16 ‘‘(e) COORDINATION WITH GRANTS TO COURTS TO

17 REDUCE BACKLOGS.—If a qualified State agency receiv18 ing a grant under this section is in a State where the State

19 or local courts are recipients of grants pursuant to the

20 Strengthening Abuse and Neglect Courts Act of 2000 to

21 reduce pending backlogs of abuse and neglect cases and

22 promote permanency, the application submitted under

23 subsection (b) shall include a description of how the pro24 posed backlog reduction activities undertaken with funds

25 provided under a grant under this section will be coordi-
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1 nated with the activities undertaken by the State or local

2 courts with funds provided under that Act.

3 ‘‘(f) PRIORITY OF AWARDS.—In awarding grants

4 under this section, the Secretary shall give priority to

5 qualified State agencies that can demonstrate that they

6 already have taken steps to move waiting children to per7 manent homes.

8 ‘‘(g) REPORT.—Not later than 60 days after the end

9 of each fiscal year for which a qualified State agency ex10 pends funds under a grant made under this section, and

11 90 days after the date of the final expenditure of such

12 funds, the agency shall submit a report to the Secretary

13 that includes any information that the Secretary deter14 mines would assist other jurisdictions in achieving the per15 manency goals of the Adoption and Safe Families Act of

16 1997, including the following:

17 ‘‘(1) The barriers to permanence that are being

18 or were addressed with grant funds.

19 ‘‘(2) The most effective strategies used to re20 duce the backlog of waiting children.

21 ‘‘(3) The activities funded under the grant that

22 helped to reduce such backlog.

23 ‘‘(4) The numbers of waiting children who were

24 moved to permanent homes, including the ages of
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1 such children, any special needs of such children,

2 and a description of the children’s placements.

3 ‘‘(5) The efforts being made to ensure that the

4 placements continue to be permanent.

5 ‘‘(6) The number of waiting children who re6 main in care without permanent families.

7 ‘‘(h) FUNDING.—There is appropriated, out of any

8 money in the Treasury not otherwise appropriated,

9 $200,000,000 for each of fiscal years 2002 and 2003 for

10 the purpose of making grants under this section.’’.

11 Subtitle F—Addressing the Needs

12 of Children Exposed to Domes13 tic Violence

14 SEC. 8501. PURPOSES.

15 The purposes of this subtitle are—

16 (1) to expand programs, and create new inter17 ventions, services, and treatment options, for chil18 dren who are exposed to domestic violence that take

19 into consideration the needs of both child and adult

20 victims of domestic violence and emphasize account21 ability for the perpetrators of domestic violence;

22 (2) to improve training concerning domestic vio23 lence, and the impact of domestic violence on chil24 dren, for child welfare and domestic violence profes25 sionals, other providers of services for children, child
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1 educators and counselors, and law enforcement per2 sonnel and judges;

3 (3) to educate children in elementary schools

4 and secondary schools about domestic violence and

5 expand the interventions that are available to chil6 dren who are exposed to domestic violence; and

7 (4) to expand research and data collection con8 cerning the impact of domestic violence on children

9 in order to better meet the service and therapeutic

10 needs of children exposed to domestic violence.

11 SEC. 8502. DEFINITIONS.

12 In this subtitle:

13 (1) DOMESTIC VIOLENCE.—The term ‘‘domestic

14 violence’’ includes—

15 (A) an act or threat of violence, not includ16 ing an act of self defense, committed by—

17 (i) a current or former spouse of the

18 victim;

19 (ii) a person with whom the victim

20 shares a child in common;

21 (iii) a person who is cohabiting with

22 or has cohabited with the victim;

23 (iv) a person who is or has been in a

24 social relationship of a romantic or inti25 mate nature with the victim;
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1 (v) a person similarly situated to a

2 spouse of the victim under the domestic or

3 family violence laws of the jurisdiction of

4 the victim; or

5 (vi) any other person against a victim

6 who is protected from that person’s act

7 under the domestic or family violence laws

8 of the jurisdiction; and

9 (B) sexual assault.

10 (2) EXPOSED TO DOMESTIC VIOLENCE.—

11 (A) IN GENERAL.—The term ‘‘exposed to

12 domestic violence’’ means exposed to—

13 (i) an act of domestic violence that

14 constitutes actual or attempted physical

15 assault; or

16 (ii) a threat or other action that

17 places the victim in fear of domestic vio18 lence.

19 (B) EXPOSED TO.—In subparagraph (A),

20 the term ‘‘exposed to’’ means—

21 (i) directly observing an act, threat, or

22 action described in subparagraph (A), or

23 the aftermath of that act, threat, or action;

24 or
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1 (ii) being within earshot of an act,

2 threat, or action described in subparagraph

3 (A), or the aftermath of that act, threat,

4 or action.’’.

5 SEC. 8503. GRANTS TO ADDRESS THE NEEDS OF CHILDREN

6 WHO ARE EXPOSED TO DOMESTIC VIOLENCE.

7 (a) IN GENERAL.—The Family Violence Prevention

8 and Services Act (42 U.S.C. 10401 et seq.), as amended

9 by section 1203 of the Violence Against Women Act of

10 2000, is further amended by adding at the end the fol11 lowing:

12 ‘‘SEC. 320. MULTISYSTEM INTERVENTIONS FOR CHILDREN

13 WHO ARE EXPOSED TO DOMESTIC VIOLENCE.

14 ‘‘(a) GRANTS AUTHORIZED.—

15 ‘‘(1) AUTHORITY.—The Secretary, acting

16 through the Director of Community Services, in the

17 Administration for Children and Families, is author18 ized to award grants to eligible entities to conduct

19 programs to encourage the use of domestic violence

20 intervention models using multisystem partnerships

21 to address the assessed needs of children who are ex22 posed to domestic violence.

23 ‘‘(2) TERM AND AMOUNT.—Each grant award24 ed under this section shall be awarded for a term of
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1 3 years and in an amount of not more than

2 $500,000 for each such year.

3 ‘‘(3) ELIGIBLE ENTITIES.—To be eligible to re4 ceive a grant under this section, an entity shall—

5 ‘‘(A) be a nonprofit private organization;

6 ‘‘(B)(i) demonstrate recognized expertise

7 in the area of domestic violence on children; or

8 ‘‘(ii) enter into a memorandum of under9 standing regarding the intervention program

10 that—

11 ‘‘(I) is entered into with the State or

12 tribal domestic violence coalition and enti13 ties carrying out domestic violence pro14 grams that provide shelter or related as15 sistance in the locality in which the inter16 vention program will be operated; and

17 ‘‘(II) demonstrates collaboration on

18 the intervention program with the coalition

19 and entities and the support of the coali20 tion and entities for the intervention pro21 gram; and

22 ‘‘(C) demonstrate a history of providing

23 advocacy, health care, mental health, or other

24 crisis-related services to children.
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1 ‘‘(b) USE OF FUNDS.—An entity that receives a

2 grant under this section shall use amounts provided

3 through the grant to conduct a program to design or rep4 licate, and implement, domestic violence intervention mod5 els that use multisystem partners to respond to the needs

6 of children who are exposed to domestic violence. Such a

7 program shall—

8 ‘‘(1)(A) involve collaborative partnerships

9 with—

10 ‘‘(i) local entities carrying out domestic vi11 olence programs that provide shelter or related

12 assistance; and

13 ‘‘(ii) partners that are courts, schools, so14 cial service providers, health care providers, po15 lice, early childhood agencies, entities carrying

16 out Head Start programs under the Head Start

17 Act (42 U.S.C. 9831 et seq.), or entities car18 rying out child protection, welfare, job training,

19 housing, battered women’s service, or children’s

20 mental health programs; and

21 ‘‘(B) be carried out to design and implement

22 protocols and systems to identify, refer, and appro23 priately respond to the needs of, children who are

24 exposed to domestic violence and who participate in

25 programs administered by the partners;
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1 ‘‘(2) include guidelines to evaluate the needs of

2 a child and make appropriate intervention rec3 ommendations;

4 ‘‘(3) include guidelines that respond appro5 priately to the overlapping needs of children who are

6 exposed to domestic violence and who are also being

7 abused or neglected;

8 ‘‘(4) include institutionalized procedures to en9 hance or ensure the safety and security (including

10 economic security) of a battered parent, and as a re11 sult, the child of the parent;

12 ‘‘(5) provide direct counseling and advocacy for

13 adult victims of domestic violence and their children

14 who are exposed to domestic violence, including pro15 viding an evaluation of the specific needs of each

16 such child and of the nature of the treatment needed

17 by the child;

18 ‘‘(6) include the development or replication of a

19 mental health treatment model to meet the needs of

20 children for whom such treatment has been identi21 fied as appropriate;

22 ‘‘(7) include policies and protocols for maintain23 ing the confidentiality of the battered parent and

24 child;
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1 ‘‘(8) provide community outreach and training

2 to enhance the capacity of professionals who work

3 with children to appropriately identify and respond

4 to the needs of children who are exposed to domestic

5 violence;

6 ‘‘(9) include procedures for documenting inter7 ventions used for each child and family served under

8 the program carried out under the grant; and

9 ‘‘(10) include plans to perform a systematic

10 outcome evaluation to evaluate the effectiveness of

11 the interventions.

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

13 under this section, an entity shall prepare and submit to

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

15 and containing such information as the Secretary may re16 quire.

17 ‘‘(d) TECHNICAL ASSISTANCE.—Not later than 90

18 days after the date of enactment of this section, the Sec19 retary shall identify successful programs providing multi20 system and mental health interventions to address the

21 needs of children who are exposed to domestic violence.

22 Not later than 60 days before the Secretary solicits appli23 cations for grants under this section, the Secretary shall

24 enter into an agreement with 1 or more entities carrying

25 out the identified programs to provide technical assistance
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1 to the applicants and recipients of the grants. The Sec2 retary may use not more than 5 percent of the amount

3 appropriated for a fiscal year under subsection (e) to pro4 vide the technical assistance.

5 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—

6 ‘‘(1) IN GENERAL.—There are authorized to be

7 appropriated to carry out this section $5,000,000 for

8 each of fiscal years 2002 through 2004 and

9 $10,000,000 for each of fiscal years 2005 and 2006.

10 ‘‘(2) AVAILABILITY.—Amounts appropriated

11 under paragraph (1) shall remain available until ex12 pended.

13 ‘‘(f) DEFINITIONS.—In this section, the terms ‘do14 mestic violence’ and ‘exposed to domestic violence’ have

15 the meanings given the terms in section 8502 of the Leave

16 No Child Behind Act of 2001.’’.

17 (b) ADMINISTRATION.—Section 305(a) of the Family

18 Violence Prevention and Services Act (42 U.S.C.

19 10404(a)) is amended—

20 (1) by striking ‘‘an employee’’ and inserting ‘‘1

21 or more employees’’; and

22 (2) by striking ‘‘The individual’’ and inserting

23 ‘‘Each individual’’.
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1 SEC. 8504. TRAINING AND COORDINATION OF CHILD WEL2 FARE AGENCIES AND DOMESTIC VIOLENCE

3 SERVICE PROVIDERS.

4 The Family Violence Prevention and Services Act (42

5 U.S.C. 10401 et seq.), as amended by section 8503, is fur6 ther amended by adding at the end the following:

7 ‘‘SEC. 321. TRAINING AND COORDINATION OF CHILD WEL8 FARE AGENCIES AND DOMESTIC VIOLENCE

9 SERVICE PROVIDERS.

10 ‘‘(a) PURPOSE.—The purpose of this section is to en11 courage cross training and coordination between State and

12 local child welfare agencies and domestic violence service

13 providers—

14 ‘‘(1) to encourage the child welfare agencies, as

15 part of their ongoing child welfare responsibilities, to

16 recognize domestic violence and treat such violence

17 as a serious problem threatening the safety and well18 being of child and adult victims;

19 ‘‘(2) to educate the domestic violence service

20 providers about child welfare policies that affect

21 child and adult victims and the effects of domestic

22 violence on children; and

23 ‘‘(3) to increase cooperation and collaboration

24 between the domestic violence service providers and

25 child welfare agencies.

26 ‘‘(b) DEFINITION.—In this section:
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1 ‘‘(1) DOMESTIC VIOLENCE.—The term ‘domes2 tic violence’ has the meaning given the term in sec3 tion 8502 of the Leave No Child Behind Act of

4 2001.

5 ‘‘(2) EXPOSED TO DOMESTIC VIOLENCE.—The

6 term ‘exposed to domestic violence’ has the meaning

7 given the term in such section 8502.

8 ‘‘(c) GRANT AUTHORITY.—

9 ‘‘(1) IN GENERAL.—The Attorney General and

10 the Secretary shall jointly make grants to eligible

11 entities to enable the entities to carry out initiatives

12 to train staff and modify policies, procedures, pro13 grams, and practices so that the policies, procedures,

14 programs, and practices are consistent with prin15 ciples of—

16 ‘‘(A) protecting children;

17 ‘‘(B) increasing the safety and well-being

18 of the children, by—

19 ‘‘(i) increasing the safety of parents of

20 the children who are not the perpetrators

21 of domestic violence; and

22 ‘‘(ii) supporting the autonomy and ca23 pacity of parents of the children who are

24 victims of domestic violence (referred to in

25 this section as ‘adult victims’); and
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1 ‘‘(C) holding adult perpetrators, not child

2 and adult victims, accountable for stopping the

3 domestic violence.

4 ‘‘(2) GRANT PERIODS.—The Attorney General

5 and the Secretary shall make the grants for a period

6 of 3 years.

7 ‘‘(d) ELIGIBLE ENTITIES.—To be eligible to receive

8 a grant under this section, an entity shall be a partnership

9 of—

10 ‘‘(1) a State child welfare agency, a tribal orga11 nization that serves as a child welfare agency, or a

12 local child welfare agency; and

13 ‘‘(2) a domestic violence service provider, such

14 as—

15 ‘‘(A) a State domestic violence coalition; or

16 ‘‘(B) another private nonprofit organiza17 tion that is concerned with domestic violence

18 and has a documented history of effective work

19 concerning domestic violence and the impact of

20 domestic violence on children.

21 ‘‘(e) USES OF FUNDS; GOALS.—An entity that re22 ceives a grant under this section shall use the funds made

23 available through the grant to carry out goals consisting

24 of—

25 ‘‘(1) recognizing—
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1 ‘‘(A) the overlap between child abuse and

2 neglect, including child sexual abuse, and do3 mestic violence in families;

4 ‘‘(B) the dynamics of domestic violence;

5 ‘‘(C) the dangers posed to both child and

6 adult victims of domestic violence;

7 ‘‘(D) the physical, emotional, and develop8 mental impact of domestic violence on children;

9 ‘‘(E) the needs of adult victims of domestic

10 violence and the need to hold adult perpetrators

11 of domestic violence accountable for their ac12 tions,

13 in order to provide appropriate services to reduce

14 risks to children;

15 ‘‘(2) increasing collaboration between child wel16 fare agencies and domestic violence service

17 providers, including the education of domestic vio18 lence service providers about child welfare practices

19 and protocols that affect the child and adult victims;

20 ‘‘(3) developing and implementing policies, pro21 cedures, programs, and practice guidelines to—

22 ‘‘(A) reflect the principles stated in sub23 section (c);
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1 ‘‘(B) identify and assess, and respond ap2 propriately to, domestic violence in child protec3 tion cases; and

4 ‘‘(C) ensure the confidentiality of informa5 tion on families that is shared between child

6 welfare agencies and entities carrying out com7 munity-based domestic violence programs;

8 ‘‘(4) developing appropriate responses in cases

9 of domestic violence, including developing a safety

10 plan and providing other appropriate services and

11 interventions that ensure the safety of both the child

12 and adult victims of the domestic violence;

13 ‘‘(5) creating links between—

14 ‘‘(A) child welfare agencies;

15 ‘‘(B) entities carrying out community16 based domestic violence programs;

17 ‘‘(C) rape crisis centers;

18 ‘‘(D) other entities addressing the safety,

19 health, mental health, social service, housing,

20 and economic needs of child and adult victims

21 of domestic violence;

22 ‘‘(E) juvenile, family, and criminal courts;

23 and

24 ‘‘(F) law enforcement agencies; and
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1 ‘‘(6) collecting data indicating the number of

2 child protection cases identified as involving domes3 tic violence and the number of such cases that re4 peatedly return to the child welfare system, in order

5 to evaluate and assess service and program improve6 ments.

7 ‘‘(f) APPLICATIONS.—To be eligible to receive a grant

8 under this section, an entity shall submit an application

9 to the Attorney General and the Secretary at such time,

10 in such manner, and containing such information as the

11 Attorney General and the Secretary may require. The ap12 plication shall contain the following information and as13 surances:

14 ‘‘(1) Information outlining the specific activities

15 that will be undertaken to achieve the goals set forth

16 in subsection (e).

17 ‘‘(2) An assurance that the entity will develop,

18 during the period of the grant, in collaboration with

19 other organizations, a range of training resources,

20 policies, procedures, programs, and practices relating

21 to child and adult victims of domestic violence that

22 include at least the following:

23 ‘‘(A)(i) Relevant protocols for the inves24 tigation of and followup to reports of child

25 abuse and neglect, and the screening, intake,
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1 and assessment of, and provision of appropriate

2 services for, victims of child abuse and neglect.

3 ‘‘(ii) A procedure and schedule for training

4 child welfare staff about domestic violence, the

5 impact of domestic violence on child and adult

6 victims, and the appropriate use of protocols

7 described in clause (i).

8 ‘‘(iii) A procedure and schedule for train9 ing domestic violence service providers about

10 child welfare agency protocols and procedures

11 for victims of child abuse and the impact of do12 mestic violence on child victims.

13 ‘‘(iv) Policies that require that the training

14 described in clause (ii)—

15 ‘‘(I) be provided to child welfare staff

16 including line staff, supervisors, and ad17 ministrators, and be provided first to staff

18 responsible for the investigation, followup,

19 screening, intake, assessment, and provi20 sion of services described in clause (i); and

21 ‘‘(II) be conducted in collaboration

22 with domestic violence experts, staff from

23 community-based domestic violence pro24 grams and rape crisis centers, and relevant

25 representatives of law enforcement.
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1 ‘‘(v) Policies that require that, at a min2 imum, the protocols and training described in

3 clauses (ii) and (iii) shall address—

4 ‘‘(I) the dynamics of domestic vio5 lence, the impact of domestic violence on

6 children exposed to domestic violence, and

7 the relationship of domestic violence to

8 child abuse and neglect;

9 ‘‘(II) screening for domestic violence

10 and assessing danger to the child and

11 adult victims of the domestic violence;

12 ‘‘(III) applicable Federal, State, and

13 local laws pertaining to domestic violence;

14 ‘‘(IV) appropriate interventions for

15 the child and adult victims that protect the

16 safety of both types of victims and give ap17 propriate consideration to preserving the

18 safety of family members not responsible

19 for the child abuse or neglect involved;

20 ‘‘(V) appropriate interventions for

21 adult perpetrators of domestic violence to

22 reduce the risk of further violence toward

23 child and adult victims of domestic vio24 lence; 
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1 ‘‘(VI) appropriate supervision of child

2 welfare staff working with families in

3 which there has been domestic violence, in4 cluding supervision relating to issues in5 volving staff safety;

6 ‘‘(VII) protecting the safety and con7 fidentiality of the child and adult victims,

8 consistent with laws requiring mandatory

9 reporting of child abuse and neglect; and

10 ‘‘(VIII) developing child protection

11 case plans that recognize the need to hold

12 adult perpetrators, not victims, responsible

13 for stopping domestic violence.

14 ‘‘(B) Community-based networks of serv15 ices and support that—

16 ‘‘(i) respond effectively to the com17 prehensive needs of child and adult victims

18 of domestic violence;

19 ‘‘(ii) include new services and linkages

20 to existing services; and

21 ‘‘(iii) include at least the following

22 services:

23 ‘‘(I) Appropriate referrals to

24 community-based domestic violence

25 programs and rape crisis centers with
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1 the capacities to support adult victims

2 of domestic violence who are parents

3 of abused or neglected children.

4 ‘‘(II) Emergency shelter and

5 transitional housing for adult victims

6 of domestic violence and their chil7 dren.

8 ‘‘(III) Legal assistance and advo9 cacy for victims of domestic violence,

10 including, when appropriate, assist11 ance in obtaining and entering orders

12 of protection.

13 ‘‘(IV) Support and training to

14 assist parents to help their children

15 cope with the impact of domestic vio16 lence.

17 ‘‘(V) Programs to help children

18 who have been exposed to domestic vi19 olence.

20 ‘‘(VI) Treatment for adult per21 petrators of domestic violence whose

22 children are the subjects of child pro23 tection cases to promote the safety

24 and well-being of the children, and ap25 propriate coordination of such treat-
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1 ment with the juvenile, family, and

2 criminal courts with which the per3 petrators are involved.

4 ‘‘(VII) Health, mental health,

5 and other necessary supportive serv6 ices.

7 ‘‘(VIII) Assistance to obtain

8 housing and necessary economic sup9 port.

10 ‘‘(3) Information that—

11 ‘‘(A) identifies the agencies and providers

12 that will be responsible for carrying out the ini13 tiative for which the entity seeks the grant; and

14 ‘‘(B)(i) includes documentation from enti15 ties carrying out community-based domestic vio16 lence programs and rape crisis centers that the

17 entities and centers have been involved in the

18 development of the application; and

19 ‘‘(ii) describes the ongoing involvement of

20 the entities and centers in the development of

21 the training, policies, procedures, programs,

22 and practices described in paragraph (2), in23 cluding a description of their roles as sub24 contractors, if relevant.
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1 ‘‘(g) PRIORITY.—In awarding grants under this sec2 tion, the Attorney General and the Secretary shall give

3 priority to applicants that have demonstrated a commit4 ment to educate staff of child welfare agencies and domes5 tic violence service providers about—

6 ‘‘(1) the impact of domestic violence on chil7 dren;

8 ‘‘(2) the special risks of child abuse and ne9 glect; and

10 ‘‘(3) appropriate services and interventions for

11 protecting the child and adult victims of domestic vi12 olence.

13 ‘‘(h) EVALUATION, REPORTING, AND DISSEMINATION

14 OF INFORMATION.—

15 ‘‘(1) EVALUATIONS AND REPORTS.—Each enti16 ty that receives a grant under this section shall

17 annually—

18 ‘‘(A) evaluate the effectiveness of activities

19 developed with the funds provided under this

20 program; and

21 ‘‘(B) prepare and submit to the Attorney

22 General and the Secretary a report containing

23 the evaluation and such additional information

24 as the Attorney General and the Secretary shall

25 require.
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1 ‘‘(2) DISSEMINATION OF INFORMATION.—Not

2 later than 6 months after the end of the grant pe3 riod for the grants made under this section, the At4 torney General and the Secretary shall distribute to

5 all State child welfare agencies, State domestic vio6 lence coalitions, and Congress summaries that con7 tain information on—

8 ‘‘(A) the activities implemented by the re9 cipients of the grants; and

10 ‘‘(B) related initiatives undertaken by the

11 Attorney General and the Secretary to promote

12 attention by the staff of child welfare agencies

13 and of domestic violence service providers to do14 mestic violence and the impact of domestic vio15 lence on child and adult victims.’’.

16 SEC. 8505. RESEARCH AND DATA COLLECTION ON THE IM17 PACT OF DOMESTIC VIOLENCE ON CHIL18 DREN.

19 The Family Violence Prevention and Services Act (42

20 U.S.C. 10401 et seq.), as amended by section 8504, is fur21 ther amended by adding at the end the following:

22 ‘‘SEC. 322. RESEARCH AND DATA COLLECTION.

23 ‘‘(a) GRANTS.—

24 ‘‘(1) IN GENERAL.—The Secretary, acting

25 through the Assistant Secretary for Children and
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1 Families, may make grants, on a competitive basis,

2 to eligible entities to enable the entities to conduct

3 research and data collection concerning the impact

4 of domestic violence on children.

5 ‘‘(2) TERM AND AMOUNT.—The Secretary shall

6 award grants under this section for terms of 3 years

7 and in amounts of not more than $500,000 for each

8 such year.

9 ‘‘(b) ELIGIBLE ENTITIES.—To be eligible to receive

10 a grant under this section, an entity shall be an institution

11 of higher education or another nonprofit organization

12 (such as a research entity, hospital, or mental health insti13 tution), with documented experience with research or data

14 collection concerning the impact of domestic violence on

15 children.

16 ‘‘(c) USE OF FUNDS.—An entity that receives a grant

17 under this section shall use the amounts provided through

18 the grant to conduct new or expand current research or

19 data collection—

20 ‘‘(1) on the prevalence of childhood exposure to

21 domestic violence and the effects of the exposure in

22 child and adult victims;

23 ‘‘(2) on the co-occurrence of domestic violence,

24 and child abuse or neglect;
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1 ‘‘(3) on linkages between children’s exposure to

2 domestic violence and violent behavior in youth and

3 adults;

4 ‘‘(4) that evaluates new or existing treatments

5 aimed at children exposed to domestic violence;

6 ‘‘(5) on the role of children’s resilience and

7 other factors that help mitigate the effects of expo8 sure to domestic violence; and

9 ‘‘(6) on related matters, if the research or data

10 collection directly addresses the impact of domestic

11 violence on children.

12 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

13 are authorized to be appropriated to carry out this section

14 $2,000,000 for each of fiscal years 2002 through 2004

15 and $5,000,000 a year for each of fiscal years 2005 and

16 2006.’’.

17 SEC. 8506. GRANTS TO SCHOOLS AND EARLY EDUCATION

18 AND CHILD CARE PROGRAMS FOR PREVEN19 TION OF VIOLENCE AGAINST WOMEN.

20 (a) GRANTS AUTHORIZED.—From amounts made

21 available under subsection (j), the Secretary of Education

22 shall award grants to eligible entities to conduct

23 programs—
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1 (1) to reduce the impact of domestic violence,

2 including sexual assault, and stalking in the lives of

3 children and youth;

4 (2) to develop and implement education pro5 grams to prevent children and youth from becoming

6 victims or perpetrators of domestic violence, includ7 ing sexual assault, dating violence, or stalking,

8 through programs and prevention strategies tar9 geting children and youth at—

10 (A) State, local, and tribal elementary,

11 middle, and secondary schools;

12 (B) early education programs and child

13 care programs, including Early Head Start

14 under section 645A of the Head Start Act (42

15 U.S.C. 9840a), Head Start programs under the

16 Head Start Act (42 U.S.C. 9831 et seq.), pre17 school, prekindergarten, and child care pro18 grams; and

19 (C) other Federal, State, and locally fund20 ed youth education programs;

21 (3) to provide support services for children and

22 youth experiencing or exposed to domestic violence,

23 including sexual assault, dating violence, and stalk24 ing;
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1 (4) to provide training and support services to

2 school and program administrators, faculty, coun3 selors, school social workers, and staff with respect

4 to issues concerning domestic violence, including sex5 ual assault, dating violence, and stalking, as well as

6 the impact on children and youth of experiencing or

7 exposure to the violence or stalking described in this

8 paragraph; and

9 (5) to develop and implement school and pro10 gram policies regarding identification and referral

11 procedures for children and youth who are experi12 encing or exposed to domestic violence, including

13 sexual assault, dating violence, or stalking with the

14 goal of contributing to the safety and well-being of

15 adult and child victims and children and youth im16 pacted by the violence or stalking involved.

17 (b) ELIGIBLE ENTITIES.—

18 (1) IN GENERAL.—To be eligible to receive a

19 grant under subsection (a), an entity shall be—

20 (A) a State, local, or tribal school or edu21 cational agency;

22 (B) an entity carrying out an early edu23 cation program or child care program;
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1 (C) a priority youth-serving organization

2 working in collaboration with a State, local, or

3 tribal school, or educational agency; or

4 (D) an entity carrying out a private, non5 profit domestic violence or sexual assault pro6 gram working in collaboration with a State,

7 local, or tribal school, or educational agency, or

8 an entity carrying out an early education pro9 gram, or child care program.

10 (2) COLLABORATION.—To be eligible to receive

11 a grant under subsection (a), an eligible entity de12 scribed in subparagraphs (A), (B), or (C) of para13 graph (1) shall collaborate with domestic violence or

14 sexual assault experts from national, State, or tribal

15 domestic violence or sexual assault programs.

16 (c) PUBLICATION.—The Secretary of Education shall

17 publish information on the availability of grants under

18 subsection (a) through announcements in professional

19 publications for State, local, and tribal educational agen20 cies, early education programs, and child care programs

21 described in subsection (a)(2), and through notices in the

22 Federal Register.

23 (d) EQUITABLE DISTRIBUTION.—In awarding grants

24 under subsection (a), the Secretary of Education shall en25 sure an equitable geographic distribution of funds to
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1 State, local, and tribal schools and educational agencies,

2 entities carrying out early education programs or child

3 care programs, priority youth-serving organizations, and

4 entities carrying out domestic violence or sexual assault

5 programs among areas throughout the United States, and

6 among rural, urban, and suburban areas.

7 (e) APPLICATIONS.—

8 (1) IN GENERAL.—An eligible entity that de9 sires to receive a grant under subsection (a) shall

10 submit to the Secretary of Education an application

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

12 information as the Secretary of Education may re13 quire.

14 (2) CONTENTS.—An application submitted

15 under this subsection shall—

16 (A) demonstrate that the education pro17 gram proposed to be funded by a grant under

18 subsection (a)—

19 (i) is comprehensive, engaging, and

20 appropriate to the target areas;

21 (ii) is respectful and reflective of cul22 tural diversity;

23 (iii) addresses the needs of under24 served communities;
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1 (iv) has the potential to change atti2 tudes and behaviors;

3 (v) is based on research and experi4 ence in the areas of early childhood and

5 youth education, domestic violence, includ6 ing sexual assault, dating violence, and

7 stalking;

8 (vi) collects data on changes in par9 ticipants’ attitudes or behavior;

10 (vii) is implemented in collaboration

11 with domestic violence and sexual assault

12 experts; and

13 (viii) includes an evaluation compo14 nent;

15 (B) demonstrate that the proposed policy

16 development process for the program includes

17 consultation and collaboration with experts on

18 violence against women and girls as described

19 in subsection (g)(1);

20 (C) incorporate a plan for appropriate re21 muneration for collaborating partners; and

22 (D) contain such other information, agree23 ments, and assurances as the Secretary of Edu24 cation may require.

25 (f) USE OF FUNDS.—
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1 (1) IN GENERAL.—An entity that receives a

2 grant under subsection (a) may use the grant

3 funds—

4 (A) to develop and implement develop5 mentally and culturally appropriate education

6 programs or prevention strategies for students

7 and personnel in elementary schools, middle

8 schools, secondary schools, early education pro9 grams, or child care programs, addressing do10 mestic violence, including sexual assault, dating

11 violence, and stalking;

12 (B) to provide the necessary human re13 sources and intervention strategies to respond

14 to the needs of students, school personnel, and

15 early education program and child care pro16 gram personnel when faced with the issues of

17 domestic violence, including sexual assault, dat18 ing violence, and stalking, such as 1 or more re19 source persons who is either onsite or on-call,

20 and who is an expert in domestic violence, sex21 ual assault, dating violence, or stalking;

22 (C) to develop and implement policies re23 garding appropriate assessment, identification,

24 reporting, and referral procedures for children

25 and youth who may be experiencing or exposed
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1 to domestic violence, including sexual assault,

2 dating violence, or stalking, with the goal of

3 contributing to the safety and well-being of

4 adult and child victims and children and youth

5 impacted by the violence or stalking involved;

6 (D) to develop and implement policies to

7 help prevent students from becoming victims or

8 perpetrators of domestic violence, including sex9 ual assault, dating violence, or stalking;

10 (E) to provide training for school and pro11 gram administrators, faculty, counselors, school

12 social workers, and staff that addresses issues

13 concerning children and youth who are experi14 encing or exposed to domestic violence, includ15 ing sexual assault, dating violence, and stalking,

16 and the impact of the violence or stalking de17 scribed in this paragraph on children and

18 youth;

19 (F) to provide media center materials and

20 educational materials, to schools and programs,

21 that address issues concerning children and

22 youth who are experiencing or exposed to do23 mestic violence, including sexual assault, dating

24 violence, or stalking, and the impact of the vio-
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1 lence or stalking described in this paragraph on

2 children and youth;

3 (G) to conduct evaluations to assess the

4 impact of programs assisted under this section

5 in order to enhance the development of the pro6 grams;

7 (H) to modify the program materials of

8 the model programs created under section 317

9 of the Family Violence Prevention and Services

10 Act (42 U.S.C. 10417), if appropriate, in order

11 to make the materials applicable to a particular

12 age group; and

13 (I) to purchase the materials described in

14 subparagraphs (F) and (H).

15 (2) CONFIDENTIALITY.—Policies and programs

16 developed and implemented under paragraph (1)

17 shall ensure the safety and confidentiality of child

18 and adult victims in a manner that is consistent

19 with applicable Federal and State laws.

20 (3) LIMITATION.—An entity that receives a

21 grant under subsection (a) for a fiscal year shall use

22 not more than 5 percent of the grant funds for ad23 ministrative expenses.

24 (g) REQUIREMENTS.—In carrying out an educational

25 program under a grant awarded under subsection (a), a
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1 State, local, or tribal school or educational agency, an enti2 ty carrying out an early education program or child care

3 program, or priority youth-serving organization shall—

4 (1) consult and collaborate with 1 or more non5 profit, nongovernmental experts on violence against

6 women and girls that are:

7 (A) entities operating domestic violence

8 shelters;

9 (B) entities carrying out domestic violence

10 programs;

11 (C) national, State, or tribal domestic vio12 lence coalitions;

13 (D) national, State, or tribal sexual assault

14 coalitions; or

15 (E) entities operating out of rape crisis

16 centers;

17 (2) develop the program, or acquire model pro18 gram materials if available; and

19 (3) report the results of the program to the

20 Secretary of Education in a format provided by such

21 Secretary.

22 (h) SECRETARY OF EDUCATION.—

23 (1) GUIDANCE.—The Secretary of Education

24 shall disseminate any Department of Education pol-
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1 icy guidance regarding preventing domestic violence,

2 including sexual assault, dating violence, or stalking.

3 (2) MODEL PROGRAMS AND POLICIES.—

4 (A) IN GENERAL.—The Secretary of Edu5 cation shall study existing policies and pro6 grams as well as new policies and programs

7 funded by this section for the purpose of identi8 fying model programs and policies that reduce

9 the impact of domestic violence, including sex10 ual assault, dating violence, and stalking in the

11 lives of children and youth and that contribute

12 to the safety and well-being of adult and child

13 victims and children and youth impacted by the

14 violence or stalking involved. The Secretary of

15 Education shall widely disseminate information

16 on the model programs and policies identified.

17 (B) CONFIDENTIALITY.—In disseminating

18 the information under subparagraph (A), the

19 Secretary of Education shall ensure the safety,

20 and confidentiality of information concerning

21 the identification, of individuals who are victims

22 of or impacted by violence or stalking.

23 (3) STUDY AND REPORT.—

24 (A) STUDY.—The Secretary of Education

25 shall study existing policies and programs as
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1 well as new policies and programs funded by

2 this section and shall develop recommendations

3 for implementation of successful policies for re4 ferring students to services when the students

5 may be experiencing or exposed to domestic vio6 lence, including sexual assault, dating violence,

7 or stalking.

8 (B) REPORT.—

9 (i) IN GENERAL.—The Secretary of

10 Education shall prepare and submit to

11 Congress a report containing the rec12 ommendations developed under subpara13 graph (A).

14 (ii) CONFIDENTIALITY.—In preparing

15 and submitting the report under clause (i),

16 the Secretary of Education shall ensure the

17 safety, and confidentiality of all informa18 tion concerning the identification, of stu19 dents.

20 (C) EVALUATION, MONITORING, AND AD21 MINISTRATION.—Of the amount appropriated

22 under subsection (j) for each fiscal year, not

23 more than 3 percent shall be used by the Sec24 retary of Education for evaluation, monitoring,

25 and administrative costs under this section.
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1 (i) DEFINITIONS.—In this section:

2 (1) DATING VIOLENCE.—

3 (A) IN GENERAL.—The term ‘‘dating vio4 lence’’ means violence committed by a person

5 who is or has been in a social relationship of a

6 romantic or intimate nature with the victim.

7 (B) RULE.—The existence of a relation8 ship described in subparagraph (A) shall be de9 termined based on a consideration of the fol10 lowing factors:

11 (i) The length of the relationship.

12 (ii) The type of relationship.

13 (iii) The frequency of interaction be14 tween the persons involved in the relation15 ship.

16 (2) EXPOSED TO.—The term ‘‘exposed to’’

17 means—

18 (A) with regard to domestic violence, ex19 posed to domestic violence as defined in section

20 8502;

21 (B) with regard to stalking—

22 (i) directly observing a course of con23 duct that constitutes stalking or the after24 math of that course of conduct; or
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1 (ii) being within earshot of a course of

2 conduct that constitutes stalking; and

3 (C) with regard to dating violence—

4 (i) directly observing an act or threat

5 that constitutes dating violence or the

6 aftermath of that act or threat; or

7 (ii) being within earshot of an act or

8 threat that constitutes dating violence;

9 (3) PRIORITY YOUTH-SERVING ORGANIZA10 TION.—The term ‘‘priority youth-serving organiza11 tion’’ means a public or private organization with—

12 (A) a primary focus on providing youth de13 velopment programs to youth ages 5 to 17;

14 (B) a history of providing violence aware15 ness and prevention skills;

16 (C) a proven record, as measured by spe17 cific outcome objectives, of providing youth de18 velopment and violence awareness and preven19 tion programs, services, and activities through a

20 comprehensive and coordinated system; and

21 (D) the ability to provide access to core re22 sources consisting of—

23 (i) ongoing relationships with caring

24 adults;
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1 (ii) a safe environment and structured

2 activities;

3 (iii) programs that promote positive

4 well-being;

5 (iv) opportunities to acquire defined

6 skills and competencies; and

7 (v) opportunities for community serv8 ice and civic participation.

9 (4) SEXUAL ASSAULT.—The term ‘‘sexual as10 sault’’ means any conduct proscribed by chapter

11 109A of title 18, United States Code, regardless of

12 whether the conduct occurs in the special maritime

13 and territorial jurisdiction of the United States or in

14 a Federal prison, and includes both assaults com15 mitted by offenders who are strangers to the victim

16 and assaults committed by offenders who are known

17 to the victim or related by blood or marriage to the

18 victim.

19 (5) STALKING.—The term ‘‘stalking’’ means

20 engaging in a course of conduct directed at a spe21 cific person that would cause a reasonable person to

22 fear death, sexual assault, or bodily injury to such

23 person or a member of such person’s immediate

24 family, if—
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1 (A) the person engaging in such conduct

2 has knowledge or should have knowledge that

3 the specific person will be placed in reasonable

4 fear of death, sexual assault, or bodily injury to

5 such person or a member of such person’s im6 mediate family; or

7 (B) the conduct induces fear in the specific

8 person of death, sexual assault, or bodily injury

9 to such person or a member of such person’s

10 immediate family.

11 (j) AUTHORIZATION OF APPROPRIATIONS.—

12 (1) IN GENERAL.—There are authorized to be

13 appropriated to carry out this section—

14 (A) $2,750,000 for fiscal year 2002;

15 (B) $3,000,000 for fiscal year 2003;

16 (C) $3,000,000 for fiscal year 2004;

17 (D) $3,000,000 for fiscal year 2005; and

18 (E) $3,000,000 for fiscal year 2006.

19 (2) AVAILABILITY.—Amounts appropriated

20 under paragraph (1) shall remain available until the

21 earlier of—

22 (A) the date on which those amounts are

23 expended; or

24 (B) December 31, 2006.
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1 SEC. 8507. TRAINING OF LAW ENFORCEMENT AND COURT

2 PERSONNEL.

3 (a) GRANTS AUTHORIZED.—The Attorney General

4 shall award grants to nonprofit domestic violence pro5 grams, shelters, or organizations in collaboration with

6 local police departments and local courts for purposes of

7 training local police officers, judges, attorneys, and other

8 court personnel, regarding appropriate treatment of chil9 dren who have been exposed to domestic violence.

10 (b) USE OF FUNDS.—A domestic violence agency

11 working in collaboration with a local police department

12 and local courts may use amounts from a grant awarded

13 under this section—

14 (1) to train police officers, judges, attorneys,

15 and other court personnel in child development and

16 issues related to children exposed to domestic vio17 lence so they may appropriately—

18 (A) apply child development principles to

19 their work in domestic violence cases;

20 (B) recognize the needs of children who

21 are exposed to domestic violence;

22 (C) meet the immediate needs of those

23 children at the scene of domestic violence and

24 during subsequent court proceedings;

25 (D) call for immediate and subsequent

26 therapeutic attention to be provided to the child
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1 by an advocate from the collaborating domestic

2 violence program, shelter, or organization, or

3 from a children’s services program with exper4 tise in serving children exposed to domestic vio5 lence; and

6 (E) refer children for follow-up services;

7 and

8 (2) to establish a collaborative working relation9 ship between police officers, the courts, and local do10 mestic violence programs, shelters, and organiza11 tions.

12 (c) APPLICATION.—

13 (1) IN GENERAL.—To be eligible for a grant

14 under this section for any fiscal year, a local domes15 tic violence program, shelter, or organization, in col16 laboration with a local police department or local

17 court, shall submit an application to the Attorney

18 General at such time, and in such manner, as the

19 Attorney General shall require.

20 (2) CONTENTS.—Each application submitted

21 under paragraph (1) shall—

22 (A) describe the need for amounts provided

23 under the grant and the plan for implementa24 tion of the uses described in subsection (b);
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1 (B) describe the manner in which the local

2 domestic violence program, shelter, or organiza3 tion shall work in collaboration with the local

4 police department and local courts; and

5 (C) provide measurable goals and expected

6 results from the use of amounts provided under

7 this section.

8 (d) AUTHORIZATION OF APPROPRIATIONS.—

9 (1) IN GENERAL.—There are authorized to be

10 appropriated from the Violent Crime Reduction

11 Trust Fund established under section 310001 of the

12 Violent Crime Control and Law Enforcement Act of

13 1994 (42 U.S.C. 14211) to carry out this section—

14 (A) $5,000,000 for each of fiscal years

15 2002 through 2004; and

16 (B) $10,000,000 for each of fiscal years

17 2005 and 2006.

18 (2) AVAILABILITY.—Amounts made available

19 under paragraph (1) shall remain available until ex20 pended.
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1 Subtitle G—Enhancing Healthy

2 Emotional Development in

3 Young Children

4 SEC. 8601. ENHANCING HEALTHY EMOTIONAL DEVELOP5 MENT.

6 (a) FINDINGS.—Congress finds the following:

7 (1) Researchers have identified external risk

8 factors that, particularly when found in combination,

9 can increase a young child’s risk for experiencing

10 problems in social or emotional development, includ11 ing factors such as exposure to traumatic events,

12 child abuse and neglect, parental mental health dis13 orders, unsatisfactory relationships, and deprivation.

14 Experiences involving these risk factors may occur

15 at home or in the community.

16 (2) There is growing evidence that positive ad17 aptation and social and emotional well-being in

18 young children can be enhanced, and that the im19 pact of risk factors for behavioral and emotional dis20 orders can be reduced by intervening early in homes,

21 child care and other early childhood programs, and

22 other settings.

23 (3) The Surgeon General’s Conference on Chil24 dren’s Mental Health has recommended the creation

25 of tangible tools for early childhood service providers
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1 to help the providers assess children’s social and

2 emotional needs, discuss issues relating to those

3 needs with families, and make referrals.

4 (4) Experience demonstrates that mental health

5 consultants can help staff, as well as children and

6 families, in early childhood programs promote

7 healthy social and emotional development in young

8 children, including those children already exposed to

9 violence and other damaging experiences.

10 (5) Success in school is dependent on social and

11 emotional development, as well as the attainment of

12 other competencies and skills, and investing early in

13 the promotion of healthy development in young chil14 dren will help children enter school ready to learn.

15 (b) DEFINITIONS.—In this section:

16 (1) SECRETARY.—The term ‘‘Secretary’’ means

17 the Secretary of Health and Human Services, acting

18 through the Assistant Secretary for Children and

19 Families.

20 (2) STATE AGENCY.—The term ‘‘State agency’’

21 means—

22 (A) the State office that coordinates early

23 childhood services in a State; or

24 (B) if an office described in subparagraph

25 (A) does not exist in a State, the State office
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1 that is responsible for early childhood programs

2 in the State.

3 (3) YOUNG CHILDREN.—The term ‘‘young chil4 dren’’ means individuals who are below the age of

5 compulsory school attendance for the State involved.

6 (c) GRANTS TO STATE AGENCIES.—

7 (1) GRANTS.—The Secretary shall establish a

8 program through which the Secretary may make

9 grants to State agencies, to enable the State agen10 cies to assist eligible entities to serve young children

11 and the families of the children by addressing the

12 mental health and developmental needs of the young

13 children in order to promote the children’s resilience,

14 emotional wellness, and healthy emotional develop15 ment.

16 (2) GRANT PERIODS.—The Secretary shall

17 make the grants for periods of not more than 3

18 years.

19 (d) STATE APPLICATIONS.—To be eligible to receive

20 a grant under subsection (c), a State agency shall submit

21 an application to the Secretary at such time, in such man22 ner, and containing such information as the Secretary may

23 require. The application shall include the information and

24 assurances described in subsection (g), with respect to the

25 State.
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1 (e) GRANTS TO ELIGIBLE ENTITIES.—A State agen2 cy that receives a grant under subsection (c) shall use the

3 funds made available through the grant to make grants

4 to eligible entities to carry out programs to serve young

5 children and the families of the children as described in

6 subsection (c).

7 (f) ELIGIBLE ENTITIES.—To be eligible to receive a

8 grant under subsection (e), an entity shall—

9 (1) be an agency or organization that carries

10 out a home or center-based early childhood program,

11 child welfare program, substance abuse treatment

12 program, or domestic violence service and treatment

13 program, that serves or has regular contact with

14 young children;

15 (2) be an established consortium of agencies or

16 organizations described in paragraph (1); or

17 (3) be another entity (such as a child care re18 source and referral agency, an early childhood serv19 ice coordinating body, or a community mental health

20 center) that works with parents, agencies, or organi21 zations that serve young children in a community in

22 promoting the mental health and healthy emotional

23 development of young children; and
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1 (4) obtain the approval of the State agency for

2 an application submitted in accordance with sub3 section (g).

4 (g) LOCAL APPLICATIONS.—

5 (1) IN GENERAL.—To be eligible to receive a

6 grant under this section, an entity shall submit an

7 application to the State agency at such time, in such

8 manner, and containing such information as the

9 State agency may require.

10 (2) CONTENTS.—At a minimum, the applica11 tion shall contain—

12 (A) a description of the young children

13 who are targeted to be served, or are most like14 ly to be served, with the funds made available

15 through the grant, and the problems the chil16 dren are facing or affected by (such as exposure

17 to parental depression, parental substance

18 abuse, child abuse or neglect, domestic violence,

19 community violence, homelessness, a parental

20 transition to the workforce, or other risk fac21 tors);

22 (B) an assurance that the assistance pro23 vided with funds made available through the

24 grant will be undertaken in a developmentally

25 appropriate and culturally competent manner,
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1 be child-centered, and, as applicable, family-fo2 cused, and consistent with the best knowledge

3 available about effective prevention and inter4 vention strategies to promote mental health and

5 healthy emotional development in young chil6 dren;

7 (C) the name of the entity that would ad8 minister the program carried out under the

9 grant;

10 (D) a description of the types of assistance

11 that will be provided with the funds to improve

12 the mental health and healthy emotional devel13 opment of young children;

14 (E) a description of how the program to be

15 carried out under the grant will complement

16 and be coordinated with the activities of, or car17 ried out by, any early childhood service coordi18 nating offices in the community in which the

19 grant activities will be carried out;

20 (F) an assurance that the applicant will

21 work collaboratively with mental health, early

22 childhood development, early intervention, edu23 cation, health, and other specialized violence

24 prevention or treatment experts, and other ex25 perts in the applicant’s community to coordi-
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1 nate services provided under this subtitle with

2 similar services and to better address the needs

3 of the young children the applicant serves;

4 (G) documentation that the applicant has

5 explored the extent to which funding under part

6 C of the Individuals with Disabilities Education

7 Act (20 U.S.C. 1431 et seq.) and from other re8 lated Federal and State sources is available to

9 address the needs of the young children; and

10 (H) an assurance that the funds made

11 available through the grant will not be used for

12 activities that the State pays for with funds

13 made available under the medicaid program

14 carried out under title XIX of the Social Secu15 rity Act (42 U.S.C. 1396 et seq.), under the

16 State children’s health insurance program car17 ried out under title XXI of the Social Security

18 Act (42 U.S.C. 1397aa et seq.), or from State

19 and local funds for mental health programs.

20 (h) USE OF FUNDS.—

21 (1) IN GENERAL.—Except as provided in para22 graphs (2) and (3), an entity that receives a grant

23 under this section may use the funds made available

24 through the grant to promote the mental health and
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1 healthy emotional development of young children

2 by—

3 (A) providing screening and assessments of

4 the mental health and developmental needs of

5 the young children to be served under the grant

6 and, as appropriate, their families;

7 (B) providing for consultations with staff

8 of programs described in subsection (f)(1) by

9 mental health and other early childhood devel10 opment experts, such as speech and language

11 therapists and special education consultants,

12 who can provide programmatic and individual

13 child-centered and family-focused assistance to

14 help the staff respond in the manner most con15 ducive to promoting the mental health and

16 healthy emotional development of young chil17 dren;

18 (C) providing professional development, in19 cluding specialized training and supervision, for

20 staff of programs described in subsection (f)(1)

21 and other early childhood service providers and,

22 as appropriate, for families of young children,

23 about the mental health and developmental

24 needs of young children, to enable the staff and

25 families to develop the skills and competencies
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1 necessary to respond to the needs of, and pro2 vide needed assistance to, the young children

3 and their families to promote the children’s

4 mental health and healthy emotional develop5 ment;

6 (D) providing prevention and early inter7 vention services, including home visitation, par8 enting education, and other activities, parent9 child groups, and other individualized supports

10 for families of young children (including par11 ents, grandparents, other relative caregivers,

12 foster parents, and other individuals responsible

13 for raising young children), that are designed to

14 promote mental health and healthy emotional

15 development of young children;

16 (E) providing crisis services;

17 (F) facilitating access to treatment and

18 services to enable staff of programs described in

19 subsection (f)(1) to promote mental health and

20 healthy emotional development by attending ap21 propriately to the emotional and behavioral con22 cerns facing young children and their families;

23 (G) providing increased collaboration be24 tween staff of programs providing early child25 hood, child development, and children’s mental
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1 health services, and, as appropriate, staff from

2 other service delivery systems such as—

3 (i) the courts; and

4 (ii) service delivery systems for sub5 stance abuse treatment, domestic violence

6 service and treatment, health, and adult

7 and child mental health programs; and

8 (H) providing case management services

9 for young children and, as appropriate, their

10 families, to help link the children and families

11 who need more specialized interventions to ap12 propriate services and treatment.

13 (2) PLANNING AND COLLABORATION.—

14 (A) IN GENERAL.—An entity that requests

15 authority to use grant funds made available

16 under this section for planning and collabora17 tion activities, and receives a grant under this

18 section, may use a portion of the grant funds

19 as described in subparagraph (B).

20 (B) ACTIVITIES.—The entity may use not

21 more than 50 percent of the grant funds for a

22 period of not more than 6 months at the begin23 ning of the grant period to carry out planning

24 and collaboration activities that will help ensure

25 that the needs of young children will be ad-
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1 dressed appropriately through the activities car2 ried out under the grant. The planning and col3 laboration activities shall build on the work of

4 and, to the extent possible, be carried out by

5 early childhood service coordinating offices in

6 the community in which the grant activities will

7 be carried out.

8 (3) DESIGNATED ACTIVITIES.—The Secretary

9 may, during the 3-year period beginning on the date

10 of the establishment of the program described in

11 subsection (c), award grants to State agencies under

12 subsection (c), to enable the State agencies to assist

13 eligible entities specifically to promote the training

14 of early childhood mental health specialists, in con15 junction with entities such as community colleges,

16 schools of social work, and institutions offering psy17 chology programs, through degree programs or in18 ternships or fellowships in early childhood mental

19 health.

20 (i) STATE COLLABORATION.—The State agency shall

21 review applications submitted under subsection (g), make

22 grants under subsection (e), and carry out the administra23 tion and oversight of the programs described in subsection

24 (e) in collaboration with—

25 (1) the State mental health agency;
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1 (2) the State entity designated to receive col2 laboration grants under section 640(a)(5) of the

3 Head Start Act (42 U.S.C. 9835(a)(5)); and

4 (3) other State offices responsible for child wel5 fare programs, substance abuse treatment programs,

6 or domestic violence service programs, serving young

7 children within the State.

8 (j) SUPPLEMENT NOT SUPPLANT.—Funds appro9 priated pursuant to the authority of this section shall be

10 used to supplement and not supplant other public funds

11 expended to promote the mental health and healthy emo12 tional development of young children.

13 (k) COLLABORATION.—In carrying out this section,

14 the Secretary shall collaborate with the Administrator of

15 the Substance Abuse and Mental Health Services Admin16 istration, the Administrator of the Health Care Financing

17 Administration, and the heads of relevant offices of the

18 Department of Education that address the concerns of

19 young children.

20 (l) REPORT.—A State that receives a grant under

21 this section shall, not later than 90 days after the end

22 of the grant period, prepare and submit to the Secretary

23 a report that includes—
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1 (1) information on the needs of the young chil2 dren, and their families, who were assisted with the

3 grant funds;

4 (2) information on the strategies for which the

5 grant funds were used, and how the funds were com6 bined with other funds to expand the strategies;

7 (3) documentation that the activities provided

8 were developmentally appropriate, child-centered,

9 and, as appropriate, family-focused, and directed to10 ward preventing emotional problems, and involved

11 collaboration with mental health and other develop12 mental experts;

13 (4) a discussion of—

14 (A) the extent to which entities in the

15 State increased the number of activities (similar

16 to activities carried out under this section) car17 ried out in the State that were funded from

18 sources other than funds made available under

19 this section during the grant period; and

20 (B) the barriers to increasing the number

21 of those activities that were so funded; and

22 (5) a discussion of how the funds made avail23 able through the grant helped to improve outcomes

24 for the young children and families served, particu25 larly with regard to the goal of school readiness.
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1 (m) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated to carry out this

3 section—

4 (1) $25,000,000 for fiscal year 2002;

5 (2) $40,000,000 for fiscal year 2003;

6 (3) $55,000,000 for fiscal year 2004;

7 (4) $70,000,000 for fiscal year 2005; and

8 (5) $85,000,000 for fiscal year 2006.

9 TITLE IX—SUCCESSFUL

10 TRANSITION TO ADULTHOOD

11 Subtitle A—21st Century

12 Community Learning Centers

13 SEC. 9001. CENTERS.

14 Part I of title X (20 U.S.C. 8241 et seq.) is amended

15 to read as follows:

16 ‘‘PART I—21ST CENTURY COMMUNITY LEARNING

17 CENTERS

18 ‘‘SEC. 10901. SHORT TITLE.

19 ‘‘This part may be cited as the ‘21st Century Com20 munity Learning Centers Act’.

21 ‘‘SEC. 10902. PURPOSE.

22 ‘‘The purpose of this part is to provide opportunities

23 to communities to establish or expand activities in commu24 nity learning centers that—
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1 ‘‘(1) provide opportunities for academic enrich2 ment, including providing tutorial services to help

3 students, particularly students who attend low-per4 forming schools, to meet State and local student per5 formance standards in core academic subjects, such

6 as reading and mathematics;

7 ‘‘(2) offer students a broad array of additional

8 services, programs, and activities, such as youth de9 velopment activities, drug and violence prevention

10 programs, art, music, and recreation programs, tech11 nology education programs, and character education

12 programs, that are designed to reinforce and com13 plement the regular academic program of partici14 pating students; and

15 ‘‘(3) offer families of students enrolled in com16 munity learning centers opportunities for lifelong

17 learning and literacy development.

18 ‘‘SEC. 10903. DEFINITIONS.

19 ‘‘In this part:

20 ‘‘(1) COMMUNITY LEARNING CENTER.—The

21 term ‘community learning center’ is an entity that—

22 ‘‘(A)(i) assists students to meet State con23 tent and student performance standards in core

24 academic subjects, such as reading and mathe25 matics, by primarily providing to the students,
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1 during non-school hours or periods when school

2 is not in session, tutorial and other academic

3 enrichment services in addition to other activi4 ties (such as youth development activities, drug

5 and violence prevention programs, art, music,

6 and recreation programs, technology education

7 programs, and character education programs)

8 that reinforce and complement the regular aca9 demic program of the students; and

10 ‘‘(ii) offers families of students enrolled in

11 such center opportunities for lifelong learning

12 and literacy development; and

13 ‘‘(B) is operated by 1 or more local edu14 cational agencies, community-based organiza15 tions, units of general purpose local govern16 ment, or other public or private entities.

17 ‘‘(2) COVERED PROGRAM.—The term ‘covered

18 program’ means a program for which—

19 ‘‘(A) the Secretary made a grant under

20 this part (as in effect on the day before the

21 date of enactment of the Leave No Child Be22 hind Act of 2001); and

23 ‘‘(B) the grant period had not ended on

24 that date of enactment.
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1 ‘‘(3) ELIGIBLE ORGANIZATION.—The term ‘eli2 gible organization’ means—

3 ‘‘(A) a local educational agency, a commu4 nity-based organization, a unit of general pur5 pose local government, or another public or pri6 vate entity; or

7 ‘‘(B) a consortium of entities described in

8 subparagraph (A).

9 ‘‘(4) STATE.—The term ‘State’ means the State

10 educational agency of a State (as defined in section

11 14101).

12 ‘‘(5) UNIT OF GENERAL PURPOSE LOCAL GOV13 ERNMENT.—The term ‘unit of general purpose local

14 government’ means any city, town, township, parish,

15 village, or other general purpose political subdivision.

16 ‘‘SEC. 10904. PROGRAM AUTHORIZED.

17 ‘‘The Secretary is authorized to award grants to

18 States to make awards to eligible organizations to plan,

19 implement, or expand community learning centers that

20 serve—

21 ‘‘(1) students who primarily attend—

22 ‘‘(A) schools eligible for schoolwide pro23 grams under section 1114; or

24 ‘‘(B) schools that serve a high percentage

25 of students from low-income families; and
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1 ‘‘(2) the families of students described in para2 graph (1).

3 ‘‘SEC. 10905. ALLOTMENTS TO STATES.

4 ‘‘(a) RESERVATION.—From the funds appropriated

5 under section 10910 for any fiscal year, the Secretary

6 shall reserve—

7 ‘‘(1) such amount as may be necessary to make

8 continuation awards for covered programs to grant

9 recipients under this part (under the terms of those

10 grants), as in effect on the day before the date of

11 enactment of the Leave No Child Behind Act of

12 2001;

13 ‘‘(2) not more than 1 percent for national ac14 tivities, which the Secretary may carry out directly

15 or through grants and contracts, such as providing

16 technical assistance to organizations carrying out

17 programs under this part or conducting a national

18 evaluation; and

19 ‘‘(3) not more than 1 percent for payments to

20 the outlying areas and the Bureau of Indian Affairs,

21 to be allotted in accordance with their respective

22 needs for assistance under this part, as determined

23 by the Secretary, to enable the areas and the Bu24 reau to carry out the objectives of this part.

25 ‘‘(b) STATE ALLOTMENTS.—
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1 ‘‘(1) DETERMINATION.—

2 ‘‘(A) BASIS.—From the funds appro3 priated under section 10910 for any fiscal year

4 and remaining after the Secretary makes res5 ervations under subsection (a), the Secretary

6 shall allot to each State for the fiscal year an

7 amount that bears the same relationship to the

8 remainder as the amount the State received

9 under subpart 2 of part A of title I for the pre10 ceding fiscal year bears to the amount all

11 States received under that subpart for the pre12 ceding fiscal year, except as provided in sub13 paragraph (B).

14 ‘‘(B) EXCEPTION.—No State receiving an

15 allotment under subparagraph (A) may receive

less than 1 16 ⁄2 of 1 percent of the total amount

17 allotted under subparagraph (A) for a fiscal

18 year.

19 ‘‘(2) DEFINITION.—In this subsection, the term

20 ‘State’ means each of the 50 States, the District of Colum21 bia, and the Commonwealth of Puerto Rico.

22 ‘‘SEC. 10906. STATE PLANS.

23 ‘‘Each State seeking a grant under this part shall

24 submit to the Secretary a plan, which may be submitted

25 as part of a State’s consolidated plan under section 14302,
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1 at such time, in such manner, and containing such infor2 mation as the Secretary may reasonably require. At a min3 imum, the plan shall—

4 ‘‘(1) describe how the State will use funds re5 ceived under this part, including funds reserved for

6 State-level activities;

7 ‘‘(2) contain an assurance that the State will

8 make awards under this part for eligible organiza9 tions only to eligible organizations that propose to

10 serve—

11 ‘‘(A) students who primarily attend—

12 ‘‘(i) schools eligible for schoolwide

13 programs under section 1114; or

14 ‘‘(ii) schools that serve a high percent15 age of students from low-income families;

16 and

17 ‘‘(B) the families of students described in

18 subparagraph (A);

19 ‘‘(3) describe the procedures and criteria the

20 State will use for reviewing applications and award21 ing funds to eligible organizations on a competitive

22 basis, which shall include procedures and criteria

23 that take into consideration the likelihood that a

24 proposed center will help participating students meet
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1 local content and performance standards by increas2 ing their academic performance and achievement;

3 ‘‘(4) describe how the State will ensure that

4 awards made under this part are—

5 ‘‘(A) of sufficient size and scope to support

6 high-quality, effective programs that are con7 sistent with the purpose of this part; and

8 ‘‘(B) in amounts that are consistent with

9 section 10908(b);

10 ‘‘(5) contain an assurance that the State—

11 ‘‘(A) will not make awards for programs

12 that exceed 4 years;

13 ‘‘(B) will ensure an equitable distribution

14 of awards among urban and rural areas of the

15 State; and

16 ‘‘(C) will require each eligible organization

17 seeking such an award to submit a plan de18 scribing how the center to be funded through

19 the award will continue after funding under this

20 part ends;

21 ‘‘(6) describe the State’s performance measures

22 for programs carried out under this part, including

23 measures relating to increased academic perform24 ance and achievement, and how the State will evalu25 ate the effectiveness of those programs;
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1 ‘‘(7) contain an assurance that funds appro2 priated to carry out this part will be used to supple3 ment, and not supplant, other Federal, State, and

4 local public funds expended to provide programs and

5 activities authorized under this part; and

6 ‘‘(8) contain an assurance that the State will

7 require eligible organizations to describe in their ap8 plications under section 10909 how the transpor9 tation needs of participating students will be ad10 dressed.

11 ‘‘SEC. 10907. STATE-LEVEL ACTIVITIES.

12 ‘‘(a) IN GENERAL.—A State that receives an allot13 ment under section 10905 for a fiscal year shall use not

14 more than 6 percent of the funds made available through

15 the allotment for State-level activities described in para16 graphs (1) and (2) of subsection (b).

17 ‘‘(b) ACTIVITIES.—

18 ‘‘(1) PLANNING, PEER REVIEW, AND SUPER19 VISION.—The State may use not more than 3 per20 cent of the funds made available through the allot21 ment to pay for the costs of—

22 ‘‘(A) establishing and implementing a peer

23 review process for applications described in sec24 tion 10909 (including consultation with the

25 Governor and other State agencies responsible
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1 for administering youth development programs

2 and adult learning activities);

3 ‘‘(B) supervising the awarding of funds to

4 eligible organizations (in consultation with the

5 Governor and other State agencies responsible

6 for administering youth development programs

7 and adult learning activities);

8 ‘‘(C) planning and supervising the use of

9 funds made available under this part, and proc10 essing the funds; and

11 ‘‘(D) monitoring activities.

12 ‘‘(2) EVALUATION, TRAINING, AND TECHNICAL

13 ASSISTANCE.—The State may use not more than 3

14 percent of the funds made available through the al15 lotment to pay for the costs of—

16 ‘‘(A) comprehensive evaluation (directly, or

17 through a grant or contract) of the effectiveness

18 of programs and activities provided under this

19 part; and

20 ‘‘(B) providing training and technical as21 sistance to eligible organizations who are appli22 cants or recipients of awards under this part.

23 ‘‘SEC. 10908. AWARDS TO ELIGIBLE ORGANIZATIONS.

24 ‘‘(a) AWARDS.—A State that receives an allotment

25 under section 10905 for a fiscal year shall use not less
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1 than 94 percent of the funds made available through the

2 allotment to make awards on a competitive basis to eligible

3 organizations.

4 ‘‘(b) AMOUNTS.—The State shall make the awards

5 in amounts of not less than $50,000.

6 ‘‘SEC. 10909. LOCAL APPLICATION.

7 ‘‘(a) APPLICATION.—To be eligible to receive an

8 award under this part, an eligible organization shall sub9 mit an application to the State at such time, in such man10 ner, and including such information as the State may rea11 sonably require. Each such application shall include—

12 ‘‘(1) an evaluation of the needs, available re13 sources, and goals and objectives for the proposed

14 community learning center and a description of how

15 the program proposed to be carried out in the center

16 will address those needs (including the needs of

17 working families); and

18 ‘‘(2) a description of the proposed community

19 learning center, including—

20 ‘‘(A) a description of how the eligible orga21 nization will ensure that the program proposed

22 to be carried out at the center will reinforce and

23 complement the instructional programs of the

24 schools that students served by the program at25 tend;
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1 ‘‘(B) an identification of Federal, State,

2 and local programs that will be combined or co3 ordinated with the proposed program in order

4 to make the most effective use of public re5 sources;

6 ‘‘(C) an assurance that the proposed pro7 gram was developed, and will be carried out, in

8 active collaboration with the schools the stu9 dents attend;

10 ‘‘(D) evidence that the eligible organization

11 has experience, or demonstrates promise of suc12 cess, in providing educational and related activi13 ties that will complement and enhance the stu14 dents’ academic performance and achievement

15 and positive youth development;

16 ‘‘(E) an assurance that the program will

17 take place in a safe and easily accessible school

18 or other facility;

19 ‘‘(F) a description of how students partici20 pating in the program carried out by the center

21 will travel safely to and from the center and

22 home;

23 ‘‘(G) a description of how the eligible orga24 nization will disseminate information about the
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1 program to the community in a manner that is

2 understandable and accessible; and

3 ‘‘(H) a description of a preliminary plan

4 for how the center will continue after funding

5 under this part ends.

6 ‘‘(b) PRIORITY.—In making awards under this part,

7 the State shall give equal priority to applications—

8 ‘‘(1) submitted jointly by schools receiving

9 funding under part A of title I and community-based

10 organizations or other eligible organizations;

11 ‘‘(2) submitted by such schools or consortia of

12 such schools; and

13 ‘‘(3) submitted by community-based organiza14 tions or other eligible organizations serving commu15 nities in which such schools are located.

16 ‘‘(c) APPROVAL OF CERTAIN APPLICATIONS.—The

17 State may approve an application under this part for a

18 program to be located in a facility other than an elemen19 tary school or secondary school, only if the program—

20 ‘‘(1) will be accessible to the students proposed

21 in the application to be served; and

22 ‘‘(2) will be as effective as the program would

23 be if the program were located in such a school.
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1 ‘‘SEC. 10910. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated to carry out

3 this part $1,500,000,000 for fiscal year 2002 and such

4 sums as may be necessary for each of the 6 succeeding

5 fiscal years.

6 Subtitle B—Youth Development

7 CHAPTER 1—SHORT TITLE; POLICY;

8 FINDINGS; DEFINITIONS

9 SEC. 9101. SHORT TITLE.

10 This subtitle may be cited as the ‘‘Younger Ameri11 cans Act’’.

12 SEC. 9102. A NATIONAL YOUTH POLICY.

13 It is the policy of the United States, in keeping with

14 the traditional United States concept that youth are the

15 Nation’s most valuable resource, that youth of the Nation

16 need, and it is the joint and several duty and responsibility

17 of governments of the United States, of the several States

18 and political subdivisions, and of Indian tribes, to assure

19 that all youth have access to, the full array of core re20 sources, including—

21 (1) ongoing relationships with caring adults;

22 (2) safe places with structured activities;

23 (3) services that promote healthy lifestyles, in24 cluding services designed to improve physical and

25 mental health;
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1 (4) opportunities to acquire marketable skills

2 and competencies; and

3 (5) opportunities for community service and

4 civic participation.

5 SEC. 9103. FINDINGS.

6 Congress finds that—

7 (1) young people under 18 years of age are now

8 the most impoverished age group, with 1 of every 5

9 of the young people living in poverty, a greater pro10 portion than in 1968, with the proportion of minor11 ity children who are living in poverty being about

12 twice as great;

13 (2) more than 1 of 4 families is headed by a

14 single parent and the percentage of families headed

15 by single parents has risen steadily over the past few

16 decades, and has risen 13 percent since 1990;

17 (3) approximately 8,000,000 school-age children

18 under 14 years of age spend time without adult su19 pervision on a regular basis;

20 (4) an estimated 11,000,000 United States chil21 dren have no health insurance and 9 out of 10 of

22 such children have parents who work;

23 (5) there is a need to address the developmental

24 needs of all youth while providing more intensive
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1 support for youth in communities where need is

2 greatest;

3 (6) there is a need to engage youth as active

4 participants in decisionmaking that affects their

5 lives, including the design, development, implementa6 tion, and evaluation of youth development programs

7 at the Federal, State, and community levels;

8 (7) existing outcome driven youth development

9 strategies, pioneered by community-based organiza10 tions, hold real promise for promoting positive be11 haviors and preventing youth problems;

12 (8) formal evaluations of youth development

13 programs have documented significant improvements

14 in interpersonal skills, quality of peer and adult rela15 tionships, self-control, cognitive competencies, com16 mitment to schooling, and academic achievement;

17 (9) formal evaluations of youth development

18 programs have documented significant reductions in

19 drug and alcohol use, school misbehavior, aggressive

20 behavior, violence, truancy, high-risk sexual behav21 ior, and smoking;

22 (10) compared to United States youth gen23 erally, youth participating in activities provided by

24 community-based organizations are more than 26

25 percent more likely to report having received rec-
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1 ognition for good grades than United States youth

2 generally and nearly 20 percent more likely to rate

3 the likelihood of their going to college as ‘‘very high’’

4 than United States youth generally;

5 (11) a partnership between the public and pri6 vate sector is necessary to promote access to the full

7 array of core resources for youth who need such re8 sources because the private sector alone does not

9 have the capacity to promote such access; and

10 (12) the availability and use of Federal re11 sources can be effective incentives to leverage broad12 er community support to enable entities carrying out

13 or providing local programs, activities, and services

14 to provide the full array of core resources, remove

15 barriers to access, promote program effectiveness,

16 and facilitate coordination of activities and collabo17 ration within the community.

18 SEC. 9104. DEFINITIONS.

19 In this subtitle:

20 (1) AREAAGENCY ON YOUTH.—The term ‘‘area

21 agency on youth’’ means an area agency on youth

22 designated under section 9124(a)(2)(A).

23 (2) ASSOCIATE COMMISSIONER.—The term ‘‘As24 sociate Commissioner’’ means the Associate Commis25 sioner of the Family and Youth Services Bureau of
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1 the Administration on Children, Youth, and Families

2 of the Department of Health and Human Services.

3 (3) COMMUNITY-BASED.—The term ‘‘commu4 nity-based’’, used with respect to an organization,

5 means an organization that—

6 (A) is representative of a community or

7 significant segment of a community; and

8 (B) is engaged in providing services to the

9 community.

10 (4) COMMUNITY BOARD.—The term ‘‘commu11 nity board’’ means a community board established in

12 accordance with section 9127(a).

13 (5) DIRECTOR.—The term ‘‘Director’’ means

14 the Director of the Office on National Youth Policy.

15 (6) FUNDING AND COORDINATING AGENCY.—

16 The term ‘‘funding and coordinating agency’’ means

17 an organization that is directed by a board with wide

18 representation from a community, that generates

19 and distributes charitable funds for diverse health

20 and human service programs and coordinates the ef21 forts of multiple agencies as needed or requested,

22 but that does not itself provide direct services to

23 children, youth, or their families.

24 (7) INDIAN.—The term ‘‘Indian’’ has the mean25 ing given the term in section 4(d) of the Indian Self-
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1 Determination and Education Assistance Act (25

2 U.S.C. 450b(d)).

3 (8) NATIVE AMERICAN ORGANIZATION.—The

4 term ‘‘Native American organization’’ means—

5 (A) a tribal organization, as defined in sec6 tion 4(l) of the Indian Self-Determination and

7 Education Assistance Act (25 U.S.C. 450b(l));

8 (B) a Native Hawaiian Organization, as

9 defined in section 4009(4) of the Augustus F.

10 Hawkins-Robert T. Stafford Elementary and

11 Secondary School Improvement Amendments of

12 1988 (20 U.S.C. 4909(4)) (as in effect on the

13 day before the date of enactment of the Improv14 ing America’s Schools Act of 1994);

15 (C) an Alaska Native Village Corporation

16 or Regional Corporation as defined in or estab17 lished pursuant to the Alaskan Native Claims

18 Settlement Act (43 U.S.C. 1601 et seq.); or

19 (D) a private nonprofit organization estab20 lished for the purpose of serving youth who are

21 Indians or Native Hawaiians.

22 (9) NATIVE HAWAIIAN.—The term ‘‘Native Ha23 waiian’’ has the meaning given the term in section

24 4009(1) of the Augustus F. Hawkins-Robert T.

25 Stafford Elementary and Secondary School Improve-
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1 ment Amendments of 1988 (20 U.S.C. 4909(1)) (as

2 in effect on the day before the date of enactment of

3 the Improving America’s Schools Act of 1994).

4 (10) OFFICE.—The term ‘‘Office’’ means the

5 Office of National Youth Policy.

6 (11) SECRETARY.—The term ‘‘Secretary’’

7 means the Secretary of Health and Human Services.

8 (12) STATE.—The term ‘‘State’’ means each of

9 the several States of the United States, the District

10 of Columbia, and the Commonwealth of Puerto Rico.

11 (13) UNIT OF GENERAL PURPOSE LOCAL GOV12 ERNMENT.—The term ‘‘unit of general purpose local

13 government’’ means—

14 (A) a political subdivision of a State whose

15 authority is general and not limited to only 1

16 function or combination of related functions; or

17 (B) a Native American organization.

18 (14) YOUTH.—The term ‘‘youth’’ means an in19 dividual who is not younger than age 10 and not

20 older than age 19.

21 (15) YOUTH DEVELOPMENT ORGANIZATION.—

22 The term ‘‘youth development’’, used with respect to

23 an organization, means a public or private youth24 serving organization with a major emphasis on pro25 viding youth development programs.
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1 (16) YOUTH DEVELOPMENT PROGRAMS.—The

2 term ‘‘youth development programs’’ means pro3 grams that prepare youth to contribute to their com4 munities and to meet the challenges of adolescence

5 and adulthood through a structured, progressive se6 ries of activities and experiences that (in contrast to

7 deficit-based approaches that focus solely on youth

8 problems) that—

9 (A) help the youth obtain social, emotional,

10 ethical, physical, and cognitive competencies;

11 and

12 (B) address the broader developmental re13 sources all children and youth need, such as the

14 core resources described in section 9102.

15 (17) YOUTH-SERVING ORGANIZATION.—The

16 term ‘‘youth-serving’’, used with respect to an orga17 nization, means a public or private organization with

18 a primary focus on providing youth development pro19 grams, or health, mental health, fitness, education,

20 workforce preparation, substance abuse prevention,

21 child welfare, psychological, parenting, recreation,

22 teen pregnancy prevention, rehabilitative, or residen23 tial services, to youth.
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1 CHAPTER 2—COORDINATION OF

2 NATIONAL YOUTH POLICY

3 SEC. 9111. OFFICE ON NATIONAL YOUTH POLICY.

4 (a) ESTABLISHMENT.—There is established in the

5 Executive Office of the President an Office of National

6 Youth Policy.

7 (b) ADMINISTRATION.—The Office of National Youth

8 Policy established under subsection (a) shall be adminis9 tered by a Director who shall be appointed by the Presi10 dent with the advice and consent of the Senate.

11 (c) RESPONSIBILITIES.—The Director appointed

12 under subsection (b) shall—

13 (1) establish, in cooperation with the Associate

14 Commissioner, policies, objectives, and priorities for

15 programs funded under this subtitle;

16 (2) serve as an effective and visible advocate for

17 youth in the Federal Government, and with other

18 departments, agencies, and instrumentalities of the

19 Federal Government, by actively reviewing and com20 menting on all Federal policies affecting youth;

21 (3) develop mechanisms to resolve administra22 tive and programmatic conflicts between Federal

23 programs that would be barriers to parents, commu24 nity-based, youth-serving, and youth development or25 ganizations, local government entities, education en-
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1 tities, older adult organizations, faith-based organi2 zations, and organizations supporting youth involved

3 in community service and civic participation, related

4 to the coordination of services and funding for pro5 grams promoting access to the full array of core re6 sources described in section 9102; and

7 (4) consult with and assist State and local gov8 ernments with respect to barriers the governments

9 encounter related to the coordination of services and

10 funding for programs under this subtitle.

11 (d) AUTHORIZATION OF APPROPRIATIONS.—For the

12 purposes of carrying out this chapter, there are authorized

13 to be appropriated $500,000 for fiscal year 2002 and such

14 sums as may be necessary for each of the 4 succeeding

15 fiscal years, to remain available until expended.

16 SEC. 9112. COUNCIL ON NATIONAL YOUTH POLICY.

17 (a) ESTABLISHMENT.—

18 (1) IN GENERAL.—There is established in the

19 Office a Council on National Youth Policy (referred

20 to in this section as the ‘‘Council’’).

21 (2) COMPOSITION.—

22 (A) NUMBER.—The Council shall be com23 posed of 12 members.
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1 (B) QUALIFICATIONS.—The President

2 shall appoint the 12 members of the Council

3 from among—

4 (i) individuals who have expertise or

5 experience with youth development or

6 youth-serving programs, especially pro7 grams serving rural and inner-city urban

8 youth;

9 (ii) representatives of national organi10 zations with an interest in youth develop11 ment programs;

12 (iii) representatives of business;

13 (iv) representatives of minorities; and

14 (v) parents.

(C) AGE.—At least 1 15 ⁄3 of the individuals

16 appointed shall be younger than age 21 at the

17 time of appointment.

18 (D) LIMITATIONS.—No full-time officer or

19 employee of the Federal Government may be

20 appointed to be a member of the Council.

21 (b) APPOINTMENT AND TERMS.—

22 (1) TERMS.—

23 (A) IN GENERAL.—Except as otherwise

24 provided in this section, a member of the Coun25 cil shall serve for a term of 3 years.
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1 (B) END OF TERM.—The term shall end

2 on March 31 regardless of the actual date of

3 the appointment of the member.

4 (2) SERVICE.—Members of the Council shall

5 serve without regard to the provisions of title 5,

6 United States Code.

7 (c) SERVICE DURING VACANCIES.—Any member ap8 pointed to fill a vacancy occurring prior to the expiration

9 of the term for which such member’s predecessor was ap10 pointed shall be appointed for the remainder of such term.

11 Members shall be eligible for reappointment and may con12 tinue to serve after the expiration of their terms until their

13 successors have taken office.

14 (d) VACANCIES.—Any vacancy in the Council shall

15 not affect the powers of the Council, but shall be filled

16 in the same manner as the original appointment was

17 made.

18 (e) CHAIRPERSON.—The President shall designate a

19 Chairperson for the Council from among the members ap20 pointed to the Council.

21 (f) MEETINGS.—The Council shall meet at the call

22 of the Chairperson at least twice a year.

23 (g) DUTIES.—The Council shall—

24 (1) advise and assist the President on matters

25 regarding the core resources youth need and the ca-
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1 pacity of youth to contribute to the Nation and their

2 communities;

3 (2) directly advise the Director and the Asso4 ciate Commissioner on matters affecting the youth

5 development needs of youth for services and assist6 ance under this subtitle;

7 (3) make recommendations to the President, to

8 the Director, to the Secretary, to the Associate Com9 missioner, and to Congress with respect to Federal

10 policies regarding youth; and

11 (4) provide public forums for discussion, pub12 licize the core resources youth need, and obtain in13 formation relating to assuring all youth access to the

14 full array of core resources described in section

15 9102, by conducting public hearings, and by con16 ducting or sponsoring conferences, workshops, and

17 other similar meetings.

18 (h) TRAVEL EXPENSES.—Members of the Council

19 shall not receive compensation for the performance of

20 services for the Council, but shall be allowed travel ex21 penses, including per diem in lieu of subsistence, at rates

22 authorized for employees of agencies under subchapter I

23 of chapter 57 of title 5, United States Code, while away

24 from their homes or regular places of business in the per25 formance of services for the Council. Notwithstanding sec-
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1 tion 1342 of title 31, United States Code, the Director

2 may accept the voluntary and uncompensated services of

3 members of the Council.

4 (i) REPORTS.—Not later than March 31 of 2003 and

5 each subsequent year, the Council shall prepare and sub6 mit to the President an annual report of the findings and

7 recommendations of the Council. The President shall

8 transmit each such report to Congress together with com9 ments and recommendations.

10 (j) PERMANENT COMMITTEE.—Section 14 of the

11 Federal Advisory Committee Act (5 U.S.C. App.) shall not

12 apply to the Council.

13 (k) AUTHORIZATION OF APPROPRIATIONS.—There

14 are authorized to be appropriated to carry out this section

15 $250,000 for fiscal year 2002 and such sums as may be

16 necessary for fiscal years 2003 through 2006.

17 CHAPTER 3—GRANTS FOR STATE AND

18 COMMUNITY PROGRAMS

19 SEC. 9121. PURPOSE.

20 The purpose of this chapter is to encourage and as21 sist State agencies, community boards, and area agencies

22 on youth to mobilize and support communities in planning,

23 implementing, and being accountable for strategies that

24 link community-based organizations, local government,

25 volunteer centers, schools, faith-based organizations, busi-
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1 ness, and other segments of the community to assure that

2 all youth have access to the full array of core resources

3 consisting of—

4 (1) ongoing relationships with caring adults;

5 (2) safe places with structured activities;

6 (3) services that promote healthy lifestyles, in7 cluding services designed to improve physical and

8 mental health;

9 (4) opportunities to acquire marketable skills

10 and competencies; and

11 (5) opportunities for community service and

12 civic participation.

13 SEC. 9122. AUTHORIZATION OF APPROPRIATIONS.

14 There are authorized to be appropriated to carry out

15 this chapter $500,000,000 for fiscal year 2002,

16 $750,000,000 for fiscal year 2003, $1,000,000,000 for fis17 cal year 2004, $1,500,000,000 for fiscal year 2005, and

18 $2,000,000,000 for fiscal year 2006.

19 SEC. 9123. ALLOTMENTS TO STATES.

20 (a) RESERVATIONS.—From sums appropriated under

21 section 9122 for each fiscal year, the Associate Commis22 sioner shall reserve—

23 (1) 95 percent of the sums for allotments to

24 States to enable the States to make allocations to

25 area agencies on youth;
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1 (2) 1 percent of the sums for grants to Native

2 American organizations to carry out activities con3 sistent with the objectives of this chapter;

4 (3) 1 percent of the sums for grants to outlying

5 areas to carry out activities consistent with the ob6 jectives of this chapter; and

7 (4) 3 percent of the sums for Federal discre8 tionary grant programs aimed at demonstrating

9 ways to respond to the special developmental needs

10 of youth—

11 (A) in correctional facilities and other out12 of-home residential settings;

13 (B) in areas with high concentrations of

14 poverty;

15 (C) in rural areas; and

16 (D) in situations where youth are at higher

17 risk due to abuse, neglect, disconnection from

18 family, disconnection from school, or another

19 community risk factor.

20 (b) USE OF FUNDS.—For each fiscal year for which

21 a State receives a State allotment, the State shall ensure

22 that funds made available through the allotment shall be

23 used for the purpose of conducting community-based

24 youth development programs that—
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1 (1) recognize the primary role of the family in

2 positive youth development in order to strengthen

3 families;

4 (2) promote the involvement of youth (including

5 program participants), parents, and other commu6 nity members in the planning and implementation of

7 the programs;

8 (3) coordinate services with other entities pro9 viding youth and family services in the community;

10 (4) eliminate barriers, such as transportation,

11 cost, and service delivery location, to the accessibility

12 of core youth development services;

13 (5) provide, directly or through a written con14 tract, a broad variety of accessible programs, activi15 ties, and services for youth that are designed to as16 sist youth in acquiring skills and competencies that

17 are necessary to make a successful transition from

18 childhood to adulthood;

19 (6) incorporate activities that foster relation20 ships between positive adult role models and youth,

21 provide age-appropriate activities, and provide activi22 ties that engage youth in, and promote, positive

23 youth development, including activities such as—

24 (A) youth clubs, character development ac25 tivities, mentoring, community service, leader-
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1 ship development, recreation, and literacy and

2 educational tutoring;

3 (B) sports, workforce readiness activities,

4 peer counseling, and fine and performing arts;

5 and

6 (C) camping and environmental education,

7 cultural enrichment, risk avoidance programs,

8 academic enrichment, and participant-defined

9 special interest group activities, courses, or

10 club; and

11 (7) employ strong outreach efforts to engage

12 the participation of a wide range of youth, families,

13 and service providers.

14 (c) ALLOTMENTS.—

15 (1) IN GENERAL.—Except as provided in para16 graph (2), from sums reserved under subsection

17 (a)(1), the Associate Commissioner shall allot to

18 each State the sum (referred to in this chapter as

19 the ‘‘State allotment’’) of—

20 (A) an amount that bears the same relation to 1 21 ⁄2 of the reserved sums as the number

22 of individuals who are not younger than age 10

23 and not older than age 19 in the State bears

24 to the number of such individuals in all the

25 States; and
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1 (B) an amount that bears the same relation to 1 2 ⁄2 of the reserved sums as the number

3 of youth who are receiving free or reduced price

4 lunches under the school lunch program estab5 lished under the Richard B. Russell National

6 School Lunch Act (42 U.S.C. 1751 et seq.) in

7 the State bears to the number of such youth in

8 all the States.

9 (2) STATE MINIMUM.—No State shall be allot10 ted less than 0.40 percent of the reserved sums for

11 a fiscal year.

12 (3) DETERMINATIONS.—For purposes of this

13 subsection, the number of individuals who are not

14 younger than age 10 and not older than age 19 in

15 any State and in all the States, and the number of

16 youth who are receiving free or reduced price

17 lunches under the school lunch program established

18 under the Richard B. Russell National School Lunch

19 Act in any State and in all the States, shall be de20 termined by the Associate Commissioner on the

21 basis of the most recent data available from the Bu22 reau of the Census, and other reliable demographic

23 data satisfactory to the Associate Commissioner.

24 (d) REALLOTMENTS.—Whenever the Associate Com25 missioner determines that any amount allotted to a State
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1 for a fiscal year under this section will not be used by

2 such State for carrying out the purpose for which the al3 lotment was made, the Associate Commissioner shall make

4 such amount available for carrying out such purpose to

5 1 or more other States to the extent the Associate Com6 missioner determines that such other States will be able

7 to use such amount for carrying out such purpose.

8 (e) WITHHOLDING.—

9 (1) IN GENERAL.—If the Associate Commis10 sioner finds that any State has failed to meet the

11 State plan requirements of section 9125 or the allo12 cation requirements of section 9126(b), the Asso13 ciate Commissioner shall withhold the State allot14 ment from such State.

15 (2) DISBURSAL.—The Associate Commissioner

16 shall disburse the funds withheld directly to any en17 tity that is a public or private institution, organiza18 tion, or agency, or unit of general purpose local gov19 ernment of such State that submits an approved

20 plan described in section 9128, if the plan includes

21 an agreement that the entity will—

22 (A) make available (directly or through do23 nations from public or private entities) non24 Federal contributions, in cash or in kind, in an
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1 amount equal to a percentage determined for

2 the State of the funds; and

3 (B) comply with the requirements of this

4 subtitle that apply to States receiving State al5 lotments under this section.

6 SEC. 9124. STATE AGENCIES AND PLANNING AND MOBILI7 ZATION AREAS.

8 (a) STATE AGENCIES.—In order for a State to be eli9 gible to receive a State allotment under this chapter—

10 (1) the State shall, in accordance with regula11 tions issued by the Associate Commissioner, des12 ignate a State agency as the sole State agency to—

13 (A) develop a State plan to be submitted

14 to the Associate Commissioner for approval

15 pursuant to section 9125;

16 (B) administer the plan in the State;

17 (C) be primarily responsible for the plan18 ning, policy development, administration, co19 ordination, priority setting, and evaluation of

20 all State activities related to the objectives of

21 this subtitle;

22 (D) serve as an effective and visible advo23 cate for youth by reviewing and commenting on

24 all State plans, budgets, and policies that affect

25 youth; and
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1 (E) divide the State into distinct planning

2 and mobilization areas, after considering the

3 views offered by units of general purpose local

4 government and appropriate public or private

5 agencies and organizations in the State, in ac6 cordance with regulations issued by the Asso7 ciate Commissioner; and

8 (2) the State agency shall—

9 (A) designate for each such area, after

10 consideration of the views offered by the units

11 of general purpose local government and by

12 agencies and organizations in such areas, a

13 public or private nonprofit agency or organiza14 tion to serve as the area agency on youth for

15 such area;

16 (B) provide assurances that the State

17 agency will solicit and take into account, with

18 regard to general policy related to the develop19 ment and the administration of the State plan

20 for any fiscal year, the views of youth who are

21 the recipients of services provided for in the

22 plan;

23 (C) in accordance with guidelines issued by

24 the Associate Commissioner, make allocations
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1 to area agencies on youth pursuant to section

2 9126(b);

3 (D) provide reasonable assurances that

4 Federal funds made available under this chap5 ter for the State for any period will be used to

6 supplement, and not supplant, the State, local,

7 and other funds that would in the absence of

8 such Federal funds be made available for the

9 programs, services, and activities described in

10 this chapter;

11 (E) coordinate the activities of the State

12 agency with other State agencies and offices,

13 including—

14 (i) State Commissions on National

15 and Community Service established under

16 section 178 of the National and Commu17 nity Service Act of 1990 (42 U.S.C.

18 12638);

19 (ii) entities carrying out programs

20 under the Runaway and Homeless Youth

21 Act (42 U.S.C. 5701 et seq.) and other

22 programs under the Juvenile Justice and

23 Delinquency Prevention Act of 1974 (42

24 U.S.C. 5601 et seq.);
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1 (iii) entities carrying out independent

2 living programs;

3 (iv) entities carrying out foster care

4 programs;

5 (v) youth councils established under

6 section 117(h) of the Workforce Invest7 ment Act of 1998 (29 U.S.C. 2832(h));

8 and

9 (vi) entities carrying out activities

10 through 21st Century Community Learn11 ing Centers under part I of title X of the

12 Elementary and Secondary Education Act

13 of 1965 (20 U.S.C. 8241 et seq.); and

14 (F) compile reports from area agencies on

15 youth, including outcome data and evaluation

16 information regarding programs funded under

17 this chapter, provide an annual report based on

18 the compilation to the Associate Commissioner,

19 and provide a copy of such report to the Direc20 tor.

21 (b) PLANNING AND MOBILIZATION AREAS.—

22 (1) UNIT OF GENERAL PURPOSE LOCAL GOV23 ERNMENT.—

24 (A) CRITERIA.—In carrying out subsection

25 (a)(1), the State agency may designate as a
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1 planning and mobilization area any unit of gen2 eral purpose local government that has a popu3 lation of 100,000 or more. In particular, the

4 State agency may designate such a unit as a

5 planning and mobilization area if the unit has

6 been engaged in youth development program

7 planning and mobilization, such as a commu8 nity of promise coordinated by America’s Prom9 ise: the Alliance for Youth.

10 (B) HEARING.—In any case in which a

11 unit of general purpose local government ap12 plies to the State agency to be designated as a

13 planning and mobilization area under this para14 graph, the State agency shall, upon request,

15 provide an opportunity for a hearing to such

16 unit of general purpose local government.

17 (2) REGION.—The State agency may designate

18 as a planning and mobilization area under sub19 section (a)(1) any region in the State that includes

20 1 or more units of general purpose local government

21 if the State agency determines that the designation

22 of such a regional planning and mobilization area is

23 necessary for, and will enhance, the effective admin24 istration of the programs authorized by this chapter.
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1 (3) ADDITIONAL AREAS.—The State agency

2 may include in any planning and mobilization area

3 designated under subsection (a)(1) such additional

4 areas, adjacent to a unit of general purpose local

5 government, as the State agency determines to be

6 necessary for, and will enhance, the effective admin7 istration of the programs authorized by this chapter.

8 (4) INDIAN RESERVATIONS.—The State agency,

9 in carrying out subsection (a)(1), shall to the extent

10 practicable include all portions of an Indian reserva11 tion in a single planning and mobilization area.

12 SEC. 9125. STATE PLANS.

13 (a) IN GENERAL.—To be eligible to receive a State

14 allotment under this chapter, a State shall prepare and

15 submit to the Associate Commissioner a State plan, for

16 a 2-, 3-, or 4-year period determined by the State agency,

17 at such time, in such manner, and meeting such criteria

18 as the Associate Commissioner may by regulation pre19 scribe, and shall make such annual revisions as may be

20 necessary to the plan.

21 (b) CONTENTS.—Each such State plan shall contain

22 assurances that the plan is based on area plans developed

23 under section 9128 by area agencies on youth in the State

24 and that the State has prepared and distributed a uniform
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1 format for use by area agencies on youth in developing

2 the area plans.

3 SEC. 9126. DISTRIBUTION OF FUNDS FOR STATE ACTIVI4 TIES AND LOCAL ALLOCATIONS.

5 (a) IN GENERAL.—From a State allotment made

6 under this chapter for any fiscal year—

7 (1)(A) the State agency may use such amount

8 as the State agency determines to be appropriate,

9 but not more than 7 percent, for the purposes of

10 subparagraphs (B) and (C);

11 (B) the State agency may use such amount as

12 the State agency determines to be appropriate, but

13 not more than 4 percent of the State allotment, for

14 paying the cost of—

15 (i) reviewing area plans and distributing

16 funds to area agencies on youth; and

17 (ii) assisting community boards and area

18 agencies on youth in carrying out activities

19 under this chapter; and

20 (C) the State agency may use such amount as

21 the State agency determines to be appropriate, but

22 not less than 3 percent and not more than 7 percent

23 of the State allotment, for making State discre24 tionary grants to respond to the special develop25 mental needs of youth—
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1 (i) in correctional facilities and other out2 of-home residential settings;

3 (ii) in areas with high concentrations of

4 poverty;

5 (iii) in rural areas; and

6 (iv) in situations where youth are at great7 er risk due to abuse, neglect, disconnection

8 from family, disconnection from school, or an9 other community risk factor; and

10 (2) the State agency shall use the remainder of

11 such allotment to make allocations under subsection

12 (b) to area agencies on youth associated with plan13 ning and mobilization areas, to pay for the cost of

14 programs under this chapter that are specified in

15 area plans that—

16 (A) are developed through a comprehensive

17 and coordinated system of planning;

18 (B) have been approved by the community

19 board; and

20 (C) have been approved by the State agen21 cy.

22 (b) ALLOCATIONS.—From the remainder of the State

23 allotment described in subsection (a)(2), the State agency,

24 using the best available data, shall allocate for each plan25 ning and mobilization area in the State the sum of—
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1 (1) an amount that bears the same relation to

1 2 ⁄2 of the remainder as the number of individuals

3 who are not younger than age 10 and not older than

4 age 19 in the planning and mobilization area bears

5 to the number of such individuals in the State; and

6 (2) an amount that bears the same relation to

1 7 ⁄2 of the remainder as the number of youth who are

8 receiving free or reduced price lunches under the

9 school lunch program established under the Richard

10 B. Russell National School Lunch Act (42 U.S.C.

11 1751 et seq.) in the planning and mobilization area

12 bears to the number of such youth in the State.

13 (c) NON-FEDERAL SHARE.—A State that uses Fed14 eral funds provided under this chapter to carry out the

15 activities described in section 9126(a)(1)(B) shall make

16 available (directly or through donations from public or pri17 vate entities) non-Federal contributions in cash in an

18 amount equal to not less than $1 for every $1 of the Fed19 eral funds.

20 SEC. 9127. COMMUNITY BOARDS AND AREA AGENCIES ON

21 YOUTH.

22 (a) COMMUNITY BOARD.—

23 (1) SELECTION.—

24 (A) LOCAL GOVERNMENTS AND FUNDING

25 AND COORDINATING AGENCIES.—Except as oth-
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1 erwise provided in this paragraph, in order to

2 receive funds from a State pursuant to this

3 chapter, a planning and mobilization area shall

4 have a community board appointed and con5 vened jointly by the chief executive officer of a

6 local funding and coordinating agency in the

7 area and the chief executive officers of units of

8 general purpose local government in the area.

9 (B) PRIVATE AGENCIES AND LOCAL GOV10 ERNMENTS.—In the event that a local funding

11 and coordinating agency is not represented in

12 the planning and mobilization area, or the chief

13 executive officer of a local funding and coordi14 nating agency in the area is unwilling or unable

15 to participate in jointly appointing and con16 vening the community board, the State agency,

17 after consideration of the views offered by the

18 units of general purpose local government and

19 by nonprofit agencies and organizations in such

20 area, shall designate a private nonprofit agency

21 or organization in the area to appoint and con22 vene the community board jointly with the chief

23 executive officers of units of general purpose

24 local government in the area.
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1 (C) LOCAL FUNDING AND COORDINATING

2 AGENCIES AND PUBLIC ENTITIES.—In the event

3 that a chief executive officer of a unit of gen4 eral purpose local government in the planning

5 and mobilization area is unwilling or unable to

6 participate in jointly appointing and convening

7 the community board, the State agency, after

8 consideration of the views offered by the units

9 of general purpose local government and by

10 youth-serving organizations in such area, shall

11 designate an executive official of a public entity

12 in the area to appoint and convene the commu13 nity board jointly with the chief executive offi14 cer of a local funding and coordinating agency

15 and any other chief executive officers of units

16 of general purpose local government.

17 (D) EXISTING ENTITY.—An existing entity

18 in the planning and mobilization area may serve

19 as the community board if—

20 (i) such entity’s membership meets

21 the requirements for a community board or

22 is adapted to meet such requirements;

23 (ii) such entity’s membership was ap24 pointed by the chief executive officer of a
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1 unit of general purpose local government

2 in the area;

3 (iii) such entity is approved by the

4 State agency; and

5 (iv) such entity is approved by the

6 chief executive officer of a local funding

7 and coordinating agency, or by the chief

8 executive officer of a private nonprofit

9 agency or organization designated accord10 ing to subparagraph (B) in the event that

11 a local funding and coordinating agency is

12 not represented in the area or the chief ex13 ecutive officer of the agency is unwilling or

14 unable to consider the approval of the enti15 ty.

16 (2) COMPOSITION.—A community board shall

17 consist of an equal number of local representatives

18 from each of the following 3 groups:

19 (A) A group comprised of individuals, in20 cluding minority individuals, under age 21 at

21 the time of their appointment.

22 (B) A group comprised of representatives

23 of—

24 (i) private youth-serving and youth

25 development organizations (in existence as
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1 of the date of appointment of the rep2 resentatives to the board);

3 (ii) public youth-serving and youth de4 velopment organizations; and

5 (iii) organizations supporting youth

6 involved in community service and civic

7 participation.

8 (C) A group comprised of representatives

9 of—

10 (i) local elected officials;

11 (ii) educational entities, including

12 local elementary, middle, and secondary

13 schools, community colleges, colleges, and

14 universities;

15 (iii) volunteer centers;

16 (iv) philanthropic organizations, in17 cluding community foundations;

18 (v) businesses and employee organiza19 tions;

20 (vi) faith-based organizations;

21 (vii) health and mental health agen22 cies; and

23 (viii) parents and grandparents.
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1 (3) CHAIRPERSON.—After being appointed and

2 convened, the community board shall elect a chair3 person from among its membership.

4 (4) RESPONSIBILITIES.—Each community

5 board in each planning and mobilization area shall

6 have responsibility for supervising the preparation,

7 submission, and implementation of the area plan de8 scribed in section 9128, including the approval of

9 grants and contracts funded pursuant to this chap10 ter within the planning and mobilization area.

11 (b) AREA AGENCY ON YOUTH.—An area agency on

12 youth—

13 (1) shall serve as the fiscal agent for a planning

14 and mobilization area;

15 (2) shall be under the supervision of the com16 munity board for the planning and mobilization area

17 with regard to activities conducted pursuant to this

18 chapter;

19 (3) shall provide an assurance to the State

20 agency, that is determined to be adequate by the

21 State agency, that such area agency on youth will

22 have the ability to develop an area plan for the plan23 ning and mobilization area and to carry out, either

24 directly or indirectly through contractual or other
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1 arrangements, a youth development program in ac2 cordance with such plan; and

3 (4) shall compile reports from entities carrying

4 out programs, services, and activities approved by

5 the community board for funding under this subtitle,

6 including outcome data and evaluation information

7 regarding program accomplishments, and provide an

8 annual report based on the compilation to the State

9 agency.

10 (c) COMMUNITY MOBILIZATION EXPENSES.—An

11 area agency on youth may use not more than 10 percent

12 of the allocation made to the agency under this chapter

13 for expenses related to community mobilization, including

14 expenses related to generating additional commitments of

15 cash and in-kind resources, administration, planning,

16 monitoring, and evaluation.

17 SEC. 9128. AREA PLANS.

18 (a) IN GENERAL.—Each area agency on youth for

19 a planning and mobilization area shall, in order to be ap20 proved by the State agency and receive an allocation under

21 this chapter, develop, prepare, and submit to the State

22 agency an area plan, approved by the community board,

23 for the planning and mobilization area at such time, in

24 such manner, and containing such information as the

25 State agency may require. Such plan shall be for a 2-,
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1 3-, or 4-year period determined by the State agency, with

2 such annual revisions as may be necessary. Each such

3 plan shall be based upon a uniform format for area plans

4 in the State prepared in accordance with section 9125(b).

5 (b) CONTENTS.—Each such plan shall—

6 (1) provide specific outcome objectives for youth

7 development programs, services, and activities to be

8 carried out in the planning and mobilization area,

9 based on an assessment of needs and resources, suf10 ficient to assure that all youth in the area have ac11 cess through a comprehensive and coordinated sys12 tem to the full array of core resources that consist

13 of—

14 (A) ongoing relationships with caring

15 adults;

16 (B) safe places with structured activities;

17 (C) services that promote healthy lifestyles,

18 including services designed to improve physical

19 and mental health;

20 (D) opportunities to acquire marketable

21 skills and competencies; and

22 (E) opportunities for community service

23 and civic participation;

24 (2) provide an assurance that, in awarding

25 grants and contracts to entities to implement the
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1 area plan to provide youth with access to core re2 sources described in paragraph (1) through youth

3 development programs, the agency will give priority

4 to entities as described in section 9130(b);

5 (3) provide that not less than 30 percent of the

6 funds allocated under this chapter for the planning

7 and mobilization area will be used for youth develop8 ment programs that respond to the special develop9 mental needs of youth—

10 (A) in correctional facilities and other out11 of-home residential settings;

12 (B) in areas with high concentrations of

13 poverty;

14 (C) in rural areas; and

15 (D) in situations where youth are at higher

16 risk due to abuse, neglect, disconnection from

17 family, disconnection from school, or another

18 community risk factor;

19 (4) provide assurances that youth engaged in

20 programs carried out under the area plan will be

21 treated equitably;

22 (5) contain strategies for mobilizing and coordi23 nating community resources to meet the outcome ob24 jectives;
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1 (6) describe activities for which funds made

2 available through the allocation will be used to fill

3 gaps between unmet needs and available resources;

4 (7) describe the inclusive process used by the

5 area agency on youth to engage all segments of the

6 communities in the planning and mobilization area

7 in developing the area plan;

8 (8) provide measures of program effectiveness

9 to be used in evaluating the progress of the pro10 grams, services, and activities approved by the com11 munity board in the area in assuring access for all

12 youth to the full array of core resources described in

13 paragraph (1), including specific measures for pro14 viding access to such resources for youth living in

15 areas with high concentrations of poverty;

16 (9) describe how local requirements for pro17 viding matching funds will be met, how resources

18 will be leveraged, and the uses to which matching

19 funds and leveraged resources will be applied, in car20 rying out the area plan;

21 (10) provide for the establishment and mainte22 nance of outreach sufficient to ensure that youth

23 and their families in the planning and mobilization

24 area are aware of programs providing access to the

25 core resources described in paragraph (1);
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1 (11) provide that the area agency on youth,

2 under the supervision of the community board,

3 will—

4 (A) conduct periodic evaluations of, and

5 public hearings on, activities carried out under

6 the area plan;

7 (B) furnish technical assistance to entities

8 carrying out programs under this chapter with9 in the planning and mobilization area;

10 (C) establish effective and efficient proce11 dures for the coordination of—

12 (i) entities carrying out programs

13 under this chapter within the planning and

14 mobilization area; and

15 (ii) entities carrying out other Federal

16 programs for youth within the planning

17 and mobilization area;

18 (D) conduct outreach, to identify youth in

19 the area and inform the youth of the avail20 ability of resources under this subtitle; and

21 (E) take into account in connection with

22 matters of general policy arising in the develop23 ment and administration of the area plan, the

24 views of youth who have participated in pro25 grams pursuant to the plan; and
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1 (12) provide for the utilization of entities car2 rying out volunteer service centers and organizations

3 supporting youth involved in community service and

4 civic participation in the area to—

5 (A) encourage and enlist the services of

6 local volunteer groups to provide assistance and

7 services appropriate to the unique develop8 mental needs of youth in the planning and mo9 bilization area;

10 (B) encourage, organize, and promote

11 youth to serve as volunteers to communities in

12 the area; and

13 (C) promote recognition of the contribution

14 made by youth volunteers to programs adminis15 tered in the planning and mobilization area.

16 SEC. 9129. GRANTS AND CONTRACTS TO ELIGIBLE ENTI17 TIES.

18 (a) REQUEST FOR PROPOSALS.—In implementing an

19 area plan, once the plan has been submitted to and ap20 proved by the State agency, an area agency on youth,

21 under the supervision of a community board, shall issue

22 a request for proposals, to award grants and contracts to

23 eligible entities to carry out youth development programs

24 under the plan.
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1 (b) GRANTS AND CONTRACTS.—The area agency on

2 youth, under the supervision of the community board,

3 shall use the funds made available through the allocation

4 made to the agency under this chapter to award grants

5 on a competitive basis and contracts to eligible entities to

6 pay for the Federal share of the cost of carrying out the

7 youth development programs. Not more than 50 percent

8 of the funds made available through the allocation made

9 to the agency may be awarded to a single recipient of a

10 grant or contract unless the recipient is a consortium as

11 described in section 9130(a)(1) or approved by the Asso12 ciate Commissioner.

13 (c) PERIOD.—The area agency on youth may award

14 such a grant or contract for a period of not more than

15 4 years. The area agency on youth, under the supervision

16 of the community board and after reviewing the reports

17 (including outcome data and evaluation information) com18 piled pursuant to section 9127(b)(4), may terminate the

19 funding made available through such grant or contract

20 during such grant or contract period for a program if the

21 program fails to comply with the requirements of this sub22 title or if insufficient Federal funds are appropriated

23 under section 9122 to permit continuation of funding of

24 the program.

25 (d) FEDERAL SHARE.—
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1 (1) IN GENERAL.—The Federal share of the

2 cost of carrying out a program described in this sec3 tion shall be—

4 (A) 80 percent for the first and second

5 year for which the program receives funding

6 under this section;

7 (B) 70 percent for the third such year;

8 (C) 60 percent for the fourth such year;

9 and

10 (D) 50 percent for any subsequent year.

11 (2) NON-FEDERAL SHARE.—An entity that re12 ceives a grant or contract under this section may

13 provide for the non-Federal share of the cost from

14 non-Federal sources (which may include State or

15 local public sources) in cash or in kind, fairly evalu16 ated, including facilities, equipment, or services.

17 (3) ADJUSTMENTS.—A State agency and the

18 Associate Commissioner may jointly adjust the Fed19 eral share of the cost that applies to an entity that

20 receives a grant or contract under this section from

21 an area agency on youth, in the event that the agen22 cy demonstrates significant economic need sufficient

23 to cause difficulties in area plan implementation.
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1 SEC. 9130. ELIGIBLE ENTITIES.

2 (a) IN GENERAL.—To be eligible to receive a grant

3 or contract under section 9129, an entity shall be—

4 (1) a consortium of community-based youth5 serving or youth development organizations, public

6 agencies, health and mental health agencies, edu7 cation entities including community colleges, col8 leges, and universities, volunteer centers, faith-based

9 organizations, older adult organizations, or organiza10 tions supporting youth involved in community service

11 and civic participation; or

12 (2) a community-based public or private youth13 serving or youth development organization.

14 (b) PRIORITY.—In awarding grants and contracts

15 under section 9129, an area agency on youth shall give

16 priority to—

17 (1) entities that carry out health and human

18 service programs (as of the date of submission of the

19 area plan) that use proven methods and materials

20 supported by evaluation and have proven records of

21 effective service delivery and sustainability; and

22 (2) entities that submit applications under sec23 tion 9131 that—

24 (A) evidence collaboration among commu25 nity agencies in providing services under an

26 area plan; and
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1 (B) are outcome driven.

2 (c) ADMINISTRATIVE EXPENSES.—An entity that re3 ceives a grant or contract under section 9129 may use

4 up to 5 percent of the funds received through the grant

5 or contract for the cost of administrative expenses.

6 (d) LIMITATION.—A for-profit entity that receives a

7 grant or contract under section 9129 may not use funds

8 made available through the grant or contract for the pur9 poses of generating additional profits.

10 SEC. 9131. APPLICATIONS.

11 To be eligible to receive a grant or contract under

12 section 9129 to carry out youth development programs

13 under an area plan, an entity shall submit an application

14 to the area agency on youth for the area at such time,

15 in such manner, and containing such information as the

16 area agency on youth, under the direction of the commu17 nity board, and the appropriate State agency, may reason18 ably require.

19 SEC. 9132. YOUTH DEVELOPMENT PROGRAMS.

20 (a) ACCESS.—An entity that receives a grant or con21 tract under section 9129 to carry out a program shall im22 plement a program that promotes, either directly, through

23 a contract, or indirectly through collaboration with other

24 community entities, access to the full array of core re25 sources specified in section 9102.
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1 (b) ACTIVITIES.—An entity that receives a grant or

2 contract under section 9129 to carry out a program may

3 include among activities provided through the program,

4 which are part of an effort to provide access to the full

5 array of core resources specified in section 9102—

6 (1) character development and ethical enrich7 ment activities;

8 (2) mentoring activities, including one-to-one

9 relationship building and tutoring;

10 (3) provision and support of community youth

11 centers and clubs;

12 (4) nonschool hours, weekend, and summer pro13 grams and camps;

14 (5) sports, recreation, and other activities pro15 moting physical fitness and teamwork;

16 (6) services that promote health and healthy de17 velopment and behavior on the part of youth, includ18 ing risk avoidance programs;

19 (7) academic enrichment, peer counseling and

20 teaching, and literacy activities;

21 (8) camping and environmental education;

22 (9) cultural enrichment, including enrichment

23 through music, and fine and performing arts;
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1 (10) workforce preparation, youth entrepreneur2 ship, and technological and vocational skill building,

3 including skill building involving computer skills;

4 (11) opportunities for community service aimed

5 at involving youth in providing the full array of core

6 resources described in section 9102 to other youth,

7 including opportunities provided in conjunction with

8 activities being performed by entities under the Na9 tional and Community Service Act of 1990 (42

10 U.S.C. 12501 et seq.);

11 (12) opportunities that engage youth in civic

12 participation and as partners in decisionmaking, es13 pecially opportunities with respect to programs and

14 strategies that seek to offer access to the full array

15 of core resources described in section 9102;

16 (13) special interest group activities or courses,

17 including activities or courses regarding video pro18 duction, cooking, gardening, pet care, photography,

19 and other youth-identified interests;

20 (14) efforts focused on building the capacity of

21 community-based youth workers, utilizing commu22 nity colleges, colleges, and universities;

23 (15) public and private youth led programs, in24 cluding such programs provided by youth-serving or

25 youth development organizations;
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1 (16) transportation services to foster the par2 ticipation of youth in youth development programs

3 in the community involved;

4 (17) subsidies for youth from families that meet

5 the income eligibility guidelines for a free or reduced

6 price lunch under section 9(b) of the Richard B.

7 Russell National School Lunch Act (42 U.S.C.

8 1758(b)), if the provision of the subsidy allows a

9 youth to fully participate in a youth development

10 program that is part of a strategy to promote access

11 to the full array of core resources described in sec12 tion 9102;

13 (18) training or group counseling to assist

14 youth, by State certified counselors, psychologists,

15 social workers, or other State licensed or certified

16 mental health professionals who are qualified under

17 State law to provide such training or counseling to

18 youth; and

19 (19) referrals to State certified counselors, psy20 chologists, social workers, or other State licensed or

21 certified mental health professionals or health pro22 fessionals qualified under State law to provide such

23 training or counseling to youth.
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1 CHAPTER 4—TRAINING, RESEARCH, AND

2 EVALUATION

3 SEC. 9141. PURPOSE.

4 The purpose of this chapter is to expand the Nation’s

5 knowledge and understanding of youth, youth development

6 programs, and community mobilization aimed at providing

7 all youth with access to the full array of core resources

8 described in section 9102 by—

9 (1) assisting States in evaluating the effective10 ness of activities implemented under this subtitle, in11 cluding evaluating the outcomes resulting from the

12 activities;

13 (2) placing priority on the education and train14 ing of personnel, with respect to youth development

15 programs, to work with youth, with a special empha16 sis on youth who are minority individuals and youth

17 who are low-income individuals;

18 (3) conducting research and identifying effec19 tive practices directly related to the field of youth

20 development; and

21 (4) disseminating information acquired through

22 such research.

23 SEC. 9142. GRANTS AND CONTRACTS.

24 (a) IN GENERAL.—The Associate Commissioner may

25 award grants and contracts to eligible entities to carry out
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1 evaluation, education and training, research, and dissemi2 nation activities described in this section.

3 (b) EVALUATION.—

4 (1) SYSTEM.—The Associate Commissioner

5 shall develop and establish a system for evaluating

6 the effectiveness of activities implemented under this

7 subtitle, including mechanisms for determining and

8 measuring programmatic outcomes resulting from

9 those activities.

10 (2) DISTRIBUTION.—In awarding grants and

11 contracts under subsection (a), the Associate Com12 missioner shall use 50 percent of the funds appro13 priated to carry out this chapter for an equitable

14 distribution among the States to allow State agen15 cies to be responsible for evaluating the effectiveness

16 of the activities implemented in the State under this

17 subtitle.

18 (c) EDUCATION AND TRAINING.—The Associate

19 Commissioner shall develop and establish a system for

20 providing education and training of personnel of States,

21 area agencies on youth, and community boards to increase

22 their capacity to work with youth, with a special emphasis

23 on youth who are minority individuals and youth who are

24 low-income individuals, in carrying out quality youth de25 velopment programs under this subtitle.
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1 (d) IMPACT EVALUATION.—

2 (1) BIENNIAL EVALUATION.—The Associate

3 Commissioner, in consultation with the Director and

4 the National Council on Youth Policy, shall conduct

5 an independent biennial evaluation of the impact of

6 programs assisted under this subtitle and of other

7 recent and new initiatives (as of the date of the eval8 uation) to promote positive youth development. The

9 evaluation shall report on—

10 (A) whether the entities carrying out the

11 programs and initiatives—

12 (i) provided a thorough assessment of

13 local resources and barriers to access to

14 the full array of core resources;

15 (ii) used objective data and the knowl16 edge of a wide range of community mem17 bers;

18 (iii) developed measurable goals and

19 objectives;

20 (iv) implemented research-based pro21 grams and initiatives that have been shown

22 to be effective and meet identified needs;

23 and

24 (v) conducted periodic evaluations to

25 assess progress made towards achieving
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1 goals and objectives and used evaluations

2 to improve goals, objectives, and activities;

3 (B) whether the programs and initiatives

4 have been designed and implemented in a man5 ner that specifically targets, if relevant to the

6 program or initiative involved—

7 (i) research-based variables that are

8 predictive of healthy youth development;

9 (ii) risk factors that are predictive of

10 an increased likelihood that youth will use

11 drugs, alcohol, or tobacco, or engage in vi12 olence or drop out of school; or

13 (iii) protective factors, buffers, or as14 sets that are known to protect youth from

15 exposure to risk, either by reducing the ex16 posure to risk factors or by changing the

17 way a youth responds to risk, and to in18 crease the likelihood of positive youth de19 velopment;

20 (C) whether the programs and initiatives

21 have appreciably reduced individual risk-taking

22 behavior and community risk factors and in23 creased either individual or community protec24 tive factors; and
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1 (D) whether the entities carrying out the

2 programs and initiatives have incorporated ef3 fective youth and parent involvement.

4 (2) BIENNIAL REPORT.—Not later than Janu5 ary 1, 2004, and every 2 years thereafter, the Asso6 ciate Commissioner shall submit to the President

7 and Congress a report on the findings of the evalua8 tion conducted under paragraph (1) together with

9 the data available from other sources on the well10 being of youth.

11 (e) DISSEMINATION.—The Associate Commissioner

12 shall develop a system to facilitate the dissemination of

13 information acquired through the research to States, area

14 agencies on youth, community boards, and the public

15 about successful and promising strategies for providing all

16 youth with the full array of core resources specified in sec17 tion 9102.

18 SEC. 9143. AUTHORIZATION OF APPROPRIATIONS.

19 There are authorized to be appropriated to carry out

20 this chapter $7,000,000 for fiscal year 2002 and such

21 sums as may be necessary for each of fiscal years 2003,

22 2004, 2005, and 2006.
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1 Subtitle C—Youth Programs

2 SEC. 9201. AMERICORPS.

3 Section 501(a)(2)(A) of the National and Community

4 Service Act of 1990 (42 U.S.C. 12681(a)(2)(A)) is amend5 ed by striking ‘‘$300,000,000’’ and all that follows and

6 inserting ‘‘$500,000,000 for fiscal year 2002.’’.

7 SEC. 9202. YOUTHBUILD PROGRAM.

8 Section 402 of the Cranston-Gonzalez National Af9 fordable Housing Act (42 U.S.C. 12870) is amended by

10 adding at the end the following:

11 ‘‘(d) FISCAL YEAR 2002.—There is authorized to be

12 appropriated for grants under subtitle D, $75,000,000 for

13 fiscal year 2002.’’.

14 SEC. 9203. YOUTH WORKFORCE INVESTMENT ACTIVITIES.

15 (a) YOUTH OPPORTUNITIES GRANTS.—Section

16 127(b)(1)(A)(ii)(II) of the Workforce Investment Act of

17 1998 (29 U.S.C. 2852(b)(1)(A)(ii)(II)) is amended by

18 striking ‘‘$1,250,000,000 or greater, $250,000,000.’’ and

19 inserting ‘‘$1,391,000,000 or greater, $391,000,000.’’

20 (b) YOUTH ACTIVITIES FORMULA GRANTS.—Section

21 137(a) of the Workforce Investment Act of 1998 (29

22 U.S.C. 2872(a)) is amended by striking ‘‘such sums’’ and

23 all that follows and inserting ‘‘$2,427,000,000 for fiscal

24 year 2002.’’.
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1 (c) JOB CORPS.—Section 161 of the Workforce In2 vestment Act of 1998 (29 U.S.C. 2901) is amended by

3 striking ‘‘such sums’’ and all that follows and inserting

4 ‘‘$1,400,000,000 for fiscal year 2002.’’.

5 SEC. 9204. TRANSITION TRAINING FOR REINTEGRATING

6 YOUTH OFFENDERS.

7 Section 821(j) of the Higher Education Amendments

8 of 1998 (20 U.S.C. 1151(j)) is amended by striking

9 ‘‘$17,000,000’’ and all that follows and inserting

10 ‘‘$75,000,000 for fiscal year 2002.’’.

11 TITLE X—SAFE START—

12 JUVENILE JUSTICE

13 Subtitle A—Juvenile Delinquency

14 Prevention and Protection

15 SEC. 10001. DEFINITION OF JUVENILE.

16 Section 103 of the Juvenile Justice and Delinquency

17 Prevention Act of 1974 (42 U.S.C. 5603) is amended by

18 adding at the end the following:

19 ‘‘(24) the term ‘juvenile’ means an individual

20 who is less than 18 years of age.’’.

21 SEC. 10002. STATE PLAN ALLOCATION.

22 Section 222(a)(2) of the Juvenile Justice and Delin23 quency Prevention Act of 1974 (42 U.S.C. 5632(a)(2)) is

24 amended—

25 (1) in subparagraph (A)—
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1 (A) by striking ‘‘$325,000’’ and inserting

2 ‘‘$600,000’’; and

3 (B) by striking ‘‘$400,000’’ and inserting

4 $750,000; and

5 (2) in subparagraph (B)—

6 (A) by striking ‘‘$400,000’’ and inserting

7 ‘‘$600,000’’; and

8 (B) by striking ‘‘$600,000’’ and inserting

9 $750,000’’.

10 SEC. 10003. STATE PLAN REQUIREMENTS.

11 Section 223(a) of the Juvenile Justice and Delin12 quency Prevention Act of 1974 (42 U.S.C. 5633(a)) is

13 amended—

14 (1) by redesignating paragraphs (24) and (25)

15 as paragraphs (30) and (31), respectively; and

16 (2) by inserting after paragraph (23) the fol17 lowing:

18 ‘‘(24) provide an assurance that the State shall

19 address the disparate treatment of members of mi20 nority groups at all stages of the juvenile justice sys21 tem, including intake, arrest, detention, adjudica22 tion, disposition, and transfer;

23 ‘‘(25) provide an assurance that the State shall

24 make the amended plan submitted annually under

25 this section available to the public and shall include
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1 in the amended plan a report of the State’s progress

2 in addressing the disparate treatment of members of

3 minority groups at all stages of the juvenile justice

4 system, including data on any disproportionate rep5 resentation of African American, Latino, Native

6 American, and Asian juveniles;

7 ‘‘(26) contain satisfactory evidence that the

8 State has held a public hearing on the plan;

9 ‘‘(27) provide an assurance that the State shall

10 provide every accused or adjudicated juvenile with

11 reasonable safety and security, adequate food, heat,

12 light, sanitary facilities, bedding, clothing, recre13 ation, counseling, education, training, and medical

14 care, including, if necessary, mental health services;

15 ‘‘(28) provide that not more than 3 percent of

16 funds received by the State under section 222 shall

17 be expended to establish a State juvenile justice coa18 lition, which coalition shall include the participation

19 of juveniles;

20 ‘‘(29) provide that 3 percent of funds received

21 by the State under section 222 shall be expended to

22 carry out paragraph (24);’’.
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1 SEC. 10004. REPEAL OF PART H.

2 Part H of title II of the Juvenile Justice and Delin3 quency Prevention Act of 1974 (42 U.S.C. 5667f, 5667f–

4 1, 5667f–2, and 5667f–3) is repealed.

5 SEC. 10005. FUNDING OF FEDERAL ASSISTANCE FOR STATE

6 AND LOCAL PROGRAMS.

7 Section 299 of the Juvenile Justice and Delinquency

8 Prevention Act of 1974 (42 U.S.C. 5671) is amended by

9 adding at the end the following:

10 ‘‘(f) AUTHORIZATION FOR 2002.—There is author11 ized to be appropriated $150,000,000 to carry out part

12 B of this title for fiscal year 2002.’’.

13 SEC. 10006. FUNDING OF GRANTS FOR PREVENTION PRO14 GRAMS.

15 Section 505 of the Juvenile Justice and Delinquency

16 Prevention Act of 1974 (42 U.S.C. 5784) is amended by

17 adding at the end the following:

18 ‘‘(d) FUNDING.—Not less than 75 percent of funds

19 made available under this title shall be used to carry out

20 this section.’’.

21 SEC. 10007. AUTHORIZATION OF APPROPRIATIONS.

22 Section 506 of the Juvenile Justice and Delinquency

23 Prevention Act of 1974 (42 U.S.C. 5785) is amended by

24 striking ‘‘appropriated’’ and all that follows and inserting

25 the following: ‘‘appropriated $250,000,000 for fiscal year

26 2002.’’.
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1 Subtitle B—Mental Health Juvenile

2 Justice

3 SEC. 10101. SHORT TITLE.

4 This subtitle may be cited as the ‘‘Mental Health Ju5 venile Justice Act’’.

6 SEC. 10102. TRAINING OF JUSTICE SYSTEM PERSONNEL.

7 Title II of the Juvenile Justice and Delinquency Pre8 vention Act of 1974 (42 U.S.C. 5611 et seq.) is amended

9 by adding at the end the following:

10 ‘‘PART K—ACCESS TO MENTAL HEALTH AND

11 SUBSTANCE ABUSE TREATMENT

12 ‘‘SEC. 299AA. GRANTS FOR TRAINING OF JUSTICE SYSTEM

13 PERSONNEL.

14 ‘‘(a) IN GENERAL.—The Administrator shall make

15 grants to State and local juvenile justice agencies in col16 laboration with State and local mental health agencies, for

17 purposes of training the officers and employees of the

18 State juvenile justice system (including employees of facili19 ties that are contracted for operation by State and local

20 juvenile authorities) regarding appropriate access to men21 tal health and substance abuse treatment programs and

22 services in the State for juveniles who come into contact

23 with the State juvenile justice system who have mental

24 health or substance abuse problems.
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1 ‘‘(b) USE OF FUNDS.—A State or local juvenile jus2 tice agency that receives a grant under this section may

3 use the grant for purposes of—

4 ‘‘(1) providing cross-training, jointly with the

5 public mental health system, for State juvenile court

6 judges, public defenders, and mental health and sub7 stance abuse agency representatives with respect to

8 the appropriate use of effective, community-based al9 ternatives to juvenile justice or mental health system

10 institutional placements; or

11 ‘‘(2) providing training for State juvenile proba12 tion officers and community mental health and sub13 stance abuse program representatives on appropriate

14 linkages between probation programs and mental

15 health community programs, specifically focusing on

16 the identification of mental disorders and substance

17 abuse addiction in juveniles on probation, effective

18 treatment interventions for those disorders, and

19 making appropriate contact with mental health and

20 substance abuse case managers and programs in the

21 community, in order to ensure that juveniles on pro22 bation receive appropriate access to mental health

23 and substance abuse treatment programs and serv24 ices.
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1 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated from the Violent Crime

3 Reduction Trust Fund, $50,000,000 for fiscal years 2002,

4 2003, 2004, 2005, and 2006 to carry out this section.’’.

5 SEC. 10103. BLOCK GRANT FUNDING FOR TREATMENT AND

6 DIVERSION PROGRAMS.

7 Part K of title II of the Juvenile Justice and Delin8 quency Prevention Act of 1974 (42 U.S.C. 5611 et seq.)

9 is amended by adding at the end the following:

10 ‘‘SEC. 299BB. GRANTS FOR STATE PARTNERSHIPS.

11 ‘‘(a) IN GENERAL.—The Attorney General and the

12 Secretary of Health and Human Services shall make

13 grants to partnerships between State and local/county ju14 venile justice agencies and State and local mental health

15 authorities (or appropriate children service agencies) in

16 accordance with this section.

17 ‘‘(b) USE OF FUNDS.—A partnership described in

18 subsection (a) that receives a grant under this section

19 shall use such amounts for the establishment and imple20 mentation of programs that address the service needs of

21 juveniles who come into contact with the justice system

22 (including facilities contracted for operation by State or

23 local juvenile authorities) who have mental health or sub24 stance abuse problems, by requiring the following:
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1 ‘‘(1) DIVERSION.—Appropriate diversion of

2 those juveniles from incarceration—

3 ‘‘(A) at imminent risk of being taken into

4 custody;

5 ‘‘(B) at the time they are initially taken

6 into custody;

7 ‘‘(C) after they are charged with an of8 fense or act of juvenile delinquency;

9 ‘‘(D) after they are adjudicated delinquent

10 but prior to case disposition; and

11 ‘‘(E) after they are released from a juve12 nile facility, for the purposes of attending after13 care programs.

14 ‘‘(2) TREATMENT.—

15 ‘‘(A) SCREENING AND ASSESSMENT OF JU16 VENILES.—

17 ‘‘(i) IN GENERAL.—Initial mental

18 health screening shall be completed for all

19 juveniles immediately upon entering the ju20 venile justice system or a juvenile facility.

21 Screening shall be conducted by qualified

22 health and mental health professionals or

23 by staff who have been trained by qualified

24 health, mental health, and substance abuse

25 professionals. In the case of a screening by
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1 staff, the screening results should be re2 viewed by qualified health, mental health

3 professionals not later than 24 hours after

4 the screening.

5 ‘‘(ii) ACUTE MENTAL ILLNESS.—Juve6 niles who suffer from acute mental dis7 orders, who are suicidal, or in need of de8 toxification shall be placed in or imme9 diately transferred to an appropriate med10 ical or mental health facility. They shall be

11 admitted to a secure correctional facility

12 only with written medical clearance.

13 ‘‘(iii) COMPREHENSIVE ASSESS14 MENT.—All juveniles entering the juvenile

15 justice system shall have a comprehensive

16 assessment conducted and an individual17 ized treatment plan written and imple18 mented within 2 weeks. This assessment

19 shall be conducted within 1 week for juve20 niles incarcerated in secure facilities. As21 sessments shall be completed by qualified

22 health, mental health, and substance abuse

23 professionals.

24 ‘‘(B) TREATMENT.—
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1 ‘‘(i) IN GENERAL.—If the need for

2 treatment is indicated by the assessment of

3 a juvenile, the juvenile shall be referred to

4 or treated by a qualified professional. A ju5 venile who is currently receiving treatment

6 for a mental or emotional disorder shall

7 have treatment continued.

8 ‘‘(ii) PERIOD.—Treatment shall con9 tinue until additional mental health assess10 ment determines that the juvenile is no

11 longer in need of treatment. Treatment

12 plans shall be reevaluated at least every 30

13 days.

14 ‘‘(iii) DISCHARGE PLAN.—An incar15 cerated juvenile shall have a discharge plan

16 prepared when the juvenile enters the cor17 rectional facility in order to integrate the

18 juvenile back into the family or the com19 munity. This plan shall be updated in con20 sultation with the juvenile’s family or

21 guardian before the juvenile leaves the fa22 cility. Discharge plans shall address the

23 provision of aftercare services.

24 ‘‘(iv) MEDICATION.—Any juvenile re25 ceiving psychotropic medications shall be
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1 under the care of a licensed psychiatrist.

2 Psychotropic medications shall be mon3 itored regularly by trained staff for their

4 efficacy and side effects.

5 ‘‘(v) SPECIALIZED TREATMENT.—Spe6 cialized treatment and services shall be

7 continually available to a juvenile who—

8 ‘‘(I) has a history of mental

9 health problems or treatment;

10 ‘‘(II) has a documented history

11 of sexual abuse or offenses, as victim

12 or as perpetrator;

13 ‘‘(III) has substance abuse prob14 lems, health problems, learning dis15 abilities, or histories of family abuse

16 or violence; or

17 ‘‘(IV) has developmental disabil18 ities.

19 ‘‘(C) MEDICAL AND MENTAL HEALTH

20 EMERGENCIES.—All correctional facilities shall

21 have written policies and procedures on suicide

22 prevention. All staff working in correctional fa23 cilities shall be trained and certified annually in

24 suicide prevention. Facilities shall have written

25 arrangements with a hospital or other facility
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1 for providing emergency medical and mental

2 health care. Physical and mental health services

3 shall be available to an incarcerated juvenile 24

4 hours per day, 7 days per week.

5 ‘‘(D) CLASSIFICATION OF JUVENILES.—

6 ‘‘(i) IN GENERAL.—Juvenile facilities

7 shall classify and house juveniles in living

8 units according to a plan that includes age,

9 gender, offense, special medical or mental

10 health condition, size, and vulnerability to

11 victimization. Younger, smaller, weaker,

12 and more vulnerable juveniles shall not be

13 placed in housing units with older, more

14 aggressive juveniles.

15 ‘‘(ii) BOOT CAMPS.—juveniles who are

16 under 13 years old or who have serious

17 medical conditions or mental illness shall

18 not be placed in paramilitary boot camps.

19 ‘‘(E) CONFIDENTIALITY OF RECORDS.—

20 Mental health and substance abuse treatment

21 records of juveniles shall be treated as confiden22 tial and shall be excluded from the records that

23 States require to be routinely released to other

24 correctional authorities and school officials.
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1 ‘‘(F) MANDATORY REPORTING.—States

2 shall keep records of the incidence and types of

3 mental health and substance abuse disorders in

4 their juvenile justice populations, the range and

5 scope of services provided, and barriers to serv6 ice. The State shall submit an analysis of this

7 information yearly to the Department of Jus8 tice.

9 ‘‘(G) STAFF RATIOS FOR CORRECTIONAL

10 FACILITIES.—Each secure correctional facility

11 shall have a minimum ratio of no fewer than 1

12 mental health counselor to every 50 juveniles.

13 Mental health counselors shall be professionally

14 trained and certified or licensed. Each secure

15 correctional facility shall have a minimum ratio

16 of 1 clinical psychologist for every 100 juve17 niles. Each secure correctional facility shall

18 have a minimum ratio of 1 licensed psychiatrist

19 for every 100 juveniles receiving psychiatric

20 care.

21 ‘‘(H) USE OF FORCE.—

22 ‘‘(i) WRITTEN GUIDELINES.—All juve23 nile facilities shall have a written behav24 ioral management system based on incen25 tives and rewards to reduce misconduct
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1 and to decrease the use of restraints and

2 seclusion by staff.

3 ‘‘(ii) LIMITATIONS ON RESTRAINT.—

4 Control techniques such as restraint, seclu5 sion, chemical sprays, and room confine6 ment shall be used only in response to ex7 treme threats to life or safety. Use of these

8 techniques shall be approved by the facility

9 superintendent or chief medical officer and

10 documented in the juvenile’s file along with

11 the justification for use and the failure of

12 less restrictive alternatives.

13 ‘‘(iii) LIMITATION ON ISOLATION.—

14 Isolation and seclusion shall be used only

15 for immediate and short-term security or

16 safety reasons. No juvenile shall be placed

17 in isolation without approval of the facility

18 superintendent or chief medical officer or

19 their official staff designee. All cases shall

20 be documented in the juvenile’s file along

21 with the justification. A juvenile shall be in

22 isolation only the amount of time necessary

23 to achieve security and safety of the juve24 nile and staff. Staff shall monitor each ju25 venile in isolation once every 15 minutes
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1 and conduct a professional review of the

2 need for isolation at least every 4 hours.

3 Any juvenile held in seclusion for 24 hours

4 shall be examined by a physician or li5 censed psychologist.

6 ‘‘(I) IDEA AND REHABILITATION ACT.—

7 All juvenile facilities shall abide by all manda8 tory requirements and time lines set forth

9 under the Individuals with Disabilities Edu10 cation Act and section 504 of the Rehabilitation

11 Act of 1973.

12 ‘‘(J) ADVOCACY ASSISTANCE.—

13 ‘‘(i) IN GENERAL.—The Secretary of

14 Health and Human Services shall make

15 grants to the systems established under

16 part C of the Developmental Disabilities

17 Assistance and Bill of Rights Act (42

18 U.S.C. 6041 et seq.) to monitor the mental

19 health and special education services pro20 vided by grantees to juveniles under para21 graph (2) (A), (B), (C), (H), and (I) of

22 this section, and to advocate on behalf of

23 juveniles to assure that such services are

24 properly provided.
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1 ‘‘(ii) APPROPRIATION.—The Secretary

2 of Health and Human Services will reserve

3 no less than 3 percent of the funds appro4 priated under this section for the purposes

5 set forth in paragraph (2)(J)(i).

6 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—

7 ‘‘(1) IN GENERAL.—There are authorized to be

8 appropriated from the Violent Crime Reduction

9 Trust Fund, $500,000,000 for fiscal years 2002,

10 2003, 2004, 2005, and 2006 to carry out this sec11 tion.

12 ‘‘(2) ALLOCATION.—Of amounts appropriated

13 under paragraph (1)—

14 ‘‘(A) 35 percent shall be used for diversion

15 programs under subsection (b)(1); and

16 ‘‘(B) 65 percent shall be used for treat17 ment programs under subsection (b)(2).

18 ‘‘(3) INCENTIVES.—The Attorney General and

19 the Secretary of Health and Human Services shall

20 give preference under subsection (b)(2) to partner21 ships that integrate treatment programs to serve ju22 veniles with co-occurring mental health and sub23 stance abuse disorders.

24 ‘‘(4) WAIVERS.—The Attorney General and the

25 Secretary of Health and Human Services may grant
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1 a waiver of requirements under subsection (b)(2) for

2 good cause.

3 ‘‘SEC. 299CC. GRANTS FOR PARTNERSHIPS.

4 ‘‘(a) IN GENERAL.—Any partnership desiring to re5 ceive a grant under this part shall submit an application

6 at such time, in such manner, and containing such infor7 mation as the Attorney General and the Secretary of

8 Health and Human Services may prescribe.

9 ‘‘(b) CONTENTS.—In accordance with guidelines es10 tablished by the Attorney General and the Secretary of

11 Health and Human Services, each application submitted

12 under subsection (a) shall—

13 ‘‘(1) set forth a program or activity for carrying

14 out one or more of the purposes specified in section

15 299BB(b) and specifically identify each such pur16 pose such program or activity is designed to carry

17 out;

18 ‘‘(2) provide that such program or activity shall

19 be administered by or under the supervision of the

20 applicant;

21 ‘‘(3) provide for the proper and efficient admin22 istration of such program or activity;

23 ‘‘(4) provide for regular evaluation of such pro24 gram or activity;
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1 ‘‘(5) provide an assurance that the proposed

2 program or activity will supplement, not supplant,

3 similar programs and activities already available in

4 the community; and

5 ‘‘(6) provide for such fiscal control and fund ac6 counting procedures as may be necessary to ensure

7 prudent use, proper disbursement, and accurate ac8 counting of funds receiving under this part.’’.

9 SEC. 10104. INITIATIVE FOR COMPREHENSIVE, INTER10 SYSTEM PROGRAMS.

11 Subpart 3 of part B of title V of the Public Health

12 Service Act (42 U.S.C. 290bb–31 et seq.) is amended by

13 adding at the end the following:

14 ‘‘SEC. 520K. INITIATIVE FOR COMPREHENSIVE, INTER15 SYSTEM PROGRAMS.

16 ‘‘(a) IN GENERAL.—The Attorney General and the

17 Secretary, acting through the Director of the Center for

18 Mental Health Services, shall award competitive grants to

19 eligible entities for programs that address the service

20 needs of juveniles and juveniles with serious mental ill21 nesses by requiring the State or local juvenile justice sys22 tem, the mental health system, and the substance abuse

23 treatment system to work collaboratively to ensure—

24 ‘‘(1) the appropriate diversion of such juveniles

25 and juveniles from incarceration;
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1 ‘‘(2) the provision of appropriate mental health

2 and substance abuse services as an alternative to in3 carceration and for those juveniles on probation or

4 parole; and

5 ‘‘(3) the provision of followup services for juve6 niles who are discharged from the juvenile justice

7 system.

8 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant

9 under this section an entity shall—

10 ‘‘(1) be a State or local juvenile justice agency,

11 mental health agency, or substance abuse agency

12 (including community diversion programs);

13 ‘‘(2) prepare and submit to the Secretary an

14 application at such time, in such manner, and con15 taining such information as the Secretary may re16 quire, including—

17 ‘‘(A) an assurance that the applicant has

18 the consent of all entities described in para19 graph (1) in carrying out and coordinating ac20 tivities under the grant; and

21 ‘‘(B) with respect to services for juveniles,

22 an assurance that the applicant has collabo23 rated with the State or local educational agency

24 and the State or local welfare agency in car-
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1 rying out and coordinating activities under the

2 grant;

3 ‘‘(3) be given priority if it is a joint application

4 between juvenile justice and substance abuse or

5 mental health agencies; and

6 ‘‘(4) ensure that funds from non-Federal

7 sources are available to match amounts provided

8 under the grant in an amount that is not less

9 than—

10 ‘‘(A) with respect to the first 3 years

11 under the grant, 25 percent of the amount pro12 vided under the grant; and

13 ‘‘(B) with respect to the fourth and fifth

14 years under the grant, 50 percent of the

15 amount provided under the grant.

16 ‘‘(c) USE OF FUNDS.—

17 ‘‘(1) INITIAL YEAR.—An entity that receives a

18 grant under this section shall, in the first fiscal year

19 in which amounts are provided under the grant, use

20 such amounts to develop a collaborative plan—

21 ‘‘(A) for how the guarantee will institute a

22 system to provide intensive community

23 services—
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1 ‘‘(i) to prevent high-risk juveniles

2 from coming in contact with the justice

3 system; and

4 ‘‘(ii) to meet the mental health and

5 substance abuse treatment needs of juve6 niles on probation or recently discharged

7 from the justice system; and

8 ‘‘(B) providing for the exchange by agen9 cies of information to enhance the provision of

10 mental health or substance abuse services to ju11 veniles.

12 ‘‘(2) 2–5TH YEARS.—With respect to the second

13 through fifth fiscal years in which amounts are pro14 vided under the grant, the grantee shall use amounts

15 provided under the grant—

16 ‘‘(A) to furnish services, such as assertive

17 community treatment, wrap-around services for

18 juveniles, multisystemic therapy, outreach, inte19 grated mental health and substance abuse

20 treatment, case management, health care, edu21 cation and job training, assistance in securing

22 stable housing, finding a job or obtaining in23 come support, other benefits, access to appro24 priate school-based services, transitional and

25 independent living services, mentoring pro-
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1 grams, home-based services, and provision of

2 appropriate after school and summer pro3 graming;

4 ‘‘(B) to establish a network of boundary

5 spanners to conduct regular meetings with

6 judges, provide liaison with mental health and

7 substance abuse workers, share and distribute

8 information, and coordinate with mental health

9 and substance abuse treatment providers, and

10 probation or parole officers concerning provision

11 of appropriate mental health and drug and alco12 hol addiction services for individuals on proba13 tion or parole;

14 ‘‘(C) to provide cross-system training

15 among police, corrections, and mental health

16 and substance abuse providers with the purpose

17 of enhancing collaboration and the effectiveness

18 of all systems;

19 ‘‘(D) to provide coordinated and effective

20 aftercare programs for juveniles with emotional

21 or mental disorders who are discharged from

22 jail, prison, or juvenile facilities;

23 ‘‘(E) to purchase technical assistance to

24 achieve the grant project’s goals; and
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1 ‘‘(F) to furnish services, to train personnel

2 in collaborative approaches, and to enhance

3 intersystem collaboration.

4 ‘‘(3) DEFINITION.—In paragraph (2)(B), the

5 term ‘boundary spanners’ means professionals who

6 act as case managers for juveniles with mental dis7 orders and substance abuse addictions, within both

8 justice agency facilities and community mental

9 health programs and who have full authority from

10 both systems to act as problem-solvers and advocates

11 on behalf of individuals targeted for service under

12 this program.

13 ‘‘(d) AREA SERVED BY THE PROJECT.—An entity re14 ceiving a grant under this section shall conduct activities

15 under the grant to serve at least a single political jurisdic16 tion.

17 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There

18 shall be made available to carry out the section, not less

19 than 10 percent of the amount appropriated under section

20 1935(a) for each of the fiscal years 2002 through 2006.’’.

21 SEC. 10105. FEDERAL COORDINATING COUNCIL ON THE

22 CRIMINALIZATION OF JUVENILES WITH MEN23 TAL DISORDERS.

24 (a) ESTABLISHMENT.—There is established a Fed25 eral Coordinating Council on Criminalization of Juveniles
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1 With Mental Disorders as an interdepartmental council to

2 study and coordinate the criminal and juvenile justice and

3 mental health and substance abuse activities of the Fed4 eral Government and to report to Congress on proposed

5 new legislation to improve the treatment of mentally ill

6 juveniles who come in contact with the juvenile justice sys7 tem.

8 (b) MEMBERSHIP.—The Council shall include rep9 resentatives from—

10 (1) the appropriate Federal agencies, as deter11 mined by the President, including, at a minimum—

12 (A) the Office of the Secretary of Health

13 and Human Services;

14 (B) the Office for Juvenile Justice and De15 linquency Prevention;

16 (C) the National Institute of Mental

17 Health;

18 (D) the Social Security Administration;

19 (E) the Department of Education; and

20 (F) the Substance Abuse and Mental

21 Health Services Administration; and

22 (2) children’s mental health advocacy groups.

23 (c) DUTIES.—The Council shall—

24 (1) review Federal policies that hinder or facili25 tate coordination at the State and local level between
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1 the mental health and substance abuse systems on

2 the one hand and the juvenile justice and corrections

3 system on the other;

4 (2) study the possibilities for improving collabo5 ration at the Federal, State, and local level among

6 these systems; and

7 (3) recommend to Congress any appropriate

8 new initiatives which require legislative action.

9 (d) FINAL REPORT.—The Council shall submit—

10 (1) an interim report on current coordination

11 and collaboration, or lack thereof, 18 months after

12 the Council is established; and

13 (2) recommendations for new initiatives in im14 proving coordination and collaboration in a final re15 port to Congress 2 years after the Council is estab16 lished.

17 (e) EXPIRATION.—The Council shall expire 2 years

18 after the Council is established.

19 SEC. 10106. MENTAL HEALTH SCREENING AND TREATMENT

20 FOR PRISONERS.

21 (a) ADDITIONAL REQUIREMENTS FOR THE USE OF

22 FUNDS UNDER THE VIOLENT OFFENDER INCARCER23 ATION AND TRUTH-IN-SENTENCING GRANTS PROGRAM.—

24 Section 20105(b) of the Violent Crime Control and Law

25 Enforcement Act of 1994 is amended to read as follows:
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1 ‘‘(b) ADDITIONAL REQUIREMENTS.—

2 ‘‘(1) ELIGIBILITY FOR GRANT.—To be eligible

3 to receive a grant under section 20103 or 20104, a

4 State shall, not later than January 1, 2001, have a

5 program of mental health screening and treatment

6 for appropriate categories of juvenile and other of7 fenders during periods of incarceration and juvenile

8 and criminal justice supervision, that is consistent

9 with guidelines issued by the Attorney General.

10 ‘‘(2) USE OF FUNDS.—

11 ‘‘(A) IN GENERAL.—Notwithstanding any

12 other provision of this subtitle, amounts made

13 available to a State under section 20103 or

14 20104, may be applied to the costs of programs

15 described in paragraph (1), consistent with

16 guidelines issued by the Attorney General.

17 ‘‘(B) ADDITIONAL USE.—In addition to

18 being used as specified in subparagraph (A),

19 the funds referred to in that subparagraph may

20 be used by a State to pay the costs of providing

21 to the Attorney General a baseline study on the

22 mental health problems of juvenile offenders

23 and prisoners in the State, which study shall be

24 consistent with guidelines issued by the Attor25 ney General.’’.
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1 SEC. 10107. INAPPLICABILITY OF AMENDMENTS.

2 Section 3626 of title 18 is amended by adding at the

3 end the following:

4 ‘‘(h) INAPPLICABILITY OF AMENDMENTS.—A civil

5 action brought pursuant to section 1983 of title 42,

6 United States Code, that seeks to remedy conditions of

7 confinement for individuals who are under the age of 18

8 shall be governed by the terms of this section, as in effect

9 on the day before the date of enactment of the Prison Liti10 gation Reform Act of 1995 and the amendments made by

11 that Act (18 U.S.C. 3601 note).’’.

12 Subtitle C—Juvenile Justice and

13 Accountability

14 SEC. 10201. SHORT TITLE.

15 This subtitle may be cited as the ‘‘Juvenile Justice

16 and Accountability Act’’.

17 SEC. 10202. GRANT PROGRAM.

18 Title II of the Juvenile Justice and Delinquency Pre19 vention Act of 1974 (42 U.S.C. 5611 et seq.) is amended

20 by adding at the end the following:

21 ‘‘PART L—JUVENILE ACCOUNTABILITY BLOCK

22 GRANTS

23 ‘‘SEC. 299AAA. PROGRAM AUTHORIZED.

24 ‘‘(a) IN GENERAL.—The Administrator is authorized

25 to provide grants to States, for use by States and units
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1 of local government, and in certain cases directly to spe2 cially qualified units.

3 ‘‘(b) AUTHORIZED ACTIVITIES.—Amounts paid to a

4 State or a unit of local government under this part shall

5 be used by the State or unit of local government for the

6 purpose of strengthening the juvenile justice system,

7 which includes—

8 ‘‘(1) developing, implementing, and admin9 istering graduated sanctions for juvenile offenders;

10 ‘‘(2) building, expanding, renovating, or oper11 ating temporary or permanent juvenile correction,

12 detention, or community corrections facilities;

13 ‘‘(3) hiring juvenile court judges, probation offi14 cers, and court-appointed defenders and special ad15 vocates, and funding pretrial services for juvenile of16 fenders, to promote the effective and expeditious ad17 ministration of the juvenile justice system;

18 ‘‘(4) hiring additional prosecutors, so that more

19 cases involving violent juvenile offenders can be

20 prosecuted and case backlogs reduced;

21 ‘‘(5) providing funding to enable prosecutors to

22 address drug, gang, and youth violence problems

23 more effectively and for technology, equipment, and

24 training to assist prosecutors in identifying and ex25 pediting the prosecution of violent juvenile offenders;
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1 ‘‘(6) establishing and maintaining training pro2 grams for law enforcement and other court per3 sonnel with respect to preventing and controlling ju4 venile crime;

5 ‘‘(7) establishing juvenile gun courts for the

6 prosecution and adjudication of juvenile firearms of7 fenders;

8 ‘‘(8) establishing drug court programs for juve9 nile offenders that provide continuing judicial super10 vision over juvenile offenders with substance abuse

11 problems and the integrated administration of other

12 sanctions and services for such offenders;

13 ‘‘(9) establishing and maintaining a system of

14 juvenile records designed to promote public safety;

15 ‘‘(10) establishing and maintaining interagency

16 information-sharing programs that enable the juve17 nile and criminal justice system, schools, and social

18 services agencies to make more informed decisions

19 regarding the early identification, control, super20 vision, and treatment of juveniles who repeatedly

21 commit serious delinquent or criminal acts;

22 ‘‘(11) establishing and maintaining account23 ability-based programs designed to reduce recidivism

24 among juveniles who are referred by law enforce25 ment personnel or agencies, including development
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1 of a plan for administering after care services and

2 treatment for juvenile offenders when they are re3 leased.

4 ‘‘(12) establishing and maintaining programs to

5 conduct risk and need assessments of juvenile of6 fenders that facilitate the effective early intervention

7 and the provision of comprehensive services, includ8 ing mental health screening and treatment and sub9 stance abuse testing and treatment to such offend10 ers;

11 ‘‘(13) establishing and maintaining account12 ability-based programs that are designed to enhance

13 school safety;

14 ‘‘(14) enacting Child Access Prevention (CAP)

15 laws;

16 ‘‘(15) establishing and maintaining programs to

17 enable juvenile courts and juvenile probation officers

18 to be more effective and efficient in holding juvenile

19 offenders accountable and reducing recidivism;

20 ‘‘(16) building and maintaining smaller juvenile

21 facilities, including separate units for juveniles tried

22 as adults;

23 ‘‘(17) requiring all correctional staff who are

24 responsible for supervising juvenile offenders be pro-
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1 vided with orientation and on-going training regard2 ing the unique needs of juveniles; and

3 ‘‘(18) developing and utilizing accountable com4 munity-based alternatives to incarceration.

5 ‘‘SEC. 299BBB. GRANT ELIGIBILITY.

6 ‘‘(a) STATE ELIGIBILITY.—To be eligible to receive

7 a grant under this section, a State shall submit to the

8 Administrator an application at such time, in such form,

9 and containing such assurances and information as the

10 Administrator may require by rule, including assurances

11 that the State and any unit of local government to which

12 the State provides funding under section 1803(b), has in

13 effect (or shall have in effect, not later than 1 year after

14 the date that the State submits such application) laws,

15 or has implemented (or shall implement, not later than

16 1 year after the date that the State submits such applica17 tion) policies and programs that—

18 ‘‘(1) provide for a system of graduated sanc19 tions described in subsection (c); and

20 ‘‘(2) prohibit the application of the death pen21 alty for juveniles.

22 ‘‘(b) LOCAL ELIGIBILITY.—

23 ‘‘(1) SUBGRANT ELIGIBILITY.—To be eligible to

24 receive a subgrant, a unit of local government, other

25 than a specially qualified unit, shall provide such as-
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1 surances to the State as the State shall require,

2 that, to the maximum extent applicable, the unit of

3 local government has in effect (or shall have in ef4 fect, not later than 1 year after the date that the

5 unit submits such application) laws, or has imple6 mented (or shall implement, not later than 1 year

7 after the date that the unit submits such applica8 tion) policies and programs, that provide for a sys9 tem of graduated sanctions described in subsection

10 (c).

11 ‘‘(2) SPECIAL RULE.—The requirements of

12 paragraph (1) shall apply to a specially qualified

13 unit that receives funds from the Administrator

14 under section 1803(e), except that information that

15 is otherwise required to be submitted to the State

16 shall be submitted to the Administrator.

17 ‘‘(c) GRADUATED SANCTIONS.—A system of grad18 uated sanctions, which may be discretionary as provided

19 in subsection (d), shall ensure, at a minimum, that—

20 ‘‘(1) sanctions are imposed on juvenile offend21 ers for every offense;

22 ‘‘(2) sanctions escalate in intensity with each

23 subsequent, more serious delinquent or criminal of24 fense;
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1 ‘‘(3) there is sufficient flexibility to allow for in2 dividualized sanctions and services suited to the indi3 vidual juvenile offender; and

4 ‘‘(4) appropriate consideration is given to public

5 safety and victims of crime.

6 ‘‘(d) DISCRETIONARY USE OF SANCTIONS.—

7 ‘‘(1) VOLUNTARY PARTICIPATION.—A State or

8 unit of local government may be eligible to receive

9 a grant under this part if—

10 ‘‘(A) its system of graduated sanctions is

11 discretionary; and

12 ‘‘(B) it demonstrates that it has promoted

13 the use of a system of graduated sanctions by

14 taking steps to encourage implementation of

15 such a system by juvenile courts.

16 ‘‘(2) REPORTING REQUIREMENT IF GRADUATED

17 SANCTIONS NOT USED.—

18 ‘‘(A) JUVENILE COURTS.—A State or unit

19 of local government in which the imposition of

20 graduated sanctions is discretionary shall re21 quire each juvenile court within its

22 jurisdiction—

23 ‘‘(i) which has not implemented a sys24 tem of graduated sanctions, to submit an

25 annual report that explains why such court
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1 did not implement graduated sanctions;

2 and

3 ‘‘(ii) which has implemented a system

4 of graduated sanctions but has not im5 posed graduated sanctions in 1 or more

6 specific cases, to submit an annual report

7 that explains why such court did not im8 pose graduated sanctions.

9 ‘‘(B) UNITS OF LOCAL GOVERNMENT.—

10 Each unit of local government, other than a

11 specially qualified unit, that has 1 or more juve12 nile courts that use a discretionary system of

13 graduated sanctions shall collect the informa14 tion reported under subparagraph (A) for sub15 mission to the State each year.

16 ‘‘(C) STATES.—Each State and specially

17 qualified unit that has 1 or more juvenile courts

18 that use a discretionary system of graduated

19 sanctions shall collect the information reported

20 under subparagraph (A) for submission to the

21 Administrator each year. A State shall also col22 lect and submit to the Administrator the infor23 mation collected under subparagraph (B).

24 ‘‘(e) DEFINITIONS.—For purposes of this section:
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1 ‘‘(1) The term ‘discretionary’ means that a sys2 tem of graduated sanctions is not required to be im3 posed by each and every juvenile court in a State or

4 unit of local government.

5 ‘‘(2) The term ‘sanctions’ means tangible, pro6 portional consequences that hold the juvenile of7 fender accountable for the offense committed. A

8 sanction may include counseling, restitution, commu9 nity service, a fine, supervised probation, or confine10 ment.

11 ‘‘SEC. 299CCC. ALLOCATION AND DISTRIBUTION OF FUNDS.

12 ‘‘(a) STATE ALLOCATION.—

13 ‘‘(1) IN GENERAL.—In accordance with regula14 tions promulgated pursuant to this part and except

15 as provided in paragraph (3), the Administrator

16 shall allocate—

17 ‘‘(A) 0.5 percent for each State; and

18 ‘‘(B) of the total funds remaining after the

19 allocation under subparagraph (A), to each

20 State, an amount which bears the same ratio to

21 the amount of remaining funds described in this

22 subparagraph as the population of people under

23 the age of 18 living in such State for the most

24 recent calendar year in which such data is

25 available bears to the population of people
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1 under the age of 18 of all the States for such

2 fiscal year.

3 ‘‘(2) PROHIBITION.—No funds allocated to a

4 State under this subsection or received by a State

5 for distribution under subsection (b) may be distrib6 uted by the Administrator or by the State involved

7 for any program other than a program contained in

8 an approved application.

9 ‘‘(3) INCREASE FOR STATE RESERVE.—

10 ‘‘(A) IN GENERAL.—Subject to subpara11 graph (B), if a State demonstrates and certifies

12 to the Administrator that the State’s law en13 forcement expenditures in the fiscal year pre14 ceding the date in which an application is sub15 mitted under this part is more than 25 percent

16 of the aggregate amount of law enforcement ex17 penditures by the State and its eligible units of

18 local government, the percentage referred to in

19 paragraph (1)(A) shall equal the percentage de20 termined by dividing the State’s law enforce21 ment expenditures by such aggregate.

22 ‘‘(B) LAW ENFORCEMENT EXPENDITURES

23 OVER 50 PERCENT.—If the law enforcement ex24 penditures of a State exceed 50 percent of the

25 aggregate amount described in subparagraph
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1 (A), the Administrator shall consult with as

2 many units of local government in such State

3 as practicable regarding the State’s proposed

4 uses of funds.

5 ‘‘(b) LOCAL DISTRIBUTION.—

6 ‘‘(1) IN GENERAL.—Except as provided in sub7 section (a)(3), each State which receives funds under

8 subsection (a)(1) in a fiscal year shall distribute not

9 less than 75 percent of such amounts received

10 among units of local government, for the purposes

11 specified in section 1801. In making such distribu12 tion the State shall allocate to such units of local

13 government an amount which bears the same ratio

14 to the aggregate amount of such funds as—

15 ‘‘(A) the sum of—

16 ‘‘(i) the product of—

17 ‘‘(I) three-quarters; multiplied by

18 ‘‘(II) the average law enforce19 ment expenditure for such unit of

20 local government for the 3 most re21 cent calendar years for which such

22 data is available; plus

23 ‘‘(ii) the product of—

24 ‘‘(I) one-quarter; multiplied by
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1 ‘‘(II) the average annual number

2 of part 1 violent crimes in such unit

3 of local government for the 3 most re4 cent calendar years for which such

5 data is available, bears to—

6 ‘‘(B) the sum of the products determined

7 under subparagraph (A) for all such units of

8 local government in the State.

9 ‘‘(2) EXPENDITURES.—The allocation any unit

10 of local government shall receive under paragraph

11 (1) for a payment period shall not exceed 100 per12 cent of law enforcement expenditures of the unit for

13 such payment period.

14 ‘‘(3) REALLOCATION.—The amount of any unit

15 of local government’s allocation that is not available

16 to such unit by operation of paragraph (2) shall be

17 available to other units of local government that are

18 not affected by such operation in accordance with

19 this subsection.

20 ‘‘(c) UNAVAILABILITY OF DATA FOR UNITS OF

21 LOCAL GOVERNMENT.—If the State has reason to believe

22 that the reported rate of part 1 violent crimes or law en23 forcement expenditures for a unit of local government is

24 insufficient or inaccurate, the State shall—
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1 ‘‘(1) investigate the methodology used by the

2 unit to determine the accuracy of the submitted

3 data; and

4 ‘‘(2) if necessary, use the best available com5 parable data regarding the number of violent crimes

6 or law enforcement expenditures for the relevant

7 years for the unit of local government.

8 ‘‘(d) LOCAL GOVERNMENT WITH ALLOCATIONS LESS

9 THAN $5,000.—If under this section a unit of local gov10 ernment is allocated less than $5,000 for a payment pe11 riod, the amount allotted shall be expended by the State

12 on services to units of local government whose allotment

13 is less than such amount in a manner consistent with this

14 part.

15 ‘‘(e) DIRECT GRANTS TO SPECIALLY QUALIFIED

16 UNITS.—

17 ‘‘(1) IN GENERAL.—If a State does not qualify

18 or apply for funds reserved for allocation under sub19 section (a) by the application deadline established by

20 the Administrator, the Administrator shall reserve

21 not more than 75 percent of the allocation that the

22 State would have received under subsection (a) for

23 such fiscal year to provide grants to specially quali24 fied units which meet the requirements for funding

25 under section 1802.
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1 ‘‘(2) AWARD BASIS.—In addition to the quali2 fication requirements for direct grants for specially

3 qualified units the Administrator may use the aver4 age amount allocated by the States to units of local

5 government as a basis for awarding grants under

6 this section.

7 ‘‘SEC. 299DDD. GUIDELINES.

8 ‘‘(a) IN GENERAL.—The Attorney General shall issue

9 guidelines establishing procedures under which a State or

10 unit of local government that receives funds under section

11 1803 is required to provide notice to the Administrator

12 regarding the proposed use of funds made available under

13 this part.

14 ‘‘(b) ADVISORY BOARD.—The guidelines referred to

15 in subsection (a) shall include a requirement that such eli16 gible State or unit of local government establish and con17 vene an advisory board to review the proposed uses of such

18 funds. The board shall include representation from, if

19 appropriate—

20 ‘‘(1) the State or local police department;

21 ‘‘(2) the local sheriff’s department;

22 ‘‘(3) the State or local prosecutor’s office;

23 ‘‘(4) the State or local juvenile court;

24 ‘‘(5) the State or local probation officer;

25 ‘‘(6) the State or local educational agency;
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1 ‘‘(7) a State or local social service agency; and

2 ‘‘(8) a nonprofit, religious, or community group.

3 ‘‘SEC. 299EEE. PAYMENT REQUIREMENTS.

4 ‘‘(a) TIMING OF PAYMENTS.—The Administrator

5 shall pay to each State or unit of local government that

6 receives funds under section 1803 that has submitted an

7 application under this part not later than—

8 ‘‘(1) 90 days after the date that the amount is

9 available, or

10 ‘‘(2) the first day of the payment period if the

11 State has provided the Administrator with the assur12 ances required by subsection (c),

13 whichever is later.

14 ‘‘(b) REPAYMENT OF UNEXPENDED AMOUNTS.—

15 ‘‘(1) REPAYMENT REQUIRED.—From amounts

16 awarded under this part, a State or specially quali17 fied unit shall repay to the Administrator, or a unit

18 of local government shall repay to the State by not

19 later than 39 months after receipt of funds from the

20 Administrator, any amount that is not expended by

21 the State within 3 years after receipt of such funds

22 from the Administrator.

23 ‘‘(2) PENALTY FOR FAILURE TO REPAY.—If the

24 amount required to be repaid is not repaid, the Ad-
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1 ministrator shall reduce payment in future payment

2 periods accordingly.

3 ‘‘(3) DEPOSIT OF AMOUNTS REPAID.—Amounts

4 received by the Administrator as repayments under

5 this subsection shall be deposited in a designated

6 fund for future payments to States and specially

7 qualified units.

8 ‘‘(c) ADMINISTRATIVE COSTS.—A State or unit of

9 local government that receives funds under this part may

10 use not more than 5 percent of such funds to pay for ad11 ministrative costs.

12 ‘‘(d) NONSUPPLANTING REQUIREMENT.—Funds

13 made available under this part to States and units of local

14 government shall not be used to supplant State or local

15 funds as the case may be, but shall be used to increase

16 the amount of funds that would, in the absence of funds

17 made available under this part, be made available from

18 State or local sources, as the case may be.

19 ‘‘(e) MATCHING FUNDS.—The Federal share of a

20 grant received under this part may not exceed 90 percent

21 of the costs of a program or proposal funded under this

22 part.

23 ‘‘SEC. 299FFF. UTILIZATION OF PRIVATE SECTOR.

24 ‘‘Funds or a portion of funds allocated under this

25 part may be utilized to contract with private, nonprofit
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1 entities, or community-based organizations to carry out

2 the purposes specified under section 1801(a)(2).

3 ‘‘SEC. 299GGG. ADMINISTRATIVE PROVISIONS.

4 ‘‘(a) IN GENERAL.—A State or specially qualified

5 unit that receives funds under this part shall—

6 ‘‘(1) establish a trust fund in which the govern7 ment will deposit all payments received under this

8 part;

9 ‘‘(2) use amounts in the trust fund (including

10 interest) during a period not to exceed 3 years from

11 the date the grant award is made to the State or

12 specially qualified unit;

13 ‘‘(3) designate an official of the State or spe14 cially qualified unit to submit reports as the Attor15 ney General reasonably requires, in addition to the

16 annual reports required under this part; and

17 ‘‘(4) spend the funds only for the purposes

18 under section 1801(b).

19 ‘‘(b) TITLE I PROVISIONS.—Except as otherwise pro20 vided, the administrative provisions of part H shall apply

21 to this part and for purposes of this section any reference

22 in such provisions to title I shall be deemed to include

23 a reference to this part.

24 ‘‘SEC. 299HHH. DEFINITIONS.

25 ‘‘For purposes of this part:
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1 ‘‘(1) The term ‘unit of local government’

2 means—

3 ‘‘(A) a county, township, city, or political

4 subdivision of a county, township, or city, that

5 is a unit of local government as determined by

6 the Secretary of Commerce for general statis7 tical purposes; and

8 ‘‘(B) the District of Columbia and the rec9 ognized governing body of an Indian tribe or

10 Alaskan Native village that carries out substan11 tial governmental duties and powers.

12 ‘‘(2) The term ‘specially qualified unit’ means a

13 unit of local government which may receive funds

14 under this part only in accordance with section

15 1803(e).

16 ‘‘(3) The term ‘State’ means any State of the

17 United States, the District of Columbia, the Com18 monwealth of Puerto Rico, the Virgin Islands, Amer19 ican Samoa, Guam, and the Northern Mariana Is20 lands, except that American Samoa, Guam, and the

21 Northern Mariana Islands shall be considered as 1

22 State and that, for purposes of section 1803(a), 33

23 percent of the amounts allocated shall be allocated

24 to American Samoa, 50 percent to Guam, and 17

25 percent to the Northern Mariana Islands.
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1 ‘‘(4) The term ‘juvenile’ means an individual

2 who is 17 years of age or younger.

3 ‘‘(5) The term ‘law enforcement expenditures’

4 means the expenditures associated with prosecu5 torial, legal, and judicial services, and corrections as

6 reported to the Bureau of the Census for the fiscal

7 year preceding the fiscal year for which a determina8 tion is made under this part.

9 ‘‘(6) The term ‘part 1 violent crimes’ means

10 murder and nonnegligent manslaughter, forcible

11 rape, robbery, and aggravated assault as reported to

12 the Federal Bureau of Investigation for purposes of

13 the Uniform Crime Reports.

14 ‘‘SEC. 299III. AUTHORIZATION OF APPROPRIATIONS.

15 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There

16 are authorized to be appropriated to carry out this part—

17 ‘‘(1) $500,000,000 for fiscal year 2002;

18 ‘‘(2) $500,000,000 for fiscal year 2003; and

19 ‘‘(3) $500,000,000 for fiscal year 2004.

20 ‘‘(b) OVERSIGHT ACCOUNTABILITY AND ADMINIS21 TRATION.—Not more than 3 percent of the amount au22 thorized to be appropriated under subsection (a), with

23 such amounts to remain available until expended, for each

24 of the fiscal years 2002 through 2004 shall be available

25 to the Administrator for evaluation and research regard-
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1 ing the overall effectiveness and efficiency of the provi2 sions of this part, assuring compliance with the provisions

3 of this part, and for administrative costs to carry out the

4 purposes of this part. The Administrator shall establish

5 and execute an oversight plan for monitoring the activities

6 of grant recipients.

7 ‘‘(c) FUNDING SOURCE.—Appropriations for activi8 ties authorized in this part may be made from the Violent

9 Crime Reduction Trust Fund.’’.

10 SEC. 10203. INCREASE IN FUNDING FOR TITLE III OF THE

11 JJDPA.

12 There are authorized to be appropriated

13 $120,000,000 for fiscal year 2002 to carry out the Run14 away and Homeless Youth Act (42 U.S.C. 5701 et seq.)

15 of which $100,000,000 shall be for the Basic Centers and

16 Transitional Living Program and $20,000,000 shall be for

17 the Sexual Abuse Prevention Program.

18 SEC. 10204. FUNDING FOR THE SERVICES FOR YOUTHFUL

19 OFFENDERS.

20 There is authorized to be appropriated $40,000,000

21 for fiscal year 2002 to carry out section 520D of title V

22 of the Public Health Service Act (42 U.S.C. 290bb–35).
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1 SEC. 10205. AUTHORIZATION FOR THE JUVENILE JUSTICE

2 AND DELINQUENCY PREVENTION ACT OF

3 1974.

4 Title I of the Juvenile Justice and Delinquency Pre5 vention Act of 1974 (42 U.S.C. 5601 et seq.) is amended

6 by adding at the end the following:

7 ‘‘SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

8 ‘‘There are authorized to be appropriated to carry out

9 this Act such sums as necessary for each of fiscal years

10 2002 through 2006.’’.

11 TITLE XI—SAFE START—GUN

12 SAFETY

13 Subtitle A—Closing the Gun Show

14 Loophole

15 SEC. 11001. EXTENSION OF BRADY BACKGROUND CHECKS

16 TO GUN SHOWS.

17 (a) FINDINGS.—Congress finds that—

18 (1) more than 4,400 traditional gun shows are

19 held annually across the United States, attracting

20 thousands of attendees per show and hundreds of

21 Federal firearms licensees and nonlicensed firearms

22 sellers;

23 (2) traditional gun shows, as well as flea mar24 kets and other organized events, at which a large

25 number of firearms are offered for sale by Federal

26 firearms licensees and nonlicensed firearms sellers,
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1 form a significant part of the national firearms mar2 ket;

3 (3) firearms and ammunition that are exhibited

4 or offered for sale or exchange at gun shows, flea

5 markets, and other organized events move easily in

6 and substantially affect interstate commerce;

7 (4) even before a firearm is exhibited or offered

8 for sale or exchange at a gun show, flea market, or

9 other organized event, the gun, its component parts,

10 ammunition, and the raw materials from which it is

11 manufactured have moved in interstate commerce;

12 (5) gun shows, flea markets, and other orga13 nized events at which firearms are exhibited or of14 fered for sale or exchange, provide a convenient and

15 centralized commercial location at which firearms

16 may be bought and sold anonymously, often without

17 background checks and without records that enable

18 gun tracing;

19 (6) at gun shows, flea markets, and other orga20 nized events at which guns are exhibited or offered

21 for sale or exchange, criminals and other prohibited

22 persons obtain guns without background checks and

23 frequently use guns that cannot be traced to later

24 commit crimes;
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1 (7) many persons who buy and sell firearms at

2 gun shows, flea markets, and other organized events

3 cross State lines to attend these events and engage

4 in the interstate transportation of firearms obtained

5 at these events;

6 (8) gun violence is a pervasive, national prob7 lem that is exacerbated by the availability of guns at

8 gun shows, flea markets, and other organized events;

9 (9) firearms associated with gun shows have

10 been transferred illegally to residents of other States

11 by Federal firearms licensees and nonlicensed fire12 arms sellers, and have been involved in subsequent

13 crimes including drug offenses, crimes of violence,

14 property crimes, and illegal possession of firearms by

15 felons and other prohibited persons; and

16 (10) Congress has the power, under the inter17 state commerce clause and other provisions of the

18 Constitution of the United States, to ensure that

19 criminals and other prohibited persons do not obtain

20 firearms at gun shows, flea markets, and other orga21 nized events.

22 (b) DEFINITIONS.—Section 921(a) of title 18, United

23 States Code, is amended by adding at the end the fol24 lowing:
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1 ‘‘(35) GUN SHOW.—The term ‘gun show’ means any

2 event at which 50 or more firearms are offered or exhib3 ited for sale, transfer, or exchange, if 1 or more of the

4 firearms has been shipped or transported in, or otherwise

5 affects, interstate or foreign commerce.

6 ‘‘(36) GUN SHOW PROMOTER.—The term ‘gun show

7 promoter’ means any person who organizes, plans, pro8 motes, or operates a gun show.

9 ‘‘(37) GUN SHOW VENDOR.—The term ‘gun show

10 vendor’ means any person who exhibits, sells, offers for

11 sale, transfers, or exchanges 1 or more firearms at a gun

12 show, regardless of whether or not the person arranges

13 with the gun show promoter for a fixed location from

14 which to exhibit, sell, offer for sale, transfer, or exchange

15 1 or more firearms.’’.

16 (c) REGULATION OF FIREARMS TRANSFERS AT GUN

17 SHOWS.—

18 (1) IN GENERAL.—Chapter 44 of title 18,

19 United States Code, is amended by adding at the

20 end the following:

21 ‘‘§ 931. Regulation of firearms transfers at gun shows

22 ‘‘(a) REGISTRATION OF GUN SHOW PROMOTERS.—

23 It shall be unlawful for any person to organize, plan, pro24 mote, or operate a gun show unless that person—
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1 ‘‘(1) registers with the Secretary in accordance

2 with regulations promulgated by the Secretary; and

3 ‘‘(2) pays a registration fee, in an amount de4 termined by the Secretary.

5 ‘‘(b) RESPONSIBILITIES OF GUN SHOW PRO6 MOTERS.—It shall be unlawful for any person to organize,

7 plan, promote, or operate a gun show unless that person—

8 ‘‘(1) before commencement of the gun show,

9 verifies the identity of each gun show vendor partici10 pating in the gun show by examining a valid identi11 fication document (as defined in section 1028(d)(2))

12 of the vendor containing a photograph of the vendor;

13 ‘‘(2) before commencement of the gun show, re14 quires each gun show vendor to sign—

15 ‘‘(A) a ledger with identifying information

16 concerning the vendor; and

17 ‘‘(B) a notice advising the vendor of the

18 obligations of the vendor under this chapter;

19 ‘‘(3) notifies each person who attends the gun

20 show of the requirements of this chapter, in accord21 ance with such regulations as the Secretary shall

22 prescribe; and

23 ‘‘(4) maintains a copy of the records described

24 in paragraphs (1) and (2) at the permanent place of

25 business of the gun show promoter for such period
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1 of time and in such form as the Secretary shall re2 quire by regulation.

3 ‘‘(c) RESPONSIBILITIES OF TRANSFERORS OTHER

4 THAN LICENSEES.—

5 ‘‘(1) IN GENERAL.—If any part of a firearm

6 transaction takes place at a gun show, it shall be

7 unlawful for any person who is not licensed under

8 this chapter to transfer a firearm to another person

9 who is not licensed under this chapter, unless the

10 firearm is transferred through a licensed importer,

11 licensed manufacturer, or licensed dealer in accord12 ance with subsection (e).

13 ‘‘(2) CRIMINAL BACKGROUND CHECKS.—A per14 son who is subject to the requirement of paragraph

15 (1)—

16 ‘‘(A) shall not transfer the firearm to the

17 transferee until the licensed importer, licensed

18 manufacturer, or licensed dealer through which

19 the transfer is made under subsection (e)

20 makes the notification described in subsection

21 (e)(3)(A); and

22 ‘‘(B) notwithstanding subparagraph (A),

23 shall not transfer the firearm to the transferee

24 if the licensed importer, licensed manufacturer,

25 or licensed dealer through which the transfer is
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1 made under subsection (e) makes the notifica2 tion described in subsection (e)(3)(B).

3 ‘‘(3) ABSENCE OF RECORDKEEPING REQUIRE4 MENTS.—Nothing in this section shall permit or au5 thorize the Secretary to impose recordkeeping re6 quirements on any nonlicensed vendor.

7 ‘‘(d) RESPONSIBILITIES OF TRANSFEREES OTHER

8 THAN LICENSEES.—

9 ‘‘(1) IN GENERAL.—If any part of a firearm

10 transaction takes place at a gun show, it shall be

11 unlawful for any person who is not licensed under

12 this chapter to receive a firearm from another per13 son who is not licensed under this chapter, unless

14 the firearm is transferred through a licensed im15 porter, licensed manufacturer, or licensed dealer in

16 accordance with subsection (e).

17 ‘‘(2) CRIMINAL BACKGROUND CHECKS.—A per18 son who is subject to the requirement of paragraph

19 (1)—

20 ‘‘(A) shall not receive the firearm from the

21 transferor until the licensed importer, licensed

22 manufacturer, or licensed dealer through which

23 the transfer is made under subsection (e)

24 makes the notification described in subsection

25 (e)(3)(A); and
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1 ‘‘(B) notwithstanding subparagraph (A),

2 shall not receive the firearm from the transferor

3 if the licensed importer, licensed manufacturer,

4 or licensed dealer through which the transfer is

5 made under subsection (e) makes the notifica6 tion described in subsection (e)(3)(B).

7 ‘‘(e) RESPONSIBILITIES OF LICENSEES.—A licensed

8 importer, licensed manufacturer, or licensed dealer who

9 agrees to assist a person who is not licensed under this

10 chapter in carrying out the responsibilities of that person

11 under subsection (c) or (d) with respect to the transfer

12 of a firearm shall—

13 ‘‘(1) enter such information about the firearm

14 as the Secretary may require by regulation into a

15 separate bound record;

16 ‘‘(2) record the transfer on a form specified by

17 the Secretary;

18 ‘‘(3) comply with section 922(t) as if transfer19 ring the firearm from the inventory of the licensed

20 importer, licensed manufacturer, or licensed dealer

21 to the designated transferee (although a licensed im22 porter, licensed manufacturer, or licensed dealer

23 complying with this subsection shall not be required

24 to comply again with the requirements of section

25 922(t) in delivering the firearm to the nonlicensed
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1 transferor), and notify the nonlicensed transferor

2 and the nonlicensed transferee—

3 ‘‘(A) of such compliance; and

4 ‘‘(B) if the transfer is subject to the re5 quirements of section 922(t)(1), of any receipt

6 by the licensed importer, licensed manufacturer,

7 or licensed dealer of a notification from the na8 tional instant criminal background check sys9 tem that the transfer would violate section 922

10 or would violate State law;

11 ‘‘(4) not later than 10 days after the date on

12 which the transfer occurs, submit to the Secretary a

13 report of the transfer, which report—

14 ‘‘(A) shall be on a form specified by the

15 Secretary by regulation; and

16 ‘‘(B) shall not include the name of or other

17 identifying information relating to any person

18 involved in the transfer who is not licensed

19 under this chapter;

20 ‘‘(5) if the licensed importer, licensed manufac21 turer, or licensed dealer assists a person other than

22 a licensee in transferring, at 1 time or during any

23 5 consecutive business days, 2 or more pistols or re24 volvers, or any combination of pistols and revolvers

25 totaling 2 or more, to the same nonlicensed person,
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1 in addition to the reports required under paragraph

2 (4), prepare a report of the multiple transfers, which

3 report shall be—

4 ‘‘(A) prepared on a form specified by the

5 Secretary; and

6 ‘‘(B) not later than the close of business

7 on the date on which the transfer occurs, for8 warded to—

9 ‘‘(i) the office specified on the form

10 described in subparagraph (A); and

11 ‘‘(ii) the appropriate State law en12 forcement agency of the jurisdiction in

13 which the transfer occurs; and

14 ‘‘(6) retain a record of the transfer as part of

15 the permanent business records of the licensed im16 porter, licensed manufacturer, or licensed dealer.

17 ‘‘(f) RECORDS OF LICENSEE TRANSFERS.—If any

18 part of a firearm transaction takes place at a gun show,

19 each licensed importer, licensed manufacturer, and li20 censed dealer who transfers 1 or more firearms to a person

21 who is not licensed under this chapter shall, not later than

22 10 days after the date on which the transfer occurs, sub23 mit to the Secretary a report of the transfer, which

24 report—
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1 ‘‘(1) shall be in a form specified by the Sec2 retary by regulation;

3 ‘‘(2) shall not include the name of or other

4 identifying information relating to the transferee;

5 and

6 ‘‘(3) shall not duplicate information provided in

7 any report required under subsection (e)(4).

8 ‘‘(g) FIREARM TRANSACTION DEFINED.—In this sec9 tion, the term ‘firearm transaction’—

10 ‘‘(1) includes the offer for sale, sale, transfer,

11 or exchange of a firearm; and

12 ‘‘(2) does not include the mere exhibition of a

13 firearm.’’.

14 (2) PENALTIES.—Section 924(a) of title 18,

15 United States Code, is amended by adding at the

16 end the following:

17 ‘‘(7)(A) Whoever knowingly violates section 931(a)

18 shall be fined under this title, imprisoned not more than

19 5 years, or both.

20 ‘‘(B) Whoever knowingly violates subsection (b) or (c)

21 of section 931, shall be—

22 ‘‘(i) fined under this title, imprisoned not more

23 than 2 years, or both; and
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1 ‘‘(ii) in the case of a second or subsequent con2 viction, fined under this title, imprisoned not more

3 than 5 years, or both.

4 ‘‘(C) Whoever willfully violates section 931(d), shall

5 be—

6 ‘‘(i) fined under this title, imprisoned not more

7 than 2 years, or both; and

8 ‘‘(ii) in the case of a second or subsequent con9 viction, fined under this title, imprisoned not more

10 than 5 years, or both.

11 ‘‘(D) Whoever knowingly violates subsection (e) or (f)

12 of section 931 shall be fined under this title, imprisoned

13 not more than 5 years, or both.

14 ‘‘(E) In addition to any other penalties imposed

15 under this paragraph, the Secretary may, with respect to

16 any person who knowingly violates any provision of section

17 931—

18 ‘‘(i) if the person is registered pursuant to sec19 tion 931(a), after notice and opportunity for a hear20 ing, suspend for not more than 6 months or revoke

21 the registration of that person under section 931(a);

22 and

23 ‘‘(ii) impose a civil fine in an amount equal to

24 not more than $10,000.’’.
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1 (3) TECHNICAL AND CONFORMING AMEND2 MENTS.—Chapter 44 of title 18, United States

3 Code, is amended—

4 (A) in the chapter analysis, by adding at

5 the end the following:

‘‘931. Regulation of firearms transfers at gun shows.’’;

6 and

7 (B) in the first sentence of section 923(j),

8 by striking ‘‘a gun show or event’’ and inserting

9 ‘‘an event’’.

10 (d) INSPECTION AUTHORITY.—Section 923(g)(1) is

11 amended by adding at the end the following:

12 ‘‘(E) Notwithstanding subparagraph (B), the Sec13 retary may enter during business hours the place of busi14 ness of any gun show promoter and any place where a

15 gun show is held for the purposes of examining the records

16 required by sections 923 and 931 and the inventory of

17 licensees conducting business at the gun show. Such entry

18 and examination shall be conducted for the purposes of

19 determining compliance with this chapter by gun show

20 promoters and licensees conducting business at the gun

21 show and shall not require a showing of reasonable cause

22 or a warrant.’’.

23 (e) INCREASED PENALTIES FOR SERIOUS RECORD24 KEEPING VIOLATIONS BY LICENSEES.—Section 924(a) of
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1 title 18, United States Code, is amended by striking para2 graph (3) and inserting the following:

3 ‘‘(3)(A) Except as provided in subparagraph (B), any

4 licensed dealer, licensed importer, licensed manufacturer,

5 or licensed collector who knowingly makes any false state6 ment or representation with respect to the information re7 quired by this chapter to be kept in the records of a person

8 licensed under this chapter, or violates section 922(m)

9 shall be fined under this title, imprisoned not more than

10 5 years, or both.

11 ‘‘(B) If the violation described in subparagraph (A)

12 is in relation to an offense—

13 ‘‘(i) under paragraph (1) or (3) of section

14 922(b), such person shall be fined under this title,

15 imprisoned not more than 5 years, or both; or

16 ‘‘(ii) under subsection (a)(6) or (d) of section

17 922, such person shall be fined under this title, im18 prisoned not more than 10 years, or both.’’.

19 (f) INCREASED PENALTIES FOR VIOLATIONS OF

20 CRIMINAL BACKGROUND CHECK REQUIREMENTS.—

21 (1) PENALTIES.—Section 924(a) of title 18,

22 United States Code (as amended by subsection (c)),

23 is amended—
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1 (A) in paragraph (5), by striking ‘‘sub2 section (s) or (t) of section 922’’ and inserting

3 ‘‘section 922(s)’’; and

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

5 ‘‘(8) Whoever knowingly violates section 922(t) shall

6 be fined under this title, imprisoned not more than 5

7 years, or both.’’.

8 (2) ELIMINATION OF CERTAIN ELEMENTS OF

9 OFFENSE.—Section 922(t)(5) of title 18, United

10 States Code, is amended by striking ‘‘and, at the

11 time’’ and all that follows through ‘‘State law’’.

12 (g) GUN OWNER PRIVACY AND PREVENTION OF

13 FRAUD AND ABUSE OF SYSTEM INFORMATION.—Section

14 922(t)(2)(C) of title 18, United States Code, is amended

15 by inserting before the period at the end ‘‘, as soon as

16 possible, consistent with the responsibility of the Attorney

17 General under section 103(h) of the Brady Handgun Vio18 lence Prevention Act (18 U.S.C. 922 note) to ensure the

19 privacy and security of the system and to prevent system

20 fraud and abuse, but in no event later than 90 days after

21 the date on which the licensee first contacts the system

22 with respect to the transfer’’.

23 (h) EFFECTIVE DATE.—This section and the amend24 ments made by this section shall take effect 180 days after

25 the date of enactment of this Act.
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1 Subtitle B—Child Safety Locks

2 SEC. 11101. REQUIREMENT OF CHILD HANDGUN SAFETY

3 LOCKS.

4 (a) DEFINITIONS.—Section 921(a) of title 18, United

5 States Code (as amended by section 11001), is amended

6 by adding at the end the following:

7 ‘‘(38) LOCKING DEVICE.—The term ‘locking de8 vice’ means a device or locking mechanism that is

9 approved by a licensed firearms manufacturer for

10 use on the handgun with which the device or locking

11 mechanism is sold, delivered, or transferred and

12 that—

13 ‘‘(A) if installed on a firearm and secured

14 by means of a key or a mechanically, electroni15 cally, or electromechanically operated combina16 tion lock, is designed to prevent the firearm

17 from being discharged without first deactivating

18 or removing the device by means of a key or

19 mechanically, electronically, or

20 electromechanically operated combination lock;

21 ‘‘(B) if incorporated into the design of a

22 firearm, is designed to prevent discharge of the

23 firearm by any person who does not have access

24 to the key or other device designed to unlock
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1 the mechanism and thereby allow discharge of

2 the firearm; or

3 ‘‘(C) is a safe, gun safe, gun case, lockbox,

4 or other device that is designed to store a fire5 arm and that is designed to be unlocked only by

6 means of a key, a combination, or other similar

7 means.’’.

8 (b) UNLAWFUL ACTS.—

9 (1) IN GENERAL.—Section 922 of title 18,

10 United States Code, is amended by inserting after

11 subsection (y) the following:

12 ‘‘(z) LOCKING DEVICES.—

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), it shall be unlawful for any licensed man15 ufacturer, licensed importer, or licensed dealer to

16 sell, deliver, or transfer any handgun to any person

17 other than a licensed manufacturer, licensed im18 porter, or licensed dealer, unless the transferee is

19 provided with a locking device for that handgun.

20 ‘‘(2) EXCEPTIONS.—Paragraph (1) does not

21 apply to the—

22 ‘‘(A) manufacture for, transfer to, or pos23 session by, the United States or a State or a

24 department or agency of the United States, or
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1 a State or a department, agency, or political

2 subdivision of a State, of a firearm;

3 ‘‘(B) transfer to, or possession by, a law

4 enforcement officer employed by an entity re5 ferred to in clause (i) of a firearm for law en6 forcement purposes (whether on or off duty); or

7 ‘‘(C) transfer to, or possession by, a rail

8 police officer employed by a rail carrier and cer9 tified or commissioned as a police officer under

10 the laws of a State of a firearm for purposes of

11 law enforcement (whether on or off duty).’’.

12 (2) EFFECTIVE DATE.—Section 922(z) of title

13 18, United States Code, as added by this subsection,

14 shall take effect 180 days after the date of enact15 ment of this Act.

16 (c) LIABILITY; EVIDENCE.—

17 (1) LIABILITY.—Nothing in this section shall be

18 construed to—

19 (A) create a cause of action against any

20 dealer of firearms or any other person for any

21 civil liability; or

22 (B) establish any standard of care.

23 (2) EVIDENCE.—Notwithstanding any other

24 provision of law, evidence regarding compliance or

25 noncompliance with the amendments made by this
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1 section shall not be admissible as evidence in any

2 proceeding of any court, agency, board, or other en3 tity, except with respect to an action to enforce this

4 section.

5 (3) RULE OF CONSTRUCTION.—Nothing in this

6 subsection shall be construed to bar a governmental

7 action to impose a penalty under section 924(p) of

8 title 18, United States Code (as added by subsection

9 (d)), for a failure to comply with section 922(z) of

10 that title.

11 (d) CIVIL PENALTIES.—Section 924 of title 18,

12 United States Code, is amended—

13 (1) in subsection (a)(1), by striking ‘‘or (f)’’

14 and inserting ‘‘(f), or (p)’’; and

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

16 ‘‘(p) PENALTIES RELATING TO LOCKING DEVICES.—

17 ‘‘(1) IN GENERAL.—

18 ‘‘(A) SUSPENSION OR REVOCATION OF LI19 CENSE; CIVIL PENALTIES.—With respect to

20 each violation of section 922(z)(1) by a licensee,

21 the Secretary may, after notice and opportunity

22 for hearing—

23 ‘‘(i) suspend or revoke any license

24 issued to the licensee under this chapter;

25 or
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1 ‘‘(ii) subject the licensee to a civil

2 penalty in an amount equal to not more

3 than $10,000.

4 ‘‘(B) REVIEW.—An action of the Secretary

5 under this paragraph may be reviewed only as

6 provided in section 923(f).

7 ‘‘(2) ADMINISTRATIVE REMEDIES.—The sus8 pension or revocation of a license or the imposition

9 of a civil penalty under paragraph (1) does not pre10 clude any administrative remedy that is otherwise

11 available to the Secretary.’’.

12 (e) CONSUMER PRODUCT SAFETY ACT.—The Con13 sumer Product Safety Act (15 U.S.C. 2051 et seq.) is

14 amended by adding at the end the following:

15 ‘‘SEC. 38. CHILD HANDGUN SAFETY LOCKS.

16 ‘‘(a) ESTABLISHMENT OF STANDARD.—

17 ‘‘(1) IN GENERAL.—

18 ‘‘(A) RULEMAKING REQUIRED.—

19 ‘‘(i) INITIATION OF RULEMAKING.—

20 ‘‘(I) IN GENERAL.—Notwith21 standing section 3(a)(1)(E) of this

22 Act, the Commission shall initiate a

23 rulemaking proceeding under section

24 553 of title 5, United States Code,

25 within 90 days after the date of enact-
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1 ment of this section to establish a

2 consumer product safety standard for

3 locking devices.

4 ‘‘(II) EXTENSION OF TIME PE5 RIOD.—The Commission may extend

6 the 90-day period under subclause (I)

7 for good cause.

8 ‘‘(ii) FINAL STANDARD.—

9 ‘‘(I) IN GENERAL.—Notwith10 standing any other provision of law,

11 including chapter 5 of title 5, United

12 States Code, the Commission shall

13 promulgate a final consumer product

14 safety standard under this paragraph

15 within 12 months after the date on

16 which it initiated the rulemaking.

17 ‘‘(II) EXTENSION OF TIME PE18 RIOD.—The Commission may extend

19 that 12-month period under subclause

20 (I) for good cause.

21 ‘‘(iii) EFFECTIVE DATE.—The con22 sumer product safety standard promul23 gated under this paragraph shall take ef24 fect 6 months after the date on which the

25 final standard is promulgated.
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1 ‘‘(B) STANDARD REQUIREMENTS.—The

2 standard promulgated under subparagraph

3 (A)(ii) shall require locking devices that—

4 ‘‘(i) are sufficiently difficult for chil5 dren to deactivate or remove; and

6 ‘‘(ii) prevent the discharge of the

7 handgun unless the locking device has been

8 deactivated or removed.

9 ‘‘(2) CERTAIN PROVISIONS NOT TO APPLY.—

10 ‘‘(A) PROVISIONS OF THIS ACT.—Sections

11 7, 9, and 30(d) of this Act do not apply to the

12 rulemaking proceeding under paragraph (1).

13 Section 11 of this Act does not apply to any

14 consumer product safety standard promulgated

15 under paragraph (1).

16 ‘‘(B) CHAPTER 5 OF TITLE 5.—Except for

17 section 553, chapter 5 of title 5, United States

18 Code, does not apply to this section.

19 ‘‘(C) CHAPTER 6 OF TITLE 5.—Chapter 6

20 of title 5, United States Code, does not apply

21 to this section.

22 ‘‘(D) NATIONAL ENVIRONMENTAL POLICY

23 ACT.—The National Environmental Policy Act

24 of 1969 (42 U.S.C. 4321) does not apply to

25 this section.
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1 ‘‘(b) NO EFFECT ON STATE LAW.—Notwithstanding

2 section 26 of this Act, this section does not annul, alter,

3 impair, affect, or exempt any person subject to the provi4 sions of this section from complying with any provision

5 of the law of any State or any political subdivision thereof,

6 except to the extent that such provisions of State law are

7 inconsistent with any provision of this section, and then

8 only to the extent of the inconsistency. A provision of

9 State law is not inconsistent with this section if such pro10 vision affords greater protection to children in respect of

11 handguns than is afforded by this section.

12 ‘‘(c) ENFORCEMENT.—Notwithstanding subsection

13 (a)(2)(A), the consumer product safety standard promul14 gated by the Commission under subsection (a) shall be en15 forced under this Act as if it were a consumer product

16 safety standard described in section 7(a).

17 ‘‘(d) DEFINITIONS.—In this section:

18 ‘‘(1) CHILD.—The term ‘child’ means an indi19 vidual who is less than 13 years of age.

20 ‘‘(2) LOCKING DEVICE.—The term ‘locking de21 vice’ has the meaning given that term in clauses (i)

22 and (iii) of section 921(a)(35)(A) of title 18, United

23 States Code.’’.

24 (f) CONFORMING AMENDMENT FOR CONSUMER

25 PRODUCT SAFETY ACT.—Section 1 of the Consumer
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1 Product Safety Act is amended by adding at the end of

2 the table of contents the following:

‘‘Sec. 38. Child handgun safety locks.

3 (g) AUTHORIZATION OF APPROPRIATIONS FOR CON4 SUMER PRODUCT SAFETY COMMISSION.—There are au5 thorized to be appropriated to the Consumer Product

6 Safety Commission $2,000,000 to carry out the provisions

7 of section 38 of the Consumer Product Safety Act, such

8 sums to remain available until expended.

9 Subtitle C—Unlawful Weapons

10 Transfers

11 SEC. 11201. UNLAWFUL WEAPONS TRANSFERS TO JUVE12 NILES.

13 (a) IN GENERAL.—Section 922 of title 18, United

14 States Code, is amended by striking subsection (x) and

15 inserting the following:

16 ‘‘(x)(1) It shall be unlawful for a person to sell, de17 liver, or otherwise transfer to a person who the transferor

18 knows or has reasonable cause to believe is a juvenile—

19 ‘‘(A) a handgun;

20 ‘‘(B) ammunition that is suitable for use only

21 in a handgun (in this section referred to as ‘‘ammu22 nition’’);

23 ‘‘(C) a semiautomatic assault weapon; or
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1 ‘‘(D) a large capacity ammunition feeding de2 vice.

3 ‘‘(2) It shall be unlawful for any person who is a juve4 nile to knowingly possess—

5 ‘‘(A) a handgun;

6 ‘‘(B) ammunition;

7 ‘‘(C) a semiautomatic assault weapon; or

8 ‘‘(D) a large capacity ammunition feeding de9 vice.

10 ‘‘(3) This subsection does not apply to—

11 ‘‘(A) a temporary transfer of a handgun, am12 munition, large capacity ammunition feeding device,

13 or a semiautomatic assault weapon to a juvenile or

14 the possession or use of a handgun, ammunition,

15 large capacity ammunition feeding device, or a semi16 automatic assault weapon by a juvenile—

17 ‘‘(i) if the handgun, ammunition, large ca18 pacity ammunition feeding device, or semiauto19 matic assault weapon are possessed and used by

20 the juvenile—

21 ‘‘(I) in the course of employment;

22 ‘‘(II) in the course of ranching or

23 farming related to activities at the resi24 dence of the juvenile (or on property used

25 for ranching or farming at which the juve-
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1 nile, with the permission of the property

2 owner or lessee, is performing activities re3 lated to the operation of the farm or

4 ranch);

5 ‘‘(III) for target practice;

6 ‘‘(IV) for hunting; or

7 ‘‘(V) for a course of instruction in the

8 safe and lawful use of a firearm; and

9 ‘‘(ii) if the juvenile’s possession and use of

10 a handgun, ammunition, large capacity ammu11 nition feeding device, or a semiautomatic as12 sault weapon under this subparagraph are in

13 accordance with State and local law, and the

14 following conditions are met—

15 ‘‘(I) except when a parent or guardian

16 of the juvenile is in the immediate and su17 pervisory presence of the juvenile, the juve18 nile shall have in the juvenile’s possession

19 at all times when a handgun, ammunition,

20 large capacity ammunition feeding device,

21 or semiautomatic assault weapon is in the

22 possession of the juvenile, the prior written

23 consent of the juvenile’s parent or guard24 ian who is not prohibited by Federal,
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1 State, or local law from possessing a fire2 arm or ammunition; and

3 ‘‘(II) during transportation by the ju4 venile directly from the place of transfer to

5 a place at which an activity described in

6 clause (i) is to take place, the firearm shall

7 be unloaded and in a locked container or

8 case, and during the transportation by the

9 juvenile of that firearm, directly from the

10 place at which such an activity took place

11 to the transferor, the firearm shall also be

12 unloaded and in a locked container or case;

13 or

14 ‘‘(III) with respect to employment,

15 ranching or farming activities as described

16 in clause (i), a juvenile may possess and

17 use a handgun, ammunition, large capacity

18 ammunition feeding device or a semiauto19 matic assault rifle with the prior written

20 approval of the juvenile’s parent or legal

21 guardian, if such approval is on file with

22 the adult who is not prohibited by Federal,

23 State, or local law from possessing a fire24 arm or ammunition and that person is di-
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1 recting the ranching or farming activities

2 of the juvenile;

3 ‘‘(B) a juvenile who is a member of the Armed

4 Forces of the United States or the National Guard

5 who possesses or is armed with a handgun, ammuni6 tion, large capacity ammunition feeding device, or

7 semiautomatic assault weapon in the line of duty;

8 ‘‘(C) a transfer by inheritance of title (but not

9 possession) of a handgun, ammunition, large capac10 ity ammunition feeding device, or a semiautomatic

11 assault weapon to a juvenile; or

12 ‘‘(D) the possession of a handgun, ammunition,

13 large capacity ammunition feeding device, or a semi14 automatic assault weapon taken in lawful defense of

15 the juvenile or other persons in the residence of the

16 juvenile or a residence in which the juvenile is an in17 vited guest.

18 ‘‘(4) A handgun, ammunition, large capacity ammu19 nition feeding device, or a semiautomatic assault weapon,

20 the possession of which is transferred to a juvenile in cir21 cumstances in which the transferor is not in violation of

22 this subsection, shall not be subject to permanent confisca23 tion by the Government if its possession by the juvenile

24 subsequently becomes unlawful because of the conduct of

25 the juvenile, but shall be returned to the lawful owner
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1 when such handgun, ammunition, large capacity ammuni2 tion feeding device, or semiautomatic assault weapon is

3 no longer required by the Government for the purposes

4 of investigation or prosecution.

5 ‘‘(5) For purposes of this subsection, the term ‘juve6 nile’ means an individual who is less than 21 years of age.

7 ‘‘(6)(A) In a prosecution of a violation of this sub8 section, the court shall require the presence of a parent

9 or legal guardian of the juvenile defendant at all pro10 ceedings.

11 ‘‘(B) The court may use the contempt power to en12 force subparagraph (A).

13 ‘‘(C) The court may excuse attendance of a parent

14 or legal guardian of a juvenile defendant at a proceeding

15 in a prosecution of a violation of this subsection for good

16 cause shown.

17 ‘‘(7) In this subsection, the term ‘large capacity am18 munition feeding device’ has the same meaning as in sec19 tion 921(a)(31).’’.

20 (b) EFFECTIVE DATE.—This section and the amend21 ment made by this section shall take effect 180 days after

22 the date of enactment of this Act.
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1 Subtitle D—Large Capacity

2 Ammunition Feeding Devices

3 SEC. 11301. BAN ON IMPORTING LARGE CAPACITY AMMUNI4 TION FEEDING DEVICES.

5 (a) IN GENERAL.—Section 922(w) of title 18, United

6 States Code, is amended—

7 (1) in paragraph (1), by striking ‘‘(1) Except as

8 provided in paragraph (2)’’ and inserting ‘‘(1)(A)

9 Except as provided in subparagraph (B)’’;

10 (2) in paragraph (2), by striking ‘‘(2) Para11 graph (1)’’ and inserting ‘‘(B) Subparagraph (A)’’;

12 (3) by inserting before paragraph (3) the fol13 lowing:

14 ‘‘(2) It shall be unlawful for any person to import

15 a large capacity ammunition feeding device.’’; and

16 (4) in paragraph (4)—

17 (A) by striking ‘‘(1)’’ each place it appears

18 and inserting ‘‘(1)(A)’’; and

19 (B) by striking ‘‘(2)’’ and inserting

20 ‘‘(1)(B)’’.

21 (b) CONFORMING AMENDMENT.—Section 921(a)(31)

22 of title 18, United States Code, is amended by striking

23 ‘‘manufactured after the date of enactment of the Violent

24 Crime Control and Law Enforcement Act of 1994’’.
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1 Subtitle E—Enforcement of Gun

2 Laws

3 SEC. 11401. ENHANCE ENFORCEMENT OF GUN VIOLENCE

4 LAWS.

5 (a) CRIMINAL GUN TRAFFICKER APPREHENSION.—

6 (1) COMMONSENSE DEFINITION OF LICENSED

7 DEALER.—Section 921(a)(22) of title 18, United

8 States Code, is amended in the first sentence by in9 serting before the period the following: ‘‘: Provided

10 further, That it shall be presumed that the intent

11 underlying the sale or disposition of a firearm is pre12 dominantly one of obtaining livelihood and pecuniary

13 gain if a person transfers more than 50 firearms

14 during any 12-month period, or more than 30 fire15 arms during any 30-day period, excluding any infre16 quent transfer of a firearm by gift, bequest, intes17 tate succession, or other means by an individual to

18 a parent, child, grandparent, or grandchild of the in19 dividual’’.

20 (2) REQUIREMENT THAT LICENSEE OPERATE

21 FROM FIXED PREMISES.—Section 923(d)(1)(E)(i) of

22 title 18, United States Code, is amended by striking

23 ‘‘premises’’ and inserting ‘‘fixed premises (other

24 than a private residence) primarily devoted to the
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1 sale of firearms and conspicuously designated to the

2 public as such’’.

3 (3) SECURE STORAGE OF FIREARMS INVEN4 TORIES.—

5 (A) STORAGE REQUIREMENTS.—Section

6 923 of title 18, United States Code, is amended

7 by adding at the end the following:

8 ‘‘(m) SECURE STORAGE OF FIREARMS INVEN9 TORIES.—

10 ‘‘(1) IN GENERAL.—Beginning on the date on

11 which the Secretary issues final regulations under

12 paragraph (2), it shall be unlawful for any licensed

13 importer, licensed manufacturer, or licensed dealer

14 (other than a dealer described in section

15 921(a)(11)(B)) to store any firearm on a premises

16 described in subsection (d)(1)(E)(i), other than in

17 accordance with those regulations.

18 ‘‘(2) REGULATIONS.—

19 ‘‘(A) IN GENERAL.—Not later than 180

20 days after the date of enactment of this sub21 section, the Secretary shall issue final regula22 tions governing the secure storage of firearms

23 on premises described in subsection (d)(1)(E)(i)

24 by licensed importers, licensed manufacturers,

25 and licensed dealers.
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1 ‘‘(B) FACTORS FOR CONSIDERATION.—In

2 promulgating regulations issued under this

3 paragraph, the Secretary shall consider—

4 ‘‘(i) the type and quantity of the fire5 arm or firearms to be stored; and

6 ‘‘(ii) the standards of safety and secu7 rity recognized in the firearms industry.’’.

8 (B) PENALTIES.—Section 924 of title 18,

9 United States Code (as amended by section

10 11101), is amended—

11 (i) in subsection (a)(1), by striking

12 ‘‘(f), or (p)’’ and inserting ‘‘(f), (p), or

13 (q)’’; and

14 (ii) by adding at the end the fol15 lowing:

16 ‘‘(q) FAILURE TO SECURELY STORE FIREARMS IN17 VENTORY.—

18 ‘‘(1) IN GENERAL.—The Secretary may, after

19 notice and opportunity for hearing, suspend or re20 voke any license issued under this chapter, may sub21 ject the licensee to a civil penalty of not more than

22 $10,000, or both, if the holder of such license has

23 knowingly violated section 923(m).
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1 ‘‘(2) REVIEW.—An action of the Secretary

2 under this subsection may be reviewed only as pro3 vided in section 923(f).’’.

4 (C) CONDITION OF LICENSING.—

5 (i) IN GENERAL.—Section

6 923(d)(1)(F) of title 18, United States

7 Code, is amended—

8 (I) in clause (ii)(II), by striking

9 ‘‘and’’ at the end; and

10 (II) by adding at the end the fol11 lowing:

12 ‘‘(iv) not later than 30 days after the date on

13 which the application is approved, the firearms in14 ventory of the business will be stored in accordance

15 with the regulations issued under section 923(m)(2);

16 and’’.

17 (ii) EFFECTIVE DATE.—The amend18 ments made by this subparagraph shall

19 apply to any application submitted under

20 section 923 of title 18, United States

21 Code, on or after the date on which final

22 regulations are issued by the Secretary of

23 the Treasury under section 923(m)(2) of

24 title 18, United States Code, as added by

25 this section.
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1 (4) REQUIRING THEFTS FROM COMMON CAR2 RIERS TO BE REPORTED.

3 (A) IN GENERAL.—Section 922(f) of title

4 18, United States Code, is amended by adding

5 at the end the following:

6 ‘‘(3)(A) It shall be unlawful for any common or con7 tract carrier to fail to report the theft or loss of a firearm

8 to the Secretary and to the appropriate local authorities

9 within 48 hours after the theft or loss is discovered.

10 ‘‘(B) The Secretary may impose a civil fine of not

11 more than $10,000 on any person who knowingly violates

12 subparagraph (A).’’.

13 (B) PENALTIES.—Section 924(a)(1)(B) of

14 title 18, United States Code, is amended by

15 striking ‘‘(f),’’ and inserting ‘‘(f)(1), (f)(2),’’.

16 (b) CRIMINAL GUN DEALER DETECTION.—

17 (1) RECORDKEEPING INSPECTIONS.—Section

18 923(g)(1)(B)(ii)(I) of title 18, United States Code,

19 is amended by striking ‘‘once’’ and inserting ‘‘4

20 times’’.

21 (2) DISPOSAL OF PERSONAL FIREARMS COL22 LECTION BY CERTAIN LICENSEES MADE SUBJECT TO

23 REGULATIONS..—Section 923(c) of title 18, United

24 States Code, is amended by striking the second sen25 tence and inserting the following: ‘‘A personal collec-
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1 tion of firearms of a licensed manufacturer, licensed

2 importer, or licensed dealer shall be considered to be

3 part of the business inventory of the licensee for

4 purposes of this chapter, except that the provisions

5 of this chapter applicable to the disposition of a fire6 arm from the business inventory of a licensee shall

7 not apply to the infrequent transfer of a firearm by

8 gift, bequest, intestate succession, or other means

9 from the personal collection of firearms of a licensee

10 to a parent, child, grandparent, or grandchild of the

11 licensee.’’.

12 (3) SUSPENSION OR REVOCATION OF FIREARMS

13 DEALER LICENSE AND CIVIL PENALTIES.—

14 (A) IN GENERAL.—Section 923 of title 18,

15 United States Code, is amended by striking

16 subsection (e) and inserting the following:

17 ‘‘(e) SUSPENSION OR REVOCATION OF DEALER LI18 CENSE; CIVIL PENALTIES.—

19 ‘‘(1) WILLFUL VIOLATIONS.—The Secretary

20 may, after notice and opportunity for hearing, sus21 pend or revoke any license issued under this section,

22 and may subject the licensee to a civil penalty of not

23 more than $10,000 per violation, or both, if the

24 holder of such license has willfully violated any pro-
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1 vision of this chapter or any rule or regulation pre2 scribed by the Secretary under this chapter.

3 ‘‘(2) TRANSFER OF ARMOR PIERCING AMMUNI4 TION.—The Secretary may, after notice and oppor5 tunity for hearing, with respect to a dealer who will6 fully transfers armor piercing ammunition—

7 ‘‘(A) suspend or revoke the license of that

8 dealer;

9 ‘‘(B) assess a civil penalty of not more

10 than $10,000 on that dealer; or

11 ‘‘(C) both.

12 ‘‘(3) COMPROMISE, MITIGATION, OR REMIT13 TANCE OF LIABILITY.—The Secretary may at any

14 time compromise, mitigate, or remit the liability with

15 respect to any willful violation of this chapter or any

16 rule or regulation prescribed by the Secretary under

17 this chapter.

18 ‘‘(4) REVIEW.—An action of the Secretary

19 under this subsection may be reviewed only as pro20 vided in subsection (f).’’.

21 (B) NOTICE OF LICENSE REVOCATION OR

22 DENIAL.—Section 923 of title 18, United States

23 Code, is amended by striking subsection (f) and

24 inserting the following:

25 ‘‘(f) RIGHTS OF APPLICANTS AND LICENSEES.—
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1 ‘‘(1) NOTICE REQUIREMENTS.—

2 ‘‘(A) IN GENERAL.—If the Secretary de3 nies an application for, or revokes or suspends

4 a license, or assesses a civil penalty under this

5 section, the Secretary shall provide written no6 tice of such denial, revocation, suspension, or

7 assessment to the affected party.

8 ‘‘(B) NOTICE TO BE GIVEN BEFORE EF9 FECTIVE DATE OF REVOCATION OR SUSPEN10 SION.—Any notice of a revocation or suspension

11 of a license under this paragraph shall be given

12 to the holder of such license before the effective

13 date of the revocation or suspension, as applica14 ble.

15 ‘‘(2) APPEALS PROCESS.—

16 ‘‘(A) HEARING.—If the Secretary denies

17 an application for, or revokes or suspends a li18 cense, or assesses a civil penalty under this sec19 tion, the Secretary, shall—

20 ‘‘(i) upon request of the aggrieved

21 party, promptly hold a hearing at a loca22 tion convenient to the aggrieved party to

23 review the denial, revocation, suspension,

24 or assessment; and
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1 ‘‘(ii) in the case of a suspension or

2 revocation of a license, upon the request of

3 the holder of the license, stay the effective

4 date of the suspension or revocation.

5 ‘‘(B) NOTICE OF DECISION.—If, after a

6 hearing held under subparagraph (A), the Sec7 retary decides not to reverse the decision of the

8 Secretary to deny the application, revoke or

9 suspend the license, or assess the civil penalty,

10 as applicable, the Secretary shall provide notice

11 of the decision of the Secretary to the aggrieved

12 party.

13 ‘‘(C) PETITION FOR DE NOVO REVIEW.—

14 ‘‘(i) IN GENERAL.—During the 60-day

15 period beginning on the date on which an

16 aggrieved party receives a notice under

17 subparagraph (B), the aggrieved party

18 may file a petition with the district court

19 of the United States for the judicial dis20 trict in which the aggrieved party resides

21 or has a principal place of business for a

22 de novo judicial review of such denial, rev23 ocation, suspension, or assessment.
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1 ‘‘(ii) JUDICIAL PROCEEDING.—In any

2 judicial proceeding pursuant to a petition

3 under clause (i)—

4 ‘‘(I) the court may consider any

5 evidence submitted by the parties to

6 the proceeding, regardless of whether

7 or not such evidence was considered

8 at the hearing held under subpara9 graph (A); and

10 ‘‘(II) if the court decides that the

11 Secretary was not authorized to make

12 such denial, revocation, suspension, or

13 assessment, the court shall order the

14 Secretary to take such actions as may

15 be necessary to comply with the judg16 ment of the court.’’.

17 (c) VIOLENT FELON GUN BAN ENFORCEMENT.—

18 (1) ADMINISTRATIVE RELIEF FROM CERTAIN

19 FIREARMS AND EXPLOSIVES PROHIBITIONS.—

20 (A) IN GENERAL.—

21 (i) FIREARMS.—Section 925(c) of title

22 18, United States Code, is amended—

23 (I) by inserting ‘‘(1)’’ after ‘‘(c)’’;
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1 (II) in the first sentence, by in2 serting ‘‘(other than a natural per3 son)’’ before ‘‘who is prohibited’’;

4 (III) in the fourth sentence—

5 (aa) by inserting ‘‘person

6 (other than a natural person)

7 who is a’’ before ‘‘licensed im8 porter’’; and

9 (bb) by striking ‘‘his li10 cense’’ and inserting ‘‘the license

11 of that person’’; and

12 (IV) by striking the last sentence

13 and inserting the following:

14 ‘‘(2) Whenever the Secretary grants relief under this

15 section to any person, the Secretary shall promptly publish

16 notice of such action in the Federal Register, which shall

17 include—

18 ‘‘(A) the name of the person;

19 ‘‘(B) the disability with respect to which the re20 lief is granted;

21 ‘‘(C) if the disability was imposed by reason of

22 a criminal conviction of the person, the crime for

23 which and the court in which the person was con24 victed; and
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1 ‘‘(D) the reasons for the decision of the Sec2 retary.’’.

3 (ii) EXPLOSIVE MATERIALS.—Section

4 845(b) of title 18, United States Code, is

5 amended—

6 (I) in the first sentence, by in7 serting ‘‘(other than a natural per8 son)’’ before ‘‘may make application

9 to the Secretary’’; and

10 (II) in the second sentence, by

11 inserting ‘‘(other than a natural per12 son)’’ before ‘‘who makes application

13 for relief’’.

14 (B) APPLICABILITY.—The amendments

15 made by subparagraph (A) shall apply to any

16 application for administrative relief and any ac17 tion for judicial review that—

18 (i) is pending on the date of enact19 ment of this section; and

20 (ii) is brought or filed on or after the

21 date of enactment of this section.

22 (2) PERMANENT FIREARM PROHIBITION FOR

23 CONVICTED VIOLENT FELONS AND SERIOUS DRUG

24 OFFENDERS.—Section 921(a)(20) of title 18, United

25 States Code, is amended—
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1 (A) in the first sentence—

2 (i) by redesignating subparagraphs

3 (A) and (B) as clauses (i) and (ii), respec4 tively; and

5 (ii) by inserting ‘‘(A)’’ after ‘‘(20)’’;

6 (B) in the second sentence, by striking

7 ‘‘What’’ and inserting the following:

8 ‘‘(B) What’’; and

9 (C) by striking the third sentence and in10 serting the following:

11 ‘‘(C) A State conviction shall not be considered to be

12 a conviction for purposes of this chapter, if—

13 ‘‘(i) the conviction is for an offense other than

14 a serious drug offense (as defined in section

15 924(e)(2)(A)) or violent felony (as defined in section

16 924(e)(2)(B));

17 ‘‘(ii) the person is pardoned or has restored any

18 civil right taken away by virtue of the conviction, or

19 the conviction is expunged; and

20 ‘‘(iii) the authority that grants the pardon, the

21 restoration of civil rights, or the expungement—

22 ‘‘(I) expressly authorizes the person to

23 ship, transport, receive, and possess firearms;

24 and
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1 ‘‘(II) expressly determines that the cir2 cumstances regarding the conviction and the

3 record and reputation of the person are such

4 that the person is not likely to act in a manner

5 that is dangerous to public safety, and that the

6 granting of the relief is not contrary to the pub7 lic interest.’’.

8 (d) INTENSIVE GUN VIOLENCE REDUCTION STRAT9 EGY AND PROJECT EXILE IMPLEMENTATION.—

10 (1) AUTHORIZATION OF FUNDING FOR FED11 ERAL DOMESTIC VIOLENCE OFFENDER RECORD12 KEEPING IMPROVEMENTS.—

13 (A) IN GENERAL.—In addition to any

14 other amounts authorized to be appropriated

15 that may be used for such purpose, there is au16 thorized to be appropriated $70,000,000 for fis17 cal year 2002 for the improvement of the na18 tional instant criminal background check sys19 tem established under section 103 of the Brady

20 Handgun Violence Prevention Act (18 U.S.C.

21 922 note), including improvements with respect

22 to the records described in subparagraph (B) of

23 this paragraph, and especially records of domes24 tic violence incidents, including felony and mis25 demeanor convictions for crimes of domestic vi-
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1 olence and restraining orders with respect to in2 cidents of domestic violence.

3 (B) RECORDS INCLUDED.—The records

4 described in this subsection are—

5 (i) the records described in para6 graphs (1), (2), and (3) of section 509(b)

7 of the Omnibus Crime Control and Safe

8 Streets Act of 1968 (42 U.S.C. 3759(b));

9 and

10 (ii) the records required by the Attor11 ney General under section 103 of the

12 Brady Handgun Violence Prevention Act

13 (18 U.S.C. 922 note) for the purpose of

14 implementing that Act.

15 (2) AUTHORIZATION OF FUNDING FOR STATE

16 AND LOCAL DOMESTIC VIOLENCE OFFENDER REC17 ORDKEEPING IMPROVEMENTS.—

18 (A) GRANTS FOR STATE AND LOCAL DO19 MESTIC VIOLENCE OFFENDER RECORDKEEPING

20 IMPROVEMENTS.—Title III of the Violent Crime

21 Control and Law Enforcement Act of 1994 is

22 amended by adding at the end the following:
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1 ‘‘Subtitle Y—Grants for State and

2 Local Domestic Violence Of3 fender Recordkeeping Improve4 ments

5 ‘‘SEC. 32501. GRANT AUTHORIZATION.

6 ‘‘The Attorney General may award grants to State

7 or local law enforcement agencies for the purpose of

8 improving—

9 ‘‘(1) the organization of criminal records includ10 ing records relating to convictions for crimes of do11 mestic violence and restraining orders with respect

12 to domestic violence; and

13 ‘‘(2) the reporting of such records to the na14 tional instant criminal background check system es15 tablished under section 103 of the Brady Handgun

16 Violence Prevention Act (18 U.S.C. 922 note).

17 ‘‘SEC. 32502. USE OF FUNDS.

18 ‘‘Grants awarded by the Attorney General under this

19 subtitle shall be used to fund programs for the purpose

20 specified in section 32501.

21 ‘‘SEC. 32503. APPLICATIONS.

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

23 award under this subtitle for a fiscal year, a State or local

24 law enforcement agency shall submit to the Attorney Gen25 eral an application, in such form and containing such in-
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1 formation as the Attorney General may reasonably re2 quire.

3 ‘‘(b) REQUIREMENTS.—Each application submitted

4 under this section shall include—

5 ‘‘(1) a request for funds for the purpose speci6 fied in section 32501;

7 ‘‘(2) a description of the improvements the ap8 plicant intends to make in its organization of crimi9 nal records, including records relating to convictions

10 for crimes of domestic violence and to restraining or11 ders with respect to domestic violence, and its re12 porting of such records to the national instant crimi13 nal background check system; and

14 ‘‘(3) assurances that Federal funds received

15 under this subtitle shall be used to supplement, not

16 supplant, non-Federal funds that would otherwise be

17 available for activities funded under this section.

18 ‘‘SEC. 32504. MATCHING REQUIREMENT.

19 ‘‘The Federal share of a grant awarded under this

20 subtitle may not exceed 50 percent of the total costs of

21 the programs described in the applications submitted

22 under section 32503 for the fiscal year for which the pro23 grams receive assistance under this subtitle.
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1 ‘‘SEC. 32505. AWARD OF GRANTS.

2 ‘‘(a) IN GENERAL.—In awarding grants under this

3 subtitle, the Attorney General shall consider the dem4 onstrated need for, and the evidence of the ability of the

5 applicant to make, the improvements described in section

6 32503(b)(2), as described in the application submitted

7 under section 32503.

8 ‘‘(b) RESEARCH AND EVALUATION.—The Attorney

9 General shall use not more than 3 percent of the funds

10 available under this subtitle, and not less than 1 percent

11 of such funds, for the purposes of research and evaluation

12 of the activities carried out under this subtitle.

13 ‘‘SEC. 32506. REPORTS.

14 ‘‘(a) REPORT TO ATTORNEY GENERAL.—Not later

15 than March 1 of each fiscal year, each law enforcement

16 agency that received funds from a grant awarded under

17 this subtitle for that fiscal year shall submit to the Attor18 ney General a report describing the progress achieved in

19 carrying out the program for which the grant was award20 ed.

21 ‘‘(b) REPORT TO CONGRESS.—Beginning not later

22 than October 1 of the first fiscal year following the initial

23 fiscal year during which grants are awarded under this

24 subtitle, and not later than October 1 of each fiscal year

25 thereafter, the Attorney General shall submit to Congress

26 a report, which shall contain a detailed statement regard-
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1 ing grant awards, activities of grant recipients, a compila2 tion of statistical information submitted by applicants, and

3 an evaluation of programs established with amounts from

4 grants awarded under this subtitle during the preceding

5 fiscal year.

6 ‘‘SEC. 32507. DEFINITION OF STATE.

7 ‘‘In this subtitle, the term ‘State’ means each of the

8 several States of the United States, the District of Colum9 bia, the Commonwealth of Puerto Rico, the Common10 wealth of the Northern Mariana Islands, American

11 Samoa, Guam, and the United States Virgin Islands.

12 ‘‘SEC. 32508. AUTHORIZATION OF APPROPRIATIONS.

13 ‘‘There is authorized to be appropriated to carry out

14 this subtitle $20,000,000 for fiscal year 2002.’’.

15 (B) TECHNICAL AND CONFORMING AMEND16 MENT.—The table of contents in section 2 of

17 the Violent Crime Control and Law Enforce18 ment Act of 1994 is amended by inserting after

19 the item relating to subtitle X the following:

‘‘Subtitle Y—Grants for State and Local Domestic Violence Offender

Recordkeeping Improvements

‘‘Sec. 32501. Grant authorization.

‘‘Sec. 32502. Use of funds.

‘‘Sec. 32503. Applications.

‘‘Sec. 32504. Matching requirement.

‘‘Sec. 32505. Award of grants.

‘‘Sec. 32506. Reports.

‘‘Sec. 32507. Definition of State.

‘‘Sec. 32508. Authorization of appropriations.’’.
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1 (3) AUTHORIZATION OF FUNDING FOR ADDI2 TIONAL BUREAU OF ALCOHOL, TOBACCO AND FIRE3 ARMS OFFICERS.—In addition to any other amounts

4 authorized to be appropriated that may be used for

5 such purpose, there is authorized to be appropriated

6 $53,000,000 for fiscal year 2002 for the hiring of

7 600 firearms’ agents and inspectors for the Bureau

8 of Alcohol, Tobacco and Firearms.

9 (4) AUTHORIZATION OF FUNDING FOR ADDI10 TIONAL STATE AND LOCAL GUN PROSECUTORS.—

11 (A) GRANTS FOR STATE AND LOCAL GUN

12 PROSECUTORS.—Title III of the Violent Crime

13 Control and Law Enforcement Act of 1994 (as

14 amended by paragraph (2)), is amended by

15 adding at the end the following:

16 ‘‘Subtitle Z—Grants for State and

17 Local Gun Prosecutors

18 ‘‘SEC. 32601. GRANT AUTHORIZATION.

19 ‘‘The Attorney General may award grants to State,

20 Indian tribal, or local prosecutors for the purpose of sup21 porting the creation or expansion of community-based jus22 tice programs for the prosecution of firearm-related

23 crimes.
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1 ‘‘SEC. 32602. USE OF FUNDS.

2 ‘‘Grants awarded by the Attorney General under this

3 subtitle shall be used to fund programs for the hiring of

4 prosecutors and related personnel under which those pros5 ecutors and personnel shall utilize an interdisciplinary

6 team approach to prevent, reduce, and respond to firearm7 related crimes in partnership with communities.

8 ‘‘SEC. 32603. APPLICATIONS.

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

10 award under this subtitle for a fiscal year, a State, Indian

11 tribal, or local prosecutor, in conjunction with the chief

12 executive officer of the jurisdiction in which the program

13 will be placed, shall submit to the Attorney General an

14 application, in such form and containing such information

15 as the Attorney General may reasonably require.

16 ‘‘(b) REQUIREMENTS.—Each application submitted

17 under this section shall include—

18 ‘‘(1) a request for funds for the purposes de19 scribed in section 32602;

20 ‘‘(2) a description of the communities to be

21 served by the grant, including the nature of the fire22 arm-related crime in such communities; and

23 ‘‘(3) assurances that Federal funds received

24 under this subtitle shall be used to supplement, not

25 supplant, non-Federal funds that would otherwise be

26 available for activities funded under this section.
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1 ‘‘SEC. 32604. MATCHING REQUIREMENT.

2 ‘‘The Federal share of a grant awarded under this

3 subtitle may not exceed 50 percent of the total cost of

4 the program described in the application submitted under

5 section 32603 for the fiscal year for which the program

6 receives assistance under this subtitle.

7 ‘‘SEC. 32605. AWARD OF GRANTS.

8 ‘‘(a) IN GENERAL.—Except as provided in subsection

9 (b), in awarding grants under this subtitle, the Attorney

10 General shall consider—

11 ‘‘(1) the demonstrated need for, and the evi12 dence of the ability of the applicant to provide, the

13 services described in section 32603(b)(2), as de14 scribed in the application submitted under section

15 32603;

16 ‘‘(2) the extent to which, as reflected in the

17 1998 Uniform Crime Report of the Federal Bureau

18 of Investigation, there is a high rate of firearm-re19 lated crime in the jurisdiction of the applicant,

20 measured either in total or per capita;

21 ‘‘(3) the extent to which the jurisdiction of the

22 applicant has experienced an increase in the total or

23 per capita rate of firearm-related crime, as reported

24 in the 3 most recent annual Uniform Crime Reports

25 of the Federal Bureau of Investigation;
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1 ‘‘(4) the extent to which State and local law en2 forcement agencies in the jurisdiction of the appli3 cant have pledged to cooperate with Federal officials

4 in responding to the illegal acquisition distribution,

5 possession, and use of firearms within the jurisdic6 tion; and

7 ‘‘(5) the extent to which the jurisdiction of the

8 applicant participates in comprehensive firearm law

9 enforcement strategies, including programs such as

10 the Youth Crime Gun Interdiction Initiative, Project

11 Achilles, Project Disarm, Project Triggerlock,

12 Project Exile, Project Surefire, and Operation

13 Ceasefire.

14 ‘‘(b) INDIAN TRIBES.—

15 ‘‘(1) FEDERAL GRANTS.—Not less than 5 per16 cent of the amount made available for grants under

17 this subtitle for each fiscal year shall be awarded as

18 grants to Indian tribes.

19 ‘‘(2) GRANT CRITERIA.—In awarding grants to

20 Indian tribes in accordance with this subsection, the

21 Attorney General shall consider, to the extent prac22 ticable, the factors for consideration set forth in sub23 section (a).

24 ‘‘(c) RESEARCH AND EVALUATION.—Of the amount

25 made available for grants under this subtitle for each fis-
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1 cal year, the Attorney General shall use not less than 1

2 percent and not more than 3 percent for research and

3 evaluation of the activities carried out with grants award4 ed under this subtitle.

5 ‘‘SEC. 32606. REPORTS.

6 ‘‘(a) REPORT TO ATTORNEY GENERAL.—Not later

7 than March 1 of each fiscal year, each law enforcement

8 agency that receives funds from a grant awarded under

9 this subtitle for that fiscal year shall submit to the Attor10 ney General a report describing the progress achieved in

11 carrying out the grant program for which those funds were

12 received.

13 ‘‘(b) REPORT TO CONGRESS.—Beginning not later

14 than October 1 of the first fiscal year following the initial

15 fiscal year during which grants are awarded under this

16 subtitle, and not later than October 1 of each fiscal year

17 thereafter, the Attorney General shall submit to Congress

18 a report, which shall contain a detailed statement regard19 ing grant awards, activities of grant recipients, a compila20 tion of statistical information submitted by applicants, and

21 an evaluation of programs established with amounts from

22 grants awarded under this subtitle during the preceding

23 fiscal year.

24 ‘‘SEC. 32607. DEFINITIONS.

25 ‘‘In this subtitle—
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1 ‘‘(1) the term ‘firearm’ has the meaning given

2 the term in section 921(a) of title 18, United States

3 Code;

4 ‘‘(2) the term ‘Indian tribe’ means a tribe,

5 band, pueblo, nation, or other organized group or

6 community of Indians, including an Alaska Native

7 village (as defined in or established under the Alaska

8 Native Claims Settlement Act (43 U.S.C. 1601 et

9 seq.)), that is recognized as eligible for the special

10 programs and services provided by the United States

11 to Indians because of their status as Indians; and

12 ‘‘(3) the term ‘State’ means each of the several

13 States of the United States, the District of Colum14 bia, the Commonwealth of Puerto Rico, the Com15 monwealth of the Northern Mariana Islands, Amer16 ican Samoa, Guam, and the United States Virgin Is17 lands.

18 ‘‘SEC. 32608. AUTHORIZATION OF APPROPRIATIONS.

19 ‘‘There is authorized to be appropriated to carry out

20 this subtitle $150,000,000 for fiscal year 2002.’’.

21 (B) TECHNICAL AND CONFORMING AMEND22 MENT.—The table of contents in section 2 of

23 the Violent Crime Control and Law Enforce24 ment Act of 1994 (as amended by paragraph
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1 (2)(B)) is amended by inserting after the item

2 relating to subtitle Y the following:

‘‘Subtitle Z—Grants for State and Local Gun Prosecutors

‘‘Sec. 32601. Grant authorization.

‘‘Sec. 32602. Use of funds.

‘‘Sec. 32603. Applications.

‘‘Sec. 32604. Matching requirement.

‘‘Sec. 32605. Award of grants.

‘‘Sec. 32606. Reports.

‘‘Sec. 32607. Definitions.

‘‘Sec. 32608. Authorization of appropriations.’’.

3 (5) AUTHORIZATION OF FUNDING FOR ADDI4 TIONAL FEDERAL FIREARMS PROSECUTORS AND

5 GUN ENFORCEMENT TEAMS.—

6 (A) ADDITIONAL FEDERAL FIREARMS

7 PROSECUTORS.—The Attorney General shall

8 hire 114 additional Federal prosecutors to pros9 ecute violations of Federal firearms laws.

10 (B) GUN ENFORCEMENT TEAMS.—

11 (i) ESTABLISHMENT.—The Attorney

12 General shall establish in each of the juris13 dictions specified in clause (iii) a gun en14 forcement team.

15 (ii) GUN ENFORCEMENT TEAM RE16 QUIREMENTS.—Each gun enforcement

17 team established under this subparagraph

18 shall be composed of—

19 (I) 1 coordinator, who shall be

20 responsible, with respect to the juris21 diction concerned, for coordinating
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1 among Federal, State, and local law

2 enforcement—

3 (aa) the appropriate forum

4 for the prosecution of crimes re5 lating to firearms; and

6 (bb) efforts for the preven7 tion of such crimes; and

8 (II) 1 analyst, who shall be re9 sponsible, with respect to the jurisdic10 tion concerned, for analyzing data re11 lating to such crimes and recom12 mending law enforcement strategies to

13 reduce such crimes.

14 (iii) COVERED JURISDICTIONS.—The

15 jurisdictions specified in this subparagraph

16 are not more than 20 jurisdictions des17 ignated by the Attorney General for pur18 poses of this subparagraph as areas having

19 high rates of crimes relating to firearms.

20 (C) AUTHORIZATION OF APPROPRIA21 TIONS.—In addition to any other amounts au22 thorized to be appropriated that may be used

23 for such purpose, there is authorized to be ap24 propriated to carry out this paragraph

25 $15,000,000 for fiscal year 2002.
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1 (6) YOUTH CRIME GUN INTERDICTION INITIA2 TIVE.—

3 (A) IN GENERAL.—The Secretary of the

4 Treasury shall expand—

5 (i) to 50, the number of city and

6 county law enforcement agencies that

7 through the Youth Crime Gun Interdiction

8 Initiative submit identifying information

9 relating to all firearms recovered during

10 law enforcement investigations, including

11 from individuals under age 25, to the Sec12 retary of the Treasury to identify the types

13 and origins of such firearms; and

14 (ii) the resources devoted to law en15 forcement investigations of illegal youth

16 possessors and users of illegal firearms

17 traffickers identified through the Youth

18 Crime Gun Interdiction Initiative, includ19 ing through the hiring of additional agents,

20 inspectors, intelligence analysts, and sup21 port personnel.

22 (B) SELECTION OF PARTICIPANTS.—The

23 Secretary of the Treasury, in consultation with

24 Federal, State, and local law enforcement offi25 cials, shall select cities and counties for partici-
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1 pation in the program established under this

2 paragraph.

3 (C) ESTABLISHMENT OF SYSTEM.—

4 (i) IN GENERAL.—The Secretary of

5 the Treasury shall establish a system

6 through which State and local law enforce7 ment agencies, through online computer

8 technology, can promptly provide firearms9 related information to the Secretary of the

10 Treasury and access information derived

11 through the Youth Crime Gun Interdiction

12 Initiative as soon as such capability is

13 available.

14 (ii) REPORT.—Not later than 6

15 months after the date of enactment of this

16 section, the Secretary of the Treasury shall

17 submit to the Chairman and Ranking

18 Member of the Committee on Appropria19 tions of the House of Representatives, and

20 the Chairman and Ranking Member of the

21 Committee on Appropriations of the Sen22 ate, a report explaining the capacity to

23 provide such online access and the future

24 technical and, if necessary, legal changes
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1 required to make such capability available,

2 including cost estimates.

3 (D) REPORT.—Not later than 1 year after

4 the date of enactment of this paragraph, and

5 annually thereafter, the Secretary of the Treas6 ury shall submit to the Chairman and Ranking

7 Member of the Committee on Appropriations of

8 the House of Representatives, and the Chair9 man and Ranking Member of the Committee on

10 Appropriations of the Senate, a report

11 regarding—

12 (i) the types and sources of firearms

13 recovered from individuals, including those

14 under the age of 25;

15 (ii) regional, State, and national fire16 arms trafficking trends; and

17 (iii) the number of investigations and

18 arrests resulting from the Youth Crime

19 Gun Interdiction Initiative.

20 (E) AUTHORIZATION OF APPROPRIA21 TIONS.—There is authorized to be appropriated

22 to carry out this section $20,000,000 for fiscal

23 year 2002.

24 (7) LOCAL ANTIGUN VIOLENCE MEDIA CAM25 PAIGNS.—
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1 (A) GRANTS FOR LOCAL ANTIGUN VIO2 LENCE MEDIA CAMPAIGNS.—Title III of the

3 Violent Crime Control and Law Enforcement

4 Act of 1994 (as amended by paragraphs (2)

5 and (4)) is amended by adding at the end the

6 following:

7 ‘‘Subtitle AA—Grants for Local

8 Antigun Violence Media Cam9 paigns

10 ‘‘SEC. 32701. GRANT AUTHORIZATION.

11 ‘‘The Attorney General may award grants to public

12 entities or private nonprofit entities for the purpose of

13 supporting the creation or expansion of local antigun vio14 lence media campaigns.

15 ‘‘SEC. 32702. USE OF FUNDS.

16 ‘‘Grants awarded by the Attorney General under this

17 subtitle shall be used to fund programs for media cam18 paigns on gun violence and gun safety, including cam19 paigns that—

20 ‘‘(1) highlight coordination among Federal,

21 State, and local law enforcement agencies;

22 ‘‘(2) publicize penalties for violations of fire23 arms laws; and

24 ‘‘(3) emphasize the safe storage of firearms and

25 the prevention of access to firearms by children.
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1 ‘‘SEC. 32703. APPLICATIONS.

2 ‘‘To be eligible to receive a grant award under this

3 subtitle for a fiscal year, a public entity or private non4 profit entity shall submit to the Attorney General an appli5 cation, in such form and containing such information as

6 the Attorney General may reasonably require.

7 ‘‘SEC. 32704. MATCHING REQUIREMENT.

8 ‘‘The Federal share of a grant awarded under this

9 subtitle may not exceed 50 percent of the total cost of

10 the program described in the application submitted under

11 section 32703 for the fiscal year for which the program

12 receives assistance under this subtitle.

13 ‘‘SEC. 32705. AUTHORIZATION OF APPROPRIATIONS.

14 ‘‘There is authorized to be appropriated to carry out

15 this subtitle $10,000,000 for fiscal year 2002.’’.

16 (B) TECHNICAL AND CONFORMING AMEND17 MENT.—The table of contents in section 2 of

18 the Violent Crime Control and Law Enforce19 ment Act of 1994 (as amended by paragraphs

20 (2)(B) and (4)(B)), is amended by inserting

21 after the item relating to subtitle Z the fol22 lowing:

‘‘Subtitle AA—Grants for Local Antigun Violence Media Campaigns

‘‘Sec. 32701. Grant authorization.

‘‘Sec. 32702. Use of funds.

‘‘Sec. 32703. Applications.

‘‘Sec. 32704. Matching requirement.

‘‘Sec. 32705. Authorization of appropriations.’’.
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1 (8) SMART GUN TECHNOLOGY.—

2 (A) IN GENERAL.—The Attorney General,

3 acting through the Director of the National In4 stitute of Justice, shall carry out a program for

5 the research and development of smart gun

6 technology.

7 (B) DEFINITION OF SMART GUN TECH8 NOLOGY.—In this paragraph, the term ‘‘smart

9 gun technology’’ means a device—

10 (i) incorporated by manufacture and

11 design into a handgun in such a manner

12 that the device cannot be readily removed

13 or deactivated;

14 (ii) that allows the handgun to be

15 fired only by a particular individual; and

16 (iii) that may allow the handgun to be

17 personalized to an additional individual.

18 (C) AUTHORIZATION OF APPROPRIA19 TIONS.—In addition to any other amounts au20 thorized to be appropriated that may be used

21 for such purpose, there is authorized to be ap22 propriated to carry out this paragraph

23 $10,000,000 for fiscal year 2002.

24 (9) DEFINITION OF FOREIGN BALLISTICS.—

25 Section 921(a) of title 18, United States Code (as
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1 amended by sections 11001 and 11101), is amended

2 by adding at the end the following:

3 ‘‘(39) The term ‘forensic ballistics’ means a compara4 tive analysis of fired bullets and cartridge casings to iden5 tify the firearm from which the bullets or cartridge casings

6 were discharged through the identification of the unique

7 characteristics that each firearm imprints on bullets and

8 cartridge casings.’’.

9 (10) TEST FIRING AND AUTOMATED STORAGE

10 OF FORENSIC BALLISTICS RECORDS.—

11 (A) AMENDMENTS TO TITLE 18, UNITED

12 STATES CODE.—

13 (i) IN GENERAL.—Chapter 44 of title

14 18, United States Code (as amended by

15 section 11001), is amended by adding at

16 the end the following:

17 ‘‘§ 932. Test firing and automated storage of forensic

18 ballistics records

19 ‘‘(a) IN GENERAL.—A licensed manufacturer or li20 censed importer shall not transfer a firearm to any person

21 before—

22 ‘‘(1) test firing the firearm;

23 ‘‘(2) preparing forensic ballistics records of the

24 fired bullet and cartridge casings from the test fire;

25 and
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1 ‘‘(3) making the ballistics records available to

2 the Secretary for entry in a computerized database.

3 ‘‘(b) PENALTIES.—

4 ‘‘(1) IN GENERAL.—With respect to each viola5 tion of subsection (a) by a licensed manufacturer or

6 licensed importer, the Secretary may, after notice

7 and opportunity for hearing, suspend the license for

8 not more than 1 year or revoke the license, impose

9 on the licensee a civil fine of not more than $10,000,

10 or both.

11 ‘‘(2) REVIEW.—An action of the Secretary

12 under subsection (b)(1) may be reviewed only as

13 provided in section 923(f).

14 ‘‘(3) OTHER ADMINISTRATIVE REMEDIES.—The

15 suspension or revocation of a license or the imposi16 tion of a civil fine under paragraph (1) shall not pre17 clude any administrative remedy that is available to

18 the Secretary under any other provision of law.

19 ‘‘(c) MANDATORY FORENSIC BALLISTICS TESTING

20 OF FIREARMS IN FEDERAL CUSTODY.—The Secretary

21 and the Attorney General shall conduct mandatory foren22 sic ballistics testing of all firearms that are or have been

23 taken into the custody of, or procured or utilized by, their

24 respective agencies.’’.
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1 (ii) TECHNICAL AND CONFORMING

2 AMENDMENT.—The analysis for chapter 44

3 of title 18, United States Code, is amended

4 by adding at the end the following:

‘‘932. Test firing and automated storage of forensic ballistics records.’’.

5 (iii) AUTHORIZATION OF APPROPRIA6 TIONS.—There is authorized to be appro7 priated to carry out section 932(c) of title

8 18, United States Code, $38,000,000 for

9 each of fiscal years 2002 through 2005.

10 (iv) EFFECTIVE DATE.—The amend11 ment made by this subparagraph shall take

12 effect on the date on which the Attorney

13 General and the Secretary of the Treasury

14 certify that the Department of Justice and

15 the Department of the Treasury have es16 tablished a National Integrated Ballistics

17 Network.

18 (B) COMPLIANCE ASSISTANCE.—

19 (i) IN GENERAL.—The Attorney Gen20 eral and the Secretary shall assist licensed

21 manufacturers and licensed importers in

22 complying with section 932(a) of title 18,

23 United States Code, through—

24 (I) the acquisition, disposition,

25 and upgrade of computerized forensic
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1 ballistics equipment and bullet recov2 ery equipment to be placed at the

3 sites of licensed manufacturers and li4 censed importers or at regional fire5 arm centers established by the Sec6 retary;

7 (II) the hiring or designation of

8 personnel necessary to develop and

9 maintain a database of forensic ballis10 tics records, research, and evaluation;

11 and

12 (III) any other steps necessary to

13 implement effective forensic ballistics

14 testing.

15 (ii) ONLINE ACCESS TO FORENSIC

16 BALLISTICS RECORDS.—The Attorney Gen17 eral and the Secretary shall establish a

18 system through which State and local law

19 enforcement agencies, through online com20 puter technology, can promptly access fo21 rensic ballistics records stored under sec22 tion 932 of title 18, United States Code,

23 as soon as the capability to do so is avail24 able.
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1 (C) ANNUAL REPORTS.—Not later than 1

2 year after the effective date of section 932 of

3 title 18, United States Code, and annually

4 thereafter, the Attorney General and the Sec5 retary shall submit to the Committees on the

6 Judiciary of the House of Representatives and

7 the Senate a report regarding the effects of sec8 tion 932 of title 18, United States Code, includ9 ing the number of Federal and State criminal

10 investigations, arrests, indictments, and pros11 ecutions of all cases in which access to forensic

12 ballistics records provided under section 932 of

13 title 18, United States Code, served as a valu14 able investigative tool.

15 (D) EDUCATION AND OUTREACH.—

16 (i) IN GENERAL.—The Attorney Gen17 eral and the Secretary shall work coopera18 tively with representatives of the firearm

19 industry (including firearm manufacturers

20 and importers) to provide—

21 (I) education about the role of fo22 rensic ballistics as part of a com23 prehensive firearm crime reduction

24 strategy; and
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1 (II) for coordination among Fed2 eral, State, and local law enforcement

3 and regulatory agencies and the fire4 arm industry to curb firearm-related

5 crime and illegal firearm trafficking.

6 (ii) OUTREACH.—In implementing

7 clause (i), the Attorney General and the

8 Secretary shall concentrate on outreach

9 with—

10 (I) firearm manufacturers and

11 importers that have agreed to partici12 pate as a pilot site for the National

13 Integrated Ballistics Information Net14 work;

15 (II) firearm manufacturers and

16 importers that manufacture or import

17 more than 1,000 firearms per year, as

18 reported in the Bureau of Alcohol, To19 bacco and Firearms Annual Firearms

20 Manufacturing and Export Report, or

21 as determined from information ob22 tained in annual regulatory inspection

23 audits conducted by the Secretary;

24 and
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1 (III) firearm manufacturers and

2 importers that have a policy that re3 quires the test firing of all firearms

4 prior to transfer.

5 (iii) ANNUAL REPORTS.—Not later

6 than 1 year after the effective date of this

7 section and annually thereafter, the Sec8 retary and the Attorney General shall sub9 mit to the Committees on the Judiciary of

10 the House of Representatives and the Sen11 ate a report containing—

12 (I) a statement of the number of

13 firearm manufacturers and importers

14 and other representatives of the fire15 arm industry participating in the out16 reach effort under this subparagraph;

17 (II) the number and type of per18 sonnel of the Bureau of Alcohol, To19 bacco and Firearms and the Depart20 ment of Justice hired or assigned to

21 carry out this subparagraph;

22 (III) a summary of the activities

23 established by firearm manufacturers

24 and importers as a result of their par-
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1 ticipation in the outreach effort under

2 this subparagraph;

3 (IV) an evaluation of any

4 changes in firearm-related crime per5 taining to particular types of firearms

6 manufactured by a firearm manufac7 turer or importer that is an active

8 participant in the outreach effort

9 under this subparagraph;

10 (V) the volume of forensic ballis11 tics records compiled as a result of

12 the mandatory forensic ballistics test13 ing by participating firearm manufac14 turers and importers;

15 (VI) for each firearm manufac16 turer and firearm importer, the num17 ber of times a tracing request based

18 on forensic ballistics analysis resulted

19 in the identification of a firearm man20 ufactured or imported by the firearm

21 manufacturer or firearm importer;

22 and

23 (VII) an evaluation of the man24 ner in which the implementation of fo25 rensic ballistics testing affected the
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1 volume of production or importation

2 of firearms by participating firearm

3 manufacturers and firearm importers.

4 (iv) AUTHORIZATION OF APPROPRIA5 TIONS.—There is authorized to be appropriated

6 to carry out this subparagraph, $38,306,000

7 for each of fiscal years 2002 through 2005, in8 cluding funding for—

9 (I) installation of forensic ballis10 tics equipment and bullet recovery

11 equipment;

12 (II) establishment of regional

13 centers for firearm testing;

14 (III) salaries and expenses of

15 necessary personnel; and

16 (IV) research and evaluation.

17 (E) REPORT.—Not later than 1 year after

18 the date of enactment of this paragraph, the

19 Attorney General and the Secretary of the

20 Treasury shall submit to the Committees on

21 Appropriations of the House of Representatives

22 and the Senate a report, which shall include an

23 analysis of—

24 (i) the capacity to provide the online

25 access required under subparagraph
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1 (B)(ii), and the process by which the on2 line access will be implemented; and

3 (ii) any future technical or legal

4 changes that may be required to make on5 line access available, including estimates of

6 the costs of making those changes.

7 Subtitle F—Miscellaneous

8 SEC. 11501. STUDY OF MARKETING PRACTICES OF THE

9 FIREARMS INDUSTRY.

10 (a) IN GENERAL.—The Federal Trade Commission

11 and the Attorney General shall jointly conduct a study of

12 the marketing practices of the firearms industry, with re13 spect to minors.

14 (b) ISSUES EXAMINED.—In conducting the study

15 under subsection (a), the Commission and the Attorney

16 General shall examine the extent to which the firearms

17 industry advertises and promotes its products to minors,

18 including in media outlets in which minors comprise a sub19 stantial percentage of the audience.

20 (c) REPORT.—Not later than 1 year after the date

21 of enactment of this Act, the Commission and the Attor22 ney General shall submit to Congress a report on the

23 study conducted under subsection (a).
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1 SEC. 11502. REGULATION OF INTERNET FIREARMS TRANS2 FERS.

3 (a) PROHIBITIONS.—Section 922 of title 18, United

4 States Code (as amended by section 11101), is amended

5 by inserting after subsection (z) the following:

6 ‘‘(aa) REGULATION OF INTERNET FIREARMS TRANS7 FERS.—

8 ‘‘(1) IN GENERAL.—It shall be unlawful for any

9 person to operate an Internet website, if a purpose

10 of the website is to offer 1 or more firearms for sale

11 or exchange, or is to otherwise facilitate the sale or

12 exchange of 1 or more firearms posted or listed on

13 the website, unless—

14 ‘‘(A) the person is licensed as a manufac15 turer, importer, or dealer under section 923;

16 ‘‘(B) the person notifies the Secretary of

17 the Internet address of the website, and any

18 other information concerning the website as the

19 Secretary may require by regulation; and

20 ‘‘(C) if any firearm posted or listed for sale

21 or exchange on the website is not from the busi22 ness inventory or personal collection of that

23 person—

24 ‘‘(i) the person, as a term or condition

25 for posting or listing the firearm for sale

26 or exchange on the website on behalf of a
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1 prospective transferor, requires that, in the

2 event of any agreement to sell or exchange

3 the firearm pursuant to that posting or

4 listing, the firearm be transferred to that

5 person for disposition in accordance with

6 clause (iii);

7 ‘‘(ii) the person prohibits the posting

8 or listing on the website of any information

9 (including any name, nickname, telephone

10 number, address, or electronic mail ad11 dress) that is reasonably likely to enable

12 the prospective transferor and prospective

13 transferee to contact one another directly

14 prior to the shipment of the firearm to

15 that person under clause (i), except that

16 this clause does not include any informa17 tion relating solely to the manufacturer,

18 importer, model, caliber, gauge, physical

19 attributes, operation, performance, or price

20 of the firearm; and

21 ‘‘(iii) with respect to each firearm re22 ceived from a prospective transferor under

23 clause (i), the person—

24 ‘‘(I) enters such information

25 about the firearm as the Secretary
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1 may require by regulation into a sepa2 rate bound record;

3 ‘‘(II) in transferring the firearm

4 to any transferee, complies with the

5 requirements of this chapter as if the

6 firearm were being transferred from

7 the business inventory of that person;

8 and

9 ‘‘(III) if the prospective trans10 feror does not provide the person with

11 a certified copy of a valid firearms li12 cense issued to the prospective trans13 feror under this chapter, submits to

14 the Secretary a report of the transfer

15 or other disposition of the firearm on

16 a form specified by the Secretary,

17 which report shall not include the

18 name of, or any other identifying in19 formation relating to, the transferor.

20 ‘‘(2) TRANSFERS BY PERSONS OTHER THAN LI21 CENSEES.—It shall be unlawful for any person who

22 is not licensed under section 923 to transfer a fire23 arm pursuant to a posting or listing of the firearm

24 for sale or exchange on an Internet website de-
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1 scribed in paragraph (1) to any person other than

2 the operator of the website.’’.

3 (b) PENALTIES.—Section 924(a) of title 18, United

4 States Code (as amended by section 11001), is amended

5 by adding at the end the following:

6 ‘‘(9) Whoever willfully violates section

7 922(aa)(2) shall be fined under this title, imprisoned

8 not more than 2 years, or both.’’.

9 SEC. 11503. REDUCTION OF GUN TRAFFICKING.

10 (a) PROHIBITION AGAINST MULTIPLE HANDGUN

11 SALES OR PURCHASES.—Section 922 of title 18, United

12 States Code (as amended by sections 11101 and 11502),

13 is amended by inserting after subsection (aa) the fol14 lowing:

15 ‘‘(bb) PROHIBITION AGAINST MULTIPLE HANDGUN

16 SALES OR PURCHASES.—

17 ‘‘(1) IN GENERAL.—It shall be unlawful for any

18 licensed dealer—

19 ‘‘(A) during any 30-day period, to sell 2 or

20 more handguns to an individual who is not li21 censed under section 923; or

22 ‘‘(B) to sell a handgun to an individual

23 who is not licensed under section 923 and who

24 purchased a handgun during the 30-day period

25 ending on the date of the sale.
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1 ‘‘(2) TIME LIMITATION.—It shall be unlawful

2 for any individual who is not licensed under section

3 923 to purchase 2 or more handguns during any 30-

4 day period.

5 ‘‘(3) EXCHANGES.—Paragraph (1) does not

6 apply to an exchange of 1 handgun for 1 handgun.’’.

7 (b) PENALTIES.—Section 924(a)(2) of title 18,

8 United States Code, is amended by striking ‘‘or (o)’’ and

9 inserting ‘‘(o), or (bb)’’.

10 (c) DEADLINES FOR DESTRUCTION OF RECORDS RE11 LATED TO CERTAIN FIREARMS TRANSFERS.—

12 (1) HANDGUN TRANSFERS SUBJECT TO THE

13 WAITING PERIOD.—Section 922(s)(6)(B)(i) of title

14 18, United States Code, is amended by striking ‘‘20

15 business days’’ and inserting ‘‘35 calendar days’’.

16 (2) FIREARMS TRANSFERS SUBJECT TO IN17 STANT CHECK.—Section 922(t)(2)(C) of title 18,

18 United States Code, is amended by inserting ‘‘not

19 later than 35 calendar days after the date the sys20 tem provides the licensee with the number,’’ before

21 ‘‘destroy’’.

22 (d) REVISED DEFINITION.—Section 921(a)(21)(C) of

23 title 18, United States Code, is amended by inserting ‘‘,

24 except that such term shall include any person who trans-
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1 fers more than 1 handgun in any 30-day period to a per2 son who is not a licensed dealer’’ before the semicolon.

3 TITLE XII—MISCELLANEOUS

4 SEC. 12001. ADVISORY COMMITTEE ON PRIVATE SECTOR

5 SUPPORT FOR CHILDREN AND FAMILIES.

6 (a) ESTABLISHMENT.—Not later than 6 months after

7 the date of enactment of this Act, the Secretary of Health

8 and Human Services (in this section referred to as the

9 ‘‘Secretary’’) shall establish an advisory committee to be

10 known as the ‘‘Advisory Committee on Private Sector Sup11 port for Children and Families’’ (in this section referred

12 to as the ‘‘Committee’’) that shall review, highlight and

13 promote the private sector policies and practices that will

14 best create family-friendly workplaces and allow parents

15 to succeed at work and at home.

16 (b) DUTIES.—The Committee shall—

17 (1) solicit advice and recommendations con18 cerning employer and community efforts that are de19 signed to assist parents caring for their children and

20 ensure that every child residing in the United States

21 has a healthy start, a head start, a fair start, and

22 a safe start in life and successful passage to adult23 hood;

24 (2) review and consider the full range of private

25 sector family-centered efforts, including flexibility in
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1 the workplace, family and medical leave policies, em2 ployer sponsored health care and child care services,

3 parent support centers, and literacy training; and

4 (3) prepare and submit the report required

5 under subsection (d).

6 (c) MEMBERSHIP.—The Committee shall—

7 (1) be appointed by the Secretary in consulta8 tion with the Secretary of the Treasury, the Sec9 retary of Labor, and the Secretary of Education;

10 and

11 (2) consist of representatives of children and

12 family advocates, business groups, labor organiza13 tions, faith-based institutions, and charitable foun14 dations.

15 (d) REPORT.—

16 (1) SECRETARY.—Not later than 18 months

17 after the date of enactment of this Act, the Com18 mittee shall submit to the Secretary a report that

19 contains the Committee’s findings and recommenda20 tions resulting from carrying out the duties required

21 under subsection (b), together with recommendations

22 for such legislation and administrative actions as the

23 Committee considers appropriate.

24 (2) CONGRESS.—The Secretary shall transmit

25 copies of the report to the Committee on Health,
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1 Education, Labor, and Pensions and the Committee

2 on Finance of the Senate and the Committee on

3 Education and the Workforce, the Committee on

4 Energy and Commerce, and the Committee on Ways

5 and Means of the House of Representatives.

6 SEC. 12002. IMPROVEMENT OF DATA COLLECTION AND RE7 PORTING REGARDING CHILDREN AND FAMI8 LIES.

9 (a) REPORT ON ECONOMIC WELL-BEING OF CUR10 RENT AND FORMER TANF FAMILIES.—

11 (1) ANNUAL REPORT TO CONGRESS.—Section

12 411(b) of the Social Security Act (42 U.S.C. 611(b))

13 is amended—

14 (A) in paragraph (3), by striking ‘‘and’’ at

15 the end;

16 (B) in paragraph (4), by striking the pe17 riod and inserting ‘‘; and’’; and

18 (C) by adding at the end the following new

19 paragraph:

20 ‘‘(5) the economic well-being of children and

21 families receiving assistance under the State pro22 grams funded under this part and of children and

23 families that have ceased to receive such assistance,

24 using longitudinal matched data gathered from fed25 erally supported programs, and including State-by-
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1 State data that details the distribution of earnings

2 and stability of employment of such families and (to

3 the extent feasible) describes, with respect to such

4 families, the distribution of income from known

5 sources (including employer-reported wages, assist6 ance under the State program funded under this

7 part, and benefits under the food stamp program),

8 the ratio of such families’ income to the poverty line,

9 and the extent to which such families receive or re10 ceived noncash benefits and child care assistance.’’.

11 (2) CONFORMING AMENDMENTS.—Section

12 411(a) of the Social Security Act (42 U.S.C. 611(a))

13 is amended—

14 (A) by redesignating paragraph (7) as

15 paragraph (8); and

16 (B) by inserting after paragraph (6), the

17 following new paragraph:

18 ‘‘(7) REPORT ON ECONOMIC WELL-BEING OF

19 CURRENT AND FORMER RECIPIENTS.—The report

20 required by paragraph (1) for a fiscal quarter shall

21 include for that quarter such information as the Sec22 retary may specify in order for the Secretary to in23 clude in the annual reports to Congress required

24 under subsection (b) the information described in

25 paragraph (5) of that subsection.’’.
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1 (b) REPORT ON DATA FROM STATE STUDIES RE2 GARDING FORMER TANF AND FOOD STAMP RECIPI3 ENTS.—Section 413 of the Social Security Act (42 U.S.C.

4 613) is amended by adding at the end the following new

5 subsection:

6 ‘‘(k) REPORT ON STATUS OF FORMER RECIPIENTS

7 OF ASSISTANCE AND FOOD STAMP BENEFITS.—Not later

8 than 6 months after the date of enactment of the Leave

9 No Child Behind Act of 2001, the Secretary shall compile

10 and report to Congress data from existing State-level stud11 ies funded (in whole or in part) by the Secretary on the

12 extent of employment, receipt of non-cash benefits, occur13 rence of extreme poverty, and hardship among previous

14 recipients of assistance under the State program funded

15 under this part and benefits under the food stamp pro16 gram.’’.

Æ