II 

Calendar No. 199 

109TH CONGRESS 

1ST SESSION S. 525 

[Report No. 109–130] 

To amend the Child Care and Development Block Grant Act of 1990 to 

reauthorize the Act, to improve early learning opportunities and promote 

school preparedness, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 3, 2005 

Mr. ALEXANDER (for himself, Mr. DODD, Mr. ENZI, Mr. KENNEDY, Mr. 

HATCH, Mr. ROBERTS, and Mr. DEWINE) introduced the following bill; 

which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

AUGUST 31, 2005 

Reported under authority of the order of the Senate of July 29, 2005, by Mr. 

ENZI, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To amend the Child Care and Development Block Grant 

Act of 1990 to reauthorize the Act, to improve early 

learning opportunities and promote school preparedness, 

and for other purposes. 

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

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

3 ‘‘Caring for Children Act of 2005’’. 

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

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT 

OF 1990 

Sec. 101. Short title and goals. 

Sec. 102. Authorization of appropriations. 

Sec. 103. Lead agency. 

Sec. 104. State plan. 

Sec. 105. Activities to improve the quality of child care. 

Sec. 106. Optional priority use of additional funds. 

Sec. 107. Reporting requirements. 

Sec. 108. National activities. 

Sec. 109. Allocation of funds for Indian tribes, quality improvement, and a hotline. 

Sec. 110. Definitions. 

Sec. 111. Rules of construction. 

TITLE II—ENHANCING SECURITY AT CHILD CARE CENTERS IN 

FEDERAL FACILITIES 

Sec. 201. Definitions. 

Sec. 202. Enhancing security. 

TITLE III—REMOVAL OF BARRIERS TO INCREASING THE SUPPLY 

OF QUALITY CHILD CARE 

Sec. 301. Small business child care grant program. 

6 TITLE I—CHILD CARE AND DE7 VELOPMENT BLOCK GRANT 

8 ACT OF 1990 

9 SEC. 101. SHORT TITLE AND GOALS. 

10 (a) HEADING.—Section 658A of the Child Care and 

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

12 note) is amended by striking the section heading and in13 serting the following: 
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1 ‘‘SEC. 658A. SHORT TITLE AND GOALS.’’. 

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

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

4 note) is amended— 

5 (1) in paragraph (3), by striking ‘‘encourage’’ 

6 and inserting ‘‘assist’’; 

7 (2) in paragraph (4), by striking ‘‘parents’’ and 

8 all that follows and inserting ‘‘low-income working 

9 parents;’’; 

10 (3) by redesignating paragraph (5) as para11 graph (8); and 

12 (4) by inserting after paragraph (4) the fol13 lowing: 

14 ‘‘(5) to assist States in improving the quality of 

15 child care available to families; 

16 ‘‘(6) to promote school preparedness by encour17 aging children, families, and caregivers to engage in 

18 developmentally appropriate and age-appropriate ac19 tivities in child care settings that will— 

20 ‘‘(A) improve the children’s social, emo21 tional, and behavioral skills; and 

22 ‘‘(B) foster their early cognitive, pre-read23 ing, and language development, and 

24 prenumeracy and mathematics skills; 
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1 ‘‘(7) to promote parental and family involve2 ment in the education of young children in child care 

3 settings; and’’. 

4 SEC. 102. AUTHORIZATION OF APPROPRIATIONS. 

5 Section 658B of the Child Care and Development 

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

7 by striking ‘‘subchapter’’ and all that follows and inserting 

8 ‘‘subchapter $2,300,000,000 for fiscal year 2006, 

9 $2,500,000,000 for fiscal year 2007, $2,700,000,000 for 

10 fiscal year 2008, $2,900,000,000 for fiscal year 2009, and 

11 $3,100,000,000 for fiscal year 2010.’’. 

12 SEC. 103. LEAD AGENCY. 

13 Section 658D(a) of the Child Care and Development 

14 Block Grant Act of 1990 (42 U.S.C. 9858b(a)) is amend15 ed by striking ‘‘designate’’ and all that follows and insert16 ing ‘‘designate an agency (which may be an appropriate 

17 collaborative agency), or establish a joint interagency of18 fice, that complies with the requirements of subsection (b) 

19 to serve as the lead agency for the State under this sub20 chapter.’’. 

21 SEC. 104. STATE PLAN. 

22 (a) LEAD AGENCY.—Section 658E(c)(1) of the Child 

23 Care and Development Block Grant Act of 1990 (42 

24 U.S.C. 9858c(c)(1)) is amended by striking ‘‘designated’’ 

25 and inserting ‘‘designated or established’’. 
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1 (b) POLICIES AND PROCEDURES.—Section 

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

3 Grant Act of 1990 (42 U.S.C. 9858c(c)(2)) is amended— 

4 (1) in subparagraph (A)(i)(II), by striking ‘‘sec5 tion 658P(2)’’ and inserting ‘‘section 658T(2)’’; 

6 (2) by striking subparagraph (D) and inserting 

7 the following: 

8 ‘‘(D) CONSUMER AND CHILD CARE PRO9 VIDER EDUCATION INFORMATION.—Certify that 

10 the State will— 

11 ‘‘(i) collect and disseminate, through 

12 resource and referral services and other 

13 means as determined by the State, to par14 ents of eligible children, child care pro15 viders, and the general public, information 

16 regarding— 

17 ‘‘(I) the promotion of informed 

18 child care choices, including informa19 tion about the quality and availability 

20 of child care services; 

21 ‘‘(II) research and best practices 

22 concerning children’s development, in23 cluding early cognitive development; 

24 ‘‘(III) the availability of assist25 ance to obtain child care services; and 
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1 ‘‘(IV) other programs for which 

2 families that receive child care serv3 ices for which financial assistance is 

4 provided under this subchapter may 

5 be eligible, including the food stamp 

6 program established under the Food 

7 Stamp Act of 1977 (7 U.S.C. 2011 et 

8 seq.), the special supplemental nutri9 tion program for women, infants, and 

10 children established by section 17 of 

11 the Child Nutrition Act of 1966 (42 

12 U.S.C. 1786), the child and adult care 

13 food program established under sec14 tion 17 of the Richard B. Russell Na15 tional School Lunch Act (42 U.S.C. 

16 1766), and the medicaid and State 

17 children’s health insurance programs 

18 under titles XIX and XXI of the So19 cial Security Act (42 U.S.C. 1396 et 

20 seq. and 1397aa et seq.); and 

21 ‘‘(ii) report to the Secretary the man22 ner in which the consumer education infor23 mation described in clause (i) was provided 

24 to parents and the number of parents to 

25 whom such consumer education informa-
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1 tion was provided, during the period of the 

2 previous State plan.’’; 

3 (3) by striking subparagraph (E) and inserting 

4 the following: 

5 ‘‘(E) COMPLIANCE WITH STATE AND TRIB6 AL LICENSING REQUIREMENTS.— 

7 ‘‘(i) IN GENERAL.—Certify that the 

8 State (or the Indian tribe or tribal organi9 zation) involved has in effect licensing re10 quirements applicable to child care services 

11 provided within the State (or area served 

12 by the tribe or organization), and provide 

13 a detailed description of such requirements 

14 and of how such requirements are effec15 tively enforced. 

16 ‘‘(ii) CONSTRUCTION.—Nothing in 

17 clause (i) shall be construed to require that 

18 licensing requirements be applied to spe19 cific types of providers of child care serv20 ices.’’; 

21 (4) in subparagraph (F)— 

22 (A) in the first sentence, by striking ‘‘with23 in the State, under State or local law,’’ and in24 serting ‘‘within the State (or area served by the 
8 

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1 Indian tribe or tribal organization), under State 

2 or local law (or tribal law),’’; and 

3 (B) in the second sentence, by striking 

4 ‘‘State or local law’’ and inserting ‘‘State or 

5 local law (or tribal law)’’; and 

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

7 ‘‘(I) PROTECTION FOR WORKING PAR8 ENTS.— 

9 ‘‘(i) REDETERMINATION PROCESS.— 

10 Describe the procedures and policies that 

11 are in place to ensure that working parents 

12 (especially parents in families receiving as13 sistance under a State program funded 

14 under part A of title IV of the Social Secu15 rity Act (42 U.S.C. 601 et seq.)) are not 

16 required to unduly disrupt their employ17 ment in order to comply with the State’s 

18 requirements for redetermination of eligi19 bility for assistance under this subchapter. 

20 ‘‘(ii) MINIMUM PERIOD.—Dem21 onstrate that each child that receives as22 sistance under this subchapter in the State 

23 will receive such assistance for not less 

24 than 6 months before the State redeter25 mines the eligibility of the child under this 
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1 subchapter, except as provided in clause 

2 (iii). 

3 ‘‘(iii) PERIOD BEFORE TERMI4 NATION.—At the option of the State, dem5 onstrate that the State will not terminate 

6 assistance under this subchapter based on 

7 a parent’s loss of work or cessation of at8 tendance at a job training or educational 

9 program for which the family was receiving 

10 the assistance, without continuing the as11 sistance for a reasonable period of time, of 

12 not less than 1 month, after such loss or 

13 cessation in order for the parent to engage 

14 in a job search and resume work, or re15 sume attendance of a job training or edu16 cational program, as soon as possible. 

17 ‘‘(J) COORDINATION WITH OTHER PRO18 GRAMS.—Describe how the State, in order to 

19 expand accessibility and continuity of quality 

20 early care and early education, will coordinate 

21 the early childhood education activities assisted 

22 under this subchapter with— 

23 ‘‘(i) programs carried out under the 

24 Head Start Act (42 U.S.C. 9831 et seq.), 

25 including the Early Head Start programs 
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1 carried out under section 645A of that Act 

2 (42 U.S.C. 9840a); 

3 ‘‘(ii)(I) Early Reading First and Even 

4 Start programs carried out under subparts 

5 2 and 3 of part B of title I of the Elemen6 tary and Secondary Education Act of 1965 

7 (20 U.S.C. 6371 et seq., 6381 et seq.); 

8 ‘‘(II) other preschool programs carried 

9 out under title I of that Act (20 U.S.C. 

10 6301 et seq.); and 

11 ‘‘(III) the Ready-to-Learn Television 

12 program carried out under subpart 3 of 

13 part D of title II of the Elementary and 

14 Secondary Education Act of 1965 (20 

15 U.S.C. 6775 et seq.); 

16 ‘‘(iii) programs carried out under sec17 tion 619 and part C of the Individuals 

18 with Disabilities Education Act; 

19 ‘‘(iv) State prekindergarten programs; 

20 and 

21 ‘‘(v) other early childhood education 

22 programs. 

23 ‘‘(K) TRAINING IN EARLY LEARNING AND

24 CHILDHOOD DEVELOPMENT.—Describe any 

25 training requirements that are in effect within 
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1 the State that are designed to enable child care 

2 providers to promote the social, emotional, 

3 physical, and cognitive development of children 

4 and that are applicable to child care providers 

5 that provide services for which assistance is 

6 made available under this subchapter in the 

7 State. 

8 ‘‘(L) PUBLIC-PRIVATE PARTNERSHIPS.— 

9 Demonstrate how the State is encouraging 

10 partnerships among State agencies, other public 

11 agencies, and private entities, to leverage exist12 ing service delivery systems (as of the date of 

13 submission of the State plan) for early child14 hood education and to increase the supply and 

15 quality of child care services for children who 

16 are less than 13 years of age. 

17 ‘‘(M) ACCESS TO CARE FOR CERTAIN POP18 ULATIONS.—Demonstrate how the State is ad19 dressing the child care needs of parents eligible 

20 for child care services for which assistance is 

21 provided under this subchapter, who have chil22 dren with special needs, work nontraditional 

23 hours, or require child care services for infants 

24 and toddlers. 
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1 ‘‘(N) COORDINATION WITH TITLE IV OF

2 THE SOCIAL SECURITY ACT.—Describe how the 

3 State will inform parents receiving assistance 

4 under a State program funded under part A of 

5 title IV of the Social Security Act (42 U.S.C. 

6 601 et seq.) and low-income parents about eligi7 bility for assistance under this subchapter.’’. 

8 (c) USE OF BLOCK GRANT FUNDS.—Section 

9 658E(c)(3) the Child Care and Development Block Grant 

10 Act of 1990 (42 U.S.C. 9858c(c)(3)) is amended— 

11 (1) in subparagraph (A), by striking ‘‘as re12 quired under’’ and inserting ‘‘in accordance with’’; 

13 and 

14 (2) in subparagraph (B)— 

15 (A) by striking ‘‘The State’’ and inserting 

16 the following: 

17 ‘‘(i) IN GENERAL.—The State’’; 

18 (B) in clause (i) (as designated in subpara19 graph (A)), by striking ‘‘appropriate to realize 

20 any of the goals specified in paragraphs (2) 

21 through (5) of section 658A(b)’’ and inserting 

22 ‘‘appropriate (which may include an activity de23 scribed in clause (ii)) to realize any of the goals 

24 specified in paragraphs (2) through (8) of sec25 tion 658A(b)’’; and 
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1 (C) by adding at the end the following: 

2 ‘‘(ii) CHILD CARE RESOURCE AND RE3 FERRAL SYSTEM.—A State may use 

4 amounts described in clause (i) to establish 

5 or support a system of local child care re6 source and referral organizations coordi7 nated, to the extent determined appro8 priate by the State, by a statewide private, 

9 nonprofit, community-based lead child care 

10 resource and referral organization. The 

11 local child care resource and referral orga12 nizations shall— 

13 ‘‘(I) provide parents in the State 

14 with information, and consumer edu15 cation, concerning the full range of 

16 child care options, including child care 

17 provided during nontraditional hours 

18 and through emergency child care 

19 centers, in their communities; 

20 ‘‘(II) collect and analyze data on 

21 the supply of and demand for child 

22 care in political subdivisions within 

23 the State; 
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1 ‘‘(III) submit reports to the State 

2 containing data and analysis described 

3 in clause (II); and 

4 ‘‘(IV) work to establish partner5 ships with public agencies and private 

6 entities to increase the supply and 

7 quality of child care services.’’. 

8 (d) DIRECT SERVICES.—Section 658E(c)(3) of the 

9 Child Care and Development Block Grant Act of 1990 (42 

10 U.S.C. 9858c(c)(3)) is amended— 

11 (1) in subparagraph (A), by striking ‘‘(D)’’ and 

12 inserting ‘‘(E)’’; and 

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

14 ‘‘(E) DIRECT SERVICES.—From amounts 

15 provided to a State for a fiscal year to carry 

16 out this subchapter, the State shall— 

17 ‘‘(i) reserve the minimum amount re18 quired to be reserved under section 658G, 

19 and the funds for costs described in sub20 paragraph (C); and 

21 ‘‘(ii) from the remainder, use not less 

22 than 70 percent to fund direct services (as 

23 defined by the State).’’. 
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1 (e) PAYMENT RATES.—Section 658E(c)(4) of the 

2 Child Care and Development Block Grant Act of 1990 (42 

3 U.S.C. 9858c(c)(4)) is amended— 

4 (1) in subparagraph (A), by striking ‘‘The 

5 State plan’’ and all that follows and inserting the 

6 following: 

7 ‘‘(i) SURVEY.—The State plan shall— 

8 ‘‘(I) demonstrate that the State 

9 has, after consulting with local area 

10 child care program administrators, de11 veloped and conducted a statistically 

12 valid and reliable survey of the market 

13 rates for child care services in the 

14 State (that reflects variations in the 

15 cost of child care services by geo16 graphic area, type of provider, and 

17 age of child) within the 2 years pre18 ceding the date of the submission of 

19 the application containing the State 

20 plan; 

21 ‘‘(II) detail the results of the 

22 State market rates survey conducted 

23 pursuant to subclause (I); 

24 ‘‘(III) describe how the State will 

25 provide for timely payment for child 
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1 care services, and set payment rates 

2 for child care services, for which as3 sistance is provided under this sub4 chapter in accordance with the results 

5 of the market rates survey conducted 

6 pursuant to subclause (I) without re7 ducing the number of families in the 

8 State receiving such assistance under 

9 this subchapter, relative to the num10 ber of such families on the date of in11 troduction of the Caring for Children 

12 Act of 2005; and 

13 ‘‘(IV) describe how the State will, 

14 not later than 30 days after the com15 pletion of the survey described in sub16 clause (I), make the results of the 

17 survey widely available through public 

18 means, including posting the results 

19 on the Internet. 

20 ‘‘(ii) EQUAL ACCESS.—The State plan 

21 shall include a certification that the pay22 ment rates are sufficient to ensure equal 

23 access for eligible children to child care 

24 services comparable to child care services 

25 in the State or substate area that are pro-
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1 vided to children whose parents are not eli2 gible to receive child care assistance under 

3 any Federal or State program.’’; and 

4 (2) in subparagraph (B)— 

5 (A) by striking ‘‘Nothing’’ and inserting 

6 the following: 

7 ‘‘(i) NO PRIVATE RIGHT OF ACTION.— 

8 Nothing’’; and 

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

10 ‘‘(ii) NO PROHIBITION OF CERTAIN

11 DIFFERENT RATES.—Nothing in this sub12 chapter shall be construed to prevent a 

13 State from differentiating the payment 

14 rates described in subparagraph (A) on the 

15 basis of— 

16 ‘‘(I) geographic location of child 

17 care providers (such as location in an 

18 urban or rural area); 

19 ‘‘(II) the age or particular needs 

20 of children (such as children with spe21 cial needs and children served by child 

22 protective services); 

23 ‘‘(III) whether the providers pro24 vide child care during weekend and 

25 other nontraditional hours; and 
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1 ‘‘(IV) the State’s determination 

2 that such differentiated payment rates 

3 are needed to enable a parent to 

4 choose child care that the parent be5 lieves to be of high quality.’’. 

6 SEC. 105. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD 

7 CARE. 

8 Section 658G of the Child Care and Development 

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

10 to read as follows: 

11 ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF 

12 CHILD CARE. 

13 ‘‘(a) IN GENERAL.— 

14 ‘‘(1) RESERVATION.—Each State that receives 

15 funds to carry out this subchapter for a fiscal year 

16 shall reserve and use not less than 6 percent of the 

17 funds for activities provided directly, or through 

18 grants or contracts with resource and referral orga19 nizations or other appropriate entities, that are de20 signed to improve the quality of child care services. 

21 ‘‘(2) ACTIVITIES.—The funds reserved under 

22 paragraph (1) may only be used to— 

23 ‘‘(A) develop and implement voluntary 

24 guidelines on pre-reading and language skills 

25 and activities, and prenumeracy and mathe-
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1 matics skills and activities, for child care pro2 grams in the State, that are aligned with State 

3 standards for kindergarten through grade 12 or 

4 the State’s general goals for school prepared5 ness; 

6 ‘‘(B) support activities and provide tech7 nical assistance in Federal, State, and local 

8 child care settings to enhance early learning for 

9 preschool and school-aged children, to promote 

10 literacy, to foster school preparedness, and to 

11 support later school success; 

12 ‘‘(C) offer training, professional develop13 ment, and educational opportunities for child 

14 care providers that relate to the use of develop15 mentally appropriate and age-appropriate cur16 ricula, and early childhood teaching strategies, 

17 that are scientifically based and aligned with 

18 the social, emotional, physical, and cognitive de19 velopment of children, including— 

20 ‘‘(i) developing and operating distance 

21 learning child care training infrastructures; 

22 ‘‘(ii) developing model technology23 based training courses; 

24 ‘‘(iii) offering training for caregivers 

25 in informal child care settings; and 
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1 ‘‘(iv) offering training for child care 

2 providers who care for infants and toddlers 

3 and children with special needs. 

4 ‘‘(D) engage in programs designed to in5 crease the retention and improve the com6 petencies of child care providers, including wage 

7 incentive programs and initiatives that establish 

8 tiered payment rates for providers that meet or 

9 exceed child care services guidelines, as defined 

10 by the State; 

11 ‘‘(E) evaluate and assess the quality and 

12 effectiveness of child care programs and serv13 ices offered in the State to young children on 

14 improving overall school preparedness; and 

15 ‘‘(F) carry out other activities determined 

16 by the State to improve the quality of child care 

17 services provided in the State and for which 

18 measurement of outcomes relating to improved 

19 child safety, child well-being, or school pre20 paredness is possible. 

21 ‘‘(b) CERTIFICATION.—Beginning with fiscal year 

22 2006, the State shall annually submit to the Secretary a 

23 certification in which the State certifies that the State was 

24 in compliance with subsection (a) during the preceding fis25 cal year and describes how the State used funds made 
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1 available to carry out this subchapter to comply with sub2 section (a) during that preceding fiscal year. 

3 ‘‘(c) STRATEGY.—The State shall annually submit to 

4 the Secretary— 

5 ‘‘(1) beginning with fiscal year 2006, an outline 

6 of the strategy the State will implement during that 

7 fiscal year to address the quality of child care serv8 ices for which financial assistance is made available 

9 under this subchapter, including— 

10 ‘‘(A) a statement specifying how the State 

11 will address the activities carried out under sub12 section (a); 

13 ‘‘(B) a description of quantifiable, objective 

14 measures that the State will use to evaluate the 

15 State’s progress in improving the quality of the 

16 child care services (including measures regard17 ing the impact, if any, of State efforts to im18 prove the quality by increasing payment rates, 

19 as defined in section 658H(c)), evaluating sepa20 rately the impact of the activities listed in each 

21 of such subparagraphs on the quality of the 

22 child care services; and 

23 ‘‘(C) a list of State-developed child care 

24 services quality targets quantified for such fis25 cal year for such measures; and 
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1 ‘‘(2) beginning with fiscal year 2007, a report 

2 on the State’s progress in achieving such targets for 

3 the preceding fiscal year. 

4 ‘‘(d) IMPROVEMENT PLAN.—If the Secretary deter5 mines that a State failed to make progress as described 

6 in subsection (c)(2) for a fiscal year— 

7 ‘‘(1) the State shall submit an improvement 

8 plan that describes the measures the State will take 

9 to make that progress; and 

10 ‘‘(2) the State shall comply with the improve11 ment plan by a date specified by the Secretary but 

12 not later than 1 year after the date of the deter13 mination. 

14 ‘‘(e) CONSTRUCTION.—Nothing in this subchapter 

15 shall be construed to require that the State apply meas16 ures for evaluating quality of child care services to specific 

17 types of child care providers.’’. 

18 SEC. 106. OPTIONAL PRIORITY USE OF ADDITIONAL FUNDS. 

19 The Child Care and Development Block Grant Act 

20 of 1990 is amended by inserting after section 658G (42 

21 U.S.C. 9858e) the following: 

22 ‘‘SEC. 658H. OPTIONAL PRIORITY USE OF ADDITIONAL 

23 FUNDS. 

24 ‘‘(a) IN GENERAL.—If a State receives funds to carry 

25 out this subchapter for a fiscal year, and the amount of 
23 

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1 the funds exceeds the amount of funds the State received 

2 to carry out this subchapter for fiscal year 2005, the State 

3 shall consider using a portion of the excess— 

4 ‘‘(1) to support payment rate increases in ac5 cordance with the market rate survey conducted pur6 suant to section 658E(c)(4); 

7 ‘‘(2) to support the establishment of tiered pay8 ment rates as described in section 658G(a)(2)(D); 

9 and 

10 ‘‘(3) to support payment rate increases for care 

11 for children in communities served by local edu12 cational agencies that have been identified for im13 provement under section 1116(c)(3) of the Elemen14 tary and Secondary Education Act of 1965 (20 

15 U.S.C. 6316(c)(3)). 

16 ‘‘(b) NO REQUIREMENT TO REDUCE CHILD CARE

17 SERVICES.—Nothing in this section shall be construed to 

18 require a State to take an action that the State determines 

19 would result in a reduction of child care services to fami20 lies of eligible children. 

21 ‘‘(c) PAYMENT RATE.—In this section, the term ‘pay22 ment rate’ means the rate of State payment or reimburse23 ment to providers for subsidized child care.’’. 
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1 SEC. 107. REPORTING REQUIREMENTS. 

2 (a) HEADING.—Section 658K of the Child Care and 

3 Development Block Grant Act of 1990 (42 U.S.C. 9858i) 

4 is amended by striking the section heading and inserting 

5 the following: 

6 ‘‘SEC. 658K. REPORTS AND AUDITS.’’. 

7 (b) REQUIRED INFORMATION.—Section 658K(a) of 

8 the Child Care and Development Block Grant Act of 1990 

9 (42 U.S.C. 9858i(a)) is amended to read as follows: 

10 ‘‘(a) REPORTS.— 

11 ‘‘(1) IN GENERAL.—A State that receives funds 

12 to carry out this subchapter shall collect the infor13 mation described in paragraph (2) on a monthly 

14 basis. 

15 ‘‘(2) REQUIRED INFORMATION.—The informa16 tion required under this paragraph shall include, 

17 with respect to a family unit receiving assistance 

18 under this subchapter, information concerning— 

19 ‘‘(A) family income; 

20 ‘‘(B) county of residence; 

21 ‘‘(C) the gender, race, and age of children 

22 receiving such assistance; 

23 ‘‘(D) whether the head of the family unit 

24 is a single parent; 

25 ‘‘(E) the sources of family income, includ26 ing— 
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1 ‘‘(i) employment, including self-em2 ployment; and 

3 ‘‘(ii) assistance under a State pro4 gram funded under part A of title IV of 

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

6 seq.) and a State program for which State 

7 spending is counted toward the mainte8 nance of effort requirement under section 

9 409(a)(7) of the Social Security Act (42 

10 U.S.C. 609(a)(7)); 

11 ‘‘(F) the type of child care in which the 

12 child was enrolled (such as family child care, 

13 home care, center-based child care, or other 

14 types of child care described in section 

15 658T(5)); 

16 ‘‘(G) whether the child care provider in17 volved was a relative; 

18 ‘‘(H) the cost of child care for such family, 

19 separately stating the amount of the subsidy 

20 payment of the State and the amount of the co21 payment of the family toward such cost; 

22 ‘‘(I) the average hours per month of such 

23 care; 

24 ‘‘(J) household size; 
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1 ‘‘(K) whether the parent involved reports 

2 that the child has an individualized education 

3 program or an individualized family service 

4 plan, as such terms are defined in section 602 

5 of the Individuals with Disabilities Education 

6 Act; and 

7 ‘‘(L) the reason for any termination of 

8 benefits under this subchapter, including wheth9 er the termination was due to— 

10 ‘‘(i) the child’s age exceeding the al11 lowable limit; 

12 ‘‘(ii) the family income exceeding the 

13 State eligibility limit; 

14 ‘‘(iii) the State recertification or ad15 ministrative requirements not being met; 

16 ‘‘(iv) parent work, training, or edu17 cation status no longer meeting State re18 quirements; 

19 ‘‘(v) a nonincome related change in 

20 status; or 

21 ‘‘(vi) other reasons; 

22 during the period for which such information is re23 quired to be submitted. 

24 ‘‘(3) SUBMISSION TO SECRETARY.—A State de25 scribed in paragraph (1) shall, on a quarterly basis, 
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1 submit to the Secretary the information required to 

2 be collected under paragraph (2) and the number of 

3 children and families receiving assistance under this 

4 subchapter (stated on a monthly basis). Information 

5 on the number of families receiving the assistance 

6 shall also be posted on the website of such State. In 

7 the fourth quarterly report of each year, a State de8 scribed in paragraph (1) shall also submit to the 

9 Secretary information on the annual number and 

10 type of child care providers (as described in section 

11 658T(5)) that received funding under this sub12 chapter and the annual number of payments made 

13 by the State through vouchers, under contracts, or 

14 by payment to parents reported by type of child care 

15 provider. 

16 ‘‘(4) USE OF SAMPLES.— 

17 ‘‘(A) AUTHORITY.—A State may comply 

18 with the requirement to collect the information 

19 described in paragraph (2) through the use of 

20 disaggregated case record information on a 

21 sample of families selected through the use of 

22 scientifically acceptable sampling methods ap23 proved by the Secretary. 

24 ‘‘(B) SAMPLING AND OTHER METHODS.— 

25 The Secretary shall provide the States with 
28 

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1 such case sampling plans and data collection 

2 procedures as the Secretary determines nec3 essary to produce statistically valid samples of 

4 the information described in paragraph (2). The 

5 Secretary may develop and implement proce6 dures for verifying the quality of data sub7 mitted by the States.’’. 

8 (c) PERIOD OF COMPLIANCE AND WAIVERS.— 

9 (1) IN GENERAL.—States shall have 2 years 

10 from the date of enactment of this Act to comply 

11 with the changes to data collection and reporting re12 quired by the amendments made by this section. 

13 (2) WAIVERS.—The Secretary of Health and 

14 Human Services may grant a waiver from paragraph 

15 (1) to States with plans to procure data systems. 

16 SEC. 108. NATIONAL ACTIVITIES. 

17 Section 658L of the Child Care and Development 

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

19 to read as follows: 

20 ‘‘SEC. 658L. NATIONAL ACTIVITIES. 

21 ‘‘(a) REPORT.— 

22 ‘‘(1) IN GENERAL.—The Secretary shall, not 

23 later than April 30, 2006, and annually thereafter, 

24 prepare and submit to the Committee on Education 

25 and the Workforce of the House of Representatives 
29 

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1 and the Committee on Health, Education, Labor, 

2 and Pensions of the Senate, and, not later than 30 

3 days after the date of such submission, post on the 

4 Department of Health and Human Services website, 

5 a report that contains the following: 

6 ‘‘(A) A summary and analysis of the data 

7 and information provided to the Secretary in 

8 the State reports submitted under sections 

9 658E, 658G(c), and 658K. 

10 ‘‘(B) Aggregated statistics on and an anal11 ysis of the supply of, demand for, and quality 

12 of child care, early education, and nonschool13 hour programs. 

14 ‘‘(C) An assessment and, where appro15 priate, recommendations for Congress con16 cerning efforts that should be undertaken to 

17 improve the access of the public to quality and 

18 affordable child care in the United States. 

19 ‘‘(D) A progress report describing the 

20 progress of the States in streamlining data re21 porting, the Secretary’s plans and activities to 

22 provide technical assistance to States, and an 

23 explanation of any barriers to getting data in 

24 an accurate and timely manner. 
30 

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1 ‘‘(2) COLLECTION OF INFORMATION.—The Sec2 retary may make arrangements with resource and 

3 referral organizations, to utilize the child care data 

4 system of the resource and referral organizations at 

5 the national, State, and local levels, to collect the in6 formation required by paragraph (1)(B). 

7 ‘‘(b) GRANTS TO IMPROVE QUALITY AND ACCESS.— 

8 ‘‘(1) IN GENERAL.—The Secretary shall award 

9 grants to States, from allotments made under para10 graph (2), to improve the quality of and access to 

11 child care for infants and toddlers, subject to the 

12 availability of appropriations for this purpose. 

13 ‘‘(2) ALLOTMENTS.—From funds reserved 

14 under section 658O(a)(3) for a fiscal year, the Sec15 retary shall allot to each State an amount that bears 

16 the same relationship to such funds as the amount 

17 the State receives for the fiscal year under section 

18 658O bears to the amount all States receive for the 

19 fiscal year under section 658O. 

20 ‘‘(c) TOLL-FREE HOTLINE.—The Secretary shall 

21 award a grant or contract, or enter into a cooperative 

22 agreement for the operation of a national toll-free hotline 

23 to assist families in accessing local information on child 

24 care options and providing consumer education materials, 
31 

•S 525 RS 

1 subject to the availability of appropriations for this pur2 pose. 

3 ‘‘(d) TECHNICAL ASSISTANCE.—The Secretary shall 

4 provide technical assistance to States on developing and 

5 conducting the State market rates survey described in sec6 tion 658E(c)(4)(A)(i).’’. 

7 SEC. 109. ALLOCATION OF FUNDS FOR INDIAN TRIBES, 

8 QUALITY IMPROVEMENT, AND A HOTLINE. 

9 (a) IN GENERAL.—Section 658O(a) of the Child Care 

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

11 9858m(a)) is amended— 

12 (1) in paragraph (2), by striking ‘‘not less than 

13 1 percent, and not more than 2 percent,’’ and insert14 ing ‘‘2 percent’’; and 

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

16 ‘‘(3) GRANTS TO IMPROVE QUALITY AND AC17 CESS.—The Secretary shall reserve an amount not 

18 to exceed $100,000,000 for each fiscal year to carry 

19 out section 658L(b), subject to the availability of ap20 propriations for this purpose. 

21 ‘‘(4) TOLL-FREE HOTLINE.—The Secretary 

22 shall reserve an amount not to exceed $1,000,000 to 

23 carry out section 658L(c), subject to the availability 

24 of appropriations for this purpose.’’. 
32 

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1 (b) CONFORMING AMENDMENT.—Section 658O(c)(1) 

2 of the Child Care and Development Block Grant Act of 

3 1990 (42 U.S.C. 9858m(c)(1)) is amended by inserting 

4 ‘‘(in accordance with the requirements of subparagraphs 

5 (E) and (F) of section 658E(c)(2) for such tribes or orga6 nizations)’’ after ‘‘applications under this section’’. 

7 SEC. 110. DEFINITIONS. 

8 (a) ELIGIBLE CHILD.—Section 658P(4) of the Child 

9 Care and Development Block Grant Act of 1990 (42 

10 U.S.C. 9858n(4)) is amended— 

11 (1) in subparagraph (B), in the matter pre12 ceding clause (i), by striking ‘‘85 percent of the 

13 State median income for a family of the same size’’ 

14 and inserting ‘‘an income level determined by the 

15 State involved, with priority based on need as de16 fined by the State’’; and 

17 (2) in subparagraph (C)— 

18 (A) in clause (i), by striking ‘‘a parent or 

19 parents’’ and inserting ‘‘a parent (including a 

20 legal guardian or foster parent) or parents’’; 

21 and 

22 (B) by striking clause (ii) and inserting the 

23 following: 

24 ‘‘(ii)(I) is receiving, or needs to re25 ceive, protective services (which may in-
33 

•S 525 RS 

1 clude foster care) or is a child with signifi2 cant cognitive or physical disabilities as de3 fined by the State; and 

4 ‘‘(II) resides with a parent (including 

5 a legal guardian or foster parent) or par6 ents not described in clause (i).’’. 

7 (b) CHILD WITH SPECIAL NEEDS.—Section 658P of 

8 the Child Care and Development Block Grant Act of 1990 

9 (42 U.S.C. 9858n) is amended by inserting after para10 graph (2) the following: 

11 ‘‘(3) CHILD WITH SPECIAL NEEDS.—The term 

12 ‘child with special needs’ means— 

13 ‘‘(A) a child with a disability, as defined in 

14 section 602 of the Individuals with Disabilities 

15 Education Act; 

16 ‘‘(B) a child who is eligible for early inter17 vention services under part C of the Individuals 

18 with Disabilities Education Act; and 

19 ‘‘(C) a child with special needs, as defined 

20 by the State involved.’’. 

21 (c) LEAD AGENCY.—Section 658P(8) of the Child 

22 Care and Development Block Grant Act of 1990 (42 

23 U.S.C. 9858n(8)) is amended by striking ‘‘section 

24 658B(a)’’ and inserting ‘‘section 658D(a)’’. 
34 

•S 525 RS 

1 (d) PARENT.—Section 658P(9) of the Child Care and 

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

3 9858n(9)) is amended by inserting ‘‘, foster parent,’’ after 

4 ‘‘guardian’’. 

5 (e) NATIVE HAWAIIAN ORGANIZATION.—Section 

6 658P(14)(B) of the Child Care and Development Block 

7 Grant Act of 1990 (42 U.S.C. 9858n(14)(B)) is amended 

8 by striking ‘‘Native Hawaiian Organization, as defined in 

9 section 4009(4) of the Augustus F. Hawkins-Robert T. 

10 Stafford Elementary and Secondary School Improvement 

11 Amendments of 1988 (20 U.S.C. 4909(4))’’ and inserting 

12 ‘‘Native Hawaiian organization, as defined in section 7207 

13 of the Elementary and Secondary Education Act of 1965 

14 (20 U.S.C. 7517)’’. 

15 (f) REDESIGNATION.—The Child Care and Develop16 ment Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) 

17 is amended— 

18 (1) by redesignating section 658P as section 

19 658T; and 

20 (2) by moving that section 658T to the end of 

21 the Act. 

22 SEC. 111. RULES OF CONSTRUCTION. 

23 The Child Care and Development Block Grant Act 

24 of 1990 (as amended by section 110(f)) is further amend-
35 

•S 525 RS 

1 ed by inserting after section 658O (42 U.S.C. 9858m) the 

2 following: 

3 ‘‘SEC. 658P. RULES OF CONSTRUCTION. 

4 ‘‘Nothing in this subchapter shall be construed to re5 quire a State to impose State child care licensing require6 ments on any type of early childhood provider, including 

7 any such provider who is exempt from State child care 

8 licensing requirements on the date of enactment of the 

9 Caring for Children Act of 2005.’’. 

10 TITLE II—ENHANCING SECURITY 

11 AT CHILD CARE CENTERS IN 

12 FEDERAL FACILITIES 

13 SEC. 201. DEFINITIONS. 

14 In this title: 

15 (1) ADMINISTRATOR.—The term ‘‘Adminis16 trator’’ means the Administrator of General Serv17 ices. 

18 (2) CORRESPONDING CHILD CARE FACILITY.— 

19 The term ‘‘corresponding child care facility’’, used 

20 with respect to the Chief Administrative Officer of 

21 the House of Representatives, the Librarian of Con22 gress, or the head of a designated entity in the Sen23 ate, means a child care facility operated by, or under 

24 a contract or licensing agreement with, an office of 
36 

•S 525 RS 

1 the House of Representatives, the Library of Con2 gress, or an office of the Senate, respectively. 

3 (3) ENTITY SPONSORING A CHILD CARE FACIL4 ITY.—The term ‘‘entity sponsoring’’, used with re5 spect to a child care facility, means a Federal agen6 cy that operates, or an entity that enters into a con7 tract or licensing agreement with a Federal agency 

8 to operate, a child care facility primarily for the use 

9 of Federal employees. 

10 (4) EXECUTIVE AGENCY.—The term ‘‘Executive 

11 agency’’ has the meaning given the term in section 

12 105 of title 5, United States Code, except that the 

13 term— 

14 (A) does not include the Department of 

15 Defense and the Coast Guard; and 

16 (B) includes the General Services Adminis17 tration, with respect to the administration of a 

18 facility described in paragraph (5)(B). 

19 (5) EXECUTIVE FACILITY.—The term ‘‘execu20 tive facility’’— 

21 (A) means a facility that is owned or 

22 leased by an Executive agency; and 

23 (B) includes a facility that is owned or 

24 leased by the General Services Administration 

25 on behalf of a judicial office. 
37 

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1 (6) FEDERAL AGENCY.—The term ‘‘Federal 

2 agency’’ means an Executive agency, a legislative of3 fice, or a judicial office. 

4 (7) JUDICIAL FACILITY.—The term ‘‘judicial fa5 cility’’ means a facility that is owned or leased by a 

6 judicial office (other than a facility that is also a fa7 cility described in paragraph (5)(B)). 

8 (8) JUDICIAL OFFICE.—The term ‘‘judicial of9 fice’’ means an entity of the judicial branch of the 

10 Federal Government. 

11 (9) LEGISLATIVE FACILITY.—The term ‘‘legisla12 tive facility’’ means a facility that is owned or leased 

13 by a legislative office. 

14 (10) LEGISLATIVE OFFICE.—The term ‘‘legisla15 tive office’’ means an entity of the legislative branch 

16 of the Federal Government. 

17 SEC. 202. ENHANCING SECURITY. 

18 (a) COVERAGE.— 

19 (1) EXECUTIVE BRANCH.—The Administrator 

20 shall issue the regulations described in subsection 

21 (b) for child care facilities, and entities sponsoring 

22 child care facilities, in executive facilities. 

23 (2) LEGISLATIVE BRANCH.—The Chief Admin24 istrative Officer of the House of Representatives, the 

25 Librarian of Congress, and the head of a designated 
38 

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1 entity in the Senate shall issue the regulations de2 scribed in subsection (b) for corresponding child care 

3 facilities, and entities sponsoring the corresponding 

4 child care facilities, in legislative facilities. 

5 (3) JUDICIAL BRANCH.—The Director of the 

6 Administrative Office of the United States Courts 

7 shall issue the regulations described in subsection 

8 (b) for child care facilities, and entities sponsoring 

9 child care facilities, in judicial facilities. 

10 (b) REGULATIONS.—The officers and designated en11 tity described in subsection (a) shall issue regulations that 

12 concern— 

13 (1) matters relating to an occupant emergency 

14 plan and evacuations, such as— 

15 (A) providing for building security com16 mittee membership for each director of a child 

17 care facility described in subsection (a); 

18 (B) establishing a separate section in an 

19 occupant emergency plan for each such facility; 

20 (C) promoting familiarity with procedures 

21 and evacuation routes for different types of 

22 emergencies (such as emergencies caused by 

23 hazardous materials, a fire, a bomb threat, a 

24 power failure, or a natural disaster); 
39 

•S 525 RS 

1 (D) strengthening onsite relationships be2 tween security personnel and the personnel of 

3 such a facility, such as by ensuring that the 

4 post orders of guards reflect responsibility for 

5 the facility; 

6 (E) providing specific, clear, and concise 

7 evacuation instructions for a facility, including 

8 instructions specifying who authorizes an evacu9 ation; 

10 (F) providing for good evacuation equip11 ment, especially cribs; and 

12 (G) promoting the ability to evacuate with13 out outside assistance; and 

14 (2) matters relating to relocation sites, such 

15 as— 

16 (A) promoting an informed parent body 

17 that is knowledgeable about evacuation proce18 dures and relocation sites; 

19 (B) providing regularly updated parent 

20 contact information (regarding matters such as 

21 names, locations, electronic mail addresses, and 

22 cell phone and other telephone numbers); 

23 (C) establishing remote telephone contact 

24 for parents, to and from areas that are not less 

25 than 10 miles from such a facility; and 
40 

•S 525 RS 

1 (D) providing for an alternate site (in ad2 dition to regular sites) in the event of a catas3 trophe, which site may include— 

4 (i) a site that would be an unreason5 able distance from the facility under nor6 mal circumstances; and 

7 (ii) a facility with 24-hour operations, 

8 such as a hotel or law school library. 

9 TITLE III—REMOVAL OF BAR10 RIERS TO INCREASING THE 

11 SUPPLY OF QUALITY CHILD 

12 CARE 

13 SEC. 301. SMALL BUSINESS CHILD CARE GRANT PROGRAM. 

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

15 Human Services (referred to in this section as the ‘‘Sec16 retary’’) shall establish a program to award grants to 

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

18 funds to encourage the establishment and operation of em19 ployer-operated child care programs. 

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

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

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

23 and containing such information as the Secretary may re24 quire, including an assurance that the funds required 

25 under subsection (e) will be provided. 
41 

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1 (c) AMOUNT OF GRANT.—The Secretary shall deter2 mine the amount of a grant to a State under this section 

3 based on the population of the State as compared to the 

4 population of all States receiving grants under this sec5 tion. 

6 (d) USE OF FUNDS.— 

7 (1) IN GENERAL.—A State shall use amounts 

8 provided under a grant awarded under this section 

9 to provide assistance to small businesses (or con10 sortia formed in accordance with paragraph (3)) lo11 cated in the State to enable the small businesses (or 

12 consortia) to establish and operate child care pro13 grams. Such assistance may include— 

14 (A) technical assistance in the establish15 ment of a child care program; 

16 (B) assistance for the startup costs related 

17 to a child care program; 

18 (C) assistance for the training of child care 

19 providers; 

20 (D) scholarships for low-income wage earn21 ers; 

22 (E) the provision of services to care for 

23 sick children or to provide care to school-aged 

24 children; 
42 

•S 525 RS 

1 (F) the entering into of contracts with 

2 local resource and referral or local health de3 partments; 

4 (G) assistance for care for children with 

5 disabilities; 

6 (H) payment of expenses for renovation or 

7 operation of a child care facility; or 

8 (I) assistance for any other activity deter9 mined appropriate by the State. 

10 (2) APPLICATION.—In order for a small busi11 ness or consortium to be eligible to receive assistance 

12 from a State under this section, the small business 

13 involved shall prepare and submit to the State an 

14 application at such time, in such manner, and con15 taining such information as the State may require. 

16 (3) PREFERENCE.— 

17 (A) IN GENERAL.—In providing assistance 

18 under this section, a State shall give priority to 

19 an applicant that desires to form a consortium 

20 to provide child care in a geographic area with21 in the State where such care is not generally 

22 available or accessible. 

23 (B) CONSORTIUM.—For purposes of sub24 paragraph (A), a consortium shall be made up 

25 of 2 or more entities that shall include small 
43 

•S 525 RS 

1 businesses and that may include large busi2 nesses, nonprofit agencies or organizations, 

3 local governments, or other appropriate entities. 

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

5 received under this section, a State may not provide 

6 in excess of $500,000 in assistance from such funds 

7 to any single applicant. 

8 (e) MATCHING REQUIREMENT.—To be eligible to re9 ceive a grant under this section, a State shall provide as10 surances to the Secretary that, with respect to the costs 

11 to be incurred by a covered entity receiving assistance in 

12 carrying out activities under this section, the covered enti13 ty will make available (directly or through donations from 

14 public or private entities) non-Federal contributions to 

15 such costs in an amount equal to— 

16 (1) for the first fiscal year in which the covered 

17 entity receives such assistance, not less than 50 per18 cent of such costs ($1 for each $1 of assistance pro19 vided to the covered entity under the grant); 

20 (2) for the second fiscal year in which the cov21 ered entity receives such assistance, not less than 

662 22 ⁄3 percent of such costs ($2 for each $1 of assist23 ance provided to the covered entity under the grant; 

24 and 
44 

•S 525 RS 

1 (3) for the third fiscal year in which the covered 

2 entity receives such assistance, not less than 75 per3 cent of such costs ($3 for each $1 of assistance pro4 vided to the covered entity under the grant. 

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

6 to receive assistance under a grant awarded under this 

7 section, a child care provider shall comply with all applica8 ble State and local licensing and regulatory requirements 

9 and all applicable health and safety standards in effect 

10 in the State. 

11 (g) STATE-LEVEL ACTIVITIES.—A State may not re12 tain more than 3 percent of the amount described in sub13 section (c) for State administration and other State-level 

14 activities. 

15 (h) ADMINISTRATION.— 

16 (1) STATE RESPONSIBILITY.—A State shall 

17 have responsibility for administering a grant award18 ed for the State under this section and for moni19 toring covered entities that receive assistance under 

20 such grant. 

21 (2) AUDITS.—A State shall require each cov22 ered entity receiving assistance under the grant 

23 awarded under this section to conduct an annual 

24 audit with respect to the activities of the covered en25 tity. Such audits shall be submitted to the State. 
45 

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1 (3) MISUSE OF FUNDS.— 

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

3 through an audit or otherwise, that a covered 

4 entity receiving assistance under a grant award5 ed under this section has misused the assist6 ance, the State shall notify the Secretary of the 

7 misuse. The Secretary, upon such a notifica8 tion, may seek from such a covered entity the 

9 repayment of an amount equal to the amount 

10 of any such misused assistance plus interest. 

11 (B) APPEALS PROCESS.—The Secretary 

12 shall by regulation provide for an appeals proc13 ess with respect to repayments under this para14 graph. 

15 (i) REPORTING REQUIREMENTS.— 

16 (1) 2-YEAR STUDY.— 

17 (A) IN GENERAL.—Not later than 2 years 

18 after the date on which the Secretary first 

19 awards grants under this section, the Secretary 

20 shall conduct a study to determine— 

21 (i) the capacity of covered entities to 

22 meet the child care needs of communities 

23 within States; 

24 (ii) the kinds of consortia that are 

25 being formed with respect to child care at 
46 

•S 525 RS 

1 the local level to carry out programs fund2 ed under this section; and 

3 (iii) who is using the programs funded 

4 under this section and the income levels of 

5 such individuals. 

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

7 after the date on which the Secretary first 

8 awards grants under this section, the Secretary 

9 shall prepare and submit to the appropriate 

10 committees of Congress a report on the results 

11 of the study conducted in accordance with sub12 paragraph (A). 

13 (2) 4-YEAR STUDY.— 

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

15 after the date on which the Secretary first 

16 awards grants under this section, the Secretary 

17 shall conduct a study to determine the number 

18 of child care facilities that are funded through 

19 covered entities that received assistance through 

20 a grant awarded under this section and that re21 main in operation, and the extent to which such 

22 facilities are meeting the child care needs of the 

23 individuals served by such facilities. 

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

25 after the date on which the Secretary first 
47 

•S 525 RS 

1 awards grants under this section, the Secretary 

2 shall prepare and submit to the appropriate 

3 committees of Congress a report on the results 

4 of the study conducted in accordance with sub5 paragraph (A). 

6 (j) DEFINITIONS.—In this section: 

7 (1) COVERED ENTITY.—The term ‘‘covered en8 tity’’ means a small business or a consortium formed 

9 in accordance with subsection (d)(3). 

10 (2) SMALL BUSINESS.—The term ‘‘small busi11 ness’’ means an employer who employed an average 

12 of at least 2 but not more than 50 employees on 

13 business days during the preceding calendar year. 

14 (k) AUTHORIZATION OF APPROPRIATIONS.— 

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

16 appropriated to carry out this section, $50,000,000 

17 for the period of fiscal years 2006 through 2010. 

18 (2) EVALUATIONS AND ADMINISTRATION.— 

19 With respect to the total amount appropriated for 

20 such period in accordance with this subsection, not 

21 more than $2,500,000 of that amount may be used 

22 for expenditures related to conducting evaluations 

23 required under, and the administration of, this sec24 tion. 
48 

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1 (l) TERMINATION OF PROGRAM.—The program es2 tablished under subsection (a) shall terminate on Sep3 tember 30, 2010. 

4 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

6 ‘‘Caring for Children Act of 2005’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 

1990 

Sec. 101. Short title and goals. 

Sec. 102. Authorization of appropriations. 

Sec. 103. Lead agency. 

Sec. 104. State plan. 

Sec. 105. Activities to improve the quality of child care. 

Sec. 106. Optional priority use of additional funds. 

Sec. 107. Reporting requirements. 

Sec. 108. National activities. 

Sec. 109. Allocation of funds for Indian tribes, quality improvement, and a hotline. 

Sec. 110. Definitions. 

Sec. 111. Rules of construction. 

TITLE II—ENHANCING SECURITY AT CHILD CARE CENTERS IN 

FEDERAL FACILITIES 

Sec. 201. Definitions. 

Sec. 202. Enhancing security. 

TITLE III—REMOVAL OF BARRIERS TO INCREASING THE SUPPLY 

OF QUALITY CHILD CARE 

Sec. 301. Small business child care grant program. 
49 

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1 TITLE I—CHILD CARE AND DE2 VELOPMENT BLOCK GRANT 

3 ACT OF 1990 

4 SEC. 101. SHORT TITLE AND GOALS. 

5 (a) HEADING.—Section 658A of the Child Care and 

6 Development Block Grant Act of 1990 (42 U.S.C. 9801 note) 

7 is amended by striking the section heading and inserting 

8 the following: 

9 ‘‘SEC. 658A. SHORT TITLE AND GOALS.’’. 

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

11 Development Block Grant Act of 1990 (42 U.S.C. 9801 note) 

12 is amended— 

13 (1) in paragraph (3), by striking ‘‘encourage’’ 

14 and inserting ‘‘assist’’; 

15 (2) in paragraph (4), by striking ‘‘parents’’ and 

16 all that follows and inserting ‘‘low-income working 

17 parents;’’; 

18 (3) by redesignating paragraph (5) as para19 graph (8); and 

20 (4) by inserting after paragraph (4) the fol21 lowing: 

22 ‘‘(5) to assist States in improving the quality of 

23 child care available to families; 

24 ‘‘(6) to promote school preparedness by encour25 aging children, families, and caregivers to engage in 
50 

•S 525 RS 

1 developmentally appropriate and age-appropriate ac2 tivities in child care settings that will— 

3 ‘‘(A) improve the children’s social, emo4 tional, and behavioral skills; and 

5 ‘‘(B) foster the children’s early cognitive, 

6 pre-reading, and language development, and 

7 prenumeracy and mathematics skills; 

8 ‘‘(7) to promote parental and family involvement 

9 in the education of young children in child care set10 tings; and’’. 

11 SEC. 102. AUTHORIZATION OF APPROPRIATIONS. 

12 Section 658B of the Child Care and Development Block 

13 Grant Act of 1990 (42 U.S.C. 9858) is amended by striking 

14 ‘‘subchapter’’ and all that follows and inserting ‘‘subchapter 

15 $2,300,000,000 for fiscal year 2006, $2,500,000,000 for fis16 cal year 2007, $2,700,000,000 for fiscal year 2008, 

17 $2,900,000,000 for fiscal year 2009, and $3,100,000,000 for 

18 fiscal year 2010.’’. 

19 SEC. 103. LEAD AGENCY. 

20 Section 658D(a) of the Child Care and Development 

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

22 by striking ‘‘designate’’ and all that follows and inserting 

23 ‘‘designate an agency (which may be an appropriate col24 laborative agency), or establish a joint interagency office, 

25 that complies with the requirements of subsection (b) to 
51 

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1 serve as the lead agency for the State under this sub2 chapter.’’. 

3 SEC. 104. STATE PLAN. 

4 (a) LEAD AGENCY.—Section 658E(c)(1) of the Child 

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

6 9858c(c)(1)) is amended by striking ‘‘designated’’ and in7 serting ‘‘designated or established’’. 

8 (b) POLICIES AND PROCEDURES.—Section 658E(c)(2) 

9 of the Child Care and Development Block Grant Act of 1990 

10 (42 U.S.C. 9858c(c)(2)) is amended— 

11 (1) in subparagraph (A)(i)(II), by striking ‘‘sec12 tion 658P(2)’’ and inserting ‘‘section 658T(2)’’; 

13 (2) by striking subparagraph (D) and inserting 

14 the following: 

15 ‘‘(D) CONSUMER AND CHILD CARE PRO16 VIDER EDUCATION INFORMATION.—Certify that 

17 the State will— 

18 ‘‘(i) collect and disseminate, through 

19 resource and referral services and other 

20 means as determined by the State, to par21 ents of eligible children, child care pro22 viders, and the general public, information 

23 regarding— 

24 ‘‘(I) the promotion of informed 

25 child care choices, including informa-
52 

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1 tion about the quality and availability 

2 of child care services; 

3 ‘‘(II) research and best practices 

4 concerning children’s development, in5 cluding early cognitive development; 

6 ‘‘(III) the availability of assist7 ance to obtain child care services; and 

8 ‘‘(IV) other programs for which 

9 families that receive child care services 

10 for which financial assistance is pro11 vided under this subchapter may be el12 igible, including the food stamp pro13 gram established under the Food 

14 Stamp Act of 1977 (7 U.S.C. 2011 et 

15 seq.), the special supplemental nutri16 tion program for women, infants, and 

17 children established by section 17 of the 

18 Child Nutrition Act of 1966 (42 U.S.C. 

19 1786), the child and adult care food 

20 program established under section 17 

21 of the Richard B. Russell National 

22 School Lunch Act (42 U.S.C. 1766), 

23 and the medicaid and State children’s 

24 health insurance programs under titles 

25 XIX and XXI of the Social Security 
53 

•S 525 RS 

1 Act (42 U.S.C. 1396 et seq. and 

2 1397aa et seq.); and 

3 ‘‘(ii) report to the Secretary the man4 ner in which the consumer education infor5 mation described in clause (i) was provided 

6 to parents and the number of parents to 

7 whom such consumer education information 

8 was provided, during the period of the pre9 vious State plan.’’; 

10 (3) by striking subparagraph (E) and inserting 

11 the following: 

12 ‘‘(E) COMPLIANCE WITH STATE AND TRIBAL

13 LICENSING REQUIREMENTS.— 

14 ‘‘(i) IN GENERAL.—Certify that the 

15 State (or the Indian tribe or tribal organi16 zation) involved has in effect licensing re17 quirements applicable to child care services 

18 provided within the State (or area served by 

19 the tribe or organization), and provide a de20 tailed description of such requirements and 

21 of how such requirements are effectively en22 forced. 

23 ‘‘(ii) CONSTRUCTION.—Nothing in 

24 clause (i) shall be construed to require that 
54 

•S 525 RS 

1 licensing requirements be applied to specific 

2 types of providers of child care services.’’; 

3 (4) in subparagraph (F)— 

4 (A) in the first sentence, by striking ‘‘within 

5 the State, under State or local law,’’ and insert6 ing ‘‘within the State (or area served by the In7 dian tribe or tribal organization), under State or 

8 local law (or tribal law),’’; and 

9 (B) in the third sentence, by striking ‘‘State 

10 or local law’’ and inserting ‘‘State or local law 

11 (or tribal law)’’; and 

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

13 ‘‘(I) PROTECTION FOR WORKING PAR14 ENTS.— 

15 ‘‘(i) REDETERMINATION PROCESS.— 

16 Describe the procedures and policies that 

17 are in place to ensure that working parents 

18 (especially parents in families receiving as19 sistance under a State program funded 

20 under part A of title IV of the Social Secu21 rity Act (42 U.S.C. 601 et seq.)) are not re22 quired to unduly disrupt their employment 

23 in order to comply with the State’s require24 ments for redetermination of eligibility for 

25 assistance under this subchapter. 
55 

•S 525 RS 

1 ‘‘(ii) MINIMUM PERIOD.—Demonstrate 

2 that each child that receives assistance 

3 under this subchapter in the State will re4 ceive such assistance for not less than 6 

5 months before the State redetermines the eli6 gibility of the child under this subchapter, 

7 except as provided in clause (iii). 

8 ‘‘(iii) PERIOD BEFORE TERMI9 NATION.—At the option of the State, dem10 onstrate that the State will not terminate 

11 assistance under this subchapter based on a 

12 parent’s loss of work or cessation of attend13 ance at a job training or educational pro14 gram for which the family was receiving the 

15 assistance, without continuing the assist16 ance for a reasonable period of time, of not 

17 less than 1 month, after such loss or ces18 sation in order for the parent to engage in 

19 a job search and resume work, or resume at20 tendance of a job training or educational 

21 program, as soon as possible. 

22 ‘‘(J) COORDINATION WITH OTHER PRO23 GRAMS.—Describe how the State, in order to ex24 pand accessibility and continuity of quality 

25 early care and early education, will coordinate 
56 

•S 525 RS 

1 the early childhood education activities assisted 

2 under this subchapter with— 

3 ‘‘(i) programs carried out under the 

4 Head Start Act (42 U.S.C. 9831 et seq.), in5 cluding the Early Head Start programs 

6 carried out under section 645A of that Act 

7 (42 U.S.C. 9840a); 

8 ‘‘(ii)(I) Early Reading First and Even 

9 Start programs carried out under subparts 

10 2 and 3 of part B of title I of the Elemen11 tary and Secondary Education Act of 1965 

12 (20 U.S.C. 6371 et seq., 6381 et seq.); 

13 ‘‘(II) other preschool programs carried 

14 out under title I of that Act (20 U.S.C. 

15 6301 et seq.); and 

16 ‘‘(III) the Ready-to-Learn Television 

17 program carried out under subpart 3 of 

18 part D of title II of that Act (20 U.S.C. 

19 6775 et seq.); 

20 ‘‘(iii) programs carried out under sec21 tion 619 and part C of the Individuals with 

22 Disabilities Education Act (20 U.S.C. 1419 

23 and 1431 et seq.); 

24 ‘‘(iv) State prekindergarten programs; 

25 and 
57 

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1 ‘‘(v) other early childhood education 

2 programs. 

3 ‘‘(K) TRAINING IN EARLY LEARNING AND

4 CHILDHOOD DEVELOPMENT.—Describe any 

5 training requirements that are in effect within 

6 the State that are designed to enable child care 

7 providers to promote the social, emotional, phys8 ical, and cognitive development of children and 

9 that are applicable to child care providers that 

10 provide services for which assistance is made 

11 available under this subchapter in the State. 

12 ‘‘(L) PUBLIC-PRIVATE PARTNERSHIPS.— 

13 Demonstrate how the State is encouraging part14 nerships among State agencies, other public 

15 agencies, and private entities, to leverage exist16 ing service delivery systems (as of the date of 

17 submission of the State plan) for early childhood 

18 education and to increase the supply and quality 

19 of child care services for children who are less 

20 than 13 years of age. 

21 ‘‘(M) ACCESS TO CARE FOR CERTAIN POPU22 LATIONS.—Demonstrate how the State is ad23 dressing the child care needs of parents eligible 

24 for child care services for which assistance is 

25 provided under this subchapter, who have chil-
58 

•S 525 RS 

1 dren with special needs, work nontraditional 

2 hours, or require child care services for infants 

3 and toddlers. 

4 ‘‘(N) COORDINATION WITH TITLE IV OF THE

5 SOCIAL SECURITY ACT.—Describe how the State 

6 will inform parents receiving assistance under a 

7 State program funded under part A of title IV 

8 of the Social Security Act (42 U.S.C. 601 et seq.) 

9 and low-income parents about eligibility for as10 sistance under this subchapter.’’. 

11 (c) USE OF BLOCK GRANT FUNDS.—Section 

12 658E(c)(3) of the Child Care and Development Block Grant 

13 Act of 1990 (42 U.S.C. 9858c(c)(3)) is amended— 

14 (1) in subparagraph (A), by striking ‘‘as re15 quired under’’ and inserting ‘‘in accordance with’’; 

16 and 

17 (2) in subparagraph (B)— 

18 (A) by striking ‘‘The State’’ and inserting 

19 the following: 

20 ‘‘(i) IN GENERAL.—The State’’; 

21 (B) in clause (i) (as designated in subpara22 graph (A)), by striking ‘‘appropriate to realize 

23 any of the goals specified in paragraphs (2) 

24 through (5) of section 658A(b)’’ and inserting 

25 ‘‘appropriate (which may include an activity de-
59 

•S 525 RS 

1 scribed in clause (ii)) to realize any of the goals 

2 specified in paragraphs (2) through (8) of section 

3 658A(b)’’; and 

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

5 ‘‘(ii) CHILD CARE RESOURCE AND RE6 FERRAL SYSTEM.—A State may use 

7 amounts described in clause (i) to establish 

8 or support a system of local child care re9 source and referral organizations coordi10 nated, to the extent determined appropriate 

11 by the State, by a statewide private, non12 profit, community-based lead child care re13 source and referral organization. The local 

14 child care resource and referral organiza15 tions shall— 

16 ‘‘(I) provide parents in the State 

17 with information, and consumer edu18 cation, concerning the full range of 

19 child care options, including child care 

20 provided during nontraditional hours 

21 and through emergency child care cen22 ters, in their communities; 

23 ‘‘(II) collect and analyze data on 

24 the supply of and demand for child 
60 

•S 525 RS 

1 care in political subdivisions within 

2 the State; 

3 ‘‘(III) submit reports to the State 

4 containing data and analysis described 

5 in subclause (II); and 

6 ‘‘(IV) work to establish partner7 ships with public agencies and private 

8 entities to increase the supply and 

9 quality of child care services.’’. 

10 (d) DIRECT SERVICES.—Section 658E(c)(3) of the 

11 Child Care and Development Block Grant Act of 1990 (42 

12 U.S.C. 9858c(c)(3)) is amended— 

13 (1) in subparagraph (A), by striking ‘‘(D)’’ and 

14 inserting ‘‘(E)’’; and 

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

16 ‘‘(E) DIRECT SERVICES.—From amounts 

17 provided to a State for a fiscal year to carry out 

18 this subchapter, the State shall— 

19 ‘‘(i) reserve the minimum amount re20 quired to be reserved under section 658G, 

21 and the funds for costs described in sub22 paragraph (C); and 

23 ‘‘(ii) from the remainder, use not less 

24 than 70 percent to fund direct services (as 

25 defined by the State).’’. 
61 

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1 (e) PAYMENT RATES.—Section 658E(c)(4) of the Child 

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

3 9858c(c)(4)) is amended— 

4 (1) in subparagraph (A), by striking ‘‘The State 

5 plan’’ and all that follows and inserting the following: 

6 ‘‘(i) SURVEY.—The State plan shall— 

7 ‘‘(I) demonstrate that the State 

8 has, after consulting with local area 

9 child care program administrators, de10 veloped and conducted a statistically 

11 valid and reliable survey of the market 

12 rates for child care services in the 

13 State (that reflects variations in the 

14 cost of child care services by geographic 

15 area, type of provider, and age of 

16 child) within the 2 years preceding the 

17 date of the submission of the applica18 tion containing the State plan; 

19 ‘‘(II) detail the results of the State 

20 market rates survey conducted pursu21 ant to subclause (I); 

22 ‘‘(III) describe how the State will 

23 provide for timely payment for child 

24 care services, and set payment rates for 

25 child care services, for which assistance 
62 

•S 525 RS 

1 is provided under this subchapter in 

2 accordance with the results of the mar3 ket rates survey conducted pursuant to 

4 subclause (I) without reducing the 

5 number of families in the State receiv6 ing such assistance under this sub7 chapter, relative to the number of such 

8 families on the date of introduction of 

9 the Caring for Children Act of 2005; 

10 and 

11 ‘‘(IV) describe how the State will, 

12 not later than 30 days after the com13 pletion of the survey described in sub14 clause (I), make the results of the sur15 vey widely available through public 

16 means, including posting the results on 

17 the Internet. 

18 ‘‘(ii) EQUAL ACCESS.—The State plan 

19 shall include a certification that the pay20 ment rates are sufficient to ensure equal ac21 cess for eligible children to child care serv22 ices comparable to child care services in the 

23 State or substate area that are provided to 

24 children whose parents are not eligible to 
63 

•S 525 RS 

1 receive child care assistance under any Fed2 eral or State program.’’; and 

3 (2) in subparagraph (B)— 

4 (A) by striking ‘‘Nothing’’ and inserting the 

5 following: 

6 ‘‘(i) NO PRIVATE RIGHT OF ACTION.— 

7 Nothing’’; and 

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

9 ‘‘(ii) NO PROHIBITION OF CERTAIN

10 DIFFERENT RATES.—Nothing in this sub11 chapter shall be construed to prevent a 

12 State from differentiating the payment 

13 rates described in subparagraph (A) on the 

14 basis of such factors as— 

15 ‘‘(I) geographic location of child 

16 care providers (such as location in an 

17 urban or rural area); 

18 ‘‘(II) the age or particular needs 

19 of children (such as children with spe20 cial needs and children served by child 

21 protective services); 

22 ‘‘(III) whether the providers pro23 vide child care during weekend and 

24 other nontraditional hours; or 
64 

•S 525 RS 

1 ‘‘(IV) the State’s determination 

2 that such differentiated payment rates 

3 are needed to enable a parent to choose 

4 child care that the parent believes to be 

5 of high quality.’’. 

6 SEC. 105. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD 

7 CARE. 

8 Section 658G of the Child Care and Development Block 

9 Grant Act of 1990 (42 U.S.C. 9858e) is amended to read 

10 as follows: 

11 ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF 

12 CHILD CARE. 

13 ‘‘(a) IN GENERAL.— 

14 ‘‘(1) RESERVATION.—Each State that receives 

15 funds to carry out this subchapter for a fiscal year 

16 shall reserve and use not less than 6 percent of the 

17 funds for activities provided directly, or through 

18 grants or contracts with resource and referral organi19 zations or other appropriate entities, that are de20 signed to improve the quality of child care services. 

21 ‘‘(2) ACTIVITIES.—The funds reserved under 

22 paragraph (1) may only be used to— 

23 ‘‘(A) develop and implement voluntary 

24 guidelines on pre-reading and language skills 

25 and activities, and prenumeracy and mathe-
65 

•S 525 RS 

1 matics skills and activities, for child care pro2 grams in the State, that are aligned with State 

3 standards for kindergarten through grade 12 or 

4 the State’s general goals for school preparedness; 

5 ‘‘(B) support activities and provide tech6 nical assistance in Federal, State, and local 

7 child care settings to enhance early learning for 

8 preschool and school-aged children, to promote 

9 literacy, to foster school preparedness, and to 

10 support later school success; 

11 ‘‘(C) offer training, professional develop12 ment, and educational opportunities for child 

13 care providers that relate to the use of develop14 mentally appropriate and age-appropriate cur15 ricula, and early childhood teaching strategies, 

16 that are scientifically based and aligned with the 

17 social, emotional, physical, and cognitive devel18 opment of children, including— 

19 ‘‘(i) developing and operating distance 

20 learning child care training infrastructures; 

21 ‘‘(ii) developing model technology-based 

22 training courses; 

23 ‘‘(iii) offering training for caregivers 

24 in informal child care settings; and 
66 

•S 525 RS 

1 ‘‘(iv) offering training for child care 

2 providers who care for infants and toddlers 

3 and children with special needs; 

4 ‘‘(D) engage in programs designed to in5 crease the retention and improve the com6 petencies of child care providers, including wage 

7 incentive programs and initiatives that establish 

8 tiered payment rates for providers that meet or 

9 exceed child care services guidelines, as defined 

10 by the State; 

11 ‘‘(E) evaluate and assess the quality and ef12 fectiveness of child care programs and services 

13 offered in the State to young children on improv14 ing overall school preparedness; and 

15 ‘‘(F) carry out other activities determined 

16 by the State to improve the quality of child care 

17 services provided in the State and for which 

18 measurement of outcomes relating to improved 

19 child safety, child well-being, or school prepared20 ness is possible. 

21 ‘‘(b) CERTIFICATION.—Beginning with fiscal year 

22 2006, the State shall annually submit to the Secretary a 

23 certification in which the State certifies that the State was 

24 in compliance with subsection (a) during the preceding fis25 cal year and describes how the State used funds made avail-
67 

•S 525 RS 

1 able to carry out this subchapter to comply with subsection 

2 (a) during that preceding fiscal year. 

3 ‘‘(c) STRATEGY.—The State shall annually submit to 

4 the Secretary— 

5 ‘‘(1) beginning with fiscal year 2006, an outline 

6 of the strategy the State will implement during that 

7 fiscal year to address the quality of child care services 

8 for which financial assistance is made available 

9 under this subchapter, including— 

10 ‘‘(A) a statement specifying how the State 

11 will provide for the activities carried out under 

12 subsection (a); 

13 ‘‘(B) a description of quantifiable, objective 

14 measures that the State will use to evaluate the 

15 State’s progress in improving the quality of the 

16 child care services (including measures regarding 

17 the impact, if any, of State efforts to improve the 

18 quality by increasing payment rates, as defined 

19 in section 658H(c)), evaluating separately the 

20 impact of the activities listed in each of the sub21 paragraphs of subsection (a)(2) on the quality of 

22 the child care services; and 

23 ‘‘(C) a list of State-developed child care 

24 services quality targets quantified for such fiscal 

25 year for such measures; and 
68 

•S 525 RS 

1 ‘‘(2) beginning with fiscal year 2007, a report on 

2 the State’s progress in achieving such targets for the 

3 preceding fiscal year. 

4 ‘‘(d) IMPROVEMENT PLAN.—If the Secretary deter5 mines that a State failed to make progress as described in 

6 subsection (c)(2) for a fiscal year— 

7 ‘‘(1) the State shall submit an improvement plan 

8 that describes the measures the State will take to 

9 make that progress; and 

10 ‘‘(2) the State shall comply with the improve11 ment plan by a date specified by the Secretary but 

12 not later than 1 year after the date of the determina13 tion. 

14 ‘‘(e) CONSTRUCTION.—Nothing in this subchapter shall 

15 be construed to require that the State apply measures for 

16 evaluating quality of child care services to specific types 

17 of child care providers.’’. 

18 SEC. 106. OPTIONAL PRIORITY USE OF ADDITIONAL FUNDS. 

19 The Child Care and Development Block Grant Act of 

20 1990 is amended by inserting after section 658G (42 U.S.C. 

21 9858e) the following: 

22 ‘‘SEC. 658H. OPTIONAL PRIORITY USE OF ADDITIONAL 

23 FUNDS. 

24 ‘‘(a) IN GENERAL.—If a State receives funds to carry 

25 out this subchapter for a fiscal year, and the amount of 
69 

•S 525 RS 

1 the funds exceeds the amount of funds the State received 

2 to carry out this subchapter for fiscal year 2005, the State 

3 shall consider using a portion of the excess— 

4 ‘‘(1) to support payment rate increases in ac5 cordance with the market rates survey conducted pur6 suant to section 658E(c)(4); 

7 ‘‘(2) to support the establishment of tiered pay8 ment rates as described in section 658G(a)(2)(D); and 

9 ‘‘(3) to support payment rate increases for care 

10 for children in communities served by local edu11 cational agencies that have been identified for im12 provement under section 1116(c)(3) of the Elementary 

13 and Secondary Education Act of 1965 (20 U.S.C. 

14 6316(c)(3)). 

15 ‘‘(b) NO REQUIREMENT TO REDUCE CHILD CARE

16 SERVICES.—Nothing in this section shall be construed to 

17 require a State to take an action that the State determines 

18 would result in a reduction of child care services to families 

19 of eligible children. 

20 ‘‘(c) PAYMENT RATE.—In this section, the term ‘pay21 ment rate’ means the rate of State payment or reimburse22 ment to providers for subsidized child care.’’. 

23 SEC. 107. REPORTING REQUIREMENTS. 

24 (a) HEADING.—Section 658K of the Child Care and 

25 Development Block Grant Act of 1990 (42 U.S.C. 9858i) 
70 

•S 525 RS 

1 is amended by striking the section heading and inserting 

2 the following: 

3 ‘‘SEC. 658K. REPORTS AND AUDITS.’’. 

4 (b) REQUIRED INFORMATION.—Section 658K(a) of the 

5 Child Care and Development Block Grant Act of 1990 (42 

6 U.S.C. 9858i(a)) is amended to read as follows: 

7 ‘‘(a) REPORTS.— 

8 ‘‘(1) IN GENERAL.—A State that receives funds 

9 to carry out this subchapter shall collect the informa10 tion described in paragraph (2) on a monthly basis. 

11 ‘‘(2) REQUIRED INFORMATION.—The information 

12 required under this paragraph shall include, with re13 spect to a family unit receiving assistance under this 

14 subchapter, information concerning— 

15 ‘‘(A) family income; 

16 ‘‘(B) county of residence; 

17 ‘‘(C) the gender, race, and age of children 

18 receiving such assistance; 

19 ‘‘(D) whether the head of the family unit is 

20 a single parent; 

21 ‘‘(E) the sources of family income, includ22 ing— 

23 ‘‘(i) employment, including self-em24 ployment; and 
71 

•S 525 RS 

1 ‘‘(ii) assistance under a State program 

2 funded under part A of title IV of the Social 

3 Security Act (42 U.S.C. 601 et seq.) and a 

4 State program for which State spending is 

5 counted toward the maintenance of effort re6 quirement under section 409(a)(7) of the 

7 Social Security Act (42 U.S.C. 609(a)(7)); 

8 ‘‘(F) the type of child care in which the 

9 child was enrolled (such as family child care, 

10 home care, center-based child care, or other types 

11 of child care described in section 658T(5)); 

12 ‘‘(G) whether the child care provider in13 volved was a relative; 

14 ‘‘(H) the cost of child care for such family, 

15 separately stating the amount of the subsidy 

16 payment of the State and the amount of the co17 payment of the family toward such cost; 

18 ‘‘(I) the average hours per month of such 

19 care; 

20 ‘‘(J) household size; 

21 ‘‘(K) whether the parent involved reports 

22 that the child has an individualized education 

23 program or an individualized family service 

24 plan, as such terms are defined in section 602 of 
72 

•S 525 RS 

1 the Individuals with Disabilities Education Act 

2 (20 U.S.C. 1401); and 

3 ‘‘(L) the reason for any termination of ben4 efits under this subchapter, including whether 

5 the termination was due to— 

6 ‘‘(i) the child’s age exceeding the allow7 able limit; 

8 ‘‘(ii) the family income exceeding the 

9 State eligibility limit; 

10 ‘‘(iii) the State recertification or ad11 ministrative requirements not being met; 

12 ‘‘(iv) parent work, training, or edu13 cation status no longer meeting State re14 quirements; 

15 ‘‘(v) a nonincome related change in 

16 status; or 

17 ‘‘(vi) other reasons; 

18 during the period for which such information is re19 quired to be submitted. 

20 ‘‘(3) SUBMISSION TO SECRETARY.—A State de21 scribed in paragraph (1) shall, on a quarterly basis, 

22 submit to the Secretary the information required to be 

23 collected under paragraph (2) and the number of chil24 dren and families receiving assistance under this sub25 chapter (stated on a monthly basis). Information on 
73 

•S 525 RS 

1 the number of families receiving the assistance shall 

2 also be posted on the website of such State. In the 

3 fourth quarterly report of each year, a State described 

4 in paragraph (1) shall also submit to the Secretary 

5 information on the annual number and type of child 

6 care providers (as described in section 658T(5)) that 

7 received funding under this subchapter and the an8 nual number of payments made by the State through 

9 vouchers, under contracts, or by payment to parents 

10 reported by type of child care provider. 

11 ‘‘(4) USE OF SAMPLES.— 

12 ‘‘(A) AUTHORITY.—A State may comply 

13 with the requirement to collect the information 

14 described in paragraph (2) through the use of 

15 disaggregated case record information on a sam16 ple of families selected through the use of scientif17 ically acceptable sampling methods approved by 

18 the Secretary. 

19 ‘‘(B) SAMPLING AND OTHER METHODS.— 

20 The Secretary shall provide the States with such 

21 case sampling plans and data collection proce22 dures as the Secretary determines necessary to 

23 produce statistically valid samples of the infor24 mation described in paragraph (2). The Sec25 retary may develop and implement procedures 
74 

•S 525 RS 

1 for verifying the quality of data submitted by the 

2 States.’’. 

3 (c) PERIOD OF COMPLIANCE AND WAIVERS.— 

4 (1) IN GENERAL.—States shall have 2 years from 

5 the date of enactment of this Act to comply with the 

6 changes to data collection and reporting required by 

7 the amendments made by this section. 

8 (2) WAIVERS.—The Secretary of Health and 

9 Human Services may grant a waiver from paragraph 

10 (1) to States with plans to procure data systems. 

11 SEC. 108. NATIONAL ACTIVITIES. 

12 Section 658L of the Child Care and Development Block 

13 Grant Act of 1990 (42 U.S.C. 9858j) is amended to read 

14 as follows: 

15 ‘‘SEC. 658L. NATIONAL ACTIVITIES. 

16 ‘‘(a) REPORT.— 

17 ‘‘(1) IN GENERAL.—The Secretary shall, not 

18 later than April 30, 2006, and annually thereafter, 

19 prepare and submit to the Committee on Education 

20 and the Workforce of the House of Representatives 

21 and the Committee on Health, Education, Labor, and 

22 Pensions of the Senate, and, not later than 30 days 

23 after the date of such submission, post on the Depart24 ment of Health and Human Services website, a report 

25 that contains the following: 
75 

•S 525 RS 

1 ‘‘(A) A summary and analysis of the data 

2 and information provided to the Secretary in the 

3 State reports submitted under sections 658E, 

4 658G(c), and 658K. 

5 ‘‘(B) Aggregated statistics on and an anal6 ysis of the supply of, demand for, and quality of 

7 child care, early education, and nonschool-hour 

8 programs. 

9 ‘‘(C) An assessment and, where appropriate, 

10 recommendations for Congress concerning efforts 

11 that should be undertaken to improve the access 

12 of the public to quality and affordable child care 

13 in the United States. 

14 ‘‘(D) A progress report describing the 

15 progress of the States in streamlining data re16 porting, the Secretary’s plans and activities to 

17 provide technical assistance to States, and an ex18 planation of any barriers to getting data in an 

19 accurate and timely manner. 

20 ‘‘(2) COLLECTION OF INFORMATION.—The Sec21 retary may make arrangements with resource and re22 ferral organizations, to utilize the child care data sys23 tem of the resource and referral organizations at the 

24 national, State, and local levels, to collect the infor25 mation required by paragraph (1)(B). 
76 

•S 525 RS 

1 ‘‘(b) GRANTS TO IMPROVE QUALITY AND ACCESS.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall award 

3 grants to States, from allotments made under para4 graph (2), to improve the quality of and access to 

5 child care for infants and toddlers, subject to the 

6 availability of appropriations for this purpose. 

7 ‘‘(2) ALLOTMENTS.—From funds reserved under 

8 section 658O(a)(3) for a fiscal year, the Secretary 

9 shall allot to each State an amount that bears the 

10 same relationship to such funds as the amount the 

11 State receives for the fiscal year under section 658O 

12 bears to the amount all States receive for the fiscal 

13 year under section 658O. 

14 ‘‘(c) TOLL-FREE HOTLINE.—The Secretary shall 

15 award a grant or contract, or enter into a cooperative 

16 agreement, for the operation of a national toll-free hotline 

17 to assist families in accessing local information on child 

18 care options and providing consumer education materials, 

19 subject to the availability of appropriations for this pur20 pose. 

21 ‘‘(d) TECHNICAL ASSISTANCE.—The Secretary shall 

22 provide technical assistance to States on developing and 

23 conducting the State market rates survey described in sec24 tion 658E(c)(4)(A)(i).’’. 
77 

•S 525 RS 

1 SEC. 109. ALLOCATION OF FUNDS FOR INDIAN TRIBES, 

2 QUALITY IMPROVEMENT, AND A HOTLINE. 

3 (a) IN GENERAL.—Section 658O(a) of the Child Care 

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

5 9858m(a)) is amended— 

6 (1) in paragraph (2), by striking ‘‘not less than 

7 1 percent, and not more than 2 percent,’’ and insert8 ing ‘‘2 percent’’; and 

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

10 ‘‘(3) GRANTS TO IMPROVE QUALITY AND AC11 CESS.—The Secretary shall reserve an amount not to 

12 exceed $100,000,000 for each fiscal year to carry out 

13 section 658L(b), subject to the availability of appro14 priations for this purpose. 

15 ‘‘(4) TOLL-FREE HOTLINE.—The Secretary shall 

16 reserve an amount not to exceed $1,000,000 to carry 

17 out section 658L(c), subject to the availability of ap18 propriations for this purpose.’’. 

19 (b) CONFORMING AMENDMENT.—Section 658O(c)(1) of 

20 the Child Care and Development Block Grant Act of 1990 

21 (42 U.S.C. 9858m(c)(1)) is amended by inserting ‘‘(in ac22 cordance with the requirements of subparagraphs (E) and 

23 (F) of section 658E(c)(2) for such tribes or organizations)’’ 

24 after ‘‘applications under this section’’. 
78 

•S 525 RS 

1 SEC. 110. DEFINITIONS. 

2 (a) ELIGIBLE CHILD.—Section 658P(4) of the Child 

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

4 9858n(4)) is amended— 

5 (1) in subparagraph (B), by striking ‘‘85 percent 

6 of the State median income for a family of the same 

7 size’’ and inserting ‘‘an income level determined by 

8 the State involved, with priority based on need as de9 fined by the State’’; and 

10 (2) in subparagraph (C)— 

11 (A) in clause (i), by striking ‘‘a parent or 

12 parents’’ and inserting ‘‘a parent (including a 

13 legal guardian or foster parent) or parents’’; and 

14 (B) by striking clause (ii) and inserting the 

15 following: 

16 ‘‘(ii)(I) is receiving, or needs to receive, 

17 protective services (which may include foster 

18 care) or is a child with significant cognitive 

19 or physical disabilities as defined by the 

20 State; and 

21 ‘‘(II) resides with a parent (including 

22 a legal guardian or foster parent) or par23 ents not described in clause (i).’’. 

24 (b) CHILD WITH SPECIAL NEEDS.—Section 658P of 

25 the Child Care and Development Block Grant Act of 1990 
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1 (42 U.S.C. 9858n) is amended by inserting after paragraph 

2 (2) the following: 

3 ‘‘(3) CHILD WITH SPECIAL NEEDS.—The term 

4 ‘child with special needs’ means— 

5 ‘‘(A) a child with a disability, as defined in 

6 section 602 of the Individuals with Disabilities 

7 Education Act (20 U.S.C. 1401); 

8 ‘‘(B) a child who is eligible for early inter9 vention services under part C of the Individuals 

10 with Disabilities Education Act (20 U.S.C. 1431 

11 et seq.); and 

12 ‘‘(C) a child with special needs, as defined 

13 by the State involved.’’. 

14 (c) LEAD AGENCY.—Section 658P(8) of the Child Care 

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

16 9858n(8)) is amended by striking ‘‘section 658B(a)’’ and 

17 inserting ‘‘section 658D(a)’’. 

18 (d) PARENT.—Section 658P(9) of the Child Care and 

19 Development Block Grant Act of 1990 (42 U.S.C. 9858n(9)) 

20 is amended by inserting ‘‘, foster parent,’’ after ‘‘guardian’’. 

21 (e) NATIVE HAWAIIAN ORGANIZATION.—Section 

22 658P(14)(B) of the Child Care and Development Block 

23 Grant Act of 1990 (42 U.S.C. 9858n(14)(B)) is amended 

24 by striking ‘‘Native Hawaiian Organization, as defined in 

25 section 4009(4) of the Augustus F. Hawkins-Robert T. Staf-
80 

•S 525 RS 

1 ford Elementary and Secondary School Improvement 

2 Amendments of 1988 (20 U.S.C. 4909(4))’’ and inserting 

3 ‘‘Native Hawaiian organization, as defined in section 7207 

4 of the Elementary and Secondary Education Act of 1965 

5 (20 U.S.C. 7517)’’. 

6 (f) REDESIGNATION.—The Child Care and Develop7 ment Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is 

8 amended— 

9 (1) by redesignating section 658P as section 

10 658T; and 

11 (2) by moving that section 658T to the end of the 

12 Act. 

13 SEC. 111. RULES OF CONSTRUCTION. 

14 The Child Care and Development Block Grant Act of 

15 1990 (as amended by section 110(f)) is further amended by 

16 inserting after section 658O (42 U.S.C. 9858m) the fol17 lowing: 

18 ‘‘SEC. 658P. RULES OF CONSTRUCTION. 

19 ‘‘Nothing in this subchapter shall be construed to re20 quire a State to impose State child care licensing require21 ments on any type of early childhood provider, including 

22 any such provider who is exempt from State child care li23 censing requirements on the date of enactment of the Caring 

24 for Children Act of 2005.’’. 
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1 TITLE II—ENHANCING SECURITY 

2 AT CHILD CARE CENTERS IN 

3 FEDERAL FACILITIES 

4 SEC. 201. DEFINITIONS. 

5 In this title: 

6 (1) ADMINISTRATOR.—The term ‘‘Adminis7 trator’’ means the Administrator of General Services. 

8 (2) CORRESPONDING CHILD CARE FACILITY.— 

9 The term ‘‘corresponding child care facility’’, used 

10 with respect to the Chief Administrative Officer of the 

11 House of Representatives, the Librarian of Congress, 

12 or the head of a designated entity in the Senate, 

13 means a child care facility operated by, or under a 

14 contract or licensing agreement with, an office of the 

15 House of Representatives, the Library of Congress, or 

16 an office of the Senate, respectively. 

17 (3) ENTITY SPONSORING A CHILD CARE FACIL18 ITY.—The term ‘‘entity sponsoring’’, used with respect 

19 to a child care facility, means a Federal agency that 

20 operates, or an entity that enters into a contract or 

21 licensing agreement with a Federal agency to operate, 

22 a child care facility primarily for the use of Federal 

23 employees. 

24 (4) EXECUTIVE AGENCY.—The term ‘‘Executive 

25 agency’’ has the meaning given the term in section 
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1 105 of title 5, United States Code, except that the 

2 term— 

3 (A) does not include the Department of De4 fense and the Coast Guard; and 

5 (B) includes the General Services Adminis6 tration, with respect to the administration of a 

7 facility described in paragraph (5)(B). 

8 (5) EXECUTIVE FACILITY.—The term ‘‘executive 

9 facility’’— 

10 (A) means a facility that is owned or leased 

11 by an Executive agency; and 

12 (B) includes a facility that is owned or 

13 leased by the General Services Administration on 

14 behalf of a judicial office. 

15 (6) FEDERAL AGENCY.—The term ‘‘Federal agen16 cy’’ means an Executive agency, a legislative office, or 

17 a judicial office. 

18 (7) JUDICIAL FACILITY.—The term ‘‘judicial fa19 cility’’ means a facility that is owned or leased by a 

20 judicial office (other than a facility that is also a fa21 cility described in paragraph (5)(B)). 

22 (8) JUDICIAL OFFICE.—The term ‘‘judicial of23 fice’’ means an entity of the judicial branch of the 

24 Federal Government. 
83 

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1 (9) LEGISLATIVE FACILITY.—The term ‘‘legisla2 tive facility’’ means a facility that is owned or leased 

3 by a legislative office. 

4 (10) LEGISLATIVE OFFICE.—The term ‘‘legisla5 tive office’’ means an entity of the legislative branch 

6 of the Federal Government. 

7 SEC. 202. ENHANCING SECURITY. 

8 (a) COVERAGE.— 

9 (1) EXECUTIVE BRANCH.—The Administrator 

10 shall issue the regulations described in subsection (b) 

11 for child care facilities, and entities sponsoring child 

12 care facilities, in executive facilities. 

13 (2) LEGISLATIVE BRANCH.—The Chief Adminis14 trative Officer of the House of Representatives, the Li15 brarian of Congress, and the head of a designated en16 tity in the Senate shall issue the regulations described 

17 in subsection (b) for corresponding child care facili18 ties, and entities sponsoring the corresponding child 

19 care facilities, in legislative facilities. 

20 (3) JUDICIAL BRANCH.—The Director of the Ad21 ministrative Office of the United States Courts shall 

22 issue the regulations described in subsection (b) for 

23 child care facilities, and entities sponsoring child care 

24 facilities, in judicial facilities. 
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1 (b) REGULATIONS.—The officers and designated entity 

2 described in subsection (a) shall issue regulations that con3 cern— 

4 (1) matters relating to an occupant emergency 

5 plan and evacuations, such as— 

6 (A) providing for building security com7 mittee membership for each director of a child 

8 care facility described in subsection (a); 

9 (B) establishing a separate section in an oc10 cupant emergency plan for each such facility; 

11 (C) promoting familiarity with procedures 

12 and evacuation routes for different types of emer13 gencies (such as emergencies caused by hazardous 

14 materials, a fire, a bomb threat, a power failure, 

15 or a natural disaster); 

16 (D) strengthening onsite relationships be17 tween security personnel and the personnel of 

18 such a facility, such as by ensuring that the post 

19 orders of guards reflect responsibility for the fa20 cility; 

21 (E) providing specific, clear, and concise 

22 evacuation instructions for a facility, including 

23 instructions specifying who authorizes an evacu24 ation; 
85 

•S 525 RS 

1 (F) providing for good evacuation equip2 ment, especially cribs; and 

3 (G) promoting the ability to evacuate with4 out outside assistance; and 

5 (2) matters relating to relocation sites, such as— 

6 (A) promoting an informed parent body 

7 that is knowledgeable about evacuation proce8 dures and relocation sites; 

9 (B) providing regularly updated parent 

10 contact information (regarding matters such as 

11 names, locations, electronic mail addresses, and 

12 cell phone and other telephone numbers); 

13 (C) establishing remote telephone contact for 

14 parents, to and from areas that are not less than 

15 10 miles from such a facility; and 

16 (D) providing for an alternate site (in ad17 dition to regular sites) in the event of a catas18 trophe, which site may include— 

19 (i) a site that would be an unreason20 able distance from the facility under normal 

21 circumstances; and 

22 (ii) a facility with 24-hour operations, 

23 such as a hotel or law school library. 
86 

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1 TITLE III—REMOVAL OF BAR2 RIERS TO INCREASING THE 

3 SUPPLY OF QUALITY CHILD 

4 CARE 

5 SEC. 301. SMALL BUSINESS CHILD CARE GRANT PROGRAM. 

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

7 Human Services (referred to in this section as the ‘‘Sec8 retary’’) shall establish a program to award grants to 

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

10 funds to encourage the establishment and operation of em11 ployer-operated child care programs. 

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

13 under this section, a State shall prepare and submit to the 

14 Secretary an application at such time, in such manner, and 

15 containing such information as the Secretary may require, 

16 including an assurance that the funds required under sub17 section (e) will be provided. 

18 (c) AMOUNT AND PERIOD OF GRANT.—The Secretary 

19 shall determine the amount of a grant to a State under 

20 this section based on the population of the State as com21 pared to the population of all States receiving grants under 

22 this section. The Secretary shall make the grant for a period 

23 of 3 years. 

24 (d) USE OF FUNDS.— 
87 

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1 (1) IN GENERAL.—A State shall use amounts 

2 provided under a grant awarded under this section to 

3 provide assistance to small businesses (or consortia 

4 formed in accordance with paragraph (3)) located in 

5 the State to enable the small businesses (or consortia) 

6 to establish and operate child care programs. Such as7 sistance may include— 

8 (A) technical assistance in the establishment 

9 of a child care program; 

10 (B) assistance for the startup costs related 

11 to a child care program; 

12 (C) assistance for the training of child care 

13 providers; 

14 (D) scholarships for low-income wage earn15 ers; 

16 (E) the provision of services to care for sick 

17 children or to provide care to school-aged chil18 dren; 

19 (F) the entering into of contracts with local 

20 resource and referral organizations or local 

21 health departments; 

22 (G) assistance for care for children with 

23 disabilities; 

24 (H) payment of expenses for renovation or 

25 operation of a child care facility; or 
88 

•S 525 RS 

1 (I) assistance for any other activity deter2 mined appropriate by the State. 

3 (2) APPLICATION.—In order for a small business 

4 or consortium to be eligible to receive assistance from 

5 a State under this section, the small business involved 

6 shall prepare and submit to the State an application 

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

8 information as the State may require. 

9 (3) PREFERENCE.— 

10 (A) IN GENERAL.—In providing assistance 

11 under this section, a State shall give priority to 

12 an applicant that desires to form a consortium 

13 to provide child care in a geographic area within 

14 the State where such care is not generally avail15 able or accessible. 

16 (B) CONSORTIUM.—For purposes of sub17 paragraph (A), a consortium shall be made up 

18 of 2 or more entities that shall include small 

19 businesses and that may include large businesses, 

20 nonprofit agencies or organizations, local govern21 ments, or other appropriate entities. 

22 (4) LIMITATIONS.—With respect to grant funds 

23 received under this section, a State may not provide 

24 in excess of $500,000 in assistance from such funds 

25 to any single applicant. 
89 

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1 (e) MATCHING REQUIREMENT.—To be eligible to re2 ceive a grant under this section, a State shall provide assur3 ances to the Secretary that, with respect to the costs to be 

4 incurred by a covered entity receiving assistance in car5 rying out activities under this section, the covered entity 

6 will make available (directly or through donations from 

7 public or private entities) non-Federal contributions to such 

8 costs in an amount equal to— 

9 (1) for the first fiscal year in which the covered 

10 entity receives such assistance, not less than 50 per11 cent of such costs ($1 for each $1 of assistance pro12 vided to the covered entity under the grant); 

13 (2) for the second fiscal year in which the covered entity receives such assistance, not less than 662 14 ⁄3

15 percent of such costs ($2 for each $1 of assistance pro16 vided to the covered entity under the grant); and 

17 (3) for the third fiscal year in which the covered 

18 entity receives such assistance, not less than 75 per19 cent of such costs ($3 for each $1 of assistance pro20 vided to the covered entity under the grant). 

21 (f) REQUIREMENTS OF PROVIDERS.—To be eligible to 

22 receive assistance under a grant awarded under this section, 

23 a child care provider— 

24 (1) who receives assistance from a State shall 

25 comply with all applicable State and local licensing 
90 

•S 525 RS 

1 and regulatory requirements and all applicable health 

2 and safety standards in effect in the State; and 

3 (2) who receives assistance from an Indian tribe 

4 or tribal organization shall comply with all applica5 ble regulatory standards. 

6 (g) STATE-LEVEL ACTIVITIES.—A State may not re7 tain more than 3 percent of the amount described in sub8 section (c) for State administration and other State-level 

9 activities. 

10 (h) ADMINISTRATION.— 

11 (1) STATE RESPONSIBILITY.—A State shall have 

12 responsibility for administering a grant awarded for 

13 the State under this section and for monitoring cov14 ered entities that receive assistance under such grant. 

15 (2) AUDITS.—A State shall require each covered 

16 entity receiving assistance under the grant awarded 

17 under this section to conduct an annual audit with 

18 respect to the activities of the covered entity. Such au19 dits shall be submitted to the State. 

20 (3) MISUSE OF FUNDS.— 

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

22 through an audit or otherwise, that a covered en23 tity receiving assistance under a grant awarded 

24 under this section has misused the assistance, the 

25 State shall notify the Secretary of the misuse. 
91 

•S 525 RS 

1 The Secretary, upon such a notification, may 

2 seek from such a covered entity the repayment of 

3 an amount equal to the amount of any such mis4 used assistance plus interest. 

5 (B) APPEALS PROCESS.—The Secretary 

6 shall by regulation provide for an appeals proc7 ess with respect to repayments under this para8 graph. 

9 (i) REPORTING REQUIREMENTS.— 

10 (1) 2-YEAR STUDY.— 

11 (A) IN GENERAL.—Not later than 2 years 

12 after the date on which the Secretary first 

13 awards grants under this section, the Secretary 

14 shall conduct a study to determine— 

15 (i) the capacity of covered entities to 

16 meet the child care needs of communities 

17 within States; 

18 (ii) the kinds of consortia that are 

19 being formed with respect to child care at 

20 the local level to carry out programs funded 

21 under this section; and 

22 (iii) who is using the programs funded 

23 under this section and the income levels of 

24 such individuals. 
92 

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

2 after the date on which the Secretary first 

3 awards grants under this section, the Secretary 

4 shall prepare and submit to the appropriate 

5 committees of Congress a report on the results of 

6 the study conducted in accordance with subpara7 graph (A). 

8 (2) 4-YEAR STUDY.— 

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

10 after the date on which the Secretary first 

11 awards grants under this section, the Secretary 

12 shall conduct a study to determine the number of 

13 child care facilities that are funded through cov14 ered entities that received assistance through a 

15 grant awarded under this section and that re16 main in operation, and the extent to which such 

17 facilities are meeting the child care needs of the 

18 individuals served by such facilities. 

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

20 after the date on which the Secretary first 

21 awards grants under this section, the Secretary 

22 shall prepare and submit to the appropriate 

23 committees of Congress a report on the results of 

24 the study conducted in accordance with subpara25 graph (A). 
93 

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1 (j) DEFINITIONS.—In this section: 

2 (1) COVERED ENTITY.—The term ‘‘covered enti3 ty’’ means a small business or a consortium formed 

4 in accordance with subsection (d)(3). 

5 (2) INDIAN COMMUNITY.—The term ‘‘Indian 

6 community’’ means a community served by an In7 dian tribe or tribal organization. 

8 (3) INDIAN TRIBE; TRIBAL ORGANIZATION.—The 

9 terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ have 

10 the meanings given the terms in section 658T of the 

11 Child Care and Development Block Grant Act of 

12 1990. 

13 (4) SMALL BUSINESS.—The term ‘‘small busi14 ness’’ means an employer who employed an average 

15 of at least 2 but not more than 50 employees on the 

16 business days during the preceding calendar year. 

17 (5) STATE.—The term ‘‘State’’ has the meaning 

18 given the term in section 658T of the Child Care and 

19 Development Block Grant Act of 1990. 

20 (k) APPLICATION TO INDIAN TRIBES AND TRIBAL OR21 GANIZATIONS.—In this section: 

22 (1) IN GENERAL.—Except as provided in sub23 section (f)(1), and in paragraphs (2) and (3), the 

24 term ‘‘State’’ includes an Indian tribe or tribal orga25 nization. 
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1 (2) GEOGRAPHIC REFERENCES.—The term 

2 ‘‘State’’ includes an Indian community in subsections 

3 (c) (the second and third place the term appears), 

4 (d)(1) (the second place the term appears), (d)(3)(A) 

5 (the second place the term appears), and (i)(1)(A)(i). 

6 (3) STATE-LEVEL ACTIVITIES.—The term ‘‘State7 level activities’’ includes activities at the tribal level. 

8 (l) AUTHORIZATION OF APPROPRIATIONS.— 

9 (1) IN GENERAL.—There is authorized to be ap10 propriated to carry out this section, $50,000,000 for 

11 the period of fiscal years 2006 through 2010. 

12 (2) STUDIES AND ADMINISTRATION.—With re13 spect to the total amount appropriated for such pe14 riod in accordance with this subsection, not more 

15 than $2,500,000 of that amount may be used for ex16 penditures related to conducting studies required 

17 under, and the administration of, this section. 

18 (m) TERMINATION OF PROGRAM.—The program estab19 lished under subsection (a) shall terminate on September 

20 30, 2010. 

Calendar No. 199 

109TH CONGRESS 

1ST SESSION S. 525 

[Report No. 109–130] 

A BILL 

To amend the Child Care and Development Block 

school preparedness, and for other purposes. prove early learning opportunities and promote Grant Act of 1990 to reauthorize the Act, to imAUGUST 31, 2005 

Reported with an amendment