I 

108TH CONGRESS 

1ST SESSION H. R. 936

To leave no child behind. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 26, 2003

Mr. GEORGE MILLER of California (for himself, Mr. WEXLER, Mr. HOEFFEL, 

Mrs. NAPOLITANO, Mr. PAYNE, Mr. OWENS, Mr. SERRANO, Mr. KENNEDY of Rhode Island, Mr. KILDEE, Mr. ANDREWS, Mr. UDALL of New 

Mexico, Mr. BROWN of Ohio, Mr. ABERCROMBIE, Mrs. DAVIS of California, Ms. LEE, Ms. WOOLSEY, Ms. SOLIS, Mr. KUCINICH, Ms. 

MILLENDER-MCDONALD, Mr. SCOTT of Virginia, Mr. MORAN of Virginia, 

Mr. TIERNEY, Ms. PELOSI, Mr. STARK, Ms. WATSON, Mr. FARR, and 

Ms. LOFGREN) introduced the following bill; which was referred to the 

Committee on Ways and Means, and in addition to the Committees on 

Energy and Commerce, Education and the Workforce, Agriculture, the 

Judiciary, Government Reform, and Transportation and Infrastructure, 

for a period to be subsequently determined by the Speaker, in each case 

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

committee concerned 

A BILL

To leave no child behind.

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

3 SECTION 1. SHORT TITLE. 

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

5 Act of 2003’’. 
2

•HR 936 IH 

1 SEC. 2. TABLE OF CONTENTS. 

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

TITLE I—HEALTHY START—CHILDREN’S HEALTH INSURANCE 

Subtitle A—Children’s Health Insurance 

Sec. 1001. Medikids health insurance. 

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

Sec. 1003. Medikids premium. 

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

Sec. 1005. Report on long-term revenues. 

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

Improvements 

CHAPTER 1—ELIGIBILITY EXPANSIONS

SUBCHAPTER A—MEDICAID AND SCHIP

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

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

and title XXI. 

SUBCHAPTER B—FAMILY OPPORTUNITY ACT

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

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

coverage for such children. 

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

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

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

with potentially severe disabilities. 

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

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

CHAPTER 2—ENROLLMENT IMPROVEMENTS

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

program. 

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

CHAPTER 3—EFFECTIVE DATE

Sec. 1131. Effective date. 

Subtitle C—Improving Access to Care 

CHAPTER 1—COMMISSION

Sec. 1201. Commission on Children’s Access To Care. 

CHAPTER 2—CHILDREN’S HEALTH INSURANCE ACCOUNTABILITY

Sec. 1211. Short title. 
3

•HR 936 IH 

Sec. 1212. Findings. 

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

Sec. 1214. Amendments to the employee retirement income security act of 

1974. 

Sec. 1215. Studies. 

Sec. 1216. Effective dates. 

CHAPTER 3—EPSDT 

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

Subtitle D—Reducing Public Health Risks 

CHAPTER 1—ASTHMA TREATMENTS

Sec. 1301. Findings. 

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

Head Start Programs. 

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

enrolled in public schools. 

Sec. 1304. General effective date. 

CHAPTER 2—INCREASE IN FUNDING FOR HUD PROGRAMS

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

Sec. 1312. Healthy homes initiative program. 

CHAPTER 3—YOUTH SMOKING CESSATION AND EDUCATION

Sec. 1321. Short title. 

SUBCHAPTER A—PROTECTION OF CHILDREN FROM TOBACCO

PART I—FOOD AND DRUG ADMINISTRATION JURISDICTION AND GENERAL

AUTHORITY

Sec. 1331. Reference. 

Sec. 1332. Statement of general authority. 

Sec. 1333. Nonapplicability to other drugs or devices. 

Sec. 1334. Conforming amendments to confirm jurisdiction. 

Sec. 1335. General rule. 

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

PART II—REGULATION OF TOBACCO PRODUCTS

Sec. 1341. Performance standards. 

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

products. 

Sec. 1343. Funding. 

Sec. 1344. Repeals. 

SUBCHAPTER B—MISCELLANEOUS PROVISIONS

Sec. 1351. Nonapplication to tobacco producers. 

Sec. 1352. Equal treatment of retail outlets. 

CHAPTER 4—COVERAGE OF CHILDHOOD IMMUNIZATIONS

Sec. 1361. Short title. 
4

•HR 936 IH 

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

1974. 

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

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

Sec. 1365. Effective dates. 

Subtitle E—Reducing Environmental Health Risks 

CHAPTER 1—ENVIRONMENTAL PROTECTION OF CHILDREN

Sec. 1401. Short title. 

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

Sec. 1403. Conforming amendment. 

Sec. 1413. Conforming amendment. 

Sec. 1414. Effective date. 

TITLE II—HEALTHY START—SUPPORT FOR HEALTHY 

DEVELOPMENT 

Subtitle A—Promotion of State and Local Support 

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

Subtitle B—Family and Medical Leave Expansion 

Sec. 2101. Short title. 

Sec. 2102. Findings. 

CHAPTER 1—FAMILY INCOME TO RESPOND TO SIGNIFICANT TRANSITIONS

Sec. 2111. Short title. 

Sec. 2112. Purposes. 

Sec. 2113. Definitions. 

Sec. 2114. Demonstration projects. 

Sec. 2115. Notification. 

Sec. 2116. Evaluations and reports. 

Sec. 2117. Authorization of appropriations. 

Sec. 2118. Technical and conforming amendments. 

CHAPTER 2—FAMILY FRIENDLY WORKPLACES

Sec. 2121. Short title. 

Sec. 2122. Coverage of employees. 

CHAPTER 3—EMPLOYMENT PROTECTION FOR BATTERED WOMEN

Sec. 2131. Entitlement to leave for addressing domestic violence for non-Federal employees. 

Sec. 2132. Entitlement to leave for addressing domestic violence for Federal 

employees. 

Sec. 2133. Existing leave usable for domestic violence. 

CHAPTER 4—FEDERAL EMPLOYEES PAID PARENTAL LEAVE

Sec. 2141. Short title. 

Sec. 2142. Demonstration project. 

Sec. 2143. Technical and conforming amendments. 

Sec. 2144. Effective date. 
5

•HR 936 IH 

CHAPTER 5—TIME FOR SCHOOLS

Sec. 2151. Short title. 

Sec. 2152. General requirements for leave. 

Sec. 2153. School involvement leave for civil service employees. 

Sec. 2154. Effective date. 

Subtitle C—Health Care for the Uninsured 

Sec. 2201. Familycare coverage of parents under the medicaid program and 

title XXI. 

Subtitle D—Awareness of Environmental Risks to Children 

Sec. 2301. Short title. 

Sec. 2302. Finding. 

CHAPTER 1—CHILDREN’S ENVIRONMENTAL PROTECTION

SUBCHAPTER A—DISCLOSURE OF INDUSTRIAL RELEASES THAT PRESENT A

SIGNIFICANT RISK TO CHILDREN

Sec. 2311. Reporting requirements. 

SUBCHAPTER B—DISCLOSURE OF HIGH HEALTH RISK CHEMICALS IN

CHILDREN’S CONSUMER PRODUCTS

Sec. 2321. List of toxic chemicals. 

Sec. 2322. Reporting of toxic chemicals in consumer products. 

Sec. 2323. Exemptions. 

Sec. 2324. Private citizen enforcement. 

CHAPTER 2—PUBLIC RIGHT TO KNOW ABOUT TOXIC CHEMICAL USE

Sec. 2331. Disclosure of toxic chemical use by comparable facilities. 

Sec. 2332. Disclosure of toxic chemical use. 

Sec. 2333. Streamlined data collection and dissemination. 

Sec. 2334. Trade secret protection. 

Subtitle E—Promoting Responsible Fatherhood 

CHAPTER 1—BLOCK GRANTS

Sec. 2401. Block grants to States to encourage media campaigns. 

Sec. 2402. Responsible fatherhood block grant. 

CHAPTER 2—NATIONAL CLEARINGHOUSE

Sec. 2411. National clearinghouse for responsible fatherhood programs. 

TITLE III—HEAD START AND CHILD CARE 

Subtitle A—Infants and Toddlers 

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

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

Subtitle B—Child Care Access 
6

•HR 936 IH 

CHAPTER 1—IMPROVING ACCESS TO CHILD CARE

Sec. 3011. Incentive grants to States. 

Sec. 3012. Payment rates. 

CHAPTER 2—IMPROVEMENTS IN ACCESS TO CHILD CARE

Sec. 3111. Goals. 

Sec. 3112. Authorization of appropriations. 

Sec. 3113. State plan requirements. 

Sec. 3114. Funds for indian tribes. 

Sec. 3115. Definitions. 

Subtitle C—Child Care Quality Improvement 

CHAPTER 1—FOCUS ON COMMITTED AND UNDERPAID STAFF FOR

CHILDREN’S SAKE

Sec. 3201. Short title. 

Sec. 3202. Findings and purpose. 

Sec. 3203. Definitions. 

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

for child care provider scholarships. 

Sec. 3205. Allotments to States. 

Sec. 3206. Application and plan. 

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

Sec. 3208. Child care provider scholarship program. 

Sec. 3209. Annual report. 

Sec. 3210. Authorization of appropriations. 

CHAPTER 2—STRENGTHENING QUALITY THROUGH THE CHILD CARE AND

DEVELOPMENT BLOCK GRANT

Sec. 3231. State plan. 

Sec. 3232. Child care quality improvements. 

Sec. 3233. Administration and enforcement. 

CHAPTER 3—CHILD CARE CENTERS IN FEDERAL FACILITIES

Sec. 3241. Short title. 

Sec. 3242. Definitions. 

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

Sec. 3244. Federal child care evaluation. 

Sec. 3245. Child care services for Federal employees. 

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

agencies.

CHAPTER 4—EARLY LEARNING

Sec. 3251. Short title; findings. 

Sec. 3252. Purposes. 

Sec. 3253. Definitions. 

Sec. 3254. Prohibitions. 

Sec. 3255. Authorization and appropriation of funds. 

Sec. 3256. Allotments to States. 

Sec. 3257. Administrative costs. 

Sec. 3258. State requirements. 
7

•HR 936 IH 

Sec. 3259. State administration. 

Sec. 3260. Local application. 

Sec. 3261. Local administration. 

Sec. 3262. Use of funds. 

Sec. 3263. Repeal. 

Sec. 3264. Effective date. 

CHAPTER 5—CHILD CARE FACILITIES FINANCING

Sec. 3271. Short title. 

Sec. 3272. Technical and financial assistance grants. 

Subtitle D—Head Start Access and Improvement 

Sec. 3301. Authorization of appropriations. 

Subtitle E—Education Improvements 

CHAPTER 1—INCREASING ACCESS TO QUALITY PREKINDERGARTEN

PROGRAMS

Sec. 3401. Prekindergarten programs. 

CHAPTER 2—INCREASING THE AVAILABILITY OF BOOKS

Sec. 3411. Short title. 

Sec. 3412. Findings. 

Sec. 3413. Definitions. 

Sec. 3414. Grants to State agencies. 

Sec. 3415. Contracts to child care resource and

referral agencies. 

Sec. 3416. Use of funds. 

Sec. 3417. Report to Congress. 

Sec. 3418. Special postage stamps for child literacy. 

Sec. 3419. Authorization of appropriations. 

CHAPTER 3—QUALITY TEACHING AND LEADERSHIP

SUBCHAPTER A—AMENDMENT TO TITLE II OF THE ELEMENTARY AND

SECONDARY EDUCATION ACT OF 1965

Sec. 3421. Amendments to title II. 

SUBCHAPTER B—NATIONAL BOARD CERTIFICATION PROGRAM

Sec. 3431. Purpose. 

Sec. 3432. Grants to expand participation in the national board certification 

program. 

SUBCHAPTER C—STUDENT LOAN FORGIVENESS FOR TEACHERS

Sec. 3441. Student loan forgiveness for teachers. 

CHAPTER 4—SCHOOL CONSTRUCTION

SUBCHAPTER A—SCHOOL MODERNIZATION BONDS

Sec. 3451. Short title. 

Sec. 3452. Expansion of incentives for public schools. 
8

•HR 936 IH 

Sec. 3453. Application of certain labor standards on construction projects financed under public school modernization program. 

SUBCHAPTER B—SCHOOLS AS CENTERS OF THE COMMUNITY

Sec. 3461. Findings. 

Sec. 3462. Purpose. 

Sec. 3463. Program authorized. 

Sec. 3464. Use of funds. 

Sec. 3465. Applications. 

Sec. 3466. Authorization of appropriations. 

CHAPTER 5—CHILD OPPORTUNITY ZONE FAMILY CENTERS

Sec. 3471. Child opportunity zone family centers. 

TITLE IV—FAIR START—LIFTING CHILDREN OUT OF POVERTY 

Subtitle A—Expanding the Child Tax Credit 

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

Subtitle B—Strengthening the Earned Income Tax Credit 

Sec. 4101. Short title. 

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

Sec. 4103. Simplification of definition of earned income. 

Sec. 4104. Simplification of definition of child dependent. 

Sec. 4105. Modification of joint return requirement for earned income tax credit. 

Subtitle C—Expanding the Dependent Care Tax Credit 

Sec. 4201. Dependent care tax credit. 

TITLE V—FAIR START—SUPPORT TO PROMOTE WORK AND 

REDUCE POVERTY 

Subtitle A—Gateways Grant Program 

Sec. 5001. Gateways grant program. 

Subtitle B—Support From Both Parents 

CHAPTER 1—CHILD SUPPORT DISTRIBUTION

Sec. 5101. Short title. 

SUBCHAPTER A—DISTRIBUTION OF CHILD SUPPORT

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

SUBCHAPTER B—REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS

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

TANF recipients. 
9

•HR 936 IH 

SUBCHAPTER C—DEMONSTRATIONS OF EXPANDED INFORMATION AND

ENFORCEMENT

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

Sec. 5122. Demonstrations involving establishment and enforcement of child 

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

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

Sec. 5124. Effective date. 

SUBCHAPTER D—EXPANDED ENFORCEMENT

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

denial. 

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

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

disabilities in order to enforce child support obligations. 

SUBCHAPTER E—MISCELLANEOUS

Sec. 5131. Report on undistributed child support payments. 

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

Sec. 5133. Immigration provisions. 

Sec. 5134. Correction of errors in conforming amendments in the Welfare-toWork and Child Support Amendments of 1999. 

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

training of staff of certain child welfare agencies. 

Sec. 5136. Effective date. 

CHAPTER 2—CHILD SUPPORT DEMONSTRATION PROGRAMS

Sec. 5141. Short title. 

Sec. 5142. Purposes. 

Sec. 5143. Definitions. 

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

Subtitle C—Fair Wages and Unemployment Insurance 

CHAPTER 1—FAIR MINIMUM WAGE

Sec. 5201. Short title. 

Sec. 5202. Minimum wage. 

Sec. 5203. Applicability of minimum wage to the commonwealth of the northern 

mariana islands. 

CHAPTER 2—LIVABLE WAGES FOR EMPLOYEES UNDER FEDERAL

CONTRACTS

Sec. 5211. Short title. 

Sec. 5212. Findings. 

Sec. 5213. Poverty level wage. 

Sec. 5214. Effective date. 

CHAPTER 3—UNEMPLOYMENT INSURANCE
10

•HR 936 IH 

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

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

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

Subtitle D—Jobs for Low-Income Parents 

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

assistance limit. 

Sec. 5302. Replacement of caseload reduction credit with employment credit. 

Sec. 5303. States to receive partial credit toward work participation rate for recipients engaged in part-time work. 

Sec. 5304. TANF recipients who qualify for supplemental security income benefits removed from work participation rate calculation for entire 

year. 

Sec. 5305. Elimination of limit on number of TANF recipients enrolled in vocational education or high school who may be counted towards 

the work participation requirement. 

Sec. 5306. Counting of up to 2 years of vocational or educational training (including postsecondary education), work-study, and related internships as work activities. 

Sec. 5307. Limited counting of certain activities leading to employment as work 

activity. 

Sec. 5308. Elimination of separate work participation rate for 2-parent families. 

Sec. 5309. Addition of poverty reduction bonus to TANF. 

Sec. 5310. Participation in workforce investment boards. 

Sec. 5311. Clarification of TANF purpose. 

Sec. 5312. Effective date. 

Subtitle E—Incentives to Serve Families 

Sec. 5401. Development of model caseworker training materials. 

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

to work. 

Sec. 5403. Strengthening of TANF individual responsibility plans. 

Sec. 5404. Effective date. 

Subtitle F—Addressing Work Barriers 

Sec. 5501. Funding for access to jobs program. 

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

employment of TANF recipients. 

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

TANF assistance based on severe barriers to employment. 

Sec. 5504. Effective date. 

Subtitle G—Protection for Families in Need 

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

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

TANF. 

Sec. 5603. Treatment of aliens under the TANF program. 

Sec. 5604. Effective date. 
11

•HR 936 IH 

Subtitle H—TANF Reauthorization 

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

Sec. 5702. Prohibition on supplantation of TANF funds. 

TITLE VI—FAIR START 

Subtitle A—Child and Adult Care Food Program 

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

program. 

Sec. 6002. Categorical eligibility requirements. 

Sec. 6003. Increase in administrative reimbursement rates. 

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

Subtitle B—Food Stamp Program 

Sec. 6101. Restoration of food stamp benefits for qualified aliens. 

Sec. 6102. Conforming food stamp and medicaid income definitions; simplified 

income calculations. 

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

Sec. 6104. Encouragement of collection of child support. 

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

high shelter costs. 

Sec. 6106. Periodic redetermination of eligibility. 

Sec. 6107. Transitional benefits option. 

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

TITLE VII—FAIR START HOUSING 

Subtitle A—Section 8 Vouchers 

Sec. 7001. Rental assistance voucher program. 

Sec. 7002. Voucher success fund. 

Subtitle B—National Affordable Housing Trust Fund 

Sec. 7101. Purposes. 

Sec. 7102. National Affordable Housing Trust Fund. 

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

Sec. 7104. Regulations. 

Subtitle C—Housing Preservation Matching Grants 

Sec. 7201. Short title. 

Sec. 7202. Findings and purposes. 

Sec. 7203. Definitions. 

Sec. 7204. Authority. 

Sec. 7205. Applications. 

Sec. 7206. Use of grants. 

Sec. 7207. Grant amount limitation. 

Sec. 7208. Matching requirements. 

Sec. 7209. Treatment of subsidy layering requirements. 

Sec. 7210. Regulations. 

Sec. 7211. Authorization of appropriations. 

TITLE VIII—SAFE START 
12

•HR 936 IH 

Subtitle A—Promotion of Permanency for Children 

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

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

Sec. 8003. Kinship guardianship assistance payments for children. 

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

Sec. 8005. Establishment of uniform Federal matching rate. 

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

special needs who have been in their foster care. 

Sec. 8007. Extension of adoption assistance payments. 

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

care institutions, or supervised living arrangements for young 

people aging out of foster care. 

Sec. 8009. Additional accountability. 

Sec. 8010. Authority of indian tribes to receive Federal funds for foster care 

and adoption assistance. 

Subtitle B—Social Services Block Grant 

Sec. 8101. Short title. 

Sec. 8102. Findings. 

Sec. 8103. Restoration of authority to transfer up to 10 percent of TANF 

funds to the Social Services Block Grant. 

Sec. 8104. Restoration of funds for the Social Services Block Grant. 

Sec. 8105. Requirement to submit annual report on State activities. 

Subtitle C—Child Protection and Alcohol and Drug Partnerships 

Sec. 8201. Short title. 

Sec. 8202. Child protection/alcohol and drug partnerships for children. 

Subtitle D—Permanency Grants 

Sec. 8301. Establishment of permanency grants program. 

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

Sec. 8401. Findings. 

Sec. 8402. Purpose. 

Sec. 8403. Amendments to Acts addressing the needs of children exposed to domestic violence. 

Subtitle F—Enhancing Healthy Emotional Development in Young Children 

Sec. 8501. Enhancing healthy emotional development. 

TITLE IX—SUCCESSFUL TRANSITION TO ADULTHOOD 

Subtitle A—Youth Development 

CHAPTER 1—SHORT TITLE; POLICY; DEFINITIONS

Sec. 9001. Short title. 

Sec. 9002. A national youth policy. 

Sec. 9003. Definitions. 

CHAPTER 2—GRANTS FOR STATE AND COMMUNITY PROGRAMS
13

•HR 936 IH 

Sec. 9101. Purpose. 

Sec. 9102. Authorization of appropriations. 

Sec. 9103. Allotments to States. 

Sec. 9104. State youth development agencies and youth development areas. 

Sec. 9105. State youth development plans. 

Sec. 9106. Distribution of funds for State activities and area allocations. 

Sec. 9107. Youth development consortia. 

Sec. 9108. Area youth development plans. 

Sec. 9109. Grants and contracts to eligible entities. 

Sec. 9110. Eligible entities. 

Sec. 9111. Applications. 

Sec. 9112. Youth development programs. 

CHAPTER 3—ACCOUNTABILITY

Sec. 9201. Purposes. 

Sec. 9202. Federal level accountability. 

Sec. 9203. State level accountability. 

Sec. 9204. Local level accountability. 

Sec. 9205. State audit. 

CHAPTER 4—TRAINING, RESEARCH, AND EVALUATION

Sec. 9301. Purpose. 

Sec. 9302. Grants and contracts. 

Sec. 9303. Authorization of appropriations. 

Subtitle E—Coordination of National Youth Policy 

Sec. 9401. Coordinating Council for National Youth Policy. 

Subtitle B—Youth Programs 

Sec. 9201. Americorps. 

Sec. 9202. Youthbuild program. 

Sec. 9203. Youth workforce investment activities. 

Sec. 9204. Transition training for reintegrating youth offenders. 

TITLE X—SAFE START—JUVENILE JUSTICE 

Subtitle A—Juvenile Delinquency Prevention and Protection 

Sec. 10001. Definition of juvenile. 

Sec. 10002. State plan allocation. 

Sec. 10003. State plan requirements. 

Subtitle B—Mental Health Juvenile Justice 

Sec. 10101. Short title. 

Sec. 10102. Training of justice system personnel. 

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

Sec. 10104. Initiative for comprehensive, intersystem programs. 

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

With Mental Disorders. 

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

Sec. 10107. Inapplicability of amendments. 

Subtitle C—Juvenile Justice and Accountability 
14

•HR 936 IH 

Sec. 10201. Increase in funding for title III of the JJDPA. 

Sec. 10202. Funding for the services for youthful offenders. 

TITLE XI—SAFE START—GUN SAFETY 

Subtitle A—Closing the Gun Show Loophole 

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

Subtitle B—Child Safety Locks 

Sec. 11101. Requirement of child handgun safety locks. 

Subtitle C—Unlawful Weapons Transfers 

Sec. 11201. Unlawful weapons transfers to juveniles. 

Subtitle D—Large Capacity Ammunition Feeding Devices 

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

Subtitle E—Enforcement of Gun Laws 

Sec. 11401. Enhance enforcement of gun violence laws.

Subtitle F—Miscellaneous 

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

Sec. 11502. Regulation of internet firearms transfers. 

Sec. 11503. Reduction of gun trafficking. 

TITLE XII—MISCELLANEOUS 

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

Families. 

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

and families.

1 TITLE I—HEALTHY START—

2 CHILDREN’S HEALTH INSUR3 ANCE 

4 Subtitle A—Children’s Health 

5 Insurance 

6 SEC. 1001. MEDIKIDS HEALTH INSURANCE. 

7 (a) SHORT TITLE OF SUBTITLE.—This subtitle may 

8 be cited as the ‘‘MediKids Health Insurance Act of 2003’’.

9 (b) FINDINGS.—Congress finds the following: 
15

•HR 936 IH 

1 (1) More than 11 million American children are 

2 uninsured. 

3 (2) Children who are uninsured receive less 

4 medical care and less preventive care and have a 

5 poorer level of health, which result in lifetime costs 

6 to themselves and to the entire American economy. 

7 (3) Although SCHIP and Medicaid are success8 fully extending a health coverage safety net to a 

9 growing portion of the vulnerable low-income popu10 lation of uninsured children, we now see that they 

11 alone cannot achieve 100 percent health insurance 

12 coverage for our nation’s children due to inevitable 

13 gaps during outreach and enrollment, fluctuations in 

14 eligibility, and variations in access to private insur15 ance at all income levels. 

16 (4) As all segments of our society continue to 

17 become more and more transient, with many 

18 changes in employment over the working lifetime of 

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

20 insurance which follows children across State lines, 

21 already a major problem for the children of migrant 

22 and seasonal farmworkers, will become a major con23 cern for all families in the United States. 

24 (5) The Medicare program has successfully 

25 evolved over the years to provide a stable, universal 
16

•HR 936 IH 

1 source of health insurance for the nation’s disabled 

2 and those over age 65, and therefore provides a test3 ed model for designing a program to reach out to 

4 America’s children. 

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

6 American children could be gradually solved by auto7 matically enrolling all children born after December 

8 31, 2004, in a program modeled after Medicare (and 

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

10 children to be transferred into other equivalent or 

11 better insurance programs, including either private 

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

13 to do so, but maintaining the child’s default enroll14 ment in MediKids for any times when the child’s ac15 cess to other sources of insurance is lost. 

16 (7) A family’s freedom of choice to use other in17 surers to cover children would not be interfered with 

18 in any way, and children eligible for SCHIP and 

19 Medicaid would continue to be enrolled in those pro20 grams, but the underlying safety net of MediKids 

21 would always be available to cover any gaps in insur22 ance due to changes in medical condition, employ23 ment, income, or marital status, or other changes af24 fecting a child’s access to alternate forms of insur25 ance. 
17

•HR 936 IH 

1 (8) The MediKids program can be administered 

2 without impacting the finances or status of the exist3 ing Medicare program. 

4 (9) The MediKids benefit package can be tai5 lored to the special needs of children and updated 

6 over time. 

7 (10) The financing of the program can be ad8 ministered without difficulty by a yearly payment of 

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

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

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

12 as the number of children using MediKids as the in13 surer of last resort increases, and a future Congress 

14 always can accelerate or slow down the enrollment 

15 process as desired, while the societal costs for emer16 gency room usage, lost productivity and work days, 

17 and poor health status for the next generation of 

18 Americans will decline. 

19 (12) Over time 100 percent of American chil20 dren will always have basic health insurance, and we 

21 can therefore expect a healthier, more equitable, and 

22 more productive society.
18

•HR 936 IH 

1 SEC. 1002. BENEFITS FOR ALL CHILDREN BORN AFTER 

2 2002. 

3 (a) IN GENERAL.—The Social Security Act is amend4 ed by adding at the end the following new title: 

5 ‘‘TITLE XXII—MEDIKIDS PROGRAM 

6 ‘‘SEC. 2201. ELIGIBILITY. 

7 ‘‘(a) ELIGIBILITY OF INDIVIDUALS BORN AFTER DE8 CEMBER 31, 2004; ALL CHILDREN UNDER 23 YEARS OF

9 AGE IN SIXTH YEAR.—An individual who meets the fol10 lowing requirements with respect to a month is eligible to 

11 enroll under this title with respect to such month: 

12 ‘‘(1) AGE.—

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

14 in which this title is effective, the individual has 

15 not attained 6 years of age.

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

17 year in which this title is effective, the indi18 vidual has not attained 11 years of age. 

19 ‘‘(C) THIRD YEAR.—During the third year 

20 in which this title is effective, the individual has 

21 not attained 16 years of age. 

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

23 year in which this title is effective, the indi24 vidual has not attained 21 years of age. 

25 ‘‘(E) FIFTH AND SUBSEQUENT YEARS.—

26 During the fifth year in which this title is effec-
19

•HR 936 IH 

1 tive and each subsequent year, the individual 

2 has not attained 23 years of age. 

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

4 or national of the United States or is lawfully resid5 ing in the United States. 

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

7 enroll in the program established under this title only in 

8 such manner and form as may be prescribed by regula9 tions, and only during an enrollment period prescribed by 

10 the Secretary consistent with the provisions of this section. 

11 Such regulations shall provide a process under which—

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

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

14 enrolled at the time of birth and a parent or guard15 ian of such an individual is permitted to pre-enroll 

16 in the month prior to the expected month of birth; 

17 ‘‘(2) individuals who are born outside the 

18 United States after such date and who become eligi19 ble to enroll by virtue of immigration into (or an ad20 justment of immigration status in) the United 

21 States are deemed enrolled at the time of entry or 

22 adjustment of status; 

23 ‘‘(3) eligible individuals may otherwise be en24 rolled at such other times and manner as the Sec25 retary shall specify, including the use of outstationed 
20

•HR 936 IH 

1 eligibility sites as described in section 

2 1902(a)(55)(A) and the use of presumptive eligi3 bility provisions like those described in section 

4 1920A; and 

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

6 child, the Secretary provides for issuance to a parent 

7 or custodian of the individual a card evidencing cov8 erage under this title and for a description of such 

9 coverage. 

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

11 enrollment under this title in the same manner as they 

12 apply to enrollment under part B of title XVIII. 

13 ‘‘(c) DATE COVERAGE BEGINS.—

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

15 an individual is entitled to benefits under this title 

16 shall begin as follows, but in no case earlier than 

17 January 1, 2005: 

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

19 enrolled under paragraph (1) or (2) of sub20 section (b), the date of birth or date of obtain21 ing appropriate citizenship or immigration sta22 tus, as the case may be. 

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

24 who enrolls (including pre-enrolls) before the 

25 month in which the individual satisfies eligi-
21

•HR 936 IH 

1 bility for enrollment under subsection (a), the 

2 first day of such month of eligibility. 

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

4 who enrolls during or after the month in which 

5 the individual first satisfies eligibility for enroll6 ment under such subsection, the first day of the 

7 following month. 

8 ‘‘(2) AUTHORITY TO PROVIDE FOR PARTIAL

9 MONTHS OF COVERAGE.—Under regulations, the 

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

11 for coverage periods that include portions of a 

12 month in order to avoid lapses of coverage. 

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

14 may be made under this title with respect to the ex15 penses of an individual enrolled under this title un16 less such expenses were incurred by such individual 

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

18 is a coverage period under this section. 

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

20 coverage period under this part shall continue until the 

21 individual’s enrollment has been terminated because the 

22 individual no longer meets the requirements of subsection 

23 (a) (whether because of age or change in immigration sta24 tus). 
22

•HR 936 IH 

1 ‘‘(e) ENTITLEMENT TO MEDIKIDS BENEFITS FOR

2 ENROLLED INDIVIDUALS.—An individual enrolled under 

3 this section is entitled to the benefits described in section 

4 2202. 

5 ‘‘(f) LOW-INCOME INFORMATION.—At the time of en6 rollment of a child under this title, the Secretary shall 

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

8 of the family that includes the child is less than 150 per9 cent of the poverty line for a family of the size involved. 

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

11 encode in the identification card issued in connection with 

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

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

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

15 is in a family the income of which is below such level. 

16 ‘‘(g) CONSTRUCTION.—Nothing in this title shall be 

17 construed as requiring (or preventing) an individual who 

18 is enrolled under this section from seeking medical assist19 ance under a State medicaid plan under title XIX or child 

20 health assistance under a State child health plan under 

21 title XXI. 

22 ‘‘SEC. 2202. BENEFITS. 

23 ‘‘(a) SECRETARIAL SPECIFICATION OF BENEFIT

24 PACKAGE.—
23

•HR 936 IH 

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

2 the benefits to be made available under this title 

3 consistent with the provisions of this section and in 

4 a manner designed to meet the health needs of chil5 dren. 

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

7 the specification of benefits over time to ensure the 

8 inclusion of age-appropriate benefits as the enrollee 

9 population gets older. 

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

11 establish procedures for the annual review and up12 dating of such benefits to account for changes in 

13 medical practice, new information from medical re14 search, and other relevant developments in health 

15 science. 

16 ‘‘(4) INPUT.—The Secretary shall seek the 

17 input of the pediatric community in specifying and 

18 updating such benefits. 

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

20 shall updating of benefits under this subsection re21 sult in a failure to provide benefits required under 

22 subsection (b). 

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

24 ‘‘(1) MEDICARE CORE BENEFITS.—Such bene25 fits shall include (to the extent consistent with other 
24

•HR 936 IH 

1 provisions of this section) at least the same benefits 

2 (including coverage, access, availability, duration, 

3 and beneficiary rights) that are available under 

4 parts A and B of title XVIII. 

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

6 Such benefits shall also include all items and serv7 ices for which medical assistance is required to be 

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

9 described in such section, including early and peri10 odic screening, diagnostic services, and treatment 

11 services. 

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

13 Such benefits also shall include (as specified by the 

14 Secretary) prescription drugs and biologicals. 

15 ‘‘(4) COST-SHARING.—

16 ‘‘(A) IN GENERAL.—Subject to subpara17 graph (B), such benefits also shall include the 

18 cost-sharing (in the form of deductibles, coin19 surance, and copayments) applicable under title 

20 XVIII with respect to comparable items and 

21 services, except that no cost-sharing shall be 

22 imposed with respect to early and periodic 

23 screening and diagnostic services included 

24 under paragraph (2). 
25

•HR 936 IH 

1 ‘‘(B) NO COST-SHARING FOR LOWEST IN2 COME CHILDREN.—Such benefits shall not in3 clude any cost-sharing for children in families 

4 the income of which (as determined for pur5 poses of section 1905(p)) does not exceed 150 

6 percent of the official income poverty line (re7 ferred to in such section) applicable to a family 

8 of the size involved. 

9 ‘‘(C) REFUNDABLE CREDIT FOR COST10 SHARING FOR OTHER LOW-INCOME CHIL11 DREN.—For a refundable credit for cost-shar12 ing in the case of children in certain families, 

13 see section 35A of the Internal Revenue Code 

14 of 1986. 

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

16 assistance of the Medicare Payment Advisory Commission, 

17 shall develop and implement a payment schedule for bene18 fits covered under this title. To the extent feasible, such 

19 payment schedule shall be consistent with comparable pay20 ment schedules and reimbursement methodologies applied 

21 under parts A and B of title XVIII. 

22 ‘‘(d) INPUT.—The Secretary shall specify such bene23 fits and payment schedules only after obtaining input from 

24 appropriate child health providers and experts. 
26

•HR 936 IH 

1 ‘‘(e) ENROLLMENT IN HEALTH PLANS.—The Sec2 retary shall provide for the offering of benefits under this 

3 title through enrollment in a health benefit plan that 

4 meets the same (or similar) requirements as the require5 ments that apply to Medicare+Choice plans under part 

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

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

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

9 appropriate manner to reflect differences between the pop10 ulation served under this title and the population under 

11 title XVIII. 

12 ‘‘SEC. 2203. PREMIUMS. 

13 ‘‘(a) AMOUNT OF MONTHLY PREMIUMS.—

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

15 September of each year (beginning with 2004), es16 tablish a monthly MediKids premium. Subject to 

17 paragraph (2), the monthly MediKids premium for 

a year is equal to 1 18 ⁄12 of the annual premium rate 

19 computed under subsection (b). 

20 ‘‘(2) ELIMINATION OF MONTHLY PREMIUM FOR

21 DEMONSTRATION OF EQUIVALENT COVERAGE (IN22 CLUDING COVERAGE UNDER LOW-INCOME PRO23 GRAMS).—The amount of the monthly premium im24 posed under this section for an individual for a 

25 month shall be zero in the case of an individual who 
27

•HR 936 IH 

1 demonstrates to the satisfaction of the Secretary 

2 that the individual has basic health insurance cov3 erage for that month the actuarial value of which, 

4 as determined by the Secretary, is at least actuari5 ally equivalent to the benefits available under this 

6 title. For purposes of the previous sentence enroll7 ment in a medicaid plan under title XIX, a State 

8 child health insurance plan under title XXI, or 

9 under the medicare program under title XVIII is 

10 deemed to constitute basic health insurance coverage 

11 described in such sentence.

12 ‘‘(b) ANNUAL PREMIUM.—

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

14 Secretary shall estimate the average, annual per 

15 capita amount that would be payable under this title 

16 with respect to individuals residing in the United 

17 States who meet the requirement of section 

18 2201(a)(1) as if all such individuals were eligible for 

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

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

21 apply). 

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

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

24 months in a year is equal to 25 percent of the aver-
28

•HR 936 IH 

1 age, annual per capita amount estimated under 

2 paragraph (1) for the year. 

3 ‘‘(c) PAYMENT OF MONTHLY PREMIUM.—

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

5 individual who participates in the program estab6 lished by this title, subject to subsection (d), the 

7 monthly premium shall be payable for the period 

8 commencing with the first month of the individual’s 

9 coverage period and ending with the month in which 

10 the individual’s coverage under this title terminates. 

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

12 For provisions providing for the payment of monthly 

13 premiums under this subsection, see section 59B of 

14 the Internal Revenue Code of 1986. 

15 ‘‘(3) PROTECTIONS AGAINST FRAUD AND

16 ABUSE.—The Secretary shall develop, in coordina17 tion with States and other health insurance issuers, 

18 administrative systems to ensure that claims which 

19 are submitted to more than one payor are coordi20 nated and duplicate payments are not made. 

21 ‘‘(d) REDUCTION IN PREMIUM FOR CERTAIN LOW22 INCOME FAMILIES.—For provisions reducing the premium 

23 under this section for certain low-income families, see sec24 tion 59B(c) of the Internal Revenue Code of 1986. 
29

•HR 936 IH 

1 ‘‘SEC. 2204. MEDIKIDS TRUST FUND. 

2 ‘‘(a) ESTABLISHMENT OF TRUST FUND.—

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

4 the books of the Treasury of the United States a 

5 trust fund to be known as the ‘MediKids Trust 

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

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

8 and bequests as may be made as provided in section 

9 201(i)(1) and such amounts as may be deposited in, 

10 or appropriated to, such fund as provided in this 

11 title. 

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

13 section 2203 shall be transferred to the Trust Fund. 

14 ‘‘(b) INCORPORATION OF PROVISIONS.—

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

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

17 apply with respect to the Trust Fund and this title 

18 in the same manner as they apply with respect to 

19 the Federal Supplementary Medical Insurance Trust 

20 Fund and part B, respectively. 

21 ‘‘(2) MISCELLANEOUS REFERENCES.—In apply22 ing provisions of section 1841 under paragraph 

23 (1)—

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

25 part’ is construed to refer to title XXII; 
30

•HR 936 IH 

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

2 section 1840(d) and in section 1841(i) to sec3 tions 1840(b)(1) and 1842(g) are deemed ref4 erences to comparable authority exercised under 

5 this title; 

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

7 1841(g) to the Trust Funds under sections 

8 1817 and 1841 as reimbursement to such funds 

9 for payments they made for benefits provided 

10 under this title; and 

11 ‘‘(D) the Board of Trustees of the 

12 MediKids Trust Fund shall be the same as the 

13 Board of Trustees of the Federal Supple14 mentary Medical Insurance Trust Fund. 

15 ‘‘SEC. 2205. OVERSIGHT AND ACCOUNTABILITY. 

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

17 The Board of Trustees of the MediKids Trust Fund under 

18 section 2204(b)(1) shall report on an annual basis to Con19 gress concerning the status of the Trust Fund and the 

20 need for adjustments in the program under this title to 

21 maintain financial solvency of the program under this 

22 title. 

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

24 General of the United States shall periodically submit to 

25 Congress reports on the adequacy of the financing of cov-
31

•HR 936 IH 

1 erage provided under this title. The Comptroller General 

2 shall include in such report such recommendations for ad3 justments in such financing and coverage as the Comp4 troller General deems appropriate in order to maintain fi5 nancial solvency of the program under this title. 

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

7 ‘‘(a) IN GENERAL.—

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

9 beginning in 2004, may implement a care coordina10 tion services program in accordance with the provi11 sions of this section under which, in appropriate cir12 cumstances, eligible individuals may elect to have 

13 health care services covered under this title managed 

14 and coordinated by a designated care coordinator. 

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

16 Secretary may administer the program under this 

17 section through a contract with an appropriate pro18 gram administrator. 

19 ‘‘(3) COVERAGE.—Care coordination services 

20 furnished in accordance with this section shall be 

21 treated under this title as if they were included in 

22 the definition of medical and other health services 

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

24 under this title with respect to such services without 

25 the application of any deductible or coinsurance. 
32

•HR 936 IH 

1 ‘‘(b) ELIGIBILITY CRITERIA; IDENTIFICATION AND

2 NOTIFICATION OF ELIGIBLE INDIVIDUALS.—

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

4 Secretary shall specify criteria to be used in making 

5 a determination as to whether an individual may ap6 propriately be enrolled in the care coordination serv7 ices program under this section, which shall include 

8 at least a finding by the Secretary that for cohorts 

9 of individuals with characteristics identified by the 

10 Secretary, professional management and coordina11 tion of care can reasonably be expected to improve 

12 processes or outcomes of health care and to reduce 

13 aggregate costs to the programs under this title.

14 ‘‘(2) PROCEDURES TO FACILITATE ENROLL15 MENT.—The Secretary shall develop and implement 

16 procedures designed to facilitate enrollment of eligi17 ble individuals in the program under this section. 

18 ‘‘(c) ENROLLMENT OF INDIVIDUALS.—

19 ‘‘(1) SECRETARY’S DETERMINATION OF ELIGI20 BILITY.—The Secretary shall determine the eligi21 bility for services under this section of individuals 

22 who are enrolled in the program under this section 

23 and who make application for such services in such 

24 form and manner as the Secretary may prescribe. 

25 ‘‘(2) ENROLLMENT PERIOD.—
33

•HR 936 IH 

1 ‘‘(A) EFFECTIVE DATE AND DURATION.—

2 Enrollment of an individual in the program 

3 under this section shall be effective as of the 

4 first day of the month following the month in 

5 which the Secretary approves the individual’s 

6 application under paragraph (1), shall remain 

7 in effect for one month (or such longer period 

8 as the Secretary may specify), and shall be 

9 automatically renewed for additional periods, 

10 unless terminated in accordance with such pro11 cedures as the Secretary shall establish by regu12 lation. Such procedures shall permit an indi13 vidual to disenroll for cause at any time and 

14 without cause at re-enrollment intervals. 

15 ‘‘(B) LIMITATION ON REENROLLMENT.—

16 The Secretary may establish limits on an indi17 vidual’s eligibility to reenroll in the program 

18 under this section if the individual has 

19 disenrolled from the program more than once 

20 during a specified time period. 

21 ‘‘(d) PROGRAM.—The care coordination services pro22 gram under this section shall include the following ele23 ments: 

24 ‘‘(1) BASIC CARE COORDINATION SERVICES.—
34

•HR 936 IH 

1 ‘‘(A) IN GENERAL.—Subject to the cost-ef2 fectiveness criteria specified in subsection 

3 (b)(1), except as otherwise provided in this sec4 tion, enrolled individuals shall receive services 

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

6 additional items and services as described in 

7 subparagraph (B). 

8 ‘‘(B) ADDITIONAL BENEFITS.—The Sec9 retary may specify additional benefits for which 

10 payment would not otherwise be made under 

11 this title that may be available to individuals 

12 enrolled in the program under this section (sub13 ject to an assessment by the care coordinator of 

14 an individual’s circumstance and need for such 

15 benefits) in order to encourage enrollment in, or 

16 to improve the effectiveness of, such program. 

17 ‘‘(2) CARE COORDINATION REQUIREMENT.—

18 Notwithstanding any other provision of this title, the 

19 Secretary may provide that an individual enrolled in 

20 the program under this section may be entitled to 

21 payment under this title for any specified health 

22 care items or services only if the items or services 

23 have been furnished by the care coordinator, or co24 ordinated through the care coordination services pro25 gram. Under such provision, the Secretary shall pre-
35

•HR 936 IH 

1 scribe exceptions for emergency medical services as 

2 described in section 1852(d)(3), and other excep3 tions determined by the Secretary for the delivery of 

4 timely and needed care. 

5 ‘‘(e) CARE COORDINATORS.—

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

7 to be qualified to furnish care coordination services 

8 under this section, an individual or entity shall—

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

10 (which may include physicians, physician group 

11 practices, or other health care professionals or 

12 entities the Secretary may find appropriate) 

13 meeting such conditions as the Secretary may 

14 specify; 

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

16 agreement; and 

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

18 may establish (which may include experience in 

19 the provision of care coordination or primary 

20 care physician’s services). 

21 ‘‘(2) AGREEMENT TERM; PAYMENT.—

22 ‘‘(A) DURATION AND RENEWAL.—A care 

23 coordination agreement under this subsection 

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

25 Secretary is satisfied that the care coordinator 
36

•HR 936 IH 

1 continues to meet the conditions of participa2 tion specified in paragraph (1). 

3 ‘‘(B) PAYMENT FOR SERVICES.—The Sec4 retary may negotiate or otherwise establish pay5 ment terms and rates for services described in 

6 subsection (d)(1). 

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

8 be subject to liability for actual health damages 

9 which may be suffered by recipients as a result 

10 of the care coordinator’s decisions, failure or 

11 delay in making decisions, or other actions as 

12 a care coordinator. 

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

14 terms as the Secretary may require, an agree15 ment under this section shall include the terms 

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

17 section 1905(t)(3). 

18 ‘‘SEC. 2207. ADMINISTRATION AND MISCELLANEOUS. 

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

20 this title—

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

22 contracts with providers of services, other health 

23 care providers, carriers, and fiscal intermediaries, 

24 taking into account the types of contracts used 
37

•HR 936 IH 

1 under title XVIII with respect to such entities, to 

2 administer the program under this title; 

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

4 be treated for purposes of title XVIII as though the 

5 individual were entitled to benefits under part A and 

6 enrolled under part B of such title; 

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

8 payable under this title to such individuals shall be 

9 paid in a manner specified by the Secretary (taking 

10 into account, and based to the greatest extent prac11 ticable upon, the manner in which they are provided 

12 under title XVIII);

13 ‘‘(4) provider participation agreements under 

14 title XVIII shall apply to enrollees and benefits 

15 under this title in the same manner as they apply 

16 to enrollees and benefits under title XVIII; and 

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

18 title may elect to receive such benefits under health 

19 plans in a manner, specified by the Secretary, simi20 lar to the manner provided under part C of title 

21 XVIII. 

22 ‘‘(b) COORDINATION WITH MEDICAID AND

23 SCHIP.—Notwithstanding any other provision of law, in24 dividuals entitled to benefits for items and services under 

25 this title who also qualify for benefits under title XIX or 
38

•HR 936 IH 

1 XXI or any other Federally funded program may continue 

2 to qualify and obtain benefits under such other title or 

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

4 either—

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

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

7 benefits shall be payable under this title and the 

8 monthly premium under section 2203 shall be $0; or 

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

10 payor to benefits provided under such program or 

11 title, in which case the Secretary shall enter into 

12 agreements with States as may be appropriate to 

13 provide that, in the case of such individuals, the ben14 efits under titles XIX and XXI or such other pro15 gram (including reduction of cost-sharing) are pro16 vided on a ‘wrap-around’ basis to the benefits under 

17 this title.’’.

18 (b) CONFORMING AMENDMENTS TO SOCIAL SECU19 RITY ACT PROVISIONS.—

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

21 (42 U.S.C. 401(i)(1)) is amended by striking ‘‘or the 

22 Federal Supplementary Medical Insurance Trust 

23 Fund’’ and inserting ‘‘the Federal Supplementary 

24 Medical Insurance Trust Fund, or the MediKids 

25 Trust Fund’’. 
39

•HR 936 IH 

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

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

3 the Federal Supplementary Medical Insurance Trust 

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

5 the Federal Supplementary Medical Insurance Trust 

6 Fund, and the MediKids Trust Fund established by 

7 title XVIII’’.

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

9 1395w–23(c)) is amended—

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

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

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

13 ‘‘(8) ADJUSTMENT FOR MEDIKIDS.—In apply14 ing this subsection with respect to individuals enti15 tled to benefits under title XXII, the Secretary shall 

16 provide for an appropriate adjustment in the 

17 Medicare+Choice capitation rate as may be appro18 priate to reflect differences between the population 

19 served under such title and the population under 

20 parts A and B.’’. 

21 (c) MAINTENANCE OF MEDICAID ELIGIBILITY AND

22 BENEFITS FOR CHILDREN.—

23 (1) IN GENERAL.—In order for a State to con24 tinue to be eligible for payments under section 
40

•HR 936 IH 

1 1903(a) of the Social Security Act (42 U.S.C. 

2 1396b(a))—

3 (A) the State may not reduce standards of 

4 eligibility, or benefits, provided under its State 

5 medicaid plan under title XIX of the Social Se6 curity Act or under its State child health plan 

7 under title XXI of such Act for individuals 

8 under 23 years of age below such standards of 

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

10 the enactment of this Act; and 

11 (B) the State shall demonstrate to the sat12 isfaction of the Secretary of Health and Human 

13 Services that any savings in State expenditures 

14 under title XIX or XXI of the Social Security 

15 Act that results from children from enrolling 

16 under title XXII of such Act shall be used in 

17 a manner that improves services to beneficiaries 

18 under title XIX of such Act, such as through 

19 increases in provider payment rates, expansion 

20 of eligibility, improved nurse and nurse aide 

21 staffing and improved inspections of nursing fa22 cilities, and coverage of additional services.

23 (2) MEDIKIDS AS PRIMARY PAYOR.—In apply24 ing title XIX of the Social Security Act, the 

25 MediKids program under title XXII of such Act 
41

•HR 936 IH 

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

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

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

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

5 (1) IN GENERAL.—Section 1805(c) of the So6 cial Security Act (42 U.S.C. 1395b–6(c)) is amend7 ed—

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

9 inserting ‘‘19’’; and 

10 (B) in paragraph (2)(B), by inserting ‘‘ex11 perts in children’s health,’’ after ‘‘other health 

12 professionals,’’. 

13 (2) INITIAL TERMS OF ADDITIONAL MEM14 BERS.—

15 (A) IN GENERAL.—For purposes of stag16 gering the initial terms of members of the 

17 Medicare Payment Advisory Commission under 

18 section 1805(c)(3) of the Social Security Act 

19 (42 U.S.C. 1395b–6(c)(3)), the initial terms of 

20 the 2 additional members of the Commission 

21 provided for by the amendment under sub22 section (a)(1) are as follows: 

23 (i) One member shall be appointed for 

24 1 year. 
42

•HR 936 IH 

1 (ii) One member shall be appointed 

2 for 2 years. 

3 (B) COMMENCEMENT OF TERMS.—Such 

4 terms shall begin on January 1, 2004. 

5 SEC. 1003. MEDIKIDS PREMIUM. 

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

7 the Internal Revenue Code of 1986 (relating to determina8 tion of tax liability) is amended by adding at the end the 

9 following new part: 

10 ‘‘PART VIII—MEDIKIDS PREMIUM

‘‘Sec. 59B. MediKids premium.

11 ‘‘SEC. 59B. MEDIKIDS PREMIUM. 

12 ‘‘(a) IMPOSITION OF TAX.—In the case of an indi13 vidual to whom this section applies, there is hereby im14 posed (in addition to any other tax imposed by this sub15 title) a MediKids premium for the taxable year. 

16 ‘‘(b) INDIVIDUALS SUBJECT TO PREMIUM.—

17 ‘‘(1) IN GENERAL.—This section shall apply to 

18 an individual if the taxpayer has a MediKid at any 

19 time during the taxable year. 

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

21 the term ‘MediKid’ means, with respect to a tax22 payer, any individual with respect to whom the tax23 payer is required to pay a premium under section 
43

•HR 936 IH 

1 2203(c) of the Social Security Act for any month of 

2 the taxable year. 

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

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

5 sum of the monthly premiums under section 2203 of the 

6 Social Security Act for months in the taxable year. 

7 ‘‘(d) EXCEPTIONS BASED ON ADJUSTED GROSS IN8 COME.—

9 ‘‘(1) EXEMPTION FOR VERY LOW-INCOME TAX10 PAYERS.—

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

12 imposed by this section on any taxpayer having 

13 an adjusted gross income not in excess of the 

14 exemption amount. 

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

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

17 exemption amount is the amount equal to 150 

18 percent of the income official poverty line (as 

19 defined by the Office of Management and 

20 Budget, and revised annually in accordance 

21 with section 673(2) of the Omnibus Budget 

22 Reconciliation Act of 1981) applicable to a fam23 ily of the size involved. 

24 ‘‘(C) PHASEOUT OF EXEMPTION.—In the 

25 case of a taxpayer having an adjusted gross in-
44

•HR 936 IH 

1 come which exceeds the exemption amount but 

2 does not exceed twice the exemption amount, 

3 the premium shall be the amount which bears 

4 the same ratio to the premium which would 

5 (but for this subparagraph) apply to the tax6 payer as such excess bears to the exemption 

7 amount. 

8 ‘‘(2) PREMIUM LIMITED TO 5 PERCENT OF AD9 JUSTED GROSS INCOME.—In no event shall any tax10 payer be required to pay a premium under this sec11 tion in excess of an amount equal to 5 percent of the 

12 taxpayer’s adjusted gross income. 

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

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

15 For purposes of this chapter, any premium paid 

16 under this section shall not be treated as expense for 

17 medical care. 

18 ‘‘(2) NOT TREATED AS TAX FOR CERTAIN PUR19 POSES.—The premium paid under this section shall 

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

21 purposes of determining—

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

23 under this chapter, or 

24 ‘‘(B) the amount of the minimum tax im25 posed by section 55. 
45

•HR 936 IH 

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

2 purposes of subtitle F, the premium paid under this 

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

4 by section 1.’’. 

5 (b) TECHNICAL AMENDMENTS.—

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

7 is amended by inserting after paragraph (9) the fol8 lowing new paragraph: 

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

10 under section 59B.’’. 

11 (2) The table of parts for subchapter A of chap12 ter 1 of such Code is amended by adding at the end 

13 the following new item:

‘‘Part VIII. MediKids premium.’’.

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

15 this section shall apply to months beginning after Decem16 ber 2004, in taxable years ending after such date. 

17 SEC. 1004. REFUNDABLE CREDIT FOR COST-SHARING EX18 PENSES UNDER MEDIKIDS PROGRAM. 

19 (a) IN GENERAL.—Subpart C of part IV of sub20 chapter A of chapter 1 of the Internal Revenue Code of 

21 1986 (relating to refundable credits) is amended by insert22 ing after section 35 the following new section: 
46

•HR 936 IH 

1 ‘‘SEC. 35A. COST-SHARING EXPENSES UNDER MEDIKIDS 

2 PROGRAM. 

3 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in4 dividual who has a MediKid (as defined in section 59B) 

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

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

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

8 taxpayer during the taxable year as cost-sharing under 

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

10 ‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN11 COME.—The amount of the credit which would (but for 

12 this subsection) be allowed under this section for the tax13 able year shall be reduced (but not below zero) by an 

14 amount which bears the same ratio to such amount of 

15 credit as the excess of the taxpayer’s adjusted gross in16 come for such taxable year over the exemption amount (as 

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

18 amount.’’. 

19 (b) TECHNICAL AMENDMENTS.—

20 (1) Paragraph (2) of section 1324(b) of title 

21 31, United States Code, is amended by inserting ‘‘or 

22 35A’’ after ‘‘35’’. 

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

24 IV of subchapter A of chapter 1 of such Code is 
47

•HR 936 IH 

1 amended by inserting after the item relating to sec2 tion 25 the following new item:

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

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2004. 

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

7 Within 1 year after the date of enactment of this 

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

9 schedule of progressive tax changes to fund the program 

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

11 of enrollees grows in the out-years.

12 Subtitle B—Children’s Health In13 surance Eligibility Expansion 

14 and Enrollment Improvements 

15 CHAPTER 1—ELIGIBILITY EXPANSIONS 

16 Subchapter A—Medicaid and SCHIP 

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

18 MEDICAID AND SCHIP. 

19 (a) EXPANSION OF INCOME ELIGIBILITY UNDER

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

21 (42 U.S.C. 42 U.S.C. 1397jj(c)(4)) is amended by striking 

22 ‘‘200’’ and inserting ‘‘300’’. 

23 (b) MANDATORY BUY-IN COVERAGE.—

24 (1) MEDICAID.—
48

•HR 936 IH 

1 (A) IN GENERAL.—Section 

2 1902(a)(10)(A)(i) of the Social Security Act 

3 (42 U.S.C. 1396a(a)(10)(A)(i)) is amended—

4 (i) by striking ‘‘or’’ at the end of sub5 clause (VI); 

6 (ii) by striking the semicolon at the 

7 end of subclause (VII) and insert ‘‘, or’’; 

8 and 

9 (iii) by adding at the end the fol10 lowing: 

11 ‘‘(VIII) who are children in fami12 lies whose income exceeds 300 percent 

13 of the income official poverty line (as 

14 defined by the Office of Management 

15 and Budget, and revised annually in 

16 accordance with section 673(2) of the 

17 Omnibus Budget Reconciliation Act of 

18 1981) applicable to a family of the 

19 size involved subject, notwithstanding 

20 section 1916, to payment of premiums 

21 or other cost-sharing charges (set on 

22 a sliding scale based on income) that 

23 the State may determine;’’. 

24 (B) CONFORMING AMENDMENT.—Section 

25 1903(f)(4) of such Act (42 U.S.C. 1396b(f)(4)) 
49

•HR 936 IH 

1 is amended by inserting 

2 ‘‘1902(a)(10)(A)(i)(VIII),’’ after 

3 ‘‘1902(a)(10)(A)(i)(VII),’’. 

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

5 (42 U.S.C. 1397gg(e)(1)) is amended by adding at 

6 the end the following new subparagraph: 

7 ‘‘(E) Section 1902(a)(10)(A)(i)(VIII) (re8 lating to buy-in coverage for children whose 

9 family income exceeds 300 percent of the pov10 erty line).’’. 

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

12 this section apply to medical assistance and child health 

13 assistance provided on or after October 1, 2003. 

14 SEC. 1102. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS 

15 UNDER THE MEDICAID PROGRAM AND TITLE 

16 XXI. 

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

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

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

20 (2)’’ and inserting ‘‘paragraphs (2) and (4)’’; and 

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

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

23 under this title) to provide medical assistance under this 

24 title for aliens who are lawfully residing in the United 

25 States (including battered aliens described in section 
50

•HR 936 IH 

1 431(c) of the Personal Responsibility and Work Oppor2 tunity Reconciliation Act of 1996) and who are otherwise 

3 eligible for such assistance, within any of the following eli4 gibility categories: 

5 ‘‘(i) PREGNANT WOMEN.—Women during preg6 nancy (and during the 60-day period beginning on 

7 the last day of the pregnancy). 

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

9 such plan), including optional targeted low-income 

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

11 ‘‘(B)(i) In the case of a State that has elected to pro12 vide medical assistance to a category of aliens under sub13 paragraph (A), no debt shall accrue under an affidavit of 

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

15 of provision of assistance to such category and the cost 

16 of such assistance shall not be considered as an unreim17 bursed cost. 

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

19 and 421 of the Personal Responsibility and Work Oppor20 tunity Reconciliation Act of 1996 shall not apply to a 

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

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

23 Security Act (42 U.S.C. 1397gg(e)(1)) is amended by add24 ing at the end the following: 
51

•HR 936 IH 

1 ‘‘(E) Section 1903(v)(4) (relating to op2 tional coverage of permanent resident alien chil3 dren), but only if the State has elected to apply 

4 such section to that category of children under 

5 title XIX.’’. 

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

7 this section take effect on October 1, 2003, and apply to 

8 medical assistance and child health assistance furnished 

9 on or after such date. 

10 Subchapter B—Family Opportunity Act 

11 SEC. 1111. SHORT TITLE; AMENDMENTS TO SOCIAL SECU12 RITY ACT. 

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

14 the ‘‘Family Opportunity Act of 2003’’ or the ‘‘Dylan Lee 

15 James Act’’. 

16 (b) AMENDMENTS TO SOCIAL SECURITY ACT.—Ex17 cept as otherwise specifically provided, whenever in this 

18 Act an amendment is expressed in terms of an amendment 

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

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

21 provision of the Social Security Act.
52

•HR 936 IH 

1 SEC. 1112. OPPORTUNITY FOR FAMILIES OF DISABLED 

2 CHILDREN TO PURCHASE MEDICAID COV3 ERAGE FOR SUCH CHILDREN. 

4 (a) STATE OPTION TO ALLOW FAMILIES OF DIS5 ABLED CHILDREN TO PURCHASE MEDICAID COVERAGE

6 FOR SUCH CHILDREN.—

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

8 1396a) is amended—

9 (A) in subsection (a)(10)(A)(ii)—

10 (i) by striking ‘‘or’’ at the end of sub11 clause (XVII); 

12 (ii) by adding ‘‘or’’ at the end of sub13 clause (XVIII); and 

14 (iii) by adding at the end the fol15 lowing new subclause:

16 ‘‘(XIX) who are disabled children 

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

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

19 subsection: 

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

21 individuals—

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

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

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

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

26 earnings or deemed income or resources (as deter-
53

•HR 936 IH 

1 mined under title XVI for children) that exceed the 

2 requirements for receipt of supplemental security in3 come benefits; and 

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

5 income level as the State establishes and does not 

6 exceed—

7 ‘‘(i) 300 percent of the income official pov8 erty line (as defined by the Office of Manage9 ment and Budget, and revised annually in ac10 cordance with section 673(2) of the Omnibus 

11 Budget Reconciliation Act of 1981) applicable 

12 to a family of the size involved; or 

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

14 line as a State may establish, except that no 

15 Federal financial participation shall be provided 

16 under section 1903(a) for any medical assist17 ance provided to an individual who would not be 

18 described in this subsection but for this 

19 clause.’’. 

20 (2) INTERACTION WITH EMPLOYER-SPONSORED

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

22 1396a(cc)), as added by paragraph (1), is amended 

23 by adding at the end the following new paragraph: 

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

25 described in paragraph (1) offers family coverage under 
54

•HR 936 IH 

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

2 Public Health Service Act), the State may—

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

4 and pay premiums for, such coverage as a condition 

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

6 medical assistance under subsection 

7 (a)(10)(A)(ii)(XIX) if the parent is determined eligi8 ble for such coverage and the employer contributes 

9 at least 50 percent of the total cost of annual pre10 miums for such coverage; and 

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

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

13 1916(h), reduce the premium imposed by the 

14 State under that section (if any) in an amount 

15 that reasonably reflects the premium contribu16 tion made by the parent for private coverage on 

17 behalf of a child with a disability; and 

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

19 liability under subsection (a)(25). 

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

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

22 exceed 300 percent of the income official poverty line (re23 ferred to in paragraph (1)(C)(i)), a State may provide for 

24 payment of any portion of the annual premium for such 

25 family coverage that the parent is required to pay. Any 
55

•HR 936 IH 

1 payments made by the State under this subparagraph 

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

3 be payments for medical assistance.’’. 

4 (b) STATE OPTION TO IMPOSE INCOME-RELATED

5 PREMIUMS.—Section 1916 (42 U.S.C. 1396o) is amend6 ed—

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

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

9 (2) by adding at the end the following new sub10 section: 

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

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

13 subject to paragraph (2), a State may (in a uniform man14 ner for such children) require the families of such children 

15 to pay monthly premiums set on a sliding scale based on 

16 family income. 

17 ‘‘(2) A premium requirement imposed under para18 graph (1) may only apply to the extent that—

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

20 and any premium that the parent is required to pay 

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

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

23 and 

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

25 section 1902(cc)(2)(A)(ii)(I). 
56

•HR 936 IH 

1 ‘‘(3) A State shall not require prepayment of a pre2 mium imposed pursuant to paragraph (1) and shall not 

3 terminate eligibility of a child under section 

4 1902(a)(10)(A)(ii)(XIX) for medical assistance under this 

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

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

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

8 The State may waive payment of any such premium in 

9 any case where the State determines that requiring such 

10 payment would create an undue hardship.’’. 

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

12 (42 U.S.C. 1396b(f)(4)) is amended in the matter pre13 ceding subparagraph (A) by inserting 

14 ‘‘1902(a)(10)(A)(ii)(XIX),’’ after 

15 ‘‘1902(a)(10)(A)(ii)(XVIII),’’. 

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

17 this section shall apply to medical assistance for items and 

18 services furnished on or after January 1, 2004. 

19 SEC. 1113. TREATMENT OF INPATIENT PSYCHIATRIC HOS20 PITAL SERVICES FOR INDIVIDUALS UNDER 

21 AGE 21 IN HOME OR COMMUNITY-BASED 

22 SERVICES WAIVERS. 

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

24 1396n(c)) is amended—

25 (1) in paragraph (1)—
57

•HR 936 IH 

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

2 inpatient psychiatric hospital services for indi3 viduals under age 21,’’ after ‘‘intermediate care 

4 facility for the mentally retarded’’; and 

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

6 or inpatient psychiatric hospital services for in7 dividuals under age 21’’ before the period; 

8 (2) in paragraph (2)(B), by striking ‘‘or serv9 ices in an intermediate care facility for the mentally 

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

11 services in an intermediate care facility for the men12 tally retarded, or inpatient psychiatric hospital serv13 ices for individuals under age 21’’; 

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

15 the following: 

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

17 likely to require the level of care provided in a hos18 pital, nursing facility, or intermediate care facility 

19 for the mentally retarded, or inpatient psychiatric 

20 hospital services for individuals under age 21, are 

21 informed of the feasible alternatives, if available 

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

23 to the provision of inpatient hospital services, nurs24 ing facility services, services in an intermediate care 

25 facility for the mentally retarded, or inpatient psy-
58

•HR 936 IH 

1 chiatric hospital services for individuals under age 

2 21;’’; and 

3 (4) in paragraph (7)(A)—

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

5 hospital services for individuals under age 21,’’ 

6 after ‘‘intermediate care facility for the men7 tally retarded’’; and 

8 (B) by inserting ‘‘, or who would require 

9 inpatient psychiatric hospital services for indi10 viduals under age 21’’ before the period. 

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

12 subsection (a) apply with respect to medical assistance 

13 provided on or after January 1, 2003. 

14 SEC. 1114. DEMONSTRATION OF COVERAGE UNDER THE 

15 MEDICAID PROGRAM OF CHILDREN WITH PO16 TENTIALLY SEVERE DISABILITIES. 

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

18 Secretary of Health and Human Services (in this section 

19 referred to as the ‘‘Secretary’’) for approval of a dem20 onstration project (in this section referred to as a ‘‘dem21 onstration project’’) under which up to a specified max22 imum number of children with a potentially severe dis23 ability (as defined in subsection (b)) are provided medical 

24 assistance under the State medicaid plan under title XIX 

25 of the Social Security Act (42 U.S.C. 1396 et seq.). 
59

•HR 936 IH 

1 (b) CHILD WITH A POTENTIALLY SEVERE DIS2 ABILITY DEFINED.—

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

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

5 with respect to a demonstration project, an indi6 vidual who—

7 (A) has not attained 21 years of age; 

8 (B) has a physical or mental condition, 

9 disease, disorder (including a congenital birth 

10 defect or a metabolic condition), injury, or de11 velopmental disability that was incurred before 

12 the individual attained such age; and 

13 (C) is reasonably expected, but for the re14 ceipt of medical assistance under the State 

15 medicaid plan, to reach the level of disability 

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

17 Security Act (42 U.S.C. 1382c(a)(3)), (deter18 mined without regard to the reference to age in 

19 subparagraph (C) of that section).

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

21 an individual who would be considered disabled 

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

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

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

25 (c) APPROVAL OF DEMONSTRATION PROJECTS.—
60

•HR 936 IH 

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

2 the Secretary shall approve applications under sub3 section (a) that meet the requirements of paragraph 

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

5 Secretary may require. The Secretary may waive the 

6 requirement of section 1902(a)(1) of the Social Se7 curity Act (42 U.S.C. 1396a(a)(1)) to allow for sub8 State demonstrations. 

9 (2) TERMS AND CONDITIONS OF DEMONSTRA10 TION PROJECTS.—The Secretary may not approve a 

11 demonstration project under this section unless the 

12 State provides assurances satisfactory to the Sec13 retary that the following conditions are or will be 

14 met: 

15 (A) INDEPENDENT EVALUATION.—The 

16 State provides for an independent evaluation of 

17 the project to be conducted during fiscal year 

18 2006. 

19 (B) CONSULTATION FOR DEVELOPMENT

20 OF CRITERIA.—The State consults with appro21 priate pediatric health professionals in estab22 lishing the criteria for determining whether a 

23 child has a potentially severe disability. 

24 (C) ANNUAL REPORT.—The State submits 

25 an annual report to the Secretary (in a uniform 
61

•HR 936 IH 

1 form and manner established by the Secretary) 

2 on the use of funds provided under the grant 

3 that includes the following: 

4 (i) Enrollment and financial statistics 

5 on—

6 (I) the total number of children 

7 with a potentially severe disability en8 rolled in the demonstration project, 

9 disaggregated by disability; 

10 (II) the services provided by cat11 egory or code and the cost of each 

12 service so categorized or coded; and 

13 (III) the number of children en14 rolled in the demonstration project 

15 who also receive services through pri16 vate insurance. 

17 (ii) With respect to the report sub18 mitted for fiscal year 2008, the results of 

19 the independent evaluation conducted 

20 under subparagraph (A). 

21 (iii) Such additional information as 

22 the Secretary may require. 

23 (3) LIMITATIONS ON FEDERAL FUNDING.—

24 (A) APPROPRIATION.—
62

•HR 936 IH 

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

2 the Treasury not otherwise appropriated, 

3 there is appropriated to carry out this sec4 tion—

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

6 years 2004 and 2005; and 

7 (II) $16,667,000 for each of fis8 cal years 2006 through 2009. 

9 (ii) BUDGET AUTHORITY.—Clause (i) 

10 constitutes budget authority in advance of 

11 appropriations Acts and represents the ob12 ligation of the Federal Government to pro13 vide for the payment of the amounts ap14 propriated under clause (i). 

15 (B) LIMITATION ON PAYMENTS.—In no 

16 case may—

17 (i) the aggregate amount of payments 

18 made by the Secretary to States under this 

19 section exceed $100,000,000; 

20 (ii) the aggregate amount of payments 

21 made by the Secretary to States for ad22 ministrative expenses relating to the eval23 uations and annual reports required under 

24 subparagraphs (A) and (C) of paragraph 
63

•HR 936 IH 

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

2 $100,000,000; or 

3 (iii) payments be provided by the Sec4 retary for a fiscal year after fiscal year 

5 2010. 

6 (C) FUNDS ALLOCATED TO STATES.—

7 (i) IN GENERAL.—The Secretary shall 

8 allocate funds to States based on their ap9 plications and the availability of funds. In 

10 making such allocations, the Secretary 

11 shall ensure an equitable distribution of 

12 funds among States with large populations 

13 and States with small populations. 

14 (ii) AVAILABILITY.—Funds allocated 

15 to a State under a grant made under this 

16 section for a fiscal year shall remain avail17 able until expended. 

18 (D) FUNDS NOT ALLOCATED TO STATES.—

19 Funds not allocated to States in the fiscal year 

20 for which they are appropriated shall remain 

21 available in succeeding fiscal years for alloca22 tion by the Secretary using the allocation for23 mula established under this section. 

24 (E) PAYMENTS TO STATES.—The Sec25 retary shall pay to each State with a dem-
64

•HR 936 IH 

1 onstration project approved under this section, 

2 from its allocation under subparagraph (C), an 

3 amount for each quarter equal to the Federal 

4 medical assistance percentage (as defined in 

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

6 U.S.C. 1395d(b))) of expenditures in the quar7 ter for medical assistance provided to children 

8 with a potentially severe disability. 

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

10 2007, the Secretary shall submit a recommendation to the 

11 Committee on Commerce of the House of Representatives 

12 and the Committee on Finance of the Senate regarding 

13 whether the demonstration project established under this 

14 section should be continued after fiscal year 2009. 

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

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

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

18 seq.).

19 SEC. 1115. DEVELOPMENT AND SUPPORT OF FAMILY-TO20 FAMILY HEALTH INFORMATION CENTERS. 

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

22 at the end the following new subsection: 

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

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

25 the purpose of carrying out activities described in sub-
65

•HR 936 IH 

1 section (a)(2), there is appropriated to the Secretary, out 

2 of any money in the Treasury not otherwise appropriated, 

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

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

5 regional and national significance for the development and 

6 support of family-to-family health information centers de7 scribed in paragraph (2), $10,000,000 for each of fiscal 

8 years 2004 through 2009. Funds appropriated under this 

9 paragraph shall remain available until expended. 

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

11 described in this paragraph are centers that—

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

13 or special health care needs to make informed 

14 choices about health care in order to promote good 

15 treatment decisions, cost-effectiveness, and improved 

16 health outcomes for such children; 

17 ‘‘(B) provide information regarding the health 

18 care needs of, and resources available for, children 

19 with disabilities or special health care needs; 

20 ‘‘(C) identify successful health delivery models 

21 for such children; 

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

23 providers, managed care organizations, health care 

24 purchasers, and appropriate State agencies a model 
66

•HR 936 IH 

1 for collaboration between families of such children 

2 and health professionals; 

3 ‘‘(E) provide training and guidance regarding 

4 caring for such children; 

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

6 of such children, health professionals, schools, and 

7 other appropriate entities and individuals; and

8 ‘‘(G) are staffed by families of children with 

9 disabilities or special health care needs who have ex10 pertise in Federal and State public and private 

11 health care systems and health professionals. 

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

13 to the funds made available to the Secretary under section 

14 502(a)(1) apply in the same manner to funds made avail15 able to the Secretary under paragraph (1).’’. 

16 SEC. 1116. RESTORATION OF MEDICAID ELIGIBILITY FOR 

17 CERTAIN SSI BENEFICIARIES. 

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

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

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

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

22 (bb) who are’’; and 

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

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

25 age and with respect to whom supplemental security 
67

•HR 936 IH 

1 income benefits would be paid under title XVI if 

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

3 were applied without regard to the phrase ‘the first 

4 day of the month following’ ’’. 

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

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

7 and services furnished on or after the first day of the first 

8 calendar quarter that begins after the date of enactment 

9 of this Act. 

10 CHAPTER 2—ENROLLMENT 

11 IMPROVEMENTS 

12 SEC. 1121. APPLICATION OF SIMPLIFIED TITLE XXI PROCE13 DURES UNDER THE MEDICAID PROGRAM. 

14 (a) APPLICATION UNDER MEDICAID.—

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

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

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

18 to paragraph (5)’’, after ‘‘Notwithstanding sub19 section (a)(17),’’; and 

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

21 ‘‘(5) With respect to determining the eligibility of in22 dividuals under 19 years of age (or such higher age as 

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

24 assistance under subsection (a)(10)(A) notwithstanding 
68

•HR 936 IH 

1 any other provision of this title, if the State has estab2 lished a State child health plan under title XXI—

3 ‘‘(A) the State may not apply a resource stand4 ard; 

5 ‘‘(B) the State shall use the same simplified eli6 gibility form (that in no case shall be more than 4 

7 pages and that permits application other than in 

8 person) as the State uses under such State child 

9 health plan with respect to such individuals; 

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

11 determinations and redeterminations of eligibility 

12 using the same verification policies, forms, and fre13 quency as the State uses for such purposes under 

14 such State child health plan with respect to such in15 dividuals; 

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

17 interview for purposes of initial eligibility determina18 tions and redeterminations and shall allow for self19 declaration of initial eligibility and recertification in20 formation; and 

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

22 of children under this title and title XXI with the 

23 enrollment of such children and their families in 

24 other Federal means-tested public assistance pro25 grams, including child care programs, free or re-
69

•HR 936 IH 

1 duced price lunches or breakfasts under the Richard 

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

3 1751 et seq.), assistance under the special supple4 mental nutrition program for women, infants, and 

5 children (WIC) under section 17 of the Child Nutri6 tion Act of 1966 (42 U.S.C. 1786), and benefits 

7 under the Food Stamp Act of 1977.’’. 

8 (2) EFFECTIVE DATE.—The amendments made 

9 by paragraph (1) apply to determinations of eligi10 bility made on or after the date that is 1 year after 

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

12 not regulations implementing such amendments have 

13 been issued. 

14 (3) DEVELOPMENT OF UNIFORM APPLICA15 TION.—Not later than 1 year after the date of en16 actment of this Act, the Secretary of Health and 

17 Human Services, in consultation with States and or18 ganizations with expertise in outreach to, and enroll19 ment of, children without health insurance, shall de20 velop a uniform application that meets the require21 ments of section 1902(l)(5) of the Social Security 

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

23 in any State. 

24 (b) PRESUMPTIVE ELIGIBILITY.—
70

•HR 936 IH 

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

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

3 1a(b)(3)(A)(i)) is amended by inserting ‘‘a child care 

4 resource and referral agency,’’ after ‘‘a State or trib5 al child support enforcement agency,’’. 

6 (2) APPLICATION TO PRESUMPTIVE ELIGIBILITY

7 FOR PREGNANT WOMEN UNDER MEDICAID.—Section 

8 1920(b) of the Social Security Act (42 U.S.C. 

9 1396r–1(b)) is amended by adding at the end after 

10 and below paragraph (2) the following flush sen11 tence: 

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

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

14 (3) APPLICATION UNDER TITLE XXI.—

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

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

17 1397gg(e)(1)) is amended to read as follows: 

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

19 presumptive eligibility).’’. 

20 (B) EXCEPTION FROM LIMITATION ON AD21 MINISTRATIVE EXPENSES.—Section 2105(c)(2) 

22 of such Act (42 U.S.C. 1397ee(c)(2)) is amend23 ed by adding at the end the following:

24 ‘‘(C) EXCEPTION FOR PRESUMPTIVE ELI25 GIBILITY EXPENDITURES.—The limitation 
71

•HR 936 IH 

1 under subparagraph (A) on expenditures shall 

2 not apply to expenditures attributable to the 

3 application of section 1920 or 1920A (pursuant 

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

5 the child is determined to be ineligible for the 

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

7 (C) CONFORMING ELIMINATION OF RE8 SOURCE TEST.—Section 2102(b)(1)(A) of such 

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

10 (i) by striking ‘‘and resources (includ11 ing any standards relating to spenddowns 

12 and disposition of resources)’’; and 

13 (ii) by adding at the end the fol14 lowing: ‘‘Effective 1 year after the date of 

15 the enactment of the Leave No Child Be16 hind Act of 2003, such standards may not 

17 include the application of a resource stand18 ard or test.’’. 

19 (c) AUTOMATIC REASSESSMENT OF ELIGIBILITY FOR

20 TITLE XXI AND MEDICAID BENEFITS FOR CHILDREN

21 LOSING MEDICAID OR TITLE XXI ELIGIBILITY.—

22 (1) LOSS OF MEDICAID ELIGIBILITY.—Section 

23 1902(a) of the Social Security Act (42 U.S.C. 

24 1396a(a)) is amended—
72

•HR 936 IH 

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

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

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

4 following: 

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

6 State child health plan under title XXI, that before 

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

8 is discontinued under this title, a determination of 

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

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

11 be so eligible, the child (or parent) shall be auto12 matically enrolled in the program under such title 

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

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

15 2102(b)(3) (42 U.S.C. 1397bb(b)(3)) is amended by 

16 redesignating subparagraphs (D) and (E) as sub17 paragraphs (E) and (F), respectively, and by insert18 ing after subparagraph (C) the following: 

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

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

21 under this title, a determination of whether the 

22 child (or parent) is eligible for benefits under 

23 title XIX is made and, if determined to be so 

24 eligible, the child (or parent) is automatically 
73

•HR 936 IH 

1 enrolled in the program under such title with2 out the need for a new application;’’. 

3 (3) EFFECTIVE DATE.—The amendments made 

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

5 lose eligibility under the medicaid program under 

6 title XIX, or under a State child health insurance 

7 plan under title XXI, respectively, of the Social Se8 curity Act on or after the date that is 60 days after 

9 the date of the enactment of this Act. 

10 (d) PROVISION OF MEDICAID AND SCHIP APPLICA11 TIONS AND INFORMATION UNDER THE SCHOOL LUNCH

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

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

14 amended—

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

16 ‘‘(B)(i) Applications’’; and 

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

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

19 lunches that are distributed pursuant to clause (i) to par20 ents or guardians of children in attendance at schools par21 ticipating in the school lunch program under this Act shall 

22 also contain information on the availability of medical as23 sistance under title XIX of the Social Security Act (42 

24 U.S.C. 1396 et seq.) (commonly referred to as the ‘med25 icaid program’) and of child health assistance under title 
74

•HR 936 IH 

1 XXI of such Act (commonly referred to as ‘SCHIP’), in2 cluding information on how to obtain an application for 

3 assistance under such program. 

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

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

6 separate from the application form for free and reduced 

7 price lunches under clause (i).’’. 

8 (e) 12-MONTHS CONTINUOUS ELIGIBILITY.—

9 (1) MEDICAID.—Section 1902(e)(12) of the So10 cial Security Act (42 U.S.C. 1396a(e)(12)) is 

11 amended—

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

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

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

15 State (not to exceed 19 years of age)’’ and in16 serting ‘‘19 years of age (or such higher age as 

17 the State has elected under subsection 

18 (l)(1)(D)) or who is eligible for medical assist19 ance as the parent of such a child’’; 

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

21 period (not to exceed 12 months)’’ and insert22 ing ‘‘the 12-month period beginning on the 

23 date’’; and 
75

•HR 936 IH 

1 (D) in subparagraph (B), by inserting ‘‘or, 

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

3 after ‘‘the individual’’. 

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

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

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

8 and parents under this title in the same manner as 

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

10 eligibility for individuals described in such section 

11 under title XIX.’’. 

12 SEC. 1122. AUTOMATIC ENROLLMENT OF CHILDREN BORN 

13 TO TITLE XXI PARENTS. 

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

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

16 the following new subparagraph: 

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

19 FAMILYCARE.—Such eligibility standards shall 

20 provide for automatic coverage of a child born 

21 to an individual who is provided assistance 

22 under this title in the same manner as medical 

23 assistance would be provided under section 

24 1902(e)(4) to a child described in such sec25 tion.’’.
76

•HR 936 IH 

1 CHAPTER 3—EFFECTIVE DATE 

2 SEC. 1131. EFFECTIVE DATE. 

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

4 amendments made by this subtitle take effect on the date 

5 of enactment of this Act. 

6 (b) EXTENSION OF EFFECTIVE DATE FOR STATE

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

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

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

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

14 of its failure to meet the additional requirements before 

15 the first day of the first calendar quarter beginning after 

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

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

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

20 the session is considered to be a separate regular session 

21 of the State legislature. 
77

•HR 936 IH 

1 Subtitle C—Improving Access to 

2 Care 

3 CHAPTER 1—COMMISSION 

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

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

8 (b) MEMBERSHIP.—

9 (1) COMPOSITION.—The Commission shall be 

10 composed of 11 members of whom—

11 (A) 3 members shall be appointed by the 

12 President; 

13 (B) 2 members shall be appointed by the 

14 Majority Leader of the Senate; 

15 (C) 2 members shall be appointed by the 

16 Speaker of the House of Representatives; 

17 (D) 2 members shall be appointed by the 

18 Minority Leader of the Senate; and 

19 (E) 2 members shall be appointed by the 

20 Minority Leader of the House of Representa21 tives. 

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

25 health care providers. 
78

•HR 936 IH 

1 (3) TIMING OF APPOINTMENTS.—Members of 

2 the Commission shall be appointed not later than 6 

3 months after the date of enactment of this Act. 

4 (4) CHAIR.—

5 (A) IN GENERAL.—The Commission shall 

6 select a Chair from among its members. 

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

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

11 their continuing supervision; and 

12 (ii) the use and expenditure of funds 

13 available to the Commission. 

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

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

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

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

22 away from their homes or regular places of business 

23 in the performance of services for the Commission. 

24 (c) MEETINGS.—
79

•HR 936 IH 

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

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

4 its first meeting. 

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

6 call of the Chair. 

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

8 the Commission shall constitute a quorum, but a 

9 lesser number of members may hold hearings. 

10 (d) DUTIES.—

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

13 care. 

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

16 (A) the impact of payment rates under the 

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

19 provider participation in the delivery of health 

20 care to children; 

21 (B) the access to health care of children 

22 with special health care needs, particularly 

23 those in managed care delivery systems; 

24 (C) the access to, and delivery of, preven25 tive health care to children; 
80

•HR 936 IH 

1 (D) Federal and State government efforts 

2 to collect data, report, evaluate, and monitor 

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

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

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

10 (F) other factors that impact the ability of 

11 families with children to gain access to health 

12 care services. 

13 (3) REPORTS.—

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

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

18 a report. 

19 (B) CONTENTS.—Each report shall contain 

20 the results of the study conducted for that year 

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

23 (i) health status; and 

24 (ii) access to health care. 

25 (e) POWERS OF THE COMMISSION.—
81

•HR 936 IH 

1 (1) HEARINGS.—The Commission may hold 

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

5 (2) INFORMATION FROM FEDERAL AGENCIES.—

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

8 Commission considers necessary to carry out this 

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

11 furnish such information to the Commission. 

12 (3) POSTAL SERVICES.—The Commission may 

13 use the United States mails in the same manner and 

14 under the same conditions as other departments and 

15 agencies of the Federal Government. 

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

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

19 (f) STAFF AND ADMINISTRATIVE SUPPORT.—

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

22 and regulations, appoint and terminate an executive 

23 director and such other additional personnel as may 

24 be necessary to enable the Commission to perform 
82

•HR 936 IH 

1 its duties. The employment of an executive director 

2 shall be subject to confirmation by the Commission. 

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

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

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

9 the rate of pay for the executive director and other 

10 personnel may not exceed the rate payable for level 

11 V of the Executive Schedule under section 5316 of 

12 title 5, United States Code. 

13 (3) DETAIL OF GOVERNMENT EMPLOYEES.—

14 Any Federal Government employee may be detailed 

15 to the Commission without reimbursement, and such 

16 detail shall be without interruption or loss of civil 

17 service status or privilege. 

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

20 may procure temporary and intermittent services 

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

22 at rates for individuals which do not exceed the daily 

23 equivalent of the annual rate of basic pay prescribed 

24 for level V of the Executive Schedule under section 

25 5316 of title 5, United States Code. 
83

•HR 936 IH 

1 CHAPTER 2—CHILDREN’S HEALTH 

2 INSURANCE ACCOUNTABILITY 

3 SEC. 1211. SHORT TITLE. 

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

5 Insurance Accountability Act of 2003’’. 

6 SEC. 1212. FINDINGS. 

7 Congress makes the following findings: 

8 (1) Children have health and development needs 

9 that are markedly different than those for the adult 

10 population. 

11 (2) Children experience complex and continuing 

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

14 for optimal development. 

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

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

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

21 gender, and developmentally appropriate to be useful 

22 to families and children. 

23 (5) Costly disorders of adulthood often have 

24 their origins in childhood, making early access to ef25 fective health services in childhood essential. 
84

•HR 936 IH 

1 (6) More than 200 chronic conditions, disabil2 ities and diseases affect children, including asthma, 

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

4 autism, cerebral palsy, congenital heart disease, 

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

7 depth knowledge about their particular condition. 

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

9 injury differ dramatically from adults. 

10 SEC. 1213. AMENDMENTS TO THE PUBLIC HEALTH SERVICE 

11 ACT. 

12 (a) PATIENT PROTECTION STANDARDS.—Title 

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

14 et seq.) is amended—

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

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

17 part: 

18 ‘‘PART C—CHILDREN’S HEALTH PROTECTION

19 STANDARDS

20 ‘‘SEC. 2770. ACCESS TO CARE. 

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

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

24 a health insurance issuer in connection with the pro25 vision of health insurance coverage, requires or pro-
85

•HR 936 IH 

1 vides for an enrollee to designate a participating pri2 mary care provider for a child of such enrollee—

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

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

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

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

9 shall consider appropriate pediatric expertise in 

10 mandatorily assigning such an enrollee to a pri11 mary care provider. 

12 ‘‘(2) CONSTRUCTION.—Nothing in paragraph 

13 (1) shall waive any requirements of coverage relating 

14 to medical necessity or appropriateness with respect 

15 to coverage of services. 

16 ‘‘(b) ACCESS TO PEDIATRIC SPECIALTY SERVICES.—

17 ‘‘(1) REFERRAL TO SPECIALTY CARE FOR CHIL18 DREN REQUIRING TREATMENT BY SPECIALISTS.—

19 ‘‘(A) IN GENERAL.—In the case of a child 

20 who is covered under a group health plan, or 

21 health insurance coverage offered by a health 

22 insurance issuer and who has a mental or phys23 ical condition, disability, or disease of sufficient 

24 seriousness and complexity to require diagnosis, 

25 evaluation or treatment by a specialist, the plan
86

•HR 936 IH 

1 or issuer shall make or provide for a referral 

2 to a specialist who has extensive experience or 

3 training, and is available and accessible to pro4 vide the treatment for such condition or dis5 ease, including the choice of a nonprimary care 

6 physician specialist participating in the plan or 

7 a referral to a nonparticipating provider as pro8 vided for under subparagraph (D) if such a pro9 vider is not available within the plan. 

10 ‘‘(B) SPECIALIST DEFINED.—For purposes 

11 of this subsection, the term ‘specialist’ means, 

12 with respect to a condition, disability, or dis13 ease, a health care practitioner, facility, or cen14 ter (such as a center of excellence) that has ex15 tensive pediatric expertise through appropriate 

16 training or experience to provide high quality 

17 care in treating the condition, disability or dis18 ease. 

19 ‘‘(C) REFERRALS TO PARTICIPATING PRO20 VIDERS.—A plan or issuer is not required under 

21 subparagraph (A) to provide for a referral to a 

22 specialist that is not a participating provider, 

23 unless the plan or issuer does not have an ap24 propriate specialist that is available and acces25 sible to treat the enrollee’s condition and that 
87

•HR 936 IH 

1 is a participating provider with respect to such 

2 treatment. 

3 ‘‘(D) TREATMENT OF NONPARTICIPATING

4 PROVIDERS.—If a plan or issuer refers a child 

5 enrollee to a nonparticipating specialist, services 

6 provided pursuant to the referral shall be pro7 vided at no additional cost to the enrollee be8 yond what the enrollee would otherwise pay for 

9 services received by such a specialist that is a 

10 participating provider. 

11 ‘‘(E) SPECIALISTS AS PRIMARY CARE PRO12 VIDERS.—A plan or issuer shall have in place a 

13 procedure under which a child who is covered 

14 under health insurance coverage provided by 

15 the plan or issuer who has a condition or dis16 ease that requires specialized medical care over 

17 a prolonged period of time shall receive a refer18 ral to a pediatric specialist affiliated with the 

19 plan, or if not available within the plan, to a 

20 nonparticipating provider for such condition 

21 and such specialist may be responsible for and 

22 capable of providing and coordinating the 

23 child’s primary and specialty care. 

24 ‘‘(2) STANDING REFERRALS.—
88

•HR 936 IH 

1 ‘‘(A) IN GENERAL.—A group health plan, 

2 or health insurance issuer in connection with 

3 the provision of health insurance coverage of a 

4 child, shall have a procedure by which a child 

5 who has a condition, disability, or disease that 

6 requires ongoing care from a specialist may re7 quest and obtain a standing referral to such 

8 specialist for treatment of such condition. If the 

9 primary care provider in consultation with the 

10 medical director of the plan or issuer and the 

11 specialist (if any), determines that such a 

12 standing referral is appropriate, the plan or 

13 issuer shall authorize such a referral to such a 

14 specialist. Such standing referral shall be con15 sistent with a treatment plan. 

16 ‘‘(B) TREATMENT PLANS.—A group health 

17 plan, or health insurance issuer, with the par18 ticipation of the family and the health care pro19 viders of the child, shall develop a treatment 

20 plan for a child who requires ongoing care that 

21 covers a specified period of time (but in no 

22 event less than a 6-month period). Services pro23 vided for under the treatment plan shall not re24 quire additional approvals or referrals through 

25 a gatekeeper. 
89

•HR 936 IH 

1 ‘‘(C) TERMS OF REFERRAL.—The provi2 sions of subparagraph (C) and (D) of para3 graph (1) shall apply with respect to referrals 

4 under subparagraph (A) in the same manner as 

5 they apply to referrals under paragraph (1)(A). 

6 ‘‘(c) ADEQUACY OF ACCESS.—For purposes of sub7 sections (a) and (b), a group health plan or health insur8 ance issuer in connection with health insurance coverage 

9 shall ensure that a sufficient number, distribution, and va10 riety of qualified participating health care providers are 

11 available so as to ensure that all covered health care serv12 ices, including specialty services, are available and acces13 sible to all enrollees in a timely manner. 

14 ‘‘(d) COVERAGE OF EMERGENCY SERVICES.— 

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

16 health insurance coverage offered by a health insur17 ance issuer, provides any benefits for children with 

18 respect to emergency services (as defined in para19 graph (2)(A)), the plan or issuer shall cover emer20 gency services furnished under the plan or cov21 erage— 

22 ‘‘(A) without the need for any prior au23 thorization determination; 

24 ‘‘(B) whether or not the physician or pro25 vider furnishing such services is a participating 
90

•HR 936 IH 

1 physician or provider with respect to such serv2 ices; and 

3 ‘‘(C) without regard to any other term or 

4 condition of such coverage (other than exclusion 

5 of benefits, or an affiliation or waiting period, 

6 permitted under section 2701). 

7 ‘‘(2) DEFINITIONS.—In this subsection:

8 ‘‘(A) EMERGENCY MEDICAL CONDITION

9 BASED ON PRUDENT LAYPERSON STANDARD.—

10 The term ‘emergency medical condition’ means 

11 a medical condition manifesting itself by acute 

12 symptoms of sufficient severity (including se13 vere pain) such that a prudent layperson, who 

14 possesses an average knowledge of health and 

15 medicine, could reasonably expect the absence 

16 of immediate medical attention to result in a 

17 condition described in clause (i), (ii), or (iii) of 

18 section 1867(e)(1)(A) of the Social Security 

19 Act. 

20 ‘‘(B) EMERGENCY SERVICES.—The term 

21 ‘emergency services’ means— 

22 ‘‘(i) a medical screening examination 

23 (as required under section 1867 of the So24 cial Security Act) that is within the capa25 bility of the emergency department of a
91

•HR 936 IH 

1 hospital, including ancillary services rou2 tinely available to the emergency depart3 ment to evaluate an emergency medical 

4 condition (as defined in subparagraph 

5 (A)); and 

6 ‘‘(ii) within the capabilities of the 

7 staff and facilities available at the hospital, 

8 such further medical examination and 

9 treatment as are required under section 

10 1867 of such Act to stabilize the patient. 

11 ‘‘(3) REIMBURSEMENT FOR MAINTENANCE

12 CARE AND POST-STABILIZATION CARE.—A group 

13 health plan, and health insurance issuer offering 

14 health insurance coverage, shall provide, in covering 

15 services other than emergency services, for reim16 bursement with respect to services which are other17 wise covered and which are provided to an enrollee 

18 other than through the plan or issuer if the services 

19 are maintenance care or post-stabilization care cov20 ered under the guidelines established under section 

21 1852(d) of the Social Security Act (relating to pro22 moting efficient and timely coordination of appro23 priate maintenance and post-stabilization care of an 

24 enrollee after an enrollee has been determined to be 

25 stable). 
92

•HR 936 IH 

1 ‘‘(e) PROHIBITION ON FINANCIAL BARRIERS.—A 

2 health insurance issuer in connection with the provision 

3 of health insurance coverage may not impose any cost 

4 sharing for pediatric specialty services provided under 

5 such coverage to enrollee children in amounts that exceed 

6 the cost-sharing required for other specialty care under 

7 such coverage.

8 ‘‘(f) CHILDREN WITH SPECIAL HEALTH CARE

9 NEEDS.—A health insurance issuer in connection with the 

10 provision of health insurance coverage shall ensure that 

11 such coverage provides special consideration for the provi12 sion of services to enrollee children with special health care 

13 needs. Appropriate procedures shall be implemented to 

14 provide care for children with special health care needs. 

15 The development of such procedures shall include partici16 pation by the families of such children. 

17 ‘‘(g) DEFINITIONS.—In this part: 

18 ‘‘(1) CHILD.—The term ‘child’ means an indi19 vidual who is under 19 years of age. 

20 ‘‘(2) CHILDREN WITH SPECIAL HEALTH CARE

21 NEEDS.—The term ‘children with special health care 

22 needs’ means those children who have or are at ele23 vated risk for chronic physical, developmental, be24 havioral or emotional conditions and who also re-
93

•HR 936 IH 

1 quire health and related services of a type and 

2 amount not usually required by children. 

3 ‘‘SEC. 2771. CONTINUITY OF CARE. 

4 ‘‘(a) IN GENERAL.—If a contract between a health 

5 insurance issuer, in connection with the provision of health 

6 insurance coverage, and a health care provider is termi7 nated (other than by the issuer for failure to meet applica8 ble quality standards or for fraud) and an enrollee is un9 dergoing a course of treatment from the provider at the 

10 time of such termination, the issuer shall—

11 ‘‘(1) notify the enrollee of such termination, 

12 and 

13 ‘‘(2) subject to subsection (c), permit the en14 rollee to continue the course of treatment with the 

15 provider during a transitional period (provided under 

16 subsection (b)). 

17 ‘‘(b) TRANSITIONAL PERIOD.—

18 ‘‘(1) IN GENERAL.—Except as provided in para19 graphs (2) through (4), the transitional period under 

20 this subsection shall extend for at least—

21 ‘‘(A) 60 days from the date of the notice 

22 to the enrollee of the provider’s termination in 

23 the case of a primary care provider, or 

24 ‘‘(B) 120 days from such date in the case 

25 of another provider. 
94

•HR 936 IH 

1 ‘‘(2) INSTITUTIONAL CARE.—The transitional 

2 period under this subsection for institutional or in3 patient care from a provider shall extend until the 

4 discharge or termination of the period of institu5 tionalization and shall include reasonable follow-up 

6 care related to the institutionalization and shall also 

7 include institutional care scheduled prior to the date 

8 of termination of the provider status.

9 ‘‘(3) PREGNANCY.—If— 

10 ‘‘(A) an enrollee has entered the second 

11 trimester of pregnancy at the time of a pro12 vider’s termination of participation, and 

13 ‘‘(B) the provider was treating the preg14 nancy before date of the termination, 

15 the transitional period under this subsection with re16 spect to provider’s treatment of the pregnancy shall 

17 extend through the provision of post-partum care di18 rectly related to the delivery. 

19 ‘‘(4) TERMINAL ILLNESS.— 

20 ‘‘(A) IN GENERAL.—If— 

21 ‘‘(i) an enrollee was determined to be 

22 terminally ill (as defined in subparagraph 

23 (B)) at the time of a provider’s termi24 nation of participation, and
95

•HR 936 IH 

1 ‘‘(ii) the provider was treating the ter2 minal illness before the date of termi3 nation, 

4 the transitional period under this subsection 

5 shall extend for the remainder of the enrollee’s 

6 life for care directly related to the treatment of 

7 the terminal illness. 

8 ‘‘(B) DEFINITION.—In subparagraph (A), 

9 an enrollee is considered to be ‘terminally ill’ if 

10 the enrollee has a medical prognosis that the 

11 enrollee’s life expectancy is 6 months or less. 

12 ‘‘(c) PERMISSIBLE TERMS AND CONDITIONS.—An 

13 issuer may condition coverage of continued treatment by 

14 a provider under subsection (a)(2) upon the provider 

15 agreeing to the following terms and conditions: 

16 ‘‘(1) The provider agrees to continue to accept 

17 reimbursement from the issuer at the rates applica18 ble prior to the start of the transitional period as 

19 payment in full. 

20 ‘‘(2) The provider agrees to adhere to the 

21 issuer’s quality assurance standards and to provide 

22 to the issuer necessary medical information related 

23 to the care provided. 

24 ‘‘(3) The provider agrees otherwise to adhere to 

25 the issuer’s policies and procedures, including proce-
96

•HR 936 IH 

1 dures regarding referrals and obtaining prior au2 thorization and providing services pursuant to a 

3 treatment plan approved by the issuer. 

4 ‘‘SEC. 2772. CONTINUOUS QUALITY IMPROVEMENT. 

5 ‘‘(a) IN GENERAL.—A health insurance issuer that 

6 offers health insurance coverage for children shall estab7 lish and maintain an ongoing, internal quality assurance 

8 program that at a minimum meets the requirements of 

9 subsection (b).

10 ‘‘(b) REQUIREMENTS.—The internal quality assur11 ance program of an issuer under subsection (a) shall— 

12 ‘‘(1) establish and measure a set of health care, 

13 functional assessments, structure, processes and out14 comes, and quality indicators that are unique to chil15 dren and based on nationally accepted standards or 

16 guidelines of care; 

17 ‘‘(2) maintain written protocols consistent with 

18 recognized clinical guidelines or current consensus 

19 on the pediatric field, to be used for purposes of in20 ternal utilization review, with periodic updating and 

21 evaluation by pediatric specialists to determine effec22 tiveness in controlling utilization; 

23 ‘‘(3) provide for peer review by health care pro24 fessionals of the structure, processes, and outcomes 
97

•HR 936 IH 

1 related to the provision of health services, including 

2 pediatric review of pediatric cases; 

3 ‘‘(4) include in member satisfaction surveys, 

4 questions on child and family satisfaction and expe5 rience of care, including care to children with special 

6 needs; 

7 ‘‘(5) monitor and evaluate the continuity of 

8 care with respect to children; 

9 ‘‘(6) include pediatric measures that are di10 rected at meeting the needs of at-risk children and 

11 children with chronic conditions, disabilities and se12 vere illnesses; 

13 ‘‘(7) maintain written guidelines to ensure the 

14 availability of medications appropriate to children; 

15 ‘‘(8) use focused studies of care received by 

16 children with certain types of chronic conditions and 

17 disabilities and focused studies of specialized services 

18 used by children with chronic conditions and disabil19 ities; 

20 ‘‘(9) monitor access to pediatric specialty serv21 ices; and 

22 ‘‘(10) monitor child health care professional 

23 satisfaction. 

24 ‘‘(c) UTILIZATION REVIEW ACTIVITIES.—

25 ‘‘(1) COMPLIANCE WITH REQUIREMENTS.—
98

•HR 936 IH 

1 ‘‘(A) IN GENERAL.—A health insurance 

2 issuer that offers health insurance coverage for 

3 children shall conduct utilization review activi4 ties in connection with the provision of such 

5 coverage only in accordance with a utilization 

6 review program that meets at a minimum the 

7 requirements of this subsection. 

8 ‘‘(B) DEFINITIONS.—In this subsection: 

9 ‘‘(i) CLINICAL PEERS.—The term 

10 ‘clinical peer’ means, with respect to a re11 view, a physician or other health care pro12 fessional who holds a non-restricted license 

13 in a State and in the same or similar spe14 cialty as typically manages the pediatric 

15 medical condition, procedure, or treatment 

16 under review. 

17 ‘‘(ii) HEALTH CARE PROFESSIONAL.—

18 The term ‘health care professional’ means 

19 a physician or other health care practi20 tioner licensed or certified under State law 

21 to provide health care services and who is 

22 operating within the scope of such licen23 sure or certification. 

24 ‘‘(iii) UTILIZATION REVIEW.—The 

25 terms ‘utilization review’ and ‘utilization
99

•HR 936 IH 

1 review activities’ mean procedures used to 

2 monitor or evaluate the clinical necessity, 

3 appropriateness, efficacy, or efficiency of 

4 health care services, procedures or settings 

5 for children, and includes prospective re6 view, concurrent review, second opinions, 

7 case management, discharge planning, or 

8 retrospective review specific to children. 

9 ‘‘(2) WRITTEN POLICIES AND CRITERIA.—

10 ‘‘(A) WRITTEN POLICIES.—A utilization 

11 review program shall be conducted consistent 

12 with written policies and procedures that govern 

13 all aspects of the program. 

14 ‘‘(B) USE OF WRITTEN CRITERIA.—A utili15 zation review program shall utilize written clin16 ical review criteria specific to children and de17 veloped pursuant to the program with the input 

18 of appropriate physicians, including pediatri19 cians, nonprimary care pediatric specialists, and 

20 other child health professionals. 

21 ‘‘(C) ADMINISTRATION BY HEALTH CARE

22 PROFESSIONALS.—A utilization review program 

23 shall be administered by qualified health care 

24 professionals, including health care profes-
100

•HR 936 IH 

1 sionals with pediatric expertise who shall over2 see review decisions. 

3 ‘‘(3) USE OF QUALIFIED, INDEPENDENT PER4 SONNEL.—

5 ‘‘(A) IN GENERAL.—A utilization review 

6 program shall provide for the conduct of utiliza7 tion review activities only through personnel 

8 who are qualified and, to the extent required, 

9 who have received appropriate pediatric or child 

10 health training in the conduct of such activities 

11 under the program. 

12 ‘‘(B) PEER REVIEW OF ADVERSE CLINICAL

13 DETERMINATIONS.—A utilization review pro14 gram shall provide that clinical peers shall 

15 evaluate the clinical appropriateness of adverse 

16 clinical determinations and divergent clinical 

17 options. 

18 ‘‘SEC. 2773. APPEALS AND GRIEVANCE MECHANISMS FOR 

19 CHILDREN. 

20 ‘‘(a) INTERNAL APPEALS PROCESS.—A health insur21 ance issuer in connection with the provision of health in22 surance coverage for children shall establish and maintain 

23 a system to provide for the resolution of complaints and 

24 appeals regarding all aspects of such coverage. Such a sys25 tem shall include an expedited procedure for appeals on 
101

•HR 936 IH 

1 behalf of a child enrollee in situations in which the time 

2 frame of a standard appeal would jeopardize the life, 

3 health, or development of the child. 

4 ‘‘(b) EXTERNAL APPEALS PROCESS.—A health in5 surance issuer in connection with the provision of health 

6 insurance coverage for children shall provide for an inde7 pendent external review process that meets the following 

8 requirements:

9 ‘‘(1) External appeal activities shall be con10 ducted through clinical peers, a physician or other 

11 health care professional who is appropriately 

12 credentialed in pediatrics with the same or similar 

13 specialty and typically manages the condition, proce14 dure, or treatment under review or appeal. 

15 ‘‘(2) External appeal activities shall be con16 ducted through an entity that has sufficient pedi17 atric expertise, including subspecialty expertise, and 

18 staffing to conduct external appeal activities on a 

19 timely basis. 

20 ‘‘(3) Such a review process shall include an ex21 pedited procedure for appeals on behalf of a child 

22 enrollee in which the time frame of a standard ap23 peal would jeopardize the life, health, or development 

24 of the child. 
102

•HR 936 IH 

1 ‘‘SEC. 2774. ACCOUNTABILITY THROUGH DISTRIBUTION OF 

2 INFORMATION. 

3 ‘‘(a) IN GENERAL.—A health insurance issuer in con4 nection with the provision of health insurance coverage for 

5 children shall submit to enrollees (and prospective enroll6 ees), and make available to the public, in writing the 

7 health-related information described in subsection (b). 

8 ‘‘(b) INFORMATION.—The information to be provided 

9 under subsection (a) shall include a report of measures 

10 of structures, processes, and outcomes regarding each 

11 health insurance product offered to participants and de12 pendents in a manner that is separate for both the adult 

13 and child enrollees, using measures that are specific to 

14 each group.’’. 

15 (b) APPLICATION TO GROUP HEALTH INSURANCE

16 COVERAGE.—

17 (1) IN GENERAL.—Subpart 2 of part A of title 

18 XXVII of the Public Health Service Act (42 U.S.C. 

19 300gg–4 et seq.) is amended by adding at the end 

20 the following new section: 

21 ‘‘SEC. 2707. CHILDREN’S HEALTH ACCOUNTABILITY STAND22 ARDS. 

23 ‘‘(a) IN GENERAL.—Each health insurance issuer 

24 shall comply with children’s health accountability require25 ment under part C with respect to group health insurance 

26 coverage it offers.
103

•HR 936 IH 

1 ‘‘(b) ASSURING COORDINATION.—The Secretary of 

2 Health and Human Services and the Secretary of Labor 

3 shall ensure, through the execution of an interagency 

4 memorandum of understanding between such Secretaries, 

5 that—

6 ‘‘(1) regulations, rulings, and interpretations 

7 issued by such Secretaries relating to the same mat8 ter over which such Secretaries have responsibility 

9 under part C (and this section) and section 714 of 

10 the Employee Retirement Income Security Act of 

11 1974 are administered so as to have the same effect 

12 at all times; and 

13 ‘‘(2) coordination of policies relating to enforc14 ing the same requirements through such Secretaries 

15 in order to have a coordinated enforcement strategy 

16 that avoids duplication of enforcement efforts and 

17 assigns priorities in enforcement.’’. 

18 (2) CONFORMING AMENDMENT.—Section 2792 

19 of the Public Health Service Act (42 U.S.C. 300gg–

20 92) is amended by inserting ‘‘and section 2707(b)’’ 

21 after ‘‘of 1996’’. 

22 (c) APPLICATION TO INDIVIDUAL HEALTH INSUR23 ANCE COVERAGE.—Part B of title XXVII of the Public 

24 Health Service Act (42 U.S.C. 300gg-41 et seq.) is amend-
104

•HR 936 IH 

1 ed by inserting after section 2752 the following new sec2 tion: 

3 ‘‘SEC. 2753. CHILDREN’S HEALTH ACCOUNTABILITY STAND4 ARDS. 

5 ‘‘Each health insurance issuer shall comply with chil6 dren’s health accountability requirements under part C 

7 with respect to individual health insurance coverage it of8 fers.’’. 

9 (d) MODIFICATION OF PREEMPTION STANDARDS.—

10 (1) GROUP HEALTH INSURANCE COVERAGE.—

11 Section 2723 of the Public Health Service Act (42 

12 U.S.C. 300gg–23) is amended—

13 (A) in subsection (a)(1), by striking ‘‘sub14 section (b)’’ and inserting ‘‘subsections (b) and 

15 (c)’’; 

16 (B) by redesignating subsections (c) and 

17 (d) as subsections (d) and (e), respectively; and 

18 (C) by inserting after subsection (b) the 

19 following new subsection: 

20 ‘‘(c) SPECIAL RULES IN CASE OF CHILDREN’S

21 HEALTH ACCOUNTABILITY REQUIREMENTS.—Subject to 

22 subsection (a)(2), the provisions of section 2707 and part 

23 C, and part D insofar as it applies to section 2707 or part 

24 C, shall not prevent a State from establishing require25 ments relating to the subject matter of such provisions 
105

•HR 936 IH 

1 so long as such requirements are at least as stringent on 

2 health insurance issuers as the requirements imposed 

3 under such provisions.’’. 

4 (2) INDIVIDUAL HEALTH INSURANCE COV5 ERAGE.—Section 2762 of the Public Health Service 

6 Act (42 U.S.C. 300gg–62), as added by section 

7 605(b)(3)(B) of Public Law 104–204, is amended—

8 (A) in subsection (a), by striking ‘‘sub9 section (b), nothing in this part’’ and inserting 

10 ‘‘subsections (b) and (c), nothing in this part’’, 

11 and 

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

13 subsection: 

14 ‘‘(c) SPECIAL RULES IN CASE OF CHILDREN’S

15 HEALTH ACCOUNTABILITY REQUIREMENTS.—Subject to 

16 subsection (b), the provisions of section 2753 and part C, 

17 and part D insofar as it applies to section 2753 or part 

18 C, shall not prevent a State from establishing require19 ments relating to the subject matter of such provisions 

20 so long as such requirements are at least as stringent on 

21 health insurance issuers as the requirements imposed 

22 under such section.’’. 
106

•HR 936 IH 

1 SEC. 1214. AMENDMENTS TO THE EMPLOYEE RETIREMENT 

2 INCOME SECURITY ACT OF 1974. 

3 (a) IN GENERAL.—Subpart B of part 7 of subtitle 

4 B of title I of the Employee Retirement Income Security 

5 Act of 1974 (29 U.S.C. 1185 et seq.) is amended by add6 ing at the end the following: 

7 ‘‘SEC. 714. CHILDREN’S HEALTH ACCOUNTABILITY STAND8 ARDS. 

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

10 provisions of part C of title XXVII of the Public Health 

11 Service Act shall apply under this subpart and part to a 

12 group health plan (and group health insurance coverage 

13 offered in connection with a group health plan) as if such 

14 part C were incorporated in this section. 

15 ‘‘(b) APPLICATION.—In applying subsection (a) 

16 under this subpart and part, any reference in such part 

17 C—

18 ‘‘(1) to health insurance coverage is deemed to 

19 be a reference only to group health insurance cov20 erage offered in connection with a group health plan 

21 and to also be a reference to coverage under a group 

22 health plan; 

23 ‘‘(2) to a health insurance issuer is deemed to 

24 be a reference only to such an issuer in relation to 

25 group health insurance coverage or, with respect to 

26 a group health plan, to the plan; 
107

•HR 936 IH 

1 ‘‘(3) to the Secretary is deemed to be a ref2 erence to the Secretary of Labor; 

3 ‘‘(4) to an applicable State authority is deemed 

4 to be a reference to the Secretary of Labor; and 

5 ‘‘(5) to an enrollee with respect to health insur6 ance coverage is deemed to include a reference to a 

7 participant or beneficiary with respect to a group 

8 health plan.’’. 

9 (b) MODIFICATION OF PREEMPTION STANDARDS.—

10 Section 731 of the Employee Retirement Income Security 

11 Act of 1974 (29 U.S.C. 1191) is amended—

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

13 (b)’’ and inserting ‘‘subsections (b) and (c)’’; 

14 (2) by redesignating subsections (c) and (d) as 

15 subsections (d) and (e), respectively; and 

16 (3) by inserting after subsection (b) the fol17 lowing new subsection: 

18 ‘‘(c) SPECIAL RULES IN CASE OF PATIENT AC19 COUNTABILITY REQUIREMENTS.—Subject to subsection 

20 (a)(2), the provisions of section 714 shall not prevent a 

21 State from establishing requirements relating to the sub22 ject matter of such provisions so long as such require23 ments are at least as stringent on group health plans and 

24 health insurance issuers in connection with group health 
108

•HR 936 IH 

1 insurance coverage as the requirements imposed under 

2 such provisions.’’. 

3 (c) CONFORMING AMENDMENTS.—

4 (1) Section 732(a) of the Employee Retirement 

5 Income Security Act of 1974 (29 U.S.C. 1191a(a)) 

6 is amended by striking ‘‘section 711’’ and inserting 

7 ‘‘sections 711 and 714’’. 

8 (2) The table of contents in section 1 of the 

9 Employee Retirement Income Security Act of 1974 

10 is amended by inserting after the item relating to 

11 section 713 the following new item:

‘‘Sec. 714. Children’s health accountability standards.’’.

12 SEC. 1215. STUDIES. 

13 (a) BY SECRETARY.—Not later than 1 year after the 

14 date of enactment of this Act, the Secretary of Health and 

15 Human Services shall conduct a study, and prepare and 

16 submit to Congress a report, concerning—

17 (1) the unique characteristics of patterns of ill18 ness, disability, and injury in children; 

19 (2) the development of measures of quality of 

20 care and outcomes related to the health care of chil21 dren; and 

22 (3) the access of children to primary mental 

23 health services and the coordination of managed be24 havioral health services. 

25 (b) BY GAO.—
109

•HR 936 IH 

1 (1) MANAGED CARE.—Not later than 1 year 

2 after the date of enactment of this Act, the General 

3 Accounting Office shall conduct a study, and pre4 pare and submit to the Committee on Health, Edu5 cation, Labor, and Pensions of the Senate and the 

6 Committee on Energy and Commerce of the House 

7 of Representatives a report, concerning—

8 (A) an assessment of the structure and 

9 performance of non-governmental health plans, 

10 medicaid managed care organizations, plans 

11 under title XIX of the Social Security Act (42 

12 U.S.C. 1396 et seq.), and the program under 

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

14 1397aa et seq.) serving the needs of children 

15 with special health care needs; 

16 (B) an assessment of the structure and 

17 performance of non-governmental plans in serv18 ing the needs of children as compared to med19 icaid managed care organizations under title 

20 XIX of the Social Security Act (42 U.S.C. 1396 

21 et seq.); and 

22 (C) the emphasis that private managed 

23 care health plans place on primary care and the 

24 control of services as it relates to care and serv-
110

•HR 936 IH 

1 ices provided to children with special health 

2 care needs. 

3 (2) PLAN SURVEY.—Not later than 1 year after 

4 the date of enactment of this Act, the General Ac5 counting Office shall prepare and submit to the 

6 Committee on Health, Education, Labor, and Pen7 sions of the Senate and the Committee on Energy 

8 and Commerce of the House of Representatives a re9 port that contains a survey of health plan activities 

10 that address the unique health needs of adolescents, 

11 including quality measures for adolescents and inno12 vative practice arrangement. 

13 SEC. 1216. EFFECTIVE DATES. 

14 (a) GROUP HEALTH INSURANCE COVERAGE.—Sub15 ject to subsection (b), the amendments made by this chap16 ter shall apply with respect to group health plans and with 

17 respect to health insurance coverage offered, sold, issued, 

18 renewed, in effect, or operated in the individual market 

19 for plan years beginning on or after January 1, 2004. 

20 (b) COLLECTIVE BARGAINING EXCEPTION.—In the 

21 case of a group health plan maintained pursuant to 1 or 

22 more collective bargaining agreements between employee 

23 representatives and 1 or more employers ratified before 

24 the date of enactment of this Act, the amendments made 
111

•HR 936 IH 

1 by this chapter shall not apply to plan years beginning 

2 before the later of—

3 (1) the earliest date as of which all such collec4 tive bargaining agreements relating to the plan have 

5 terminated (determined without regard to any exten6 sion thereof agreed to after the date of the enact7 ment of this Act), or 

8 (2) January 1, 2004. 

9 For purposes of paragraph (1), any plan amendment made 

10 pursuant to a collective bargaining agreement relating to 

11 the plan which amends the plan solely to conform to any 

12 requirement added by this chapter shall not be treated as 

13 a termination of such collective bargaining agreement. 

14 CHAPTER 3—EPSDT 

15 SEC. 1221. COLLECTION OF DATA REGARDING THE DELIV16 ERY OF EPSDT SERVICES. 

17 Section 1902(a)(43) of the Social Security Act (42 

18 U.S.C. 1396a(a)(43)) is amended—

19 (1) in subparagraph (C), by striking ‘‘and’’ at 

20 the end; 

21 (2) in subparagraph (D)(iv), by striking the 

22 semicolon and inserting ‘‘, and’’; and 

23 (3) by inserting after subparagraph (D)(iv), the 

24 following new subparagraph: 
112

•HR 936 IH 

1 ‘‘(E) beginning with fiscal year 2005, re2 porting to the Secretary (in a uniform form and 

3 manner established by the Secretary that does 

4 not identify individual patients and that allows 

5 for the comparison of data within and among 

6 States) the following information relating to 

7 early and periodic screening, diagnostic, and 

8 treatment services provided to each child en9 rolled under the plan during each fiscal year: 

10 ‘‘(i) as of the date of enrollment of 

11 the child, the child’s—

12 ‘‘(I) age, State of residence, gen13 der, and race/ethnicity, 

14 ‘‘(II) the basis for eligibility for 

15 medical assistance, 

16 ‘‘(III) immunization history, 

17 ‘‘(IV) blood-lead level, 

18 ‘‘(V) weight and height percentile 

19 compared to the widely accepted 

20 standard percentiles for the child’s 

21 age, 

22 ‘‘(VI) general health and any 

23 chronic conditions or disabilities, and 

24 ‘‘(VII) the primary service deliv25 ery arrangement (such as fee-for-serv-
113

•HR 936 IH 

1 ice, managed care, preferred provider 

2 organization, or other provider prac3 tice arrangement); and 

4 ‘‘(ii) throughout the fiscal year (at 

5 such intervals as the Secretary shall speci6 fy)—

7 ‘‘(I) the number of medical 

8 screenings the child received and a 

9 specific description of the services per10 formed as part of such screenings 

11 (such as the weighing and measuring 

12 of the child and the administering of 

13 a blood-lead level test), 

14 ‘‘(II) the number of screenings 

15 the child received for vision and hear16 ing problems, 

17 ‘‘(III) the number of dental 

18 screenings the child received, 

19 ‘‘(IV) information regarding 

20 whether a condition was discovered 

21 from any of such screenings, whether 

22 the child was referred for, and re23 ceived, further treatment, and if so, 

24 the number of visits, and the treat25 ments received, and 
114

•HR 936 IH 

1 ‘‘(V) the actual or estimated 

2 costs of each of such screenings and 

3 treatments, 

4 ‘‘(VI) information regarding 

5 whether such screenings and treat6 ments are more comprehensive than

7 similar screenings and treatments pro8 vided to adult individuals enrolled in 

9 the plan, and 

10 ‘‘(VII) the service delivery ar11 rangement for such screening and 

12 treatment provided;’’. 

13 Subtitle D—Reducing Public 

14 Health Risks 

15 CHAPTER 1—ASTHMA TREATMENTS 

16 SEC. 1301. FINDINGS. 

17 Congress finds that—

18 (1)(A) asthma is 1 of the most common and 

19 deadly diseases in the United States, affecting an es20 timated 14,000,000 to 15,000,000 individuals in the 

21 United States, including almost 5,000,000 children; 

22 (B) asthma is the most common chronic illness 

23 in children, affecting an estimated 7 percent of chil24 dren in the United States; 
115

•HR 936 IH 

1 (C) although asthma can occur at any age, 

2 about 80 percent of the children who develop asthma 

3 do so before starting school; 

4 (D) asthma is the single greatest cause of 

5 school absenteeism, with 10,100,000 days missed 

6 from school per year in the United States; and 

7 (E) according to a 1995 National Institutes of 

8 Health workshop report, the cost of lost productivity 

9 from missed school days for parents of children with 

10 asthma is estimated at $1,000,000,000 per year; 

11 and 

12 (2)(A) vision and hearing screening is an essen13 tial part of child health care; 

14 (B) a vision or hearing deficit may undermine 

15 a child’s ability to learn; 

16 (C) the Chicago public school system has deter17 mined through vision screening that a far higher 

18 number of children identified as failing academically 

19 suffer from vision impairment; 

20 (D) students who have failed a grade 1 or more 

21 times are even more likely to have a vision problem; 

22 (E) more than 30 percent of students in Chi23 cago public schools who were retained during the 

24 1998–1999 school year failed their school-based vi-
116

•HR 936 IH 

1 sion screening, a rate that is 50 percent higher than 

2 children who were not failing; 

3 (F) schools play a critical role in promoting a 

4 clear link between visual and hearing acuity and 

5 academic performance; 

6 (G) providing vision and hearing screening in 

7 schools helps children receive those essential health 

8 care services in a timely fashion; 

9 (H) many parents find it difficult to take time 

10 off work in order to ensure that their children re11 ceive preventive or other nonemergency health care 

12 services; and 

13 (I) allowing children to receive nonemergency 

14 health care services at school would ensure that the 

15 children receive services that promote healthy lives 

16 and better academic achievement. 

17 SEC. 1302. ASTHMA, VISION, AND HEARING SCREENING FOR 

18 EARLY HEAD START AND HEAD START PRO19 GRAMS. 

20 (a) EARLY HEAD START PROGRAMS.—Section 645A 

21 of the Head Start Act (42 U.S.C. 9840a) is amended by 

22 adding at the end the following: 

23 ‘‘(h) ASTHMA, VISION, AND HEARING SCREENING.—
117

•HR 936 IH 

1 ‘‘(1) IN GENERAL.—An entity that receives as2 sistance under this section may carry out a program 

3 under which the entity—

4 ‘‘(A) determines whether a child eligible to 

5 participate in the program described in sub6 section (a)(1) has received each of an asthma, 

7 vision, and hearing screening test using a test 

8 that is appropriate for age and risk factors on 

9 the enrollment of the child in the program; and 

10 ‘‘(B) in the case of a child who has not re11 ceived each of an asthma, and vision, and hear12 ing screening test, ensures that the enrolled 

13 child receives such a test either by referral or 

14 by performing the test (under contract or other15 wise). 

16 ‘‘(2) REIMBURSEMENT.—

17 ‘‘(A) IN GENERAL.—On the request of an 

18 entity that performs or arranges for the per19 formance of an asthma, vision, or hearing 

20 screening test under paragraph (1) on a child 

21 who is eligible for or receiving medical assist22 ance under a State plan under title XIX of the 

23 Social Security Act (42 U.S.C. 1396 et seq.), 

24 the Secretary of Health and Human Services, 

25 notwithstanding any other provision of, or limi-
118

•HR 936 IH 

1 tation under, title XIX of the Social Security 

2 Act, shall reimburse the entity, from funds that 

3 are made available under that title, for 100 per4 cent of the cost of the test and data reporting. 

5 ‘‘(B) COSTS.—The costs of a test con6 ducted under this subsection—

7 ‘‘(i) shall include reimbursement for 

8 testing devices and associated supplies ap9 proved for sale by the Food and Drug Ad10 ministration and used in compliance with 

11 section 353 of the Public Health Service 

12 Act (42 U.S.C. 263a); and 

13 ‘‘(ii) shall include reimbursement for 

14 administering the tests and related serv15 ices, as determined appropriate by the 

16 State agency. 

17 ‘‘(3) HEAD START.—This subsection shall apply 

18 to Head Start programs that include coverage, di19 rectly or indirectly, for infants and toddlers under 

20 the age of 3 years.’’. 

21 (b) HEAD START PROGRAMS.—Section 642(b) of the 

22 Head Start Act (42 U.S.C. 9837(b)) is amended—

23 (1) in paragraph (10), by striking ‘‘and’’ at the 

24 end; 
119

•HR 936 IH 

1 (2) in paragraph (11), by striking the period at 

2 the end and inserting ‘‘; and’’; and 

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

4 ‘‘(12) with respect to an agency that elects to 

5 carry out a program under section 645(h), comply 

6 with the requirements of such section 645A(h) in the

7 case of each child eligible to participate in the Head 

8 Start program to be carried out by the agency.’’. 

9 (c) PAYMENTS FOR SCREENING AND TREATMENT

10 PROVIDED TO CHILDREN ELIGIBLE UNDER MEDICAID OR

11 SCHIP.—

12 (1) MEDICAID.—Section 1903(c) of the Social 

13 Security Act (42 U.S.C. 1396b(c)) is amended—

14 (A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 

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

16 ‘‘(2) Nothing in this title or any other provision of 

17 law, including the payment limitation commonly known as 

18 the ‘free care rule’, shall be construed as prohibiting or 

19 restricting, or authorizing the Secretary to prohibit or re20 strict, payment under subsection (a) for medical assist21 ance for covered services furnished to a child who is eligi22 ble for or receiving medical assistance under the State 

23 plan and who receives an asthma, vision, hearing, or other 

24 health screening test, or is provided treatment, education 

25 in disease management, corrective eyewear, or hearing 
120

•HR 936 IH 

1 aids, through a public elementary or secondary school, 

2 whether directly or indirectly, and regardless of whether 

3 the school participates in a program established under 

4 subsection (a) or (b) of section 320B of the Public Health 

5 Service Act.’’. 

6 (2) SCHIP.—Section 2105 of the Social Secu7 rity Act (42 U.S.C. 1397ee) is amended by adding 

8 at the end the following: 

9 ‘‘(g) REQUIRED PAYMENT FOR CERTAIN SCHOOL10 BASED SERVICES.—Nothing in this title or any other pro11 vision of law (including the payment limitation under title 

12 XIX commonly known as the ‘free care rule’ to the extent, 

13 if any, such limitation applies to the program established 

14 under this title), shall be construed as prohibiting or re15 stricting, or authorizing the Secretary to prohibit or re16 strict, payment under subsection (a) for child health as17 sistance for covered services furnished to a child who is 

18 eligible for or receiving such assistance under the State 

19 plan and who receives an asthma, vision, or hearing 

20 screening test, or other health screening test that is avail21 able to children receiving assistance under the State plan, 

22 or is provided treatment, education in disease manage23 ment, corrective eyewear, or hearing aids through a public 

24 elementary or secondary school, whether directly or indi25 rectly, and regardless of whether the school participates 
121

•HR 936 IH 

1 in a program established under subsection (a) or (b) of 

2 section 320B of the Public Health Service Act.’’. 

3 SEC. 1303. ASTHMA, VISION, AND HEARING SCREENING AND 

4 TREATMENT FOR CHILDREN ENROLLED IN 

5 PUBLIC SCHOOLS. 

6 Part B of title III of the Public Health Service Act 

7 (42 U.S.C. 243 et seq.) is amended by adding at the end 

8 the following: 

9 ‘‘SEC. 320B. ASTHMA, VISION, AND HEARING SCREENING 

10 AND TREATMENT FOR CHILDREN ENROLLED 

11 IN PUBLIC SCHOOLS. 

12 ‘‘(a) ASTHMA SCREENING AND CASE MANAGEMENT

13 PROGRAM.—

14 ‘‘(1) IN GENERAL.—The Secretary, in collabo15 ration with the Secretary of Education, shall carry 

16 out an asthma screening and case management pro17 gram under which local educational agencies shall be 

18 reimbursed for the provision of asthma screening 

19 and case management to children enrolled in public 

20 elementary schools and secondary schools located in 

21 areas with respect to which there is a high incidence 

22 of childhood asthma. 

23 ‘‘(2) PROGRAM ELEMENTS.—Under the pro24 gram, a local educational agency shall—
122

•HR 936 IH 

1 ‘‘(A) determine whether a child enrolled in 

2 a school described in paragraph (1) has received 

3 an asthma screening test using a test that is 

4 appropriate for age and risk factors on the en5 rollment of the child in the school; 

6 ‘‘(B) in the case of a child who has not re7 ceived an asthma screening test, ensure that 

8 the child receives such a test either by referral 

9 or by performing the test (under contract or 

10 otherwise); and 

11 ‘‘(C) in the case of a child determined to 

12 have asthma, provide treatment or refer the 

13 child for treatment (including case manage14 ment) and education in the management of 

15 asthma.

16 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—

17 There is authorized to be appropriated to carry out 

18 this subsection with respect to a child, and any data 

19 reporting with respect to the child, who is not eligi20 ble for coverage under title XIX or XXI of the So21 cial Security Act, or is not otherwise covered under 

22 a health insurance plan, $10,000,000 for each fiscal 

23 year. 

24 ‘‘(b) VISION AND HEARING SCREENING PROGRAM.—
123

•HR 936 IH 

1 ‘‘(1) IN GENERAL.—The Secretary shall carry 

2 out a vision and hearing screening program under 

3 which local educational agencies shall be reimbursed 

4 for the provision of vision and hearing screening and 

5 corrective eyewear and hearing aids to children en6 rolled in public elementary schools and secondary 

7 schools. 

8 ‘‘(2) PROGRAM ELEMENTS.—Under the pro9 gram, a local educational agency shall—

10 ‘‘(A) elect to provide vision and hearing 

11 screening tests—

12 ‘‘(i) to all children enrolled in a school 

13 who are most likely to suffer from vision or 

14 hearing loss; or 

15 ‘‘(ii) to all children enrolled in a 

16 school; 

17 ‘‘(B) ensure that the category of children 

18 elected under subparagraph (A) receive such 

19 tests, either by referral or by performing the 

20 test (under contract or otherwise), that are ap21 propriate for the age and risk factors of the 

22 children, based on the enrollment of the chil23 dren in the school; and 

24 ‘‘(C) in the case of any child determined to 

25 have a vision or hearing impairment, provide 
124

•HR 936 IH 

1 the child with such eyewear and hearing aids as 

2 are appropriate to correct the child’s vision or 

3 hearing, to the extent that such correction is 

4 feasible. 

5 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—

6 There is authorized to be appropriated to carry out 

7 this subsection with respect to a child, and any data 

8 reporting with respect to the child, who is not eligi9 ble for coverage under title XIX or XXI of the So10 cial Security Act, or is not otherwise covered under 

11 a health insurance plan, $10,000,000 for each fiscal 

12 year. 

13 ‘‘(c) REIMBURSEMENT.—

14 ‘‘(1) CHILDREN ENROLLED IN OR ELIGIBLE

15 FOR MEDICAID.—

16 ‘‘(A) IN GENERAL.—With respect to a 

17 child who is eligible for or receiving medical as18 sistance under a State plan under title XIX of 

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

20 seq.) and who receives, or is provided, a test, 

21 treatment, education, corrective eyewear, or 

22 hearing aid under a program established under 

23 subsection (a) or (b), the Secretary, notwith24 standing any other provision of, or limitation 

25 under, such title XIX, including the payment 
125

•HR 936 IH 

1 limitation commonly known as the ‘free care 

2 rule’, shall reimburse the local educational 

3 agency administering such program from funds 

4 that are made available under such title XIX 

5 for 100 percent of the cost of the performance, 

6 arrangement, or provision and data reporting. 

7 ‘‘(B) COSTS.—The costs of a test con8 ducted under this section shall include reim9 bursement for—

10 ‘‘(i) testing devices and associated 

11 supplies approved for sale by the Food and 

12 Drug Administration and used in compli13 ance with section 353; and 

14 ‘‘(ii) administering the tests and re15 lated services, as determined appropriate 

16 by the State agency responsible for the ad17 ministration of title XIX of the Social Se18 curity Act (42 U.S.C. 1396 et seq.). 

19 ‘‘(2) CHILDREN ENROLLED IN OR ELIGIBLE

20 FOR SCHIP.—

21 ‘‘(A) IN GENERAL.—With respect to a 

22 child who is eligible for or receiving child health 

23 assistance under a State plan under title XXI 

24 of the Social Security Act (42 U.S.C. 1397aa et 

25 seq.) and who receives, or is provided, a test, 
126

•HR 936 IH 

1 treatment, education, corrective eyewear, or 

2 hearing aid under a program established under 

3 subsection (a) or (b), the Secretary, notwith4 standing any other provision of, or limitation 

5 under, such title XXI, or any other provision of 

6 law (including the payment limitation under 

7 title XIX commonly known as the ‘free care 

8 rule’ to the extent, if any, such limitation ap9 plies to the State children’s health insurance 

10 program established under title XXI of that 

11 Act), shall reimburse the local educational agen12 cy administering such program from funds that 

13 are made available under such title XXI for 

14 100 percent of the cost of the performance, ar15 rangement, or provision and data reporting. 

16 ‘‘(B) COSTS.—The costs shall include the 

17 costs described in paragraph (1)(B). 

18 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec19 tion shall be construed to require that a local educational 

20 agency participate in a program carried out by the Sec21 retary under this section. 

22 ‘‘(e) DEFINITIONS.—In this section, the terms ‘local 

23 educational agency’, ‘elementary school’, and ‘secondary 

24 school’ have the meanings given such terms in section 
127

•HR 936 IH 

1 9101 of the Elementary and Secondary Education Act of 

2 1965 (20 U.S.C. 7801).’’. 

3 SEC. 1304. GENERAL EFFECTIVE DATE. 

4 (a) IN GENERAL.—Except as provided in subsection 

5 (b), the amendments made by this chapter take effect on 

6 the date that is 18 months after the date of enactment 

7 of this Act. 

8 (b) HEAD START WAIVERS.—

9 (1) IN GENERAL.—An entity carrying out ac10 tivities under section 642 or 645A of the Head Start 

11 Act (42 U.S.C. 9837, 9840a), may be awarded a 

12 waiver from the amendments made by section 1302 

13 if the State where the entity is located establishes to 

14 the satisfaction of the Secretary of Health and 

15 Human Services, in accordance with requirements 

16 and procedures recommended in accordance with 

17 paragraph (2) to the Secretary by the Director of 

18 the Centers for Disease Control and Prevention a 

19 plan for increasing the number of asthma, vision, 

20 and hearing screening tests of children enrolled in 

21 the Early Head Start and Head Start programs in 

22 the State. 

23 (2) DEVELOPMENT OF WAIVER PROCEDURES

24 AND REQUIREMENTS.—Not later than 1 year after 

25 the date of enactment of this Act, the Director of 
128

•HR 936 IH 

1 the Centers for Disease Control and Prevention shall 

2 develop and recommend to the Secretary of Health 

3 and Human Services criteria and procedures (includ4 ing a timetable for the submission of the State plan 

5 described in paragraph (1)) for the awarding of 

6 waivers under that paragraph. 

7 CHAPTER 2—INCREASE IN FUNDING FOR 

8 HUD PROGRAMS 

9 SEC. 1311. LEAD-BASED PAINT HAZARD CONTROL GRANTS. 

10 Section 1011(p) of the Residential Lead-Based Paint 

11 Hazard Reduction Act of 1992 (42 U.S.C. 4852) is 

12 amended by striking ‘‘appropriated’’ and all that follows 

13 through the period and inserting ‘‘appropriated—

14 ‘‘(1) $125,000,000 for fiscal year 1993 and 

15 $250,000,000 for fiscal year 1994; 

16 ‘‘(2) $200,000,000 for fiscal year 2004; 

17 ‘‘(3) $250,000,000 for fiscal year 2005; and 

18 ‘‘(4) $300,000,000 beginning with fiscal year 

19 2006 and fiscal years thereafter.’’. 

20 SEC. 1312. HEALTHY HOMES INITIATIVE PROGRAM. 

21 There are authorized to be appropriated for the 

22 Healthy Homes Initiative program established under sec23 tions 501 and 502 of the Housing and Urban Develop24 ment Act of 1970 (12 U.S.C. 1701z–1; 1701z–2), for 

25 which funds were provided under title II of the Depart-
129

•HR 936 IH 

1 ments of Veterans Affairs and Housing and Urban Devel2 opment, Independent Agencies Appropriations Act, 

3 2000—

4 (1) $100,000,000 for fiscal year 2004; and

5 (2) $150,000,000 beginning with fiscal year 

6 2005 and fiscal years thereafter. 

7 CHAPTER 3—YOUTH SMOKING CESSATION 

8 AND EDUCATION 

9 SEC. 1321. SHORT TITLE. 

10 This chapter may be cited as the ‘‘Kids Deserve Free11 dom from Tobacco Act of 2003’’ or the ‘‘KIDS Act’’. 

12 Subchapter A—Protection of Children from 

13 Tobacco 

14 PART I—FOOD AND DRUG ADMINISTRATION 

15 JURISDICTION AND GENERAL AUTHORITY 

16 SEC. 1331. REFERENCE. 

17 Whenever in this subchapter an amendment or repeal 

18 is expressed in terms of an amendment to, or repeal of, 

19 a section or other provision, the reference shall be consid20 ered to be made to a section or other provision of the Fed21 eral Food, Drug, and Cosmetic Act (21 U.S.C. 301 et 

22 seq.). 

23 SEC. 1332. STATEMENT OF GENERAL AUTHORITY. 

24 The regulations promulgated by the Secretary in the 

25 rule dated August 28, 1996 (Vol. 61, No. 168 C.F.R.), 
130

•HR 936 IH 

1 adding part 897 to title 21, Code of Federal Regulations, 

2 shall be deemed to have been lawfully promulgated under 

3 the Food, Drug, and Cosmetic Act as amended by this 

4 subchapter. Such regulations shall apply to all tobacco 

5 products. 

6 SEC. 1333. NONAPPLICABILITY TO OTHER DRUGS OR DE7 VICES. 

8 Nothing in this subchapter, or an amendment made 

9 by this subchapter, shall be construed to affect the regula10 tion of drugs and devices that are not tobacco products 

11 by the Secretary under the Federal Food, Drug, and Cos12 metic Act. 

13 SEC. 1334. CONFORMING AMENDMENTS TO CONFIRM JU14 RISDICTION. 

15 (a) DEFINITIONS.—

16 (1) DRUG.—Section 201(g)(1) (21 U.S.C. 

17 321(g)(1)) is amended by striking ‘‘; and (D)’’ and 

18 inserting ‘‘; (D) nicotine in tobacco products; and 

19 (E)’’. 

20 (2) DEVICES.—Section 201(h) (21 U.S.C. 

21 321(h)) is amended by adding at the end the fol22 lowing: ‘‘Such term includes a tobacco product.’’. 

23 (3) OTHER DEFINITIONS.—Section 201 (21 

24 U.S.C. 321) is amended by adding at the end the 

25 following: 
131

•HR 936 IH 

1 ‘‘(nn) The term ‘tobacco product’ means any 

2 product made or derived from tobacco that is in3 tended for human consumption.’’. 

4 (b) PROHIBITED ACTS.—Section 301 (21 U.S.C. 

5 331) is amended by adding at the end the following: 

6 ‘‘(hh) The manufacture, labeling, distribution, adver7 tising and sale of any adulterated or misbranded tobacco 

8 product in violation of—

9 ‘‘(1) regulations issued under this Act; or 

10 ‘‘(2) the KIDS Act, or regulations issued under 

11 such Act.’’. 

12 (c) ADULTERATED DRUGS AND DEVICES.—

13 (1) IN GENERAL.—Section 501 of the Federal 

14 Food, Drug, and Cosmetic Act (21 U.S.C. 351) is 

15 amended by adding at the end the following: 

16 ‘‘(j) If it is a tobacco product and it does not comply 

17 with the provisions of subchapter D of this chapter or the 

18 KIDS Act.’’. 

19 (2) MISBRANDING.—Section 502(q) (21 U.S.C. 

20 352(q)) is amended—

21 (A) by striking ‘‘or (2)’’ and inserting in 

22 lieu thereof ‘‘(2)’’; and 

23 (B) by inserting before the period the fol24 lowing: ‘‘, or (3) in the case of a tobacco prod25 uct, it is sold, distributed, advertised, labeled, 
132

•HR 936 IH 

1 or used in violation of this Act or the KIDS 

2 Act, or regulations prescribed under such 

3 Acts’’. 

4 (d) RESTRICTED DEVICE.—Section 520(e) (21 

5 U.S.C. 360j(e)) is amended—

6 (1) in paragraph (1), by striking ‘‘or use—’’ 

7 and inserting ‘‘or use, including restrictions on the 

8 access to, and the advertising and promotion of, to9 bacco products—’’; and 

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

11 ‘‘(3) Tobacco products are a restricted device under 

12 this paragraph.’’.

13 (e) REGULATORY AUTHORITY.—Section 503(g) (21 

14 U.S.C. 353(g)) is amended by adding at the end the fol15 lowing: 

16 ‘‘(6) The Secretary may regulate any tobacco product 

17 as a drug, device, or both, and may designate the office 

18 of the Administration that shall be responsible for regu19 lating such products.’’. 

20 SEC. 1335. GENERAL RULE. 

21 Section 513(a)(1)(B) (21 U.S.C. 360c(a)(1)(B)) is 

22 amended by adding at the end the following: ‘‘The sale 

23 of tobacco products to adults that comply with perform24 ance standards established for these products under sec25 tion 514 and other provisions of this Act and any regula-
133

•HR 936 IH 

1 tions prescribed under this Act shall not be prohibited by 

2 the Secretary, notwithstanding sections 502(j), 516, and 

3 518.’’. 

4 SEC. 1336. SAFETY AND EFFICACY STANDARD AND RECALL 

5 AUTHORITY. 

6 (a) SAFETY AND EFFICACY STANDARD.—Section 

7 513(a) (21 U.S.C. 360c(a)) is amended—

8 (1) in paragraph (1)(B), by inserting after the 

9 first sentence the following: ‘‘For a device which is 

10 a tobacco product, the assurance in the previous sen11 tence need not be found if the Secretary finds that 

12 special controls achieve the best public health re13 sult.’’; and 

14 (2) in paragraph (2)—

15 (A) by redesignating subparagraphs (A), 

16 (B) and (C) as clauses (i), (ii) and (iii), respec17 tively; 

18 (B) by striking ‘‘(2) For’’ and inserting 

19 ‘‘(2)(A) For’’; and 

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

21 ‘‘(B) For purposes of paragraph (1)(B), subsections 

22 (c)(2)(C), (d)(2)(B), (e)(2)(A), (f)(3)(B)(i), and 

23 (f)(3)(C)(i), and sections 514, 519(a), 520(e), and 520(f), 

24 the safety and effectiveness of a device that is a tobacco 

25 product need not be found if the Secretary finds that the 
134

•HR 936 IH 

1 action to be taken under any such provision would achieve 

2 the best public health result. The finding as to whether 

3 the best public health result has been achieved shall be 

4 determined with respect to the risks and benefits to the

5 population as a whole, including users and non-users of 

6 the tobacco product, and taking into account—

7 ‘‘(i) the increased or decreased likelihood that 

8 existing consumers of tobacco products will stop 

9 using such products; and 

10 ‘‘(ii) the increased or decreased likelihood that 

11 those who do not use tobacco products will start 

12 using such products.’’. 

13 (b) RECALL AUTHORITY.—Section 518(e)(1) (21 

14 U.S.C. 360h(e)(1)) is amended by inserting after ‘‘adverse 

15 health consequences or death,’’ the following: ‘‘and for to16 bacco products that the best public health result would 

17 be achieved,’’. 

18 PART II—REGULATION OF TOBACCO PRODUCTS 

19 SEC. 1341. PERFORMANCE STANDARDS. 

20 Section 514(a) (21 U.S.C. 60d(a)) is amended—

21 (1) in paragraph (2), by striking ‘‘device’’ and 

22 inserting ‘‘nontobacco product device’’; 

23 (2) by redesignating paragraphs (3) and (4) as 

24 paragraphs (5) and (6), respectively; and 
135

•HR 936 IH 

1 (3) by inserting after paragraph (2) the fol2 lowing: 

3 ‘‘(3) The Secretary may adopt a performance stand4 ard under section 514(a)(2) for a tobacco product regard5 less of whether the product has been classified under sec6 tion 513. Such standard may—

7 ‘‘(A) include provisions to achieve the best pub8 lic health result; 

9 ‘‘(B) where necessary to achieve the best public 

10 health result, include—

11 ‘‘(i) provisions respecting the construction, 

12 components, constituents, ingredients, and 

13 properties of the tobacco product device, includ14 ing the reduction or elimination (or both) of 

15 nicotine and the other components, ingredients, 

16 and constituents of the tobacco product, its 

17 components and its by-products, based upon the 

18 best available technology; 

19 ‘‘(ii) provisions for the testing (on a sam20 ple basis or, if necessary, on an individual 

21 basis) of the tobacco product device or, if it is 

22 determined that no other more practicable 

23 means are available to the Secretary to assure 

24 the conformity of the tobacco product device to 

25 such standard, provisions for the testing (on a 
136

•HR 936 IH 

1 sample basis or, if necessary, on an individual 

2 basis) by the Secretary or by another person at 

3 the direction of the Secretary; 

4 ‘‘(iii) provisions for the measurement of 

5 the performance characteristics of the tobacco 

6 product device; 

7 ‘‘(iv) provisions requiring that the results 

8 of each test or of certain tests of the tobacco 

9 product device required to be made under 

10 clause (ii) demonstrate that the tobacco product 

11 device is in conformity with the portions of the 

12 standard for which the test or tests were re13 quired; and 

14 ‘‘(v) a provision that the sale and distribu15 tion of the tobacco product device be restricted 

16 but only to the extent that the sale and dis17 tribution of a tobacco product device may other18 wise be restricted under this Act; and 

19 ‘‘(C) where appropriate, require the use and 

20 prescribe the form and content of labeling for the 

21 use of the tobacco product device. 

22 ‘‘(4) Not later than 1 year after the date of enact23 ment of the KIDS Act, the Secretary (acting through the 

24 Commissioner of Food and Drugs) shall establish a Sci25 entific Advisory Committee to evaluate whether a level or 
137

•HR 936 IH 

1 range of levels exists at which nicotine yields do not 

2 produce drug-dependence. The Advisory Committee shall 

3 also review any other safety, dependence or health issue 

4 assigned to it by the Secretary. The Secretary need not 

5 promulgate regulations to establish the Committee.’’.

6 SEC. 1342. APPLICATION OF FEDERAL FOOD, DRUG, AND 

7 COSMETIC ACT TO TOBACCO PRODUCTS. 

8 (a) TOBACCO PRODUCTS REGULATION.—Chapter V 

9 (21 U.S.C. 351 et seq.) is amended by adding at the end 

10 the following: 

11 ‘‘SUBCHAPTER F—TOBACCO PRODUCT DEVEL12 OPMENT, MANUFACTURING, AND ACCESS 

13 RESTRICTIONS 

14 ‘‘SEC. 570. PROMULGATION OF REGULATIONS. 

15 ‘‘Any regulations necessary to implement this sub16 chapter shall be promulgated not later than 12 months 

17 after the date of enactment of this subchapter using notice 

18 and comment rulemaking (in accordance with chapter 5 

19 of title 5, United States Code). Such regulations may be 

20 revised thereafter as determined necessary by the Sec21 retary. 

22 ‘‘SEC. 571. MAIL-ORDER SALES. 

23 ‘‘(a) IN GENERAL.—Not later than 2 years after the 

24 date of enactment of this subchapter, the Secretary shall 

25 review and determine whether persons under the age of 
138

•HR 936 IH 

1 18 years are obtaining tobacco products by means of the 

2 mail.

3 ‘‘(b) RESTRICTIONS.—Based solely upon the review 

4 conducted under subsection (a), the Secretary may take 

5 regulatory and administrative action to restrict or elimi6 nate mail order sales of tobacco products. 

7 ‘‘SEC. 572. IMPLEMENTATION OF THE PROPOSED RESOLU8 TION. 

9 ‘‘(a) ADDITIONAL RESTRICTIONS ON MARKETING, 

10 ADVERTISING, AND ACCESS.—Not later than 18 months 

11 after the date of the enactment of this subchapter, the 

12 Secretary shall revise the regulations related to tobacco 

13 products promulgated by the Secretary on August 28, 

14 1996 (61 Fed. Reg. 44396) to include the additional re15 strictions on marketing, advertising, and access described 

16 in Title IA and Title IC of the Proposed Resolution en17 tered into by the tobacco manufacturers and the State at18 torneys general on June 20, 1997, except that the Sec19 retary shall not include an additional restriction on mar20 keting or advertising in such regulations if its inclusion 

21 would violate the First Amendment to the Constitution. 

22 ‘‘(b) WARNINGS.—Not later than 18 months after the 

23 date of the enactment of this subchapter, the Secretary 

24 shall promulgate regulations to require warnings on ciga25 rette and smokeless tobacco labeling and advertisements. 
139

•HR 936 IH 

1 The content, format, and rotation of warnings shall con2 form to the specifications described in Title IB of the Pro3 posed Resolution entered into by the tobacco manufactur4 ers and the State attorneys general on June 20, 1997. 

5 ‘‘(c) RULES OF CONSTRUCTION.—

6 ‘‘(1) IN GENERAL.—Nothing in this section 

7 shall be construed to limit the ability of the Sec8 retary to change the text or layout of any of the 

9 warning statements, or any of the labeling provi10 sions, under the regulations promulgated under sub11 section (b) and other provisions of this Act, if deter12 mined necessary by the Secretary in order to make 

13 such statements or labels larger, more prominent, 

14 more conspicuous, or more effective. 

15 ‘‘(2) UNFAIR ACTS.—Nothing in this section 

16 (other than the requirements of subsections (a) and 

17 (b)) shall be construed to limit or restrict the au18 thority of the Federal Trade Commission with re19 spect to unfair or deceptive acts or practices in the 

20 advertising of tobacco products. 

21 ‘‘(d) LIMITED PREEMPTION.—

22 ‘‘(1) STATE AND LOCAL ACTION.—No warning 

23 label with respect to tobacco products, or any other 

24 tobacco product for which warning labels have been 

25 required under this section, other than the warning 
140

•HR 936 IH 

1 labels required under this Act, shall be required by 

2 any State or local statute or regulation to be in3 cluded on any package of a tobacco product. 

4 ‘‘(2) EFFECT ON LIABILITY LAW.—Nothing in 

5 this section shall relieve any person from liability at 

6 common law or under State statutory law to any 

7 other person. 

8 ‘‘(e) VIOLATION OF SECTION.—Any tobacco product 

9 that is in violation of this section shall be deemed to be 

10 misbranded. 

11 ‘‘SEC. 573. GENERAL RESPONSIBILITIES OF MANUFACTUR12 ERS, DISTRIBUTORS AND RETAILERS. 

13 ‘‘Each manufacturer, distributor, and retailer shall 

14 ensure that the tobacco products it manufactures, labels, 

15 advertises, packages, distributes, sells, or otherwise holds 

16 for sale comply with all applicable requirements of this 

17 Act. 

18 ‘‘SEC. 574. DISCLOSURE AND REPORTING OF TOBACCO AND 

19 NONTOBACCO INGREDIENTS AND CONSTITU20 ENTS. 

21 ‘‘(a) DISCLOSURE OF ALL INGREDIENTS.—

22 ‘‘(1) IMMEDIATE AND ANNUAL DISCLOSURE.—

23 Not later than 30 days after the date of enactment 

24 of this subchapter, and annually thereafter, each 

25 manufacturer of a tobacco product shall submit to 
141

•HR 936 IH 

1 the Secretary an ingredient list for each brand of to2 bacco product it manufactures that contains the in3 formation described in paragraph (2). 

4 ‘‘(2) REQUIREMENTS.—The list described in 

5 paragraph (1) shall, with respect to each brand or 

6 variety of tobacco product of a manufacturer, in7 clude—

8 ‘‘(A) a list of all ingredients, constituents, 

9 substances, and compounds that are found in or 

10 added to the tobacco or tobacco product (in11 cluding the paper, filter, or packaging of the 

12 product if applicable) in the manufacture of the 

13 tobacco product, for each brand or variety of to14 bacco product so manufactured, including, if 

15 determined necessary by the Secretary, any ma16 terial added to the tobacco used in the product 

17 prior to harvesting; 

18 ‘‘(B) the quantity of the ingredients, con19 stituents, substances, and compounds that are 

20 listed under subparagraph (A) in each brand or 

21 variety of tobacco product; 

22 ‘‘(C) the nicotine content of the product, 

23 measured in milligrams of nicotine; 

24 ‘‘(D) for each brand or variety of ciga25 rettes—
142

•HR 936 IH 

1 ‘‘(i) the filter ventilation percentage 

2 (the level of air dilution in the cigarette as 

3 provided by the ventilation holes in the fil4 ter, described as a percentage); 

5 ‘‘(ii) the pH level of the smoke of the 

6 cigarette; and

7 ‘‘(iii) the tar, unionized (free) nico8 tine, and carbon monoxide delivery level 

9 and any other smoking conditions estab10 lished by the Secretary, reported in milli11 grams of tar, nicotine, and carbon mon12 oxide per cigarette; 

13 ‘‘(E) for each brand or variety of smoke14 less tobacco products— 

15 ‘‘(i) the pH level of the tobacco; 

16 ‘‘(ii) the moisture content of the to17 bacco expressed as a percentage of the 

18 weight of the tobacco; and 

19 ‘‘(iii) the nicotine content—

20 ‘‘(I) for each gram of the prod21 uct, measured in milligrams of nico22 tine; 

23 ‘‘(II) expressed as a percentage 

24 of the dry weight of the tobacco; and
143

•HR 936 IH 

1 ‘‘(III) with respect to unionized 

2 (free) nicotine, expressed as a percent3 age per gram of the tobacco and ex4 pressed in milligrams per gram of the 

5 tobacco; and 

6 ‘‘(F) any other information determined ap7 propriate by the Secretary. 

8 ‘‘(3) METHODS.—The Secretary shall have the 

9 authority to promulgate regulations to establish the 

10 methods to be used by manufacturers in making the 

11 determinations required under paragraph (2). 

12 ‘‘(4) OTHER TOBACCO PRODUCTS.—The Sec13 retary shall prescribe such regulations as may be 

14 necessary to establish information disclosure proce15 dures for other tobacco products. 

16 ‘‘(b) SAFETY ASSESSMENTS.—

17 ‘‘(1) APPLICATION TO NEW INGREDIENTS.—

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

19 after the date of enactment of this subchapter, 

20 and annually thereafter, each manufacturer 

21 shall submit to the Secretary a safety assess22 ment for each new ingredient, constituent, sub23 stance, or compound that such manufacturer 

24 desires to make a part of a tobacco product. 

25 Such new ingredient, constituent, substance, or 
144

•HR 936 IH 

1 compound shall not be included in a tobacco 

2 product prior to approval by the Secretary of 

3 such a safety assessment. 

4 ‘‘(B) METHOD OF FILING.—A safety as5 sessment submitted under subparagraph (A) 

6 shall be signed by an officer of the manufac7 turer who is acting on behalf of the manufac8 turer and who has the authority to bind the 

9 manufacturer, and contain a statement that en10 sures that the information contained in the as11 sessment is true, complete and accurate. 

12 ‘‘(C) DEFINITION OF NEW INGREDIENT.—

13 For purposes of subparagraph (A), the term 

14 ‘new ingredient, constituent, substance, or com15 pound’ means an ingredient, constituent, sub16 stance, or compound listed under subsection 

17 (a)(1) that was not used in the brand or variety 

18 of tobacco product involved prior to January 1, 

19 1998. 

20 ‘‘(2) APPLICATION TO OTHER INGREDIENTS.—

21 With respect to the application of this section to in22 gredients, constituents substances, or compounds 

23 listed under subsection (a) to which paragraph (1) 

24 does not apply, all such ingredients, constituents, 

25 substances, or compounds shall be reviewed through 
145

•HR 936 IH 

1 the safety assessment process within the 5-year pe2 riod beginning on the date of enactment of this sub3 chapter. The Secretary shall develop a procedure for 

4 the submission of safety assessments of such ingre5 dients, constituents, substances, or compounds that 

6 staggers such safety assessments within the 5-year 

7 period. 

8 ‘‘(3) BASIS OF ASSESSMENT.—The safety as9 sessment of an ingredient, constituent, substance, or 

10 compound described in paragraphs (1) and (2) 

11 shall—

12 ‘‘(A) be based on the best scientific evi13 dence available at the time of the submission of 

14 the assessment; and

15 ‘‘(B) demonstrate that there is a reason16 able certainty among experts qualified by sci17 entific training and experience who are con18 sulted, that the ingredient, constituent, sub19 stance, or compound will not present any risk 

20 to consumers or the public in the quantities 

21 used under the intended conditions of use. 

22 ‘‘(c) PROHIBITION.—

23 ‘‘(1) REGULATIONS.—Not later than 12 months 

24 after the date of enactment of this subchapter, the 

25 Secretary shall promulgate regulations to prohibit 
146

•HR 936 IH 

1 the use of any ingredient, constituent, substance, or 

2 compound in the tobacco product of a manufac3 turer—

4 ‘‘(A) if no safety assessment has been sub5 mitted by the manufacturer for the ingredient, 

6 constituent, substance, or compound as other7 wise required under this section; or

8 ‘‘(B) if the Secretary finds that the manu9 facturer has failed to demonstrate the safety of 

10 the ingredient, constituent, substance, or com11 pound that was the subject of the assessment 

12 under paragraph (2). 

13 ‘‘(2) REVIEW OF ASSESSMENTS.—

14 ‘‘(A) GENERAL REVIEW.—Not later than 

15 180 days after the receipt of a safety assess16 ment under subsection (b), the Secretary shall 

17 review the findings contained in such assess18 ment and approve or disapprove of the safety of 

19 the ingredient, constituent, substance, or com20 pound that was the subject of the assessment. 

21 The Secretary may, for good cause, extend the 

22 period for such review. The Secretary shall pro23 vide notice to the manufacturer of an action 

24 under this subparagraph. 
147

•HR 936 IH 

1 ‘‘(B) INACTION BY SECRETARY.—If the 

2 Secretary fails to act with respect to an assess3 ment of an existing ingredient, constituent, sub4 stance, or additive during the period referred to 

5 in subparagraph (A), the manufacturer of the 

6 tobacco product involved may continue to use 

7 the ingredient, constituent, substance, or com8 pound involved until such time as the Secretary 

9 makes a determination with respect to the as10 sessment. 

11 ‘‘(d) RIGHT TO KNOW; FULL DISCLOSURE OF IN12 GREDIENTS TO THE PUBLIC.—

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (3), a package of a tobacco product shall dis15 close all ingredients, constituents, substances, or 

16 compounds contained in the product in accordance 

17 with regulations promulgated under section 701(a) 

18 by the Secretary. 

19 ‘‘(2) DISCLOSURE OF PERCENTAGE OF DOMES20 TIC AND FOREIGN TOBACCO.—The regulations re21 ferred to in paragraph (1) shall require that the 

22 package of a tobacco product disclose, with respect 

23 to the tobacco contained in the product—

24 ‘‘(A) the percentage that is domestic to25 bacco; and
148

•HR 936 IH 

1 ‘‘(B) the percentage that is foreign to2 bacco. 

3 ‘‘(3) HEALTH DISCLOSURE.—Notwithstanding 

4 section 301(j), the Secretary may require the public 

5 disclosure of any ingredient, constituent, substance, 

6 or compound contained in a tobacco product that re7 lates to a trade secret or other matter referred to in 

8 section 1905 of title 18, United States Code, if the 

9 Secretary determines that such disclosure will pro10 mote the public health. 

11 ‘‘SEC. 575. REDUCED RISK PRODUCTS. 

12 ‘‘(a) PROHIBITION.—

13 ‘‘(1) IN GENERAL.—No manufacturer, dis14 tributor or retailer of tobacco products may make 

15 any direct or implied statement in advertising or on 

16 a product package that could reasonably be inter17 preted to state or imply a reduced health risk associ18 ated with a tobacco product unless the manufacturer 

19 demonstrates to the Secretary, in such form as the 

20 Secretary may require, that based on the best avail21 able scientific evidence the product significantly re22 duces the overall health risk to the public when com23 pared to other tobacco products. 

24 ‘‘(2) SUBMISSION TO SECRETARY.—Prior to 

25 making any statement described in paragraph (1), a 
149

•HR 936 IH 

1 manufacturer, distributor or retailer shall submit 

2 such statement to the Secretary, who shall review 

3 such statement to ensure its accuracy and, in the 

4 case of advertising, to prevent such statement from 

5 increasing, or preventing the contraction of, the size 

6 of the overall market for tobacco products. 

7 ‘‘(b) DETERMINATION BY SECRETARY.—If the Sec8 retary determines that a statement described in subsection 

9 (a)(2) is permissible because the tobacco product does 

10 present a significantly reduced overall health risk to the 

11 public, the Secretary may permit such statement to be 

12 made. 

13 ‘‘(c) DEVELOPMENT OR ACQUISITION OF REDUCED

14 RISK TECHNOLOGY.—

15 ‘‘(1) IN GENERAL.—Any manufacturer that de16 velops or acquires any technology that the manufac17 turer reasonably believes will reduce the risk from 

18 tobacco products shall notify the Secretary of the de19 velopment or acquisition of the technology. Such no20 tice shall be in such form and within such time as 

21 the Secretary shall require. 

22 ‘‘(2) CONFIDENTIALITY.—With respect to any 

23 technology described in paragraph (1) that is in the 

24 early stages of development (as determined by the 

25 Secretary), the Secretary shall establish protections 
150

•HR 936 IH 

1 to ensure the confidentiality of any proprietary in2 formation submitted to the Secretary under this sub3 section during such development. 

4 ‘‘SEC. 576. ACCESS TO COMPANY INFORMATION. 

5 ‘‘(a) COMPLIANCE PROCEDURES.—Each manufac6 turer of tobacco products shall establish procedures to en7 sure compliance with this Act. 

8 ‘‘(b) REQUIREMENT.—In addition to any other dis9 closure obligations under this Act, the KIDS Act, or any 

10 other law, each manufacturer of tobacco products shall, 

11 not later than 90 days after the date of the enactment 

12 of the KIDS Act and thereafter as required by the Sec13 retary, disclose to the Secretary all nonpublic information 

14 and research in its possession or control relating to the 

15 addiction or dependency, or the health or safety of tobacco 

16 products, including (without limitation) all research relat17 ing to processes to make tobacco products less hazardous 

18 to consumers and the research and documents described 

19 in subsection (c). 

20 ‘‘(c) RESEARCH AND DOCUMENTS.—The documents 

21 described in this section include any documents concerning 

22 tobacco product research relating to—

23 ‘‘(1) nicotine, including—

24 ‘‘(A) the interaction between nicotine and 

25 other components in tobacco products including 
151

•HR 936 IH 

1 ingredients in the tobacco and smoke compo2 nents; 

3 ‘‘(B) the role of nicotine in product design 

4 and manufacture, including product charters, 

5 and parameters in product development, the to6 bacco blend, filter technology, and paper;

7 ‘‘(C) the role of nicotine in tobacco leaf 

8 purchasing; 

9 ‘‘(D) reverse engineering activities involv10 ing nicotine (such as analyzing the products of 

11 other companies); 

12 ‘‘(E) an analysis of nicotine delivery; and 

13 ‘‘(F) the biology, psychopharmacology and 

14 any other health effects of nicotine; 

15 ‘‘(2) other ingredients, including—

16 ‘‘(A) the identification of ingredients in to17 bacco products and constituents in smoke, in18 cluding additives used in product components 

19 such as paper, filter, and wrapper; 

20 ‘‘(B) any research on the health effects of 

21 ingredients; and 

22 ‘‘(C) any research or other information ex23 plaining what happens to ingredients when they 

24 are heated and burned; 
152

•HR 936 IH 

1 ‘‘(3) less hazardous or safer products, including 

2 any research or product development information on 

3 activities involving reduced risk, less hazardous, low4 tar or reduced-tar, low-nicotine or reduced-nicotine 

5 or nicotine-free products; and 

6 ‘‘(4) tobacco product advertising, marketing 

7 and promotion, including—

8 ‘‘(A) documents related to the design of 

9 advertising campaigns, including the desired de10 mographics for individual products on the mar11 ket or being tested; 

12 ‘‘(B) documents concerning the age of ini13 tiation of tobacco use, general tobacco use be14 havior, beginning smokers, pre-smokers, and 

15 new smokers; 

16 ‘‘(C) documents concerning the effects of 

17 advertising; and 

18 ‘‘(D) documents concerning future mar19 keting options or plans in light of the require20 ments and regulations to be imposed under this 

21 subchapter or the KIDS Act. 

22 ‘‘(d) AUTHORITY OF SECRETARY.—With respect to 

23 tobacco product manufacturers, the Secretary shall have 

24 the same access to records and information and inspection
153

•HR 936 IH 

1 authority as is available with respect to manufacturers of 

2 other medical devices. 

3 ‘‘SEC. 577. OVERSIGHT OF TOBACCO PRODUCT MANUFAC4 TURING. 

5 ‘‘The Secretary shall by regulation prescribe good 

6 manufacturing practice standards for tobacco products. 

7 Such regulations shall be modeled after good manufac8 turing practice regulations for medical devices, food, and 

9 other items under section 520(f). Such standards shall be 

10 directed specifically toward tobacco products, and shall in11 clude—

12 ‘‘(1) a quality control system, to ensure that to13 bacco products comply with such standards; 

14 ‘‘(2) a system for inspecting tobacco product 

15 materials to ensure their compliance with such 

16 standards; 

17 ‘‘(3) requirements for the proper handling of 

18 finished tobacco products; 

19 ‘‘(4) strict tolerances for pesticide chemical resi20 dues in or on tobacco or tobacco product commod21 ities in the possession of the manufacturer, except 

22 that nothing in this paragraph shall be construed to 

23 affect any authority of the Environmental Protection 

24 Agency; 
154

•HR 936 IH 

1 ‘‘(5) authority for officers or employees of the 

2 Secretary to inspect any factory, warehouse, or other 

3 establishment of any tobacco product manufacturer, 

4 and to have access to records, files, papers, proc5 esses, controls and facilities related to tobacco prod6 uct manufacturing, in accordance with appropriate 

7 authority and rules promulgated under this Act; and 

8 ‘‘(6) a requirement that the tobacco product 

9 manufacturer maintain such files and records as the 

10 Secretary may specify, as well as that the manufac11 turer report to the Secretary such information as 

12 the Secretary shall require, in accordance with sec13 tion 519. 

14 ‘‘SEC. 578. PRESERVATION OF STATE AND LOCAL AUTHOR15 ITY. 

16 ‘‘Notwithstanding section 521 and except as other17 wise provided for in section 572(e), nothing in this sub18 chapter shall be construed as prohibiting a State or local19 ity from imposing requirements, prohibitions, penalties or 

20 other measures to further the purposes of this subchapter 

21 that are in addition to the requirements, prohibitions, or 

22 penalties required under this subchapter. State and local 

23 governments may impose additional tobacco product con24 trol measures to further restrict or limit the use of such 

25 products.’’. 
155

•HR 936 IH 

1 SEC. 1343. FUNDING. 

2 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

3 are authorized to be appropriated such sums as may be 

4 necessary to carry out this part (and the amendments 

5 made by this part). 

6 (b) TRIGGER.—No expenditures shall be made under 

7 this part (or the amendments made by this part) during 

8 any fiscal year in which the annual amount appropriated 

9 for the Food and Drug Administration is less than the 

10 amount so appropriated for the prior fiscal year. 

11 SEC. 1344. REPEALS. 

12 The following provisions of law are repealed: 

13 (1) The Federal Cigarette Labeling and Adver14 tising Act (15 U.S.C. 1331 et seq.), except for sec15 tions 5(d)(1) and (2) and 6. 

16 (2) The Comprehensive Smokeless Tobacco 

17 Health Education Act of 1986 (15 U.S.C. 4401 et 

18 seq.), except for sections 3(f) and 8(a) and (b). 

19 (3) The Comprehensive Smoking Education Act 

20 of 1964 (Public Law 98–474). 

21 Subchapter B—Miscellaneous Provisions 

22 SEC. 1351. NONAPPLICATION TO TOBACCO PRODUCERS. 

23 (a) IN GENERAL.—This chapter and the amendments 

24 made by this chapter shall not apply to the producers of 

25 tobacco leaf, including tobacco growers, tobacco ware26 houses, and tobacco grower cooperatives. 
156

•HR 936 IH 

1 (b) RULE OF CONSTRUCTION.—Nothing in this chap2 ter, or an amendment made by this chapter, shall be con3 strued to provide the Secretary of Health and Human 

4 Services with the authority to—

5 (1) enter onto a farm owned by a producer of 

6 tobacco leaf without the written consent of such pro7 ducer; or 

8 (2) promulgate regulations on any matter that 

9 involves the production of tobacco leaf or a producer 

10 thereof, other than activities by a manufacturer that 

11 affect production. 

12 (c) MANUFACTURER ACTING AS PRODUCER.—Not13 withstanding any other provision of this section, if a pro14 ducer of tobacco leaf is also a tobacco product manufac15 turer or is owned or controlled by a tobacco product manu16 facturer, the producer shall be subject to the provisions 

17 of this chapter, and the amendments made by this chap18 ter, in the producer’s capacity as a manufacturer. 

19 (d) DEFINITION.—In this section, the term ‘‘con20 trolled by’’ means a producer that is a member of the same 

21 controlled group of corporations, as that term is used for 

22 purposes of section 52(a) of the Internal Revenue Code 

23 of 1986, or under common control within the meaning of 

24 the regulations promulgated under section 52(b) of such 

25 Code.
157

•HR 936 IH 

1 SEC. 1352. EQUAL TREATMENT OF RETAIL OUTLETS. 

2 The Secretary of Health and Human Services shall 

3 promulgate regulations to require that retail establish4 ments that are accessible to individuals under the age of 

5 18, for which the predominant business is the sale of to6 bacco products, comply with any advertising restrictions 

7 applicable to such establishments. 

8 CHAPTER 4—COVERAGE OF CHILDHOOD 

9 IMMUNIZATIONS 

10 SEC. 1361. SHORT TITLE. 

11 This chapter be cited as the ‘‘Comprehensive Insur12 ance Coverage of Childhood Immunization Act of 2003’’. 

13 SEC. 1362. AMENDMENTS TO THE EMPLOYEE RETIREMENT 

14 INCOME SECURITY ACT OF 1974. 

15 (a) IN GENERAL.—Subpart B of part 7 of subtitle 

16 B of title I of the Employee Retirement Income Security 

17 Act of 1974 (29 U.S.C. 1185 et seq.), as amended by sec18 tion 1214, is further amended by adding at the end the 

19 following: 

20 ‘‘SEC. 715. STANDARD RELATING TO COVERAGE OF CHILD21 HOOD IMMUNIZATION. 

22 ‘‘(a) IN GENERAL.—A group health plan, and a 

23 health insurance issuer offering health insurance coverage 

24 in connection with a group health plan, shall provide for 

25 each plan year comprehensive coverage for routine immu26 nizations for each individual who is a dependent of a par-
158

•HR 936 IH 

1 ticipant or beneficiary under the plan and is under 19 

2 years of age. 

3 ‘‘(b) COMPREHENSIVE COVERAGE.—For purposes of 

4 this section, comprehensive coverage for routine immuni5 zations for a plan year consists of coverage, without 

6 deductibles, coinsurance, or other cost-sharing, for immu7 nizations (including the vaccine itself) in accordance with 

8 the most recent version of the Recommended Childhood 

9 Immunization Schedule issued prior to such plan year by 

10 the Advisory Committee on Immunization Practices of the 

11 Centers for Disease Control and Prevention.’’. 

12 (b) CONFORMING AMENDMENT.—The table of con13 tents in section 1 of the Employee Retirement Income Se14 curity Act of 1974, as amended by section 1214, is further 

15 amended by inserting after the item relating to section 

16 714 the following new item:

‘‘Sec. 715. Standard relating to coverage of childhood immunization.’’.

17 SEC. 1363. AMENDMENTS TO THE PUBLIC HEALTH SERVICE 

18 ACT. 

19 (a) GROUP MARKET.—Subpart 2 of part A of title 

20 XXVII of the Public Health Service Act (42 U.S.C. 

21 300gg–4 et seq.), as amended by section 1213(b), is fur22 ther amended by adding at the end the following: 
159

•HR 936 IH 

1 ‘‘SEC. 2708. STANDARD RELATING TO COVERAGE OF CHILD2 HOOD IMMUNIZATION. 

3 ‘‘(a) IN GENERAL.—A group health plan, and a 

4 health insurance issuer offering health insurance coverage 

5 in connection with a group health plan, shall provide for 

6 each plan year comprehensive coverage for routine immu7 nizations for each individual who is a dependent of a par8 ticipant or beneficiary under the plan and is under 19 

9 years of age. 

10 ‘‘(b) COMPREHENSIVE COVERAGE.—For purposes of 

11 this section, comprehensive coverage for routine immuni12 zations for a plan year consists of coverage, without 

13 deductibles, coinsurance, or other cost-sharing, for immu14 nizations (including the vaccine itself) in accordance with 

15 the most recent version of the Recommended Childhood 

16 Immunization Schedule issued prior to such plan year by 

17 the Advisory Committee on Immunization Practices of the 

18 Centers for Disease Control and Prevention.’’. 

19 (b) INDIVIDUAL MARKET.—The first subpart 3 of 

20 part B of title XXVII of the Public Health Service Act 

21 (42 U.S.C. 300gg–51 et seq.) (relating to other require22 ments) (42 U.S.C. 300gg–51 et seq.) is amended—

23 (1) by redesignating such subpart as subpart 2; 

24 and 

25 (2) by inserting after section 2753, as added by 

26 section 1213(c), the following: 
160

•HR 936 IH 

1 ‘‘SEC. 2754. STANDARD RELATING TO COVERAGE OF CHILD2 HOOD IMMUNIZATION. 

3 ‘‘The provisions of section 2708 shall apply to health 

4 insurance coverage offered by a health insurance issuer 

5 in the individual market in the same manner as they apply 

6 to health insurance coverage offered by a health insurance 

7 issuer in connection with a group health plan in the small 

8 or large group market.’’. 

9 SEC. 1364. AMENDMENTS TO THE INTERNAL REVENUE 

10 CODE OF 1986. 

11 Subchapter B of chapter 100 of the Internal Revenue 

12 Code of 1986 is amended—

13 (1) in the table of sections, by inserting after 

14 the item relating to section 9812 the following new 

15 item:

‘‘Sec. 9813. Standard relating to coverage of childhood immunization.’’;

16 and 

17 (2) by inserting after section 9812 the fol18 lowing: 

19 ‘‘SEC. 9813. STANDARD RELATING TO COVERAGE OF CHILD20 HOOD IMMUNIZATION. 

21 ‘‘(a) IN GENERAL.—A group health plan shall pro22 vide for each plan year comprehensive coverage for routine 

23 immunizations for each individual who is a dependent of 
161

•HR 936 IH 

1 a participant or beneficiary under the plan and is under 

2 19 years of age. 

3 ‘‘(b) COMPREHENSIVE COVERAGE.—For purposes of 

4 this section, comprehensive coverage for routine immuni5 zations for a plan year consists of coverage, without 

6 deductibles, coinsurance, or other cost-sharing, for immu7 nizations (including the vaccine itself) in accordance with 

8 the most recent version of the Recommended Childhood 

9 Immunization Schedule issued prior to such plan year by 

10 the Advisory Committee on Immunization Practices of the 

11 Centers for Disease Control and Prevention.’’. 

12 SEC. 1365. EFFECTIVE DATES. 

13 (a) GROUP HEALTH INSURANCE COVERAGE.—Sub14 ject to subsection (c), the amendments made by sections 

15 1362, 1363(a), and 1364 apply with respect to group 

16 health plans for plan years beginning on or after January 

17 1, 2004. 

18 (b) INDIVIDUAL HEALTH INSURANCE COVERAGE.—

19 The amendment made by section 1363(b) applies with re20 spect to health insurance coverage offered, sold, issued, 

21 renewed, in effect, or operated in the individual market 

22 on or after such date. 

23 (c) COLLECTIVE BARGAINING EXCEPTION.—In the 

24 case of a group health plan maintained pursuant to 1 or 

25 more collective bargaining agreements between employee
162

•HR 936 IH 

1 representatives and 1 or more employers ratified before 

2 the date of enactment of this Act, the amendments made 

3 sections 1362, 1363(a), and 1364 shall not apply to plan 

4 years beginning before the later of—

5 (1) the earliest date as of which all such collec6 tive bargaining agreements relating to the plan have 

7 terminated (determined without regard to any exten8 sion thereof agreed to after the date of the enact9 ment of this Act), or 

10 (2) January 1, 2004. 

11 For purposes of paragraph (1), any plan amendment made 

12 pursuant to a collective bargaining agreement relating to 

13 the plan which amends the plan solely to conform to any 

14 requirement added by sections 1362, 1363(a), and 1364 

15 shall not be treated as a termination of such collective bar16 gaining agreement. 

17 Subtitle E—Reducing 

18 Environmental Health Risks 

19 CHAPTER 1—ENVIRONMENTAL 

20 PROTECTION OF CHILDREN 

21 SEC. 1401. SHORT TITLE. 

22 This chapter may be cited as the ‘‘Children’s Envi23 ronmental Protection Act’’. 
163

•HR 936 IH 

1 SEC. 1402. ENVIRONMENTAL PROTECTION FOR CHILDREN 

2 AND OTHER VULNERABLE SUBPOPULATIONS. 

3 The Toxic Substances Control Act (15 U.S.C. 2601 

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

5 ‘‘TITLE V—ENVIRONMENTAL 

6 PROTECTION FOR CHILDREN 

7 AND OTHER VULNERABLE 

8 SUBPOPULATIONS 

9 ‘‘SEC. 501. FINDINGS AND POLICY. 

10 ‘‘(a) FINDINGS.—Congress finds that—

11 ‘‘(1) the protection of public health and safety 

12 depends on individuals and government officials 

13 being aware of the pollution dangers that exist in 

14 their homes, schools, and communities, and whether 

15 those dangers present special threats to the health 

16 of children and other vulnerable subpopulations; 

17 ‘‘(2) children spend much of their young lives 

18 in schools and day care centers, and may face sig19 nificant exposure to pesticides and other environ20 mental pollutants in those locations; 

21 ‘‘(3) the metabolism, physiology, and diet of 

22 children, and exposure patterns of children to envi23 ronmental pollutants, differ from those of adults, 

24 and those differences and the inherent nature of im25 mature and developing systems of children can make 
164

•HR 936 IH 

1 children more susceptible than adults to the harmful 

2 effects of environmental pollutants; 

3 ‘‘(4) a study conducted by the National Acad4 emy of Sciences that particularly considered the ef5 fects of pesticides on children concluded that current 

6 approaches to assessing pesticide risks typically do 

7 not consider risks to children and, as a result, cur8 rent standards and tolerances often fail to ade9 quately protect children; 

10 ‘‘(5) there are often insufficient data to enable 

11 the Administrator, when establishing an environ12 mental and public health standard for an environ13 mental pollutant, to evaluate the special suscepti14 bility or exposure of children to environmental pol15 lutants; 

16 ‘‘(6) when data are lacking to evaluate the spe17 cial susceptibility or exposure of children to an envi18 ronmental pollutant, the Administrator generally—

19 ‘‘(A) does not presume that the environ20 mental pollutant presents a special risk to chil21 dren; and 

22 ‘‘(B) does not apply a special or additional 

23 margin of safety to protect the health of chil24 dren in establishing an environmental or public 

25 health standard for that pollutant; and 
165

•HR 936 IH 

1 ‘‘(7) safeguarding children from environmental 

2 pollutants requires the systematic collection of data 

3 concerning the special susceptibility and exposure of 

4 children to those pollutants, and the adoption of an 

5 additional safety factor of at least 10-fold in the es6 tablishment of environmental and public health 

7 standards where reliable data are not available. 

8 ‘‘(b) POLICY.—It is the policy of the United States 

9 that—

10 ‘‘(1) the public has the right to be informed 

11 about the pollution dangers to which children are 

12 being exposed in their homes, schools and commu13 nities, and how those dangers may present special 

14 health threats to children and other vulnerable sub15 populations; 

16 ‘‘(2) each environmental and public health 

17 standard for an environmental pollutant established 

18 by the Administrator must, with an adequate margin 

19 of safety, protect children and other vulnerable sub20 populations; 

21 ‘‘(3) where data sufficient to evaluate the spe22 cial susceptibility and exposure of children (including 

23 exposure in utero) to an environmental pollutant are 

24 lacking, the Administrator should presume that the 

25 environmental pollutant poses a special risk to chil-
166

•HR 936 IH 

1 dren and should apply an appropriate additional 

2 margin of safety of at least 10-fold in establishing 

3 an environmental or public health standard for that 

4 environmental pollutant; 

5 ‘‘(4) since it is difficult to identify all conceiv6 able risks and address all uncertainties associated 

7 with pesticide use, the use of dangerous pesticides in 

8 schools and day care centers should be eliminated; 

9 and 

10 ‘‘(5) the Environmental Protection Agency, the 

11 Department of Health and Human Services (includ12 ing the National Institute of Environmental Health 

13 Sciences and the Agency for Toxic Substances and 

14 Disease Registry), the National Institutes of Health, 

15 and other Federal agencies should support research 

16 on the short-term and long-term health effects of cu17 mulative and synergistic exposures of children and 

18 other vulnerable subpopulations to environmental 

19 pollutants. 

20 ‘‘SEC. 502. DEFINITIONS. 

21 ‘‘In this title: 

22 ‘‘(1) CHILD.—The term ‘child’ means an indi23 vidual 18 years of age or younger. 

24 ‘‘(2) COMMITTEE.—The term ‘Committee’ 

25 means the Children’s Environmental Health Protec-
167

•HR 936 IH 

1 tion Advisory Committee established under section 

2 506. 

3 ‘‘(3) DAY CARE CENTER.—The term ‘day care 

4 center’ means a center-based child care provider that 

5 is licensed, regulated, or registered under applicable 

6 State or local law. 

7 ‘‘(4) ENVIRONMENTAL POLLUTANT.—The term 

8 ‘environmental pollutant’ includes—

9 ‘‘(A) a hazardous substance (as defined in 

10 section 101 of the Comprehensive Environ11 mental Response, Compensation, and Liability 

12 Act of 1980 (42 U.S.C. 9601)); 

13 ‘‘(B) a contaminant (as defined in section 

14 1401 of the Safe Drinking Water Act (42 

15 U.S.C. 300f)) 

16 ‘‘(C) an air pollutant subject to regulation 

17 under the Clean Air Act (42 U.S.C. 7401 et 

18 seq.); 

19 ‘‘(D) a water pollutant subject to regula20 tion under the Federal Water Pollution Control 

21 Act (33 U.S.C. 1251 et seq.); and 

22 ‘‘(E) a pesticide subject to regulation 

23 under the Federal Insecticide, Fungicide, and 

24 Rodenticide Act (7 U.S.C. 136 et seq.). 
168

•HR 936 IH 

1 ‘‘(5) PESTICIDE.—The term ‘pesticide’ has the 

2 meaning given the term in section 2 of the Federal 

3 Insecticide, Fungicide, and Rodenticide Act (7 

4 U.S.C. 136). 

5 ‘‘(6) SCHOOL.—The term ‘school’ means an ele6 mentary school (as defined in section 9101 of the 

7 Elementary and Secondary Education Act of 1965 

8 (20 U.S.C. 7801)), a secondary school (as defined in 

9 section 9101 of that Act), a kindergarten, or a nurs10 ery school that is public or receives Federal funding. 

11 ‘‘(7) VULNERABLE SUBPOPULATION.—The 

12 term ‘vulnerable subpopulation’ means—

13 ‘‘(A) children; 

14 ‘‘(B) pregnant women; 

15 ‘‘(C) the elderly; 

16 ‘‘(D) individuals with a history of serious 

17 illness; and 

18 ‘‘(E) any other subpopulation identified by 

19 the Administrator as being likely to experience 

20 special health risks from environmental pollut21 ants. 

22 ‘‘SEC. 503. SAFEGUARDING CHILDREN AND OTHER VULNER23 ABLE SUBPOPULATIONS. 

24 ‘‘(a) IN GENERAL.—The Administrator shall—
169

•HR 936 IH 

1 ‘‘(1) ensure that each environmental and public 

2 health standard for an environmental pollutant pro3 tects children and other vulnerable subpopulations 

4 with an adequate margin of safety; 

5 ‘‘(2) explicitly evaluate data concerning the spe6 cial susceptibility and exposure of children to any 

7 environmental pollutant for which an environmental 

8 or public health standard is established; and 

9 ‘‘(3) adopt an additional margin of safety of at 

10 least 10-fold in the establishment of an environ11 mental or public health standard for an environ12 mental pollutant in the absence of reliable data on 

13 toxicity and exposure of the child to an environ14 mental pollutant or if there is a lack of reliable data 

15 on the susceptibility of the child to an environmental 

16 pollutant for which the environmental and public 

17 health standard is being established. 

18 ‘‘(b) ESTABLISHING, MODIFYING, OR REEVALUATING

19 ENVIRONMENTAL AND PUBLIC HEALTH STANDARDS.—

20 ‘‘(1) IN GENERAL.—In establishing, modifying, 

21 or reevaluating any environmental or public health 

22 standard for an environmental pollutant under any 

23 law administered by the Administrator, the Adminis24 trator shall take into consideration available infor25 mation concerning—
170

•HR 936 IH 

1 ‘‘(A) all routes of exposure of children to 

2 that environmental pollutant; and 

3 ‘‘(B) the special susceptibility of children 

4 to the environmental pollutant, including—

5 ‘‘(i) neurological differences between 

6 children and adults; 

7 ‘‘(ii) the effect of exposure to that en8 vironmental pollutant in utero; and 

9 ‘‘(iii) the cumulative effect on a child 

10 of exposure to that environmental pollutant 

11 and any other substance having a common 

12 toxicological mechanism. 

13 ‘‘(2) ADDITIONAL SAFETY MARGIN.—If any of 

14 the data described in paragraph (1) are not avail15 able, the Administrator shall, in completing a risk 

16 assessment, risk characterization, or other assess17 ment of risk underlying an environmental or public 

18 health standard, adopt an additional margin of safe19 ty of at least 10-fold to take into account—

20 ‘‘(A) potential pre-natal and post-natal 

21 toxicity of an environmental pollutant; and 

22 ‘‘(B) the completeness of data concerning 

23 the exposure and toxicity of the environmental 

24 pollutant to children. 
171

•HR 936 IH 

1 ‘‘(c) IDENTIFICATION AND REVISION OF CURRENT

2 ENVIRONMENTAL AND PUBLIC HEALTH STANDARDS

3 THAT PRESENT SPECIAL RISKS TO CHILDREN.—

4 ‘‘(1) IN GENERAL.—Not later than 1 year after 

5 the date of enactment of this title and annually 

6 thereafter, based on the recommendations of the 

7 Committee, the Administrator shall—

8 ‘‘(A) repromulgate, in accordance with this 

9 section, at least 3 of the environmental and 

10 public health standards identified by the Com11 mittee as posing a special risk to children; or 

12 ‘‘(B) publish a finding in the Federal Reg13 ister that provides the reasons of the Adminis14 trator for declining to repromulgate at least 3 

15 of the environmental and public health stand16 ards identified by the Committee as posing a 

17 special risk to children. 

18 ‘‘(2) DETERMINATION BY ADMINISTRATOR.—If 

19 the Administrator makes the finding described in 

20 paragraph (1)(B), the Administrator shall repromul21 gate in accordance with this section at least 3 envi22 ronmental and public health standards determined 

23 to pose a greater risk to children’s health than the 

24 environmental and public health standards identified 
172

•HR 936 IH 

1 by the Children’s Environmental Health Protection 

2 Advisory Committee. 

3 ‘‘(3) REPORT.—Not later than 1 year after the 

4 date of enactment of this title and annually there5 after, the Administrator shall submit a report to 

6 Congress describing the progress made by the Ad7 ministrator in carrying out this subsection. 

8 ‘‘SEC. 504. SAFER ENVIRONMENT FOR CHILDREN. 

9 ‘‘Not later than 1 year after the date of enactment 

10 of this title, the Administrator shall—

11 ‘‘(1) identify environmental pollutants com12 monly used or found in areas that are reasonably ac13 cessible to children; 

14 ‘‘(2) create a scientifically peer-reviewed list of 

15 substances identified under paragraph (1) with 

16 known, likely, or suspected health risks to children; 

17 ‘‘(3) develop a scientifically peer reviewed list of 

18 safer-for-children substances and products rec19 ommended by the Administrator for use in areas 

20 that are reasonably accessible to children that, when 

21 applied as recommended by the manufacturer, will 

22 minimize potential risks to children from exposure to 

23 environmental pollutants; 

24 ‘‘(4) establish guidelines to help reduce and 

25 eliminate exposure of children to environmental pol-
173

•HR 936 IH 

1 lutants in areas reasonably accessible to children, in2 cluding advice on how to establish an integrated pest 

3 management program; 

4 ‘‘(5) develop a family right-to-know information 

5 kit that includes a summary of helpful information 

6 and guidance to families, such as—

7 ‘‘(A) the information developed under 

8 paragraph (3); 

9 ‘‘(B) the guidelines established under para10 graph (4); 

11 ‘‘(C) information on the potential health 

12 effects of environmental pollutants; 

13 ‘‘(D) practical suggestions on how parents 

14 may reduce the exposure of their children to en15 vironmental pollutants; and 

16 ‘‘(E) other information determined to be 

17 relevant by the Administrator, in cooperation 

18 with the Director of the Centers for Disease 

19 Control and Prevention; 

20 ‘‘(6) make all information developed under this 

21 subsection available to Federal and State agencies, 

22 to the public, and on the Internet; and 

23 ‘‘(7) review and update the lists developed 

24 under paragraphs (2) and (3) at least annually. 
174

•HR 936 IH 

1 ‘‘SEC. 505. RESEARCH TO IMPROVE INFORMATION ON THE 

2 EFFECTS OF ENVIRONMENTAL POLLUTANTS 

3 ON CHILDREN. 

4 ‘‘(a) EXPOSURE AND TOXICITY DATA.—The Admin5 istrator, the Secretary of Agriculture, and the Secretary 

6 of Health and Human Services shall coordinate and sup7 port the development and implementation of basic and ap8 plied research initiatives to examine—

9 ‘‘(1) the health effects and toxicity of pesticides 

10 (including active and inert ingredients) and other 

11 environmental pollutants on children and other vul12 nerable subpopulations; and 

13 ‘‘(2) the exposure of children and other vulner14 able subpopulations to environmental pollutants. 

15 ‘‘(b) BIENNIAL REPORTS.—The Administrator, the 

16 Secretary of Agriculture, and the Secretary of Health and 

17 Human Services shall submit biennial reports to Congress 

18 describing actions taken to carry out this section. 

19 ‘‘SEC. 506. CHILDREN’S ENVIRONMENTAL HEALTH PROTEC20 TION ADVISORY COMMITTEE. 

21 ‘‘(a) ESTABLISHMENT.—The Administrator shall es22 tablish a Children’s Environmental Health Protection Ad23 visory Committee to assist the Administrator in carrying 

24 out this title. 

25 ‘‘(b) COMPOSITION.—The Committee shall be com26 prised of—
175

•HR 936 IH 

1 ‘‘(1) medical professionals specializing in pedi2 atric health; 

3 ‘‘(2) educators; 

4 ‘‘(3) representatives of community groups; 

5 ‘‘(4) representatives of environmental and pub6 lic health nonprofit organizations; 

7 ‘‘(5) industry representatives; and 

8 ‘‘(6) representatives of State environmental and 

9 public health departments. 

10 ‘‘(c) DUTIES.—Not later than 2 years after the date 

11 of enactment of this title and annually thereafter, the 

12 Committee shall develop a list of standards that merit re13 evaluation by the Administrator in order to better protect 

14 the health of children. 

15 ‘‘(d) TERMINATION.—The Committee shall terminate 

16 not later than 15 years after the date on which the Com17 mittee is established. 

18 ‘‘SEC. 507. AUTHORIZATION OF APPROPRIATIONS. 

19 There are authorized to be appropriated such sums 

20 as are necessary to carry out this title.’’. 

21 SEC. 1403. CONFORMING AMENDMENT. 

22 The table of contents in section 1 of the Toxic Sub23 stances Control Act (15 U.S.C. prec. 2601) is amended 

24 by adding at the end the following:

‘‘TITLE V—ENVIRONMENTAL PROTECTION FOR CHILDREN AND 

OTHER VULNERABLE SUBPOPULATIONS 
176

•HR 936 IH 

‘‘Sec. 501. Findings and policy. 

‘‘Sec. 502. Definitions. 

‘‘Sec. 503. Safeguarding children and other vulnerable subpopulations. 

‘‘Sec. 504. Safer environment for children. 

‘‘Sec. 505. Research to improve information on the effects of environmental pollutants on children. 

‘‘Sec. 506. Children’s environmental health protection advisory committee. 

‘‘Sec. 507. Authorization of appropriations.’’.

1 CHAPTER 2—SCHOOL ENVIRONMENTAL 

2 PROTECTION 

3 SEC. 1411. SHORT TITLE. 

4 This chapter may be cited as the ‘‘School Environ5 ment Protection Act’’. 

6 SEC. 1412. INTEGRATED PEST MANAGEMENT SYSTEMS FOR 

7 SCHOOLS. 

8 The Federal Insecticide, Fungicide, and Rodenticide 

9 Act is amended—

10 (1) by redesignating sections 33 and 34 (7 

11 U.S.C. 136x, 136y) as sections 34 and 35, respec12 tively; and 

13 (2) by inserting after section 32 (7 U.S.C. 

14 136w–7) the following: 

15 ‘‘SEC. 33. INTEGRATED PEST MANAGEMENT SYSTEMS FOR 

16 SCHOOLS. 

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

18 ‘‘(1) BOARD.—The term ‘Board’ means the Na19 tional School Integrated Pest Management Advisory 

20 Board established under subsection (c).
177

•HR 936 IH 

1 ‘‘(2) CONTACT PERSON.—The term ‘contact 

2 person’ means an individual who is—

3 ‘‘(A) knowledgeable about integrated pest 

4 management systems; and 

5 ‘‘(B) designated by a local educational 

6 agency as the contact person under subsection 

7 (f). 

8 ‘‘(3) CRACK AND CREVICE TREATMENT.—The 

9 term ‘crack and crevice treatment’ means the appli10 cation of small quantities of a pesticide in a building 

11 into openings such as those commonly found at ex12 pansion joints, between levels of construction, and 

13 between equipment and floors. 

14 ‘‘(4) EMERGENCY.—The term ‘emergency’ 

15 means an urgent need to mitigate or eliminate a 

16 pest that threatens the health or safety of a student 

17 or staff member. 

18 ‘‘(5) FUND.—The term ‘Fund’ means the Inte19 grated Pest Management Trust Fund established 

20 under subsection (m). 

21 ‘‘(6) INTEGRATED PEST MANAGEMENT SYS22 TEM.—The term ‘integrated pest management sys23 tem’ means a managed pest control system that—

24 ‘‘(A) eliminates or mitigates economic, 

25 health, and aesthetic damage caused by pests; 
178

•HR 936 IH 

1 ‘‘(B) uses—

2 ‘‘(i) integrated methods; 

3 ‘‘(ii) site or pest inspections; 

4 ‘‘(iii) pest population monitoring; 

5 ‘‘(iv) an evaluation of the need for 

6 pest control; and 

7 ‘‘(v) 1 or more pest control methods, 

8 including sanitation, structural repair, me9 chanical and biological controls, other non10 chemical methods, and (if nontoxic options 

11 are unreasonable and have been exhausted) 

12 least toxic pesticides; and 

13 ‘‘(C) minimizes—

14 ‘‘(i) the use of pesticides; and 

15 ‘‘(ii) the risk to human health and the 

16 environment associated with pesticide ap17 plications. 

18 ‘‘(7) LEAST TOXIC PESTICIDES.—

19 ‘‘(A) IN GENERAL.—The term ‘least toxic 

20 pesticides’ means—

21 ‘‘(i) boric acid and disodium 

22 octoborate tetrahydrate; 

23 ‘‘(ii) silica gels; 

24 ‘‘(iii) diatomaceous earth; 
179

•HR 936 IH 

1 ‘‘(iv) nonvolatile insect and rodent 

2 baits in tamper resistant containers or for 

3 crack and crevice treatment only; 

4 ‘‘(v) microbe-based insecticides; 

5 ‘‘(vi) botanical insecticides (not in6 cluding synthetic pyrethroids) without toxic 

7 synergists; 

8 ‘‘(vii) biological, living control agents; 

9 and 

10 ‘‘(viii) materials for which the inert 

11 ingredients are nontoxic and disclosed. 

12 ‘‘(B) EXCLUSIONS.—The term ‘least toxic 

13 pesticides’ does not include a pesticide that is 

14 determined by the Administrator to be an 

15 acutely or moderately toxic pesticide, car16 cinogen, mutagen, teratogen, reproductive toxin, 

17 developmental neurotoxin, endocrine disrupter, 

18 or immune system toxin, and any application of 

19 the pesticide using a broadcast spray, dust, 

20 tenting, fogging, or baseboard spray applica21 tion. 

22 ‘‘(8) LIST.—The term ‘list’ means the list of 

23 least toxic pesticides established under subsection 

24 (d). 
180

•HR 936 IH 

1 ‘‘(9) LOCAL EDUCATIONAL AGENCY.—The term 

2 ‘local educational agency’ has the meaning given the 

3 term in section 9101 of the Elementary and Sec4 ondary Education Act of 1965 (20 U.S.C. 7801). 

5 ‘‘(10) OFFICIAL.—The term ‘official’ means the 

6 official appointed by the Administrator under sub7 section (e). 

8 ‘‘(11) PERSON.—The term ‘person’ means—

9 ‘‘(A) an individual that attends, has chil10 dren enrolled in, works at, or uses a school; 

11 ‘‘(B) a resident of a school district; and 

12 ‘‘(C) any other individual that may be af13 fected by pest management activities of a 

14 school. 

15 ‘‘(12) PESTICIDE.—

16 ‘‘(A) IN GENERAL.—The term ‘pesticide’ 

17 means any substance or mixture of substances, 

18 including herbicides and bait stations, intended 

19 for—

20 ‘‘(i) preventing, destroying, repelling, 

21 or mitigating any pest; 

22 ‘‘(ii) use as a plant regulator, defo23 liant, or desiccant; or 

24 ‘‘(iii) use as a spray adjuvant such as 

25 a wetting agent or adhesive. 
181

•HR 936 IH 

1 ‘‘(B) EXCLUSION.—The term ‘pesticide’ 

2 does not include antimicrobial agents such as 

3 disinfectants or deodorizers used for cleaning 

4 products. 

5 ‘‘(13) SCHOOL.—The term ‘school’ means a 

6 public—

7 ‘‘(A) elementary school (as defined in sec8 tion 9101 of the Elementary and Secondary 

9 Education Act of 1965 (20 U.S.C. 7801)); 

10 ‘‘(B) secondary school (as defined in sec11 tion 9101 of that Act); or 

12 ‘‘(C) kindergarten or nursery school. 

13 ‘‘(14) SCHOOL GROUNDS.—

14 ‘‘(A) IN GENERAL.—The term ‘school 

15 grounds’ means the area outside of the school 

16 buildings controlled, managed, or owned by the 

17 school or school district. 

18 ‘‘(B) INCLUSIONS.—The term ‘school 

19 grounds’ includes a lawn, playground, sports 

20 field, and any other property or facility con21 trolled, managed, owned, or leased for use for 

22 a school-sponsored event, by a school. 

23 ‘‘(15) SPACE SPRAYING.—

24 ‘‘(A) IN GENERAL.—The term ‘space 

25 spraying’ means application of a pesticide by
182

•HR 936 IH 

1 discharge into the air throughout an inside 

2 area. 

3 ‘‘(B) INCLUSION.—The term ‘space spray4 ing’ includes the application of a pesticide using 

5 a broadcast spray, dust, tenting, or fogging. 

6 ‘‘(C) EXCLUSION.—The term ‘space spray7 ing’ does not include crack and crevice treat8 ment. 

9 ‘‘(16) STAFF MEMBER.—

10 ‘‘(A) IN GENERAL.—The term ‘staff mem11 ber’ means an employee of a school or local 

12 educational agency. 

13 ‘‘(B) INCLUSIONS.—The term ‘staff mem14 ber’ includes an administrator, teacher, and 

15 other person that is regularly employed by a 

16 school or local educational agency. 

17 ‘‘(C) EXCLUSIONS.—The term ‘staff mem18 ber’ does not include—

19 ‘‘(i) an employee hired by a school, 

20 local educational agency, or State to apply 

21 a pesticide; or 

22 ‘‘(ii) a person assisting in the applica23 tion of a pesticide. 

24 ‘‘(17) STATE EDUCATIONAL AGENCY.—The 

25 term ‘State educational agency’ has the meaning 
183

•HR 936 IH 

1 given the term in section 14101 of the Elementary 

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

3 8801). 

4 ‘‘(18) UNIVERSAL NOTIFICATION.—The term 

5 ‘universal notification’ means notice provided by a 

6 local educational agency or school to—

7 ‘‘(A) all parents or guardians of children 

8 attending the school; and 

9 ‘‘(B) staff members of the school or local 

10 educational agency. 

11 ‘‘(b) INTEGRATED PEST MANAGEMENT SYSTEMS.—

12 ‘‘(1) IN GENERAL.—The Administrator, in con13 sultation with the Secretary of Education, shall es14 tablish a National School Integrated Pest Manage15 ment Advisory System to develop and update uni16 form standards and criteria for implementing inte17 grated pest management systems in schools. 

18 ‘‘(2) IMPLEMENTATION.—Not later than 18 

19 months after the date of enactment of this sub20 section, each local educational agency of a school 

21 district shall develop and implement in each of the 

22 schools in the school district an integrated pest man23 agement system that complies with this section. 

24 ‘‘(3) STATE PROGRAMS.—If, on the date of en25 actment of this section, a State maintains an inte-
184

•HR 936 IH 

1 grated pest management system that meets the 

2 standards and criteria established under paragraph 

3 (1) (as determined by the Board), a local edu4 cational agency in the State may continue to imple5 ment the system in a school or in the school district 

6 in accordance with paragraph (2). 

7 ‘‘(4) APPLICATION TO SCHOOLS AND SCHOOL

8 GROUNDS.—The requirements of this section that 

9 apply to a school, including the requirement to im10 plement an integrated management system, apply to 

11 pesticide application in a school building and on the 

12 school grounds. 

13 ‘‘(5) APPLICATION OF PESTICIDES WHEN

14 SCHOOLS IN USE.—A school shall prohibit—

15 ‘‘(A) the application of a pesticide when a 

16 school or school grounds are occupied or in use; 

17 or 

18 ‘‘(B) the use of an area or room treated by 

19 a pesticide, other than a least toxic pesticide, 

20 during the 24-hour period beginning at the end 

21 of the treatment. 

22 ‘‘(c) NATIONAL SCHOOL INTEGRATED PEST MAN23 AGEMENT ADVISORY BOARD.—

24 ‘‘(1) IN GENERAL.—The Administrator, in con25 sultation with the Secretary of Education, shall es-
185

•HR 936 IH 

1 tablish a National School Integrated Pest Manage2 ment Advisory Board to— 

3 ‘‘(A) establish uniform standards and cri4 teria for developing integrated pest manage5 ment systems and policies in schools; 

6 ‘‘(B) develop standards for the use of least 

7 toxic pesticides in schools; and 

8 ‘‘(C) advise the Administrator on any other 

9 aspects of the implementation of this section. 

10 ‘‘(2) COMPOSITION OF BOARD.—The Board 

11 shall be composed of 12 members and include 1 rep12 resentative from each of the following groups: 

13 ‘‘(A) Parents. 

14 ‘‘(B) Public health care professionals.

15 ‘‘(C) Medical professionals. 

16 ‘‘(D) State integrated pest management 

17 system coordinators. 

18 ‘‘(E) Independent integrated pest manage19 ment specialists that have carried out school in20 tegrated pest management programs. 

21 ‘‘(F) Environmental advocacy groups. 

22 ‘‘(G) Children’s health advocacy groups. 

23 ‘‘(H) Trade organization for pest control 

24 operators. 

25 ‘‘(I) Teachers and staff members. 
186

•HR 936 IH 

1 ‘‘(J) School maintenance staff. 

2 ‘‘(K) School administrators. 

3 ‘‘(L) School board members. 

4 ‘‘(3) APPOINTMENT.—Not later than 180 days 

5 after the date of enactment of this section, the Ad6 ministrator shall appoint members of the Board 

7 from nominations received from Parent Teacher As8 sociations, school districts, States, and other inter9 ested persons and organizations. 

10 ‘‘(4) TERM.—

11 ‘‘(A) IN GENERAL.—A member of the 

12 Board shall serve for a term of 5 years, except 

13 that the Administrator may shorten the terms 

14 of the original members of the Board in order 

15 to provide for a staggered term of appointment 

16 for all members of the Board. 

17 ‘‘(B) CONSECUTIVE TERMS.—Subject to 

18 subparagraph (C), a member of the Board shall 

19 not serve consecutive terms unless the term of 

20 the member has been reduced by the Adminis21 trator. 

22 ‘‘(C) MAXIMUM TERM.—In no event may a 

23 member of the Board serve for more than 6 

24 consecutive years.
187

•HR 936 IH 

1 ‘‘(5) MEETINGS.—The Administrator shall con2 vene— 

3 ‘‘(A) an initial meeting of the Board not 

4 later than 60 days after the appointment of the 

5 members; and 

6 ‘‘(B) subsequent meetings on a periodic 

7 basis, but not less often than 2 times each year. 

8 ‘‘(6) COMPENSATION.—A member of the Board 

9 shall serve without compensation, but may be reim10 bursed by the Administrator for expenses (in accord11 ance with section 5703 of title 5, United States 

12 Code) incurred in performing duties as a member of 

13 the Board. 

14 ‘‘(7) CHAIRPERSON.—The Board shall select a 

15 Chairperson for the Board. 

16 ‘‘(8) QUORUM.—A majority of the members of 

17 the Board shall constitute a quorum for the purpose 

18 of conducting business. 

19 ‘‘(9) DECISIVE VOTES.—Two-thirds of the votes 

20 cast at a meeting of the Board at which a quorum 

21 is present shall be decisive for any motion. 

22 ‘‘(10) ADMINISTRATION.—The Administrator— 

23 ‘‘(A) shall— 

24 ‘‘(i) authorize the Board to hire a 

25 staff director; and 
188

•HR 936 IH 

1 ‘‘(ii) detail staff of the Environmental 

2 Protection Agency, or allow for the hiring 

3 of staff for the Board; and 

4 ‘‘(B) subject to the availability of appro5 priations, may pay necessary expenses incurred 

6 by the Board in carrying out this subtitle, as 

7 determined appropriate by the Administrator. 

8 ‘‘(11) RESPONSIBILITIES OF THE BOARD.—

9 ‘‘(A) IN GENERAL.—The Board shall pro10 vide recommendations to the Administrator re11 garding the implementation of this section. 

12 ‘‘(B) LIST OF LEAST TOXIC PESTICIDES.—

13 Not later than 1 year after the initial meeting 

14 of the Board, the Board shall— 

15 ‘‘(i) review implementation of this sec16 tion (including use of least toxic pes17 ticides); and 

18 ‘‘(ii) review and make recommenda19 tions to the Administrator with respect to 

20 new proposed active and inert ingredients 

21 or proposed amendments to the list in ac22 cordance with subsection (d). 

23 ‘‘(C) TECHNICAL ADVISORY PANELS.—

24 ‘‘(i) IN GENERAL.—The Board shall 

25 convene technical advisory panels to pro-
189

•HR 936 IH 

1 vide scientific evaluations of the materials 

2 considered for inclusion on the list. 

3 ‘‘(ii) COMPOSITION.—A panel de4 scribed in clause (i) shall include experts 

5 on integrated pest management, children’s 

6 health, entomology, health sciences, and 

7 other relevant disciplines. 

8 ‘‘(D) SPECIAL REVIEW.—

9 ‘‘(i) IN GENERAL.—Not later than 2 

10 years after the initial meeting of the 

11 Board, the Board shall review, with the as12 sistance of a technical advisory panel, pes13 ticides used in school buildings and on 

14 school grounds for their acute toxicity and 

15 chronic effects, including cancer, 

16 mutations, birth defects, reproductive dys17 function, neurological and immune system 

18 effects, and endocrine system disruption. 

19 ‘‘(ii) DETERMINATION.—The Board— 

20 ‘‘(I) shall determine whether the 

21 use of pesticides described in clause 

22 (i) may endanger the health of chil23 dren; and 

24 ‘‘(II) may recommend to the Ad25 ministrator restrictions on pesticide 
190

•HR 936 IH 

1 use in school buildings and on school 

2 grounds. 

3 ‘‘(12) REQUIREMENTS.—In establishing the 

4 proposed list, the Board shall—

5 ‘‘(A) review available information from the 

6 Environmental Protection Agency, the National 

7 Institute of Environmental Health Studies, 

8 medical and scientific literature, and such other 

9 sources as appropriate, concerning the potential 

10 for adverse human and environmental effects of 

11 substances considered for inclusion in the pro12 posed list; and 

13 ‘‘(B) cooperate with manufacturers of sub14 stances considered for inclusion in the proposed 

15 list to obtain a complete list of ingredients and 

16 determine that such substances contain inert 

17 ingredients that are generally recognized as 

18 safe. 

19 ‘‘(13) PETITIONS.—The Board shall establish 

20 procedures under which individuals may petition the 

21 Board for the purpose of evaluating substances for 

22 inclusion on the list. 

23 ‘‘(14) PERIODIC REVIEW.—
191

•HR 936 IH 

1 ‘‘(A) IN GENERAL.—The Board shall re2 view each substance included on the list at least 

3 once during each 5-year period beginning on— 

4 ‘‘(i) the date that the substance was 

5 initially included on the list; or 

6 ‘‘(ii) the date of the last review of the 

7 substance under this subsection. 

8 ‘‘(B) SUBMISSION TO ADMINISTRATOR.—

9 The Board shall submit the results of a review 

10 under subparagraph (A) to the Administrator 

11 with a recommendation as to whether the sub12 stance should continue to be included on the 

13 list. 

14 ‘‘(15) CONFIDENTIALITY.—Any business sen15 sitive material obtained by the Board in carrying out 

16 this section shall be treated as confidential business 

17 information by the Board and shall not be released 

18 to the public. 

19 ‘‘(d) LIST OF LEAST TOXIC PESTICIDES; PESTICIDE

20 REVIEW.—

21 ‘‘(1) IN GENERAL.—The Board shall rec22 ommend to the Administrator a list of least toxic 

23 pesticides (including the pesticides described in sub24 section (a)(7)) that may be used as least toxic pes25 ticides, any restrictions on the use of the listed pes-
192

•HR 936 IH 

1 ticides, and any recommendations regarding restric2 tions on all other pesticides, in accordance with this 

3 section. 

4 ‘‘(2) PROCEDURE FOR EVALUATING PESTICIDE

5 USE.—

6 ‘‘(A) LIST OF LEAST TOXIC PESTICIDES.—

7 ‘‘(i) IN GENERAL.—The Administrator 

8 shall establish a list of least toxic pes9 ticides that may be used in school build10 ings and on school grounds, including any 

11 restrictions on the use of the pesticides, 

12 that is based on the list prepared by the 

13 Board. 

14 ‘‘(ii) REGULATORY REVIEW.—The Ad15 ministrator shall initiate regulatory review 

16 of all other pesticides recommended for re17 striction by the Board. 

18 ‘‘(B) RECOMMENDATIONS.—Not later than 

19 1 year after receiving the proposed list and re20 strictions, and recommended restrictions on all 

21 other pesticides from the Board, the Adminis22 trator shall—

23 ‘‘(i) publish the proposed list and re24 strictions and all other proposed pesticide 

25 restrictions in the Federal Register and 
193

•HR 936 IH 

1 seek public comment on the proposed pro2 posals; and 

3 ‘‘(ii) after evaluating all comments re4 ceived concerning the proposed list and re5 strictions, but not later than 1 year after 

6 the close of the period during which public 

7 comments are accepted, publish the final 

8 list and restrictions in the Federal Reg9 ister, together with a discussion of com10 ments received. 

11 ‘‘(C) FINDINGS.—Not later than 2 years 

12 after publication of the final list and restric13 tions, the Administrator shall make a deter14 mination and issue findings on whether use of 

15 registered pesticides in school buildings and on 

16 school grounds may endanger the health of chil17 dren. 

18 ‘‘(D) NOTICE AND COMMENT.—

19 ‘‘(i) IN GENERAL.—Prior to estab20 lishing or making amendments to the list, 

21 the Administrator shall publish the pro22 posed list or any proposed amendments to 

23 the list in the Federal Register and seek 

24 public comment on the proposals. 
194

•HR 936 IH 

1 ‘‘(ii) RECOMMENDATIONS.—The Ad2 ministrator shall include in any publication 

3 described in clause (i) any changes or 

4 amendments to the proposed list that are 

5 recommended to and by the Administrator. 

6 ‘‘(E) PUBLICATION OF LIST.—After evalu7 ating all comments received concerning the pro8 posed list or proposed amendments to the list, 

9 the Administrator shall publish the final list in 

10 the Federal Register, together with a descrip11 tion of comments received. 

12 ‘‘(e) OFFICE OF PESTICIDE PROGRAMS.—

13 ‘‘(1) ESTABLISHMENT.—The Administrator 

14 shall appoint an official for school pest management 

15 within the Office of Pesticide Programs of the Envi16 ronmental Protection Agency to coordinate the de17 velopment and implementation of integrated pest 

18 management systems in schools. 

19 ‘‘(2) DUTIES.—The official shall—

20 ‘‘(A) coordinate the development of school 

21 integrated pest management systems and poli22 cies; 

23 ‘‘(B) consult with schools concerning—

24 ‘‘(i) issues related to the integrated 

25 pest management systems of schools; 
195

•HR 936 IH 

1 ‘‘(ii) the use of least toxic pesticides; 

2 and 

3 ‘‘(iii) the registration of pesticides, 

4 and amendments to the registrations, as 

5 the registrations and amendments relate to 

6 the use of integrated pest management 

7 systems in schools; and 

8 ‘‘(C) support and provide technical assist9 ance to the Board. 

10 ‘‘(f) CONTACT PERSON.—

11 ‘‘(1) IN GENERAL.—Each local educational 

12 agency of a school district shall designate a contact 

13 person for carrying out an integrated pest manage14 ment system in schools in the school district. 

15 ‘‘(2) DUTIES.—The contact person of a school 

16 district shall—

17 ‘‘(A) maintain information about pesticide 

18 applications inside and outside schools within 

19 the school district, in school buildings, and on 

20 school grounds; 

21 ‘‘(B) act as a contact for inquiries about 

22 the integrated pest management system; 

23 ‘‘(C) maintain material safety data sheets 

24 and labels for all pesticides that may be used in 

25 the school district;
196

•HR 936 IH 

1 ‘‘(D) be informed of Federal and State 

2 chemical health and safety information and con3 tact information; 

4 ‘‘(E) maintain scheduling of all pesticide 

5 usage for schools in the school district; 

6 ‘‘(F) maintain contact with Federal and 

7 State integrated pest management system ex8 perts; and 

9 ‘‘(G) obtain periodic updates and training 

10 from State integrated pest management system 

11 experts. 

12 ‘‘(3) PESTICIDE USE DATA.—A local edu13 cational agency of a school district shall—

14 ‘‘(A) maintain all pesticide use data for 

15 each school in the school district; and 

16 ‘‘(B) on request, make the data available 

17 to the public for review. 

18 ‘‘(g) NOTICE OF INTEGRATED PEST MANAGEMENT

19 SYSTEM.—

20 ‘‘(1) IN GENERAL.—At the beginning of each 

21 school year, each local educational agency or school 

22 of a school district shall include a notice of the inte23 grated pest management system of the school dis24 trict in school calendars or other forms of universal 

25 notification. 
197

•HR 936 IH 

1 ‘‘(2) CONTENTS.—The notice shall include a de2 scription of—

3 ‘‘(A) the integrated pest management sys4 tem of the school district; 

5 ‘‘(B) any pesticide (including any least 

6 toxic pesticide) or bait station that may be used 

7 in a school building or on school grounds as 

8 part of the integrated pest management system; 

9 ‘‘(C) the name, address, and telephone 

10 number of the contact person of the school dis11 trict; 

12 ‘‘(D) a statement that—

13 ‘‘(i) the contact person maintains the 

14 product label and material safety data 

15 sheet of each pesticide (including each 

16 least toxic pesticide) and bait station that 

17 may be used by a school in buildings or on 

18 school grounds; 

19 ‘‘(ii) the label and data sheet is avail20 able for review by a parent, guardian, staff 

21 member, or student attending the school; 

22 and 

23 ‘‘(iii) the contact person is available to 

24 parents, guardians, and staff members for 

25 information and comment; and 
198

•HR 936 IH 

1 ‘‘(E) the time and place of any meetings 

2 that will be held under subsection (g)(1). 

3 ‘‘(3) USE OF PESTICIDES.—A local educational 

4 agency or school may use a pesticide during a school 

5 year only if the use of the pesticide has been dis6 closed in the notice required under paragraph (1) at 

7 the beginning of the school year. 

8 ‘‘(4) NEW EMPLOYEES AND STUDENTS.—After 

9 the beginning of each school year, a local educational 

10 agency or school of a school district shall provide the 

11 notice required under this subsection to—

12 ‘‘(A) each new staff member who is em13 ployed during the school year; and 

14 ‘‘(B) the parent or guardian of each new 

15 student enrolled during the school year. 

16 ‘‘(h) USE OF PESTICIDES.—

17 ‘‘(1) IN GENERAL.—If a local educational agen18 cy or school determines that a pest in the school or 

19 on school grounds cannot be controlled after having 

20 used the integrated pest management system of the 

21 school or school district and least toxic pesticides, 

22 the school may use a pesticide (other than space 

23 spraying of the pesticide) to control the pest in ac24 cordance with this subsection. 
199

•HR 936 IH 

1 ‘‘(2) PRIOR NOTIFICATION OF PARENTS, 

2 GUARDIANS, AND STAFF MEMBERS.—

3 ‘‘(A) IN GENERAL.—Subject to paragraphs 

4 (4) and (5), not less than 72 hours before a 

5 pesticide (other than a least toxic pesticide) is 

6 used by a school, the school shall provide to a 

7 parent or guardian of each student enrolled at 

8 the school and each staff member of the school, 

9 notice that includes—

10 ‘‘(i) the common name, trade name, 

11 and Environmental Protection Agency reg12 istration number of the pesticide; 

13 ‘‘(ii) a description of the location of 

14 the application of the pesticide; 

15 ‘‘(iii) a description of the date and 

16 time of application, except that, in the case 

17 of outdoor pesticide applications, 1 notice 

18 shall include 3 dates, in chronological 

19 order, that the outdoor pesticide applica20 tions may take place if the preceding date 

21 is canceled; 

22 ‘‘(iv) a statement that ‘The Office of 

23 Pesticide Programs of the United States 

24 Environmental Protection Agency has stat25 ed: ‘Where possible, persons who poten-
200

•HR 936 IH 

1 tially are sensitive, such as pregnant 

2 women and infants (less than 2 years old), 

3 should avoid any unnecessary pesticide ex4 posure.’; 

5 ‘‘(v) a description of potential adverse 

6 effects of the pesticide based on the mate7 rial safety data sheet of the pesticide; 

8 ‘‘(vi) a description of the reasons for 

9 the application of the pesticide; 

10 ‘‘(vii) the name and telephone number 

11 of the contact person of the school district; 

12 and 

13 ‘‘(viii) any additional warning infor14 mation related to the pesticide. 

15 ‘‘(B) METHOD OF NOTIFICATION.—The 

16 school may provide the notice required by sub17 paragraph (A) by—

18 ‘‘(i) written notice sent home with the 

19 student and provided to the staff member; 

20 ‘‘(ii) a telephone call; 

21 ‘‘(iii) direct contact; or 

22 ‘‘(iv) written notice mailed at least 1 

23 week before the application. 

24 ‘‘(C) REISSUANCE.—If the date of the ap25 plication of the pesticide needs to be extended
201

•HR 936 IH 

1 beyond the period required for notice under this 

2 paragraph, the school shall reissue the notice 

3 under this paragraph for the new date of appli4 cation. 

5 ‘‘(3) POSTING OF SIGNS.—

6 ‘‘(A) IN GENERAL.—Subject to paragraphs 

7 (4) and (5), at least 72 hours before a pesticide 

8 (other than a least toxic pesticide) is used by a 

9 school, the school shall post a sign that provides 

10 notice of the application of the pesticide— 

11 ‘‘(i) in a prominent place that is in or 

12 adjacent to the location to be treated; and 

13 ‘‘(ii) at each entrance to the building 

14 or school grounds to be treated. 

15 ‘‘(B) ADMINISTRATION.—A sign required 

16 under subparagraph (A) for the application of 

17 a pesticide shall—

18 ‘‘(i) remain posted for at least 72 

19 hours after the end of the treatment; 

‘‘(ii) be at least 8 1 20 ⁄2 inches by 11 

21 inches; and 

22 ‘‘(iii) state the same information as 

23 that required for prior notification of the 

24 application under paragraph (2). 
202

•HR 936 IH 

1 ‘‘(C) OUTDOOR PESTICIDE APPLICA2 TIONS.—

3 ‘‘(i) IN GENERAL.—In the case of out4 door pesticide applications, each sign shall 

5 include 3 dates, in chronological order, 

6 that the outdoor pesticide application may 

7 take place if the preceding date is canceled 

8 due to weather. 

9 ‘‘(ii) DURATION OF POSTING.—A sign 

10 described in clause (i) shall be posted after 

11 an outdoor pesticide application in accord12 ance with subparagraph (B). 

13 ‘‘(4) ADMINISTRATION.—

14 ‘‘(A) APPLICATORS.—Paragraphs (2) and 

15 (3) shall apply to any person that applies a pes16 ticide in a school or on school grounds, includ17 ing a custodian, staff member, or commercial 

18 applicator. 

19 ‘‘(B) TIME OF YEAR.—Paragraphs (2) and 

20 (3) shall apply to a school—

21 ‘‘(i) during the school year; and 

22 ‘‘(ii) during holidays and the summer 

23 months, if the school is in use, with notice 

24 provided to all staff members and the par-
203

•HR 936 IH 

1 ents or guardians of the students that are 

2 using the school in an authorized manner. 

3 ‘‘(5) EMERGENCIES.—

4 ‘‘(A) IN GENERAL.—A school may apply a 

5 pesticide (other than a least toxic pesticide) in 

6 the school or on school grounds without com7 plying with paragraphs (2) and (3) in an emer8 gency, subject to subparagraph (B). 

9 ‘‘(B) SUBSEQUENT NOTIFICATION OF PAR10 ENTS, GUARDIANS, AND STAFF MEMBERS.—Not 

11 later than the earlier of the time that is 24 

12 hours after a school applies a pesticide under 

13 this paragraph or on the morning of the next 

14 school day, the school shall provide to each par15 ent or guardian of a student enrolled at the 

16 school, and staff member of the school, notice 

17 of the application of the pesticide for emergency 

18 pest control that includes—

19 ‘‘(i) the information required for a no20 tice under paragraph (2)(A); 

21 ‘‘(ii) a description of the problem and 

22 the factors that qualified the problem as 

23 an emergency that threatened the health or 

24 safety of a student or staff member; and 
204

•HR 936 IH 

1 ‘‘(iii) a description of the steps the 

2 school will take in the future to avoid 

3 emergency application of a pesticide under 

4 this paragraph. 

5 ‘‘(C) METHOD OF NOTIFICATION.—The 

6 school may provide the notice required by sub7 paragraph (B) by—

8 ‘‘(i) written notice sent home with the 

9 student and provided to the staff member; 

10 ‘‘(ii) a telephone call; or 

11 ‘‘(iii) direct contact. 

12 ‘‘(D) POSTING OF SIGNS.—A school apply13 ing a pesticide under this paragraph shall post 

14 a sign warning of the pesticide application in 

15 accordance with paragraph (3). 

16 ‘‘(E) MODIFICATION OF INTEGRATED PEST

17 MANAGEMENT PLANS.—If a school in a school 

18 district applies a pesticide under this para19 graph, the local educational agency of the 

20 school district shall modify the integrated pest 

21 management plan of the school district to mini22 mize the future applications of pesticides under 

23 this paragraph. 

24 ‘‘(6) DRIFT OF PESTICIDES ONTO SCHOOL

25 GROUNDS.—Each local educational agency, State 
205

•HR 936 IH 

1 pesticide lead agency, and the Administrator are en2 couraged to—

3 ‘‘(A) identify sources of pesticides that 

4 drift from treated land to school grounds of the 

5 educational agency; and 

6 ‘‘(B) take steps necessary to create an in7 door and outdoor school environment that are 

8 protected from pesticides described in subpara9 graph (A). 

10 ‘‘(i) MEETINGS.—

11 ‘‘(1) IN GENERAL.—Before the beginning of a 

12 school year, at the beginning of each new calendar 

13 year, and at a regularly scheduled meeting of a 

14 school board, each local educational agency shall 

15 provide an opportunity for the contact person des16 ignated under subsection (d) to receive and address 

17 public comments regarding the integrated pest man18 agement system of the school district. 

19 ‘‘(2) EMERGENCY MEETINGS.—An emergency 

20 meeting of a school board to address a pesticide ap21 plication may be called under locally appropriate 

22 procedures for convening emergency meetings. 

23 ‘‘(j) INVESTIGATIONS AND ORDERS.—
206

•HR 936 IH 

1 ‘‘(1) IN GENERAL.—Not later than 60 days 

2 after receiving a complaint of a violation of this sec3 tion, the Administrator shall—

4 ‘‘(A) conduct an investigation of the com5 plaint; 

6 ‘‘(B) determine whether it is reasonable to 

7 believe the complaint has merit; and 

8 ‘‘(C) notify the complainant and the per9 son alleged to have committed the violation of 

10 the findings of the Administrator. 

11 ‘‘(2) PRELIMINARY ORDER.—If the Adminis12 trator determines it is reasonable to believe a viola13 tion occurred, the Administrator shall issue a pre14 liminary order (that includes findings) to impose the 

15 penalty described in subsection (j). 

16 ‘‘(3) OBJECTIONS TO PRELIMINARY ORDER.—

17 ‘‘(A) IN GENERAL.—Not later than 30 

18 days after the preliminary order is issued under 

19 paragraph (2), the complainant and the person 

20 alleged to have committed the violation may—

21 ‘‘(i) file objections to the preliminary 

22 order (including findings); and 

23 ‘‘(ii) request a hearing on the record. 

24 ‘‘(B) FINAL ORDER.—If a hearing is not 

25 requested within 30 days after the preliminary 
207

•HR 936 IH 

1 order is issued, the preliminary order shall be 

2 final and not subject to judicial review. 

3 ‘‘(4) HEARING.—A hearing under this sub4 section shall be conducted expeditiously. 

5 ‘‘(5) FINAL ORDER.—Not later than 120 days 

6 after the end of the hearing, the Administrator shall 

7 issue a final order. 

8 ‘‘(6) SETTLEMENT AGREEMENT.—Before the 

9 final order is issued, the proceeding may be termi10 nated by a settlement agreement, which shall remain 

11 open, entered into by the Administrator, the com12 plainant, and the person alleged to have committed 

13 the violation. 

14 ‘‘(7) COSTS.—

15 ‘‘(A) IN GENERAL.—If the Administrator 

16 issues a final order against a school or school 

17 district for violation of this section and the 

18 complainant requests, the Administrator may 

19 assess against the person against whom the 

20 order is issued the costs (including attorney’s 

21 fees) reasonably incurred by the complainant in 

22 bringing the complaint. 

23 ‘‘(B) AMOUNT.—The Administrator shall 

24 determine the amount of the costs that were 

25 reasonably incurred by the complainant. 
208

•HR 936 IH 

1 ‘‘(8) JUDICIAL REVIEW AND VENUE.—

2 ‘‘(A) IN GENERAL.—A person adversely af3 fected by an order issued after a hearing under 

4 this subsection may file a petition for review 

5 not later than 60 days after the date that the 

6 order is issued, in a district court of the United 

7 States or other United States court for any dis8 trict in which a local educational agency or 

9 school is found, resides, or transacts business. 

10 ‘‘(B) TIMING.—The review shall be heard 

11 and decided expeditiously. 

12 ‘‘(C) COLLATERAL REVIEW.—An order of 

13 the Administrator subject to review under this 

14 paragraph shall not be subject to judicial review 

15 in a criminal or other civil proceeding. 

16 ‘‘(k) CIVIL PENALTY.—

17 ‘‘(1) IN GENERAL.—Any local educational agen18 cy, school, or person that violates this section may 

19 be assessed a civil penalty by the Administrator 

20 under subsections (h) and (i), respectively, of not 

21 more than $10,000 for each offense. 

22 ‘‘(2) TRANSFER TO TRUST FUND.—Except as 

23 provided in subsection (i)(4)(B), civil penalties col24 lected under paragraph (1) shall be deposited in the 

25 Fund. 
209

•HR 936 IH 

1 ‘‘(l) INTEGRATED PEST MANAGEMENT TRUST

2 FUND.—

3 ‘‘(1) ESTABLISHMENT.—There is established in 

4 the Treasury of the United States a trust fund to 

5 be known as the ‘Integrated Pest Management 

6 Trust Fund’, consisting of—

7 ‘‘(A) amounts deposited in the Fund under 

8 subsection (j)(2); 

9 ‘‘(B) amounts transferred to the Secretary 

10 of the Treasury for deposit into the Fund under 

11 paragraph (5); and 

12 ‘‘(C) any interest earned on investment of 

13 amounts in the Fund under paragraph (3). 

14 ‘‘(2) EXPENDITURES FROM FUND.—

15 ‘‘(A) IN GENERAL.—Subject to subpara16 graph (B), on request by the Administrator, the 

17 Secretary of the Treasury shall transfer from 

18 the Fund to the Administrator, without further 

19 appropriation, such amounts as the Secretary 

20 determines are necessary to provide funds to 

21 each State educational agency of a State, in 

22 proportion to the amount of civil penalties col23 lected in the State under subsection (j)(1), to 

24 carry out education, training, propagation, and 

25 development activities under integrated pest 
210

•HR 936 IH 

1 management systems of schools in the State to 

2 remedy the harmful effects of actions taken by 

3 the persons that paid the civil penalties. 

4 ‘‘(B) ADMINISTRATIVE EXPENSES.—An 

5 amount not to exceed 6 percent of the amounts 

6 in the Fund shall be available for each fiscal 

7 year to pay the administrative expenses nec8 essary to carry out this subsection. 

9 ‘‘(3) INVESTMENT OF AMOUNTS.—

10 ‘‘(A) IN GENERAL.—The Secretary of the 

11 Treasury shall invest such portion of the Fund 

12 as is not, in the judgment of the Secretary of 

13 the Treasury, required to meet current with14 drawals. Investments may be made only in in15 terest-bearing obligations of the United States. 

16 ‘‘(B) ACQUISITION OF OBLIGATIONS.—For 

17 the purpose of investments under subparagraph 

18 (A), obligations may be acquired—

19 ‘‘(i) on original issue at the issue 

20 price; or 

21 ‘‘(ii) by purchase of outstanding obli22 gations at the market price. 

23 ‘‘(C) SALE OF OBLIGATIONS.—Any obliga24 tion acquired by the Fund may be sold by the 

25 Secretary of the Treasury at the market price.
211

•HR 936 IH 

1 ‘‘(D) CREDITS TO FUND.—The interest on, 

2 and the proceeds from the sale or redemption 

3 of, any obligations held in the Fund shall be 

4 credited to and form a part of the Fund. 

5 ‘‘(4) TRANSFERS OF AMOUNTS.—

6 ‘‘(A) IN GENERAL.—The amounts required 

7 to be transferred to the Fund under this sub8 section shall be transferred at least monthly 

9 from the general fund of the Treasury to the 

10 Fund on the basis of estimates made by the 

11 Secretary of the Treasury. 

12 ‘‘(B) ADJUSTMENTS.—Proper adjustment 

13 shall be made in amounts subsequently trans14 ferred to the extent prior estimates were in ex15 cess of or less than the amounts required to be 

16 transferred. 

17 ‘‘(5) ACCEPTANCE AND USE OF DONATIONS.—

18 The Secretary may accept and use donations to 

19 carry out paragraph (2)(A). Amounts received by 

20 the Secretary in the form of donations shall be 

21 transferred to the Secretary of the Treasury for de22 posit into the Fund. 

23 ‘‘(m) EMPLOYEE PROTECTION.—

24 ‘‘(1) IN GENERAL.—No local educational agen25 cy, school, or person may harass, prosecute, hold lia-
212

•HR 936 IH 

1 ble, or discriminate against any employee or other 

2 person because the employee or other person—

3 ‘‘(A) is assisting or demonstrating an in4 tent to assist in achieving compliance with this 

5 section (including any regulation); 

6 ‘‘(B) is refusing to violate or assist in the 

7 violation of this section (including any regula8 tion); or 

9 ‘‘(C) has commenced, caused to be com10 menced, or is about to commence a proceeding, 

11 has testified or is about to testify at a pro12 ceeding, or has assisted or participated or is 

13 about to participate in any manner in such a 

14 proceeding or in any other action to carry out 

15 this section. 

16 ‘‘(2) COMPLAINTS.—Not later than 1 year after 

17 an alleged violation occurred, an employee or other 

18 person alleging a violation of this section, or another 

19 person at the request of the employee, may file a 

20 complaint with the Administrator. 

21 ‘‘(3) REMEDIAL ACTION.—If the Administrator 

22 decides, on the basis of a complaint, that a local 

23 educational agency, school, or person violated para24 graph (1), the Administrator shall order the local 

25 educational agency, school, or person to—
213

•HR 936 IH 

1 ‘‘(A) take affirmative action to abate the 

2 violation; 

3 ‘‘(B) reinstate the complainant to the 

4 former position with the same pay and terms 

5 and privileges of employment; and 

6 ‘‘(C) pay compensatory damages, including 

7 back pay. 

8 ‘‘(n) GRANTS.—

9 ‘‘(1) IN GENERAL.—The Administrator, in con10 sultation with the Secretary of Education, shall pro11 vide grants to local educational agencies to develop 

12 and implement integrated pest management systems 

13 in schools in the school district of the local edu14 cational agencies. 

15 ‘‘(2) AMOUNT.—The amount of a grant pro16 vided to a local educational agency of a school dis17 trict under paragraph (1) shall be based on the ratio 

18 that the number of students enrolled in schools in 

19 the school district bears to the total number of stu20 dents enrolled in schools in all school districts in the 

21 United States. 

22 ‘‘(o) RELATIONSHIP TO STATE AND LOCAL REQUIRE23 MENTS.—This section (including regulations promulgated 

24 under this section) shall not preempt requirements im25 posed on local educational agencies and schools related to 
214

•HR 936 IH 

1 the use of integrated pest management by State or local 

2 law (including regulations) that are more stringent than 

3 the requirements imposed under this section. 

4 ‘‘(p) REGULATIONS.—Subject to subsection (m), the 

5 Administrator shall promulgate such regulations as are 

6 necessary to carry out this section. 

7 ‘‘(q) RESTRICTION ON PESTICIDE USE.—Not later 

8 than 6 years after the date of enactment of this section, 

9 no pesticide, other than a pesticide that is defined as a 

10 least toxic pesticide under this subsection, shall be used 

11 in a school or on school grounds unless the Administrator 

12 has met the deadlines and requirements of this section. 

13 ‘‘(r) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to carry out this section 

15 $7,000,000 for each of fiscal years 2004 through 2008.’’.

16 SEC. 1413. CONFORMING AMENDMENT. 

17 The table of contents in section 1(b) of the Federal 

18 Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 

19 prec. 121) is amended by striking the items relating to 

20 sections 30 through 32 and inserting the following:

‘‘Sec. 30. Minimum requirements for training of maintenance applicators and 

service technicians. 

‘‘Sec. 31. Environmental Protection Agency minor use program. 

‘‘Sec. 32. Department of Agriculture minor use program. 

‘‘(a) In general. 

‘‘(b)(1) Minor use pesticide data. 

‘‘(2) Minor Use Pesticide Data Revolving Fund. 

‘‘Sec. 33. Integrated pest management systems for schools. 

‘‘(a) Definitions. 

‘‘(1) Board. 

‘‘(2) Contact person. 

‘‘(3) Crack and crevice treatment. 
215

•HR 936 IH 

‘‘(4) Emergency. 

‘‘(5) Fund. 

‘‘(6) Integrated pest management system. 

‘‘(7) Least toxic pesticides. 

‘‘(8) List. 

‘‘(9) Local educational agency. 

‘‘(10) Official. 

‘‘(11) Person. 

‘‘(12) Pesticide. 

‘‘(13) School. 

‘‘(14) School grounds. 

‘‘(15) Space spraying. 

‘‘(16) Staff member. 

‘‘(17) State educational agency. 

‘‘(18) Universal notification. 

‘‘(b) Integrated pest management systems. 

‘‘(1) In general. 

‘‘(2) Implementation. 

‘‘(3) State programs. 

‘‘(4) Application to schools and school grounds. 

‘‘(5) Application of pesticides when schools in use.

‘‘(c) National School Integrated Pest Management Advisory Board. 

‘‘(1) In general. 

‘‘(2) Composition of Board. 

‘‘(3) Appointment. 

‘‘(4) Term. 

‘‘(5) Meetings. 

‘‘(6) Compensation. 

‘‘(7) Chairperson. 

‘‘(8) Quorum. 

‘‘(9) Decisive votes. 

‘‘(10) Administration. 

‘‘(11) Responsibilities of the Board. 

‘‘(12) Requirements. 

‘‘(13) Petitions. 

‘‘(14) Periodic review. 

‘‘(15) Confidentiality. 

‘‘(d) List of least toxic pesticides. 

‘‘(1) In general. 

‘‘(2) Procedure for evaluating pesticide use. 

‘‘(e) Office of Pesticide Programs. 

‘‘(1) Establishment. 

‘‘(2) Duties. 

‘‘(f) Contact person. 

‘‘(1) In general. 

‘‘(2) Duties. 

‘‘(3) Pesticide use data. 

‘‘(g) Notice of integrated pest management system. 

‘‘(1) In general. 

‘‘(2) Contents. 

‘‘(3) Use of pesticides. 

‘‘(4) New employees and students. 

‘‘(h) Use of pesticides. 

‘‘(1) In general. 

‘‘(2) Prior notification of parents, guardians, and staff members. 
216

•HR 936 IH 

‘‘(3) Posting of signs. 

‘‘(4) Administration. 

‘‘(5) Emergencies. 

‘‘(6) Drift of pesticides onto school grounds. 

‘‘(i) Meetings. 

‘‘(1) In general. 

‘‘(2) Emergency meetings. 

‘‘(j) Investigations and orders. 

‘‘(1) In general. 

‘‘(2) Preliminary order. 

‘‘(3) Objections to preliminary order. 

‘‘(4) Hearing. 

‘‘(5) Final order. 

‘‘(6) Settlement agreement. 

‘‘(7) Costs. 

‘‘(8) Judicial review and venue. 

‘‘(k) Civil penalty. 

‘‘(1) In general. 

‘‘(2) Transfer to Trust Fund. 

‘‘(l) Integrated Pest Management Trust Fund. 

‘‘(1) Establishment. 

‘‘(2) Expenditures from Fund. 

‘‘(3) Investment of amounts. 

‘‘(4) Transfers of amounts. 

‘‘(5) Acceptance and use of donations. 

‘‘(m) Employee protection. 

‘‘(1) In general. 

‘‘(2) Complaints. 

‘‘(3) Remedial action. 

‘‘(n) Grants. 

‘‘(1) In general. 

‘‘(2) Amount. 

‘‘(o) Relationship to State and local requirements. 

‘‘(p) Regulations. 

‘‘(q) Restriction on pesticide use. 

‘‘(r) Authorization of appropriations. 

‘‘Sec. 34. Severability. 

‘‘Sec. 35. Authorization of appropriations.’’.

1 SEC. 1414. EFFECTIVE DATE. 

2 This chapter and the amendments made by this chap3 ter take effect on October 1, 2003.
217

•HR 936 IH 

1 TITLE II—HEALTHY START—SUP2 PORT FOR HEALTHY DEVEL3 OPMENT 

4 Subtitle A—Promotion of State and 

5 Local Support 

6 SEC. 2001. STATE AND LOCAL PARENTING SUPPORT AND 

7 EDUCATION GRANT PROGRAM. 

8 (a) STATE ALLOTMENTS.—

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

10 Human Services (referred to in this section as the 

11 ‘‘Secretary’’) shall make grants, from allotments 

12 made under paragraph (2), to eligible States to sup13 port parenting support and education programs. 

14 (2) ALLOTMENTS.—From the funds appro15 priated under subsection (h) for a fiscal year, the 

16 Secretary shall allot to each State an amount that 

17 bears the same relationship to the funds as the total 

18 number of children in the State bears to the total 

19 number of children in all States, but no State shall 

receive less than 1 20 ⁄2 of 1 percent of the funds. 

21 (3) RESERVATION.—

22 (A) IN GENERAL.—For each State in 

23 which the population of Indians (including Alas24 ka Natives) is more than 2 percent of the popu25 lation of the State, the Governor of the State 
218

•HR 936 IH 

1 shall reserve for Indian tribes 2 percent of the 

2 funds received through an allotment made 

3 under paragraph (2). 

4 (B) DISTRIBUTION.—

5 (i) IN GENERAL.—Except as described 

6 in clause (ii), from the funds reserved 

7 under subparagraph (A), the Governor 

8 shall allocate to each Indian tribe in the 

9 State an amount that bears the same rela10 tionship to the funds as the total number 

11 of children in the tribe bears to the total 

12 number of children in all Indian tribes in 

13 the State. 

14 (ii) ALASKA.—The Governor of Alas15 ka shall allocate the funds reserved under 

16 subparagraph (A) for Indian tribes in 

17 Alaska to the nonprofit entities described 

18 in section 419(4)(B) of the Social Security 

19 Act (42 U.S.C. 619(4)(B)). The Governor 

20 shall allocate to each region of the State, 

21 for such entities, an amount that bears the 

22 same relationship to the funds as the total 

23 number of Alaska Native children in the 

24 region bears to the total number of Alaska 

25 Native children in all regions of the State. 
219

•HR 936 IH 

1 (C) DEFINITIONS.—In this paragraph: 

2 (i) ALASKA NATIVE.—The term 

3 ‘‘Alaska Native’’ has the meaning given 

4 the term ‘‘Native’’ in section 3 of the Alas5 ka Native Claims Settlement Act (43 

6 U.S.C. 1602). 

7 (ii) INDIAN; INDIAN TRIBE.—The 

8 terms ‘Indian’ and ‘Indian tribe’ have the 

9 meanings given the terms in section 4 of 

10 the Indian Self-Determination and Edu11 cation Assistance Act (25 U.S.C. 450b). 

12 (b) STATE PARENTING SUPPORT AND EDUCATION

13 COUNCILS.—

14 (1) IN GENERAL.—To be eligible to receive a 

15 grant under subsection (a), the Governor of each 

16 State shall appoint or designate an existing entity 

17 (as of the date of the appointment or designation) 

18 to serve as a State Parenting Support and Edu19 cation Council (referred to in this section as the 

20 ‘‘Council’’), which shall include—

21 (A) representatives of parents; 

22 (B) representatives of the State govern23 ment; 

24 (C) bipartisan representation from the 

25 State legislature; 
220

•HR 936 IH 

1 (D) representatives from communities; and 

2 (E) representatives of children’s organiza3 tions interested in promoting parenting support 

4 and education programs. 

5 (2) RESPONSIBILITIES.—

6 (A) ASSESSMENT.—The Council shall con7 duct a needs and resources assessment of par8 enting support and education programs in the 

9 State to—

10 (i) determine areas in which such pro11 grams are lacking or inadequate; and 

12 (ii) identify the additional programs 

13 that are needed and the programs that re14 quire additional resources. 

15 (B) GRANTS.—On completion of the as16 sessment, the Council for a State may use the 

17 grant received by the State under subsection (a) 

18 to make grants under subsection (c) in a man19 ner that takes into account the results of the 

20 assessment. 

21 (c) GRANTS TO STATE AND LOCAL AGENCIES AND

22 ENTITIES.—

23 (1) IN GENERAL.—The Council may carry out 

24 a program under which the Council makes grants to 

25 State agencies to provide parenting support and edu-
221

•HR 936 IH 

1 cation programs on a statewide basis, or to local 

2 agencies (including schools) and nonprofit service 

3 providers (including faith-based organizations) to 

4 provide parenting support and education programs. 

5 (2) APPLICATIONS.—To be eligible to receive a 

6 grant under this subsection, an agency or entity 

7 shall submit an application to a Council at such 

8 time, in such manner, and containing such informa9 tion as the Council may require. 

10 (d) LOCAL USE OF FUNDS.—An agency or entity 

11 that receives a grant under subsection (c) may use the 

12 funds made available through the grant to carry out par13 enting support and education programs that—

14 (1) provide parenting support to promote early 

15 brain development and childhood development and 

16 education, including—

17 (A) providing assistance to schools to offer 

18 classroom instruction on brain stimulation, 

19 child development, and early childhood edu20 cation; 

21 (B) distributing materials developed by en22 tities that reflect best parenting practices; 

23 (C) developing and distributing referral in24 formation on programs and services available to 
222

•HR 936 IH 

1 children and families at the local level, includ2 ing information on eligibility criteria; 

3 (D) conducting voluntary hospital visits for 

4 postpartum women and in-home visits for fami5 lies with infants, toddlers, or newly adopted 

6 children to provide hands-on training and one7 on-one instruction on brain stimulation, child 

8 development, and early childhood education; 

9 and 

10 (E) carrying out parenting education pro11 grams, including training programs, with re12 spect to best parenting practices; 

13 (2) provide parenting support for parents of 

14 adolescents and youth, including providing funds for 

15 services and support for parents and other care16 givers of adolescents and youth being served by a 

17 range of education, social service, mental health, 

18 health, runaway, and homeless youth programs, 

19 which parenting support—

20 (A) may be provided by the Boys and Girls 

21 Club, the YMCA, the YWCA, entities that pro22 vide after school programs, entities that provide 

23 4-H programs, or other community based orga24 nizations; and 
223

•HR 936 IH 

1 (B) may include providing parent-caregiver 

2 support groups, peer support groups, parent 

3 education classes, seminars or discussion groups 

4 on problems facing adolescents and youth, or 

5 advocates and mentors to help parents under6 stand and work with schools, the courts, and 

7 various treatment programs; or 

8 (3) provide parenting support and education re9 source centers, including—

10 (A) centers that may serve as a single 

11 point of contact for the provision to children 

12 and their families of comprehensive services, 

13 which—

14 (i) shall include services available to 

15 children from Federal, State, and local 

16 government agencies and nonprofit organi17 zations; and 

18 (ii) may include child care, respite 

19 care, pediatric care, child abuse prevention 

20 programs, nutrition programs, parent 

21 training, infant and child cardiopulmonary 

22 resuscitation programs, safety training, 

23 caregiver training and education, and other 

24 related programs; 
224

•HR 936 IH 

1 (B) centers that provide a national toll-free 

2 parent hotline that provides 24-hour consulta3 tion and advice, on an anonymous basis, includ4 ing referrals to local community-based services; 

5 and 

6 (C) centers that provide respite care for 

7 parents with children with special needs, single 

8 mothers, and parents with at-risk youth. 

9 (e) REPORTING.—Each agency or entity that receives 

10 a grant under this section shall prepare and submit to the 

11 Council every 2 years a report describing the program that 

12 the agency or entity carried out under this section, the 

13 number of parents and children served, and the success 

14 of the program in supporting and educating parents using 

15 specific performance measures. 

16 (f) ADMINISTRATIVE COSTS.—Not more than 5 per17 cent of the amount made available through a grant re18 ceived by a State under subsection (a) may be used for 

19 the administrative expenses of the State Council in imple20 menting the grant program described in subsection (c). 

21 (g) SUPPLEMENT NOT SUPPLANT.—Funds appro22 priated pursuant to this section shall be used to supple23 ment and not supplant other Federal, State, and local 

24 public funds expended for parenting support and edu25 cation programs. 
225

•HR 936 IH 

1 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to carry out this section 

3 $100,000,000 for each of fiscal years 2004 and 2005, 

4 $200,000,000 for each of fiscal years 2006 and 2007, and 

5 $300,000,000 for fiscal year 2008. 

6 (i) DEFINITION.—In this section, the term ‘‘child’’ 

7 means an individual who is younger than age 18. 

8 Subtitle B—Family and Medical 

9 Leave Expansion 

10 SEC. 2101. SHORT TITLE. 

11 This subtitle may be cited as the ‘‘Family and Med12 ical Leave Expansion Act’’. 

13 SEC. 2102. FINDINGS. 

14 Congress makes the following findings: 

15 (1) Since the enactment of the Family and 

16 Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.), 

17 more than 35,000,000 Americans have taken leave 

18 for family or medical reasons. 

19 (2) Of those taking leave under the Family and 

20 Medical Leave Act of 1993, 52 percent took the 

21 leave for their own serious health conditions, and 26 

22 percent took the leave to care for a new child or for 

23 maternity disability reasons. 

24 (3) While the leave provided by the Family and 

25 Medical Leave Act of 1993 has proven to be a crit-
226

•HR 936 IH 

1 ical resource for millions of Americans, too many 

2 people are left behind because the Act provides only 

3 unpaid leave. 

4 (4) According to a 2000 Department of Labor 

5 survey—

6 (A) 3,500,000 Americans needed family 

7 and medical leave but could not afford to take 

8 time off without pay; 

9 (B) nearly four-fifths (78 percent) of those 

10 surveyed who needed the leave but did not take 

11 it said they could not afford unpaid leave; 

12 (C) nine percent of those taking family and 

13 medical leave and receiving less than full pay 

14 during their longest period of the leave had to 

15 go on public assistance to cover their lost 

16 wages; and 

17 (D) seventy-three percent of those taking 

18 family and medical leave had incomes above 

19 $30,000. 

20 (5) In 1970, only 27 percent of mothers with 

21 infants under age 1 were in the labor force. 

22 (6) In 1999, nearly 60 percent of mothers with 

23 infants under age 1 were working. 

24 (7) Worldwide, 128 countries of the 172 re25 sponding to an International Social Security Asso-
227

•HR 936 IH 

1 ciation survey in 1999 provided at least some paid 

2 and job protected maternity leave, and, on average, 

3 provided 16 weeks of basic paid maternity leave. In 

4 some countries, paid maternity leave is mandatory 

5 and in others it is voluntary. 

6 (8) A European Union directive mandating 14 

7 weeks of paid maternity leave was adopted as a 

8 health and safety measure in 1992. 

9 (9) Among the 29 Organization for Economic 

10 Cooperation and Development (OECD) countries, 

11 the most advanced industrialized countries, the aver12 age period of childbirth-related leave (including ma13 ternity, paternity, and parental leaves) is 44 weeks 

14 (10 months) with additional time provided in some 

15 countries for leave to care for a sick child. In those 

16 countries, the average duration of paid childbirth-re17 lated leave is 36 weeks. 

18 (10) In more than half of the OECD countries 

19 (16 countries), the cash benefit provided while on 

20 the paid childbirth-related leave replaces between 70 

21 and 100 percent of prior wages. 

22 (11) Among the OECD countries, adoptive 

23 mothers and adoptive parents are increasingly eligi24 ble for the paid childbirth-related leave. 
228

•HR 936 IH 

1 CHAPTER 1—FAMILY INCOME TO 

2 RESPOND TO SIGNIFICANT TRANSITIONS

3 SEC. 2111. SHORT TITLE. 

4 This chapter may be cited as the ‘‘Family Income to 

5 Respond to Significant Transitions Insurance Act’’.

6 SEC. 2112. PURPOSES. 

7 The purposes of this chapter are—

8 (1) to establish a demonstration program that 

9 supports the efforts of States and political subdivi10 sions to provide partial or full wage replacement, 

11 often referred to as FIRST insurance, to new par12 ents so that the new parents are able to spend time 

13 with a new infant or newly adopted child, and to 

14 other employees; and 

15 (2) to learn about the most effective mecha16 nisms for providing the wage replacement assistance. 

17 SEC. 2113. DEFINITIONS. 

18 In this chapter: 

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

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

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

23 1993 (29 U.S.C. 2611). 
229

•HR 936 IH 

1 (2) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Labor, acting after consultation 

3 with the Secretary of Health and Human Services. 

4 SEC. 2114. DEMONSTRATION PROJECTS. 

5 (a) GRANTS.—

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

7 grants to eligible entities to pay for the Federal 

8 share of the cost of carrying out projects that assist 

9 families by providing, through various mechanisms, 

10 wage replacement for eligible individuals who are re11 sponding to—

12 (A) caregiving needs resulting from the 

13 birth or adoption of a son or daughter; or 

14 (B) other family caregiving needs. 

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

16 grants for periods of 5 years.

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

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

20 (c) USE OF FUNDS.—

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

22 grant under this section may use the funds made 

23 available through the grant to provide partial or full 

24 wage replacement as described in subsection (a) to 

25 eligible individuals—
230

•HR 936 IH 

1 (A) directly; 

2 (B) through an insurance program, such 

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

5 benefit program; 

6 (C) through a private disability or other 

7 insurance plan, or another mechanism provided 

8 by a private employer; or 

9 (D) through another mechanism. 

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

11 this section, the entity shall provide partial or full 

12 wage replacement to eligible individuals for not less 

13 than 6 weeks during a period of leave, or an absence 

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

15 during any 12-month period. Wage replacement 

16 available to an individual under this paragraph shall 

17 be in addition to any compensation from annual or 

18 sick leave that the individual may elect to use during 

19 a period of leave, or an absence from employment, 

20 described in subsection (d)(2), during any 12-month 

21 period. 

22 (3) ADMINISTRATIVE COSTS.—No entity may 

23 use more than 10 percent of the total funds made 

24 available through the grant during the 5-year period 
231

•HR 936 IH 

1 of the grant to pay for the administrative costs re2 lating to a project described in subsection (a). 

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

5 shall—

6 (1) meet such eligibility criteria as the eligible 

7 entity providing the wage replacement may specify 

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

9 (2) be—

10 (A) an individual who is taking leave, 

11 under the Family and Medical Leave Act of 

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

13 State, or local law, or a private plan, for a rea14 son described in subparagraph (A) or (B) of 

15 section 102(a)(1) of the Family and Medical 

16 Leave Act of 1993 (29 U.S.C. 2612(a)(1)); 

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

18 individual who—

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

20 other Federal, State, or local law, or a pri21 vate plan, for a reason described in sub22 paragraph (C), (D), (E), or (F) of section 

23 102(a)(1) of the Family and Medical 

24 Leave Act of 1993 (29 U.S.C. 2612(a)(1)); 

25 or 
232

•HR 936 IH 

1 (ii) leaves employment, and has an ab2 sence from employment, because the indi3 vidual has elected to care for a son or 

4 daughter under age 1; or 

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

6 individual who has an absence from employ7 ment and has other characteristics specified by 

8 the eligible entity in an application described in 

9 subsection (e). 

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

11 under this section, an entity shall submit an application 

12 to the Secretary, at such time, in such manner, and con13 taining such information as the Secretary may require, in14 cluding, at a minimum—

15 (1) a plan for the project to be carried out with 

16 the grant; 

17 (2) information demonstrating that the appli18 cant consulted representatives of employers and em19 ployees, including labor organizations, in developing 

20 the plan; 

21 (3) estimates of the costs and benefits of the 

22 project; 

23 (4)(A) information on the number and type of 

24 families to be covered by the project, and the extent 
233

•HR 936 IH 

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

2 and 

3 (B) information on any criteria or characteris4 tics that the entity will use to determine whether an 

5 individual is eligible for wage replacement under 

6 subsection (a), as described in paragraphs (1) and 

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

8 (5) if the project will expand on State and pri9 vate systems of wage replacement for eligible indi10 viduals, information on the manner in which the 

11 project will expand on the systems; 

12 (6) information demonstrating the manner in 

13 which the wage replacement assistance provided 

14 through the project will assist families in which an 

15 individual takes leave or is absent from employment 

16 as described in subsection (d)(2); and 

17 (7) an assurance that the applicant will partici18 pate in efforts to evaluate the effectiveness of the 

19 project. 

20 (f) SELECTION CRITERIA.—In selecting entities to re21 ceive grants for projects under this section, the Secretary 

22 shall—

23 (1) take into consideration—

24 (A) the scope of the proposed projects; 
234

•HR 936 IH 

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

2 financial soundness of the proposed projects;

3 (C) the extent to which the proposed 

4 projects would expand access to wage replace5 ment in response to family caregiving needs, 

6 particularly for low-wage employees, in the area 

7 served by the grant; and 

8 (D) the benefits that would be offered to 

9 families and children through the proposed 

10 projects; and 

11 (2) to the extent feasible, select entities pro12 posing projects that utilize diverse mechanisms, in13 cluding expansion of State unemployment compensa14 tion benefit programs, and establishment or expan15 sion of State temporary disability insurance pro16 grams, to provide the wage replacement. 

17 (g) FEDERAL SHARE.—

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

19 cost described in subsection (a) shall be—

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

21 grant period; 

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

23 period; 

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

25 period; and 
235

•HR 936 IH 

1 (D) 20 percent for each subsequent year. 

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

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

4 evaluated, including plant, equipment, and services 

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

6 sources, or Federal sources other than this chapter. 

7 (h) SUPPLEMENT NOT SUPPLANT.—Funds appro8 priated pursuant to the authority of this chapter shall be 

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

10 and local public funds and private funds expended to pro11 vide wage replacement. 

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

13 chapter shall be construed to supersede, preempt, or other14 wise infringe on the provisions of any collective bargaining 

15 agreement or any employment benefit program or plan 

16 that provides greater rights to employees than the rights 

17 established under this chapter. 

18 SEC. 2115. NOTIFICATION. 

19 An eligible entity that provides partial or full wage 

20 replacement to an eligible individual under this chapter 

21 shall notify (in a form and manner prescribed by the Sec22 retary)—

23 (1) the employer of the individual of the 

24 amount of the wage replacement provided; and 
236

•HR 936 IH 

1 (2) the individual and the employer of the indi2 vidual that the employer shall count an appropriate 

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

4 the Family and Medical Leave Act of 1993 (29 

5 U.S.C. 2612(g)), as added by section 2118, against 

6 the total amount of leave (if any) to which the em7 ployee is entitled under section 102(a)(1) of that Act 

8 (29 U.S.C. 2612(a)(1)). 

9 SEC. 2116. EVALUATIONS AND REPORTS. 

10 (a) AVAILABLE FUNDS.—The Secretary shall use not 

11 more than 2 percent of the funds made available under 

12 section 2117 to carry out this section. 

13 (b) EVALUATIONS.—The Secretary shall, directly or 

14 by contract, evaluate the effectiveness of projects carried 

15 out with grants made under section 2114, including con16 ducting—

17 (1) research relating to the projects, including 

18 research comparing—

19 (A) the scope of the projects, including the 

20 type of insurance or other wage replacement 

21 mechanism used, the method of financing used, 

22 the eligibility requirements, the level of the 

23 wage replacement benefit provided (such as the 

24 percentage of salary replaced), and the length 

25 of the benefit provided, for the projects; 
237

•HR 936 IH 

1 (B) the utilization of the projects, includ2 ing the characteristics of individuals who ben3 efit from the projects, particularly low-wage 

4 workers, and factors that determine the ability 

5 of eligible individuals to obtain wage replace6 ment through the projects; and 

7 (C) the costs of and savings achieved by 

8 the projects, including the cost-effectiveness of 

9 the projects and their benefits for children and 

10 families; 

11 (2) analysis of the overall need for wage re12 placement; and 

13 (3) analysis of the impact of the projects on the 

14 overall availability of wage replacement. 

15 (c) REPORTS.—

16 (1) INITIAL REPORT.—Not later than 3 years 

17 after the beginning of the grant period for the first 

18 grant made under section 2114, the Secretary shall 

19 prepare and submit to Congress a report that con20 tains information resulting from the evaluations con21 ducted under subsection (b). 

22 (2) SUBSEQUENT REPORTS.—Not later than 4 

23 years after the beginning of that grant period, and 

24 annually thereafter, the Secretary shall prepare and 

25 submit to Congress a report that contains—
238

•HR 936 IH 

1 (A) information resulting from the evalua2 tions conducted under subsection (b); and 

3 (B) usage data for the demonstration 

4 projects, for the most recent year for which the 

5 data are available. 

6 SEC. 2117. AUTHORIZATION OF APPROPRIATIONS. 

7 There are authorized to be appropriated to carry out 

8 this chapter $400,000,000 for fiscal year 2004 and such 

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

10 SEC. 2118. TECHNICAL AND CONFORMING AMENDMENTS. 

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

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

13 by adding at the end the following: 

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

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

16 entity provides full wage replacement to an employee 

17 for a period under chapter 1 of the Family and Med18 ical Leave Expansion Act, the employee’s employer 

19 shall count an amount of leave, equal to that period, 

20 against the total amount of leave (if any) to which 

21 the employee is entitled under subsection (a)(1). 

22 ‘‘(2) PARTIAL WAGE REPLACEMENT.—If an eli23 gible entity provides partial wage replacement to an 

24 employee for a period under chapter 1 of the Family 
239

•HR 936 IH 

1 and Medical Leave Expansion Act, the employee’s 

2 employer shall—

3 ‘‘(A) total the amount of partial wage re4 placement provided for that period; 

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

6 amount of full wage replacement provided for a 

7 proportionately reduced period; and 

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

9 the period described in subparagraph (B), 

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

11 which the employee is entitled under subsection 

12 (a)(1).’’. 

13 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

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

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

16 ‘‘for leave’’ and inserting ‘‘for any unpaid leave’’.

17 CHAPTER 2—FAMILY FRIENDLY 

18 WORKPLACES 

19 SEC. 2121. SHORT TITLE. 

20 This chapter may be cited as the ‘‘Family and Med21 ical Leave Fairness Act of 2003’’.

22 SEC. 2122. COVERAGE OF EMPLOYEES. 

23 Paragraphs (2)(B)(ii) and (4)(A)(i) of section 101 of 

24 the Family and Medical Leave Act of 1993 (29 U.S.C. 
240

•HR 936 IH 

1 2611(2)(B)(ii) and (4)(A)(i)) are amended by striking 

2 ‘‘50’’ each place it appears and inserting ‘‘25’’. 

3 CHAPTER 3—EMPLOYMENT PROTECTION 

4 FOR BATTERED WOMEN 

5 SEC. 2131. ENTITLEMENT TO LEAVE FOR ADDRESSING DO6 MESTIC VIOLENCE FOR NON-FEDERAL EM7 PLOYEES. 

8 (a) DEFINITIONS.—Section 101 of the Family and 

9 Medical Leave Act of 1993 (29 U.S.C. 2611) is amended 

10 by adding at the end the following: 

11 ‘‘(14) ADDRESSING DOMESTIC VIOLENCE AND

12 ITS EFFECTS.—The term ‘addressing domestic vio13 lence and its effects’ means—

14 ‘‘(A) being unable to attend or perform 

15 work due to an incident of domestic violence; 

16 ‘‘(B) seeking medical attention for or re17 covering from injuries caused by domestic vio18 lence; 

19 ‘‘(C) seeking legal assistance or remedies, 

20 including communicating with the police or an 

21 attorney, or participating in any legal pro22 ceeding, related to domestic violence; 

23 ‘‘(D) obtaining services from a domestic vi24 olence shelter or program or rape crisis center 

25 as a result of domestic violence; 
241

•HR 936 IH 

1 ‘‘(E) obtaining psychological counseling re2 lated to experiences of domestic violence; 

3 ‘‘(F) participating in safety planning and 

4 other actions to increase safety from future do5 mestic violence, including temporary or perma6 nent relocation; and 

7 ‘‘(G) participating in any other activity ne8 cessitated by domestic violence that must be un9 dertaken during the hours of employment in10 volved. 

11 ‘‘(15) DOMESTIC VIOLENCE.—The term ‘domes12 tic violence’ means domestic violence, and dating vio13 lence, as such terms are defined in section 2105 of 

14 the Omnibus Crime Control and Safe Streets Act of 

15 1968 (42 U.S.C. 3796hh–4).’’. 

16 (b) LEAVE REQUIREMENT.—Section 102 of the Fam17 ily and Medical Leave Act of 1993 (29 U.S.C. 2612) is 

18 amended—

19 (1) in subsection (a)(1), by adding at the end 

20 the following:

21 ‘‘(E) In order to care for the son, daugh22 ter, or parent of the employee, if such son, 

23 daughter, or parent is addressing domestic vio24 lence and its effects. 
242

•HR 936 IH 

1 ‘‘(F) Because the employee is addressing 

2 domestic violence and its effects, which make 

3 the employee unable to perform the functions of 

4 the position of such employee.’’; 

5 (2) in subsection (b), by adding at the end the 

6 following: 

7 ‘‘(3) DOMESTIC VIOLENCE.—Leave under sub8 paragraph (E) or (F) of subsection (a)(1) may be 

9 taken by an eligible employee intermittently or on a 

10 reduced leave schedule. The taking of leave intermit11 tently or on a reduced leave schedule pursuant to 

12 this paragraph shall not result in a reduction in the 

13 total amount of leave to which the employee is enti14 tled under subsection (a) beyond the amount of leave 

15 actually taken.’’; and 

16 (3) in subsection (d)(2)(B), by striking ‘‘(C) or 

17 (D)’’ and inserting ‘‘(C), (D), (E), or (F)’’. 

18 (c) CERTIFICATION.—Section 103 of the Family and 

19 Medical Leave Act of 1993 (29 U.S.C. 2613) is amend20 ed—

21 (1) in the title of the section, by inserting be22 fore the period the following: ‘‘; CONFIDEN23 TIALITY’’; and 

24 (2) by adding at the end the following: 
243

•HR 936 IH 

1 ‘‘(f) DOMESTIC VIOLENCE.—In determining if an em2 ployee meets the requirements of subparagraph (E) or (F) 

3 of section 102(a)(1), the employer of an employee may re4 quire the employee to provide—

5 ‘‘(1) a written statement describing the domes6 tic violence and its effects; 

7 ‘‘(2) documentation of the domestic violence in8 volved, such as a police or court record, or docu9 mentation from a shelter worker, an employee of a 

10 domestic violence program, an attorney, a member 

11 of the clergy, or a medical or other professional, 

12 from whom the employee has sought assistance in 

13 addressing domestic violence and its effects; or 

14 ‘‘(3) other corroborating evidence, such as a 

15 statement from any other individual with knowledge 

16 of the circumstances that provide the basis for the 

17 claim of domestic violence, or physical evidence of 

18 domestic violence, such as a photograph, torn or 

19 bloody clothing, or any other damaged property. 

20 ‘‘(g) CONFIDENTIALITY.—All evidence provided to 

21 the employer under subsection (f) of domestic violence ex22 perienced by an employee or the son, daughter, or parent 

23 of an employee, including a statement of an employee, any 

24 other documentation or corroborating evidence, and the 

25 fact that an employee has requested leave for the purpose 
244

•HR 936 IH 

1 of addressing, or caring for a son, daughter, or parent who 

2 is addressing, domestic violence and its effects, shall be 

3 retained in the strictest confidence by the employer, except 

4 to the extent that disclosure is requested, or consented to, 

5 by the employee for the purpose of—

6 ‘‘(1) protecting the safety of the employee or a 

7 family member or co-worker of the employee; or 

8 ‘‘(2) assisting in documenting domestic violence 

9 for a court or agency.’’. 

10 (d) TABLE OF CONTENTS.—The table of contents in 

11 section 1(b) of the Family and Medical Leave Act of 1993 

12 (29 U.S.C. prec. 2601) is amended by striking the item 

13 relating to section 103 and inserting the following:

‘‘Sec. 103. Certification; confidentiality.’’.

14 SEC. 2132. ENTITLEMENT TO LEAVE FOR ADDRESSING DO15 MESTIC VIOLENCE FOR FEDERAL EMPLOY16 EES. 

17 (a) DEFINITIONS.—Section 6381 of title 5, United 

18 States Code, is amended—

19 (1) at the end of paragraph (5), by striking 

20 ‘‘and’’;

21 (2) in paragraph (6), by striking the period and 

22 inserting a semicolon; and 

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

24 ‘‘(7) the term ‘addressing domestic violence and 

25 its effects’ has the meaning given the term in section 
245

•HR 936 IH 

1 101 of the Family and Medical Leave Act of 1993 

2 (29 U.S.C. 2611); and 

3 ‘‘(8) the term ‘domestic violence’ means domes4 tic violence, and dating violence, as such terms are 

5 defined in section 2105 of the Omnibus Crime Con6 trol and Safe Streets Act of 1968 (42 U.S.C. 

7 3796hh–4).’’. 

8 (b) LEAVE REQUIREMENT.—Section 6382 of title 5, 

9 United States Code, is amended—

10 (1) in subsection (a)(1), by adding at the end 

11 the following: 

12 ‘‘(E) In order to care for the son, daughter, or 

13 parent of the employee, if such son, daughter, or 

14 parent is addressing domestic violence and its ef15 fects. 

16 ‘‘(F) Because the employee is addressing do17 mestic violence and its effects, which make the em18 ployee unable to perform the functions of the posi19 tion of such employee.’’; 

20 (2) in subsection (b), by adding at the end the 

21 following: 

22 ‘‘(3) DOMESTIC VIOLENCE.—Leave under sub23 paragraph (E) or (F) of subsection (a)(1) may be 

24 taken by an employee intermittently or on a reduced 

25 leave schedule. The taking of leave intermittently or 
246

•HR 936 IH 

1 on a reduced leave schedule pursuant to this para2 graph shall not result in a reduction in the total 

3 amount of leave to which the employee is entitled 

4 under subsection (a) beyond the amount of leave ac5 tually taken.’’; and 

6 (3) in subsection (d), by striking ‘‘(C), or (D)’’ 

7 and inserting ‘‘(C), (D), (E), or (F)’’. 

8 (c) CERTIFICATION.—Section 6383 of title 5, United 

9 States Code, is amended—

10 (1) in the title of the section, by adding at the 

11 end the following: ‘‘; confidentiality’’; and 

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

13 ‘‘(f) In determining if an employee meets the require14 ments of subparagraph (E) or (F) of section 6382(a)(1), 

15 the employing agency of an employee may require the em16 ployee to provide—

17 ‘‘(1) a written statement describing the domes18 tic violence and its effects; 

19 ‘‘(2) documentation of the domestic violence in20 volved, such as a police or court record, or docu21 mentation from a shelter worker, an employee of a 

22 domestic violence program, an attorney, a member 

23 of the clergy, or a medical or other professional, 

24 from whom the employee has sought assistance in 

25 addressing domestic violence and its effects; or 
247

•HR 936 IH 

1 ‘‘(3) other corroborating evidence, such as a 

2 statement from any other individual with knowledge 

3 of the circumstances that provide the basis for the 

4 claim of domestic violence, or physical evidence of 

5 domestic violence, such as a photograph, torn or 

6 bloody clothing, or other damaged property. 

7 ‘‘(g) All evidence provided to the employing agency 

8 under subsection (f) of domestic violence experienced by 

9 an employee or the son, daughter, or parent of an em10 ployee, including a statement of an employee, any other 

11 documentation or corroborating evidence, and the fact 

12 that an employee has requested leave for the purpose of 

13 addressing, or caring for a son, daughter, or parent who 

14 is addressing, domestic violence and its effects, shall be 

15 retained in the strictest confidence by the employing agen16 cy, except to the extent that disclosure is requested, or 

17 consented to, by the employee for the purpose of—

18 ‘‘(1) protecting the safety of the employee or a 

19 family member or co-worker of the employee; or 

20 ‘‘(2) assisting in documenting domestic violence 

21 for a court or agency.’’. 

22 (d) TABLE OF SECTIONS.—The table of sections for 

23 chapter 63 of title 5, United States Code, is amended by 

24 striking the item relating to section 6383 and inserting 

25 the following:

‘‘6383. Certification; confidentiality.’’.
248

•HR 936 IH 

1 SEC. 2133. EXISTING LEAVE USABLE FOR DOMESTIC VIO2 LENCE. 

3 (a) DEFINITIONS.—In this section: 

4 (1) ADDRESSING DOMESTIC VIOLENCE AND ITS

5 EFFECTS.—The term ‘‘addressing domestic violence 

6 and its effects’’ has the meaning given the term in 

7 section 101 of the Family and Medical Leave Act of 

8 1993 (29 U.S.C. 2611), as amended by section 

9 2131(a). 

10 (2) EMPLOYEE.—The term ‘‘employee’’ means 

11 any person employed by an employer. In the case of 

12 an individual employed by a public agency, such 

13 term means an individual employed as described in 

14 section 3(e) of the Fair Labor Standards Act of 

15 1938 (29 U.S.C. 203(e)). 

16 (3) EMPLOYER.—The term ‘‘employer’’—

17 (A) means any person engaged in com18 merce or in any industry or activity affecting 

19 commerce who employs individuals, if such per20 son is also subject to the Family and Medical 

21 Leave Act of 1993 (29 U.S.C. 2601 et seq.) or 

22 to any provision of a State or local law, collec23 tive bargaining agreement, or employment bene24 fits program or plan, addressing paid or unpaid 

25 leave from employment (including family, med-
249

•HR 936 IH 

1 ical, sick, annual, personal, or similar leave); 

2 and 

3 (B) includes any person acting directly or 

4 indirectly in the interest of an employer in rela5 tion to any employee, and includes a public 

6 agency, who is subject to a law, agreement, pro7 gram, or plan described in subparagraph (A), 

8 but does not include any labor organization 

9 (other than when acting as an employer) or 

10 anyone acting in the capacity of officer or agent 

11 of such labor organization. 

12 (4) EMPLOYMENT BENEFITS.—The term ‘‘em13 ployment benefits’’ has the meaning given the term 

14 in section 101 of the Family and Medical Leave Act 

15 of 1993 (29 U.S.C. 2611). 

16 (5) PARENT; SON OR DAUGHTER.—The terms 

17 ‘‘parent’’ and ‘‘son or daughter’’ have the meanings 

18 given the terms in section 101 of the Family and 

19 Medical Leave Act of 1993 (29 U.S.C. 2611). 

20 (6) PUBLIC AGENCY.—The term ‘‘public agen21 cy’’ has the meaning given the term in section 3 of

22 the Fair Labor Standards Act of 1938 (29 U.S.C. 

23 203). 

24 (b) USE OF EXISTING LEAVE.—An employee who is 

25 entitled to take paid or unpaid leave (including family, 
250

•HR 936 IH 

1 medical, sick, annual, personal, or similar leave) from em2 ployment, pursuant to State or local law, a collective bar3 gaining agreement, or an employment benefits program or 

4 plan, shall be permitted to use such leave for the purpose 

5 of addressing domestic violence and its effects, or for the 

6 purpose of caring for a son or daughter or parent of the 

7 employee, if such son or daughter or parent is addressing 

8 domestic violence and its effects. 

9 (c) CERTIFICATION.—In determining whether an em10 ployee qualifies to use leave as described in subsection (b), 

11 an employer may require a written statement, documenta12 tion of domestic violence, or corroborating evidence con13 sistent with section 103(f) of the Family and Medical 

14 Leave Act of 1993 (29 U.S.C. 2613(f)), as amended by 

15 section 2131(c).

16 (d) CONFIDENTIALITY.—All evidence provided to the 

17 employer under subsection (c) of domestic violence experi18 enced by an employee or the son or daughter or parent 

19 of the employee, including a statement of an employee, 

20 any other documentation or corroborating evidence, and 

21 the fact that an employee has requested leave for the pur22 pose of addressing, or caring for a son or daughter or par23 ent who is addressing, domestic violence and its effects, 

24 shall be retained in the strictest confidence by the em-
251

•HR 936 IH 

1 ployer, except to the extent that disclosure is requested, 

2 or consented to, by the employee for the purpose of—

3 (1) protecting the safety of the employee or a 

4 family member or co-worker of the employee; or 

5 (2) assisting in documenting domestic violence 

6 for a court or agency. 

7 (e) PROHIBITED ACTS.—

8 (1) INTERFERENCE WITH RIGHTS.—

9 (A) EXERCISE OF RIGHTS.—It shall be un10 lawful for any employer to interfere with, re11 strain, or deny the exercise of or the attempt to 

12 exercise, any right provided under this section. 

13 (B) DISCRIMINATION.—It shall be unlaw14 ful for any employer to discharge or in any 

15 other manner discriminate against an individual 

16 for opposing any practice made unlawful by this 

17 section. 

18 (2) INTERFERENCE WITH PROCEEDINGS OR IN19 QUIRIES.—It shall be unlawful for any person to dis20 charge or in any other manner discriminate against 

21 any individual because such individual—

22 (A) has filed any charge, or had instituted 

23 or caused to be instituted any proceeding, 

24 under or related to this section; 
252

•HR 936 IH 

1 (B) has given, or is about to give, any in2 formation in connection with any inquiry or 

3 proceeding relating to any right provided under 

4 this section; or 

5 (C) has testified, or is about to testify, in 

6 any inquiry or proceeding relating to any right 

7 provided under this section. 

8 (f) ENFORCEMENT.—

9 (1) PUBLIC ENFORCEMENT.—The Secretary of 

10 Labor shall have the powers set forth in subsections 

11 (b), (c), (d), and (e) of section 107 of the Family 

12 and Medical Leave Act of 1993 (29 U.S.C. 2617) 

13 for the purpose of public agency enforcement of any 

14 alleged violation of subsection (e) against any em15 ployer. 

16 (2) PRIVATE ENFORCEMENT.—The remedies 

17 and procedures set forth in section 107(a) of the 

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

19 2617(a)) shall be the remedies and procedures pur20 suant to which an employee may initiate a legal ac21 tion against an employer for alleged violations of 

22 subsection (e). 

23 (3) REFERENCES.—For purposes of paragraph 

24 (1) and (2), references in section 107 of the Family 

25 and Medical Leave Act of 1993 (29 U.S.C. 2617) to 
253

•HR 936 IH 

1 section 105 of such Act (29 U.S.C. 2615) shall be 

2 considered to be references to subsection (e). 

3 (4) EMPLOYER LIABILITY UNDER OTHER

4 LAWS.—Nothing in this section shall be construed to 

5 limit the liability of an employer to an employee for 

6 harm suffered relating to the employee’s experience 

7 of domestic violence pursuant to any other Federal 

8 or State law, including a law providing for a legal 

9 remedy. 

10 CHAPTER 4—FEDERAL EMPLOYEES PAID 

11 PARENTAL LEAVE 

12 SEC. 2141. SHORT TITLE. 

13 This chapter may be cited as the ‘‘Federal Employees 

14 Paid Parental Leave Act of 2003’’. 

15 SEC. 2142. DEMONSTRATION PROJECT. 

16 Subchapter V of chapter 63 of title 5, United States 

17 Code, is amended—

18 (1) by redesignating section 6387 as section 

19 6388; and 

20 (2) by inserting after section 6386 the fol21 lowing: 

22 ‘‘§ 6387. Paid leave demonstration project 

23 ‘‘(a) The Office of Personnel Management may, 

24 through an agreement or contract with 1 or more employ25 ing agencies described in subsection (b), conduct under 
254

•HR 936 IH 

1 section 4703 a demonstration project that assists families 

2 by providing paid leave for eligible individuals who are re3 sponding to—

4 ‘‘(1) caregiving needs resulting from the birth 

5 or adoption of a son or daughter; or 

6 ‘‘(2) other family caregiving needs. 

7 ‘‘(b) In carrying out a project under this section, an 

8 employing agency of 1 or more employees shall provide 

9 partial or full paid leave to eligible individuals for not less 

10 than 6 weeks during a period of leave, or an absence from 

11 employment, described in subsection (c)(2), during any 

12 12-month period. Paid leave available to an individual 

13 under this subsection shall be in addition to any annual 

14 or sick leave that the individual may elect to use during 

15 a period of leave, or an absence from employment, de16 scribed in subsection (c)(2), during any 12-month period. 

17 ‘‘(c) To be eligible to receive paid leave under sub18 section (a), an individual shall—

19 ‘‘(1) be an employee who meets such eligibility 

20 criteria as the Office of Personnel Management may 

21 specify in a plan described in section 4703(b); and 

22 ‘‘(2) be—

23 ‘‘(A) an individual who is taking leave, 

24 under this subchapter, or other Federal law, for 
255

•HR 936 IH 

1 a reason described in subparagraph (A) or (B) 

2 of section 6382(a)(1); 

3 ‘‘(B) at the option of the Office of Per4 sonnel Management, an individual who—

5 ‘‘(i) is taking leave, under this sub6 chapter, or other Federal law, for a reason 

7 described in subparagraph (C), (D), (E), 

8 or (F) of section 6382(a)(1); or 

9 ‘‘(ii) leaves employment, and has an 

10 absence from employment, because the in11 dividual has elected to care for a son or 

12 daughter under age 1; or 

13 ‘‘(C) at the option of the Office of Per14 sonnel Management, an individual who has an 

15 absence from employment and has other char16 acteristics specified by the Office of Personnel 

17 Management in a plan described in section 

18 4703(b). 

19 ‘‘(d) An employing agency that provides partial or 

20 full paid leave to an eligible individual under this section 

21 shall notify (in a form and manner prescribed by the Of22 fice of Personnel Management) the individual that the em23 ploying agency shall count an appropriate period of leave, 

24 calculated under section 6382(f), against the total amount 
256

•HR 936 IH 

1 of leave (if any) to which the employee is entitled under 

2 section 6382(a)(1). 

3 ‘‘(e)(1) A demonstration project conducted under this 

4 section shall not be counted toward the 10-project limit 

5 established in section 4703(d)(2). 

6 ‘‘(2) The Office of Personnel Management may pro7 vide a waiver for the demonstration project in accordance 

8 with section 4703, except that section 4703(c)(1) shall not 

9 apply to such a waiver. 

10 ‘‘(f)(1) There are authorized to be appropriated to 

11 carry out this section $400,000,000 for fiscal year 2004 

12 and such sums as may be necessary for each subsequent 

13 fiscal year. 

14 ‘‘(2) Funds appropriated under paragraph (1) may 

15 be allocated as described in section 4704.’’. 

16 SEC. 2143. TECHNICAL AND CONFORMING AMENDMENTS. 

17 (a) IN GENERAL.—Section 6382 of title 5, United 

18 States Code, is amended by adding at the end the fol19 lowing: 

20 ‘‘(f)(1) If an employing agency provides an amount 

21 of full paid leave to an employee for a period under section 

22 6387, the employing agency shall count an amount of 

23 leave, equal to that period, against the total amount of 

24 leave (if any) to which the employee is entitled under sub25 section (a)(1). 
257

•HR 936 IH 

1 ‘‘(2) If an employing agency provides an amount of 

2 partial paid leave to an employee for a period under sec3 tion 6387, the employing agency shall—

4 ‘‘(A) total the amount of partial paid leave 

5 provided for that period; 

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

7 amount of full paid leave provided for a propor8 tionately reduced period; and 

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

10 the period described in subparagraph (B), 

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

12 which the employee is entitled under subsection 

13 (a)(1).’’. 

14 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

15 Section 6382 of title 5, United States Code, is amended—

16 (1) in subsection (c), by striking ‘‘(d),’’ and in17 serting ‘‘(d) or section 6387,’’; and 

18 (2) in subsection (d), by inserting ‘‘any unpaid’’ 

19 after ‘‘substitute for’’. 

20 (c) TABLE OF SECTIONS.—The table of sections for 

21 chapter 63 of title 5, United States Code, is amended by 

22 striking the item relating to section 6387 and inserting 

23 the following:

‘‘6387. Paid leave demonstration project. 

‘‘6388. Regulations.’’.
258

•HR 936 IH 

1 SEC. 2144. EFFECTIVE DATE. 

2 The amendments made by this chapter shall not be 

3 effective with respect to any birth or placement occurring 

4 before the end of the 6-month period beginning on the 

5 date of enactment of this Act.

6 CHAPTER 5—TIME FOR SCHOOLS 

7 SEC. 2151. SHORT TITLE. 

8 This chapter may be cited as the ‘‘Time for Schools 

9 Act of 2003’’. 

10 SEC. 2152. GENERAL REQUIREMENTS FOR LEAVE. 

11 (a) ENTITLEMENT TO LEAVE.—Section 102(a) of the 

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

13 2612(a)) is amended by adding at the end the following: 

14 ‘‘(3) ENTITLEMENT TO SCHOOL INVOLVEMENT

15 LEAVE.—

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

17 103(h), an eligible employee shall be entitled to 

18 a total of 24 hours of leave during any 12-

19 month period to participate in an academic ac20 tivity of a school of a son or daughter of the 

21 employee, such as a parent-teacher conference 

22 or an interview for a school, or to participate in 

23 literacy training under a family literacy pro24 gram.

25 ‘‘(B) DEFINITIONS.—In this paragraph:
259

•HR 936 IH 

1 ‘‘(i) FAMILY LITERACY PROGRAM.—

2 The term ‘family literacy program’ means 

3 a program of services that are of sufficient 

4 intensity in terms of hours, and of suffi5 cient duration, to make sustainable 

6 changes in a family and that integrate all 

7 of the following activities: 

8 ‘‘(I) Interactive literacy activities 

9 between parents and their sons and 

10 daughters. 

11 ‘‘(II) Training for parents on 

12 how to be the primary teacher for 

13 their sons and daughters and full 

14 partners in the education of their sons 

15 and daughters. 

16 ‘‘(III) Parent literacy training. 

17 ‘‘(IV) An age-appropriate edu18 cation program for sons and daugh19 ters. 

20 ‘‘(ii) LITERACY.—The term ‘literacy’, 

21 used with respect to an individual, means 

22 the ability of the individual to speak, read, 

23 and write English, and compute and solve 

24 problems, at levels of proficiency nec25 essary—
260

•HR 936 IH 

1 ‘‘(I) to function on the job, in the 

2 family of the individual, and in soci3 ety; 

4 ‘‘(II) to achieve the goals of the 

5 individual; and 

6 ‘‘(III) to develop the knowledge 

7 potential of the individual. 

8 ‘‘(iii) SCHOOL.—The term ‘school’ 

9 means an elementary school or secondary 

10 school (as such terms are defined in sec11 tion 9101 of the Elementary and Sec12 ondary Education Act of 1965 (20 U.S.C. 

13 7801)), a Head Start program assisted 

14 under the Head Start Act (42 U.S.C. 9831 

15 et seq.), and a child care facility operated 

16 by a provider who meets the applicable 

17 State or local government licensing, certifi18 cation, approval, or registration require19 ments, if any. 

20 ‘‘(4) LIMITATION.—No employee may take 

21 more than a total of 12 workweeks of leave under 

22 paragraphs (1) and (3) during any 12-month pe23 riod.’’.

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

25 U.S.C. 2612(b)(1)) is amended by inserting after the sec-
261

•HR 936 IH 

1 ond sentence the following: ‘‘Leave under subsection 

2 (a)(3) may be taken intermittently or on a reduced leave 

3 schedule.’’. 

4 (c) SUBSTITUTION OF PAID LEAVE.—Section 

5 102(d)(2)(A) of such Act (29 U.S.C. 2612(d)(2)(A)) is 

6 amended by inserting before the period the following: ‘‘, 

7 or for leave provided under subsection (a)(3) for any part 

8 of the 24-hour period of such leave under such sub9 section’’.

10 (d) NOTICE.—Section 102(e) of such Act (29 U.S.C. 

11 2612(e)) is amended by adding at the end the following: 

12 ‘‘(3) NOTICE FOR SCHOOL INVOLVEMENT

13 LEAVE.—In any case in which the necessity for leave 

14 under subsection (a)(3) is foreseeable, the employee 

15 shall provide the employer with not less than 7 days’ 

16 notice, before the date the leave is to begin, of the 

17 employee’s intention to take leave under such sub18 section. If the necessity for the leave is not foresee19 able, the employee shall provide such notice as is 

20 practicable.’’. 

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

22 U.S.C. 2613), as amended by section 2131(c), is further 

23 amended by adding at the end the following: 

24 ‘‘(h) CERTIFICATION FOR SCHOOL INVOLVEMENT

25 LEAVE.—An employer may require that a request for 
262

•HR 936 IH 

1 leave under section 102(a)(3) be supported by a certifi2 cation issued at such time and in such manner as the Sec3 retary may by regulation prescribe.’’. 

4 SEC. 2153. SCHOOL INVOLVEMENT LEAVE FOR CIVIL SERV5 ICE EMPLOYEES. 

6 (a) ENTITLEMENT TO LEAVE.—Section 6382(a) of 

7 title 5, United States Code, is amended by adding at the 

8 end the following: 

9 ‘‘(3)(A) Subject to section 6383(h), an employee shall 

10 be entitled to a total of 24 hours of leave during any 12-

11 month period to participate in an academic activity of a 

12 school of a son or daughter of the employee, such as a 

13 parent-teacher conference or an interview for a school, or 

14 to participate in literacy training under a family literacy 

15 program. 

16 ‘‘(B) In this paragraph: 

17 ‘‘(i) The term ‘family literacy program’ means 

18 a program of services that are of sufficient intensity 

19 in terms of hours, and of sufficient duration, to 

20 make sustainable changes in a family and that inte21 grate all of the following activities: 

22 ‘‘(I) Interactive literacy activities between 

23 parents and their sons and daughters. 

24 ‘‘(II) Training for parents on how to be 

25 the primary teacher for their sons and daugh-
263

•HR 936 IH 

1 ters and full partners in the education of their 

2 sons and daughters. 

3 ‘‘(III) Parent literacy training. 

4 ‘‘(IV) An age-appropriate education pro5 gram for sons and daughters. 

6 ‘‘(ii) The term ‘literacy’, used with respect to 

7 an individual, means the ability of the individual to 

8 speak, read, and write English, and compute and 

9 solve problems, at levels of proficiency necessary—

10 ‘‘(I) to function on the job, in the family 

11 of the individual, and in society; 

12 ‘‘(II) to achieve the goals of the individual; 

13 and 

14 ‘‘(III) to develop the knowledge potential 

15 of the individual. 

16 ‘‘(iii) The term ‘school’ means an elementary 

17 school or secondary school (as such terms are de18 fined in section 9101 of the Elementary and Sec19 ondary Education Act of 1965 (20 U.S.C. 7801)), a 

20 Head Start program assisted under the Head Start 

21 Act (42 U.S.C. 9831 et seq.), and a child care facil22 ity operated by a provider who meets the applicable 

23 State or local government licensing, certification, ap24 proval, or registration requirements, if any.
264

•HR 936 IH 

1 ‘‘(4) No employee may take more than a total of 12 

2 workweeks of leave under paragraphs (1) and (3) during 

3 any 12-month period.’’. 

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

5 amended by inserting after the second sentence the fol6 lowing: ‘‘Leave under subsection (a)(3) may be taken 

7 intermittently or on a reduced leave schedule.’’. 

8 (c) SUBSTITUTION OF PAID LEAVE.—Section 

9 6382(d) of such title is amended by inserting before ‘‘, 

10 except’’ the following: ‘‘, or for leave provided under sub11 section (a)(3) any of the employee’s accrued or accumu12 lated annual leave under subchapter I for any part of the 

13 24-hour period of such leave under such subsection’’. 

14 (d) NOTICE.—Section 6382(e) of such title is amend15 ed by adding at the end the following: 

16 ‘‘(3) In any case in which the necessity for leave 

17 under subsection (a)(3) is foreseeable, the employee shall 

18 provide the employing agency with not less than 7 days’ 

19 notice, before the date the leave is to begin, of the employ20 ee’s intention to take leave under such subsection. If the 

21 necessity for the leave is not foreseeable, the employee 

22 shall provide such notice as is practicable.’’. 

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

24 amended by section 2132(c), is further amended by adding 

25 at the end the following: 
265

•HR 936 IH 

1 ‘‘(h) An employing agency may require that a request 

2 for leave under section 6382(a)(3) be supported by a cer3 tification issued at such time and in such manner as the 

4 Office of Personnel Management may by regulation pre5 scribe.’’. 

6 SEC. 2154. EFFECTIVE DATE. 

7 This chapter takes effect 120 days after the date of 

8 enactment of this Act. 

9 Subtitle C—Health Care for the 

10 Uninsured 

11 SEC. 2201. FAMILYCARE COVERAGE OF PARENTS UNDER 

12 THE MEDICAID PROGRAM AND TITLE XXI. 

13 (a) INCENTIVES TO IMPLEMENT FAMILYCARE COV14 ERAGE.—

15 (1) UNDER MEDICAID.—

16 (A) ESTABLISHMENT OF NEW OPTIONAL

17 ELIGIBILITY CATEGORY.—Section 

18 1902(a)(10)(A)(ii) of the Social Security Act 

19 (42 U.S.C. 1396a(a)(10)(A)(ii)), as amended by 

20 section 1112(a)(1)(A), is amended—

21 (i) by striking ‘‘or’’ at the end of sub22 clause (XVIII); 

23 (ii) by adding ‘‘or’’ at the end of sub24 clause (XIX); and 
266

•HR 936 IH 

1 (iii) by adding at the end the fol2 lowing new subclause: 

3 ‘‘(XX) who are parents described 

4 in subsection (k)(1), but only if the 

5 State meets the conditions described 

6 in subsection (k)(2);’’. 

7 (B) CONDITIONS FOR COVERAGE.—Section 

8 1902 of such Act is further amended by insert9 ing after subsection (j) the following new sub10 section: 

11 ‘‘(k)(1)(A) Parents described in this paragraph are 

12 the parents of an individual who is under 19 years of age 

13 (or such higher age as the State may have elected under 

14 section 1902(l)(1)(D)) and who is eligible and enrolled for 

15 medical assistance under subsection (a)(10)(A), if—

16 ‘‘(i) such parents are not otherwise eligible for 

17 such assistance under such subsection; and 

18 ‘‘(ii) the income of the family that includes such 

19 parents does not exceed an income level specified by 

20 the State consistent with paragraph (2)(B). 

21 ‘‘(B) In this subsection, the term ‘parent’ has the 

22 meaning given the term ‘caretaker’ for purposes of car23 rying out section 1931, and such additional meaning as 

24 defined by the State and approved by the Secretary. 
267

•HR 936 IH 

1 ‘‘(2) The conditions for a State to provide medical 

2 assistance under subsection (a)(10)(A)(ii)(XX) are as fol3 lows: 

4 ‘‘(A) The State has a State child health plan 

5 under title XXI which (whether implemented under 

6 such title or under this title)—

7 ‘‘(i) has an income standard (or will estab8 lish an income standard that is effective at the 

9 time additional allotments are available to the 

10 State under section 2104(d), as amended by the 

11 Leave No Child Behind Act of 2003) for chil12 dren that is at least 200 percent of the poverty 

13 line; and 

14 ‘‘(ii) does not limit the acceptance of appli15 cations, does not use a waiting list for children 

16 who meet eligibility standards to qualify for as17 sistance, and provides benefits to all children in 

18 the State who apply for and meet eligibility 

19 standards. 

20 ‘‘(B) The income level specified under para21 graph (1)(A)(ii) for parents in a family exceeds the 

22 income level applicable under section 1931 but does 

23 not exceed the highest income level applicable to a 

24 child in the family under this title. A State may not 
268

•HR 936 IH 

1 cover such parents with higher family income with2 out covering parents with a lower family income. 

3 ‘‘(3) In the case of a parent described in paragraph 

4 (1) who is also the parent of a child who is eligible and 

5 enrolled for child health assistance under title XXI, the 

6 State may elect (on a uniform basis) to cover all such par7 ents under section 2111 or under subsection (a)(10)(A).’’. 

8 (C) ENHANCED MATCHING FUNDS AVAIL9 ABLE.—Section 1905 of such Act (42 U.S.C. 

10 1396d) is amended—

11 (i) in the fourth sentence of sub12 section (b), by striking ‘‘or subsection 

13 (u)(3)’’ and inserting ‘‘, (u)(3), or (u)(4)’’; 

14 and 

15 (ii) in subsection (u)—

16 (I) by redesignating paragraph 

17 (4) as paragraph (6), and

18 (II) by inserting after paragraph 

19 (3) the following new paragraph: 

20 ‘‘(4) For purposes of subsection (b) and section 

21 2105(a)(1): 

22 ‘‘(A) FAMILYCARE PARENTS.—The expendi23 tures described in this subparagraph are the fol24 lowing: 
269

•HR 936 IH 

1 ‘‘(i) PARENTS.—Expenditures for medical 

2 assistance made available under section 1931, 

3 or under section 1902(a)(10)(A)(ii)(XX) for 

4 parents described in section 1902(k)(1), in a 

5 family the income of which exceeds the income 

6 level applicable under such section 1931 to a 

7 family of the size involved as of January 1, 

8 2003. 

9 ‘‘(ii) CERTAIN PREGNANT WOMEN.—Ex10 penditures for medical assistance for pregnant 

11 women under section 1902(l)(1)(A) in a family 

12 the income of which exceeds the income level 

13 applicable under section 1902(l)(2)(A) to a 

14 family of the size involved as of January 1, 

15 2003.’’. 

16 (D) APPROPRIATION FROM TITLE XXI AL17 LOTMENT FOR CERTAIN MEDICAID EXPANSION

18 COSTS.—Section 2105(a)(1)(C) of such Act (42 

19 U.S.C. 1397ee(a)(1)(C))) is amended by insert20 ing ‘‘and for medical assistance that is attrib21 utable to expenditures described in section 

22 1905(u)(4)(A)’’ before the semicolon. 

23 (E) ONLY COUNTING ENHANCED PORTION

24 FOR COVERAGE OF ADDITIONAL PREGNANT
270

•HR 936 IH 

1 WOMEN.—Section 1905 of such Act (42 U.S.C. 

2 1396d) is amended—

3 (i) in the fourth sentence of sub4 section (b), by inserting ‘‘(except in the 

5 case of expenditures described in sub6 section (u)(5))’’ after ‘‘do not exceed’’; 

7 (ii) in subsection (u), by inserting 

8 after paragraph (4) (as inserted by sub9 paragraph (C)), the following new para10 graph: 

11 ‘‘(5) For purposes of the fourth sentence of sub12 section (b) and section 2105(a), the following payments 

13 under this title do not count against a State’s allotment 

14 under section 2104: 

15 ‘‘(A) REGULAR FMAP FOR EXPENDITURES FOR

16 PREGNANT WOMEN WITH INCOME ABOVE JANUARY

17 1, 2003 INCOME LEVEL AND BELOW 185 PERCENT OF

18 POVERTY.—The portion of the payments made for 

19 expenditures described in paragraph (4)(A)(ii) that 

20 represents the amount that would have been paid if 

21 the enhanced FMAP had not been substituted for 

22 the Federal medical assistance percentage.’’. 

23 (2) UNDER TITLE XXI.—
271

•HR 936 IH 

1 (A) FAMILYCARE COVERAGE.—Title XXI 

2 of such Act is amended by adding at the end 

3 the following new section: 

4 ‘‘SEC. 2111. OPTIONAL FAMILYCARE COVERAGE OF PAR5 ENTS OF TARGETED LOW-INCOME CHILDREN. 

6 ‘‘(a) OPTIONAL COVERAGE.—Notwithstanding any 

7 other provision of this title, a State child health plan may 

8 provide for coverage, through an amendment to its State 

9 child health plan under section 2102, of FamilyCare as10 sistance for targeted low-income parents in accordance 

11 with this section, but only if—

12 ‘‘(1) the State meets the conditions described in 

13 section 1902(k)(2); and 

14 ‘‘(2) the State elects to provide medical assist15 ance under section 1902(a)(10)(A)(ii)(XX) and 

16 elects an applicable income limit that is not lower 

17 than the limit described in subsection (b)(2)(A). 

18 ‘‘(b) DEFINITIONS.—For purposes of this section: 

19 ‘‘(1) FAMILYCARE ASSISTANCE.—The term 

20 ‘FamilyCare assistance’ has the meaning given the 

21 term child health assistance in section 2110(a) as if 

22 any reference to targeted low-income children were 

23 a reference to targeted low-income parents. 

24 ‘‘(2) TARGETED LOW-INCOME PARENT.—The 

25 term ‘targeted low-income parent’ has the meaning 
272

•HR 936 IH 

1 given the term targeted low-income child in section 

2 2110(b) as if the reference to a child were deemed 

3 a reference to a parent (as defined in paragraph (3)) 

4 of the child; except that in applying such section—

5 ‘‘(A) there shall be substituted for the in6 come limit described in paragraph (1)(B)(ii)(I) 

7 the applicable income limit in effect for a tar8 geted low-income child; 

9 ‘‘(B) in paragraph (3), January 1, 2003, 

10 shall be substituted for July 1, 1997; and 

11 ‘‘(C) in paragraph (4), January 1, 2003, 

12 shall be substituted for March 31, 1997. 

13 ‘‘(3) PARENT.—The term ‘parent’ has the 

14 meaning given the term ‘caretaker’ for purposes of 

15 carrying out section 1931, and such additional 

16 meaning as defined by the State and approved by 

17 the Secretary. 

18 ‘‘(4) OPTIONAL TREATMENT OF PREGNANT

19 WOMEN AS PARENTS.—A State child health plan 

20 may treat a pregnant woman who is not otherwise 

21 a parent as a targeted low-income parent for pur22 poses of this section but only if the State has estab23 lished an income level under section 1902(l)(2)(A)(i) 

24 for pregnant women that is at least 185 percent of 
273

•HR 936 IH 

1 the income official poverty line described in such sec2 tion. 

3 ‘‘(c) REFERENCES TO TERMS AND SPECIAL

4 RULES.—In the case of, and with respect to, a State pro5 viding for coverage of FamilyCare assistance to targeted 

6 low-income parents under subsection (a), the following 

7 special rules apply: 

8 ‘‘(1) Any reference in this title (other than sub9 section (b)) to a targeted low-income child is deemed 

10 to include a reference to a targeted low-income par11 ent. 

12 ‘‘(2) Any such reference to child health assist13 ance with respect to such parents is deemed a ref14 erence to FamilyCare assistance. 

15 ‘‘(3) In applying section 2103(e)(3)(B) in the 

16 case of a family provided coverage under this sec17 tion, the limitation on total annual aggregate cost18 sharing shall be applied to the entire family. 

19 ‘‘(4) In applying section 2110(b)(4), any ref20 erence to ‘section 1902(l)(2) or 1905(n)(2) (as se21 lected by a State)’ is deemed a reference to the in22 come level applicable to parents under section 1931, 

23 or, in the case of a pregnant woman described in 

24 subsection (b)(4), the income level established under 

25 section 1902(l)(2)(A).’’. 
274

•HR 936 IH 

1 (B) ADDITIONAL ALLOTMENT FOR STATES

2 PROVIDING FAMILYCARE.—

3 (i) IN GENERAL.—Section 2104 of 

4 such Act (42 U.S.C. 1397dd) is amended 

5 by inserting after subsection (c) the fol6 lowing new subsection: 

7 ‘‘(d) ADDITIONAL ALLOTMENTS FOR STATE PRO8 VIDING FAMILYCARE.—

9 ‘‘(1) APPROPRIATION; TOTAL ALLOTMENT.—

10 For the purpose of providing additional allotments 

11 to States electing to provide FamilyCare coverage 

12 under section 2111, there is appropriated, out of any 

13 money in the Treasury not otherwise appropriated—

14 ‘‘(A) for fiscal year 2004, $2,000,000,000; 

15 ‘‘(B) for fiscal year 2005, $2,000,000,000; 

16 ‘‘(C) for fiscal year 2006, $3,000,000,000; 

17 ‘‘(D) for fiscal year 2007, $3,000,000,000; 

18 ‘‘(E) for fiscal year 2008, $6,000,000,000; 

19 ‘‘(F) for fiscal year 2009, $7,000,000,000; 

20 ‘‘(G) for fiscal year 2010, $8,000,000,000; 

21 ‘‘(H) for fiscal year 2011, $9,000,000,000; 

22 ‘‘(I) for fiscal year 2012, $10,000,000,000; 

23 and 

24 ‘‘(J) for fiscal year 2013 and each fiscal 

25 year thereafter, the amount of the allotment 
275

•HR 936 IH 

1 provided under this paragraph for the preceding 

2 fiscal year increased by the percentage increase 

3 (if any) in the medical care expenditure cat4 egory of the Consumer Price Index for All 

5 Urban Consumers (United States city average). 

6 ‘‘(2) STATE AND TERRITORIAL ALLOTMENTS.—

7 ‘‘(A) IN GENERAL.—In addition to the al8 lotments provided under subsections (b) and 

9 (c), subject to paragraph (3), of the amount 

10 available for the additional allotments under 

11 paragraph (1) for a fiscal year, the Secretary 

12 shall allot to each State with a State child 

13 health plan approved under this title and which 

14 has elected to provide coverage under section 

15 2111 during the fiscal year—

16 ‘‘(i) in the case of such a State other 

17 than a commonwealth or territory de18 scribed in clause (ii), the same proportion 

19 as the proportion of the State’s allotment 

20 under section 2104(b) (determined without 

21 regard to section 2104(f)) to 98.95 percent 

22 of the total amount of the allotments 

23 under such section for such States eligible 

24 for an allotment under this subparagraph 

25 for such fiscal year; and 
276

•HR 936 IH 

1 ‘‘(ii) in the case of a commonwealth or 

2 territory described in section 2104(c)(3), 

3 the same proportion as the proportion of 

4 the commonwealth’s or territory’s allot5 ment under section 2104(c) (determined 

6 without regard to section 2104(f)) to 1.05 

7 percent of the total amount of the allot8 ments under such section for common9 wealths and territories eligible for an allot10 ment under this subparagraph for such fis11 cal year. 

12 ‘‘(B) REDISTRIBUTION OF UNUSED ALLOT13 MENTS.—In applying subsection (f) with re14 spect to additional allotments made available 

15 under this subsection, the procedures estab16 lished under such subsection shall ensure such 

17 additional allotments are only made available to 

18 States which have elected to provide coverage 

19 under section 2111. 

20 ‘‘(3) USE OF ADDITIONAL ALLOTMENT.—Addi21 tional allotments provided under this subsection are 

22 not available for amounts expended before October 

23 1, 2003. Such amounts are available for amounts ex24 pended on or after such date for child health assist-
277

•HR 936 IH 

1 ance for targeted low-income children, as well as for 

2 FamilyCare assistance.’’. 

3 (ii) CONFORMING AMENDMENTS.—

4 Section 2104 of such Act (42 U.S.C. 

5 1397dd) is further amended—

6 (I) in subsection (a), by inserting 

7 ‘‘subject to subsection (d),’’ after 

8 ‘‘under this section,’’; 

9 (II) in subsection (b)(1), by in10 serting ‘‘and subsection (d)’’ after 

11 ‘‘Subject to paragraph (4)’’; and 

12 (III) in subsection (c)(1), by in13 serting ‘‘subject to subsection (d),’’ 

14 after ‘‘for a fiscal year,’’. 

15 (C) NO COST-SHARING FOR PREGNANCY16 RELATED BENEFITS.—Section 2103(e)(2) of 

17 such Act (42 U.S.C. 1397cc(e)(2)) is amend18 ed—

19 (i) in the heading, by inserting ‘‘AND

20 PREGNANCY-RELATED SERVICES’’ after 

21 ‘‘PREVENTIVE SERVICES’’; and 

22 (ii) by inserting before the period at 

23 the end the following: ‘‘and for pregnancy24 related services’’. 
278

•HR 936 IH 

1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection apply to items and services fur3 nished on or after October 1, 2003. 

4 (b) RULES FOR IMPLEMENTATION BEGINNING WITH

5 FISCAL YEAR 2008.—

6 (1) REQUIRED COVERAGE OF FAMILYCARE PAR7 ENTS.—Section 1902(a)(10)(A)(i) of the Social Se8 curity Act (42 U.S.C. 1396a(a)(10)(A)(i)), as 

9 amended by section 1101(b)(1)(A)(iii), is amended—

10 (A) by striking ‘‘or’’ at the end of sub11 clause (VII); 

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

13 subclause (VIII) and insert ‘‘, or’’; and 

14 (C) by adding at the end the following new 

15 subclause: 

16 ‘‘(IX) who would be parents de17 scribed in subsection (k)(1) if the in18 come level specified in subsection 

19 (k)(2)(B) were equal to at least 100 

20 percent of the poverty line referred to 

21 in such subsection;’’. 

22 (2) EXPANSION OF AVAILABILITY OF EN23 HANCED MATCH UNDER MEDICAID FOR PRE-CHIP

24 EXPANSIONS.—Paragraph (4) of section 1905(u) of 
279

•HR 936 IH 

1 such Act (42 U.S.C. 1396d(u)), as inserted by sub2 section (a)(1)(C), is amended—

3 (A) by amending clause (ii) of subpara4 graph (A) to read as follows: 

5 ‘‘(ii) CERTAIN PREGNANT WOMEN.—Ex6 penditures for medical assistance for pregnant 

7 women under section 1902(l)(1)(A) in a family 

8 the income of which exceeds the 133 percent of 

9 the income official poverty line.’’; and 

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

11 subparagraphs: 

12 ‘‘(B) PARENTS WITH INCOME ABOVE 100 PER13 CENT OF POVERTY BUT BELOW JANUARY 1, 2003 IN14 COME LEVEL.—The expenditures described in this 

15 subparagraph are expenditures for medical assist16 ance made available for any parents described in 

17 section 1902(a)(10)(A)(i)(VIII), whose income ex18 ceeds 100 percent of the income official poverty line 

19 applicable to a family of the size involved but does 

20 not exceed the applicable income level established 

21 under this title (under section 1931 or otherwise) for 

22 a parent in a family of the size involved as of Janu23 ary 1, 2003. 

24 ‘‘(C) CHILDREN IN FAMILIES WITH INCOME

25 ABOVE MEDICAID MANDATORY LEVEL NOT PRE-
280

•HR 936 IH 

1 VIOUSLY DESCRIBED.—The expenditures described 

2 in this subparagraph are expenditures (other than 

3 expenditures described in paragraph (2) or (3)) for 

4 medical assistance made available to any child who 

5 is eligible for assistance under section 

6 1902(a)(10)(A) and the income of whose family ex7 ceeds the minimum income level required under sub8 section 1902(l)(2) for a child of the age involved 

9 (treating any child who is 19 or 20 years of age as 

10 being 18 years of age).’’. 

11 (3) OFFSET OF ADDITIONAL EXPENDITURES

12 FOR ENHANCED MATCH FOR PRE-CHIP EXPANSION; 

13 ELIMINATION OF OFFSET FOR REQUIRED COVERAGE

14 OF FAMILYCARE PARENTS.—

15 (A) IN GENERAL.—Section 1905(u)(5) of 

16 such Act (42 U.S.C. 1396d(u)(5)), as added by 

17 subsection (a)(1)(E), is amended—

18 (i) by amending subparagraph (A) to 

19 read as follows: 

20 ‘‘(A) REGULAR FMAP FOR EXPENDITURES FOR

21 PREGNANT WOMEN WITH INCOME ABOVE 133 PER22 CENT OF POVERTY.—The portion of the payments 

23 made for expenditures described in paragraph 

24 (4)(A)(ii) that represents the amount that would 

25 have been paid if the enhanced FMAP had not been 
281

•HR 936 IH 

1 substituted for the Federal medical assistance per2 centage.’’; and 

3 (ii) by adding at the end the following 

4 new subparagraphs: 

5 ‘‘(B) FAMILYCARE PARENTS UNDER 100 PER6 CENT OF POVERTY.—Payments for expenditures de7 scribed in paragraph (4)(A)(i) in the case of parents 

8 whose income does not exceed 100 percent of the in9 come official poverty line applicable to a family of 

10 the size involved. 

11 ‘‘(C) REGULAR FMAP FOR EXPENDITURES FOR

12 PARENTS WITH INCOME ABOVE 100 PERCENT OF

13 POVERTY BUT BELOW JANUARY 1, 2003 INCOME

14 LEVEL.—The portion of the payments made for ex15 penditures described in paragraph (4)(B) that rep16 resents the amount that would have been paid if the 

17 enhanced FMAP had not been substituted for the 

18 Federal medical assistance percentage. 

19 ‘‘(D) REGULAR FMAP FOR EXPENDITURES FOR

20 CERTAIN CHILDREN IN FAMILIES WITH INCOME

21 ABOVE MEDICAID MANDATORY LEVEL.—The portion 

22 of the payments made for expenditures described in 

23 paragraph (4)(C) that represents the amount that 

24 would have been paid if the enhanced FMAP had 
282

•HR 936 IH 

1 not been substituted for the Federal medical assist2 ance percentage.’’. 

3 (B) CONFORMING AMENDMENTS.—Section 

4 2105(a)(1)(C) of such Act (42 U.S.C. 

5 1397ee(1)(1)(C)), as amended by subsection 

6 (a)(1)(D), is amended by striking ‘‘and for 

7 medical assistance that is attributable to ex8 penditures described in section 1905(u)(4)(A)’’ 

9 and inserting ‘‘and for medical assistance that 

10 is attributable to expenditures described in sec11 tion 1905(u)(4), except as provided in section 

12 1905(u)(5)’’.

13 (3) EFFECTIVE DATE.—The amendments made 

14 by this subsection apply as of October 1, 2007, to 

15 fiscal years beginning on or after such date and to 

16 expenditures under the State plan on and after such 

17 date.

18 (c) MAKING TITLE XXI BASE ALLOTMENTS PERMA19 NENT.—Section 2104(a) of such Act (42 U.S.C. 

20 1397dd(a)) is amended—

21 (1) by striking ‘‘and’’ at the end of paragraph 

22 (9); 

23 (2) by striking the period at the end of para24 graph (10) and inserting ‘‘; and’’; and 
283

•HR 936 IH 

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

2 paragraph: 

3 ‘‘(11) for fiscal year 2008 and each fiscal year 

4 thereafter, the amount of the allotment provided 

5 under this subsection for the preceding fiscal year 

6 increased by the percentage increase (if any) in the 

7 medical care expenditure category of the Consumer 

8 Price Index for All Urban Consumers (United States 

9 city average).’’. 

10 (d) OPTIONAL APPLICATION OF PRESUMPTIVE ELI11 GIBILITY PROVISIONS TO PARENTS.—Section 1920A of 

12 such Act (42 U.S.C. 1396r–1a) is amended by adding at 

13 the end the following new subsection: 

14 ‘‘(e) In accordance with regulations, a State may 

15 elect to apply the previous provisions of this section to pro16 vide for a period of presumptive eligibility for medical as17 sistance for a parent of a child with respect to whom such 

18 a period is provided under this section.’’. 

19 (e) CONFORMING AMENDMENTS.—

20 (1) ELIGIBILITY CATEGORIES.—Section 

21 1905(a) of such Act (42 U.S.C. 1396d(a)) is amend22 ed, in the matter before paragraph (1)—

23 (A) by striking ‘‘or’’ at the end of clause 

24 (xi); 
284

•HR 936 IH 

1 (B) by inserting ‘‘or’’ at the end of clause 

2 (xii); and 

3 (C) by inserting after clause (xii) the fol4 lowing new clause: 

5 ‘‘(xiii) who are parents described (or treated as 

6 if described) in section 1902(k)(1),’’. 

7 (2) INCOME LIMITATIONS.—Section 1903(f)(4) 

8 of such Act (42 U.S.C. 1396b(f)(4)) is amended—

9 (A) effective October 1, 2007, by inserting 

10 ‘‘1902(a)(10)(A)(i)(IX),’’ after 

11 ‘‘1902(a)(10)(A)(i)(VIII),’’; and 

12 (B) by inserting 

13 ‘‘1902(a)(10)(A)(ii)(XX),’’ after 

14 ‘‘1902(a)(10)(A)(ii)(XIX),’’.

15 (3) CONFORMING AMENDMENT RELATING TO

16 NO WAITING PERIOD FOR CERTAIN WOMEN.—Section 

17 2102(b)(1)(B) of such Act (42 U.S.C. 

18 1397bb(b)(1)(B)) is amended—

19 (A) by striking ‘‘, and’’ at the end of 

20 clause (i) and inserting a semicolon; 

21 (B) by striking the period at the end of 

22 clause (ii) and inserting ‘‘; and’’; and 

23 (C) by adding at the end the following new 

24 clause: 
285

•HR 936 IH 

1 ‘‘(iii) may not apply a waiting period 

2 (including a waiting period to carry out 

3 paragraph (3)(C)) in the case of targeted 

4 low-income women who are pregnant.’’. 

5 Subtitle D—Awareness of 

6 Environmental Risks to Children 

7 SEC. 2301. SHORT TITLE. 

8 This subtitle may be cited as the ‘‘Children’s Envi9 ronmental Protection and Right to Know Act’’. 

10 SEC. 2302. FINDING. 

11 Congress finds that requirements to disclose informa12 tion about environmental risks will improve health and 

13 safety by—

14 (1) prompting persons causing those risks to re15 duce the risks; and 

16 (2) enabling individuals to take actions to pro17 tect themselves from those risks. 

18 CHAPTER 1—CHILDREN’S 

19 ENVIRONMENTAL PROTECTION 

20 Subchapter A—Disclosure of Industrial Re21 leases That Present a Significant Risk to 

22 Children 

23 SEC. 2311. REPORTING REQUIREMENTS. 

24 (a) IN GENERAL.—Section 313(f) of the Emergency 

25 Planning and Community Right-To-Know Act of 1986 (42 
286

•HR 936 IH 

1 U.S.C. 11023(f)) is amended by striking paragraph (1) 

2 and inserting the following: 

3 ‘‘(1) IN GENERAL.—

4 ‘‘(A) TOXIC CHEMICAL THRESHOLD QUAN5 TITY.—The threshold quantities for purposes of 

6 reporting toxic chemicals under this section are 

7 as follows: 

8 ‘‘(i) TOXIC CHEMICALS USED AT FA9 CILITIES.—The threshold quantity of a 

10 toxic chemical used at a facility shall be 

11 10,000 pounds of the toxic chemical per 

12 year. 

13 ‘‘(ii) MANUFACTURED OR PROCESSED

14 TOXIC CHEMICALS.—The threshold quan15 tity of a toxic chemical manufactured or 

16 processed at a facility shall be—

17 ‘‘(I) 75,000 pounds of a toxic 

18 chemical per year, for any toxic chem19 ical for which a toxic chemical release 

20 form is required to be submitted 

21 under this section on or before July 1, 

22 1988; 

23 ‘‘(II) 50,000 pounds of a toxic 

24 chemical per year, for any toxic chem25 ical for which a toxic chemical release 
287

•HR 936 IH 

1 form is required to be submitted dur2 ing the period beginning July 2, 1988, 

3 and ending July 1, 1989; and 

4 ‘‘(III) 25,000 pounds of a toxic 

5 chemical per year, for any toxic chem6 ical for which any toxic release form 

7 is required to be submitted on or after 

8 July 2, 1989. 

9 ‘‘(B) TOXIC CHEMICALS RELEASED FROM

10 FACILITIES.—

11 ‘‘(i) TOXIC CHEMICAL THRESHOLD

12 PROGRAM.—

13 ‘‘(I) ESTABLISHMENT.—Not 

14 later than 2 years after the date of 

15 enactment of the Children’s Environ16 mental Protection and Right to Know 

17 Act, subject to clause (ii) and in addi18 tion to the reporting thresholds for 

19 the toxic chemicals specified in sub20 clause (II), the Administrator shall es21 tablish a reporting threshold for each 

22 toxic chemical that the Administrator 

23 determines may present a significant 

24 risk to children’s health or the envi-
288

•HR 936 IH 

1 ronment due to, as determined by 

2 the—

3 ‘‘(aa) the persistent use or 

4 existence of the toxic chemical in 

5 the environment; 

6 ‘‘(bb) the potential of the 

7 toxic chemical to bioaccumulate 

8 or disrupt endocrine systems; or 

9 ‘‘(cc) other characteristics of 

10 the toxic chemical. 

11 ‘‘(II) TOXIC CHEMICALS IN12 CLUDED.—The Administrator shall 

13 establish a reporting threshold under 

14 subclause (I) for—

15 ‘‘(aa) lead; 

16 ‘‘(bb) mercury; 

17 ‘‘(cc) dioxin; 

18 ‘‘(dd) cadmium; 

19 ‘‘(ee) chromium; and 

20 ‘‘(ff) each substance identi21 fied as a bioaccumulative chem22 ical of concern in the final rule 

23 promulgated by the Adminis24 trator entitled ‘Water Quality 

25 Guidance for the Great Lakes 
289

•HR 936 IH 

1 System, Part III’ (60 Fed. Reg. 

2 15336 (March 23, 1995)). 

3 ‘‘(ii) THRESHOLD QUANTITY.—The 

4 Administrator shall establish by regulation 

5 each threshold quantity for a toxic chem6 ical described in clause (i) at a level that, 

7 as determined by the Administrator, will 

8 ensure reporting of at least 80 percent of 

9 the aggregate of all releases of the toxic 

10 chemical from facilities that—

11 ‘‘(I) have 10 or more full-time 

12 employees; and 

13 ‘‘(II) are designated with any of 

14 Standard Industrial Classification 

15 Codes 20 through 39 or any of the 

16 Standard Industrial Classification 

17 Codes added under subsection 

18 (b)(1)(B).’’. 

19 (b) CONFORMING AMENDMENTS.—

20 (1) Section 313 of the Emergency Planning and 

21 Community Right-To-Know Act of 1986 (42 U.S.C. 

22 11023) is amended—

23 (A) in subsections (a) and (b)(1)(A), by 

24 striking ‘‘or otherwise used’’ each place it ap-
290

•HR 936 IH 

1 pears and inserting ‘‘otherwise used, or re2 leased’’; 

3 (B) in subsection (c)—

4 (i) by striking ‘‘are those chemicals’’ 

5 and inserting the following: ‘‘are—

6 ‘‘(1) those chemicals’’; 

7 (ii) by striking the period at the end 

8 and inserting ‘‘; and’’; and 

9 (iii) by adding at the end the fol10 lowing: 

11 ‘‘(2) dioxin and each other substance identified 

12 as a bioaccumulative chemical of concern in the final 

13 rule promulgated by the Administrator entitled 

14 ‘Water Quality Guidance for the Great Lakes Sys15 tem, Part III’ (60 Fed. Reg. 15336 (March 23, 

16 1995)).’’; and

17 (C) in the first sentence of subsection 

18 (f)(2), by striking ‘‘paragraph (1)’ and insert19 ing ‘‘subparagraph (A) or (B) of paragraph 

20 (1)’’. 

21 (2) Section 326(a)(1)(B) of the Emergency 

22 Planning and Community Right-To-Know Act of 

23 1986 (42 U.S.C. 11046(a)(1)(B)) is amended by 

24 adding at the end the following: 
291

•HR 936 IH 

1 ‘‘(vii) Establish reporting thresholds for chemi2 cals referred to in section 313(f)(1)(C).’’. 

3 Subchapter B—Disclosure of High Health 

4 Risk Chemicals in Children’s Consumer 

5 Products 

6 SEC. 2321. LIST OF TOXIC CHEMICALS. 

7 (a) DEFINITION OF ELIGIBLE PRODUCT.—Section 2 

8 of the Federal Hazardous Substances Act (15 U.S.C. 

9 1261) is amended by adding at the end the following: 

10 ‘‘(u) ELIGIBLE PRODUCT.—

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), the term ‘eligible product’ means any toy 

13 or other article intended for use by children. 

14 ‘‘(2) EXCEPTION.—On and after the date that 

15 is 3 years after the date of enactment of this sub16 section, the term ‘eligible product’ means any con17 sumer product (as defined in section 3 of the Con18 sumer Product Safety Act (15 U.S.C. 2052)).’’. 

19 (b) LIST OF TOXIC CHEMICALS.—Section 3 of the 

20 Federal Hazardous Substances Act (15 U.S.C. 1262) is 

21 amended by adding at the end the following: 

22 ‘‘(k) LIST OF TOXIC CHEMICALS.—

23 ‘‘(1) DEFINITIONS.—In this subsection: 
292

•HR 936 IH 

1 ‘‘(A) ADMINISTRATOR.—The term ‘Admin2 istrator’ means the Administrator of the Envi3 ronmental Protection Agency. 

4 ‘‘(B) CHAIRMAN.—The term ‘Chairman’ 

5 means the Chairman of the Consumer Product 

6 Safety Commission. 

7 ‘‘(2) LIST.—Not later than 1 year after the 

8 date of enactment of this subsection, the Adminis9 trator, acting jointly with the Chairman, shall pub10 lish in the Federal Register a list of substances or 

11 mixtures of substances that have been determined by 

12 the Administrator and the Chairman to be toxic to 

13 children due to their carcinogenic, neurotoxic, or re14 productive toxic effects. 

15 ‘‘(3) SUBSTANCES AND INFORMATION TO BE

16 INCLUDED.—The list under that paragraph shall in17 clude—

18 ‘‘(A)(i) any chemical that has been identi19 fied by a Federal agency as being a carcinogen, 

20 neurotoxin, or reproductive toxin; 

21 ‘‘(ii) each chemical identified as a Group A 

22 or Group B carcinogen in the notice published 

23 by the Administrator entitled ‘Regulation of 

24 Pesticides in Food: Addressing the Delaney 
293

•HR 936 IH 

1 Paradox Policy Statement’ (53 Fed. Reg. 

2 41118 (October 19, 1988)); 

3 ‘‘(iii) each chemical that adversely affects 

4 the nervous system of children, as identified in 

5 criteria documents of the National Institute for 

6 Occupational Safety and Health; 

7 ‘‘(iv) each chemical identified by the Con8 sumer Product Safety Commission as having 

9 sufficient evidence to demonstrate—

10 ‘‘(I) carcinogenicity in humans or ani11 mals; 

12 ‘‘(II) neurotoxicity in humans or ani13 mals; 

14 ‘‘(III) human developmental toxicity; 

15 or 

16 ‘‘(IV) male or female reproductive tox17 icity in humans or animals; 

18 ‘‘(v) each chemical regulated as a 

19 neurotoxin, reproductive toxin, or developmental 

20 toxin by the Administrator; and 

21 ‘‘(vi) each chemical on the Biennial List of 

22 Carcinogens submitted to Congress by the Sec23 retary of Health and Human Services; and 

24 ‘‘(B) such reasonably available information 

25 on adverse health effects of any substance or 
294

•HR 936 IH 

1 mixture of substances as was used to determine 

2 whether to include the substance or mixture on 

3 the list required under paragraph (2). 

4 ‘‘(4) DATA.—In carrying out paragraph (3), the 

5 Secretary and the Chairman shall require manufac6 turers and importers of substances and mixtures of 

7 substances on the list required under paragraph (2) 

8 to generate, and shall obtain from any Federal, 

9 State, or local government, such data as are suffi10 cient to identify substances or mixtures of sub11 stances—

12 ‘‘(A) that are toxic within the meaning of 

13 paragraph (2); and 

14 ‘‘(B) to which infants and young children 

15 are exposed. 

16 ‘‘(l) CHEMICAL TESTING AND RISK ASSESSMENT.—

17 As soon as practicable after the date of enactment of this 

18 subsection, the Administrator of the Environmental Pro19 tection Agency, in consultation with experts in pediatric 

20 toxicology and exposure, shall develop and implement new 

21 short-term and long-term strategies for more comprehen22 sive chemical testing and risk assessment to ensure that 

23 risks of exposure to children (including exposure to chil24 dren in utero) are, to the maximum extent practicable, 

25 fully understood.’’. 
295

•HR 936 IH 

1 SEC. 2322. REPORTING OF TOXIC CHEMICALS IN CON2 SUMER PRODUCTS. 

3 (a) REPORTING.—The Federal Hazardous Sub4 stances Act (15 U.S.C. 1261 et seq.) is amended by add5 ing at the end the following: 

6 ‘‘SEC. 25. REPORTING OF TOXIC CHEMICALS. 

7 ‘‘(a) IN GENERAL.—A manufacturer or importer of 

8 any eligible product that contains, or is composed of, a 

9 substance or mixture of substances listed under section 

10 3(k) shall submit to the Commission a report that de11 scribes each of the following: 

12 ‘‘(1) The identity of the manufacturer or im13 porter of the eligible product. 

14 ‘‘(2) A description of the eligible product (in15 cluding any model name and model number of the 

16 eligible product).

17 ‘‘(3) The identity of the substance or mixture 

18 of substances listed under section 3(k) (including the 

19 concentration of the substance or mixture in the eli20 gible product). 

21 ‘‘(4) Any information known to the manufac22 turer or importer that would support a determina23 tion that the eligible product is not a misbranded 

24 hazardous substance or a banned hazardous sub25 stance. 
296

•HR 936 IH 

1 ‘‘(5) Such data as are generated by the manu2 facturer or importer as are sufficient to identify any 

3 substances or mixtures of substances manufactured 

4 or imported that are toxic to children, as described 

5 in section 3(k)(2). 

6 ‘‘(b) PUBLICATION.—The Commission shall annually 

7 publish in the Federal Register, and make available to the 

8 public in an electronic format, the information submitted 

9 under subsection (a). 

10 ‘‘(c) REGULATIONS.—The Commission shall promul11 gate such regulations as necessary to carry out this sec12 tion. 

13 ‘‘(d) APPLICATION OF SECTION.—Subsection (a) 

14 shall apply to a substance or mixture of substances listed 

15 under section 3(k) beginning on the date that is 1 year 

16 after the date on which the substance or mixture of sub17 stances is listed under that section.’’. 

18 (b) PROHIBITED ACTS.—

19 (1) IN GENERAL.—Section 4 of the Federal 

20 Hazardous Substances Act (15 U.S.C. 1263) is 

21 amended by adding at the end the following: 

22 ‘‘(l) The failure to report as required under section 

23 25.’’. 

24 (2) CONFORMING AMENDMENT.—Section 

25 5(c)(1) of the Federal Hazardous Substances Act 
297

•HR 936 IH 

1 (15 U.S.C. 1264(c)(1)) is amended in the second 

2 sentence by striking ‘‘and (k)’’ and inserting ‘‘(k), 

3 and (l)’’. 

4 SEC. 2323. EXEMPTIONS. 

5 (a) IN GENERAL.—Section 3(c) of the Federal Haz6 ardous Substances Act (15 U.S.C. 1262(c)) is amended—

7 (1) by striking ‘‘(c) If the Commission finds’’ 

8 and inserting the following: 

9 ‘‘(c) EXEMPTION FROM REQUIREMENTS BY REGULA10 TION.—

11 ‘‘(1) IN GENERAL.—If the Commission deter12 mines’’; and 

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

14 ‘‘(2) ADDITIONAL REGULATIONS.—In addition 

15 to regulations promulgated under paragraph (1), the 

16 Commission may promulgate regulations exempting 

17 from the reporting requirements of section 25 any 

18 substance or mixture of substances. 

19 ‘‘(3) APPLICABILITY.—This subsection shall not 

20 apply to any substance or mixture of substances un21 less the Commission determines that the substance 

22 or mixture would not, by reason of containing a sub23 stance or mixture of substances listed under section 

24 3(k), cause substantial personal injury or substantial 

25 illness during, or as a proximate result of, any cus-
298

•HR 936 IH 

1 tomary or reasonably foreseeable handling or use 

2 (including reasonably foreseeable ingestion by chil3 dren).’’. 

4 (b) CONFORMING AMENDMENT.—Section 3(d) of the 

5 Federal Hazardous Substances Act (15 U.S.C. 1262(d)) 

6 is amended by striking ‘‘adequate requirements satisfying 

7 the purposes of’’ and inserting ‘‘requirements at least as 

8 stringent as’’. 

9 SEC. 2324. PRIVATE CITIZEN ENFORCEMENT. 

10 The Federal Hazardous Substances Act (15 U.S.C. 

11 1261 et seq.) (as amended by section 2322(a)) is amended 

12 by adding at the end the following: 

13 ‘‘SEC. 26. PRIVATE CITIZEN ENFORCEMENT. 

14 ‘‘(a) IN GENERAL.—Subject to subsection (c), any 

15 person other than the Commission may bring a civil action 

16 in United States district court—

17 ‘‘(1) against any person, for violation of sub18 section (a), (b), or (l) of section 4; or 

19 ‘‘(2) against the Commission, for a failure of 

20 the Commission to perform any nondiscretionary act 

21 or duty under the amendments made by the Chil22 dren’s Environmental Protection and Right to Know 

23 Act. 

24 ‘‘(b) JURISDICTION.—In the case of a civil action 

25 under subsection (a)—
299

•HR 936 IH 

1 ‘‘(1) the United States district courts shall have 

2 jurisdiction over the civil action without regard to 

3 the amount in controversy or the citizenship of the 

4 parties; and 

5 ‘‘(2) the court may apply any appropriate civil 

6 penalties under section 5 or order the Commission to 

7 perform any nondiscretionary act or duty that the 

8 Commission failed to perform. 

9 ‘‘(c) ACTIONS PROHIBITED.—No action may be com10 menced under this section unless—

11 ‘‘(1) not later than 60 days before the date on 

12 which the action is filed, the plaintiff gives notice of 

13 the intent to bring the action—

14 ‘‘(A) to the Commission; and 

15 ‘‘(B) in the case of an action for a viola16 tion of section 4, to the person that is alleged 

17 to have violated that section; and 

18 ‘‘(2) in the case of an action for a violation of 

19 section 4, the Commission has not commenced and 

20 is not diligently pursuing a civil action on behalf of 

21 the United States. 

22 ‘‘(d) INTERVENTION.—In any action on behalf of the 

23 United States following receipt of a notice under sub24 section (d)(1), the person providing the notice may inter25 vene as of right as a plaintiff in the action. 
300

•HR 936 IH 

1 ‘‘(e) COSTS.—

2 ‘‘(1) IN GENERAL.—Except as provided in para3 graph (2), in any action under subsection (a), the 

4 costs of litigation (including reasonable attorney 

5 fees) may be awarded to—

6 ‘‘(A) any substantially prevailing plaintiff; 

7 and 

8 ‘‘(B) in any action under subsection (c), 

9 the party intervening under subsection (c), if 

10 that party contributed significantly to the suc11 cess of the plaintiff. 

12 ‘‘(2) WAIVER.—The award of costs under para13 graph (1) may be fully or partially waived by a court

14 if the court finds such an award to be inappropriate 

15 under the circumstances. 

16 ‘‘(f) BURDEN OF PROOF.—In any action under sub17 section (a)(1), if the person alleged to have violated section 

18 4 asserts that a substance or mixture of substances is not 

19 a hazardous substance by reason of containing a substance 

20 or mixture of substances listed under section 3(k), the 

21 burden of proof shall be the alleged violator to establish 

22 that the substance or mixture of substances is not a haz23 ardous substance. 

24 ‘‘(g) PENALTY FUND.—
301

•HR 936 IH 

1 ‘‘(1) ESTABLISHMENT.—There is established in 

2 the Treasury of the United States a fund to be used 

3 in carrying out this section (referred to in this sec4 tion as the ‘Fund’). 

5 ‘‘(2) DEPOSIT OF ASSESSED PENALTIES.—A 

6 penalty assessed as a result of a civil action under 

7 subsection (a) shall be deposited in the Fund. 

8 ‘‘(3) USE OF FUNDS.—On request by the Com9 mission, the Secretary of the Treasury shall transfer 

10 from the Fund to the Commission such amounts as 

11 the Commission determines are necessary to finance 

12 compliance and enforcement activities under this 

13 Act. 

14 ‘‘(4) AVAILABILITY.—Amounts in the Fund 

15 shall remain available for use by the Commission 

16 until expended, without further appropriation. 

17 ‘‘(5) REPORTS.—The Commission shall submit 

18 to Congress an annual report that describes—

19 ‘‘(A) any funds deposited into the Fund 

20 during the year for which the report is sub21 mitted (including the sources of those funds); 

22 and 

23 ‘‘(B) the actual and proposed uses of the 

24 funds. 
302

•HR 936 IH 

1 ‘‘(h) OTHER PROJECTS.—Notwithstanding sub2 section (g), in lieu of being deposited in the Fund, any 

3 civil penalty assessed may, at the option of the court (after 

4 consultation with the Commission), be used to fund 

5 projects of the Commission that are—

6 ‘‘(1) consistent with this Act; and 

7 ‘‘(2) designed to enhance public awareness of—

8 ‘‘(A) the health effects of toxic substances 

9 or mixtures of toxic substances in eligible prod10 ucts; and 

11 ‘‘(B) the potential for exposure of children 

12 to toxic substances or mixtures of toxic sub13 stances in eligible products.’’.

14 CHAPTER 2—PUBLIC RIGHT TO KNOW 

15 ABOUT TOXIC CHEMICAL USE 

16 SEC. 2331. DISCLOSURE OF TOXIC CHEMICAL USE BY COM17 PARABLE FACILITIES. 

18 Section 313(b)(1)(B) of the Emergency Planning and 

19 Community Right-To-Know Act of 1986 (42 U.S.C. 

20 11023(b)(1)(B)) is amended—

21 (1) by striking ‘‘(B) The Administrator’’ and 

22 inserting the following: 

23 ‘‘(B) MODIFICATIONS TO COVERED FACILI24 TIES.—
303

•HR 936 IH 

1 ‘‘(i) MODIFICATION BY THE ADMINIS2 TRATOR.—The Administrator’’; and 

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

4 ‘‘(ii) MODIFICATIONS BEGINNING

5 WITH 2004 REPORTING YEAR.—Effective 

6 beginning with the 2004 reporting year, 

7 any facility identified by the Standard In8 dustrial Classification Codes specified in 

9 the proposed rule entitled ‘Addition of Fa10 cilities in Certain Industry Sectors; Toxic 

11 Chemical Release Reporting; Community 

12 Right-to-Know, Part II’ (61 Fed. Reg. 

13 33588 (June 27, 1996)) shall be subject to 

14 the requirements of this section. 

15 ‘‘(iii) REGULATIONS TO ADD ADDI16 TIONAL CATEGORIES OF FACILITIES.—

17 ‘‘(I) IN GENERAL.—Not later 

18 than 2 years after the date of enact19 ment of this clause, subject to sub20 clause (II), the Administrator shall 

21 promulgate final regulations to re22 quire compliance with this section by 

23 all additional categories of facilities 

24 that use or release toxic chemicals in 

25 volumes similar to the volumes used 
304

•HR 936 IH 

1 or released by facilities that are cov2 ered by this section as of the date of 

3 enactment of this clause. 

4 ‘‘(II) INAPPLICABILITY TO

5 FARMS.—Subclause (I) shall not apply 

6 to any farm.’’. 

7 SEC. 2332. DISCLOSURE OF TOXIC CHEMICAL USE. 

8 (a) IN GENERAL.—Section 313 of the Emergency 

9 Planning and Community Right-To-Know Act of 1986 (42 

10 U.S.C. 11023) is amended—

11 (1) in the second sentence of subsection (a), by 

12 striking ‘‘releases’’ and inserting ‘‘toxic chemical 

13 uses and releases’’; 

14 (2) in subsection (g)(1)(C)—

15 (A) by inserting ‘‘for the preceding cal16 endar year’’ after ‘‘items of information’’; 

17 (B) in clause (ii), by striking ‘‘the pre18 ceding calendar year’’ and inserting ‘‘the cal19 endar year’’; and 

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

21 ‘‘(v)(I) The number of employees, including 

22 contractors, at the facility. 

23 ‘‘(II) The number of employees, including con24 tractors, at the facility that were exposed to the 

25 toxic chemical. 
305

•HR 936 IH 

1 ‘‘(III) An estimate of the quantity and level of 

2 occupational exposures to the toxic chemical. 

3 ‘‘(vi)(I) The following materials accounting in4 formation: 

5 ‘‘(aa) A description of the uses of the toxic 

6 chemical at the facility. 

7 ‘‘(bb) The starting inventory of the toxic 

8 chemical at the facility. 

9 ‘‘(cc) The quantity of the toxic chemical 

10 produced at the facility. 

11 ‘‘(dd) The quantity of the toxic chemical 

12 transported into the facility and the mode of 

13 transportation.

14 ‘‘(ee) The quantity of the toxic chemical 

15 consumed at the facility. 

16 ‘‘(ff) The quantity of the toxic chemical 

17 transported out of the facility as products or in 

18 products, and the quantity intended for—

19 ‘‘(AA) industrial use; 

20 ‘‘(BB) commercial use; 

21 ‘‘(CC) consumer use; and 

22 ‘‘(DD) any additional category of use 

23 that the Administrator may designate. 

24 ‘‘(gg) The quantity of the toxic chemical 

25 entering any waste stream (or otherwise re-
306

•HR 936 IH 

1 leased into the environment) before recycling, 

2 treatment, or disposal. 

3 ‘‘(hh) The ending inventory of the toxic 

4 chemical at the facility. 

5 ‘‘(ii) The quantity of the toxic chemical re6 cycled at the facility that is subsequently used 

7 at the facility. 

8 ‘‘(jj) The quantity of the toxic chemical 

9 used, which shall be calculated with respect to 

10 a toxic chemical by adding the quantities re11 ported under items (bb), (cc), (dd), and (ii) 

12 with respect to the toxic chemical and sub13 tracting the quantity reported under subclause 

14 (hh) with respect to the toxic chemical. 

15 ‘‘(II) Each quantity reported under this clause 

16 shall be complete and verifiable by computations 

17 using conventional materials accounting practices. 

18 ‘‘(III) If the sum of the quantities reported 

19 under items (bb), (cc), (dd), and (ii) of subclause (I) 

20 does not equal the sum of the quantities reported 

21 under subclauses (ee), (ff), (gg), and (hh) of that 

22 subclause, the form shall provide an explanation of 

23 the difference in the sums. 

24 ‘‘(vii) The quantity of the reduction, from the 

25 year prior to the preceding calendar year, in the 
307

•HR 936 IH 

1 quantity of the toxic chemical entering any waste 

2 stream (or otherwise released into the environment) 

3 before recycling, treatment, or disposal (as reported 

4 under section 6607(b)(1) of the Pollution Prevention 

5 Act of 1990 (42 U.S.C. 13106(b)(1)), as a result 

6 of—

7 ‘‘(I) equipment or technology modifica8 tions; 

9 ‘‘(II) process or procedure modifications; 

10 ‘‘(III) reformulation or redesign of prod11 ucts; 

12 ‘‘(IV) substitution of raw materials; and 

13 ‘‘(V) improvements in housekeeping, main14 tenance, training, or inventory control. 

15 ‘‘(viii) The quantity of the reduction, from the 

16 year prior to the preceding calendar year, in the 

17 quantity of the toxic chemical used as determined 

18 under clause (vi)(I)(jj) as a result of all activities 

19 specified in clause (vii).’’; and 

20 (3) in the second sentence of subsection (h), by 

21 inserting ‘‘uses of toxic chemicals at covered facili22 ties and’’ after ‘‘inform persons about’’. 

23 (b) REGULATIONS.—Not later than 2 years after the 

24 date of enactment of this Act, the Administrator of the 

25 Environmental Protection Agency shall promulgate regu-
308

•HR 936 IH 

1 lations concerning the information to be provided under 

2 section 313(g)(1)(C)(v) of the Emergency Planning and 

3 Community Right-To-Know Act of 1986 (42 U.S.C. 

4 11023(g)(1)(C)(v)). 

5 SEC. 2333. STREAMLINED DATA COLLECTION AND DISSEMI6 NATION. 

7 Section 313 of the Emergency Planning and Commu8 nity Right-To-Know Act of 1986 (42 U.S.C. 11023) is 

9 amended by adding at the end the following: 

10 ‘‘(m) STREAMLINED DATA COLLECTION AND DIS11 SEMINATION.—

12 ‘‘(1) IN GENERAL.—To enhance public access 

13 and use of information resources, to facilitate com14 pliance with reporting requirements, and to promote 

15 multimedia permitting, reporting, and pollution pre16 vention, the Administrator shall, not later than 3 

17 years after the date of enactment of this sub18 section—

19 ‘‘(A) establish standard data formats for 

20 management of information collected under this 

21 title and other Federal environmental laws; 

22 ‘‘(B) integrate information collected under 

23 this title and other Federal environmental laws, 

24 using—
309

•HR 936 IH 

1 ‘‘(i) common company, facility, indus2 try, geographic, and chemical identifiers; 

3 and 

4 ‘‘(ii) other identifiers as the Adminis5 trator determines to be appropriate; 

6 ‘‘(C) establish a system for indexing, locat7 ing, and obtaining agency-held information 

8 about parent companies, facilities, industries, 

9 chemicals, geographic locations, ecological indi10 cators, and the regulatory status of chemicals 

11 and entities subject to regulation under this 

12 title and other Federal environmental laws; 

13 ‘‘(D) consolidate all annual reporting re14 quirements, under this title and other Federal 

15 environmental laws, for small business concerns 

16 (as defined in section 3 of the Small Business 

17 Act (15 U.S.C. 632)) in a manner that allows 

18 reporting to 1 point of contact using 1 form or 

19 electronic reporting system; and 

20 ‘‘(E) provide members of the public 1 point 

21 of contact for access to all publicly available in22 formation collected by the Administrator for 

23 any 1 regulated entity. 

24 ‘‘(2) CONSOLIDATION.—Not later than 5 years 

25 after the date of enactment of this subsection, the 
310

•HR 936 IH 

1 Administrator shall consolidate all annual reporting 

2 under this title and other Federal environmental 

3 laws, for each entity subject to such reporting, in a 

4 manner that allows reporting to 1 point of contact 

5 using 1 form or electronic reporting system. 

6 ‘‘(3) UNDERSTANDABLE LANGUAGE.—In im7 proving the means by which the Administrator pro8 vides information to the public and requires informa9 tion be reported by regulated entities, as required by 

10 paragraphs (1) and (2), the Administrator shall use 

11 language and methods of communication that the 

12 Administrator finds to be clear and understandable

13 by a member of the public of average intelligence, 

14 education, and experience.’’. 

15 SEC. 2334. TRADE SECRET PROTECTION. 

16 Section 322 of the Emergency Planning and Commu17 nity Right-To-Know Act of 1986 (42 U.S.C. 11042) is 

18 amended—

19 (1) in subsection (a)(1), by adding at the end 

20 the following: 

21 ‘‘(C) WITHHOLDING OF MATERIALS AC22 COUNTING INFORMATION.—

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

24 (ii), any person required to submit mate25 rials accounting information under section 
311

•HR 936 IH 

1 313(g)(1)(C)(vi) may withhold any item of 

2 that information (as determined under reg3 ulations promulgated by the Administrator 

4 under subsection (c)) if the person com5 plies with paragraph (2) with respect to 

6 the information to be withheld. 

7 ‘‘(ii) LIMITATION.—Clause (i) does 

8 not provide authority to withhold any in9 formation covered by the Pollution Preven10 tion Act of 1990 (42 U.S.C. 13101 et 

11 seq.).’’; 

12 (2) in subsection (b)(4), by inserting ‘‘or other 

13 information withheld’’ after ‘‘The chemical identity’’; 

14 (3) in subsection (d)—

15 (A) in the first sentence of paragraph (1), 

16 by inserting ‘‘, or other information withheld 

17 under subsection (a)(1),’’ after ‘‘toxic chem18 ical’’; and 

19 (B) in paragraphs (2) through (4), by in20 serting ‘‘or other information withheld’’ after 

21 ‘‘chemical identity’’ each place it appears; 

22 (4) in subsection (f), by inserting ‘‘or other in23 formation withheld under subsection (a)(1)’’ after 

24 ‘‘chemical identity’’; and 

25 (5) in subsection (h)—
312

•HR 936 IH 

1 (A) in paragraph (1), by inserting ‘‘, or 

2 other information withheld under subsection 

3 (a)(1),’’ before ‘‘is claimed as’’; and 

4 (B) in paragraph (2), by inserting ‘‘, or 

5 other information withheld under subsection 

6 (a)(1),’’ after ‘‘identity of a toxic chemical’’. 

7 Subtitle E—Promoting Responsible 

8 Fatherhood 

9 CHAPTER 1—BLOCK GRANTS 

10 SEC. 2401. BLOCK GRANTS TO STATES TO ENCOURAGE 

11 MEDIA CAMPAIGNS. 

12 (a) IN GENERAL.—Part D of title IV of the Social 

13 Security Act (42 U.S.C. 651 et seq.) is amended by adding 

14 at the end the following: 

15 ‘‘SEC. 469C. BLOCK GRANTS TO STATES FOR MEDIA CAM16 PAIGNS PROMOTING RESPONSIBLE FATHER17 HOOD. 

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

19 ‘‘(1) BROADCAST ADVERTISEMENT.—The term 

20 ‘broadcast advertisement’ means a communication 

21 intended to be aired by a television or radio broad22 cast station, including a communication intended to 

23 be transmitted through a cable channel. 
313

•HR 936 IH 

1 ‘‘(2) CHILD AT RISK.—The term ‘child at risk’ 

2 means each young child whose family income does 

3 not exceed the poverty line. 

4 ‘‘(3) POVERTY LINE.—The term ‘poverty line’ 

5 has the meaning given such term in section 673(2) 

6 of the Omnibus Budget Reconciliation Act of 1981 

7 (including any revision required by such section) 

8 that is applicable to a family of the size involved. 

9 ‘‘(4) PRINTED OR OTHER ADVERTISEMENT.—

10 The term ‘printed or other advertisement’ includes 

11 any communication intended to be distributed 

12 through a newspaper, magazine, outdoor advertising 

13 facility, mailing, or any other type of general public 

14 advertising, but does not include any broadcast ad15 vertisement. 

16 ‘‘(5) STATE.—The term ‘State’ means each of 

17 the 50 States, the District of Columbia, the Com18 monwealth of Puerto Rico, the United States Virgin 

19 Islands, Guam, American Samoa, and the Common20 wealth of the Northern Mariana Islands. 

21 ‘‘(6) YOUNG CHILD.—The term ‘young child’ 

22 means an individual under age 5. 

23 ‘‘(b) STATE CERTIFICATIONS.—Not later than Octo24 ber 1 of each fiscal year for which a State desires to re25 ceive an allotment under this section, the chief executive 
314

•HR 936 IH 

1 officer of the State shall submit to the Secretary a certifi2 cation that the State will—

3 ‘‘(1) use such funds to promote the formation 

4 and maintenance of married 2-parent families, 

5 strengthen fragile families, and promote responsible 

6 fatherhood through media campaigns conducted in 

7 accordance with the requirements of subsection (d); 

8 ‘‘(2) return any unused funds to the Secretary 

9 in accordance with the reconciliation process under 

10 subsection (e); and 

11 ‘‘(3) comply with the reporting requirements 

12 under subsection (f). 

13 ‘‘(c) PAYMENTS TO STATES.—For each of fiscal years 

14 2004 through 2008, the Secretary shall pay to each State 

15 that submits a certification under subsection (b), from any 

16 funds appropriated under subsection (h), for the fiscal 

17 year an amount equal to the amount of the allotment de18 termined for the fiscal year under subsection (g). 

19 ‘‘(d) ESTABLISHMENT OF MEDIA CAMPAIGNS.—Each 

20 State receiving an allotment under this section for a fiscal 

21 year shall use the allotment to conduct media campaigns 

22 as follows: 

23 ‘‘(1) CONDUCT OF MEDIA CAMPAIGNS.—

24 ‘‘(A) RADIO AND TELEVISION MEDIA CAM25 PAIGNS.—
315

•HR 936 IH 

1 ‘‘(i) PRODUCTION OF BROADCAST AD2 VERTISEMENTS.—At the option of the 

3 State, to produce broadcast advertisements 

4 that promote the formation and mainte5 nance of married 2-parent families, 

6 strengthen fragile families, and promote 

7 responsible fatherhood.

8 ‘‘(ii) AIR TIME CHALLENGE PRO9 GRAM.—At the option of the State, to es10 tablish an air time challenge program 

11 under which the State may spend amounts 

12 allotted under this section to purchase time 

13 from a broadcast station to air a broadcast 

14 advertisement produced under subpara15 graph (A), but only if the State obtains an 

16 amount of time of the same class and dur17 ing a comparable period to air the adver18 tisement using non-Federal contributions. 

19 ‘‘(B) OTHER MEDIA CAMPAIGNS.—At the 

20 option of the State, to conduct a media cam21 paign that consists of the production and dis22 tribution of printed or other advertisements 

23 that promote the formation and maintenance of 

24 married 2-parent families, strengthen fragile 

25 families, and promote responsible fatherhood. 
316

•HR 936 IH 

1 ‘‘(2) ADMINISTRATION OF MEDIA CAMPAIGNS.—

2 A State may administer media campaigns funded 

3 under this section directly or through grants, con4 tracts, or cooperative agreements with public agen5 cies, local governments, or private entities, including 

6 charitable and religious organizations. 

7 ‘‘(3) CONSULTATION WITH DOMESTIC VIO8 LENCE ASSISTANCE CENTERS.—In developing broad9 cast and printed advertisements to be used in the 

10 media campaigns conducted under paragraph (1), 

11 the State or other entity administering the campaign 

12 shall consult with representatives of State and local 

13 domestic violence centers. 

14 ‘‘(4) NON-FEDERAL CONTRIBUTIONS.—In this 

15 subsection, the term ‘non-Federal contributions’ in16 cludes contributions by the State and by public and 

17 private entities. Such contributions may be in cash 

18 or in kind. Such term does not include any amounts 

19 provided by the Federal Government, or services as20 sisted or subsidized to any significant extent by the 

21 Federal Government, or any amount expended by a 

22 State before October 1, 2004. 

23 ‘‘(e) RECONCILIATION PROCESS.—

24 ‘‘(1) 3-YEAR AVAILABILITY OF AMOUNTS AL25 LOTTED.—Each State that receives an allotment 
317

•HR 936 IH 

1 under this section shall return to the Secretary any 

2 unused portion of the amount allotted to a State 

3 under this section for a fiscal year not later than the 

4 last day of the second succeeding fiscal year together 

5 with any earnings on such unused portion. 

6 ‘‘(2) PROCEDURE FOR REDISTRIBUTION OF UN7 USED ALLOTMENTS.—The Secretary shall establish 

8 an appropriate procedure for redistributing to States 

9 that have expended the entire amount allotted under 

10 this section any amount that is—

11 ‘‘(A) returned to the Secretary by States 

12 under paragraph (1); or 

13 ‘‘(B) not allotted to a State under this sec14 tion because the State did not submit a certifi15 cation under subsection (b) by October 1 of a 

16 fiscal year. 

17 ‘‘(f) REPORTING REQUIREMENTS.—

18 ‘‘(1) MONITORING AND EVALUATION.—Each 

19 State receiving an allotment under this section for a 

20 fiscal year shall monitor and evaluate the media 

21 campaigns conducted using funds made available 

22 under this section in such manner as the Secretary, 

23 in consultation with the States, determines appro24 priate. 
318

•HR 936 IH 

1 ‘‘(2) ANNUAL REPORTS.—Not less frequently 

2 than annually, each State receiving an allotment 

3 under this section for a fiscal year shall submit to 

4 the Secretary reports on the media campaigns con5 ducted under this section at such time, in such man6 ner, and containing such information as the Sec7 retary may require. 

8 ‘‘(g) AMOUNT OF ALLOTMENTS.—

9 ‘‘(1) IN GENERAL.—Except as provided in para10 graph (2), of the amount appropriated for the pur11 pose of making allotments under this section for a 

12 fiscal year, the Secretary shall allot to each State 

13 that submits a certification under subsection (b) for 

14 the fiscal year an amount equal to the sum of—

15 ‘‘(A) the amount that bears the same ratio 

16 to 50 percent of such funds as the number of 

17 young children in the State (as determined by 

18 the Secretary based on the most recent March 

19 supplement to the Current Population Survey 

20 of the Bureau of the Census before the begin21 ning of the calendar year in which such fiscal 

22 year begins) as bears to the number of such 

23 children in all States; and 

24 ‘‘(B) the amount that bears the same ratio 

25 to 50 percent of such funds as the number of 
319

•HR 936 IH 

1 children at risk in the State (as determined by 

2 the Secretary based on the most recent March 

3 supplement to the Current Population Survey 

4 of the Bureau of the Census before the begin5 ning of the calendar year in which such fiscal 

6 year begins) bears to the number of such chil7 dren in all States. 

8 ‘‘(2) MINIMUM ALLOTMENTS.—No allotment 

9 for a fiscal year under this section shall be less 

10 than—

11 ‘‘(A) in the case of a State other than the 

12 Commonwealth of Puerto Rico, the United 

13 States Virgin Islands, Guam, American Samoa, 

14 and the Commonwealth of the Northern Mar15 iana Islands, 1 percent of the amount appro16 priated for the fiscal year under subsection (h); 

17 and 

18 ‘‘(B) in the case of the Commonwealth of 

19 Puerto Rico, the United States Virgin Islands, 

20 Guam, American Samoa, and the Common21 wealth of the Northern Mariana Islands, 0.5 

22 percent of such amount. 

23 ‘‘(3) PRO RATA REDUCTIONS.—The Secretary 

24 shall make such pro rata reductions to the allot25 ments determined under paragraph (1) as are nec-
320

•HR 936 IH 

1 essary to comply with the requirements of paragraph 

2 (2).

3 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

4 is authorized to be appropriated $25,000,000 for each of 

5 fiscal years 2004 through 2008 for purposes of making 

6 allotments to States under this section.’’. 

7 (b) EVALUATION.—

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

9 Human Services shall conduct an evaluation of the 

10 impact of the media campaigns funded under section 

11 469C of the Social Security Act, as added by sub12 section (a). 

13 (2) REPORT.—Not later than December 31, 

14 2006, the Secretary of Health and Human Services 

15 shall report to Congress the results of the evaluation 

16 under paragraph (1). 

17 (3) AUTHORIZATION OF APPROPRIATIONS.—

18 There is authorized to be appropriated $1,000,000 

19 for fiscal year 2004 for purposes of conducting the 

20 evaluation required under this subsection, to remain 

21 available until expended. 

22 SEC. 2402. RESPONSIBLE FATHERHOOD BLOCK GRANT. 

23 (a) IN GENERAL.—Part D of title IV of the Social 

24 Security Act (42 U.S.C. 651 et seq.), as amended by sec25 tion 2401, is amended by adding at the end the following: 
321

•HR 936 IH 

1 ‘‘SEC. 469D. RESPONSIBLE FATHERHOOD BLOCK GRANT. 

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

3 ‘‘(1) CHILD AT RISK.—The term ‘child at risk’ 

4 has the meaning given such term in section 

5 469C(a)(2). 

6 ‘‘(2) POVERTY LINE.—The term ‘poverty line’ 

7 has the meaning given such term in section 

8 469C(a)(3). 

9 ‘‘(3) STATE.—The term ‘State’ has the mean10 ing given such term in section 469C(a)(5). 

11 ‘‘(4) YOUNG CHILD.—The term ‘young child’ 

12 has the meaning given such term in section 

13 469C(a)(6). 

14 ‘‘(b) STATE CERTIFICATIONS.—Not later than Octo15 ber 1 of each fiscal year for which a State desires to re16 ceive an allotment under this section, the chief executive 

17 officer of the State shall submit to the Secretary a certifi18 cation that the State will—

19 ‘‘(1) comply with the matching requirements 

20 under subsection (c)(2); 

21 ‘‘(2) use such funds to promote responsible fa22 therhood in accordance with the requirements of 

23 subsection (d); 

24 ‘‘(3) use such funds to promote or sustain mar25 riage in accordance with subparagraph (A) or (B) of 

26 subsection (d)(2); 
322

•HR 936 IH 

1 ‘‘(4) return any unused funds to the Secretary 

2 in accordance with the reconciliation process under 

3 subsection (e); and 

4 ‘‘(5) comply with the reporting requirements 

5 under subsection (f). 

6 ‘‘(c) PAYMENTS TO STATES.—

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

8 for each of fiscal years 2004 through 2008, the Sec9 retary shall pay to each State that submits a certifi10 cation described in subsection (b), from any funds 

11 appropriated under subsection (h), for the fiscal year 

12 an amount equal to the amount of the allotment de13 termined under subsection (g). 

14 ‘‘(2) MATCHING REQUIREMENT.—The Sec15 retary may not make a payment to a State under 

16 paragraph (1) unless the State agrees that, with re17 spect to the costs to be incurred by the State in sup18 porting the programs described in subsection (d), 

19 the State will make available non-Federal contribu20 tions in an amount equal to 25 percent of the 

21 amount of Federal funds paid to the State under 

22 such clause. 

23 ‘‘(3) NON-FEDERAL CONTRIBUTIONS.—In this 

24 subsection, the term ‘non-Federal contributions’ in25 cludes contributions by the State and by public and 
323

•HR 936 IH 

1 private entities. Such contributions may be in cash 

2 or in kind. Such term does not include any amounts 

3 provided by the Federal Government, or services as4 sisted or subsidized to any significant extent by the 

5 Federal Government or any amount expended by a 

6 State before October 1, 2004. 

7 ‘‘(d) RESPONSIBLE FATHERHOOD PROGRAMS.—

8 ‘‘(1) SUPPORT OF PROGRAMS.—A State shall 

9 use the allotments received under this section to 

10 support programs described in paragraph (2) di11 rectly or through a grant, contract, or cooperative 

12 agreement with any public agency, local government, 

13 or private entity (including any charitable or reli14 gious organization) with experience in administering 

15 such a program. 

16 ‘‘(2) PROGRAMS DESCRIBED.—Responsible Fa17 therhood programs include programs that—

18 ‘‘(A) promote marriage through such ac19 tivities as counseling, mentoring, disseminating 

20 information about the benefits of marriage and 

21 2-parent involvement for children, enhancing re22 lationship skills, teaching on how to control ag23 gressive behavior, and disseminating informa24 tion on the causes of domestic violence and 

25 child abuse; 
324

•HR 936 IH 

1 ‘‘(B) sustain marriages through marriage 

2 preparation programs, premarital counseling, 

3 marital inventories, skills-based marriage edu4 cation, financial planning seminars, programs 

5 to help parents improve their economic status, 

6 and divorce education and reduction programs, 

7 including mediation and counseling; 

8 ‘‘(C) promote responsible parenting 

9 through such activities as counseling, men10 toring, disseminating information about good 

11 parenting practices, skills-based parenting edu12 cation, encouraging child support payments, 

13 and other methods; and 

14 ‘‘(D) help fathers and their families avoid 

15 or leave cash welfare and improve their eco16 nomic status by providing such activities as 

17 work first services, job search, job training, 

18 subsidized employment, job retention, job en19 hancement, and encouraging education, includ20 ing career-advancing education, dissemination 

21 of employment materials, coordination with ex22 isting employment services such as Welfare to 

23 Work and referrals to local employment train24 ing initiatives, and other methods.
325

•HR 936 IH 

1 ‘‘(3) TARGETED LOW-INCOME PARTICIPANTS.—

2 Not less than 50 percent of the participants in each 

3 program supported under paragraph (1) shall be—

4 ‘‘(A) parents of a child who is, or within 

5 the past 24 months has been, a recipient of as6 sistance or services under a State program 

7 funded under this part; or 

8 ‘‘(B) parents, including an expectant par9 ent or a married parent, whose income (after 

10 adjustment for court-ordered child support paid 

11 or received) does not exceed 150 percent of the 

12 poverty line. 

13 ‘‘(4) CONSULTATION WITH DOMESTIC VIO14 LENCE ASSISTANCE CENTERS.—Each State or entity 

15 administering a program supported under paragraph 

16 (1) shall consult with representatives of State and 

17 local domestic violence centers. 

18 ‘‘(5) SUPPLEMENT NOT SUPPLANT.—Amounts 

19 allotted to a State under this section shall be used 

20 to supplement and not supplant other Federal, 

21 State, or local funds provided to the State under this 

22 part or any other provision of law that are used to 

23 support programs and activities similar to the re24 sponsible fatherhood program described in para25 graph (2). 
326

•HR 936 IH 

1 ‘‘(6) RESTRICTIONS ON USE.—No amount allot2 ted under this section may be used for court pro3 ceedings on matters of child visitation or child cus4 tody, or for legislative advocacy. 

5 ‘‘(e) RECONCILIATION PROCESS.—

6 ‘‘(1) 3-YEAR AVAILABILITY OF AMOUNTS AL7 LOTTED.—Each State that receives an allotment 

8 under this section shall return to the Secretary any 

9 unused portion of the amount allotted to a State 

10 under this section for a fiscal year not later than the 

11 last day of the second succeeding fiscal year, to12 gether with any earnings on such unused portion. 

13 ‘‘(2) PROCEDURE FOR REDISTRIBUTION OF UN14 USED ALLOTMENTS.—The Secretary shall establish 

15 an appropriate procedure for redistributing to States 

16 that have expended the entire amount allotted under 

17 this section any amount that is—

18 ‘‘(A) returned to the Secretary by States 

19 under paragraph (1); or 

20 ‘‘(B) not allotted to a State under this sec21 tion because the State did not submit a certifi22 cation under subsection (b) by October 1 of a 

23 fiscal year. 

24 ‘‘(f) REPORTING REQUIREMENTS.—
327

•HR 936 IH 

1 ‘‘(1) MONITORING AND EVALUATION.—Each 

2 State receiving an allotment under this section shall 

3 monitor and evaluate the programs supported using 

4 funds made available under this section in such 

5 manner as the Secretary, in consultation with the 

6 States, determines appropriate. 

7 ‘‘(2) ANNUAL REPORTS.—Not less frequently 

8 than annually, each State receiving an allotment 

9 under this section for a fiscal year shall submit to 

10 the Secretary reports on the programs supported 

11 under this section at such time, in such manner, and 

12 containing such information as the Secretary may 

13 reasonably require. 

14 ‘‘(g) AMOUNT OF ALLOTMENTS.—

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), of the amount appropriated for the pur17 pose of making allotments under this section for a 

18 fiscal year the Secretary shall allot to each State 

19 that submits a certification under subsection (b) for 

20 that fiscal year an amount equal to the sum of—

21 ‘‘(A) the amount that bears the same ratio 

22 to 50 percent of such funds as the number of 

23 young children in the State (as determined by 

24 the Secretary based on the most recent March 

25 supplement to the Current Population Survey 
328

•HR 936 IH 

1 of the Bureau of the Census before the begin2 ning of the calendar year in which such fiscal 

3 year begins) as bears to the number of such 

4 children in all States; and 

5 ‘‘(B) the amount that bears the same ratio 

6 to 50 percent of such funds as the number of 

7 children at risk in the State (as determined by 

8 the Secretary based on the most recent March 

9 supplement to the Current Population Survey 

10 of the Bureau of the Census before the begin11 ning of the calendar year in which such fiscal 

12 year begins) bears to the number of such chil13 dren in all States. 

14 ‘‘(2) MINIMUM ALLOTMENTS.—No allotment 

15 for a fiscal year under this section shall be less 

16 than—

17 ‘‘(A) in the case of a State other than the 

18 Commonwealth of Puerto Rico, the United 

19 States Virgin Islands, Guam, American Samoa, 

20 and the Commonwealth of the Northern Mar21 iana Islands, 1 percent of the amount appro22 priated for the fiscal year under subsection (h); 

23 and 

24 ‘‘(B) in the case of the Commonwealth of 

25 Puerto Rico, the United States Virgin Islands, 
329

•HR 936 IH 

1 Guam, American Samoa, and the Common2 wealth of the Northern Mariana Islands, 0.5 

3 percent of such amount. 

4 ‘‘(3) PRO RATA REDUCTIONS.—The Secretary 

5 shall make such pro rata reductions to the allot6 ments determined under paragraph (1) as are nec7 essary to comply with the requirements of paragraph 

8 (2). 

9 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

10 is authorized to be appropriated $50,000,000 for each of 

11 fiscal years 2004 through 2008 for purposes of making 

12 allotments to States under this section.’’. 

13 (b) EVALUATION AND REPORT.—

14 (1) EVALUATION.—

15 (A) IN GENERAL.—The Secretary of 

16 Health and Human Services (in this subsection 

17 referred to as the ‘‘Secretary’’), in consultation 

18 with the Secretary of Labor, shall, directly or 

19 through a grant, contract, or interagency agree20 ment, conduct an evaluation of the projects 

21 funded under section 469D of the Social Secu22 rity Act (as added by subsection (a)). 

23 (B) OUTCOMES ASSESSMENT.—The eval24 uation conducted under subparagraph (A) shall 

25 assess, among other outcomes selected by the 
330

•HR 936 IH 

1 Secretary, effects of the projects on marriage, 

2 parenting, employment, earnings, payment of 

3 child support, and incidence of domestic vio4 lence and child abuse. 

5 (C) PROJECT SELECTION.—In selecting 

6 projects for the evaluation, the Secretary should 

7 include projects that are most likely to further 

8 the purposes of this section. 

9 (D) RANDOM ASSIGNMENT.—In conducting 

10 the evaluation, random assignment should be 

11 used wherever possible. 

12 (2) REPORT.—Not later than December 31, 

13 2006, the Secretary shall submit to Congress a re14 port on the results of the evaluation conducted 

15 under paragraph (1). 

16 (3) AUTHORIZATION OF APPROPRIATIONS.—

17 There is authorized to be appropriated $1,000,000 

18 for each of fiscal years 2004 through 2008 to carry 

19 out this subsection. 

20 CHAPTER 2—NATIONAL CLEARINGHOUSE 

21 SEC. 2411. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE 

22 FATHERHOOD PROGRAMS. 

23 Part D of title IV of the Social Security Act (42 

24 U.S.C. 651), as amended by section 2402, is amended by 

25 adding at the end the following: 
331

•HR 936 IH 

1 ‘‘SEC. 469E. MEDIA CAMPAIGN NATIONAL CLEARINGHOUSE 

2 FOR RESPONSIBLE FATHERHOOD. 

3 ‘‘(a) MEDIA CAMPAIGN AND NATIONAL CLEARING4 HOUSE.—

5 ‘‘(1) IN GENERAL.—From any funds appro6 priated under subsection (c), the Secretary shall con7 tract with a nationally recognized, nonprofit father8 hood promotion organization described in subsection 

9 (b) to—

10 ‘‘(A) develop, promote, and distribute to 

11 interested States, local governments, public 

12 agencies, and private entities a media campaign 

13 that encourages the appropriate involvement of 

14 both parents in the life of any child of the par15 ents, with a priority for programs that specifi16 cally address the issue of responsible father17 hood; and 

18 ‘‘(B) develop a national clearinghouse to 

19 assist States and communities in efforts to pro20 mote and support marriage and responsible fa21 therhood by collecting, evaluating, and making 

22 available (through the Internet and by other 

23 means) to other States information regarding 

24 the media campaigns established under section 

25 469C. 
332

•HR 936 IH 

1 ‘‘(2) COORDINATION WITH DOMESTIC VIOLENCE

2 PROGRAMS.—The Secretary shall ensure that the na3 tionally recognized nonprofit fatherhood promotion 

4 organization with a contract under paragraph (1) 

5 coordinates the media campaign developed under 

6 subparagraph (A) of such paragraph and the na7 tional clearinghouse developed under subparagraph 

8 (B) of such paragraph with a national, State, or 

9 local domestic violence program. 

10 ‘‘(b) NATIONALLY RECOGNIZED, NONPROFIT FA11 THERHOOD PROMOTION ORGANIZATION DESCRIBED.—

12 The nationally recognized, nonprofit fatherhood promotion 

13 organization described in this subsection is such an orga14 nization that has at least 4 years of experience in—

15 ‘‘(1) designing and disseminating a national 

16 public education campaign, including the production 

17 and successful placement of television, radio, and 

18 print public service announcements that promote the 

19 importance of responsible fatherhood; and 

20 ‘‘(2) providing consultation and training to 

21 community-based organizations interested in imple22 menting fatherhood outreach, support, or skill devel23 opment programs with an emphasis on promoting 

24 married fatherhood as the ideal. 
333

•HR 936 IH 

1 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

2 is authorized to be appropriated $2,000,000 for each of 

3 fiscal years 2004 through 2008 to carry out this section.’’.

4 TITLE III—HEAD START AND 

5 CHILD CARE

6 Subtitle A—Infants and Toddlers 

7 SEC. 3001. RESERVATION OF HEAD START ACT FUNDS FOR 

8 INFANTS AND TODDLERS. 

9 Section 640(a)(6) of the Head Start Act (42 U.S.C. 

10 9835(a)(6)) is amended—

11 (1) by striking subparagraph (A) and inserting 

12 the following: 

13 ‘‘(A) Except as provided in subparagraph (B), from 

14 amounts reserved and allotted pursuant to paragraphs (2) 

15 and (4), the Secretary shall use, for grants for programs 

16 described in section 645A(a), a portion of the combined 

17 total of such amounts equal to—

18 ‘‘(i) 11 percent of the funds appropriated pur19 suant to section 639(a) for fiscal year 2004; 

20 ‘‘(ii) 12 percent of such funds for fiscal year 

21 2005; 

22 ‘‘(iii) 13 percent of such funds for fiscal year 

23 2006; 

24 ‘‘(iv) 14 percent of such funds for fiscal year 

25 2007; 
334

•HR 936 IH 

1 ‘‘(v) 15 percent of such funds for fiscal year 

2 2008; 

3 ‘‘(vi) 20 percent of such funds for fiscal year 

4 2009; 

5 ‘‘(vii) 25 percent of such funds for fiscal year 

6 2010; 

7 ‘‘(viii) 30 percent of such funds for fiscal year 

8 2011; 

9 ‘‘(ix) 35 percent of such funds for fiscal year 

10 2012; and 

11 ‘‘(x) 41 percent of such funds for fiscal year 

12 2013.’’; and 

13 (2) in subparagraph (B)—

14 (A) by striking clause (i); and 

15 (B) by redesignating clauses (ii) and (iii) 

16 as clauses (i) and (ii), respectively. 

17 SEC. 3002. RESERVATION OF CHILD CARE AND DEVELOP18 MENT BLOCK GRANT FUNDS FOR INFANTS 

19 AND TODDLERS. 

20 Section 658G of the Child Care and Development 

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

22 (1) by striking the heading and inserting the 

23 following:
335

•HR 936 IH 

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

2 CHILD CARE AND ACTIVITIES FOR INFANTS 

3 AND TODDLERS.’’; 

4 (2) by inserting before ‘‘A State’’ the following: 

5 ‘‘(a) ACTIVITIES TO IMPROVE THE QUALITY OF

6 CHILD CARE.—’’; and 

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

8 ‘‘(b) ACTIVITIES FOR INFANTS AND TODDLERS.—A 

9 State that receives funds to carry out this subchapter 

10 (other than section 658H) for a fiscal year shall use, for 

11 activities that are designed to improve and expand child 

12 care for children from birth through age 3, not less than—

13 ‘‘(1) 5 percent of such funds for fiscal year 

14 2004; 

15 ‘‘(2) 6 percent of such funds for fiscal year 

16 2005; 

17 ‘‘(3) 7 percent of such funds for fiscal year 

18 2006; 

19 ‘‘(4) 8 percent of such funds for fiscal year 

20 2007; 

21 ‘‘(5) 9 percent of such funds for fiscal year 

22 2008; and 

23 ‘‘(6) 10 percent of such funds for fiscal year 

24 2009.’’. 
336

•HR 936 IH 

1 Subtitle B—Child Care Access 

2 CHAPTER 1—IMPROVING ACCESS TO 

3 CHILD CARE 

4 SEC. 3011. INCENTIVE GRANTS TO STATES. 

5 The Child Care and Development Block Grant Act 

6 of 1990 (42 U.S.C. 9858 et seq.) is amended by inserting 

7 after section 658G the following: 

8 ‘‘SEC. 658H. INCENTIVE GRANTS TO STATES. 

9 ‘‘(a) AUTHORITY.—

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

11 amount made available under section 658B(b) for a 

12 fiscal year to make grants to eligible States, and In13 dian tribes and tribal organizations, in accordance 

14 with this section. 

15 ‘‘(2) ANNUAL PAYMENTS.—The Secretary shall 

16 make an annual payment for such a grant to each 

17 eligible State, and for Indian tribes and tribal orga18 nizations, out of the corresponding allotment deter19 mined under subsection (b). 

20 ‘‘(b) ALLOTMENTS.—For each fiscal year, the Sec21 retary shall allot to each eligible State (and to Indian 

22 tribes and tribal organizations) an amount that bears the 

23 same ratio to the amount made available under section 

24 658B(b) for the fiscal year as the amount the State (or 

25 the Indian tribes and tribal organizations) receive under 
337

•HR 936 IH 

1 section 658O for the fiscal year bears to the total amount 

2 received by all eligible States (and Indian tribes and tribal 

3 organizations) under that section for the fiscal year. 

4 ‘‘(c) ELIGIBLE STATES.—

5 ‘‘(1) IN GENERAL.—To be eligible to receive a 

6 grant under this section, a State shall—

7 ‘‘(A) have conducted a survey of the mar8 ket rates for child care services in the State 

9 within the 2 years preceding the date of the 

10 submission of an application under paragraph 

11 (2); and 

12 ‘‘(B) submit an application in accordance 

13 with paragraph (2). 

14 ‘‘(2) APPLICATION.—

15 ‘‘(A) IN GENERAL.—To be eligible to re16 ceive a grant under this section, a State shall 

17 submit an application to the Secretary at such 

18 time, in such manner, and accompanied by such 

19 information, in addition to the information re20 quired under subparagraph (B), as the Sec21 retary may require. 

22 ‘‘(B) INFORMATION REQUIRED.—Each ap23 plication submitted for a grant under this sec24 tion shall—
338

•HR 936 IH 

1 ‘‘(i) detail the methodology and re2 sults of the State market rates survey con3 ducted pursuant to paragraph (1)(A); 

4 ‘‘(ii) describe the State’s plan to in5 crease payment rates from the initial base6 line determined under clause (i); 

7 ‘‘(iii) describe how the State will in8 crease payment rates in accordance with 

9 the market survey results, for all types of 

10 child care providers who provide services 

11 for which assistance is made available 

12 under this subchapter; 

13 ‘‘(iv) describe how payment rates will 

14 be set to reflect the variations in the cost 

15 of providing care for children of different 

16 ages and different types of care; and 

17 ‘‘(v) describe how the State will 

18 prioritize increasing payment rates for—

19 ‘‘(I) care of higher-than-average 

20 quality, such as care by accredited 

21 providers or care that includes the 

22 provision of comprehensive services; 

23 and 

24 ‘‘(II) care that is difficult to find, 

25 such as care provided at nonstandard 
339

•HR 936 IH 

1 hours, care for children with special 

2 needs, care in low-income and rural 

3 communities, and care of a type that 

4 is in short supply. 

5 ‘‘(3) CONTINUING ELIGIBILITY REQUIRE6 MENT.—

7 ‘‘(A) SECOND AND SUBSEQUENT PAY8 MENTS.—A State shall be eligible to receive a 

9 second or subsequent annual payment under 

10 this section only if the Secretary determines 

11 that the State has made progress, through the 

12 activities assisted under this subchapter, in 

13 maintaining increased payment rates. 

14 ‘‘(B) THIRD AND SUBSEQUENT PAY15 MENTS.—A State shall be eligible to receive a 

16 third or subsequent annual payment under this 

17 section only if the State has conducted, at least 

18 once every 2 years, an update of the survey de19 scribed in paragraph (1)(A). 

20 ‘‘(4) REQUIREMENT OF MATCHING FUNDS.—

21 ‘‘(A) IN GENERAL.—To be eligible to re22 ceive a grant under this section, a State shall 

23 agree to make available State contributions 

24 from State sources toward the costs of the ac25 tivities to be carried out by the State pursuant 
340

•HR 936 IH 

1 to subsection (d) in an amount that is not less 

2 than 20 percent of such costs. 

3 ‘‘(B) DETERMINATION OF STATE CON4 TRIBUTIONS.—The State contributions shall be 

5 in cash. Amounts provided by the Federal Gov6 ernment may not be included in determining 

7 the amount of such State contributions. 

8 ‘‘(d) USE OF FUNDS.—An eligible State that receives 

9 funds through a grant made under this section shall use 

10 the funds to significantly increase the payment rate for 

11 the provision of child care services for which assistance 

12 is provided under this subchapter, up to the 150th per13 centile of the market rate determined under the market 

14 rate survey described in subsection (c)(1)(A). 

15 ‘‘(e) EVALUATIONS AND REPORTS.—

16 ‘‘(1) STATE EVALUATIONS.—Each eligible State 

17 shall submit to the Secretary, at such time and in 

18 such form and manner as the Secretary may require, 

19 information regarding the State’s efforts to increase 

20 payment rates and the impact increased payment 

21 rates are having on the quality of, and accessibility 

22 to, child care in the State. 

23 ‘‘(2) REPORTS TO CONGRESS.—The Secretary 

24 shall submit biennial reports to Congress on the in25 formation described in paragraph (1). Such reports 
341

•HR 936 IH 

1 shall include data from the applications submitted 

2 under subsection (c)(2) as a baseline for determining 

3 the progress of each eligible State in maintaining in4 creased payment rates. 

5 ‘‘(f) INDIAN TRIBES AND TRIBAL ORGANIZATIONS.—

6 The Secretary shall determine the manner in which and 

7 the extent to which the provisions of this section apply 

8 to Indian tribes and tribal organizations. 

9 ‘‘(g) PAYMENT RATE.—In this section, the term ‘pay10 ment rate’ means the rate of reimbursement to providers 

11 for subsidized child care.’’. 

12 SEC. 3012. PAYMENT RATES. 

13 Section 658E(c)(4) of the Child Care and Develop14 ment Block Grant Act of 1990 (42 U.S.C. 9858c(c)(4)) 

15 is amended—

16 (1) by redesignating subparagraph (B) as sub17 paragraph (C); 

18 (2) in subparagraph (A), by striking ‘‘to com19 parable child care services’’ and inserting ‘‘to child 

20 care services that are comparable (in terms of qual21 ity and types of services provided) to child care serv22 ices’’; and 

23 (3) by inserting after subparagraph (A) the fol24 lowing: 

25 ‘‘(B) PAYMENT RATES.—
342

•HR 936 IH 

1 ‘‘(i) SURVEYS.—In order to provide 

2 the certification described in subparagraph 

3 (A), the State shall conduct market rate 

4 surveys (that reflect variations in the cost 

5 of child care services by locality) not less 

6 often than at 2-year intervals, and use the 

7 results of such surveys to implement pay8 ment rates described in subparagraph (A) 

9 that ensure equal access to comparable 

10 services as required by subparagraph (A). 

11 ‘‘(ii) COST OF LIVING ADJUST12 MENTS.—The State shall adjust the pay13 ment rates at intervals between such sur14 veys to reflect increases in the cost of liv15 ing, in such manner as the Secretary may 

16 specify. 

17 ‘‘(iii) RATES FOR DIFFERENT AGES

18 AND TYPES OF CARE.—The State shall en19 sure that the payment rates reflect vari20 ations in the cost of providing child care 

21 services for children of different ages and 

22 providing different types of care.’’. 
343

•HR 936 IH 

1 CHAPTER 2—IMPROVEMENTS IN ACCESS 

2 TO CHILD CARE 

3 SEC. 3111. GOALS. 

4 Section 658A(b) of the Child Care and Development 

5 Block Grant Act of 1990 (42 U.S.C. 9801 note) is amend6 ed—

7 (1) in paragraph (4), by striking ‘‘assistance; 

8 and’’ and inserting ‘‘assistance, and to other low-in9 come parents;’’; 

10 (2) in paragraph (5)—

11 (A) by inserting ‘‘training,’’ after ‘‘safe12 ty,’’; and 

13 (B) by striking the period and inserting ‘‘; 

14 and’’; and 

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

16 ‘‘(6) to assist States to provide access to high 

17 quality child care that promotes early learning and 

18 facilitates school readiness for all children, including 

19 children with disabilities or other special needs.’’. 

20 SEC. 3112. AUTHORIZATION OF APPROPRIATIONS. 

21 (a) CHILD CARE AND DEVELOPMENT BLOCK GRANT

22 ACT OF 1990.—Section 658B of the Child Care and De23 velopment Block Grant Act of 1990 (42 U.S.C. 9858) is 

24 amended to read as follows: 
344

•HR 936 IH 

1 ‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘(a) IN GENERAL.—There are authorized to be ap3 propriated to carry out this subchapter (other than section 

4 658H)—

5 ‘‘(1) $3,500,000,000 for fiscal year 2004; 

6 ‘‘(2) $4,400,000,000 for fiscal year 2005; 

7 ‘‘(3) $5,300,000,000 for fiscal year 2006; 

8 ‘‘(4) $6,200,000,000 for fiscal year 2007; 

9 ‘‘(5) $7,550,000,000 for fiscal year 2008; 

10 ‘‘(6) $8,900,000,000 for fiscal year 2009; 

11 ‘‘(7) $10,700,000,000 for fiscal year 2010; 

12 ‘‘(8) $12,950,000,000 for fiscal year 2011; 

13 ‘‘(9) $16,100,000,000 for fiscal year 2012; and 

14 ‘‘(10) $20,159,000,000 for fiscal year 2013. 

15 ‘‘(b) AUTHORIZATION FOR PAYMENT RATES.—There 

16 are authorized to be appropriated to carry out section 

17 658H $500,000,000 for fiscal year 2004 and such sums 

18 as may be necessary for each of fiscal years 2005 through 

19 2013.’’. 

20 (b) SOCIAL SECURITY ACT.—Section 418(a)(3) of 

21 the Social Security Act (42 U.S.C. 618(a)(3)) is amended 

22 by striking subparagraphs (A) through (F) and inserting 

23 the following: 

24 ‘‘(A) $3,817,000,000 for fiscal year 2004; 

25 ‘‘(B) $4,917,000,000 for fiscal year 2005; 

26 ‘‘(C) $6,017,000,000 for fiscal year 2006; 
345

•HR 936 IH 

1 ‘‘(D) $7,117,000,000 for fiscal year 2007; 

2 ‘‘(E) $8,767,000,000 for fiscal year 2008; 

3 ‘‘(F) $10,417,000,000 for fiscal year 2009; 

4 ‘‘(G) $12,617,000,000 for fiscal year 2010; 

5 ‘‘(H) $15,367,000,000 for fiscal year 

6 2011; 

7 ‘‘(I) $19,217,000,000 for fiscal year 2012; 

8 and 

9 ‘‘(J) $24,178,000,000 for fiscal year 

10 2013.’’. 

11 SEC. 3113. STATE PLAN REQUIREMENTS. 

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

13 Block Grant Act of 1990 (42 U.S.C. 9858c(c)) is amend14 ed—

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

16 (D) and inserting the following: 

17 ‘‘(D) CONSUMER AND CHILD CARE PRO18 VIDER INFORMATION.—

19 ‘‘(i) CERTIFICATION.—Certify that 

20 the State will collect and disseminate, 

21 through organizations (including organiza22 tions that provide resource and referral 

23 services) and through other means as de24 termined appropriate by the State, to par25 ents of eligible children and the general 
346

•HR 936 IH 

1 public, consumer education information 

2 that will promote informed child care 

3 choices, including information about qual4 ity child care that meets the social, emo5 tional, physical, and cognitive develop6 mental needs of children. 

7 ‘‘(ii) DESCRIPTION.—Describe how 

8 the State will—

9 ‘‘(I) ensure that staff from the 

10 lead agency will coordinate activities 

11 with the staff of the State program 

12 funded under part A of title IV of the 

13 Social Security Act (42 U.S.C. 601 et 

14 seq.) to inform parents who are apply15 ing for, receiving, or ending assistance 

16 under the State program about eligi17 bility for assistance under this sub18 chapter and local resource and refer19 ral services; and 

20 ‘‘(II) inform other low-income 

21 parents about such eligibility and 

22 services.’’; and 

23 (C) by adding at the end the following new 

24 subparagraphs: 
347

•HR 936 IH 

1 ‘‘(I) ENHANCEMENT OF PARENTAL AC2 CESS.—Describe how the State will improve pa3 rental access to eligibility procedures during the 

4 process of establishing eligibility in order to ob5 tain or retain assistance under this subchapter, 

6 including improving access by simplifying appli7 cations for assistance and otherwise simplifying 

8 the process by adopting procedures and prac9 tices such as—

10 ‘‘(i) posting eligibility forms and infor11 mation about needed documentation on 

12 State websites and in other places fre13 quented by parents with children such as 

14 libraries, health care facilities, schools, and 

15 offices of the special supplemental nutri16 tion program for women, infants, and chil17 dren established by section 17 of the Child 

18 Nutrition Act of 1966 (42 U.S.C. 1786); 

19 ‘‘(ii) minimizing requests for docu20 mentation, and utilizing documents already 

21 on file; 

22 ‘‘(iii) providing applications at mul23 tiple sites; 

24 ‘‘(iv) offering nonconventional hours 

25 of operation at eligibility offices and pro-
348

•HR 936 IH 

1 viding toll-free telephone lines, including 

2 during evening and weekend hours, to han3 dle eligibility issues; 

4 ‘‘(v) providing expedited procedures 

5 for changing child care providers; 

6 ‘‘(vi) calculating eligibility in a way 

7 that permits the averaging of hours of em8 ployment or participation in a job training 

9 or educational program, or of income, 

10 across a number of months, in order to 

11 provide for continuing eligibility without 

12 the necessity for frequent reporting of 

13 small changes in family circumstances; and 

14 ‘‘(vii) establishing a coordinated, 

15 seamless eligibility system so that, regard16 less of the source of funding for the assist17 ance, families do not have to file additional 

18 applications and the assistance is provided 

19 in a way that does not disrupt families and 

20 supports continuity of care. 

21 ‘‘(J) ELIGIBILITY REDETERMINATION.—

22 ‘‘(i) REDETERMINATION PROCESS.—

23 Demonstrate that for the purposes of rede24 termination of eligibility of a child under 

25 this subchapter, and for the reporting of 
349

•HR 936 IH 

1 changes as provided for in clauses (iii) and 

2 (iv), the State will have in place procedures 

3 that allow a working parent access to the 

4 redetermination process and allow for the 

5 reporting of changes without unduly dis6 rupting the parent’s employment, which 

7 procedures may include—

8 ‘‘(I) the provision of extended of9 fice hours such as office hours before 

10 8 a.m., after 6 p.m., or on the week11 end; and 

12 ‘‘(II) the use of postal mail or 

13 electronic communications such as 

14 communications by telephone, fax, or 

15 electronic mail, and provision of a re16 ceipt providing confirmation. 

17 ‘‘(ii) MINIMUM PERIOD.—Dem18 onstrate that each child that receives as19 sistance under this subchapter in the State 

20 will receive such assistance for not less 

21 than 1 year before the State redetermines 

22 the eligibility of the child under this sub23 chapter, except as provided in clauses (iii) 

24 and (iv). 
350

•HR 936 IH 

1 ‘‘(iii) CHILD NO LONGER LIVING IN

2 THE HOME.—Demonstrate that the State 

3 will ensure that policies and procedures are 

4 in place to require that a parent report to 

5 the lead agency, during the period prior to 

6 redetermination, if the family no longer 

7 needs assistance under this subchapter for 

8 a child because the child is no longer in 

9 the home. 

10 ‘‘(iv) PARENT NO LONGER ENGAGED

11 IN WORK-RELATED ACTIVITIES.—

12 ‘‘(I) IN GENERAL.—Demonstrate 

13 that the State will ensure that policies 

14 and procedures are in place to require 

15 that a parent report to the lead agen16 cy, during the period prior to redeter17 mination, the loss of work or cessation 

18 of attendance of a job training or edu19 cational program for which the family 

20 was receiving assistance under this 

21 subchapter. 

22 ‘‘(II) PERIOD BEFORE TERMI23 NATION.—At the option of the State, 

24 demonstrate that the State will not 

25 terminate the assistance based on the 
351

•HR 936 IH 

1 loss of work or cessation of attend2 ance without continuing the assistance 

3 for a reasonable period of time, of not 

4 less than 1 month, after such loss or 

5 cessation in order for the parent to 

6 engage in a job search and resume 

7 work, or resume attendance of a job 

8 training or educational program, as 

9 soon as possible. 

10 ‘‘(K) INFORMATION ON FOOD PRO11 GRAMS.—Certify that the State will collect and 

12 disseminate, to each child care provider that 

13 provides services for which assistance is made 

14 available under this subchapter, materials that 

15 include—

16 ‘‘(i) an explanation of the benefits, 

17 and the importance to children and pro18 viders, of the child and adult care food 

19 program established under section 17 of 

20 the Richard B. Russell National School 

21 Lunch Act (42 U.S.C. 1766); and 

22 ‘‘(ii) information concerning how ben23 efits under the program may be obtained. 

24 ‘‘(L) NO SUPPLANTING OF PRIOR SPEND25 ING.—
352

•HR 936 IH 

1 ‘‘(i) REPORT.—Report the amount of 

2 Federal funds (other than funds made 

3 available under this subchapter or section 

4 418 of the Social Security Act (42 U.S.C. 

5 618)), State funds, and local funds (to the 

6 extent such local funds were counted to7 ward State matching or maintenance of ef8 fort obligations under this subchapter or 

9 that section 418), that were expended in 

10 the State to provide assistance for child 

11 care services and to improve the quality of 

12 child care services provided in the State 

13 during fiscal year 2002. 

14 ‘‘(ii) ASSURANCE.—Provide an assur15 ance that funds made available to the 

16 State under this subchapter or that section 

17 418 will be used to supplement and not 

18 supplant the Federal funds (other than 

19 funds made available under this sub20 chapter or that section 418), State funds, 

21 and local funds (to the extent such local 

22 funds were counted toward State matching 

23 or maintenance of effort obligations under 

24 this subchapter or that section 418), that 

25 were expended in the State to provide as-
353

•HR 936 IH 

1 sistance for such services and to improve 

2 the quality of such services provided in the 

3 State during fiscal year 2002.’’. 

4 SEC. 3114. FUNDS FOR INDIAN TRIBES. 

5 (a) INCREASE IN RESERVATION.—Section 

6 658O(a)(2) of the Child Care and Development Block 

7 Grant Act of 1990 (42 U.S.C. 9858m(a)(2)) is amended 

8 by striking ‘‘1 percent, and not more than 2 percent,’’ and 

9 inserting ‘‘2 percent’’. 

10 (b) PAYMENTS FOR THE BENEFIT OF INDIAN CHIL11 DREN.—

12 (1) CHILD CARE SERVICES REQUIREMENTS.—

13 Section 658O(c)(2) of the Child Care and Develop14 ment Block Grant Act of 1990 (42 U.S.C. 

15 9858m(c)(2)) is amended by adding at the end the 

16 following: 

17 ‘‘(D) CHILD CARE SERVICES REQUIRE18 MENTS.—The applicant will— 

19 ‘‘(i) establish requirements applicable 

20 to child care services (including require21 ments designed to protect the health and 

22 safety of children), which shall—

23 ‘‘(I) be stated in the application; 

24 and 
354

•HR 936 IH 

1 ‘‘(II) notwithstanding any other 

2 provision of law, including subpara3 graphs (E), (F), and (G) of section 

4 658E(c)(2), be the child care services 

5 requirements applicable to child care 

6 providers that receive funds from the 

7 applicant to provide services under 

8 this subchapter; and 

9 ‘‘(ii) submit such reports to the Sec10 retary concerning compliance with the re11 quirements as the Secretary may require.’’. 

12 (2) NEGOTIATED RULEMAKING.—Section 

13 658O(c) of the Child Care and Development Block 

14 Grant Act of 1990 (42 U.S.C. 9858m(c)) is amend15 ed—

16 (A) by redesignating paragraphs (4), (5), 

17 and (6) as paragraphs (5), (6), and (7), respec18 tively; and 

19 (B) by inserting after paragraph (3) the 

20 following: 

21 ‘‘(4) NEGOTIATED RULEMAKING.—In deter22 mining the amount of the base amount provided to 

23 Indian tribes and tribal organizations under this 

24 subsection, the Secretary shall conduct a negotiated 

25 rulemaking. The Secretary shall include in the nego-
355

•HR 936 IH 

1 tiated rulemaking committee representatives of the 

2 Indian tribes and tribal organizations that the Sec3 retary determines to be eligible to receive grants or 

4 contracts under this subsection. The Secretary shall 

5 conduct the negotiated rulemaking in accordance 

6 with subchapter III of chapter 5 of title 5, United 

7 States Code, as in effect on November 28, 1996.’’. 

8 (3) CONSTRUCTION OR RENOVATION.—Para9 graph (7)(C) of section 658O(c) of the Child Care 

10 and Development Block Grant Act of 1990 (as re11 designated by paragraph (2)(A)) is amended—

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

13 following: 

14 ‘‘(i) IN GENERAL.—Except as pro15 vided in clause (ii), the’’; and 

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

17 ‘‘(ii) TEMPORARY DECREASE.—The 

18 Secretary may permit an Indian tribe or 

19 tribal organization to use amounts pro20 vided under this subsection for construc21 tion or renovation even if such use will re22 sult in a temporary decrease described in 

23 clause (i), if—

24 ‘‘(I) the Secretary determines 

25 that the construction or renovation 
356

•HR 936 IH 

1 will enable the tribe or organization to 

2 increase, in fiscal years subsequent to 

3 the year for which the determination 

4 under subparagraph (B) is made, the 

5 level of child care services provided by 

6 the tribe or organization as compared 

7 to the level of such services provided 

8 by the tribe or organization in the fis9 cal year for which the determination 

10 is made; and 

11 ‘‘(II) the tribe or organization 

12 submits to the Secretary, and obtains 

13 approval of, a multi-year plan for the 

14 construction or renovation.’’. 

15 (c) CONFORMING AMENDMENTS.—

16 (1) Section 658E(c)(2)(E) of the Child Care 

17 and Development Block Grant Act of 1990 (42 

18 U.S.C. 9858c(c)(2)(E) is amended—

19 (A) by striking the following: 

20 ‘‘(E) COMPLIANCE WITH STATE LICENSING

21 REQUIREMENTS.—

22 ‘‘(i) IN GENERAL.—Certify’’ and in23 serting the following: 

24 ‘‘(E) COMPLIANCE WITH STATE LICENSING

25 REQUIREMENTS.—Certify’’; and 
357

•HR 936 IH 

1 (B) by striking clause (ii). 

2 (2) Section 658F(b)(1) of the Child Care and 

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

4 9858d(b)(1)) is amended by striking ‘‘658O(c)(6)’’ 

5 and inserting ‘‘658O(c)(7)’’. 

6 SEC. 3115. DEFINITIONS. 

7 Section 658P(4)(C) of the Child Care and Develop8 ment Block Grant Act of 1990 (42 U.S.C. 9858n(4)(C)) 

9 is amended—

10 (1) in clause (i), by striking ‘‘or’’ at the end; 

11 (2) in clause (ii), by striking the period and in12 serting ‘‘; or’’; and 

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

14 ‘‘(iii) is a foster child.’’.

15 Subtitle C—Child Care Quality 

16 Improvement 

17 CHAPTER 1—FOCUS ON COMMITTED AND 

18 UNDERPAID STAFF FOR CHILDREN’S 

19 SAKE

20 SEC. 3201. SHORT TITLE. 

21 This chapter may be cited as the ‘‘Focus On Com22 mitted and Underpaid Staff for Children’s Sake Act’’ or 

23 as the ‘‘FOCUS Act’’.
358

•HR 936 IH 

1 SEC. 3202. FINDINGS AND PURPOSE. 

2 (a) FINDINGS.—Congress makes the following find3 ings: 

4 (1) Research on early brain development and 

5 early childhood demonstrates that the experiences 

6 children have and the attachments children form 

7 early in life have a decisive, long-lasting impact on 

8 their later development and learning. 

9 (2) High-quality, developmentally appropriate 

10 child care beginning in early childhood and con11 tinuing through the years that children are in school 

12 improves the scholastic success and educational at13 tainment of children, and the success and attain14 ment persist into adulthood. 

15 (3) According to a growing body of research, 

16 the single most important determinant of child care 

17 quality is the presence of consistent, sensitive, well18 trained, and well-compensated child care providers. 

19 However, child care programs nationwide experience 

20 high turnover in teaching staff, fueled by poor com21 pensation and few opportunities for advancement. 

22 (4) The Department of Labor reports that, in 

23 2001, the average wage for a child care provider was 

24 $8.16 per hour, or $16,980 annually. For full-time, 

25 full-year work, the average annual wage for a child 

26 care provider was not much above the 2001 poverty 
359

•HR 936 IH 

1 line of $14,630 for a family consisting of a parent 

2 and 2 children. Family child care providers earned 

3 even less. The median weekly wage of a family child 

4 care provider in 2001 was $264, which equals an an5 nual wage of $13,728. 

6 (5) Despite the important role child care pro7 viders may play in early child development and 

8 learning, on average, a child care provider earns less 

9 in a year than a bus driver ($29,430), barber 

10 ($21,190), or janitor ($19,800). 

11 (6) Employer-sponsored benefits are minimal 

12 for most child care staff. Even for child care pro13 viders at child care centers, the availability of health 

14 care coverage for staff remains woefully inadequate. 

15 (7) To offer compensation that would be suffi16 cient to attract and retain qualified child care pro17 viders, child care programs would have to charge 

18 parents fees that many parents could not afford. For 

19 programs that serve low-income children whose fami20 lies qualify for Federal and State child care sub21 sidies, the reimbursement rates set by the State 

22 strongly influence the level of compensation that 

23 staff receive. Current reimbursement rates for cen24 ter-based child care services and family child care 

25 services are insufficient to recruit and retain quali-
360

•HR 936 IH 

1 fied child care providers and to ensure high-quality 

2 services for children. 

3 (8) Teachers leaving the profession are being 

4 replaced by staff with less education and formal 

5 training in early child development. 

6 (9) As a result of low wages and limited bene7 fits, many child care providers do not work for long 

8 periods in the child care field. Approximately 30 per9 cent of all teaching staff employed at child care cen10 ters leaves employment with a child care center each 

11 year. 

12 (10) Child care providers, as well as the chil13 dren, families, and businesses that depend upon the 

14 providers, suffer the consequences of inadequate 

15 compensation. This is true, with few exceptions, for 

16 providers in all types of programs, including sub17 sidized and nonsubsidized programs, programs of18 fered by for-profit and nonprofit entities, and pro19 grams in large and small child care settings. 

20 (11) Because of the severe nationwide shortage 

21 of qualified staff available for employment by child 

22 care programs, several States have recently initiated 

23 programs to improve the quality of child care by in24 creasing the training and compensation of child care 

25 providers. Such programs encourage the training, 
361

•HR 936 IH 

1 education, and increased retention of qualified child 

2 care providers by offering financial incentives, in3 cluding scholarships and increases in compensation, 

4 that range from $350 to $6,500 annually. 

5 (b) PURPOSES.—The purposes of this chapter are—

6 (1) to establish the Child Care Provider Devel7 opment and Retention Grant Program and the Child 

8 Care Provider Scholarship Program; and 

9 (2) to help children receive the high quality 

10 child care and early education the children need for 

11 positive cognitive and social development, by reward12 ing and promoting the retention of committed, quali13 fied child care providers and by providing financial 

14 assistance to improve the educational qualifications 

15 of child care providers. 

16 SEC. 3203. DEFINITIONS. 

17 In this chapter: 

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

19 care provider’’ means an individual who provides a 

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

21 for compensation for—

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

23 is licensed or regulated under State or local law 

24 and that satisfies the State and local require-
362

•HR 936 IH 

1 ments applicable to the child care services pro2 vided; 

3 (B) a licensed or regulated family child 

4 care provider that satisfies the State and local 

5 requirements applicable to the child care serv6 ices provided; or 

7 (C) an out-of-school time program that is 

8 licensed or regulated under State or local law 

9 and that satisfies the State and local require10 ments applicable to the child care services pro11 vided. 

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

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

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

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

16 9858n). 

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

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

19 Indian Self-Determination and Education Assistance 

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

21 (4) IN-KIND CONTRIBUTION.—The term ‘‘in22 kind contribution’’ means payment of the costs of 

23 participation of eligible child care providers in health 

24 insurance programs or retirement programs. 
363

•HR 936 IH 

1 (5) LEAD AGENCY.—The term ‘‘lead agency’’ 

2 means the agency designated under section 658D of 

3 the Child Care and Development Block Grant Act of 

4 1990 (42 U.S.C. 9858b). 

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

6 the Secretary of Health and Human Services. 

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

8 the several States, the District of Columbia, the 

9 Commonwealth of Puerto Rico, Guam, American 

10 Samoa, or the Commonwealth of the Northern Mar11 iana Islands. 

12 (8) TRIBAL ORGANIZATION.—The term ‘‘tribal 

13 organization’’ has the meaning given the term in 

14 section 4 of the Indian Self-Determination and Edu15 cation Assistance Act (25 U.S.C. 450b). 

16 SEC. 3204. FUNDS FOR CHILD CARE PROVIDER DEVELOP17 MENT AND RETENTION GRANTS AND FOR 

18 CHILD CARE PROVIDER SCHOLARSHIPS. 

19 (a) IN GENERAL.—The Secretary may allot and dis20 tribute funds appropriated to carry out this chapter to eli21 gible States and Indian tribes and tribal organizations to 

22 pay for the Federal share of the cost of making grants 

23 under sections 3207 and 3208 to eligible child care pro24 viders. 
364

•HR 936 IH 

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

2 distributed by the Secretary in accordance with section 

3 3205, and expended by the States (directly, or at the op4 tion of the States, through units of general purpose local 

5 government), and by Indian tribes and tribal organiza6 tions, in accordance with this chapter. 

7 SEC. 3205. ALLOTMENTS TO STATES. 

8 (a) AMOUNTS RESERVED.—

9 (1) TERRITORIES AND POSSESSIONS.—The Secretary shall reserve not more than 1 10 ⁄2 of 1 percent 

11 of the funds appropriated to carry out this chapter 

12 for any fiscal year for distribution to Guam, Amer13 ican Samoa, and the Commonwealth of the Northern 

14 Mariana Islands, to be allotted in accordance with 

15 their respective needs, to plan and carry out pro16 grams and activities to encourage child care pro17 viders to improve their qualifications and to retain 

18 qualified child care providers in the child care field. 

19 (2) INDIAN TRIBES AND TRIBAL ORGANIZA20 TIONS.—The Secretary shall reserve not more than 

21 3 percent of the funds appropriated to carry out this 

22 chapter for any fiscal year for payments to Indian 

23 tribes and tribal organizations with applications ap24 proved under subsection (c), to plan and carry out 

25 programs and activities to encourage child care pro-
365

•HR 936 IH 

1 viders to improve their qualifications and to retain 

2 qualified child care providers in the child care field. 

3 (b) ALLOTMENTS TO REMAINING STATES.—

4 (1) GENERAL AUTHORITY.—From the funds 

5 appropriated to carry out this chapter for any fiscal 

6 year and remaining after the reservations made 

7 under subsection (a), the Secretary shall allot to 

8 each State (excluding Guam, American Samoa, and 

9 the Commonwealth of the Northern Mariana Is10 lands) an amount equal to the sum of—

11 (A) an amount that bears the same ratio 

12 to 50 percent of such remainder as the product 

13 of the young child factor of the State and the 

14 allotment percentage of the State bears to the 

15 sum of the corresponding products for all 

16 States; and 

17 (B) an amount that bears the same ratio 

18 to 50 percent of such remainder as the product 

19 of the school lunch factor of the State and the 

20 allotment percentage of the State bears to the 

21 sum of the corresponding products for all 

22 States. 

23 (2) YOUNG CHILD FACTOR.—In this subsection, 

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

25 number of children under 5 years of age in the State 
366

•HR 936 IH 

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

2 determined according to the most recent annual esti3 mates of population in the States, as provided by the 

4 Bureau of the Census. 

5 (3) SCHOOL LUNCH FACTOR.—In this sub6 section, the term ‘‘school lunch factor’’ means the 

7 ratio of the number of children who are receiving 

8 free or reduced price lunches under the school lunch 

9 program established under the Richard B. Russell 

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

11 in the State to the number of such children in all 

12 the States, as determined annually by the Depart13 ment of Agriculture. 

14 (4) ALLOTMENT PERCENTAGE.—

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

16 subparagraph (B), for purposes of this sub17 section, the allotment percentage for a State 

18 shall be determined by dividing the per capita 

19 income of all individuals in the United States, 

20 by the per capita income of all individuals in 

21 the State. 

22 (B) LIMITATIONS.—For purposes of this 

23 subsection, if an allotment percentage deter24 mined under subparagraph (A)—
367

•HR 936 IH 

1 (i) is more than 1.2 percent, the allot2 ment percentage of that State shall be con3 sidered to be 1.2 percent; and 

4 (ii) is less than 0.8 percent, the allot5 ment percentage of the State shall be con6 sidered to be 0.8 percent. 

7 (C) PER CAPITA INCOME.—For purposes 

8 of subparagraph (A), per capita income shall 

9 be—

10 (i) determined at 2-year intervals; 

11 (ii) applied for the 2-year period be12 ginning on October 1 of the first fiscal 

13 year beginning after the date such deter14 mination is made; and 

15 (iii) equal to the average of the an16 nual per capita incomes for the most re17 cent period of 3 consecutive years for 

18 which satisfactory data are available from

19 the Department of Commerce at the time 

20 such determination is made. 

21 (c) PAYMENTS TO INDIAN TRIBES AND TRIBAL OR22 GANIZATIONS.—

23 (1) RESERVATION OF FUNDS.—From amounts 

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

25 make grants to or enter into contracts with Indian 
368

•HR 936 IH 

1 tribes and tribal organizations that submit applica2 tions under this subsection, to plan and carry out 

3 programs and activities to encourage child care pro4 viders to improve their qualifications and to retain 

5 qualified child care providers in the child care field. 

6 (2) APPLICATIONS AND REQUIREMENTS.—To 

7 be eligible to receive a grant or contract under this 

8 subsection, an Indian tribe or tribal organization 

9 shall submit an application to the Secretary at such 

10 time, in such manner, and containing such informa11 tion as the Secretary may require. The application 

12 shall provide that the applicant—

13 (A) will coordinate the programs and ac14 tivities involved, to the maximum extent prac15 ticable, with the lead agency in each State in 

16 which the applicant will carry out such pro17 grams and activities; and 

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

19 such audits of the funds made available through 

20 the grant or contract for, programs and activi21 ties under this chapter as the Secretary may re22 quire. 

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

24 obtain from each appropriate Federal agency, the most re-
369

•HR 936 IH 

1 cent data and information necessary to determine the al2 lotments provided for in subsection (b). 

3 (e) REALLOTMENTS.—

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

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

6 the Secretary determines will not be distributed to 

7 the State for such fiscal year shall be reallotted by 

8 the Secretary to other States in proportion to the 

9 original allotments made under such subsection to 

10 such States for such fiscal year. 

11 (2) LIMITATIONS.—

12 (A) REDUCTION.—The amount of any re13 allotment to which a State is entitled under this 

14 subsection shall be reduced to the extent that 

15 such amount exceeds the amount that the Sec16 retary estimates will be distributed to the State 

17 to make grants under this chapter. 

18 (B) REALLOTMENTS.—The amount of 

19 such reduction shall be reallotted to States for 

20 which no reduction in an allotment, or in a real21 lotment, is required by this subsection, in pro22 portion to the original allotments made under 

23 subsection (b) to such States for such fiscal 

24 year. 
370

•HR 936 IH 

1 (3) AMOUNTS REALLOTTED.—For purposes of 

2 this chapter (other than this subsection and sub3 section (b)), any amount reallotted to a State under 

4 this subsection shall be considered to be part of the 

5 allotment made under subsection (b) to the State. 

6 (f) COST-SHARING.—

7 (1) FEDERAL SHARE.—The Federal share of 

8 the cost of making grants under sections 3207 and 

9 3208, with funds allotted under this section and dis10 tributed by the Secretary to a State, shall be—

11 (A) not more than 90 percent of the cost 

12 of each grant made under such sections, in the 

13 1st fiscal year for which the State receives such 

14 funds; 

15 (B) not more than 85 percent of the cost 

16 of each grant made under such sections, in the 

17 2d fiscal year for which the State receives such 

18 funds; 

19 (C) not more than 80 percent of the cost 

20 of each grant made under such sections, in the 

21 3d fiscal year for which the State receives such 

22 funds; and 

23 (D) not more than 75 percent of the cost 

24 of each grant made under such sections, in any 
371

•HR 936 IH 

1 subsequent fiscal year for which the State re2 ceives such funds. 

3 (2) STATE SHARE.—The non-Federal share of 

4 the cost of making such grants shall be paid by the 

5 State in cash or in the form of an in-kind contribu6 tion, fairly evaluated by the Secretary. 

7 (g) AVAILABILITY OF ALLOTTED FUNDS DISTRIB8 UTED TO STATES.—Of the funds allotted under this sec9 tion and distributed by the Secretary to a State for a fiscal 

10 year—

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

12 to the State for grants under section 3207; 

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

14 to the State for grants under section 3208; and 

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

16 to pay administrative costs incurred by the State to 

17 carry out this chapter. 

18 SEC. 3206. APPLICATION AND PLAN. 

19 (a) APPLICATION.—To be eligible to receive a dis20 tribution of funds allotted under section 3205, a State 

21 shall submit to the Secretary an application at such time, 

22 in such manner, and containing such information as the 

23 Secretary may require by rule and shall include in such 

24 application a State plan that satisfies the requirements of 

25 subsection (b). 
372

•HR 936 IH 

1 (b) REQUIREMENTS OF PLAN.—

2 (1) LEAD AGENCY.—The State plan shall iden3 tify the lead agency to make grants under this chap4 ter for the State. 

5 (2) RECRUITMENT AND RETENTION OF CHILD

6 CARE PROVIDERS.—The State plan shall describe 

7 how the lead agency will encourage both the recruit8 ment of eligible child care providers who are new to 

9 the child care field and the retention of eligible child 

10 care providers who have a demonstrated commit11 ment to the child care field. 

12 (3) NOTIFICATION OF GRANT AVAILABILITY.—

13 The State plan shall describe how the lead agency 

14 will identify all eligible child care providers in the 

15 State and notify the providers of the availability of 

16 grants under this chapter. 

17 (4) DISTRIBUTION OF GRANTS.—The State 

18 plan shall describe how the lead agency will make 

19 grants under sections 3207 and 3208 to child care 

20 providers in selected geographical areas in the State 

21 in compliance with the following requirements: 

22 (A) SELECTION OF GEOGRAPHICAL

23 AREAS.—For the purpose of making such 

24 grants for a fiscal year, the State shall—
373

•HR 936 IH 

1 (i) select a variety of geographical 

2 areas, determined by the State, that, col3 lectively—

4 (I) include urban areas, suburban 

5 areas, and rural areas; and 

6 (II) are areas whose residents 

7 have diverse income levels; and 

8 (ii) give special consideration to geo9 graphical areas selected under this sub10 paragraph for the preceding fiscal year. 

11 (B) SELECTION OF CHILD CARE PRO12 VIDERS TO RECEIVE GRANTS.—In making 

13 grants under section 3207, the State may make 

14 grants only to eligible child care providers in 

15 geographical areas selected under subparagraph 

16 (A), but—

17 (i) may give special consideration in 

18 such areas to eligible child care providers 

19 who have attained a higher relevant edu20 cational credential, who provide a specific 

21 kind of child care services, who provide 

22 child care services to populations who meet 

23 specific economic characteristics, or who 

24 meet such other criteria as the State may 

25 establish; and 
374

•HR 936 IH 

1 (ii) shall give special consideration to 

2 eligible child care providers who received a 

3 grant under such section in the preceding 

4 fiscal year. 

5 (C) LIMITATION.—The State shall describe 

6 how the State will ensure that grants made 

7 under section 3207 to child care providers will 

8 not be used to offset reductions in the com9 pensation of such providers. 

10 (D) REPORTING REQUIREMENT.—With re11 spect to each particular geographical area se12 lected under subparagraph (A), the State shall 

13 provide an assurance that the State will, for 

14 each fiscal year for which such State receives a 

15 grant under section 3207— 

16 (i) include in the report required by 

17 section 3209, detailed information regard18 ing—

19 (I) the continuity of employment 

20 of the grant recipients as child care 

21 providers with the same employer; 

22 (II) with respect to each em23 ployer that employed such a grant re24 cipient, whether such employer was 

25 accredited by a recognized national or 
375

•HR 936 IH 

1 State accrediting body during the pe2 riod of employment; and 

3 (III) to the extent practicable 

4 and available to the State, the rate 

5 and frequency of employment turnover 

6 of qualified child care providers 

7 throughout such area, 

8 during the 2-year period ending on the 

9 deadline for submission of applications for 

10 grants under section 3207 for that fiscal 

11 year; and 

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

13 later than 90 days after the end of the suc14 ceeding fiscal year that includes informa15 tion regarding—

16 (I) the continuity of employment 

17 of the grant recipients as child care 

18 providers with the same employer; 

19 (II) with respect to each em20 ployer that employed such a grant re21 cipient, whether such employer was 

22 accredited by a recognized national or 

23 State accrediting body during the pe24 riod of employment; and 
376

•HR 936 IH 

1 (III) to the extent practicable 

2 and available to the State, detailed in3 formation regarding the rate and fre4 quency of employment turnover of 

5 qualified child care providers through6 out such area, 

7 during the 1-year period beginning on the 

8 date on which the grant to the State was 

9 made under section 3207. 

10 (5) CHILD CARE PROVIDER DEVELOPMENT AND

11 RETENTION GRANT PROGRAM.—The State plan shall 

12 describe how the lead agency will determine the 

13 amounts of grants to be made under section 3207 

14 in accordance with the following requirements: 

15 (A) SUFFICIENT AMOUNTS.—The State 

16 shall demonstrate that the amounts of indi17 vidual grants to be made under section 3207 

18 will be sufficient—

19 (i) to encourage child care providers 

20 to improve their qualifications; and 

21 (ii) to retain qualified child care pro22 viders in the child care field. 

23 (B) AMOUNTS TO CREDENTIALED PRO24 VIDERS.—Such grants made to child care pro25 viders who have a child development associate 
377

•HR 936 IH 

1 credential and who are employed full-time to 

2 provide child care services shall be in an 

3 amount that is not less than $1,000 per year. 

4 (C) AMOUNTS TO PROVIDERS WITH HIGH5 ER LEVELS OF EDUCATION.—The State shall 

6 make such grants in amounts greater than 

7 $1,000 per year to child care providers who 

8 have higher levels of education than the edu9 cation required for a credential such as a child 

10 development associate credential, according to 

11 the following requirements: 

12 (i) PROVIDERS WITH BACCALAUREATE

13 DEGREES IN RELEVANT FIELDS.—A child 

14 care provider who has a baccalaureate de15 gree in the area of child development or 

16 early child education shall receive a grant 

17 under section 3207 in an amount that is 

18 not less than twice the amount of the

19 grant that is made under section 3207 to 

20 a child care provider who has an associate 

21 of the arts degree in the area of child de22 velopment or early child education. 

23 (ii) PROVIDERS WITH ASSOCIATE DE24 GREES.—A child care provider who has an 

25 associate of the arts degree in the area of 
378

•HR 936 IH 

1 child development or early child education 

2 shall receive a grant under section 3207 in 

3 an amount that is not less than 150 per4 cent of the amount of the grant that is 

5 made under section 3207 to a child care 

6 provider who has a child development asso7 ciate credential and is employed full-time 

8 to provide child care services. 

9 (iii) OTHER PROVIDERS WITH BACCA10 LAUREATE DEGREES.—

11 (I) IN GENERAL.—Except as pro12 vided in subclause (II), a child care 

13 provider who has a baccalaureate de14 gree in a field other than child devel15 opment or early child education shall 

16 receive a grant under section 3207 in 

17 an amount equal to the amount of the 

18 grant that is made under section 3207 

19 to a child care provider who has an 

20 associate of the arts degree in the 

21 area of child development or early 

22 child education. 

23 (II) EXCEPTION.—If a child care 

24 provider who has such a baccalaureate 

25 degree obtains additional educational 
379

•HR 936 IH 

1 training in the area of child develop2 ment or early child education, as spec3 ified by the State, such provider shall 

4 receive a grant under section 3207 in 

5 an amount equal to the amount of the 

6 grant that is made under section 3207 

7 to a child care provider who has a 

8 baccalaureate degree specified in 

9 clause (i). 

10 (D) AMOUNTS TO FULL-TIME PRO11 VIDERS.—The State shall make a grant under 

12 section 3207 to a child care provider who works 

13 full-time in a greater amount than the amount 

14 of the grant that is made under section 3207 

15 to a child care provider who works part-time, 

16 based on the State definitions of full-time and 

17 part-time work. 

18 (E) AMOUNTS TO EXPERIENCED PRO19 VIDERS.—The State shall make grants under 

20 section 3207 in progressively larger amounts to 

21 child care providers to reflect the number of 

22 years worked as child care providers. 

23 (6) DISTRIBUTION OF CHILD CARE PROVIDER

24 SCHOLARSHIPS.—The State plan shall describe how 

25 the lead agency will make grants for scholarships in 
380

•HR 936 IH 

1 compliance with section 3208 and shall specify the 

2 types of educational and training programs for 

3 which the scholarship grants made under such sec4 tion may be used, including only programs that—

5 (A) are administered by institutions of 

6 higher education that are eligible to participate 

7 in student financial assistance programs under 

8 title IV of the Higher Education Act of 1965 

9 (20 U.S.C. 1070 et seq.); and 

10 (B) lead to a State or nationally recog11 nized credential in the area of child develop12 ment or early child education, an associate of 

13 the arts degree in the area of child development 

14 or early child education, or a baccalaureate de15 gree in the area of child development or early 

16 child education. 

17 (7) EMPLOYER CONTRIBUTION.—The State 

18 plan shall describe how the lead agency will encour19 age employers of child care providers to contribute 

20 to the attainment of education goals by child care 

21 providers who receive grants under section 3208. 

22 (8) SUPPLEMENTATION.—The State plan shall 

23 provide assurances that amounts received by the 

24 State to carry out sections 3207 and 3208 will be 

25 used only to supplement, and not to supplant, Fed-
381

•HR 936 IH 

1 eral, State, and local funds otherwise available to 

2 support existing services and activities (as of the 

3 date the amounts are used) that encourage child 

4 care providers to improve their qualifications and 

5 that promote the retention of qualified child care 

6 providers in the child care field. 

7 SEC. 3207. CHILD CARE PROVIDER DEVELOPMENT AND RE8 TENTION GRANT PROGRAM. 

9 (a) IN GENERAL.—A State that receives funds allot10 ted under section 3205 and made available to carry out 

11 this section shall expend such funds to make grants to 

12 eligible child care providers in accordance with this sec13 tion, to improve the qualifications and promote the reten14 tion of qualified child care providers. 

15 (b) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi16 ble to receive a grant under this section, a child care pro17 vider shall—

18 (1) have a child development associate creden19 tial or equivalent, an associate of the arts degree in 

20 the area of child development or early child edu21 cation, a baccalaureate degree in the area of child 

22 development or early child education, or a bacca23 laureate degree in an unrelated field; and

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

25 less than 1 calendar year, or (if the provider is em-
382

•HR 936 IH 

1 ployed on the date of the eligibility determination in 

2 a child care program that operates for less than a 

3 full calendar year) the program equivalent of 1 cal4 endar year, ending on the date of the application for 

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

6 education related to child development or to early 

7 child education obtained during the corresponding 

8 calendar year may be treated as employment that 

9 satisfies the requirements of this paragraph. 

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

11 not take into consideration whether a child care provider 

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

13 funds under section 3208 for purposes of selecting eligible 

14 child care providers to receive grants under this section.

15 SEC. 3208. CHILD CARE PROVIDER SCHOLARSHIP PRO16 GRAM. 

17 (a) IN GENERAL.—A State that receives funds allot18 ted under section 3205 and made available to carry out 

19 this section shall expend such funds to make scholarship 

20 grants to eligible child care providers in accordance with 

21 this section, to improve their educational qualifications to 

22 provide child care services. 

23 (b) ELIGIBILITY REQUIREMENT FOR SCHOLARSHIP

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

25 under this section, a child care provider shall be employed 
383

•HR 936 IH 

1 as a child care provider for not less than 1 calendar year, 

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

3 determination in a child care program that operates for 

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

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

6 such grant. 

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

9 grants under this section and determining the amounts of 

10 such grants, a State shall not—

11 (1) take into consideration whether a child care 

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

13 to receive any funds under any other provision of 

14 this chapter, or under any other Federal or State 

15 law that provides funds for educational purposes; or 

16 (2) consider as resources of such provider any 

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

18 be eligible to receive under any other provision of 

19 this chapter, under any other Federal or State law 

20 that provides funds for educational purposes, or 

21 from a private entity. 

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

23 scholarship grant made under this section to an eligible 

24 child care provider shall be less than the cost of the edu25 cational or training program for which such grant is made. 
384

•HR 936 IH 

1 (e) ANNUAL MAXIMUM SCHOLARSHIP GRANT

2 AMOUNT.—The maximum aggregate dollar amount of a 

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

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

5 SEC. 3209. ANNUAL REPORT. 

6 A State that receives funds appropriated to carry out 

7 this chapter for a fiscal year shall submit to the Secretary, 

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

9 a report—

10 (1) specifying the uses for which the State ex11 pended such funds, and the aggregate amount of 

12 funds (including State funds) expended for each of 

13 such uses; 

14 (2) containing available data relating to grants 

15 made with such funds, including—

16 (A) the number of child care providers who 

17 received such grants; 

18 (B) the amounts of such grants; 

19 (C) any other information that describes or 

20 evaluates the effectiveness of this chapter; 

21 (D) the particular geographical areas se22 lected under section 3206 for the purpose of 

23 making such grants; 

24 (E) with respect to grants made under sec25 tion 3207—
385

•HR 936 IH 

1 (i) the number of years grant recipi2 ents have been employed as child care pro3 viders; 

4 (ii) the level of training and education 

5 of grant recipients; 

6 (iii) to the extent practicable and 

7 available to the State, detailed information 

8 regarding the salaries and other compensa9 tion received by grant recipients to provide 

10 child care services before, during, and after 

11 receiving such grant; 

12 (iv) the number of children who re13 ceived child care services provided by grant 

14 recipients; 

15 (v) information on family demo16 graphics of such children; 

17 (vi) the types of settings described in 

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

19 3203(a)(1) in which grant recipients are 

20 employed; and 

21 (vii) the ages of the children who re22 ceived child care services provided by grant 

23 recipients; 

24 (F) with respect to grants made under sec25 tion 3208—
386

•HR 936 IH 

1 (i) the number of years grant recipi2 ents have been employed as child care pro3 viders; 

4 (ii) the level of training and education 

5 of grant recipients; 

6 (iii) to the extent practicable and 

7 available to the State, detailed information 

8 regarding the salaries and other compensa9 tion received by grant recipients to provide 

10 child care services before, during, and after 

11 receiving such grant; 

12 (iv) the types of settings described in 

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

14 3203(a)(1) in which grant recipients are 

15 employed; 

16 (v) the ages of the children who re17 ceived child care services provided by grant 

18 recipients; 

19 (vi) the number of course credits or 

20 credentials obtained by grant recipients; 

21 and 

22 (vii) the amount of time taken for 

23 completion of the educational and training 

24 programs for which such grants were 

25 made; and 
387

•HR 936 IH 

1 (G) such other information as the Sec2 retary may require by rule. 

3 SEC. 3210. AUTHORIZATION OF APPROPRIATIONS. 

4 There is authorized to be appropriated 

5 $5,000,000,000 in the aggregate for fiscal years 2004 

6 through 2008 to carry out this chapter. 

7 CHAPTER 2—STRENGTHENING QUALITY 

8 THROUGH THE CHILD CARE AND DE9 VELOPMENT BLOCK GRANT 

10 SEC. 3231. STATE PLAN. 

11 Section 658E(c)(2) of the Child Care and Develop12 ment Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)), 

13 as amended by section 3113, is further amended by adding 

14 at the end the following: 

15 ‘‘(M) ESTABLISHMENT OF TRAINING RE16 QUIREMENTS.—

17 ‘‘(i) TRAINING REQUIREMENTS.—

18 ‘‘(I) IN GENERAL.—Certify that 

19 there are training requirements in ef20 fect within the State, under State or 

21 local law, that are designed to pro22 mote the social, emotional, physical, 

23 and cognitive development of children 

24 and that are applicable to all child 

25 care providers that provide services 
388

•HR 936 IH 

1 for which assistance is made available 

2 under this subchapter. 

3 ‘‘(II) PRESERVICE TRAINING.—

4 The requirements shall include provi5 sions requiring preservice training in 

6 childhood development, subject to 

7 clause (ii). 

8 ‘‘(III) AGE-APPROPRIATE TRAIN9 ING.—The requirements shall ensure 

10 that the training provided to a child 

11 care provider under the requirements 

12 shall be related to the ages of the chil13 dren for whom the provider provides 

14 care. 

15 ‘‘(ii) PRESERVICE TRAINING.—

16 ‘‘(I) STATES NOT REQUIRING

17 PRESERVICE TRAINING.—For a State 

18 that does not, as of the date of enact19 ment of the Leave No Child Behind 

20 Act of 2003 require preservice train21 ing in child development that meets 

22 the requirements specified in clause 

23 (i)—

24 ‘‘(aa) the State shall submit, 

25 as part of the State plan, infor-
389

•HR 936 IH 

1 mation on how the State will en2 sure that State or local law shall 

3 require such training not later 

4 than 1 year after the date of en5 actment of the Leave No Child 

6 Behind Act of 2003; and 

7 ‘‘(bb) the State may elect, in 

8 the case of a child care provider 

9 who is not required to be reg10 istered, licensed, or regulated, 

11 but who must comply with sub12 paragraph (F), to consider in13 service training in child develop14 ment that is completed not later 

15 than 60 days after the first day 

16 on which a child is enrolled with 

17 such provider, to be preservice 

18 training that meets the require19 ments of clause (i). 

20 ‘‘(II) CONSTRUCTION.—Nothing 

21 in subclause (I) shall be considered to 

22 preempt or supersede any State or 

23 local law that requires child care pro24 viders to have preservice training in 

25 child development. 
390

•HR 936 IH 

1 ‘‘(N) INSURING THE SAFETY OF CHIL2 DREN.—Certify that there are requirements in 

3 effect within the State, under State or local 

4 law, that require that evaluators from an appro5 priate State or local agency make at least 1 un6 announced visit annually to each child care pro7 vider in the State that provides services for 

8 which assistance is made available under this 

9 subchapter. 

10 ‘‘(O) COORDINATION OF SERVICES.—De11 scribe how the State will—

12 ‘‘(i) coordinate the provision of serv13 ices under this subchapter with other Fed14 eral, State, and local child care and early 

15 childhood development programs; and 

16 ‘‘(ii) increase coordination between, 

17 and improve the ability of children to make 

18 transitions between—

19 ‘‘(I) early childhood care, devel20 opment, and education programs; and 

21 ‘‘(II) elementary schools. 

22 ‘‘(P) STATE CHILD CARE QUALITY

23 GOALS.—

24 ‘‘(i) USE OF FUNDS TO IMPROVE

25 QUALITY.—Provide an assurance that the 
391

•HR 936 IH 

1 State will submit the report described in 

2 section 658I(c)(1), including the dem3 onstrations described in such section, to 

4 the Secretary not later than 6 months 

5 after the end of each fiscal year. 

6 ‘‘(ii) GOALS.—Describe goals that the 

7 State will use to evaluate the effectiveness 

8 of the activities carried out by the State 

9 under section 658G(a), in order to evaluate 

10 the State’s progress in improving the qual11 ity of child care services provided under 

12 this subchapter, including, at a minimum, 

13 goals to—

14 ‘‘(I) improve child care provider 

15 recruitment, payment, and retention 

16 rates; 

17 ‘‘(II) increase the number of 

18 child care providers who receive high 

19 quality preservice and ongoing profes20 sional development (including the 

21 number of such providers who provide 

22 informal care, care for children in spe23 cial populations, or care for children 

24 in rural areas); 
392

•HR 936 IH 

1 ‘‘(III) increase the number of 

2 providers who receive training in the 

3 care and development of children with 

4 disabilities or other special needs; 

5 ‘‘(IV) increase the number of 

6 families served by resource and refer7 ral services; 

8 ‘‘(V) increase the number of child 

9 care programs that meet applicable 

10 State and local licensing requirements 

11 or nationally recognized accreditation 

12 standards; and 

13 ‘‘(VI) increase the payment rates, 

14 to maximize parental choice among 

15 quality child care providers. 

16 ‘‘(iii) STATE CHILD CARE QUALITY

17 MEASURES.—Describe a quantifiable, ob18 jective measure for each goal. 

19 ‘‘(iv) PROGRESS.—Describe the 

20 State’s progress in achieving the measures 

21 for the goals.’’. 

22 SEC. 3232. CHILD CARE QUALITY IMPROVEMENTS. 

23 Section 658G of the Child Care and Development 

24 Block Grant Act of 1990 (42 U.S.C. 9858e), as amended 
393

•HR 936 IH 

1 by section 3002, is further amended by striking subsection 

2 (a) and inserting the following: 

3 ‘‘(a) ACTIVITIES TO IMPROVE THE QUALITY OF

4 CHILD CARE.—

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

6 to carry out this subchapter (other than section 

7 658H) shall reserve and use not less than 12 per8 cent of the funds for activities designed to improve 

9 the quality of child care services, consisting of—

10 ‘‘(A) the recruitment, education, training, 

11 and retention of high quality child care pro12 viders, including family child care providers and 

13 child care providers in rural areas, through 

14 compensation enhancement programs that re15 ward and support participation in professional 

16 development and education, including the at17 tainment of credentials and degrees; 

18 ‘‘(B) initiatives to improve the quality and 

19 availability of child care for children in special 

20 populations, including special populations in 

21 rural areas, which may include workforce devel22 opment initiatives that provide specialized train23 ing or technical assistance for, or initiatives 

24 that provide higher payment rates for, child 

25 care providers that provide child care services 
394

•HR 936 IH 

1 for those children, initiatives that provide 

2 (where appropriate) for consultations with li3 censed professionals for the providers, or initia4 tives that promote efforts to assist the providers 

5 to which the requirements of the the Americans 

6 with Disabilities Act of 1990 (42 U.S.C. 12101 

7 et seq.), the Individuals with Disabilities Edu8 cation Act (20 U.S.C. 1400 et seq.), and sec9 tion 504 of the Rehabilitation Act of 1973 (29 

10 U.S.C. 794) apply (if any) in complying with 

11 the requirements; 

12 ‘‘(C)(i) initiatives that—

13 ‘‘(I) enhance the skills of the child 

14 care workforce by providing professional 

15 development and technical assistance con16 cerning the social, emotional, physical, and 

17 cognitive development of children, and 

18 other critical areas such as health, safety, 

19 preliteracy and oral language, and youth 

20 development, including training opportuni21 ties for child care providers in informal 

22 care settings and ongoing professional de23 velopment opportunities; and 

24 ‘‘(II) are carried out by community 

25 organizations, institutions of higher edu-
395

•HR 936 IH 

1 cation, child care resource and referral or2 ganizations, or other appropriate entities; 

3 and 

4 ‘‘(ii)(I) activities that improve the training 

5 and support for family child care providers, in6 cluding family child care providers in rural 

7 areas, including providing access to resource 

8 lending libraries, the child and adult care food 

9 program described in section 17 of the Richard 

10 B. Russell National School Lunch Act (42 

11 U.S.C. 1766), and in-home training and profes12 sional development; and 

13 ‘‘(II) projects that provide opportunities 

14 for career counseling, director training, and 

15 leadership development for the child care work16 force; 

17 ‘‘(D) projects that improve the ability of 

18 State or local government, as applicable, to 

19 monitor compliance with, and to enforce, State 

20 and local registration, licensing, and regulatory 

21 requirements applicable to child care providers; 

22 ‘‘(E) community projects that—

23 ‘‘(i) establish a single point of entry 

24 system for child care, based on a military 

25 model that—
396

•HR 936 IH 

1 ‘‘(I) establishes links with child 

2 care centers, family child care homes, 

3 providers of after-school programs, 

4 and other child care providers; and 

5 ‘‘(II) provides parents with a sin6 gle location to find registered, li7 censed, or regulated child care in the 

8 community; 

9 ‘‘(ii) establish a community-wide 

10 training and professional development pro11 gram that is linked to compensation and 

12 recognition for child care providers, includ13 ing family child care providers, whose serv14 ices are available through the system; 

15 ‘‘(iii) provide financial incentives and 

16 other support for child care providers de17 scribed in clause (ii) to achieve accredita18 tion by a national organization; and 

19 ‘‘(iv) provide information to parents 

20 on the cost and quality of the various child 

21 care providers described in clause (ii); 

22 ‘‘(F) activities to improve the quality of child 

23 care in rural areas; 

24 ‘‘(G) other activities that the State determines 

25 to be appropriate to improve the quality of child care 
397

•HR 936 IH 

1 services, including the provision of emergency child 

2 care; or 

3 ‘‘(H) activities to support the system described 

4 in paragraph (2). 

5 ‘‘(2) CHILD CARE RESOURCE AND REFERRAL

6 SYSTEM.—The State shall use a portion of the funds 

7 reserved under paragraph (1) to support a system of 

8 local child care resource and referral organizations 

9 coordinated by a statewide lead child care resource 

10 and referral organization. The local child care re11 source and referral organizations shall—

12 ‘‘(A) provide parents and child care pro13 viders with information and support concerning 

14 child care options in their communities; 

15 ‘‘(B) collect data on the supply of and de16 mand for child care in political subdivisions 

17 within the State; 

18 ‘‘(C) develop connections between busi19 nesses and other organizations to develop pub20 lic-private partnerships for child care; 

21 ‘‘(D) promote literacy through the provi22 sion of technical assistance, training about de23 velopmentally appropriate reading activities, 

24 and books to child care programs and families, 
398

•HR 936 IH 

1 to make books accessible to children at an early 

2 age; 

3 ‘‘(E) provide (or facilitate the provision of) 

4 specialists in health, mental health, early lit5 eracy, services for children with disabilities or 

6 other special needs, and infant and toddler care 

7 to support or supplement the services of child 

8 care providers in their communities; 

9 ‘‘(F) hire disability specialists and provide 

10 training and technical assistance to child care 

11 providers, to effectively meet the needs of chil12 dren with disabilities or other special needs; or 

13 ‘‘(G) increase the supply and improve the 

14 quality of child care in the State and in political 

15 subdivisions in the State.’’. 

16 SEC. 3233. ADMINISTRATION AND ENFORCEMENT. 

17 Section 658I of the Child Care and Development 

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

19 (1) in subsection (a)(3), by inserting ‘‘(directly, 

20 or through grants, contracts, or cooperative agree21 ments)’’ after ‘‘provide’’; and 

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

23 ‘‘(c) COMPLIANCE WITH QUALITY REQUIREMENTS

24 OF STATE PLAN.—

25 ‘‘(1) ANNUAL REPORT.—
399

•HR 936 IH 

1 ‘‘(A) USE OF FUNDS FOR QUALITY ACTIVI2 TIES.—Each State that receives funds to carry 

3 out this subchapter for a fiscal year shall, not 

4 later than 6 months after the end of that fiscal 

5 year, submit an annual report to the Secretary 

6 in which—

7 ‘‘(i) the State demonstrates the man8 ner in which the State complied with sec9 tion 658G during the year, and describes 

10 how the State used funds made available 

11 to carry out this subchapter to comply with 

12 section 658G during the year; 

13 ‘‘(ii) the State demonstrates that a 

14 portion of such funds was used to carry 

15 out the activities described in subpara16 graphs (A) and (B) of section 658G(a)(1) 

17 during the year, and describes the specific 

18 activities carried out with the funds, and 

19 the amount of the funds that the State al20 located to each activity, during the year; 

21 and 

22 ‘‘(iii) the State describes the specific 

23 activities carried out under subsections (a) 

24 and (b), and the amount of funds that the 
400

•HR 936 IH 

1 State allocated to each activity, during the 

2 year. 

3 ‘‘(B) PROGRESS IN ACHIEVING STATE

4 CHILD CARE QUALITY GOALS AND MEASURES.—

5 The State shall include in the report—

6 ‘‘(i) a description of the goals and 

7 measures described in the State plan under 

8 section 658E(c)(2)(P); and 

9 ‘‘(ii) evidence demonstrating the ex10 tent to which the State made progress in 

11 achieving the measures for the goals dur12 ing the fiscal year including, at a min13 imum, evidence demonstrating measurable 

14 improvement toward achieving the meas15 ures for the goals described in section 

16 658E(c)(2)(P)(iii). 

17 ‘‘(2) IMPROVEMENT PLAN.—If the Secretary 

18 determines that a State failed to make progress as 

19 described in paragraph (1)(B)(ii) for a fiscal year, 

20 the Secretary shall require the State to submit an 

21 improvement plan that describes the measures the 

22 State will take to make that progress. The Secretary 

23 shall require the State to comply with the improve24 ment plan by a date specified by the Secretary but 
401

•HR 936 IH 

1 not later than 1 year after the date of the deter2 mination.’’. 

3 CHAPTER 3—CHILD CARE CENTERS IN 

4 FEDERAL FACILITIES

5 SEC. 3241. SHORT TITLE. 

6 This chapter may be cited as the ‘‘Federal Employees 

7 Child Care Act’’. 

8 SEC. 3242. DEFINITIONS. 

9 In this chapter (except as otherwise provided in sec10 tion 3245):

11 (1) ADMINISTRATOR.—The term ‘‘Adminis12 trator’’ means the Administrator of General Serv13 ices. 

14 (2) CHILD CARE ACCREDITATION ENTITY.—The 

15 term ‘‘child care accreditation entity’’ means a non16 profit private organization or public agency that—

17 (A) is recognized by a State agency or by 

18 a national organization that serves as a peer re19 view panel on the standards and procedures of 

20 public and private child care or school accred21 iting bodies; and 

22 (B) accredits a facility to provide child 

23 care on the basis of—
402

•HR 936 IH 

1 (i) an accreditation or credentialing 

2 instrument based on peer-validated re3 search; 

4 (ii) compliance with applicable State 

5 or local licensing requirements, as appro6 priate, for the facility; 

7 (iii) outside monitoring of the facility; 

8 and 

9 (iv) criteria that provide assurances 

10 of—

11 (I) use of developmentally appro12 priate health and safety standards at 

13 the facility; 

14 (II) use of developmentally ap15 propriate educational activities, as an 

16 integral part of the child care pro17 gram carried out at the facility; and 

18 (III) use of ongoing staff devel19 opment or training activities for the 

20 staff of the facility, including related 

21 skills-based testing. 

22 (3) ENTITY SPONSORING A CHILD CARE FACIL23 ITY.—The term ‘‘entity sponsoring a child care facil24 ity’’ means a Federal agency that operates, or an 

25 entity that enters into a contract or licensing agree-
403

•HR 936 IH 

1 ment with a Federal agency to operate, a child care 

2 facility primarily for the use of Federal employees. 

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

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

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

6 term—

7 (A) does not include the Department of 

8 Defense, the Coast Guard, or the General Ac9 counting Office; and 

10 (B) includes the General Services Adminis11 tration, with respect to the administration of a 

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

13 (5) EXECUTIVE FACILITY.—The term ‘‘execu14 tive facility’’—

15 (A) means a facility that is owned or 

16 leased by an Executive agency; and 

17 (B) includes a facility that is owned or 

18 leased by the General Services Administration 

19 on behalf of a judicial office.

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

21 agency’’ means an Executive agency, a legislative of22 fice, or a judicial office. 

23 (7) JUDICIAL FACILITY.—The term ‘‘judicial fa24 cility’’ means a facility that is owned or leased by a 
404

•HR 936 IH 

1 judicial office (other than a facility that is also a fa2 cility described in paragraph (5)(B)). 

3 (8) JUDICIAL OFFICE.—The term ‘‘judicial of4 fice’’ means an entity of the judicial branch of the 

5 Federal Government. 

6 (9) LEGISLATIVE FACILITY.—The term ‘‘legisla7 tive facility’’ means a facility that is owned or leased 

8 by a legislative office. 

9 (10) LEGISLATIVE OFFICE.—The term ‘‘legisla10 tive office’’ means an entity of the legislative branch 

11 of the Federal Government. 

12 (11) STATE.—The term ‘‘State’’ has the mean13 ing given the term in section 658P of the Child Care 

14 and Development Block Grant Act of 1990 (42 

15 U.S.C. 9858n). 

16 SEC. 3243. PROVIDING QUALITY CHILD CARE IN FEDERAL 

17 FACILITIES. 

18 (a) EXECUTIVE FACILITIES.—

19 (1) STATE AND LOCAL LICENSING REQUIRE20 MENTS.—

21 (A) IN GENERAL.—Any entity sponsoring 

22 a child care facility in an executive facility 

23 shall— 

24 (i) comply with child care standards 

25 described in paragraph (2) that are no less 
405

•HR 936 IH 

1 stringent than applicable State or local li2 censing requirements that are related to 

3 the provision of child care in the State or 

4 locality involved; or 

5 (ii) obtain the applicable State or local 

6 licenses, as appropriate, for the facility. 

7 (B) COMPLIANCE.—Not later than 6 

8 months after the date of enactment of this 

9 Act—

10 (i) the entity shall comply, or make 

11 substantial progress (as determined by the 

12 Administrator) toward complying, with 

13 subparagraph (A); and 

14 (ii) any contract or licensing agree15 ment used by an Executive agency for the 

16 provision of child care services in the child 

17 care facility shall include a condition that 

18 the child care be provided by an entity that 

19 complies with the standards described in 

20 subparagraph (A)(i) or obtains the licenses 

21 described in subparagraph (A)(ii). 

22 (2) HEALTH, SAFETY, AND FACILITY STAND23 ARDS.—The Administrator shall by regulation estab24 lish standards relating to health, safety, facilities, fa25 cility design, and other aspects of child care that the 
406

•HR 936 IH 

1 Administrator determines to be appropriate for child 

2 care in executive facilities, and require child care fa3 cilities, and entities sponsoring child care facilities, 

4 in executive facilities to comply with the standards. 

5 The standards shall include requirements that child

6 care facilities be inspected for, and be free of, lead 

7 hazards. 

8 (3) ACCREDITATION STANDARDS.—

9 (A) IN GENERAL.—The Administrator 

10 shall issue regulations requiring, to the max11 imum extent possible, any entity sponsoring an 

12 eligible child care facility (as defined by the Ad13 ministrator) in an executive facility to comply 

14 with standards of a child care accreditation en15 tity. 

16 (B) COMPLIANCE.—The regulations shall 

17 require that, not later than 3 years after the 

18 date of enactment of this Act—

19 (i) the entity shall comply, or make 

20 substantial progress (as determined by the 

21 Administrator) toward complying, with the 

22 standards; and 

23 (ii) any contract or licensing agree24 ment used by an Executive agency for the 

25 provision of child care services in the child 
407

•HR 936 IH 

1 care facility shall include a condition that 

2 the child care be provided by an entity that 

3 complies with the standards. 

4 (4) EVALUATION AND COMPLIANCE.—

5 (A) IN GENERAL.—The Administrator 

6 shall evaluate the compliance, with the require7 ments of paragraph (1) and the regulations 

8 issued pursuant to paragraphs (2) and (3), as 

9 appropriate, of child care facilities, and entities 

10 sponsoring child care facilities, in executive fa11 cilities. The Administrator may conduct the 

12 evaluation of such a child care facility or entity 

13 directly, or through an agreement with another 

14 Federal agency or private entity, other than the 

15 Federal agency for which the child care facility 

16 is providing services. If the Administrator de17 termines, on the basis of such an evaluation, 

18 that the child care facility or entity is not in 

19 compliance with the requirements, the Adminis20 trator shall notify the Executive agency. 

21 (B) EFFECT OF NONCOMPLIANCE.—On re22 ceipt of the notification of noncompliance issued 

23 by the Administrator, the head of the Executive 

24 agency shall—
408

•HR 936 IH 

1 (i) if the entity operating the child 

2 care facility is the agency—

3 (I) not later than 2 business days 

4 after the date of receipt of the notifi5 cation, correct any deficiencies that 

6 are determined by the Administrator 

7 to be life threatening or to present a 

8 risk of serious bodily harm; 

9 (II) not later than 4 months 

10 after the date of receipt of the notifi11 cation, develop and provide to the Ad12 ministrator a plan to correct any 

13 other deficiencies in the operation of 

14 the facility and bring the facility and 

15 entity into compliance with the re16 quirements; 

17 (III) provide the parents of the 

18 children receiving child care services 

19 at the child care facility and employ20 ees of the facility with a notification 

21 detailing the deficiencies described in 

22 subclauses (I) and (II) and actions 

23 that will be taken to correct the defi24 ciencies, and post a copy of the notifi25 cation in a conspicuous place in the 
409

•HR 936 IH 

1 facility for 5 working days or until the 

2 deficiencies are corrected, whichever is 

3 later; 

4 (IV) bring the child care facility 

5 and entity into compliance with the 

6 requirements and certify to the Ad7 ministrator that the facility and entity 

8 are in compliance, based on an onsite 

9 evaluation of the facility conducted by 

10 an individual with expertise in child 

11 care health and safety; and 

12 (V) in the event that deficiencies 

13 determined by the Administrator to be 

14 life threatening or to present a risk of 

15 serious bodily harm cannot be cor16 rected within 2 business days after 

17 the date of receipt of the notification, 

18 close the child care facility, or the af19 fected portion of the facility, until the 

20 deficiencies are corrected and notify 

21 the Administrator of the closure; and 

22 (ii) if the entity operating the child 

23 care facility is a contractor or licensee of 

24 the Executive agency—
410

•HR 936 IH 

1 (I) require the contractor or li2 censee, not later than 2 business days 

3 after the date of receipt of the notifi4 cation, to correct any deficiencies that 

5 are determined by the Administrator 

6 to be life threatening or to present a 

7 risk of serious bodily harm; 

8 (II) require the contractor or li9 censee, not later than 4 months after 

10 the date of receipt of the notification, 

11 to develop and provide to the head of 

12 the agency a plan to correct any other 

13 deficiencies in the operation of the 

14 child care facility and bring the facil15 ity and entity into compliance with 

16 the requirements; 

17 (III) require the contractor or li18 censee to provide the parents of the 

19 children receiving child care services 

20 at the child care facility and employ21 ees of the facility with a notification 

22 detailing the deficiencies described in 

23 subclauses (I) and (II) and actions 

24 that will be taken to correct the defi25 ciencies, and to post a copy of the no-
411

•HR 936 IH 

1 tification in a conspicuous place in the 

2 facility for 5 working days or until the 

3 deficiencies are corrected, whichever is 

4 later;

5 (IV) require the contractor or li6 censee to bring the child care facility 

7 and entity into compliance with the 

8 requirements and certify to the head 

9 of the agency that the facility and en10 tity are in compliance, based on an 

11 onsite evaluation of the facility con12 ducted by an independent entity with 

13 expertise in child care health and 

14 safety; and 

15 (V) in the event that deficiencies 

16 determined by the Administrator to be 

17 life threatening or to present a risk of 

18 serious bodily harm cannot be cor19 rected within 2 business days after 

20 the date of receipt of the notification, 

21 close the child care facility, or the af22 fected portion of the facility, until the 

23 deficiencies are corrected and notify 

24 the Administrator of the closure, 

25 which closure may be grounds for the 
412

•HR 936 IH 

1 immediate termination or suspension 

2 of the contract or license of the con3 tractor or licensee. 

4 (C) COST REIMBURSEMENT.—The Execu5 tive agency shall reimburse the Administrator 

6 for the costs of carrying out subparagraph (A) 

7 for child care facilities located in an executive 

8 facility other than an executive facility of the 

9 General Services Administration. If an entity is 

10 sponsoring a child care facility for 2 or more 

11 Executive agencies, the Administrator shall allo12 cate the reimbursement costs with respect to 

13 the entity among the agencies in a fair and eq14 uitable manner, based on the extent to which 

15 each agency is eligible to place children in the 

16 facility.

17 (5) DISCLOSURE OF PRIOR VIOLATIONS TO PAR18 ENTS AND FACILITY EMPLOYEES.—

19 (A) IN GENERAL.—The Administrator 

20 shall issue regulations that require that each 

21 entity sponsoring a child care facility in an ex22 ecutive facility, upon receipt by the child care 

23 facility or the entity (as applicable) of a request 

24 by any individual who is—
413

•HR 936 IH 

1 (i) a parent of any child enrolled at 

2 the facility; 

3 (ii) a parent of a child for whom an 

4 application has been submitted to enroll at 

5 the facility; or 

6 (iii) an employee of the facility; 

7 shall provide to the individual the copies and 

8 description described in subparagraph (B). 

9 (B) COPIES AND DESCRIPTION.—The enti10 ty shall provide—

11 (i) copies of all notifications of defi12 ciencies that have been provided in the 

13 past with respect to the facility under 

14 clause (i)(III) or (ii)(III), as applicable, of 

15 paragraph (4)(B); and 

16 (ii) a description of the actions that 

17 were taken to correct the deficiencies. 

18 (b) LEGISLATIVE FACILITIES.—

19 (1) ACCREDITATION.—The Chief Administra20 tive Officer of the House of Representatives, the Li21 brarian of Congress, and the head of a designated 

22 entity in the Senate shall ensure that, not later than 

23 1 year after the date of enactment of this Act, the 

24 corresponding child care facility obtains accredita-
414

•HR 936 IH 

1 tion by a child care accreditation entity, in accord2 ance with the accreditation standards of the entity. 

3 (2) REGULATIONS.—

4 (A) IN GENERAL.—If the corresponding 

5 child care facility does not maintain accredita6 tion status with a child care accreditation enti7 ty, the Chief Administrative Officer of the 

8 House of Representatives, the Librarian of Con9 gress, or the head of the designated entity in 

10 the Senate shall issue regulations governing the 

11 operation of the corresponding child care facil12 ity, to ensure the safety and quality of care of 

13 children placed in the facility. The regulations 

14 shall be no less stringent in content and effect 

15 than the requirements of subsection (a)(1) and 

16 the regulations issued by the Administrator 

17 under paragraphs (2) and (3) of subsection (a), 

18 except to the extent that appropriate adminis19 trative officers make the determination de20 scribed in subparagraph (B). 

21 (B) MODIFICATION MORE EFFECTIVE.—

22 The determination referred to in subparagraph 

23 (A) is a determination, for good cause shown 

24 and stated together with the regulations, that a 

25 modification of the regulations would be more 
415

•HR 936 IH 

1 effective for the implementation of the require2 ments and standards described in subsection (a) 

3 for the corresponding child care facilities, and

4 entities sponsoring the corresponding child care 

5 facilities, in legislative facilities. 

6 (3) CORRESPONDING CHILD CARE FACILITY.—

7 In this subsection, the term ‘‘corresponding child 

8 care facility’’, used with respect to the Chief Admin9 istrative Officer, the Librarian, or the head of a des10 ignated entity described in paragraph (1), means a 

11 child care facility operated by, or under a contract 

12 or licensing agreement with, an office of the House 

13 of Representatives, the Library of Congress, or an 

14 office of the Senate, respectively. 

15 (c) JUDICIAL BRANCH STANDARDS AND COMPLI16 ANCE.—

17 (1) STATE AND LOCAL LICENSING REQUIRE18 MENTS HEALTH, SAFETY, AND FACILITY STAND19 ARDS, AND ACCREDITATION STANDARDS.—The Di20 rector of the Administrative Office of the United 

21 States Courts shall issue regulations for child care 

22 facilities, and entities sponsoring child care facilities, 

23 in judicial facilities, which shall be no less stringent 

24 in content and effect than the requirements of sub25 section (a)(1) and the regulations issued by the Ad-
416

•HR 936 IH 

1 ministrator under paragraphs (2) and (3) of sub2 section (a), except to the extent that the Director 

3 may determine, for good cause shown and stated to4 gether with the regulations, that a modification of 

5 such regulations would be more effective for the im6 plementation of the requirements and standards de7 scribed in paragraphs (1), (2), and (3) of subsection 

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

9 child care facilities, in judicial facilities. 

10 (2) EVALUATION AND COMPLIANCE.—

11 (A) DIRECTOR OF THE ADMINISTRATIVE

12 OFFICE OF THE UNITED STATES COURTS.—The 

13 Director of the Administrative Office of the 

14 United States Courts shall have the same au15 thorities and duties with respect to the evalua16 tion of, compliance of, and cost reimbursement 

17 for child care facilities, and entities sponsoring 

18 child care facilities, in judicial facilities as the 

19 Administrator has under subsection (a)(4) with 

20 respect to the evaluation of, compliance of, and 

21 cost reimbursement for such centers and enti22 ties sponsoring such centers, in executive facili23 ties. 

24 (B) HEAD OF A JUDICIAL OFFICE.—The 

25 head of a judicial office shall have the same au-
417

•HR 936 IH 

1 thorities and duties with respect to the compli2 ance of and cost reimbursement for child care 

3 facilities, and entities sponsoring child care fa4 cilities, in judicial facilities as the head of an 

5 Executive agency has under subsection (a)(4) 

6 with respect to the compliance of and cost reim7 bursement for such centers and entities spon8 soring such centers, in executive facilities. 

9 (d) APPLICATION.—Notwithstanding any other provi10 sion of this section, if 8 or more child care facilities are 

11 sponsored in facilities owned or leased by an Executive 

12 agency, the Administrator shall delegate to the head of 

13 the agency the evaluation and compliance responsibilities 

14 assigned to the Administrator under subsection (a)(4)(A). 

15 (e) TECHNICAL ASSISTANCE, STUDIES, AND RE16 VIEWS.—The Administrator may provide technical assist17 ance, and conduct and provide the results of studies and 

18 reviews, for Executive agencies, and entities sponsoring 

19 child care facilities in executive facilities, on a reimburs20 able basis, in order to assist the entities in complying with 

21 this section. The Chief Administrative Officer of the 

22 House of Representatives, the Librarian of Congress, the 

23 head of the designated Senate entity described in sub24 section (b), and the Director of the Administrative Office 

25 of the United States Courts, may provide technical assist-
418

•HR 936 IH 

1 ance, and conduct and provide the results of studies and 

2 reviews, or request that the Administrator provide tech3 nical assistance, and conduct and provide the results of 

4 studies and reviews, for legislative offices and judicial of5 fices, as appropriate, and entities operating child care fa6 cilities in legislative facilities or judicial facilities, as ap7 propriate, on a reimbursable basis, in order to assist the 

8 entities in complying with this section. 

9 (f) INTERAGENCY COUNCIL.—

10 (1) COMPOSITION.—The Administrator shall es11 tablish an interagency council, comprised of—

12 (A) representatives of all Executive agen13 cies described in subsection (d) and other Exec14 utive agencies at the election of the heads of the 

15 agencies; 

16 (B) a representative of the Chief Adminis17 trative Officer of the House of Representatives, 

18 at the election of the Chief Administrative Offi19 cer; 

20 (C) a representative of the head of the des21 ignated Senate entity described in subsection 

22 (b), at the election of the head of the entity; 

23 (D) a representative of the Librarian of 

24 Congress, at the election of the Librarian; and 
419

•HR 936 IH 

1 (E) a representative of the Director of the 

2 Administrative Office of the United States 

3 Courts, at the election of the Director. 

4 (2) FUNCTIONS.—The council shall facilitate 

5 cooperation and sharing of best practices, and de6 velop and coordinate policy, regarding the provision 

7 of child care, including the provision of areas for 

8 nursing mothers and other lactation support facili9 ties and services, in the Federal Government. 

10 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

11 authorized to be appropriated to carry out this section 

12 $900,000 for fiscal year 2004 and such sums as may be 

13 necessary for each subsequent fiscal year. 

14 SEC. 3244. FEDERAL CHILD CARE EVALUATION. 

15 (a) IN GENERAL.—Not later than 1 year after the 

16 date of enactment of this Act, the Administrator and the 

17 Director of the Office of Personnel Management shall 

18 jointly prepare and submit to Congress a report that eval19 uates child care provided by entities sponsoring child care 

20 facilities in executive facilities, legislative facilities, or judi21 cial facilities. 

22 (b) CONTENTS.—The evaluation shall contain, at a 

23 minimum— 

24 (1) information on the number of children re25 ceiving child care described in subsection (a), ana-
420

•HR 936 IH 

1 lyzed by age, including information on the number 

2 of those children who are age 6 through 12;

3 (2) information on the number of families not 

4 using child care described in subsection (a) because 

5 of the cost of the child care; and 

6 (3) recommendations for improving the quality 

7 and cost-effectiveness of child care described in sub8 section (a), including recommendations of options 

9 for creating an optimal organizational structure and 

10 using best practices for the delivery of the child 

11 care. 

12 SEC. 3245. CHILD CARE SERVICES FOR FEDERAL EMPLOY13 EES. 

14 (a) IN GENERAL.—In addition to services authorized 

15 to be provided by an agency pursuant to section 590 of 

16 title 40, United States Code, an Executive agency that 

17 provides, or proposes to provide, child care services for 

18 Federal employees may use agency funds to provide the 

19 child care services, in a facility that is owned or leased 

20 by an Executive agency, or through a contractor, for civil21 ian employees of the agency. 

22 (b) AFFORDABILITY.—Funds so used with respect to 

23 any such facility or contractor shall be applied to improve 

24 the affordability of child care for lower income federal em-
421

•HR 936 IH 

1 ployees using or seeking to use the child care services of2 fered by the facility or contractor. 

3 (c) REGULATIONS.—The Administrator, after con4 sultation with the Director of the Office of Personnel Man5 agement, shall, within 180 days after the date of enact6 ment of this Act, issue regulations necessary to carry out 

7 this section. 

8 (d) DEFINITION.—For purposes of this section, the 

9 term ‘‘Executive agency’’ has the meaning given the term 

10 by section 105 of title 5, United States Code, but does 

11 not include the General Accounting Office. 

12 SEC. 3246. MISCELLANEOUS PROVISIONS RELATING TO 

13 CHILD CARE PROVIDED BY FEDERAL AGEN14 CIES. 

15 (a) GUIDANCE, ASSISTANCE, AND OVERSIGHT.—Sec16 tion 590(a) of title 40, United States Code, is amended—

17 (1) by inserting ‘‘federal’’ before ‘‘child care 

18 centers’’; and 

19 (2) by striking ‘‘federal workers’’ and inserting 

20 ‘‘federal employees’’. 

21 (b) AVAILABILITY OF FEDERAL CHILD CARE CEN22 TERS FOR ONSITE CONTRACTORS; PERCENTAGE GOAL.—

23 Section 590(b) of title 40, United States Code, is amend24 ed—
422

•HR 936 IH 

1 (1) in paragraph (1)(B), by striking ‘‘officer or 

2 agency of the Federal Government’’ and inserting 

3 ‘‘federal agency or officer of a federal agency’’; and 

4 (2) in paragraph (2)(C), by striking clauses (i) 

5 and (ii) and inserting the following: 

6 ‘‘(i) the space will be used to provide 

7 child care and related services to— 

8 ‘‘(I) children of federal employees 

9 or onsite federal contractors; or 

10 ‘‘(II) dependent children who live 

11 with federal employees or onsite fed12 eral contractors; and 

13 ‘‘(ii) the child care provider will give 

14 priority for available child care and related 

15 services in the space to federal employees 

16 and onsite federal contractors.’’. 

17 (c) PAYMENT OF COSTS OF TRAINING PROGRAMS.—

18 Section 590(d) of title 40, United States Code, is amended 

19 to read as follows: 

20 ‘‘(d) PAYMENT OF OTHER COSTS.—

21 ‘‘(1) PAYMENT OF ACCREDITATION FEES; 

22 TRAINING, CONFERENCE, AND MEETING EX23 PENSES.—If a federal agency has a child care facil24 ity in a federal space, or is a sponsoring agency for 

25 a child care facility in a federal space, the agency or 
423

•HR 936 IH 

1 the General Services Administration may pay ac2 creditation fees, including renewal fees, for that cen3 ter to be accredited. Any federal agency that pro4 vides or proposes to provide child care services for 

5 children referred to in subsection (b)(2)(C)(i), may 

6 reimburse any federal employee or any person em7 ployed to provide the services for the costs of train8 ing programs, conferences, and meetings and related 

9 travel, transportation, and subsistence expenses in10 curred in connection with those activities. Any per 

11 diem allowance made under this subsection shall not 

12 exceed the rate specified in regulations prescribed 

13 under section 5707 of title 5, United States Code. 

14 ‘‘(2) AGREEMENTS.—

15 ‘‘(A) PAYMENT OF GENERAL OPERATING

16 EXPENSES THROUGH AGREEMENTS WITH PRI17 VATE ENTITIES.—If a federal agency has a 

18 child care facility in a federal space, or is a 

19 sponsoring agency for a child care facility in a 

20 federal space, the agency, the child care center 

21 board of directors, or the General Services Ad22 ministration may enter into an agreement with 

23 1 or more private entities under which the pri24 vate entities will assist in defraying the general 

25 operating expenses of the child care providers 
424

•HR 936 IH 

1 including providing salaries and tuition assist2 ance programs at the facility.

3 ‘‘(B) PROVISIONS OF COST-EFFECTIVE

4 SERVICES THROUGH AGREEMENTS.—

5 ‘‘(i) IN GENERAL.—Notwithstanding 

6 any other provision of law, if a federal 

7 agency does not have a child care program, 

8 or if the Administrator of General Services 

9 has identified a need for child care for fed10 eral employees at a federal agency pro11 viding child care services that do not meet 

12 the requirements of subsection (b), the 

13 agency or the Administrator may enter 

14 into an agreement with a non-Federal, li15 censed, and accredited child care facility, 

16 or a planned child care facility that will be17 come licensed and accredited, for the provi18 sion of child care services for children of 

19 federal employees. 

20 ‘‘(ii) DETERMINATION.—Before enter21 ing into such an agreement, the head of 

22 the federal agency shall determine that 

23 providing child care services through the 

24 agreement is more cost-effective than es25 tablishment of a federal child care center. 
425

•HR 936 IH 

1 ‘‘(iii) PAYMENT OF FEES OR REIM2 BURSEMENT BY A FEDERAL AGENCY.—The 

3 federal agency may pay the fees or provide 

4 the reimbursement described in paragraph 

5 (1) if, in exchange for the services, the fa6 cility reserves child care spaces for children 

7 referred to in subsection (b)(2)(C)(i), as 

8 agreed to by the parties. The cost of any 

9 such services provided by a federal agency 

10 to a federal child care facility on behalf of 

11 another federal agency shall be reimbursed 

12 by the receiving agency. 

13 ‘‘(C) APPLICATION.—This paragraph does 

14 not apply to residential child care programs.’’. 

15 (d) ENROLLMENT GOALS AND PARTNERSHIPS OR

16 CONTRACTS WITH NONGOVERNMENTAL ENTITIES.—Sec17 tion 590 of title 40, United States Code, is amended—

18 (1) by striking subsection (e); 

19 (2) by redesignating subsections (f) and (g) as 

20 subsections (g) and (h), respectively; 

21 (3) by inserting after subsection (d) the fol22 lowing: 

23 ‘‘(e) ENROLLMENT GOALS AND PARTNERSHIPS OR

24 CONTRACTS WITH NONGOVERNMENTAL ENTITIES.—

25 ‘‘(1) ENROLLMENT GOALS.—
426

•HR 936 IH 

1 ‘‘(A) GOVERNMENT-WIDE STANDARD.—

2 The Administrator of General Services shall 

3 confirm that at least 50 percent of aggregate 

4 enrollment in federal child care centers govern5 mentwide are children of federal employees or 

6 onsite federal contractors, or dependent chil7 dren who live with federal employees or onsite 

8 federal contractors. 

9 ‘‘(B) INDIVIDUAL CENTER GOAL.—Each 

10 provider of child care services at an individual 

11 federal child care center shall maintain 50 per12 cent of the enrollment at the center of children 

13 described under subparagraph (A) as a goal for 

14 enrollment at the center. 

15 ‘‘(C) BUSINESS PLAN TO ACHIEVE GOAL.—

16 ‘‘(i) PLAN.—If enrollment at such a 

17 center does not meet the percentage goal 

18 under subparagraph (B), the provider shall 

19 develop and implement a business plan 

20 with the sponsoring federal agency to 

21 achieve the goal within a reasonable time22 frame. 

23 ‘‘(ii) CRITERIA.—The plan shall be 

24 approved by the Administrator of General 

25 Services based on— 
427

•HR 936 IH 

1 ‘‘(I) compliance of the plan with 

2 standards established by the Adminis3 trator; and 

4 ‘‘(II) the effect of the plan on 

5 achieving the aggregate government6 wide enrollment percentage goal de7 scribed in subparagraph (A). 

8 ‘‘(2) PARTNERSHIPS OR CONTRACTS WITH NON9 GOVERNMENTAL ENTITIES.—The Administrator of 

10 General Services may enter into public-private part11 nerships or contracts with nongovernmental entities 

12 to increase the capacity, quality, affordability, or 

13 range of child care and related services and may, on 

14 a demonstration basis, waive subsection (b)(2)(C)(ii) 

15 and paragraph (1) of this subsection.’’. 

16 (e) PILOT PROJECTS.—Section 590 of title 40, 

17 United States Code, as amended by subsection (d), is fur18 ther amended by inserting after subsection (e) the fol19 lowing: 

20 ‘‘(f) PILOT PROJECTS.—

21 ‘‘(1) IN GENERAL.—Upon approval of the agen22 cy head, a federal agency may conduct a pilot 

23 project not otherwise authorized by law for no more 

24 than 2 years to test innovative approaches to pro25 viding alternative forms of quality child care assist-
428

•HR 936 IH 

1 ance for federal employees. A federal agency head 

2 may extend such a pilot project for an additional 2-

3 year period. Before any such pilot project may be 

4 implemented, a determination shall be made by the 

5 agency head that initiating the pilot project would be 

6 more cost-effective than establishing a new federal 

7 child care center. Costs of any such pilot project 

8 shall be paid solely by the agency conducting the 

9 pilot project. 

10 ‘‘(2) INFORMATION CLEARINGHOUSE.—The Ad11 ministrator of General Services shall serve as an in12 formation clearinghouse for pilot projects initiated 

13 by federal agencies under this subsection to dissemi14 nate information concerning the pilot projects to the 

15 other federal agencies. 

16 ‘‘(3) EVALUATIONS.—Within 6 months after 

17 completion of the initial 2-year pilot project period 

18 described in paragraph (1), a federal agency con19 ducting a pilot project under this subsection shall 

20 provide for an evaluation of the impact of the 

21 project on the delivery of child care services to fed22 eral employees, and shall submit the results of the 

23 evaluation to the Administrator of General Services. 

24 The Administrator shall share the results with other 

25 federal agencies.’’. 
429

•HR 936 IH 

1 (f) DEFINITIONS.—Section 590 of title 40, United 

2 States Code, as amended by subsection (e), is further 

3 amended by adding at the end the following: 

4 ‘‘(i) DEFINITIONS.—In subsections (a) through (f): 

5 ‘‘(1) FEDERAL AGENCY.—The term ‘federal 

6 agency’ has the meaning given the term ‘Executive 

7 agency’ in section 3242 of the Federal Employees 

8 Child Care Act. 

9 ‘‘(2) FEDERAL BUILDINGS; FEDERAL SPACE.—

10 The terms ‘federal building’ and ‘federal space’ have 

11 the meanings given the term ‘executive facility’ in 

12 such section 3242. 

13 ‘‘(3) FEDERAL CHILD CARE CENTER.—The 

14 term ‘federal child care center’ means a child care 

15 center in an executive facility, as defined in such 

16 section 3242. 

17 ‘‘(4) FEDERAL CONTRACTOR; FEDERAL EM18 PLOYEE.—The terms ‘federal contractor’ and ‘fed19 eral employee’ mean a contractor and an employee, 

20 respectively, of an Executive agency, as defined in 

21 such section 3242.’’.

22 CHAPTER 4—EARLY LEARNING 

23 SEC. 3251. SHORT TITLE; FINDINGS. 

24 (a) SHORT TITLE.—This chapter may be cited as the 

25 ‘‘Early Learning Linkages Act of 2003’’. 
430

•HR 936 IH 

1 (b) FINDINGS.—Congress finds that—

2 (1) medical research demonstrates that ade3 quate stimulation of a young child’s brain between 

4 birth and age 5 is critical to the physical develop5 ment of the young child’s brain; 

6 (2) parents are the most significant and effec7 tive teachers of their children, and they alone are re8 sponsible for choosing the best early learning oppor9 tunities for their child; 

10 (3) parent education and parent involvement 

11 are critical to the success of any early learning pro12 gram or activity; 

13 (4) the more intensively parents are involved in 

14 their child’s early learning, the greater the cognitive 

15 and noncognitive benefits to their children; 

16 (5) many parents have difficulty finding the in17 formation and support the parents seek to help their 

18 children grow to their full potential; 

19 (6) each day approximately 13,000,000 young 

20 children, including 6,000,000 infants or toddlers, 

21 spend some or all of their day being cared for by 

22 someone other than their parents; 

23 (7) quality early learning programs, including 

24 those designed to promote effective parenting, can 

25 increase the literacy rate, the secondary school grad-
431

•HR 936 IH 

1 uation rate, the employment rate, and the college en2 rollment rate for children who have participated in 

3 voluntary early learning programs and activities; 

4 (8) early childhood interventions can yield sub5 stantial advantages to participants in terms of emo6 tional and cognitive development, education, eco7 nomic well-being, and health, with the latter two ad8 vantages applying to the children’s families as well; 

9 (9) participation in quality early learning pro10 grams, including those designed to promote effective 

11 parenting, can decrease the future incidence of teen12 age pregnancy, welfare dependency, at-risk behav13 iors, and juvenile delinquency for children; 

14 (10) several cost-benefit analysis studies indi15 cate that for each $1 invested in quality early learn16 ing programs, the Federal Government can save over 

17 $5 by reducing the number of children and families 

18 who participate in Federal Government programs 

19 like special education and welfare; 

20 (11) for children placed in the care of others 

21 during the workday, the low salaries paid to the 

22 child care staff, the lack of career progression for 

23 the staff, and the lack of child development special24 ists involved in early learning and child care pro25 grams, make it difficult to attract and retain the 
432

•HR 936 IH 

1 quality of staff necessary for a positive early learn2 ing experience; 

3 (12) Federal Government support for early 

4 learning has primarily focused on out-of-home care 

5 programs like those established under the Head 

6 Start Act, the Child Care and Development Block 

7 Grant of 1990, and part C of the Individuals with 

8 Disabilities Education Act, and these programs—

9 (A) serve far fewer than half of all eligible 

10 children; 

11 (B) are not primarily designed to provide 

12 support for parents who care for their young 

13 children in the home; and 

14 (C) lack a means of coordinating early 

15 learning opportunities in each community; and 

16 (13) by helping communities increase, expand, 

17 and better coordinate early learning opportunities 

18 for children and their families, the productivity and 

19 creativity of future generations will be improved, and 

20 the Nation will be prepared for continued leadership 

21 in the 21st century. 

22 SEC. 3252. PURPOSES. 

23 The purposes of this chapter are—

24 (1) to increase the availability of voluntary pro25 grams, services, and activities that support early 
433

•HR 936 IH 

1 childhood development, increase parent effectiveness, 

2 and promote the learning and socioemotional readi3 ness of young children so that young children enter 

4 school ready to learn; 

5 (2) to remove barriers to the provision of an ac6 cessible system of early childhood learning programs 

7 in communities throughout the United States; 

8 (3) to increase the availability and affordability 

9 of professional development activities and compensa10 tion for caregivers and child care providers; and 

11 (4) to facilitate the development of community12 based systems of collaborative service delivery mod13 els characterized by resource sharing, linkages be14 tween appropriate supports, and local planning for 

15 services. 

16 SEC. 3253. DEFINITIONS. 

17 In this chapter: 

18 (1) CAREGIVER.—The term ‘‘caregiver’’ means 

19 an individual (including a relative, neighbor, or fam20 ily friend) who regularly or frequently provides care, 

21 with or without compensation, for a child for whom 

22 the individual is not the parent. 

23 (2) CHILD CARE PROVIDER.—The term ‘‘child 

24 care provider’’ means a provider of non-residential 

25 child care services (including center-based, family-
434

•HR 936 IH 

1 based, or in-home child care services) for compensa2 tion who or that is legally operating under State law, 

3 and complies with applicable State and local require4 ments for the provision of child care services. 

5 (3) EARLY LEARNING.—The term ‘‘early learn6 ing’’, used with respect to a program or activity, 

7 means learning designed to facilitate the develop8 ment of cognitive, language, motor, and 

9 socioemotional skills for, and to promote learning 

10 readiness in, young children. 

11 (4) EARLY LEARNING PROGRAM.—The term 

12 ‘‘early learning program’’ means—

13 (A) a program of services or activities that 

14 helps parents, caregivers, and child care pro15 viders incorporate early learning into the daily 

16 lives of young children; or 

17 (B) a program that directly provides early 

18 learning to young children. 

19 (5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

20 has the meaning given the term in section 4 of the 

21 Indian Self-Determination and Education Assistance 

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

23 (6) LOCAL COUNCIL.—The term ‘‘Local Coun24 cil’’ means a Local Council established or designated 
435

•HR 936 IH 

1 under section 3261(a) that serves one or more local2 ities. 

3 (7) LOCALITY.—The term ‘‘locality’’ means a 

4 city, county, borough, township, or area served by 

5 another general purpose unit of local government, an 

6 Indian tribe, a Regional Corporation, or a Native 

7 Hawaiian entity. 

8 (8) MIGRATORY CHILDREN.—The term ‘‘migra9 tory children’’ has the meaning given such term in 

10 section 1309 of the Elementary and Secondary Edu11 cation Act of 1965 (20 U.S.C. 6399). 

12 (9) PARENT.—The term ‘‘parent’’ means a bio13 logical parent, an adoptive parent, a stepparent, a 

14 foster parent, or a legal guardian of, or a person 

15 standing in loco parentis to, a child. 

16 (10) POVERTY LINE.—The term ‘‘poverty line’’ 

17 means the poverty line (as defined by the Office of 

18 Management and Budget, and revised annually in 

19 accordance with section 673(2) of the Community 

20 Services Block Grant Act (42 U.S.C. 9902(2))) ap21 plicable to a family of the size involved. 

22 (11) PREKINDERGARTEN EDUCATION PRO23 GRAM.—The term ‘‘prekindergarten education pro24 gram’’ means a program that—
436

•HR 936 IH 

1 (A) serves children ages 3, 4, and 5 years 

2 old and that supports children’s cognitive, so3 cial, emotional, and physical development and 

4 helps prepare children for the transition to kin5 dergarten; and 

6 (B) complies with the Head Start perform7 ance standards as in effect under section 

8 641A(a) of the Head Start Act (42 U.S.C. 

9 9836a(a)). 

10 (12) REGIONAL CORPORATION.—The term ‘‘Re11 gional Corporation’’ means an entity listed in section 

12 419(4)(B) of the Social Security Act (42 U.S.C. 

13 619(4)(B)). 

14 (13) SECRETARY.—The term ‘‘Secretary’’ 

15 means the Secretary of Health and Human Services. 

16 (14) STATE.—The term ‘‘State’’ means any of 

17 the several States, the District of Columbia, the 

18 Commonwealth of Puerto Rico, Guam, American 

19 Samoa, or the Commonwealth of the Northern Mar20 iana Islands. 

21 (15) TRAINING.—The term ‘‘training’’ means 

22 instruction in early learning that— 

23 (A) is required for certification under 

24 State and local laws, regulations, and policies; 
437

•HR 936 IH 

1 (B) is required to receive a nationally or 

2 State recognized credential or its equivalent; 

3 (C) is received in a postsecondary edu4 cation program focused on early learning or 

5 early childhood development in which the indi6 vidual is enrolled; or 

7 (D) is provided, certified, or sponsored by 

8 an organization that is recognized for its exper9 tise in promoting early learning or early child10 hood development. 

11 (16) YOUNG CHILD.—The term ‘‘young child’’ 

12 means any child from birth to the age of mandatory 

13 school attendance in the State where the child re14 sides. 

15 SEC. 3254. PROHIBITIONS. 

16 (a) PARTICIPATION NOT REQUIRED.—No person, in17 cluding a parent, shall be required to participate in any 

18 program of early childhood education, early learning, par19 ent education, or developmental screening pursuant to the 

20 provisions of this chapter. 

21 (b) RIGHTS OF PARENTS.—Nothing in this chapter 

22 shall be construed to affect the rights of parents otherwise 

23 established in Federal, State, or local law. 

24 (c) NONDUPLICATION.—No funds provided under 

25 this chapter shall be used to carry out an activity funded 
438

•HR 936 IH 

1 under another provision of law providing for Federal child 

2 care or early learning programs, unless an expansion of 

3 such activity is identified in the local needs assessment 

4 and performance goals under this chapter. 

5 SEC. 3255. AUTHORIZATION AND APPROPRIATION OF 

6 FUNDS. 

7 There are authorized to be appropriated to the De8 partment of Health and Human Services to carry out this 

9 chapter—

10 (1) $1,000,000,000 for fiscal year 2004; 

11 (2) $1,500,000,000 for fiscal year 2005; and 

12 (3) such sums as may be necessary for fiscal 

13 years 2006 and 2007. 

14 SEC. 3256. ALLOTMENTS TO STATES. 

15 (a) AMOUNTS RESERVED.—

16 (1) TERRITORIES AND POSSESSIONS.—The Secretary shall reserve not more than 1 17 ⁄2 of 1 percent 

18 of the funds appropriated to carry out this chapter 

19 for any fiscal year for distribution to Guam, Amer20 ican Samoa, and the Commonwealth of the Northern 

21 Mariana Islands, to be allotted in accordance with 

22 their respective needs. 

23 (2) INDIAN TRIBES AND TRIBAL ORGANIZA24 TIONS.—The Secretary shall reserve not more than 

25 3 percent of the funds appropriated to carry out this 
439

•HR 936 IH 

1 chapter for any fiscal year for distribution to Indian 

2 tribes and tribal organizations with applications ap3 proved under subsection (c). 

4 (b) ALLOTMENTS TO REMAINING STATES.—

5 (1) GENERAL AUTHORITY.—From the funds 

6 appropriated to carry out this chapter for any fiscal 

7 year remaining after reserving funds under sub8 section (a), the Secretary shall allot to each State 

9 (excluding Guam, American Samoa, and the Com10 monwealth of the Northern Mariana Islands) an 

11 amount equal to the sum of—

12 (A) an amount that bears the same ratio 

13 to 50 percent of such remainder as the product 

14 of the young child factor of the State and the 

15 allotment percentage of the State bears to the 

16 sum of the corresponding products for all 

17 States; and 

18 (B) an amount that bears the same ratio 

19 to 50 percent of such remainder as the product 

20 of the school lunch factor of the State and the 

21 allotment percentage of the State bears to the 

22 sum of the corresponding products for all 

23 States. 

24 (2) YOUNG CHILD FACTOR.—The term ‘‘young 

25 child factor’’ means the ratio of the number of chil-
440

•HR 936 IH 

1 dren in the State under 5 years of age to the num2 ber of such children in all States as provided by the 

3 most recent annual estimates of population in the 

4 States by the Bureau of the Census. 

5 (3) SCHOOL LUNCH FACTOR.—The term 

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

7 of children in the State who are receiving free or re8 duced price lunches under the school lunch program 

9 established under the National School Lunch Act 

10 (42 U.S.C. 1751 et seq.) to the number of such chil11 dren in all the States as determined annually by the 

12 Department of Agriculture. 

13 (4) ALLOTMENT PERCENTAGE.—

14 (A) IN GENERAL.—The allotment percent15 age for a State is determined by dividing the 

16 per capita income of all individuals in the 

17 United States, by the per capita income of all 

18 individuals in the State. 

19 (B) LIMITATIONS.—If an allotment per20 centage determined under subparagraph (A)—

21 (i) is more than 1.2 percent, then the 

22 allotment percentage of that State shall be 

23 considered to be 1.2 percent; and 
441

•HR 936 IH 

1 (ii) is less than 0.8 percent, then the 

2 allotment percentage of the State shall be 

3 considered to be 0.8 percent. 

4 (C) PER CAPITA INCOME.—For purposes 

5 of subparagraph (A), per capita income shall 

6 be—

7 (i) determined at 2-year intervals; 

8 (ii) applied for the 2-year period be9 ginning on October 1 of the first fiscal 

10 year beginning on or after the date such 

11 determination is made; and 

12 (iii) equal to the average of the an13 nual per capita incomes for the most re14 cent period of 3 consecutive years for 

15 which satisfactory data are available from 

16 the Department of Commerce at the time 

17 such determination is made. 

18 (c) ALLOTMENTS TO INDIAN TRIBES AND TRIBAL

19 ORGANIZATIONS.—

20 (1) RESERVATION OF FUNDS.—From amounts 

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

22 make allotments to Indian tribes and tribal organi23 zations that submit applications under this sub24 section, to plan and carry out programs and activi25 ties to encourage child care providers to improve 
442

•HR 936 IH 

1 their qualifications and to retain qualified child care 

2 providers in the child care field. 

3 (2) APPLICATIONS AND REQUIREMENTS.—An 

4 application for an allotment to an Indian tribe or 

5 tribal organization under this section shall provide 

6 that—

7 (A) the applicant will coordinate, to the 

8 maximum extent practicable, with the lead 

9 agency in each State in which the applicant will 

10 carry out such programs and activities; and 

11 (B) the applicant will make such reports 

12 on, and conduct such audits of, programs and 

13 activities under this chapter as the Secretary 

14 may require. 

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

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

19 (e) REALLOTMENTS.—

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

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

22 the Secretary determines will not be distributed to 

23 the State for such fiscal year shall be reallotted by 

24 the Secretary to other States proportionately based 
443

•HR 936 IH 

1 on allotments made under such subsection to such 

2 States for such fiscal year. 

3 (2) LIMITATIONS.—

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

6 paragraph (1) shall be reduced to the extent 

7 that such amount exceeds the amount that the 

8 Secretary estimates will be distributed to the 

9 State to make grants under this chapter. 

10 (B) REALLOTMENTS.—The amount of 

11 such reduction shall be reallotted proportion12 ately based on allotments made under sub13 section (b) to States with respect to which no 

14 reduction in an allotment, or in a reallotment, 

15 is required by this subsection. 

16 (3) AMOUNTS REALLOTTED.—For purposes of 

17 this chapter (other than this subsection and sub18 section (b)), any amount reallotted to a State under 

19 this subsection shall be considered to be part of the 

20 allotment made under subsection (b) to the State. 

21 (f) FEDERAL SHARE.—

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

23 cost of making grants under this chapter shall be 85 

24 percent for the first and second years of the grant, 

25 80 percent for the third and fourth years of the 
444

•HR 936 IH 

1 grant, and 75 percent for the subsequent years of 

2 the grant. 

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

4 share of the cost of making grants under this chap5 ter may be contributed in cash or in kind, fairly 

6 evaluated, including facilities, equipment, or services, 

7 which may be provided from State or local public 

8 sources, or through donations from private entities. 

9 For the purposes of this paragraph the term ‘‘facili10 ties’’ includes the use of facilities, but the term 

11 ‘‘equipment’’ means donated equipment and not the 

12 use of equipment. 

13 (g) MAINTENANCE OF EFFORT.—The Secretary shall 

14 not make a grant under this chapter to any State unless 

15 the Secretary first determines that the total expenditures 

16 by the State and its political subdivisions to support early 

17 learning programs (other than funds used to pay the non18 Federal share under subsection (f)(2)) for the fiscal year 

19 for which the determination is made is equal to or greater 

20 than such expenditures for the preceding fiscal year. 

21 (h) SUPPLEMENT NOT SUPPLANT.—Amounts re22 ceived under this chapter shall be used to supplement and 

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

24 expended to promote early learning. 
445

•HR 936 IH 

1 (i) SPECIAL RULE.—If funds appropriated to carry 

2 out this chapter are less than $150,000,000 for any fiscal 

3 year, the Secretary shall make grants for the fiscal year 

4 directly to Local Councils, on a competitive basis, to pay 

5 the Federal share of the cost of carrying out early learning 

6 programs in the locality served by the Local Council. In 

7 carrying out the preceding sentence—

8 (1) subsection (g) of this section, section 

9 3257(b), and section 3259(b)(4) shall not apply; 

10 (2) the Secretary shall provide such technical 

11 assistance and monitoring as necessary to ensure 

12 that the use of the funds by Local Councils and the 

13 distribution of the funds to Local Councils are con14 sistent with this chapter; and 

15 (3) subject to paragraph (1), the Secretary 

16 shall assume the responsibilities of the Lead State 

17 Agency under this chapter, as appropriate. 

18 SEC. 3257. ADMINISTRATIVE COSTS. 

19 (a) FEDERAL ADMINISTRATIVE COSTS.—The Sec20 retary may use not more than 3 percent of the amount 

21 appropriated under section 3255 for a fiscal year to pay 

22 for the administrative costs of carrying out this chapter, 

23 including the monitoring and evaluation of State and local 

24 efforts. 
446

•HR 936 IH 

1 (b) STATE ADMINISTRATIVE COSTS.—A State that 

2 receives a grant under this chapter may use—

3 (1) not more than 2 percent of the funds made 

4 available through the grant to carry out activities 

5 designed to coordinate early learning programs on 

6 the State level, including programs funded or oper7 ated by the State educational agency, health, chil8 dren and family, and human service agencies, and 

9 any State-level collaboration or coordination council 

10 involving early learning and education, such as the 

11 entities funded under section 640(a)(5) of the Head 

12 Start Act (42 U.S.C. 9835(a)(5)); 

13 (2) not more than 2 percent of the funds made 

14 available through the grant for the administrative 

15 costs of carrying out the grant program and the 

16 costs of reporting State and local efforts to the Sec17 retary; and 

18 (3) not more than 3 percent of the funds made 

19 available through the grant for training, technical 

20 assistance, and wage incentives provided by the 

21 State to Local Councils. 

22 SEC. 3258. STATE REQUIREMENTS. 

23 (a) IN GENERAL.—The Secretary may make grants 

24 to eligible States that comply with section 3259, to expand 
447

•HR 936 IH 

1 access to and quality of early learning programs that meet 

2 requirements in section 3262. 

3 (b) STATE APPLICATIONS.—

4 (1) IN GENERAL.—To be eligible to receive a 

5 grant under subsection (a), a State shall submit an 

6 application in accordance with this subsection to the 

7 Secretary at such time, in such manner, and con8 taining such information as the Secretary may rea9 sonably require. 

10 (2) CONTENTS OF STATE APPLICATION.—The 

11 State shall include in such application a plan that 

12 includes—

13 (A) a statement ensuring that the State 

14 has identified a Lead State Agency to admin15 ister and monitor the grant and ensure State16 level coordination of early learning programs; 

17 (B) a statement describing the manner in 

18 which the Lead State Agency will allocate funds 

19 received under this chapter to localities as re20 quired under section 3259; 

21 (C) a description of how grant funds will 

22 be used to expand access to and quality of early 

23 learning programs as required under section 

24 3262; 
448

•HR 936 IH 

1 (D) a description of the performance goals 

2 to be achieved by funds received under this 

3 chapter and the measure to be used to evaluate 

4 progress toward such goals; and 

5 (E) a statement describing how the State 

6 will provide technical assistance to ensure that 

7 Local Councils receiving funds under this chap8 ter comply with the requirements of this chap9 ter. 

10 SEC. 3259. STATE ADMINISTRATION. 

11 (a) IN GENERAL.—For a State to be eligible to re12 ceive a grant under this chapter, the State shall appoint 

13 a Lead State Agency to carry out the functions described 

14 in subsection (b). 

15 (b) LEAD STATE AGENCY.—

16 (1) IN GENERAL.—The Lead State Agency as 

17 described in subsection (a) shall allocate funds in ac18 cordance with section 3258 to localities. 

19 (2) LIMITATION.—The Lead State Agency shall 

20 allocate not less than 93 percent of such funds that 

21 have been provided to the State for a fiscal year to 

22 more than 1 locality. 

23 (3) FUNCTIONS OF AGENCY.—In addition to al24 locating funds under paragraph (1), the Lead State 

25 Agency shall—
449

•HR 936 IH 

1 (A) advise and assist Local Councils in the 

2 performance of their duties under this chapter; 

3 (B) develop and submit the State applica4 tion and the State plan required under section 

5 3258; 

6 (C) evaluate and approve applications sub7 mitted by localities; 

8 (D) ensure collaboration with respect to 

9 assistance provided under this chapter between 

10 the State agencies responsible for education, 

11 child care, health and social services; 

12 (E) prepare and submit to the Secretary 

13 an annual report, after approval by the State 

14 Council designated under subsection (c), which 

15 shall include a statement describing the manner 

16 in which funds received under section 3258 are 

17 expended and documentation of the effects that 

18 resources under this chapter have had on—

19 (i) the number of children in full-day, 

20 full-year Head Start programs, as provided 

21 under the Head Start Act (42 U.S.C. 9831 

22 et seq.); 

23 (ii) the number of infants and tod24 dlers in programs that provide comprehen25 sive Early Head Start services, as provided 
450

•HR 936 IH 

1 under the Head Start Act (42 U.S.C. 9831 

2 et seq.); 

3 (iii) the number of children attending, 

4 and types of programs providing, pre5 kindergarten, including those with special 

6 needs; 

7 (iv) the linkages between early learn8 ing programs and health care services for 

9 young children; 

10 (v) the linkages among early learning 

11 programs; 

12 (vi) access to early learning activities 

13 for young children with special needs; 

14 (vii) expansion of the days or times 

15 that children are served in existing early 

16 learning programs; 

17 (viii) removal of ancillary barriers to 

18 early learning, including transportation dif19 ficulties, absence of programs during non20 traditional work times, and family afford21 ability; and 

22 (ix) professional development, and re23 cruitment and retention incentives, for 

24 caregivers. 
451

•HR 936 IH 

1 (4) STATE PREFERENCE.—In making grants to 

2 Local Councils under this chapter, the State shall 

3 give preference to supporting Local Councils that 

4 meet criteria that are specified by the State and ap5 proved by the Secretary, for qualifying as serving 

6 areas of greatest need for expanding access to and 

7 quality of early learning programs. 

8 (c) STATE COUNCIL.—

9 (1) IN GENERAL.—The State Council referred 

10 to in subsection (b)(3) shall be composed of a group 

11 of representatives of agencies, institutions, and other 

12 entities, as described in paragraphs (2) and (3), that 

13 provide child care or early learning services in the 

14 State. 

15 (2) MEMBERSHIP.—Except as provided in para16 graph (6), the chief executive officer of the State 

17 shall appoint to the State Council at least 1 rep18 resentative from—

19 (A) the office of the chief executive officer 

20 of the State; 

21 (B) the State educational agency; 

22 (C) the State agency administering funds 

23 received under the Child Care and Development 

24 Block Grant Act of 1990 (42 U.S.C. 9858 et 

25 seq.); 
452

•HR 936 IH 

1 (D) the State social services agency; 

2 (E) the State Head Start association; 

3 (F) organizations representing parents 

4 within the State; 

5 (G) resource and referral agencies within 

6 the State; and 

7 (H) specialists in early child development. 

8 (3) ADDITIONAL MEMBERS.—In addition to 

9 representatives appointed under paragraph (2), the 

10 chief executive officer of the State may appoint to 

11 the State Council additional representatives from— 

12 (A) the State Board of Education; 

13 (B) the State health agency; 

14 (C) the State labor or employment agency; 

15 (D) organizations representing teachers; 

16 (E) organizations representing business; 

17 and 

18 (F) organizations representing labor. 

19 (4) REPRESENTATION.—To the extent prac20 ticable, the chief executive officer of the State shall 

21 appoint representatives under paragraphs (2) and 

22 (3) in a manner that is diverse or balanced accord23 ing to the race, ethnicity, and gender of its mem24 bers. 
453

•HR 936 IH 

1 (5) FUNCTIONS OF THE COUNCIL.—The State 

2 Council shall—

3 (A) conduct a needs and resources assess4 ment, or use such an assessment if conducted 

5 not later than 2 years prior to the date of en6 actment of this chapter, to—

7 (i) determine where early learning 

8 programs are lacking or are inadequate 

9 within the State, with particular attention 

10 to poor urban and rural areas, and what 

11 special services are needed within the 

12 State, such as services for children whose 

13 native language is a language other than 

14 English; and 

15 (ii) identify all existing State-funded 

16 early learning programs, and, to the extent 

17 practical, other programs serving pre18 kindergarten children in the State, includ19 ing parent education programs, and to 

20 specify which programs might be expanded 

21 or upgraded with the use of funds received 

22 under section 3255; and 

23 (B) based on the assessment described in 

24 subparagraph (A), determine funding priorities 
454

•HR 936 IH 

1 for amounts received under section 3255 for the 

2 State. 

3 (6) DESIGNATING AN EXISTING ENTITY AS

4 STATE COUNCIL.—To the extent that a State has a 

5 State Council or an entity that functions as such be6 fore the date of enactment of this chapter that is 

7 comparable to the State Council described in this 

8 subsection, the State shall be considered to be in 

9 compliance with this subsection. 

10 SEC. 3260. LOCAL APPLICATION. 

11 (a) IN GENERAL.—To be eligible to receive a grant 

12 under this chapter, a Local Council shall submit an appli13 cation to the Lead State Agency at such time, in such 

14 manner, and containing such information as the Lead 

15 Agency may require. 

16 (b) CONTENTS.—An application submitted under 

17 subsection (a) shall include a statement containing an as18 surance that the local government entity, Indian tribe, Re19 gional Corporation, or Native Hawaiian entity has estab20 lished or designated a Local Council under section 

21 3261(a), and the Local Council has developed a local plan 

22 for carrying out early learning programs under this chap23 ter that includes—

24 (1) a needs and resources assessment con25 cerning early learning services and access to such 
455

•HR 936 IH 

1 services by families, and a statement describing how 

2 early learning programs will be funded consistent 

3 with the assessment; 

4 (2) a statement of how the Local Council will 

5 ensure that funded programs will meet the perform6 ance goals referred to in section 3258(b)(2)(D) es7 tablished by the State; and 

8 (3) a description of how the Local Council will 

9 form collaboratives among local child care, social, 

10 and health services and educational providers to 

11 maximize resources and concentrate efforts on areas 

12 of greatest need. 

13 SEC. 3261. LOCAL ADMINISTRATION. 

14 (a) LOCAL COUNCIL.—

15 (1) IN GENERAL.—To be eligible to receive a 

16 grant under this chapter, a local government entity, 

17 Indian tribe, Regional Corporation, or Native Ha18 waiian entity, as appropriate, shall establish or des19 ignate a Local Council, which shall be composed 

20 of—

21 (A) representatives of local agencies and 

22 organizations directly affected by early learning 

23 programs assisted under this chapter; 

24 (B) parents or representatives of families 

25 with young children; 
456

•HR 936 IH 

1 (C) other individuals concerned with early 

2 learning issues in the locality, such as rep3 resentative entities providing elementary edu4 cation, child care resource and referral services, 

5 early learning opportunities, child care, and 

6 health services; and 

7 (D) other key community leaders. 

8 (2) DESIGNATING EXISTING ENTITY.—If a local 

9 government entity, Indian tribe, Regional Corpora10 tion, or Native Hawaiian entity has, before the date 

11 of enactment of this Act, a Local Council or a re12 gional entity that is comparable to the Local Council 

13 described in paragraph (1), the entity, tribe, or cor14 poration may designate the council or entity as a 

15 Local Council under this chapter, and shall be con16 sidered to have established a Local Council in com17 pliance with this subsection. 

18 (3) FUNCTIONS.—The Local Council shall be 

19 responsible for preparing and submitting the appli20 cation described in section 3260. 

21 (b) ADMINISTRATION.—

22 (1) ADMINISTRATIVE COSTS.—Not more than 7 

23 percent of the funds received by a Local Council 

24 under this chapter shall be used to pay for the ad-
457

•HR 936 IH 

1 ministrative costs of the Local Council in carrying 

2 out this chapter. 

3 (2) FISCAL AGENT.—A Local Council may des4 ignate any entity with a demonstrated capacity for 

5 administering grants, that is affected by, or con6 cerned with, early learning issues, including the 

7 State, to serve as fiscal agent for the administration 

8 of grant funds received by the Local Council under 

9 this chapter. 

10 SEC. 3262. USE OF FUNDS. 

11 Grants received under this chapter by Local Councils 

12 shall be used in accordance with this chapter to provide 

13 funds to service providers to—

14 (1) increase the number of children served in 

15 State prekindergarten education programs; 

16 (2) increase the number of Head Start pro17 grams providing full working day, full calendar year 

18 Head Start services; 

19 (3) increase the number of children served in 

20 Early Head Start programs carried out under sec21 tion 645A of the Head Start Act (42 U.S.C 9840a); 

22 (4) enhance the quality of and access to edu23 cation and comprehensive services and support serv24 ices provided through the Child Care and Develop25 ment Block Grant Act of 1990 (42 U.S.C. 9858 et 
458

•HR 936 IH 

1 seq.) to child care programs and providers, including 

2 health screening and diagnosis of children, parent 

3 involvement and parent education, nutrition services 

4 and education, staff and personnel training in early 

5 childhood development, and salary upgrading for 

6 early childhood development staff, and the develop7 ment of salary schedules for staff with varying levels 

8 of experience, expertise, and education; 

9 (5) develop linkages among early learning pro10 grams within a community and between early learn11 ing programs and health care services for young 

12 children in ways that facilitate greater access to 

13 early learning programs; 

14 (6) increase access to and quality of early learn15 ing opportunities for young children with special 

16 needs, including migratory children, children with 

17 limited English proficiency, and children with devel18 opmental delays, by facilitating coordination with 

19 other programs serving such young children; 

20 (7) improve the quality of early learning pro21 grams through professional development and train22 ing activities, increased compensation, and recruit23 ment and retention incentives for early learning pro24 viders; 
459

•HR 936 IH 

1 (8) remove ancillary barriers to early learning, 

2 including transportation difficulties and family af3 fordability of early learning programs; 

4 (9) increase access to home visitation programs 

5 that are designed to improve early learning if serv6 ices are provided by staff who are given sufficient 

7 training, and clinical and administrative supervision, 

8 by a registered nurse or a qualified early childhood 

9 professional; 

10 (10) improve coordination between localities 

11 carrying out early learning programs and persons 

12 providing early intervention services under part C of 

13 the Individuals with Disabilities Education Act (20 

14 U.S.C. 1431 et seq.); or 

15 (11) increase the number of child care providers 

16 serving families during nontraditional work time if 

17 such providers are licensed by the State. 

18 SEC. 3263. REPEAL. 

19 The Early Learning Opportunities Act (title VIII of 

20 the Departments of Labor, Health and Human Services, 

21 and Education, and Related Agencies Appropriations Act, 

22 2001) (as enacted into law by section 1(a)(1) of Public 

23 Law 106–554) is repealed. 
460

•HR 936 IH 

1 SEC. 3264. EFFECTIVE DATE. 

2 This chapter shall take effect on the first day of the 

3 first fiscal year that begins after the date of the enactment 

4 of this Act. 

5 CHAPTER 5—CHILD CARE FACILITIES 

6 FINANCING

7 SEC. 3271. SHORT TITLE. 

8 This chapter may be cited as the ‘‘Child Care Facili9 ties Financing Act’’. 

10 SEC. 3272. TECHNICAL AND FINANCIAL ASSISTANCE 

11 GRANTS. 

12 (a) DEFINITIONS.—In this section: 

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

14 care facility’’ means a center-based or home-based 

15 child care facility. 

16 (2) ELIGIBLE INTERMEDIARY.—The term ‘‘eli17 gible intermediary’’ means a private, nonprofit inter18 mediary organization that has demonstrated experi19 ence in— 

20 (A) providing technical or financial assist21 ance for the construction and renovation of 

22 physical facilities; 

23 (B) providing technical or financial assist24 ance to child care providers; and 
461

•HR 936 IH 

1 (C) securing private sources for capital fi2 nancing of child care or other low-income com3 munity development. 

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

5 recipient’’ means— 

6 (A) any existing or new center-based or 

7 home-based child care provider that provides 

8 services to eligible children under a program 

9 carried out under the Child Care and Develop10 ment Block Grant Act of 1990 (42 U.S.C. 9858 

11 et seq.), or another program serving low-income 

12 children as determined by the Secretary; and 

13 (B) any organization in the process of es14 tablishing a center-based or home-based child 

15 care program or otherwise seeking to provide 

16 child care services to children described in sub17 paragraph (A). 

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

19 the Secretary of Health and Human Services. 

20 (b) GRANT AUTHORITY.—The Secretary may award 

21 grants on a competitive basis in accordance with this sec22 tion to eligible intermediaries to assist the intermediaries 

23 in carrying out the activities described in subsection (e). 

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

25 under this section an eligible intermediary shall submit to 
462

•HR 936 IH 

1 the Secretary an application, in such form and containing 

2 such information as the Secretary may require. 

3 (d) PRIORITY.—In awarding grants under this sec4 tion the Secretary shall give a priority to applicants under 

5 subsection (c) that serve low-income areas or individuals. 

6 (e) USE OF FUNDS.—

7 (1) REVOLVING FUND.—Each eligible inter8 mediary that receives a grant under this section 

9 shall deposit the grant amount into a child care re10 volving fund established by the eligible intermediary. 

11 (2) PAYMENTS FROM FUND.—Subject to sub12 section (f), from amounts deposited into the revolv13 ing fund under paragraph (1), each eligible inter14 mediary shall provide technical and financial assist15 ance (in the form of loans, grants, investments, 

16 guarantees, interest subsidies, and other appropriate 

17 forms of assistance) to eligible recipients to pay for 

18 the Federal share of the cost of the acquisition, con19 struction, or improvement of child care facilities or 

20 equipment, or for the improvement of related man21 agement and business practices, for each such recipi22 ent. The amounts may be used solely for the purpose 

23 of providing technical or financial assistance. 

24 (3) LOAN REPAYMENTS AND INVESTMENT PRO25 CEEDS.—Any amount received by an eligible inter-
463

•HR 936 IH 

1 mediary from an eligible recipient in the form of a 

2 loan repayment or investment proceeds shall be de3 posited into the child care revolving fund of the eligi4 ble intermediary for redistribution to other eligible 

5 recipients in accordance with this section. 

6 (f) FEDERAL SHARE.—

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

8 cost described in subsection (e)(2) shall be not more 

9 than 50 percent. 

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

11 share of the cost may be provided in cash or in kind, 

12 fairly evaluated, including plant, equipment, or serv13 ices. 

14 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

15 authorized to be appropriated to carry out this section 

16 $500,000,000 for each of fiscal years 2004 through 2008. 

17 Subtitle D—Head Start Access and 

18 Improvement 

19 SEC. 3301. AUTHORIZATION OF APPROPRIATIONS. 

20 Section 639(a) of the Head Start Act (42 U.S.C. 

21 9834(a)) is amended to read as follows: 

22 ‘‘(a) There are authorized to be appropriated to carry 

23 out this subchapter—

24 ‘‘(1) $7,037,640,000 for fiscal year 2004; 

25 ‘‘(2) $7,787,640,000 for fiscal year 2005; 
464

•HR 936 IH 

1 ‘‘(3) $8,537,640,000 for fiscal year 2006; 

2 ‘‘(4) $9,537,640,000 for fiscal year 2007; 

3 ‘‘(5) $10,717,640,000 for fiscal year 2008; 

4 ‘‘(6) $11,907,640,000 for fiscal year 2009; 

5 ‘‘(7) $13,307,640,000 for fiscal year 2010; 

6 ‘‘(8) $14,967,640,000 for fiscal year 2011; 

7 ‘‘(9) $16,967,640,000 for fiscal year 2012; and 

8 ‘‘(10) $20,047,640,000 for fiscal year 2013.’’. 

9 Subtitle E—Education 

10 Improvements 

11 CHAPTER 1—INCREASING ACCESS TO 

12 QUALITY PREKINDERGARTEN PROGRAMS 

13 SEC. 3401. PREKINDERGARTEN PROGRAMS. 

14 Title V of the Elementary and Secondary Education 

15 Act of 1965 (20 U.S.C. 7201 et seq.) is amended by add16 ing at the end the following: 

17 ‘‘PART E—PREKINDERGARTEN PROGRAMS 

18 ‘‘SEC. 5701. FINDINGS. 

19 ‘‘Congress finds the following: 

20 ‘‘(1) Countless studies have shown what every 

21 parent already knows: High-quality preschool edu22 cation programs work. Such programs prepare chil23 dren to learn when they go to school, and increase 

24 the success of students throughout their lives. 
465

•HR 936 IH 

1 ‘‘(2) Children who get a high-quality prekinder2 garten education are less likely to repeat a grade 

3 level and have less need for special education in4 struction than those with no prekindergarten experi5 ence. 

6 ‘‘(3) Prekindergarten programs make a signifi7 cant difference in the lives of children from low-in8 come families. A recent study found that children in 

9 high-quality child care programs had better thinking 

10 and attention skills, better mathematics and pre11 reading skills, and fewer behavioral problems. 

12 ‘‘(4) In a study following children to age 21 

13 who received high-quality early childhood education, 

14 such children were found more likely to have en15 rolled in college, been employed, and delayed parent16 hood. 

17 ‘‘SEC. 5702. DEFINITIONS. 

18 ‘‘In this part: 

19 ‘‘(1) ELIGIBLE PREKINDERGARTEN PRO20 VIDER.—The term ‘eligible prekindergarten provider’ 

21 means— 

22 ‘‘(A) a child care program or Head Start 

23 agency under the Head Start Act (42 U.S.C. 

24 9831 et seq.) that—
466

•HR 936 IH 

1 ‘‘(i) has met applicable State licensing 

2 requirements and has obtained accredita3 tion by a national accrediting body with 

4 demonstrated experience in accrediting 

5 child care programs, prekindergarten pro6 grams, or schools; or 

7 ‘‘(ii) agrees to obtain such accredita8 tion not later than 3 years after receipt of 

9 a subgrant under this part; or 

10 ‘‘(B) a local educational agency in partner11 ship with an early childhood program, organiza12 tion, or agency that serves prekindergarten 

13 school children, that—

14 ‘‘(i) has met applicable State licensing 

15 requirements and has obtained accredita16 tion by a national accrediting body with 

17 demonstrated experience in accrediting 

18 child care programs, prekindergarten pro19 grams, or schools; or 

20 ‘‘(ii) agrees to obtain such accredita21 tion not later than 3 years after receipt of 

22 a subgrant under this part; and. 

23 ‘‘(2) PREKINDERGARTEN TEACHER.—The term 

24 ‘prekindergarten teacher’ means an individual who 
467

•HR 936 IH 

1 has, or is working toward, a bachelor of arts degree 

2 in early childhood development. 

3 ‘‘(3) PREKINDERGARTEN PROGRAM.—The term 

4 ‘prekindergarten program’ means a program serving 

5 children who are 3, 4, or 5 years old that supports 

6 the children’s cognitive, social, emotional, and phys7 ical development and helps prepare the children for 

8 the transition to kindergarten. 

9 ‘‘SEC. 5703. PROGRAM AUTHORIZED. 

10 ‘‘(a) IN GENERAL.—From amounts made available 

11 under section 5707, the Secretary may provide grants to 

12 States with approved applications under subsection (b)(2) 

13 for the purpose of enabling the States to award subgrants 

14 to eligible prekindergarten providers to establish, enhance, 

15 or expand prekindergarten programs. 

16 ‘‘(b) STATE AGENCY.—

17 ‘‘(1) IN GENERAL.—A State desiring a grant 

18 under this part shall designate a State agency to ad19 minister the grant. 

20 ‘‘(2) APPLICATION.— 

21 ‘‘(A) IN GENERAL.—With respect to a 

22 State desiring a grant under this part, the 

23 State agency designated under paragraph (1) 

24 shall submit an application to the Secretary at 
468

•HR 936 IH 

1 such time, in such manner, and containing such 

2 information as the Secretary may require. 

3 ‘‘(B) CONTENTS.—The application sub4 mitted under subparagraph (A) shall include—

5 ‘‘(i) an assurance that the State will 

6 provide non-Federal matching funds, for 

7 carrying out the prekindergarten programs 

8 to be funded by a grant under this part, in 

9 an amount equal to not less than 20 per10 cent of the grant award; and 

11 ‘‘(ii) a description of—

12 ‘‘(I) how grant funds will be used 

13 to expand or enhance existing efforts 

14 across the State in providing access to 

15 high-quality prekindergarten pro16 grams; 

17 ‘‘(II) how the State will collabo18 rate with local child care agencies and 

19 councils, including local child care re20 source and referral agencies; 

21 ‘‘(III) how grant funds will be 

22 used to supplement and not supplant 

23 existing Federal, State, local and pri24 vate funds used for prekindergarten 

25 programs; 
469

•HR 936 IH 

1 ‘‘(IV) how the State will ensure 

2 that grant funds are provided to a 

3 range of types of eligible prekinder4 garten providers; 

5 ‘‘(V) how the State will help eli6 gible prekindergarten providers at7 tract and retain qualified prekinder8 garten teachers; 

9 ‘‘(VI) how the State will identify 

10 eligible prekindergarten providers and 

11 identify children to receive prekinder12 garten education; and 

13 ‘‘(VII) how the State will give 

14 priority in awarding subgrants under 

15 paragraph (3)(B) to full-time pre16 kindergarten programs, including the 

17 expansion of existing part-time pro18 grams into full-time programs. 

19 ‘‘(3) DUTIES.—The State agency designated 

20 under paragraph (1) shall—

21 ‘‘(A) receive and administer grant funds 

22 received under this part; 

23 ‘‘(B) award subgrants, from such grant 

24 funds received, to eligible prekindergarten pro25 viders to carry out section 5705; and 
470

•HR 936 IH 

1 ‘‘(C) conduct evaluations of prekinder2 garten programs carried out by eligible pre3 kindergarten providers that receive subgrants 

4 under subparagraph (B). 

5 ‘‘SEC. 5704. LOCAL APPLICATIONS. 

6 ‘‘(a) IN GENERAL.—An eligible prekindergarten pro7 vider that desires to receive a subgrant under this part 

8 shall submit an application to the appropriate State agen9 cy designated under section 5703(b)(1) at such time, in 

10 such manner, and containing such information as such 

11 State agency may reasonably require. 

12 ‘‘(b) CONTENT.—An application submitted under 

13 subsection (a), at a minimum, shall—

14 ‘‘(1) demonstrate a need for the establishment, 

15 enhancement, or expansion of a prekindergarten pro16 gram; 

17 ‘‘(2) describe how the eligible prekindergarten 

18 provider will collaborate with local early childhood 

19 councils and agencies; 

20 ‘‘(3) provide an assurance that each individual 

21 hired as a teacher by the eligible prekindergarten 

22 provider for the prekindergarten program is quali23 fied as a prekindergarten teacher; 

24 ‘‘(4) provide an assurance that the ratio of 

25 teacher or child development specialist to children at 
471

•HR 936 IH 

1 each prekindergarten program assisted under this 

2 part and administered by the provider will not ex3 ceed 1–10; 

4 ‘‘(5) provide a description of how funds will be 

5 used to coordinate with and enhance, but not dupli6 cate or supplant, Federal, State, and local funding 

7 for early childhood programs serving 3-, 4-, or 5-

8 year old children in the community; 

9 ‘‘(6) describe how the eligible prekindergarten 

10 provider will use a collaborative process with organi11 zations and members of the community that have an 

12 interest and experience in early childhood develop13 ment and education to establish, enhance, or expand 

14 prekindergarten programs; 

15 ‘‘(7) describe how the prekindergarten program 

16 to be funded under the subgrant will meet the di17 verse needs of children, ages 3 through 5, in the 

18 community who are not enrolled in kindergarten, in19 cluding children with disabilities or whose native lan20 guage is other than English;

21 ‘‘(8) describe how the eligible prekindergarten 

22 provider will collaborate with local schools to ensure 

23 a smooth transition for participating students from 

24 prekindergarten to kindergarten and early elemen25 tary education; 
472

•HR 936 IH 

1 ‘‘(9) describe the results the prekindergarten 

2 program is intended to achieve, and what tools will 

3 be used to measure the progress in attaining those 

4 results; and 

5 ‘‘(10) provide an assurance that none of the 

6 funds received under this part will be used for the 

7 construction or renovation of existing or new facili8 ties (except for minor remodeling needed to accom9 plish the purposes of this part). 

10 ‘‘SEC. 5705. LOCAL USES OF FUNDS. 

11 ‘‘(a) IN GENERAL.—An eligible prekindergarten pro12 vider that receives a subgrant under this part shall use 

13 funds received under such subgrant to establish, enhance, 

14 or expand prekindergarten programs for children who are 

15 not enrolled in kindergarten, including—

16 ‘‘(1) providing a program that focuses on the 

17 developmental needs of participating children, in18 cluding their social, cognitive, physical, and lan19 guage-development needs, and uses research-based 

20 approaches that build on competencies that lead to 

21 school success, particularly in language and literacy 

22 development and in reading; 

23 ‘‘(2) paying the costs of purchasing educational 

24 equipment, including educational materials, nec25 essary to provide a high-quality program; 
473

•HR 936 IH 

1 ‘‘(3) pursuing accreditation by a national ac2 creditation body with demonstrated experience in ac3 creditation of prekindergarten programs, to be ob4 tained not later than 3 years after the date on which 

5 funds are first received under this part; 

6 ‘‘(4) helping prekindergarten teachers pursue 

7 and attain the credential and degree requirements 

8 established by the State, and providing a stipend for 

9 attaining educational or professional development; 

10 and 

11 ‘‘(5) meeting the needs of working parents. 

12 ‘‘(b) PERMISSIBLE USES OF FUNDS.—An eligible 

13 prekindergarten provider that receives a subgrant under 

14 this part may use funds received under such subgrant to 

15 pay for transporting students to and from a prekinder16 garten program. 

17 ‘‘SEC. 5706. REPORTING. 

18 ‘‘(a) LOCAL REPORTS.—Each eligible prekinder19 garten provider that receives a subgrant under this part 

20 shall submit to the State agency designated under section 

21 5703(b)(1), not later than 18 months after the date on 

22 which the provider first receives such subgrant, a report 

23 relating to the period for which subgrant funds were re24 ceived, containing information on—
474

•HR 936 IH 

1 ‘‘(1) the number and ages of children served by 

2 the eligible prekindergarten provider, including in3 formation disaggregated by family income, race, dis4 ability, and native language; 

5 ‘‘(2) the number of hours of service per day and 

6 number of months of service provided under the pre7 kindergarten program; 

8 ‘‘(3) the total number of prekindergarten teach9 ers employed under the prekindergarten program; 

10 and 

11 ‘‘(4) other sources of Federal, State, local, and 

12 private funds used to operate the prekindergarten 

13 program for which subgrant funds were received 

14 under this part. 

15 ‘‘(b) REPORT TO CONGRESS.—The Secretary shall 

16 submit an annual report to Congress that evaluates the 

17 prekindergarten programs established, enhanced, or ex18 panded under this part. 

19 ‘‘SEC. 5707. AUTHORIZATION OF APPROPRIATIONS. 

20 ‘‘There are authorized to be appropriated to carry out 

21 this part $2,000,000,000 for fiscal year 2004, 

22 $4,000,000,000 for fiscal year 2005, $5,000,000,000 for 

23 fiscal year 2006, $8,000,000,000 for fiscal year 2007, and 

24 $10,000,000,000 for fiscal year 2008.’’. 
475

•HR 936 IH 

1 CHAPTER 2—IMPROVING THE 

2 AVAILABILITY OF BOOKS 

3 SEC. 3411. SHORT TITLE. 

4 This chapter may be cited as the ‘‘Book Stamp Act’’. 

5 SEC. 3412. FINDINGS. 

6 Congress finds the following: 

7 (1) Literacy is fundamental to all learning. 

8 (2) Between 40 and 60 percent of the Nation’s 

9 children do not read at grade level, particularly chil10 dren in families and school districts that are chal11 lenged by significant financial or social instability. 

12 (3) Increased investments in child literacy are 

13 needed to improve opportunities for children and the 

14 efficacy of the Nation’s education investments. 

15 (4) Increasing access to books in the home is 

16 an important means of improving child literacy, 

17 which can be accomplished nationally at modest cost. 

18 (5) Effective channels for book distribution al19 ready exist through child care providers. 

20 SEC. 3413. DEFINITIONS. 

21 In this chapter: 

22 (1) EARLY LEARNING PROGRAM.—The term 

23 ‘‘early learning’’, used with respect to a program, 

24 means a program of activities designed to facilitate 

25 development of cognitive, language, motor, and so-
476

•HR 936 IH 

1 cial-emotional skills in children under age 6 as a 

2 means of enabling the children to enter school ready 

3 to learn, such as a Head Start or Early Head Start 

4 program carried out under the Head Start Act (42 

5 U.S.C. 9831 et seq.), or a State prekindergarten 

6 program. 

7 (2) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of Health and Human Services. 

9 (3) STATE.—The term ‘‘State’’ means the 50 

10 States, the District of Columbia, the Commonwealth 

11 of Puerto Rico, Guam, the United States Virgin Is12 lands, American Samoa, and the Commonwealth of 

13 the Northern Mariana Islands. 

14 (4) STATE AGENCY.—The term ‘‘State agency’’ 

15 means an agency designated under section 658D of 

16 the Child Care and Development Block Grant Act of 

17 1990 (42 U.S.C. 9858b). 

18 SEC. 3414. GRANTS TO STATE AGENCIES. 

19 (a) ESTABLISHMENT OF PROGRAM.—The Secretary 

20 shall establish and carry out a program to promote child 

21 literacy and improve children’s access to books at home 

22 and in early learning and other child care programs, by 

23 making books available through early learning and other 

24 child care programs. 

25 (b) GRANTS.—
477

•HR 936 IH 

1 (1) IN GENERAL.—In carrying out the program, 

2 the Secretary shall make grants to State agencies 

3 from allotments determined under paragraph (2).

4 (2) ALLOTMENTS.—For each fiscal year, the 

5 Secretary shall allot to each State an amount that 

6 bears the same ratio to the total of the available 

7 funds for the fiscal year as the amount the State re8 ceives under section 658O(b) of the Child Care and 

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

10 9858m(b)) for the fiscal year bears to the total 

11 amount received by all States under that section for 

12 the fiscal year. 

13 (c) APPLICATIONS.—To be eligible to receive an allot14 ment under this section, a State shall submit an applica15 tion to the Secretary at such time, in such manner, and 

16 containing such information as the Secretary may require. 

17 (d) ACCOUNTABILITY.—The provisions of sections 

18 658I(b) and 658K(b) of the Child Care and Development 

19 Block Grant Act of 1990 (42 U.S.C. 9858g(b), 9858i(b)) 

20 shall apply to States receiving grants under this chapter, 

21 except that references in those sections—

22 (1) to a chapter shall be considered to be ref23 erences to this chapter; and 
478

•HR 936 IH 

1 (2) to a plan or application shall be considered 

2 to be references to an application submitted under 

3 subsection (c). 

4 (e) DEFINITION.—In this section, the term ‘‘available 

5 funds’’, used with respect to a fiscal year, means the total 

6 of—

7 (1) the funds made available under section 

8 417(c)(1) of title 39, United States Code for the fis9 cal year; and 

10 (2) the amounts appropriated under section 

11 3419 for the fiscal year. 

12 SEC. 3415. CONTRACTS TO CHILD CARE RESOURCE AND

13 REFERRAL AGENCIES. 

14 A State agency that receives a grant under section 

15 3414 shall use funds made available through the grant 

16 to enter into contracts with local child care resource and 

17 referral agencies to carry out the activities described in 

18 section 3416. The State agency may reserve not more than 

19 3 percent of the funds made available through the grant 

20 to support a public awareness campaign relating to the 

21 activities. 

22 SEC. 3416. USE OF FUNDS. 

23 (a) ACTIVITIES.—

24 (1) BOOK PAYMENTS FOR ELIGIBLE PRO25 VIDERS.—A child care resource and referral agency 
479

•HR 936 IH 

1 that receives a contract under section 3415 shall use 

2 the funds made available through the grant to pro3 vide payments for eligible early learning program 

4 and other child care providers, on the basis of local 

5 needs, to enable the providers to make books avail6 able, to promote child literacy and improve chil7 dren’s access to books at home and in early learning 

8 and other child care programs.

9 (2) ELIGIBLE PROVIDERS.—To be eligible to re10 ceive a payment under paragraph (1), a provider 

11 shall—

12 (A)(i) be a center-based child care pro13 vider, a group home child care provider, or a 

14 family child care provider, described in section 

15 658P(5)(A) of the Child Care and Development 

16 Block Grant Act of 1990 (42 U.S.C. 

17 9858n(5)(A)); or 

18 (ii) be a Head Start agency designated 

19 under section 641 of the Head Start Act (42 

20 U.S.C. 9836), an entity that receives assistance 

21 under section 645A of such Act (42 U.S.C. 

22 9840a) to carry out an Early Head Start pro23 gram or another provider of an early learning 

24 program; and 
480

•HR 936 IH 

1 (B) provide services in an area where chil2 dren face high risks of literacy difficulties, as 

3 defined by the Secretary. 

4 (b) RESPONSIBILITIES.—A child care resource and 

5 referral agency that receives a contract under section 3415 

6 to provide payments to eligible providers shall— 

7 (1) consult with local individuals and organiza8 tions concerned with early literacy (including parents 

9 and organizations carrying out the Reach Out and 

10 Read, First Book, and Reading Is Fundamental pro11 grams) regarding local book distribution needs; 

12 (2) make reasonable efforts to learn public de13 mographic and other information about local fami14 lies and child literacy programs carried out by the 

15 eligible providers, as needed to inform the agency’s 

16 decisions as the agency carries out the contract; 

17 (3) coordinate local orders of the books made 

18 available under this chapter; 

19 (4) distribute, to each eligible provider that re20 ceives a payment under this chapter, not fewer than 

21 1 book every 6 months for each child served by the 

22 provider for more than 3 of the preceding 6 months; 

23 (5) use not more than 5 percent of the funds 

24 made available through the contract to provide train25 ing and technical assistance to the eligible providers 
481

•HR 936 IH 

1 on the effective use of books with young children at 

2 different stages of development; and 

3 (6) be a training resource for eligible providers 

4 that want to offer parent workshops on developing 

5 reading readiness. 

6 (c) DISCOUNTS.—

7 (1) IN GENERAL.—Federal funds made avail8 able under this chapter for the purchase of books 

9 may only be used to purchase books on the same 

10 terms as are customarily available in the book indus11 try to entities carrying out nonprofit bulk book pur12 chase and distribution programs. 

13 (2) TERMS.—An entity offering books for pur14 chase under this chapter shall be presumed to have 

15 met the requirements of paragraph (1), absent con16 trary evidence, if the terms include a discount of 43 

17 percent off the catalogue price of the books, with no 

18 additional charge for shipping and handling of the 

19 books. 

20 (d) ADMINISTRATION.—The child care resource and 

21 referral agency may not use more than 6 percent of the 

22 funds made available through the contract for administra23 tive costs. 
482

•HR 936 IH 

1 SEC. 3417. REPORT TO CONGRESS. 

2 Not later than 2 years of the date of enactment of 

3 this chapter, the Secretary shall prepare and submit to 

4 Congress a report on the implementation of the activities 

5 carried out under this chapter. 

6 SEC. 3418. SPECIAL POSTAGE STAMPS FOR CHILD LIT7 ERACY. 

8 Chapter 4 of title 39, United States Code is amended 

9 by adding at the end the following: 

10 ‘‘§ 417. Special postage stamps for child literacy 

11 ‘‘(a) In order to afford the public a convenient way 

12 to contribute to funding for child literacy, the Postal Serv13 ice shall establish a special rate of postage for first-class 

14 mail under this section. The stamps that bear the special 

15 rate of postage shall promote childhood literacy and shall, 

16 to the extent practicable, contain an image relating to a 

17 character in a children’s book or cartoon. 

18 ‘‘(b)(1) The rate of postage established under this 

19 section—

20 ‘‘(A) shall be equal to the regular first-class 

21 rate of postage, plus a differential of not to exceed 

22 25 percent; 

23 ‘‘(B) shall be set by the Governors in accord24 ance with such procedures as the Governors shall by 

25 regulation prescribe (in lieu of the procedures de26 scribed in chapter 36); and 
483

•HR 936 IH 

1 ‘‘(C) shall be offered as an alternative to the 

2 regular first-class rate of postage. 

3 ‘‘(2) The use of the special rate of postage established 

4 under this section shall be voluntary on the part of postal 

5 patrons. 

6 ‘‘(c)(1) Of the amounts becoming available for child 

7 literacy pursuant to this section, the Postal Service shall 

8 pay 100 percent to the Department of Health and Human 

9 Services. 

10 ‘‘(2) Payments made under this subsection to the De11 partment shall be made under such arrangements as the 

12 Postal Service shall by mutual agreement with such De13 partment establish in order to carry out the objectives of 

14 this section, except that, under those arrangements, pay15 ments to such agency shall be made at least twice a year. 

16 ‘‘(3) In this section, the term ‘amounts becoming 

17 available for child literacy pursuant to this section’ 

18 means—

19 ‘‘(A) the total amounts received by the Postal 

20 Service that the Postal Service would not have re21 ceived but for the enactment of this section; reduced 

22 by 

23 ‘‘(B) an amount sufficient to cover reasonable 

24 costs incurred by the Postal Service in carrying out 

25 this section, including costs attributable to the print-
484

•HR 936 IH 

1 ing, sale, and distribution of stamps under this sec2 tion, 

3 as determined by the Postal Service under regulations that 

4 the Postal Service shall prescribe. 

5 ‘‘(d) It is the sense of Congress that nothing in this 

6 section should—

7 ‘‘(1) directly or indirectly cause a net decrease 

8 in total funds received by the Department of Health 

9 and Human Services, or any other agency of the 

10 Government (or any component or program of the 

11 Government), below the level that would otherwise 

12 have been received but for the enactment of this sec13 tion; or 

14 ‘‘(2) affect regular first-class rates of postage 

15 or any other regular rates of postage. 

16 ‘‘(e) Special postage stamps made available under 

17 this section shall be made available to the public beginning 

18 on such date as the Postal Service shall by regulation pre19 scribe, but in no event later than 12 months after the date 

20 of enactment of this section. 

21 ‘‘(f) The Postmaster General shall include in each re22 port provided under section 2402, with respect to any pe23 riod during any portion of which this section is in effect, 

24 information concerning the operation of this section, ex-
485

•HR 936 IH 

1 cept that, at a minimum, each report shall include infor2 mation on—

3 ‘‘(1) the total amounts described in subsection 

4 (c)(3)(A) that were received by the Postal Service 

5 during the period covered by such report; and 

6 ‘‘(2) of the amounts described in paragraph (1), 

7 how much (in the aggregate and by category) was 

8 required for the purposes described in subsection 

9 (c)(3)(B). 

10 ‘‘(g) This section shall cease to be effective at the 

11 end of the 2-year period beginning on the date on which 

12 special postage stamps made available under this section 

13 are first made available to the public.’’. 

14 SEC. 3419. AUTHORIZATION OF APPROPRIATIONS. 

15 There is authorized to be appropriated to carry out 

16 this chapter $50,000,000 for each of fiscal years 2004 

17 through 2008. 
486

•HR 936 IH 

1 CHAPTER 3—QUALITY TEACHING AND 

2 LEADERSHIP 

3 Subchapter A—Amendment to Title II of the 

4 Elementary and Secondary Education Act 

5 of 1965

6 SEC. 3421. AMENDMENTS TO TITLE II. 

7 Title II of the Elementary and Secondary Education 

8 Act of 1965 (20 U.S.C. 6601 et seq.) is amended by add9 ing at the end the following: 

10 ‘‘PART E—CLASS SIZE REDUCTION 

11 ‘‘SEC. 2501. GRANT PROGRAM. 

12 ‘‘(a) PURPOSES.—The purposes of this section are—

13 ‘‘(1) to reduce class size through the use of 

14 highly qualified teachers; 

15 ‘‘(2) to assist States and local educational agen16 cies in recruiting, hiring, and training 100,000 

17 teachers in order to reduce class sizes nationally, in 

18 kindergarten through grade 3, to an average of 18 

19 students per regular classroom; and 

20 ‘‘(3) to improve teaching in those grades so 

21 that all students can learn to read independently 

22 and well by the end of the 3d grade. 

23 ‘‘(b) ALLOTMENT TO STATES.—

24 ‘‘(1) RESERVATION.—From the amount made 

25 available to carry out this part for a fiscal year, the 
487

•HR 936 IH 

1 Secretary shall reserve not more than 1 percent for 

2 the Secretary of the Interior (on behalf of the Bu3 reau of Indian Affairs) and the outlying areas for 

4 activities carried out in accordance with this section. 

5 ‘‘(2) STATE ALLOTMENTS.—

6 ‘‘(A) HOLD HARMLESS.—

7 ‘‘(i) IN GENERAL.—Subject to sub8 paragraph (B) and clause (ii), from the 

9 amount made available to carry out this 

10 part for a fiscal year and not reserved 

11 under paragraph (1), the Secretary shall 

12 allot to each State—

13 ‘‘(I) for the first fiscal year for 

14 which allotments are made under this 

15 subparagraph, an amount equal to the 

16 amount that such State received 

17 under section 306 of the Department 

18 of Education Appropriations Act, 

19 2001; and 

20 ‘‘(II) for each subsequent fiscal 

21 year for which allotments are made 

22 under this subparagraph, an amount 

23 equal to the amount that such State 

24 received for the preceding fiscal year 

25 under this section. 
488

•HR 936 IH 

1 ‘‘(ii) RATABLE REDUCTION.—If the 

2 amount made available to carry out this 

3 part for a fiscal year and not reserved 

4 under paragraph (1) is insufficient to pay 

5 the full amounts that all States are eligible 

6 to receive under clause (i) for such fiscal 

7 year, the Secretary shall ratably reduce 

8 such amounts for such fiscal year. 

9 ‘‘(B) ALLOTMENT OF ADDITIONAL

10 FUNDS.—

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

12 (ii), for any fiscal year for which the 

13 amount made available to carry out this 

14 part and not reserved under paragraph (1) 

15 exceeds the amount needed to pay the full 

16 amounts that all States are eligible to re17 ceive under subparagraph (A) for such fis18 cal year, the Secretary shall allot to each 

19 State the percentage of the excess amount 

20 that is the greater of—

21 ‘‘(I) the percentage that such 

22 State received for the preceding fiscal 

23 year of the total amount made avail24 able to the States under section 1122; 

25 or 
489

•HR 936 IH 

1 ‘‘(II)(aa) for the first of the fis2 cal years for which allotments are 

3 made under this subparagraph (re4 ferred to individually in this subclause 

5 as an ‘allotment year’), the percentage 

6 that such State received for the pre7 ceding fiscal year of the total amount 

8 made available to the States under 

9 section 5111(a); or 

10 ‘‘(bb) for each subsequent allot11 ment year, the percentage that such 

12 State received for the preceding allot13 ment year of the total amount made 

14 available to the States under this sec15 tion. 

16 ‘‘(ii) RATABLE REDUCTIONS.—If the 

17 excess amount for a fiscal year is insuffi18 cient to pay the full amounts that all 

19 States are eligible to receive under clause 

20 (i) for such fiscal year, the Secretary shall 

21 ratably reduce such amounts for such fis22 cal year. 

23 ‘‘(C) DEFINITION.—In this paragraph, the 

24 term ‘State’ does not include an outlying area. 
490

•HR 936 IH 

1 ‘‘(c) ALLOCATION TO LOCAL EDUCATIONAL AGEN2 CIES.—

3 ‘‘(1) ALLOCATION.—Each State that receives 

4 funds under this section shall allocate 100 percent 

5 of those funds to local educational agencies, of 

6 which—

7 ‘‘(A) 80 percent shall be allocated to those 

8 local educational agencies in proportion to the 

9 number of children, age 5 through 17, from 

10 families with incomes below the poverty line (as 

11 defined by the Office of Management and 

12 Budget and revised annually in accordance with 

13 section 673(2) of the Community Services 

14 Block Grant Act (42 U.S.C. 9902(2))) applica15 ble to a family of the size involved, who reside 

16 in the school district served by that local edu17 cational agency for the most recent fiscal year 

18 for which satisfactory data are available, com19 pared to the number of those children who re20 side in the school districts served by all the 

21 local educational agencies in the State for that 

22 fiscal year; and 

23 ‘‘(B) 20 percent shall be allocated to those 

24 local educational agencies in accordance with 

25 the relative enrollments of children, age 5 
491

•HR 936 IH 

1 through 17, in public and private nonprofit ele2 mentary schools and secondary schools within 

3 the areas served by those agencies. 

4 ‘‘(2) EXCEPTION.—Notwithstanding paragraph 

5 (1) and subsection (d)(2)(B), if the award to a local 

6 educational agency under this section is less than 

7 the starting salary for a new highly qualified teacher 

8 for a school served by that agency, that agency may 

9 use funds made available under this section to—

10 ‘‘(A) help pay the salary of a full- or part11 time highly qualified teacher hired to reduce 

12 class size, which may be done in combination 

13 with the expenditure of other Federal, State, or 

14 local funds; or 

15 ‘‘(B) pay for activities described in sub16 section (d)(2)(A)(iii) that may be related to 

17 teaching in smaller classes. 

18 ‘‘(d) USE OF FUNDS.—

19 ‘‘(1) MANDATORY USES.—Each local edu20 cational agency that receives funds under this sec21 tion shall use those funds to carry out effective ap22 proaches to reducing class size through use of highly 

23 qualified teachers to improve educational achieve24 ment for both regular and special needs children, 

25 with particular consideration given to reducing class 
492

•HR 936 IH 

1 size in the early elementary grades for which some 

2 research has shown class size reduction is most ef3 fective. 

4 ‘‘(2) PERMISSIBLE USES.—

5 ‘‘(A) IN GENERAL.—Each such local edu6 cational agency may use funds made available 

7 under this section for—

8 ‘‘(i) recruiting (including through the 

9 use of signing bonuses and other financial 

10 incentives), hiring, and training highly 

11 qualified regular and special education 

12 teachers (which may include hiring special 

13 education teachers to team-teach with reg14 ular teachers in classrooms that contain 

15 both children with disabilities and non16 disabled children) and teachers of special 

17 needs children; 

18 ‘‘(ii) testing new teachers for aca19 demic content knowledge, and to meet 

20 State certification or licensing require21 ments that are consistent with title II of 

22 the Higher Education Act of 1965; and 

23 ‘‘(iii) providing professional develop24 ment (which may include such activities as 

25 promoting retention and mentoring) for 
493

•HR 936 IH 

1 teachers, including special education teach2 ers and teachers of special needs children, 

3 in order to meet the goal of ensuring that 

4 all teachers have the general knowledge, 

5 teaching skills, and subject matter knowl6 edge necessary to teach effectively in the 

7 content areas in which the teachers teach, 

8 consistent with title II of the Higher Edu9 cation Act of 1965. 

10 ‘‘(B) LIMITATION ON TESTING AND PRO11 FESSIONAL DEVELOPMENT.—

12 ‘‘(i) IN GENERAL.—Except as pro13 vided in clause (ii), a local educational 

14 agency may use not more than a total of 

15 25 percent of the funds received by the 

16 agency under this section for activities de17 scribed in clauses (ii) and (iii) of subpara18 graph (A). 

19 ‘‘(ii) SPECIAL RULE.—A local edu20 cational agency may use more than 25 per21 cent of the funds the agency receives under 

22 this section for activities described in sub23 paragraph (A)(iii) for the purpose of help24 ing teachers who are not yet highly quali25 fied in attaining full qualification if 10 per-
494

•HR 936 IH 

1 cent or more of the elementary school 

2 classes in a school are taught by individ3 uals who are not highly qualified teachers 

4 or the State educational agency has waived 

5 State certification or licensing require6 ments for 10 percent or more of such 

7 teachers. 

8 ‘‘(C) USE OF FUNDS BY AGENCIES THAT

9 HAVE REDUCED CLASS SIZE.—Notwithstanding 

10 subparagraph (B), a local educational agency 

11 that has already reduced class size in the early 

12 elementary grades to 18 or fewer children (or 

13 has already reduced class size to a State or 

14 local class size reduction goal that was in effect 

15 on November 28, 1999, if that goal is 20 or 

16 fewer children) may use funds received under 

17 this section—

18 ‘‘(i) to make further class size reduc19 tions in kindergarten through 3d grade; 

20 ‘‘(ii) to reduce class size in other 

21 grades; or 

22 ‘‘(iii) to carry out activities to improve 

23 teacher quality, including professional de24 velopment. 
495

•HR 936 IH 

1 ‘‘(3) SUPPLEMENT, NOT SUPPLANT.—Each 

2 such agency shall use funds made available under 

3 this section only to supplement, and not to supplant, 

4 State and local funds that, in the absence of funds 

5 made available under this section, would otherwise 

6 be expended for activities described in this section. 

7 ‘‘(4) LIMITATION ON USE FOR SALARIES AND

8 BENEFITS.—

9 ‘‘(A) IN GENERAL.—Except as provided in 

10 subparagraph (B), no funds made available 

11 under this section may be used to increase the 

12 salaries of, or provide benefits (other than par13 ticipation in professional development and en14 richment programs) to, teachers who are not 

15 hired under this section. 

16 ‘‘(B) EXCEPTION.—Funds made available 

17 under this section may be used to pay the sala18 ries of teachers hired under section 306 of the 

19 Department of Education Appropriations Act, 

20 2001 or section 2123(a)(2). 

21 ‘‘(e) REPORTS.—

22 ‘‘(1) STATE ACTIVITIES.—Each State receiving 

23 funds under this section shall prepare and submit to 

24 the Secretary a biennial report on activities carried 

25 out in the State under this section that provides the 
496

•HR 936 IH 

1 information described in section 5122(b) with re2 spect to the activities. 

3 ‘‘(2) PROGRESS CONCERNING CLASS SIZE AND

4 QUALIFIED TEACHERS.—Each State and local edu5 cational agency receiving funds under this section 

6 shall annually report to parents and the public, in 

7 numeric form as compared to the previous year, 

8 on—

9 ‘‘(A) the agency’s progress in reducing 

10 class size, and increasing the percentage of 

11 classes in core academic areas taught by highly 

12 qualified teachers; and 

13 ‘‘(B) the impact that hiring additional 

14 highly qualified teachers and reducing class 

15 size, has had, if any, on increasing student aca16 demic achievement. 

17 ‘‘(f) PRIVATE SCHOOLS.—If a local educational agen18 cy uses funds made available under this section for profes19 sional development activities, the agency shall ensure the 

20 equitable participation of private nonprofit elementary 

21 schools and secondary schools in such activities in accord22 ance with section 5142. Section 5142 shall not apply to 

23 other activities carried out under this section. 

24 ‘‘(g) ADMINISTRATIVE EXPENSES.—A local edu25 cational agency that receives funds under this section may 
497

•HR 936 IH 

1 use not more than 3 percent of such funds for local admin2 istrative costs. 

3 ‘‘(h) APPLICATION.—Each local educational agency 

4 that desires to receive funds under this section shall sub5 mit an application to the State educational agency at such 

6 time, in such manner, and containing such information as 

7 the State educational agency may require. Each such ap8 plication shall include a description of the agency’s pro9 gram to reduce class size by hiring additional highly quali10 fied teachers. 

11 ‘‘(i) CERTIFICATION, LICENSING, AND COM12 PETENCY.—No funds made available under this section 

13 may be used to pay the salary of any teacher unless such 

14 teacher is highly qualified. 

15 ‘‘(j) DEFINITION.—In this section, the term ‘cer16 tified’ includes certification through State or local alter17 native routes. 

18 ‘‘SEC. 2502. AUTHORIZATION OF APPROPRIATIONS. 

19 ‘‘There are authorized to be appropriated to carry out 

20 this part, $2,537,000,000 for fiscal year 2004, 

21 $3,452,000,000 for fiscal year 2005, $4,336,000,000 for 

22 fiscal year 2006, and $5,281,000,000 for each of fiscal 

23 years 2007 and 2008.
498

•HR 936 IH 

1 ‘‘PART F—PRINCIPAL LEADERSHIP 

2 DEVELOPMENT 

3 ‘‘SEC. 2601. PROFESSIONAL DEVELOPMENT FOR PRIN4 CIPALS AS LEADERS OF SCHOOL REFORM. 

5 ‘‘(a) COMPETITIVE GRANTS.—The Secretary is au6 thorized to award, on a competitive basis, grants to eligible 

7 partnerships—

8 ‘‘(1) consisting of—

9 ‘‘(A) one or more institutions of higher 

10 education that provide professional development 

11 for principals and other school administrators; 

12 and 

13 ‘‘(B) one or more local educational agen14 cies; and 

15 ‘‘(2) that may include other entities, agencies, 

16 and organizations, such as a State educational agen17 cy, a State agency for higher education, and profes18 sional organizations for principals, administrators, 

19 teachers, and parents. 

20 ‘‘(b) APPLICATION.—An eligible partnership that de21 sires to receive a grant under this section shall submit an 

22 application to the Secretary at such time, in such form, 

23 and containing such information as the Secretary may re24 quire. Each such application shall include—

25 ‘‘(1) a description of the activities the partner26 ship will carry out to meet the purpose of this part; 
499

•HR 936 IH 

1 ‘‘(2) a description of how those activities will 

2 build on and be coordinated with other professional 

3 development activities, including activities under this 

4 title and title II of the Higher Education Act of 

5 1965; 

6 ‘‘(3) a description of how principals, teachers, 

7 and other interested parties were involved in devel8 oping the application and will be involved in plan9 ning and carrying out the activities under this sec10 tion; and 

11 ‘‘(4) a description of how the professional devel12 opment will result in the acquisition of a license, de13 gree, or continuing education unit. 

14 ‘‘(c) USE OF FUNDS.—An eligible partnership that 

15 receives a grant under this section shall use the grant 

16 funds to provide professional development to principals 

17 and other school administrators to enable them to be effec18 tive school leaders and prepare all students to achieve to 

19 challenging State content and student performance stand20 ards, including professional development on—

21 ‘‘(1) comprehensive school reform; 

22 ‘‘(2) leadership skills; 

23 ‘‘(3) recruitment, assignment, retention, and 

24 evaluation of teacher and other instructional staff; 

25 ‘‘(4) State content standards;
500

•HR 936 IH 

1 ‘‘(5) effective instructional practice; 

2 ‘‘(6) using smaller classes effectively; and 

3 ‘‘(7) parental and community involvement. 

4 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated to carry out this part, 

6 $100,000,000 for fiscal year 2004, and such sums as may 

7 be necessary for each of the 4 succeeding fiscal years.’’.

8 Subchapter B—National Board Certification 

9 Program 

10 SEC. 3431. PURPOSE. 

11 It is the purpose of this subchapter to assist 105,000 

12 elementary school or secondary school teachers in becom13 ing board certified by the year 2008. 

14 SEC. 3432. GRANTS TO EXPAND PARTICIPATION IN THE NA15 TIONAL BOARD CERTIFICATION PROGRAM. 

16 (a) DEFINITIONS.—The terms used in this section 

17 have the meanings given the terms in section 9101 of the 

18 Elementary and Secondary Education Act of 1965 (20 

19 U.S.C. 7801). 

20 (b) GRANTS AUTHORIZED.—From amounts appro21 priated under subsection (f), the Secretary shall award 

22 grants to States to enable such States to provide subsidies 

23 to elementary school and secondary school teachers who 

24 enroll in the certification program of the National Board 

25 for Professional Teaching Standards. 
501

•HR 936 IH 

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

2 under subsection (b), a State shall prepare and submit to 

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

4 and containing such information as the Secretary may re5 quire. 

6 (d) AMOUNT OF GRANT.—The amount of a grant 

7 awarded to a State under subsection (b) shall be deter8 mined by the Secretary. 

9 (e) USE OF FUNDS.—

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

11 received under a grant under this section to provide 

12 a subsidy to an eligible teacher who enrolls and com13 pletes the teaching certification program of the Na14 tional Board for Professional Teaching Standards. 

15 (2) ELIGIBILITY.—

16 (A) IN GENERAL.—To be eligible to receive 

17 a subsidy under this section an individual 

18 shall—

19 (i) be a teacher in an elementary 

20 school or secondary school, served by a 

21 local educational agency that meets the eli22 gibility requirements described in subpara23 graph (B), in the State involved; 

24 (ii) prepare and submit to the State 

25 an application at such time, in such man-
502

•HR 936 IH 

1 ner, and containing such information as 

2 the State may require; and 

3 (iii) certify to the State that the indi4 vidual intends to enroll and complete the 

5 teaching certification program of the Na6 tional Board for Professional Teaching 

7 Standards. 

8 (B) LOCAL EDUCATIONAL AGENCY.—A 

9 local educational agency described in subpara10 graph (A)(i) is a local educational agency 

11 that—

12 (i) serves low achieving students as 

13 measured by low graduation rates or low 

14 scores on assessment exams; 

15 (ii) has a low teacher retention rate in 

16 the schools served by the local educational 

17 agency; 

18 (iii) has a high rate of out-of-field 

19 placement of teachers in the schools served 

20 by the local educational agency; and 

21 (iv) has a shortage of teachers of 

22 mathematics or physical science in the 

23 schools served by the local educational 

24 agency. 
503

•HR 936 IH 

1 (3) AMOUNT OF SUBSIDY.—Subject to the 

2 availability of funds, a State shall provide a teacher 

3 who has an application approved under paragraph 

4 (2) with a subsidy in an amount equal to 90 percent 

5 of the cost of enrollment in the program described 

6 in paragraph (2)(A)(iii). 

7 (f) APPROPRIATIONS.—There are authorized to be 

8 appropriated to carry out this section, $37,800,000 for 

9 each of the fiscal years 2004 through 2008. 

10 Subchapter C—Student Loan Forgiveness for 

11 Teachers 

12 SEC. 3441. STUDENT LOAN FORGIVENESS FOR TEACHERS. 

13 (a) GUARANTEED LOANS.—Section 428J of the 

14 Higher Education Act of 1965 (20 U.S.C. 1078–10) is 

15 amended to read as follows: 

16 ‘‘SEC. 428J. LOAN FORGIVENESS FOR TEACHERS. 

17 ‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 

18 this section to encourage individuals to enter and continue 

19 in the teaching profession. 

20 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary shall 

21 carry out a program, through the holder of the loan, of 

22 assuming the obligation to repay in accordance with sub23 section (c) a qualified loan amount for a loan made under 

24 section 428 or 428H for any borrower who—
504

•HR 936 IH 

1 ‘‘(1) is employed as a full-time teacher during 

2 the academic year beginning in calendar year 2003 

3 or during any subsequent academic year—

4 ‘‘(A) in a school that qualifies under sec5 tion 465(a)(2)(A) for loan cancellation for Per6 kins loan recipients who teach in such schools; 

7 ‘‘(B) if employed as a secondary school 

8 teacher, is teaching—

9 ‘‘(i) a subject area that is relevant to 

10 the borrower’s academic major as certified 

11 by the chief administrative officer of the 

12 public or nonprofit private secondary 

13 school in which the borrower is employed; 

14 or 

15 ‘‘(ii) special education or bilingual 

16 education; 

17 ‘‘(C) if employed as an elementary school 

18 teacher, has demonstrated, as certified by the 

19 chief administrative officer of the public or non20 profit private elementary school in which the 

21 borrower is employed, knowledge and teaching 

22 skills in reading, writing, mathematics, special 

23 education, bilingual education, or other areas of 

24 the elementary school curriculum; and 
505

•HR 936 IH 

1 ‘‘(D) is highly qualified, as such term is 

2 defined in section 9101 of the Elementary and 

3 Secondary Education Act of 1965; and 

4 ‘‘(2) is not in default on a loan for which the 

5 borrower seeks forgiveness. 

6 ‘‘(c) QUALIFIED LOANS AMOUNT.—

7 ‘‘(1) IN GENERAL.—Of the aggregate loan obli8 gations of a borrower on loans made under section 

9 428 or 428H that are outstanding after the comple10 tion of the first complete school year of teaching de11 scribed in subsection (b)(1) for which the borrower 

12 applies for repayment under this section, the Sec13 retary shall repay not more than—

14 ‘‘(A) $3,000 for each of the first and sec15 ond such complete school years; 

16 ‘‘(B) $4,000 for the third such complete 

17 school year; and 

18 ‘‘(C) $5,000 for each of the fourth and 

19 fifth such complete school years. 

20 ‘‘(2) TREATMENT OF CONSOLIDATION LOANS.—

21 A loan amount for a loan made under section 428C 

22 may be a qualified loan amount for the purposes of 

23 this subsection only to the extent that such loan 

24 amount was used to repay a Federal Direct Stafford 

25 Loan, a Federal Direct Unsubsidized Stafford Loan, 
506

•HR 936 IH 

1 or a loan made under section 428 or 428H for a 

2 borrower who meets the requirements of subsection 

3 (b), as determined in accordance with regulations 

4 prescribed by the Secretary. 

5 ‘‘(d) REGULATIONS.—The Secretary is authorized to 

6 issue such regulations as may be necessary to carry out 

7 the provisions of this section. 

8 ‘‘(e) CONSTRUCTION.—Nothing in this section shall 

9 be construed to authorize any refunding of any repayment 

10 of a loan. 

11 ‘‘(f) LIST.—If the list of schools in which a teacher 

12 may perform service pursuant to subsection (b) is not 

13 available before May 1 of any year, the Secretary may use 

14 the list for the year preceding the year for which the deter15 mination is made to make such service determination. 

16 ‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—

17 ‘‘(1) CONTINUED ELIGIBILITY.—Any teacher 

18 who performs service in a school that—

19 ‘‘(A) meets the requirements of subsection 

20 (b)(1)(A) in any year during such service; and 

21 ‘‘(B) in a subsequent year fails to meet the 

22 requirements of such subsection, 

23 may continue to teach in such school and shall be 

24 eligible for loan forgiveness pursuant to subsection 

25 (b). 
507

•HR 936 IH 

1 ‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No 

2 borrower may, for the same service, receive a benefit 

3 under both this subsection and subtitle D of title I 

4 of the National and Community Service Act of 1990 

5 (42 U.S.C. 12571 et seq.). No borrower may receive 

6 a reduction of loan obligations under both this sec7 tion and section 460. 

8 ‘‘(h) DEFINITION.—For purposes of this section, the 

9 term ‘year’, where applied to service as a teacher, means 

10 an academic year as defined by the Secretary.’’. 

11 (b) DIRECT LOANS.—Section 460 of such Act (20 

12 U.S.C. 1087j) is amended to read as follows: 

13 ‘‘SEC. 460. LOAN FORGIVENESS FOR TEACHERS. 

14 ‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 

15 this section to encourage individuals to enter and continue 

16 in the teaching profession. 

17 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary shall 

18 carry out a program of canceling the obligation to repay 

19 a qualified loan amount in accordance with subsection (c) 

20 for Federal Direct Stafford Loans and Federal Direct Un21 subsidized Stafford Loans made under this part for any 

22 borrower who—

23 ‘‘(1) is employed as a full-time teacher during 

24 the academic year beginning in calendar year 2003 

25 or during any subsequent academic year—
508

•HR 936 IH 

1 ‘‘(A) in a school that qualifies under sec2 tion 465(a)(2)(A) for loan cancellation for Per3 kins loan recipients who teach in such schools; 

4 ‘‘(B) if employed as a secondary school 

5 teacher, is teaching—

6 ‘‘(i) a subject area that is relevant to 

7 the borrower’s academic major as certified 

8 by the chief administrative officer of the 

9 public or nonprofit private secondary 

10 school in which the borrower is employed; 

11 or 

12 ‘‘(ii) special education or bilingual 

13 education; 

14 ‘‘(C) if employed as an elementary school 

15 teacher, has demonstrated, as certified by the 

16 chief administrative officer of the public or non17 profit private elementary school in which the 

18 borrower is employed, knowledge and teaching 

19 skills in reading, writing, mathematics, special 

20 education, bilingual education, and other areas 

21 of the elementary school curriculum; and 

22 ‘‘(D) is highly qualified, as such term is 

23 defined in section 9101 of the Elementary and 

24 Secondary Education Act of 1965; and 
509

•HR 936 IH 

1 ‘‘(2) is not in default on a loan for which the 

2 borrower seeks forgiveness. 

3 ‘‘(c) QUALIFIED LOANS AMOUNT.—

4 ‘‘(1) IN GENERAL.—Of the aggregate loan obli5 gations of a borrower on Federal Direct Stafford 

6 Loans and Federal Direct Unsubsidized Stafford 

7 Loans made under this part that are outstanding 

8 after the completion of the first complete school year 

9 of teaching described in subsection (b)(1) for which 

10 the borrower applies for cancellation under this sec11 tion, the Secretary shall cancel not more than—

12 ‘‘(A) $3,000 for each of the first and sec13 ond such complete school years; 

14 ‘‘(B) $4,000 for the third such complete 

15 school year; and 

16 ‘‘(C) $5,000 for each of the fourth and 

17 fifth such complete school years. 

18 ‘‘(2) TREATMENT OF CONSOLIDATION LOANS.—

19 A loan amount for a Federal Direct Consolidation 

20 Loan may be a qualified loan amount for the pur21 poses of this subsection only to the extent that such 

22 loan amount was used to repay a Federal Direct 

23 Stafford Loan, a Federal Direct Unsubsidized Staf24 ford Loan, or a loan made under section 428 or 

25 428H, for a borrower who meets the requirements of 
510

•HR 936 IH 

1 subsection (b), as determined in accordance with 

2 regulations prescribed by the Secretary. 

3 ‘‘(d) REGULATIONS.—The Secretary is authorized to 

4 issue such regulations as may be necessary to carry out 

5 the provisions of this section. 

6 ‘‘(e) CONSTRUCTION.—Nothing in this section shall 

7 be construed to authorize any refunding of any repayment 

8 of a loan. 

9 ‘‘(f) LIST.—If the list of schools in which a teacher 

10 may perform service pursuant to subsection (b) is not 

11 available before May 1 of any year, the Secretary may use 

12 the list for the year preceding the year for which the deter13 mination is made to make such service determination. 

14 ‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—

15 ‘‘(1) CONTINUED ELIGIBILITY.—Any teacher 

16 who performs service in a school that—

17 ‘‘(A) meets the requirements of subsection 

18 (b)(1)(A) in any year during such service; and 

19 ‘‘(B) in a subsequent year fails to meet the 

20 requirements of such subsection, 

21 may continue to teach in such school and shall be 

22 eligible for loan forgiveness pursuant to subsection 

23 (b). 

24 ‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No 

25 borrower may, for the same service, receive a benefit 
511

•HR 936 IH 

1 under both this subsection and subtitle D of title I 

2 of the National and Community Service Act of 1990 

3 (42 U.S.C. 12571 et seq.). No borrower may receive 

4 a reduction of loan obligations under both this sec5 tion and section 428J. 

6 ‘‘(h) DEFINITION.—For purposes of this section, the 

7 term ‘year’, where applied to service as a teacher, means 

8 an academic year as defined by the Secretary.’’. 

9 CHAPTER 4—SCHOOL CONSTRUCTION 

10 Subchapter A—School Modernization Bonds 

11 SEC. 3451. SHORT TITLE. 

12 This subchapter may be cited as the ‘‘America’s Bet13 ter Classroom Act of 2003’’.

14 SEC. 3452. EXPANSION OF INCENTIVES FOR PUBLIC 

15 SCHOOLS. 

16 (a) IN GENERAL.—Chapter 1 of the Internal Rev17 enue Code of 1986 is amended by adding at the end the 

18 following: 

19 ‘‘Subchapter Z—Public School Modernization 

20 Provisions

‘‘Sec. 1400M. Credit to holders of qualified public school modernization bonds. 

‘‘Sec. 1400N. Qualified school construction bonds. 

‘‘Sec. 1400O. Qualified zone academy bonds.
512

•HR 936 IH 

1 ‘‘SEC. 1400M. CREDIT TO HOLDERS OF QUALIFIED PUBLIC 

2 SCHOOL MODERNIZATION BONDS. 

3 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax4 payer who holds a qualified public school modernization 

5 bond on a credit allowance date of such bond which occurs 

6 during the taxable year, there shall be allowed as a credit 

7 against the tax imposed by this chapter for such taxable 

8 year an amount equal to the sum of the credits determined 

9 under subsection (b) with respect to credit allowance dates 

10 during such year on which the taxpayer holds such bond. 

11 ‘‘(b) AMOUNT OF CREDIT.—

12 ‘‘(1) IN GENERAL.—The amount of the credit 

13 determined under this subsection with respect to any 

14 credit allowance date for a qualified public school 

15 modernization bond is 25 percent of the annual 

16 credit determined with respect to such bond. 

17 ‘‘(2) ANNUAL CREDIT.—The annual credit de18 termined with respect to any qualified public school 

19 modernization bond is the product of—

20 ‘‘(A) the applicable credit rate, multiplied 

21 by 

22 ‘‘(B) the outstanding face amount of the 

23 bond. 

24 ‘‘(3) APPLICABLE CREDIT RATE.—For purposes 

25 of paragraph (1), the applicable credit rate with re26 spect to an issue is the rate equal to an average 
513

•HR 936 IH 

1 market yield (as of the day before the date of 

2 issuance of the issue) on outstanding long-term cor3 porate debt obligations (determined under regula4 tions prescribed by the Secretary). 

5 ‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE6 DEMPTION.—In the case of a bond which is issued 

7 during the 3-month period ending on a credit allow8 ance date, the amount of the credit determined 

9 under this subsection with respect to such credit al10 lowance date shall be a ratable portion of the credit 

11 otherwise determined based on the portion of the 3-

12 month period during which the bond is outstanding. 

13 A similar rule shall apply when the bond is re14 deemed. 

15 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—

16 ‘‘(1) IN GENERAL.—The credit allowed under 

17 subsection (a) for any taxable year shall not exceed 

18 the excess of—

19 ‘‘(A) the sum of the regular tax liability 

20 (as defined in section 26(b)) plus the tax im21 posed by section 55, over 

22 ‘‘(B) the sum of the credits allowable 

23 under part IV of subchapter A (other than sub24 part C thereof, relating to refundable credits). 
514

•HR 936 IH 

1 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

2 credit allowable under subsection (a) exceeds the 

3 limitation imposed by paragraph (1) for such taxable 

4 year, such excess shall be carried to the succeeding 

5 taxable year and added to the credit allowable under 

6 subsection (a) for such taxable year.

7 ‘‘(d) QUALIFIED PUBLIC SCHOOL MODERNIZATION

8 BOND; CREDIT ALLOWANCE DATE.—For purposes of this 

9 section—

10 ‘‘(1) QUALIFIED PUBLIC SCHOOL MODERNIZA11 TION BOND.—The term ‘qualified public school mod12 ernization bond’ means—

13 ‘‘(A) a qualified zone academy bond, and 

14 ‘‘(B) a qualified school construction bond. 

15 ‘‘(2) CREDIT ALLOWANCE DATE.—The term 

16 ‘credit allowance date’ means—

17 ‘‘(A) March 15, 

18 ‘‘(B) June 15, 

19 ‘‘(C) September 15, and 

20 ‘‘(D) December 15. 

21 Such term includes the last day on which the bond 

22 is outstanding. 

23 ‘‘(e) OTHER DEFINITIONS.—For purposes of this 

24 subchapter— 
515

•HR 936 IH 

1 ‘‘(1) LOCAL EDUCATIONAL AGENCY.—The term 

2 ‘local educational agency’ has the meaning given to 

3 such term by section 9101 of the Elementary and 

4 Secondary Education Act of 1965. Such term in5 cludes the local educational agency that serves the 

6 District of Columbia but does not include any other 

7 State agency. 

8 ‘‘(2) BOND.—The term ‘bond’ includes any ob9 ligation. 

10 ‘‘(3) STATE.—The term ‘State’ includes the 

11 District of Columbia and any possession of the 

12 United States. 

13 ‘‘(4) PUBLIC SCHOOL FACILITY.—The term 

14 ‘public school facility’ shall not include—

15 ‘‘(A) any stadium or other facility pri16 marily used for athletic contests or exhibitions

17 or other events for which admission is charged 

18 to the general public, or 

19 ‘‘(B) any facility which is not owned by a 

20 State or local government or any agency or in21 strumentality of a State or local government. 

22 ‘‘(f) CREDIT INCLUDED IN GROSS INCOME.—Gross 

23 income includes the amount of the credit allowed to the 

24 taxpayer under this section (determined without regard to 
516

•HR 936 IH 

1 subsection (c)) and the amount so included shall be treat2 ed as interest income. 

3 ‘‘(g) BONDS HELD BY REGULATED INVESTMENT

4 COMPANIES.—If any qualified public school modernization 

5 bond is held by a regulated investment company, the credit 

6 determined under subsection (a) shall be allowed to share7 holders of such company under procedures prescribed by 

8 the Secretary. 

9 ‘‘(h) CREDITS MAY BE STRIPPED.—Under regula10 tions prescribed by the Secretary— 

11 ‘‘(1) IN GENERAL.—There may be a separation 

12 (including at issuance) of the ownership of a quali13 fied public school modernization bond and the enti14 tlement to the credit under this section with respect 

15 to such bond. In case of any such separation, the 

16 credit under this section shall be allowed to the per17 son who on the credit allowance date holds the in18 strument evidencing the entitlement to the credit 

19 and not to the holder of the bond. 

20 ‘‘(2) CERTAIN RULES TO APPLY.—In the case 

21 of a separation described in paragraph (1), the rules 

22 of section 1286 shall apply to the qualified public 

23 school modernization bond as if it were a stripped 

24 bond and to the credit under this section as if it 

25 were a stripped coupon. 
517

•HR 936 IH 

1 ‘‘(i) TREATMENT FOR ESTIMATED TAX PURPOSES.—

2 Solely for purposes of sections 6654 and 6655, the credit 

3 allowed by this section to a taxpayer by reason of holding 

4 a qualified public school modernization bond on a credit 

5 allowance date shall be treated as if it were a payment 

6 of estimated tax made by the taxpayer on such date. 

7 ‘‘(j) CREDIT MAY BE TRANSFERRED.—Nothing in 

8 any law or rule of law shall be construed to limit the trans9 ferability of the credit allowed by this section through sale 

10 and repurchase agreements. 

11 ‘‘(k) REPORTING.—Issuers of qualified public school 

12 modernization bonds shall submit reports similar to the 

13 reports required under section 149(e). 

14 ‘‘(l) TERMINATION.—This section shall not apply to 

15 any bond issued after September 30, 2008. 

16 ‘‘SEC. 1400N. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

17 ‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.—

18 For purposes of this subchapter, the term ‘qualified school 

19 construction bond’ means any bond issued as part of an 

20 issue if—

21 ‘‘(1) 95 percent or more of the proceeds of such 

22 issue are to be used for the construction, rehabilita23 tion, or repair of a public school facility or for the 

24 acquisition of land on which such a facility is to be 

25 constructed with part of the proceeds of such issue, 
518

•HR 936 IH 

1 ‘‘(2) the bond is issued by a State or local gov2 ernment within the jurisdiction of which such school 

3 is located, 

4 ‘‘(3) the issuer designates such bond for pur5 poses of this section, and 

6 ‘‘(4) the term of each bond which is part of 

7 such issue does not exceed 15 years. 

8 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES9 IGNATED.—The maximum aggregate face amount of 

10 bonds issued during any calendar year which may be des11 ignated under subsection (a) by any issuer shall not exceed 

12 the sum of—

13 ‘‘(1) the limitation amount allocated under sub14 section (d) for such calendar year to such issuer, 

15 and 

16 ‘‘(2) if such issuer is a large local educational 

17 agency (as defined in subsection (e)(4)) or is issuing 

18 on behalf of such an agency, the limitation amount 

19 allocated under subsection (e) for such calendar year 

20 to such agency. 

21 ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS

22 DESIGNATED.—There is a national qualified school con23 struction bond limitation for each calendar year. Such lim24 itation is—

25 ‘‘(1) $11,000,000,000 for 2004, 
519

•HR 936 IH 

1 ‘‘(2) $11,000,000,000 for 2005, and 

2 ‘‘(3) except as provided in subsection (f), zero 

3 after 2005. 

4 ‘‘(d) 60 PERCENT OF LIMITATION ALLOCATED

5 AMONG STATES.—

6 ‘‘(1) IN GENERAL.—60 percent of the limitation 

7 applicable under subsection (c) for any calendar year 

8 shall be allocated by the Secretary among the States 

9 in proportion to the respective numbers of children 

10 in each State who have attained age 5 but not age 

11 18 for the most recent fiscal year ending before such 

12 calendar year. The limitation amount allocated to a 

13 State under the preceding sentence shall be allocated 

14 by the State to issuers within such State and such 

15 allocations may be made only if there is an approved 

16 State application. 

17 ‘‘(2) MINIMUM ALLOCATIONS TO STATES.—

18 ‘‘(A) IN GENERAL.—The Secretary shall 

19 adjust the allocations under this subsection for 

20 any calendar year for each State to the extent 

21 necessary to ensure that the sum of—

22 ‘‘(i) the amount allocated to such 

23 State under this subsection for such year, 

24 and 
520

•HR 936 IH 

1 ‘‘(ii) the aggregate amounts allocated 

2 under subsection (e) to large local edu3 cational agencies in such State for such 

4 year, 

5 is not less than an amount equal to such 

6 State’s minimum percentage of the amount to 

7 be allocated under paragraph (1) for the cal8 endar year. 

9 ‘‘(B) MINIMUM PERCENTAGE.—A State’s 

10 minimum percentage for any calendar year is 

11 the minimum percentage described in section 

12 1124(d) of the Elementary and Secondary Edu13 cation Act of 1965 (20 U.S.C. 6334(d)) for 

14 such State for the most recent fiscal year end15 ing before such calendar year.

16 ‘‘(3) ALLOCATIONS TO CERTAIN POSSES17 SIONS.—The amount to be allocated under para18 graph (1) to any possession of the United States 

19 other than Puerto Rico shall be the amount which 

20 would have been allocated if all allocations under 

21 paragraph (1) were made on the basis of respective 

22 populations of individuals below the poverty line (as 

23 defined by the Office of Management and Budget). 

24 In making other allocations, the amount to be allo25 cated under paragraph (1) shall be reduced by the 
521

•HR 936 IH 

1 aggregate amount allocated under this paragraph to 

2 possessions of the United States. 

3 ‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In 

4 addition to the amounts allocated under this sub5 section, $200,000,000 for calendar year 2004, and 

6 $200,000,000 for calendar year 2005, shall be allo7 cated by the Secretary of the Interior for purposes 

8 of the construction, rehabilitation, and repair of 

9 schools funded by the Bureau of Indian Affairs. In 

10 the case of amounts allocated under the preceding 

11 sentence, Indian tribal governments (as defined in 

12 section 7871) shall be treated as qualified issuers for 

13 purposes of this subchapter. 

14 ‘‘(5) APPROVED STATE APPLICATION.—For 

15 purposes of paragraph (1), the term ‘approved State 

16 application’ means an application which is approved 

17 by the Secretary of Education and which includes—

18 ‘‘(A) the results of a recent publicly avail19 able survey (undertaken by the State with the 

20 involvement of local education officials, mem21 bers of the public, and experts in school con22 struction and management) of such State’s 

23 needs for public school facilities, including de24 scriptions of—
522

•HR 936 IH 

1 ‘‘(i) health and safety problems at 

2 such facilities, 

3 ‘‘(ii) the capacity of public schools in 

4 the State to house projected enrollments, 

5 and 

6 ‘‘(iii) the extent to which the public 

7 schools in the State offer the physical in8 frastructure needed to provide a high-qual9 ity education to all students, and 

10 ‘‘(B) a description of how the State will al11 locate to local educational agencies, or other12 wise use, its allocation under this subsection to 

13 address the needs identified under subpara14 graph (A), including a description of how it 

15 will—

16 ‘‘(i) ensure that the needs of both 

17 rural and urban areas will be recognized, 

18 ‘‘(ii) give highest priority to localities 

19 with the greatest needs, as demonstrated 

20 by inadequate school facilities coupled with 

21 a low level of resources to meet those 

22 needs, 

23 ‘‘(iii) use its allocation under this sub24 section to assist localities that lack the fis-
523

•HR 936 IH 

1 cal capacity to issue bonds on their own, 

2 and 

3 ‘‘(iv) ensure that its allocation under 

4 this subsection is used only to supplement, 

5 and not supplant, the amount of school 

6 construction, rehabilitation, and repair in 

7 the State that would have occurred in the 

8 absence of such allocation. 

9 Any allocation under paragraph (1) by a State shall 

10 be binding if such State reasonably determined that 

11 the allocation was in accordance with the plan ap12 proved under this paragraph. 

13 ‘‘(e) 40 PERCENT OF LIMITATION ALLOCATED

14 AMONG LARGEST SCHOOL DISTRICTS.—

15 ‘‘(1) IN GENERAL.—40 percent of the limitation 

16 applicable under subsection (c) for any calendar year 

17 shall be allocated under paragraph (2) by the Sec18 retary among local educational agencies which are 

19 large local educational agencies for such year. No 

20 qualified school construction bond may be issued by 

21 reason of an allocation to a large local educational 

22 agency under the preceding sentence unless such 

23 agency has an approved local application. 

24 ‘‘(2) ALLOCATION FORMULA.—The amount to 

25 be allocated under paragraph (1) for any calendar 
524

•HR 936 IH 

1 year shall be allocated among large local educational 

2 agencies in proportion to the respective amounts 

3 each such agency received for Basic Grants under 

4 subpart 2 of part A of title I of the Elementary and 

5 Secondary Education Act of 1965 (20 U.S.C. 6331 

6 et seq.) for the most recent fiscal year ending before 

7 such calendar year. 

8 ‘‘(3) ALLOCATION OF UNUSED LIMITATION TO

9 STATE.—The amount allocated under this subsection 

10 to a large local educational agency for any calendar 

11 year may be reallocated by such agency to the State 

12 in which such agency is located for such calendar 

13 year. Any amount reallocated to a State under the 

14 preceding sentence may be allocated as provided in 

15 subsection (d)(1). 

16 ‘‘(4) LARGE LOCAL EDUCATIONAL AGENCY.—

17 For purposes of this section, the term ‘large local 

18 educational agency’ means, with respect to a cal19 endar year, any local educational agency if such 

20 agency is—

21 ‘‘(A) among the 100 local educational 

22 agencies with the largest numbers of children 

23 aged 5 through 17 from families living below 

24 the poverty level, as determined by the Sec25 retary using the most recent data available 
525

•HR 936 IH 

1 from the Department of Commerce that are 

2 satisfactory to the Secretary, or 

3 ‘‘(B) 1 of not more than 25 local edu4 cational agencies (other than those described in 

5 subparagraph (A)) that the Secretary of Edu6 cation determines (based on the most recent 

7 data available satisfactory to the Secretary) are 

8 in particular need of assistance, based on a low 

9 level of resources for school construction, a high 

10 level of enrollment growth, or such other factors 

11 as the Secretary deems appropriate. 

12 ‘‘(5) APPROVED LOCAL APPLICATION.—For 

13 purposes of paragraph (1), the term ‘approved local 

14 application’ means an application which is approved 

15 by the Secretary of Education and which includes—

16 ‘‘(A) the results of a recent publicly avail17 able survey (undertaken by the local educational 

18 agency or the State with the involvement of 

19 school officials, members of the public, and ex20 perts in school construction and management) 

21 of such agency’s needs for public school facili22 ties, including descriptions of—

23 ‘‘(i) the overall condition of the local 

24 educational agency’s school facilities, in25 cluding health and safety problems, 
526

•HR 936 IH 

1 ‘‘(ii) the capacity of the agency’s 

2 schools to house projected enrollments, and 

3 ‘‘(iii) the extent to which the agency’s 

4 schools offer the physical infrastructure 

5 needed to provide a high-quality education 

6 to all students, 

7 ‘‘(B) a description of how the local edu8 cational agency will use its allocation under this 

9 subsection to address the needs identified under 

10 subparagraph (A), and 

11 ‘‘(C) a description of how the local edu12 cational agency will ensure that its allocation 

13 under this subsection is used only to supple14 ment, and not supplant, the amount of school 

15 construction, rehabilitation, or repair in the lo16 cality that would have occurred in the absence 

17 of such allocation. 

18 A rule similar to the rule of the last sentence of sub19 section (d)(5) shall apply for purposes of this para20 graph. 

21 ‘‘(f) CARRYOVER OF UNUSED LIMITATION.—If for 

22 any calendar year—

23 ‘‘(1) the amount allocated under subsection (d) 

24 to any State, exceeds 
527

•HR 936 IH 

1 ‘‘(2) the amount of bonds issued during such 

2 year which are designated under subsection (a) pur3 suant to such allocation, 

4 the limitation amount under such subsection for such 

5 State for the following calendar year shall be increased 

6 by the amount of such excess. A similar rule shall apply 

7 to the amounts allocated under subsection (d)(5) or (e). 

8 ‘‘(g) SPECIAL RULES RELATING TO ARBITRAGE.—

9 ‘‘(1) IN GENERAL.—A bond shall not be treated 

10 as failing to meet the requirement of subsection 

11 (a)(1) solely by reason of the fact that the proceeds 

12 of the issue of which such bond is a part are in13 vested for a temporary period (but not more than 36 

14 months) until such proceeds are needed for the pur15 pose for which such issue was issued. 

16 ‘‘(2) BINDING COMMITMENT REQUIREMENT.—

17 Paragraph (1) shall apply to an issue only if, as of 

18 the date of issuance, there is a reasonable expecta19 tion that—

20 ‘‘(A) at least 10 percent of the proceeds of 

21 the issue will be spent within the 6-month pe22 riod beginning on such date for the purpose for 

23 which such issue was issued, and 
528

•HR 936 IH 

1 ‘‘(B) the remaining proceeds of the issue 

2 will be spent with due diligence for such pur3 pose. 

4 ‘‘(3) EARNINGS ON PROCEEDS.—Any earnings 

5 on proceeds during the temporary period shall be 

6 treated as proceeds of the issue for purposes of ap7 plying subsection (a)(1) and paragraph (1) of this 

8 subsection. 

9 ‘‘SEC. 1400O. QUALIFIED ZONE ACADEMY BONDS. 

10 ‘‘(a) QUALIFIED ZONE ACADEMY BOND.—For pur11 poses of this subchapter—

12 ‘‘(1) IN GENERAL.—The term ‘qualified zone 

13 academy bond’ means any bond issued as part of an 

14 issue if—

15 ‘‘(A) 95 percent or more of the proceeds of 

16 such issue are to be used for a qualified pur17 pose with respect to a qualified zone academy 

18 established by a local educational agency, 

19 ‘‘(B) the bond is issued by a State or local 

20 government within the jurisdiction of which 

21 such academy is located, 

22 ‘‘(C) the issuer—

23 ‘‘(i) designates such bond for purposes 

24 of this section, 
529

•HR 936 IH 

1 ‘‘(ii) certifies that it has written as2 surances that the private business con3 tribution requirement of paragraph (2) will 

4 be met with respect to such academy, and 

5 ‘‘(iii) certifies that it has the written 

6 approval of the local educational agency 

7 for such bond issuance, and 

8 ‘‘(D) the term of each bond which is part 

9 of such issue does not exceed 15 years. 

10 Rules similar to the rules of section 1400N(g) shall 

11 apply for purposes of paragraph (1). 

12 ‘‘(2) PRIVATE BUSINESS CONTRIBUTION RE13 QUIREMENT.—

14 ‘‘(A) IN GENERAL.—For purposes of para15 graph (1), the private business contribution re16 quirement of this paragraph is met with respect 

17 to any issue if the local educational agency that 

18 established the qualified zone academy has writ19 ten commitments from private entities to make 

20 qualified contributions having a present value 

21 (as of the date of issuance of the issue) of not 

22 less than 10 percent of the proceeds of the 

23 issue. 

24 ‘‘(B) QUALIFIED CONTRIBUTIONS.—For 

25 purposes of subparagraph (A), the term ‘quali-
530

•HR 936 IH 

1 fied contribution’ means any contribution (of a 

2 type and quality acceptable to the local edu3 cational agency) of—

4 ‘‘(i) equipment for use in the qualified 

5 zone academy (including state-of-the-art 

6 technology and vocational equipment), 

7 ‘‘(ii) technical assistance in developing 

8 curriculum or in training teachers in order 

9 to promote appropriate market driven tech10 nology in the classroom, 

11 ‘‘(iii) services of employees as volun12 teer mentors, 

13 ‘‘(iv) internships, field trips, or other 

14 educational opportunities outside the acad15 emy for students, or 

16 ‘‘(v) any other property or service 

17 specified by the local educational agency.

18 ‘‘(3) QUALIFIED ZONE ACADEMY.—The term 

19 ‘qualified zone academy’ means any public school (or 

20 academic program within a public school) which is 

21 established by and operated under the supervision of 

22 a local educational agency to provide education or 

23 training below the postsecondary level if—

24 ‘‘(A) such public school or program (as the 

25 case may be) is designed in cooperation with 
531

•HR 936 IH 

1 business to enhance the academic curriculum, 

2 increase graduation and employment rates, and 

3 better prepare students for the rigors of college 

4 and the increasingly complex workforce, 

5 ‘‘(B) students in such public school or pro6 gram (as the case may be) will be subject to the 

7 same academic standards and assessments as 

8 other students educated by the local educational 

9 agency, 

10 ‘‘(C) the comprehensive education plan of 

11 such public school or program is approved by 

12 the local educational agency, and 

13 ‘‘(D)(i) such public school is located in an 

14 empowerment zone or enterprise community 

15 (including any such zone or community des16 ignated after the date of enactment of this sec17 tion), or 

18 ‘‘(ii) there is a reasonable expectation (as 

19 of the date of issuance of the bonds) that at 

20 least 35 percent of the students attending such 

21 school or participating in such program (as the 

22 case may be) will be eligible for free or reduced23 cost lunches under the school lunch program es24 tablished under the Richard B. Russell National 

25 School Lunch Act. 
532

•HR 936 IH 

1 ‘‘(4) QUALIFIED PURPOSE.—The term ‘quali2 fied purpose’ means, with respect to any qualified 

3 zone academy—

4 ‘‘(A) constructing, rehabilitating, or repair5 ing the public school facility in which the acad6 emy is established, 

7 ‘‘(B) acquiring the land on which such fa8 cility is to be constructed with part of the pro9 ceeds of such issue, 

10 ‘‘(C) providing equipment for use at such 

11 academy, 

12 ‘‘(D) developing course materials for edu13 cation to be provided at such academy, and 

14 ‘‘(E) training teachers and other school 

15 personnel in such academy.

16 ‘‘(b) LIMITATIONS ON AMOUNT OF BONDS DES17 IGNATED.—

18 ‘‘(1) IN GENERAL.—There is a national zone 

19 academy bond limitation for each calendar year. 

20 Such limitation is—

21 ‘‘(A) $400,000,000 for 1998, 

22 ‘‘(B) $400,000,000 for 1999, 

23 ‘‘(C) $400,000,000 for 2000, 

24 ‘‘(D) $400,000,000 for 2001, 

25 ‘‘(E) $400,000,000 for 2002, 
533

•HR 936 IH 

1 ‘‘(F) $400,000,000 for 2003, 

2 ‘‘(G) $1,400,000,000 for 2004, 

3 ‘‘(H) $1,400,000,000 for 2005, and 

4 ‘‘(I) except as provided in paragraph (3), 

5 zero after 2005. 

6 ‘‘(2) ALLOCATION OF LIMITATION.—

7 ‘‘(A) ALLOCATION AMONG STATES.—

8 ‘‘(i) 1998, 1999, 2000, 2001, 2002 

9 AND 2003 LIMITATIONS.—The national 

10 zone academy bond limitations for calendar 

11 years 1998, 1999, 2000, 2001, 2002 and 

12 2003 shall be allocated by the Secretary 

13 among the States on the basis of their re14 spective populations of individuals below 

15 the poverty line (as defined by the Office 

16 of Management and Budget). 

17 ‘‘(ii) LIMITATION AFTER 2003.—The 

18 national zone academy bond limitation for 

19 any calendar year after 2003 shall be allo20 cated by the Secretary among the States in 

21 proportion to the respective amounts each 

22 such State received for Basic Grants under 

23 subpart 2 of part A of title I of the Ele24 mentary and Secondary Education Act of 

25 1965 (20 U.S.C. 6331 et seq.) for the 
534

•HR 936 IH 

1 most recent fiscal year ending before such 

2 calendar year. 

3 ‘‘(B) ALLOCATION TO LOCAL EDU4 CATIONAL AGENCIES.—The limitation amount 

5 allocated to a State under subparagraph (A) 

6 shall be allocated by the State to qualified zone 

7 academies within such State. 

8 ‘‘(C) DESIGNATION SUBJECT TO LIMITA9 TION AMOUNT.—The maximum aggregate face 

10 amount of bonds issued during any calendar 

11 year which may be designated under subsection 

12 (a) with respect to any qualified zone academy 

13 shall not exceed the limitation amount allocated 

14 to such academy under subparagraph (B) for 

15 such calendar year. 

16 ‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If 

17 for any calendar year—

18 ‘‘(A) the limitation amount under this sub19 section for any State, exceeds 

20 ‘‘(B) the amount of bonds issued during 

21 such year which are designated under sub22 section (a) (or the corresponding provisions of 

23 prior law) with respect to qualified zone acad24 emies within such State, 
535

•HR 936 IH 

1 the limitation amount under this subsection for such 

2 State for the following calendar year shall be in3 creased by the amount of such excess.’’. 

4 (b) REPORTING.—Subsection (d) of section 6049 of 

5 the Internal Revenue Code of 1986 (relating to returns 

6 regarding payments of interest) is amended by adding at 

7 the end the following: 

8 ‘‘(8) REPORTING OF CREDIT ON QUALIFIED

9 PUBLIC SCHOOL MODERNIZATION BONDS.—

10 ‘‘(A) IN GENERAL.—For purposes of sub11 section (a), the term ‘interest’ includes amounts 

12 includible in gross income under section 

13 1400M(f) and such amounts shall be treated as 

14 paid on the credit allowance date (as defined in 

15 section 1400M(d)(2)). 

16 ‘‘(B) REPORTING TO CORPORATIONS, 

17 ETC.—Except as otherwise provided in regula18 tions, in the case of any interest described in 

19 subparagraph (A) of this paragraph, subsection 

20 (b)(4) of this section shall be applied without

21 regard to subparagraphs (A), (H), (I), (J), (K), 

22 and (L)(i). 

23 ‘‘(C) REGULATORY AUTHORITY.—The Sec24 retary may prescribe such regulations as are 

25 necessary or appropriate to carry out the pur-
536

•HR 936 IH 

1 poses of this paragraph, including regulations 

2 which require more frequent or more detailed 

3 reporting.’’. 

4 (c) CONFORMING AMENDMENTS.—

5 (1) Subchapter U of chapter 1 of the Internal 

6 Revenue Code of 1986 is amended by striking part 

7 IV, by redesignating part V as part IV, and by re8 designating section 1397F as section 1397E. 

9 (2) The table of subchapters for chapter 1 of 

10 the Internal Revenue Code of 1986 is amended by 

11 adding at the end the following:

‘‘Subchapter Z. Public school modernization provisions.’’.

12 (3) The table of parts of subchapter U of chap13 ter 1 of the Internal Revenue Code of 1986 is 

14 amended by striking the last 2 items and inserting 

15 the following:

‘‘Part IV. Regulations.’’.

16 (d) EFFECTIVE DATES.—

17 (1) IN GENERAL.—Except as otherwise pro18 vided in this subsection, the amendments made by 

19 this section shall apply to obligations issued after 

20 December 31, 2002. 

21 (2) REPEAL OF RESTRICTION ON ZONE ACAD22 EMY BOND HOLDERS.—In the case of bonds to 

23 which section 1397E of the Internal Revenue Code 

24 of 1986 (as in effect before the date of enactment 
537

•HR 936 IH 

1 of this Act) applies, the limitation of such section to 

2 eligible taxpayers (as defined in subsection (d)(6) of 

3 such section) shall not apply after the date of enact4 ment of this Act. 

5 SEC. 3453. APPLICATION OF CERTAIN LABOR STANDARDS 

6 ON CONSTRUCTION PROJECTS FINANCED 

7 UNDER PUBLIC SCHOOL MODERNIZATION 

8 PROGRAM. 

9 Section 439 of the General Education Provisions Act 

10 (relating to labor standards) (20 U.S.C. 1232b) is amend11 ed—

12 (1) by inserting ‘‘(a)’’ before ‘‘All laborers and 

13 mechanics’’; and 

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

15 ‘‘(b)(1) For purposes of this section, the term ‘appli16 cable program’ also includes the qualified zone academy 

17 bond provisions enacted by section 226 of the Taxpayer 

18 Relief Act of 1997 and the program established by section 

19 3452 of the America’s Better Classroom Act of 2003. 

20 ‘‘(2) A State or local government participating in a 

21 program described in paragraph (1) shall—

22 ‘‘(A) in the awarding of contracts, give priority 

23 to contractors with substantial numbers of employ24 ees residing in the local education area to be served 

25 by the school being constructed; and 
538

•HR 936 IH 

1 ‘‘(B) include in the construction contract for 

2 such school a requirement that the contractor give 

3 priority in hiring new workers to individuals residing 

4 in such local education area. 

5 ‘‘(3) In the case of a program described in paragraph 

6 (1), nothing in this subsection or subsection (a) shall be 

7 construed to deny any tax credit allowed under such pro8 gram. If amounts are required to be withheld from con9 tractors to pay wages to which workers are entitled, such 

10 amounts shall be treated as expended for construction pur11 poses in determining whether the requirements of such 

12 program are met.’’. 

13 Subchapter B—Schools as Centers of the 

14 Community 

15 SEC. 3461. FINDINGS. 

16 Congress makes the following findings: 

17 (1) Communities across the Nation need to 

18 build and modernize thousands of public elementary 

19 schools and secondary schools in the coming decade 

20 in ways that reflect new approaches to teaching and 

21 learning, and in ways that reflect the fact that learn22 ing is a lifelong process for persons of all ages. 

23 These schools can make an enduring difference for 

24 these communities by affecting not just students but 

25 entire neighborhoods for generations. 
539

•HR 936 IH 

1 (2) The National Symposium on School Design 

2 has recommended that local educational agencies 

3 hold community dialogues that discuss the planning 

4 and design of their new school buildings. Community 

5 partnerships of parents, educators, architects, urban 

6 planners, students, and other interested parties can 

7 assist local educational agencies to design new 

8 schools that better meet the needs of their commu9 nities now and in the future. 

10 (3) Establishing such community partnerships 

11 for the purpose of broadening public participation in 

12 the planning and design of schools encourages 

13 broader community involvement in the schools, gen14 erates creativity in the planning process, and pro15 motes savings, cost-sharing, and the most effective 

16 use of the school building by the entire community. 

17 Such partnerships can help create schools that are 

18 centers of teaching and learning for the entire com19 munity. 

20 SEC. 3462. PURPOSE. 

21 The purpose of this subchapter is to assist local edu22 cational agencies and their communities to increase the 

23 involvement of parents, teachers, students, and community 

24 groups in the planning and design of new and renovated 
540

•HR 936 IH 

1 public elementary school and secondary school buildings 

2 that—

3 (1) enhance teaching and learning, and accom4 modate the needs of all learners; 

5 (2) serve as a center of the community; 

6 (3) promote health, safety, and security; 

7 (4) effectively use all available resources; and 

8 (5) are flexible and can accommodate changing 

9 community needs. 

10 SEC. 3463. PROGRAM AUTHORIZED. 

11 (a) GRANTS AUTHORIZED.—

12 (1) IN GENERAL.—From funds appropriated 

13 under section 3476, the Secretary shall award 

14 grants to local educational agencies participating in 

15 eligible consortia to enable the eligible consortia to 

16 support the planning and design of—

17 (A) new elementary school or secondary 

18 school buildings; or 

19 (B) the renovation of existing elementary 

20 school or secondary school buildings.

21 (2) DEFINITION OF ELIGIBLE CONSORTIUM.—

22 In this subchapter, the term ‘‘eligible consortium’’ 

23 means a consortium that—

24 (A) shall include at least 1 local edu25 cational agency; and 
541

•HR 936 IH 

1 (B) may include such organizations and in2 dividuals as a State educational agency, a com3 munity-based organization, a local government, 

4 a business or industry, an architect, a parent, 

5 teacher, or senior citizen group, a library, or a 

6 museum. 

7 (b) REQUIREMENTS.—

8 (1) DURATION.—Grants under this subchapter 

9 shall be awarded for not more than 1 year. 

10 (2) LIMITATION.—Not more than 1 grant pro11 vided under this subchapter may be used to plan or 

12 design the same school. 

13 (3) MATCHING.—A grant under this subchapter 

14 shall not be used to pay for more than 50 percent 

15 of the cost of a planning or design project. A recipi16 ent of a grant under this subchapter shall provide at 

17 least 50 percent of the cost of the planning or design 

18 project from non-Federal sources, which may include 

19 in-kind contributions, fairly evaluated. 

20 (c) GEOGRAPHIC DISTRIBUTION.—In awarding 

21 grants under this subchapter, the Secretary is authorized 

22 to take such steps as are necessary to ensure an equitable 

23 geographic distribution of the grants, including distrib24 uting the grants among rural, urban, and suburban local 

25 educational agencies. 
542

•HR 936 IH 

1 SEC. 3464. USE OF FUNDS. 

2 A grant under this subchapter shall be used by a local 

3 educational agency to support the planning or design of 

4 a new school building, or of the renovation of an existing 

5 school building, and may be used for activities such as—

6 (1) community outreach activities (including the 

7 development and circulation of explanatory materials 

8 and the cost of meetings) designed to encourage 

9 greater participation by the community; 

10 (2) the development, with the involvement of all 

11 stakeholders, of a master plan for a school district; 

12 and 

13 (3) necessary administrative support for the eli14 gible consortium. 

15 SEC. 3465. APPLICATIONS. 

16 (a) IN GENERAL.—Each local educational agency de17 siring a grant under this subchapter shall submit to the 

18 Secretary an application at such time, and containing such 

19 information, as the Secretary may require. 

20 (b) CONTENTS.—Each application submitted under 

21 this subchapter shall describe—

22 (1) the community to be served by the new or 

23 renovated school, including the needs of that com24 munity with respect to such school; 

25 (2) the individuals and groups that compose the 

26 eligible consortium and their respective functions; 
543

•HR 936 IH 

1 (3) the project activities to be supported by the 

2 grant and how the activities will help meet the needs 

3 of that community and the purpose of this sub4 chapter; and 

5 (4) the availability of resources for the project, 

6 and how the resources will be obtained. 

7 SEC. 3466. AUTHORIZATION OF APPROPRIATIONS. 

8 There are authorized to be appropriated to carry out 

9 this subchapter $10,000,000 for fiscal year 2004, and 

10 such sums as may be necessary for each of the 4 suc11 ceeding fiscal years. 

12 CHAPTER 5—CHILD OPPORTUNITY ZONE 

13 FAMILY CENTERS 

14 SEC. 3471. CHILD OPPORTUNITY ZONE FAMILY CENTERS. 

15 Title V of the Elementary and Secondary Education 

16 Act of 1965 (20 U.S.C. 7201 et seq.), as amended by sec17 tion 3401, is further amended by inserting after part E 

18 the following: 

19 ‘‘PART F—CHILD OPPORTUNITY ZONE FAMILY 

20 CENTERS 

21 ‘‘SEC. 5751. SHORT TITLE. 

22 ‘‘This part may be cited as the ‘Child Opportunity 

23 Zone Family Center Act’. 
544

•HR 936 IH 

1 ‘‘SEC. 5752. PURPOSE. 

2 ‘‘The purpose of this part is to encourage eligible 

3 partnerships to establish or expand child opportunity zone 

4 family centers in public elementary schools and secondary 

5 schools in order to provide comprehensive support services 

6 for children and their families, and to improve the chil7 dren’s educational, health, mental health, and social out8 comes. 

9 ‘‘SEC. 5753. DEFINITIONS. 

10 ‘‘In this part: 

11 ‘‘(1) CHILD OPPORTUNITY ZONE FAMILY CEN12 TER.—The term ‘child opportunity zone family cen13 ter’ means a school-based or school-linked commu14 nity service center that provides and links children 

15 and their families with comprehensive information, 

16 support, services, and activities to improve the edu17 cation, health, mental health, safety, and economic 

18 well-being of the children and their families. 

19 ‘‘(2) ELIGIBLE PARTNERSHIP.—The term ‘eligi20 ble partnership’ means a partnership—

21 ‘‘(A) that contains—

22 ‘‘(i) at least 1 public elementary 

23 school or secondary school that—

24 ‘‘(I) receives assistance under 

25 title I and for which a measure of 

26 poverty determination is made under 
545

•HR 936 IH 

1 section 1113(a)(5) with respect to a 

2 minimum of 40 percent of the chil3 dren in the school; and 

4 ‘‘(II) demonstrates parent in5 volvement and parent support for the 

6 partnership’s activities; 

7 ‘‘(ii) a local educational agency; 

8 ‘‘(iii) a public agency, other than a 

9 local educational agency, such as a local or 

10 State department of health, mental health, 

11 or social services; 

12 ‘‘(iv) a nonprofit community-based or13 ganization, providing health, mental 

14 health, or social services; 

15 ‘‘(v) a local child care resource and re16 ferral agency; and 

17 ‘‘(vi) a local organization representing 

18 parents; and 

19 ‘‘(B) that may contain—

20 ‘‘(i) an institution of higher education; 

21 and 

22 ‘‘(ii) other public or private nonprofit 

23 entities with experience in providing serv24 ices to disadvantaged families. 
546

•HR 936 IH 

1 ‘‘SEC. 5754. GRANTS AUTHORIZED. 

2 ‘‘(a) IN GENERAL.—The Secretary may award, on a 

3 competitive basis, grants to eligible partnerships to pay 

4 for the Federal share of the cost of establishing and ex5 panding child opportunity zone family centers. 

6 ‘‘(b) DURATION.—The Secretary shall award grants 

7 under this section for periods of 5 years. 

8 ‘‘SEC. 5755. REQUIRED ACTIVITIES. 

9 ‘‘Each eligible partnership receiving a grant under 

10 this part shall use the grant funds— 

11 ‘‘(1) in accordance with the needs assessment 

12 described in section 5756(b)(1), to provide or link 

13 children and their families with information, sup14 port, activities, or services in core areas such as edu15 cation, child care, before- and after-school care and 

16 enrichment programs, health services, mental health 

17 services, family support, nutrition, literacy services, 

18 parenting skills, and dropout prevention; 

19 ‘‘(2) to provide intensive, high-quality, research20 based programs that—

21 ‘‘(A) provide violence prevention education 

22 for families and developmentally appropriate in23 structional services to children (including chil24 dren below the age of compulsory school attend25 ance); and 
547

•HR 936 IH 

1 ‘‘(B) provide effective strategies for nur2 turing and supporting the emotional, social, and 

3 cognitive growth of children; and 

4 ‘‘(3) to provide training, information, and sup5 port to families to enable the families to participate 

6 effectively in their children’s education, and to help 

7 their children meet challenging standards, including 

8 assisting families to—

9 ‘‘(A) understand the applicable account10 ability systems, including State and local con11 tent standards, performance standards, and as12 sessments, their children’s educational perform13 ance in comparison to the standards, and the 

14 steps the school is taking to address the chil15 dren’s needs and to help the children meet the 

16 standards; and 

17 ‘‘(B) communicate effectively with per18 sonnel responsible for providing educational 

19 services to the families’ children, and to partici20 pate in the development and implementation of 

21 school-parent compacts, parent involvement 

22 policies, and school plans. 

23 ‘‘SEC. 5756. APPLICATIONS. 

24 ‘‘(a) IN GENERAL.—Each eligible partnership desir25 ing a grant under this part shall submit an application 
548

•HR 936 IH 

1 to the Secretary at such time, in such manner, and con2 taining such information as the Secretary may require. 

3 ‘‘(b) CONTENTS.—Each application submitted pursu4 ant to subsection (a) shall—

5 ‘‘(1) include a needs assessment, including a de6 scription of how the partnership will ensure that the 

7 activities to be assisted under this part will be tai8 lored to meet the specific needs of the children and 

9 families to be served; 

10 ‘‘(2) describe arrangements that have been for11 malized between the participating public elementary 

12 school or secondary school, and other partnership 

13 members; 

14 ‘‘(3) describe how the partnership will effec15 tively coordinate with the centers under section 1118 

16 and utilize Federal, State, and local sources of fund17 ing that provide assistance to families and their chil18 dren; 

19 ‘‘(4) describe the partnership’s plan to—

20 ‘‘(A) develop and carry out the activities 

21 assisted under this part with extensive partici22 pation of parents, administrators, teachers, 

23 pupil services personnel, social and human serv24 ice agencies, and community organizations and 

25 leaders; and 
549

•HR 936 IH 

1 ‘‘(B) coordinate the activities assisted 

2 under this part with the education reform ef3 forts of the participating public elementary 

4 school or secondary school, and the partici5 pating local educational agency; 

6 ‘‘(5) describe how the partnership will ensure 

7 that underserved populations such as families of stu8 dents with limited English proficiency, and families 

9 of students with disabilities, are effectively involved, 

10 informed, and assisted; 

11 ‘‘(6) describe how the partnership will collect 

12 and analyze data, and will utilize specific perform13 ance measures and indicators to—

14 ‘‘(A) determine the impact of activities as15 sisted under this part as described in section 

16 5759(a); and 

17 ‘‘(B) improve the activities assisted under 

18 this part; and 

19 ‘‘(7) describe how the partnership will protect 

20 the privacy of families and their children partici21 pating in the activities assisted under this part. 

22 ‘‘SEC. 5757. FEDERAL SHARE. 

23 ‘‘The Federal share of the cost of establishing and 

24 expanding child opportunity zone family centers—
550

•HR 936 IH 

1 ‘‘(1) for the first year for which an eligible 

2 partnership receives assistance under this part shall 

3 not exceed 90 percent; 

4 ‘‘(2) for the second such year, shall not exceed 

5 80 percent; 

6 ‘‘(3) for the third such year, shall not exceed 70 

7 percent; 

8 ‘‘(4) for the fourth such year, shall not exceed 

9 60 percent; and 

10 ‘‘(5) for the fifth such year, shall not exceed 50 

11 percent. 

12 ‘‘SEC. 5758. FUNDING. 

13 ‘‘(a) CONTINUATION OF FUNDING.—Each eligible 

14 partnership that receives a grant under this part shall, 

15 after the third year for which the partnership receives 

16 funds through the grant, be eligible to continue to receive 

17 the funds if the Secretary determines that the partnership 

18 has made significant progress in meeting the performance 

19 measures used for the partnership’s local evaluation under 

20 section 5759(a). 

21 ‘‘(b) LIMITATION ON USE OF FUNDS TO OFFSET

22 OTHER PROGRAMS.—Notwithstanding any other provision 

23 of law, none of the funds received under a grant under 

24 this part may be used to pay for expenses related to any 
551

•HR 936 IH 

1 other Federal program, including treating such funds as 

2 an offset against such a Federal program. 

3 ‘‘SEC. 5759. EVALUATIONS AND REPORTS. 

4 ‘‘(a) LOCAL EVALUATIONS.—Each partnership re5 ceiving funds under this part shall conduct annual evalua6 tions and submit to the Secretary reports containing the 

7 results of the evaluations. The reports shall include the 

8 results of the partnership’s performance assessment effec9 tiveness in reaching and meeting the needs of families and 

10 children served under this part, including performance 

11 measures demonstrating—

12 ‘‘(1) improvements in areas such as student 

13 achievement, family participation in schools, and ac14 cess to health care, mental health care, child care, 

15 and family support services, resulting from activities 

16 assisted under this part; and 

17 ‘‘(2) reductions in such areas as violence among 

18 youth, truancy, suspension, and dropout rates, re19 sulting from activities assisted under this part. 

20 ‘‘(b) NATIONAL EVALUATIONS.—The Secretary shall 

21 reserve not more than 3 percent of the amount appro22 priated under this part to carry out a national evaluation 

23 of the effectiveness of the activities assisted under this 

24 part. Such evaluation shall be completed not later than 

25 3 years after the date of enactment of the Child Oppor-
552

•HR 936 IH 

1 tunity Zone Family Center Act, and every year thereafter 

2 and shall be submitted to Congress. 

3 ‘‘(c) EXEMPLARY ACTIVITIES.—The Secretary shall 

4 broadly disseminate information on exemplary activities 

5 developed under this part. 

6 ‘‘SEC. 5760. AUTHORIZATION OF APPROPRIATIONS. 

7 ‘‘There are authorized to be appropriated to carry out 

8 this part $100,000,000 for fiscal year 2004, and such 

9 sums as may be necessary for each of the fiscal years 2005 

10 through 2008.’’.

11 TITLE IV—FAIR START—LIFTING 

12 CHILDREN OUT OF POVERTY 

13 Subtitle A—Expanding the Child 

14 Tax Credit 

15 SEC. 4001. EXPANSION OF CHILD TAX CREDIT; CREDIT 

16 MADE PARTIALLY REFUNDABLE. 

17 (a) INCREASE IN AMOUNT ALLOWED.—Paragraph 

18 (2) of section 24(a) of the Internal Revenue Code of 1986 

19 (relating to child tax credit) is amended to read as follows: 

20 ‘‘(2) PER CHILD AMOUNT.—For purposes of 

21 paragraph (1), the per child amount shall be deter22 mined as follows:

‘‘In the case of any taxable 

year

beginning in—

The per child amount is—

2001 or 2002 ........................................................................... $ 600

2003 ......................................................................................... 700

2004 ......................................................................................... 800

2005 ......................................................................................... 900

2006 or thereafter .................................................................... 1,000.’’.
553

•HR 936 IH 

1 (b) PORTION OF CHILD CREDIT TREATED AS RE2 FUNDABLE.—

3 (1) IN GENERAL.—Paragraph (1) of section 

4 24(d) of the Internal Revenue Code of 1986 (relat5 ing portion of credit refundable) is amended to read 

6 as follows: 

7 ‘‘(1) IN GENERAL.—The aggregate credits al8 lowed to a taxpayer under subpart C shall be in9 creased by the sum of the credits allowable under 

10 this section for all qualifying children of the tax11 payer (determined without regard to this subsection

12 and the limitation under subsection (b)(3) (sub13 section 26(a) for taxable years beginning before 

14 2004)). The amount of the credit allowed under this 

15 subsection shall not be treated as a credit allowed 

16 under this subpart and shall reduce the amount of 

17 credit otherwise allowable under subsection (a) with18 out regard to subsection (b)(3) (subsection 26(a) for 

19 taxable years beginning before 2004).’’. 

20 (2) CONFORMING AMENDMENTS.—

21 (A) Section 24(d) of such Code is amended 

22 by striking paragraphs (2) and (3). 

23 (B) The heading for section 24(d) of such 

24 Code is amended to read as follows: ‘‘ADDI25 TIONAL CREDIT FOR CERTAIN FAMILIES.—’’. 
554

•HR 936 IH 

1 (c) COORDINATION WITH FEDERAL MEANS-TESTED

2 PROGRAMS.—Section 24(d) of the Internal Revenue Code 

3 of 1986 (relating to additional credit for certain families), 

4 as amended by subsection (b), is amended by adding at 

5 the end the following new paragraph: 

6 ‘‘(2) COORDINATION WITH MEANS-TESTED PRO7 GRAMS.—For purposes of any benefits, assistance, 

8 or supportive services under any Federal program or 

9 under any State or local program financed, in whole 

10 or in part, with Federal funds or with State funds, 

11 taken into account under any maintenance of effort 

12 requirements, which imposes income limitations on 

13 eligibility for such program, any refund made to an 

14 individual (or the spouse of an individual) by reason 

15 of this subsection shall not be treated as income 

16 (and shall not be taken into account in determining 

17 resources for the month of its receipt and the fol18 lowing month).’’. 

19 (d) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to taxable years beginning after 

21 December 31, 2002. 
555

•HR 936 IH 

1 Subtitle B—Strengthening the 

2 Earned Income Tax Credit 

3 SEC. 4101. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘Tax Relief for 

5 Working Families Act’’. 

6 SEC. 4102. INCREASED EARNED INCOME TAX CREDIT FOR 2 

7 OR MORE QUALIFYING CHILDREN. 

8 (a) IN GENERAL.—The table in section 32(b)(1)(A) 

9 of the Internal Revenue Code of 1986 (relating to percent10 ages) is amended—

11 (1) in the second item—

12 (A) by striking ‘‘or more’’, and 

13 (B) by striking ‘‘21.06’’ and inserting 

14 ‘‘19.06’’, and 

15 (2) by inserting after the second item the fol16 lowing:

‘‘3 or more qualifying children ..................... 45 ............... 19.06’’. 

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2002. 

20 SEC. 4103. SIMPLIFICATION OF DEFINITION OF EARNED IN21 COME. 

22 (a) IN GENERAL.—Section 32(c)(2)(B) of the Inter23 nal Revenue Code of 1986 (defining earned income) is 

24 amended by striking ‘‘and’’ at the end of clause (iv), by 
556

•HR 936 IH 

1 striking the period at the end of clause (v) and inserting 

2 ‘‘, and’’, and by adding at the end the following: 

3 ‘‘(vi) the requirement under subpara4 graph (A)(i) that an amount be includible 

5 in gross income shall not apply if such 

6 amount is exempt from tax under section 

7 7873 or is derived directly from restricted 

8 and allotted land under the Act of Feb9 ruary 8, 1887 (commonly known as the In10 dian General Allotment Act) (25 U.S.C. 

11 331 et seq.) or from land held under Acts 

12 or treaties containing an exception provi13 sion similar to the Indian General Allot14 ment Act.’’. 

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

16 this section shall apply to amounts received in taxable 

17 years beginning after December 31, 2002. 

18 SEC. 4104. SIMPLIFICATION OF DEFINITION OF CHILD DE19 PENDENT. 

20 (a) REMOVAL OF SUPPORT TEST FOR CERTAIN INDI21 VIDUALS.—Section 152(a) of the Internal Revenue Code 

22 of 1986 (relating to general definition) is amended to read 

23 as follows: 

24 ‘‘(a) GENERAL DEFINITION.—For purposes of this 

25 subtitle—
557

•HR 936 IH 

1 ‘‘(1) DEPENDENT.—The term ‘dependent’ 

2 means—

3 ‘‘(A) any individual described in paragraph 

4 (2) over half of whose support, for the calendar 

5 year in which the taxable year of the taxpayer 

6 begins, was received from the taxpayer (or is 

7 treated under subsection (c) as received from 

8 the taxpayer), or 

9 ‘‘(B) any individual described in subsection 

10 (f). 

11 ‘‘(2) INDIVIDUALS.—An individual is described 

12 in this paragraph if such individual is—

13 ‘‘(A) a brother, sister, stepbrother, or step14 sister of the taxpayer, 

15 ‘‘(B) the father or mother of the taxpayer, 

16 or an ancestor of either, 

17 ‘‘(C) a stepfather or stepmother of the tax18 payer, 

19 ‘‘(D) a son or daughter of a brother or sis20 ter of the taxpayer, 

21 ‘‘(E) a brother or sister of the father or 

22 mother of the taxpayer, 

23 ‘‘(F) a son-in-law, daughter-in-law, father24 in-law, mother-in-law, brother-in-law, or sister25 in-law of the taxpayer, or 
558

•HR 936 IH 

1 ‘‘(G) an individual (other than an indi2 vidual who at any time during the taxable year 

3 was the spouse, determined without regard to 

4 section 7703, of the taxpayer) who, for the tax5 able year of the taxpayer, has as their principal 

6 place of abode the home of the taxpayer and is 

7 a member of the taxpayer’s household.’’.

8 (b) OTHER MODIFICATIONS.—Section 152 of the In9 ternal Revenue Code of 1986 (relating to dependent de10 fined) is amended by adding at the end the following: 

11 ‘‘(f) SUBSECTION (f) DEPENDENTS.—

12 ‘‘(1) IN GENERAL.—An individual is described 

13 in this subsection for the taxable year if such indi14 vidual—

15 ‘‘(A) bears a relationship to the taxpayer 

16 described in paragraph (2), 

17 ‘‘(B) except in the case of an eligible foster 

18 child or as provided in subsection (e), has the 

19 same principal place of abode as the taxpayer 

20 for more than one-half of such taxable year, 

21 and

22 ‘‘(C)(i) has not attained the age of 19 at 

23 the close of the calendar year in which the tax24 able year begins, or 
559

•HR 936 IH 

1 ‘‘(ii) is a student (within the meaning of 

2 section 151(c)(4)) who has not attained the age 

3 of 24 at the close of such calendar year.

4 ‘‘(2) RELATIONSHIP TEST.—An individual bears 

5 a relationship to the taxpayer described in this para6 graph if such individual is—

7 ‘‘(A) a son or daughter of the taxpayer, or 

8 a descendant of either, or 

9 ‘‘(B) a stepson or stepdaughter of the tax10 payer. 

11 ‘‘(3) SPECIAL RULES.—

12 ‘‘(A) 2 OR MORE CLAIMING DEPENDENT.—

13 Except as provided in subparagraph (B), if an 

14 individual may be claimed as a dependent by 2 

15 or more taxpayers (but for this subparagraph) 

16 for a taxable year beginning in the same cal17 endar year, only the taxpayer with the highest 

18 adjusted gross income for such taxable year 

19 shall be allowed the deduction with respect to 

20 such individual. 

21 ‘‘(B) RELEASE OF CLAIM TO EXEMP22 TION.—Subparagraph (A) shall not apply with 

23 respect to an individual if—

24 ‘‘(i) the taxpayer with the highest ad25 justed gross income under subparagraph 
560

•HR 936 IH 

1 (A), for any calendar year signs a written 

2 declaration (in such manner and form as 

3 the Secretary may by regulations pre4 scribe) that such taxpayer will not claim 

5 such individual as a dependent for any tax6 able year beginning in such calendar year, 

7 ‘‘(ii) the other taxpayer provides over 

8 half of such individual’s support for the 

9 calendar year in which the taxable year of 

10 such other taxpayer begins, and 

11 ‘‘(iii) such other taxpayer attaches 

12 such written declaration to such taxpayer’s 

13 return for the taxable year beginning dur14 ing such calendar year.’’. 

15 (c) RULES RELATING TO FOSTER CHILD.—Section 

16 152(b)(2) of the Internal Revenue Code of 1986 (relating 

17 to rules relating to general definition) is amended by strik18 ing ‘‘a foster child’’ and all that follows through ‘‘indi19 vidual)’’ and inserting ‘‘an eligible foster child (as defined 

20 in section 32(c)(3)(B)(iii)) of an individual’’. 

21 (d) EXEMPTION FROM GROSS INCOME TEST.—Sec22 tion 151(c)(3) of the Internal Revenue Code of 1986 (re23 lating to definition of child) is amended by inserting ‘‘or 

24 a descendant of such individual’’ after ‘‘taxpayer’’. 
561

•HR 936 IH 

1 (e) WAIVER OF DEDUCTION FOR DIVORCED PAR2 ENTS.—

3 (1) IN GENERAL.—So much of section 152(e) of 

4 the Internal Revenue Code of 1986 as precedes 

5 paragraph (4) is amended to read as follows: 

6 ‘‘(e) SPECIAL RULES FOR CHILD OF DIVORCED PAR7 ENTS.—

8 ‘‘(1) RELEASE OF CLAIM TO EXEMPTION.—In 

9 the case of a child (as defined in section 151(c)(3)) 

10 of parents—

11 ‘‘(A) who are divorced or legally separated 

12 under a decree of divorce or separate mainte13 nance, 

14 ‘‘(B) who are separated under a written 

15 separation agreement, or 

16 ‘‘(C) who live apart at all times during the 

17 last 6 months of the calendar year, 

18 the custodial parent who is entitled to the deduction 

19 under section 151 for a taxable year with respect to 

20 such child may release such deduction to the non21 custodial parent. 

22 ‘‘(2) PROCEDURE.—The noncustodial parent 

23 may claim a child described in paragraph (1) as a 

24 dependent for the taxable year if—
562

•HR 936 IH 

1 ‘‘(A) the custodial parent signs a written 

2 declaration (in such manner and form as the 

3 Secretary may by regulations prescribe) that 

4 such custodial parent will not claim such child 

5 as a dependent for any taxable year beginning 

6 in such calendar year, 

7 ‘‘(B) the custodial parent and the non8 custodial parent provide over half of such 

9 child’s support for the calendar year in which 

10 the taxable years of such parents begin, and 

11 ‘‘(C) the noncustodial parent attaches such 

12 written declaration to such noncustodial par13 ent’s return for the taxable year beginning dur14 ing such calendar year. 

15 ‘‘(3) DEFINITIONS.—For purposes of this sub16 section—

17 ‘‘(A) CUSTODIAL PARENT.—The term ‘cus18 todial parent’ means, with regard to an indi19 vidual, a parent who has custody of such indi20 vidual for a greater portion of the calendar year 

21 than the noncustodial parent. 

22 ‘‘(B) NONCUSTODIAL PARENT.—The term 

23 ‘noncustodial parent’ means the parent who is 

24 not the custodial parent.’’. 
563

•HR 936 IH 

1 (2) PRE-1985 INSTRUMENTS.—Section 

2 152(e)(4)(A) of such Code (relating to exception for 

3 certain pre-1985 instruments) is amended by strik4 ing ‘‘A child’’ and all that follows through ‘‘non5 custodial parent’’ and inserting ‘‘A noncustodial par6 ent described in paragraph (1) shall be entitled to

7 the deduction under section 151 for a taxable year 

8 with respect to a child ’’. 

9 (f) CONFORMING AMENDMENTS.—

10 (1) Section 1(g)(5)(A) of the Internal Revenue 

11 Code of 1986 is amended by inserting ‘‘as in effect 

12 on the day before the date of the enactment of the 

13 Tax Relief for Working Families Act’’ after 

14 ‘‘152(e)’’. 

15 (2) Section 2(b)(1)(A)(i) of such Code is 

16 amended by striking ‘‘paragraph (2) or (4) of’’. 

17 (3) Section 2(b)(3)(B)(i) of such Code is 

18 amended by striking ‘‘paragraph (9)’’ and inserting 

19 ‘‘paragraph (2)(G)’’. 

20 (4) Section 21(e)(5)(A) of such Code is amend21 ed by striking ‘‘paragraph (2) or (4) of’’.

22 (5) Section 21(e)(5) of such Code is amended 

23 in the matter following subclause (B) by inserting 

24 ‘‘as in effect on the day before the date of the enact-
564

•HR 936 IH 

1 ment of the Tax Relief for Working Families Act’’ 

2 after ‘‘152(e)(1)’’. 

3 (6) Section 32(c)(1)(G) of such Code is amend4 ed by striking ‘‘(3)(D).’’ and inserting ‘‘(1)(C). An 

5 individual whose qualifying child or qualifying chil6 dren are not taken into account under subsection (b) 

7 solely by reason of paragraph (3)(D) shall be treated 

8 as an eligible individual if such individual otherwise 

9 meets the requirements of subparagraph (A)(ii).’’.

10 (7) Section 32(c)(3)(B)(ii) of such Code is 

11 amended by striking ‘‘paragraph (2) or (4) of’’. 

12 (8) Section 35(d)(2) of such Code is amended—

13 (A) by striking ‘‘paragraph (2) or (4) of’’, 

14 and 

15 (B) by inserting ‘‘as in effect on the day 

16 before the date of the enactment of the Tax Re17 lief for Working Families Act’’ after 

18 ‘‘152(e)(1)’’. 

19 (9) Section 51(i)(1)(C) of such Code is amend20 ed by striking ‘‘152(a)(9)’’ and inserting 

21 ‘‘152(a)(2)(G)’’. 

22 (10) Section 152(b)(2) of such Code is amend23 ed by striking ‘‘specified in subsection (a)’’ and in24 serting ‘‘specified in subsection (a)(2) or (f)(2)’’. 
565

•HR 936 IH 

1 (11) Section 152(c) of such Code is amended by 

2 striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’. 

3 (12) Section 7703(b)(1) of such Code is amend4 ed by striking ‘‘paragraph (2) or (4) of’’. 

5 (13) The following provisions of such Code are 

6 each amended by striking ‘‘paragraphs (1) through 

7 (8) of section 152(a)’’ and inserting ‘‘subparagraphs 

8 (A) through (F) of subsection (a)(2) or subsection 

9 (f)(2) of section 152’’: 

10 (A) Section 170(g)(3). 

11 (B) Subparagraphs (A) and (B) of section 

12 51(i)(1).

13 (C) The second sentence of section 

14 213(d)(11). 

15 (D) Section 529(e)(2)(B). 

16 (E) Section 7702B(f)(2)(C)(iii). 

17 (g) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to taxable years beginning after 

19 December 31, 2002. 

20 SEC. 4105. MODIFICATION OF JOINT RETURN REQUIRE21 MENT FOR EARNED INCOME TAX CREDIT. 

22 (a) IN GENERAL.—Section 32(d) of the Internal Rev23 enue Code of 1986 (relating to married individuals) is 

24 amended to read as follows: 

25 ‘‘(d) MARRIED INDIVIDUALS.—
566

•HR 936 IH 

1 ‘‘(1) IN GENERAL.—If the taxpayer is married 

2 at the close of the taxable year, the credit shall be 

3 allowed under subsection (a) only if the taxpayer 

4 and his spouse file a joint return for the taxable 

5 year. 

6 ‘‘(2) MARITAL STATUS.—For purposes of para7 graph (1), an individual legally separated from his 

8 spouse under a decree of divorce or of separate 

9 maintenance shall not be considered as married. 

10 ‘‘(3) CERTAIN MARRIED INDIVIDUALS LIVING

11 APART.—For purposes of paragraph (1), if—

12 ‘‘(A) an individual—

13 ‘‘(i) is married and files a separate re14 turn, and 

15 ‘‘(ii) has a qualifying child who is a 

16 son, daughter, stepson, or stepdaughter of 

17 such individual, and 

18 ‘‘(B) during the last 6 months of such tax19 able year, such individual and such individual’s 

20 spouse do not have the same principal place of 

21 abode, 

22 such individual shall not be considered as married.’’. 

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

24 this section shall apply to taxable years beginning after 

25 December 31, 2002.
567

•HR 936 IH 

1 Subtitle C—Expanding the 

2 Dependent Care Tax Credit 

3 SEC. 4201. DEPENDENT CARE TAX CREDIT. 

4 (a) DEPENDENT CARE SERVICES.—Subpart C of 

5 part IV of subchapter A of chapter 1 of the Internal Rev6 enue Code of 1986 (relating to refundable credits), as 

7 amended by section 4001(b)(1), is amended by redesig8 nating section 36 as section 37 and by inserting after sec9 tion 35 the following new section: 

10 ‘‘SEC. 36. DEPENDENT CARE SERVICES. 

11 ‘‘(a) ALLOWANCE OF CREDIT.—

12 ‘‘(1) IN GENERAL.—In the case of an individual 

13 who maintains a household which includes as a 

14 member 1 or more qualifying individuals, there shall 

15 be allowed as a credit against the tax imposed by 

16 this subtitle for the taxable year an amount equal to 

17 the applicable percentage of the sum of—

18 ‘‘(A) the employment-related expenses paid 

19 by such individual during the taxable year, plus 

20 ‘‘(B) the respite care expenses paid by 

21 such individual during the taxable year. 

22 ‘‘(2) APPLICABLE PERCENTAGE DEFINED.—

23 ‘‘(A) IN GENERAL.—For purposes of para24 graph (1), the term ‘applicable percentage’ 

25 means 50 percent reduced (but not below 20 
568

•HR 936 IH 

1 percent) by 1 percentage point for each full 

2 $1,000 amount by which the taxpayer’s ad3 justed gross income for the taxable year exceeds 

4 $15,000. 

5 ‘‘(B) COST-OF-LIVING ADJUSTMENT.—

6 ‘‘(i) IN GENERAL.—In the case of a 

7 taxable year beginning in a calendar year 

8 after 2002, subparagraph (A) shall be ap9 plied by increasing the $15,000 amount 

10 contained therein by the cost-of-living ad11 justment (as defined in section 1(f)(3)) for 

12 such calendar year determined by sub13 stituting ‘2001’ for ‘1992’ in subparagraph 

14 (B) of section 1(f)(3). 

15 ‘‘(ii) ROUNDING.—If any increase de16 termined under clause (i) is not a multiple 

17 of $10, such increase shall be rounded to 

18 the nearest multiple of $10 (or if such in19 crease is a multiple of $5, such increase 

20 shall be increased to the next highest mul21 tiple of $10). 

22 ‘‘(b) EMPLOYMENT-RELATED EXPENSES.—For pur23 poses of this section—

24 ‘‘(1) DETERMINATION OF ELIGIBLE EX25 PENSES.—
569

•HR 936 IH 

1 ‘‘(A) IN GENERAL.—The term ‘employ2 ment-related expenses’ means amounts paid for 

3 the following expenses, but only if such ex4 penses are incurred to enable the taxpayer to be 

5 gainfully employed for any period for which 

6 there are 1 or more qualifying individuals with 

7 respect to the taxpayer: 

8 ‘‘(i) expenses for household services, 

9 and 

10 ‘‘(ii) expenses for the care of a quali11 fying individual. 

12 Such term shall not include any amount paid 

13 for services outside the taxpayer’s household at 

14 a camp where the qualifying individual stays 

15 overnight and shall not include any respite care 

16 expense taken into account under subsection 

17 (a). 

18 ‘‘(B) EXCEPTION.—Employment-related 

19 expenses described in subparagraph (A) which 

20 are incurred for services outside the taxpayer’s 

21 household shall be taken into account only if in22 curred for the care of—

23 ‘‘(i) a qualifying individual described 

24 in subsection (d)(1), or
570

•HR 936 IH 

1 ‘‘(ii) a qualifying individual (not de2 scribed in subsection (d)(1)) who regularly 

3 spends at least 8 hours each day in the 

4 taxpayer’s household. 

5 ‘‘(C) DEPENDENT CARE CENTERS.—Em6 ployment-related expenses described in subpara7 graph (A) which are incurred for services pro8 vided outside the taxpayer’s household by a de9 pendent care center (as defined in subpara10 graph (D)) shall be taken into account only if—

11 ‘‘(i) such center complies with all ap12 plicable laws and regulations of a State or 

13 unit of local government, and 

14 ‘‘(ii) the requirements of subpara15 graph (B) are met.

16 ‘‘(D) DEPENDENT CARE CENTER DE17 FINED.—For purposes of this paragraph, the 

18 term ‘dependent care center’ means any facility 

19 which—

20 ‘‘(i) provides care for more than 6 in21 dividuals (other than individuals who re22 side at the facility), and

23 ‘‘(ii) receives a fee, payment, or grant 

24 for providing services for any of the indi-
571

•HR 936 IH 

1 viduals (regardless of whether such facility 

2 is operated for profit). 

3 ‘‘(2) DOLLAR LIMIT ON AMOUNT CRED4 ITABLE.—

5 ‘‘(A) IN GENERAL.—The amount of the 

6 employment-related expenses incurred during 

7 any taxable year which may be taken into ac8 count under subsection (a) shall not exceed—

9 ‘‘(i) $3,000 if there is 1 qualifying in10 dividual with respect to the taxpayer for 

11 such taxable year, or

12 ‘‘(ii) $6,000 if there are 2 or more 

13 qualifying individuals with respect to the 

14 taxpayer for such taxable year. 

15 ‘‘(B) REDUCTION.—The amount deter16 mined under clause (i) or (ii) of subparagraph 

17 (A) (whichever is applicable) shall be reduced 

18 by—

19 ‘‘(i) the aggregate amount excludable 

20 from gross income under section 129 for 

21 the taxable year, and 

22 ‘‘(ii) the amount of the respite care 

23 expenses taken into account by the tax24 payer under subsection (a) for the taxable 

25 year. 
572

•HR 936 IH 

1 ‘‘(3) EARNED INCOME LIMITATION.—

2 ‘‘(A) IN GENERAL.—Except as otherwise 

3 provided in this paragraph, the amount of the 

4 employment-related expenses incurred during 

5 any taxable year which may be taken into ac6 count under subsection (a) shall not exceed—

7 ‘‘(i) in the case of an individual who 

8 is not married at the close of such year, 

9 such individual’s earned income for such 

10 year, or 

11 ‘‘(ii) in the case of an individual who 

12 is married at the close of such year, the 

13 lesser of such individual’s earned income or 

14 the earned income of his spouse for such 

15 year. 

16 ‘‘(B) SPECIAL RULE FOR SPOUSE WHO IS

17 A STUDENT OR INCAPABLE OF CARING FOR

18 HIMSELF.—In the case of a spouse who is a 

19 student or a qualified individual described in 

20 subsection (d)(3), for purposes of subparagraph 

21 (A), such spouse shall be deemed for each 

22 month during which such spouse is a full-time 

23 student at an educational institution, or is such 

24 a qualifying individual, to be gainfully employed 

25 and to have earned income of not less than—
573

•HR 936 IH 

1 ‘‘(i) $200 if paragraph (2)(A)(i) ap2 plies for the taxable year, or 

3 ‘‘(ii) $400 if paragraph (2)(A)(ii) ap4 plies for the taxable year. 

5 In the case of any husband and wife, this sub6 paragraph shall apply with respect to only one 

7 spouse for any one month. 

8 ‘‘(c) RESPITE CARE EXPENSES.—For purposes of 

9 this section—

10 ‘‘(1) IN GENERAL.—The term ‘respite care ex11 penses’ means expenses paid (whether or not to en12 able the taxpayer to be gainfully employed) for—

13 ‘‘(A) the care of a qualifying individual—

14 ‘‘(i) who has attained the age of 13, 

15 or 

16 ‘‘(ii) who is under the age of 13 but 

17 has a physical or mental impairment which 

18 results in the individual being incapable of 

19 caring for himself, 

20 during any period when such individual regu21 larly spends at least 8 hours each day in the 

22 taxpayer’s household, or 

23 ‘‘(B) the care (for not more than 14 days 

24 during the calendar year) of a qualifying indi25 vidual described in subparagraph (A) during 
574

•HR 936 IH 

1 any period during which the individual does not 

2 regularly spend at least 8 hours each day in the 

3 taxpayer’s household. 

4 ‘‘(2) DOLLAR LIMIT.—The amount of the res5 pite care expenses incurred during any taxable year 

6 which may be taken into account under subsection 

7 (a) shall not exceed—

8 ‘‘(A) $1,200 if such expenses are incurred 

9 with respect to only 1 qualifying individual for 

10 the taxable year, or

11 ‘‘(B) $2,400 if such expenses are incurred 

12 for 2 or more qualifying individuals for such 

13 taxable year. 

14 ‘‘(d) QUALIFYING INDIVIDUAL.—For purposes of this 

15 section, the term ‘qualifying individual’ means—

16 ‘‘(1) a dependent of the taxpayer who is under 

17 the age of 13 and with respect to whom the taxpayer 

18 is entitled to a deduction under section 151(c), 

19 ‘‘(2) a dependent of the taxpayer who is phys20 ically or mentally incapable of caring for himself, or 

21 ‘‘(3) the spouse of the taxpayer, if he is phys22 ically or mentally incapable of caring for himself. 

23 ‘‘(e) SPECIAL RULES.—For purposes of this sec24 tion—
575

•HR 936 IH 

1 ‘‘(1) MAINTAINING HOUSEHOLD.—An indi2 vidual shall be treated as maintaining a household 

3 for any period only if over half the cost of maintain4 ing the household for such period is furnished by 

5 such individual (or, if such individual is married 

6 during such period, is furnished by such individual 

7 and his spouse). 

8 ‘‘(2) MARRIED COUPLES MUST FILE JOINT RE9 TURN.—If the taxpayer is married at the close of 

10 the taxable year, the credit shall be allowed under 

11 subsection (a) only if the taxpayer and his spouse 

12 file a joint return for the taxable year.

13 ‘‘(3) MARITAL STATUS.—An individual legally 

14 separated from his spouse under a decree of divorce 

15 or of separate maintenance shall not be considered 

16 as married. 

17 ‘‘(4) CERTAIN MARRIED INDIVIDUALS LIVING

18 APART.—If—

19 ‘‘(A) an individual who is married and who 

20 files a separate return—

21 ‘‘(i) maintains as his home a house22 hold that constitutes for more than one23 half of the taxable year the principal place 

24 of abode of a qualifying individual, and 
576

•HR 936 IH 

1 ‘‘(ii) furnishes over half the cost of 

2 maintaining such household during the 

3 taxable year, and

4 ‘‘(B) during the last 6 months of such tax5 able year such individual’s spouse is not a mem6 ber of such household, 

7 such individual shall not be considered as married. 

8 ‘‘(5) SPECIAL DEPENDENCY TEST IN CASE OF

9 DIVORCED PARENTS, ETC.—If—

10 ‘‘(A) section 152(e) applies to any child 

11 with respect to any calendar year, and 

12 ‘‘(B) such child is under the age of 13 or 

13 is physically or mentally incapable of caring for 

14 himself, 

15 in the case of any taxable year beginning in such 

16 calendar year, such child shall be treated as a quali17 fying individual with respect to the custodial parent 

18 (within the meaning of section 152(e)(1) as in effect 

19 on the day before the date of the enactment of the 

20 Tax Relief for Working Families Act), and shall not 

21 be treated as a qualifying individual with respect to 

22 the noncustodial parent. 

23 ‘‘(6) PAYMENTS TO RELATED INDIVIDUALS.—

24 No credit shall be allowed under subsection (a) for 

25 any amount paid by the taxpayer to an individual—
577

•HR 936 IH 

1 ‘‘(A) with respect to whom, for the taxable 

2 year, a deduction under section 151(c) (relating 

3 to deduction for personal exemptions for de4 pendents) is allowable either to the taxpayer or 

5 his spouse, or 

6 ‘‘(B) who is a child of the taxpayer (within 

7 the meaning of section 151(c)(3)) who has not 

8 attained the age of 19 at the close of the tax9 able year.

10 For purposes of this paragraph, the term ‘taxable 

11 year’ means the taxable year of the taxpayer in 

12 which the service is performed. 

13 ‘‘(7) STUDENT.—The term ‘student’ means an 

14 individual who during each of 5 calendar months 

15 during the taxable year is a full-time student at an 

16 educational organization. 

17 ‘‘(8) EDUCATIONAL ORGANIZATION.—The term 

18 ‘educational organization’ means an educational or19 ganization described in section 170(b)(1)(A)(ii). 

20 ‘‘(9) IDENTIFYING INFORMATION REQUIRED

21 WITH RESPECT TO SERVICE PROVIDER.—No credit 

22 shall be allowed under subsection (a) for any amount 

23 paid to any person unless—
578

•HR 936 IH 

1 ‘‘(A) the name, address, and taxpayer 

2 identification number of such person are in3 cluded on the return claiming the credit, or 

4 ‘‘(B) if such person is an organization de5 scribed in section 501(c)(3) and exempt from 

6 tax under section 501(a), the name and address 

7 of such person are included on the return 

8 claiming the credit. 

9 In the case of a failure to provide the information 

10 required under the preceding sentence, the preceding 

11 sentence shall not apply if it is shown that the tax12 payer exercised due diligence in attempting to pro13 vide the information so required. 

14 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

15 such regulations as may be necessary to carry out the pur16 poses of this section.’’. 

17 (b) CONFORMING AMENDMENTS.—

18 (1) Section 21 of such Code is repealed. 

19 (2) Section 23(f)(1) of such Code, section 

20 129(a)(2)(C) of such Code, and section 35(g)(6) are 

21 each amended by striking ‘‘section 21(e)’’ and in22 serting ‘‘section 36(e)’’. 

23 (3) Section 129(b)(2) of such Code is amended 

24 by striking ‘‘section 21(d)(2)’’ and inserting ‘‘section 

25 36(b)(3)(B)’’. 
579

•HR 936 IH 

1 (4) Section 129(e)(1) of such Code is amended 

2 by striking ‘‘under section 21(b)(2) (relating to ex3 penses for household and dependent care services 

4 necessary for gainful employment)’’ and inserting 

5 ‘‘or respite care services under section 36 (relating 

6 to dependent care services)’’. 

7 (5) Section 213(e) of such Code is amended by 

8 striking ‘‘section 21’’ and inserting ‘‘section 36’’. 

9 (6) Section 6213(g)(2)(H) of such Code is 

10 amended by striking ‘‘section 21 (related to expenses 

11 for household and dependent care services necessary 

12 for gainful employment)’’ and inserting ‘‘section 36 

13 (relating to dependent care services)’’. 

14 (7) Section 6213(g)(2)(L) of such Code is 

15 amended by striking ‘‘21, 24 or 32’’ and inserting 

16 ‘‘24, 32, or 36’’. 

17 (c) TECHNICAL AMENDMENTS.—(1) The table of sec18 tions for subpart C of part IV of subchapter A of chapter 

19 1 of such Code is amended by striking the item relating 

20 to section 36 and inserting the following:

‘‘Sec. 36. Dependent care services. 

‘‘Sec. 37. Overpayments of tax.’’.

21 (2) The table of sections for subpart A of such part 

22 IV is amended by striking the item relating to section 21. 
580

•HR 936 IH 

1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2002.

4 TITLE V—FAIR START—SUPPORT 

5 TO PROMOTE WORK AND RE6 DUCE POVERTY 

7 Subtitle A—Gateways Grant 

8 Program 

9 SEC. 5001. GATEWAYS GRANT PROGRAM. 

10 (a) PURPOSES.—The purposes of this section are 

11 to—

12 (1) inform low-income families with children 

13 about programs available to families leaving welfare 

14 and other programs to support low-income families 

15 with children; 

16 (2) provide incentives to States and counties to 

17 improve and coordinate application and renewal pro18 cedures for low-income family with children support 

19 programs; and 

20 (3) track the extent to which low-income fami21 lies with children receive the benefits and services 

22 for which they are eligible. 

23 (b) DEFINITIONS.—In this section: 

24 (1) LOCALITY.—The term locality means a mu25 nicipality that does not administer a temporary as-
581

•HR 936 IH 

1 sistance for needy families program funded under 

2 part A of title IV of the Social Security Act (42 

3 U.S.C. 601 et seq.) (in this section referred to as 

4 ‘‘TANF’’). 

5 (2) LOW-INCOME FAMILY WITH CHILDREN SUP6 PORT PROGRAM.—The term ‘‘low-income family with 

7 children support program’’ means a program de8 signed to provide low-income families with assistance 

9 or benefits to enable the family to become self-suffi10 cient and includes—

11 (A) TANF; 

12 (B) the food stamp program established 

13 under the Food Stamp Act of 1977 (7 U.S.C. 

14 2011 et seq.) (in this section referred to as 

15 ‘‘food stamps’’); 

16 (C) the medicaid program funded under 

17 title XIX of the Social Security Act (42 U.S.C. 

18 1396 et seq.); 

19 (D) the State children’s health insurance 

20 program (SCHIP) funded under title XXI of 

21 the Social Security Act (42 U.S.C. 1397aa et 

22 seq.); 

23 (E) the child care program funded under 

24 the Child Care Development Block Grant Act of 

25 1990 (42 U.S.C. 9858 et seq.); 
582

•HR 936 IH 

1 (F) the child support program funded 

2 under part D of title IV of the Social Security 

3 Act (42 U.S.C. 651 et seq.); 

4 (G) the earned income tax credit under 

5 section 32 of the Internal Revenue Code of 

6 1986; 

7 (H) the low-income home energy assistance 

8 program (LIHEAP) established under the Low9 Income Home Energy Assistance Act of 1981 

10 (42 U.S.C 8621 et seq.); 

11 (I) the special supplemental nutrition pro12 gram for women, infants, and children (WIC) 

13 established under section 17 of the Child Nutri14 tion Act of 1966 (42 U.S.C. 1786); 

15 (J) programs under the Workforce Invest16 ment Act of 1998 (29 U.S.C. 2801 et seq.); and 

17 (K) any other Federal or State funded pro18 gram designed to provide family and work sup19 port to low-income families with children. 

20 (3) NONPROFIT.—The term ‘‘nonprofit’’, as ap21 plied to a school, agency, organization, or institution 

22 means a school, agency, organization, or institution 

23 owned and operated by 1 or more nonprofit corpora24 tions or associations, no part of the net earnings of 
583

•HR 936 IH 

1 which inures, or may lawfully inure, to the benefit 

2 of any private shareholder or individual. 

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

4 the Secretary of Health and Human Services. 

5 (5) STATE.—The term ‘‘State’’ means each of 

6 the several States of the United States, the District 

7 of Columbia, the Commonwealth of Puerto Rico, 

8 American Samoa, Guam, and the United States Vir9 gin Islands. 

10 (c) AUTHORIZATION OF GRANTS.—

11 (1) STATES AND COUNTIES.—

12 (A) IN GENERAL.—The Secretary is au13 thorized to award grants to States and counties 

14 to pay the Federal share of the costs involved 

15 in improving the administration of low-income 

16 family with children support programs, includ17 ing simplifying application, recertification, re18 porting, and verification rules. 

19 (B) FEDERAL SHARE.—The Federal share 

20 shall be 80 percent. 

21 (2) NONPROFITS AND LOCALITIES.—The Sec22 retary is authorized to award grants to nonprofits 

23 and localities to distribute information about and de24 velop service centers for low-income family with chil25 dren support programs.
584

•HR 936 IH 

1 (d) GRANT APPROVAL CRITERIA.—

2 (1) IN GENERAL.—The Secretary, in consulta3 tion with the Secretary of Agriculture, shall establish 

4 criteria for approval of an application for a grant 

5 under this section that include consideration of— 

6 (A) an applicant’s record of serving low-in7 come populations; 

8 (B) an applicant’s ability to reach hard-to9 serve populations; 

10 (C) the level of innovation in the appli11 cant’s grant proposal; and 

12 (D) any partnerships between the public 

13 and private sector in the applicant’s grant pro14 posal. 

15 (2) SEPARATE CRITERIA.—Separate criteria 

16 shall be established for the grants authorized under 

17 paragraphs (1) and (2) of subsection (c). 

18 (e) USES OF FUNDS.—

19 (1) STATES AND COUNTIES.—

20 (A) IMPROVEMENTS IN PROGRAMS.—

21 Grants awarded to States and counties under 

22 subsection (c)(1) shall be used to—

23 (i) simplify low-income family with 

24 children support program application, re-
585

•HR 936 IH 

1 certification, reporting, and verification 

2 rules; 

3 (ii) create uniformity in eligibility cri4 teria for low-income family with children 

5 support programs; 

6 (iii) develop options for families to 

7 apply for low-income family with children 

8 support programs through the telephone, 

9 mail, facsimile, Internet, or electronic mail, 

10 and submit any recertifications or reports 

11 required for such families through these 

12 options; 

13 (iv) co-locate eligibility workers for 

14 various low-income family with children 

15 support programs at strategically located 

16 sites; and 

17 (v) develop or enhance one-stop serv18 ice centers for low-income family with chil19 dren support programs, including estab20 lishing evening and weekend hours at these 

21 centers. 

22 (B) CUSTOMER SURVEYS.—

23 (i) IN GENERAL.—A grant awarded to 

24 a State or county under subsection (c)(1) 
586

•HR 936 IH 

1 shall be used to carry out a customer sur2 vey. 

3 (ii) MODEL SURVEYS.—The customer 

4 survey under clause (i) shall be modeled 

5 after a form developed by the Secretary 

6 under subsection (g). 

7 (iii) REPORTS TO SECRETARY.—Not 

8 later than 1 year after a State or county 

9 is awarded a grant under subsection (c)(1), 

10 and annually thereafter, the State or coun11 ty shall submit a report to the Secretary 

12 detailing the results of the customer survey 

13 carried out under clause (i). 

14 (iv) REPORTS TO PUBLIC.—A State or 

15 county receiving a grant under subsection 

16 (c)(1) and the Secretary shall make the re17 port required under clause (iii) available to 

18 the public. 

19 (v) PUBLIC COMMENT.—A State or 

20 county receiving a grant under subsection 

21 (c)(1) shall accept public comments and 

22 hold public hearings on the report made 

23 available under clause (iv). 

24 (C) TRACKING SYSTEMS.—
587

•HR 936 IH 

1 (i) IN GENERAL.—A grant awarded to 

2 a State or county under subsection (c)(1) 

3 shall be used to implement a tracking sys4 tem to determine the level of participation 

5 in low-income family with children support 

6 programs of the eligible population. 

7 (ii) REPORTS.—Not later than 1 year 

8 after a State or county is awarded a grant 

9 under subsection (c)(1), and annually 

10 thereafter, the State or county shall submit 

11 a report to the Secretary detailing the ef12 fectiveness of the tracking system imple13 mented under clause (i). 

14 (D) REPORTING.—A State or county 

15 awarded a grant under subsection (c)(1) shall 

16 adopt the most favorable options available 

17 under Federal law to reduce or eliminate re18 quirements for low-income families receiving as19 sistance under TANF or food stamps to report 

20 changes in income, residence, or employment, 

21 including such requirements as they relate to 

22 the determination of State expenditures to meet 

23 TANF maintenance of effort requirements.
588

•HR 936 IH 

1 (E) IN-PERSON INTERVIEWS.—A State or 

2 county awarded a grant under subsection 

3 (c)(1)—

4 (i) may expend funds made available 

5 under the grant to provide for reporting 

6 and recertification procedures through the 

7 telephone, mail, facsimile, Internet, or elec8 tronic mail; and 

9 (ii) shall adopt the most favorable op10 tions available under Federal law to reduce 

11 or eliminate requirements for in-person 

12 interviews for redeterminations of eligi13 bility for TANF or food stamps. 

14 (F) SHARING DOCUMENTATION AND

15 VERIFICATION INFORMATION.—A grant award16 ed to a State or county under subsection (c)(1) 

17 shall be used to develop procedures by which—

18 (i) a low-income family is relieved of 

19 the requirement to present documentation 

20 to establish eligibility for various low-in21 come family with children support pro22 grams where information concerning the 

23 family’s income exists in State databases 

24 and the family is provided adequate oppor-
589

•HR 936 IH 

1 tunity to review, correct, and contest such 

2 information; 

3 (ii) a low-income family is given the 

4 option to present the same documentation 

5 to establish eligibility for various low-in6 come family with children support pro7 grams; and 

8 (iii) verification of the documentation 

9 presented under clause (ii) is shared 

10 among agencies with responsibility for the 

11 administration of low-income family with 

12 children support programs. 

13 (G) JURISDICTION-WIDE IMPLEMENTA14 TION.—

15 (i) IN GENERAL.—A grant awarded to 

16 a State or county under subsection (c)(1) 

17 shall be used for activities throughout the 

18 jurisdiction. 

19 (ii) EXCEPTION.—A State or county 

20 awarded a grant under subsection (c)(1) 

21 may use grant funds to develop one-stop 

22 service centers and telephone, mail, fac23 simile, Internet, or electronic mail applica24 tion and renewal procedures for low-income 

25 family with children support programs 
590

•HR 936 IH 

1 without regard to the requirements of 

2 clause (i). 

3 (H) SUPPLEMENT NOT SUPPLANT.—Funds 

4 provided to a State or county under a grant 

5 awarded under subsection (c)(1) shall be used 

6 to supplement and not supplant other State or 

7 county public funds expended to provide sup8 port services for low-income families. 

9 (2) NONPROFITS AND LOCALITIES.—A grant 

10 awarded to a nonprofit or locality under subsection 

11 (c)(2) shall be used to—

12 (A) develop one-stop service centers for 

13 low-income family with children support pro14 grams in cooperation with States and counties; 

15 and 

16 (B) provide information about and refer17 rals to low-income family with children support 

18 programs through the dissemination of mate19 rials at strategic locations, including schools, 

20 clinics, and shopping locations. 

21 (f) APPLICATION.—

22 (1) IN GENERAL.—Each applicant desiring a 

23 grant under paragraph (1) or (2) of subsection (c) 

24 shall submit an application to the Secretary at such 
591

•HR 936 IH 

1 time, in such manner, and accompanied by such in2 formation as the Secretary may reasonably require. 

3 (2) STATES AND COUNTIES.—

4 (A) NON-FEDERAL SHARE.—Each State or 

5 county applicant shall provide assurances that 

6 the applicant will pay the non-Federal share of 

7 the activities for which a grant is sought. 

8 (B) CERTIFICATION PERIODS.—

9 (i) IN GENERAL.—In order to receive 

10 a grant under subsection (c)(1), each State 

11 or county applicant shall provide assur12 ances that the applicant will establish cer13 tification periods of at least 1 year for 

14 TANF and food stamps. 

15 (ii) EXCEPTION.—The certification 

16 period under clause (i) may be extended to 

17 2 years for households in which all mem18 bers of the household are elderly or dis19 abled. 

20 (C) PARTNERSHIPS.—Each State or coun21 ty applicant shall submit a memorandum of un22 derstanding demonstrating that the applicant 

23 has entered into a partnership to coordinate its 

24 efforts under the grant with the efforts of other 

25 State and county agencies that have responsi-
592

•HR 936 IH 

1 bility for providing low-income families with as2 sistance or benefits. 

3 (g) DUTIES OF THE SECRETARY.—

4 (1) SURVEY FORM.—The Secretary, in coopera5 tion with other relevant agencies, shall develop a 

6 customer survey form to determine whether low-in7 come families—

8 (A) encounter any impediments in applying 

9 for or renewing their participation in low-in10 come family with children support programs; 

11 and 

12 (B) are unaware of low-income family with 

13 children support programs for which they are 

14 eligible. 

15 (2) REPORTS.—

16 (A) ANNUAL REPORTS.—Not later than 1 

17 year after the date of enactment of this Act, 

18 and annually thereafter, the Secretary shall 

19 submit a report to Congress describing the uses 

20 of grant funds awarded under this section. 

21 (B) RESULTS OF TRACKING SYSTEMS AND

22 SURVEYS.—The Secretary shall submit a report 

23 to Congress detailing the results of the tracking 

24 systems implemented and customer surveys car25 ried out by States and counties under sub-
593

•HR 936 IH 

1 section (e) as the information becomes avail2 able. 

3 (h) MISCELLANEOUS.—

4 (1) MATCHING FUNDS.—

5 (A) IN GENERAL.—Matching funds re6 quired from a State or county awarded a grant 

7 under subsection (c)(1) may—

8 (i) include in-kind services and ex9 penditures by municipalities and private 

10 entities; and 

11 (ii) be considered a qualified State ex12 penditure for purposes of determining 

13 whether the State has satisfied the mainte14 nance of effort requirements of the tem15 porary assistance for needy families pro16 gram under section 409(a)(7) of the Social 

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

18 (B) CONFORMING AMENDMENT.—Section 

19 409(a)(7)(B)(iv) of the Social Security Act (42 

20 U.S.C. 609(a)(7)(B)(iv)) is amended by striking 

21 ‘‘title.’’ and inserting ‘‘title, and also includes 

22 State funds which are expended as a condition 

23 of receiving Federal funds under a grant made 

24 under section 5001 of the Leave No Child Be25 hind Act of 2003.’’.
594

•HR 936 IH 

1 (2) LIMITATION ON EXPENDITURES.—

2 (A) IN GENERAL.—Subject to paragraph 

3 3—

4 (i) not more than 20 percent of a 

5 grant awarded under subsection (c) shall 

6 be expended on customer surveys or track7 ing systems; and 

8 (ii) except as provided in subpara9 graph (B), not more than 15 percent of a 

10 grant awarded under subsection (c) shall 

11 be expended on administrative costs. 

12 (B) AUTOMATION EXCEPTION.—The limi13 tation on administrative expenditures under 

14 subparagraph (A)(ii) shall not apply to expendi15 tures for the acquisition, implementation, or 

16 maintenance of information technology, comput17 erization, or other automated data processing to 

18 accomplish the purposes of a grant awarded 

19 under subsection (c). 

20 (3) REVERSION OF FUNDS.—Any funds not ex21 pended by a grantee within 2 years after awarded a 

22 grant shall be available for redistribution among 

23 other grantees in such manner and amount as the 

24 Secretary may determine, unless the Secretary ex-
595

•HR 936 IH 

1 tends by regulation the 2-year time period to expend 

2 funds. 

3 (4) NONAPPORTIONMENT.—Notwithstanding 

4 any other provision of law, a State, county, locality, 

5 or nonprofit awarded a grant under subsection (c) is 

6 not required to apportion the costs of providing in7 formation about low-income family with children 

8 support programs among all low-income family with 

9 children support programs. 

10 (5) ADMINISTRATIVE COSTS OF THE SEC11 RETARY.—Not more than 5 percent of the funds ap12 propriated to carry out this section shall be ex13 pended on administrative costs of the Secretary. 

14 (i) AUTHORIZATION OF APPROPRIATIONS.—There is 

15 authorized to be appropriated to carry out this section 

16 $500,000,000 for the period of fiscal years 2004 through 

17 2008. 

18 Subtitle B—Support From Both 

19 Parents 

20 CHAPTER 1—CHILD SUPPORT 

21 DISTRIBUTION 

22 SEC. 5101. SHORT TITLE. 

23 This subtitle may be cited as the ‘‘Child Support Dis24 tribution Act’’. 
596

•HR 936 IH 

1 Subchapter A—Distribution of Child Support 

2 SEC. 5111. DISTRIBUTION OF CHILD SUPPORT COLLECTED 

3 BY STATES ON BEHALF OF CHILDREN RE4 CEIVING CERTAIN WELFARE BENEFITS. 

5 (a) MODIFICATION OF RULE REQUIRING ASSIGN6 MENT OF SUPPORT RIGHTS AS A CONDITION OF RECEIV7 ING TANF.—Section 408(a)(3) of the Social Security Act 

8 (42 U.S.C. 608(a)(3)) is amended to read as follows: 

9 ‘‘(3) NO ASSISTANCE FOR FAMILIES NOT AS10 SIGNING CERTAIN SUPPORT RIGHTS TO THE

11 STATE.—A State to which a grant is made under 

12 section 403 shall require, as a condition of providing 

13 assistance to a family under the State program 

14 funded under this part, that a member of the family 

15 assign to the State any rights the family member 

16 may have (on behalf of the family member or of any 

17 other person for whom the family member has ap18 plied for or is receiving such assistance) to support 

19 from any other person, not exceeding the total 

20 amount of assistance so provided to the family, 

21 which accrues during the period that the family re22 ceives assistance under the program.’’. 

23 (b) INCREASING CHILD SUPPORT PAYMENTS TO

24 FAMILIES AND SIMPLIFYING CHILD SUPPORT DISTRIBU25 TION RULES.—
597

•HR 936 IH 

1 (1) DISTRIBUTION RULES.—

2 (A) IN GENERAL.—Section 457(a) of such 

3 Act (42 U.S.C. 657(a)) is amended to read as 

4 follows: 

5 ‘‘(a) IN GENERAL.—Subject to subsections (e) and 

6 (f), the amounts collected on behalf of a family as support 

7 by a State pursuant to a plan approved under this part 

8 shall be distributed as follows: 

9 ‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the 

10 case of a family receiving assistance from the State, 

11 the State shall—

12 ‘‘(A) pay to the Federal Government the 

13 Federal share of the amount collected, subject 

14 to paragraph (3)(A); 

15 ‘‘(B) retain, or pay to the family, the State 

16 share of the amount collected, subject to para17 graph (3)(B); and 

18 ‘‘(C) pay to the family any remaining 

19 amount. 

20 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS21 SISTANCE.—In the case of a family that formerly re22 ceived assistance from the State: 

23 ‘‘(A) CURRENT SUPPORT.—To the extent 

24 that the amount collected does not exceed the 
598

•HR 936 IH 

1 current support amount, the State shall pay the 

2 amount to the family. 

3 ‘‘(B) ARREARAGES.—To the extent that 

4 the amount collected exceeds the current sup5 port amount, the State—

6 ‘‘(i) shall first pay to the family the 

7 excess amount, to the extent necessary to 

8 satisfy support arrearages not assigned 

9 pursuant to section 408(a)(3); 

10 ‘‘(ii) if the amount collected exceeds 

11 the amount required to be paid to the fam12 ily under clause (i), shall—

13 ‘‘(I) pay to the Federal Govern14 ment, the Federal share of the excess 

15 amount described in this clause, sub16 ject to paragraph (3)(A); and 

17 ‘‘(II) retain, or pay to the family, 

18 the State share of the excess amount 

19 described in this clause, subject to 

20 paragraph (3)(B); and 

21 ‘‘(iii) shall pay to the family any re22 maining amount. 

23 ‘‘(3) LIMITATIONS.—

24 ‘‘(A) FEDERAL REIMBURSEMENTS.—The 

25 total of the amounts paid by the State to the 
599

•HR 936 IH 

1 Federal Government under paragraphs (1) and 

2 (2) of this subsection with respect to a family 

3 shall not exceed the Federal share of the 

4 amount assigned with respect to the family pur5 suant to section 408(a)(3). 

6 ‘‘(B) STATE REIMBURSEMENTS.—The 

7 total of the amounts retained by the State 

8 under paragraphs (1) and (2) of this subsection 

9 with respect to a family shall not exceed the 

10 State share of the amount assigned with respect 

11 to the family pursuant to section 408(a)(3). 

12 ‘‘(4) FAMILIES THAT NEVER RECEIVED ASSIST13 ANCE.—In the case of any other family, the State 

14 shall pay the amount collected to the family. 

15 ‘‘(5) FAMILIES UNDER CERTAIN AGREE16 MENTS.—Notwithstanding paragraphs (1) through 

17 (4), in the case of an amount collected for a family 

18 in accordance with a cooperative agreement under 

19 section 454(33), the State shall distribute the 

20 amount collected pursuant to the terms of the agree21 ment. 

22 ‘‘(6) STATE FINANCING OPTIONS.—To the ex23 tent that the State share of the amount payable to 

24 a family for a month pursuant to paragraph (2)(B) 

25 of this subsection exceeds the amount that the State 
600

•HR 936 IH 

1 estimates (under procedures approved by the Sec2 retary) would have been payable to the family for 

3 the month pursuant to former section 457(a)(2) (as 

4 in effect for the State immediately before the date 

5 this subsection first applies to the State) if such 

6 former section had remained in effect, the State may 

7 elect to use the grant made to the State under sec8 tion 403(a) to pay the amount, or to have the pay9 ment considered a qualified State expenditure for 

10 purposes of section 409(a)(7), but not both. 

11 ‘‘(7) STATE OPTION TO PASS THROUGH ADDI12 TIONAL SUPPORT WITH FEDERAL FINANCIAL PAR13 TICIPATION.—

14 ‘‘(A) IN GENERAL.—Notwithstanding 

15 paragraphs (1) and (2), a State shall not be re16 quired to pay to the Federal Government the 

17 Federal share of an amount collected on behalf 

18 of a family that is not a recipient of assistance 

19 under the State program funded under part A, 

20 to the extent that the State pays the amount to 

21 the family. 

22 ‘‘(B) RECIPIENTS OF TANF FOR LESS

23 THAN 5 YEARS.—

24 ‘‘(i) IN GENERAL.—Notwithstanding 

25 paragraphs (1) and (2), a State shall not 
601

•HR 936 IH 

1 be required to pay to the Federal Govern2 ment the Federal share of an amount col3 lected on behalf of a family that is a recipi4 ent of assistance under the State program 

5 funded under part A and that has received 

6 the assistance for not more than 5 years 

7 after the date of enactment of this para8 graph, to the extent that—

9 ‘‘(I) the State pays the amount 

10 to the family; and 

11 ‘‘(II) subject to clause (ii), the 

12 amount is disregarded in determining 

13 the amount and type of the assistance 

14 provided to the family. 

15 ‘‘(ii) LIMITATION.—Of the amount 

16 disregarded as described in clause (i)(II), 

17 the maximum amount that may be taken 

18 into account for purposes of clause (i) shall 

19 not exceed $400 per month, except that, in 

20 the case of a family that includes 2 or 

21 more children, the State may elect to in22 crease the maximum amount to not more 

23 than $600 per month.’’. 

24 (B) APPROVAL OF ESTIMATION PROCE25 DURES.—Not later than October 1, 2003, the 
602

•HR 936 IH 

1 Secretary of Health and Human Services, in 

2 consultation with the States (as defined for 

3 purposes of part D of title IV of the Social Se4 curity Act), shall establish the procedures to be 

5 used to make the estimate described in section 

6 457(a)(6) of such Act. 

7 (2) CURRENT SUPPORT AMOUNT DEFINED.—

8 Section 457(c) of such Act (42 U.S.C. 657(c)) is 

9 amended by adding at the end the following: 

10 ‘‘(5) CURRENT SUPPORT AMOUNT.—The term 

11 ‘current support amount’ means, with respect to 

12 amounts collected as support on behalf of a family, 

13 the amount designated as the monthly support obli14 gation of the noncustodial parent in the order re15 quiring the support.’’. 

16 (c) BAN ON RECOVERY OF MEDICAID COSTS FOR

17 CERTAIN BIRTHS.—Section 454 of such Act (42 U.S.C. 

18 654) is amended—

19 (1) by striking ‘‘and’’ at the end of paragraph 

20 (32); 

21 (2) by striking the period at the end of para22 graph (33) and inserting ‘‘; and’’; and 

23 (3) by inserting after paragraph (33) the fol24 lowing:
603

•HR 936 IH 

1 ‘‘(34) provide that the State shall not use the 

2 State program operated under this part to collect 

3 any amount owed to the State by reason of costs in4 curred under the State plan approved under title 

5 XIX for the birth of a child for whom support rights 

6 have been assigned pursuant to section 408(a)(3), 

7 471(a)(17), or 1912.’’. 

8 (d) STATE OPTION TO DISCONTINUE CERTAIN SUP9 PORT ASSIGNMENTS.—Section 457(b) of such Act (42 

10 U.S.C. 657(b)) is amended by striking ‘‘shall’’ and insert11 ing ‘‘may’’. 

12 (e) CONFORMING AMENDMENTS.—

13 (1) Section 409(a)(7)(B)(i)(I)(aa) of such Act 

14 (42 U.S.C. 609(a)(7)(B)(i)(I)(aa)) is amended by 

15 striking ‘‘457(a)(1)(B)’’ and inserting ‘‘457(a)(1)’’. 

16 (2) Section 404(a) of such Act (42 U.S.C. 

17 604(a)) is amended—

18 (A) by striking ‘‘or’’ at the end of para19 graph (1); 

20 (B) by striking the period at the end of 

21 paragraph (2) and inserting ‘‘; or’’; and 

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

23 ‘‘(3) to fund payment of an amount pursuant to 

24 clause (i) or (ii) of section 457(a)(2)(B), but only to 

25 the extent that the State properly elects under sec-
604

•HR 936 IH 

1 tion 457(a)(6) to use the grant to fund the pay2 ment.’’. 

3 (3) Section 409(a)(7)(B)(i) of such Act (42 

4 U.S.C. 609(a)(7)(B)(i)) is amended by adding at the 

5 end the following: 

6 ‘‘(V) PORTIONS OF CERTAIN

7 CHILD SUPPORT PAYMENTS COL8 LECTED ON BEHALF OF AND DISTRIB9 UTED TO FAMILIES NO LONGER RE10 CEIVING ASSISTANCE.—Any amount 

11 paid by a State pursuant to clause (i) 

12 or (ii) of section 457(a)(2)(B), but 

13 only to the extent that the State prop14 erly elects under section 457(a)(6) to 

15 have the payment considered a quali16 fied State expenditure.’’. 

17 (f) EFFECTIVE DATE.—

18 (1) IN GENERAL.—The amendments made by 

19 this section shall take effect on October 1, 2008, 

20 and shall apply to payments under parts A and D 

21 of title IV of the Social Security Act for calendar 

22 quarters beginning on or after such date, and with23 out regard to whether regulations to implement such 

24 amendments (in the case of State programs operated 

25 under such part D) are promulgated by such date. 
605

•HR 936 IH 

1 (2) STATE OPTION TO ACCELERATE EFFECTIVE

2 DATE.—In addition, a State may elect to have the 

3 amendments made by this section apply to the State 

4 and to amounts collected by the State, on and after 

5 such date as the State may select that is after the 

6 date of enactment of this Act and before October 1, 

7 2008. 

8 Subchapter B—Review and Adjustment of 

9 Child Support Orders 

10 SEC. 5116. MANDATORY REVIEW AND MODIFICATION OF 

11 CHILD SUPPORT ORDERS FOR TANF RECIPI12 ENTS. 

13 (a) REVIEW EVERY 3 YEARS.—Section 

14 466(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 

15 666(a)(10)(A)(i)) is amended in the matter preceding sub16 clause (I)—

17 (1) by striking ‘‘or,’’ and inserting ‘‘or’’; and 

18 (2) by striking ‘‘upon the request of the State 

19 agency under the State plan or of either parent,’’. 

20 (b) REVIEW UPON LEAVING TANF.—

21 (1) NOTICE OF CERTAIN FAMILIES LEAVING

22 TANF.—Section 402(a) of such Act (42 U.S.C. 

23 602(a)) is amended by adding at the end the fol24 lowing: 
606

•HR 936 IH 

1 ‘‘(8) CERTIFICATION THAT THE CHILD SUP2 PORT ENFORCEMENT PROGRAM WILL BE PROVIDED

3 NOTICE OF CERTAIN FAMILIES LEAVING TANF PRO4 GRAM.—A certification by the chief executive officer 

5 of the State that the State has established proce6 dures to ensure that the State agency administering 

7 the child support enforcement program under the 

8 State plan approved under part D will be provided 

9 notice of the impending discontinuation of assistance 

10 to an individual under the State program funded 

11 under this part if the individual has custody of a 

12 child whose other parent is alive and not living at 

13 home with the child.’’. 

14 (2) REVIEW.—Section 466(a)(10) of such Act 

15 (42 U.S.C. 666(a)(10)) is amended—

16 (A) in the paragraph heading, by striking 

17 ‘‘UPON REQUEST’’; 

18 (B) in subparagraph (C), by striking ‘‘this 

19 paragraph’’ and inserting ‘‘subparagraph (A) or 

20 (B)’’; and 

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

22 ‘‘(D) REVIEW UPON LEAVING TANF.—On 

23 receipt of a notice issued pursuant to section 

24 402(a)(8), the State child support enforcement 

25 agency shall—
607

•HR 936 IH 

1 ‘‘(i) examine the case file involved; 

2 ‘‘(ii) determine what actions (if any) 

3 are needed to locate any noncustodial par4 ent, establish paternity or a support order, 

5 or enforce a support order in the case; 

6 ‘‘(iii) immediately take the actions; 

7 and 

8 ‘‘(iv) if there is a support order in the 

9 case which the State has not reviewed dur10 ing the 1-year period ending with receipt 

11 of the notice, notwithstanding subpara12 graph (B), review and, if appropriate, ad13 just the order in accordance with subpara14 graph (A).’’. 

15 Subchapter C—Demonstrations of Expanded 

16 Information and Enforcement 

17 SEC. 5121. GUIDELINES FOR INVOLVEMENT OF PUBLIC 

18 NON-IV-D CHILD SUPPORT ENFORCEMENT 

19 AGENCIES IN CHILD SUPPORT ENFORCE20 MENT. 

21 (a) IN GENERAL.—Not later than October 1, 2004, 

22 the Secretary, in consultation with States, local govern23 ments, and individuals or companies knowledgeable about 

24 involving public non-IV-D child support enforcement agen25 cies in child support enforcement, shall develop rec-
608

•HR 936 IH 

1 ommendations which address the participation of public 

2 non-IV-D child support enforcement agencies in the estab3 lishment and enforcement of child support obligations. 

4 The matters addressed by the recommendations shall in5 clude substantive and procedural rules which should be 

6 followed with respect to privacy safeguards, data security, 

7 due process rights, administrative compatibility with Fed8 eral and State automated systems, eligibility requirements 

9 (such as registration, licensing, and posting of bonds) for 

10 access to information and use of enforcement mechanisms, 

11 recovery of costs by charging fees, penalties for violations 

12 of the rules, treatment of collections for purposes of sec13 tion 458 of such Act, and avoidance of duplication of ef14 fort. 

15 (b) DEFINITIONS.—In this title: 

16 (1) CHILD SUPPORT.—The term ‘‘child sup17 port’’ has the meaning given in section 459(i)(2) of 

18 the Social Security Act. 

19 (2) PUBLIC NON-IV-D CHILD SUPPORT EN20 FORCEMENT AGENCY.—The term ‘‘public non-IV-D 

21 child support enforcement agency’’ means an agency, 

22 of a political subdivision of a State, which is prin23 cipally responsible for the operation of a child sup24 port registry or for the establishment or enforcement 

25 of an obligation to pay child support other than pur-
609

•HR 936 IH 

1 suant to the State plan approved under part D of 

2 title IV of such Act, or a clerk of court office of a 

3 political subdivision of a State. 

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

5 the Secretary of Health and Human Services. 

6 (4) STATE.—The term ‘‘State’’ shall have the 

7 meaning given in section 1101(a)(1) of the Social 

8 Security Act for purposes of part D of title IV of 

9 such Act. 

10 SEC. 5122. DEMONSTRATIONS INVOLVING ESTABLISHMENT 

11 AND ENFORCEMENT OF CHILD SUPPORT OB12 LIGATIONS BY PUBLIC NON-IV-D CHILD SUP13 PORT ENFORCEMENT AGENCIES. 

14 (a) PURPOSE.—The purpose of this section is to de15 termine the extent to which public non-IV-D child support 

16 enforcement agencies may contribute effectively to the es17 tablishment and enforcement of child support obligations. 

18 (b) APPLICATIONS.—

19 (1) CONSIDERATION.—The Secretary shall con20 sider all applications received from States desiring to 

21 conduct demonstration projects under this section. 

22 (2) PREFERENCES.—In considering which ap23 plications to approve under this section, the Sec24 retary shall give preference to applications submitted 
610

•HR 936 IH 

1 by States that had a public non-IV-D child support 

2 enforcement agency as of January 1, 2003. 

3 (3) APPROVAL.—

4 (A) TIMING; LIMITATION ON NUMBER OF

5 PROJECTS.—On July 1, 2005, the Secretary 

6 may approve not more than 10 applications for 

7 projects providing for the participation of a 

8 public non-IV-D child support enforcement 

9 agency in the establishment and enforcement of 

10 child support obligations, and, if the Secretary 

11 receives at least 5 such applications that meet 

12 such requirements as the Secretary may estab13 lish, shall approve not less than 5 such applica14 tions. 

15 (B) REQUIREMENTS.—The Secretary may 

16 not approve an application for a project un17 less—

18 (i) the applicant and the Secretary 

19 have entered into a written agreement 

20 which addresses at a minimum, privacy 

21 safeguards, data security, due process 

22 rights, automated systems, liability, over23 sight, and fees, and the applicant has 

24 made a commitment to conduct the project 

25 in accordance with the written agreement 
611

•HR 936 IH 

1 and such other requirements as the Sec2 retary may establish; 

3 (ii) the project includes a research 

4 plan (but such plan shall not be required 

5 to use random assignment) that is focused 

6 on assessing the costs and benefits of the 

7 project; and 

8 (iii) the project appears likely to con9 tribute significantly to the achievement of 

10 the purpose of this title. 

11 (c) DEMONSTRATION AUTHORITY.—On approval of 

12 an application submitted by a State under this section—

13 (1) the State agency responsible for admin14 istering the State plan under part D of title IV of 

15 the Social Security Act may, subject to the privacy 

16 safeguards of section 454(26) of such Act, provide 

17 to any public non-IV-D child support enforcement 

18 agency participating in the demonstration project all 

19 information in the State Directory of New Hires and 

20 any information obtained through information com21 parisons under section 453(j)(3) of such Act about 

22 an individual with respect to whom the public non23 IV-D agency is seeking to establish or enforce a 

24 child support obligation, if the public non-IV-D 

25 agency meets such requirements as the State may 
612

•HR 936 IH 

1 establish and has entered into an agreement with 

2 the State under which the public non-IV-D agency 

3 has made a binding commitment to carry out estab4 lishment and enforcement activities with respect to 

5 the child support obligation subject to the same data 

6 security, privacy protection, and due process require7 ments applicable to the State agency and in accord8 ance with procedures approved by the head of the 

9 State agency; 

10 (2) the State agency may charge and collect 

11 fees from any such public non-IV-D agency to re12 cover costs incurred by the State agency in providing 

13 information and services to the public non-IV-D 

14 agency under the demonstration project; 

15 (3) if a public non-IV-D child support enforce16 ment agency has agreed to collect past-due support 

17 (as defined in section 464(c) of such Act) owed by 

18 a named individual, and the State agency has sub19 mitted a notice to the Secretary of the Treasury 

20 pursuant to section 464 of such Act on behalf of the 

21 public non-IV-D agency, then the Secretary of the 

22 Treasury shall consider the State agency to have 

23 agreed to collect such support for purposes of such 

24 section 464, and the State agency may collect from 

25 the public non-IV-D agency any fee which the State 
613

•HR 936 IH 

1 is required to pay for the cost of applying the offset 

2 procedure in the case; 

3 (4) for so long as a public non-IV-D child sup4 port enforcement agency is participating in the dem5 onstration project, the public non-IV-D agency shall 

6 be considered part of the State agency for purposes 

7 of section 469A of such Act; and 

8 (5) for so long as a public non-IV-D child sup9 port enforcement agency is participating in the dem10 onstration project, the public non-IV-D agency shall 

11 be considered part of the State agency for purposes 

12 of section 303(e) of such Act but only with respect 

13 to any child support obligation that the public non14 IV-D agency has agreed to collect. 

15 (d) WAIVER AUTHORITY.—The Secretary may waive 

16 or vary the applicability of any provision of sections 

17 303(e), 454(31), 464, 466(a)(7), 466(a)(17), and 469A 

18 of the Social Security Act to the extent necessary to enable 

19 the conduct of demonstration projects under this section, 

20 subject to the preservation of the data security, privacy 

21 protection, and due process requirements of part D of title 

22 IV of such Act. 

23 (e) FEDERAL AUDIT.—

24 (1) IN GENERAL.—The Comptroller General of 

25 the United States shall conduct an audit of the dem-
614

•HR 936 IH 

1 onstration projects conducted under this section for 

2 the purpose of examining and evaluating the manner 

3 in which information and enforcement tools are used 

4 by the public non-IV-D child support enforcement 

5 agencies participating in the projects. 

6 (2) REPORT TO CONGRESS.—

7 (A) IN GENERAL.—The Comptroller Gen8 eral of the United States shall submit to Con9 gress a report on the audit required by para10 graph (1). 

11 (B) TIMING.—The report required by sub12 paragraph (A) shall be so submitted not later 

13 than October 1, 2007. 

14 (f) SECRETARIAL REPORT TO CONGRESS.—

15 (1) IN GENERAL.—The Secretary shall submit 

16 to Congress a report on the demonstration projects 

17 conducted under this section, which shall include the 

18 results of any research or evaluation conducted pur19 suant to this title, and shall include policy rec20 ommendations regarding the establishment and en21 forcement of child support obligations by the agen22 cies involved. 

23 (2) TIMING.—The report required by paragraph 

24 (1) shall be submitted not later than October 1, 

25 2008. 
615

•HR 936 IH 

1 SEC. 5123. GAO REPORT TO CONGRESS ON PRIVATE CHILD 

2 SUPPORT ENFORCEMENT AGENCIES. 

3 (a) IN GENERAL.—Not later than October 1, 2004, 

4 the Comptroller General of the United States shall submit 

5 to Congress a report on the activities of private child sup6 port enforcement agencies that shall be designed to help 

7 Congress determine whether the agencies are providing a 

8 needed service in a fair manner using accepted debt collec9 tion practices and at a reasonable fee. 

10 (b) MATTERS TO BE ADDRESSED.—Among the mat11 ters addressed by the report required by subsection (a) 

12 shall be the following: 

13 (1) The number of private child support en14 forcement agencies. 

15 (2) The types of debt collection activities con16 ducted by the private agencies. 

17 (3) The fees charged by the private agencies. 

18 (4) The methods used by the private agencies 

19 to collect fees from custodial parents. 

20 (5) The nature and degree of cooperation the 

21 private agencies receive from State agencies respon22 sible for administering State plans under part D of 

23 title IV of the Social Security Act. 

24 (6) The extent to which the conduct of the pri25 vate agencies is subject to Federal or State regula-
616

•HR 936 IH 

1 tion, and if so, the extent to which the regulations 

2 are effectively enforced. 

3 (7) The amount of child support owed but un4 collected and changes in this amount in recent years. 

5 (8) The average period of time required for the 

6 completion of successful enforcement actions yielding 

7 collections of past-due child support by both the 

8 child support enforcement programs operated pursu9 ant to State plans approved under part D of title IV 

10 of the Social Security Act and, to the extent known, 

11 by private child support enforcement agencies. 

12 (9) The types of Federal and State child sup13 port enforcement remedies and resources currently 

14 available to private child support enforcement agen15 cies, and the types of such remedies and resources 

16 now restricted to use by State agencies admin17 istering State plans referred to in paragraph (8). 

18 (c) PRIVATE CHILD SUPPORT ENFORCEMENT AGEN19 CY DEFINED.—In this section, the term ‘‘private child 

20 support enforcement agency’’ means a person or any other 

21 nonpublic entity which seeks to establish or enforce an ob22 ligation to pay child support (as defined in section 

23 459(i)(2) of the Social Security Act).
617

•HR 936 IH 

1 SEC. 5124. EFFECTIVE DATE. 

2 This title shall take effect on the date of enactment 

3 of this Act. 

4 Subchapter D—Expanded Enforcement 

5 SEC. 5126. DECREASE IN AMOUNT OF CHILD SUPPORT AR6 REARAGE TRIGGERING PASSPORT DENIAL. 

7 Section 452(k) of the Social Security Act (42 U.S.C. 

8 652(k)) is amended by striking ‘‘$5,000’’ and inserting 

9 ‘‘$2,500’’. 

10 SEC. 5127. USE OF TAX REFUND INTERCEPT PROGRAM TO 

11 COLLECT PAST-DUE CHILD SUPPORT ON BE12 HALF OF CHILDREN WHO ARE NOT MINORS. 

13 Section 464 of the Social Security Act (42 U.S.C. 

14 664) is amended—

15 (1) in subsection (a)(2)(A), by striking ‘‘(as 

16 that term is defined for purposes of this paragraph 

17 under subsection (c))’’; and 

18 (2) in subsection (c)—

19 (A) in paragraph (1)—

20 (i) by striking ‘‘(1) Except as pro21 vided in paragraph (2), as used in’’ and in22 serting ‘‘In’’; and 

23 (ii) by inserting ‘‘(whether or not a 

24 minor)’’ after ‘‘a child’’ each place it ap25 pears; and 

26 (B) by striking paragraphs (2) and (3). 
618

•HR 936 IH 

1 SEC. 5128. GARNISHMENT OF COMPENSATION PAID TO VET2 ERANS FOR SERVICE-CONNECTED DISABIL3 ITIES IN ORDER TO ENFORCE CHILD SUP4 PORT OBLIGATIONS. 

5 Section 459(h) of the Social Security Act (42 U.S.C. 

6 659(h)) is amended—

7 (1) in paragraph (1)(A)(ii)(V), by striking all 

8 that follows ‘‘Armed Forces’’ and inserting a semi9 colon; and 

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

11 ‘‘(3) LIMITATIONS WITH RESPECT TO COM12 PENSATION PAID TO VETERANS FOR SERVICE-CON13 NECTED DISABILITIES.—Notwithstanding any other 

14 provision of this section: 

15 ‘‘(A) Compensation described in paragraph 

16 (1)(A)(ii)(V) shall not be subject to withholding 

17 pursuant to this section—

18 ‘‘(i) for payment of alimony; or 

19 ‘‘(ii) for payment of child support if 

20 the individual is fewer than 60 days in ar21 rears in payment of the support. 

22 ‘‘(B) Not more than 50 percent of any 

23 payment of compensation described in para24 graph (1)(A)(ii)(V) may be withheld pursuant 

25 to this section.’’. 
619

•HR 936 IH 

1 Subchapter E—Miscellaneous 

2 SEC. 5131. REPORT ON UNDISTRIBUTED CHILD SUPPORT 

3 PAYMENTS. 

4 Not later than 6 months after the date of enactment 

5 of this Act, the Secretary of Health and Human Services 

6 shall submit to the Committee on Ways and Means of the 

7 House of Representatives and the Committee on Finance 

8 of the Senate a report on the procedures that the States 

9 use generally to locate custodial parents for whom child 

10 support has been collected but not yet distributed due to 

11 a change in address. The report shall include an estimate 

12 of the total amount of such undistributed child support 

13 and the average length of time it takes for such child sup14 port to be distributed. The Secretary shall include in the 

15 report recommendations as to whether additional proce16 dures should be established at the Federal or State level 

17 to expedite the payment of undistributed child support. 

18 SEC. 5132. USE OF NEW HIRE INFORMATION TO ASSIST IN 

19 ADMINISTRATION OF UNEMPLOYMENT COM20 PENSATION PROGRAMS. 

21 (a) IN GENERAL.—Section 453(j) of the Social Secu22 rity Act (42 U.S.C. 653(j)) is amended by adding at the 

23 end the following: 
620

•HR 936 IH 

1 ‘‘(7) INFORMATION COMPARISONS AND DISCLO2 SURE TO ASSIST IN ADMINISTRATION OF UNEMPLOY3 MENT COMPENSATION PROGRAMS.—

4 ‘‘(A) IN GENERAL.—If a State agency re5 sponsible for the administration of an unem6 ployment compensation program under Federal 

7 or State law transmits to the Secretary the 

8 name and social security account number of an 

9 individual, the Secretary shall, if the informa10 tion in the National Directory of New Hires in11 dicates that the individual may be employed, 

12 disclose to the State agency the name, address, 

13 and employer identification number of any pu14 tative employer of the individual, subject to this 

15 paragraph. 

16 ‘‘(B) CONDITION ON DISCLOSURE.—The 

17 Secretary shall make a disclosure under sub18 paragraph (A) only to the extent that the Sec19 retary determines that the disclosure would not 

20 interfere with the effective operation of the pro21 gram under this part. 

22 ‘‘(C) USE OF INFORMATION.—A State 

23 agency may use information provided under this 

24 paragraph only for purposes of administering a 

25 program referred to in subparagraph (A).’’. 
621

•HR 936 IH 

1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall take effect on October 1, 2003. 

3 SEC. 5133. IMMIGRATION PROVISIONS. 

4 (a) NONIMMIGRANT ALIENS INELIGIBLE TO RE5 CEIVE VISAS AND EXCLUDED FROM ADMISSION FOR

6 NONPAYMENT OF CHILD SUPPORT.—

7 (1) IN GENERAL.—Section 212(a)(10) of the 

8 Immigration and Nationality Act (8 U.S.C. 

9 1182(a)(10)) is amended by adding at the end the 

10 following: 

11 ‘‘(F) NONPAYMENT OF CHILD SUPPORT.—

12 ‘‘(i) IN GENERAL.—Any non13 immigrant alien is inadmissible who is le14 gally obligated under a judgment, decree, 

15 or order to pay child support (as defined in 

16 section 459(i) of the Social Security Act), 

17 and whose failure to pay such child sup18 port has resulted in an arrearage exceeding 

19 $2,500, until child support payments 

20 under the judgment, decree, or order are 

21 satisfied or the nonimmigrant alien is in 

22 compliance with an approved payment 

23 agreement. 

24 ‘‘(ii) WAIVER AUTHORIZED.—The At25 torney General may waive the application 
622

•HR 936 IH 

1 of clause (i) in the case of an alien, if the 

2 Attorney General—

3 ‘‘(I) has received a request for 

4 the waiver from the court or adminis5 trative agency having jurisdiction over 

6 the judgment, decree, or order obli7 gating the alien to pay child support 

8 that is referred to in such clause; or 

9 ‘‘(II) determines that there are 

10 prevailing humanitarian or public in11 terest concerns.’’. 

12 (2) EFFECTIVE DATE.—The amendment made 

13 by this subsection shall take effect 180 days after 

14 the date of enactment of this Act. 

15 (b) AUTHORIZATION TO SERVE LEGAL PROCESS IN

16 CHILD SUPPORT CASES ON CERTAIN ARRIVING

17 ALIENS.—

18 (1) IN GENERAL.—Section 235(d) of the Immi19 gration and Nationality Act (8 U.S.C. 1225(d)) is 

20 amended by adding at the end the following: 

21 ‘‘(5) AUTHORITY TO SERVE PROCESS IN CHILD

22 SUPPORT CASES.—

23 ‘‘(A) IN GENERAL.—To the extent con24 sistent with State law, immigration officers are 

25 authorized to serve on any alien who is an ap-
623

•HR 936 IH 

1 plicant for admission to the United States legal 

2 process with respect to any action to enforce or 

3 establish a legal obligation of an individual to 

4 pay child support (as defined in section 459(i) 

5 of the Social Security Act). 

6 ‘‘(B) DEFINITION.—For purposes of sub7 paragraph (A), the term ‘legal process’ means 

8 any writ, order, summons, or other similar 

9 process, which is issued by—

10 ‘‘(i) a court or an administrative 

11 agency of competent jurisdiction in any 

12 State, territory, or possession of the 

13 United States; or 

14 ‘‘(ii) an authorized official pursuant to 

15 an order of such a court or agency or pur16 suant to State or local law.’’. 

17 (2) EFFECTIVE DATE.—The amendment made 

18 by this subsection shall apply to aliens applying for 

19 admission to the United States on or after 180 days 

20 after the date of enactment of this Act. 

21 (c) AUTHORIZATION TO SHARE CHILD SUPPORT EN22 FORCEMENT INFORMATION TO ENFORCE IMMIGRATION

23 AND NATURALIZATION LAW.—
624

•HR 936 IH 

1 (1) SECRETARIAL RESPONSIBILITY.—Section 

2 452 of the Social Security Act (42 U.S.C. 652) is 

3 amended by adding at the end the following: 

4 ‘‘(m) If the Secretary receives a certification by a 

5 State agency, in accordance with section 454(35), that an 

6 individual who is a nonimmigrant alien (as defined in sec7 tion 101(a)(15) of the Immigration and Nationality Act) 

8 owes arrearages of child support in an amount exceeding 

9 $2,500, the Secretary may, at the request of the State 

10 agency, the Secretary of State, or the Attorney General, 

11 or on the Secretary’s own initiative, provide such certifi12 cation to the Secretary of State and the Attorney General 

13 information in order to enable them to carry out their re14 sponsibilities under sections 212(a)(10) and 235(d) of 

15 such Act.’’. 

16 (2) STATE AGENCY RESPONSIBILITY.—Section 

17 454 of the Social Security Act (42 U.S.C. 654), as 

18 amended by section 5111(c) of this Act, is amend19 ed—

20 (A) by striking ‘‘and’’ at the end of para21 graph (33); 

22 (B) by striking the period at the end of 

23 paragraph (34) and inserting ‘‘; and’’; and 

24 (C) by inserting after paragraph (34) the 

25 following: 
625

•HR 936 IH 

1 ‘‘(35) provide that the State agency will have in 

2 effect a procedure for certifying to the Secretary, in 

3 such format and accompanied by such supporting 

4 documentation as the Secretary may require, deter5 minations that nonimmigrant aliens owe arrearages 

6 of child support in an amount exceeding $2,500.’’. 

7 SEC. 5134. CORRECTION OF ERRORS IN CONFORMING 

8 AMENDMENTS IN THE WELFARE-TO-WORK 

9 AND CHILD SUPPORT AMENDMENTS OF 1999. 

10 The amendments made by section 2402 of Public 

11 Law 106–246 shall take effect as if included in the enact12 ment of section 806 of H.R. 3424 of the 106th Congress 

13 by section 1000(a)(4) of Public Law 106–113. 

14 SEC. 5135. INCREASE IN PAYMENT RATE TO STATES FOR 

15 EXPENDITURES FOR SHORT-TERM TRAINING 

16 OF STAFF OF CERTAIN CHILD WELFARE 

17 AGENCIES. 

18 Section 474(a)(3)(B) of the Social Security Act (42 

19 U.S.C. 674(a)(3)(B)) is amended by inserting ‘‘, or State20 licensed or State-approved child welfare agencies providing 

21 services,’’ after ‘‘child care institutions’’. 

22 SEC. 5136. EFFECTIVE DATE. 

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

24 this subtitle and in subsection (b) of this section, this sub25 title and the amendments made by this subtitle shall take 
626

•HR 936 IH 

1 effect on October 1, 2004, and shall apply to payments 

2 under part D of title IV of the Social Security Act for 

3 calendar quarters beginning on or after such date, and 

4 without regard to whether regulations to implement such 

5 amendments are promulgated by such date. 

6 (b) DELAY PERMITTED IF STATE LEGISLATION RE7 QUIRED.—In the case of a State plan approved under sec8 tion 454 of the Social Security Act which requires State 

9 legislation (other than legislation appropriating funds) in 

10 order for the plan to meet the additional requirements im11 posed by the amendments made by this Act, the State plan 

12 shall not be regarded as failing to comply with the addi13 tional requirements solely on the basis of the failure of 

14 the plan to meet the additional requirements before the 

15 first day of the first calendar quarter beginning after the 

16 close of the first regular session of the State legislature 

17 that begins after the date of enactment of this Act. For 

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

19 that has a 2-year legislative session, each year of such ses20 sion shall be deemed to be a separate regular session of 

21 the State legislature.
627

•HR 936 IH 

1 CHAPTER 2—CHILD SUPPORT 

2 DEMONSTRATION PROGRAMS 

3 SEC. 5141. SHORT TITLE. 

4 This chapter may be cited as the ‘‘Child Support As5 surance Act’’. 

6 SEC. 5142. PURPOSES. 

7 The purposes of this chapter are to enable partici8 pating States to establish, expand, or improve child sup9 port assurance systems in order to improve the economic 

10 circumstances of children who do not receive a minimum 

11 level of child support in a given month from the noncusto12 dial parents of such children, to strengthen the establish13 ment and enforcement of child support awards, and to 

14 promote work by custodial and noncustodial parents.

15 SEC. 5143. DEFINITIONS. 

16 In this chapter: 

17 (1) CHILD.—The term ‘‘child’’ means an indi18 vidual who is of such an age, disability, or edu19 cational status as to be eligible for child support as 

20 provided for by law. 

21 (2) ELIGIBLE CHILD.—The term ‘‘eligible 

22 child’’ means a child who—

23 (A) is not currently receiving cash assist24 ance under the State program funded under 
628

•HR 936 IH 

1 part A of title IV of the Social Security Act (42 

2 U.S.C. 601 et seq.); 

3 (B) meets the eligibility requirements es4 tablished by the State for participation in a 

5 project administered under this section; and 

6 (C) is the subject of a support order, as 

7 defined in section 453(p) of the Social Security 

8 Act (42 U.S.C. 653(p)), or for which good 

9 cause exists, as determined by the appropriate 

10 State agency under section 454(29)(A) of such 

11 Act (42 U.S.C. 654(29)(A)), for not having or 

12 pursuing a support order. 

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

14 the Secretary of Health and Human Services. 

15 SEC. 5144. ESTABLISHMENT OF CHILD SUPPORT ASSUR16 ANCE DEMONSTRATION PROJECTS. 

17 (a) DEMONSTRATIONS AUTHORIZED.—The Secretary 

18 shall make grants to not less than 3 and not more than 

19 5 States to conduct demonstration projects for the pur20 pose of establishing, expanding, or improving a system of 

21 an assured minimum child support payment to an eligible 

22 child in accordance with this section. 

23 (b) APPLICATION AND SELECTION.—

24 (1) APPLICATION REQUIREMENTS.—An applica25 tion for a grant under this section shall be sub-
629

•HR 936 IH 

1 mitted by the chief executive officer of a State and 

2 shall—

3 (A) contain a description of the proposed 

4 child support assurance project to be estab5 lished, expanded, or improved using amounts 

6 provided under this section, including the level 

7 of the assured minimum child support payment 

8 to be provided and the agencies that will be in9 volved; 

10 (B) specify whether the project will be car11 ried out throughout the State or in limited 

12 areas of the State; 

13 (C) specify the level of income, if any, at 

14 which a recipient or applicant will be ineligible 

15 for an assured minimum child support payment 

16 under the project; 

17 (D) estimate the number of children who 

18 will be eligible for assured minimum child sup19 port payments under the project; 

20 (E) contain a description of the work re21 quirements, if any, for custodial parents whose 

22 children are participating in the project; 

23 (F) contain a commitment by the State to 

24 carry out the project during a period of not less 
630

•HR 936 IH 

1 than 3 and not more than 5 consecutive fiscal 

2 years beginning with fiscal year 2004; and 

3 (G) contain such other information as the 

4 Secretary may require by regulation. 

5 (2) SELECTION CRITERIA.—The Secretary shall 

6 consider—

7 (A) geographic diversity in the selection of 

8 States to conduct demonstration projects under 

9 this section; and 

10 (B) any other criteria that the Secretary 

11 determines will contribute to the achievement of 

12 the purposes of this title. 

13 (c) USE OF FUNDS.—

14 (1) GRANT FUNDS.—A State shall use amounts 

15 provided under a grant awarded under this section 

16 to carry out a child support assurance project that 

17 is designed to provide a minimum monthly child sup18 port payment for each eligible child participating in 

19 the project to the extent that such minimum child 

20 support is not paid in a month by the noncustodial 

21 parent. 

22 (2) TANF FUNDS.—

23 (A) IN GENERAL.—A State selected to con24 duct a demonstration project under this title 

25 may use, in addition to the amounts provided 
631

•HR 936 IH 

1 under a grant awarded under this section, 

2 funds provided under a State family assistance 

3 grant under section 403(a)(1) of the Social Se4 curity Act (42 U.S.C. 603(a)(1)) for the pur5 pose described in paragraph (1). 

6 (B) AUTHORITY TO INCLUDE AMOUNTS

7 USED FOR PURPOSES OF TANF MAINTENANCE

8 OF EFFORT REQUIREMENTS.—Section 

9 409(a)(7)(B)(i)(I) of the Social Security Act 

10 (42 U.S.C. 609(a)(7)(B)(i)(I)) is amended by 

11 adding at the end the following: 

12 ‘‘(ff) Notwithstanding clause 

13 (iv), funds provided under a 

14 State family assistance grant, 

15 under section 403(a)(1) that are 

16 used to establish, expand, or im17 prove a system of assured min18 imum child support payments to 

19 eligible children (regardless of 

20 whether such children reside with 

21 an eligible family, as defined in 

22 subclause (IV)) in accordance 

23 with the Leave No Child Behind 

24 Act of 2003.’’.
632

•HR 936 IH 

1 (d) TREATMENT OF CHILD SUPPORT PAYMENT.—

2 Any assured minimum child support payment received by 

3 an individual under this title shall be considered child sup4 port for purposes of determining the treatment of such 

5 payment under—

6 (1) the Internal Revenue Code of 1986; and 

7 (2) any eligibility requirements for any means8 tested program of assistance.

9 (e) DURATION.—A demonstration project conducted 

10 under this section shall commence on October 1, 2005, 

11 and shall be conducted for not less than 3 and not more 

12 than 5 consecutive fiscal years, except that the Secretary 

13 may terminate a project before the end of such period if 

14 the Secretary determines that the State conducting the 

15 project is not in compliance with the terms of the applica16 tion approved by the Secretary under this section. 

17 (f) EVALUATIONS AND REPORTS.—

18 (1) STATE EVALUATIONS.—

19 (A) IN GENERAL.—Each State admin20 istering a demonstration project under this sec21 tion shall—

22 (i) provide for evaluation of the 

23 project, meeting such conditions and 

24 standards as the Secretary may require; 

25 and 
633

•HR 936 IH 

1 (ii) submit to the Secretary reports, at 

2 the times and in the formats as the Sec3 retary may require, and containing any in4 formation (in addition to the information 

5 required under subparagraph (B)) as the 

6 Secretary may require. 

7 (B) REQUIRED INFORMATION.—A report 

8 submitted under subparagraph (A)(ii) shall in9 clude information on and analysis of the effect 

10 of the project with respect to—

11 (i) the amount of child support col12 lected for project recipients; 

13 (ii) the economic circumstances and 

14 work efforts of custodial parents; 

15 (iii) the work efforts of noncustodial 

16 parents; 

17 (iv) the rate of compliance by non18 custodial parents with support orders; 

19 (v) project recipients’ need for assist20 ance under means-tested assistance pro21 grams other than the project administered 

22 under this section; and 

23 (vi) any other matters that the Sec24 retary may specify. 
634

•HR 936 IH 

1 (C) METHODOLOGY.—Information re2 quired under this paragraph shall be collected 

3 through the use of scientifically acceptable sam4 pling methods. 

5 (2) REPORTS TO CONGRESS.—The Secretary 

6 shall, on the basis of reports received from States 

7 administering projects under this section, submit in8 terim reports and, not later than 6 months after the 

9 conclusion of all projects administered under this 

10 section, a final report to Congress. A report sub11 mitted under this paragraph shall contain an assess12 ment of the effectiveness of the State projects ad13 ministered under this section and any recommenda14 tions for legislative action that the Secretary con15 siders appropriate. 

16 (g) FUNDING.—There shall be available to the Sec17 retary, from amounts made available to carry out part D 

18 of title IV of the Social Security Act, for purposes of car19 rying out demonstration projects under this section, 

20 amounts not to exceed—

21 (1) $27,000,000 for fiscal year 2006; 

22 (2) $55,000,000 for fiscal year 2007; and

23 (3) $70,000,000 for each of fiscal years 2008 

24 through 2010. 
635

•HR 936 IH 

1 Subtitle C—Fair Wages and 

2 Unemployment Insurance 

3 CHAPTER 1—FAIR MINIMUM WAGE 

4 SEC. 5201. SHORT TITLE. 

5 This chapter may be cited as the ‘‘Fair Minimum 

6 Wage Act of 2003’’. 

7 SEC. 5202. MINIMUM WAGE. 

8 (a) IN GENERAL.—Section 6(a)(1) of the Fair Labor 

9 Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended 

10 to read as follows: 

11 ‘‘(1) except as otherwise provided in this sec12 tion, not less than—

13 ‘‘(A) $5.90 an hour, beginning on the 60th 

14 day after the date of enactment of the Fair 

15 Minimum Wage Act of 2003; and 

16 ‘‘(B) $6.65 an hour, beginning 12 months 

17 after that 60th day;’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 subsection (a) shall take effect 60 days after the date of 

20 enactment of this Act. 
636

•HR 936 IH 

1 SEC. 5203. APPLICABILITY OF MINIMUM WAGE TO THE 

2 COMMONWEALTH OF THE NORTHERN MAR3 IANA ISLANDS. 

4 (a) IN GENERAL.—Section 6 of the Fair Labor 

5 Standards Act of 1938 (29 U.S.C. 206) shall apply to the 

6 Commonwealth of the Northern Mariana Islands. 

7 (b) TRANSITION.—Notwithstanding subsection (a), 

8 the minimum wage applicable to the Commonwealth of the 

9 Northern Mariana Islands under section 6(a)(1) of the 

10 Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) 

11 shall be—

12 (1) $3.55 an hour, beginning on the 60th day 

13 after the date of enactment of this Act; and 

14 (2) increased by $0.50 an hour (or such lesser 

15 amount as may be necessary to equal the minimum 

16 wage under section 6(a)(1) of such Act), beginning 

17 6 months after the date of enactment of this Act 

18 and every 6 months thereafter until the minimum 

19 wage applicable to the Commonwealth of the North20 ern Mariana Islands under this subsection is equal 

21 to the minimum wage set forth in such section.
637

•HR 936 IH 

1 CHAPTER 2—LIVABLE WAGES FOR EM2 PLOYEES UNDER FEDERAL CON3 TRACTS 

4 SEC. 5211. SHORT TITLE. 

5 This chapter may be cited as the ‘‘Federal Living 

6 Wage Responsibility Act’’. 

7 SEC. 5212. FINDINGS. 

8 The Congress finds the following: 

9 (1) American workers are working harder to 

10 make ends meet. 

11 (2) The wages of many working Americans 

12 have not kept pace with the cost of providing for 

13 their families. 

14 (3) The Federal Government provides billions of 

15 dollars in subsidies to businesses each year through 

16 both spending programs and the Internal Revenue 

17 Code of 1986. 

18 (4) Recipients of Federal contracts have bene19 fited greatly from the provision of taxpayers’ dollars. 

20 (5) The Congressional Budget Office concluded 

21 that the Federal Government spends more than $30 

22 billion a year on spending and credit programs. 

23 (6) Congress must ensure that Federal dollars 

24 are used responsibly to improve the economic secu25 rity and well-being of Americans across the country. 
638

•HR 936 IH 

1 SEC. 5213. POVERTY LEVEL WAGE. 

2 (a) REQUIREMENT.—

3 (1) GENERAL RULE.—Except as provided in 

4 paragraph (2), any employer under a Federal con5 tract for an amount exceeding $10,000 or a sub6 contract under a Federal contract for such an 

7 amount shall, except as provided in subsection (b), 

8 pay each of the employer’s employees working on or 

9 hired in conjunction with such contract or sub10 contract—

11 (A) an hourly wage necessary for such em12 ployee to earn, while working 40 hours a week 

13 on a full-time basis, the amount of the Federal 

14 poverty level for a family of 4 (as published in 

15 the Federal Register by the Department of 

16 Health and Human Services under the author17 ity of section 673(2) of the Omnibus Budget 

18 Reconciliation Act of 1981), or 

19 (B) $8.20 an hour, 

20 whichever is greater. 

21 (2) EXCEPTION.—An employer which is—

22 (A) a small business concern as defined 

23 under section 3 of the Small Business Act (15 

24 U.S.C. 632), or 

25 (B) a nonprofit organization exempt from 

26 Federal income tax under section 501(c) of the 
639

•HR 936 IH 

1 Internal Revenue Code of 1986 if the ratio of 

2 the total compensation of its chief executive of3 ficer to the compensation of the full-time equiv4 alent of its lowest paid employee is not greater 

5 than 25 to 1, 

6 shall not be required to pay the wage prescribed by 

7 paragraph (1). 

8 (3) SCOPE.—An employer may not avoid the re9 quirement of paragraph (1) by laying off or other10 wise terminating the employment of an employee 

11 with the intention of replacing such employee with 

12 an employee who, under subsection (b), is not eligi13 ble for the subsection (a) wage. 

14 (b) EXCEPTION.—An employee who is participating 

15 in—

16 (1) an apprenticeship program, or 

17 (2) any other training program which does not 

18 exceed 6 months in duration and which is offered to 

19 an employee while employed in productive work that 

20 provides training, technical and other related skills, 

21 and personal skills that are essential to the full and 

22 adequate performance of the employee’s employ23 ment, 

24 is not eligible for the wage prescribed by subsection (a). 
640

•HR 936 IH 

1 (c) CONTRACT REQUIREMENT.—Any contract be2 tween the Federal Government and any contractor and 

3 any contract between such contractor with a subcontractor 

4 to carry out work for the Federal Government shall re5 quire the contractor or subcontractor to pay the wage pre6 scribed by subsection (a)(1). 

7 (d) ENFORCEMENT.—

8 (1) SUSPENSION.—If an employer does not pay 

9 the wage required by subsection (a) the Federal con10 tract or subcontract under which such employer was 

11 employing employees shall be suspended. 

12 (2) INELIGIBILITY.—An employer described in 

13 paragraph (1) shall not be eligible for any Federal 

14 contract or subcontract for a period of 5 years be15 ginning on the date the employer does not pay the 

16 required wage. 

17 (3) RESTITUTION.—An employer who does not 

18 pay the wage required by subsection (a) shall be lia19 ble to the United States in an amount equal to the 

20 unpaid wages and in addition an equal amount as 

21 liquidated damages. The Secretary of Labor shall 

22 pay to the employees who were not paid such wage 

23 the amount recovered by the United States under 

24 this paragraph. 
641

•HR 936 IH 

1 SEC. 5214. EFFECTIVE DATE. 

2 This chapter shall take effect with respect to Federal 

3 contracts entered into, renewed, or extended after 90 days 

4 after the date of enactment of this Act. 

5 CHAPTER 3—UNEMPLOYMENT 

6 INSURANCE 

7 SEC. 5221. PARITY FOR PART-TIME WORKERS, FAIR COUNT8 ING OF WAGES, AND USE OF IMPROVED 

9 TECHNOLOGY FOR MAKING WAGE DATA 

10 AVAILABLE. 

11 (a) IN GENERAL.—Subsection (a) of section 3304 of 

12 the Internal Revenue Code of 1986 (relating to approval 

13 of State unemployment compensation laws) is amended—

14 (1) in paragraph (18), by striking ‘‘and’’ at the 

15 end; 

16 (2) by redesignating paragraph (19) as para17 graph (21); and 

18 (3) by inserting after paragraph (18) the fol19 lowing new paragraphs: 

20 ‘‘(19) in the case of an individual who is not eli21 gible for regular compensation under the State law 

22 because such individual does not meet requirements 

23 relating to availability for work, active search for 

24 work, or refusal to accept work, because such indi25 vidual is seeking, or is available for, less than full26 time work, compensation is not denied by such State 
642

•HR 936 IH 

1 to an otherwise eligible individual who seeks less 

2 than full-time work or fails to accept full-time work; 

3 ‘‘(20) in the case of an individual who is not eli4 gible for regular compensation under the State law 

5 because of the use of a definition of base period that 

6 does not count wages earned in the most recently 

7 completed calendar quarter, eligibility for compensa8 tion is determined by applying a base period ending 

9 at the close of the most recently completed calendar 

10 quarter; and’’. 

11 (b) EFFECTIVE DATES.—

12 (1) IN GENERAL.—Except as provided in para13 graph (2), the amendments made by this section 

14 shall apply to compensation paid for weeks of unem15 ployment beginning after June 30, 2004. 

16 (2) AMENDMENT RELATING TO USE OF RECENT

17 WAGES.—Section 3304(a)(20) of the Internal Rev18 enue Code of 1986, as added by subsection (a)(3), 

19 shall apply to compensation paid for weeks of unem20 ployment beginning after December 31, 2004. 
643

•HR 936 IH 

1 SEC. 5222. ENSURING UNEMPLOYMENT COMPENSATION 

2 FOR INDIVIDUALS THAT ARE SEPARATED 

3 FROM EMPLOYMENT DUE TO DOMESTIC VIO4 LENCE. 

5 (a) UNEMPLOYMENT COMPENSATION.—Section 3304 

6 of the Internal Revenue Code of 1986 (relating to approval 

7 of State unemployment compensation laws), as amended 

8 by section 5221, is amended—

9 (1) in subsection (a)—

10 (A) in paragraph (20), by striking ‘‘and’’ 

11 at the end; 

12 (B) by redesignating paragraph (21) as 

13 paragraph (22); and 

14 (C) by inserting after paragraph (20) the 

15 following new paragraph: 

16 ‘‘(21) compensation is to be paid where an indi17 vidual is separated from employment due to cir18 cumstances directly resulting from domestic violence; 

19 and’’; and 

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

22 ‘‘(g) CONSTRUCTION.—

23 ‘‘(1) IN GENERAL.—For purposes of subsection 

24 (a)(21), an employee’s separation from employment 

25 shall be treated as due to circumstances directly re-
644

•HR 936 IH 

1 sulting from domestic violence if the separation re2 sulted from—

3 ‘‘(A) the employee’s reasonable fear of fu4 ture domestic violence at or en route to or from 

5 the employee’s place of employment; 

6 ‘‘(B) the employee’s wish to relocate to an7 other geographic area in order to avoid future 

8 domestic violence against the employee or the 

9 employee’s family; 

10 ‘‘(C) the employee’s need to recover from 

11 traumatic stress resulting from the employee’s 

12 experience of domestic violence; 

13 ‘‘(D) the employer’s denial of the employ14 ee’s request for the temporary leave from em15 ployment to address domestic violence and its 

16 effects; or 

17 ‘‘(E) any other circumstance in which do18 mestic violence causes the employee to reason19 ably believe that termination of employment is 

20 necessary for the future safety of the employee 

21 or the employee’s family. 

22 ‘‘(2) REASONABLE EFFORTS TO RETAIN EM23 PLOYMENT.—For purposes of subsection (a)(21), if 

24 State law requires the employee to have made rea25 sonable efforts to retain employment as a condition 
645

•HR 936 IH 

1 for receiving unemployment compensation, such re2 quirement shall be met if the employee—

3 ‘‘(A) sought protection from, or assistance 

4 in responding to, domestic violence, including 

5 calling the police or seeking legal, social work, 

6 medical, clergy, or other assistance; 

7 ‘‘(B) sought safety, including refuge in a 

8 shelter or temporary or permanent relocation, 

9 whether or not the employee actually obtained 

10 such refuge or accomplished such relocation; or 

11 ‘‘(C) reasonably believed that options such 

12 as taking a leave of absence, transferring jobs, 

13 or receiving an alternative work schedule would 

14 not be sufficient to guarantee the employee or 

15 the employee’s family’s safety. 

16 ‘‘(3) ACTIVE SEARCH FOR EMPLOYMENT.—For 

17 purposes of subsection (a)(21), if State law requires 

18 the employee to actively search for employment after 

19 separation from employment as a condition for re20 ceiving unemployment compensation, such require21 ment shall be treated as met where the employee is 

22 temporarily unable to actively search for employment 

23 because the employee is engaged in seeking safety or 

24 relief for the employee or the employee’s family from 

25 domestic violence, including—
646

•HR 936 IH 

1 ‘‘(A) going into hiding or relocating or at2 tempting to do so, including activities associ3 ated with such hiding or relocation, such as 

4 seeking to obtain sufficient shelter, food, school5 ing for children, or other necessities of life for 

6 the employee or the employee’s family; 

7 ‘‘(B) actively pursuing legal protection or 

8 remedies, including meeting with the police, 

9 going to court to make inquiries or file papers, 

10 meeting with attorneys, or attending court pro11 ceedings; or 

12 ‘‘(C) participating in psychological, social, 

13 or religious counseling or support activities to 

14 assist the employee in ending domestic violence. 

15 ‘‘(4) PROVISION OF INFORMATION TO MEET

16 CERTAIN REQUIREMENTS.—In determining if an em17 ployee meets the requirements of paragraphs (1), 

18 (2), and (3), the unemployment agency of the State 

19 in which an employee is requesting unemployment 

20 compensation by reason of subsection (a)(21) may 

21 require the employee to provide—

22 ‘‘(A) documentation of the domestic vio23 lence, such as—

24 ‘‘(i) police or court records; or
647

•HR 936 IH 

1 ‘‘(ii) documentation from a shelter 

2 worker or an employee of a domestic vio3 lence program, an attorney, a clergy mem4 ber, or a medical or other professional 

5 from whom the employee has sought as6 sistance in addressing domestic violence 

7 and its effects; or 

8 ‘‘(B) other corroborating evidence, such 

9 as—

10 ‘‘(i) a statement from any other indi11 vidual with knowledge of the circumstances 

12 which provide the basis for the claim; or 

13 ‘‘(ii) physical evidence of domestic vio14 lence, such as photographs or torn or 

15 bloody clothes. 

16 All evidence of domestic violence experienced by an 

17 employee, including an employee’s statement, any 

18 corroborating evidence, and the fact that an em19 ployee has applied for, or inquired about, unemploy20 ment compensation available by reason of subsection 

21 (a)(21) shall be retained in the strictest confidence 

22 by such State unemployment agency, except to the 

23 extent consented to by the employee where disclosure 

24 is necessary to protect the employee’s safety. 
648

•HR 936 IH 

1 ‘‘(5) EFFECT OF CLAIMS.—Claims filed for un2 employment compensation solely by reason of sub3 section (a)(21) shall be disregarded in determining 

4 an employer’s State unemployment taxes based on 

5 unemployment experience.’’.

6 (b) SOCIAL SECURITY PERSONNEL TRAINING.—Sec7 tion 303(a) of the Social Security Act (42 U.S.C. 503(a)) 

8 is amended—

9 (1) by redesignating paragraphs (4) through 

10 (10) as paragraphs (5) through (11), respectively; 

11 and 

12 (2) by inserting after paragraph (3) the fol13 lowing new paragraph: 

14 ‘‘(4) Such methods of administration as will en15 sure that claims reviewers and hearing personnel are 

16 adequately trained in—

17 ‘‘(A) the nature and dynamics of claims 

18 for unemployment compensation based on do19 mestic violence under section 3304(a)(21) of 

20 the Internal Revenue Code of 1986; and 

21 ‘‘(B) methods of ascertaining and keeping 

22 confidential information about possible experi23 ences of domestic violence to ensure that—

24 ‘‘(i) requests for unemployment com25 pensation based on domestic violence are 
649

•HR 936 IH 

1 reliably screened, identified, and adju2 dicated; and 

3 ‘‘(ii) complete confidentiality is pro4 vided for the employee’s claim and sub5 mitted evidence; and’’. 

6 (c) FUNDING FOR IMPROVED TECHNOLOGY TO AS7 SIST IN DETERMINING BENEFIT ELIGIBILITY.—Section 

8 901(c) of the Social Security Act (42 U.S.C. 1101(c)) is 

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

11 ‘‘(6) In addition to amounts provided under para12 graph (1)(A)(i), there is hereby appropriated out of the 

13 employment security administration account $60,000,000 

14 for fiscal year 2004 (which shall remain available for obli15 gation to the States through fiscal year 2006) for the pur16 pose of assisting States in funding technology and other 

17 costs that accelerate access to wage and employment infor18 mation in order to determine eligibility for unemployment 

19 compensation.’’. 

20 (d) DEFINITIONS.—Section 3306 of the Internal Rev21 enue Code of 1986 (relating to definitions) is amended by 

22 adding at the end the following new subsection: 

23 ‘‘(v) DOMESTIC VIOLENCE.—For purposes of this 

24 chapter, the term ‘domestic violence’ has the meaning 

25 given such term in section 2003(1) of title I of the Omni-
650

•HR 936 IH 

1 bus Crime Control and Safe Streets Act of 1968 (42 

2 U.S.C. 3796gg–2).’’. 

3 (e) EFFECTIVE DATE.—

4 (1) IN GENERAL.—Except as provided in para5 graphs (2) and (3), the amendments made by this 

6 section shall take effect on November 1, 2003. 

7 (2) FUNDING FOR IMPROVED TECHNOLOGY TO

8 ASSIST IN DETERMINING BENEFIT ELIGIBILITY.—

9 The amendment made by subsection (c) shall take 

10 effect on the date of enactment of this Act. 

11 (3) EXCEPTION.—In the case of any State the 

12 legislature of which has not been in session for at 

13 least 30 calendar days (whether or not successive) 

14 between the date of enactment of this Act and No15 vember 1, 2003, the amendments made by this sec16 tion shall take effect 30 calendar days after the first 

17 day on which such legislature is in session on or 

18 after November 1, 2003. 

19 SEC. 5223. LOSS OF CHILD CARE AS GOOD CAUSE FOR 

20 LEAVING EMPLOYMENT. 

21 (a) IN GENERAL.—Subsection (a) of section 3304 of 

22 the Internal Revenue Code of 1986 (relating to approval 

23 of State unemployment compensation laws), as amended 

24 by section 5222, is amended—
651

•HR 936 IH 

1 (1) in paragraph (21), by striking ‘‘and’’ at the 

2 end; 

3 (2) by redesignating paragraph (22) as para4 graph (23); and 

5 (3) by inserting after paragraph (21) the fol6 lowing new paragraph: 

7 ‘‘(22) if any individual leaves employment be8 cause of loss of adequate child care for a dependent 

9 child under the age of 12, for purposes of deter10 mining such individual’s eligibility for compensation 

11 for any subsequent week for which such individual 

12 meets the State law requirements relating to avail13 ability for work and active search for work—

14 ‘‘(A) such individual shall be treated as 

15 having left such employment for good cause; 

16 and 

17 ‘‘(B) any failure to return to such employ18 ment or to otherwise meet such State law re19 quirements, while the lack of such child care 

20 continues, shall be disregarded; and’’. 

21 (b) EFFECTIVE DATE.—

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendments made by subsection (a) 

24 shall take effect on November 1, 2003.
652

•HR 936 IH 

1 (2) EXCEPTION.—In the case of any State the 

2 legislature of which has not been in session for at 

3 least 30 calendar days (whether or not successive) 

4 between the date of enactment of this Act and No5 vember 1, 2003, the amendments made by sub6 section (a) shall take effect 30 calendar days after 

7 the first day on which such legislature is in session 

8 on or after November 1, 2003. 

9 Subtitle D—Jobs for Low-Income 

10 Parents 

11 SEC. 5301. DISREGARD OF MONTHS ENGAGED IN WORK 

12 FOR PURPOSES OF 5-YEAR TANF ASSISTANCE 

13 LIMIT. 

14 Section 408(a)(7) of the Social Security Act (42 

15 U.S.C. 608(a)(7)) is amended—

16 (1) by redesignating subparagraphs (E), (F), 

17 and (G) as subparagraphs (G), (H), and (I), respec18 tively; and 

19 (2) by inserting after subparagraph (D), the 

20 following: 

21 ‘‘(E) DISREGARD OF MONTHS OF ASSIST22 ANCE RECEIVED BY ADULT WHILE ENGAGED IN

23 WORK.—In determining the number of months 

24 for which an adult has received assistance 

25 under a State or tribal program funded under 
653

•HR 936 IH 

1 this part, the State or tribe shall disregard any 

2 month during which the adult is engaged in a 

3 work activity described in paragraph (1), (2), 

4 (3), (4), (5), (6), (7), (8), or (12) of section 

5 407(d) in accordance with the requirements of 

6 section 407(c).’’. 

7 SEC. 5302. REPLACEMENT OF CASELOAD REDUCTION 

8 CREDIT WITH EMPLOYMENT CREDIT. 

9 (a) EMPLOYMENT CREDIT TO REWARD STATES IN

10 WHICH FAMILIES LEAVE WELFARE FOR WORK; ADDI11 TIONAL CREDIT FOR FAMILIES WITH HIGHER EARN12 INGS.—

13 (1) IN GENERAL.—Section 407(a) of the Social 

14 Security Act (42 U.S.C. 607(a)), as amended by sec15 tion 5308 of this Act, is amended by adding at the 

16 end the following: 

17 ‘‘(2) EMPLOYMENT CREDIT.—

18 ‘‘(A) IN GENERAL.—The minimum partici19 pation rate otherwise applicable to a State 

20 under this subsection for a fiscal year shall be 

21 reduced by the number of percentage points in 

22 the employment credit for the State for the fis23 cal year, as determined by the Secretary—

24 ‘‘(i) using information in the National 

25 Directory of New Hires, or 
654

•HR 936 IH 

1 ‘‘(ii) with respect to a recipient of as2 sistance under the State program funded 

3 under this part who is placed with an em4 ployer whose hiring information is not re5 ported to the National Directory of New 

6 Hires, using quarterly wage information 

7 submitted by the State to the Secretary 

8 not later than such date as the Secretary 

9 shall prescribe in regulations. 

10 ‘‘(B) CALCULATION OF CREDIT.—

11 ‘‘(i) IN GENERAL.—The employment 

12 credit for a State for a fiscal year is an 

13 amount equal to—

14 ‘‘(I) twice the average quarterly 

15 number of families that ceased to re16 ceive cash payments under the State 

17 program funded under this part dur18 ing the most recent 4 quarters for 

19 which data is available and that were 

20 employed during the calendar quarter 

21 immediately succeeding the quarter in 

22 which the payments ceased, plus, at 

23 State option, the number of families 

24 that received a non-recurring short25 term benefit under the State program 
655

•HR 936 IH 

1 funded under this part during the 

2 preceding fiscal year and that were 

3 employed in during the calendar quar4 ter immediately succeeding the quar5 ter in which the non-recurring short6 term benefit was so received; divided 

7 by 

8 ‘‘(II) the average monthly num9 ber of families that include an adult 

10 who received cash payments under the 

11 State program funded under this part 

12 during the preceding fiscal year, plus, 

13 if the State elected the option under 

14 subclause (I), the number of families 

15 that received a non-recurring short16 term benefit under the State program 

17 funded under this part during the 

18 preceding fiscal year. 

19 ‘‘(ii) SPECIAL RULE FOR FORMER RE20 CIPIENTS WITH HIGHER EARNINGS.—In 

21 calculating the employment credit for a 

22 State for a fiscal year, a family that, dur23 ing the preceding fiscal year, earned at 

24 least 33 percent of the average wage in the 

25 State (determined on the basis of State 
656

•HR 936 IH 

1 unemployment data) shall be considered to 

2 be 1.5 families. 

3 ‘‘(C) PUBLICATION OF AMOUNT OF CRED4 IT.—Not later than August 30 of each fiscal 

5 year, the Secretary shall cause to be published 

6 in the Federal Register the amount of the em7 ployment credit that will be used in determining 

8 the minimum participation rate applicable to a 

9 State under this subsection for the immediately 

10 succeeding fiscal year.’’. 

11 (2) AUTHORITY OF SECRETARY TO USE INFOR12 MATION IN NATIONAL DIRECTORY OF NEW HIRES.—

13 Section 453(i) of the Social Security Act (42 U.S.C. 

14 653(i)) is amended by adding at the end the fol15 lowing: 

16 ‘‘(5) CALCULATION OF EMPLOYMENT CREDIT

17 FOR PURPOSES OF DETERMINING STATE WORK PAR18 TICIPATION RATES UNDER TANF.—The Secretary 

19 may use the information in the National Directory 

20 of New Hires for purposes of calculating State em21 ployment credits pursuant to section 407(a)(2).’’. 

22 (b) ELIMINATION OF CASELOAD REDUCTION CRED23 IT.—Section 407(b) of the Social Security Act (42 U.S.C. 

24 607(b)) is amended by striking paragraph (3) and redesig-
657

•HR 936 IH 

1 nating paragraphs (4) and (5) as paragraphs (3) and (4), 

2 respectively. 

3 SEC. 5303. STATES TO RECEIVE PARTIAL CREDIT TOWARD 

4 WORK PARTICIPATION RATE FOR RECIPI5 ENTS ENGAGED IN PART-TIME WORK. 

6 Section 407(c)(1)(A) of the Social Security Act (42 

7 U.S.C. 607(c)(1)(A)) is amended by adding at the end the 

8 following flush sentence: 

9 ‘‘For purposes of subsection (b)(1)(B)(i), a 

10 family that does not include a recipient who is 

11 participating in work activities for an average 

12 of 30 hours per week during a month but in13 cludes a recipient who is participating in such 

14 activities during the month for an average of at 

15 least 50 percent of the minimum average num16 ber of hours per week specified for the month 

17 in the table set forth in this subparagraph shall 

18 be counted as a percentage of a family that in19 cludes an adult or minor child head of house20 hold who is engaged in work for the month, 

21 which percentage shall be the number of hours 

22 for which the recipient participated in such ac23 tivities during the month divided by the number 

24 of hours of such participation required of the 

25 recipient under this section for the month.’’. 
658

•HR 936 IH 

1 SEC. 5304. TANF RECIPIENTS WHO QUALIFY FOR SUPPLE2 MENTAL SECURITY INCOME BENEFITS RE3 MOVED FROM WORK PARTICIPATION RATE 

4 CALCULATION FOR ENTIRE YEAR. 

5 Section 407(b)(1)(B)(ii) of the Social Security Act 

6 (42 U.S.C. 607(b)(1)(B)(ii)) is amended—

7 (1) in subclause (I), by inserting ‘‘who has not 

8 become eligible for supplemental security income 

9 benefits under title XVI during the fiscal year’’ be10 fore the semicolon; and 

11 (2) in subclause (II), by inserting ‘‘, and that 

12 do not include an adult or minor child head of 

13 household who has become eligible for supplemental 

14 security income benefits under title XVI during the 

15 fiscal year’’ before the period. 

16 SEC. 5305. ELIMINATION OF LIMIT ON NUMBER OF TANF 

17 RECIPIENTS ENROLLED IN VOCATIONAL 

18 EDUCATION OR HIGH SCHOOL WHO MAY BE 

19 COUNTED TOWARDS THE WORK PARTICIPA20 TION REQUIREMENT. 

21 Section 407(c)(2) of the Social Security Act (42 

22 U.S.C. 607(c)(2)) is amended by striking subparagraph 

23 (D). 
659

•HR 936 IH 

1 SEC. 5306. COUNTING OF UP TO 2 YEARS OF VOCATIONAL 

2 OR EDUCATIONAL TRAINING (INCLUDING 

3 POSTSECONDARY EDUCATION), WORK-STUDY, 

4 AND RELATED INTERNSHIPS AS WORK AC5 TIVITIES. 

6 Section 407(d)(8) of the Social Security Act (42 

7 U.S.C. 607(d)(8)) is amended to read as follows: 

8 ‘‘(8) not more than 24 months of participation 

9 by an individual in—

10 ‘‘(A) vocational or educational training (in11 cluding postsecondary education), at an eligible 

12 educational institution (as defined in section 

13 404(h)(5)(A)) leading to attainment of a cre14 dential from the institution related to employ15 ment or a job skill; 

16 ‘‘(B) a State or Federal work-study pro17 gram under part C of title IV of the Higher 

18 Education Act of 1965 or an internship related 

19 to vocational or postsecondary education, super20 vised by an eligible educational institution (as 

21 defined in section 404(h)(5)(A)); or 

22 ‘‘(C) a course of study leading to adult lit23 eracy, in which English is taught as a second 

24 language, or leading to a certificate of high 

25 school equivalency, if the State considers the 

26 activities important to improving the ability of 
660

•HR 936 IH 

1 the individual to find and maintain employ2 ment.’’. 

3 SEC. 5307. LIMITED COUNTING OF CERTAIN ACTIVITIES 

4 LEADING TO EMPLOYMENT AS WORK ACTIV5 ITY. 

6 (a) IN GENERAL.—Section 407(d) of the Social Secu7 rity Act (42 U.S.C. 607(d)) is amended—

8 (1) by striking ‘‘and’’ at the end of paragraph 

9 (11); 

10 (2) by striking the period at the end of para11 graph (12) and inserting ‘‘; and’’; and 

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

13 ‘‘(13) Up to 6 months of participation (as de14 termined by the State) in services designed to im15 prove future employment opportunities, including 

16 substance abuse treatment services, services to ad17 dress sexual or domestic violence, and physical reha18 bilitation and mental health services.’’. 

19 (b) CONFORMING AMENDMENT.—Section 407(c)(1) 

20 of such Act (42 U.S.C. 607(c)(1)) is amended by striking 

21 ‘‘and (12)’’ each place it appears and inserting ‘‘(12), and 

22 (13)’’. 
661

•HR 936 IH 

1 SEC. 5308. ELIMINATION OF SEPARATE WORK PARTICIPA2 TION RATE FOR 2-PARENT FAMILIES. 

3 Section 407 of the Social Security Act (42 U.S.C. 

4 607) is amended—

5 (1) in subsection (a), by striking paragraph (2); 

6 and 

7 (2) in subsection (b)—

8 (A) by striking paragraphs (2) and (3); 

9 (B) in paragraph (4), by striking ‘‘para10 graphs (1)(B) and (2)(B)’’ and inserting ‘‘para11 graph (1)(B)’’; 

12 (C) in paragraph (5), by striking ‘‘rates’’ 

13 and inserting ‘‘rate’’; and 

14 (D) by redesignating paragraphs (4) and 

15 (5) as paragraphs (2) and (3), respectively. 

16 SEC. 5309. ADDITION OF POVERTY REDUCTION BONUS TO 

17 TANF. 

18 Section 403(a) of the Social Security Act (42 U.S.C. 

19 603(a)), is amended by adding at the end the following: 

20 ‘‘(6) BONUS TO REWARD STATES THAT REDUCE

21 POVERTY.—

22 ‘‘(A) IN GENERAL.—The Secretary shall 

23 make a grant pursuant to this paragraph to 

24 each State for each fiscal year beginning with 

25 fiscal year 2005 for which the State is a quali-
662

•HR 936 IH 

1 fied poverty reduction State, as determined 

2 under subparagraph (C). 

3 ‘‘(B) AMOUNT OF GRANT.—With respect 

4 to a fiscal year, each State that the Secretary 

5 determines is a qualified poverty reduction 

6 State for that fiscal year shall receive a grant 

7 in an amount equal to the ratio of the amount 

8 appropriated under subparagraph (D) for that 

9 fiscal year to the total number of all such 

10 States for that fiscal year. 

11 ‘‘(C) DETERMINATION OF QUALIFIED POV12 ERTY REDUCTION STATES.—For purposes of 

13 subparagraph (A), a State shall be considered a 

14 qualified poverty reduction State for a fiscal 

15 year if the State satisfies the following: 

16 ‘‘(i) PROVISION OF CERTAIN ASSIST17 ANCE.—The State demonstrates to the 

18 Secretary that the State program funded 

19 under this part provides in each local polit20 ical subdivision of the State for at least 3 

21 of the following: 

22 ‘‘(I) A work expense or transpor23 tation allowance for any low-income 

24 family that is not receiving assistance 

25 under the State program. 
663

•HR 936 IH 

1 ‘‘(II) The use of income dis2 regards sufficient to allow a family to 

3 remain eligible for at least partial as4 sistance under the State program 

5 until the sum of the family’s earned 

6 income and cash assistance exceed the 

7 poverty line applicable to such family. 

8 ‘‘(III) On-the-job training or 

9 work/study programs in occupations 

10 likely to provide a livable wage. For 

11 purposes of this subclause, the term 

12 ‘livable wage’ means such hourly wage 

13 as is necessary for an employee to 

14 earn, while working 40 hours a week 

15 on a full-year basis, an amount equal 

16 to the amount of the Federal poverty 

17 level for a family of 4 for that year 

18 (as published in the Federal Register 

19 by the Department of Health and 

20 Human Services under the authority 

21 of section 673(2) of the Omnibus 

22 Budget Reconciliation Act of 1981). 

23 ‘‘(IV) Temporary subsidized em24 ployment that provides at least the 

25 minimum wage applicable under sec-
664

•HR 936 IH 

1 tion 6 of the Fair Labor Standards 

2 Act for parents or caregivers who are 

3 unable to find other employment. 

4 ‘‘(V) Non-recurrent assistance to 

5 help pay for the repair of a vehicle or 

6 appliance, past-due rent, a utility or 

7 fuel bill, vehicle licensing or insurance 

8 costs, or for other purposes deemed 

9 necessary by the State to enable eligi10 ble families with children to maintain 

11 stable work and living situations. 

12 ‘‘(VI) A minimum monthly child 

13 support payment paid by the State to 

14 a low-income family with at least 1 

15 child support order if the noncustodial 

16 parent does not pay the minimum 

17 payment required under the order. 

18 ‘‘(VII) With respect to families 

19 that have assigned to the State in ac20 cordance with section 408(a)(3) any 

21 child support rights a family member 

22 may have (on behalf of the family 

23 member or of any other person for 

24 whom the family member has applied 

25 for or is receiving such assistance), a 
665

•HR 936 IH 

1 pass through of child support collec2 tions to the family, with at least $100 

3 per month of the pass-through pay4 ment disregarded for purposes of cal5 culating assistance for the family 

6 under the State program funded 

7 under this part. 

8 ‘‘(VIII) An increase in the 

9 State’s minimum wage to at least 

10 $6.15 per hour or a State minimum 

11 wage indexed to inflation. 

12 ‘‘(ii) DEMONSTRATION OF IMPROVED

13 OUTCOMES FOR CURRENT AND FORMER

14 RECIPIENTS OF ASSISTANCE.—

15 ‘‘(I) IN GENERAL.—With respect 

16 to a fiscal year, the State is one of the 

17 10 States with the greatest year-to18 year decline or, in the absence of 10 

19 such States, the least year-to-year in20 crease, in the child poverty rate ad21 justed by the severity of poverty. For 

22 purposes of this subclause, the child 

23 poverty rate adjusted by the severity 

24 of poverty shall be determined with 

25 respect to a State for a fiscal year by 
666

•HR 936 IH 

1 multiplying the State’s percentage of 

2 children with family income below the 

3 poverty line for that fiscal year by the 

4 average difference per poor child in 

5 the State between the child’s family 

6 income and the poverty line. 

7 ‘‘(II) DETERMINATION OF IN8 COME.—For purposes of subclause 

9 (I), the Secretary shall, to the extent 

10 feasible, consider the following in cal11 culating a family’s income: 

12 ‘‘(aa) Cash income, such as 

13 earnings, child support received 

14 by the family, and government 

15 cash payments. 

16 ‘‘(bb) Benefits received 

17 under the Food Stamp Act of 

18 1977. 

19 ‘‘(cc) Federal, State, or local 

20 income taxes paid by the family 

21 for the preceding taxable year 

22 and the refundable portion of any 

23 tax credits received. 

24 ‘‘(D) APPROPRIATION.—Out of any money 

25 in the Treasury of the United States not other-
667

•HR 936 IH 

1 wise appropriated, there is appropriated for fis2 cal year 2005 and each fiscal year thereafter, 

3 $200,000,000 to make the grants required 

4 under this paragraph.’’. 

5 SEC. 5310. PARTICIPATION IN WORKFORCE INVESTMENT 

6 BOARDS. 

7 (a) STATE WORKFORCE INVESTMENT BOARDS.—

8 Section 111(b)(1)(C) of the Workforce Investment Act of 

9 1998 (29 U.S.C. 2821(b)(1)(C)) is amended—

10 (1) by redesignating clause (vii) as clause (viii); 

11 (2) in clause (vi), by striking ‘‘and’’ at the end; 

12 and 

13 (3) by inserting after clause (vi) the following: 

14 ‘‘(vii) a representative of a lead State 

15 agency with responsibility for the State 

16 program funded under part A of title IV of 

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

18 seq.); and’’. 

19 (b) LOCAL WORKFORCE INVESTMENT BOARDS.—

20 Section 117(b)(2)(A) of the Workforce Investment Act of 

21 1998 (29 U.S.C. 2832(b)(2)(A)) is amended—

22 (1) in clause (v), by striking ‘‘and’’ at the end; 

23 and 

24 (2) by adding at the end the following: 
668

•HR 936 IH 

1 ‘‘(vii) a representative of the local 

2 agency, if any, with responsibility for the 

3 program funded under part A of title IV of 

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

5 seq.); and’’. 

6 SEC. 5311. CLARIFICATION OF TANF PURPOSE. 

7 Section 401(a) of the Social Security Act (42 U.S.C. 

8 601(a)) is amended—

9 (1) by redesignating paragraphs (3) and (4) as 

10 paragraphs (4) and (5), respectively; and 

11 (2) by inserting after paragraph (2), the fol12 lowing: 

13 ‘‘(3) reduce poverty among families with chil14 dren;’’.

15 SEC. 5312. EFFECTIVE DATE. 

16 (a) IN GENERAL.—Except as provided in subsection 

17 (b), the amendments made by this subtitle take effect on 

18 October 1, 2003. 

19 (b) STATE OPTION TO PHASE-IN REPLACEMENT OF

20 CASELOAD REDUCTION CREDIT WITH EMPLOYMENT

21 CREDIT AND DELAY APPLICABILITY OF OTHER PROVI22 SIONS.—A State may elect to have the amendments made 

23 by sections 5302(b), 5303, and 5304 of this Act not apply 

24 to the State program funded under part A of title IV of 

25 the Social Security Act until October 1, 2005, and if the 
669

•HR 936 IH 

1 State makes the election, then, in determining the partici2 pation rate of the State for purposes of sections 407 and 

3 409(a)(3) of the Social Security Act for fiscal year 2005, 

the State shall be credited with 1 4 ⁄2 of the reduction in the 

5 rate that would otherwise result from applying section 

6 407(a)(2) of the Social Security Act (as added by section 

7 5302(a)(1) of this Act) to the State for fiscal year 2004 

and 1 8 ⁄2 of the reduction in the rate that would otherwise 

9 result from applying such section 407(b)(2) to the State 

10 for fiscal year 2005. 

11 Subtitle E—Incentives to Serve 

12 Families 

13 SEC. 5401. DEVELOPMENT OF MODEL CASEWORKER TRAIN14 ING MATERIALS. 

15 (a) DEVELOPMENT OF MODEL CASEWORKER TRAIN16 ING MATERIALS.—The Secretary of Health and Human 

17 Services shall develop model training materials (including 

18 guidebooks and other resources) for caseworkers assigned 

19 to administer the provision of assistance to a family under 

20 the State program funded under part A of title IV of the 

21 Social Security Act (42 U.S.C. 601 et seq.). The model 

22 training materials shall be designed to train the case23 workers to improve the access of the family to other serv24 ices and benefits that the family, or individuals within the 

25 family, may be eligible for, including—
670

•HR 936 IH 

1 (1) benefits under the food stamp program, as 

2 defined in section 3(h) of the Food Stamp Act of 

3 1977 (7 U.S.C. 2012(h)); 

4 (2) medical assistance under the medicaid pro5 gram under title XIX of the Social Security Act (42 

6 U.S.C. 1396 et seq.); 

7 (3) child health assistance under the State chil8 dren’s health insurance program under title XXI of 

9 the Social Security Act (42 U.S.C. 1397aa et seq.); 

10 (4) the special supplemental nutrition program 

11 for women, infants, and children (WIC) under sec12 tion 17 of the Child Nutrition Act of 1966 (42 

13 U.S.C. 1786); 

14 (5) child care assistance; 

15 (6) transportation assistance; 

16 (7) education or training assistance; 

17 (8) job placement activities; 

18 (9) the earned income tax credit under section 

19 32 of the Internal Revenue Code of 1986; and 

20 (10) services to treat or alleviate substance 

21 abuse, mental illness, or family violence. 

22 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated to the Secretary of Health 

24 and Human Services to carry out this section such sums 
671

•HR 936 IH 

1 as may be necessary for fiscal year 2004 and each fiscal 

2 year thereafter. 

3 SEC. 5402. EXCEPTION TO LIMIT ON TANF ADMINISTRATIVE 

4 EXPENDITURES FOR CASEWORKER BONUSES 

5 AND OTHER STATE INITIATIVES TO ELIMI6 NATE BARRIERS TO WORK. 

7 Section 404(b)(2) of the Social Security Act (42 

8 U.S.C. 604(b)(2)) is amended—

9 (1) in the heading, by striking ‘‘EXCEPTION’’; 

10 and inserting ‘‘EXCEPTIONS’’; 

11 (2) by striking ‘‘Paragraph (1)’’ and inserting 

12 the following: 

13 ‘‘(A) INFORMATION TECHNOLOGY AND

14 COMPUTERIZATION.—Paragraph (1)’’; and 

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

16 ‘‘(B) CASEWORKER BONUSES AND OTHER

17 STATE INITIATIVES TO ELIMINATE BARRIERS

18 TO WORK.—

19 ‘‘(i) IN GENERAL.—Paragraph (1) 

20 shall not apply to the use of a grant to 

21 provide a cash bonus to a caseworker for 

22 a family receiving assistance under the 

23 State program funded under this part 

24 based on the number of such families that 

25 the State determines the caseworker as-
672

•HR 936 IH 

1 sists achieve a goal described in clause (ii), 

2 or for expenditures incurred for other 

3 State initiatives designed to eliminate bar4 riers to work for families receiving assist5 ance under the State program funded 

6 under this part. 

7 ‘‘(ii) CASEWORKER GOALS.—For pur8 poses of clause (i), the goals described in 

9 this clause are the following: 

10 ‘‘(I) Obtain employment that 

11 provides wages and benefits that en12 able the family to have income that 

13 exceeds the poverty line applicable to 

14 a family of the size involved. 

15 ‘‘(II) Obtain supportive services 

16 and benefits for which the family is el17 igible. 

18 ‘‘(III) With respect to an indi19 vidual within a family, overcome a 

20 barrier to the individual’s employ21 ment, including a barrier resulting 

22 from a lack of transportation or child 

23 care, a life crisis due to family vio24 lence, substance abuse, or a mental or 

25 physical disability. 
673

•HR 936 IH 

1 ‘‘(IV) With respect to an indi2 vidual within a family, retain employ3 ment for at least 6 months.’’. 

4 SEC. 5403. STRENGTHENING OF TANF INDIVIDUAL RESPON5 SIBILITY PLANS. 

6 Section 408(b) of the Social Security Act (42 U.S.C. 

7 608(b)) is amended—

8 (1) in paragraph (2)—

9 (A) in subparagraph (A)—

10 (i) in the matter preceding clause (i), 

11 by striking ‘‘may’’ and inserting ‘‘shall’’; 

12 and 

13 (ii) in clause (i), by striking ‘‘imme14 diately into private sector employment’’ 

15 and inserting ‘‘into a job leading to stable 

16 employment with earnings above the pov17 erty line applicable to a family of the size 

18 involved (based on 35 hours of work per 

19 week) and health care benefits for the em20 ployee and the employee’s dependents’’; 

21 and 

22 (B) in subparagraph (B)—

23 (i) in the matter preceding clause (i), 

24 by striking ‘‘may’’ and inserting ‘‘shall’’; 
674

•HR 936 IH 

1 (ii) in clause (i), by striking ‘‘(or, at 

2 the option of the State, 180 days)’’; 

3 (iii) in clause (ii), by striking ‘‘(or, at 

4 the option of the State, 90 days)’’; and

5 (2) by striking paragraph (4) and inserting the 

6 following: 

7 ‘‘(4) PENALTY FOR NONCOMPLIANCE BY THE

8 STATE.—In addition to any other penalties that may 

9 be imposed against a State for failure to comply 

10 with the requirements of this part, the Secretary 

11 may reduce the grant payable to a State under sec12 tion 403(a)(1) if the Secretary determines that the 

13 State has failed, without good cause, to comply with 

14 the requirements of this subsection.’’. 

15 SEC. 5404. EFFECTIVE DATE. 

16 The amendments made by this subtitle take effect on 

17 October 1, 2003. 

18 Subtitle F—Addressing Work 

19 Barriers 

20 SEC. 5501. FUNDING FOR ACCESS TO JOBS PROGRAM. 

21 Section 3037 of the Transportation Equity Act for 

22 the 21st Century (49 U.S.C. 5309 note) is amended in 

23 subsection (l)(1)—

24 (1) in subparagraph (A), by striking clauses 

25 (iv) and (v) and inserting the following: 
675

•HR 936 IH 

1 ‘‘(iv) $150,000,000 for fiscal year 

2 2004; 

3 ‘‘(v) $170,000,000 for fiscal year 

4 2005; 

5 ‘‘(vi) $190,000,000 for fiscal year 

6 2006; 

7 ‘‘(vii) $200,000,000 for fiscal year 

8 2007; and 

9 ‘‘(viii) $225,000,000 for fiscal year 

10 2008.’’; 

11 (2) in subparagraph (B), by striking clauses 

12 (iv) and (v) and inserting the following: 

13 ‘‘(iv) $50,000,000 for each of fiscal 

14 years 2004 through 2008.’’; and 

15 (3) in subparagraph (C)—

16 (A) by inserting ‘‘and’’ after the semicolon 

17 in clause (ii); 

18 (B) by striking ‘‘; and’’ in clause (iii) and 

19 inserting a period; and 

20 (C) by striking clause (iv). 

21 SEC. 5502. REQUIREMENT TO IDENTIFY AND PROVIDE 

22 SERVICES TO ADDRESS BARRIERS TO EM23 PLOYMENT OF TANF RECIPIENTS. 

24 (a) REQUIREMENT TO IDENTIFY AS PART OF INDI25 VIDUAL RESPONSIBILITY PLAN.—Section 408(b) of the 
676

•HR 936 IH 

1 Social Security Act (42 U.S.C. 608(b)), as amended by 

2 section 5403, is amended—

3 (1) in paragraph (1), by striking ‘‘who—’’ and 

4 all that follows and inserting ‘‘has attained 18 years 

5 of age, using caseworkers who are trained to utilize 

6 assessment methods approved by the State to iden7 tify recipients with severe barriers to employment, 

8 such as being subjected to domestic violence, having 

9 mental health, substance or alcohol abuse problems, 

10 homelessness, a physical or mental disability, or illit11 eracy problems.’’; and 

12 (2) in paragraph (2)(A)(iv), by inserting ‘‘over13 come any severe barriers to employment identified 

14 by the State under paragraph (1), and to’’ after 

15 ‘‘will be able to’’. 

16 (b) EXEMPTION FROM WORK REQUIREMENT IF

17 STATE FAILS TO PROVIDE SERVICES.—Section 407(e) of 

18 the Social Security Act (42 U.S.C. 607(e)) is amended—

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

20 (2)’’ and inserting ‘‘paragraphs (2) and (3)’’; 

21 (2) in paragraph (2), in the heading, by strik22 ing ‘‘EXCEPTION’’; and inserting ‘‘SINGLE CUSTO23 DIAL PARENT WITH A YOUNG CHILD’’; and 

24 (3) by adding at the end the following: 
677

•HR 936 IH 

1 ‘‘(3) INDIVIDUAL WITH A SEVERE BARRIER TO

2 EMPLOYMENT TO WHOM THE STATE FAILS TO PRO3 VIDE SERVICES.—Notwithstanding paragraph (1), a 

4 State may not reduce assistance under the State 

5 program funded under this part based on a refusal 

6 of an individual to engage in work required in ac7 cordance with this section if, as part of the assess8 ment required under section 408(b)(1), the indi9 vidual has been identified as having a severe barrier 

10 to employment and the State fails to provide services 

11 necessary to overcome the barrier.’’. 

12 SEC. 5503. STATE OPTION TO ESTABLISH EXCEPTIONS 

13 FROM TIME LIMIT FOR RECEIPT OF TANF AS14 SISTANCE BASED ON SEVERE BARRIERS TO 

15 EMPLOYMENT. 

16 Section 408(a)(7)(C) of the Social Security Act (42 

17 U.S.C. 608(a)(7)(C)) is amended—

18 (1) in clause (ii), by striking ‘‘The average’’ 

19 and inserting ‘‘Subject to clause (iv), the average’’; 

20 and 

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

22 ‘‘(iv) STATE OPTION FOR EXCEPTIONS

23 BASED ON SEVERE BARRIERS TO EMPLOY24 MENT.—At State option, the limit de25 scribed in clause (ii) shall not apply with 
678

•HR 936 IH 

1 respect to each category of exception based 

2 on severe barriers to employment as the 

3 State may determine.’’. 

4 SEC. 5504. EFFECTIVE DATE. 

5 The amendments made by this subtitle take effect on 

6 October 1, 2003. 

7 Subtitle G—Protection for Families 

8 in Need 

9 SEC. 5601. EARN-BACK OF MONTHS OF TANF ASSISTANCE. 

10 Section 408(a)(7) of the Social Security Act (42 

11 U.S.C. 608(a)(7)), as amended by section 5301, is amend12 ed by inserting after subparagraph (E) the following: 

13 ‘‘(F) EARN-BACK OF MONTHS OF ASSIST14 ANCE.—In determining the number of months 

15 for which an adult has received assistance 

16 under a State or tribal program funded under 

17 this part, the State or tribe shall disregard 1 

18 month for every 3 months that the adult is en19 gaged in a work activity defined in paragraph 

20 (1), (2), or (3) of section 407(d) in accordance 

21 with the requirements of section 407(c) and 

22 during which the individual is not receiving as23 sistance under the State program funded under 

24 this part.’’. 
679

•HR 936 IH 

1 SEC. 5602. ESTABLISHMENT OF A FAIR CONCILIATION 

2 PROCESS FOR FAMILIES UNDER TANF. 

3 Section 408 of the Social Security Act (42 U.S.C. 

4 608) is amended by adding at the end the following: 

5 ‘‘(h) FAIR CONCILIATION PROCEDURES.—

6 ‘‘(1) IN GENERAL.—Any case closed under the 

7 State program funded under this part shall be sub8 ject to a customer service review in accordance with 

9 the requirements of this subsection to ensure that a 

10 case is not erroneously terminated and to give a 

11 family another opportunity to participate in the pro12 gram. 

13 ‘‘(2) REQUIREMENTS.—

14 ‘‘(A) INITIAL REVIEW.—A customer service 

15 reviewer shall examine the case record for each 

16 case closed to determine—

17 ‘‘(i) whether the caseworker respon18 sible for the case has attempted to make 

19 personal contact with the parent or care20 giver before recommending closure of the 

21 case; and 

22 ‘‘(ii) whether sufficient documentation 

23 exists in the case record to establish both 

24 a factual and policy basis for closure of the 

25 case, including documentation of written 
680

•HR 936 IH 

1 notice of the closure to the parent or care2 giver. 

3 ‘‘(B) RETURN TO CASEWORKER.—Any 

4 case in which a customer service reviewer deter5 mines that no personal contact has been at6 tempted before closure of the case, or that in7 sufficient documentation exists, shall be re8 turned to the caseworker for the provision of 

9 such attempted contact or documentation. 

10 ‘‘(C) ADDITIONAL ATTEMPTED PERSONAL

11 CONTACT.—If a case is not returned to a case12 worker under subparagraph (A), the customer 

13 service reviewer shall attempt to make personal 

14 contact with the parent or caregiver involved, 

15 including, if 3 attempts are required, an at16 tempt outside of normal business hours. A case 

17 shall be closed after 3 unsuccessful attempts. 

18 ‘‘(D) DETERMINATION OF GOOD CAUSE

19 FOR EXCEPTION TO CLOSURE.—

20 ‘‘(i) IN GENERAL.—With respect to a 

21 case in which a caseworker or a customer 

22 service reviewer has made personal contact 

23 with the parent or caregiver, the customer 

24 service reviewer shall determine whether 

25 barriers to participation in the program 
681

•HR 936 IH 

1 exist, whether there are grounds for ex2 emption from the time limits or any other 

3 program requirements, or whether there 

4 was an error in the application of the facts 

5 or policy. 

6 ‘‘(ii) MODIFICATION OF INDIVIDUAL

7 RESPONSIBILITY PLAN.—If a customer 

8 service reviewer determines under clause 

9 (i) that a case should not be closed, the 

10 customer service reviewer shall work with 

11 the parent or caregiver to modify the par12 ent’s or caregiver’s individual responsibility 

13 plan developed under subsection (b) as ap14 propriate, including with respect to the 

15 provision of any additional services needed 

16 to assist the individual in becoming work17 ready. 

18 ‘‘(E) PLAN FOR COMPLIANCE.—If a cus19 tomer service reviewer determines that subpara20 graph (D) does not apply and a parent or care21 giver is not subject to the time limit for receipt 

22 of assistance under subsection (a)(7), the re23 viewer shall ask the parent or caregiver if the 

24 parent or caregiver is now willing to comply 

25 with program requirements, and establish a 
682

•HR 936 IH 

1 plan with the parent or caregiver for compli2 ance. If the parent or caregiver does not comply 

3 with such plan, the case shall be closed without 

4 regard to the preceding subparagraphs of this 

5 paragraph. 

6 ‘‘(F) WRITTEN NOTICE.—With respect to 

7 a case closed by a customer service reviewer 

8 under this subsection, the reviewer shall send 

9 the family involved a final written notice of the 

10 case closure that informs the family of—

11 ‘‘(i) the specific factual basis of the 

12 closure; 

13 ‘‘(ii) the steps that the family can 

14 take to maintain eligibility for assistance 

15 under the State program; and 

16 ‘‘(iii) the procedure for appealing the 

17 closure decision.’’. 

18 SEC. 5603. TREATMENT OF ALIENS UNDER THE TANF PRO19 GRAM. 

20 (a) EXCEPTION TO 5-YEAR BAN FOR QUALIFIED

21 ALIENS.—Section 403(c)(2) of the Personal Responsi22 bility and Work Opportunity Reconciliation Act of 1996 

23 (8 U.S.C. 1613(c)(2)) is amended by adding at the end 

24 the following: 
683

•HR 936 IH 

1 ‘‘(L) Benefits under the Temporary Assist2 ance for Needy Families program described in 

3 section 402(b)(3)(A).’’. 

4 (b) BENEFITS NOT SUBJECT TO REIMBURSE5 MENT.—Section 423(d) of the Personal Responsibility and 

6 Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 

7 1138a note) is amended by adding at the end the fol8 lowing: 

9 ‘‘(12) Benefits under part A of title IV of the 

10 Social Security Act except for cash assistance pro11 vided to a sponsored alien who is subject to deeming 

12 pursuant to section 408(i) of the Social Security 

13 Act.’’. 

14 (c) TREATMENT OF ALIENS.—Section 408 of the So15 cial Security Act (42 U.S.C. 608), as amended by section 

16 5602, is amended by adding at the end the following: 

17 ‘‘(i) SPECIAL RULES RELATING TO THE TREATMENT

18 OF 213A ALIENS.—

19 ‘‘(1) IN GENERAL.—In determining whether a 

20 213A alien is eligible for cash assistance under a 

21 State program funded under this part, and in deter22 mining the amount or types of such assistance to be 

23 provided to the alien, the State shall apply the rules 

24 of paragraphs (1), (2), (3), (5), and (6) of sub25 section (f) of this section by substituting ‘213A’ for 
684

•HR 936 IH 

1 ‘non-213A’ each place it appears, subject to section 

2 421(e) of the Personal Responsibility and Work Op3 portunity Reconciliation Act of 1996, and subject to 

4 section 421(f) of such Act (which shall be applied by 

5 substituting ‘section 408(i) of the Social Security 

6 Act’ for ‘subsection (a)’). 

7 ‘‘(2) 213A ALIEN DEFINED.—An alien is a 

8 213A alien for purposes of this subsection if the affi9 davit of support or similar agreement with respect to 

10 the alien that was executed by the sponsor of the 

11 alien’s entry into the United States was executed 

12 pursuant to section 213A of the Immigration and 

13 Nationality Act.’’. 

14 SEC. 5604. EFFECTIVE DATE. 

15 The amendments made by this subtitle take effect on 

16 October 1, 2003. 

17 Subtitle H—TANF Reauthorization 

18 SEC. 5701. REAUTHORIZATION OF TANF STATE FAMILY AS19 SISTANCE GRANTS. 

20 Section 403(a)(1) of the Social Security Act (42 

21 U.S.C. 603(a)(1)) is amended—

22 (1) in subparagraph (A), by striking ‘‘fiscal 

23 years 1996, 1997, 1998, 1999, 2000, 2001, and 

24 2002’’ and inserting ‘‘the fiscal years during the pe-
685

•HR 936 IH 

1 riod beginning with fiscal year 1996 and ending with 

2 fiscal year 2009’’; and 

3 (2) in subparagraph (E), by striking ‘‘fiscal 

4 years 1996, 1997, 1998, 1999, 2000, 2001, and 

5 2002’’ and inserting ‘‘each of the fiscal years during 

6 the period beginning with fiscal year 1996 and end7 ing with fiscal year 2009’’. 

8 SEC. 5702. PROHIBITION ON SUPPLANTATION OF TANF 

9 FUNDS. 

10 Section 408(a) of the Social Security Act (42 U.S.C. 

11 608(a)) is amended by adding at the end the following 

12 new paragraph: 

13 ‘‘(12) SUPPLEMENT NOT SUPPLANT.—Funds 

14 made available under this part shall be used to sup15 plement, not supplant, other Federal, State, or local 

16 funds that are used for existing services and activi17 ties that promote the purposes of this part.’’.

18 TITLE VI—FAIR START 

19 Subtitle A—Child and Adult Care 

20 Food Program 

21 SEC. 6001. PARTICIPATION OF FOR-PROFIT CARE CENTERS 

22 IN CHILD AND ADULT CARE FOOD PROGRAM. 

23 Section 17(a)(2)(B) of the Richard B. Russell Na24 tional School Lunch Act (42 U.S.C. 1766(a)(2)(B)) is 

25 amended—
686

•HR 936 IH 

1 (1) by striking ‘‘if—’’ and all that follows 

2 through ‘‘2002, at’’ and inserting ‘‘if at’’; and 

3 (2) by striking ‘‘meals; or’’ and all that follows 

4 and inserting ‘‘meals;’’. 

5 SEC. 6002. CATEGORICAL ELIGIBILITY REQUIREMENTS. 

6 Section 17(f)(3)(A)(ii) of the Richard B. Russell Na7 tional School Lunch Act (42 U.S.C. 1766(f)(3)(A)(ii)) is 

8 amended by adding at the end the following: 

9 ‘‘(V) CATEGORICAL ELIGI10 BILITY.—In making a determination 

11 of income eligibility under subclauses 

12 (I)(cc) and (II), a family or group day 

13 care home sponsoring organization 

14 may consider a provider participating 

15 in or subsidized under, or a provider 

16 with a child participating in or sub17 sidized under, a federally or State 

18 supported child care or other benefit 

19 program with an income eligibility 

20 limit that does not exceed the eligi21 bility standard for free or reduced 

22 price meals under section 9 to be a 

23 provider whose household meets the 

24 income eligibility guidelines under sec25 tion 9.’’. 
687

•HR 936 IH 

1 SEC. 6003. INCREASE IN ADMINISTRATIVE REIMBURSE2 MENT RATES. 

3 Section 17(f)(3) of the Richard B. Russell National 

4 School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by 

5 striking subparagraph (B) and inserting the following: 

6 ‘‘(B) REIMBURSEMENT FOR ADMINISTRA7 TIVE EXPENSES.—

8 ‘‘(i) IN GENERAL.—Family or group 

9 day care home sponsoring organizations 

10 shall also receive reimbursement for ad11 ministrative expenses in amounts not ex12 ceeding the maximum allowable levels pre13 scribed by the Secretary. 

14 ‘‘(ii) ADJUSTMENT.—The maximum 

15 allowable levels prescribed under clause (i) 

16 shall be—

17 ‘‘(I) adjusted July 1 of each year 

18 to reflect changes for the 12-month 

19 period ending in the preceding June, 

20 in the Consumer Price Index for All 

21 Urban Consumers published by the 

22 Bureau of Labor Statistics of the De23 partment of Labor, rounded to the 

24 nearest lower dollar increment; and 

25 ‘‘(II) in addition to the adjust26 ments required under subclause (I), 
688

•HR 936 IH 

1 increased by $2.00 for each level de2 scribed in clause (i).’’. 

3 SEC. 6004. PROGRAM FOR AT-RISK SCHOOL CHILDREN. 

4 Section 17(r) of the Richard B. Russell National 

5 School Lunch Act (42 U.S.C. 1766(r)) is amended—

6 (1) in paragraph (1)(B)—

7 (A) by inserting ‘‘(i)’’ after ‘‘(B)’’; 

8 (B) by striking ‘‘in a geographical area’’ 

9 and all that follows through the period and in10 serting the following: ‘‘in a geographical area—

11 ‘‘(I) that is served by a school in 

12 which at least 50 percent of the children 

13 are eligible for free or reduced price school 

14 meals under this Act or the Child Nutri15 tion Act of 1966 (42 U.S.C. 1771 et seq.); 

16 or 

17 ‘‘(II) in which poor economic condi18 tions exist, as determined by the Secretary 

19 based on—

20 ‘‘(aa) information provided from 

21 the local department of welfare, zon22 ing commission, or census tracts; or 

23 ‘‘(bb) information from other ap24 propriate sources; or’’; and 

25 (C) by adding at the end the following: 
689

•HR 936 IH 

1 ‘‘(ii) is enrolled in a program authorized 

2 under this subsection operated at a site not de3 scribed in clause (i).’’; 

4 (2) in paragraph (4), by striking subparagraphs 

5 (B) and (C) and inserting the following: 

6 ‘‘(B) RATES.—

7 ‘‘(i) MEALS.—A meal shall be reim8 bursed under this subsection—

9 ‘‘(I) for children participating in 

10 a program at a site described in para11 graph (1)(B)(i), at the rate estab12 lished for free meals under subsection 

13 (c); and 

14 ‘‘(II) for children enrolled in a 

15 program under paragraph 1(B)(ii), at 

16 the applicable rate for meals estab17 lished under subsection (c). 

18 ‘‘(ii) SUPPLEMENTS.—A supplement 

19 shall be reimbursed under this sub20 section—

21 ‘‘(I) for children participating in 

22 a program at a site described in para23 graph (1)(B)(i), at the rate estab24 lished for a free supplement under 

25 subsection (c)(3); and 
690

•HR 936 IH 

1 ‘‘(II) for children enrolled in a 

2 program under paragraph 1(B)(ii), at 

3 the applicable rate for supplements es4 tablished under subsection (c)(3). 

5 ‘‘(C) NO CHARGE.—In the case of at-risk 

6 school child participating in a program at a site 

7 described in paragraph (1)(B)(i), a meal or 

8 supplement provided under this subsection to 

9 the child shall be served without charge.’’; and 

10 (3) by striking paragraph (5). 

11 Subtitle B—Food Stamp Program 

12 SEC. 6101. RESTORATION OF FOOD STAMP BENEFITS FOR 

13 QUALIFIED ALIENS. 

14 (a) LIMITED ELIGIBILITY OF QUALIFIED ALIENS

15 FOR CERTAIN FEDERAL PROGRAMS.—

16 (1) IN GENERAL.—Section 402(a) of the Per17 sonal Responsibility and Work Opportunity Rec18 onciliation Act of 1996 (8 U.S.C. 1612(a)) is 

19 amended—

20 (A) in paragraph (2)—

21 (i) in subparagraph (A), by striking 

22 ‘‘Federal programs’’ and inserting ‘‘Fed23 eral program’’; 

24 (ii) in subparagraph (D)—

25 (I) by striking clause (ii); and 
691

•HR 936 IH 

1 (II) in clause (i)—

2 (aa) by striking ‘‘(i) SSI.—

3 ’’ and all that follows through 

4 ‘‘paragraph (3)(A)’’ and inserting 

5 the following: 

6 ‘‘(i) IN GENERAL.—With respect to 

7 the specified Federal program described in 

8 paragraph (3)’’; 

9 (bb) by redesignating sub10 clauses (II) through (IV) as 

11 clauses (ii) through (iv) and in12 denting appropriately; 

13 (cc) by striking ‘‘subclause 

14 (I)’’ each place it appears and in15 serting ‘‘clause (i)’’; and 

16 (dd) in clause (iv) (as redes17 ignated by item (bb)), by striking 

18 ‘‘this clause’’ and inserting ‘‘this 

19 subparagraph’’; 

20 (iii) in subparagraph (E), by striking 

21 ‘‘paragraph (3)(A) (relating to the supple22 mental security income program)’’ and in23 serting ‘‘paragraph (3)’’; 

24 (iv) in subparagraph (F); 
692

•HR 936 IH 

1 (I) by striking ‘‘Federal pro2 grams’’ and inserting ‘‘Federal pro3 gram’’; and 

4 (II) by striking clauses (i) and 

5 (ii) and inserting the following: 

6 ‘‘(i) was lawfully residing in the 

7 United States on August 22, 1996; and 

8 ‘‘(ii) is blind or disabled (as defined in 

9 paragraph (2) or (3) of section 1614(a) of 

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

11 1382c(a))).’’; 

12 (v) in subparagraph (G), by striking 

13 ‘‘Federal programs’’ and inserting ‘‘Fed14 eral program’’; 

15 (vi) in subparagraph (H), by striking 

16 ‘‘paragraph (3)(A) (relating to the supple17 mental security income program)’’ and in18 serting ‘‘paragraph (3)’’; 

19 (vii) by striking subparagraphs (I), 

20 (J), and (K); and 

21 (viii) by striking subparagraph (L); 

22 and 

23 (B) in paragraph (3)—

24 (i) by striking ‘‘means any’’ and all 

25 that follows through ‘‘The supplemental’’ 
693

•HR 936 IH 

1 and inserting ‘‘means the supplemental’’; 

2 and 

3 (ii) by striking subparagraph (B). 

4 (2) CONFORMING AMENDMENTS.—

5 (A) Section 402(b)(2)(F) of the Personal 

6 Responsibility and Work Opportunity Reconcili7 ation Act of 1996 (8 U.S.C. 1612(b)(2)(F)) is 

8 amended by striking ‘‘subsection (a)(3)(A)’’ and 

9 inserting ‘‘subsection (a)(3)’’. 

10 (B) Section 421(d) of the Personal Re11 sponsibility and Work Opportunity Reconcili12 ation Act of 1996 (8 U.S.C. 1631(d)) is amend13 ed by striking paragraph (3). 

14 (b) FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED

15 ALIENS FOR FEDERAL MEANS-TESTED PUBLIC BEN16 EFIT.—Section 403 of the Personal Responsibility and 

17 Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 

18 1613) is amended—

19 (1) in subsection (c)(2), by striking subpara20 graph (L) and inserting the following: 

21 ‘‘(L) Assistance or benefits under the Food 

22 Stamp Act of 1977 (7 U.S.C. 2011 et seq.).’’; 

23 and 

24 (2) in subsection (d)—
694

•HR 936 IH 

1 (A) by striking ‘‘not apply’’ and all that 

2 follows through ‘‘(1) an individual’’ and insert3 ing ‘‘not apply to an individual’’; and 

4 (B) by striking ‘‘; or’’ and all that follows 

5 through ‘‘402(a)(3)(B)’’. 

6 (c) AUTHORITY FOR STATES TO PROVIDE FOR AT7 TRIBUTION OF SPONSOR’S INCOME AND RESOURCES TO

8 THE QUALIFIED ALIEN WITH RESPECT TO STATE PRO9 GRAMS.—Section 422(b) of the Personal Responsibility 

10 and Work Opportunity Reconciliation Act of 1996 (8 

11 U.S.C. 1632(b)) is amended by adding at the end the fol12 lowing: 

13 ‘‘(8) Programs comparable to assistance or ben14 efits under the Food Stamp Act of 1977 (7 U.S.C. 

15 2011 et seq.).’’. 

16 (d) REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

17 SUPPORT.—Section 423(d) of the Personal Responsibility 

18 and Work Opportunity Reconciliation Act of 1996 (8 

19 U.S.C. 1183a note; Public Law 104–193) is amended by 

20 adding at the end the following: 

21 ‘‘(12) Benefits under the Food Stamp Act of 

22 1977 (7 U.S.C. 2011 et seq.), if a sponsor is unable 

23 to make the reimbursement because the sponsor ex24 periences hardship (including bankruptcy, disability, 

25 and indigence) or if the sponsor experiences severe 
695

•HR 936 IH 

1 circumstances beyond the control of the sponsor, as 

2 determined by the Secretary of Agriculture.’’. 

3 (e) DERIVATIVE ELIGIBILITY FOR BENEFITS.—Sec4 tion 436 of the Personal Responsibility and Work Oppor5 tunity Reconciliation Act of 1996 (8 U.S.C. 1646) is re6 pealed. 

7 (f) EFFECTIVE DATE.—

8 (1) IN GENERAL.—Except as provided in para9 graph (2), this section and the amendments made by 

10 this section take effect on the date of enactment of 

11 this Act. 

12 (2) EXCEPTIONS.—The amendments made 

13 by—

14 (A) subsection (a)(1)(A)(viii) take effect on 

15 April 1, 2003; 

16 (B) subsection (a)(2)(B) take effect on Oc17 tober 1, 2003; and 

18 (C) subsection (b) take effect on April 1, 

19 2004. 

20 SEC. 6102. CONFORMING FOOD STAMP AND MEDICAID IN21 COME DEFINITIONS; SIMPLIFIED INCOME 

22 CALCULATIONS. 

23 Section 5(d) of the Food Stamp Act of 1977 (7 

24 U.S.C. 2014(d)) is amended—
696

•HR 936 IH 

1 (1) in paragraphs (16) and (17), by striking 

2 ‘‘at the option of the State agency,’’ each place it 

3 appears; and 

4 (2) in paragraph (18), by striking ‘‘regular pay5 ments from a government source’’ and all that fol6 lows through ‘‘make the payments,’’. 

7 SEC. 6103. PREVENTION OF HUNGER AMONG FAMILIES 

8 WITH CHILDREN. 

9 (a) STANDARD DEDUCTION.—Section 5(e)(1) of the 

10 Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) is amend11 ed—

12 (1) by striking ‘‘8.31 percent’’ each place it ap13 pears and inserting ‘‘the applicable percentage es14 tablished under subparagraph (C)’’; and 

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

16 ‘‘(C) APPLICABLE PERCENTAGE.—The ap17 plicable percentage referred to in subpara18 graphs (A) and (B) shall be—

19 ‘‘(i) for fiscal year 2003, 8.5 percent; 

20 ‘‘(ii) for fiscal year 2004, 9 percent; 

21 ‘‘(iii) for fiscal year 2005, 9.5 percent; 

22 and 

23 ‘‘(iv) for fiscal year 2006 and each 

24 subsequent fiscal year, 10 percent.’’. 
697

•HR 936 IH 

1 (b) APPLICATION DATE.—The amendments made by 

2 this section shall apply on the later of— 

3 (1) July 1, 2004; or 

4 (2) at the option of a State agency of a State 

5 (as those terms are defined in section 3 of the Food 

6 Stamp Act of 1977 (7 U.S.C. 2012)), October 1, 

7 2004. 

8 SEC. 6104. ENCOURAGEMENT OF COLLECTION OF CHILD 

9 SUPPORT. 

10 (a) IN GENERAL.—Section 5(e)(2) of the Food 

11 Stamp Act of 1977 (7 U.S.C. 2014(e)(2)) is amended—

12 (1) by inserting ‘‘AND CHILD SUPPORT’’ after 

13 ‘‘INCOME’’; 

14 (2) in subparagraph (A)—

15 (A) by striking ‘‘DEFINITION OF’’ and all 

16 that follows through ‘‘not include’’ and insert17 ing the following: ‘‘LIMITATION ON DEDUC18 TION.—A deduction under this paragraph shall 

19 not apply to’’; 

20 (B) in clause (i), by striking ‘‘or’’; 

21 (C) in clause (ii), by striking the period at 

22 the end and inserting ‘‘; or’’; and 

23 (D) by adding at the end the following: 

24 ‘‘(iii) child support received to the ex25 tent of any reduction in public assistance 
698

•HR 936 IH 

1 to the household as a result of receiving 

2 the support.’’; and 

3 (3) in subparagraph (B)—

4 (A) by striking ‘‘with earned income’’; and 

5 (B) by striking ‘‘to compensate’’ and all 

6 that follows through the period and inserting 

7 the following: ‘‘and child support received from 

8 an identified or putative parent of a child in the 

9 household if that parent is not a household 

10 member.’’. 

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

12 this section take effect on—

13 (1) July 1, 2004; or 

14 (2) at the option of a State agency of a State 

15 (as those terms are defined in section 3 of the Food 

16 Stamp Act of 1977 (7 U.S.C. 2012)), October 1, 

17 2004. 

18 SEC. 6105. ELIMINATION OF EXCESS SHELTER EXPENSE DE19 DUCTION CAP FOR FAMILIES WITH HIGH 

20 SHELTER COSTS. 

21 Section 5(e)(6) of the Food Stamp Act of 1977 (7 

22 U.S.C. 2014(e)(6)) is amended—

23 (1) by striking subparagraph (B); and 

24 (2) by redesignating subparagraphs (C) and 

25 (D) as subparagraphs (B) and (C), respectively. 
699

•HR 936 IH 

1 SEC. 6106. PERIODIC REDETERMINATION OF ELIGIBILITY. 

2 (a) IN GENERAL.—Section 11(e) of the Food Stamp 

3 Act of 1977 (7 U.S.C. 2020(e)) is amended by striking 

4 paragraph (4) and inserting the following: 

5 ‘‘(4)(A) that the State agency shall periodically 

6 require the household to cooperate in a redetermina7 tion of eligibility under procedures consistent with 

8 paragraph (2); and 

9 ‘‘(B) that, in carrying out subparagraph (A), a 

10 State agency—

11 ‘‘(i) shall require a redetermination of eli12 gibility at least once—

13 ‘‘(I) every 12 months; or 

14 ‘‘(II) every 24 months, if—

15 ‘‘(aa) the State agency has con16 tact with the household at least once 

17 every 12 months; and 

18 ‘‘(bb) all adult household mem19 bers are elderly or disabled; 

20 ‘‘(ii) except as provided in clause (iii), shall 

21 continue to provide benefits to households dur22 ing the redetermination process; and 

23 ‘‘(iii) shall not provide further allotments 

24 to any household that the State agency deter25 mines has refused to cooperate in the redeter26 mination of eligibility;’’. 
700

•HR 936 IH 

1 (b) CONFORMING AMENDMENTS—

2 (1) Section 3 of the Food Stamp Act of 1977 

3 (7 U.S.C. 2012) is amended by striking subsection 

4 (c). 

5 (2) Section 5 of the Food Stamp Act of 1977 

6 (7 U.S.C. 2014) is amended—

7 (A) in subsection (d)(2), by striking ‘‘in 

8 the certification period’’; and 

9 (B) in subsection (e)—

10 (i) in paragraph (5)(B)(ii)(III), by 

11 striking ‘‘has been anticipated for the cer12 tification period’’ and inserting ‘‘was an13 ticipated when the household applied for 

14 benefits or at the most recent redetermina15 tion of eligibility’’; and 

16 (ii) in paragraph (6)(B)(iii)(II) (as re17 designated by section 6105(2)), by striking 

18 ‘‘the end of a certification period’’ and in19 serting ‘‘each redetermination of eligi20 bility’’. 

21 (3) Section 6(c)(1)(C)(iv) of the Food Stamp 

22 Act of 1977 (7 U.S.C. 2015(c)(1)(C)(iv)) is amend23 ed by striking ‘‘certification period’’ each place it ap24 pears and inserting ‘‘interval between required rede25 terminations of eligibility’’. 
701

•HR 936 IH 

1 (4) Section 8(c) of the Food Stamp Act of 1977 

2 (7 U.S.C. 2017) is amended—

3 (A) in the second sentence of paragraph 

4 (1), by striking ‘‘within a certification period’’; 

5 and 

6 (B) in paragraph (2)(B), by striking ‘‘expi7 ration of’’ and all that follows through ‘‘certifi8 cation period,’’ and inserting ‘‘termination of 

9 benefits to a household,’’. 

10 (5) Section 11(e) of the Food Stamp Act of 

11 1977 (7 U.S.C. 2020(e) is amended—

12 (A) in paragraph (10)—

13 (i) by striking ‘‘within the household’s 

14 certification period’’; and 

15 (ii) by striking ‘‘until such time’’ and 

16 all that follows through ‘‘occurs earlier’’; 

17 and 

18 (B) in paragraph (16), by striking ‘‘recer19 tification’’ and inserting ‘‘redetermination of 

20 the eligibility of’’. 

21 SEC. 6107. TRANSITIONAL BENEFITS OPTION. 

22 Section 11(s) of the Food Stamp Act of 1977 (7 

23 U.S.C. 2020(s)) is amended—

24 (1) in paragraph (2), by striking ‘‘5 months’’ 

25 and inserting ‘‘6 months’’; 
702

•HR 936 IH 

1 (2) in paragraph (3), by striking subparagraph 

2 (B) and inserting the following: 

3 ‘‘(B) any changes in circumstances that 

4 may result in an increase in the food stamp al5 lotment of the household and that the house6 hold elects to report (as verified in accordance 

7 with standards established by the Secretary).’’; 

8 and 

9 (3) by striking paragraph (5) and inserting the 

10 following: 

11 ‘‘(5) LIMITATION.—A household shall not be el12 igible for transitional benefits under this subsection 

13 if the household loses eligibility under section 6.’’. 

14 SEC. 6108. IMPROVING STATE INCENTIVES TO SERVE 

15 WORKING FAMILIES. 

16 (a) TARGETED QUALITY CONTROL SYSTEM.—Sec17 tion 16(c) of the Food Stamp Act of 1977 (7 U.S.C. 

18 2025(c)) is amended—

19 (1) in paragraph (2)(A), by inserting before the 

20 semicolon the following: ‘‘, as adjusted downward to 

21 eliminate any increases that may result from the 

22 State agency serving a higher percentage of house23 holds—

24 ‘‘(i) with earned income than—
703

•HR 936 IH 

1 ‘‘(I) the State agency served in fiscal 

2 year 1992; or 

3 ‘‘(II) the national average for the cur4 rent year; and 

5 ‘‘(ii) containing 1 or more members who 

6 are not United States citizens than—

7 ‘‘(I) the State agency served in fiscal 

8 year 1998; or 

9 ‘‘(II) the national average for the cur10 rent year’’; 

11 (2) in paragraph (4), by striking the first sen12 tence and inserting the following: ‘‘The Secretary 

13 may require a State agency to report any factors 

14 that the Secretary considers necessary to determine 

15 a State agency’s payment error rate, enhanced ad16 ministrative funding, claim for payment error, or 

17 performance under the measures under subsection 

18 (l).’’; and 

19 (3) in paragraph (5), by striking the first sen20 tence and inserting the following: ‘‘To facilitate the 

21 implementation of this subsection each State agency 

22 shall expeditiously submit to the Secretary data re23 garding its operations in each fiscal year sufficient 

24 for the Secretary to comply with subsection (l) and 

25 to establish the payment error rate for the State 
704

•HR 936 IH 

1 agency for such fiscal year and determine the 

2 amount of either incentive payments under para3 graph (1)(A) or claims under subparagraph (C) or 

4 (D) of paragraph (1).’’. 

5 (b) ADDITIONAL BONUSES FOR STATES THAT SERVE

6 WORKING FAMILIES.—Section 16 of the Food Stamp Act 

7 of 1977 (7 U.S.C. 2025) is amended by adding at the end 

8 the following: 

9 ‘‘(l) ADDITIONAL BONUSES FOR STATES THAT

10 SERVE WORKING FAMILIES.—

11 ‘‘(1) IN GENERAL.—The Secretary shall meas12 ure—

13 ‘‘(A) compliance with the deadlines under 

14 paragraphs (3) and (9) of section 11(e); 

15 ‘‘(B) the percentage of negative eligibility 

16 decisions that are made in error; and 

17 ‘‘(C) the number of households that 

18 have—

19 ‘‘(i) incomes less than 130 percent of 

20 the poverty rate; 

21 ‘‘(ii) annual earnings equal to at least 

22 1000 times the Federal minimum hourly 

23 rate under the Fair Labor Standards Act 

24 of 1938 (29 U.S.C. 201 et seq.); and 

25 ‘‘(iii) children under age 18; 
705

•HR 936 IH 

1 that receive food stamps in the State as a per2 centage of the number of the low-income work3 ing households with children in the State. 

4 ‘‘(2) BONUS PAYMENTS.—For each fiscal year, 

5 with respect to each of the performance measures in 

6 paragraph (1), the Secretary shall make excellence 

7 bonus payments of $1,000,000 to—

8 ‘‘(A) each of the 5 States with the highest 

9 performance; and 

10 ‘‘(B) each of the 5 States with the per11 formance that has most improved during the 

12 fiscal year. 

13 ‘‘(3) INVESTIGATION.—

14 ‘‘(A) IN GENERAL.—For any fiscal year in 

15 which the Secretary determines that a 95-per16 cent statistical probability exists that the per17 formance of a State agency with respect to any 

18 of the performance measures in paragraph (1) 

19 is substantially worse than a level the Secretary 

20 determines reasonable, the Secretary shall in21 vestigate the State agency. 

22 ‘‘(B) CORRECTIVE ACTION.—If the Sec23 retary determines that the administration by 

24 the State agency has been deficient, the Sec-
706

•HR 936 IH 

1 retary shall require the State agency to take 

2 prompt corrective action.’’. 

3 (c) EFFECTIVE DATE.—

4 (1) IN GENERAL.—Except as provided in para5 graph (2), the amendments made by this section 

6 take effect on the date of enactment of this Act. 

7 (2) TARGETED QUALITY CONTROL SYSTEM.—

8 The amendments made by subsection (a) shall not 

9 apply with respect to any sanction, appeal, agree10 ment, or other action taken by the Secretary of Ag11 riculture or a State agency that is based on a pay12 ment error rate established for any fiscal year before 

13 fiscal year 2003.

14 TITLE VII—FAIR START 

15 HOUSING 

16 Subtitle A—Section 8 Vouchers 

17 SEC. 7001. RENTAL ASSISTANCE VOUCHER PROGRAM. 

18 (a) IN GENERAL.—The Secretary of Housing and 

19 Urban Development (referred to in this subtitle as the 

20 ‘‘Secretary’’) shall provide 1,000,000 incremental housing 

21 vouchers for rental assistance under section 8(o) of the 

22 United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 

23 during the 10 year period following the date of enactment 

24 of this Act. 
707

•HR 936 IH 

1 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated such sums as necessary 

3 to carry out this section. 

4 SEC. 7002. VOUCHER SUCCESS FUND. 

5 (a) VOUCHER SUCCESS FUND.—

6 (1) ESTABLISHMENT.—There is established the 

7 Voucher Success Fund (referred to in this section as 

8 the ‘‘Fund’’). 

9 (2) PURPOSES.—The purposes of the Fund 

10 are—

11 (A) to address barriers that individuals en12 counter in successfully utilizing voucher rental 

13 assistance provided under section 8(o) of the 

14 United States Housing Act of 1937 (42 U.S.C. 

15 1437f(o)); and 

16 (B) to help improve the operation of that 

17 voucher rental assistance program. 

18 (3) USES OF ASSISTANCE.—The Secretary shall 

19 provide assistance from the Fund to States on a 

20 competitive basis, which assistance shall be used—

21 (A) by communities that are determined by 

22 an appropriate State agency of the State to be 

23 experiencing problems in utilizing voucher rent24 al assistance provided under section 8(o) of the 
708

•HR 936 IH 

1 United States Housing Act of 1937 (42 U.S.C. 

2 1437f(o)), including—

3 (i) difficult market conditions; 

4 (i) low rates of success for families at5 tempting to use voucher rental assistance 

6 provided under that section; 

7 (iii) concentrations of assisted families 

8 in high poverty neighborhoods; and 

9 (iv) other program difficulties; and 

10 (B) for activities that include—

11 (i) technical assistance to local public 

12 housing authorities or communities to im13 prove the success of the voucher rental as14 sistance program under section 8(o) of the 

15 United States Housing Act (42 U.S.C. 

16 1437f(o)); 

17 (ii) assistance for families in using 

18 that assistance, including mobility coun19 seling, assistance with security deposits, 

20 transportation, and other activities in21 tended to increase the likelihood that fami22 lies will succeed in leasing units or leasing 

23 units outside of areas of concentrated pov24 erty; and 
709

•HR 936 IH 

1 (iii) outreach to landlords and com2 munity groups to encourage participation 

3 in that voucher rental assistance program. 

4 (4) MONITORING SYSTEMS.—The Secretary 

5 may use not more than 1 percent of any amount 

6 made available to the Fund under this section to es7 tablish monitoring systems for the Fund. 

8 (5) REPORT.—Not later than 12 months after 

9 the date of enactment of this Act, the Secretary 

10 shall—

11 (A) conduct a detailed evaluation of the ef12 fect of providing assistance under this section; 

13 and 

14 (B) submit a report to Congress regarding 

15 the evaluation conducted under subparagraph 

16 (A). 

17 (6) AUTHORIZATION OF APPROPRIATIONS.—

18 There is authorized to be appropriated to the Fund, 

19 $50,000,000 for each of the fiscal years 2004 

20 through 2013 to carry out this section.

21 Subtitle B—National Affordable 

22 Housing Trust Fund 

23 SEC. 7101. PURPOSES. 

24 The purposes of this subtitle are—
710

•HR 936 IH 

1 (1) to fill the growing gap in the national abil2 ity to build affordable housing by using profits gen3 erated by Federal housing programs to fund addi4 tional housing activities, and not supplant existing 

5 housing appropriations; 

6 (2) to enable rental housing to be built for 

7 those families with the greatest need in areas with 

8 the greatest opportunities in mixed-income settings; 

9 and 

10 (3) to promote homeownership for low-income 

11 families. 

12 SEC. 7102. NATIONAL AFFORDABLE HOUSING TRUST FUND. 

13 (a) ESTABLISHMENT OF TRUST FUND.—There is es14 tablished in the Treasury of the United States a trust fund 

15 to be known as the ‘‘National Affordable Housing Trust 

16 Fund’’ (referred to in this subtitle as the ‘‘Trust Fund’’) 

17 for the purpose of promoting the development of afford18 able housing. 

19 (b) DEPOSITS TO THE TRUST FUND.—For fiscal 

20 year 2004 and each fiscal year thereafter, there is author21 ized to be appropriated to the Trust Fund an amount 

22 equal to the sum of—

23 (1) any revenue generated by the Mutual Mort24 gage Insurance Fund of the Federal Housing Ad25 ministration in excess of the amount necessary for 
711

•HR 936 IH 

1 the Mutual Mortgage Insurance Fund to maintain a 

2 capital ratio of 3 percent for the preceding fiscal 

3 year; and 

4 (2) any revenue generated by the Government 

5 National Mortgage Association in excess of the 

6 amount necessary to pay the administrative costs 

7 and expenses necessary to ensure the safety and 

8 soundness of the Government National Mortgage As9 sociation for the preceding fiscal year, as determined 

10 by the Secretary of Housing and Urban Develop11 ment. 

12 (c) EXPENDITURES FROM THE TRUST FUND.—For 

13 fiscal year 2004 and each fiscal year thereafter, amounts 

14 appropriated to the Trust Fund shall be available to the 

15 Secretary of Housing and Urban Development for use in 

16 accordance with section 7103. 

17 SEC. 7103. ADMINISTRATION OF NATIONAL AFFORDABLE 

18 HOUSING TRUST FUND. 

19 (a) DEFINITIONS.—In this section: 

20 (1) AFFORDABLE HOUSING.—The term ‘‘afford21 able housing’’ means housing for rental that bears 

22 rents not greater than the lesser of— 

23 (A) the existing fair market rent for com24 parable units in the area, as established by the 
712

•HR 936 IH 

1 Secretary under section 8 of the United States 

2 Housing Act of 1937 (42 U.S.C. 1437f); or 

3 (B) a rent that does not exceed 30 percent 

4 of the adjusted income of a family whose in5 come equals 65 percent of the median income 

6 for the area, as determined by the Secretary, 

7 with an adjustment for the number of bedrooms 

8 in the unit, except that the Secretary may es9 tablish income ceilings that are higher or lower 

10 than 65 percent of the median for the area if 

11 the Secretary finds that such variations are 

12 necessary because of prevailing levels of con13 struction costs or fair market rents, or unusu14 ally high or low family incomes. 

15 (2) CONTINUED ASSISTANCE RENTAL SUBSIDY

16 PROGRAM.—The term ‘‘continued assistance rental 

17 subsidy program’’ means a program under which— 

18 (A) project-based assistance is provided, 

19 for not more than 3 years, to a family in an af20 fordable housing unit developed with assistance 

21 made available under subsection (c) or (d) in a 

22 project that partners with a public housing 

23 agency, which agency agrees—

24 (i) to provide the assisted family with 

25 a priority for the receipt of a voucher 
713

•HR 936 IH 

1 under section 8(o) of the United States 

2 Housing Act of 1937 (42 U.S.C. 1437f(o)) 

3 if the family chooses to move after the ini4 tial year of occupancy; and 

5 (ii) to refer eligible voucher holders to 

6 the property when a vacancy occurs; and

7 (B) after 3 years, subject to appropria8 tions, continued assistance is provided under 

9 section 8(o) of the United States Housing Act 

10 of 1937 (42 U.S.C. 1437f(o)), notwithstanding 

11 any provision to the contrary in that section, 

12 if—

13 (i) the program is administered to 

14 provide families with the option of contin15 ued assistance with tenant-based vouchers 

16 if such a family chooses to move after the 

17 initial year of occupancy; and 

18 (ii) the public housing agency agrees 

19 to refer eligible voucher holders to the 

20 property when a vacancy occurs.

21 (3) ELIGIBLE ACTIVITY.—The term ‘‘eligible 

22 activity’’ means an activity that relates to the devel23 opment of affordable housing, including—

24 (A) the construction of new housing; 

25 (B) the acquisition of real property; 
714

•HR 936 IH 

1 (C) site preparation and improvement, in2 cluding demolition; 

3 (D) substantial rehabilitation of existing 

4 housing; and 

5 (E) rental subsidy for not more than 3 

6 years under a continued assistance rental sub7 sidy program. 

8 (4) ELIGIBLE ENTITY.—The term ‘‘eligible enti9 ty’’ includes any public or private nonprofit or for10 profit entity, unit of local government, regional plan11 ning entity, and any other entity engaged in the de12 velopment of affordable housing, as determined by 

13 the Secretary. 

14 (5) ELIGIBLE INTERMEDIARY.—The term ‘‘eli15 gible intermediary’’ means— 

16 (A) a nonprofit community development 

17 corporation; 

18 (B) a community development financial in19 stitution (as defined in section 103 of the Com20 munity Development Banking and Financial In21 stitutions Act of 1994 (12 U.S.C. 4702)); 

22 (C) a State or local trust fund; 

23 (D) any entity eligible for assistance under 

24 section 4 of the HUD Demonstration Act of 

25 1993 (42 U.S.C. 9816 note); 
715

•HR 936 IH 

1 (E) a national, regional, or statewide non2 profit organization; and 

3 (F) any other appropriate nonprofit entity, 

4 as determined by the Secretary. 

5 (6) EXTREMELY LOW-INCOME FAMILIES.—The 

6 term ‘‘extremely low-income families’’ means very 

7 low-income families (as defined in section 3(b) of the 

8 United States Housing Act of 1937 (42 U.S.C. 

9 1437a(b)) whose incomes do not exceed 30 percent 

10 of the median family income for the area, as deter11 mined by the Secretary with adjustments for smaller 

12 and larger families, except that the Secretary may 

13 establish income ceilings that are higher or lower 

14 than 30 percent of the median for the area if the 

15 Secretary finds that such variations are necessary 

16 because of unusually high or low family incomes. 

17 (7) LOW-INCOME FAMILIES.—The term ‘‘low-in18 come families’’ has the same meaning as in section 

19 3(b) of the United States Housing Act of 1937 (42 

20 U.S.C. 1437a(b)). 

21 (8) NON-FEDERAL SOURCES.—Non-Federal 

22 sources include—

23 (A) 50 percent of funds allocable to tax 

24 credits allocated under section 42 of the Inter25 nal Revenue Code of 1986; 
716

•HR 936 IH 

1 (B) 50 percent of revenue from mortgage 

2 revenue bonds issued under section 143 of that 

3 Code; and 

4 (C) 50 percent of proceeds from the sale of 

5 tax exempt bonds. 

6 (9) SECRETARY.—The term ‘‘Secretary’’ means 

7 the Secretary of Housing and Urban Development. 

8 (10) STATE.—The term ‘‘State’’ has the same 

9 meaning as in section 3(b) of the United States 

10 Housing Act of 1937 (42 U.S.C. 1437a(b)). 

11 (b) ALLOCATION TO STATES AND ELIGIBLE INTER12 MEDIARIES.—For fiscal year 2004 and each fiscal year 

13 thereafter, of the total amount made available to the Sec14 retary from the Trust Fund under section 7102(c)—

15 (1) 75 percent shall be used by the Secretary 

16 to award grants to States in accordance with sub17 section (c); and 

18 (2) 25 percent shall be used by the Secretary 

19 to award grants to eligible intermediaries in accord20 ance with subsection (d). 

21 (c) GRANTS TO STATES.—

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

23 from the amount made available for each fiscal year 

24 under subsection (b)(1), the Secretary shall award 

25 grants to States, in accordance with an allocation 
717

•HR 936 IH 

1 formula established by the Secretary, based on the 

2 pro rata share of each State of the total need among 

3 all States for an increased supply of affordable hous4 ing, as determined on the basis of— 

5 (A) the number and percentage of families 

6 in the State that live in substandard housing; 

7 (B) the number and percentage of families 

8 in the State that pay more than 50 percent of 

9 their annual income for housing costs; 

10 (C) the number and percentage of persons 

11 living at or below the poverty level in the State; 

12 (D) the cost of developing or carrying out 

13 substantial rehabilitation of housing in the 

14 State; 

15 (E) the age of the multifamily housing 

16 stock in the State; and 

17 (F) such other factors as the Secretary de18 termines to be appropriate. 

19 (2) GRANT AMOUNT.—The amount of a grant 

20 award to a State under this subsection shall be equal 

21 to the lesser of—

22 (A) 4 times the amount of assistance pro23 vided by the State from non-Federal sources; 

24 and 
718

•HR 936 IH 

1 (B) the allocation determined in accord2 ance with paragraph (1). 

3 (3) AWARD OF STATE ALLOCATION TO CERTAIN

4 ENTITIES.—

5 (A) IN GENERAL.—If the amount provided 

6 by a State from non-Federal sources is less 

7 than 25 percent of the amount that would be 

8 awarded to the State under this subsection 

9 based on the allocation formula described in 

10 paragraph (1), then not later than 60 days 

11 after the date on which the Secretary deter12 mines that the State is not eligible for the full 

13 allocation determined under paragraph (1), the 

14 Secretary shall publish a notice regarding the 

15 availability of the funds for which the State is 

16 ineligible.

17 (B) APPLICATIONS.—Not later than 9 

18 months after the date of publication of a notice 

19 of funding availability under subparagraph (A), 

20 a nonprofit or public entity (or a consortium 

21 thereof, which may include units of local gov22 ernment working together on a regional basis) 

23 may submit to the Secretary an application for 

24 the available assistance or a portion of the 
719

•HR 936 IH 

1 available assistance, which application shall in2 clude— 

3 (i) a certification that the applicant 

4 will provide assistance in an amount equal 

5 to 25 percent of the amount of assistance 

6 made available to the applicant under this 

7 paragraph; and 

8 (ii) an allocation plan that meets the 

9 requirements of paragraph (4)(B) for use 

10 or distribution in the State of any assist11 ance made available to the applicant under 

12 this paragraph and the assistance provided 

13 by the applicant for purposes of clause (i). 

14 (C) AWARD OF ASSISTANCE.—The Sec15 retary shall award the amount that is not 

16 awarded to a State by operation of paragraph 

17 (2) to 1 or more applicants that meet the re18 quirements of subparagraph (B) of this para19 graph that are selected by the Secretary based 

20 on selection criteria, established by regulation 

21 of the Secretary. 

22 (4) DISTRIBUTION TO ELIGIBLE ENTITIES.— 

23 (A) IN GENERAL.—Of the amount that a 

24 State receives under a grant award under this 

25 subsection and the assistance provided by the 
720

•HR 936 IH 

1 State from non-Federal sources for purposes of 

2 paragraph (2)(A) to eligible entities for the pur3 pose of assisting those entities in carrying out 

4 eligible activities in the State, the State shall 

5 distribute— 

6 (i) 75 percent to eligible entities for 

7 eligible activities relating to the develop8 ment of affordable housing for rental by 

9 extremely low-income families in the State; 

10 and 

11 (ii) 25 percent to eligible entities for 

12 eligible activities relating to the develop13 ment of affordable housing for rental by 

14 low-income families in the State, or for 

15 homeownership assistance for low-income 

16 families in the State. 

17 (B) ALLOCATION PLAN.—Each State shall, 

18 after giving notice to the public, an opportunity 

19 for public comment, and consideration of public 

20 comments received, establish an allocation plan 

21 for the distribution of assistance under this 

22 paragraph, which plan shall be submitted to the 

23 Secretary and shall be made available to the 

24 public by the State, and which shall include— 
721

•HR 936 IH 

1 (i) application requirements for eligi2 ble entities seeking to receive assistance 

3 under this paragraph, including a require4 ment that each application include— 

5 (I) a certification by the appli6 cant that any housing developed with 

7 assistance under this paragraph will 

8 remain affordable for extremely low9 income families or low-income fami10 lies, as applicable, for not less than 40 

11 years; 

12 (II) a certification by the appli13 cant that the tenant contribution to14 wards rent for a family that resides in 

15 a unit developed with assistance under 

16 this paragraph will not exceed 30 per17 cent of the adjusted income of that 

18 family; and 

19 (III) a certification by the appli20 cant that the owner of a project in 

21 which any housing developed with as22 sistance under this paragraph is lo23 cated will make a percentage of units 

24 in the project available to families as25 sisted under the voucher program 
722

•HR 936 IH 

1 under section 8(o) of the United 

2 States Housing Act of 1937 (42 

3 U.S.C. 1437f(o)) on the same basis as 

4 other families eligible for the housing 

5 (except that only the expected share 

6 of rent of the voucher holder shall be 

7 considered), which percentage shall 

8 not be less than the percentage of the 

9 total cost of developing or rehabili10 tating the project that is funded with 

11 assistance under this paragraph; and 

12 (ii) factors for consideration in select13 ing among applicants that meet the appli14 cation requirements under clause (i), which 

15 factors shall give preference to applicants 

16 based on—

17 (I) the amount of assistance for 

18 the eligible activities leveraged by the 

19 applicant from private and other non20 Federal sources, including assistance 

21 made available under section 8 of the 

22 United States Housing Act of 1937 

23 (42 U.S.C. 1437f) that is devoted to 

24 the project in which the housing to be 
723

•HR 936 IH 

1 developed with assistance under this 

2 paragraph is located; 

3 (II) the extent of local assistance 

4 that will be provided in carrying out 

5 the eligible activities, including— 

6 (aa) financial assistance; 

7 and 

8 (bb) the extent to which the 

9 applicant has worked with the 

10 unit of local government in which 

11 the housing will be located to ad12 dress issues of siting and exclu13 sionary zoning or other policies 

14 that are barriers to affordable 

15 housing;

16 (III) the degree to which the de17 velopment in which the housing will 

18 be located is mixed-income; 

19 (IV) whether the housing will be 

20 located in a census tract in which the 

21 poverty rate is less than 20 percent; 

22 (V) whether the housing will be 

23 located in a community undergoing 

24 revitalization; 
724

•HR 936 IH 

1 (VI) the extent of employment 

2 and other opportunities for low-in3 come families in the area in which the 

4 housing will be located; and 

5 (VII) the extent to which the ap6 plicant demonstrates the ability to 

7 maintain units as affordable for ex8 tremely low-income or low-income 

9 families, as applicable, through the 

10 use of assistance made available under 

11 this paragraph, assistance leveraged 

12 from non-Federal sources, assistance 

13 made available under section 8 of the 

14 United States Housing Act of 1937 

15 (42 U.S.C. 1437f), State or local as16 sistance, programs to increase tenant 

17 income, cross-subsidization, and any 

18 other resources. 

19 (C) FORMS OF ASSISTANCE.—

20 (i) IN GENERAL.—Assistance distrib21 uted under this paragraph may be in the 

22 form of capital grants, non-interest bearing 

23 or low-interest loans or advances, deferred 

24 payment loans, guarantees, and any other 
725

•HR 936 IH 

1 forms of assistance approved by the Sec2 retary. 

3 (ii) REPAYMENTS.—If a State awards 

4 assistance under this paragraph in the 

5 form of a loan or other mechanism by 

6 which funds are later repaid to the State, 

7 any repayments received by the State shall 

8 be distributed by the State in accordance 

9 with the allocation plan described in sub10 paragraph (B) during the following fiscal 

11 year. 

12 (D) COORDINATION WITH OTHER ASSIST13 ANCE.—In distributing assistance under this 

14 paragraph, each State shall, to the maximum 

15 extent practicable, coordinate the distribution 

16 with the provision of other affordable housing 

17 assistance by the State, including— 

18 (i) housing credit dollar amounts allo19 cated by the State under section 42(h) of 

20 the Internal Revenue Code of 1986; 

21 (ii) assistance made available under 

22 the HOME Investment Partnerships Act 

23 (42 U.S.C. 12721 et seq.) or the commu24 nity development block grant program; and 

25 (iii) private activity bonds. 
726

•HR 936 IH 

1 (d) NATIONAL COMPETITION.—

2 (1) IN GENERAL.—From the amount made 

3 available for each fiscal year under subsection 

4 (b)(2), the Secretary shall award grants on a com5 petitive basis to eligible intermediaries, which grants 

6 shall be used in accordance with paragraph (3) of 

7 this subsection. 

8 (2) APPLICATION REQUIREMENTS AND SELEC9 TION CRITERIA.—The Secretary, by regulation, shall 

10 establish application requirements and selection cri11 teria for the award of competitive grants to eligible 

12 intermediaries under this subsection, which criteria 

13 shall include— 

14 (A) the ability of the eligible intermediary 

15 to meet housing needs of low-income families on 

16 a national or regional scope; 

17 (B) the capacity of the eligible inter18 mediary to use the grant award in accordance 

19 with paragraph (3), based on the past perform20 ance and management of the applicant; and 

21 (C) the extent to which the eligible inter22 mediary has leveraged funding from private and 

23 other non-Federal sources for the eligible activi24 ties. 

25 (3) USE OF GRANT AWARD.— 
727

•HR 936 IH 

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

2 subparagraph (B), of the amount of a grant 

3 made available under this subsection, an eligible 

4 intermediary shall ensure that—

5 (i) 75 percent shall be used for eligi6 ble activities relating to the development of 

7 affordable housing for rental by extremely 

8 low-income families; and 

9 (ii) 25 percent shall be used for eligi10 ble activities relating to the development of 

11 affordable housing for rental by low-income 

12 families, or for homeownership assistance 

13 for low-income families. 

14 (B) EXCEPTION.—

15 (i) IN GENERAL.—If a grant made 

16 available under this subsection is used for 

17 a project described in clause (ii), an eligi18 ble intermediary may use that amount for 

19 eligible activities relating to the develop20 ment of housing for rental by families 

21 whose incomes are less than 60 percent of 

22 the area median income, and for home23 ownership activities for families whose in24 comes are less than 80 percent of area me25 dian income. 
728

•HR 936 IH 

1 (ii) PROJECT CONTRIBUTING TO A

2 CONCERTED COMMUNITY REVITALIZATION

3 PLAN.—A project is described in this 

4 clause if— 

5 (I) it is located in a community 

6 undergoing concerted revitalization 

7 and is contributing to a community 

8 revitalization plan; and 

9 (II) it is located in a census tract 

10 in which—

11 (aa) the median household 

12 income is less than 60 percent of 

13 the area median income; or 

14 (bb) the rate of poverty is 

15 greater than 20 percent.

16 (C) PLAN OF USE.—Each eligible inter17 mediary that receives a grant under this sub18 section shall establish a plan for the use or dis19 tribution of the amount made available under 

20 the grant, which plan shall be submitted to the 

21 Secretary and shall include information relating 

22 to the manner in which the eligible intermediary 

23 will either use or distribute that amount, in24 cluding—
729

•HR 936 IH 

1 (i) a certification that assistance 

2 under this subsection will be used to sup3 plement assistance leveraged from private 

4 and other non-Federal sources, including 

5 assistance made available under section 8 

6 of the United States Housing Act of 1937 

7 (42 U.S.C. 1437f) that is devoted to the 

8 project in which the housing to be devel9 oped is located; 

10 (ii) a certification that local assistance 

11 will be provided in carrying out the eligible 

12 activities, which may include— 

13 (I) financial assistance; and 

14 (II) a good faith effort to work 

15 with the unit of local government in 

16 which the housing will be located to 

17 address issues of siting and exclu18 sionary zoning or other policies that 

19 are barriers to affordable housing; 

20 (iii) a certification that any housing 

21 developed with assistance under this sub22 section will remain affordable for extremely 

23 low-income families or low-income families, 

24 as applicable, for not less than 40 years; 
730

•HR 936 IH 

1 (iv) a certification that any housing 

2 developed by the applicant with assistance 

3 under this subsection will be located— 

4 (I) in a mixed-income develop5 ment in a census tract having a pov6 erty rate of not more than 20 percent, 

7 and near employment and other op8 portunities for low-income families; or 

9 (II) in a community undergoing 

10 revitalization; 

11 (v) a certification that the tenant con12 tribution toward rent for a family residing 

13 in a unit developed with assistance under 

14 this paragraph will not exceed 30 percent 

15 of the adjusted income of that family; and 

16 (vi) a certification by the applicant 

17 that the owner of a project in which any 

18 housing developed with assistance under 

19 this subsection is located will make a per20 centage of units in the project available to 

21 families assisted under the voucher pro22 gram under section 8(o) of the United 

23 States Housing Act of 1937 (42 U.S.C. 

24 1437f(o)) on the same basis as other fami25 lies eligible for the housing (except that 
731

•HR 936 IH 

1 only the expected share of rent of the 

2 voucher holder shall be considered), which 

3 percentage shall not be less than the per4 centage of the total cost of developing or 

5 rehabilitating the project that is funded 

6 with assistance under this subsection. 

7 (D) FORMS OF ASSISTANCE.—

8 (i) IN GENERAL.—An eligible inter9 mediary may distribute the amount made 

10 available under a grant under this sub11 section in the form of capital grants, non12 interest bearing or low-interest loans or 

13 advances, deferred payment loans, guaran14 tees, and other forms of assistance. 

15 (ii) REPAYMENTS.—If an eligible 

16 intermediary awards assistance under this 

17 subsection in the form of a loan or other 

18 mechanism by which funds are later repaid 

19 to the eligible intermediary, any repay20 ments received by the eligible intermediary 

21 shall be distributed by the eligible inter22 mediary in accordance with the plan of use 

23 described in subparagraph (C) during the 

24 following fiscal year. 
732

•HR 936 IH 

1 SEC. 7104. REGULATIONS. 

2 Not later than 6 months after the date of enactment 

3 of this Act, the Secretary of Housing and Urban Develop4 ment shall promulgate regulations to carry out this sub5 title. 

6 Subtitle C—Housing Preservation 

7 Matching Grants 

8 SEC. 7201. SHORT TITLE. 

9 This subtitle may be cited as the ‘‘Housing Preserva10 tion Matching Grant Act of 2003’’. 

11 SEC. 7202. FINDINGS AND PURPOSES. 

12 (a) FINDINGS.—Congress finds that—

13 (1) since 1996, almost 200,000 affordable hous14 ing dwelling units in the United States have been 

15 lost through termination of low income affordability 

16 requirements, which usually involves the prepayment 

17 of the outstanding principal balance under the mort18 gage on the project in which such units are located; 

19 (2) more than 265,000 affordable housing 

20 dwelling units in the United States are at risk of 

21 prepayment; 

22 (3) the loss of the privately owned, federally as23 sisted affordable housing, which is occurring during 

24 a period when rents for unassisted housing are in25 creasing and few units of additional affordable hous26 ing are being developed, will cause unacceptable 
733

•HR 936 IH 

1 harm on current tenants of affordable housing and 

2 will precipitate a national crisis in the supply of 

3 housing for low-income households; 

4 (4) the demand for affordable housing far ex5 ceeds the supply of affordable housing, as evidenced 

6 by studies in 1998 that found that—

7 (A) 5,500,000 households (1 in 7 Amer8 ican families) have worst-case housing needs; 

9 and 

10 (B) the number of families with at least 

11 one full-time worker and having worst-case 

12 housing needs increased from 1997 to 1999 

13 from 3,000,000 to 3,700,000; 

14 (5) the shortage of affordable housing in the 

15 United States reached a record high in 1995, when 

16 the number of low-income households exceeded the 

17 number of low-cost rental dwelling units by 

18 4,400,000; 

19 (6) between 1991 and 1999, there were 

20 1,000,000 fewer affordable units for eligible low-in21 come families, and most of the loss was between 

22 1997 and 1999, when there were 750,000 fewer af23 fordable units; 

24 (7) there are nearly 2 low-income renters in the 

25 United States for every low-cost rental dwelling unit; 
734

•HR 936 IH 

1 (8) 62 percent of eligible low-income households 

2 receive no housing assistance, and approximately 

3 2,000,000 low-income households remain on waiting 

4 lists for affordable housing; 

5 (9) the shortage of affordable housing dwelling 

6 units results in low-income households that are not 

7 able to acquire low-cost rental units paying large 

8 proportions of their incomes for rent; and 

9 (10) 14,000,000 renters pay more than 30 per10 cent of their incomes for rent and utilities, and 

11 7,000,000 renters pay 50 percent or more of their 

12 incomes for rent and utilities. 

13 (b) PURPOSES.—The purposes of this subtitle are—

14 (1) to promote the preservation of affordable 

15 housing units by providing matching grants to 

16 States that have developed and funded programs for 

17 the preservation of privately owned housing that is 

18 affordable to low-income families and persons and 

19 was produced for such purpose with Federal assist20 ance; 

21 (2) to minimize the involuntary displacement of 

22 tenants who are currently residing in such housing, 

23 many of whom are elderly or disabled persons; and 

24 (3) to continue the partnerships among the 

25 Federal Government, State and local governments, 
735

•HR 936 IH 

1 and the private sector in operating and assisting 

2 housing that is affordable to low-income Americans. 

3 SEC. 7203. DEFINITIONS. 

4 In this subtitle: 

5 (1) LOW-INCOME AFFORDABILITY RESTRIC6 TION.—The term ‘‘low-income affordability restric7 tion’’ means, with respect to a housing project, any 

8 limitation imposed by regulation or regulatory agree9 ment on rents for tenants of the project, rent con10 tributions for tenants of the project, or income-eligi11 bility for occupancy in the project. 

12 (2) PROJECT-BASED ASSISTANCE.—The term 

13 ‘‘project-based assistance’’ has the same meaning as 

14 in section 16(c) of the United States Housing Act 

15 of 1937 (42 U.S.C. 1437n(c)), except that the term 

16 includes assistance under any successor program to 

17 any program referred to in that section. 

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

19 the Secretary of Housing and Urban Development. 

20 (4) STATE.—The term ‘‘State’’ means each of 

21 the several States of the United States, the District 

22 of Columbia, the Commonwealth of Puerto Rico, the 

23 Commonwealth of the Northern Mariana Islands, 

24 Guam, the Virgin Islands, American Samoa, and 
736

•HR 936 IH 

1 any other territory or possession of the United 

2 States. 

3 SEC. 7204. AUTHORITY. 

4 The Secretary shall, to the extent that amounts are 

5 made available pursuant to section 7211, make grants 

6 under this subtitle to States for low-income housing pres7 ervation. 

8 SEC. 7205. APPLICATIONS. 

9 (a) IN GENERAL.—Each State that seeks a grant 

10 under this subtitle shall submit an application to the Sec11 retary (through an appropriate State agency) at such 

12 time, in such manner, and accompanied by such informa13 tion as the Secretary may reasonably require. 

14 (b) CONTENTS.—Each application submitted pursu15 ant to subsection (a) shall contain any information and 

16 certifications necessary for the Secretary to determine 

17 whether the State is eligible to receive a grant under this 

18 subtitle. 

19 SEC. 7206. USE OF GRANTS. 

20 (a) IN GENERAL.—Amounts from grants made under 

21 this subtitle may be used by States only for assistance for 

22 acquisition, preservation incentives, operating costs, and 

23 capital expenditures for a housing project that meets the 

24 requirements of subsection (b), (c), or (d). 
737

•HR 936 IH 

1 (b) PROJECTS WITH HUD-INSURED MORTGAGES.—

2 A project meets the requirements of this subsection only 

3 if—

4 (1) the project is financed by a loan or mort5 gage that is—

6 (A) insured or held by the Secretary under 

7 section 221(d)(3) of the National Housing Act 

8 (12 U.S.C. 1715l(d)(3)) and the project is re9 ceiving loan management assistance under sec10 tion 8 of the United States Housing Act of 

11 1937 (42 U.S.C. 1437f) due to a conversion 

12 from section 101 of the Housing and Urban 

13 Development Act of 1965 (12 U.S.C. 1701s); 

14 (B) insured or held by the Secretary and 

15 bears interest at a rate determined under the 

16 proviso of section 221(d)(5) of the National 

17 Housing Act (12 U.S.C. 1715l(d)(5)); 

18 (C) insured, assisted, or held by the Sec19 retary or a State or State agency under section 

20 236 of the National Housing Act (12 U.S.C. 

21 1715z–1); or 

22 (D) held by the Secretary and formerly in23 sured under a program referred to in subpara24 graph (A), (B), or (C); 
738

•HR 936 IH 

1 (2) with respect to the mortgage referred to in 

2 paragraph (1), the project is subject to an uncondi3 tional waiver of—

4 (A) all rights to any prepayment of the 

5 mortgage; and 

6 (B) all rights to any voluntary termination 

7 of the mortgage insurance contract for the 

8 mortgage; and 

9 (3) the owner of the project has entered into 

10 binding commitments (applicable to any subsequent 

11 owner) to extend all low-income affordability restric12 tions for the project, including any such restrictions 

13 imposed because of any contract for project-based 

14 assistance for the project. 

15 (c) PROJECTS WITH SECTION 8 PROJECT-BASED AS16 SISTANCE.—A project meets the requirements of this sub17 section only if—

18 (1) the project is subject to a contract for 

19 project-based assistance; and 

20 (2) the owner of the project has entered into 

21 binding commitments (applicable to any subsequent 

22 owner)—

23 (A) to extend the project-based assistance 

24 for the maximum period allowable under law 
739

•HR 936 IH 

1 (subject to the availability of amounts for such 

2 purpose); and 

3 (B) to extend any low-income affordability 

4 restrictions applicable to the project in connec5 tion with the project-based assistance. 

6 (d) PROJECTS PURCHASED BY RESIDENTS.—A 

7 project meets the requirements of this subsection only if 

8 the project—

9 (1) is or was eligible low-income housing (as de10 fined in section 229 of the Low-Income Housing 

11 Preservation and Resident Homeownership Act of 

12 1990 (12 U.S.C. 4119); and 

13 (2) has been purchased by a resident council for 

14 the housing, or is approved by the Secretary for 

15 such purchase, for conversion to homeownership 

16 housing under a resident homeownership program 

17 meeting the requirements of section 226 of the Low18 Income Housing Preservation and Resident Home19 ownership Act of 1990 (12 U.S.C. 4116). 

20 (e) COMBINATION OF ASSISTANCE.—Notwith21 standing subsection (a), any project that is otherwise eligi22 ble for assistance with grant amounts provided under this 

23 subtitle because the project meets the requirements under 

24 subsection (b) or (c), and that also meets the requirements 

25 under paragraph (1) of the other of such subsections, shall 
740

•HR 936 IH 

1 be eligible for assistance under this subtitle only if the 

2 project complies with all of the requirements under such 

3 other subsection. 

4 SEC. 7207. GRANT AMOUNT LIMITATION. 

5 The Secretary shall limit the portion of the aggregate 

6 amount of grants under this subtitle made available for 

7 any fiscal year that may be provided to a single State 

8 based upon the proportion of the need of that State (as 

9 determined by the Secretary) for assistance under this 

10 subtitle to the aggregate need among all States approved 

11 for assistance under this subtitle for that fiscal year. 

12 SEC. 7208. MATCHING REQUIREMENTS. 

13 (a) IN GENERAL.—The Secretary may not make a 

14 grant under this subtitle to any State for any fiscal year 

15 in an amount that exceeds twice the amount that the State 

16 certifies, as the Secretary shall require, that the State will 

17 contribute for such fiscal year, or has contributed since 

18 January 1, 2003, from non-Federal sources for the pur19 poses under section 7206(a). 

20 (b) TREATMENT OF PREVIOUS CONTRIBUTIONS.—

21 Any portion of amounts contributed after January 1, 

22 2003, that are counted for the purpose of meeting the re23 quirement under subsection (a) for a fiscal year may not 

24 be counted for such purpose for any subsequent fiscal 

25 year. 
741

•HR 936 IH 

1 (c) TREATMENT OF TAX CREDITS.—Tax credits pro2 vided under section 42 of the Internal Revenue Code of 

3 1986, and proceeds from the sale of tax-exempt bonds by 

4 any State or local government entity shall not be consid5 ered non-Federal sources for purposes of this section. 

6 SEC. 7209. TREATMENT OF SUBSIDY LAYERING REQUIRE7 MENTS. 

8 Neither section 7208 nor any other provision of this 

9 subtitle may be construed to prevent the use of tax credits 

10 provided under section 42 of the Internal Revenue Code 

11 of 1986, in connection with housing assisted with grant 

12 amounts provided under this subtitle, to the extent that 

13 such use is in accordance with section 102(d) of the De14 partment of Housing and Urban Development Reform Act 

15 of 1989 (42 U.S.C. 3545(d)) and section 911 of the Hous16 ing and Community Development Act of 1992 (42 U.S.C. 

17 3545 note). 

18 SEC. 7210. REGULATIONS. 

19 The Secretary may issue regulations to carry out this 

20 subtitle. 

21 SEC. 7211. AUTHORIZATION OF APPROPRIATIONS. 

22 There are authorized to be appropriated for grants 

23 under this subtitle such sums as are necessary for each 

24 of the fiscal years 2004 through 2008.
742

•HR 936 IH 

1 TITLE VIII—SAFE START 

2 Subtitle A—Promotion of 

3 Permanency for Children 

4 SEC. 8001. REIMBURSEMENT FOR PREVENTIVE, PROTEC5 TIVE, CRISIS, PERMANENCY, INDEPENDENT 

6 LIVING, AND POST-PERMANENCY SERVICES 

7 AND ACTIVITIES. 

8 (a) IN GENERAL.—Part E of title IV of the Social 

9 Security Act (42 U.S.C. 670 et seq.) is amended by insert10 ing after section 474 the following: 

11 ‘‘SEC. 474A. PAYMENTS FOR PREVENTIVE, PROTECTIVE, 

12 CRISIS, PERMANENCY, INDEPENDENT LIV13 ING, AND POST-PERMANENCY SERVICES AND 

14 ACTIVITIES. 

15 ‘‘(a) IN GENERAL.—In addition to any other pay16 ments made to a State under this title, for each quarter 

17 beginning after September 30, 2003, the Secretary shall 

18 pay each State which has a plan approved under this part 

19 and that opts to receives payments under this section, a 

20 payment, subject to subsection (e), equal to the Federal 

21 medical assistance percentage of the costs of providing the 

22 services and activities described in subsection (b) in order 

23 to ensure that the timelines set forth in section 475(5), 

24 as added by the Adoption and Safe Families Act of 1997, 
743

•HR 936 IH 

1 can be honored and the goals of safety and permanence 

2 for children will be realized. 

3 ‘‘(b) SERVICES AND ACTIVITIES DESCRIBED.—The 

4 services and activities described in this subsection are as 

5 follows: 

6 ‘‘(1) PREVENTIVE, PROTECTIVE, AND CRISIS

7 SERVICES.—

8 ‘‘(A) IN GENERAL.—Preventive, protective, 

9 and crisis services for children and parents who 

10 come to the attention of the State or a local 

11 agency and whose cases are referred for assess12 ment or investigation because of a concern 

13 about the risk of abuse or neglect. 

14 ‘‘(B) REQUIREMENTS.—In the case of 

15 services other than investigation and assess16 ment—

17 ‘‘(i) the agency and the parents must 

18 have agreed to the provision of such serv19 ices in the case plan for the family; and

20 ‘‘(ii) funding for such services under 

21 this part shall be provided for not more 

22 than 18 months within a 48 month period, 

23 consistent with the exception provided in 

24 subsection (c). 
744

•HR 936 IH 

1 ‘‘(2) PERMANENCY SERVICES.—Permanency 

2 services for children and parents to help ensure that 

3 when a child is placed in foster care, prompt deci4 sions can be made about the appropriate perma5 nency plan for the child, but only if the agency and 

6 the parents have agreed to the provision of such 

7 services to the parents in the case plan for the fam8 ily and funding for such services under this part 

9 (other than foster care maintenance payments under 

10 section 472) will be provided for not more than 18 

11 months within a 48 month period, consistent with 

12 the exception provided in subsection (c). 

13 ‘‘(3) POST-PERMANENCY SERVICES.—

14 ‘‘(A) IN GENERAL.—Post-permanency 

15 services for children and their parents or other 

16 caregivers when children have been in foster 

17 care funded under this part and are returned to 

18 their birth families, are in adoptive families, or 

19 are placed permanently with a legal guardian or 

20 a fit and willing relative, if the agency and the 

21 child’s caregivers have agreed to the provision 

22 of such services in the case plan for the family, 

23 but only to the extent that—

24 ‘‘(i) with respect to such services for 

25 children returned to their birth families, 
745

•HR 936 IH 

1 such services are provided for not more 

2 than 18 months within a 48 month period, 

3 consistent with the exception provided in 

4 subsection (c); and 

5 ‘‘(ii) with respect to such services for 

6 children who are adopted from foster care 

7 or placed permanently with a legal guard8 ian or a fit and willing relative, such serv9 ices are provided on an as-needed basis 

10 consistent with the child and family service 

11 plan. 

12 ‘‘(4) APPLICATION TO CERTAIN CHILDREN.—

13 With respect to the services described in paragraph 

14 (1), (2), or (3) that are provided to children who 

15 have come to the attention of the State or a local 

16 agency before the date of enactment of the Leave No 

17 Child Behind Act of 2003, the 18-month time limit 

18 for such services for such children shall commence 

19 on a date determined by the State that is not more 

20 than 180 days after such date of enactment. 

21 ‘‘(5) INDEPENDENT LIVING SERVICES.—Inde22 pendent living services to help children who are like23 ly to remain in foster care until attaining 18 years 

24 of age and children who are former foster care re25 cipients who have not attained 21 years of age make 
746

•HR 936 IH 

1 the transition to self-sufficiency by providing services 

2 such as assistance in obtaining a high school di3 ploma, a General Equivalency Diploma, or post-sec4 ondary education or training, career exploration, vo5 cational training, job placement and retention, train6 ing in daily living skills, budgeting and financial 

7 management skills, substance abuse prevention, pre8 ventive health activities, financial, housing, coun9 seling, personal or emotional support (through inter10 action with dedicated adults), and other appropriate 

11 support services. 

12 ‘‘(c) SAFETY EXCEPTION.—

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

14 beginning with fiscal year 2004, a State may exempt 

15 up to the number of children and parents receiving 

16 any of the services described in subsection (b) that 

17 equals 20 percent of the number of such children 

18 and parents who received such services during the 

19 preceding fiscal year, from the time limits specified 

20 for such services in such subsection in order to help 

21 ensure that children will be served safely and appro22 priately in accordance with their individual needs. 

23 ‘‘(2) BIENNIAL REVIEW.—

24 ‘‘(A) EXCEPTED CASES.—A State shall bi25 ennially review the cases excepted under para-
747

•HR 936 IH 

1 graph (1), in accordance with guidelines devel2 oped by the Secretary, to ensure the continued 

3 appropriateness of the exceptions and to deter4 mine the circumstances under which such ex5 ceptions have been made, and shall report the 

6 findings of the review to the Secretary. Such re7 port shall include a recommendation, if nec8 essary, that the Secretary allow the State to ad9 just the maximum percentage for such excep10 tions to address changed circumstances. A 

11 State may proceed in accordance with the rec12 ommendation unless the Secretary disapproves 

13 the recommendation within 60 days of the re14 ceipt of the recommendation. 

15 ‘‘(B) FOSTER CARE CHILDREN.—In addi16 tion to the review required under subparagraph 

17 (A), a State shall biennially review, in accord18 ance with guidelines developed by the Secretary, 

19 the cases of children who have remained in fos20 ter care and for which foster care maintenance 

21 payments (as defined in section 474(4)) have 

22 been made for more than 18 months and sub23 mit a report on such review to the Secretary. 

24 Such report shall describe, with respect to each 

25 such child, the child’s age, special needs (if 
748

•HR 936 IH 

1 any), type of placement, and the length of time 

2 that the child has been in foster care. 

3 ‘‘(C) REPORT.—Not later than January 1, 

4 2008, and January 1 of every other year there5 after, the Secretary shall submit a report to 

6 Congress on the reviews and recommendations 

7 required under subparagraphs (A) and (B) for 

8 the preceding fiscal year. Such report shall in9 clude a summary of the Secretary’s findings on 

10 the appropriateness of the safety exceptions and 

11 the States’ progress in meeting the needs of the 

12 children who receive services or foster care for 

13 more than 18 months. 

14 ‘‘(d) NO PAYMENT FOR SERVICES REIMBURSABLE

15 UNDER TITLE XIX.—No payments may be made under 

16 this section for any services described in subsection (b) 

17 that the State is reimbursed for under title XIX.

18 ‘‘(e) MAINTENANCE OF EFFORT.—A State may not 

19 receive payments under this section unless, for fiscal year 

20 2004 and each fiscal year thereafter, the total State and 

21 local expenditures for services and activities described in 

22 subsection (b) for that fiscal year equals or exceeds the 

23 total of such expenditures for fiscal year 2003.’’. 

24 (b) STATE PLAN AMENDMENT.—Section 471(a) of 

25 such Act (42 U.S.C. 671(a)) is amended—
749

•HR 936 IH 

1 (1) in paragraph (23)(B), by striking ‘‘and’’ at 

2 the end; 

3 (2) in paragraph (24), by striking the period 

4 and inserting ‘‘; and’’; and 

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

6 ‘‘(25) provides that the State shall describe—

7 ‘‘(A) prior to the beginning of a fiscal year, 

8 the types of preventive, protective, crisis, per9 manency, independent living, and post-perma10 nency services that the State expects to be 

11 made available under the plan during that fiscal 

12 year; 

13 ‘‘(B) the populations expected to be pro14 vided such services during the fiscal year; 

15 ‘‘(C) notwithstanding paragraph (3), the 

16 geographic areas in the State in which the serv17 ices are likely to be available during the fiscal 

18 year; 

19 ‘‘(D) the role of public and nonprofit pri20 vate agencies and community-based organiza21 tions referred to in section 432(b)(1) in the 

22 planning and decisionmaking regarding which 

23 such services would be provided during the fis24 cal year and how the services to be provided 
750

•HR 936 IH 

1 would promote safety and permanence for chil2 dren; and 

3 ‘‘(E) prior to the beginning of the third 

4 fiscal year of implementation of such services, 

5 and prior to the beginning of each fiscal year 

6 thereafter, what the State proposes to do to re7 duce the length of time families need to receive 

8 services from the State agency.’’. 

9 SEC. 8002. CHILD AND FAMILY SERVICE PLAN AND CASE 

10 REVIEWS. 

11 (a) IN GENERAL.—Section 471(a)(16) of the Social 

12 Security Act (42 U.S.C. 671(a)(16)) is amended—

13 (1) by inserting ‘‘(A)’’ after ‘‘(16)’’; 

14 (2) by adding ‘‘and’’ after the semicolon; and 

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

16 ‘‘(B)(i) provides for the development of a child 

17 and family service plan and for case reviews by a cit18 izen review board or an administrative review body 

19 no less frequently than once every 6 months for each 

20 child and family member receiving preventive, pro21 tective, crisis, permanency, independent living, or 

22 post-permanency services; and 

23 ‘‘(ii) provides that each child and family service 

24 plan developed under clause (i) shall describe the 

25 steps taken to assure the safety of the child, provide 
751

•HR 936 IH 

1 the services that are needed and, where applicable, 

2 have been agreed to by the agency and the parent, 

3 the extent of progress that has been made toward 

4 meeting the service needs of the child and the fam5 ily, and the continuing necessity for and appro6 priateness of the services being provided with respect 

7 to—

8 ‘‘(I) each child, parent, or caregiver who 

9 comes to the attention of the State agency and 

10 whose case is referred for assessment or inves11 tigation because of a concern about the risk of 

12 abuse or neglect, and who receives preventive, 

13 protective, crisis, permanency, independent liv14 ing, or post-permanency services under this 

15 part; and 

16 ‘‘(II) each child, parent, or caregiver who 

17 receives post-permanency services under this 

18 part when a child is returned to the birth fam19 ily, placed in an adoptive family, or placed per20 manently with a legal guardian or a fit and 

21 willing relative.’’

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

23 this section take effect on October 1, 2003. 
752

•HR 936 IH 

1 SEC. 8003. KINSHIP GUARDIANSHIP ASSISTANCE PAY2 MENTS FOR CHILDREN. 

3 (a) IN GENERAL.—Part E of title IV of the Social 

4 Security Act (42 U.S.C. 670 et seq.) is amended by insert5 ing after section 472 the following: 

6 ‘‘SEC. 472A. KINSHIP GUARDIANSHIP ASSISTANCE PAY7 MENTS FOR CHILDREN. 

8 ‘‘(a) IN GENERAL.—Each State with a plan approved 

9 under this part may, at State option, enter into kinship 

10 guardianship assistance agreements to provide kinship 

11 guardianship assistance payments on behalf of children to 

12 grandparents and other relatives who have assumed legal 

13 guardianship (as defined in section 475(7)) of the children 

14 for whom they have cared as foster parents and for whom 

15 they have committed to care for on a permanent basis. 

16 ‘‘(b) KINSHIP GUARDIANSHIP ASSISTANCE AGREE17 MENT.—

18 ‘‘(1) IN GENERAL.—In order to receive pay19 ments under this section, a State shall—

20 ‘‘(A) negotiate and enter into a written, 

21 binding, kinship guardianship assistance agree22 ment with the prospective relative guardian of 

23 a child that meets the requirements of this sub24 section; and 

25 ‘‘(B) provide the prospective relative 

26 guardian with a copy of the agreement. 
753

•HR 936 IH 

1 ‘‘(2) MINIMUM REQUIREMENTS.—The agree2 ment shall specify, at a minimum—

3 ‘‘(A) the amount of, and manner in which, 

4 each kinship guardianship assistance payment 

5 will be provided under the agreement; 

6 ‘‘(B) the additional services and assistance 

7 that the child and relative guardian will be eli8 gible for under the agreement; 

9 ‘‘(C) the procedure by which the relative 

10 guardian may apply for additional services as 

11 needed, provided the agency and relative guard12 ian agree on the additional services as specified 

13 in the case plan; and 

14 ‘‘(D) subject to paragraph (4), that the 

15 State will pay the total cost of nonrecurring ex16 penses associated with obtaining legal guardian17 ship of the child.

18 ‘‘(3) INTERSTATE APPLICATION.—The agree19 ment shall provide—

20 ‘‘(A) that the agreement shall remain in 

21 effect without regard to the State residency of 

22 the kinship guardian; and 

23 ‘‘(B) for the protection of the interests of 

24 the child in any case where the kinship guard-
754

•HR 936 IH 

1 ian and the child move to another State while 

2 the agreement is in effect. 

3 ‘‘(4) NO AFFECT ON FEDERAL REIMBURSE4 MENT.—Nothing in paragraph (1)(D) shall be con5 strued as affecting the ability of the State to obtain 

6 reimbursement from the Federal Government for 

7 costs described in that paragraph. 

8 ‘‘(c) KINSHIP GUARDIANSHIP ASSISTANCE PAY9 MENT.—

10 ‘‘(1) IN GENERAL.—The kinship guardianship 

11 assistance payment shall be based on consideration 

12 of the needs of the relative guardian and of the child 

13 and shall be at least equal to the amount of the fos14 ter care maintenance payment for which the child 

15 would have been eligible if the child remained in fos16 ter care. The payment may be readjusted periodi17 cally based on relevant changes in such needs. 

18 ‘‘(2) LIMITATION.—

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 subparagraph (B), no kinship guardianship as21 sistance payment may be made to a relative 

22 guardian for any child who has attained age 18. 

23 ‘‘(B) EXCEPTIONS.—A kinship guardian24 ship assistance payment may be made to a rel25 ative guardian with respect to a child who—
755

•HR 936 IH 

1 ‘‘(i) is a full-time student in a sec2 ondary school or in the equivalent level of 

3 a vocational or technical training program 

4 and has not attained age 19; or 

5 ‘‘(ii) with respect to a child who the 

6 State determines has a mental or physical 

7 disability that warrants the continuation of 

8 assistance to age 21. 

9 ‘‘(d) CHILD’S ELIGIBILITY FOR A KINSHIP GUARD10 IANSHIP ASSISTANCE PAYMENT.—

11 ‘‘(1) IN GENERAL.—A child is eligible for a kin12 ship guardianship assistance payment under this 

13 section if the State agency determines the following: 

14 ‘‘(A) The child has been—

15 ‘‘(i) removed from his or her home 

16 pursuant to a voluntary placement agree17 ment or as a result of a judicial determina18 tion to the effect that continuation in the 

19 home would be contrary to the welfare of 

20 the child; and 

21 ‘‘(ii) under the care of the State agen22 cy for the 12-month period ending on the 

23 date of such agency determination. 
756

•HR 936 IH 

1 ‘‘(B) Being returned home or adopted are 

2 not appropriate permanency options for the 

3 child. 

4 ‘‘(C) The child demonstrates a strong at5 tachment to the prospective relative guardian 

6 and the relative guardian has a strong commit7 ment to caring permanently for the child. 

8 ‘‘(D) With respect to a child who has at9 tained age 14, the child has been consulted re10 garding the kinship guardianship arrangement. 

11 ‘‘(2) TREATMENT OF SIBLINGS.—With respect 

12 to a child who is described in paragraph (1) whose 

13 sibling or siblings are not so described—

14 ‘‘(A) the child and any sibling of the child 

15 may be placed in the same kinship guardianship 

16 arrangement if the State agency and the rel17 ative agree on the appropriateness of the ar18 rangement for the siblings; and 

19 ‘‘(B) kinship guardianship assistance pay20 ments may be paid for the child and each sib21 ling so placed.’’. 

22 (b) CONFORMING AMENDMENTS.—

23 (1) STATE PLAN REQUIREMENT.—Section 

24 471(a)(20) of such Act (42 U.S.C. 671(a)(20) is 

25 amended by striking ‘‘before the foster or adoptive 
757

•HR 936 IH 

1 parent may be finally approved for placement of a 

2 child on whose behalf foster care maintenance pay3 ments or adoption assistance payments’’ and insert4 ing ‘‘or relative guardian before the foster or adop5 tive parent or relative guardian may be finally ap6 proved for placement of a child on whose behalf fos7 ter care maintenance payments, adoption assistance 

8 payments, or kinship guardianship assistance pay9 ments’’. 

10 (2) DEFINITIONS.—Section 475(1) of such Act 

11 (42 U.S.C. 675(1)) is amended by adding at the end 

12 the following: 

13 ‘‘(F) In the case of a child with respect to 

14 whom the permanency plan is placement with a 

15 relative and receipt of kinship guardianship as16 sistance payments under section 472A, a de17 scription of— 

18 ‘‘(i) the steps that the agency has 

19 taken to determine that it is not appro20 priate for the child to be returned home or 

21 adopted; 

22 ‘‘(ii) the reasons why a permanent 

23 placement with a fit and willing relative 

24 through a kinship guardianship assistance 

25 arrangement is in the child’s best interests; 
758

•HR 936 IH 

1 ‘‘(iii) the ways in which the child 

2 meets the eligibility requirements for a kin3 ship guardianship assistance payment; 

4 ‘‘(iv) the efforts the agency has made 

5 to discuss adoption by the child’s relative 

6 foster parent as a more permanent alter7 native to legal guardianship and, in the 

8 case of a relative foster parent who has 

9 chosen not to pursue adoption, documenta10 tion of the reasons why; and 

11 ‘‘(v) the efforts made by the State 

12 agency to secure the consent of the child’s 

13 parent or parents to the kinship guardian14 ship assistance arrangement, or the rea15 sons why such efforts were not made.’’. 

16 SEC. 8004. ELIMINATION OF FINANCIAL ELIGIBILITY RE17 QUIREMENT FOR FOSTER CARE MAINTE18 NANCE AND ADOPTION ASSISTANCE PAY19 MENTS. 

20 (a) FOSTER CARE MAINTENANCE PAYMENTS.—Sec21 tion 472(a) of the Social Security Act (42 U.S.C. 672(a)) 

22 is amended—

23 (1) in the matter preceding paragraph (1), by 

24 striking ‘‘would have met the requirements of sec25 tion 406(a) (as so in effect) or of section 407 (as 
759

•HR 936 IH 

1 such sections were in effect on July 16, 1996) but 

2 for his removal from the home of a relative (speci3 fied in section 406(a)),’’ and inserting ‘‘has been re4 moved from his or her home’’; 

5 (2) in paragraph (2), by adding ‘‘and’’ at the 

6 end; 

7 (3) in paragraph (3), by striking ‘‘; and’’ and 

8 inserting a period; 

9 (4) by striking paragraph (4); and 

10 (5) by striking the last 2 sentences of that sec11 tion. 

12 (b) ADOPTION ASSISTANCE PAYMENTS.—Section 

13 473(a)(2) of the Social Security Act (42 U.S.C. 673(a)(2)) 

14 is amended—

15 (1) in subparagraph (A)(i)—

16 (A) by striking ‘‘met the requirements of 

17 section 406(a) or section 407 (as such sections 

18 were in effect on July 16, 1996) or would have 

19 met such requirements except for his removal 

20 from the home of a relative (specified in section 

21 406(a) (as so in effect))’’ and inserting ‘‘has 

22 been removed from his or her home’’; and 

23 (B) by striking ‘‘(or 403 (as such section 

24 was in effect on July 16, 1996))’’; 
760

•HR 936 IH 

1 (2) in subparagraph (A)(iii), by adding ‘‘and’’ 

2 at the end; 

3 (3) by striking subparagraph (B); 

4 (4) by redesignating subparagraph (C) as sub5 paragraph (B); and 

6 (5) by striking ‘‘The last sentence of section 

7 472(a)’’ and all that follows and inserting ‘‘Any 

8 child who meets the requirements of subparagraph 

9 (B), who was determined eligible for adoption assist10 ance payments under this part with respect to a 

11 prior adoption, who is available for adoption because 

12 the prior adoption has been dissolved and the paren13 tal rights of the adoptive parents have been termi14 nated or because the child’s adoptive parents have 

15 died, and who fails to meet the requirements of sub16 paragraph (A) but would meet such requirements if 

17 the child were treated as if the child were in the 

18 same circumstances the child was in the last time 

19 the child was determined eligible for adoption assist20 ance payments under this part and the prior adop21 tion were treated as never having occurred, shall be 

22 treated as meeting the requirements of this para23 graph for purposes of paragraph (1)(B)(ii).’’. 
761

•HR 936 IH 

1 SEC. 8005. ESTABLISHMENT OF UNIFORM FEDERAL MATCH2 ING RATE. 

3 (a) IN GENERAL.—Section 474(a) of the Social Secu4 rity Act (42 U.S.C. 674(a)) is amended—

5 (1) in the matter preceding paragraph (1)—

6 (A) by striking ‘‘of—’’ and inserting ‘‘of 

7 the following:’’; 

8 (B) by striking ‘‘(1) an amount’’ and all 

9 that follows through the end of paragraph (3) 

10 and inserting the following: 

11 ‘‘(1) The Federal medical assistance percentage 

12 (as defined in section 1905(b)) of each of the fol13 lowing: 

14 ‘‘(A) The total amount expended during 

15 such quarter as foster care maintenance pay16 ments under section 472 for children in foster 

17 family homes or child-care institutions. 

18 ‘‘(B) The total amount expended during 

19 such quarter as kinship guardianship assistance 

20 payments under section 472A for children with 

21 a kinship guardianship assistance agreement. 

22 ‘‘(C) The total amount expended during 

23 such quarter as adoption assistance payments 

24 under section 473 pursuant to adoption assist25 ance agreements. 
762

•HR 936 IH 

1 ‘‘(D) Subject to paragraph (3), the total 

2 amount expended during such quarter for pre3 ventive, protective, crisis, permanency, inde4 pendent living, and post-permanency services 

5 and activities under section 474A. 

6 ‘‘(E) The total amounts expended during 

7 such quarter as found necessary by the Sec8 retary for the provision of child placement serv9 ices and for the proper and efficient administra10 tion of the State plan. 

11 ‘‘(F) The total amounts expended during 

12 such quarter as found necessary by the Sec13 retary for the training of— 

14 ‘‘(i) personnel employed or preparing 

15 for employment by the State agency or by 

16 the local agency administering the plan in 

17 the political subdivision (including short18 and long-term training at educational insti19 tutions through grants to such institutions 

20 or by direct financial assistance to stu21 dents enrolled in such institutions); 

22 ‘‘(ii) current or prospective foster or 

23 adoptive parents and the members of the 

24 staff of State-licensed or State-approved 

25 child care institutions providing care to 
763

•HR 936 IH 

1 foster and adopted children receiving as2 sistance under this part, in ways that in3 crease the ability of such current or pro4 spective parents, staff members, and insti5 tutions to provide support and assistance 

6 to foster and adopted children, whether in7 curred directly by the State or by contract 

8 but only for such expenditures (including 

9 travel and per diem expenses) that are in10 curred for short-term training; 

11 ‘‘(iii) the staff of private State li12 censed or State approved child welfare 

13 agencies that provide preventive, crisis, 

14 protective permanency, post-permanency, 

15 and independent living services or care to 

16 foster and adopted children and children 

17 with relative guardians who are eligible for 

18 assistance under this part (including joint 

19 training and cross training of such staff); 

20 ‘‘(iv) court staff, including judges, ju21 dicial personnel, law enforcement per22 sonnel, agency attorneys, attorneys rep23 resenting parents in proceedings conducted 

24 by or under the supervision of an abuse or 

25 neglect court, attorneys representing chil-
764

•HR 936 IH 

1 dren in such proceedings, guardian ad 

2 litems, volunteers who participate in court3 appointed special advocate (CASA) pro4 grams, and citizen review board members 

5 when under court auspices to keep children 

6 safe and provide permanent families for 

7 children, but only to the extent that any 

8 training offered to judges or any judicial 

9 personnel is offered by, or under contract 

10 with, the State or local agency in collabo11 ration with the judicial conference or other 

12 appropriate judicial governing body oper13 ating in the State; and 

14 ‘‘(v) staff employed by State, local, or 

15 private nonprofit substance abuse preven16 tion and treatment agencies, mental health 

17 providers, domestic violence prevention and 

18 treatment providers, health agencies, child 

19 care agencies, schools, and community 

20 service agencies that are collaborating with 

21 the State or local agency administering the 

22 State plan under this part to keep children 

23 safe and provide permanent families for 

24 children, including adoptive families. 
765

•HR 936 IH 

1 ‘‘(G) The total amounts expended during 

2 such quarter as found necessary by the Sec3 retary for the planning, design, development, 

4 installation, or operation of statewide mecha5 nized data collection and information retrieval 

6 systems (including expenditures for hardware 

7 components for such systems) but only to the 

8 extent that such systems—

9 ‘‘(i) meet the requirements imposed 

10 by regulations promulgated pursuant to 

11 section 479(b)(2); 

12 ‘‘(ii) to the extent practicable, are ca13 pable of interfacing with the State data 

14 collection system that collects information 

15 relating to child abuse and neglect; and 

16 ‘‘(iii) are determined by the Secretary 

17 to be likely to provide more efficient, eco18 nomical, and effective administration of 

19 the programs carried out under a State 

20 plan approved under part B or this part.’’; 

21 (2) in paragraph (4)—

22 (A) by striking ‘‘the lesser’’ and inserting 

23 ‘‘The lesser’’; and 

24 (B) by redesignating such paragraph as 

25 paragraph (2); and 
766

•HR 936 IH 

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

2 paragraph: 

3 ‘‘(3) With respect to a State that elects to pro4 vide preventive, protective, crisis, permanency, inde5 pendent living, and post-permanency services and ac6 tivities under section 474A, that begins the process 

7 for accreditation of the State agency administering 

8 the program under this part within 3 years after the 

9 date of enactment of the Leave No Child Behind Act 

10 of 2003, and that has such State agency accredited 

11 by a nationally recognized accrediting agency ap12 proved by the Secretary to provide such accredita13 tion, the Federal medical assistance percentage for 

14 the State shall be increased by 1 percentage point a 

15 year for each of the 4 consecutive years in which the 

16 agency is so accredited for purposes of making the 

17 payments described in paragraph (1)(D), beginning 

18 with the first fiscal year quarter that begins after 

19 the State submits to the Secretary evidence of such 

20 accreditation.’’. 

21 (b) CONFORMING AMENDMENTS.—

22 (1) Section 473(a)(6)(B) of such Act (42 

23 U.S.C. 673(a)(6)(B)) is amended by striking 

24 ‘‘474(a)(3)(E)’’ and inserting ‘‘474(a)(1)(E)’’. 
767

•HR 936 IH 

1 (2) Section 477(h) of such Act (42 U.S.C. 

2 677(h)) is amended by striking ‘‘474(a)(4)’’ and in3 serting ‘‘474(a)(2)’’. 

4 SEC. 8006. ELIMINATION OF DISINCENTIVE FOR FOSTER 

5 PARENTS TO ADOPT CHILDREN WITH SPE6 CIAL NEEDS WHO HAVE BEEN IN THEIR FOS7 TER CARE. 

8 The last sentence of section 473(a)(3) of the Social 

9 Security Act (42 U.S.C 673(a)(3)) is amended to read as 

10 follows: ‘‘However, an adoptive parent shall be eligible to 

11 receive an adoption assistance payment under clause (ii) 

12 of paragraph (1)(B) that is at least equal to the foster 

13 care maintenance payment which would have been paid 

14 during the period if the child with respect to whom the 

15 adoption assistance payment is made had been in a foster 

16 family home.’’. 

17 SEC. 8007. EXTENSION OF ADOPTION ASSISTANCE PAY18 MENTS. 

19 Section 473(a)(4) of the Social Security Act (42 

20 U.S.C. 673(a)(4)) is amended by striking ‘‘(or,’’ and in21 serting ‘‘(or, in the case of a child who is a full-time stu22 dent in a secondary school or in the equivalent educational 

23 level of a vocational or technical training program, the age 

24 of nineteen, or’’. 
768

•HR 936 IH 

1 SEC. 8008. REIMBURSEMENT FOR ROOM AND BOARD IN 

2 FOSTER FAMILY HOMES, CHILD CARE INSTI3 TUTIONS, OR SUPERVISED LIVING ARRANGE4 MENTS FOR YOUNG PEOPLE AGING OUT OF 

5 FOSTER CARE. 

6 Section 472 of the Social Security Act (42 U.S.C. 

7 672) is amended by adding at the end the following: 

8 ‘‘(i)(1) Notwithstanding any other provision of this 

9 part, a State may make foster care maintenance payments 

10 (as defined in section 475(4)) under this section on behalf 

11 of eligible individuals described in paragraph (2) for reim12 bursement of room and board expenses incurred for such 

13 individuals in a foster family home, child care institution, 

14 or other supervised living arrangement as approved by the 

15 State agency, in order to assist such individuals to leave 

16 foster care and transition to self-sufficiency. 

17 ‘‘(2) An eligible individual described in this para18 graph is an individual who—

19 ‘‘(A) was in foster care on the date that the in20 dividual attained age 17 and had been in foster care 

21 for at least 1 year prior to that date; 

22 ‘‘(B) has not attained age 22; 

23 ‘‘(C) is in the process of completing secondary 

24 education, enrolled in an institution that provides 

25 postsecondary education or vocational training, or is 

26 employed for at least 80 hours per month; 
769

•HR 936 IH 

1 ‘‘(D) is participating in independent living ac2 tivities of the type that may be supported under the 

3 John H. Chafee Foster Care Independence Program 

4 under section 477; and 

5 ‘‘(E) has a case plan that includes a specific 

6 plan for how the individual will achieve independent 

7 living and that provides for the individual to reside 

8 in a setting that promotes personal responsibility 

9 and encourages self-sufficiency. 

10 ‘‘(3)(A) A State may not receive payments under sec11 tion 474(a)(1)(A) for expenditures under this subsection 

12 unless with respect to fiscal year 2004 and each fiscal year 

13 thereafter, the total Federal, State, and local expenditures 

14 for reimbursements described in paragraph (1) in the 

15 State (or for related independent living services) equals 

16 or exceeds the total of such expenditures for fiscal year 

17 2003. 

18 ‘‘(B) The amount of total Federal, State, and local 

19 expenditures required under subparagraph (A) to be main20 tained for a fiscal year may be reduced appropriately if 

21 the total Federal expenditures for that fiscal year are less 

22 than such the amount of such expenditures for fiscal year 

23 2003. 

24 ‘‘(4) With respect to a fiscal year, a State that makes 

25 foster care maintenance payments under this subsection 
770

•HR 936 IH 

1 shall submit to the Secretary an annual report that in2 cludes the following: 

3 ‘‘(A) The number of eligible individuals de4 scribed in paragraph (2) who received foster care 

5 maintenance payments under this subsection and the 

6 nature of the settings in which such individuals were 

7 housed. 

8 ‘‘(B) A description of the steps being under9 taken in the State to promote housing opportunities 

10 for individuals transitioning from foster care after 

11 attaining age 18 and for individuals that have al12 ready transitioned out of foster care as a result of 

13 age. 

14 ‘‘(C) Recommendations regarding the types of 

15 Federal assistance that would assist the State to 

16 better meet the housing need of the individuals de17 scribed in subparagraph (B).’’. 

18 SEC. 8009. ADDITIONAL ACCOUNTABILITY. 

19 Section 471(a) of the Social Security Act (42 U.S.C. 

20 671(a)), as amended by section 8001(b), is amended—

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

22 end; 

23 (2) in paragraph (25)(E), by striking the period 

24 and inserting a semicolon; 

25 (3) by adding at the end the following: 
771

•HR 936 IH 

1 ‘‘(26) provides that, beginning with January 1, 

2 2006, and each January 1 thereafter, the State 

3 agency shall prepare and submit to the Secretary, 

4 and make available to the public, including through 

5 posting on the State agency’s Internet website, a re6 port that, with respect to the 2 preceding fiscal 

7 years that are the subject of the report, describes—

8 ‘‘(A) how the funding made available 

9 under section 474A has been used; 

10 ‘‘(B) the impact that the services and ac11 tivities undertaken with such funding has had 

12 on—

13 ‘‘(i) preventing the abuse and neglect 

14 and repeat abuse and neglect of children; 

15 ‘‘(ii) preventing the entry and re-entry 

16 of children into foster care; 

17 ‘‘(iii) decreasing the length of stay of 

18 children in foster care in the State; and 

19 ‘‘(iv) promoting permanent place20 ments for children; 

21 ‘‘(C) efforts by the State agency to im22 prove the quality and retention of supervisors 

23 and staff who are delivering services under the 

24 State plan approved under this part, directly or 
772

•HR 936 IH 

1 under contract, and to improve the workloads of 

2 staff; 

3 ‘‘(D) efforts by the State agency or local 

4 agencies to use community partners to promote 

5 safety and permanence for children, including a 

6 description of—

7 ‘‘(i) collaborative work with substance 

8 abuse, mental health, health, or domestic 

9 violence agencies or providers to address 

10 the needs of the families assisted under 

11 this part; 

12 ‘‘(ii) the involvement of community13 based organizations with the State agency; 

14 ‘‘(iii) how parents are engaged in the 

15 delivery of services; and 

16 ‘‘(iv) efforts to utilize family team 

17 meeting, family group decisionmaking, or 

18 other activities that build on family 

19 strengths and address what families need; 

20 ‘‘(E) the procedures that are in place to 

21 ensure that children who are returned home or 

22 placed in other permanent settings receive the 

23 support they need to remain home or in such a 

24 setting; and 
773

•HR 936 IH 

1 ‘‘(F) the status of the State’s most recent 

2 child and family services review and its pro3 gram improvement plan activities, if applicable; 

4 and 

5 ‘‘(27) provides that, beginning on January 1, 

6 2006, the independent body charged with reviewing 

7 cases of children (such as a court, citizen review 

8 board, or independent administrative review body) 

9 biannually shall submit a report to the Secretary, in 

10 such form and manner as the Secretary shall re11 quire, that describes—

12 ‘‘(A) the status of children in the State, as 

13 reflected in the reviews conducted by such body; 

14 ‘‘(B) the barriers to moving children in the 

15 State in accordance with the permanency plans 

16 for such children; and 

17 ‘‘(C) recommendations for the amount of 

18 resources, fiscal and otherwise, that are needed 

19 to better meet the goals of safety and perma20 nence for children established in the Adoption 

21 and Safe Families Act of 1997.’’. 
774

•HR 936 IH 

1 SEC. 8010. AUTHORITY OF INDIAN TRIBES TO RECEIVE FED2 ERAL FUNDS FOR FOSTER CARE AND ADOP3 TION ASSISTANCE. 

4 (a) CHILDREN PLACED IN TRIBAL CUSTODY ELIGI5 BLE FOR FOSTER CARE FUNDING.—Section 472(a)(2) of 

6 the Social Security Act (42 U.S.C. 672(a)(2)) is amend7 ed—

8 (1) by striking ‘‘or (B)’’ and inserting ‘‘(B)’’; 

9 and 

10 (2) by inserting before the semicolon the fol11 lowing: ‘‘, or (C) an Indian tribe (as defined in sec12 tion 479B(e)) or an intertribal consortium if the In13 dian tribe or consortium is not operating a program 

14 pursuant to section 479B and (i) has a cooperative 

15 agreement with a State pursuant to section 479B(c) 

16 or (ii) submits to the Secretary a description of the 

17 arrangements (jointly developed or developed in con18 sultation with the State) made by the Indian tribe 

19 or consortium for the payment of funds and the pro20 vision of the child welfare services and protections 

21 required by this title’’. 

22 (b) PROGRAMS OPERATED BY INDIAN TRIBAL ORGA23 NIZATIONS.—Part E of title IV of the Social Security Act 

24 (42 U.S.C. 670 et seq.) is amended by adding at the end 

25 the following: 
775

•HR 936 IH 

1 ‘‘SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL OR2 GANIZATIONS. 

3 ‘‘(a) APPLICATION.—Except as provided in sub4 section (b), this part shall apply to an Indian tribe that 

5 elects to operate a program under this part in the same 

6 manner as this part applies to a State. 

7 ‘‘(b) MODIFICATION OF PLAN REQUIREMENTS.—

8 ‘‘(1) IN GENERAL.—In the case of an Indian 

9 tribe submitting a plan for approval under section 

10 471, the plan shall—

11 ‘‘(A) in lieu of the requirement of section 

12 471(a)(3), identify the service area or areas and 

13 population to be served by the Indian tribe; and 

14 ‘‘(B) in lieu of the requirement of section 

15 471(a)(10), provide for the approval of foster 

16 homes pursuant to tribal standards and in a 

17 manner that ensures the safety of, and account18 ability for, children placed in foster care. 

19 ‘‘(2) DETERMINATION OF FEDERAL SHARE.—

20 ‘‘(A) PER CAPITA INCOME.—

21 ‘‘(i) IN GENERAL.—For purposes of 

22 determining the Federal medical assistance 

23 percentage applicable to an Indian tribe el24 igible for payments under section 474(a), 

25 the calculation of an Indian tribe’s per 

26 capita income shall be based upon the serv-
776

•HR 936 IH 

1 ice population of the Indian tribe as de2 fined in its plan in accordance with para3 graph (1)(A). 

4 ‘‘(ii) CONSIDERATION OF OTHER IN5 FORMATION.—An Indian tribe may submit 

6 to the Secretary such information as the 

7 Indian tribe considers relevant to the cal8 culation of the per capita income of the In9 dian tribe, and the Secretary shall consider 

10 such information before making the cal11 culation. 

12 ‘‘(B) SOURCES OF NON-FEDERAL

13 SHARE.—An Indian tribe may use Federal or 

14 State funds to match payments for which the 

15 Indian tribe is eligible under section 474. 

16 ‘‘(3) MODIFICATION OF OTHER REQUIRE17 MENTS.—Upon the request of an Indian tribe or 

18 tribes, the Secretary may modify any requirement 

19 under this part if, after consulting with the Indian 

20 tribe or tribes, the Secretary determines that modi21 fication of the requirement would advance the best 

22 interests and the safety of children served by the In23 dian tribe or tribes. 

24 ‘‘(4) CONSORTIUM.—The participating Indian 

25 tribes of an intertribal consortium may develop and 
777

•HR 936 IH 

1 submit a single plan under section 471 that meets 

2 the requirements of this section. 

3 ‘‘(c) COOPERATIVE AGREEMENTS.—An Indian tribe 

4 or intertribal consortium and a State may enter into a 

5 cooperative agreement for the administration or payment 

6 of funds pursuant to this part. In any case where an In7 dian tribe or intertribal consortium and a State enter into 

8 a cooperative agreement that incorporates any of the pro9 visions of this section, those provisions shall be valid and 

10 enforceable. Any such cooperative agreement that is in ef11 fect as of the date of enactment of this section, shall re12 main in full force and effect subject to the right of either 

13 party to the agreement to revoke or modify the agreement 

14 pursuant to the terms of the agreement. 

15 ‘‘(d) REGULATIONS.—Not later than 1 year after the 

16 date of enactment of this section, the Secretary shall, in 

17 full consultation with Indian tribes and tribal organiza18 tions, promulgate regulations to carry out this section. 

19 ‘‘(e) DEFINITIONS OF INDIAN TRIBE; TRIBAL ORGA20 NIZATIONS.—In this section, the terms ‘Indian tribe’ and 

21 ‘tribal organization’ have the meanings given those terms 

22 in subsections (e) and (l) of section 4 of the Indian Self23 Determination and Education Assistance Act (25 U.S.C. 

24 450b), respectively.’’. 
778

•HR 936 IH 

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

2 this section take effect on the date of enactment of this 

3 Act without regard to regulations to implement such 

4 amendments being promulgated by such date. 

5 Subtitle B—Social Services Block 

6 Grant 

7 SEC. 8101. SHORT TITLE. 

8 This subtitle may be cited as the ‘‘Social Services 

9 Block Grant Restoration Act’’. 

10 SEC. 8102. FINDINGS. 

11 Congress makes the following findings: 

12 (1) Since 1975, title XX of the Social Security 

13 Act (42 U.S.C. 1397 et seq.), commonly referred to 

14 as the Social Services Block Grant (in this section 

15 referred to as ‘‘SSBG’’), has authorized funding for 

16 social services to ensure that at-risk children and 

17 families, the elderly, and physically and mentally dis18 abled individuals remain stable, independent, and 

19 economically self sufficient. In 1981, Congress and 

20 the Reagan Administration converted SSBG into a 

21 block grant designed to give maximum flexibility to 

22 States to serve these fundamental purposes. 

23 (2) Funds provided under the SSBG focus cost24 effective support at the community level that pre25 vents the need for inappropriate institutional care 
779

•HR 936 IH 

1 which is more costly for Federal and State programs 

2 such as the medicaid, medicare, and the social secu3 rity disability benefits programs. 

4 (3) The SSBG helps to further the goals set 

5 forth in the Personal Responsibility and Work Op6 portunity Reconciliation Act of 1996 (Public Law 

7 104–193; 110 Stat. 2105) by supporting the Tem8 porary Assistance to Needy Families program 

9 (TANF) and support-related programs such as on10 the-job training, child care, transportation, coun11 seling, and other services that facilitate long-term 

12 family stability and economic self-sufficiency. 

13 (4) The SSBG provides essential funding to 

14 many States for child welfare services that support 

15 the goals of the Adoption and Safe Families Act of 

16 1997 (Public Law 105–89; 111 Stat. 2115) to pro17 mote a safe family environment and encourage adop18 tion to move children into stable and permanent 

19 families.

20 (5) The SSBG helps promote independent living 

21 for vulnerable and low-income elderly individuals by 

22 supporting home care services, including home-deliv23 ered meals, adult protective services, adult day care, 

24 and other essential case management services pro25 vided in every State. 
780

•HR 936 IH 

1 (6) It is reported that 820,000 older Americans 

2 are abused and neglected in this country each year. 

3 There are additional concerns about the under re4 porting of elderly abuse and neglect. The SSBG sup5 ports adult protective services that prevent wide6 spread abuse and neglect of older Americans and 

7 help more than 651,000 elderly individuals in 31 

8 States. 

9 (7) More than 570,000 disabled individuals re10 ceive a range of community-based services and sup11 ports nationwide. The SSBG provides significant re12 sources to fill the funding gaps in the developmental 

13 disabilities system by supporting such services as 

14 early intervention and crisis intervention, adult day 

15 care, respite care, transportation, employment train16 ing, and independent living services in 38 States. 

17 (8) The SSBG supports essential mental health 

18 and related services to ensure that vulnerable adults 

19 and children receive early intervention to prevent 

20 more serious and costly mental health crises in the 

21 future. Such services include the provision of coun22 seling to almost 400,000 adults and children, case 

23 management services for nearly 900,000 families, 

24 and the provision of information and referral assist25 ance to more than 1,300,000 individuals. 
781

•HR 936 IH 

1 (9) There are nearly 3,000,000 reports of child 

2 abuse and neglect each year. There are currently 

3 over 300,000 children in the American foster care 

4 system. The SSBG enables the provision of child 

5 protective services to 1,300,000 children, adoption 

6 services to over 150,000 children and families, and 

7 prevention and intervention services to more than 

8 700,000 families. 

9 (10) The SSBG has been eroded by more than 

10 $1,000,000,000 over the last 6 years resulting in 

11 cuts in services in many States and local commu12 nities. 

13 (11) Temporary Assistance to Needy Families 

14 (TANF) block grants cannot be used to make up 

15 cuts to the SSBG because a large percentage of 

16 SSBG funds are used for the elderly, disabled, and 

17 other populations that are ineligible for TANF 

18 funds. 

19 (12) The 104th Congress made a commitment 

20 to the SSBG in the Personal Responsibility and 

21 Work Opportunity Reconciliation Act of 1996 (Pub22 lic Law 104–193; 110 Stat. 2105) by authorizing 

23 the program at $2,380,000,000 through fiscal year 

24 2002 and returning the authorization for the pro-
782

•HR 936 IH 

1 gram to $2,800,000,000 in fiscal year 2003 and 

2 each succeeding fiscal year. 

3 SEC. 8103. RESTORATION OF AUTHORITY TO TRANSFER UP 

4 TO 10 PERCENT OF TANF FUNDS TO THE SO5 CIAL SERVICES BLOCK GRANT. 

6 (a) IN GENERAL.—Section 404(d)(2) of the Social 

7 Security Act (42 U.S.C. 604(d)(2)) is amended to read 

8 as follows: 

9 ‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE

10 TO TITLE XX PROGRAMS.—A State may use not 

11 more than 10 percent of the amount of any grant 

12 made to the State under section 403(a) for a fiscal 

13 year to carry out State programs pursuant to title 

14 XX.’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 subsection (a) applies to amounts made available for fiscal 

17 year 2004 and each fiscal year thereafter. 

18 SEC. 8104. RESTORATION OF FUNDS FOR THE SOCIAL SERV19 ICES BLOCK GRANT. 

20 Section 2003(c) of the Social Security Act (42 U.S.C. 

21 1397b(c)) is amended—

22 (1) in paragraph (10), by striking ‘‘and’’ at the 

23 end; and 

24 (2) in paragraph (11), by striking ‘‘ and each 

25 fiscal year thereafter.’’ and inserting ‘‘; and’’; and 
783

•HR 936 IH 

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

2 ‘‘(12) $2,380,000,000 for the fiscal year 2004 

3 and each fiscal year thereafter.’’. 

4 SEC. 8105. REQUIREMENT TO SUBMIT ANNUAL REPORT ON 

5 STATE ACTIVITIES. 

6 (a) IN GENERAL.—Section 2006(c) of the Social Se7 curity Act (42 U.S.C. 1397e(c)) is amended by adding at 

8 the end the following new sentence: ‘‘The Secretary shall 

9 compile the information submitted by the States and sub10 mit that information to Congress on an annual basis.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 subsection (a) applies to information submitted by States 

13 under section 2006 of the Social Security Act (42 U.S.C. 

14 1397e) with respect to fiscal year 2003 and each fiscal 

15 year thereafter. 

16 Subtitle C—Child Protection and 

17 Alcohol and Drug Partnerships 

18 SEC. 8201. SHORT TITLE. 

19 This subtitle may be cited as the ‘‘Child Protection/

20 Alcohol and Drug Partnership Act’’. 

21 SEC. 8202. CHILD PROTECTION/ALCOHOL AND DRUG PART22 NERSHIPS FOR CHILDREN. 

23 Part B of title IV of the Social Security Act (42 

24 U.S.C. 620 et seq.) is amended by adding at the end the 

25 following: 
784

•HR 936 IH 

1 ‘‘Subpart 3—Child Protection/Alcohol and Drug 

2 Partnerships For Children 

3 ‘‘SEC. 440. DEFINITIONS. 

4 ‘‘In this subpart: 

5 ‘‘(1) ALASKA NATIVE ORGANIZATION.—The 

6 term ‘Alaska Native Organization’ means any orga7 nized group of Alaska Natives eligible to operate a 

8 Federal program under the Indian Self-Determina9 tion Act (25 U.S.C. 450f et seq.) or such group’s 

10 designee.

11 ‘‘(2) ADMINISTRATIVE COSTS.—

12 ‘‘(A) IN GENERAL.—The term ‘administra13 tive costs’ means the costs for the general ad14 ministration of administrative activities, includ15 ing contract costs and all overhead costs. 

16 ‘‘(B) EXCLUSION.—Such term does not in17 clude the direct costs of providing services and 

18 costs related to case management, training, 

19 technical assistance, evaluation, establishment, 

20 and operation of information systems, and such 

21 other similar costs that are also an integral 

22 part of service delivery. 

23 ‘‘(3) ELIGIBLE STATE.—The term ‘eligible 

24 State’ means a State that submits a joint applica25 tion from the State agencies that—
785

•HR 936 IH 

1 ‘‘(A) includes a plan that meets the re2 quirements of section 442; and 

3 ‘‘(B) is approved by the Secretary for a 5-

4 year period after consultation with the Assist5 ant Secretary for the Administration for Chil6 dren and Families and the Administrator of the 

7 Substance Abuse and Mental Health Services 

8 Administration. 

9 ‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’ 

10 means any Indian tribe, band, Nation or other orga11 nized group or community of Indians, including any 

12 Alaska Native Organization, that is recognized as el13 igible for the special programs and services provided 

14 by the United States to Indians because of their sta15 tus as Indians. 

16 ‘‘(5) STATE.—

17 ‘‘(A) IN GENERAL.—The term ‘State’ 

18 means each of the 50 States, the District of Co19 lumbia, and the territories described in sub20 paragraph (B). 

21 ‘‘(B) TERRITORIES.—

22 ‘‘(i) IN GENERAL.—The territories de23 scribed in this subparagraph are Puerto 

24 Rico, Guam, the United States Virgin Is-
786

•HR 936 IH 

1 lands, American Samoa, and the Northern 

2 Mariana Islands. 

3 ‘‘(ii) AUTHORITY TO MODIFY RE4 QUIREMENTS.—The Secretary may modify 

5 the requirements of this subpart with re6 spect to a territory described in clause (i) 

7 to the extent necessary to allow such a ter8 ritory to conduct activities through funds 

9 provided under a grant made under this 

10 subpart. 

11 ‘‘(6) STATE AGENCIES.—The term ‘State agen12 cies’ means the State child welfare agency and the 

13 unit of State government responsible for the admin14 istration of the substance abuse prevention and 

15 treatment block grant provided under subpart II of 

16 part B of title XIX of the Public Health Service Act 

17 (42 U.S.C. 300x–21 et seq.). 

18 ‘‘(7) TRIBAL ORGANIZATION.—The term ‘tribal 

19 organization’ means the recognized governing body 

20 of an Indian tribe.

21 ‘‘SEC. 441. GRANTS TO PROMOTE CHILD PROTECTION/AL22 COHOL AND DRUG PARTNERSHIPS FOR CHIL23 DREN. 

24 ‘‘(a) AUTHORITY TO AWARD GRANTS.—The Sec25 retary may award grants to eligible States and directly 
787

•HR 936 IH 

1 to Indian tribes in accordance with the requirements of 

2 this subpart for the purpose of promoting joint activities 

3 among Federal, State, and local public child welfare and 

4 alcohol and drug abuse prevention and treatment agencies 

5 (and among child welfare and alcohol and drug abuse pre6 vention and treatment agencies that are providing services 

7 to children in Indian tribes) that focus on families with 

8 alcohol or drug abuse problems who come to the attention 

9 of the child welfare system and are designed to—

10 ‘‘(1) increase the capacity of both the child wel11 fare system and the alcohol and drug abuse preven12 tion and treatment system to address comprehen13 sively and in a timely manner the needs of such fam14 ilies to improve child safety, family stability, and 

15 permanence; and 

16 ‘‘(2) promote recovery from alcohol and drug 

17 abuse problems. 

18 ‘‘(b) NOTIFICATION.—Not later than 60 days after 

19 the date a joint application is submitted by the State agen20 cies or an application is submitted by an Indian tribe, the 

21 Secretary shall notify a State or Indian tribe that the ap22 plication has been approved or disapproved. 

23 ‘‘SEC. 442. PLAN REQUIREMENTS. 

24 ‘‘(a) CONTENTS.—Subject to subsection (c), the plan 

25 shall contain the following: 
788

•HR 936 IH 

1 ‘‘(1) A detailed description of how the State 

2 agencies will work jointly to implement a range of 

3 activities to meet the alcohol and drug abuse preven4 tion and treatment needs of families who come to 

5 the attention of the child welfare system and to pro6 mote child safety, permanence, and family stability. 

7 ‘‘(2) An assurance that the heads of the State 

8 agencies shall jointly administer the grant program 

9 funded under this subpart and a description of how 

10 they will do so. 

11 ‘‘(3) A description of the nature and extent of 

12 the problem of alcohol and drug abuse among fami13 lies who come to the attention of the child welfare 

14 system in the State, and of any plans being imple15 mented to further identify and assess the extent of 

16 the problem. 

17 ‘‘(4) A description of any joint activities already 

18 being undertaken by the State agencies in the State 

19 on behalf of families with alcohol and drug abuse 

20 problems who come to the attention of the child wel21 fare system (including any existing data on the im22 pact of such joint activities) such as activities relat23 ing to—

24 ‘‘(A) the appropriate screening and assess25 ment of cases; 
789

•HR 936 IH 

1 ‘‘(B) consultation on cases involving alco2 hol and drug abuse; 

3 ‘‘(C) arrangements for addressing con4 fidentiality and sharing of information; 

5 ‘‘(D) cross training of staff; 

6 ‘‘(E) co-location of services; 

7 ‘‘(F) support for comprehensive treatment 

8 programs for parents and their children; and

9 ‘‘(G) establishing priority of child welfare 

10 families for assessment or treatment. 

11 ‘‘(5)(A) A description of the joint activities to 

12 be funded in whole or in part with the funds pro13 vided under the grant, including the sequencing of 

14 the activities proposed to be conducted under the 5-

15 year funding cycle and the goals to be achieved dur16 ing such funding cycle. The activities and goals shall 

17 be designed to improve the capacity of the State 

18 agencies to work jointly to improve child safety, fam19 ily stability, and permanence for children whose fam20 ilies come to the attention of the child welfare sys21 tem and to promote their parents’ recovery from al22 cohol and drug abuse. 

23 ‘‘(B) The description shall include a statement 

24 as to why the State agencies chose the specified ac25 tivities and goals. 
790

•HR 936 IH 

1 ‘‘(6) A description as to whether and how the 

2 joint activities described in paragraph (5), and other 

3 related activities funded with Federal funds, will ad4 dress some or all of the following practices and pro5 cedures: 

6 ‘‘(A) Practices and procedures designed to 

7 appropriately—

8 ‘‘(i) identify alcohol and drug treat9 ment needs; 

10 ‘‘(ii) assess such needs; 

11 ‘‘(iii) assess risks to the safety of a 

12 child and the need for permanency with re13 spect to the placement of a child; 

14 ‘‘(iv) enroll families in appropriate 

15 services and treatment in their commu16 nities; and 

17 ‘‘(v) regularly assess the progress of 

18 families receiving such treatment. 

19 ‘‘(B) Practices and procedures designed to 

20 provide comprehensive and timely individualized 

21 alcohol and drug abuse prevention and treat22 ment services for families who come to the at23 tention of the child welfare system that include 

24 a range of options that are available, accessible, 
791

•HR 936 IH 

1 and appropriate, and that may include the fol2 lowing components: 

3 ‘‘(i) Preventive and early intervention 

4 services for children of parents with alcohol 

5 and drug abuse problems that integrate al6 cohol and drug abuse prevention services 

7 with mental health and domestic violence 

8 services, and that recognize the mental, 

9 emotional, and developmental problems the 

10 children may experience. 

11 ‘‘(ii) Prevention and early intervention 

12 services for parents at risk for alcohol and 

13 drug abuse problems. 

14 ‘‘(iii) Comprehensive home-based, out15 patient, and residential treatment options. 

16 ‘‘(iv) After-care support (both formal 

17 and informal) for families in recovery that 

18 promotes child safety and family stability. 

19 ‘‘(v) Services and supports that focus 

20 on parents, parents with their children, 

21 parents’ children, other family members, 

22 and parent-child interaction. 

23 ‘‘(C) Elimination of existing barriers to 

24 treatment and to child safety and permanence, 

25 such as difficulties in sharing information 
792

•HR 936 IH 

1 among agencies and differences between the 

2 values and treatment protocols of the different 

3 agencies. 

4 ‘‘(D) Effective engagement and retention 

5 strategies. 

6 ‘‘(E) Pre-service and in-service joint train7 ing of management and staff of child welfare 

8 and alcohol and drug abuse prevention and 

9 treatment agencies, and, where appropriate, 

10 judges and other court staff, to—

11 ‘‘(i) increase such individuals’ aware12 ness and understanding of alcohol and 

13 drug abuse and related child abuse and ne14 glect; 

15 ‘‘(ii) more accurately identify and 

16 screen alcohol and drug abuse and child 

17 abuse in families; 

18 ‘‘(iii) improve assessment skills of 

19 both child abuse and alcohol and drug 

20 abuse staff, including skills to assess risk 

21 to children’s safety; 

22 ‘‘(iv) increase staff knowledge of the 

23 services and resources that are available in 

24 such individuals’ communities and appro25 priate for such families; and 
793

•HR 936 IH 

1 ‘‘(v) increase awareness of the impor2 tance of permanence for children and the 

3 timelines for decisionmaking regarding per4 manence in the child welfare system. 

5 ‘‘(F) Progress in enhancing the abilities of 

6 the State agencies to improve the data systems 

7 of such agencies in order to monitor the 

8 progress of families, evaluate service and treat9 ment outcomes, and determine which ap10 proaches and activities are most effective. 

11 ‘‘(G) Evaluation strategies to demonstrate 

12 the effectiveness of treatment and identify the 

13 aspects of treatment that have the greatest im14 pact on families in different circumstances. 

15 ‘‘(H) Training and technical assistance to 

16 increase the capacity within the State to carry 

17 out 1 or more of the activities described in this 

18 paragraph or related activities that are designed 

19 to expand prevention and treatment services 

20 for, and staff training to assist families with al21 cohol and drug abuse problems who come to the 

22 attention of the child welfare system. 

23 ‘‘(7) A description of the jurisdictions in the 

24 State (including whether such jurisdictions are 

25 urban, suburban, or rural) where the joint activities 
794

•HR 936 IH 

1 will be provided, and the plans for expanding such 

2 activities to other parts of the State during the 5-

3 year funding cycle. 

4 ‘‘(8) A description of the methods to be used in 

5 measuring progress toward the goals identified 

6 under paragraph (5), including how the State agen7 cies will jointly measure their performance in accord8 ance with section 445, and how remaining barriers 

9 to meeting the needs of families with alcohol or drug 

10 abuse problems who come to the attention of the 

11 child welfare system will be assessed. 

12 ‘‘(9) A description of what input was obtained 

13 in the development of the plan and the joint applica14 tion from each of the following groups of individuals, 

15 and the manner in which each will continue to be in16 volved in the proposed joint activities: 

17 ‘‘(A) Staff who provide alcohol and drug 

18 abuse prevention and treatment and related 

19 services to families who come to the attention 

20 of the child welfare system. 

21 ‘‘(B) Advocates for children and parents 

22 who come to the attention of the child welfare 

23 and alcohol and drug abuse prevention and 

24 treatment systems. 
795

•HR 936 IH 

1 ‘‘(C) Consumers of both child welfare and 

2 alcohol and drug abuse prevention and treat3 ment services. 

4 ‘‘(D) Direct service staff and supervisors 

5 from public and private child welfare and alco6 hol and drug abuse prevention and treatment 

7 agencies. 

8 ‘‘(E) Judges and court staff. 

9 ‘‘(F) Representatives of the State agencies 

10 and private providers providing health, mental 

11 health, domestic violence, housing, education, 

12 and employment services. 

13 ‘‘(G) A representative of the State agency 

14 in charge of administering the temporary assist15 ance to needy families program funded under 

16 part A of this title. 

17 ‘‘(10) An assurance of the coordination, to the 

18 extent feasible and appropriate, of the activities 

19 funded under a grant made under this subpart with 

20 the services or benefits provided under other Federal 

21 or federally assisted programs that serve families 

22 with alcohol and drug abuse problems who come to 

23 the attention of the child welfare system, including 

24 health, mental health, domestic violence, housing, 

25 and employment programs, the temporary assistance 
796

•HR 936 IH 

1 to needy families program funded under part A of 

2 this title, other child welfare and alcohol and drug 

3 abuse prevention and treatment programs, and the 

4 courts. 

5 ‘‘(11) An assurance that not more than 10 per6 cent of expenditures under the plan for any fiscal 

7 year shall be for administrative costs. 

8 ‘‘(12) An assurance that alcohol and drug 

9 treatment services provided at least in part with 

10 funds provided under a grant made under this sub11 part shall be licensed, certified, or otherwise ap12 proved by the appropriate State alcohol and drug 

13 abuse agencies, or in the case of an Indian tribe, by 

14 a State alcohol and drug abuse agency, the Indian 

15 Health Service, or other designated licensing agency. 

16 ‘‘(13) An assurance that Federal funds pro17 vided to the State under a grant made under this 

18 subpart will not be used to supplant Federal or non19 Federal funds for services and activities provided as 

20 of the date of the submission of the plan that assist 

21 families with alcohol and drug abuse problems who 

22 come to the attention of the child welfare system. 

23 ‘‘(b) AMENDMENTS.—
797

•HR 936 IH 

1 ‘‘(1) IN GENERAL.—An eligible State or Indian 

2 tribe may amend, in whole or in part, its plan at any 

3 time through transmittal of a plan amendment. 

4 ‘‘(2) 60-DAY APPROVAL DEADLINE.—A plan 

5 amendment is considered approved unless the Sec6 retary notifies an eligible State or Indian tribe in 

7 writing, within 60 days after receipt of the amend8 ment, that the amendment is disapproved (and the 

9 reasons for disapproval) or that specified additional 

10 information is needed. 

11 ‘‘(c) REQUIREMENTS FOR APPLICATIONS BY INDIAN

12 TRIBES.—

13 ‘‘(1) IN GENERAL.—In order to be eligible for 

14 a grant made under this subpart, an Indian tribe 

15 shall—

16 ‘‘(A) submit a plan to the Secretary that 

17 describes—

18 ‘‘(i) the activities the tribe will under19 take with both child welfare and alcohol 

20 and drug agencies that serve the tribe’s 

21 children to address the needs of families 

22 who come to the attention of the child wel23 fare agencies and have alcohol and drug 

24 problems; and 
798

•HR 936 IH 

1 ‘‘(ii) whether and how such activities 

2 address any of the practice and policy 

3 areas in subsection (a)(6); and 

4 ‘‘(B) subject to paragraph (2), meet the 

5 other requirements of subsection (a) unless, 

6 with respect to a specific requirement of such 

7 subsection, the Secretary determines that it 

8 would be inappropriate to apply such require9 ment to an Indian tribe, taking into account the 

10 resources, needs, and other circumstances of 

11 the Indian tribe. 

12 ‘‘(2) ADMINISTRATIVE COSTS; USE OF FEDERAL

13 FUNDS.—Paragraphs (11) and (13) of subsection 

14 (a) shall not apply to a plan submitted by an Indian 

15 tribe. The indirect cost rate agreement in effect for 

16 an Indian tribe shall apply with respect to adminis17 trative costs under the tribe’s plan. 

18 ‘‘(3) AUTHORITY FOR INTERTRIBAL CONSOR19 TIUM.—The participating Indian tribes of an inter20 tribal consortium may develop and submit a single 

21 plan that meets the applicable requirements of sub22 section (a) (as so determined by the Secretary) and 

23 paragraph (1) of this subsection. 
799

•HR 936 IH 

1 ‘‘SEC. 443. APPROPRIATION OF FUNDS. 

2 ‘‘(a) APPROPRIATIONS.—For the purpose of pro3 viding allotments to eligible States and Indian tribes under 

4 this subpart and research and training under subsection 

5 (b)(3), there is appropriated out of any money in the 

6 Treasury not otherwise appropriated—

7 ‘‘(1) for fiscal year 2004, $200,000,000; 

8 ‘‘(2) for fiscal year 2005, $275,000,000; 

9 ‘‘(3) for fiscal year 2006, $375,000,000; 

10 ‘‘(4) for fiscal year 2007, $475,000,000; and 

11 ‘‘(5) for fiscal year 2008, $575,000,000.

12 ‘‘(b) RESERVATION OF FUNDS.—With respect to a 

13 fiscal year: 

14 ‘‘(1) TERRITORIES.—The Secretary shall re15 serve 2 percent of the amount appropriated under 

16 subsection (a) for such fiscal year for payments to 

17 Puerto Rico, Guam, the United States Virgin Is18 lands, American Samoa, and the Northern Mariana 

19 Islands. 

20 ‘‘(2) INDIAN TRIBES.—The Secretary shall re21 serve not less than 3 nor more than 5 percent of the 

22 amount appropriated under subsection (a) for such 

23 fiscal year for direct payments to Indian tribes and 

24 Indian tribal organizations for activities intended to 

25 increase the capacity of the Indian tribes and tribal 

26 organizations to expand treatment, services, and 
800

•HR 936 IH 

1 training to assist families with alcohol and drug 

2 abuse problems who come to the attention of the 

3 child welfare agencies. 

4 ‘‘(3) RESEARCH AND TRAINING.—

5 ‘‘(A) IN GENERAL.—Subject to subpara6 graph (B), the Secretary shall reserve 1 percent 

7 of the amount appropriated under subsection 

8 (a) for such fiscal year for practice-based re9 search on the effectiveness of various ap10 proaches for the screening, assessment, engage11 ment, treatment, retention, and monitoring of 

12 families with alcohol and drug abuse problems 

13 who come to the attention of the child welfare 

14 system, and for training of staff in such areas 

15 and shall ensure that a portion of such amount 

16 is used for research on the effectiveness of these 

17 approaches for Indian children and for the 

18 training of staff serving children from the In19 dian tribes. 

20 ‘‘(B) DETERMINATION OF USE OF

21 FUNDS.—Funds reserved under subparagraph 

22 (A) may only be used to carry out a research 

23 agenda that addresses the areas described in 

24 such subparagraph and that is established by 

25 the Secretary, together with the Assistant Sec-
801

•HR 936 IH 

1 retary for the Administration for Children and 

2 Families and the Administrator of Substance 

3 Abuse and Mental Health Services Administra4 tion, with input from public and private non5 profit providers, consumers, representatives of 

6 Indian tribes, and advocates, as well as others 

7 with expertise in research in such areas. 

8 ‘‘SEC. 444. PAYMENTS TO ELIGIBLE STATES AND INDIAN 

9 TRIBES. 

10 ‘‘(a) AMOUNT OF GRANT.—

11 ‘‘(1) ELIGIBLE STATES OTHER THAN TERRI12 TORIES.—

13 ‘‘(A) IN GENERAL.—From the amount ap14 propriated under subsection (a) of section 443 

15 for a fiscal year, after the reservation of funds 

16 required under subsection (b) of that section for 

17 the fiscal year and subject to subparagraphs 

18 (B) and (C), the Secretary shall pay to each eli19 gible State (after the Secretary has determined 

20 that the State has satisfied the matching re21 quirement under subsection (b)) an amount 

22 that bears the same ratio to such amount for 

23 such fiscal year as the number of children 

24 under the age of 18 that reside in the eligible 

25 State bears to the total number of children 
802

•HR 936 IH 

1 under the age of 18 who reside in all such eligi2 ble States for such fiscal year. 

3 ‘‘(B) MINIMUM ALLOTMENT.—In no case 

4 shall the amount of a payment to an eligible 

5 State for a fiscal year be less than an amount 

6 equal to 0.5 percent of the amount appropriated 

7 under subsection (a) of section 443 for the fis8 cal year, after the reservation of funds required 

9 under subsection (b) of that section. 

10 ‘‘(C) PRO RATA REDUCTIONS.—The Sec11 retary shall make pro rata reductions in the 

12 amounts of the allotments determined under 

13 subparagraph (A) for a fiscal year to the extent 

14 necessary to comply with subparagraph (B). 

15 ‘‘(2) TERRITORIES.—From the amounts re16 served under section 443(b)(1) for a fiscal year, the 

17 Secretary shall pay to each territory described in 

18 section 440(5)(B) with an approved plan that meets 

19 the requirements of section 442 (after the Secretary 

20 has determined that the territory has satisfied the 

21 matching requirement under subsection (b)) an 

22 amount that bears the same ratio to such amount 

23 for such fiscal year as the number of children under 

24 the age of 18 that reside in the territory bears to 
803

•HR 936 IH 

1 the total number of children under the age of 18 

2 who reside in all such territories for such fiscal year. 

3 ‘‘(3) INDIAN TRIBES OR TRIBAL ORGANIZA4 TIONS.—From the amount reserved under section 

5 443(b)(2) for a fiscal year, the Secretary shall pay 

6 to each Indian tribe with an approved plan that 

7 meets the requirements of section 442(c) (after the 

8 Secretary has determined that the Indian tribe has 

9 satisfied the matching requirement under subsection 

10 (b)) an amount that bears the same ratio to such re11 served amount for such fiscal year as the number of 

12 children under the age of 18 in the Indian tribe 

13 bears to the total number of children under the age 

14 of 18 in all Indian tribes with plans so approved for 

15 such fiscal year, as determined by the Secretary on 

16 the basis of the most current and reliable informa17 tion available to the Secretary. For purposes of mak18 ing the allocations required under the preceding sen19 tence, an Indian tribe may submit data and other in20 formation that it has on the number of Indian chil21 dren under the age of 18 for consideration by the 

22 Secretary. 

23 ‘‘(b) MATCHING REQUIREMENT.—

24 ‘‘(1) IN GENERAL.—In order to receive a grant 

25 under this subpart for a fiscal year, an eligible State 
804

•HR 936 IH 

1 or Indian tribe shall provide through non-Federal 

2 contributions the applicable percentage determined 

3 under paragraph (2) for such fiscal year of the costs 

4 of conducting activities funded in whole or in part 

5 with funds provided under the grant. Such contribu6 tions shall be paid jointly by the State agencies, in 

7 the case of an eligible State, or by an Indian tribe. 

8 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

9 of paragraph (1), the applicable percentage for an 

10 eligible State or Indian tribe for a fiscal year is—

11 ‘‘(A) 15 percent, in the case of fiscal years 

12 2004 and 2005; 

13 ‘‘(B) 20 percent, in the case of fiscal years 

14 2006 and 2007; and 

15 ‘‘(C) 25 percent, in the case of fiscal year 

16 2008. 

17 ‘‘(3) SOURCE OF MATCH.—

18 ‘‘(A) ELIGIBLE STATES.—The non-Federal 

19 contributions required of an eligible State under 

20 this subsection may be in cash or in kind, fairly 

21 evaluated, including plant, equipment, or serv22 ices. The contributions may be made directly or 

23 through donations from public or private enti24 ties. Amounts provided by the Federal Govern25 ment, or services assisted or subsidized to any 
805

•HR 936 IH 

1 significant extent by the Federal Government 

2 may not be included in determining whether an 

3 eligible State has provided the applicable per4 centage of such contributions for a fiscal year. 

5 ‘‘(B) INDIAN TRIBES.—With respect to an 

6 Indian tribe, such contributions may be made in 

7 cash, through donated funds, through non-pub8 lic third party in kind contributions, or from 

9 Federal funds received under any of the fol10 lowing provisions of law: 

11 ‘‘(i) The Indian Child Welfare Act of 

12 1978 (25 U.S.C. 1901 et seq.). 

13 ‘‘(ii) The Indian Self-Determination 

14 and Education Assistance Act (25 U.S.C. 

15 450b et seq.). 

16 ‘‘(iii) Title I of the Housing and Com17 munity Development Act of 1974 (42 

18 U.S.C. 5301 et seq.). 

19 ‘‘(4) WAIVER.—

20 ‘‘(A) ELIGIBLE STATES.—In the case of an 

21 eligible State, the Secretary, after consultation 

22 with the Assistant Secretary for the Adminis23 tration for Children and Families and the Ad24 ministrator of the Substance Abuse and Mental 

25 Health Services Administration, may modify the 
806

•HR 936 IH 

1 applicable percentage determined under para2 graph (2) for matching funds if the Secretary 

3 determines that economic conditions in the eli4 gible State justify making such modification. 

5 ‘‘(B) INDIAN TRIBES.—In the case of an 

6 Indian tribe, the Secretary may modify the ap7 plicable percentage determined under such 

8 paragraph if the Secretary determines that it 

9 would be inappropriate to apply to the Indian 

10 tribe, taking into the resources and needs of the 

11 tribe and the amount of funds the tribe would 

12 receive under a grant made under this section. 

13 ‘‘(c) USE OF FUNDS.—Funds provided under a grant 

14 made under this subpart may only be used to carry out 

15 activities specified in the plan, as approved by the Sec16 retary. 

17 ‘‘(d) DEADLINE FOR REQUEST FOR PAYMENT.—An 

18 eligible State or Indian tribe shall apply to be paid funds 

19 under a grant made under this subpart not later than the 

20 beginning of the fourth quarter of a fiscal year or such 

21 funds shall be reallotted under subsection (f). 

22 ‘‘(e) CARRYOVER OF FUNDS.—Funds paid to an eli23 gible State or Indian tribe under a grant made under this 

24 subpart for a fiscal year may be expended in that fiscal 

25 year or the succeeding fiscal year. 
807

•HR 936 IH 

1 ‘‘(f) REALLOTMENT OF FUNDS.—

2 ‘‘(1) ELIGIBLE STATES.—In the case of an eli3 gible State that does not apply for funds allotted to 

4 the eligible State under a grant made under this 

5 subpart for a fiscal year within the time provided 

6 under subsection (d), or that does not expend such 

7 funds during the time provided under subsection (e), 

8 the funds which the eligible State would have been 

9 entitled to for such fiscal year shall be reallotted to 

10 1 or more other eligible States on the basis of each 

11 such State’s relative need for additional payments, 

12 as determined by the Secretary, after consultation 

13 with the Assistant Secretary for the Administration 

14 for Children and Families and the Administrator of 

15 the Substance Abuse and Mental Health Services 

16 Administration. 

17 ‘‘(2) INDIAN TRIBES.—In the case of an Indian 

18 tribe that does not expend funds allotted to the tribe 

19 during the time provided under subsection (e), the 

20 funds to which the Indian tribe would have been en21 titled to for such fiscal year shall be reallotted to the 

22 remaining Indian tribes that are implementing ap23 proved plans in amounts that are proportional to the 

24 percentage of Indian children under the age of 18 in 

25 each such tribe. 
808

•HR 936 IH 

1 ‘‘SEC. 445. PERFORMANCE ACCOUNTABILITY; REPORTS 

2 AND EVALUATIONS. 

3 ‘‘(a) PERFORMANCE MEASUREMENT.—

4 ‘‘(1) ESTABLISHMENT OF INDICATORS.—The 

5 Secretary, in consultation with the Assistant Sec6 retary for the Administration for Children and Fam7 ilies, the Administrator of the Substance Abuse and 

8 Mental Health Services Administration, Chief Exec9 utive Officers of a State or Territory, State legisla10 tors, State and local public officials responsible for 

11 administering child welfare and alcohol and drug 

12 abuse prevention and treatment programs, court 

13 staff, consumers of the services, and advocates for 

14 children and parents who come to the attention of 

15 the child welfare system, shall, within 12 months of 

16 the date of enactment of the Child Protection/Alco17 hol and Drug Partnership Act, establish indicators 

18 that will be used to assess periodically the perform19 ance of eligible States and Indian tribes in using 

20 grant funds provided under this subpart to promote 

21 child safety, permanence, and well-being and recov22 ery in families who come to the attention of the child 

23 welfare system. 

24 ‘‘(2) COORDINATION.—The indicators estab25 lished under paragraph (1) shall be based on and co26 ordinated with the performance outcomes established 
809

•HR 936 IH 

1 for the child welfare system pursuant to section 

2 203(b) of the Adoption and Safe Families Act of 

3 1997 and the performance measures developed 

4 under subpart II of part B of title XIX of the Public 

5 Health Service Act (relating to the substance abuse 

6 prevention and treatment block grant). 

7 ‘‘(3) PURPOSE.—The indicators will be used to 

8 measure periodically the progress made by the State 

9 agencies and by child welfare and alcohol and drug 

10 abuse prevention and treatment agencies serving 

11 children in Indian tribes in the activities that such 

12 agencies jointly engage in with such grant funds. An 

13 eligible State or Indian tribe will be measured 

14 against itself, assessing progress over time against a 

15 baseline established at the time the grant activities 

16 were undertaken. 

17 ‘‘(4) ILLUSTRATIVE EXAMPLES.—The indica18 tors developed should address the range of activities 

19 that eligible States and Indian tribes have the option 

20 of engaging in with such grant funds. Examples of 

21 the types of progress to be measured in the different 

22 areas of activity include the following: 

23 ‘‘(A) Improving the screening and assess24 ment of families who come to the attention of 

25 the child welfare system with alcohol and drug 
810

•HR 936 IH 

1 problems, so such families can be promptly re2 ferred for appropriate treatment when nec3 essary. 

4 ‘‘(B) Increasing the availability of com5 prehensive and timely individualized treatment 

6 for families with alcohol and drug problems who 

7 come to the attention of the child welfare sys8 tem. 

9 ‘‘(C) Increasing the number or proportion 

10 of families who, when they come to the atten11 tion of the child welfare system with alcohol 

12 and drug problems, promptly enter appropriate 

13 treatment. 

14 ‘‘(D) Increasing the engagement and re15 tention in treatment of families with alcohol 

16 and drug problems who come to the attention 

17 of the child welfare system. 

18 ‘‘(E) Decreasing the number of children 

19 who re-enter foster care after being returned to 

20 families who had alcohol or drug problems when 

21 the children entered foster care. 

22 ‘‘(F) Increasing the number or proportion 

23 of staff in both the public child welfare and al24 cohol and drug abuse prevention and treatment 

25 agencies who have received training on the 
811

•HR 936 IH 

1 needs of families that come to the attention of 

2 the child welfare and alcohol and drug abuse 

3 prevention and treatment systems for help, and 

4 the help that can be provided to such families. 

5 ‘‘(G) Increasing the proportion of parents 

6 who complete treatment for alcohol or drug 

7 abuse and show improvement in their pre-em8 ployment or employment status. 

9 ‘‘(5) DETERMINATION OF PROGRESS.—

10 ‘‘(A) INITIAL REPORT.—Not later than the 

11 end of the first fiscal year in which funds are 

12 received under a grant made under this sub13 part, the State agencies in each eligible State 

14 that receives such funds, and the Indian tribes 

15 that receive such funds, shall submit to the Sec16 retary a report on the activities carried out dur17 ing the fiscal year with such funds. The report 

18 shall contain such information as the Secretary 

19 determines is necessary to provide an accurate 

20 description of the activities conducted with such 

21 funds and of any changes in the use of such 

22 funds that are planned for the succeeding fiscal 

23 year. 

24 ‘‘(B) USE OF INDICATORS.—As soon as 

25 possible after the establishment of indicators 
812

•HR 936 IH 

1 under paragraph (1), the State agencies and In2 dian tribes shall conduct evaluations, directly or 

3 under contract, of their progress with respect to 

4 such indicators that are directly related to ac5 tivities the eligible State or Indian tribe is en6 gaging in with such grant funds and include in7 formation on the evaluation in the reports to 

8 the Secretary required under subparagraphs 

9 (C) and (D). After the third year in which such 

10 activities are conducted, an eligible State or In11 dian tribe shall include in the evaluation at 

12 least some indicators that address improve13 ments in treatment for families with alcohol 

14 and drug problems who come to the attention 

15 of the child welfare system. 

16 ‘‘(C) SUBSEQUENT REPORTS.—After the 

17 initial report is submitted under subparagraph 

18 (A), an eligible State or Indian tribe shall sub19 mit to the Secretary, not later than June 30 of 

20 each fiscal year thereafter in which the State or 

21 tribe carries out activities with grant funds pro22 vided under this subpart, a report on the appli23 cation of the indicators established under para24 graph (1) to such activities. The reports shall 

25 include an explanation regarding why the spe-
813

•HR 936 IH 

1 cific indicators used were chosen, how such in2 dicators are expected to impact a child’s safety, 

3 permanence, well-being, and parental recovery, 

4 and the results (as of the date of submission of 

5 the report) of the evaluation conducted under 

6 subparagraph (B). 

7 ‘‘(D) FINAL REPORT.—Not later than Sep8 tember 30, 2008, each eligible State and Indian 

9 tribe with an approved plan under this part 

10 shall submit a final report on the evaluations 

11 conducted under subparagraph (B) and the 

12 progress made in achieving the goals specified 

13 in the plan of the State or Indian tribe. 

14 ‘‘(E) FAILURE TO REPORT.—

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

16 (ii), an eligible State or Indian tribe that 

17 fails to submit the reports required under 

18 this paragraph or to conduct the evalua19 tion required under subparagraph (B) shall 

20 not be eligible to receive grant funds pro21 vided under this subpart for the fiscal year 

22 following the fiscal year in which such 

23 State or Indian tribe failed to submit such 

24 report or conduct such evaluation. 
814

•HR 936 IH 

1 ‘‘(ii) CORRECTIVE ACTION.—An eligi2 ble State or Indian tribe to which clause 

3 (i) applies may, notwithstanding such 

4 clause, receive grant funds under this sub5 part for a succeeding fiscal year if prior to 

6 September 30 of the fiscal year in which 

7 such failure occurred, the State agencies of 

8 the eligible State, or the Indian tribe, sub9 mit to the Secretary a plan to monitor and 

10 evaluate in a timely manner the activities 

11 conducted with such funds, and such plan 

12 is approved in a timely manner by the Sec13 retary, after consultation with the Admin14 istration for Children and Families and the 

15 Substance Abuse and Mental Health Serv16 ices Administration. 

17 ‘‘(b) SECRETARIAL REPORTS AND EVALUATIONS.—

18 ‘‘(1) ANNUAL REPORTS.—On the basis of re19 ports submitted under subsection (a), the Secretary, 

20 in consultation with the Assistant Secretary for the 

21 Administration for Children and Families and the 

22 Administrator of the Substance Abuse and Mental 

23 Health Services Administration, shall report annu24 ally, beginning on October 1, 2005, to the Com25 mittee on Ways and Means of the House of Rep-
815

•HR 936 IH 

1 resentatives and the Committee on Finance of the 

2 Senate on the joint activities conducted with funds 

3 provided under grants made under this subpart, the 

4 indicators that have been established, and the 

5 progress that has been made in addressing the needs 

6 of families with alcohol and drug abuse problems 

7 who come to the attention of the child welfare sys8 tem and in achieving the goals of child safety, per9 manence, and family stability. 

10 ‘‘(2) EVALUATIONS.—Not later than 6 months 

11 after the end of each 5-year funding cycle under this 

12 subpart, the Secretary shall submit a report to the 

13 committees described in paragraph (1) that summa14 rizes the results of the evaluations conducted by eli15 gible States and Indian tribes under subsection 

16 (a)(5)(B), as reported by such States and Indian 

17 tribes in accordance with subparagraphs (C) and 

18 (D) of subsection (a)(5). The Secretary shall include 

19 in the report required under this paragraph rec20 ommendations for further legislative or administra21 tive actions that are designed to assist children and 

22 families with alcohol and drug abuse problems who 

23 come to the attention of the child welfare system.’’. 
816

•HR 936 IH 

1 Subtitle D—Permanency Grants 

2 SEC. 8301. ESTABLISHMENT OF PERMANENCY GRANTS 

3 PROGRAM. 

4 Part E of title IV of the Social Security Act (42 

5 U.S.C. 670 et seq.), as amended by section 8011(b), is 

6 amended by adding at the end the following: 

7 ‘‘SEC. 479C. PERMANENCY GRANTS. 

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

9 ‘‘(1) QUALIFIED STATE AGENCY.—The term 

10 ‘qualified State agency’ means, with respect to a 

11 State, the State agency—

12 ‘‘(A) with responsibility for administering 

13 the program authorized by subpart 1 of part B 

14 and the program authorized under this part; 

15 and 

16 ‘‘(B) that submits an application in ac17 cordance with the requirements of subsection 

18 (c). 

19 ‘‘(2) WAITING CHILDREN.—The term ‘waiting 

20 children’ means the children described in subsection 

21 (b)(2). 

22 ‘‘(b) AUTHORITY TO AWARD GRANTS.—The Sec23 retary shall award a one-time grant to each qualified State 

24 agency for the purposes of—
817

•HR 936 IH 

1 ‘‘(1) promoting the permanency goals of the 

2 Adoption and Safe Families Act of 1997; and 

3 ‘‘(2) enabling the agency to reduce existing 

4 backlogs of children with permanent placement plans 

5 pursuant to that Act who, as of the date of enact6 ment of that Act, were waiting to be placed in per7 manent homes, through return to their families, 

8 placement in adoptive homes, or placement with a 

9 legal guardian or a fit or willing relative. 

10 ‘‘(c) APPLICATION.—A State agency desiring a grant 

11 under this section shall submit an application for a grant, 

12 in such form and manner as the Secretary shall require, 

13 that contains a description of the following: 

14 ‘‘(1) The barriers to achieving the permanency 

15 goals established in the Adoption and Safe Families 

16 Act of 1997. 

17 ‘‘(2) The results of the review of the perma18 nency plans for children in foster care on November 

19 19, 1997 (the date of enactment of that Act), in20 cluding—

21 ‘‘(A) the number of children who have per22 manency plans; 

23 ‘‘(B) a description of the permanency goals 

24 for such children; 

25 ‘‘(C) the age of such children; 
818

•HR 936 IH 

1 ‘‘(D) the current placements and special 

2 needs of such children; and 

3 ‘‘(E) the number of such children who 

4 have and the number of such children who have 

5 not yet been placed in accordance with those 

6 plans. 

7 ‘‘(3) The activities the agency proposes, includ8 ing a specific plan and timetable, to—

9 ‘‘(A) move the waiting children to perma10 nent homes; and

11 ‘‘(B) reduce the backlog of waiting chil12 dren. 

13 ‘‘(4) How the grant funds will be used 

14 to help secure permanent homes for wait15 ing children. 

16 ‘‘(5) Subject to subsection (e), the in17 formation described in that subsection. 

18 ‘‘(c) USE OF FUNDS.—Funds provided under a grant 

19 made under this section may be used for any purpose that 

20 the Secretary determines will assist the State agency to 

21 secure permanent homes for waiting children. 

22 ‘‘(d) AVAILABILITY OF FUNDS.—Funds awarded 

23 under a grant made under this section shall remain avail24 able for expenditure by a qualified State agency through 

25 the end of the second succeeding fiscal year. 
819

•HR 936 IH 

1 ‘‘(e) COORDINATION WITH GRANTS TO COURTS TO

2 REDUCE BACKLOGS.—If a qualified State agency receiv3 ing a grant under this section is in a State where the State 

4 or local courts are recipients of grants pursuant to the 

5 Strengthening Abuse and Neglect Courts Act of 2000 to 

6 reduce pending backlogs of abuse and neglect cases and 

7 promote permanency, the application submitted under 

8 subsection (b) shall include a description of how the pro9 posed backlog reduction activities undertaken with funds 

10 provided under a grant under this section will be coordi11 nated with the activities undertaken by the State or local 

12 courts with funds provided under that Act. 

13 ‘‘(f) PRIORITY OF AWARDS.—In awarding grants 

14 under this section, the Secretary shall give priority to 

15 qualified State agencies that can demonstrate that they 

16 already have taken steps to move waiting children to per17 manent homes. 

18 ‘‘(g) REPORT.—Not later than 60 days after the end 

19 of each fiscal year for which a qualified State agency ex20 pends funds under a grant made under this section, and 

21 90 days after the date of the final expenditure of such 

22 funds, the agency shall submit a report to the Secretary 

23 that includes any information that the Secretary deter24 mines would assist other jurisdictions in achieving the per-
820

•HR 936 IH 

1 manency goals of the Adoption and Safe Families Act of 

2 1997, including the following: 

3 ‘‘(1) The barriers to permanence that are being 

4 or were addressed with grant funds. 

5 ‘‘(2) The most effective strategies used to re6 duce the backlog of waiting children. 

7 ‘‘(3) The activities funded under the grant that 

8 helped to reduce such backlog. 

9 ‘‘(4) The numbers of waiting children who were 

10 moved to permanent homes, including the ages of 

11 such children, any special needs of such children, 

12 and a description of the children’s placements. 

13 ‘‘(5) The efforts being made to ensure that the 

14 placements continue to be permanent. 

15 ‘‘(6) The number of waiting children who re16 main in care without permanent families. 

17 ‘‘(h) FUNDING.—There is appropriated, out of any 

18 money in the Treasury not otherwise appropriated, 

19 $200,000,000 for each of fiscal years 2004 and 2005 for 

20 the purpose of making grants under this section.’’. 

21 Subtitle E—Addressing the Needs 

22 of Children Exposed to Domes23 tic Violence 

24 SEC. 8401. FINDINGS. 

25 Congress makes the following findings: 
821

•HR 936 IH 

1 (1) Domestic violence and sexual assault occur 

2 frequently in the United States. 1,500,000 women 

3 are raped or physically assaulted by an intimate 

4 partner annually in the United States, and 1 in 4 

5 women in the United States will experience domestic 

6 violence or sexual assault in her lifetime. 

7 (2) At least 3,300,000 children in the United 

8 States are exposed to parental violence every year. 

9 (3) Child abuse and domestic violence often 

10 occur within the same families. Because of this over11 lap, cross-training for child welfare workers, courts, 

12 law enforcement, prosecutors, and domestic violence 

13 and sexual assault victim service providers is essen14 tial. 

15 (4) Forty to 60 percent of men who abuse 

16 women also abuse children. 

17 (5) In 43 percent of households where intimate 

18 violence occurs, at least 1 child under the age of 12 

19 lives in the home. Domestic violence has been shown 

20 to occur disproportionately in homes with children 

21 under age 5. 

22 (6) In most States, more than 50 percent of the 

23 residents in battered women’s shelters are children. 
822

•HR 936 IH 

1 (7) As many as 500,000 children may be en2 countered by police during domestic violence arrests 

3 each year. 

4 (8) Children who live in homes where domestic 

5 violence occurs are at a higher risk of anxiety and 

6 depression, and exhibit more aggressive, antisocial, 

7 inhibited, and fearful behaviors than other children. 

8 (9) Children’s experiences vary widely as the re9 sult of their exposure to domestic violence depending 

10 on their family situations, community environment, 

11 and the child’s own personality. Children need com12 prehensive services that serve the continuum of their 

13 individual needs. 

14 (10) Adolescents who have grown up in violent 

15 homes are at risk for recreating the abusive relation16 ships they have observed. Forty percent of violent 

17 juvenile offenders come from homes where there is 

18 domestic violence, and 50 percent of children who 

19 come before delinquency court have been exposed to 

20 violence in the home. 

21 (11) Men who as children witnessed their par22 ent’s domestic violence are twice as likely to abuse 

23 their own wives as are sons of nonviolent parents. 

24 One-third of women who are physically abused by a 
823

•HR 936 IH 

1 husband or boyfriend grew up in a household where 

2 their mother was also abused. 

3 (12) The most successful strategies for dealing 

4 with the overlap between domestic violence and child 

5 abuse are those that provide for the safety of both 

6 the children and the nonabusing parent. 

7 (13) Recent studies show that battered women 

8 parent effectively and attend to their children’s 

9 needs. 

10 (14) In a major metropolitan area, 80 percent 

11 of surveyed battered women with children reported 

12 that they and their children were safe and together 

13 as a family after receiving domestic violence advo14 cacy services. In contrast, the rate of substantiated 

15 cases of sexual abuse in foster care is more than 4 

16 times higher than the rate in the general population. 

17 SEC. 8402. PURPOSE. 

18 The purpose of this subtitle is to—

19 (1) reduce the impact of domestic violence, sex20 ual assault, and stalking in the lives of youth and 

21 children; 

22 (2) provide appropriate services for children 

23 and youth experiencing or exposed to domestic vio24 lence, sexual assault, and stalking; 
824

•HR 936 IH 

1 (3) develop and implement education programs 

2 to prevent children and youth from becoming victims 

3 or perpetrators of domestic violence, sexual assault, 

4 or stalking; 

5 (4) encourage cross training and collaboration 

6 among child welfare agencies, domestic violence and 

7 sexual assault service providers, courts, law enforce8 ment entities, health care professionals, crisis nurs9 eries, and other social services to recognize and re10 sponsibly address domestic violence and sexual as11 sault and the effects of domestic violence on children 

12 and youth; 

13 (5) promote the safety of children and youth by 

14 increasing the safety, autonomy, capacity, and finan15 cial security of the nonabusing parents who are also 

16 victims of domestic violence and sexual assault so 

17 that they may remain safely together, thereby pre18 venting the unnecessary and harmful removal of the 

19 child or youth from the nonabusing parent; and 

20 (6) ensure the effective handling of cases where 

21 domestic violence or sexual assault and child abuse 

22 and neglect intersect in such a way that—

23 (A) holds the adult perpetrator of violence 

24 accountable;
825

•HR 936 IH 

1 (B) assures the safety and well-being of 

2 both the child and the child’s nonabusing par3 ent; and 

4 (C) prevents the unnecessary and harmful 

5 removal of the child from the nonabusing par6 ent thereby increasing the child’s chance to 

7 heal. 

8 SEC. 8403. AMENDMENTS TO ACTS ADDRESSING THE 

9 NEEDS OF CHILDREN EXPOSED TO DOMES10 TIC VIOLENCE. 

11 (a) DEFINITIONS.—Section 309 of the Family Vio12 lence Prevention and Services Act (42 U.S.C. 10408) is 

13 amended by adding at the end the following: 

14 ‘‘(7) The term ‘dating violence’ means violence 

15 committed by a person—

16 ‘‘(A) who is or has been in a social rela17 tionship of a romantic or intimate nature with 

18 the victim; and 

19 ‘‘(B) where the existence of such a rela20 tionship shall be determined based on a consid21 eration of—

22 ‘‘(i) the length of the relationship; 

23 ‘‘(ii) the type of relationship; and 
826

•HR 936 IH 

1 ‘‘(iii) the frequency of interaction be2 tween the persons involved in the relation3 ship. 

4 ‘‘(8) The term ‘domestic violence’ includes acts 

5 or threats of violence, not including acts of self-de6 fense, committed by a current or former spouse of 

7 the victim, by a person with whom the victim shares 

8 a child in common, by a person who is cohabiting 

9 with or has cohabited with the victim, by a person 

10 who is or has been in a continuing social relationship 

11 of a romantic or intimate nature with the victim, by 

12 a person similarly situated to a spouse of the victim 

13 under the domestic or family violence laws of the ju14 risdiction, or by any other person against a victim 

15 who is protected from that person’s acts under the 

16 domestic or family violence laws of the jurisdiction. 

17 ‘‘(9) The term ‘sexual assault’ means any con18 duct proscribed by chapter 109A of title 18, United 

19 States Code, whether or not the conduct occurs in 

20 the special maritime and territorial jurisdiction of 

21 the United States or in a Federal prison and in22 cludes both assaults committed by offenders who are 

23 strangers to the victim and assaults committed by 

24 offenders who are known to the victim or related by 

25 blood or marriage to the victim. 
827

•HR 936 IH 

1 ‘‘(10) The term ‘stalking’ means engaging in a 

2 course of conduct directed at a specific person that 

3 would cause a reasonable person to fear death, sex4 ual assault, or bodily injury to such person or a 

5 member of such person’s immediate family, when the 

6 person engaging in such conduct has knowledge or 

7 should have knowledge that the specific person will 

8 be placed in reasonable fear of death, sexual assault, 

9 or bodily injury to such person or a member of such 

10 person’s immediate family and when the conduct in11 duces fear in the specific person of death, sexual as12 sault, or bodily injury to such person or a member 

13 of such person’s immediate family.’’. 

14 (b) SERVICES FOR CHILDREN EXPOSED TO DOMES15 TIC VIOLENCE.—The Family Violence Prevention and 

16 Services Act (42 U.S.C. 10401 et seq.) is amended by add17 ing at the end the following: 

18 ‘‘SEC. 320. SERVICES FOR CHILDREN EXPOSED TO DOMES19 TIC VIOLENCE. 

20 ‘‘(a) GRANTS AUTHORIZED.—The Secretary, acting 

21 through the Director of Community Services of the Ad22 ministration for Children and Families, may award com23 petitive grants to eligible entities to enable such entities 

24 to conduct programs to serve children who have been ex25 posed to domestic violence. 
828

•HR 936 IH 

1 ‘‘(b) ELIGIBLE GRANTEES.—To be eligible to receive 

2 a grant under this section, an entity shall—

3 ‘‘(1) meet the requirements of section 

4 303(a)(2)(A) or section 303(b)(1); and 

5 ‘‘(2) have in place, and describe in its applica6 tion, policies and procedures that—

7 ‘‘(A) enhance or ensure the safety and se8 curity of a battered parent or caregiver, and as 

9 a result, the child of the parent; and 

10 ‘‘(B) ensure that all services are provided 

11 in a developmentally appropriate and culturally 

12 competent manner. 

13 ‘‘(c) USE OF FUNDS.—

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

15 grant under this section shall use amounts provided 

16 under the grant to design or replicate, and imple17 ment, programs and services using domestic violence 

18 intervention models to respond to the needs of chil19 dren who are exposed to domestic violence and 

20 whose parent or caregiver is a victim of domestic vi21 olence and who is receiving services from such enti22 ty. Such a program—

23 ‘‘(A) shall be a new program or service, or 

24 new component of an existing program or serv25 ice not currently offered by the entity; 
829

•HR 936 IH 

1 ‘‘(B) shall provide direct counseling and 

2 advocacy for children who have been exposed to 

3 domestic violence; 

4 ‘‘(C) may include early childhood and men5 tal health services; 

6 ‘‘(D) may assist in legal advocacy efforts 

7 on behalf of children with respect to issues re8 lated directly to services the children are receiv9 ing from the program; 

10 ‘‘(E) may include respite care, supervised 

11 visitation, and specialized services for children; 

12 and 

13 ‘‘(F) may use not more than 25 percent of 

14 the grant funds to contract with others to pro15 vide additional services and resources for chil16 dren including child care, transportation, edu17 cational support, respite care, supervised visita18 tion, and access to specialized services for chil19 dren. 

20 ‘‘(2) CONFIDENTIALITY.—Programs developed 

21 and implemented under paragraph (1) shall ensure 

22 the safety and confidentiality of child and adult vic23 tims in a manner that is consistent with applicable 

24 Federal and State laws.
830

•HR 936 IH 

1 ‘‘(d) APPLICATION.—To be eligible to receive a grant 

2 under subsection (a), an entity shall prepare and submit 

3 to the Secretary an application at such time, in such man4 ner, and containing such information as the Secretary may 

5 require. 

6 ‘‘(e) TERM AND AMOUNT.—

7 ‘‘(1) TERM.—The Secretary shall make the 

8 grants under this section for a period of not more 

9 than 3 fiscal years. 

10 ‘‘(2) AMOUNT.—Each grant awarded under this 

11 section shall be in an amount of not less than 

12 $50,000 per year and not more than $300,000 per 

13 year. 

14 ‘‘(f) EVALUATION, MONITORING, ADMINISTRATION, 

15 AND TECHNICAL ASSISTANCE.—Of the amount appro16 priated under subsection (j) for each fiscal year, not more 

17 than 4 percent shall be used by the Secretary for evalua18 tion, monitoring, administrative, and technical assistance 

19 costs under this section. 

20 ‘‘(g) EQUITABLE DISTRIBUTION.—In awarding 

21 grants under subsection (a), the Secretary shall ensure an 

22 equitable geographic distribution to State, local, and tribal 

23 programs working in throughout the United States in 

24 rural, urban, and suburban areas. 
831

•HR 936 IH 

1 ‘‘(h) UNDERSERVED POPULATIONS.—In awarding 

2 grants under subsection (a), the Secretary shall—

3 ‘‘(1) consider the needs of underserved popu4 lations as defined by section 2007(7) of part T of 

5 title I of the Omnibus Crime Control and Safe 

6 Streets Act of 1968; and 

7 ‘‘(2) from the amounts made available under 

8 subsection (j), award not less than 10 percent of 

9 such amounts for the funding of tribal programs as 

10 defined in section 303(b)(1). 

11 ‘‘(i) ANNUAL REPORTS.—An entity receiving a grant 

12 under this section shall annually submit to the Secretary 

13 a report that describes, at a minimum—

14 ‘‘(1) how the funds under the grant were used; 

15 ‘‘(2) the extent to which underserved popu16 lations were reached; 

17 ‘‘(3) the adequacy of staff training and agency 

18 services to ensure that children’s needs are ad19 dressed properly; 

20 ‘‘(4) the adequacy of the physical arrangements 

21 for meeting children’s needs; and 

22 ‘‘(5) the existence of continuing barriers the en23 tity faces to more fully addressing children’s needs. 

24 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—
832

•HR 936 IH 

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

2 appropriated to carry out this section, $15,000,000 

3 for each of fiscal years 2004 through 2008. 

4 ‘‘(2) AVAILABILITY.—Funds appropriated 

5 under paragraph (1) shall remain available until ex6 pended.’’. 

7 (c) GRANTS TO COMBAT THE IMPACT OF EXPERI8 ENCING OR WITNESSING DOMESTIC VIOLENCE ON ELE9 MENTARY AND SECONDARY SCHOOL CHILDREN.—Sub10 part 2 of part A of title IV of the Elementary and Sec11 ondary Act of 1965 (20 U.S.C. 7131 et seq.) is amended 

12 by adding at the end the following: 

13 ‘‘SEC. 4131. GRANTS TO COMBAT THE IMPACT OF EXPERI14 ENCING OR WITNESSING DOMESTIC VIO15 LENCE ON ELEMENTARY AND SECONDARY 

16 SCHOOL CHILDREN. 

17 ‘‘(a) GRANTS AUTHORIZED.—

18 ‘‘(1) AUTHORITY.—The Secretary is authorized 

19 to award grants and contracts to elementary schools 

20 and secondary schools that work with experts to en21 able the elementary schools and secondary schools—

22 ‘‘(A) to provide training to school adminis23 trators, faculty, and staff, with respect to issues 

24 concerning children experiencing domestic vio25 lence in dating relationships and witnessing do-
833

•HR 936 IH 

1 mestic violence, and the impact of the violence 

2 described in this subparagraph on children; 

3 ‘‘(B) to provide educational programming 

4 to students regarding domestic violence and the 

5 impact of experiencing or witnessing domestic 

6 violence on children; 

7 ‘‘(C) to provide support services for stu8 dents and school personnel for the purpose of 

9 developing and strengthening effective preven10 tion and intervention strategies with respect to 

11 issues concerning children experiencing domes12 tic violence in dating relationships and wit13 nessing domestic violence, and the impact of the 

14 violence described in this subparagraph on chil15 dren; and 

16 ‘‘(D) to develop and implement school sys17 tem policies regarding appropriate, safe re18 sponses identification and referral procedures 

19 for students who are experiencing or witnessing 

20 domestic violence. 

21 ‘‘(2) AWARD BASIS.—The Secretary shall award 

22 grants and contracts under this section—

23 ‘‘(A) on a competitive basis; and 

24 ‘‘(B) in a manner that ensures that such 

25 grants and contracts are equitably distributed 
834

•HR 936 IH 

1 throughout a State among elementary schools 

2 and secondary schools located in rural, urban, 

3 and suburban areas in the State. 

4 ‘‘(3) POLICY DISSEMINATION.—The Secretary 

5 shall disseminate to elementary schools and sec6 ondary schools any Department of Education policy 

7 guidance regarding the prevention of domestic vio8 lence and the impact of experiencing or witnessing 

9 domestic violence on children. 

10 ‘‘(b) USES OF FUNDS.—Funds provided under this 

11 section may be used for the following purposes: 

12 ‘‘(1) To provide training for elementary school 

13 and secondary school administrators, faculty, and 

14 staff that addresses issues concerning elementary 

15 school and secondary school students who experience 

16 domestic violence in dating relationships or witness 

17 domestic violence, and the impact of such violence on 

18 the students. 

19 ‘‘(2) To provide education programs for elemen20 tary school and secondary school students that are 

21 developmentally appropriate for the students’ grade 

22 levels and are designed to meet any unique cultural

23 and language needs of the particular student popu24 lations. 
835

•HR 936 IH 

1 ‘‘(3) To develop and implement elementary 

2 school and secondary school system policies regard3 ing appropriate, safe responses identification and re4 ferral procedures for students who are experiencing 

5 or witnessing domestic violence. 

6 ‘‘(4) To provide the necessary human resources 

7 to respond to the needs of elementary school and 

8 secondary school students and personnel who are 

9 faced with the issue of domestic violence, such as a 

10 resource person who is either on-site or on-call, and 

11 who is an expert. 

12 ‘‘(5) To provide media center materials and 

13 educational materials to elementary schools and sec14 ondary schools that address issues concerning chil15 dren who experience domestic violence in dating rela16 tionships and witness domestic violence, and the im17 pact of the violence described in this paragraph on 

18 the children. 

19 ‘‘(6) To conduct evaluations to assess the im20 pact of programs and policies assisted under this 

21 section in order to enhance the development of the 

22 programs. 

23 ‘‘(c) CONFIDENTIALITY.—Policies, programs, train24 ing materials, and evaluations developed and implemented 

25 under subsection (b) shall address issues of safety and 
836

•HR 936 IH 

1 confidentiality for the victim and the victim’s family in a 

2 manner consistent with applicable Federal and State laws. 

3 ‘‘(d) APPLICATION.—

4 ‘‘(1) IN GENERAL.—To be eligible to be award5 ed a grant or contract under this section for any fis6 cal year, an elementary school or secondary school, 

7 in consultation with an expert, shall submit an appli8 cation to the Secretary at such time and in such 

9 manner as the Secretary shall prescribe. 

10 ‘‘(2) CONTENTS.—Each application submitted 

11 under paragraph (1) shall—

12 ‘‘(A) describe the need for funds provided 

13 under the grant or contract and the plan for 

14 implementation of any of the activities de15 scribed in subsection (b); 

16 ‘‘(B) describe how the experts shall work 

17 in consultation and collaboration with the ele18 mentary school or secondary school; and 

19 ‘‘(C) provide measurable goals for and ex20 pected results from the use of the funds pro21 vided under the grant or contract.’’. 

22 (d) GRANTS FOR TRAINING AND COLLABORATION

23 AMONG CHILD WELFARE AGENCIES, DOMESTIC VIO24 LENCE AND SEXUAL ASSAULT SERVICE PROVIDERS, THE

25 COURTS, AND LAW ENFORCEMENT AGENCIES.—The 
837

•HR 936 IH 

1 Family Violence Prevention and Services Act (42 U.S.C. 

2 10401 et seq.), as amended by subsection (b), is further 

3 amended by adding at the end the following: 

4 ‘‘SEC. 321. GRANTS FOR TRAINING AND COLLABORATION 

5 AMONG CHILD WELFARE AGENCIES, DOMES6 TIC VIOLENCE AND SEXUAL ASSAULT SERV7 ICE PROVIDERS, THE COURTS, AND LAW EN8 FORCEMENT AGENCIES. 

9 ‘‘(a) PURPOSE.—It is the purpose of this section to—

10 ‘‘(1) encourage cross training and collaboration 

11 between child welfare agencies and domestic violence 

12 and sexual assault service providers and, where ap13 plicable, the courts and law enforcement agencies to 

14 identify, assess, and respond appropriately to domes15 tic violence or sexual assault in homes where chil16 dren are present and may be exposed to the violence, 

17 to domestic violence or sexual assault in child pro18 tection cases, and to the needs of both child and 

19 adult victims of domestic violence and sexual as20 sault; 

21 ‘‘(2) establish and implement policies, proce22 dures, and practices in child welfare agencies, do23 mestic violence or sexual assault service programs 

24 and, where applicable, juvenile, family or other trial 

25 courts with jurisdiction over child maltreatment and 
838

•HR 936 IH 

1 domestic violence cases (referred to in this section as 

2 the ‘courts’), and law enforcement agencies that are 

3 consistent with the principles of—

4 ‘‘(A) protecting children; 

5 ‘‘(B) increasing the safety and well-being 

6 of children, by—

7 ‘‘(i) tending to their immediate and 

8 longer term needs for treatment and sup9 port; 

10 ‘‘(ii) increasing the safety of parents 

11 of children who are not the perpetrators of 

12 domestic violence and sexual assault (re13 ferred to in this section as the ‘nonabusing 

14 parent’); 

15 ‘‘(iii) supporting the autonomy, capac16 ity, and financial security of the non17 abusing parents of children who are also 

18 the victims of domestic violence or sexual 

19 assault (referred to in this section as ‘adult 

20 victims’); 

21 ‘‘(iv) protecting the safety, security 

22 and well being of the child by preventing 

23 the unnecessary removal of the child from 

24 the nonabusing parent; and 
839

•HR 936 IH 

1 ‘‘(v) in cases where removal of the 

2 child is necessary to protect the child’s 

3 safety, taking the necessary steps to pro4 vide appropriate services to the child and 

5 the nonabusing parent to promote the safe 

6 and appropriately prompt reunification of 

7 the child with the nonabusing parent; 

8 ‘‘(C) recognizing—

9 ‘‘(i) the relationship between child 

10 abuse and neglect, including child sexual 

11 abuse, and domestic violence and sexual 

12 assault in families; 

13 ‘‘(ii) the impact of the perpetrator’s 

14 behavior on child and adult victims of do15 mestic violence and sexual assault; 

16 ‘‘(iii) the dangers posed to both child 

17 and adult victims of domestic violence and 

18 sexual assault; 

19 ‘‘(iv) the physical, emotional, and de20 velopmental impact of domestic violence

21 and sexual assault on child and adult vic22 tims; 

23 ‘‘(v) the physical, emotional, and fi24 nancial needs of adult victims of domestic 

25 violence and sexual assault; and 
840

•HR 936 IH 

1 ‘‘(vi) the need to hold adult perpetra2 tors of domestic violence and sexual as3 sault accountable for their abusive behav4 iors to provide appropriate services to re5 duce risks to child and adult victims of do6 mestic violence or sexual assault; 

7 ‘‘(D) in the case of training for court per8 sonnel and law enforcement, holding adult per9 petrators of domestic violence, sexual assault, 

10 and child abuse and neglect, not the child and 

11 adult victims of domestic violence, sexual as12 sault, and child abuse and neglect, accountable 

13 for stopping abusive behaviors; and 

14 ‘‘(3) increase cooperation and enhance linkages 

15 between child welfare agencies, domestic violence 

16 and sexual assault service providers, juvenile, family 

17 or other trial courts with jurisdiction over child mal18 treatment and domestic violence cases, and law en19 forcement agencies to protect and more comprehen20 sively and effectively serve both child and adult vic21 tims of domestic violence and sexual assault, and to 

22 engage where necessary other entities addressing the 

23 safety, health, mental health, social service, housing 

24 and economic needs of child and adult victims of do25 mestic violence and sexual assault, including commu-
841

•HR 936 IH 

1 nity-based supports such as schools, local health cen2 ters, community action groups, and neighborhood 

3 coalitions. 

4 ‘‘(b) GRANT AUTHORITY.—

5 ‘‘(1) IN GENERAL.—The Secretary shall make 

6 grants to eligible entities to enable the entities to 

7 jointly carry out cross training and other initiatives 

8 to promote collaboration that seeks to carry out the 

9 purposes of this section. 

10 ‘‘(2) GRANT PERIODS.—Grants shall be award11 ed under paragraph (1) for a period of 3 years. 

12 ‘‘(3) ELIGIBLE ENTITIES.—To be eligible to re13 ceive a grant under this section, a grant applicant 

14 shall establish a partnership that—

15 ‘‘(A) shall include— 

16 ‘‘(i) a State child welfare agency, an 

17 Indian tribal organization that serves as a 

18 child welfare agency, or a local child wel19 fare agency; and 

20 ‘‘(ii) a domestic violence or sexual as21 sault service provider, such as—

22 ‘‘(I) a State, local, or tribal do23 mestic violence or sexual assault coali24 tion; or 
842

•HR 936 IH 

1 ‘‘(II) another private non-profit 

2 organization such as a community3 based domestic violence or sexual as4 sault program that is concerned with 

5 domestic violence or sexual assault 

6 and has a documented history of ef7 fective work concerning domestic vio8 lence or sexual assault and the impact 

9 domestic violence or sexual assault 

10 has on children; and 

11 ‘‘(B) may include— 

12 ‘‘(i) a State or local juvenile, family, 

13 or other trial court with jurisdiction over 

14 child maltreatment and domestic violence 

15 cases; or 

16 ‘‘(ii) a State or local law enforcement 

17 agency with responsibility for responding 

18 to reports of domestic violence or sexual 

19 assault or child abuse and neglect. 

20 ‘‘(c) USES OF FUNDS.—An entity that receives a 

21 grant under this section shall use the funds made available 

22 through the grant for cross-training and collaborative ef23 forts, consistent with the principles described in subsection 

24 (a)(2), including—
843

•HR 936 IH 

1 ‘‘(1) to educate the staff of child welfare agen2 cies and domestic violence and sexual assault service 

3 providers, and, as applicable, the staff of courts and 

4 law enforcement agencies to responsibly address do5 mestic violence and sexual assault (recognizing it as 

6 a serious problem that threatens both its child and 

7 adult victims), and to understand—

8 ‘‘(A) domestic violence and sexual assault 

9 and their effects on children and adults; 

10 ‘‘(B) child abuse and neglect and its ef11 fects on children; and 

12 ‘‘(C) child welfare policies that affect child 

13 and adult victims of domestic violence and sex14 ual assault; 

15 ‘‘(2) to ensure the effective handling of cases 

16 where domestic violence or sexual assault and child 

17 abuse and neglect intersect so as to—

18 ‘‘(A) assure the safety and well-being of 

19 both the child and the nonabusing parent; 

20 ‘‘(B) prevent the unnecessary removal of 

21 the child from the nonabusing parent, and, 

22 when removal is necessary to protect the child’s 

23 safety; 
844

•HR 936 IH 

1 ‘‘(C) promote the delivery of appropriate 

2 services to the child and to the nonabusing par3 ent; and 

4 ‘‘(D) facilitate the safe and appropriately 

5 prompt reunification of the child with the non6 abusing parent through the development and 

7 implementation of policies, procedures, and pro8 grams that are consistent with the purposes of 

9 this section; 

10 ‘‘(3) to identify and assess, and respond appro11 priately to, domestic violence or sexual assault in 

12 child protection cases and the needs of child victims 

13 of abuse and neglect in domestic violence or sexual 

14 assault cases; 

15 ‘‘(4) to ensure that child welfare agencies and 

16 domestic violence and sexual assault service pro17 viders will not be required to share confidential in18 formation with one another about families receiving 

19 services except as required by law or with the in20 formed, written consent of the adult victim being 

21 served;

22 ‘‘(5) to provide appropriate resources in child 

23 abuse and neglect cases to respond to domestic vio24 lence and sexual assault, including developing a serv25 ice plan and providing other appropriate services 
845

•HR 936 IH 

1 and interventions that ensure the safety of both the 

2 child and adult victims of the domestic violence and 

3 sexual assault; 

4 ‘‘(6) to establish and enhance linkages and col5 laboration between child welfare agencies, domestic 

6 violence or sexual assault service providers and, 

7 where applicable, State or local juvenile, family, or 

8 other trial courts with jurisdiction over child mal9 treatment and domestic violence cases, law enforce10 ment agencies, and other entities addressing the 

11 safety, health, mental health, social service, housing, 

12 and economic needs of child and adult victims of do13 mestic violence and sexual assault, including commu14 nity-based supports such as schools, local health cen15 ters, community action groups, and neighborhood 

16 coalitions to—

17 ‘‘(A) respond effectively and comprehen18 sively to the varying needs of child and adult 

19 victims of domestic violence and sexual assault 

20 to prevent child and adult victims from having 

21 to turn to child welfare agencies for assistance; 

22 ‘‘(B) include linguistically and culturally 

23 appropriate services and linkages to existing 

24 services; and 
846

•HR 936 IH 

1 ‘‘(C) include at least the following services 

2 where appropriate: 

3 ‘‘(i) Appropriate referrals to commu4 nity-based domestic violence programs and 

5 sexual assault victim service providers with 

6 the capacities to support adult victims of 

7 domestic violence or sexual assault who are 

8 parents of children who have been abused 

9 or neglected or are at risk of being abused 

10 or neglected. 

11 ‘‘(ii) Emergency shelter and transi12 tional housing for adult victims of domestic 

13 violence or sexual assault and their chil14 dren. 

15 ‘‘(iii) Legal assistance and advocacy 

16 for victims of domestic violence or sexual 

17 assault including, when appropriate, assist18 ance in obtaining and entering orders of 

19 protection. 

20 ‘‘(iv) Support and training to assist 

21 parents to help their children cope with the 

22 impact of domestic violence or sexual as23 sault. 
847

•HR 936 IH 

1 ‘‘(v) Programs to help children who 

2 have been exposed to domestic violence or 

3 sexual assault. 

4 ‘‘(vi) Intervention and treatment for 

5 adult perpetrators of domestic violence or 

6 sexual assault whose children are the sub7 jects of child protection cases to promote 

8 the safety and well-being of the children, 

9 and appropriate coordination of such treat10 ment with the juvenile, family, and crimi11 nal courts, and law enforcement agencies 

12 with which the perpetrators are involved. 

13 ‘‘(vii) Health, mental health, and 

14 other necessary supportive services. 

15 ‘‘(viii) Assistance to obtain housing 

16 and necessary economic supports. 

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

18 under this section, the entities that are members of the 

19 applicant partnership described in subsection (b)(3), shall 

20 jointly submit an application to the Secretary at such 

21 time, in such manner, and containing such information as 

22 the Secretary may require. The application shall—

23 ‘‘(1) outline the specific training and other ac24 tivities that will be undertaken under the grant to 

25 promote collaboration; 
848

•HR 936 IH 

1 ‘‘(2) describe how the training and other activi2 ties described in subsection (c) will help achieve the 

3 purposes of this section; 

4 ‘‘(3) identify the agencies and providers that 

5 will be responsible for carrying out the initiatives for 

6 which the entities seek the grant; 

7 ‘‘(4) include documentation from child welfare 

8 agencies and domestic violence and sexual assault 

9 victims service providers, and where applicable, 

10 State or local juvenile, family, or other trial courts 

11 with jurisdiction over child maltreatment and domes12 tic violence cases, and law enforcement agencies that 

13 have been involved in the development of the appli14 cation; 

15 ‘‘(5) describe the ongoing involvement of child 

16 welfare and domestic violence and sexual assault vic17 tims service providers (including a description of 

18 their roles as subcontractors, and documentation of 

19 appropriate compensation, if relevant) and, where 

20 applicable, courts and law enforcement agencies, in 

21 the development of the training policies, procedures, 

22 programs, and practices described in subsection 

23 (c)(1); and 

24 ‘‘(6) provide assurances that activities described 

25 in subsection (c) will—
849

•HR 936 IH 

1 ‘‘(A) be provided to child welfare staff, in2 cluding line staff, supervisors, and administra3 tors, and be provided first to staff responsible 

4 for investigation, follow-up, screening, intake, 

5 assessment, and provision of services; and 

6 ‘‘(B) be conducted jointly with child wel7 fare agency staff, staff from community-based 

8 domestic violence programs and sexual assault 

9 crisis centers and where applicable, courts and 

10 law enforcement agencies; 

11 ‘‘(C) comply with the principles described 

12 in subsection (a)(2); and 

13 ‘‘(D) address—

14 ‘‘(i) the dynamics and lethality of do15 mestic violence and sexual assault, the im16 pact of domestic violence and sexual as17 sault on children exposed to domestic vio18 lence and sexual assault, the impact of do19 mestic violence and sexual assault on adult 

20 victims, and the relationship of domestic 

21 violence and sexual assault to child abuse 

22 and neglect; 

23 ‘‘(ii) screening for domestic violence 

24 and sexual assault and assessing danger to 
850

•HR 936 IH 

1 the child and adult victims of domestic vio2 lence and sexual assault; 

3 ‘‘(iii) applicable Federal, State, and 

4 local laws pertaining to child abuse and ne5 glect and domestic violence and sexual as6 sault; 

7 ‘‘(iv) the safety needs of child and 

8 adult victims of child abuse and neglect or 

9 domestic violence, or sexual assault and 

10 appropriate interventions for the child and 

11 adult victims that protect their the safety, 

12 including appropriate services and treat13 ment for children and the nonabusing par14 ent to prevent the unnecessary removal of 

15 children from the nonabusing parent, and 

16 to promote prompt reunification if removal 

17 becomes necessary of both types of victims 

18 and give appropriate consideration to pre19 serving the safety of family members not 

20 responsible for the child abuse or neglect;

21 ‘‘(v) appropriate interventions for 

22 adult perpetrators of domestic violence to 

23 reduce the risk of further violence toward 

24 child and adult victims of domestic violence 
851

•HR 936 IH 

1 and sexual assault which emphasize perpe2 trator accountability; 

3 ‘‘(vi) appropriate supervision of child 

4 welfare staff working with families in 

5 which there has been domestic violence and 

6 sexual assault, including supervision relat7 ing to issues involving the safety of the 

8 child and adult victims and of the staff; 

9 ‘‘(vii) the confidentiality needs of the 

10 child and adult victims, consistent with 

11 laws requiring mandatory reporting of 

12 child abuse and neglect; and 

13 ‘‘(viii) develop child protection case 

14 plans that recognize the need to protect 

15 the safety of the child and of the adult vic16 tim and to hold adult perpetrators, not vic17 tims, responsible for stopping domestic vio18 lence and sexual assault. 

19 ‘‘(e) PRIORITY.—In awarding grants under this sec20 tion, the Secretary shall give priority to entities that have 

21 submitted applications in partnership with State or local 

22 juvenile, family, or other trial courts with jurisdiction over 

23 child maltreatment and domestic violence cases, and law 

24 enforcement agencies. 
852

•HR 936 IH 

1 ‘‘(f) REPORTING, AND DISSEMINATION OF INFORMA2 TION.—

3 ‘‘(1) REPORTS.—Each of the entities that are 

4 members of the applicant partnership described in 

5 subsection (b)(3), that receive a grant under this 

6 section shall jointly annually prepare and submit to 

7 the Secretary a report detailing the activities that 

8 the entities have undertaken under the grant and 

9 such additional information as the Secretary shall 

10 require. At a minimum, such report shall address 

11 the nature of the cross-training and other activities 

12 to promote collaboration among child welfare agen13 cies, domestic violence or sexual assault service pro14 viders, and where applicable, State or local juvenile, 

15 family, or other trial courts with jurisdiction over 

16 child maltreatment and domestic violence cases and 

17 law enforcement agencies that were undertaken with 

18 such grants and examples of enhanced collaboration 

19 that has occurred to better protect both child and 

20 adult victims of child abuse and domestic violence or 

21 sexual assault. 

22 ‘‘(2) DISSEMINATION OF INFORMATION.—Not 

23 later then 9 months after the end of the grant pe24 riod under this section, the Secretary shall distribute 

25 to all State child welfare agencies, domestic violence 
853

•HR 936 IH 

1 or sexual assault victim service providers, and where 

2 applicable, State or local juvenile, family, or other 

3 trial courts with jurisdiction over child maltreatment 

4 and domestic violence cases, law enforcement agen5 cies, and Congress summaries that contain informa6 tion on—

7 ‘‘(A) the activities implemented by the re8 cipients of the grants; and 

9 ‘‘(B) related initiatives undertaken by the 

10 Secretary to promote attention by the staff of 

11 child welfare agencies, domestic violence or sex12 ual assault service providers and where applica13 ble, courts and law enforcement agencies to do14 mestic violence and sexual assault and their im15 pact on both child and adult victims. 

16 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to carry out this section, 

18 $15,000,000 in each of fiscal years 2004 through 2006, 

19 and $25,000,000 in each of fiscal years 2007 and 2008.’’. 

20 (e) MULTISYSTEM INTERVENTIONS FOR CHILDREN

21 WHO HAVE BEEN EXPOSED TO DOMESTIC VIOLENCE.—

22 The Family Violence Prevention and Services Act (42 

23 U.S.C. 10401 et seq.), as amended by subsection (d), is 

24 further amended by adding at the end the following: 
854

•HR 936 IH 

1 ‘‘SEC. 322. MULTISYSTEM INTERVENTIONS FOR CHILDREN 

2 WHO HAVE BEEN EXPOSED TO DOMESTIC VI3 OLENCE. 

4 ‘‘(a) GRANTS AUTHORIZED.—The Secretary, acting 

5 through the Director of Community Services of the Ad6 ministration for Children and Families, may award grants 

7 to eligible entities to enable such entities to conduct pro8 grams to encourage the development and use of multi9 system intervention models that respond to the needs of 

10 children who have been exposed to domestic violence. 

11 ‘‘(b) ELIGIBLE ENTITIES.—To be eligible to receive 

12 a grant under this section, an entity shall—

13 ‘‘(1) be a nonprofit private organization; 

14 ‘‘(2)(A) demonstrate recognized expertise in the 

15 area of domestic violence and the impact of domestic 

16 violence on children; or 

17 ‘‘(B) have entered into a memorandum of un18 derstanding regarding the intervention program to 

19 be established under the grant and the role of the 

20 entity in the program with—

21 ‘‘(i) the appropriate State or tribal domes22 tic violence coalition; and 

23 ‘‘(ii) entities carrying out domestic violence 

24 programs that provide shelter or related assist25 ance in the locality in which the intervention 
855

•HR 936 IH 

1 program will be operated and that have an un2 derstanding of its effects on children; 

3 ‘‘(3)(A) demonstrate a recognized expertise in 

4 child mental health services; or 

5 ‘‘(B) have entered into a memorandum of un6 derstanding regarding the intervention program to 

7 be established under the grant with providers that 

8 have expertise in child mental health to ensure that 

9 children of all ages have access to appropriate men10 tal health services; and 

11 ‘‘(4) demonstrate a history of providing advo12 cacy, health care, mental health, or other crisis-re13 lated services to children. 

14 ‘‘(c) USE OF FUNDS.—An entity that receives a grant 

15 under this section shall use amounts provided under the 

16 grant to design or replicate, and implement, multisystem 

17 intervention models to respond to the needs of children 

18 exposed to domestic violence. Such activities shall—

19 ‘‘(1)(A) involve collaborative partnerships 

20 with—

21 ‘‘(i) local entities carrying out domestic vi22 olence programs that provide shelter or related 

23 assistance or have expertise in the field of pro24 viding services to victims of domestic violence 
856

•HR 936 IH 

1 and an understanding of its effects on children; 

2 and 

3 ‘‘(ii) other partners including courts, 

4 schools, social service providers, health care 

5 providers, police, early childhood agencies, enti6 ties carrying out Head Start programs under 

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

8 or entities carrying out child protection, wel9 fare, job training, housing, battered women’s 

10 service, or children’s mental health programs; 

11 and 

12 ‘‘(B) be carried out to design and implement 

13 protocols and systems to identify, and appropriately 

14 respond to the needs of children who have been ex15 posed to domestic violence and who participate in 

16 programs administered by the partners; 

17 ‘‘(2) establish or implement guidelines to evalu18 ate the needs of a child and make appropriate inter19 vention recommendations; 

20 ‘‘(3) include the development or replication of a 

21 mental health treatment model to meet the needs of 

22 children for whom such treatment has been identi23 fied as appropriate; 

24 ‘‘(4) establish or implement institutionalized 

25 procedures to enhance or ensure the safety and secu-
857

•HR 936 IH 

1 rity of a battered parent, and as a result, the child 

2 of the parent; 

3 ‘‘(5) provide direct counseling and advocacy for 

4 adult victims of domestic violence and their children 

5 who have been exposed to domestic violence; 

6 ‘‘(6) establish or implement policies and proto7 cols for maintaining the confidentiality of the bat8 tered parent and child; 

9 ‘‘(7) provide community outreach and training 

10 to enhance the capacity of professionals who work 

11 with children to appropriately identify and respond 

12 to the needs of children who have been exposed to 

13 domestic violence; 

14 ‘‘(8) establish procedures for documenting 

15 interventions used for each child and family; 

16 ‘‘(9) establish plans to perform a systematic 

17 outcome evaluation to evaluate the effectiveness of 

18 the interventions; 

19 ‘‘(10) ensure that all services are provided in a 

20 culturally competent manner; and 

21 ‘‘(11) provide remuneration to local domestic vi22 olence services organizations who are asked to join 

23 collaborations. 

24 ‘‘(d) APPLICATION.—To be eligible to receive a grant 

25 under this section, an entity shall prepare and submit to 
858

•HR 936 IH 

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

2 and containing such information as the Secretary may re3 quire. 

4 ‘‘(e) TERM AND AMOUNT.—A grant awarded under 

5 this section shall be awarded for a term of 3 years and 

6 in an amount of not more than $500,000 for each such 

7 year. 

8 ‘‘(f) TECHNICAL ASSISTANCE.—Not later than 90 

9 days after the date of enactment of this section, the Sec10 retary shall identify successful programs that provide 

11 multisystem and mental health interventions to address 

12 the needs of children who have been exposed to domestic 

13 violence. Not later than 60 days before the Secretary solic14 its applications for grants under this section, the Sec15 retary shall enter into an agreement with 1 or more enti16 ties carrying out the identified programs to provide tech17 nical assistance to applicants and recipients of such 

18 grants. The Secretary may use not more than 5 percent 

19 of the amount appropriated for a fiscal year under sub20 section (g) to provide such technical assistance. 

21 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—

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

23 appropriated to carry out this section, $15,000,000 

24 for each of fiscal years 2004 through 2008. 
859

•HR 936 IH 

1 ‘‘(2) AVAILABILITY.—Amounts appropriated 

2 under paragraph (1) shall remain available until ex3 pended.’’. 

4 (f) CRISIS NURSERY DEMONSTRATION GRANTS PRO5 GRAM.—The Family Violence Prevention and Services Act 

6 (42 U.S.C. 10401 et seq.), as amended by subsection (e), 

7 is further amended by adding at the end the following: 

8 ‘‘SEC. 323. CRISIS NURSERY DEMONSTRATION GRANT PRO9 GRAMS. 

10 ‘‘(a) AUTHORITY TO ESTABLISH DEMONSTRATION

11 GRANT PROGRAMS.—The Secretary may establish dem12 onstration programs under which grants are awarded to 

13 States to assist private nonprofit and public agencies and 

14 organizations in providing crisis nurseries for children who 

15 are abused and neglected, are at risk of abuse and neglect, 

16 are in families experiencing domestic violence, or are in 

17 families receiving child protective services. 

18 ‘‘(b) ASSURANCES FOR TRAINING IN DOMESTIC VIO19 LENCE.—

20 ‘‘(1) IN GENERAL.—Private nonprofit and pub21 lic agencies and organizations who receive funds 

22 under this section shall provide assurances to the 

23 Secretary that personnel working with children and 

24 families in crisis nurseries receive or have received 

25 training in domestic violence, the impact of domestic 
860

•HR 936 IH 

1 violence on children, appropriate procedures for 

2 maintaining the safety and security of victims of do3 mestic violence and their children, and appropriate 

4 procedures for maintaining the confidentiality of 

5 both child and adult victims of domestic violence uti6 lizing the services of crisis nurseries. 

7 ‘‘(2) TRAINING REQUIREMENT.—Training re8 quired under paragraph (1) shall be conducted in 

9 consultation with State, local, or tribal domestic vio10 lence coalitions or other private nonprofit organiza11 tions such as a community-based domestic violence 

12 program that has a documented history of serving 

13 both child and adult victims of domestic violence. 

14 ‘‘(c) COORDINATION.—An applicant for a grant 

15 under this section shall demonstrate how activities funded 

16 under this section will be coordinated with other crisis 

17 nursery activities funded under section 201 of the Child 

18 Abuse Prevention and Treatment Act (42 U.S.C. 5116).

19 ‘‘(d) REPORTING.—A recipient of a grant under this 

20 section shall annually report on the crisis nursery activi21 ties funded under this grant. At a minimum, such a report 

22 shall describe—

23 ‘‘(1) the number of children and families served 

24 through crisis nursery activities established under 

25 the grant; 
861

•HR 936 IH 

1 ‘‘(2) the nature and extent of the crisis nursery 

2 activities; 

3 ‘‘(3) the percentage of children served by the 

4 crisis nursery activities established under the grant 

5 who are from families experiencing domestic vio6 lence; 

7 ‘‘(4) the type of domestic violence training pro8 vided to crisis nursery staff and the nature and ex9 tent of training coordination with local domestic vio10 lence service providers; 

11 ‘‘(5) the nature and extent of other Federal and 

12 State funding sources used to support the services of 

13 the crisis nursery; 

14 ‘‘(6) the gaps between the service needs of the 

15 crisis nursery and the current capacity of crisis 

16 nurseries to serve children and families; and 

17 ‘‘(7) outcome evaluation data on the effective18 ness of crisis nursery activities, if available. 

19 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

20 is authorized to be appropriated to carry out this section, 

21 $15,000,000 for each of fiscal years 2004 through 2008.’’. 

22 (g) RESEARCH AND DATA COLLECTION ON THE IM23 PACT OF DOMESTIC VIOLENCE ON CHILDREN.—The 

24 Family Violence Prevention and Services Act (42 U.S.C. 
862

•HR 936 IH 

1 10401 et seq.), as amended by subsection (f), is further 

2 amended by adding at the end the following: 

3 ‘‘SEC. 324. RESEARCH AND DATA COLLECTION ON THE IM4 PACT OF DOMESTIC VIOLENCE ON CHIL5 DREN. 

6 ‘‘(a) GRANTS.—The Secretary, acting through the 

7 Assistant Secretary for Children and Families, may award 

8 competitive grants to eligible entities to enable such enti9 ties to conduct research and data collection activities con10 cerning the impact of domestic violence on children. 

11 ‘‘(b) ELIGIBLE ENTITIES.—To be eligible to receive 

12 a grant under this section, an entity shall be an institution 

13 of higher education or another nonprofit organization 

14 (such as a research entity, hospital, or mental health insti15 tution), with documented experience with research or data 

16 collection concerning the impact of domestic violence on 

17 children. 

18 ‘‘(c) USE OF FUNDS.—An entity that receives a grant 

19 under this section shall use amounts provided under the 

20 grant to conduct new or expand current research or data 

21 collection—

22 ‘‘(1) on the prevalence of childhood exposure to 

23 domestic violence and the effects of the exposure in 

24 child and adult victims; 
863

•HR 936 IH 

1 ‘‘(2) on the co-occurrence of domestic violence, 

2 and child abuse or neglect; 

3 ‘‘(3) on linkages between children’s exposure to 

4 domestic violence and violent behavior in youth and 

5 adults; 

6 ‘‘(4) that evaluates new or existing treatments 

7 aimed at children exposed to domestic violence; 

8 ‘‘(5) on the prevalence of childhood exposure to 

9 domestic violence for Native American children; 

10 ‘‘(6) on the effects and benefits of keeping chil11 dren with their nonabusive parent and providing co12 ordinated services to both; 

13 ‘‘(7) on the role of children’s resilience and 

14 other factors that help mitigate the effects of expo15 sure to domestic violence; and 

16 ‘‘(8) on related matters, if the research or data 

17 collection directly addresses the impact of domestic 

18 violence on children. 

19 ‘‘(d) TERM AND AMOUNT.—The Secretary shall 

20 award grants under this section for terms of 3 years and 

21 in amount of not more than $500,000 for each such year. 

22 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

23 are authorized to be appropriated to carry out this section, 

24 $2,000,000 for each of fiscal years 2004 through 2006, 

25 and $5,000,000 for each of fiscal years 2007 and 2008.’’.
864

•HR 936 IH 

1 Subtitle F—Enhancing Healthy 

2 Emotional Development in 

3 Young Children 

4 SEC. 8501. ENHANCING HEALTHY EMOTIONAL DEVELOP5 MENT. 

6 (a) FINDINGS.—Congress finds the following: 

7 (1) Researchers have identified external risk 

8 factors that, particularly when found in combination, 

9 can increase a young child’s risk for experiencing 

10 problems in social or emotional development, includ11 ing factors such as exposure to traumatic events, 

12 child abuse and neglect, parental mental health dis13 orders, unsatisfactory relationships, and deprivation. 

14 Experiences involving these risk factors may occur 

15 at home or in the community. 

16 (2) There is growing evidence that positive ad17 aptation and social and emotional well-being in 

18 young children can be enhanced, and that the im19 pact of risk factors for behavioral and emotional dis20 orders can be reduced by intervening early in homes, 

21 child care and other early childhood programs, and 

22 other settings. 

23 (3) The Surgeon General’s Conference on Chil24 dren’s Mental Health has recommended the creation 

25 of tangible tools for early childhood service providers 
865

•HR 936 IH 

1 to help the providers assess children’s social and 

2 emotional needs, discuss issues relating to those 

3 needs with families, and make referrals. 

4 (4) Experience demonstrates that mental health 

5 consultants can help staff, as well as children and 

6 families, in early childhood programs promote 

7 healthy social and emotional development in young 

8 children, including those children already exposed to 

9 violence and other damaging experiences. 

10 (5) Success in school is dependent on social and 

11 emotional development, as well as the attainment of 

12 other competencies and skills, and investing early in 

13 the promotion of healthy development in young chil14 dren will help children enter school ready to learn. 

15 (b) DEFINITIONS.—In this section: 

16 (1) SECRETARY.—The term ‘‘Secretary’’ means 

17 the Secretary of Health and Human Services, acting 

18 through the Assistant Secretary for Children and 

19 Families. 

20 (2) STATE AGENCY.—The term ‘‘State agency’’ 

21 means—

22 (A) the State office that coordinates early 

23 childhood services in a State; or 

24 (B) if an office described in subparagraph 

25 (A) does not exist in a State, the State office 
866

•HR 936 IH 

1 that is responsible for early childhood programs 

2 in the State. 

3 (3) YOUNG CHILDREN.—The term ‘‘young chil4 dren’’ means individuals who are below the age of 

5 compulsory school attendance for the State involved. 

6 (c) GRANTS TO STATE AGENCIES.—

7 (1) GRANTS.—The Secretary shall establish a 

8 program through which the Secretary may make 

9 grants to State agencies, to enable the State agen10 cies to assist eligible entities to serve young children 

11 and the families of the children by addressing the 

12 mental health and developmental needs of the young 

13 children in order to promote the children’s resilience, 

14 emotional wellness, and healthy emotional develop15 ment. 

16 (2) GRANT PERIODS.—The Secretary shall 

17 make the grants for periods of not more than 3 

18 years. 

19 (d) STATE APPLICATIONS.—To be eligible to receive 

20 a grant under subsection (c), a State agency shall submit 

21 an application to the Secretary at such time, in such man22 ner, and containing such information as the Secretary may 

23 require. The application shall include the information and 

24 assurances described in subsection (g), with respect to the 

25 State. 
867

•HR 936 IH 

1 (e) GRANTS TO ELIGIBLE ENTITIES.—A State agen2 cy that receives a grant under subsection (c) shall use the 

3 funds made available through the grant to make grants 

4 to eligible entities to carry out programs to serve young 

5 children and the families of the children as described in 

6 subsection (c). 

7 (f) ELIGIBLE ENTITIES.—To be eligible to receive a 

8 grant under subsection (e), an entity shall—

9 (1) be an agency or organization that carries 

10 out a home or center-based early childhood program, 

11 child welfare program, substance abuse treatment 

12 program, or domestic violence service and treatment 

13 program, that serves or has regular contact with 

14 young children; 

15 (2) be an established consortium of agencies or 

16 organizations described in paragraph (1); or 

17 (3) be another entity (such as a child care re18 source and referral agency, an early childhood serv19 ice coordinating body, or a community mental health 

20 center) that works with parents, agencies, or organi21 zations that serve young children in a community in 

22 promoting the mental health and healthy emotional 

23 development of young children; and 
868

•HR 936 IH 

1 (4) obtain the approval of the State agency for 

2 an application submitted in accordance with sub3 section (g). 

4 (g) LOCAL APPLICATIONS.—

5 (1) IN GENERAL.—To be eligible to receive a 

6 grant under this section, an entity shall submit an 

7 application to the State agency at such time, in such 

8 manner, and containing such information as the 

9 State agency may require. 

10 (2) CONTENTS.—At a minimum, the applica11 tion shall contain—

12 (A) a description of the young children 

13 who are targeted to be served, or are most like14 ly to be served, with the funds made available 

15 through the grant, and the problems the chil16 dren are facing or affected by (such as exposure 

17 to parental depression, parental substance 

18 abuse, child abuse or neglect, domestic violence, 

19 community violence, homelessness, a parental 

20 transition to the workforce, or other risk fac21 tors); 

22 (B) an assurance that the assistance pro23 vided with funds made available through the 

24 grant will be undertaken in a developmentally 

25 appropriate and culturally competent manner, 
869

•HR 936 IH 

1 be child-centered, and, as applicable, family-fo2 cused, and consistent with the best knowledge 

3 available about effective prevention and inter4 vention strategies to promote mental health and 

5 healthy emotional development in young chil6 dren; 

7 (C) the name of the entity that would ad8 minister the program carried out under the 

9 grant; 

10 (D) a description of the types of assistance 

11 that will be provided with the funds to improve 

12 the mental health and healthy emotional devel13 opment of young children; 

14 (E) a description of how the program to be 

15 carried out under the grant will complement 

16 and be coordinated with the activities of, or car17 ried out by, any early childhood service coordi18 nating offices in the community in which the 

19 grant activities will be carried out; 

20 (F) an assurance that the applicant will 

21 work collaboratively with mental health, early 

22 childhood development, early intervention, edu23 cation, health, and other specialized violence 

24 prevention or treatment experts, and other ex25 perts in the applicant’s community to coordi-
870

•HR 936 IH 

1 nate services provided under this subtitle with 

2 similar services and to better address the needs 

3 of the young children the applicant serves; 

4 (G) documentation that the applicant has 

5 explored the extent to which funding under part 

6 C of the Individuals with Disabilities Education 

7 Act (20 U.S.C. 1431 et seq.) and from other re8 lated Federal and State sources is available to 

9 address the needs of the young children; and 

10 (H) an assurance that the funds made 

11 available through the grant will not be used for 

12 activities that the State pays for with funds 

13 made available under the medicaid program 

14 carried out under title XIX of the Social Secu15 rity Act (42 U.S.C. 1396 et seq.), under the 

16 State children’s health insurance program car17 ried out under title XXI of the Social Security 

18 Act (42 U.S.C. 1397aa et seq.), or from State 

19 and local funds for mental health programs. 

20 (h) USE OF FUNDS.—

21 (1) IN GENERAL.—Except as provided in para22 graphs (2) and (3), an entity that receives a grant 

23 under this section may use the funds made available 

24 through the grant to promote the mental health and 
871

•HR 936 IH 

1 healthy emotional development of young children 

2 by—

3 (A) providing screening and assessments of 

4 the mental health and developmental needs of 

5 the young children to be served under the grant 

6 and, as appropriate, their families; 

7 (B) providing for consultations with staff 

8 of programs described in subsection (f)(1) by 

9 mental health and other early childhood devel10 opment experts, such as speech and language 

11 therapists and special education consultants, 

12 who can provide programmatic and individual 

13 child-centered and family-focused assistance to 

14 help the staff respond in the manner most con15 ducive to promoting the mental health and 

16 healthy emotional development of young chil17 dren; 

18 (C) providing professional development, in19 cluding specialized training and supervision, for 

20 staff of programs described in subsection (f)(1) 

21 and other early childhood service providers and, 

22 as appropriate, for families of young children, 

23 about the mental health and developmental 

24 needs of young children, to enable the staff and 

25 families to develop the skills and competencies 
872

•HR 936 IH 

1 necessary to respond to the needs of, and pro2 vide needed assistance to, the young children 

3 and their families to promote the children’s 

4 mental health and healthy emotional develop5 ment; 

6 (D) providing prevention and early inter7 vention services, including home visitation, par8 enting education, and other activities, parent9 child groups, and other individualized supports 

10 for families of young children (including par11 ents, grandparents, other relative caregivers, 

12 foster parents, and other individuals responsible 

13 for raising young children), that are designed to 

14 promote mental health and healthy emotional 

15 development of young children; 

16 (E) providing crisis services; 

17 (F) facilitating access to treatment and 

18 services to enable staff of programs described in 

19 subsection (f)(1) to promote mental health and 

20 healthy emotional development by attending ap21 propriately to the emotional and behavioral con22 cerns facing young children and their families; 

23 (G) providing increased collaboration be24 tween staff of programs providing early child25 hood, child development, and children’s mental 
873

•HR 936 IH 

1 health services, and, as appropriate, staff from 

2 other service delivery systems such as—

3 (i) the courts; and 

4 (ii) service delivery systems for sub5 stance abuse treatment, domestic violence 

6 service and treatment, health, and adult 

7 and child mental health programs; and 

8 (H) providing case management services 

9 for young children and, as appropriate, their 

10 families, to help link the children and families 

11 who need more specialized interventions to ap12 propriate services and treatment. 

13 (2) PLANNING AND COLLABORATION.—

14 (A) IN GENERAL.—An entity that requests 

15 authority to use grant funds made available 

16 under this section for planning and collabora17 tion activities, and receives a grant under this 

18 section, may use a portion of the grant funds 

19 as described in subparagraph (B). 

20 (B) ACTIVITIES.—The entity may use not 

21 more than 50 percent of the grant funds for a 

22 period of not more than 6 months at the begin23 ning of the grant period to carry out planning 

24 and collaboration activities that will help ensure 

25 that the needs of young children will be ad-
874

•HR 936 IH 

1 dressed appropriately through the activities car2 ried out under the grant. The planning and col3 laboration activities shall build on the work of 

4 and, to the extent possible, be carried out by 

5 early childhood service coordinating offices in 

6 the community in which the grant activities will 

7 be carried out. 

8 (3) DESIGNATED ACTIVITIES.—The Secretary 

9 may, during the 3-year period beginning on the date 

10 of the establishment of the program described in 

11 subsection (c), award grants to State agencies under 

12 subsection (c), to enable the State agencies to assist 

13 eligible entities specifically to promote the training 

14 of early childhood mental health specialists, in con15 junction with entities such as community colleges, 

16 schools of social work, and institutions offering psy17 chology programs, through degree programs or in18 ternships or fellowships in early childhood mental 

19 health. 

20 (i) STATE COLLABORATION.—The State agency shall 

21 review applications submitted under subsection (g), make 

22 grants under subsection (e), and carry out the administra23 tion and oversight of the programs described in subsection 

24 (e) in collaboration with—

25 (1) the State mental health agency; 
875

•HR 936 IH 

1 (2) the State entity designated to receive col2 laboration grants under section 640(a)(5) of the 

3 Head Start Act (42 U.S.C. 9835(a)(5)); and 

4 (3) other State offices responsible for child wel5 fare programs, substance abuse treatment programs, 

6 or domestic violence service programs, serving young 

7 children within the State. 

8 (j) SUPPLEMENT NOT SUPPLANT.—Funds appro9 priated pursuant to the authority of this section shall be 

10 used to supplement and not supplant other public funds 

11 expended to promote the mental health and healthy emo12 tional development of young children. 

13 (k) COLLABORATION.—In carrying out this section, 

14 the Secretary shall collaborate with the Administrator of 

15 the Substance Abuse and Mental Health Services Admin16 istration, the Administrator of the Health Care Financing 

17 Administration, and the heads of relevant offices of the 

18 Department of Education that address the concerns of 

19 young children. 

20 (l) REPORT.—A State that receives a grant under 

21 this section shall, not later than 90 days after the end 

22 of the grant period, prepare and submit to the Secretary 

23 a report that includes—
876

•HR 936 IH 

1 (1) information on the needs of the young chil2 dren, and their families, who were assisted with the 

3 grant funds; 

4 (2) information on the strategies for which the 

5 grant funds were used, and how the funds were com6 bined with other funds to expand the strategies; 

7 (3) documentation that the activities provided 

8 were developmentally appropriate, child-centered, 

9 and, as appropriate, family-focused, and directed to10 ward preventing emotional problems, and involved 

11 collaboration with mental health and other develop12 mental experts; 

13 (4) a discussion of—

14 (A) the extent to which entities in the 

15 State increased the number of activities (similar 

16 to activities carried out under this section) car17 ried out in the State that were funded from 

18 sources other than funds made available under 

19 this section during the grant period; and 

20 (B) the barriers to increasing the number 

21 of those activities that were so funded; and 

22 (5) a discussion of how the funds made avail23 able through the grant helped to improve outcomes 

24 for the young children and families served, particu25 larly with regard to the goal of school readiness. 
877

•HR 936 IH 

1 (m) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to carry out this sec3 tion—

4 (1) $25,000,000 for fiscal year 2004; 

5 (2) $40,000,000 for fiscal year 2005; 

6 (3) $55,000,000 for fiscal year 2006; 

7 (4) $70,000,000 for fiscal year 2007; and 

8 (5) $85,000,000 for fiscal year 2008.

9 TITLE IX—SUCCESSFUL 

10 TRANSITION TO ADULTHOOD 

11 Subtitle A—Youth Development 

12 CHAPTER 1—SHORT TITLE; POLICY; 

13 DEFINITIONS 

14 SEC. 9001. SHORT TITLE. 

15 This subtitle may be cited as the ‘‘Younger Ameri16 cans Act’’. 

17 SEC. 9002. A NATIONAL YOUTH POLICY. 

18 It is the policy of the United States, in keeping with 

19 the traditional United States concept that youth are the 

20 Nation’s most valuable resource, that youth of the Nation 

21 need, and it is the joint and several duty and responsibility 

22 of governments of the United States, of the several States 

23 and political subdivisions, and of Indian tribes, to ensure 

24 that all youth have access to and participate in the full 

25 array of core resources needed to fully prepare youth to 
878

•HR 936 IH 

1 become healthy and productive adults and effective citi2 zens, including—

3 (1) ongoing relationships with caring adults; 

4 (2) safe places with structured activities; 

5 (3) services that promote healthy lifestyles, in6 cluding services designed to improve physical and 

7 mental health; 

8 (4) opportunities to acquire marketable skills 

9 and competencies; and 

10 (5) opportunities for community service and 

11 civic participation. 

12 SEC. 9003. DEFINITIONS. 

13 In this Subtitle: 

14 (1) AREA PLAN.—The term ‘‘area plan’’ means 

15 an area youth development plan described in section 

16 9108. 

17 (2) ASSOCIATE COMMISSIONER.—The term ‘‘As18 sociate Commissioner’’ means the Associate Commis19 sioner of the Family and Youth Services Bureau of 

20 the Administration on Children, Youth, and Families 

21 of the Administration for Children and Families of 

22 the Department of Health and Human Services. 

23 (3) COMMUNITY-BASED.—The term ‘‘commu24 nity-based’’, used with respect to an organization, 

25 means an organization that—
879

•HR 936 IH 

1 (A) is representative of a community or 

2 significant segment of a community; and 

3 (B) is engaged in providing services to the 

4 community. 

5 (4) CONSORTIUM.—The term ‘‘consortium’’ 

6 means a youth development consortium established 

7 in accordance with section 9107(a). 

8 (5) CONVENING COMMUNITY-BASED AGENCY.—

9 The term ‘‘convening community-based agency’’ 

10 means an organization that—

11 (A) is directed by a board with wide rep12 resentation from a community; 

13 (B) generates and distributes charitable 

14 funds for diverse health and human service pro15 grams and coordinates the efforts of multiple 

16 agencies as needed or requested; 

17 (C) does not itself provide direct services 

18 to children, youth, or their families; and 

19 (D) operates within the geographic bound20 aries of the youth development area for which 

21 it exercises its convening duty. 

22 (6) CONVENING UNIT OF GENERAL PURPOSE

23 LOCAL GOVERNMENT.—The term ‘‘convening unit of 

24 general purpose local government’’ means the unit of 

25 general purpose local government with the greatest 
880

•HR 936 IH 

1 number of youth residing within the geographic 

2 boundaries of the youth development area for which 

3 it exercises its convening duty. 

4 (7) COUNCIL.—The term ‘‘Council’’ means the 

5 Coordinating Council for National Youth Policy. 

6 (8) INDIAN.—The term ‘‘Indian’’ has the mean7 ing given the term in section 4(d) of the Indian Self8 Determination and Education Assistance Act (25 

9 U.S.C. 450b(d)). 

10 (9) LIBRARY.—The term ‘‘library’’ has the 

11 meaning given the term in section 213(2) of the Mu12 seum and Library Services Act of 1996. 

13 (10) NATIVE AMERICAN ORGANIZATION.—The 

14 term ‘‘Native American organization’’ means—

15 (A) a tribal organization, as defined in sec16 tion 4(l) of the Indian Self-Determination and 

17 Education Assistance Act (25 U.S.C. 450b(l)); 

18 (B) a Native Hawaiian Organization, as 

19 defined in section 4009(4) of the Augustus F. 

20 Hawkins-Robert T. Stafford Elementary and 

21 Secondary School Improvement Amendments of 

22 1988 (20 U.S.C. 4909(4)) (as in effect on the 

23 day before the date of enactment of the Improv24 ing America’s Schools Act of 1994); 
881

•HR 936 IH 

1 (C) an Alaska Native Village Corporation 

2 or Regional Corporation as defined in or estab3 lished pursuant to the Alaskan Native Claims 

4 Settlement Act (43 U.S.C. 1601 et seq.); or 

5 (D) a private nonprofit organization estab6 lished for the purpose of serving youth who are 

7 Indians or Native Hawaiians. 

8 (11) NATIVE HAWAIIAN.—The term ‘‘Native 

9 Hawaiian’’ has the meaning given the term in sec10 tion 4009(1) of the Augustus F. Hawkins-Robert T. 

11 Stafford Elementary and Secondary School Improve12 ment Amendments of 1988 (20 U.S.C. 4909(1)) (as 

13 in effect on the day before the date of enactment of 

14 the Improving America’s Schools Act of 1994). 

15 (12) OUTLYING AREA.—The term ‘‘outlying 

16 area’’ means the United States Virgin Islands, 

17 Guam, American Samoa, and the Commonwealth of 

18 the Northern Mariana Islands. 

19 (13) STATE.—The term ‘‘State’’ means each of 

20 the several States of the United States, the District 

21 of Columbia, and the Commonwealth of Puerto Rico. 

22 (14) STATE PLAN.—The term ‘‘State plan’’ 

23 means a State youth development plan described in 

24 section 9105. 
882

•HR 936 IH 

1 (15) UNIT OF GENERAL PURPOSE LOCAL GOV2 ERNMENT.—The term ‘‘unit of general purpose local 

3 government’’ means—

4 (A) a political subdivision of a State whose 

5 authority is general and not limited to only 1 

6 function or combination of related functions; or 

7 (B) a Native American organization. 

8 (16) YOUTH.—The term ‘‘youth’’ means an in9 dividual who is not younger than age 10 and not 

10 older than age 19. 

11 (17) YOUTH DEVELOPMENT AREA.—The term 

12 ‘‘youth development area’’ means a geographic area 

13 designated by the State youth development agency in 

14 accordance with section 9104(a)(1)(E). 

15 (18) YOUTH DEVELOPMENT ORGANIZATION.—

16 The term ‘‘youth development organization’’ means 

17 a public or private youth-serving organization with a 

18 major emphasis on providing youth development pro19 grams. 

20 (19) YOUTH DEVELOPMENT PROGRAMS.—The 

21 term ‘‘youth development programs’’ means pro22 grams, services, supports, opportunities, and activi23 ties that prepare youth to contribute to their com24 munities and to meet the challenges of adolescence 

25 and adulthood through a structured, progressive se-
883

•HR 936 IH 

1 ries of activities and experiences (in contrast to def2 icit-based approaches that focus solely on youth 

3 problems) that—

4 (A) help the youth obtain social, emotional, 

5 ethical, physical, and cognitive competencies; 

6 and 

7 (B) address the broader developmental re8 sources all children and youth need, such as the 

9 core resources described in section 9002. 

10 (20) YOUTH-SERVING ORGANIZATION.—The 

11 term ‘‘youth-serving organization’’ means a public or 

12 private organization with a primary focus on pro13 viding youth development programs, or health, men14 tal health, fitness, education, workforce preparation, 

15 substance abuse prevention, child welfare, evaluation 

16 and assessment, parenting, arts and cultural engage17 ment, recreation, teen pregnancy prevention, reha18 bilitative, or residential services to youth. 

19 CHAPTER 2—GRANTS FOR STATE AND 

20 COMMUNITY PROGRAMS 

21 SEC. 9101. PURPOSE. 

22 The purpose of this chapter is to encourage and as23 sist States and youth development consortia in mobilizing 

24 and supporting communities in planning, implementing, 

25 and being accountable for strategies that link community-
884

•HR 936 IH 

1 based organizations, local government, volunteer centers, 

2 schools, community colleges, colleges, universities, faith3 based organizations, businesses, parks and recreation 

4 agencies, libraries and museums, arts and cultural organi5 zations, other youth-serving organizations, and other seg6 ments of the community to ensure that all youth have ac7 cess to, and participate in, the full array of core resources 

8 described in section 9002. 

9 SEC. 9102. AUTHORIZATION OF APPROPRIATIONS. 

10 There are authorized to be appropriated to carry out 

11 this chapter $500,000,000 for fiscal year 2004, 

12 $750,000,000 for fiscal year 2005, $1,000,000,000 for fis13 cal year 2006, $1,500,000,000 for fiscal year 2007, and 

14 $2,000,000,000 for fiscal year 2008. 

15 SEC. 9103. ALLOTMENTS TO STATES. 

16 (a) RESERVATIONS.—From sums appropriated under 

17 section 9102 for each fiscal year, the Associate Commis18 sioner shall reserve—

19 (1) 94 percent of the sums for allotments to 

20 States to enable the States to make allocations to 

21 youth development consortia and to perform State 

22 activities; 

23 (2) 1 percent of the sums for grants to Native 

24 American organizations to carry out activities con25 sistent with the objectives of this chapter; 
885

•HR 936 IH 

1 (3) 1 percent of the sums for grants to outlying 

2 areas to carry out activities consistent with the ob3 jectives of this chapter; 

4 (4) 3 percent of the sums for Federal competi5 tive grant programs aimed at demonstrating ways to 

6 respond, through programs that meet the require7 ments of subsection (b), to the special developmental 

8 needs of youth—

9 (A) in areas with high concentrations of 

10 poverty; 

11 (B) in rural areas; 

12 (C) in situations in which the youth are at 

13 higher risk due to abuse, neglect, disconnection 

14 from family, disconnection from school, or an15 other community risk factor; 

16 (D) in alternative educational settings or 

17 who have been expelled or suspended from 

18 school; 

19 (E) in correctional facilities and other out20 of-home residential settings; 

21 (F) with disabilities; and 

22 (G) coming from homes where the primary 

23 languages spoken are not English; and 

24 (5) 1 percent of the sums for the Associate 

25 Commissioner to carry out planning, policy develop-
886

•HR 936 IH 

1 ment, administration, and accountability duties and 

2 activities under this chapter and under chapter 3 of 

3 this subtitle. 

4 (b) USE OF FUNDS.—For each fiscal year for which 

5 a State receives a State allotment, the State shall ensure 

6 that funds made available through the allotment, and used 

7 by the State or a youth development consortium in the 

8 State to fund youth development programs, shall be used 

9 for the purpose of conducting community-based youth de10 velopment programs that—

11 (1) recognize the primary role of the family in 

12 youth development in order to strengthen families; 

13 (2) promote the involvement of youth (including 

14 program participants), parents, grandparents, and 

15 guardians, and other community members in the 

16 planning and implementation of the youth develop17 ment programs; 

18 (3) coordinate services with other entities pro19 viding youth and family services in the community; 

20 (4) eliminate barriers, such as a lack of trans21 portation, cost, and service delivery location, to the 

22 accessibility of youth development services; 

23 (5) provide, directly or through a written con24 tract, a broad variety of accessible youth develop25 ment programs for youth that are designed to assist 
887

•HR 936 IH 

1 youth in acquiring skills, competencies, and connec2 tions that are necessary to make a successful transi3 tion from childhood to adulthood; 

4 (6) incorporate activities that foster relation5 ships between positive adult role models and youth, 

6 provide age-appropriate activities, and provide activi7 ties that engage youth in, and promote youth devel8 opment, including activities such as—

9 (A) youth clubs, character development ac10 tivities, mentoring, community service, civic en11 gagement, leadership development, community 

12 action, recreation, and literacy and educational 

13 tutoring; 

14 (B) sports, workforce readiness activities, 

15 peer counseling, and fine and performing arts; 

16 and 

17 (C) camping and environmental or science 

18 education, arts and cultural engagement, risk 

19 avoidance programs, academic enrichment, and 

20 participant-defined special interest group activi21 ties, courses, or clubs; and 

22 (7) employ strong outreach efforts to engage 

23 the participation of a wide range of youth, families, 

24 and service providers. 

25 (c) ALLOTMENTS.—
888

•HR 936 IH 

1 (1) IN GENERAL.—Except as provided in para2 graph (2), from sums reserved under subsection 

3 (a)(1), the Associate Commissioner shall allot to 

4 each State the sum (referred to in this chapter as 

5 the ‘‘State allotment’’) of—

6 (A) an amount that bears the same ratio 

to 1 7 ⁄2 of the reserved sums as the number of in8 dividuals who are not younger than age 10 and 

9 not older than age 19 in the State bears to the 

10 number of such individuals in all the States; 

11 and 

12 (B) an amount that bears the same ratio 

to 1 13 ⁄2 of the reserved sums as the number of 

14 youth in poverty as measured by the most re15 cent decennial and annual demographic pro16 gram data available from the Bureau of the 

17 Census in the State bears to the number of 

18 such youth in all the States. 

19 (2) STATE MINIMUM.—No State shall be allot20 ted less than 0.40 percent of the reserved sums for 

21 a fiscal year. 

22 (3) DETERMINATIONS.—For purposes of this 

23 subsection, the number of individuals who are not 

24 younger than age 10 and not older than age 19 in 

25 any State and in all the States, and the number of 
889

•HR 936 IH 

1 youth in poverty in any State and in all the States, 

2 shall be determined by the Associate Commissioner 

3 on the basis of the most recent decennial and annual 

4 demographic program data available from the Bu5 reau of the Census, and other reliable demographic 

6 data satisfactory to the Associate Commissioner. 

7 (d) WITHHOLDING.—

8 (1) IN GENERAL.—If the Associate Commis9 sioner finds that any State has failed to meet the 

10 State plan requirements of section 9105 or the allo11 cation requirements of section 9106(b), the Asso12 ciate Commissioner shall withhold the State allot13 ment from such State. 

14 (2) DISBURSAL.—The Associate Commissioner 

15 shall disburse the funds withheld directly to any en16 tity that is a public or private institution, organiza17 tion, or agency, or unit of general purpose local gov18 ernment of such State that submits an approved 

19 plan described in section 9108, if the plan includes 

20 an agreement that the entity will—

21 (A) make available (directly or through do22 nations from public or private entities) non23 Federal contributions, in cash or in kind, in an 

24 amount equal to a percentage determined for 

25 the State of the funds; and 
890

•HR 936 IH 

1 (B) comply with the requirements of this 

2 subtitle that apply to States receiving State al3 lotments under this section. 

4 (e) REALLOTMENTS.—Whenever the Associate Com5 missioner determines that any amount allotted to a State 

6 for a fiscal year under this section will not be used by 

7 such State for such fiscal year to carry out the purpose 

8 for which the allotment was made, the Associate Commis9 sioner shall make such amount available for carrying out 

10 such purpose to 1 or more other States to the extent the 

11 Associate Commissioner determines that such other States 

12 will be able to use such amount for carrying out such pur13 pose. 

14 SEC. 9104. STATE YOUTH DEVELOPMENT AGENCIES AND 

15 YOUTH DEVELOPMENT AREAS. 

16 (a) STATE YOUTH DEVELOPMENT AGENCIES.—In 

17 order for a State to be eligible to receive a State allotment 

18 under this chapter—

19 (1) the State shall, in accordance with regula20 tions issued by the Associate Commissioner, des21 ignate a State agency as the sole State agency to—

22 (A) be primarily responsible for the plan23 ning, policy development, administration, co24 ordination, priority setting, accountability, and 
891

•HR 936 IH 

1 evaluation of all State activities related to the 

2 objectives of this subtitle; 

3 (B) coordinate its activities with other 

4 State, local, and private agencies, offices, and 

5 programs, including—

6 (i) State Commissions on National 

7 and Community Service established under 

8 section 178 of the National and Commu9 nity Service Act of 1990 (42 U.S.C. 

10 12638); 

11 (ii) entities carrying out programs 

12 under the Runaway and Homeless Youth 

13 Act (42 U.S.C. 5701 et seq.) and other 

14 programs under the Juvenile Justice and 

15 Delinquency Prevention Act of 1974 (42 

16 U.S.C. 5601 et seq.); 

17 (iii) entities carrying out independent 

18 living programs; 

19 (iv) entities carrying out child welfare 

20 programs; 

21 (v) youth councils established under 

22 section 117(h) of the Workforce Invest23 ment Act of 1998 (29 U.S.C. 2832(h)); 

24 (vi) entities carrying out related ac25 tivities under the Elementary and Sec-
892

•HR 936 IH 

1 ondary Education Act of 1965 (20 U.S.C. 

2 6301 et seq.); and 

3 (vii) entities carrying out literacy ac4 tivities under the Museum and Library 

5 Services Act of 1996 (20 U.S.C. 9101 et 

6 seq.); 

7 (C) develop a State youth development 

8 plan to be submitted to the Associate Commis9 sioner for approval pursuant to section 9105; 

10 (D) provide assurances that the State will 

11 solicit and take into account, with regard to 

12 general policy related to the development and 

13 the administration of the State plan for any fis14 cal year, the views of youth who are the tar15 geted and actual recipients of services provided 

16 for in the plan; 

17 (E) administer the State plan; 

18 (F) develop and disseminate a uniform for19 mat for use by youth development consortia in 

20 developing area plans; 

21 (G) divide the State into distinct youth de22 velopment areas, after considering the views of23 fered by units of general purpose local govern24 ment and appropriate public or private agencies 

25 and organizations in the State, in accordance 
893

•HR 936 IH 

1 with regulations issued by the Associate Com2 missioner; 

3 (H) ensure that each unit of general pur4 pose local government of the State is included 

5 in a youth development area; 

6 (I) in accordance with guidelines issued by 

7 the Associate Commissioner, make allocations 

8 to youth development consortia pursuant to sec9 tion 9106(b); 

10 (J) provide assurances that Federal funds 

11 made available under this chapter for the State 

12 for any period will be used to supplement, and 

13 not supplant, the State, local, and other funds 

14 that would in the absence of such Federal funds 

15 be made available for the youth development 

16 programs described in this chapter; 

17 (K) compile reports from youth develop18 ment consortia, including outcome and utiliza19 tion data developed under section 9301(1) and 

20 evaluation information regarding youth develop21 ment programs funded under this chapter and 

22 provide an annual report based on the compila23 tion to the Associate Commissioner; 

24 (L) serve as an effective and visible advo25 cate for youth in the State government, by ac-
894

•HR 936 IH 

1 tively reviewing and commenting on all State 

2 plans, policies, and programs affecting youth; 

3 (M) provide public forums for discussion 

4 on issues regarding youth, publicize the core re5 sources youth need, and obtain information re6 lating to ensuring all youth have access to, and 

7 participate in, the full array of core resources 

8 described in section 9002, by conducting public 

9 hearings, and by conducting or sponsoring con10 ferences, workshops, and other similar meet11 ings; 

12 (N) develop mechanisms to foster collabo13 ration and resolve administrative and pro14 grammatic conflicts between State programs 

15 that would be barriers to parents, grand16 parents, and guardians, community-based, 

17 youth-serving, and youth development organiza18 tions, local government entities, State govern19 ment entities, tribes, older adult organizations, 

20 faith-based organizations, and organizations 

21 supporting youth involved in community service 

22 and civic participation, related to the coordina23 tion of services and funding for programs pro24 moting access to, and participating in, the full 
895

•HR 936 IH 

1 array of core resources described in section 

2 9002; and 

3 (O) consult with and assist local govern4 ments and community-based organizations with 

5 respect to barriers the governments encounter 

6 related to the coordination of services and fund7 ing for youth development and youth services 

8 programs. 

9 (b) YOUTH DEVELOPMENT AREA.—

10 (1) UNIT OF GENERAL PURPOSE LOCAL GOV11 ERNMENT.—

12 (A) CRITERIA.—In carrying out subsection 

13 (a)(1), the State agency may designate as a 

14 youth development area any unit of general 

15 purpose local government. 

16 (B) HEARING.—In any case in which a 

17 unit of general purpose local government ap18 plies to the State agency to be designated as a 

19 youth development area under this paragraph, 

20 the State agency shall, upon request, provide an 

21 opportunity for a hearing to such unit of gen22 eral purpose local government. 

23 (2) REGION.—The State agency may designate 

24 as a youth development area under subsection (a)(1) 

25 any region in the State that includes 1 or more units 
896

•HR 936 IH 

1 of general purpose local government if the State 

2 agency determines that the designation of such a re3 gional youth development area is necessary for, and 

4 will enhance, the effective administration of the 

5 youth development programs authorized by this 

6 chapter. 

7 (3) ADDITIONAL AREAS.—The State agency 

8 may include in any youth development area des9 ignated under subsection (a)(1) such additional 

10 areas, adjacent to a unit of general purpose local 

11 government, as the State agency determines are nec12 essary for, and will enhance, the effective adminis13 tration of the youth development programs author14 ized by this chapter. 

15 (4) INDIAN RESERVATIONS.—The State agency, 

16 in carrying out subsection (a)(1), shall to the extent 

17 practicable include all portions of an Indian reserva18 tion in a single youth development area. 

19 SEC. 9105. STATE YOUTH DEVELOPMENT PLANS. 

20 (a) IN GENERAL.—To be eligible to receive a State 

21 allotment under this title, a State shall develop, prepare, 

22 and submit to the Associate Commissioner a State youth 

23 development plan, for a 2- or 3-year period, at such time, 

24 in such manner, and meeting such criteria as the Asso25 ciate Commissioner may by regulation prescribe, and shall 
897

•HR 936 IH 

1 make such annual revisions as may be necessary to the 

2 plan. 

3 (b) CONTENTS.—Each such State plan shall contain 

4 assurances that the plan is based on area youth develop5 ment plans developed under section 9108 by youth devel6 opment consortia in the State and describes the State’s 

7 intended use of its allotment for State discretionary grants 

8 authorized in section 9106(a)(1)(C). 

9 SEC. 9106. DISTRIBUTION OF FUNDS FOR STATE ACTIVI10 TIES AND AREA ALLOCATIONS. 

11 (a) IN GENERAL.—From a State allotment made 

12 under this chapter for any fiscal year—

13 (1)(A) the State agency may use such amount 

14 as the State agency determines to be appropriate, 

15 but not more than 7 percent, for the purposes of 

16 subparagraphs (B) and (C); 

17 (B) the State agency may use such amount as 

18 the State agency determines to be appropriate, but 

19 not more than 4 percent of the State allotment, for 

20 paying the cost of—

21 (i) reviewing area youth development plans 

22 and distributing funds to youth development 

23 consortia; 
898

•HR 936 IH 

1 (ii) assisting youth development consortia 

2 in carrying out activities under this chapter; 

3 and 

4 (iii) monitoring and evaluating activities 

5 funded through this subtitle by youth develop6 ment consortia; and 

7 (C) the State agency may use such amount as 

8 the State agency determines to be appropriate, but 

9 not less than 3 percent and not more than 7 percent 

10 of the State allotment, for making State discre11 tionary grants to respond to the special develop12 mental needs of youth—

13 (i) in areas with high concentrations of 

14 poverty; 

15 (ii) in rural areas; 

16 (iii) in situations in which the youth are at 

17 greater risk due to abuse, neglect, disconnection 

18 from family, disconnection from school, or an19 other community risk factor; 

20 (iv) in alternative educational settings or 

21 who have been expelled or suspended from 

22 school; 

23 (v) in correctional facilities and other out24 of-home residential settings; 

25 (vi) with disabilities; and 
899

•HR 936 IH 

1 (vii) coming from homes where the primary 

2 languages spoken are not English; and 

3 (2) the State agency shall use the remainder of 

4 such allotment to make allocations under subsection 

5 (b) to youth development consortia to pay for the 

6 cost of youth development programs under this 

7 chapter that are specified in area youth development 

8 plans that—

9 (A) are developed through a comprehensive 

10 and coordinated system of planning; 

11 (B) have been approved by the consortia 

12 involved; 

13 (C) are submitted by the consortia for 

14 their respective youth development areas; and 

15 (D) have been approved by the State agen16 cy. 

17 (b) ALLOCATIONS AND COMPETITIVE GRANTS.—

18 (1) ALLOCATIONS.—Except as provided in 

19 paragraph (2), from the remainder of the State al20 lotment described in subsection (a)(2), the State 

21 agency, using the best available data, shall allocate 

22 for each youth development area in the State the 

23 sum of—

24 (A) an amount that bears the same ratio 

to 1 25 ⁄2 of the remainder as the number of indi-
900

•HR 936 IH 

1 viduals who are not younger than age 10 and 

2 not older than age 19 in the youth development 

3 area bears to the number of such individuals in 

4 the State; and 

5 (B) an amount that bears the same ratio 

to 1 6 ⁄2 of the remainder as the number of youth 

7 in poverty as measured by the most recent de8 cennial and annual demographic program data 

9 available from the Bureau of the Census in the 

10 youth development area bears to the number of 

11 such youth in the State. 

12 (2) COMPETITIVE GRANTS.—

13 (A) IN GENERAL.—For any fiscal year for 

14 which the amount appropriated to carry out 

15 this subtitle is less than $150,000,000, the 

16 State agency shall use the remainder of the 

17 State allotment described in subsection (a)(2) 

18 to make competitive grants to consortia. 

19 (B) RESPONSIBILITIES.—A consortium 

20 that receives such a grant shall be considered to 

21 have received an allocation under this sub22 section, and shall comply with the requirements 

23 of this subtitle relating to funds received 

24 through such an allocation. A State that makes 

25 such grants shall be considered to have com-
901

•HR 936 IH 

1 plied with the requirements of this subsection 

2 relating to making allocations. 

3 (c) NON-FEDERAL SHARE.—A State that uses Fed4 eral funds provided under this chapter to carry out the 

5 activities described in section 9106(a)(1)(B) shall make 

6 available (directly or through donations from public or pri7 vate entities) non-Federal contributions in cash in an 

8 amount equal to not less than $1 for every $1 of the Fed9 eral funds. 

10 (d) REALLOTMENTS.—If the State agency does not 

11 receive from a youth development consortium a letter of 

12 intent declaring the consortium’s intention to submit an 

13 area youth development plan to the State agency, within 

14 120 days of the State agency’s announcement of the avail15 ability of allocations under subsection (b) to youth devel16 opment areas to pay for the cost of youth development 

17 programs under this chapter, the State agency shall deter18 mine that any amount allotted to the youth development 

19 area for a fiscal year under this section will not be used 

20 by such area for carrying out the purpose for which the 

21 allotment was made and shall make such amount available 

22 for carrying out such purpose to 1 or more other youth 

23 development areas to the extent the State agency deter24 mines that such other areas will be able to use such 

25 amount for carrying out such purpose. 
902

•HR 936 IH 

1 SEC. 9107. YOUTH DEVELOPMENT CONSORTIA. 

2 (a) YOUTH DEVELOPMENT CONSORTIA.—

3 (1) CONVENED.—

4 (A) CONVENING UNITS OF GENERAL PUR5 POSE LOCAL GOVERNMENT AND CONVENING

6 COMMUNITY-BASED AGENCIES.—Except as oth7 erwise provided in this paragraph, in order to 

8 receive funds from a State pursuant to this 

9 chapter, a youth development area shall have a 

10 youth development consortium convened jointly 

11 by the chief executive officer of a convening 

12 community-based agency in the area and the 

13 chief executive officer of the convening unit of 

14 general purpose local government in the area. 

15 (B) PRIVATE AGENCIES AND LOCAL GOV16 ERNMENTS.—In the event that a convening 

17 community-based agency is not represented in 

18 the youth development area, or the chief execu19 tive officer of a convening community-based 

20 agency in the area is unwilling or unable to 

21 participate in jointly convening the consortium, 

22 the State agency, after consideration of the 

23 views offered by units of general purpose local 

24 government and by nonprofit agencies and or25 ganizations in such area, shall designate a pri26 vate nonprofit agency or organization in the 
903

•HR 936 IH 

1 area to convene the consortium jointly with the 

2 chief executive officer of the convening unit of 

3 general purpose local government in the area. 

4 (C) LOCAL FUNDING AND COORDINATING

5 AGENCIES AND PUBLIC ENTITIES.—In the event 

6 that a chief executive officer of the convening 

7 unit of general purpose local government in the 

8 youth development area is unwilling or unable 

9 to participate in jointly convening the consor10 tium, the State agency, after consideration of 

11 the views offered by units of general purpose 

12 local government and by youth-serving agencies 

13 and organizations in such area, shall designate 

14 an executive official of a public entity in the 

15 area to convene the consortium jointly with the 

16 chief executive officer of a convening commu17 nity-based agency and any other chief executive 

18 officers of units of general purpose local govern19 ment in the area. 

20 (D) EXISTING ENTITY.—An existing entity 

21 in the youth development area may serve as the 

22 consortium if—

23 (i) such entity’s membership meets 

24 the requirements for a consortium or is 

25 adapted to meet such requirements; and 
904

•HR 936 IH 

1 (ii) such entity is approved by the 

2 State agency. 

3 (E) PUBLIC NOTICE.—A consortium may 

4 not be convened under this paragraph before 

5 the expiration of the 30-day period beginning 

6 on the date the particular convening authorities 

7 described in this paragraph provide such rea8 sonable public notice of the date and time of 

9 the first convening of the consortium as is suffi10 cient to inform all units of local general purpose 

11 government, and nonprofit youth-serving and 

12 youth development agencies, of such first con13 vening. 

14 (2) CHAIRPERSONS.—The consortium shall 

15 elect 2 chairpersons from among its membership. 

16 One chairperson shall be an officer or official of a 

17 general unit of local purpose government and 1 

18 chairperson shall be an officer or official from a non19 profit youth-serving and youth development agency. 

20 (3) COMPOSITION.—A consortium shall consist 

21 of an equal number of local representatives from 

22 each of the following 3 groups: 

23 (A) A group comprised of individuals 

24 under age 20 at the time of service on the con25 sortium. 
905

•HR 936 IH 

1 (B) A group comprised of representatives 

2 of—

3 (i) private youth-serving and youth 

4 development organizations; 

5 (ii) public youth-serving and youth de6 velopment organizations; 

7 (iii) organizations supporting youth 

8 involved in community service and civic 

9 participation; and 

10 (iv) organizations providing or oper11 ating local youth correctional programs or 

12 facilities and local law enforcement agen13 cies. 

14 (C) A group comprised of representatives 

15 of—

16 (i) local elected officials; 

17 (ii) educational entities, including 

18 local elementary and secondary schools, 

19 community colleges, colleges, and univer20 sities; 

21 (iii) libraries and museums; 

22 (iv) parks and recreation agencies; 

23 (v) volunteer centers; 

24 (vi) philanthropic organizations, in25 cluding community foundations; 
906

•HR 936 IH 

1 (vii) businesses and employee organi2 zations; 

3 (viii) faith-based organizations; 

4 (ix) health and mental health agen5 cies; 

6 (x) parents, grandparents, and guard7 ians, including at least 1 parent, grand8 parent, or guardian of a youth who has 

9 participated in an activity described in sec10 tion 9112(b) within the 3-year period pre11 ceding service on the consortium; 

12 (xi) if a military installation is located 

13 in the youth development area, personnel 

14 of the installation; and 

15 (xii) arts and cultural organizations. 

16 (4) RESPONSIBILITIES.—Each consortium in 

17 each youth development area shall—

18 (A) submit to the State agency within 120 

19 days of the State agency’s announcement of the 

20 availability of allocations under section 9106(b) 

21 to youth development areas to pay for the cost 

22 of youth development programs under this 

23 chapter, a letter of intent declaring the consor24 tium’s intention to submit an area youth devel25 opment plan to the State agency; 
907

•HR 936 IH 

1 (B) prepare, submit, implement, and evalu2 ate the area plan described in section 9108; 

3 (C) designate for the youth development 

4 area a fiscal agent that agrees not to seek an 

5 award of a grant, or to enter into a contract, 

6 to carry out youth development programs under 

7 the area plan; and 

8 (D) compile reports from entities carrying 

9 out youth development programs approved by 

10 the consortium for funding under this subtitle, 

11 including outcome and utilization data devel12 oped under section 9301(1) and evaluation in13 formation regarding youth development pro14 grams funded under this chapter, and provide 

15 an annual report based on the compilation to 

16 the State agency. 

17 (b) COMMUNITY MOBILIZATION EXPENSES.—The 

18 fiscal agent and other entities as determined appropriate 

19 by the consortium may use such amount as the consortium 

20 determines to be appropriate, but not more than 8 percent 

21 of the area allotment, for paying the cost of—

22 (1) generating additional commitments of cash 

23 and in-kind resources; 

24 (2) administration; 

25 (3) planning; 
908

•HR 936 IH 

1 (4) monitoring; 

2 (5) evaluation; 

3 (6) training; and 

4 (7) technical assistance. 

5 SEC. 9108. AREA YOUTH DEVELOPMENT PLANS. 

6 (a) IN GENERAL.—Each consortium for a youth de7 velopment area shall, in order to be approved by the State 

8 agency and receive an allocation under this chapter, de9 velop, prepare, and submit to the State agency a single 

10 area youth development plan, approved by the consortium, 

11 for the youth development area, at such time, in such 

12 manner, and meeting such criteria as the State agency 

13 may prescribe. Such plan shall be for a 2- or 3-year period 

14 with such annual revisions as may be necessary. Each 

15 such plan shall be based upon a uniform format for area 

16 plans in the State prepared in accordance with section 

17 9105(b). 

18 (b) CONTENTS.—Each such plan shall—

19 (1) provide specific outcome objectives for youth 

20 development programs to be carried out in the youth 

21 development area, based on an assessment of needs 

22 and resources, sufficient to ensure that all youth in 

23 the area have access and participate through a com24 prehensive and coordinated system to the full array 

25 of core resources described in section 9002; 
909

•HR 936 IH 

1 (2) provide an assurance that, in awarding 

2 grants and contracts to entities to implement the 

3 area plan to provide youth with access to core re4 sources described in section 9002 through youth de5 velopment programs, the agency will give priority to 

6 entities as described in section 9110(b); 

7 (3) provide that not less than 30 percent of the 

8 funds allocated under this chapter for the youth de9 velopment area will be used for youth development 

10 programs that respond to the special developmental 

11 needs of youth—

12 (A) in areas with high concentrations of 

13 poverty; 

14 (B) in rural areas; 

15 (C) in situations in which the youth are at 

16 higher risk due to abuse, neglect, disconnection 

17 from family, disconnection from school, or an18 other community risk factor; 

19 (D) in alternative educational settings or 

20 who have been expelled or suspended from 

21 school; 

22 (E) in correctional facilities and other out23 of-home residential settings; 

24 (F) with disabilities; and 
910

•HR 936 IH 

1 (G) coming from homes where the primary 

2 languages spoken are not English; 

3 (4) provide assurances that youth engaged in 

4 youth development programs carried out under the 

5 area plan will be treated equitably; 

6 (5) contain strategies for mobilizing and coordi7 nating community resources to meet the outcome ob8 jectives; 

9 (6) describe activities for which funds made 

10 available through the allocation will be used to fill 

11 gaps between unmet needs and available resources; 

12 (7) describe the inclusive process used by the 

13 consortium to engage all segments of the commu14 nities in the youth development area in developing 

15 the area plan; 

16 (8) provide measures of program effectiveness 

17 to be used in evaluating the progress of the youth 

18 development programs approved by the consortium 

19 in the area in ensuring access for all youth to the 

20 full array of core resources described in section 

21 9002, including specific measures for providing ac22 cess to such resources for youth with special develop23 mental needs, and including specific measures of the 

24 participation of youth; 
911

•HR 936 IH 

1 (9) describe how local requirements for pro2 viding matching funds will be met, how resources 

3 will be leveraged, and the uses to which matching 

4 funds and leveraged resources will be applied, in car5 rying out the area plan; 

6 (10) provide for the establishment and mainte7 nance of outreach sufficient to ensure that youth 

8 and their families in the youth development area are 

9 aware of youth development programs providing ac10 cess to the core resources described in section 9002, 

11 and to ensure that the participation of youth is sus12 tained; 

13 (11) provide that the consortium will—

14 (A) conduct periodic evaluations of, and 

15 public hearings on, activities carried out under 

16 the area plan; 

17 (B) furnish technical assistance to entities 

18 carrying out youth development programs under 

19 this title within the youth development area; 

20 (C) establish effective and efficient proce21 dures for the coordination of—

22 (i) entities carrying out youth develop23 ment programs under this chapter within 

24 the youth development area; and 
912

•HR 936 IH 

1 (ii) entities carrying out other Fed2 eral, State, local, and private programs for 

3 youth within the youth development area; 

4 and 

5 (D) take into account in connection with 

6 matters of general policy arising in the develop7 ment and administration of the area plan, the 

8 views of youth who have participated in youth 

9 development programs or who desire to partici10 pate in youth development programs pursuant 

11 to the plan; and 

12 (12) provide for the utilization of entities car13 rying out volunteer service centers and organizations 

14 supporting youth in community service and civic 

15 participation in the area to—

16 (A) encourage and enlist the services of 

17 local volunteer groups to provide assistance and 

18 services appropriate to the unique develop19 mental needs of youth in the youth development 

20 area; 

21 (B) encourage, organize, and promote 

22 youth to serve as volunteers to communities in 

23 the area; and 

24 (C) promote recognition of the contribution 

25 made by youth volunteers to youth development 
913

•HR 936 IH 

1 programs administered in the youth develop2 ment area. 

3 SEC. 9109. GRANTS AND CONTRACTS TO ELIGIBLE ENTI4 TIES. 

5 (a) REQUEST FOR PROPOSALS.—In implementing an 

6 area plan, once the plan has been submitted to and ap7 proved by the State agency, a consortium shall issue a re8 quest for proposals to award grants and contracts to eligi9 ble entities to carry out youth development programs 

10 under the plan. 

11 (b) GRANTS AND CONTRACTS.—The consortium shall 

12 use the funds made available through the allocation made 

13 to the consortium under this chapter to award grants and 

14 contracts on a competitive basis to eligible entities to pay 

15 for the Federal share of the cost of carrying out the youth 

16 development programs. Not more than 50 percent of the 

17 funds made available through the allocation made to the 

18 consortium may be awarded to a single recipient of a grant 

19 or contract unless the recipient is a coalition as described 

20 in section 9110(a)(1). 

21 (c) CONFLICT PROVISION.—The bylaws of the con22 sortium shall contain a conflict of interest provision that 

23 requires any member of the consortium or employee of the 

24 consortium who has a conflict of interest regarding any 

25 matter related to awarding a grant or contract under sub-
914

•HR 936 IH 

1 section (b) to declare the conflict and refrain from voting 

2 on the award. 

3 (d) PERIOD.—The consortium may award such a 

4 grant or contract for a period of not more than 4 years. 

5 The consortium may terminate the funding made available 

6 through such grant or contract during such grant or con7 tract period for a youth development program if insuffi8 cient Federal funds are appropriated under section 9102 

9 to permit continuation of funding. 

10 (e) FEDERAL SHARE.—

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

12 cost of carrying out a program described in this sec13 tion shall be—

14 (A) 80 percent for the first and second 

15 year for which the program receives funding 

16 under this section; 

17 (B) 70 percent for the third such year; 

18 (C) 60 percent for the fourth such year; 

19 and 

20 (D) 50 percent for any subsequent year. 

21 (2) NON-FEDERAL SHARE.—An entity that re22 ceives a grant or contract under this section may 

23 provide for the non-Federal share of the cost from 

24 non-Federal sources (which may include State or 
915

•HR 936 IH 

1 local public sources) in cash or in kind, fairly evalu2 ated, including facilities, equipment, or services. 

3 (3) ADJUSTMENTS.—A State agency may ad4 just the Federal share of the cost that applies to an 

5 entity that receives a grant or contract under this 

6 section from a consortium, in the event that the con7 sortium demonstrates significant economic need suf8 ficient to cause difficulties in area plan implementa9 tion. 

10 SEC. 9110. ELIGIBLE ENTITIES. 

11 (a) IN GENERAL.—To be eligible to receive a grant 

12 or contract under section 9109, an entity shall be—

13 (1) a coalition of community-based youth-serv14 ing or youth development organizations, public agen15 cies, health and mental health agencies, education 

16 entities including community colleges, colleges, and 

17 universities, libraries and museums, parks and recre18 ation agencies, arts and cultural organizations, vol19 unteer centers, faith-based organizations, older adult 

20 organizations, or organizations supporting youth in21 volved in community service and civic participation; 

22 or 

23 (2) a community-based public or private youth24 serving or youth development organization. 
916

•HR 936 IH 

1 (b) PRIORITY.—In awarding grants and contracts 

2 under section 9109, a consortium shall give priority to—

3 (1) existing entities that carry out youth devel4 opment programs or health, mental health, fitness, 

5 education, workforce preparation, substance abuse 

6 prevention, child welfare, evaluation and assessment, 

7 parenting, recreation, arts and cultural engagement, 

8 teen pregnancy prevention, rehabilitative, or residen9 tial services to youth (as of the date of submission 

10 of the area plan) that use proven methods and mate11 rials supported by evaluation and can demonstrate 

12 effective service delivery and sustainability; and 

13 (2) entities that submit applications under sec14 tion 9111 that—

15 (A) evidence collaboration among commu16 nity agencies in providing services under an 

17 area plan; 

18 (B) are outcome driven; 

19 (C) evidence youth leadership opportuni20 ties; 

21 (D) evidence sustainable, continuous, and 

22 sequential activities for youth; 

23 (E) evidence strong management practices; 

24 (F) evidence strong workforce training and 

25 retention efforts; and 
917

•HR 936 IH 

1 (G) evidence a commitment to evaluation 

2 or other methods of continual reflection on im3 proving quality and efficacy. 

4 (c) ADMINISTRATIVE EXPENSES.—An entity that re5 ceives a grant or contract under section 9109 may use 

6 up to 5 percent of the funds received through the grant 

7 or contract for the cost of administrative expenses. 

8 (d) LIMITATION.—A for-profit entity that receives a 

9 grant or contract under section 9109 may not use funds 

10 made available through the grant or contract for the pur11 poses of generating additional profits. 

12 SEC. 9111. APPLICATIONS. 

13 To be eligible to receive a grant or contract under 

14 section 9109 to carry out youth development programs 

15 under an area plan, an entity shall submit an application 

16 to the consortium for the area at such time, in such man17 ner, and containing such information as the consortium 

18 and the appropriate State agency, may reasonably require. 

19 Such application shall include specific descriptions of how 

20 the entity will implement section 9112(a). 

21 SEC. 9112. YOUTH DEVELOPMENT PROGRAMS. 

22 (a) ACCESS.—An eligible entity that receives a grant 

23 or contract under section 9109 to carry out a youth devel24 opment program shall implement a program that pro25 motes, either directly, through a contract, or indirectly 
918

•HR 936 IH 

1 through collaboration with other community entities, ac2 cess to the full array of core resources described in section 

3 9002. 

4 (b) ACTIVITIES.—An eligible entity that receives a 

5 grant or contract under section 9109 to carry out a youth 

6 development program may include among eligible activities 

7 provided through the program, which are part of an effort 

8 to provide access to, and participation in, the full array 

9 of core resources described in section 9002—

10 (1) character development and ethical enrich11 ment activities; 

12 (2) mentoring activities, including one-to-one 

13 relationship building and tutoring; 

14 (3) provision and support of community youth 

15 centers and clubs; 

16 (4) nonschool hours, weekend, and summer pro17 grams and camps; 

18 (5) sports, recreation, and other activities pro19 moting physical fitness and teamwork; 

20 (6) services that promote health and healthy de21 velopment and behavior on the part of youth, includ22 ing risk avoidance programs; 

23 (7) academic enrichment, peer counseling and 

24 teaching, and literacy activities; 
919

•HR 936 IH 

1 (8) camping, environmental, and science edu2 cation; 

3 (9) arts and cultural engagement, including 

4 through music, fine and performing arts; 

5 (10) workforce preparation, youth entrepreneur6 ship, and technological and vocational skill building; 

7 (11) opportunities for community service and 

8 community action aimed at involving youth in pro9 viding the full array of core resources described in 

10 section 9002 to other youth, including opportunities 

11 provided in conjunction with activities being per12 formed by entities under the National and Commu13 nity Service Act of 1990 (42 U.S.C. 12501 et seq.); 

14 (12) opportunities that engage youth in civic 

15 participation and as leaders or partners in decision16 making, especially opportunities with respect to pro17 grams and strategies that seek to offer access to, 

18 and participation in, the full array of core resources 

19 described in section 9002; 

20 (13) special interest group activities or courses, 

21 including activities or courses regarding video pro22 duction, cooking, gardening, pet care, photography, 

23 and other youth-identified interests; 
920

•HR 936 IH 

1 (14) efforts focused on building the capacity of 

2 community-based youth workers, utilizing commu3 nity colleges, colleges, and universities; 

4 (15) public and private youth led programs, in5 cluding such programs provided by youth-serving or 

6 youth development organizations; 

7 (16) transportation services to foster the par8 ticipation of youth in youth development programs 

9 in the community involved; 

10 (17) subsidies for youth that meet the income 

11 eligibility guidelines for a free or reduced price lunch 

12 under section 9(b) of the Richard B. Russell Na13 tional School Lunch Act (42 U.S.C. 1758(b)), if the 

14 provision of such a subsidy allows a youth to fully 

15 participate in a youth development program that is 

16 part of a strategy to promote access to, and partici17 pation in, the full array of core resources described 

18 in section 9002; 

19 (18) training or group counseling to assist 

20 youth, by State certified counselors, psychologists, 

21 social workers, or other State licensed or certified 

22 mental health professionals who are qualified under 

23 State law to provide such services to youth; and 

24 (19) referrals to State certified counselors, psy25 chologists, social workers, or other State licensed or 
921

•HR 936 IH 

1 certified mental health professionals or health pro2 fessionals who are qualified under State law to pro3 vide such services to youth. 

4 (c) INFORMATION.— An eligible entity that receives 

5 a grant or contract under section 9109 shall be considered 

6 to be a person directly connected with the administration 

7 of a Federal education program for purposes of section 

8 9(b)(2)(C)(iii)(II)(aa) of the Richard B. Russell National 

9 School Lunch Act (7 U.S.C. 1758(b)(2)(C)(iii)(II)). A 

10 school serving youth who are receiving services under this 

11 chapter from the eligible entity shall provide information 

12 to the eligible entity on the income eligibility status of the 

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

14 of such Act (7 U.S.C. 1758(b)(2)(C)(iv)), in accordance 

15 with that section, to enable the eligible entity to determine 

16 eligibility for subsidies under subsection (b)(17). 

17 (d) PARTICIPATION IN PLANNING, DESIGN, AND IM18 PLEMENTATION.—An eligible entity that receives a grant 

19 or contract under section 9109 shall actively engage par20 ents, grandparents, guardians, and youth in the planning, 

21 design, and implementation of youth development pro22 grams supported by funds made available through the 

23 grant or contract, including using consumer feedback and 

24 evaluation mechanisms at least once a year. 
922

•HR 936 IH 

1 CHAPTER 3—ACCOUNTABILITY 

2 SEC. 9201. PURPOSES. 

3 The purposes of this chapter are—

4 (1) to ensure that funds appropriated to carry 

5 out this subtitle are expended in compliance with 

6 this subtitle; and 

7 (2) to establish mechanisms at the Federal, 

8 State, and local levels to monitor expenditures of the 

9 funds and respond to noncompliance with this sub10 title. 

11 SEC. 9202. FEDERAL LEVEL ACCOUNTABILITY. 

12 (a) DATA COLLECTION AND USE.—The Associate 

13 Commissioner shall collect, collate, and review data re14 ceived from States under section 9104(a)(2)(K) and shall 

15 make such data available, in the aggregate and by State, 

16 to the Coordinating Council for National Youth Policy, 

17 Congress, and (on request) to the general public. 

18 (b) CORRECTION OF DEFICIENCIES.—If the Asso19 ciate Commissioner determines, based on a review of State 

20 annual reports, State youth development plans, State data 

21 submissions, audits, evaluations, or other documentation 

22 required under this subtitle, that a State or eligible entity 

23 that receives funds through a grant or contract made 

24 under this subtitle is not complying with the requirements 

25 of this subtitle, the Associate Commissioner shall—
923

•HR 936 IH 

1 (1) notify the State or eligible entity of the defi2 ciencies that require correction and request that the 

3 State or entity submit a plan to correct the defi4 ciencies; 

5 (2) negotiate a plan to correct the deficiencies, 

6 and provide appropriate training or technical assist7 ance designed to assist the State or eligible entity in 

8 complying with the requirements of this subtitle; and 

9 (3) if the State or eligible entity fails to submit 

10 or negotiate a plan to correct the deficiencies or fails 

11 to make substantial efforts, within 6 months after 

12 the date of the notification described in paragraph 

13 (1), to correct the deficiencies and comply with the 

14 requirements of this subtitle—

15 (A) terminate the provision of funds under 

16 this subtitle to the State or entity for the re17 mainder of the period of the grant or contract; 

18 and 

19 (B) disburse such funds in the manner 

20 prescribed in section 9103(e) for funds withheld 

21 under that section. 

22 SEC. 9203. STATE LEVEL ACCOUNTABILITY. 

23 If the State agency designated in section 9104(a)(1) 

24 determines, based on a review of reports, data submis25 sions, audits, evaluations, or other documentation required 
924

•HR 936 IH 

1 under this subtitle, that a consortium or eligible entity 

2 that receives funds through a grant or contract made 

3 under this subtitle is not complying with the requirements 

4 of this subtitle, the State agency shall—

5 (1) notify the consortium or eligible entity of 

6 the deficiencies that require correction and request 

7 that the consortium or entity submit a plan to cor8 rect the deficiencies; 

9 (2) negotiate a plan to correct the deficiencies, 

10 and provide appropriate training or technical assist11 ance designed to assist the consortium or eligible en12 tity in complying with the requirements of this sub13 title; and 

14 (3) if the consortium or eligible entity fails to 

15 submit or negotiate a plan to correct the deficiencies 

16 or fails to make substantial efforts, within 6 months 

17 after the date of the notification described in para18 graph (1), to correct the deficiencies and comply 

19 with the requirements of this subtitle, terminate the 

20 provision of funds under this subtitle to the consor21 tium or entity for the remainder of the period of the 

22 grant or contract. 

23 SEC. 9204. LOCAL LEVEL ACCOUNTABILITY. 

24 If a consortium determines, based on a review of re25 ports, data submissions, audits, evaluations, or other doc-
925

•HR 936 IH 

1 umentation required under this subtitle, that an eligible 

2 entity that receives funds through a grant or contract 

3 made under this subtitle is not complying with the require4 ments of this subtitle, the consortium shall—

5 (1) notify the eligible entity of the deficiencies 

6 that require correction and request that the entity 

7 submit a plan to correct the deficiencies; 

8 (2) negotiate a plan to correct the deficiencies 

9 and provide appropriate training or technical assist10 ance designed to assist the eligible entity in com11 plying with the requirements of this subtitle; and 

12 (3) if the eligible entity fails to submit or nego13 tiate a plan to correct the deficiencies or fails to 

14 make substantial efforts, within 6 months after the 

15 date of the notification described in paragraph (1), 

16 to correct the deficiencies and comply with the re17 quirements of this subtitle, terminate the provision 

18 of funds under this subtitle of the entity for the re19 mainder of the period of the grant or contract. 

20 SEC. 9205. STATE AUDIT. 

21 Each State that receives funds under this subtitle 

22 shall submit annually, to the Associate Commissioner, the 

23 findings of an independent audit conducted in accordance 

24 with chapter 75 of title 31, United States Code, con25 cerning the use of such funds. 
926

•HR 936 IH 

1 CHAPTER 4—TRAINING, RESEARCH, AND 

2 EVALUATION 

3 SEC. 9301. PURPOSE. 

4 The purpose of this chapter is to expand the Nation’s 

5 knowledge and understanding of youth, youth development 

6 programs, and community mobilization aimed at providing 

7 all youth with access to, and participation in, the full array 

8 of core resources described in section 9002 by—

9 (1) assisting States in evaluating the effective10 ness of activities implemented under this subtitle 

11 (including evaluating the outcomes resulting from 

12 the activities alongside the activities’ inputs and fi13 delity of these inputs), including assisting in the 

14 specification of a minimum set of quality, outcome, 

15 and utilization data to be collected, and development 

16 of common definitions to be used, by entities receiv17 ing funds under this subtitle; 

18 (2) placing priority on the education and train19 ing of personnel, with respect to youth development 

20 programs, to work with youth, with a special empha21 sis on youth with special developmental needs; 

22 (3) conducting research (that includes samples 

23 that are representative of broader populations; that 

24 is longitudinal; that can examine effects across mul25 tiple levels, such as the effects on youth, programs, 
927

•HR 936 IH 

1 and communities; and that addresses participation, 

2 selection, participant retention, and program reach) 

3 and identifying effective practices directly related to 

4 the field of youth development; 

5 (4) disseminating widely information acquired 

6 through such research to national, State, and local 

7 youth development organizations and youth-serving 

8 organizations; and 

9 (5) establishing a clearinghouse for the collec10 tion, dissemination, training, and technical assist11 ance of youth development best practices, including 

12 quality, outcome, and performance measurements. 

13 SEC. 9302. GRANTS AND CONTRACTS. 

14 (a) IN GENERAL.—The Associate Commissioner may 

15 award grants and contracts to eligible entities to carry out 

16 evaluation, education and training, and dissemination ac17 tivities described in this section. 

18 (b) EVALUATION.—

19 (1) SYSTEM.—The Associate Commissioner 

20 shall develop and establish a system for evaluating 

21 the effectiveness of activities implemented under this 

22 subtitle, including mechanisms for determining and 

23 measuring programmatic inputs and outcomes re24 sulting from those activities. 
928

•HR 936 IH 

1 (2) DISTRIBUTION.—In awarding grants and 

2 contracts under subsection (a), the Associate Com3 missioner shall use 50 percent of the funds appro4 priated to carry out this chapter for an equitable 

5 distribution among the States to allow State agen6 cies to be responsible for evaluating the effectiveness 

7 of the activities implemented in the State under this 

8 subtitle, including, at a minimum, collecting the 

9 quality, outcome, and utilization data described in 

10 section 9301(1). 

11 (c) EDUCATION AND TRAINING.—The Associate 

12 Commissioner shall develop and establish a system for 

13 providing education and training of personnel of States 

14 and consortia to increase their capacity to work with 

15 youth, with a special emphasis on youth with special devel16 opmental needs, in carrying out quality youth development 

17 programs under this subtitle. 

18 (d) IMPACT EVALUATION.—

19 (1) BIENNIAL EVALUATION.—

20 (A) IN GENERAL.—The Associate Commis21 sioner shall conduct an independent biennial 

22 evaluation of the impact of youth development 

23 programs assisted under this subtitle to pro24 mote positive youth development. 
929

•HR 936 IH 

1 (B) CONTENTS.—The evaluation shall re2 port on—

3 (i) whether the entities carrying out 

4 the youth development programs—

5 (I) provided a thorough assess6 ment of local resources and barriers 

7 to access to, and participation in, the 

8 full array of core resources; 

9 (II) used objective data and the 

10 knowledge of a wide range of commu11 nity members; 

12 (III) developed measurable goals 

13 and objectives; 

14 (IV) implemented research-based 

15 youth development programs that 

16 have been shown to be effective and 

17 meet identified needs; and 

18 (V) conducted periodic evalua19 tions to assess progress made toward 

20 achieving the goals and objectives and 

21 used evaluations to improve the goals 

22 and objectives, and the youth develop23 ment programs; 

24 (ii) whether the youth development 

25 programs have been designed and imple-
930

•HR 936 IH 

1 mented in a manner that specifically tar2 gets, if relevant to the youth development 

3 programs—

4 (I) research-based variables that 

5 are predictive of healthy youth devel6 opment; 

7 (II) risk factors that are pre8 dictive of an increased likelihood that 

9 youth will use drugs, alcohol, or to10 bacco, become sexually active, or en11 gage in violence or drop out of school; 

12 or 

13 (III) protective factors, buffers, 

14 or assets that are known to protect 

15 youth from exposure to risk, either by 

16 reducing the exposure to risk factors 

17 or by changing the way a youth re18 sponds to risk, and to increase the 

19 likelihood of positive youth develop20 ment; 

21 (iii) whether the entities carrying out 

22 the youth development programs have ap23 preciably reduced individual risk-taking be24 havior and community risk factors and in-
931

•HR 936 IH 

1 creased either individual or community 

2 protective factors; and 

3 (iv) whether the entities carrying out 

4 the youth development programs have in5 corporated effective youth and parent in6 volvement. 

7 (2) BIENNIAL REPORT.—Not later than Janu8 ary 1, 2006, and every 2 years thereafter, the Asso9 ciate Commissioner shall submit to the President 

10 and Congress a report on the findings of the evalua11 tion conducted under paragraph (1) together with 

12 data available from other sources on the well-being 

13 of youth. 

14 (e) DISSEMINATION.—The Associate Commissioner 

15 shall develop a system to facilitate the broad dissemination 

16 of information acquired through research to States, youth 

17 development consortia, and the public about successful 

18 and promising strategies for providing all youth with the 

19 full array of core resources described in section 9002. 

20 SEC. 9303. AUTHORIZATION OF APPROPRIATIONS. 

21 There are authorized to be appropriated to carry out 

22 this chapter $7,000,000 for fiscal year 2004, and such 

23 sums as may be necessary for each of fiscal years 2005, 

24 2006, 2007, and 2008. 
932

•HR 936 IH 

1 Subtitle E—Coordination of 

2 National Youth Policy 

3 SEC. 9401. COORDINATING COUNCIL FOR NATIONAL YOUTH 

4 POLICY. 

5 (a) ESTABLISHMENT.—There is established in the 

6 Executive Office of the President a Coordinating Council 

7 for National Youth Policy. 

8 (b) ADMINISTRATION.—The Assistant to the Presi9 dent for Domestic Policy within the Executive Office of 

10 the President shall oversee the functioning of the Council 

11 established under subsection (a). 

12 (c) COMPOSITION.—

13 (1) NUMBER.—The Council shall be composed 

14 of the following members: 

15 (A) The Attorney General. 

16 (B) The Secretary of Education. 

17 (C) The Secretary of Health and Human 

18 Services. 

19 (D) The Secretary of Housing and Urban 

20 Development. 

21 (E) The Secretary of Labor. 

22 (F) The Secretary of Transportation. 

23 (G) The Commissioner of Social Security. 
933

•HR 936 IH 

1 (H) The Chief Executive Officer of the 

2 Corporation for National and Community Serv3 ice. 

4 (I) The heads of such other Federal de5 partments and agencies as the Secretary con6 siders appropriate. 

7 (J) 15 individuals who are neither officers 

8 nor employees of the United States. 

9 (2) QUALIFICATIONS OF NON-FEDERAL MEM10 BERS.—The President shall appoint the members of 

11 the Council specified in paragraph (1)(J) from 

12 among—

13 (A) individuals who have expertise in or ex14 perience with youth development or youth-serv15 ing programs, especially programs serving rural 

16 and inner-city urban youth and youth with spe17 cial developmental needs; 

18 (B) representatives of national organiza19 tions with an interest in youth development pro20 grams; 

21 (C) representatives of business and faith 

22 communities; 

23 (D) parents, grandparents, and guardians; 

24 and 
934

•HR 936 IH 

1 (E) youth who have participated in local 

2 youth development programs or who desire to 

3 participate in local youth development pro4 grams. 

5 (3) AGE OF NON-FEDERAL MEMBERS.—At least 

1 6 ⁄3 of the individuals appointed under paragraph 

7 (1)(J) shall be younger than 20 years of age at the 

8 time of appointment. 

9 (d) APPOINTMENT AND TERMS OF NON-FEDERAL

10 MEMBERS.—

11 (1) TERMS.—

12 (A) IN GENERAL.—Except as otherwise 

13 provided in this section, a member of the Coun14 cil appointed under subsection (c)(1)(J) shall 

15 serve for a term of 4 years. 

16 (B) END OF TERM.—The term shall end 

17 on March 31 regardless of the actual date of 

18 the appointment of such member. 

19 (2) SERVICE.—Members of the Council ap20 pointed under subsection (c)(1)(J) shall serve with21 out regard to the provisions of title 5, United States 

22 Code. 

23 (e) SERVICE DURING VACANCIES.—Any member of 

24 the Council appointed under subsection (c)(1)(J) ap25 pointed to fill a vacancy occurring prior to the expiration 
935

•HR 936 IH 

1 of the term for which such public member’s predecessor 

2 was appointed shall be appointed for the remainder of 

3 such term. Members of the Council appointed under sub4 section (c)(1)(J) shall be eligible for reappointment and 

5 may continue to serve after the expiration of their terms 

6 until their successors have taken office. 

7 (f) VACANCIES.—Any vacancy in the Council shall 

8 not affect the powers of the Council, but shall be filled 

9 in the same manner as the original appointment was 

10 made. 

11 (g) CHAIRPERSON.—The Secretary of Health and 

12 Human Services shall serve as Chairperson for the Coun13 cil. 

14 (h) MEETINGS.—The Council shall meet at the call 

15 of the Chairperson at least twice a year. 

16 (i) DUTIES.—The Council shall—

17 (1) serve as an effective and visible advocate for 

18 youth in the Federal Government, by actively review19 ing and commenting on all Federal policies affecting 

20 youth; 

21 (2) advise and assist the President and the 

22 heads of Federal departments and agencies on mat23 ters regarding the core resources youth need and the 

24 capacity of youth to contribute to the Nation and 

25 their communities; 
936

•HR 936 IH 

1 (3) make recommendations to the President 

2 and to Congress with respect to Federal policies re3 garding youth; 

4 (4) provide public forums for discussion on 

5 issues regarding youth, publicize the core resources 

6 youth need, and obtain information relating to en7 suring all youth access and participate in the full 

8 array of core resources described in section 9002, by 

9 conducting public hearings, and by conducting or 

10 sponsoring conferences, workshops, and other similar 

11 meetings; 

12 (5) develop mechanisms to foster collaboration 

13 and resolve administrative and programmatic con14 flicts between Federal programs that would be bar15 riers to parents, grandparents, and guardians, com16 munity-based, youth-serving, and youth development 

17 organizations, local government entities, State gov18 ernment entities, tribes, older adult organizations, 

19 parks and recreation agencies, libraries and muse20 ums, arts and cultural organizations, faith-based or21 ganizations, and organizations supporting youth in22 volved in community service and civic participation, 

23 related to the coordination of services and funding 

24 for programs promoting access to, and participation 
937

•HR 936 IH 

1 in, the full array of core resources described in sec2 tion 9002; and 

3 (6) consult with and assist State and local gov4 ernments with respect to barriers the governments 

5 encounter related to the coordination of services and 

6 funding for youth development and youth services 

7 programs. 

8 (j) REPORTS.—Not later than March 31, 2005, and 

9 each subsequent year, the Council shall prepare and sub10 mit to the President an annual report of the findings and 

11 recommendations of the Council. The President shall 

12 transmit each such report to Congress together with com13 ments and recommendations. 

14 (k) TRAVEL EXPENSES.—Public members of the 

15 Council shall not receive compensation for the perform16 ance of services for the Council, but shall be allowed travel 

17 expenses, including per diem in lieu of subsistence, at 

18 rates authorized for employees of agencies under sub19 chapter I of chapter 57 of title 5, United States Code, 

20 while away from their homes or regular places of business 

21 in the performance of services for the Council. Notwith22 standing section 1342 of title 31, United States Code, the 

23 President may accept the voluntary and uncompensated 

24 services of members of the Council. 
938

•HR 936 IH 

1 (l) PERMANENT COMMITTEE.—Section 14 of the 

2 Federal Advisory Committee Act (5 U.S.C. App.) shall not 

3 apply to the Council. 

4 (m) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated to carry out this section 

6 $500,000 for fiscal year 2004 and such sums as may be 

7 necessary for fiscal years 2005 through 2008. 

8 Subtitle B—Youth Programs 

9 SEC. 9201. AMERICORPS. 

10 Section 501(a)(2)(A) of the National and Community 

11 Service Act of 1990 (42 U.S.C. 12681(a)(2)(A)) is amend12 ed by striking ‘‘$300,000,000’’ and all that follows and 

13 inserting ‘‘$500,000,000 for fiscal year 2004 and such 

14 sums as may be necessary for fiscal year 2005.’’.

15 SEC. 9202. YOUTHBUILD PROGRAM. 

16 Section 402 of the Cranston-Gonzalez National Af17 fordable Housing Act (42 U.S.C. 12870) is amended by 

18 adding at the end the following: 

19 ‘‘(d) FISCAL YEARS 2004 AND 2005.—There are au20 thorized to be appropriated for grants under subtitle D, 

21 $107,000,000 for fiscal year 2004 and $120,000,000 for 

22 fiscal year 2005.’’. 

23 SEC. 9203. YOUTH WORKFORCE INVESTMENT ACTIVITIES. 

24 (a) YOUTH OPPORTUNITIES GRANTS.—Section 

25 127(b)(1)(A)(ii)(II) of the Workforce Investment Act of 
939

•HR 936 IH 

1 1998 (29 U.S.C. 2852(b)(1)(A)(ii)(II)) is amended by 

2 striking ‘‘$1,250,000,000 or greater, $250,000,000.’’ and 

3 inserting ‘‘$1,391,000,000 or greater, $391,000,000.’’

4 (b) YOUTH ACTIVITIES FORMULA GRANTS.—Section 

5 137(a) of the Workforce Investment Act of 1998 (29 

6 U.S.C. 2872(a)) is amended—

7 (1) by striking ‘‘are authorized’’ and inserting 

8 ‘‘is authorized’’; and 

9 (2) by striking ‘‘such sums’’ and all that follows 

10 and inserting ‘‘$2,427,000,000 for fiscal year 

11 2004.’’. 

12 (c) JOB CORPS.—Section 161 of the Workforce In13 vestment Act of 1998 (29 U.S.C. 2901) is amended—

14 (1) by striking ‘‘are authorized’’ and inserting 

15 ‘‘is authorized’’; and 

16 (2) by striking ‘‘such sums’’ and all that follows 

17 and inserting ‘‘$1,400,000,000 for fiscal year 

18 2004.’’. 

19 SEC. 9204. TRANSITION TRAINING FOR REINTEGRATING 

20 YOUTH OFFENDERS. 

21 Section 821(j) of the Higher Education Amendments 

22 of 1998 (20 U.S.C. 1151(j)) is amended—

23 (1) by striking ‘‘are authorized’’ and inserting 

24 ‘‘is authorized’’; and 
940

•HR 936 IH 

1 (2) by striking ‘‘$17,000,000’’ and all that fol2 lows and inserting ‘‘$75,000,000 for fiscal year 

3 2004.’’.

4 TITLE X—SAFE START—

5 JUVENILE JUSTICE 

6 Subtitle A—Juvenile Delinquency 

7 Prevention and Protection 

8 SEC. 10001. DEFINITION OF JUVENILE. 

9 Section 103 of the Juvenile Justice and Delinquency 

10 Prevention Act of 1974 (42 U.S.C. 5603) is amended—

11 (1) in paragraph (28), by striking ‘‘and’’ at the 

12 end; 

13 (2) in paragraph (29), by striking the period 

14 and inserting ‘‘; and’’; and 

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

16 ‘‘(30) the term ‘juvenile’ means an individual 

17 who is less than 18 years of age.’’. 

18 SEC. 10002. STATE PLAN ALLOCATION. 

19 Section 222(a)(2)(A) of the Juvenile Justice and De20 linquency Prevention Act of 1974 (42 U.S.C. 

21 5632(a)(2)(A)) is amended—

22 (1) by striking ‘‘$325,000’’ and inserting 

23 ‘‘$600,000’’; and 

24 (2) by striking ‘‘$400,000’’ and inserting 

25 $750,000. 
941

•HR 936 IH 

1 SEC. 10003. STATE PLAN REQUIREMENTS. 

2 Section 223(a) of the Juvenile Justice and Delin3 quency Prevention Act of 1974 (42 U.S.C. 5633(a)) is 

4 amended—

5 (1) in paragraph (27), by striking ‘‘and’’ at the 

6 end; 

7 (2) in paragraph (28), by striking the period 

8 and inserting a semicolon; and 

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

10 ‘‘(29) provide an assurance that the State shall 

11 address the disparate treatment of members of mi12 nority groups at all stages of the juvenile justice sys13 tem, including intake, arrest, detention, adjudica14 tion, disposition, and transfer; 

15 ‘‘(30) provide an assurance that the State shall 

16 make the amended plan submitted annually under 

17 this section available to the public and shall include 

18 in the amended plan a report of the State’s progress 

19 in addressing the disparate treatment of members of 

20 minority groups at all stages of the juvenile justice 

21 system, including data on any disproportionate rep22 resentation of African American, Latino, Native 

23 American, and Asian juveniles; 

24 ‘‘(31) contain satisfactory evidence that the 

25 State has held a public hearing on the plan; 
942

•HR 936 IH 

1 ‘‘(32) provide an assurance that the State shall 

2 provide every accused or adjudicated juvenile with 

3 reasonable safety and security, adequate food, heat, 

4 light, sanitary facilities, bedding, clothing, recre5 ation, counseling, education, training, and medical 

6 care, including, if necessary, mental health services; 

7 ‘‘(33) provide that not more than 3 percent of 

8 funds received by the State under section 222 shall 

9 be expended to establish a State juvenile justice coa10 lition, which coalition shall include the participation 

11 of juveniles; and 

12 ‘‘(34) provide that 3 percent of funds received 

13 by the State under section 222 shall be expended to 

14 carry out paragraph (24).’’. 

15 Subtitle B—Mental Health Juvenile 

16 Justice 

17 SEC. 10101. SHORT TITLE. 

18 This subtitle may be cited as the ‘‘Mental Health Ju19 venile Justice Act’’. 

20 SEC. 10102. TRAINING OF JUSTICE SYSTEM PERSONNEL. 

21 Title II of the Juvenile Justice and Delinquency Pre22 vention Act of 1974 (42 U.S.C. 5611 et seq.) is amended 

23 by adding at the end the following: 
943

•HR 936 IH 

1 ‘‘PART K—ACCESS TO MENTAL HEALTH AND 

2 SUBSTANCE ABUSE TREATMENT 

3 ‘‘SEC. 299AA. GRANTS FOR TRAINING OF JUSTICE SYSTEM 

4 PERSONNEL. 

5 ‘‘(a) IN GENERAL.—The Administrator shall make 

6 grants to State and local juvenile justice agencies in col7 laboration with State and local mental health agencies, for 

8 purposes of training the officers and employees of the 

9 State juvenile justice system (including employees of facili10 ties that are contracted for operation by State and local 

11 juvenile authorities) regarding appropriate access to men12 tal health and substance abuse treatment programs and 

13 services in the State for juveniles who come into contact 

14 with the State juvenile justice system who have mental 

15 health or substance abuse problems. 

16 ‘‘(b) USE OF FUNDS.—A State or local juvenile jus17 tice agency that receives a grant under this section may 

18 use the grant for purposes of—

19 ‘‘(1) providing cross-training, jointly with the 

20 public mental health system, for State juvenile court 

21 judges, public defenders, and mental health and sub22 stance abuse agency representatives with respect to 

23 the appropriate use of effective, community-based al24 ternatives to juvenile justice or mental health system 

25 institutional placements; or 
944

•HR 936 IH 

1 ‘‘(2) providing training for State juvenile proba2 tion officers and community mental health and sub3 stance abuse program representatives on appropriate 

4 linkages between probation programs and mental 

5 health community programs, specifically focusing on 

6 the identification of mental disorders and substance 

7 abuse addiction in juveniles on probation, effective 

8 treatment interventions for those disorders, and 

9 making appropriate contact with mental health and 

10 substance abuse case managers and programs in the 

11 community, in order to ensure that juveniles on pro12 bation receive appropriate access to mental health 

13 and substance abuse treatment programs and serv14 ices. 

15 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated from the Violent Crime 

17 Reduction Trust Fund, $50,000,000 for each of the fiscal 

18 years 2004 through 2008 to carry out this section.’’. 

19 SEC. 10103. BLOCK GRANT FUNDING FOR TREATMENT AND 

20 DIVERSION PROGRAMS. 

21 Part K of title II of the Juvenile Justice and Delin22 quency Prevention Act of 1974 (42 U.S.C. 5611 et seq.), 

23 as added by section 10102, is amended by adding at the 

24 end the following: 
945

•HR 936 IH 

1 ‘‘SEC. 299BB. GRANTS FOR STATE PARTNERSHIPS. 

2 ‘‘(a) IN GENERAL.—The Attorney General and the 

3 Secretary of Health and Human Services shall make 

4 grants to partnerships between State and local or county 

5 juvenile justice agencies and State and local mental health 

6 authorities (or appropriate children service agencies) in 

7 accordance with this section. 

8 ‘‘(b) USE OF FUNDS.—A partnership described in 

9 subsection (a) that receives a grant under this section 

10 shall use such amounts for the establishment and imple11 mentation of programs that address the service needs of 

12 juveniles who come into contact with the justice system 

13 (including facilities contracted for operation by State or 

14 local juvenile authorities) and who have mental health or 

15 substance abuse problems by requiring the following: 

16 ‘‘(1) DIVERSION.—Appropriate diversion of 

17 those juveniles from incarceration— 

18 ‘‘(A) who are at imminent risk of being 

19 taken into custody; 

20 ‘‘(B) at the time they are initially taken 

21 into custody; 

22 ‘‘(C) after they are charged with an of23 fense or act of juvenile delinquency; 

24 ‘‘(D) after they are adjudicated delinquent 

25 but prior to case disposition; and
946

•HR 936 IH 

1 ‘‘(E) after they are released from a juve2 nile facility, for the purposes of attending after3 care programs. 

4 ‘‘(2) TREATMENT.—

5 ‘‘(A) SCREENING AND ASSESSMENT OF JU6 VENILES.—

7 ‘‘(i) INITIAL SCREENING.—

8 ‘‘(I) IN GENERAL.—Initial men9 tal health screening shall be completed 

10 for all juveniles immediately upon en11 tering the juvenile justice system or a 

12 juvenile facility. 

13 ‘‘(II) QUALIFIED PROFES14 SIONALS.—Screening shall be con15 ducted by qualified health and mental 

16 health professionals or by staff who 

17 have been trained by qualified health, 

18 mental health, and substance abuse 

19 professionals. 

20 ‘‘(III) REVIEW.—In the case of a 

21 screening by staff, the screening re22 sults should be reviewed by qualified 

23 health or mental health professionals 

24 not later than 24 hours after the 

25 screening. 
947

•HR 936 IH 

1 ‘‘(ii) ACUTE MENTAL ILLNESS.—

2 ‘‘(I) IN GENERAL.—Juveniles 

3 who suffer from acute mental dis4 orders, are suicidal, or are in need of 

5 detoxification shall be placed in, or 

6 immediately transferred to, an appro7 priate medical or mental health facil8 ity. 

9 ‘‘(II) ADMISSION.—Juveniles de10 scribed in subclause (I) shall be ad11 mitted to a secure correctional facility 

12 only with written medical clearance. 

13 ‘‘(iii) COMPREHENSIVE ASSESS14 MENT.—

15 ‘‘(I) IN GENERAL.—Except as 

16 provided in subclause (II), all juve17 niles entering the juvenile justice sys18 tem shall have a comprehensive as19 sessment conducted and an individual20 ized treatment plan written and im21 plemented within 2 weeks of entering 

22 the system. 

23 ‘‘(II) SECURE FACILITY.—For 

24 juveniles incarcerated in secure facili25 ties, the assessment referred to in 
948

•HR 936 IH 

1 subclause (I) shall be conducted not 

2 later than 1 week after the juvenile 

3 enters the juvenile justice system. 

4 ‘‘(III) QUALIFIED PROFES5 SIONAL.—Comprehensive assessments 

6 conducted under this clause shall be 

7 completed by qualified health, mental 

8 health, and substance abuse profes9 sionals. 

10 ‘‘(B) TREATMENT.—

11 ‘‘(i) IN GENERAL.—If the need for 

12 treatment is indicated by the assessment of 

13 a juvenile, the juvenile shall be referred to 

14 or treated by a qualified professional. A ju15 venile who is currently receiving treatment 

16 for a mental or emotional disorder shall 

17 have treatment continued. 

18 ‘‘(ii) PERIOD.—

19 ‘‘(I) IN GENERAL.—Treatment 

20 shall continue until an additional 

21 mental health assessment determines 

22 that the juvenile is no longer in need 

23 of treatment. 
949

•HR 936 IH 

1 ‘‘(II) REEVALUATION.—Treat2 ment plans shall be reevaluated at 

3 least every 30 days. 

4 ‘‘(iii) DISCHARGE PLAN.—

5 ‘‘(I) IN GENERAL.—An incarcer6 ated juvenile shall have a discharge 

7 plan prepared when the juvenile en8 ters the correctional facility in order 

9 to integrate the juvenile back into the 

10 family or the community. 

11 ‘‘(II) UPDATING OF PLAN; 

12 AFTERCARE SERVICES.—The dis13 charge plan referred to in subclause 

14 (I) shall be updated in consultation 

15 with the juvenile’s family or guardian 

16 before the juvenile leaves the facility 

17 and shall address the provision of 

18 aftercare services. 

19 ‘‘(iv) MEDICATION.—

20 ‘‘(I) IN GENERAL.—Any juvenile 

21 receiving psychotropic medications 

22 shall be under the care of a licensed 

23 psychiatrist. 

24 ‘‘(II) MONITORING.—Psycho25 tropic medications shall be monitored 
950

•HR 936 IH 

1 regularly by trained staff for their ef2 ficacy and side effects. 

3 ‘‘(v) SPECIALIZED TREATMENT.—Spe4 cialized treatment and services shall be 

5 continually available to a juvenile who—

6 ‘‘(I) has a history of mental 

7 health problems or treatment; 

8 ‘‘(II) has a documented history 

9 of sexual abuse or offenses, as victim 

10 or as perpetrator; 

11 ‘‘(III) has substance abuse prob12 lems, health problems, learning dis13 abilities, or histories of family abuse 

14 or violence; or 

15 ‘‘(IV) has developmental disabil16 ities. 

17 ‘‘(C) MEDICAL AND MENTAL HEALTH

18 EMERGENCIES.—

19 ‘‘(i) WRITTEN POLICIES.—All correc20 tional facilities shall have—

21 ‘‘(I) written policies and proce22 dures on suicide prevention; and 

23 ‘‘(II) written arrangements with 

24 a hospital or other facility for pro-
951

•HR 936 IH 

1 viding emergency medical and mental 

2 health care. 

3 ‘‘(ii) TRAINED STAFF.—All staff 

4 working in correctional facilities shall be 

5 trained and certified annually in suicide 

6 prevention. 

7 ‘‘(iii) SERVICE AVAILABILITY.—Phys8 ical and mental health services shall be 

9 available to an incarcerated juvenile 24 

10 hours per day, 7 days per week. 

11 ‘‘(D) CLASSIFICATION OF JUVENILES.—

12 ‘‘(i) IN GENERAL.—Juvenile facilities 

13 shall classify and house juveniles in living 

14 units according to a plan that includes age, 

15 gender, offense, special medical or mental 

16 health condition, size, and vulnerability to 

17 victimization. Younger, smaller, weaker, 

18 and more vulnerable juveniles shall not be 

19 placed in housing units with older, more 

20 aggressive juveniles. 

21 ‘‘(ii) BOOT CAMPS.—Juveniles who 

22 are under 13 years old or who have serious 

23 medical conditions or mental illness shall 

24 not be placed in paramilitary boot camps. 
952

•HR 936 IH 

1 ‘‘(E) CONFIDENTIALITY OF RECORDS.—

2 Mental health and substance abuse treatment 

3 records of juveniles shall be treated as confiden4 tial and shall be excluded from the records that 

5 States require to be routinely released to other 

6 correctional authorities and school officials. 

7 ‘‘(F) MANDATORY REPORTING.—

8 ‘‘(i) IN GENERAL.—States shall keep 

9 records of the incidence and types of men10 tal health and substance abuse disorders in 

11 their juvenile justice populations, the range 

12 and scope of services provided, and bar13 riers to service. 

14 ‘‘(ii) ANNUAL SUBMISSION.—States 

15 shall submit an analysis of this informa16 tion annually to the Department of Jus17 tice. 

18 ‘‘(G) STAFF RATIOS FOR CORRECTIONAL

19 FACILITIES.—

20 ‘‘(i) IN GENERAL.—Each secure cor21 rectional facility shall have a minimum 

22 ratio of—

23 ‘‘(I) not fewer than 1 mental 

24 health counselor to every 50 juveniles; 
953

•HR 936 IH 

1 ‘‘(II) 1 clinical psychologist for 

2 every 100 juveniles; and 

3 ‘‘(III) 1 licensed psychiatrist for 

4 every 100 juveniles receiving psy5 chiatric care. 

6 ‘‘(ii) MENTAL HEALTH COUN7 SELORS.—Mental health counselors shall 

8 be professionally trained and certified or li9 censed. 

10 ‘‘(H) USE OF FORCE.—

11 ‘‘(i) WRITTEN GUIDELINES.—All juve12 nile facilities shall have a written behav13 ioral management system based on incen14 tives and rewards to reduce misconduct 

15 and to decrease the use of restraints and 

16 seclusion by staff. 

17 ‘‘(ii) LIMITATIONS ON RESTRAINT.—

18 ‘‘(I) IN GENERAL.—Control tech19 niques such as restraint, seclusion, 

20 chemical sprays, and room confine21 ment shall be used only in response to 

22 extreme threats to life or safety. 

23 ‘‘(II) DOCUMENTATION.—Use of 

24 these techniques shall be approved by 

25 the facility superintendent or chief 
954

•HR 936 IH 

1 medical officer and documented in the 

2 juvenile’s file along with the justifica3 tion for use and the failure of less re4 strictive alternatives. 

5 ‘‘(iii) LIMITATION ON ISOLATION.—

6 ‘‘(I) IN GENERAL.—Isolation and 

7 seclusion shall be used only for imme8 diate and short-term security or safety 

9 reasons. 

10 ‘‘(II) APPROVAL.—No juvenile 

11 shall be placed in isolation without ap12 proval of the facility superintendent or 

13 chief medical officer or their official 

14 staff designee. 

15 ‘‘(III) TIME LIMIT.—A juvenile 

16 shall be in isolation only the amount 

17 of time necessary to achieve security 

18 and safety of the juvenile and staff. 

19 ‘‘(IV) MONITORING.—Staff shall 

20 monitor each juvenile in isolation once 

21 every 15 minutes and conduct a pro22 fessional review of the need for isola23 tion at least every 4 hours. 

24 ‘‘(V) EXAMINATION.—Any juve25 nile held in seclusion for 24 hours 
955

•HR 936 IH 

1 shall be examined by a physician or li2 censed psychologist. 

3 ‘‘(VI) DOCUMENTATION.—All 

4 cases shall be documented in the juve5 nile’s file along with the justification. 

6 ‘‘(I) IDEA AND REHABILITATION ACT.—

7 All juvenile facilities shall abide by all manda8 tory requirements and time lines set forth 

9 under the Individuals with Disabilities Edu10 cation Act (42 U.S.C. 12101 et seq.) and sec11 tion 504 of the Rehabilitation Act of 1973 (29 

12 U.S.C. 794). 

13 ‘‘(J) ADVOCACY ASSISTANCE.—

14 ‘‘(i) IN GENERAL.—The Secretary of 

15 Health and Human Services shall make 

16 grants to the systems established under 

17 part C of the Developmental Disabilities 

18 Assistance and Bill of Rights Act (42 

19 U.S.C. 6041 et seq.)—

20 ‘‘(I) to monitor the mental health 

21 and special education services pro22 vided by grantees to juveniles under 

23 subparagraphs (A), (B), (C), (H), and 

24 (I); and 
956

•HR 936 IH 

1 ‘‘(II) to advocate on behalf of ju2 veniles to assure that such services 

3 are properly provided. 

4 ‘‘(ii) APPROPRIATION.—The Secretary 

5 of Health and Human Services will reserve 

6 not less than 3 percent of the funds appro7 priated under this section for the purposes 

8 set forth in clause (i). 

9 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—

10 ‘‘(1) IN GENERAL.—There are authorized to be 

11 appropriated from the Violent Crime Reduction 

12 Trust Fund, $500,000,000 for each of the fiscal 

13 years 2004 through 2008 to carry out this section. 

14 ‘‘(2) ALLOCATION.—Of amounts appropriated 

15 under paragraph (1)—

16 ‘‘(A) 35 percent shall be used for diversion 

17 programs under subsection (b)(1); and 

18 ‘‘(B) 65 percent shall be used for treat19 ment programs under subsection (b)(2). 

20 ‘‘(3) INCENTIVES.—The Attorney General and 

21 the Secretary of Health and Human Services shall 

22 give preference under subsection (b)(2) to partner23 ships that integrate treatment programs to serve ju24 veniles with co-occurring mental health and sub25 stance abuse disorders. 
957

•HR 936 IH 

1 ‘‘(4) WAIVERS.—The Attorney General and the 

2 Secretary of Health and Human Services may grant 

3 a waiver of requirements under subsection (b)(2) for 

4 good cause. 

5 ‘‘SEC. 299CC. GRANTS FOR PARTNERSHIPS. 

6 ‘‘(a) IN GENERAL.—Any partnership desiring to re7 ceive a grant under this part shall submit an application 

8 at such time, in such manner, and containing such infor9 mation as the Attorney General and the Secretary of 

10 Health and Human Services may prescribe.

11 ‘‘(b) CONTENTS.—In accordance with guidelines es12 tablished by the Attorney General and the Secretary of 

13 Health and Human Services, each application submitted 

14 under subsection (a) shall—

15 ‘‘(1) set forth a program or activity for carrying 

16 out one or more of the purposes specified in section 

17 299BB(b) and specifically identify the purpose each 

18 such program or activity is designed to carry out; 

19 ‘‘(2) provide that such program or activity shall 

20 be administered by or under the supervision of the 

21 applicant; 

22 ‘‘(3) provide for the proper and efficient admin23 istration of such program or activity; 

24 ‘‘(4) provide for regular evaluation of such pro25 gram or activity; 
958

•HR 936 IH 

1 ‘‘(5) provide an assurance that the proposed 

2 program or activity will supplement, not supplant, 

3 similar programs and activities already available in 

4 the community; and 

5 ‘‘(6) provide for such fiscal control and fund ac6 counting procedures as may be necessary to ensure 

7 prudent use, proper disbursement, and accurate ac8 counting of funds receiving under this part.’’. 

9 SEC. 10104. INITIATIVE FOR COMPREHENSIVE, INTER10 SYSTEM PROGRAMS. 

11 Subpart 3 of part B of title V of the Public Health 

12 Service Act (42 U.S.C. 290bb–31 et seq.) is amended by 

13 adding at the end the following: 

14 ‘‘SEC. 520K. INITIATIVE FOR COMPREHENSIVE, INTER15 SYSTEM PROGRAMS. 

16 ‘‘(a) IN GENERAL.—The Secretary and the Attorney 

17 General, acting through the Director of the Center for 

18 Mental Health Services, shall award competitive grants to 

19 eligible entities for programs that address the service 

20 needs of juveniles and juveniles with serious mental ill21 nesses by requiring the State or local juvenile justice sys22 tem, the mental health system, and the substance abuse 

23 treatment system to work collaboratively to ensure—

24 ‘‘(1) the appropriate diversion of such juveniles 

25 and juveniles from incarceration;
959

•HR 936 IH 

1 ‘‘(2) the provision of appropriate mental health 

2 and substance abuse services as an alternative to in3 carceration and for those juveniles on probation or 

4 parole; and 

5 ‘‘(3) the provision of followup services for juve6 niles who are discharged from the juvenile justice 

7 system. 

8 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 

9 under this section an entity shall—

10 ‘‘(1) be a State or local juvenile justice agency, 

11 mental health agency, or substance abuse agency 

12 (including community diversion programs); 

13 ‘‘(2) prepare and submit to the Secretary an 

14 application at such time, in such manner, and con15 taining such information as the Secretary may re16 quire, including—

17 ‘‘(A) an assurance that the applicant has 

18 the consent of all entities described in para19 graph (1) in carrying out and coordinating ac20 tivities under the grant; and 

21 ‘‘(B) with respect to services for juveniles, 

22 an assurance that the applicant has collabo23 rated with the State or local educational agency 

24 and the State or local welfare agency in car-
960

•HR 936 IH 

1 rying out and coordinating activities under the 

2 grant; 

3 ‘‘(3) be given priority if it is a joint application 

4 between juvenile justice and substance abuse or 

5 mental health agencies; and 

6 ‘‘(4) ensure that funds from non-Federal 

7 sources are available to match amounts provided 

8 under the grant in an amount that is not less 

9 than—

10 ‘‘(A) with respect to the first 3 years 

11 under the grant, 25 percent of the amount pro12 vided under the grant; and 

13 ‘‘(B) with respect to the fourth and fifth 

14 years under the grant, 50 percent of the 

15 amount provided under the grant. 

16 ‘‘(c) USE OF FUNDS.—

17 ‘‘(1) INITIAL YEAR.—An entity that receives a 

18 grant under this section shall, in the first fiscal year 

19 in which amounts are provided under the grant, use 

20 such amounts to develop a collaborative plan—

21 ‘‘(A) for how the guarantee will institute a 

22 system to provide intensive community serv23 ices—
961

•HR 936 IH 

1 ‘‘(i) to prevent high-risk juveniles 

2 from coming in contact with the justice 

3 system; and 

4 ‘‘(ii) to meet the mental health and 

5 substance abuse treatment needs of juve6 niles on probation or recently discharged 

7 from the justice system; and 

8 ‘‘(B) providing for the exchange by agen9 cies of information to enhance the provision of 

10 mental health or substance abuse services to ju11 veniles.

12 ‘‘(2) 2–5TH YEARS.—With respect to the sec13 ond through fifth fiscal years in which amounts are 

14 provided under the grant, the grantee shall use 

15 amounts provided under the grant—

16 ‘‘(A) to furnish services, such as assertive 

17 community treatment, wrap-around services for 

18 juveniles, multisystemic therapy, outreach, inte19 grated mental health and substance abuse 

20 treatment, case management, health care, edu21 cation and job training, assistance in securing 

22 stable housing, finding a job or obtaining in23 come support, other benefits, access to appro24 priate school-based services, transitional and 

25 independent living services, mentoring pro-
962

•HR 936 IH 

1 grams, home-based services, and provision of 

2 appropriate after school and summer pro3 graming; 

4 ‘‘(B) to establish a network of boundary 

5 spanners to conduct regular meetings with 

6 judges, provide liaison with mental health and 

7 substance abuse workers, share and distribute 

8 information, and coordinate with mental health 

9 and substance abuse treatment providers, and 

10 probation or parole officers concerning provision 

11 of appropriate mental health and drug and alco12 hol addiction services for individuals on proba13 tion or parole; 

14 ‘‘(C) to provide cross-system training 

15 among police, corrections, and mental health 

16 and substance abuse providers with the purpose 

17 of enhancing collaboration and the effectiveness 

18 of all systems; 

19 ‘‘(D) to provide coordinated and effective 

20 aftercare programs for juveniles with emotional 

21 or mental disorders who are discharged from 

22 jail, prison, or juvenile facilities; 

23 ‘‘(E) to purchase technical assistance to 

24 achieve the grant project’s goals; and 
963

•HR 936 IH 

1 ‘‘(F) to furnish services, to train personnel 

2 in collaborative approaches, and to enhance 

3 intersystem collaboration. 

4 ‘‘(3) DEFINITION.—In paragraph (2)(B), the 

5 term ‘boundary spanners’ means professionals who 

6 act as case managers for juveniles with mental dis7 orders and substance abuse addictions, within both 

8 justice agency facilities and community mental 

9 health programs and who have full authority from 

10 both systems to act as problem-solvers and advocates 

11 on behalf of individuals targeted for service under 

12 this program. 

13 ‘‘(d) AREA SERVED BY THE PROJECT.—An entity re14 ceiving a grant under this section shall conduct activities 

15 under the grant to serve at least a single political jurisdic16 tion. 

17 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

18 shall be made available to carry out the section, not less 

19 than 10 percent of the amount appropriated under section 

20 1935(a) for each of the fiscal years 2004 through 2008.’’. 

21 SEC. 10105. FEDERAL COORDINATING COUNCIL ON THE 

22 CRIMINALIZATION OF JUVENILES WITH MEN23 TAL DISORDERS. 

24 (a) ESTABLISHMENT.—There is established a Fed25 eral Coordinating Council on Criminalization of Juveniles 
964

•HR 936 IH 

1 with Mental Disorders (referred to in this section as the 

2 ‘‘Council’’) as an interdepartmental council to—

3 (1) study and coordinate the criminal and juve4 nile justice and mental health and substance abuse 

5 activities of the Federal Government; and 

6 (2) report to Congress on proposed legislation 

7 to improve the treatment of mentally ill juveniles 

8 who come in contact with the juvenile justice system. 

9 (b) MEMBERSHIP.—The Council shall include rep10 resentatives from—

11 (1) the appropriate Federal agencies, as deter12 mined by the President, including, at a minimum—

13 (A) the Office of the Secretary of Health 

14 and Human Services; 

15 (B) the Office for Juvenile Justice and De16 linquency Prevention; 

17 (C) the National Institute of Mental 

18 Health; 

19 (D) the Social Security Administration; 

20 (E) the Department of Education; and 

21 (F) the Substance Abuse and Mental 

22 Health Services Administration; and 

23 (2) children’s mental health advocacy groups. 

24 (c) DUTIES.—The Council shall—
965

•HR 936 IH 

1 (1) review Federal policies that hinder or facili2 tate coordination at the State and local level between 

3 the mental health and substance abuse systems on 

4 the one hand and the juvenile justice and corrections 

5 system on the other; 

6 (2) study the possibilities for improving collabo7 ration at the Federal, State, and local level among 

8 these systems; and 

9 (3) recommend to Congress any appropriate 

10 new initiatives which require legislative action. 

11 (d) FINAL REPORT.—The Council shall submit—

12 (1) 18 months after the Council is established, 

13 an interim report on current coordination and col14 laboration, or lack thereof; and 

15 (2) 2 years after the Council is established, a 

16 final report to Congress that includes recommenda17 tions for new initiatives in improving coordination 

18 and collaboration. 

19 (e) EXPIRATION.—The Council shall expire 2 years 

20 after the Council is established.

21 SEC. 10106. MENTAL HEALTH SCREENING AND TREATMENT 

22 FOR PRISONERS. 

23 (a) ADDITIONAL REQUIREMENTS FOR THE USE OF

24 FUNDS UNDER THE VIOLENT OFFENDER INCARCER25 ATION AND TRUTH-IN-SENTENCING GRANTS PROGRAM.—
966

•HR 936 IH 

1 Section 20105(b) of the Violent Crime Control and Law 

2 Enforcement Act of 1994 (42 U.S.C. 13705(b)) is amend3 ed to read as follows: 

4 ‘‘(b) ADDITIONAL REQUIREMENTS.—

5 ‘‘(1) ELIGIBILITY FOR GRANT.—To be eligible 

6 to receive a grant under section 20103 or 20104, a 

7 State shall, not later than January 1, 2004, have a 

8 program of mental health screening and treatment 

9 for appropriate categories of juvenile and other of10 fenders during periods of incarceration and juvenile 

11 and criminal justice supervision, that is consistent 

12 with guidelines issued by the Attorney General. 

13 ‘‘(2) USE OF FUNDS.—

14 ‘‘(A) IN GENERAL.—Notwithstanding any 

15 other provision of this subtitle, amounts made 

16 available to a State under section 20103 or 

17 20104, may be applied to the costs of programs 

18 described in paragraph (1), consistent with 

19 guidelines issued by the Attorney General. 

20 ‘‘(B) ADDITIONAL USE.—In addition to 

21 being used as specified in subparagraph (A), 

22 the funds referred to in that subparagraph may 

23 be used by a State to pay the costs of providing 

24 to the Attorney General a baseline study on the 

25 mental health problems of juvenile offenders 
967

•HR 936 IH 

1 and prisoners in the State, which study shall be 

2 consistent with guidelines issued by the Attor3 ney General.’’. 

4 SEC. 10107. INAPPLICABILITY OF AMENDMENTS. 

5 Section 3626 of title 18, United States Code, is 

6 amended by adding at the end the following: 

7 ‘‘(h) INAPPLICABILITY OF AMENDMENTS.—A civil 

8 action brought pursuant to section 1983 of title 42, 

9 United States Code, that seeks to remedy conditions of 

10 confinement for individuals who are under the age of 18 

11 shall be governed by the terms of this section, as in effect 

12 on the day before the date of enactment of the Prison Liti13 gation Reform Act of 1995 and the amendments made by 

14 that Act (18 U.S.C. 3601 note).’’. 

15 Subtitle C—Juvenile Justice and 

16 Accountability 

17 SEC. 10201. INCREASE IN FUNDING FOR TITLE III OF THE 

18 JJDPA. 

19 There are authorized to be appropriated to carry out 

20 the Runaway and Homeless Youth Act (42 U.S.C. 5701 

21 et seq.)—

22 (1) $120,000,000 for fiscal year 2004, of which 

23 $100,000,000 shall be for the Basic Centers and 

24 Transitional Living Program and $20,000,000 shall 

25 be for the Sexual Abuse Prevention Program; and 
968

•HR 936 IH 

1 (2) such sums as necessary for fiscal year 2005. 

2 SEC. 10202. FUNDING FOR THE SERVICES FOR YOUTHFUL 

3 OFFENDERS. 

4 There is authorized to be appropriated to carry out 

5 section 520D of title V of the Public Health Service Act 

6 (42 U.S.C. 290bb–35)—

7 (1) $40,000,000 for fiscal year 2004; and 

8 (2) such sums as necessary for fiscal year 2005.

9 TITLE XI—SAFE START—GUN 

10 SAFETY 

11 Subtitle A—Closing the Gun Show 

12 Loophole 

13 SEC. 11001. EXTENSION OF BRADY BACKGROUND CHECKS 

14 TO GUN SHOWS. 

15 (a) FINDINGS.—Congress finds that—

16 (1) more than 4,400 traditional gun shows are 

17 held annually across the United States, with each 

18 show attracting thousands of attendees and hun19 dreds of Federal firearms licensees and nonlicensed 

20 firearms sellers; 

21 (2) traditional gun shows, flea markets, and 

22 other organized events, at which a large number of 

23 firearms are offered for sale by Federal firearms li24 censees and nonlicensed firearms sellers, comprise a 

25 significant part of the national firearms market; 
969

•HR 936 IH 

1 (3) firearms and ammunition exhibited or of2 fered for sale or exchange at gun shows, flea mar3 kets, and other organized events move easily in, and 

4 substantially affect, interstate commerce; 

5 (4) before a firearm is exhibited or offered for 

6 sale or exchange at a gun show, flea market, or 

7 other organized event, the gun, its component parts, 

8 ammunition, and the raw materials from which the 

9 gun is manufactured have moved in interstate com10 merce; 

11 (5) gun shows, flea markets, and other orga12 nized events at which firearms are exhibited or of13 fered for sale or exchange, provide a convenient and 

14 centralized commercial location at which firearms 

15 may be bought and sold anonymously, often without 

16 background checks or records that enable gun trac17 ing; 

18 (6) criminals and other ineligible persons obtain 

19 guns without background checks at gun shows, flea 

20 markets, and other organized events at which guns 

21 are exhibited or offered for sale or exchange, and 

22 frequently use these untraceable guns to commit 

23 crimes; 

24 (7) many persons who buy and sell firearms at 

25 gun shows, flea markets, and other organized events 
970

•HR 936 IH 

1 cross State lines to attend these events and to en2 gage in the interstate transportation of firearms ob3 tained at these events; 

4 (8) gun violence is a pervasive, national prob5 lem that is exacerbated by the availability of guns at 

6 gun shows, flea markets, and other organized events; 

7 (9) firearms associated with gun shows have 

8 been—

9 (A) transferred illegally to residents of 

10 other States by Federal firearms licensees and 

11 nonlicensed firearms sellers; and 

12 (B) involved in subsequent crimes, includ13 ing drug offenses, crimes of violence, property 

14 crimes, and illegal possession of firearms, by 

15 felons and other prohibited persons; and 

16 (10) Congress has the power, under the inter17 state commerce clause and other provisions of the 

18 Constitution of the United States, to ensure that 

19 criminals and other prohibited persons do not obtain 

20 firearms at gun shows, flea markets, and other orga21 nized events. 

22 (b) DEFINITIONS.—Section 921(a) of title 18, United 

23 States Code, is amended by adding at the end the fol24 lowing: 
971

•HR 936 IH 

1 ‘‘(36) GUN SHOW.—The term ‘gun show’ means any 

2 event at which 50 or more firearms are offered or exhib3 ited for sale, transfer, or exchange, if 1 or more of the 

4 firearms has been shipped or transported in, or otherwise 

5 affects, interstate or foreign commerce. 

6 ‘‘(37) GUN SHOW PROMOTER.—The term ‘gun show 

7 promoter’ means any person who organizes, plans, pro8 motes, or operates a gun show. 

9 ‘‘(38) GUN SHOW VENDOR.—The term ‘gun show 

10 vendor’ means any person who exhibits, sells, offers for 

11 sale, transfers, or exchanges 1 or more firearms at a gun 

12 show, whether or not the person arranges with the gun 

13 show promoter for a fixed location from which to exhibit, 

14 sell, offer for sale, transfer, or exchange those firearms.’’. 

15 (c) REGULATION OF FIREARMS TRANSFERS AT GUN

16 SHOWS.—

17 (1) IN GENERAL.—Chapter 44 of title 18, 

18 United States Code, is amended by adding at the 

19 end the following: 

20 ‘‘§ 932. Regulation of firearms transfers at gun shows 

21 ‘‘(a) RESPONSIBILITIES OF GUN SHOW PRO22 MOTERS.—It shall be unlawful for any person to organize, 

23 plan, promote, or operate a gun show unless that person— 

24 ‘‘(1) registers with the Attorney General in ac25 cordance with regulations promulgated by the Attor-
972

•HR 936 IH 

1 ney General, including the payment of a registration 

2 fee, in an amount determined by the Attorney Gen3 eral; 

4 ‘‘(2) before commencement of the gun show—

5 ‘‘(A) verifies the identity of each gun show 

6 vendor participating in the gun show by exam7 ining a valid identification document (as defined 

8 in section 1028(d)(2)) of the vendor containing 

9 a photograph of the vendor; 

10 ‘‘(B) requires each gun show vendor to 

11 sign— 

12 ‘‘(i) a ledger with identifying informa13 tion concerning the vendor; and 

14 ‘‘(ii) a notice advising the vendor of 

15 the obligations of the vendor under this 

16 chapter; 

17 ‘‘(3) notifies each person who attends the gun 

18 show of the requirements of this chapter, in accord19 ance with regulations promulgated by the Attorney 

20 General; and 

21 ‘‘(4) maintains a copy of the records described 

22 in paragraph (3) at the permanent place of business 

23 of the gun show promoter for such period of time 

24 and in such form as the Attorney General shall re25 quire by regulation. 
973

•HR 936 IH 

1 ‘‘(b) RESPONSIBILITIES OF TRANSFERORS OTHER

2 THAN LICENSEES.—

3 ‘‘(1) IN GENERAL.—If any part of a firearm 

4 transaction takes place at a gun show, it shall be 

5 unlawful for any person who is not licensed under 

6 this chapter to transfer a firearm to another person 

7 who is not licensed under this chapter, unless the 

8 firearm is transferred through a licensed importer, 

9 licensed manufacturer, or licensed dealer in accord10 ance with subsection (d). 

11 ‘‘(2) CRIMINAL BACKGROUND CHECKS.—A per12 son who is subject to the requirement of paragraph 

13 (1)—

14 ‘‘(A) shall not transfer the firearm to the 

15 transferee until the licensed importer, licensed 

16 manufacturer, or licensed dealer through which 

17 the transfer is made under subsection (d) 

18 makes the notification described in subsection 

19 (d)(3)(A); and 

20 ‘‘(B) notwithstanding subparagraph (A), 

21 shall not transfer the firearm to the transferee 

22 if the licensed importer, licensed manufacturer, 

23 or licensed dealer through which the transfer is 

24 made under subsection (d) makes the notifica25 tion described in subsection (d)(3)(B). 
974

•HR 936 IH 

1 ‘‘(3) ABSENCE OF RECORDKEEPING REQUIRE2 MENTS.—Nothing in this section shall permit or au3 thorize the Attorney General to impose record4 keeping requirements on any nonlicensed vendor. 

5 ‘‘(c) RESPONSIBILITIES OF TRANSFEREES OTHER

6 THAN LICENSEES.—

7 ‘‘(1) IN GENERAL.—If any part of a firearm 

8 transaction takes place at a gun show, it shall be 

9 unlawful for any person who is not licensed under 

10 this chapter to receive a firearm from another per11 son who is not licensed under this chapter, unless 

12 the firearm is transferred through a licensed im13 porter, licensed manufacturer, or licensed dealer in 

14 accordance with subsection (d). 

15 ‘‘(2) CRIMINAL BACKGROUND CHECKS.—A per16 son who is subject to the requirement of paragraph 

17 (1)— 

18 ‘‘(A) shall not receive the firearm from the 

19 transferor until the licensed importer, licensed 

20 manufacturer, or licensed dealer through which 

21 the transfer is made under subsection (d) 

22 makes the notification described in subsection 

23 (d)(3)(A); and 

24 ‘‘(B) notwithstanding subparagraph (A), 

25 shall not receive the firearm from the transferor 
975

•HR 936 IH 

1 if the licensed importer, licensed manufacturer, 

2 or licensed dealer through which the transfer is 

3 made under subsection (d) makes the notifica4 tion described in subsection (d)(3)(B). 

5 ‘‘(d) RESPONSIBILITIES OF LICENSEES.—A licensed 

6 importer, licensed manufacturer, or licensed dealer who 

7 agrees to assist a person who is not licensed under this 

8 chapter in carrying out the responsibilities of that person 

9 under subsection (b) or (c) with respect to the transfer 

10 of a firearm shall—

11 ‘‘(1) enter such information about the firearm 

12 as the Attorney General may require by regulation 

13 into a separate bound record; 

14 ‘‘(2) record the transfer on a form specified by 

15 the Attorney General; 

16 ‘‘(3) comply with section 922(t) as if transfer17 ring the firearm from the inventory of the licensed 

18 importer, licensed manufacturer, or licensed dealer 

19 to the designated transferee (although a licensed im20 porter, licensed manufacturer, or licensed dealer 

21 complying with this subsection shall not be required 

22 to comply again with the requirements of section 

23 922(t) in delivering the firearm to the nonlicensed 

24 transferor), and notify the nonlicensed transferor 

25 and the nonlicensed transferee— 
976

•HR 936 IH 

1 ‘‘(A) of such compliance; and 

2 ‘‘(B) if the transfer is subject to the re3 quirements of section 922(t)(1), of any receipt 

4 by the licensed importer, licensed manufacturer, 

5 or licensed dealer of a notification from the na6 tional instant criminal background check sys7 tem that the transfer would violate section 922 

8 or State law; 

9 ‘‘(4) not later than 10 days after the date on 

10 which the transfer occurs, submit to the Attorney 

11 General a report of the transfer, which report—

12 ‘‘(A) shall be on a form specified by the 

13 Attorney General by regulation; and 

14 ‘‘(B) shall not include the name of, or 

15 other identifying information relating to, any 

16 person involved in the transfer who is not li17 censed under this chapter; 

18 ‘‘(5) if the licensed importer, licensed manufac19 turer, or licensed dealer, during any 5 consecutive 

20 business days, assists a person other than a licensee 

21 in transferring any combination of pistols and re22 volvers totaling 2 or more to the same nonlicensed 

23 person, prepare a report of the multiple transfers on 

24 a form specified by the Attorney General; 
977

•HR 936 IH 

1 ‘‘(6) not later than the close of business on the 

2 date on which the transfer occurs, submit the report 

3 prepared pursuant to paragraph (5) to— 

4 ‘‘(A) the office specified on the form de5 scribed in paragraph (5); and 

6 ‘‘(B) the appropriate State law enforce7 ment agency of the jurisdiction in which the 

8 transfer occurs; and 

9 ‘‘(7) retain a record of the transfer as part of 

10 the permanent business records of the licensed im11 porter, licensed manufacturer, or licensed dealer. 

12 ‘‘(e) RECORDS OF LICENSEE TRANSFERS.—If any 

13 part of a firearm transaction takes place at a gun show, 

14 each licensed importer, licensed manufacturer, and li15 censed dealer who transfers 1 or more firearms to a person 

16 who is not licensed under this chapter shall, not later than 

17 10 days after the date on which the transfer occurs, sub18 mit to the Attorney General a report of the transfer, which 

19 report—

20 ‘‘(1) shall be in a form specified by the Attor21 ney General by regulation; 

22 ‘‘(2) shall not include the name of or other 

23 identifying information relating to the transferee; 

24 and 
978

•HR 936 IH 

1 ‘‘(3) shall not duplicate information provided in 

2 any report required under subsection (d)(4). 

3 ‘‘(f) DEFINED TERM.—In this section, the term ‘fire4 arm transaction’— 

5 ‘‘(1) includes the offer for sale, sale, transfer, 

6 or exchange of a firearm; and 

7 ‘‘(2) does not include the mere exhibition of a 

8 firearm.’’. 

9 (2) PENALTIES.—Section 924(a) of title 18, 

10 United States Code, is amended by adding at the 

11 end the following: 

12 ‘‘(8)(A) Whoever knowingly violates subsection 

13 (a)(1), (d), or (e) of section 932 shall be fined under this 

14 title, imprisoned not more than 5 years, or both. 

15 ‘‘(B) Whoever knowingly violates subsection (a) (ex16 cept for paragraph (1)), (c), or (d) of section 932, shall 

17 be—

18 ‘‘(i) fined under this title, imprisoned not more 

19 than 2 years, or both; and 

20 ‘‘(ii) in the case of a second or subsequent con21 viction, fined under this title, imprisoned not more 

22 than 5 years, or both. 

23 ‘‘(C) In addition to any other penalties imposed 

24 under this paragraph, the Attorney General may, with re-
979

•HR 936 IH 

1 spect to any person who knowingly violates any provision 

2 of section 932— 

3 ‘‘(i) if the person is registered pursuant to sec4 tion 932(a)(1), after notice and opportunity for a 

5 hearing, suspend for not more than 6 months or re6 voke the registration of that person under section 

7 932(a)(1); and 

8 ‘‘(ii) impose a civil fine in an amount equal to 

9 not more than $10,000.’’.

10 (3) TECHNICAL AND CONFORMING AMEND11 MENTS.—Chapter 44 of title 18, United States 

12 Code, is amended—

13 (A) in the chapter analysis, by adding at 

14 the end the following:

‘‘932. Regulation of firearms transfers at gun shows.’’;

15 and 

16 (B) in the first sentence of section 923(j), 

17 by striking ‘‘a gun show or event’’ and inserting 

18 ‘‘an event’’. 

19 (d) INSPECTION AUTHORITY.—Section 923(g)(1) is 

20 amended by adding at the end the following: 

21 ‘‘(E)(i) Notwithstanding subparagraph (B), the At22 torney General may enter, during business hours, the 

23 place of business of any gun show promoter and any place 

24 where a gun show is held for the purposes of examining 
980

•HR 936 IH 

1 the records required by sections 923 and 932 and the in2 ventory of licensees conducting business at the gun show. 

3 ‘‘(ii) An entry and examination under clause (i) shall 

4 be conducted to determine compliance with this chapter 

5 by gun show promoters and licensees conducting business 

6 at the gun show and shall not require a showing of reason7 able cause or a warrant.’’. 

8 (e) INCREASED PENALTIES FOR SERIOUS RECORD9 KEEPING VIOLATIONS BY LICENSEES.—Section 924(a) of 

10 title 18, United States Code, is amended by striking para11 graph (3) and inserting the following: 

12 ‘‘(3)(A) Except as provided in subparagraph (B), any 

13 licensed dealer, licensed importer, licensed manufacturer, 

14 or licensed collector who knowingly makes any false state15 ment or representation with respect to the information re16 quired by this chapter to be kept in the records of a person 

17 licensed under this chapter, or violates section 922(m), 

18 shall be fined under this title, imprisoned not more than 

19 5 years, or both. 

20 ‘‘(B) If the violation described in subparagraph (A) 

21 is in relation to an offense— 

22 ‘‘(i) under paragraph (1) or (3) of section 

23 922(b), such person shall be fined under this title, 

24 imprisoned not more than 5 years, or both; and 
981

•HR 936 IH 

1 ‘‘(ii) under subsection (a)(6) or (d) of section 

2 922, such person shall be fined under this title, im3 prisoned not more than 10 years, or both.’’. 

4 (f) INCREASED PENALTIES FOR VIOLATIONS OF

5 CRIMINAL BACKGROUND CHECK REQUIREMENTS.—

6 (1) PENALTIES.—Section 924(a) of title 18, 

7 United States Code, as amended by subsection (e)), 

8 is further amended—

9 (A) in paragraph (5), by striking ‘‘sub10 section (s) or (t) of section 922’’ and inserting 

11 ‘‘section 922(s)’’; and 

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

13 ‘‘(9) Whoever knowingly violates section 922(t) shall 

14 be fined under this title, imprisoned not more than 5 

15 years, or both.’’. 

16 (2) ELIMINATION OF CERTAIN ELEMENTS OF

17 OFFENSE.—Section 922(t)(5) of title 18, United 

18 States Code, is amended by striking ‘‘and, at the 

19 time’’ and all that follows through ‘‘State law’’. 

20 (g) GUN OWNER PRIVACY AND PREVENTION OF

21 FRAUD AND ABUSE OF SYSTEM INFORMATION.—Section 

22 922(t)(2)(C) of title 18, United States Code, is amended 

23 by inserting before the period at the end ‘‘, as soon as 

24 possible, in accordance with section 103(h) of the Brady 

25 Handgun Violence Prevention Act (18 U.S.C. 922 note), 
982

•HR 936 IH 

1 and not later than 90 days after the date on which the 

2 licensee first contacts the system with respect to the trans3 fer’’. 

4 (h) EFFECTIVE DATE.—This section and the amend5 ments made by this section shall take effect 180 days after 

6 the date of enactment of this Act. 

7 Subtitle B—Child Safety Locks 

8 SEC. 11101. REQUIREMENT OF CHILD HANDGUN SAFETY 

9 LOCKS. 

10 (a) DEFINITIONS.—Section 921(a) of title 18, United 

11 States Code, as amended by section 11001(b), is further 

12 amended by adding at the end the following: 

13 ‘‘(39) LOCKING DEVICE.—The term ‘locking de14 vice’ means a device or locking mechanism that is 

15 approved by a licensed firearms manufacturer for 

16 use on the handgun with which the device or locking 

17 mechanism is sold, delivered, or transferred and 

18 that— 

19 ‘‘(A) if installed on a firearm and secured 

20 by means of a key or a mechanically, electroni21 cally, or electromechanically-operated combina22 tion lock, is designed to prevent the firearm 

23 from being discharged without first deactivating 

24 or removing the device by means of a key or 
983

•HR 936 IH 

1 mechanically, electronically, or 

2 electromechanically-operated combination lock; 

3 ‘‘(B) if incorporated into the design of a 

4 firearm, is designed to prevent discharge of the 

5 firearm by any person who does not have access 

6 to the key or other device designed to unlock 

7 the mechanism and thereby allow discharge of 

8 the firearm; or 

9 ‘‘(C) is a safe, gun safe, gun case, lock 

10 box, or other device that is designed to—

11 ‘‘(i) store a firearm; and 

12 ‘‘(ii) be unlocked only by means of a 

13 key, a combination, or other similar 

14 means.’’. 

15 (b) UNLAWFUL ACTS.—

16 (1) IN GENERAL.—Section 922 of title 18, 

17 United States Code, is amended by inserting at the 

18 end the following: 

19 ‘‘(z) LOCKING DEVICES.—

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graph (2), it shall be unlawful for any licensed man22 ufacturer, licensed importer, or licensed dealer to 

23 sell, deliver, or transfer any handgun to any person 

24 other than a licensed manufacturer, licensed im-
984

•HR 936 IH 

1 porter, or licensed dealer, unless the transferee is 

2 provided with a locking device for that handgun. 

3 ‘‘(2) EXCEPTIONS.—Paragraph (1) does not 

4 apply to— 

5 ‘‘(A) the manufacture for, transfer to, or 

6 possession of a firearm by—

7 ‘‘(i) the United States; 

8 ‘‘(ii) a department or agency of the 

9 United States; 

10 ‘‘(iii) a State; or 

11 ‘‘(iv) a department, agency, or polit12 ical subdivision of a State; 

13 ‘‘(B) the transfer to, or possession of a 

14 firearm for law enforcement purposes by, a law 

15 enforcement officer employed by an entity re16 ferred to in subparagraph (A); and 

17 ‘‘(C) the transfer to, or possession of a 

18 firearm for law enforcement purposes by, a rail 

19 police officer, employed by a rail carrier and 

20 certified or commissioned as a police officer 

21 under the laws of a State.’’. 

22 (2) EFFECTIVE DATE.—Section 922(z) of title 

23 18, United States Code, as added by this subsection, 

24 shall take effect 180 days after the date of enact25 ment of this Act. 
985

•HR 936 IH 

1 (c) CIVIL PENALTIES.—Section 924 of title 18, 

2 United States Code, is amended—

3 (1) in subsection (a)(1), by striking ‘‘or (f)’’ 

4 and inserting ‘‘(f), or (q)’’; and 

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

6 ‘‘(q) PENALTIES RELATING TO LOCKING DEVICES.—

7 ‘‘(1) IN GENERAL.—

8 ‘‘(A) SUSPENSION OR REVOCATION OF LI9 CENSE; CIVIL PENALTIES.—With respect to 

10 each violation of section 922(z)(1) by a licensee, 

11 the Attorney General may, after notice and op12 portunity for hearing— 

13 ‘‘(i) suspend or revoke any license 

14 issued to the licensee under this chapter; 

15 or 

16 ‘‘(ii) subject the licensee to a civil 

17 penalty in an amount equal to not more 

18 than $10,000. 

19 ‘‘(B) REVIEW.—An action of the Attorney 

20 General under this paragraph may be reviewed 

21 only as provided under section 923(f). 

22 ‘‘(2) ADMINISTRATIVE REMEDIES.—The sus23 pension or revocation of a license or the imposition 

24 of a civil penalty under paragraph (1) does not pre-
986

•HR 936 IH 

1 clude any administrative remedy that is otherwise 

2 available to the Attorney General.’’. 

3 (d) CONSUMER PRODUCT SAFETY ACT.—The Con4 sumer Product Safety Act (15 U.S.C. 2051 et seq.) is 

5 amended by adding at the end the following: 

6 ‘‘SEC. 39. CHILD HANDGUN SAFETY LOCKS. 

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

8 ‘‘(1) CHILD.—The term ‘child’ means an indi9 vidual who is less than 13 years of age. 

10 ‘‘(2) LOCKING DEVICE.—The term ‘locking de11 vice’ has the meaning given that term in section 

12 921(a)(39)(A) of title 18, United States Code. 

13 ‘‘(b) ESTABLISHMENT OF STANDARD.—

14 ‘‘(1) RULEMAKING.—

15 ‘‘(A) INITIATION OF RULEMAKING.—Not16 withstanding section 3(a)(1), the Commission 

17 shall initiate, not later than 90 days after the 

18 date of enactment of this section, a rulemaking 

19 proceeding under section 553 of title 5, United 

20 States Code, to establish a consumer product 

21 safety standard for locking devices. For good 

22 cause, the Commission may extend this 90-day 

23 period for an additional 90 days. 

24 ‘‘(B) FINAL STANDARD.—The Commission 

25 shall promulgate, not later than 12 months 
987

•HR 936 IH 

1 after the date on which the Commission initi2 ated the rulemaking, a final consumer product 

3 safety standard. For good cause, the Commis4 sion may extend this 12-month period. 

5 ‘‘(C) EFFECTIVE DATE.—The consumer 

6 product safety standard promulgated under this 

7 paragraph shall take effect 6 months after the 

8 date on which the final standard is promulgated 

9 pursuant to subparagraph (B). 

10 ‘‘(D) STANDARD REQUIREMENTS.—The 

11 standard promulgated pursuant to subpara12 graph (B) shall require locking devices that—

13 ‘‘(i) are sufficiently difficult for chil14 dren to deactivate or remove; and 

15 ‘‘(ii) prevent the discharge of the 

16 handgun unless the locking device has been 

17 deactivated or removed. 

18 ‘‘(2) NONAPPLICABLE PROVISIONS.—

19 ‘‘(A) PROVISIONS OF THIS ACT.—Sections 

20 7, 9, and 30(d) shall not apply to the rule21 making proceeding under paragraph (1) and 

22 section 11 shall not apply to any consumer 

23 product safety standard promulgated under 

24 paragraph (1). 
988

•HR 936 IH 

1 ‘‘(B) TITLE 5.—Except for section 553, 

2 chapter 5 of title 5, United States Code, shall 

3 not apply to this section and chapter 6 of such 

4 title 5 shall not apply to this section. 

5 ‘‘(C) NATIONAL ENVIRONMENTAL POLICY

6 ACT OF 1969.—The National Environmental 

7 Policy Act of 1969 (42 U.S.C. 4321) shall not 

8 apply to this section. 

9 ‘‘(b) NO EFFECT ON STATE LAW.—

10 ‘‘(1) IN GENERAL.—Notwithstanding section 

11 26, this section shall not annul, alter, impair, affect, 

12 or exempt any person subject to the provisions of 

13 this section from complying with any provision of 

14 the law of any State or any political subdivision 

15 thereof, except to the extent that such provisions of 

16 State law are inconsistent with any provision of this 

17 section. 

18 ‘‘(2) CONSTRUCTION.—A provision of State law 

19 is not inconsistent with this section if such provision 

20 provides children with greater protection from hand21 guns than is provided by this section. 

22 ‘‘(c) ENFORCEMENT.—Notwithstanding subsection 

23 (b)(2)(A), the consumer product safety standard promul24 gated by the Commission pursuant to subsection (b) shall 
989

•HR 936 IH 

1 be enforced under this Act as if it were a consumer prod2 uct safety standard described in section 7(a).’’. 

3 (e) CONFORMING AMENDMENT FOR CONSUMER

4 PRODUCT SAFETY ACT.—Section 1 of the Consumer 

5 Product Safety Act is amended by adding at the end of 

6 the table of contents the following:

‘‘Sec. 39. Child handgun safety locks.

7 (f) AUTHORIZATION OF APPROPRIATIONS FOR CON8 SUMER PRODUCT SAFETY COMMISSION.—There are au9 thorized to be appropriated to the Consumer Product 

10 Safety Commission $2,000,000 to carry out the provisions 

11 of section 39 of the Consumer Product Safety Act, as 

12 added by subsection (d), which shall remain available until 

13 expended. 

14 (g) LIABILITY; EVIDENCE.—

15 (1) LIABILITY.—Nothing in this section, or the 

16 amendments made by this section, shall be construed 

17 to—

18 (A) create a cause of action against any 

19 dealer of firearms or any other person for any 

20 civil liability; or 

21 (B) establish any standard of care. 

22 (2) EVIDENCE.—Notwithstanding any other 

23 provision of law, evidence regarding compliance or 

24 noncompliance with the amendments made by this 
990

•HR 936 IH 

1 section shall not be admissible as evidence in any 

2 proceeding of any court, agency, board, or other en3 tity, except with respect to an action to enforce this 

4 section. 

5 (3) RULE OF CONSTRUCTION.—Nothing in this 

6 subsection shall be construed to bar a governmental 

7 action to impose a penalty under section 924(q) of 

8 title 18, United States Code, as added by subsection 

9 (d), for a failure to comply with section 922(z) of 

10 that title. 

11 Subtitle C—Unlawful Weapons 

12 Transfers 

13 SEC. 11201. UNLAWFUL WEAPONS TRANSFERS TO JUVE14 NILES. 

15 (a) IN GENERAL.—Section 922(x) of title 18, United 

16 States Code, is amended to read as follows: 

17 ‘‘(x) JUVENILES.—

18 ‘‘(1) TRANSFERS TO JUVENILES.—It shall be 

19 unlawful for a person to sell, deliver, or otherwise 

20 transfer to a person who the transferor knows, or 

21 has reasonable cause to believe, is a juvenile—

22 ‘‘(A) a handgun; 

23 ‘‘(B) ammunition that is suitable for use 

24 only in a handgun (in this section referred to 

25 as ‘‘ammunition’’); 
991

•HR 936 IH 

1 ‘‘(C) a semiautomatic assault weapon; or 

2 ‘‘(D) a large capacity ammunition feeding 

3 device. 

4 ‘‘(2) POSSESSION BY JUVENILES.—It shall be 

5 unlawful for any person who is a juvenile to know6 ingly possess—

7 ‘‘(A) a handgun; 

8 ‘‘(B) ammunition; 

9 ‘‘(C) a semiautomatic assault weapon; or 

10 ‘‘(D) a large capacity ammunition feeding 

11 device. 

12 ‘‘(3) EXCEPTIONS.—This subsection shall not 

13 apply to—

14 ‘‘(A) a temporary transfer to a juvenile of 

15 a handgun, ammunition, large capacity ammu16 nition feeding device, or a semiautomatic as17 sault weapon or the possession or use by a juve18 nile of a handgun, ammunition, large capacity 

19 ammunition feeding device, or a semiautomatic 

20 assault weapon—

21 ‘‘(i) if the handgun, ammunition, 

22 large capacity ammunition feeding device, 

23 or semiautomatic assault weapon is pos24 sessed and used by the juvenile—

25 ‘‘(I) in the course of employment; 
992

•HR 936 IH 

1 ‘‘(II) in the course of ranching or 

2 farming related to activities at the 

3 residence of the juvenile (or on prop4 erty used for ranching or farming at 

5 which the juvenile, with the permis6 sion of the property owner or lessee, is 

7 performing activities related to the op8 eration of the farm or ranch); 

9 ‘‘(III) for target practice; 

10 ‘‘(IV) for hunting; or 

11 ‘‘(V) for a course of instruction 

12 in the safe and lawful use of a fire13 arm; 

14 ‘‘(ii) if the juvenile’s possession and 

15 use of a handgun, ammunition, large ca16 pacity ammunition feeding device, or a 

17 semiautomatic assault weapon under this 

18 subparagraph are in accordance with State 

19 and local law; 

20 ‘‘(iii) if a parent or guardian of the 

21 juvenile is not in the immediate and super22 visory presence of the juvenile, the juvenile, 

23 at all times when a handgun, ammunition, 

24 large capacity ammunition feeding device, 

25 or semiautomatic assault weapon has pos-
993

•HR 936 IH 

1 session of the prior written consent of the 

2 juvenile’s parent or guardian who is not 

3 prohibited by Federal, State, or local law 

4 from possessing a firearm or ammunition; 

5 ‘‘(iv) if, during transportation by the 

6 juvenile to and from the place at which an 

7 activity described in clause (i) is to take 

8 place, the firearm is kept unloaded and 

9 stored in a locked container or case; and 

10 ‘‘(v) if, with respect to the employ11 ment, ranching or farming activities de12 scribed in clause (i)—

13 ‘‘(I) the juvenile possesses and 

14 uses a handgun, ammunition, a large 

15 capacity ammunition feeding device, 

16 or a semiautomatic assault rifle with 

17 the prior written approval of the juve18 nile’s parent or legal guardian; and 

19 ‘‘(II)(aa) such approval is on file 

20 with the parent or legal guardian; 

21 ‘‘(bb) the parent or legal guard22 ian is not prohibited by Federal, 

23 State, or local law from possessing a 

24 firearm or ammunition; and 
994

•HR 936 IH 

1 ‘‘(cc) the parent or legal guard2 ian is directing the ranching or farm3 ing activities of the juvenile; 

4 ‘‘(B) a juvenile, as a member of the Armed 

5 Forces of the United States or the National 

6 Guard, who possesses or is armed with a hand7 gun, ammunition, large capacity ammunition 

8 feeding device, or semiautomatic assault weapon 

9 in the line of duty; 

10 ‘‘(C) a transfer to a juvenile by inheritance 

11 of title (but not possession) of a handgun, am12 munition, large capacity ammunition feeding 

13 device, or a semiautomatic assault weapon; or 

14 ‘‘(D) the possession by a juvenile of a 

15 handgun, ammunition, large capacity ammuni16 tion feeding device, or a semiautomatic assault 

17 weapon taken in the lawful defense of the juve18 nile or other persons in the residence of the ju19 venile or a residence in which the juvenile is an 

20 invited guest. 

21 ‘‘(4) PROPERTY RIGHT RETAINED.—The trans22 fer to a juvenile of a handgun, ammunition, a large 

23 capacity ammunition feeding device, or a semiauto24 matic assault weapon that does not violate this sub25 section shall not result in the permanent confiscation 
995

•HR 936 IH 

1 of the firearm by the Government if its possession 

2 by the juvenile subsequently becomes unlawful be3 cause of the conduct of the juvenile, but shall be re4 turned to the lawful owner when such handgun, am5 munition, large capacity ammunition feeding device, 

6 or semiautomatic assault weapon is no longer re7 quired by the Government for the purposes of inves8 tigation or prosecution. 

9 ‘‘(5) CRIMINAL PROCEDURE.—

10 ‘‘(A) MANDATORY ATTENDANCE OF PAR11 ENT OR LEGAL GUARDIAN AT PROCEEDINGS.—

12 In a prosecution of a violation of this sub13 section, the court shall require the presence of 

14 a parent or legal guardian of the juvenile de15 fendant at all proceedings. 

16 ‘‘(B) CONTEMPT POWER.—The court may 

17 use the contempt power to enforce compliance 

18 with subparagraph (A). 

19 ‘‘(C) WAIVER.—The court may waive the 

20 attendance requirement under subparagraph 

21 (A) for good cause shown. 

22 ‘‘(6) DEFINITIONS.—As used in this subsection, 

23 the following definitions shall apply: 
996

•HR 936 IH 

1 ‘‘(A) JUVENILE.—The term ‘juvenile’ 

2 means an individual who is less than 21 years 

3 of age. 

4 ‘‘(B) LARGE CAPACITY AMMUNITION FEED5 ING DEVICE.—The term ‘large capacity ammu6 nition feeding device’ has the same meaning as 

7 in section 921(a)(31).’’. 

8 (b) EFFECTIVE DATE.—This section and the amend9 ment made by this section shall take effect 180 days after 

10 the date of enactment of this Act. 

11 Subtitle D—Large Capacity 

12 Ammunition Feeding Devices 

13 SEC. 11301. BAN ON IMPORTING LARGE CAPACITY AMMUNI14 TION FEEDING DEVICES. 

15 (a) IN GENERAL.—Section 922(w) of title 18, United 

16 States Code, is amended—

17 (1) in paragraph (1), by striking ‘‘(1) Except as 

18 provided in paragraph (2)’’ and inserting ‘‘(1)(A) 

19 Except as provided in subparagraph (B)’’; 

20 (2) in paragraph (2), by striking ‘‘(2) Para21 graph (1)’’ and inserting ‘‘(B) Subparagraph (A)’’; 

22 (3) by inserting before paragraph (3) the fol23 lowing: 

24 ‘‘(2) It shall be unlawful for any person to import 

25 a large capacity ammunition feeding device.’’; and 
997

•HR 936 IH 

1 (4) in paragraph (4)—

2 (A) by striking ‘‘(1)’’ each place it appears 

3 and inserting ‘‘(1)(A)’’; and 

4 (B) by striking ‘‘(2)’’ and inserting 

5 ‘‘(1)(B)’’. 

6 (b) CONFORMING AMENDMENT.—Section 921(a)(31) 

7 of title 18, United States Code, is amended by striking 

8 ‘‘manufactured after the date of enactment of the Violent 

9 Crime Control and Law Enforcement Act of 1994’’. 

10 Subtitle E—Enforcement of Gun 

11 Laws 

12 SEC. 11401. ENHANCE ENFORCEMENT OF GUN VIOLENCE 

13 LAWS. 

14 (a) CRIMINAL GUN TRAFFICKER APPREHENSION.—

15 (1) DEFINITION OF LICENSED DEALER.—Sec16 tion 921(a)(22) of title 18, United States Code, is 

17 amended—

18 (A) by redesignating clauses (i) through 

19 (iii) as subclauses (I) through (III); 

20 (B) by redesignating subparagraphs (A) 

21 through (C) as clauses (i) through (iii); 

22 (C) by inserting ‘‘(A)’’ after ‘‘(22)’’; 

23 (D) by striking ‘‘: Provided,’’ and inserting 

24 a period; 
998

•HR 936 IH 

1 (E) by striking ‘‘That proof’’ and inserting 

2 the following: 

3 ‘‘(B) For purposes of this paragraph, proof’’; and 

4 (F) by striking ‘‘For purposes of this para5 graph, the term’’ and inserting the following: 

6 ‘‘(C) For purposes of this paragraph, the intent un7 derlying the sale or disposition of a firearm is presumed 

8 to be predominantly one of obtaining livelihood and pecu9 niary gain if a person transfers more than 50 firearms 

10 during any 12-month period, or more than 30 firearms 

11 during any 30-day period, excluding any infrequent trans12 fer of a firearm by gift, bequest, intestate succession, or 

13 other means by an individual to a parent, child, grand14 parent, or grandchild of the individual. 

15 ‘‘(D) For purposes of this paragraph, the term’’. 

16 (2) REQUIREMENT THAT LICENSEE OPERATE

17 FROM FIXED PREMISES.—Section 923(d)(1)(E) of 

18 title 18, United States Code, is amended to read as 

19 follows: 

20 ‘‘(E) the applicant has, in a State—

21 ‘‘(i) fixed premises (other than a private 

22 residence) that are primarily devoted to the sale 

23 of firearms, and conspicuously designated to the 

24 public as such, from which the applicant con25 ducts business subject to a license issued pursu-
999

•HR 936 IH 

1 ant to this chapter or from which the applicant 

2 intends to conduct such business within a rea3 sonable period of time; or 

4 ‘‘(ii) in the case of a collector, premises 

5 from which the collector conducts collecting ac6 tivities subject to a licensed issued pursuant to 

7 this chapter, or from which the collector intends 

8 to conduct such collecting within a reasonable 

9 period of time.’’. 

10 (3) SECURE STORAGE OF FIREARMS INVEN11 TORIES.—

12 (A) STORAGE REQUIREMENTS.—Section 

13 923 of title 18, United States Code, is amended 

14 by adding at the end the following: 

15 ‘‘(m) SECURE STORAGE OF FIREARMS INVEN16 TORIES.—

17 ‘‘(1) IN GENERAL.—Beginning on the date on 

18 which the Attorney General issues final regulations 

19 under paragraph (2), it shall be unlawful for any li20 censed importer, licensed manufacturer, or licensed 

21 dealer (other than a dealer described in section 

22 921(a)(11)(B)) to store any firearm on premises de23 scribed in subsection (d)(1)(E)(i), other than in ac24 cordance with those regulations. 

25 ‘‘(2) REGULATIONS.—
1000

•HR 936 IH 

1 ‘‘(A) IN GENERAL.—Not later than 180 

2 days after the date of enactment of this sub3 section, the Attorney General shall issue final 

4 regulations governing the secure storage of fire5 arms on premises described in subsection 

6 (d)(1)(E)(i) by licensed importers, licensed 

7 manufacturers, and licensed dealers.

8 ‘‘(B) FACTORS FOR CONSIDERATION.—In 

9 promulgating regulations issued under this 

10 paragraph, the Attorney General shall con11 sider—

12 ‘‘(i) the type and quantity of the fire13 arm or firearms to be stored; and 

14 ‘‘(ii) the standards of safety and secu15 rity recognized in the firearms industry.’’. 

16 (B) PENALTIES.—Section 924 of title 18, 

17 United States Code, as amended by section 

18 11101, is further amended—

19 (i) in subsection (a)(1), by striking 

20 ‘‘(f), or (q)’’ and inserting ‘‘(f), (q), or 

21 (r)’’; and 

22 (ii) by adding at the end the fol23 lowing: 

24 ‘‘(r) FAILURE TO SECURELY STORE FIREARMS IN25 VENTORY.—
1001

•HR 936 IH 

1 ‘‘(1) IN GENERAL.—The Attorney General may, 

2 after notice and opportunity for hearing—

3 ‘‘(A) suspend or revoke any license issued 

4 under this chapter; 

5 ‘‘(B) may subject the licensee to a civil 

6 penalty of not more than $10,000; or 

7 ‘‘(C) if the holder of such license has 

8 knowingly violated section 923(m), impose the 

9 penalties under subparagraphs (A) and (B). 

10 ‘‘(2) REVIEW.—An action of the Attorney Gen11 eral under this subsection may be reviewed only as 

12 provided in section 923(f).’’. 

13 (C) CONDITION OF LICENSING.—

14 (i) IN GENERAL.—Section 

15 923(d)(1)(F) of title 18, United States 

16 Code, is amended—

17 (I) in clause (ii)(II), by striking 

18 ‘‘and’’ at the end; and 

19 (II) by adding at the end the fol20 lowing: 

21 ‘‘(iv) not later than 30 days after the date on 

22 which the application is approved, the firearms in23 ventory of the business will be stored in accordance 

24 with the regulations issued pursuant to section 

25 923(m)(2); and’’. 
1002

•HR 936 IH 

1 (ii) EFFECTIVE DATE.—The amend2 ments made by this subparagraph shall 

3 apply to any application submitted under 

4 section 923 of title 18, United States 

5 Code, on or after the date on which final 

6 regulations are issued by the Attorney 

7 General under subsection (m)(2) of such 

8 section, as added by this paragraph. 

9 (4) REQUIRING THEFTS FROM COMMON CAR10 RIERS TO BE REPORTED.—

11 (A) IN GENERAL.—Section 922(f) of title 

12 18, United States Code, is amended by adding 

13 at the end the following: 

14 ‘‘(3)(A) It shall be unlawful for any common or con15 tract carrier to fail to report the theft or loss of a firearm, 

16 within 48 hours after the theft or loss is discovered, to—

17 ‘‘(i) the Attorney General; and 

18 ‘‘(ii) the appropriate local authorities. 

19 ‘‘(B) The Attorney General may impose a civil fine 

20 of not more than $10,000 on any person who knowingly 

21 violates subparagraph (A).’’. 

22 (B) PENALTIES.—Section 924(a)(1)(B) of 

23 title 18, United States Code, is amended by 

24 striking ‘‘(f),’’ and inserting ‘‘(f)(1), (f)(2),’’. 

25 (b) CRIMINAL GUN DEALER DETECTION.—
1003

•HR 936 IH 

1 (1) RECORDKEEPING INSPECTIONS.—Section 

2 923(g)(1)(B)(ii)(I) of title 18, United States Code, 

3 is amended by striking ‘‘once’’ and inserting ‘‘4 

4 times’’. 

5 (2) DISPOSAL OF PERSONAL FIREARMS COL6 LECTION BY CERTAIN LICENSEES MADE SUBJECT TO

7 REGULATIONS..—Section 923(c) of title 18, United 

8 States Code, is amended—

9 (A) by inserting ‘‘(1) before the first sen10 tence; 

11 (B) by striking the second sentence and in12 serting the following: 

13 ‘‘(2) For purposes of this chapter, a personal collec14 tion of firearms of a licensed manufacturer, licensed im15 porter, or licensed dealer shall be considered to be part 

16 of the business inventory of the licensee, except that the 

17 provisions of this chapter applicable to the disposition of 

18 a firearm from the business inventory of a licensee shall 

19 not apply to the infrequent transfer of a firearm by gift, 

20 bequest, intestate succession, or other means from the per21 sonal collection of firearms of a licensee to a parent, child, 

22 grandparent, or grandchild of the licensee.’’; and 

23 (C) in the third sentence, by striking ‘‘If 

24 any firearm’’ and inserting the following: 

25 ‘‘(3) If any firearm’’. 
1004

•HR 936 IH 

1 (3) SUSPENSION OR REVOCATION OF FIREARMS

2 DEALER LICENSE AND CIVIL PENALTIES.—

3 (A) IN GENERAL.—Section 923(e) of title 

4 18, United States Code, is amended to read as 

5 follows: 

6 ‘‘(e) SUSPENSION OR REVOCATION OF DEALER LI7 CENSE; CIVIL PENALTIES.—

8 ‘‘(1) WILLFUL VIOLATIONS.—If the holder of a 

9 license issued under this section has willfully violated 

10 any provision of this chapter or any rule or regula11 tion prescribed by the Attorney General pursuant to 

12 this chapter, the Attorney General may, after notice 

13 and opportunity for hearing—

14 ‘‘(A) suspend or revoke such license; 

15 ‘‘(B) assess that licensee with a civil pen16 alty equal to not more than $10,000 per viola17 tion; or 

18 ‘‘(C) take the actions described in subpara19 graphs (A) and (B). 

20 ‘‘(2) TRANSFER OF ARMOR PIERCING AMMUNI21 TION.—If a dealer willfully transfers armor piercing 

22 ammunition, the Attorney General may, after notice 

23 and opportunity for hearing— 

24 ‘‘(A) suspend or revoke the license of that 

25 dealer; 
1005

•HR 936 IH 

1 ‘‘(B) assess that dealer with a civil penalty 

2 equal to not more than $10,000; or 

3 ‘‘(C) take the actions described in subpara4 graphs (A) and (B). 

5 ‘‘(3) COMPROMISE, MITIGATION, OR REMIT6 TANCE OF LIABILITY.—The Attorney General may 

7 at any time compromise, mitigate, or remit the li8 ability with respect to any willful violation of this 

9 chapter or any rule or regulation prescribed by the 

10 Attorney General under this chapter. 

11 ‘‘(4) REVIEW.—An action of the Attorney Gen12 eral under this subsection may be reviewed only as 

13 provided in subsection (f).’’. 

14 (B) NOTICE OF LICENSE REVOCATION OR

15 DENIAL.—Section 923(f) of title 18, United 

16 States Code, is amended to read as follows: 

17 ‘‘(f) RIGHTS OF APPLICANTS AND LICENSEES.—

18 ‘‘(1) NOTICE REQUIREMENTS.—

19 ‘‘(A) IN GENERAL.—If the Attorney Gen20 eral denies an application for, revokes, or sus21 pends, a license, or assesses a civil penalty 

22 under this section, the Attorney General shall 

23 provide the affected party with written notice of 

24 such denial, revocation, suspension, or assess25 ment. 
1006

•HR 936 IH 

1 ‘‘(B) NOTICE TO BE GIVEN BEFORE EF2 FECTIVE DATE OF REVOCATION OR SUSPEN3 SION.—Any notice of a revocation or suspension 

4 of a license under this paragraph shall be given 

5 to the holder of such license before the effective 

6 date of the revocation or suspension, as applica7 ble. 

8 ‘‘(2) APPEALS PROCESS.—

9 ‘‘(A) HEARING.—If the Attorney General 

10 denies an application for, revokes, or suspends 

11 a license, or assesses a civil penalty under this 

12 section, the Attorney General shall—

13 ‘‘(i) upon request of the aggrieved 

14 party, promptly hold a hearing, at a loca15 tion convenient to the aggrieved party, to 

16 review the denial, revocation, suspension, 

17 or assessment; and 

18 ‘‘(ii) in the case of a suspension or 

19 revocation of a license, upon the request of 

20 the holder of the license, stay the effective 

21 date of the suspension or revocation. 

22 ‘‘(B) NOTICE OF DECISION.—If, after a 

23 hearing held under subparagraph (A), the At24 torney General decides not to reverse the deci25 sion to deny the application, revoke or suspend 
1007

•HR 936 IH 

1 the license, or assess the civil penalty, as appli2 cable, the Attorney General shall provide the 

3 aggrieved party with notice of such decision. 

4 ‘‘(C) PETITION FOR DE NOVO REVIEW.—

5 ‘‘(i) IN GENERAL.—During the 60-day 

6 period beginning on the date on which an 

7 aggrieved party receives a notice under 

8 subparagraph (B), the aggrieved party 

9 may file a petition with the district court 

10 of the United States for the judicial dis11 trict in which the aggrieved party resides, 

12 or has a principal place of business, for a 

13 de novo judicial review of such denial, rev14 ocation, suspension, or assessment. 

15 ‘‘(ii) JUDICIAL PROCEEDING.—In any 

16 judicial proceeding arising from a petition 

17 under clause (i)— 

18 ‘‘(I) the court may consider any 

19 evidence submitted by the parties to 

20 the proceeding, regardless of whether 

21 or not such evidence was considered 

22 at the hearing held under subpara23 graph (A); and 

24 ‘‘(II) if the court decides that the 

25 Attorney General was not authorized 
1008

•HR 936 IH 

1 to make such denial, revocation, sus2 pension, or assessment, the court shall 

3 order the Attorney General to take 

4 such actions as may be necessary to 

5 comply with the judgment of the 

6 court.’’. 

7 (c) VIOLENT FELON GUN BAN ENFORCEMENT.—

8 (1) ADMINISTRATIVE RELIEF FROM CERTAIN

9 FIREARMS AND EXPLOSIVES PROHIBITIONS.—

10 (A) FIREARMS.—Section 925(c) of title 18, 

11 United States Code, is amended—

12 (i) in the first sentence, by striking 

13 ‘‘A person’’ and inserting ‘‘(1) A person 

14 (other than a natural person)’’; 

15 (ii) in the second sentence, by striking 

16 ‘‘Any person’’ and inserting the following: 

17 ‘‘(2) Any person’’; 

18 (iii) in the fourth sentence—

19 (I) by striking ‘‘A licensed im20 porter’’ and inserting the following: 

21 ‘‘(3) A person (other than a natural person) who is 

22 a licensed importer’’; and 

23 (II) by striking ‘‘his license’’ and 

24 inserting ‘‘the license of that person’’; 

25 and 
1009

•HR 936 IH 

1 (iv) by striking the last sentence and 

2 inserting the following: 

3 ‘‘(4) Whenever the Attorney General grants relief 

4 under this section to any person, the Attorney General 

5 shall promptly publish, in the Federal Register, a notice 

6 of such action that includes— 

7 ‘‘(A) the name of the person; 

8 ‘‘(B) the disability with respect to which the re9 lief is granted; 

10 ‘‘(C) if the disability was imposed by reason of 

11 a criminal conviction of the person, the crime for 

12 which, and the court in which, the person was con13 victed; and 

14 ‘‘(D) the reasons for the decision of the Attor15 ney General.’’. 

16 (B) EXPLOSIVE MATERIALS.—Section 

17 845(b) of title 18, United States Code, is 

18 amended—

19 (i) in the first sentence, by striking 

20 ‘‘A person’’ and inserting ‘‘(1) A person 

21 (other than a natural person)’’; and 

22 (ii) in the second sentence, by striking 

23 ‘‘A licensee or permittee’’ and inserting the 

24 following: 
1010

•HR 936 IH 

1 ‘‘(2) A licensee or permittee (other than a natural 

2 person)’’. 

3 (C) APPLICABILITY.—The amendments 

4 made by this paragraph shall apply to any ap5 plication for administrative relief and any ac6 tion for judicial review that—

7 (i) is pending on the date of enact8 ment of this section; and 

9 (ii) is brought or filed on or after the 

10 date of enactment of this section. 

11 (2) PERMANENT FIREARM PROHIBITION FOR

12 CONVICTED VIOLENT FELONS AND SERIOUS DRUG

13 OFFENDERS.—Section 921(a)(20) of title 18, United 

14 States Code, is amended—

15 (A) in the first sentence—

16 (i) by redesignating subparagraphs 

17 (A) and (B) as clauses (i) and (ii), respec18 tively; and 

19 (ii) by inserting ‘‘(A)’’ after ‘‘(20)’’; 

20 (B) in the second sentence, by striking 

21 ‘‘What’’ and inserting the following: 

22 ‘‘(B) What’’; and 

23 (C) by striking the third sentence and in24 serting the following: 
1011

•HR 936 IH 

1 ‘‘(C) A State conviction shall not be considered to be 

2 a conviction for purposes of this chapter, if— 

3 ‘‘(i) the conviction is for an offense other than 

4 a serious drug offense or violent felony (as those 

5 terms are defined in section 924(e)(2)); 

6 ‘‘(ii)(I) the person is pardoned; 

7 ‘‘(II) the person has any civil right restored, 

8 which had been taken away by virtue of the convic9 tion; or 

10 ‘‘(III) the conviction is expunged; and 

11 ‘‘(iii) the authority that grants the pardon, the 

12 restoration of civil rights, or the expunction— 

13 ‘‘(I) expressly authorizes the person to 

14 ship, transport, receive, and possess firearms; 

15 and 

16 ‘‘(II) expressly determines that the cir17 cumstances regarding the conviction and the 

18 record and reputation of the person are such 

19 that the person is not likely to act in a manner 

20 that is dangerous to public safety, and that the 

21 granting of the relief is not contrary to the pub22 lic interest.’’. 

23 (d) INTENSIVE GUN VIOLENCE REDUCTION STRAT24 EGY.—
1012

•HR 936 IH 

1 (1) FUNDING FOR FEDERAL DOMESTIC VIO2 LENCE OFFENDER RECORDKEEPING IMPROVE3 MENTS.—

4 (A) AUTHORIZATION OF APPROPRIA5 TIONS.—In addition to any other amounts au6 thorized to be appropriated for such purpose, 

7 there are authorized to be appropriated 

8 $70,000,000 for fiscal year 2004 for the im9 provement of the national instant criminal 

10 background check system established under sec11 tion 103 of the Brady Handgun Violence Pre12 vention Act (18 U.S.C. 922 note), including the 

13 improvement of the records described in sub14 paragraph (B), and especially felony and mis15 demeanor convictions for crimes of domestic vi16 olence and restraining orders with respect to in17 cidents of domestic violence. 

18 (B) RECORDS INCLUDED.—The records 

19 described in this subparagraph are—

20 (i) the records described in para21 graphs (1) through (3) of section 509(b) of 

22 the Omnibus Crime Control and Safe 

23 Streets Act of 1968 (42 U.S.C. 3759(b)); 

24 and 
1013

•HR 936 IH 

1 (ii) the records required by the Attor2 ney General under section 103 of the 

3 Brady Handgun Violence Prevention Act 

4 (18 U.S.C. 922 note) for the purpose of 

5 implementing that Act. 

6 (2) FUNDING FOR STATE AND LOCAL DOMESTIC

7 VIOLENCE OFFENDER RECORDKEEPING IMPROVE8 MENTS.—

9 (A) GRANTS FOR STATE AND LOCAL DO10 MESTIC VIOLENCE OFFENDER RECORDKEEPING

11 IMPROVEMENTS.—Title III of the Violent Crime 

12 Control and Law Enforcement Act of 1994 is 

13 amended by adding at the end the following: 

14 ‘‘Subtitle Y—Grants for State and 

15 Local Domestic Violence Of16 fender Recordkeeping Improve17 ments 

18 ‘‘SEC. 32501. GRANT AUTHORIZATION. 

19 ‘‘The Attorney General may award grants to State 

20 or local law enforcement agencies for the purpose of im21 proving—

22 ‘‘(1) the organization of criminal records, in23 cluding records relating to convictions for crimes of 

24 domestic violence and restraining orders with respect 

25 to domestic violence; and 
1014

•HR 936 IH 

1 ‘‘(2) the reporting of such records to the na2 tional instant criminal background check system es3 tablished under section 103 of the Brady Handgun 

4 Violence Prevention Act (18 U.S.C. 922 note). 

5 ‘‘SEC. 32502. USE OF FUNDS. 

6 ‘‘(a) IN GENERAL.—Grants awarded by the Attorney 

7 General under this subtitle shall be used to fund programs 

8 for the purpose specified in section 32501. 

9 ‘‘(b) MATCHING REQUIREMENT.—The Federal share 

10 of a grant awarded under this subtitle may not exceed 50 

11 percent of the total costs of the programs described in the 

12 applications submitted under section 32503 for the fiscal 

13 year for which the programs receive assistance under this 

14 subtitle. 

15 ‘‘(c) RESEARCH AND EVALUATION.—The Attorney 

16 General shall use not less than 1 percent of the funds 

17 available under this subtitle, and not more than 3 percent 

18 of such funds, for the purposes of research and evaluation 

19 of the activities carried out under this subtitle. 

20 ‘‘SEC. 32503. APPLICATIONS. 

21 ‘‘(a) IN GENERAL.—A State or local law enforcement 

22 agency desiring a grant under this subtitle shall submit 

23 to the Attorney General an application, in such form and 

24 containing such information as the Attorney General may 

25 reasonably require. 
1015

•HR 936 IH 

1 ‘‘(b) CONTENTS.—Each application submitted under 

2 this section shall include—

3 ‘‘(1) a request for funds for the purpose speci4 fied in section 32501; 

5 ‘‘(2) a description of how the applicant intends 

6 to improve—

7 ‘‘(A) the organization of the applicant’s 

8 criminal records, including records relating to 

9 convictions for crimes of domestic violence and 

10 to restraining orders with respect to domestic 

11 violence; and 

12 ‘‘(B) the applicants reporting of such 

13 records to the national instant criminal back14 ground check system; and 

15 ‘‘(3) assurances that Federal funds received 

16 under this subtitle shall be used to supplement, and 

17 not supplant, non-Federal funds that would other18 wise be available for activities funded under this sec19 tion. 

20 ‘‘(c) SELECTION CRITERIA.—In awarding grants 

21 under this subtitle, the Attorney General shall consider the 

22 demonstrated need for, and the evidence of the ability of 

23 the applicant to make, the improvements described in sub24 section (b)(2), as described in the application submitted 

25 under subsection (a). 
1016

•HR 936 IH 

1 ‘‘SEC. 32504. REPORTS. 

2 ‘‘(a) REPORT TO ATTORNEY GENERAL.—Not later 

3 than March 1 of each fiscal year, each law enforcement 

4 agency that received funds from a grant awarded under 

5 this subtitle for that fiscal year shall submit to the Attor6 ney General a report describing the progress achieved in 

7 carrying out the program for which the grant was award8 ed. 

9 ‘‘(b) REPORT TO CONGRESS.—Beginning not later 

10 than October 1 of the first fiscal year following the initial 

11 fiscal year during which grants are awarded under this 

12 subtitle, and not later than October 1 of each fiscal year 

13 thereafter, the Attorney General shall submit to Congress 

14 a report, which shall contain—

15 ‘‘(1) a detailed statement regarding grant 

16 awards and the activities of grant recipients; 

17 ‘‘(2) a compilation of statistical information 

18 submitted by applicants; and 

19 ‘‘(3) an evaluation of programs established with 

20 amounts from grants awarded under this subtitle 

21 during the preceding fiscal year. 

22 ‘‘SEC. 32505. DEFINITION OF STATE. 

23 ‘‘In this subtitle, the term ‘State’ means each of the 

24 several States of the United States, the District of Colum25 bia, the Commonwealth of Puerto Rico, the Common-
1017

•HR 936 IH 

1 wealth of the Northern Mariana Islands, American 

2 Samoa, Guam, and the United States Virgin Islands. 

3 ‘‘SEC. 32506. AUTHORIZATION OF APPROPRIATIONS. 

4 ‘‘There are authorized to be appropriated to carry out 

5 this subtitle—

6 ‘‘(1) $20,000,000 for fiscal year 2004; and 

7 ‘‘(2) such sums as may be necessary for fiscal 

8 year 2005.’’. 

9 (B) TECHNICAL AND CONFORMING AMEND10 MENT.—The table of contents in section 2 of 

11 the Violent Crime Control and Law Enforce12 ment Act of 1994 is amended by inserting after 

13 the item relating to subtitle X the following:

‘‘Subtitle Y—Grants for State and Local Domestic Violence Offender 

Recordkeeping Improvements 

‘‘Sec. 32501. Grant authorization. 

‘‘Sec. 32502. Use of funds. 

‘‘Sec. 32503. Applications. 

‘‘Sec. 32504. Reports. 

‘‘Sec. 32505. Definition of State. 

‘‘Sec. 32506. Authorization of appropriations.’’.

14 (3) AUTHORIZATION OF FUNDING FOR ADDI15 TIONAL OFFICERS IN THE BUREAU OF ALCOHOL, TO16 BACCO, FIREARMS, AND EXPLOSIVES.—In addition 

17 to any other amounts authorized to be appropriated 

18 for such purpose, there are authorized to be appro19 priated $53,000,000 for fiscal year 2004 for the hir20 ing of 600 firearms agents and inspectors for the 

21 Bureau of Alcohol, Tobacco and Firearms. 
1018

•HR 936 IH 

1 (4) LOCAL ANTIGUN VIOLENCE MEDIA CAM2 PAIGNS.—

3 (A) GRANTS FOR LOCAL ANTIGUN VIO4 LENCE MEDIA CAMPAIGNS.—Title III of the 

5 Violent Crime Control and Law Enforcement 

6 Act of 1994, as amended by paragraph (2), is 

7 further amended by adding at the end the fol8 lowing:

9 ‘‘Subtitle Z—Grants for Local 

10 Antigun Violence Media Cam11 paigns 

12 ‘‘SEC. 32701. GRANT AUTHORIZATION. 

13 ‘‘The Attorney General may award grants to public 

14 entities or private nonprofit entities for the purpose of 

15 supporting the creation or expansion of local antigun vio16 lence media campaigns. 

17 ‘‘SEC. 32702. USE OF FUNDS; MATCHING REQUIREMENT. 

18 ‘‘(a) USE OF FUNDS.—Grants awarded by the Attor19 ney General under this subtitle shall be used to fund pro20 grams for media campaigns on gun violence and gun safe21 ty, including campaigns that—

22 ‘‘(1) highlight coordination among Federal, 

23 State, and local law enforcement agencies; 

24 ‘‘(2) publicize penalties for violations of fire25 arms laws; and 
1019

•HR 936 IH 

1 ‘‘(3) emphasize the safe storage of firearms and 

2 the prevention of access to firearms by children. 

3 ‘‘(b) MATCHING REQUIREMENT.—The Federal share 

4 of a grant awarded under this subtitle may not exceed 50 

5 percent of the total cost of the program described in the 

6 application submitted under section 32703 for the fiscal 

7 year for which the program receives assistance under this 

8 subtitle. 

9 ‘‘SEC. 32703. APPLICATIONS. 

10 ‘‘To be eligible to receive a grant award under this 

11 subtitle for a fiscal year, a public entity or private non12 profit entity shall submit to the Attorney General an appli13 cation, in such form and containing such information as 

14 the Attorney General may reasonably require. 

15 ‘‘SEC. 32704. AUTHORIZATION OF APPROPRIATIONS. 

16 ‘‘There are authorized to be appropriated 

17 $10,000,000 for fiscal year 2004 to carry out this sub18 title.’’. 

19 (B) TECHNICAL AND CONFORMING AMEND20 MENT.—The table of contents in section 2 of 

21 the Violent Crime Control and Law Enforce22 ment Act of 1994 (as amended by paragraph 

23 (2)(B)), is amended by inserting after the item 

24 relating to subtitle Y the following:

‘‘Subtitle Z—Grants for Local Antigun Violence Media Campaigns 

‘‘Sec. 32701. Grant authorization. 
1020

•HR 936 IH 

‘‘Sec. 32702. Use of funds; matching requirement. 

‘‘Sec. 32703. Applications. 

‘‘Sec. 32704. Authorization of appropriations.’’.

1 (5) SMART GUN TECHNOLOGY.—

2 (A) IN GENERAL.—The Attorney General, 

3 acting through the Director of the National In4 stitute of Justice, shall carry out a program to 

5 research and develop smart gun technology. 

6 (B) DEFINED TERM.—In this paragraph, 

7 the term ‘‘smart gun technology’’ means a de8 vice—

9 (i) incorporated by manufacture and 

10 design into a handgun in such a manner 

11 that the device cannot be readily removed 

12 or deactivated; 

13 (ii) that allows the handgun to be 

14 fired only by a particular individual; and 

15 (iii) that may allow the handgun to be 

16 personalized to an additional individual. 

17 (C) AUTHORIZATION OF APPROPRIA18 TIONS.—In addition to any other amounts au19 thorized to be appropriated for such purpose, 

20 there are authorized to be appropriated 

21 $10,000,000 for fiscal year 2004 to carry out 

22 this paragraph . 

23 (6) FOREIGN BALLISTICS.—Section 921(a) of 

24 title 18, United States Code, as amended by sections 
1021

•HR 936 IH 

1 11001 and 11101, is further amended by adding at 

2 the end the following: 

3 ‘‘(40) The term ‘forensic ballistics’ means a compara4 tive analysis of fired bullets and cartridge casings to iden5 tify the firearm from which the bullets or cartridge casings 

6 were discharged through the identification of the unique 

7 characteristics that each firearm imprints on bullets and 

8 cartridge casings.’’. 

9 (7) TEST FIRING AND AUTOMATED STORAGE OF

10 FORENSIC BALLISTICS RECORDS.—

11 (A) AMENDMENTS TO TITLE 18, UNITED

12 STATES CODE.—

13 (i) IN GENERAL.—Chapter 44 of title 

14 18, United States Code, as amended by 

15 section 11001, is further amended by add16 ing at the end the following: 

17 ‘‘§ 933. Test firing and automated storage of forensic 

18 ballistics records 

19 ‘‘(a) IN GENERAL.—A licensed manufacturer or li20 censed importer shall not transfer a firearm to any person 

21 before—

22 ‘‘(1) test firing the firearm; 

23 ‘‘(2) preparing forensic ballistics records of the 

24 fired bullet and cartridge casings from the test fire; 

25 and 
1022

•HR 936 IH 

1 ‘‘(3) making the ballistics records available to 

2 the Attorney General for entry in a computerized 

3 database. 

4 ‘‘(b) PENALTIES.—

5 ‘‘(1) IN GENERAL.—If a licensed manufacturer 

6 or licensed importer violates subsection (a), the At7 torney General may, after notice and opportunity for 

8 hearing—

9 ‘‘(A)(i) suspend the license of such licensee 

10 for not more than 1 year; or 

11 ‘‘(ii) revoke the license; 

12 ‘‘(B) impose on the licensee a civil fine of 

13 not more than $10,000; or 

14 ‘‘(C) take the actions described in subpara15 graphs (A) and (B). 

16 ‘‘(2) REVIEW.—An action of the Attorney Gen17 eral under paragraph (1) may be reviewed only as 

18 provided in section 923(f). 

19 ‘‘(3) OTHER ADMINISTRATIVE REMEDIES.—The 

20 suspension or revocation of a license or the imposi21 tion of a civil fine under paragraph (1) shall not pre22 clude any administrative remedy that is available to 

23 the Attorney General under any other provision of 

24 law. 
1023

•HR 936 IH 

1 ‘‘(c) MANDATORY FORENSIC BALLISTICS TESTING

2 OF FIREARMS IN FEDERAL CUSTODY.—The Attorney 

3 General shall conduct mandatory forensic ballistics testing 

4 of all firearms that are, or have been, taken into the cus5 tody of, or procured or utilized by, the Department of Jus6 tice.’’. 

7 (ii) TECHNICAL AND CONFORMING

8 AMENDMENT.—The analysis for chapter 44 

9 of title 18, United States Code, is amended 

10 by adding at the end the following:

‘‘933. Test firing and automated storage of forensic ballistics records.’’.

11 (iii) AUTHORIZATION OF APPROPRIA12 TIONS.—There are authorized to be appro13 priated $38,000,000 for each of the fiscal 

14 years 2004 through 2007 to carry out sec15 tion 933(c) of title 18, United States Code. 

16 (iv) EFFECTIVE DATE.—The amend17 ments made by this subparagraph shall 

18 take effect on the date on which the Attor19 ney General certifies that the Department 

20 of Justice has established a National Inte21 grated Ballistics Network. 

22 (B) COMPLIANCE ASSISTANCE.—

23 (i) IN GENERAL.—The Attorney Gen24 eral shall assist licensed manufacturers 

25 and licensed importers in complying with 
1024

•HR 936 IH 

1 section 933(a) of title 18, United States 

2 Code, through—

3 (I) the acquisition, disposition, 

4 and upgrade of computerized forensic 

5 ballistics equipment and bullet recov6 ery equipment to be placed at the 

7 sites of licensed manufacturers and li8 censed importers or at regional fire9 arm centers established by the Attor10 ney General; 

11 (II) the hiring or designation of 

12 personnel necessary to develop and 

13 maintain a database of forensic ballis14 tics records, research, and evaluation; 

15 and 

16 (III) any other steps necessary to 

17 implement effective forensic ballistics 

18 testing.

19 (ii) ONLINE ACCESS TO FORENSIC

20 BALLISTICS RECORDS.—The Attorney Gen21 eral shall establish a system through which 

22 State and local law enforcement agencies, 

23 through online computer technology, can 

24 promptly access forensic ballistics records 

25 stored under section 933 of title 18, 
1025

•HR 936 IH 

1 United States Code, as soon as the capa2 bility to do so is available.

3 (C) ANNUAL REPORTS.—Not later than 1 

4 year after the effective date of section 933 of 

5 title 18, United States Code, and annually 

6 thereafter, the Attorney General shall submit, 

7 to the Committees on the Judiciary of the 

8 House of Representatives and the Senate, a re9 port regarding the effects of such section 933, 

10 including the number of Federal and State 

11 criminal investigations, arrests, indictments, 

12 and prosecutions of all cases in which access to 

13 forensic ballistics records provided under such 

14 section 933, served as a valuable investigative 

15 tool. 

16 (D) EDUCATION AND OUTREACH.—

17 (i) IN GENERAL.—The Attorney Gen18 eral shall work with representatives of the 

19 firearm industry (including firearm manu20 facturers and importers) to—

21 (I) provide education about the 

22 role of forensic ballistics as part of a 

23 comprehensive firearm crime reduc24 tion strategy; and 
1026

•HR 936 IH 

1 (II) reduce firearm-related crime 

2 and illegal firearm trafficking through 

3 coordination among Federal, State, 

4 and local law enforcement and regu5 latory agencies and the firearm indus6 try. 

7 (ii) OUTREACH.—In implementing 

8 clause (i), the Attorney General shall con9 duct outreach with firearm manufacturers 

10 and importers that—

11 (I) have agreed to participate as 

12 a pilot site for the National Inte13 grated Ballistics Information Net14 work; 

15 (II) manufacture or import more 

16 than 1,000 firearms per year, as re17 ported in the Annual Firearms Manu18 facturing and Export Report of the 

19 Bureau of Alcohol, Tobacco, Fire20 arms, and Explosives, or as deter21 mined from information obtained in 

22 annual regulatory inspection audits 

23 conducted by the Attorney General; or 
1027

•HR 936 IH 

1 (III) have a policy that requires 

2 the test firing of all firearms prior to 

3 transfer. 

4 (iii) ANNUAL REPORTS.—Not later 

5 than 1 year after the date of enactment of 

6 this Act, and annually thereafter, the At7 torney General shall submit to the Com8 mittees on the Judiciary of the House of 

9 Representatives and the Senate a report 

10 containing—

11 (I) the number of firearm manu12 facturers and importers and other 

13 representatives of the firearm industry 

14 participating in the outreach effort 

15 under this subparagraph; 

16 (II) the number and type of per17 sonnel that the Department of Justice 

18 has hired or assigned to carry out this 

19 subparagraph; 

20 (III) a summary of the activities 

21 established by firearm manufacturers 

22 and importers as a result of their par23 ticipation in the outreach effort under 

24 this subparagraph; 
1028

•HR 936 IH 

1 (IV) an evaluation of any 

2 changes in firearm-related crime per3 taining to particular types of firearms 

4 manufactured by a firearm manufac5 turer or importer that is an active 

6 participant in the outreach effort 

7 under this subparagraph; 

8 (V) the volume of forensic ballis9 tics records compiled as a result of 

10 the mandatory forensic ballistics test11 ing by participating firearm manufac12 turers and importers; 

13 (VI) for each firearm manufac14 turer and firearm importer, the num15 ber of times a tracing request based 

16 on forensic ballistics analysis resulted 

17 in the identification of a firearm man18 ufactured or imported by the firearm 

19 manufacturer or firearm importer; 

20 and 

21 (VII) an evaluation of the man22 ner in which the implementation of fo23 rensic ballistics testing affected the 

24 volume of production or importation 
1029

•HR 936 IH 

1 of firearms by participating firearm 

2 manufacturers and firearm importers. 

3 (iv) AUTHORIZATION OF APPROPRIA4 TIONS.—There are authorized to be appro5 priated $38,306,000 for each of the fiscal years 

6 2004 through 2007 to carry out this subpara7 graph, including funding for—

8 (I) the installation of forensic 

9 ballistics equipment and bullet recov10 ery equipment; 

11 (II) the establishment of regional 

12 centers for firearm testing; 

13 (III) salaries and expenses of 

14 necessary personnel; and 

15 (IV) research and evaluation. 

16 (E) REPORT.—Not later than 1 year after 

17 the date of enactment of this Act, the Attorney 

18 General shall submit to the Committees on Ap19 propriations of the House of Representatives 

20 and the Senate a report, which shall include an 

21 analysis of—

22 (i) the capacity to provide the online 

23 access required under subparagraph 

24 (B)(ii), and the process by which the on25 line access will be implemented; and 
1030

•HR 936 IH 

1 (ii) any future technical or legal 

2 changes that may be required to make on3 line access available, including estimates of 

4 the costs of making those changes. 

5 Subtitle F—Miscellaneous 

6 SEC. 11501. STUDY OF MARKETING PRACTICES OF THE 

7 FIREARMS INDUSTRY. 

8 (a) IN GENERAL.—The Federal Trade Commission 

9 (referred to in this section as the ‘‘Commission’’) and the 

10 Attorney General shall jointly conduct a study of the mar11 keting practices of the firearms industry, with respect to 

12 minors. 

13 (b) ISSUES EXAMINED.—In conducting the study 

14 under subsection (a), the Commission and the Attorney 

15 General shall examine the extent to which the firearms 

16 industry advertises and promotes its products to minors, 

17 including through media outlets in which minors comprise 

18 a substantial percentage of the audience. 

19 (c) REPORT.—Not later than 1 year after the date 

20 of enactment of this Act, the Commission and the Attor21 ney General shall submit to Congress a report on the 

22 study conducted under subsection (a). 
1031

•HR 936 IH 

1 SEC. 11502. REGULATION OF INTERNET FIREARMS TRANS2 FERS. 

3 (a) PROHIBITIONS.—Section 922 of title 18, United 

4 States Code, as amended by section 11101(b), is further 

5 amended by inserting after subsection (z) the following: 

6 ‘‘(aa) REGULATION OF INTERNET FIREARMS TRANS7 FERS.—

8 ‘‘(1) IN GENERAL.—It shall be unlawful for any 

9 person to operate an Internet website, if a purpose 

10 of the website is to offer 1 or more firearms for sale 

11 or exchange, or to otherwise facilitate the sale or ex12 change of 1 or more firearms posted or listed on the 

13 website, unless—

14 ‘‘(A) the person is licensed as a manufac15 turer, importer, or dealer under section 923; 

16 ‘‘(B) the person notifies the Attorney Gen17 eral of the Internet address of the website, and 

18 any other information concerning the website as 

19 the Attorney General may require by regulation; 

20 and 

21 ‘‘(C) if any firearm posted or listed for sale 

22 or exchange on the website is not from the busi23 ness inventory or personal collection of that 

24 person—

25 ‘‘(i) the person, as a term or condition 

26 for posting or listing the firearm for sale 
1032

•HR 936 IH 

1 or exchange on the website on behalf of a 

2 prospective transferor, requires that, in the 

3 event of any agreement to sell or exchange 

4 the firearm pursuant to that posting or 

5 listing, the firearm be transferred to that 

6 person for disposition in accordance with 

7 clause (iii); 

8 ‘‘(ii) the person prohibits the posting 

9 or listing on the website of any information 

10 (including any name, nickname, telephone 

11 number, address, or electronic mail ad12 dress) that is reasonably likely to enable 

13 the prospective transferor and prospective 

14 transferee to directly contact each other 

15 prior to the shipment of the firearm to 

16 that person under clause (i); and 

17 ‘‘(iii) with respect to each firearm re18 ceived from a prospective transferor under 

19 clause (i), the person—

20 ‘‘(I) enters such information 

21 about the firearm as the Attorney 

22 General may require by regulation 

23 into a separate bound record; 

24 ‘‘(II) in transferring the firearm 

25 to any transferee, complies with the 
1033

•HR 936 IH 

1 requirements of this chapter as if the 

2 firearm were being transferred from 

3 the business inventory of that person; 

4 and 

5 ‘‘(III) if the prospective trans6 feror does not provide the person with 

7 a certified copy of a valid firearms li8 cense issued to the prospective trans9 feror under this chapter, submits to 

10 the Attorney General a report of the 

11 transfer or other disposition of the 

12 firearm on a form specified by the At13 torney General, which report shall not 

14 include the name of, or any other 

15 identifying information relating to, the 

16 transferor. 

17 ‘‘(2) TRANSFERS BY PERSONS OTHER THAN LI18 CENSEES.—It shall be unlawful for any person who 

19 is not licensed under section 923 to transfer a fire20 arm pursuant to a posting or listing of the firearm 

21 for sale or exchange on an Internet website de22 scribed in paragraph (1) to any person other than 

23 the operator of the website.’’. 
1034

•HR 936 IH 

1 (b) PENALTIES.—Section 924(a) of title 18, United 

2 States Code, as amended by section 11001, is further 

3 amended by adding at the end the following: 

4 ‘‘(10) Whoever willfully violates section 922(aa)(2) 

5 shall be fined under this title, imprisoned not more than 

6 2 years, or both.’’. 

7 SEC. 11503. REDUCTION OF GUN TRAFFICKING. 

8 (a) PROHIBITION AGAINST MULTIPLE HANDGUN

9 SALES OR PURCHASES.—Section 922 of title 18, United 

10 States Code, as amended by sections 11101 and 11502, 

11 is further amended by inserting at the end the following: 

12 ‘‘(bb) PROHIBITION AGAINST MULTIPLE HANDGUN

13 SALES OR PURCHASES.—

14 ‘‘(1) IN GENERAL.—It shall be unlawful for any 

15 licensed dealer—

16 ‘‘(A) during any 30-day period, to sell 2 or 

17 more handguns to an individual who is not li18 censed under section 923; or 

19 ‘‘(B) to sell a handgun to an individual 

20 who is not licensed under section 923 and who 

21 purchased a handgun during the 30-day period 

22 ending on the date of the sale.

23 ‘‘(2) TIME LIMITATION.—It shall be unlawful 

24 for any individual who is not licensed under section 
1035

•HR 936 IH 

1 923 to purchase 2 or more handguns during any 30-

2 day period. 

3 ‘‘(3) EXCHANGES.—Paragraph (1) does not 

4 apply to an exchange of 1 handgun for 1 handgun.’’. 

5 (b) PENALTIES.—Section 924(a)(2) of title 18, 

6 United States Code, is amended by striking ‘‘or (o)’’ and 

7 inserting ‘‘(o), or (bb)’’. 

8 (c) DEADLINES FOR DESTRUCTION OF RECORDS RE9 LATED TO CERTAIN FIREARMS TRANSFERS.—

10 (1) HANDGUN TRANSFERS SUBJECT TO THE

11 WAITING PERIOD.—Section 922(s)(6)(B)(i) of title 

12 18, United States Code, is amended by striking ‘‘20 

13 business days’’ and inserting ‘‘35 calendar days’’. 

14 (2) FIREARMS TRANSFERS SUBJECT TO IN15 STANT CHECK.—Section 922(t)(2)(C) of title 18, 

16 United States Code, is amended by inserting ‘‘not 

17 later than 35 calendar days after the date the sys18 tem provides the licensee with the number,’’ before 

19 ‘‘destroy’’. 

20 (d) REVISED DEFINITION.—Section 921(a)(21)(C) of 

21 title 18, United States Code, is amended by inserting ‘‘, 

22 except that such term shall include any person who trans23 fers more than 1 handgun in any 30-day period to a per24 son who is not a licensed dealer’’ before the semicolon.
1036

•HR 936 IH 

1 TITLE XII—MISCELLANEOUS 

2 SEC. 12001. ADVISORY COMMITTEE ON PRIVATE SECTOR 

3 SUPPORT FOR CHILDREN AND FAMILIES. 

4 (a) ESTABLISHMENT.—Not later than 6 months after 

5 the date of enactment of this Act, the Secretary of Health 

6 and Human Services (in this section referred to as the 

7 ‘‘Secretary’’) shall establish an advisory committee to be 

8 known as the ‘‘Advisory Committee on Private Sector Sup9 port for Children and Families’’ (in this section referred 

10 to as the ‘‘Committee’’) that shall review, highlight and 

11 promote the private sector policies and practices that will 

12 best create family-friendly workplaces and allow parents 

13 to succeed at work and at home. 

14 (b) DUTIES.—The Committee shall—

15 (1) solicit advice and recommendations con16 cerning employer and community efforts that are de17 signed to assist parents caring for their children and 

18 ensure that every child residing in the United States 

19 has a healthy start, a head start, a fair start, and 

20 a safe start in life and successful passage to adult21 hood; 

22 (2) review and consider the full range of private 

23 sector family-centered efforts, including flexibility in 

24 the workplace, family and medical leave policies, em-
1037

•HR 936 IH 

1 ployer sponsored health care and child care services, 

2 parent support centers, and literacy training; and 

3 (3) prepare and submit the report required 

4 under subsection (d). 

5 (c) MEMBERSHIP.—The Committee shall—

6 (1) be appointed by the Secretary in consulta7 tion with the Secretary of the Treasury, the Sec8 retary of Labor, and the Secretary of Education; 

9 and 

10 (2) consist of representatives of children and 

11 family advocates, business groups, labor organiza12 tions, faith-based institutions, and charitable foun13 dations. 

14 (d) REPORT.—

15 (1) SECRETARY.—Not later than 18 months 

16 after the date of enactment of this Act, the Com17 mittee shall submit to the Secretary a report that 

18 contains the Committee’s findings and recommenda19 tions resulting from carrying out the duties required 

20 under subsection (b), together with recommendations 

21 for such legislation and administrative actions as the 

22 Committee considers appropriate 

23 (2) CONGRESS.—The Secretary shall transmit 

24 copies of the report to the Committee on Health, 

25 Education, Labor, and Pensions and the Committee 
1038

•HR 936 IH 

1 on Finance of the Senate and the Committee on 

2 Education and the Workforce, the Committee on 

3 Energy and Commerce, and the Committee on Ways 

4 and Means of the House of Representatives. 

5 SEC. 12002. IMPROVEMENT OF DATA COLLECTION AND RE6 PORTING REGARDING CHILDREN AND FAMI7 LIES. 

8 (a) REPORT ON ECONOMIC WELL-BEING OF CUR9 RENT AND FORMER TANF FAMILIES.—

10 (1) ANNUAL REPORT TO CONGRESS.—Section 

11 411(b) of the Social Security Act (42 U.S.C. 611(b)) 

12 is amended—

13 (A) in paragraph (3), by striking ‘‘and’’ at 

14 the end; 

15 (B) in paragraph (4), by striking the pe16 riod and inserting ‘‘; and’’; and 

17 (C) by adding at the end the following new 

18 paragraph: 

19 ‘‘(5) the economic well-being of children and 

20 families receiving assistance under the State pro21 grams funded under this part and of children and 

22 families that have ceased to receive such assistance, 

23 using longitudinal matched data gathered from fed24 erally supported programs, and including State-by25 State data that details the distribution of earnings 
1039

•HR 936 IH 

1 and stability of employment of such families and (to 

2 the extent feasible) describes, with respect to such 

3 families, the distribution of income from known 

4 sources (including employer-reported wages, assist5 ance under the State program funded under this 

6 part, and benefits under the food stamp program), 

7 the ratio of such families’ income to the poverty line, 

8 and the extent to which such families receive or re9 ceived noncash benefits and child care assistance.’’. 

10 (2) CONFORMING AMENDMENTS.—Section 

11 411(a) of the Social Security Act (42 U.S.C. 611(a)) 

12 is amended—

13 (A) by redesignating paragraph (7) as 

14 paragraph (8); and 

15 (B) by inserting after paragraph (6), the 

16 following new paragraph: 

17 ‘‘(7) REPORT ON ECONOMIC WELL-BEING OF

18 CURRENT AND FORMER RECIPIENTS.—The report 

19 required by paragraph (1) for a fiscal quarter shall 

20 include for that quarter such information as the Sec21 retary may specify in order for the Secretary to in22 clude in the annual reports to Congress required 

23 under subsection (b) the information described in 

24 paragraph (5) of that subsection.’’. 
1040

•HR 936 IH 

1 (b) REPORT ON DATA FROM STATE STUDIES RE2 GARDING FORMER TANF AND FOOD STAMP RECIPI3 ENTS.—Section 413 of the Social Security Act (42 U.S.C. 

4 613) is amended by adding at the end the following new 

5 subsection: 

6 ‘‘(k) REPORT ON STATUS OF FORMER RECIPIENTS

7 OF ASSISTANCE AND FOOD STAMP BENEFITS.—Not later 

8 than 6 months after the date of enactment of the Leave 

9 No Child Behind Act of 2003, the Secretary shall compile 

10 and report to Congress data from existing State-level stud11 ies funded (in whole or in part) by the Secretary on the 

12 extent of employment, receipt of non-cash benefits, occur13 rence of extreme poverty, and hardship among previous 

14 recipients of assistance under the State program funded 

15 under this part and benefits under the food stamp pro16 gram.’’.

Æ