I
107TH CONGRESS
2D SESSION
H. R. 5673
To improve access by working families to affordable early education programs,
to increase the number of employers offering an early education benefit
to employees, and to develop innovative models of public-private partner-
ships in the provision of affordable early education.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 16, 2002
Mr. KENNEDY of Rhode Island introduced the following bill; which was
referred to the Committee on Education and the Workforce
A BILL
To improve access by working families to affordable early
education programs, to increase the number of employers
offering an early education benefit to employees, and
to develop innovative models of public-private partner-
ships in the provision of affordable early education.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Early Education Em-
ployee Benefit Act of 2002’’.
SEC. 2. AUTHORITY TO MAKE GRANTS.
The Secretary of Health and Human Services may
make grants on a competitive basis, and payable during
a period of not less than 2 years and not more than 5
years, to eligible States and political subdivisions of
States—
(1) to establish innovative partnerships with
private partners to reduce the cost incurred by em-
ployees and union members to obtain early education
(including child care, preschool, and other early
childhood programs), or
(2) to assist private partners to pay part of the
cost of acquiring, building, and renovating physical
premises to be used as new early education facilities.
SEC. 3. ELIGIBILITY OF STATES AND POLITICAL SUBDIVI-
SIONS OF STATES TO RECEIVE GRANTS.
To be eligible to receive a grant under section 2, a
State or a political subdivision of a State shall submit to
the Secretary an application at such time, in such form,
and containing such information as the Secretary may re-
quire by rule, including—
(1) the agency designated by the State, or the
political subdivision of a State, to serve as the lead
agency that will administer such grant,
(2) a description of the program such applicant
intends to carry out with such grant,
(3) a description of the source, and increasing
annual amount, of the funds such applicant will use
to pay the non-Federal share of the cost to carry out
such program during a period not less than 2 years
and not more than 5 years, and
(4) an agreement that such State or such polit-
ical subdivision—
(A) will contribute (from non-Federal
funds) to carry out such program, an amount
equal to 50 percent of the amount of such
grant,
(B) will not require a private partner to
offer on-site early education as a condition for
participation in an Early Education Benefit
Agreement, and
(C) will use such grant to supplement, not
supplant, spending by such State, such political
subdivision, and private partners to improve ac-
cess to and enhance the quality of early edu-
cation.
SEC. 4. SELECTION OF APPLICANTS TO RECEIVE GRANTS.
In making grants under this Act, the Secretary shall
give priority to eligible applicants that—
(1) are, in the judgment of the Secretary, most
likely to increase the number of employees and mem-
bers who receive an Early Education Benefit
through their employers and unions,
(2) propose innovative public-private partner-
ships that will carry out early education programs
that are likely to be replicated,
(3) are likely to be sustainable beyond the pe-
riod during which such grant is expended,
(4) are developed in consultation with child care
resource and referral agencies and networks, and
with employers and unions,
(5) demonstrate the intention and ability to
provide—
(A) with funds to be expended for the use
described in section 5(1), Early Education Ben-
efits through Early Education Benefit Agree-
ments to a significant number of employees of
private employers with fewer than 50 employ-
ees, or
(B) with funds to be expended for the use
described in section 5(2), Early Education
Start-up Grants to private employers with fewer
than 50 employees, and
(6) have experience working on early child-
hood issues and working in partnership with the
business community, or have an agreement to
implement the program funded by a grant made
under section 2 through a nonprofit entity with
such experience.
SEC. 5. USES OF FUNDS.
A recipient of a grant made under section 2 shall use
such grant—
(1) to enter into Early Education Benefit
Agreements to provide Early Education Benefits, or
(2) to provide funds to private partners to es-
tablish new early education facilities,
except that not more than 5 percent of such grant may
be used to pay administrative costs incurred by such re-
cipient to carry out this Act, including providing outreach
to private partners.
SEC. 6. EARLY EDUCATION BENEFIT AGREEMENTS.
(a) ELIGIBILITY.—To be eligible to receive funds to
be used for the purpose specified in section 5(1) from a
grant made under section 2, a private partner, or con-
sortia of private partners, shall enter into an Early Edu-
cation Benefit Agreement with the recipient of such grant
that includes the following:
(1) An assurance that such private partner, or
such consortia, will pay not less than—
(A) 1⁄3 of the cost of such Early Education
Benefit, or
(B) 1⁄5 of such cost if such private partner,
or such consortia, creates a new early education
facility that—
(i) serves children less than 2 years of
age or children with disabilities, or
(ii) is available during nontraditional
work hours.
(2) An assurance that such private partner, or
such consortia, shall offer such Early Education
Benefit on a priority basis to such employees or such
members who have lower incomes if such Early Edu-
cation Benefit is not offered to all such employees or
all such members.
(3) An assurance that if such private partner,
or such consortia, requires that such Early Edu-
cation Benefit received by an employee or member
be expended at a limited number of sites where early
education (including child care, preschool, and other
early childhood programs) is provided, then there
shall be at least 1 provider of early education (in-
cluding child care, preschool, and other early child-
hood programs) for which such Early Education
Benefit may be expended, that is—
(A) located at or near the residence or
place of employment of such employee or such
member, and
(B) accredited by the National Association
for the Education of Young Children or the Na-
tional Association for Family Child Care, or
taking steps to obtain such accreditation.
(4) An assurance that early education paid for
in whole or in part by such Early Education Benefit
will be provided by a provider that is licensed or reg-
ulated by the State.
(5) A detailed description of—
(i) the nature of the Early Education Ben-
efit to be provided,
(ii) the respective financial contributions of
such private partner, or such consortia, and
such grant recipient, and the procedures by
which such contributions will be made,
(iii) the number of employees or members
expected to receive the Early Education Benefit
provided under such Agreement, and
(iv) the estimated total cost of such Ben-
efit to such private partner (or such consortia),
such grant recipient, and such employees or
such members.
(b) SELECTION OF PRIVATE PARTNERS TO ENTER
INTO EARLY EDUCATION BENEFIT AGREEMENTS.—In se-
lecting private partners with which to enter into Early
Education Benefit Agreements, a recipient of a grant
made under section 2 shall give priority to—
(1) private partners that will make larger finan-
cial contributions to the Early Education Benefit,
(2) private partners with fewer employees or
members,
(3) private partners that will make an Early
Education Benefit available to employees and mem-
bers on a sliding scale inversely proportional to their
level of earned income, and
(4) private partners that have a history of per-
sonnel policies and practices that enable their em-
ployees or their members to balance work commit-
ments with family obligations.
SEC. 7. EARLY EDUCATION START-UP GRANTS.
(a) ELIGIBILITY TO RECEIVE FUNDS.—To be eligible
to receive funds for the use specified in section 5(2) from
a grant made under section 2, a private partner shall
agree—
(1) to subsidize attendance at the proposed new
early education facility for children of lower-paid em-
ployees or members, and
(2) to pay not less than 1⁄3 of the cost of ac-
quiring, building, and renovating physical premises
to be used as such facility.
(b) SELECTION OF PRIVATE PARTNERS TO RECEIVE
FUNDS.—In providing funds to private partners from a
grant received for the use specified in section 5(2), a re-
cipient of a grant made under section 2 shall give priority
to—
(1) private partners that will create a facility to
provide early education that—
(A) serves children less than 2 years of age
or children with disabilities, or
(B) is available during nontraditional
hours during which their parents are employed,
(2) private partners that will operate such a fa-
cility that is accredited, has a low ratio of children
to adults, or demonstrates other facts that show
such facility offers an early education program of
high quality,
(3) private partners that will pay with non-
governmental funds a larger share of the cost of the
use for which the Early Education Start-up Grant
funds will be expended,
(4) private partners that have fewer employees
or members, and
(5) private partners that have a history of per-
sonnel policies and practices that enable their em-
ployees or members to balance work commitments
with family obligations.
SEC. 8. REPORTS.
(a) REPORTS BY GRANTEES.—The Secretary shall
issue rules that require each recipient of a grant made
under section 2 to submit annually to the Secretary a re-
port that includes the following information for the fiscal
year for which such report is submitted:
(1) The number of Early Education Benefit
Agreements participated in and Start-Up Grants
made.
(2) Information about the private partners, in-
cluding the industry of which they are a part and
their size.
(3) Information about the number of employees
who are both offered and are receiving Early Edu-
cation Benefits as a result of such grant,including
the number and average incomes of employees who
are receiving Early Education Benefits and the
number of employees who were offered and declined
Early Education Benefits.
(4) Information about the amount of private
spending on Early Education Benefits and on the in-
vestment in new early education facilities leveraged
by the grants.
(5) If appropriate and available, information
about whether and at what level private partners
have continued to provide Early Education Benefits
after the conclusion of the grantee’s participation in
an Early Education Benefit Agreement.
(b) REPORTS BY THE SECRETARY.—The Secretary
shall submit to the Congress biennially a report that in-
cludes the following information for the period of 2 fiscal
years for which such report is submitted:
(1) Summaries of the reports received under
subsection (a) by the Secretary for such period.
(2) A description of the implementation of this
Act, and its impact on employees’ access to early
education programs for their children, during such
period.
SEC. 9. DEFINITIONS.
For purposes of this Act:
(1) CHILD.—The term ‘‘child’’ means an indi-
vidual who is less that 6 years of age.
(2) EARLY EDUCATION BENEFIT.—The term
‘‘Early Education Benefit’’ means assistance, in
cash or in kind, to pay any part of the cost incurred
by employees and union members to obtain early
education (including child care, preschool, and other
early childhood programs) for their children.
(3) EARLY
EDUCATION
BENEFIT
AGREE-
MENT.—The term ‘‘Early Education Benefit Agree-
ment’’ means a contract under which a recipient of
a grant under section 2 and a private partner that
receives from such recipient funds provided for the
use described in section 5(1) agree to provide jointly
an Early Education Benefit for children of the mem-
bers or employees of such private partner.
(4) PRIVATE PARTNER.—The term ‘‘private
partner’’ means a private employer, labor union, and
consortia of employers or labor unions.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this Act such sums as may be necessary for fiscal years
2003 through 2007.
Æ