ed for the State under this section and for moni-
toring entities that receive assistance under such 
grant. 
(2) AUDITS.—A State shall require each entity 
receiving assistance under the grant awarded under 
this section to conduct an annual audit with respect 
to the activities of the entity. Such audits shall be 
submitted to the State. 
(3) MISUSE OF FUNDS.— 
(A) REPAYMENT.—If the State determines, 
through an audit or otherwise, that an entity 
receiving assistance under a grant awarded 
under this section has misused the assistance, 
the State shall notify the Secretary of the mis-
use. The Secretary, upon such a notification, 
may seek from such an entity the repayment of 
an amount equal to the amount of any such 
misused assistance plus interest. 
(B) APPEALS
PROCESS.—The Secretary 
shall by regulation provide for an appeals proc-
ess with respect to repayments under this para-
graph. 
(h) REPORTING REQUIREMENTS.— 
(1) 2-YEAR STUDY.—
(A) IN GENERAL.—Not later than 2 years 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
shall conduct a study to determine— 
(i) the capacity of entities to meet the 
child care needs of communities within 
States; 
(ii) the kinds of partnerships that are 
being formed with respect to child care at 
the local level to carry out programs fund-
ed under this section; and 
(iii) who is using the programs funded 
under this section and the income levels of 
such individuals. 
(B) REPORT.—Not later than 28 months 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
shall prepare and submit to the appropriate 
committees of Congress a report on the results 
of the study conducted in accordance with sub-
paragraph (A). 
(2) 4-YEAR STUDY.— 
(A) IN GENERAL.—Not later than 4 years 
after the date on which the Secretary first 
awards grants under this section, the Secretary
shall conduct a study to determine the number 
of child care facilities funded through entities 
that received assistance through a grant award-
ed under this section that remain in operation 
and the extent to which such facilities are meet-
ing the child care needs of the individuals 
served by such facilities. 
(B) REPORT.—Not later than 52 months 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
shall prepare and submit to the appropriate 
committees of Congress a report on the results 
of the study conducted in accordance with sub-
paragraph (A). 
(i) DEFINITION.—In this section, the term ‘‘busi-
ness’’ means an employer who employed an average of at 
least 2 employees on business days during the preceding 
calendar year. 
(j) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be 
appropriated to carry out this section, $60,000,000 
for the period of fiscal years 2006 through 2008. 
(2) EVALUATIONS
AND
ADMINISTRATION.— 
With respect to the total amount appropriated for 
such period in accordance with this subsection, not
more than $5,000,000 of that amount may be used 
for expenditures related to conducting evaluations 
required under, and the administration of, this sec-
tion. 
(k) TERMINATION OF PROGRAM.—The program es-
tablished under subsection (a) shall terminate on Sep-
tember 30, 2009. 
TITLE 
III—PRE-SCHOOL, 
IN- 
SCHOOL, AND AFTERSCHOOL 
ASSISTANCE 
Subtitle A—Universal 
Prekindergarten Act 
SEC. 301. SHORT TITLE. 
This subtitle may be cited as the ‘‘Universal Pre-
kindergarten Act’’. 
SEC. 302. FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds the following: 
(1) High-quality prekindergarten programs help 
children to succeed academically. Children who at-
tended a high-quality prekindergarten program have 
higher academic achievement, lower rates of grade 
retention, are less likely to be placed in special edu-
cation, and graduate from high school at higher 
rates than those who did not.
(2) Early childhood education can reduce juve-
nile delinquency rates. A 15-year study following 
989 low-income children who attended high-quality, 
comprehensive prekindergarten found that they were 
33 percent less likely to be arrested, and 42 percent 
less likely to be arrested for a violent crime, than 
children in the control group. 
(3) There is currently a drastic shortage of af-
fordable, quality early education programs that are 
accessible for working families. 
(4) Full-day, full-calendar-year universal pre-
kindergarten programs would ensure all children 3, 
4, and 5 years old have access to school readiness 
programs and quality child care. 
(5) Research shows that investing in quality 
prekindergarten programs will provide savings in the 
form of reduced need for remedial education, de-
creased crime rates, lower school dropout rates, and 
decreased welfare dependence. 
(b) PURPOSE.—The purpose of this subtitle is to en-
sure that all children 3, 4, and 5 years old have access 
to a high-quality full-day, full-calendar-year prekinder-
garten program by providing grants to States to assist in 
developing a universal prekindergarten program that is 
voluntary and free-of-charge.
SEC. 303. PREKINDERGARTEN GRANT PROGRAM AUTHOR-
IZATION. 
The Secretary of Health and Human Services, in con-
sultation with the Secretary of Education, shall provide 
grants to an agency designated by each State (hereafter 
in this subtitle referred to as the ‘‘designated State agen-
cy’’) for the development of high-quality full-day, full-cal-
endar-year universal prekindergarten programs for all 
children 3, 4, and 5 years old in the State. 
SEC. 304. STATE REQUIREMENTS. 
(a) STATE MATCHING FUNDS.—Federal funds made 
available to a designated State agency under this subtitle 
shall be matched at least 20 percent by State funds. 
(b) STATE APPLICATION.—To be eligible to receive 
funds under this subtitle, a designated State agency shall 
submit an application at such time, in such manner, and 
containing such information as the Secretary of Health 
and Human Services may require. The application shall 
include the following: 
(1) How the designated State agency, in over-
seeing the State’s universal prekindergarten pro-
gram, will coordinate with other State agencies re-
sponsible for early childhood education and health 
programs.
(2) A State plan to establish and implement a 
statewide universal prekindergarten program, in ac-
cordance with subsection (c). 
(c) STATE PLAN.—The State plan required under 
subsection (b)(2) shall include each of the following: 
(1) A description of the universal prekinder-
garten program that will be established and how it 
will support children’s cognitive, social, emotional, 
and physical development. 
(2) A statement of the goals for universal pre-
kindergarten programs and how program outcomes 
will be measured. 
(3) A description of— 
(A) how funding will be distributed to eli-
gible prekindergarten program providers based 
on the need for early childhood education in 
each geographical area served by such pro-
viders; and 
(B) how the designated State agency will 
involve representatives of early childhood pro-
gram providers (including child care providers, 
Head Start programs, and State and local 
agencies) that sponsor programs addressing 
children 3, 4, and 5 years old.
(4) A description of how the designated State 
agency will coordinate with existing State-funded 
prekindergarten programs, federally funded pro-
grams (such as Head Start programs), public school 
programs, and child care providers. 
(5) A description of how an eligible prekinder-
garten program provider may apply to the des-
ignated State agency for funding under this Act. 
(6) A plan to address the shortages of qualified 
early childhood education teachers, including how to 
increase such teachers’ compensation to be com-
parable to that of public school teachers. 
(7) How the designated State agency will pro-
vide ongoing professional development opportunities 
to help increase the number of teachers in early 
childhood programs who meet the State’s education 
or credential requirements for prekindergarten 
teachers. 
(8) A plan to address how the universal pre-
kindergarten program will meet the needs of chil-
dren with disabilities, limited English proficiency, 
and other special needs. 
(9) A plan to provide transportation to children 
to and from the universal prekindergarten program.
(10) A description of how the State will provide 
the 20 percent match of Federal funds. 
(d) ADMINISTRATION.—A designated State agency 
may not use more than 5 percent of a grant under this 
subtitle for costs associated with State administration of 
the program under this subtitle. 
SEC. 305. LOCAL REQUIREMENTS. 
(a) IN GENERAL.—An eligible prekindergarten pro-
gram provider receiving funding under this subtitle 
shall— 
(1) maintain a maximum class size of 20 chil-
dren; 
(2) maintain a ratio of not more than 10 chil-
dren for each member of the teaching staff; 
(3)(A) ensure that all prekindergarten teachers 
meet the requirements for teachers at a State-fund-
ed prekindergarten program under an applicable 
State law; and 
(B) document that the State is demonstrating 
significant progress in assisting prekindergarten 
teachers on working toward a bachelor of arts de-
gree with training in early childhood development or 
early childhood education;
(4)(A) be accredited by a national organization 
with demonstrated experience in accrediting pre-
kindergarten programs; or 
(B) provide assurances that it shall obtain such 
accreditation not later than 3 years after first re-
ceiving funding under this subtitle; and 
(5) meet applicable State and local child care li-
censing health and safety standards. 
(b) LOCAL APPLICATION.—Eligible prekindergarten 
program providers desiring to receive funding under this 
subtitle shall submit an application to the designated 
State agency overseeing funds under this subtitle con-
taining the following: 
(1) A description of the prekindergarten pro-
gram. 
(2) A statement of the demonstrated need for 
a program, or an enhanced or expanded program, in 
the area served by the eligible prekindergarten pro-
gram provider. 
(3) A description of the age-appropriate and de-
velopmentally appropriate educational curriculum to 
be provided that will help children be ready for 
school and assist them in the transition to kinder-
garten.
(4) A description of how the eligible prekinder-
garten program provider will collaborate with exist-
ing community-based child care providers and Head 
Start programs. 
(5) A description of how students and families 
will be assisted in obtaining supportive services 
available in their communities. 
(6) A plan to promote parental involvement in 
the prekindergarten program. 
(7) A description of how teachers will receive 
ongoing professional development in early childhood 
development and education. 
(8) An assurance that prekindergarten pro-
grams receiving funds under this subtitle provide the 
data required in section 7(c). 
SEC. 306. PROFESSIONAL DEVELOPMENT SET-ASIDE. 
(a) IN GENERAL.—A designated State agency may 
set aside up to 5 percent of a grant under this subtitle 
for ongoing professional development activities for teach-
ers and staff at prekindergarten programs that wish to 
participate in the universal prekindergarten grant pro-
gram under this subtitle. A designated State agency using 
the set-aside for professional development must include in 
its application the following:
(1) A description of how the designated State 
agency will ensure that eligible prekindergarten pro-
gram providers in a range of settings (including 
child care providers, Head Start programs, and 
schools) will participate in the professional develop-
ment programs. 
(2) An assurance that, in developing its applica-
tion and in carrying out its program, the profes-
sional development provider has consulted, and will 
consult, with relevant agencies, early childhood orga-
nizations, early childhood education experts, and 
early childhood program providers. 
(3) A description of how the designated State 
agency will ensure that the professional development 
is ongoing and accessible to educators in all geo-
graphic areas of the State, including by the use of 
advanced educational technologies. 
(4) A description of how the designated State 
agency will ensure that such set-aside funds will be 
used to pay the cost of additional education and 
training. 
(5) A description of how the designated State 
agency will work with other agencies and institutions 
of higher education to provide scholarships and 
other financial assistance to prekindergarten staff.
(6) A description of how the State educational 
agency will provide a financial incentive, such as a 
financial stipend or a bonus, to educators who par-
ticipate in and complete such professional develop-
ment. 
(7) A description of how the professional devel-
opment activities will be carried out, including the 
following: 
(A) How programs and educators will be 
selected to participate. 
(B) How professional development pro-
viders will be selected, based on demonstrated 
experience in providing research-based profes-
sional development to early childhood educators. 
(C) The types of research-based profes-
sional development activities that will be carried 
out in all domains of children’s physical, cog-
nitive, social, and emotional development and 
on early childhood pedagogy. 
(D) How the program will train early 
childhood educators to meet the diverse edu-
cational needs of children in the community, es-
pecially children who have limited English pro-
ficiency, disabilities, and other special needs.
(E) How the program will coordinate with 
and build upon, but not supplant or duplicate, 
early childhood education professional develop-
ment activities that exist in the community. 
(b) USES OF FUNDS.—Funds set aside under this 
section may be used for ongoing professional develop-
ment— 
(1) to provide prekindergarten teachers and 
staff with the knowledge and skills for the applica-
tion of recent research on child cognitive, social, 
emotional, and physical development, including lan-
guage and literacy development, and on early child-
hood pedagogy; 
(2) to provide the cost of education needed to 
obtain a credential or degree with specific training 
in early childhood development or education; 
(3) to work with children who have limited 
English proficiency, disabilities, and other special 
needs; and 
(4) to select and use developmentally appro-
priate screening and diagnostic assessments to im-
prove teaching and learning and make appropriate 
referrals for services to support prekindergarten 
children’s development and learning.
100 
SEC. 307. REPORTING. 
(a) REPORT BY SECRETARY.—For each year in which 
funding is provided under this subtitle, the Secretary of 
Health and Human Services shall submit an annual report 
to the Congress on the implementation and effectiveness 
of the universal prekindergarten program under this sub-
title. 
(b) REPORT BY DESIGNATED STATE AGENCY.—Each 
designated State agency that provides grants to eligible 
prekindergarten program providers under this subtitle 
shall submit to the Secretary an annual report on the im-
plementation and effectiveness of the programs in the 
State supported under this subtitle. Such report shall con-
tain such additional information as the Secretary may rea-
sonably require. 
(c) REPORT BY GRANT RECIPIENT.—Each eligible 
prekindergarten program provider that receives a grant 
under this subtitle shall submit to the designated State 
agency an annual report that includes, with respect to the 
program supported by such grant, the following: 
(1) A description of the type of program and a 
statement of the number and ages of children served 
by the program, as well as the number and ages of 
children with a disability or a native language other 
than English.
101 
(2) A description of the qualifications of the 
program staff and the type of ongoing professional 
development provided to such staff. 
(3) A statement of all sources of Federal, State, 
local, and private funds received by the program. 
(4) A description of the curricula, materials, 
and activities used by the program to support early 
childhood development and learning. 
(5) Such other information as the designated 
State agency may reasonably require. 
SEC. 308. FEDERAL FUNDS SUPPLEMENTARY. 
Funds made available under this subtitle may not be 
used to supplant other Federal, State, local, or private 
funds that would, in the absence of such Federal funds, 
be made available for the program assisted under this sub-
title. 
SEC. 309. DEFINITIONS. 
In this subtitle: 
(1) The term ‘‘eligible prekindergarten program 
provider’’ means a prekindergarten program pro-
vider that is— 
(A) a school; 
(B) supported, sponsored, supervised, or 
carried out by a local educational agency; 
(C) a Head Start program; or
102 
(D) a child care provider. 
(2) The term ‘‘prekindergarten program’’ 
means a program serving children 3, 4, and 5 years 
old that supports children’s cognitive, social, emo-
tional, and physical development and helps prepare 
those children for the transition to kindergarten. 
(3) The term ‘‘local educational agency’’ has 
the meaning given that term in the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6301 
et seq.). 
(4) The term ‘‘prekindergarten teacher’’ means 
an individual who has received, or is working to-
ward, a bachelor of arts degree in early childhood 
education. 
SEC. 310. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this subtitle— 
(1) $10,000,000,000 for fiscal year 2006; 
(2) $20,000,000,000 for fiscal year 2007; 
(3) $30,000,000,000 for fiscal year 2008; 
(4) $40,000,000,000 for fiscal year 2009; and 
(5) $50,000,000,000 for fiscal year 2010.
103 
Subtitle B—Universal Free School 
Breakfast Program 
SEC. 311. UNIVERSAL FREE SCHOOL BREAKFAST PRO-
GRAM. 
(a) FREE
BREAKFAST
AND
UNIVERSAL
ELIGI-
BILITY.—Section 4 of the Child Nutrition Act of 1966 (42 
U.S.C. 1773) is amended to read as follows: 
‘‘SEC. 4. SCHOOL BREAKFAST PROGRAM AUTHORIZATION. 
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to enable the Secretary to carry out a program to 
assist States and the Department of Defense to initiate, 
maintain, or expand nonprofit breakfast programs to pro-
vide free breakfasts to school children without regard to 
family income in all schools which make application for 
participation and agree to carry out a nonprofit free 
breakfast program in accordance with this Act. Appropria-
tions and expenditures for this Act shall be considered 
Health and Human Services functions for budget purposes 
rather than functions of Agriculture. 
‘‘(b) APPORTIONMENT TO STATES.— 
‘‘(1)(A) IN
GENERAL.—The Secretary shall 
make breakfast payments to each State educational 
agency each fiscal year, at such times as the Sec-
retary may determine, from the sums appropriated
104 
for such purpose, in an amount equal to the product 
obtained by multiplying— 
‘‘(i) the number of breakfasts served free 
during such fiscal year to children in schools in 
such States which participate in the school 
breakfast program under agreements with such 
State educational agency; by 
‘‘(ii) the national breakfast payment as 
prescribed in paragraph (2) of this subsection. 
‘‘(B) AGREEMENTS.—The agreements described 
in subparagraph (A)(i) shall be permanent agree-
ments that may be amended as necessary. Nothing 
in the preceding sentence shall be construed to limit 
the ability of the State educational agency to sus-
pend or terminate any such agreement in accordance 
with regulations prescribed by the Secretary. 
‘‘(2) NATIONAL
BREAKFAST
PAYMENT.—The 
national payment for each breakfast shall be $1.40 
(as adjusted each July 1 pursuant to section 
11(a)(3)(B) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1759a(a)(3)(B)). 
‘‘(3) LIMITATION.—No breakfast payment may 
be made under this subsection for any breakfast 
served by a school unless such breakfast consists of 
a combination of foods which meet the minimum nu-
105 
tritional requirements prescribed by the Secretary 
under subsection (e) of this section. 
‘‘(4) NUTRITION QUALITY ADJUSTMENT.—The 
Secretary shall increase by 6 cents the annually ad-
justed payment for each breakfast served under this 
Act and section 17 of the Richard B. Russell Na-
tional School Lunch Act. These funds shall be used 
to assist States, to the extent feasible, in improving 
the nutritional quality of the breakfasts. 
‘‘(5) AGRICULTURAL COMMODITIES.—Notwith-
standing any other provision of law, whenever stocks 
of agricultural commodities are acquired by the Sec-
retary or the Commodity Credit Corporation and are 
not likely to be sold by the Secretary or the Com-
modity Credit Corporation or otherwise used in pro-
grams of commodity sale or distribution, the Sec-
retary shall make such commodities available to 
school food authorities and eligible institutions serv-
ing breakfasts under this Act in a quantity equal in 
value to not less than 3 cents for each breakfast 
served under this Act. 
‘‘(6) EFFECT
ON
EXPENDITURES.—Expendi-
tures of funds from State and local sources for the 
maintenance of the breakfast program shall not be
106 
diminished as a result of funds or commodities re-
ceived under paragraph (4) or (5). 
‘‘(c) STATE DISBURSEMENT TO SCHOOLS.—Funds 
paid to any State during any fiscal year for the purpose 
of this section shall be disbursed by the State educational 
agency, in accordance with such agreements approved by 
the Secretary as may be entered into by such State agency 
and the schools in the State, to those schools in the State 
which the State educational agency, determines are eligi-
ble to participate in the school breakfast program. 
‘‘(d) PARTICIPATION BY SCHOOLS.— 
‘‘(1) REQUIREMENTS FOR PARTICIPATION.—To 
be eligible to participate in the school breakfast pro-
gram under this section, a school food authority 
shall— 
‘‘(A) agree to serve all breakfasts at no 
charge to all students who wish to participate 
without regard to family income in all partici-
pating schools; and 
‘‘(B) meet all other requirements that the 
Secretary may reasonably establish. 
‘‘(2) START-UP ASSISTANCE.—The Secretary is 
authorized to provide additional assistance to schools 
not participating in the school breakfast program 
prior to the enactment of the Family and Workplace
107 
Balancing Act of 2005 in order to assist such 
schools to begin participation in the school breakfast 
program under this section. 
‘‘(3) STATE
EDUCATIONAL
AGENCY
ASSIST-
ANCE.—Each State educational agency shall assist 
schools not participating in the school breakfast pro-
gram prior to the enactment of the Family and 
Workplace Balancing Act of 2005 to enter into 
agreements with such agencies in order to partici-
pate in the school breakfast program under this sec-
tion. 
‘‘(e) NUTRITIONAL AND OTHER PROGRAM REQUIRE-
MENTS.— 
‘‘(1) 
MINIMUM
NUTRITIONAL
REQUIRE-
MENTS.—Breakfasts served by schools participating 
in the school breakfast program under this section 
shall consist of a combination of foods and shall 
meet minimum nutritional requirements prescribed 
by the Secretary on the basis of tested nutritional 
research, except that the minimum nutritional re-
quirements shall be measured by not less than the 
weekly average of the nutrient content of school 
breakfasts. 
‘‘(2) TECHNICAL ASSISTANCE AND TRAINING.— 
The Secretary shall provide through State edu-
108 
cational agencies technical assistance and training, 
including technical assistance and training in the 
preparation of foods high in complex carbohydrates 
and lower-fat versions of foods commonly used in the 
school breakfast program established under this sec-
tion, to schools participating in the school breakfast 
program to assist the schools in complying with the 
nutritional requirements prescribed by the Secretary 
pursuant to paragraph (1) and in providing appro-
priate meals to children with medically certified spe-
cial dietary needs. 
‘‘(3) OPTION VERSUS SERVE.—At the option of 
a local school food authority, a student in a school 
under the authority that participates in the school 
breakfast program under this Act may be allowed to 
refuse not more than one item of a breakfast that 
the student does not intend to consume. A refusal of 
an offered food item shall not affect the amount of 
payments made under this Act to a school for the 
breakfast.’’. 
(b) TECHNICAL AMENDMENTS.— 
(1) CHILD NUTRITION ACT OF 1966.—Section 
20 of the Child Nutrition Act of 1966 (42 U.S.C. 
1789) is amended by striking subsection (b) and re-
109 
designating subsections (c) through (e) as sub-
sections (b) through (d), respectively. 
(2) RICHARD B. RUSSELL NATIONAL SCHOOL 
LUNCH
ACT.—The Richard B. Russell National 
School Lunch Act is amended— 
(A) in section 11(a)(1)— 
(i) in subparagraph (C), by striking 
‘‘or breakfasts’’ each place it appears; 
(ii) in subparagraph (C)(i)(I), by 
striking ‘‘or in the case of a school’’ and 
all that follows through ‘‘4 successive 
school years’’; 
(iii) in subparagraph (D)(iii), by strik-
ing ‘‘or for free and reduced price lunches 
and breakfasts’’; 
(iv) in subparagraph (D)(iv), by strik-
ing ‘‘or school breakfast’’; 
(v) in subparagraph (E)(i)(I) by strik-
ing ‘‘or in the case of a school’’ and all 
that follows through ‘‘4 successive school 
years’’; and 
(vi) in subparagraph (E)(i)(II)— 
(I) by striking ‘‘or breakfasts’’ 
both places it appears; and
110 
(II) by striking ‘‘or school break-
fast’’; 
(B) in section 11(a)(3)(A), by striking 
clause (iii); 
(C) in section 13(a)(1)(C), by striking ‘‘or 
breakfasts’’; 
(D) in section 17— 
(i) in subsection (c), by striking para-
graph (2), and redesignating paragraphs 
(3) through (6) as paragraphs (2) through 
(5), respectively; and 
(ii) in subsection (f)(3)(E)(ii(I), by 
striking ‘‘meals’’ and inserting ‘‘lunches’’; 
and 
(E) in section 18, by striking subsection 
(e) and redesignating subsections (f) and (g) as 
subsections (e) and (f), respectively.
111 
Subtitle C—Nutritional Improve-
ment for Children Served Under 
Child Nutrition Programs 
SEC. 321. NUTRITIONAL IMPROVEMENT FOR CHILDREN 
SERVED 
UNDER 
CHILD 
NUTRITION 
PRO-
GRAMS. 
(a) IN GENERAL.—Section 18 of the Richard B. Rus-
sell National School Lunch Act (42 U.S.C. 1769) is 
amended by adding at the end the following: 
‘‘(h) HEALTHY SCHOOL NUTRITION ENVIRONMENT 
INCENTIVE GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a program under which the Secretary shall make 
competitive grants to selected local educational agen-
cies— 
‘‘(A) to create healthy school nutrition en-
vironments; and 
‘‘(B) to assess the impact of the environ-
ments on the health and well-being of children 
enrolled in the schools. 
‘‘(2) SELECTION
OF
SCHOOLS.—In selecting 
local educational agencies to receive incentive grants 
under this subsection, the Secretary shall— 
‘‘(A) ensure that not less than 75 percent 
of the schools under the jurisdiction of the
112 
agencies selected to participate in the program 
established under this subsection are schools in 
which not less than 50 percent of the students 
enrolled in each school are eligible for free or 
reduced price meals under this Act; 
‘‘(B) ensure that, of the agencies selected 
to participate in the program, there is appro-
priate representation of rural, urban, and sub-
urban schools, as determined by the Secretary; 
‘‘(C) ensure that, of the agencies selected 
to participate in the program, there is appro-
priate representation of elementary, middle, and 
secondary schools, as determined by the Sec-
retary; 
‘‘(D) ensure that agencies selected to re-
ceive a grant under this subsection meet the re-
quirements of paragraph (3); 
‘‘(E) give priority to agencies that develop 
comprehensive plans that include the involve-
ment of a broad range of community stake-
holders in achieving healthy school nutrition en-
vironments; 
‘‘(F) give priority to agencies that develop 
comprehensive plans that include a strategy for 
maintaining healthy school nutrition environ-
113 
ments in the years following the fiscal years for 
which the agencies receive grants under this 
subsection; 
‘‘(G) select only agencies that submit grant 
applications by May 1, 2006; and 
‘‘(H) make grant awards effective not later 
than July 15, 2006. 
‘‘(3) REQUIREMENTS.— 
‘‘(A) INPUT.—Prior to the solicitation of 
proposals for grants under this subsection, the 
Secretary shall solicit input from appropriate 
nutrition, health, and education organizations 
(such as the American School Food Service As-
sociation, the American Dietetic Association, 
and the National School Boards Association) 
regarding the appropriate criteria for a healthy 
school environment. 
‘‘(B) CRITERIA FOR HEALTHY SCHOOL EN-
VIRONMENTS.—The Secretary shall, taking into 
account input received under subparagraph (A), 
establish criteria for defining a healthy school 
environment, including criteria that— 
‘‘(i) provide program meals that meet 
nutritional standards for breakfasts and 
lunches established by the Secretary;
114 
‘‘(ii) ensure that all food served (in-
cluding food served in participating schools 
and service institutions in competition with 
the programs authorized under this Act 
and the Child Nutrition Act of 1966 (42 
U.S.C. 1771 et seq.)) on school grounds 
during regular school hours is consistent 
with the nutritional standards for break-
fasts and lunches established by the Sec-
retary; 
‘‘(iii) promote the consumption of 
fruits and vegetables; 
‘‘(iv) provide nutrition education to 
students and staff; and 
‘‘(v) meet other criteria established by 
the Secretary. 
‘‘(C) PLANS.—To be eligible to receive a 
grant under this subsection, a local educational 
agency shall submit to the Secretary a healthy 
school nutrition environment plan that describes 
the actions the schools under the jurisdiction of 
such agency will take to meet the criteria estab-
lished under subparagraph (B).
115 
‘‘(4) GRANTS.—For each of fiscal years 2006 
through 2009, the Secretary shall make a grant to 
each agency selected under paragraph (2). 
‘‘(5) EVALUATIONS.— 
‘‘(A) IN GENERAL.—The Secretary, acting 
through the Administrator of the Food and Nu-
trition Service, shall conduct an evaluation of a 
representative sample of schools that receive 
grants under this subsection. 
‘‘(B) CONTENT.—The evaluation shall 
measure, at a minimum, the effects of a healthy 
school nutrition environment on— 
‘‘(i) overweight children and obesity; 
‘‘(ii) dietary intake; 
‘‘(iii) nutrition education and behav-
ior; 
‘‘(iv) the adequacy of time to eat; 
‘‘(v) physical activities; 
‘‘(vi) parental and student attitudes 
and participation; and 
‘‘(vii) related funding issues, including 
the cost of maintaining a healthy school 
nutrition environment. 
‘‘(C) REPORTS.—The Secretary shall sub-
mit to the Committee on Education and the
116 
Workforce of the House of Representatives and 
the Committee on Agriculture, Nutrition, and 
Forestry of the Senate— 
‘‘(i) not later than December 31, 
2006, an interim report on the activities of 
schools evaluated under this subsection; 
and 
‘‘(ii) not later than December 31, 
2008, a final report on the activities of 
schools evaluated under this subsection. 
‘‘(6) FUNDING.— 
‘‘(A) IN GENERAL.—Out of any funds in 
the Treasury not otherwise appropriated, the 
Secretary of the Treasury shall transfer to the 
Secretary of Agriculture to carry out this sub-
section— 
‘‘(i) on October 1, 2005, $10,000,000; 
and 
‘‘(ii) on October 1, 2006, and each 
October 1 thereafter through October 1, 
2009, $35,000,000. 
‘‘(B) RECEIPT
AND
ACCEPTANCE.—The 
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out this section the
117 
funds transferred under subparagraph (A), 
without further appropriation. 
‘‘(C) AVAILABILITY
OF
FUNDS.—Funds 
transferred under subparagraph (A) shall re-
main available until expended. 
‘‘(D) EVALUATIONS.—Of the funds made 
available under this paragraph, the Secretary 
shall use not more than $5,000,000 to conduct 
evaluations under paragraph (5).’’. 
(b) COMPETITIVE FOODS IN SCHOOLS.— 
(1) IN GENERAL.—Section 10 of the Child Nu-
trition Act of 1966 (42 U.S.C. 1779) is amended— 
(A) in subsection (a), by striking ‘‘, includ-
ing’’ and all that follows through ‘‘Lunch Act’’; 
and 
(B) by striking subsection (b) and insert-
ing the following: 
‘‘(b) COMPETITIVE FOODS IN SCHOOLS.— 
‘‘(1) IN GENERAL.—The regulations under sub-
section (a) may include provisions that regulate the 
service of food in participating schools and service 
institutions in competition with the programs au-
thorized under this Act and the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et seq.)
118 
(referred to in this subsection as ‘competitive 
foods’). 
‘‘(2) REGULATIONS.—The regulations promul-
gated under paragraph (1)— 
‘‘(A) shall apply to all school grounds dur-
ing the duration of the school day; 
‘‘(B) shall not supersede or otherwise af-
fect State and local regulations on competitive 
foods that, as determined by the Secretary, con-
form to the nutritional goals of the regulations 
promulgated by the Secretary; 
‘‘(C) shall require that the proceeds from 
the sale of competitive foods in schools be used 
for the benefit of the schools or of organizations 
of students approved by the schools, if those 
sales are allowed by the regulations; 
‘‘(D) shall take into account the differing 
needs of— 
‘‘(i) elementary schools; 
‘‘(ii) middle schools and junior high 
schools; and 
‘‘(iii) high schools; and 
‘‘(E) shall implement the recommendations 
of the Institute of Medicine made under para-
graph (3).
119 
‘‘(3) INSTITUTE OF MEDICINE RECOMMENDA-
TIONS.— 
‘‘(A) IN GENERAL.—The Secretary of Ag-
riculture shall offer to enter into an agreement 
with the Institute of Medicine of the National 
Academy of Sciences under which the Institute 
of Medicine, based on sound nutritional science, 
shall make recommendations to the Secretary 
regarding the regulation of competitive foods 
(as defined in section 10(b)(1) of the Child Nu-
trition Act of 1966 (as amended by paragraph 
(1)(B))). 
‘‘(B) REGULATIONS.—Not later than 1 
year after the date of receipt of final rec-
ommendations from the Institute of Medicine, 
the Secretary shall promulgate regulations to 
carry out section 10(b) of the Child Nutrition 
Act of 1966 (as amended by paragraph (1)(B)) 
in accordance with the recommendations of the 
Institute of Medicine. 
‘‘(C) REPORT.—Not later than 1 year 
after the date of receipt of final recommenda-
tions from the Institute of Medicine, the Sec-
retary shall submit to the Committee on Edu-
cation and the Workforce of the House of Rep-
120 
resentatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report 
that describes the actions of the Secretary 
under subparagraph (B).’’. 
Subtitle D—Child and Adult Care 
Food Program 
SEC. 331. REIMBURSEMENTS FOR AFTERSCHOOL DINNERS. 
Section 17(r) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(r)) is amended by 
striking paragraph (5). 
Subtitle E—Afterschool Education 
Enhancement Act 
SEC. 341. SHORT TITLE. 
This subtitle may be cited as the ‘‘Afterschool Edu-
cation Enhancement Act’’. 
SEC. 342. AMENDMENTS REGARDING 21ST CENTURY COM-
MUNITY LEARNING CENTERS. 
Part B of title IV of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7171 et seq.) is amend-
ed— 
(1) in subsection (a) of section 4203— 
(A) by striking paragraph (3); and 
(B) 
by 
redesignating 
paragraphs 
(4) 
through (14) as paragraphs (3) through (13), 
respectively; and
121 
(2) in section 4204— 
(A) in paragraph (2) of subsection (b)— 
(i) by striking subparagraph (F); and 
(ii) by redesignating subparagraphs 
(G) through (N) as subparagraphs (F) 
through (M), respectively; and 
(B) by amending paragraph (1) of sub-
section (i) to read as follows: 
‘‘(1) IN GENERAL.—In awarding grants under 
this part, a State educational agency shall give pri-
ority to applications submitted jointly by eligible en-
tities consisting of not less than— 
‘‘(A) 1 local educational agency receiving 
funds under part A of title I; and 
‘‘(B) 1 community-based organization or 
other public or private entity.’’. 
TITLE IV—IMPROVING THE 
WORKPLACE FOR FAMILIES 
Subtitle A—Part-Time and 
Temporary Workers Benefits 
SEC. 401. TREATMENT OF EMPLOYEES WORKING AT LESS 
THAN FULL-TIME UNDER PARTICIPATION, 
VESTING, AND ACCRUAL RULES GOVERNING 
PENSION PLANS. 
(a) PARTICIPATION RULES.—
122 
(1) IN
GENERAL.—Section 202(a)(3) of the 
Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1052(a)(3)) is amended by adding at the 
end the following new subparagraph: 
‘‘(E)(i) For purposes of this paragraph, in the case 
of any employee who, as of the beginning of the 12-month 
period referred to in subparagraph (A)— 
‘‘(I) has customarily completed 500 or 
more hours of service per year but less than 
1,000 hours of service per year, or 
‘‘(II) is employed in a type of position in 
which employment customarily constitutes 500 
or more hours of service per year but less than 
1,000 hours of service per year, 
completion of 500 hours of service within such 12- 
month period shall be treated as completion of 1,000 
hours of service. 
‘‘(ii) For purposes of this subparagraph, the extent 
to which employment in any type of position customarily 
constitutes less than 1,000 hours of service per year shall 
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary may prescribe 
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in 
such plan.’’.
123 
(2) 
CONFORMING
AMENDMENT.—Section 
204(b)(1)(E) of such Act (29 U.S.C. 1054(b)(1)(E)) 
is amended by striking ‘‘section 202(a)(3)(A)’’ and 
inserting ‘‘subparagraphs (A) and (E) of section 
202(a)(3)’’. 
(b) VESTING RULES.— 
(1) IN GENERAL.—Section 203(b)(2) of such 
Act (29 U.S.C. 1053(b)(2)) is amended by adding at 
the end the following new subparagraph: 
‘‘(E)(i) For purposes of this paragraph, in the case 
of any employee who, as of the beginning of the period 
designated by the plan pursuant to subparagraph (A)— 
‘‘(I) has customarily completed 500 or 
more hours of service per year but less than 
1,000 hours of service per year, or 
‘‘(II) is employed in a type of position in 
which employment customarily constitutes 500 
or more hours of service per year but less than 
1,000 hours of service per year, 
completion of 500 hours of service within such pe-
riod shall be treated as completion of 1,000 hours of 
service. 
‘‘(ii) For purposes of this subparagraph, the extent 
to which employment in any type of position customarily 
constitutes less than 1,000 hours of service per year shall
124 
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary may prescribe 
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in 
such plan.’’. 
(2) 1-YEAR
BREAKS
IN
SERVICE.—Section 
203(b)(3) of such Act (29 U.S.C. 1053(b)(3)) is 
amended by adding at the end the following new 
subparagraph: 
‘‘(F)(i) For purposes of this paragraph, in the case 
of any employee who, as of the beginning of the period 
designated by the plan pursuant to subparagraph (A)— 
‘‘(I) has customarily completed 500 or more 
hours of service per year but less than 1,000 hours 
of service per year, or 
‘‘(II) is employed in a type of position in which 
employment customarily constitutes 500 or more 
hours of service per year but less than 1,000 hours 
of service per year, 
completion of 250 hours of service within such period shall 
be treated as completion of 500 hours of service. 
‘‘(ii) For purposes of this subparagraph, the extent 
to which employment in any type of position customarily 
constitutes less than 1,000 hours of service per year shall 
be determined with respect to each pension plan in accord-
125 
ance with such regulations as the Secretary may prescribe 
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in 
such plan.’’. 
(c) ACCRUAL RULES.—Section 204(b)(4)(C) of such 
Act (29 U.S.C. 1054(b)(4)(C)) is amended— 
(1) by inserting ‘‘(i)’’ after ‘‘(C)’’; and 
(2) by adding at the end the following new 
clauses: 
‘‘(ii) For purposes of this subparagraph, in the case 
of any employee who, as of the beginning of the period 
designated by the plan pursuant to clause (i)— 
‘‘(I) has customarily completed 500 or more 
hours of service per year but less than 1,000 hours 
of service per year, or 
‘‘(II) is employed in a type of position in which 
employment customarily constitutes 500 or more 
hours of service per year but less than 1,000 hours 
of service per year, 
completion of 500 hours of service within such period shall 
be treated as completion of 1,000 hours of service. 
‘‘(iii) For purposes of clause (ii), the extent to which 
employment in any type of position customarily constitutes 
less than 1,000 hours of service per year shall be deter-
mined with respect to each pension plan in accordance
126 
with such regulations as the Secretary may prescribe pro-
viding for consideration of facts and circumstances pecu-
liar to the work-force constituting the participants in such 
plan.’’. 
SEC. 402. TREATMENT OF EMPLOYEES WORKING AT LESS 
THAN FULL-TIME UNDER GROUP HEALTH 
PLANS. 
(a) IN GENERAL.—Part 2 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 is 
amended— 
(1) by redesignating section 211 (29 U.S.C. 
1061) as section 212; and 
(2) by inserting after section 210 (29 U.S.C. 
1060) the following new section: 
‘‘SEC. 211. TREATMENT OF PART-TIME WORKERS UNDER 
GROUP HEALTH PLANS. 
‘‘(a) IN GENERAL.—A reduction in the employer-pro-
vided premium under a group health plan with respect to 
any employee for any period of coverage solely because the 
employee’s customary employment is less than full-time 
may be provided under such plan only if the employee is 
described in subsection (b) and only to the extent per-
mitted under subsection (c). 
‘‘(b) REDUCTIONS
APPLICABLE
TO
EMPLOYEES 
WORKING LESS THAN FULL-TIME.—
127 
‘‘(1) IN GENERAL.—An employee is described in 
this subsection if such employee, as of the beginning 
of the period of coverage referred to in subsection 
(a)— 
‘‘(A) has customarily completed less than 
30 hours of service per week, or 
‘‘(B) is employed in a type of position in 
which employment customarily constitutes less 
than 30 hours of service per week. 
‘‘(2) REGULATIONS.—For purposes of para-
graph (1), whether employment in any type of posi-
tion customarily constitutes less than 30 hours of 
service per week shall be determined with respect to 
each group health plan in accordance with such reg-
ulations as the Secretary may prescribe providing 
for consideration of facts and circumstances peculiar 
to the work-force constituting the participants in 
such plan. 
‘‘(c) AMOUNT OF PERMISSIBLE REDUCTION.—The 
employer-provided premium under a group health plan 
with respect to any employee for any period of coverage, 
after the reduction permitted under subsection (a), shall 
not be less than a ratable portion of the employer-provided 
premium which would be provided under such plan for
128 
such period of coverage with respect to an employee who 
completes 30 hours of service per week. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) GROUP HEALTH PLAN.—The term ‘group 
health plan’ has the meaning provided such term in 
section 607(1). 
‘‘(2) EMPLOYER-PROVIDED PREMIUM.— 
‘‘(A) IN GENERAL.—The term ‘employer- 
provided premium’ under a plan for any period 
of coverage means the portion of the applicable 
premium under the plan for such period of cov-
erage which is attributable under the plan to 
employer contributions. 
‘‘(B) APPLICABLE
PREMIUM.—For pur-
poses of subparagraph (A), in determining the 
applicable premium of a group health plan, 
principles similar to the principles applicable 
under section 604 shall apply.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 201(1) of such Act (29 U.S.C. 
1051(1)) is amended by inserting ‘‘, except with re-
spect to section 211’’ before the semicolon. 
(2) The table of contents in section 1 of such 
Act is amended by striking the item relating to sec-
tion 211 and inserting the following new items:
129 
‘‘211. Treatment of part-time workers under group health plans. 
‘‘212. Effective date.’’. 
SEC. 403. EXPANSION OF DEFINITION OF EMPLOYEE TO IN-
CLUDE CERTAIN INDIVIDUALS WHOSE SERV-
ICES ARE LEASED OR CONTRACTED FOR. 
Paragraph (6) of section 3 of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1002(6)) 
is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B) Such term includes, with respect to any em-
ployer, any person who is not an employee (within the 
meaning of subparagraph (A)) of such employer and who 
provides services to such employer, if— 
‘‘(i) such person has (pursuant to an agreement 
with such employer or any other person) performed 
such services for such employer (or for such em-
ployer and related persons (within the meaning of 
section 144(a)(3) of the Internal Revenue Code of 
1986)) for a period of at least 1 year (6 months in 
the case of core health benefits) at the rate of at 
least 500 hours of service per year, and 
‘‘(ii) such services are of a type historically per-
formed, in the business field of the employer, by em-
ployees (within the meaning of subparagraph (A)).’’.
130 
SEC. 404. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as provided in subsection 
(b), the amendments made by this subtitle shall apply with 
respect to plan years beginning on or after January 1, 
2005. 
(b) SPECIAL RULE FOR COLLECTIVELY BARGAINED 
PLANS.—In the case of a plan maintained pursuant to 1 
or more collective bargaining agreements between em-
ployee representatives and 1 or more employers ratified 
on or before the date of the enactment of this Act, sub-
section (a) shall be applied to benefits pursuant to, and 
individuals covered by, any such agreement by substituting 
for ‘‘January 1, 2005’’ the date of the commencement of 
the first plan year beginning on or after the earlier of— 
(1) the later of— 
(A) January 1, 2005, or 
(B) the date on which the last of such col-
lective bargaining agreements terminates (de-
termined without regard to any extension there-
of after the date of the enactment of this Act), 
or 
(2) January 1, 2007. 
(c) PLAN AMENDMENTS.—If any amendment made 
by this subtitle requires an amendment to any plan, such 
plan amendment shall not be required to be made before
131 
the first plan year beginning on or after January 1, 2005, 
if— 
(1) during the period after such amendment 
made by this Act takes effect and before such first 
plan year, the plan is operated in accordance with 
the requirements of such amendment made by this 
subtitle, and 
(2) such plan amendment applies retroactively 
to the period after such amendment made by this 
subtitle takes effect and such first plan year. 
A plan shall not be treated as failing to provide definitely 
determinable benefits or contributions, or to be operated 
in accordance with the provisions of the plan, merely be-
cause it operates in accordance with this subsection. 
Subtitle B—United States Business 
Telework Act 
SEC. 411. SHORT TITLE. 
This subtitle may be cited as the ‘‘United States 
Business Telework Act’’. 
SEC. 412. TELEWORK PILOT PROGRAM. 
(a) PROGRAM.—In accordance with this subtitle, the 
Secretary of Labor shall conduct, in not more than 5 
States, a pilot program to raise awareness about telework 
among employers and to encourage such employers to 
offer telework options to employees.
132 
(b) PERMISSIBLE ACTIVITIES.—In carrying out the 
pilot program, the Secretary is encouraged to— 
(1) produce educational materials and conduct 
presentations designed to raise awareness of the 
benefits and the ease of telework; 
(2) conduct outreach to businesses that are con-
sidering offering telework options; 
(3) acquire telework technologies and equip-
ment to be used for demonstration purposes; and 
(4) ensure that expectant and new mothers who 
are employed by businesses that participate in the 
pilot program are given the option to telework dur-
ing the 1-year period after the date of birth. 
SEC. 413. REPORT TO CONGRESS. 
Not later than 2 years after the first date on which 
funds are appropriated to carry out this subtitle, the Sec-
retary shall transmit to the Congress a report containing 
the results of an evaluation of the pilot program and any 
recommendations as to whether the pilot program, with 
or without modification, should be expanded. 
SEC. 414. DEFINITION. 
In this subtitle, the term ‘‘telework’’ means the per-
formance of any portion of work functions by an employee 
outside the normal place of business under circumstances 
which reduce or eliminate the need to commute.
133 
SEC. 415. TERMINATION. 
The pilot program shall terminate 2 years after the 
first date on which funds are appropriated to carry out 
this subtitle. 
SEC. 416. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated $5,000,000 to 
carry out this subtitle. 
Æ