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[DOCID: f:s814is.txt]
107th CONGRESS
1st Session
S. 814
To establish the Child Care Provider Retention and Development Grant
Program and the Child Care Provider Scholarship Program.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 2, 2001
Mr. Dodd (for himself and Mr. Corzine) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To establish the Child Care Provider Retention and Development Grant
Program and the Child Care Provider Scholarship Program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Focus On Committed
and Underpaid Staff for Children's Sake Act'' or as the ``FOCUS Act''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. Definitions.
Sec. 4. Funds for child care provider retention and development grants
and for child care provider scholarships.
Sec. 5. Application and plan.
Sec. 6. Allotments to States.
Sec. 7. Child Care Provider Retention and Development Grant Program.
Sec. 8. Child Care Provider Scholarship Program.
Sec. 9. Annual report.
Sec. 10. Authorization of appropriations.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress makes the following findings:
(1) Research on early brain development and early childhood
demonstrates that the experiences children have and the
attachments they form early in life have a decisive, long-
lasting impact on their later development and learning.
(2) High-quality, developmentally appropriate child care
beginning in early childhood and continuing through the years
that children are in school improves the scholastic success and
educational attainments of children that persist into
adulthood.
(3) According to a growing body of research, the single
most important determinant of child care quality is the
presence of consistent, sensitive, well-trained, and well-
compensated child care providers; however, child care programs
nationwide experience high turnover in teaching staff, fueled
by poor compensation and few opportunities for advancement.
(4) The Department of Labor reports that in 1999 the
average wage for a child care provider was $7.42 per hour, or
$15,430 annually. For a full-time, full-year work, the wages of
a child care provider were not much above the 1999 poverty
threshold of $13,423 for a single parent with two children.
Family child care providers earned even less. The median wage
of a family child care provider in 1999 was $264 weekly, or
$13,728 annually.
(5) Despite the important role child care providers may
play in early child development and learning, child care
providers earn less than bus drivers ($26,460), barbers
($20,970), and janitors ($18,220).
(6) Employer-sponsored benefits are minimal for most child
care staff. Even among child care centers, the availability of
health care coverage for staff remains woefully inadequate.
(7) To offer compensation that would be sufficient to
attract and retain qualified child care staff, child care
programs would be required to charge fees that many parents
could not afford. In programs that serve low-income children
who qualify for Federal and State child care subsidies, the
reimbursement rates set by the State strongly influence the
level of compensation that staff receive. Current reimbursement
rates for center-based child care services and family child
care services are insufficient to recruit and retain qualified
child care providers and to ensure high-quality services for
children.
(8) Teachers leaving the profession are replaced by staff
with less education and formal training in early child
development.
(9) As a result of low wages and limited benefits, many
child care providers do not stay long in the child care field.
Approximately thirty percent of all teaching staff leave their
child care centers each year.
(10) Child care providers, as well as the children,
families, and businesses that depend upon them, suffer the
consequences of inadequate compensation. This is true, with few
exceptions, for providers in all types of programs: subsidized,
nonsubsidized, for-profit, nonprofit, large, and small child
care settings.
(11) Because of the severe shortage of qualified staff
available for employment by child care programs nationwide,
several States have recently initiated programs to improve the
quality of child care by increasing the training and
compensation of child care providers. Such programs encourage
the training, education and increased retention of qualified
child care providers by offering financial incentives,
including scholarships and compensation increases, that range
from $350 to $6,500 annually.
(b) Purpose.--It is the purpose of this Act to establish the Child
Care Provider Retention and Development Grant Program and the Child
Care Provider Scholarship Program, to help children receive the high
quality child care and early education they need for positive cognitive
and social development, by rewarding and promoting retention of
committed, qualified child care providers and by providing financial
assistance to improve the educational qualifications of child care
providers.
SEC. 3. DEFINITIONS.
In this Act:
(1) Child care provider.--The term ``child care provider''
means an individual who provides a service directly to a child
on a person to person basis for compensation at--
(A) a center-based child care provider that is
licensed or regulated under State law and that
satisfies the State and local requirements applicable
to the child care services provided,
(B) a licensed or regulated family child care
provider that satisfies the State and local
requirements applicable to the child care services
provided, or
(C) an out-of-school time program that is licensed
or regulated under State law and that satisfies the
State and local requirements applicable to the child
care services provided,
(2) Family child care provider.--The term ``family child
care provider'' has the meaning given such term in section 658P
of the Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858n).
(3) Indian tribe.--The term ``Indian tribe'' has the
meaning given such term in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b(e)).
(4) In-kind contribution.--The term ``in-kind
contribution'' means payment of the cost of participation of
child care providers in health insurance programs or retirement
programs.
(5) Lead agency.--The term ``lead agency'' means the agency
designated under section 658D of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858b).
(6) Secretary.--The term ``Secretary'' means the Secretary
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of Health and Human Services.
(7) State.--The term ``State'' means any of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, American Samoa, or the Commonwealth of the Northern
Mariana Islands.
(8) Tribal organization.--The term ``tribal organization''
has the meaning given such term in section 4 of the Indian
Self-Determination and Education Assistance Act.
SEC. 4. FUNDS FOR CHILD CARE PROVIDER RETENTION AND DEVELOPMENT GRANTS
AND FOR CHILD CARE PROVIDER SCHOLARSHIPS.
(a) In General.--The Secretary may allot funds appropriated to
carry out this Act to eligible States for distribution to pay the
Federal share of the cost of making grants under this Act to eligible
child care providers.
(b) Allotments.--Funds allotted under section 6 shall be
distributed by the Secretary, and expended by the States (directly, or
at the option of the States, through units of general purpose local
government), and by Indian tribes and tribal organizations, in
accordance with this Act.
SEC. 5. APPLICATION AND PLAN.
(a) Application.--To be eligible to receive a distribution of funds
allotted under section 6, a State shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require by rule and shall include in
such application a State plan that satisfies the requirements of
subsection (b).
(b) Requirements of Plan.--
(1) Lead agency.--The State plan shall identify the lead
agency to make grants under this Act.
(2) Recruitment and retention of child care providers.--The
State plan shall describe how the lead agency will encourage
both the recruitment of child care providers who are new to the
child care field and the retention of child care providers who
have a demonstrated commitment to the child care field.
(3) Notification of grant availability.--The State plan
shall describe how the lead agency will identify and notify all
eligible child care providers in the State of the availability
of grants under this Act.
(4) Distribution of grants.--The State plan shall describe
how the lead agency will make grants under sections 7 and 8 to
child care providers in selected geographical areas in the
State in compliance with the following requirements:
(A) Selection of geographical areas.--For the
purpose of making such grants for a fiscal year, the
State shall select a variety of geographical areas,
determined by the State, that--
(i) includes urban areas, suburban areas,
and rural areas, and
(ii) contains diversity of income levels,
but shall give special consideration to geographical
areas selected under this subparagraph for the
preceding fiscal year.
(B) Selection of child care providers to receive
grants.--The State may make grants under section 7 only
to eligible child care providers in geographical areas
selected under subparagraph (A), but--
(i) may give special consideration in such
areas to eligible grant applicants who have
attained a higher relevant educational
credential, who provide a specific kind of
child care services, who provide child care
services to populations who meet specific
economic characteristics, or who meet such
other criteria as the State may establish, and
(ii) shall give special consideration to
eligible grant applicants who received a grant
under such section in the preceding fiscal
year.
(C) Limitation.--The State shall describe how the
State will ensure that grants made under section 7 to
child care providers will not be used to offset
reductions in the compensation of such providers.
(D) Reporting requirement.--With respect to each
particular geographical area selected, the State shall
agree for each fiscal year for which such State
receives a grant under this section--
(i) to include in the report required by
section 9, detailed information regarding--
(I) the continuity of employment of
grant recipients as child care
providers with the same employer,
(II) with respect to each employer
that employed a grant recipient,
whether such employer was accredited by
a recognized State or national
accrediting body during the period of
employment, and
(III) to the extent practicable and
available to the State, detailed
information regarding the rate and
frequency of employment turnover of
qualified child care providers
throughout such area,
during the 2-year period ending of the date of
applications for grants under section 7, and
(ii) to provide a follow-up report, not
later than 90 days after the end of the
succeeding fiscal year that includes
information regarding--
(I) the continuity of employment of
grant recipients as child care
providers with the same employer,
(II) with respect to each employer
that employed a grant recipient,
whether such employer was accredited by
a recognized State or national
accrediting body during the period of
employment, and
(III) to the extent practicable and
available to the State, detailed
information regarding the rate and
frequency of employment turnover of
qualified child care providers
throughout such area,
during the 1-year period beginning on the date
grants are made by under section 7 to
applicants.
(5) Child care provider retention and development grant
program.--The State plan shall describe how the lead agency
will determine the dollar amounts of grants made with funds
available to carry out section 7 in accordance with the
following requirements:
(A) The State shall demonstrate that the amounts of
individual grants to be made under section 7 will be
sufficient--
(i) to encourage child care providers to
improve their qualifications, and
(ii) to retain qualified child care
providers in the child care field.
(B) Such grants made to child car
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e providers who
have a child development associate credential and who
are employed full-time to provide child care services
shall be in an amount that is not less than $1,000 per
year.
(C) The State shall make such grants in larger
dollar amounts to child care providers who have higher
levels of education than a credential such as a child
development associate credential, according to the
following requirements:
(i) A child care provider who has a
baccalaureate degree in the area of child
development or early child education shall
receive a grant that is not less than twice the
amount of the grant that is made to a child
care provider who has an associate of the arts
degree in the area of child development or
early child education.
(ii) A child care provider who has an
associate of the arts degree in the area of
child development or early child education
shall receive a grant that is not less than 150
percent of the amount of the grant that is made
to a child care provider who has a child
development associate credential.
(iii)(I) Except as provided in subclause
(II), a child care provider who has a
baccalaureate degree in a field other than
child development or early child education
shall receive a grant equal to the grant made
to a child care provider who has an associate
of the arts degree in the area of child
development or early child education.
(II) If a child care provider who has such
baccalaureate degree obtains additional
educational training in the area of child
development or early child education, as
specified by the State, such provider shall
receive a grant equal to the grant required
under clause (i).
(D) The State shall make such grants in larger
dollar amounts to child care providers who work full-
time relative to the grant amount made to child care
providers who work part-time, based on the State definitions of full-
time and part-time work.
(E) The State shall provide grants in progressively
larger dollar amounts to child care providers to
reflect the number of years worked as a child care
provider.
(6) Distribution of child care provider scholarships.--The
State plan shall describe how the lead agency will make
scholarship grants in compliance with section 8 and shall
specify the types of educational and training programs for
which scholarship grants made under such section may be used,
including only programs that--
(A) are administered by institutions of higher
education that are eligible to participate in student
financial assistance programs under title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.),
and
(B) lead to a State or nationally recognized
credential in the area of child development or early
child education, an associate of the arts degree in the
area of child development or early child education, or
a baccalaureate degree in the area of child development
or early child education.
(7) Employer contribution.--The State plan shall describe
how the lead agency will encourage employers of child care
providers to contribute to the attainment of education goals by
child care providers who receive grants under section 8.
(8) Supplementation.--The State plan shall provide
assurances that funds received by the State to carry out
sections 7 and 8 will be used only to supplement, not to
supplant, Federal, State, and local funds otherwise available
to support existing services and activities that encourage
child care providers to improve their qualifications and that
promote the retention of qualified child care providers in the
child care field.
SEC. 6. ALLOTMENTS TO STATES.
(a) Amounts Reserved.--
(1) Territories and possessions.--The Secretary shall
reserve not more than \1/2\ of 1 percent of the funds
appropriated to carry out this Act for any fiscal year for
distribution to Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, to be allotted in accordance with
their respective needs.
(2) Indian tribes and tribal organizations.--The Secretary
shall reserve not more than 3 percent of the funds appropriated
to carry out this Act for any fiscal year for distribution to
Indian tribes and tribal organizations with applications
approved under subsection (c).
(b) Allotments to Remaining States.--
(1) General authority.--From the funds appropriated to
carry out this Act for any fiscal year remaining after
reserving funds under subsection (a), the Secretary shall allot
to each State (excluding Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands) an amount equal
to the sum of--
(A) an amount that bears the same ratio to 50
percent of such remainder as the product of the young
child factor of the State and the allotment percentage
of the State bears to the sum of the corresponding
products for all States, and --
(B) an amount that bears the same ratio to 50
percent of such remainder as the product of the school
lunch factor of the State and the allotment percentage
of the State bears to the sum of the corresponding
products for all States. --
(2) Young child factor.--The term ``young child factor''
means the ratio of the number of children in the State under 5
years of age to the number of such children in all States as
provided by the most recent annual estimates of population in
the States by the Bureau of the Census.
(3) School lunch factor.--The term ``school lunch factor''
means the ratio of the number of children in the State who are
receiving free or reduced price lunches under the school lunch
program established under the National School Lunch Act (42
U.S.C. 1751 et seq.) to the number of such children in all the
States as determined annually by the Department of Agriculture.
(4) Allotment percentage.--
(A) In general.--The allotment percentage for a
State is determined by dividing the per capita income
of all individuals in the United States, by the per
capita income of all individuals in the State.
(B) Limitations.--If an allotment percentage
determined under subparagraph (A)--
(i) is more than 1.2 percent, then the
allotment percentage of that State shall be
considered to be 1.2 percent, and
(ii) is le
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ss than 0.8 percent, then the
allotment percentage of the State shall be
considered to be 0.8 percent. --
(C) Per capita income.--For purposes of
subparagraph (A), per capita income shall be--
(i) determined at 2-year intervals,
(ii) applied for the 2-year period
beginning on October 1 of the first fiscal year
beginning on the date such determination is
made, and
(iii) equal to the average of the annual
per capita incomes for the most recent period
of 3 consecutive years for which satisfactory
data are available from the Department of
Commerce at the time such determination is
made.
(c) Allotments to Indian Tribes and Tribal Organizations.--
(1) Reservation of funds.--From amounts reserved under
subsection (a)(2), the Secretary may make allotments to Indian
tribes and tribal organizations that submit applications under
this subsection, to plan and carry out programs and activities
to encourage child care providers to improve their
qualifications and to retain qualified child care providers in
the child care field.
(2) Applications and requirements.--An application for an
allotment to an Indian tribe or tribal organization under this
section shall provide that--
(A) the applicant will coordinate, to the maximum
extent practicable, with the lead agency in each State
in which the applicant will carry out such programs and
activities, and
(B) will make such reports on, and conduct such
audits of, programs and activities under this Act as
the Secretary may require.
(d) Data and Information.--The Secretary shall obtain from each
appropriate Federal agency, the most recent data and information
necessary to determine the allotments provided for in subsection (b).
(e) Reallotments.--
(1) In general.--Any portion of the allotment under
subsection (b) to a State for a fiscal year that the Secretary
determines will not be distributed to the State for such fiscal
year shall be reallotted by the Secretary to other States
proportionately based on allotments made under such subsection
to such States for such fiscal year.
(2) Limitations.--
(A) Reduction.--The amount of any reallotment to
which a State is entitled to under paragraph (1) shall
be reduced to the extent that such amount exceeds the
amount that the Secretary estimates will be distributed
to the State to make grants under this Act.
(B) Reallotments.--The amount of such reduction
shall be reallotted proportionately based on allotments
made under subsection (b) to States with respect to
which no reduction in an allotment, or in a
reallotment, is required by this subsection.
(3) Amounts reallotted.--For purposes of this Act (other
than this subsection and subsection (b)), any amount reallotted
to a State under this subsection shall be considered to be part
of the allotment made under subsection (b) to the State.
(f) Cost Sharing.--
(1) Federal share.--Allotted funds distributed by the
Secretary to a State for a fiscal year to carry out sections 7
and 8 may be used by the State to pay--
(A) not more than 90 percent of the cost of each
grant made under such sections, in the 1st fiscal year
for which the State receives such funds,
(B) not more than 85 percent of the cost of each
grant made under such sections, in the 2d fiscal year
for which the State receives such funds,
(C) not more than 80 percent of the cost of each
grant made under such sections, in the 3d fiscal year
for which the State receives such funds, and
(D) not more than 75 percent of the cost of each
grant made under such sections, in any subsequent
fiscal year for which the State receives such funds.
(2) State share.--The non-Federal share of the cost of
making such grants shall be paid by the State in cash or in the
form of an in-kind contribution, fairly evaluated by the
Secretary.
(g) Availability of Allotted Funds Distributed to States.--Of the
allotted funds distributed under this Act to a State for a fiscal
year--
(1) not less than 67.5 percent shall be available to the
State for grants under section 7,
(2) not less than 22.5 percent shall be available to the
State for grants under section 8, and
(3) not more than 10 percent shall be available to pay
administrative costs incurred by the State to carry out this
Act.
SEC. 7. CHILD CARE PROVIDER RETENTION AND DEVELOPMENT GRANT PROGRAM.
(a) In General.--A State that receives funds allotted under section
6 and made available to carry out this section shall expend such funds
to make grants to eligible child care providers in accordance with this
section, to improve the qualifications and promote the retention of
qualified child care providers.
(b) Eligibility To Receive Grants.--To be eligible to receive a
grant under this section, a child care provider shall--
(1) have a child development associate credential or
equivalent, an associate of the arts degree in the area of
child development or early child education, a baccalaureate
degree in the area of child development or early child
education, or a baccalaureate degree in an unrelated field, and
(2) be employed as a child care provider for not less than
1 calendar year, or the program equivalent of 1 calendar year
if then employed in a child care program that operates for less
than a full calendar year, ending on the date of the
application for such grant, except that not more than 3 months
of education related to child development or to early child
education obtained during a calendar year may be treated as
employment that satisfies the requirements of this paragraph.
(c) Preservation of Eligibility.--The receipt of a grant under
section 8 by a child care provider shall not be taken into
consideration for purposes of selecting eligible applicants to receive
a grant under this section.
SEC. 8. CHILD CARE PROVIDER SCHOLARSHIP PROGRAM.
(a) In General.--A State that receives funds allotted under section
6 and made available to carry out this section shall expend such funds
to make scholarship grants to eligible child care providers in
accordance with this section to improve their educational
qualifications to provide child care services.
(b) Eligibility Requirement for Scholarship Grants.--As a condition
of eligibility to receive a scholarship grant under this section, a
child care provider shall be employed as a child care provider for not
less than 1 calendar year, or the program equivalent of 1 calendar year
if then employed in a child care program that operates for less than a
full calendar year ending on the date of the application for such
grant.
(c) Selection of Grantees.--For purposes of selecting child care
providers to receive scholarship grants under this section and
determining the dollar amounts of such grants, a State may not--
(1) take into consideration whether a grant applicant is
receiving, will
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receive, or has applied to receive any funds
under any other provision of this Act, or under any other
Federal or State law that provides funds for educational
purposes, or
(2) consider as resources of such applicant any funds such
applicant is receiving, may receive, or may be eligible to
receive under any other provision of this Act, under any other
Federal or State law that provides funds for educational
purposes, or from a private entity.
(d) Cost Sharing Required.--The dollar amount of a scholarship
grant made under this section to a child care provider shall be less
than the cost of the education for which such grant is made.
(e) Annual Maximum Scholarship Grant Amount.--The maximum aggregate
dollar amount of a scholarship grant made to an eligible child care
provider under this section in a fiscal year may not exceed $1,500.
SEC. 9. ANNUAL REPORT.
A State that receives funds appropriated to carry out this Act for
a fiscal year shall submit to the Secretary, not later than 90 days
after the end of such fiscal year, a report--
(1) specifying the uses for which the State expended such
funds, and the aggregate amount of funds (including State
funds) expended for each of such uses,
(2) containing available data relating to grants made with
such funds, including--
(A) the number of child care providers who received
such grants,
(B) the dollar amounts of such grants,
(C) any other information that describes or
evaluates the effectiveness of this Act,
(D) the particular geographical areas selected
under section 5 for the purpose of making such grants,
(E) with respect to grants made under section 7--
(i) the number of years grant recipients
have been employed as a child care provider,
(ii) the level of training and education of
grant recipients,
(iii) the salaries and other compensation
received by grant recipients to provide child
care services,
(iv) the number of children who received
child care services provided by grant
recipients,
(v) information on family demographics of
such children,
(vi) the types of settings described in
subparagraphs (A), (B), and (C) of section
3(a)(1) in which grant recipients are employed,
and
(vii) the ages of the children who received
child care services provided by grant
recipients,
(F) with respect to grants made under section 8--
(i) the number of years grant recipients
have been employed as child care provider,
(ii) the types of settings described in
subparagraphs (A), (B), and (C) of section
3(a)(1) in which grant recipients are employed,
and
(iii) the level of training and education
of grant recipients,
(iv) to the extent practicable and
available to the State, detailed information
regarding the salaries and other compensation
received by grant recipients to provide child
care services before, during, and after
receiving such grant,
(v) the ages of the children who received
child care services provided by grant
recipients,
(vi) the number of course credits or
credentials obtained by grant recipients, and
(vii) the amount of time taken for
completion of the education for which such
grants were made, and
(G) such other information as the Secretary may
require by rule.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated $5,000,000,000 in the
aggregate for fiscal years 2002 through 2006 to carry out this Act.
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