A bill to increase the supply of quality child care.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Caring for Children Act''.

         TITLE I--CHILD CARE TRAINING THROUGH DISTANCE LEARNING

SEC. 101. GRANTS FOR THE DEVELOPMENT OF A CHILD CARE TRAINING 
              INFRASTRUCTURE.

    (a) Authority to Award Grants.--The Secretary of Health and Human 
Services shall award grants to eligible entities to develop distance 
learning child care training technology infrastructures and to develop 
model technology-based training courses for child care providers and 
child care workers, to be provided through distance learning programs 
made available through the infrastructure. The Secretary shall, to the 
maximum extent possible, ensure that such grants are awarded in those 
regions of the United States with the fewest training opportunities for 
child care providers.
    (b) Eligibility Requirements.--To be eligible to receive a grant 
under subsection (a), an entity shall--
            (1) develop the technological and logistical aspects of the 
        infrastructure described in this section and have the 
        capability of implementing and maintaining the infrastructure;
            (2) to the maximum extent possible, develop partnerships 
        with secondary schools, institutions of higher education, State 
        and local government agencies, and private child care 
        organizations for the purpose of sharing equipment, technical 
        assistance, and other technological resources, including--
                    (A) developing sites from which individuals may 
                access the training;
                    (B) converting standard child care training courses 
                to programs for distance learning; and
                    (C) promoting ongoing networking among program 
                participants; and
            (3) develop a mechanism for participants to--
                    (A) evaluate the effectiveness of the 
                infrastructure, including the availability and 
                affordability of the infrastructure, and the training 
                offered through the infrastructure; and
                    (B) make recommendations for improvements to the 
                infrastructure.
    (c) Application.--To be eligible to receive a grant under 
subsection (a), an entity shall submit an application to the Secretary 
at such time and in such manner as the Secretary may require, and that 
includes--
            (1) a description of the partnership organizations through 
        which the distance learning programs will be made available;
            (2) the capacity of the infrastructure in terms of the 
        number and type of distance learning programs that will be made 
        available;
            (3) the expected number of individuals to participate in 
        the distance learning programs; and
            (4) such additional information as the Secretary may 
        require.
    (d) Limitation on Fees.--No entity receiving a grant under this 
section may collect fees from an individual for participation in a 
distance learning program funded in whole or in part under this section 
that exceed the pro rata share of the amount expended by the entity to 
provide materials for the program and to develop, implement, and 
maintain the infrastructure (minus the amount of the grant awarded 
under this section).
    (e) Rule of Construction.--Nothing in this section shall be 
construed as requiring a child care provider to subscribe to or 
complete a distance learning program made available under this section.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this title 
$50,000,000 for each of fiscal years 2006 through 2010.

TITLE II--REMOVAL OF BARRIERS TO INCREASING THE SUPPLY OF QUALITY CHILD 
                                  CARE

SEC. 201. SMALL BUSINESS CHILD CARE GRANT PROGRAM.

    (a) Establishment.--The Secretary of Health and Human Services 
(referred to in this section as the ``Secretary'') shall establish a 
program to award grants to States, on a competitive basis, to assist 
States in providing funds to encourage the establishment and operation 
of employer operated child care programs.
    (b) Application.--To be eligible to receive a grant under this 
section, a State shall prepare and submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require, including an assurance that 
the funds required under subsection (e) will be provided.
    (c) Amount of Grant.--The Secretary shall determine the amount of a 
grant to a State under this section based on the population of the 
State as compared to the population of all States receiving grants 
under this section.
    (d) Use of Funds.--
            (1) In general.--A State shall use amounts provided under a 
        grant awarded under this section to provide assistance to small 
        businesses located in the State to enable the small businesses 
        to establish and operate child care programs. Such assistance 
        may include--
                    (A) technical assistance in the establishment of a 
                child care program;
                    (B) assistance for the startup costs related to a 
                child care program;
                    (C) assistance for the training of child care 
                providers;
                    (D) scholarships for low-income wage earners;
                    (E) the provision of services to care for sick 
                children or to provide care to school aged children;
                    (F) the entering into of contracts with local 
                resource and referral or local health departments;
                    (G) assistance for care for children with 
                disabilities; or
                    (H) assistance for any other activity determined 
                appropriate by the State.
            (2) Application.--To be eligible to receive assistance from 
        a State under this section, a small business shall prepare and 
        submit to the State an application at such time, in such 
        manner, and containing such information as the State may 
        require.
            (3) Preference.--
                    (A) In general.--In providing assistance under this 
                section, a State shall give priority to applicants that 
                desire to form a consortium to provide child care in a 
                geographic area within the State where such care is not 
                generally available or accessible.
                    (B) Consortium.--For purposes of subparagraph (A), 
                a consortium shall be made up of 2 or more entities 
                that may include businesses, nonprofit agencies or 
                organizations, local governments, or other appropriate 
                entities.
            (4) Limitation.--With respect to grant funds received under 
        this section, a State may not provide in excess of $250,000 in 
        assistance from such funds to any single applicant.
    (e) Matching Requirement.--To be eligible to receive a grant under 
this section a State shall provide assurances to the Secretary that, 
with respect to the costs to be incurred by an entity receiving 
assistance in carrying out activities under this section, the entity 
will make available (directly or through donations from public or 
private entities) non-Federal contributions to such costs in an amount 
equal to--
            (1) for the first fiscal year in which the entity receives 
        such assistance, not less than 50 percent of such costs ($1 for 
        each $1 of assistance provided to the entity under the grant);
            (2) for the second fiscal year in which the entity receives 
        such assistance, not less than 66\2/3\ percent of such costs 
        ($2 for each $1 of assistance provided to the entity under the 
        grant); and
            (3) for the third fiscal year in which the entity receives 
        such assistance, not less than 75 percent of such costs ($3 for 
        each $1 of assistance provided to the entity under the grant).
    (f) Requirements of Providers.--To be eligible to receive 
assistance under a grant awarded under this section a child care 
provider shall comply with all applicable State and local licensing and 
regulatory requirements and all applicable health and safety standards 
in effect in the State.
    (g) State-Level Activities.--A State may not retain more than 3 
percent of funds for State administration and other State-level 
activities.
    (h) Administration.--
            (1) State responsibility.--A State shall have 
        responsibility for administering a grant awarded for the State 
        under this section and for monitoring 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 misuse. 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 process with respect 
                to repayments under this paragraph.
    (i) 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 funded 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 
                subparagraph (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 awarded under this section that remain in 
                operation and the extent to which such facilities are 
                meeting 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 
                subparagraph (A).
    (j) Definition.--In this section, the term ``small business'' means 
an employer who employed an average of at least 2 but not more than 50 
employees on business days during the preceding calendar year.
    (k) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this section, $50,000,000 for the period of fiscal 
        years 2006 through 2010.
            (2) Evaluations and administration.--With respect to the 
        total amount appropriated for such period in accordance with 
        this subsection, not more than $2,500,000 of that amount may be 
        used for expenditures related to conducting evaluations 
        required under, and the administration of, this section.
    (l) Termination of Program.--The program established under 
subsection (a) shall terminate on September 30, 2011.

Summary: Caring for Children Act - Directs the Secretary of Health and Human Services to award grants to eligible entities to develop: (1) distance learning child care training technology infrastructures; and (2) model technology-based training courses for child care providers and child care workers, to be provided through distance learning programs made available through the infrastructure. Requires, to the maximum extent possible, that such grants be awarded in regions with the fewest training opportunities for child care providers.

Directs the Secretary to establish a demonstration program of competitive grants to States to help them provide funds to encourage the establishment and operation of small business employer-operated child care programs. Requires a State to give priority for such assistance to applicants that desire to form a consortium to provide child care in an area where such care is not generally available or accessible. Allows such consortia to include businesses, nonprofit agencies or organizations, local governments, or other appropriate entities.