Family Opportunity Act of 2001 or the Dylan Lee James Act - Amends SSA title XIX (Medicaid) to give States the option of allowing families of disabled children to purchase Medicaid coverage for them.
Children's Health Insurance Accountability Act of 2001 - Amends the Public Health Service Act (PHSA) and the Employee Retirement Income Security Act of 1974 (ERISA) to provide for children's health accountability standards.
Kids Deserve Freedom from Tobacco Act of 2001 or the KIDS Act - Amends the Federal Food, Drug, and Cosmetic Act to provide for additional restrictions on the marketing, advertising, and access to tobacco products.
Comprehensive Insurance Coverage of Childhood Immunization Act of 2001 - Amends ERISA, PHSA, and the Internal Revenue Code (IRC) to outline standards relating to coverage of childhood immunization.
Children's Environmental Protection Act - Amends the Toxic Substances Control Act to provide for environmental protection for children and other vulnerable subpopulations.
School Environment Protection Act - Amends the Federal Insecticide, Fungicide, and Rodenticide Act to provide for integrated pest management systems for public schools.
Directs the Secretary of Health and Human Services (HHS Secretary) to make grants to eligible States to support parenting support and education programs.
Family and Medical Leave Fairness Act of 2001 - Amends the Family and Medical Leave Act of 1993 to extend its coverage to private employers with 25 or more (currently, 50 or more) employees.
Family Income to Respond to Significant Transitions Insurance Act - Directs the Secretary of Labor to make grants to pay for the Federal share of projects to provide wage replacement for eligible individuals responding to family caregiving needs, including those resulting from the birth or adoption of a child.
Children's Environmental Protection and Right to Know Act - Amends: (1) the Emergency Planning and Community Right-To-Know Act of 1986 with respect to reporting toxic chemicals; and (2) the Federal Hazardous Substances Act to require publication of a list of substances or mixtures determined toxic to children.
Amends SSA title IV part D (Child Support and Establishment of Paternity) to provide block grants to States for media campaigns promoting responsible fatherhood.
Focus On Committed and Underpaid Staff for Children's Sake Act or the FOCUS Act - Establishes the Child Care Provider Development and Retention Grant Program and the Child Care Provider Scholarship Program.
Federal Employees Child Care Act - Provides for child care centers in Federal facilities as well as for child care services for Federal employees.
Child Care Facilities Financing Act - Authorizes the Secretary to award grants for the Federal share of the cost of the acquisition, construction, or improvement of child care facilities or equipment.
Book Stamp Act - Directs the Secretary to make grants to State agencies to promote child literacy and improve children's access to books at home and in early learning and other child care programs.
America's Better Classroom Act of 2001 - Amends the IRC to establish an income tax credit for qualified public school modernization, school construction, and zone academy bonds.
Child Opportunity Zone Family Center Act of 2001 - Amends the Elementary and Secondary Education Act of 1965 to authorize the Secretary of Education to award grants to partnerships for child opportunity zone family centers.
Tax Relief for Working Families Act of 2001 - Amends the IRC to increase the earned income tax credit for married couples and for two or more qualifying children. Extends the dependent care tax credit to respite care services.
Establishes the Gateways Grant Program to improve the administration of State and county low-income families with children programs.
Child Support Distribution Act of 2001 - Amends SSA title IV parts A (Temporary Assistance for Needy Families) (TANF) and B (Child Support and Establishment of Paternity) to provide for increased child support payments to families and enforcement of child support obligations.
Child Support Assurance Act of 2001 - Directs the HHS Secretary to make grants to States for child support assurance demonstration projects.
Fair Minimum Wage Act of 2001 - Amends the Fair Labor Standards Act of 1938 to provide for a graduated increase in the minimum wage (and apply it to the Commonwealth of the Northern Mariana Islands).
Federal Living Wage Responsibility Act - Specifies minimum hourly wages and other employment terms for employees under Federal contracts.
Amends the Richard B. Russell National School Lunch Act concerning the child and adult care food program, and the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 concerning the food stamp program.
Directs the Secretary of Housing and Urban Development (HUD) to establish a rental assistance voucher program. Establishes the Voucher Success Fund and the National Affordable Housing Trust Fund.
Housing Preservation Matching Grant Act of 2001 - Directs the HUD Secretary to make grants to States for low-income housing preservation.
Amends SSA title IV part E (Foster Care and Adoption Assistance) to direct the HHS Secretary to reimburse States for preventive, protective, crisis, permanency, independent living, and post-permanency services. Amends SSA title IV part B (Child and Family Services) for expansion of the promoting safe and stable families program.
Social Services Block Grant Restoration Act of 2001 - Amends SSA title IV part A (TANF) and SSA title XX (Block Grants to States for Social Services) to provide for restoration of funds for the social services block grant.
Child Protection/Alcohol and Drug Partnership Act of 2001 - Amends SSA title IV part B to provide for child protection and alcohol and drug partnerships for children.
Amends SSA title IV part E to provide for a permanency grants program.
Amends the Family Violence Prevention and Services Act to direct the HHS Secretary to award grants for programs to encourage domestic violence models using multisystem partnerships to address the needs of children exposed to domestic violence. Directs the Secretary to make grants to States to address the mental health and developmental needs of young children.
Revises the 21st Century Community Learning Centers Act.
Younger Americans Act - Establishes a national youth policy, an Office of National Youth Policy in the Executive Office of the President, and a Council on National Youth Policy.
Establishes grants for State and community programs to encourage and assist State agencies, community boards, and area agencies on youth to assure that all youth have access to the full array of core resources.
Mental Health Juvenile Justice Act - Amends the Juvenile Justice and Delinquency Prevention Act of 1974 (JJDPA) to establish grants for a State and local juvenile justice agency training program regarding access to mental health and substance abuse treatment for juveniles in contact with the State juvenile justice system.
Establishes a Federal Coordinating Council on Criminalization of Juveniles With Mental Disorders.
Juvenile Justice and Accountability Act - Amends the JJDPA to establish grants to States for juvenile accountability block grants.
Amends the Federal criminal code to: (1) provide for the regulation of firearms transfers at gun shows; and (2) require child handgun safety locks on firearms.
Amends the Consumer Product Safety Act to require child handgun safety locks.
Prohibits weapons transfers to juveniles and imports of large capacity ammunition feeding devices.
Amends the Violent Crime Control and Law Enforcement Act of 1994 to establish grants for: (1) State and local domestic violence offender recordkeeping improvements; (2) State and local gun prosecutors; and (3) local and antigun violence media campaigns.
Provides for regulation of Internet firearms transfers. Prohibits multiple handgun sales or purchases.
Directs the HHS Secretary to establish the Advisory Committee on Private Sector Support for Children and Families.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 940 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 940
To leave no child behind.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 23, 2001
Mr. Dodd (for himself, Mr. Kennedy, and Mr. Wellstone) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To leave no child behind.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Leave No Child Behind Act of 2001''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
TITLE I--HEALTHY START--CHILDREN'S HEALTH INSURANCE
Subtitle A--Children's Health Insurance
Sec. 1001. MediKids health insurance.
Sec. 1002. Benefits for all children born after 2002.
Sec. 1003. MediKids premium.
Sec. 1004. Refundable credit for cost-sharing expenses under MediKids
program.
Sec. 1005. Report on long-term revenues.
Subtitle B--Children's Health Insurance Eligibility Expansion and
Enrollment Improvements
Csubchapter a--medicaid and schip
Sec. 1101. Expansion of children's eligibility for medicaid and SCHIP.
Sec. 1102. Optional coverage of legal immigrants under the medicaid
subchapter b--family opportunity act
Sec. 1111. Short title; amendments to Social Security Act.
Sec. 1112. Opportunity for families of disabled children to purchase
medicaid coverage for such children.
Sec. 1113. Treatment of inpatient psychiatric hospital services for
individuals under age 21 in home or
community-based services waivers.
Sec. 1114. Demonstration of coverage under the medicaid program of
children with potentially severe
disabilities.
Sec. 1115. Development and support of family-to-family health
information centers.
Sec. 1116. Restoration of medicaid eligibility for certain SSI
beneficiaries.
Chapter 2--Enrollment Improvements
Sec. 1121. Application of simplified title XXI procedures under the
medicaid program.
Sec. 1122. Automatic enrollment of children born to title XXI parents.
Chapter 3--Effective Date
Sec. 1131. Effective date.
Subtitle C--Improving Access to Care
Chapter 1--Commission
Sec. 1201. Commission on Children's Access to Care.
Chapter 2--Children's Health Insurance Accountability
Sec. 1211. Short title.
Sec. 1212. Findings.
Sec. 1213. Amendments to the Public Health Service Act.
Sec. 1214. Amendments to the Employee Retirement Income Security Act of
1974.
Sec. 1215. Studies.
Chapter 3--EPSDT
Sec. 1221. Collection of data regarding the delivery of EPSDT services.
Subtitle D--Reducing Public Health Risks
Chapter 1--Asthma Treatments
Sec. 1301. Findings.
Sec. 1302. Asthma, vision, and hearing screening for early Head Start
and Head Start programs.
Sec. 1303. Asthma, vision, and hearing screening and treatment for
children enrolled in public schools.
Sec. 1304. General effective date.
Chapter 2--Increase in HUD Programs
Sec. 1311. Lead-based paint hazard control grants.
Sec. 1312. Healthy Homes Initiative program.
Chapter 3--Youth Smoking Cessation and Education
Sec. 1321. subchapter a--protection of children from tobacco
Part I--Food and Drug Administration Jurisdiction and General Authority
Sec. 1331. Reference.
Sec. 1332. Statement of general authority.
Sec. 1333. Nonapplicability to other drugs or devices.
Sec. 1334. Conforming amendments to confirm jurisdiction.
Sec. 1335. General rule.
Sec. 1336. Safety and efficacy standard and recall authority.
Part II--Regulation of Tobacco Products
Sec. 1341. Performance standards.
Sec. 1342. Application of Federal Food, Drug, and Cosmetic Act to
tobacco products.
Sec. 1343. Funding.
Sec. 1344. Repealsubchapter b--miscellaneous provisions
Sec. 1351. Nonapplication to tobacco producers.
Sec. 1352. Equal treatment of retail outlets.
Chapter 4--Coverage Of Childhood Immunizations
Sec. 1361. Short title.
Sec. 1362. Amendments to the Employee Retirement Income Security Act of
1974.
Sec. 1363. Amendments to the Public Health Service Act.
Sec. 1364. Amendments to the Internal Revenue Code of 1986.
Sec. 1365. Effective dates.
Subtitle E--Reducing Environmental Health Risks
Chapter 1--Environmental Protection of Children
Sec. 1401. Short title.
Sec. 1402. Environmental protection for children and other vulnerable
subpopulations.
Sec. 1403. Conforming amendment.
Chapter 2--School Environmental Protection
Sec. 1411. Short title.
Sec. 1412. Integrated pest management systems for schools.
Sec. 1413. Conforming amendment.
Sec. 1414. Effective date.
TITLE II--HEALTHY START--SUPPORT FOR HEALTHY DEVELOPMENT
Subtitle A--Promotion of State and Local Support
Sec. 2001. State and local parenting support and education grant
program.
Subtitle B--Support for Parents Caring for Children
Sec. 2101. Short title.
Sec. 2102. Findings.
Sec. 2103. Coverage of employees.
Subtitle C--Paid Family Leave
Sec. 2201. Short title.
Sec. 2202. Findings.
Sec. 2203. Purposes.
Sec. 2204. Definitions.
Sec. 2205. Demonstration projects.
Sec. 2206. Evaluations and reports.
Sec. 2207. Authorization of appropriations.
Subtitle D--Health Care for the Uninsured
Sec. 2301. Familycare coverage of parents under the medicaid program
and title XXI.
Subtitle E--Awareness of Environmental Risks to Children
Sec. 2401. Short title.
Sec. 2402. Finding.
subchapter a--disclosure of industrial releases that present a
significant risk to children
Ssubchapter b--disclosure of high health risk chemicals in children's
consumer products
Sec. 2421. List of toxic chemicals.
Sec. 2422. Reporting of toxic chemicals in consumer products.
Sec. 2423. Exemptions.
Sec. 2424. Private citizen enforcement.
Chapter 2--Public Right to Know About Toxic Chemical Use
Sec. 2431. Disclosure of toxic chemical use by comparable facilities.
Sec. 2432. Disclosure of toxic chemical use.
Sec. 2433. Streamlined data collection and dissemination.
Sec. 2434. Trade secret protection.
Subtitle F--Promoting Responsible Fatherhood
Chapter 1--Block Grants
Sec. 2501. Block grants to States to encourage media campaigns.
Sec. 2502. Responsible fatherhood block grant.
Chapter 2--National Clearinghouse
Sec. 2511. National clearinghouse for responsible fatherhood programs.
TITLE III--HEAD START AND CHILD CARE
Subtitle A--Infants and Toddlers
Sec. 3001. Reservation of Head Start Act funds for infants and
toddlers.
Sec. 3002. Reservation of child care and development block grant funds
for infants and toddlers.
Subtitle B--Child Care Access
Chapter 1--Improving Access to Child Care
Sec. 3101. Payment rates.
Chapter 2--Improvements To the Child Care and Development Block Grant
Program
Sec. 3111. Authorization of appropriations.
Sec. 3112. State plan requirements.
Sec. 3113. Definitions.
Subtitle C--Child Care Quality Improvement
Chapter 1--Focus On Committed and Underpaid Staff for Children's Sake
Sec. 3201. Short title.
Sec. 3202. Findings and purpose.
Sec. 3203. Definitions.
Sec. 3204. Funds for child care provider development and retention
grants and for child care provider
scholarships.
Sec. 3205. Allotments to States.
Sec. 3206. Application and plan.
Sec. 3207. Child care provider development and retention grant program.
Sec. 3208. Child care provider scholarship program.
Sec. 3209. Annual report.
Sec. 3210. Authorization of appropriations.
Chapter 2--Strengthening Quality Through the Child Care and Development
Block Grant
Sec. 3231. State plan.
Sec. 3232. Child care quality improvements.
Sec. 3233. Administration and enforcement.
Chapter 3--Child Care Centers in Federal Facilities
Sec. 3241. Short title.
Sec. 3242. Definitions.
Sec. 3243. Providing quality child care in Federal facilities.
Sec. 3244. Federal child care evaluation.
Sec. 3245. Child care services for Federal employees.
Sec. 3246. Miscellaneous provisions relating to child care provided by
Federal agencies.
Chapter 4--Early Learning
Sec. 3251. Amendments to the Early Learning Opportunities Act.
Chapter 5--Child Care Facilities Financing
Sec. 3261. Short title.
Sec. 3262. Technical and financial assistance grants.
Subtitle D--Head Start Access and Improvement
Sec. 3301. Authorization of appropriations.
Subtitle E--Education Improvements
Chapter 1--Increasing Access to Quality Prekindergarten Programs
Sec. 3401. Prekindergarten programs.
Chapter 2--Expanding Early Literacy Efforts
Sec. 3411. Early literacy.
Sec. 3412. Technical amendments.
Chapter 3--Increasing the Availability of Books
Sec. 3421. Short title.
Sec. 3422. Findings.
Sec. 3423. Definitions.
Sec. 3424. Grants to State agencies.
Sec. 3425. Contracts to child care resource and referral agencies.
Sec. 3426. Use of funds.
Sec. 3427. Report to Congress.
Sec. 3428. Special postage stamps for child literacy.
Sec. 3429. Authorization of appropriations.
Chapter 4--Increased Accountability
Sec. 3431. Low achieving children meet high standards.
Sec. 3432. Purpose and intent.
Sec. 3433. Authorization of appropriations.
Sec. 3434. Reservation and allocation.
Sec. 3435. State plans.
Sec. 3436. Local educational agency plans.
Sec. 3437. Targeted assistance schools.
Sec. 3438. School choice.
Sec. 3439. Assessment and local educational agency and school
improvement.
Sec. 3440. State assistance for school support and improvement.
Sec. 3441. Academic achievement awards program; improving State
assessments.
Sec. 3442. Parental involvement changes.
Sec. 3443. Professional development.
Sec. 3444. Requirements; records.
Sec. 3445. Coordination requirements.
subchapter a--amendments to title ii of the elementary and secondary
education act of 1965
Sec. 3461. subchapter b--national board certification program
Sec. 3471. Purpose.
Sec. 3472. Grants to expand participation in the national board
subchapter c--student loan forgiveness for teachers
Sec. 3481. Student loan forgiveness for teachers.
subchapter a--school modernization bonds
Sec. 3501. Short title.
Sec. 3502. Expansion of incentives for public schools.
Sec. 3503. Application of certain labor standards on construction
projects financed under public school
subchapter b--schools as centers of the community
Sec. 3551. Findings.
Sec. 3552. Purpose.
Sec. 3553. Program authorized.
Sec. 3554. Use of funds.
Sec. 3555. Applications.
Sec. 3556. Authorization of appropriations.
Chapter 7--Child Opportunity Zone Family Centers
Sec. 3571. Child opportunity zone family centers.
TITLE IV--FAIR START--LIFTING CHILDREN OUT OF POVERTY
Subtitle A--Expanding the Child Tax Credit
Sec. 4001. Expansion of child tax credit; credit made partially
refundable.
Subtitle B--Strengthening the Earned Income Tax Credit
Sec. 4101. Short title.
Sec. 4102. Increased earned income tax credit for 2 or more qualifying
children.
Sec. 4103. Simplification of definition of earned income.
Sec. 4104. Simplification of definition of child dependent.
Sec. 4105. Other modifications to earned income tax credit.
Subtitle C--Marriage Penalty Relief
Sec. 4201. Marriage penalty relief for earned income credit.
Subtitle D--Expanding the Dependent Care Tax Credit
Sec. 4301. Dependent care tax credit.
TITLE V--FAIR START--SUPPORT TO PROMOTE WORK AND REDUCE POVERTY
Subtitle A--Gateways Grant Program
Sec. 5001. Gateways grant program.
Subtitle B--Support From Both Parents
Chapter 1--Child Support Distribution
Sec. 5101. Shosubchapter a--distribution of child support
Sec. 5111. Distribution of child support collected by States on behalf
of children receiving certain welfare
subchapter b--review and adjustment of child support orders
Sec. 5116. Mandatory review and modification of child support orders
subchapter c--demonstrations of expanded information and enforcement
Sec. 5121. Guidelines for involvement of public non-IV-D child support
enforcement agencies in child support
enforcement.
Sec. 5122. Demonstrations involving establishment and enforcement of
child support obligations by public non-IV-
D child support enforcement agencies.
Sec. 5123. GAO report to Congress on private child support enforcement
agencies.
Sec. 5124. Effectivsubchapter d--expanded enforcement
Sec. 5126. Decrease in amount of child support arrearage triggering
passport denial.
Sec. 5127. Use of tax refund intercept program to collect past-due
child support on behalf of children who are
not minors.
Sec. 5128. Garnishment of compensation paid to veterans for service-
connected disabilities in order to enforce
subchapter e--miscellaneousions.
Sec. 5131. Report on undistributed child support payments.
Sec. 5132. Use of new hire information to assist in administration of
unemployment compensation programs.
Sec. 5133. Immigration provisions.
Sec. 5134. Correction of errors in conforming amendments in the
welfare-to-work and child support
amendments of 1999.
Sec. 5135. Increase in payment rate to States for expenditures for
short-term training of staff of certain
child welfare agencies.
Sec. 5136. Effective date.
Chapter 2--Child Support Demonstration Programs-
Sec. 5141. Short title.
Sec. 5142. Purposes.
Sec. 5143. Definitions.
Sec. 5144. Establishment of child support assurance demonstration
projects.
Subtitle C--Fair Wages and Unemployment Insurance
Chapter 1--Fair Minimum Wage
Sec. 5201. Short title.
Sec. 5202. Minimum wage.
Sec. 5203. Applicability of minimum wage to the Commonwealth of the
Northern Mariana Islands.
Chapter 2--Livable Wages for Employees Under Federal Contracts
Sec. 5211. Short title.
Sec. 5212. Findings.
Sec. 5213. Poverty level wage.
Sec. 5214. Effective date.
Chapter 3--Unemployment Insurance
Sec. 5221. Parity for part-time workers, fair counting of wages, and
use of improved technology for making wage
data available.
Sec. 5222. Ensuring unemployment compensation for individuals that are
separated from employment due to domestic
violence.
Sec. 5223. Loss of child care as good cause for leaving employment.
Subtitle D--Jobs for Low-Income Parents
Sec. 5301. Disregard of months engaged in work for purposes of 5-year
TANF assistance limit.
Sec. 5302. Strengthening TANF education and training requirements.
Sec. 5303. Addition of poverty reduction bonus to TANF.
Sec. 5304. Participation in workforce investment boards.
Sec. 5305. Clarification of TANF purpose.
Sec. 5306. Effective date.
Subtitle E--Incentives to Serve Families
Sec. 5401. Development of model caseworker training materials.
Sec. 5402. Exception to limit on TANF administrative expenditures for
caseworker bonuses and other State
initiatives to eliminate barriers to work.
Sec. 5403. Strengthening of TANF individual responsibility plans.
Sec. 5404. Effective date.
Subtitle F--Addressing Work Barriers
Sec. 5501. Funding to access to jobs program.
Sec. 5502. Requirement to identify and provide services to address
barriers to employment of TANF recipients.
Sec. 5503. State option to establish exceptions from time limit for
receipt of TANF assistance based on severe
barriers to employment.
Sec. 5504. Effective date.
Subtitle G--Protection for Families in Need
Sec. 5601. Earn-back of months of TANF assistance.
Sec. 5602. Establishment of a fair conciliation process for families
under TANF.
Sec. 5603. Effective date.
Subtitle H--TANF Reauthorization
Sec. 5701. Reauthorization of TANF State family assistance grants.
Sec. 5702. Prohibition on supplantation of TANF funds.
TITLE VI--FAIR START
Subtitle A--Child and Adult Care Food Program
Sec. 6001. Participation of for-profit care centers in child and adult
care food program.
Sec. 6002. Categorical eligibility requirements.
Sec. 6003. Increase in administrative reimbursement rates.
Sec. 6004. Program for at-risk school children.
Subtitle B--Food Stamp Program
Sec. 6101. Limited eligibility of food stamp benefits for qualified
aliens.
Sec. 6102. Conforming food stamp and medicaid income definitions;
simplified income calculations.
Sec. 6103. Prevention of hunger among families with children.
Sec. 6104. Encouragement of collection of child support.
Sec. 6105. Elimination of excess shelter expense deduction cap for
families with high shelter costs.
Sec. 6106. Periodic redetermination of eligibility.
Sec. 6107. Transitional benefits option.
Sec. 6108. Improving State incentives to serve working families.
Sec. 6109. Authorization of appropriations for additional commodities
under emergency food assistance program.
TITLE VII--FAIR START HOUSING
Subtitle A--Section 8 Vouchers
Sec. 7001. Rental assistance voucher program.
Sec. 7002. Voucher success fund.
Subtitle B--National Affordable Housing Trust Fund
Sec. 7101. Purposes.
Sec. 7102. National Affordable Housing Trust Fund.
Sec. 7103. Administration of National Affordable Housing Trust Fund.
Sec. 7104. Regulations.
Subtitle C--Housing Preservation Matching Grants
Sec. 7201. Short title.
Sec. 7202. Findings and purposes.
Sec. 7203. Definitions.
Sec. 7204. Authority.
Sec. 7205. Applications.
Sec. 7206. Use of grants.
Sec. 7207. Grant amount limitation.
Sec. 7208. Matching requirements.
Sec. 7209. Treatment of subsidy layering requirements.
Sec. 7210. Regulations.
Sec. 7211. Authorization of appropriations.
TITLE VIII--SAFE START
Subtitle A--Promotion of Permanency for Children
Sec. 8001. Reimbursement for preventive, protective, crisis,
permanency, independent living, and post-
permanency services and activities.
Sec. 8002. Child and family service plan and case reviews.
Sec. 8003. Kinship guardianship assistance payments for children.
Sec. 8004. Elimination of financial eligibility requirement for foster
care maintenance and adoption assistance
payments.
Sec. 8005. Establishment of uniform Federal matching rate.
Sec. 8006. Elimination of disincentive for foster parents to adopt
children with special needs who have been
in their foster care.
Sec. 8007. Extension of adoption assistance payments.
Sec. 8008. Reimbursement for room and board in foster family homes,
child care institutions, or supervised
living arrangements for young people aging
out of foster care.
Sec. 8009. Funding for vouchers to assist young people aging out of
foster care make the transition to self-
sufficiency.
Sec. 8010. Additional accountability.
Sec. 8011. Authority of Indian tribes to receive Federal funds for
foster care and adoption assistance.
Subtitle B--Promoting Safe and Stable Families
Sec. 8101. Expansion of the promoting safe and stable families program.
Subtitle C--Social Services Block Grant
Sec. 8201. Short title.
Sec. 8202. Findings.
Sec. 8202. Restoration of authority to transfer up to 10 percent of
TANF fund to the social services block
grant.
Sec. 8204. Restoration of funds for the social services block grant.
Sec. 8205. Requirement to submit annual report on State activities.
Subtitle D--Child Protection and Alcohol and Drug Partnerships
Sec. 8301. Short title.
Sec. 8302. Child protection/alcohol and drug partnerships for children.
Subtitle E--Permanency Grants
Sec. 8401. Establishment of permanency grants program.
Subtitle F--Addressing the Needs of Children Exposed to Domestic
Violence
Sec. 8501. Purposes.
Sec. 8502. Definitions.
Sec. 8503. Grants to address the needs of children who are exposed to
domestic violence.
Sec. 8504. Training and coordination of child welfare agencies and
domestic violence service providers.
Sec. 8505. Research and data collection on the impact of domestic
violence on children.
Sec. 8506. Grants to schools and early education and child care
programs for prevention of violence against
women.
Sec. 8507. Training of law enforcement and court personnel.
Subtitle G--Enhancing Healthy Emotional Development in Young Children
Sec. 8601. Enhancing healthy emotional development.
TITLE IX--SUCCESSFUL TRANSITION TO ADULTHOOD
Subtitle A--21st Century Community Learning Centers
Sec. 9001. Centers.
Subtitle B--Youth Development
Chapter 1--Short Title; Policy; Findings; Definitions
Sec. 9101. Short title.
Sec. 9102. A national youth policy.
Sec. 9103. Findings.
Sec. 9104. Definitions.
Chapter 2--Coordination Of National Youth Policy
Sec. 9111. Office on National Youth Policy.
Sec. 9112. Council on National Youth Policy.
Chapter 3--Grants For State and Community Programs
Sec. 9121. Purpose.
Sec. 9122. Authorization of appropriations.
Sec. 9123. Allotments to States.
Sec. 9124. State agencies and planning and mobilization areas.
Sec. 9125. State plans.
Sec. 9126. Distribution of funds for State activities and local
allocations.
Sec. 9127. Community boards and area agencies on youth.
Sec. 9128. Area plans.
Sec. 9129. Grants and contracts to eligible entities.
Sec. 9130. Eligible entities.
Sec. 9131. Applications.
Sec. 9132. Youth development programs.
Chapter 4--Training, Research, and Evaluation
Sec. 9141. Purpose.
Sec. 9142. Grants and contracts.
Sec. 9143. Authorization of appropriations.
Subtitle C--Youth Programs
Sec. 9201. Americorps.
Sec. 9202. Youthbuild program.
Sec. 9203. Youth workforce investment activities.
Sec. 9204. Transition training for reintegrating youth offenders.
TITLE X--SAFE START--JUVENILE JUSTICE
Subtitle A--Juvenile Delinquency Prevention and Protection
Sec. 10001. Definition of juvenile.
Sec. 10002. State plan allocation.
Sec. 10003. State plan requirements.
Sec. 10004. Repeal of part H.
Sec. 10005. Funding of Federal assistance for State and local programs.
Sec. 10006. Funding of grants for prevention programs.
Sec. 10007. Authorization of appropriations.
Subtitle B--Mental Health Juvenile Justice
Sec. 10101. Short title.
Sec. 10102. Training of justice system personnel.
Sec. 10103. Block grant funding for treatment and diversion programs.
Sec. 10104. Initiative for comprehensive, intersystem programs.
Sec. 10105. Federal Coordinating Council on the Criminalization of
Juveniles With Mental Disorders.
Sec. 10106. Mental health screening and treatment for prisoners.
Sec. 10107. Inapplicability of amendments.
Subtitle C--Juvenile Justice and Accountability
Sec. 10201. Short title.
Sec. 10202. Grant program.
Sec. 10203. Increase in funding for title III of the JJDPA.
Sec. 10204. Funding for the services for youthful offenders.
Sec. 10205. Authorization for the Juvenile Justice and Delinquency
Prevention Act of 1974.
TITLE XI--SAFE START--GUN SAFETY
Subtitle A--Closing the Gun Show Loophole
Sec. 11001. Extension of Brady background checks to gun shows.
Subtitle B--Child Safety Locks
Sec. 11101. Requirement of child handgun safety locks.
Subtitle C--Unlawful Weapons Transfers
Sec. 11201. Unlawful weapons transfers to juveniles.
Subtitle D--Large Capacity Ammunition Feeding Devices
Sec. 11301. Ban on importing large capacity ammunition feeding devices.
Subtitle E--Enforcement of Gun Laws
Sec. 11401. Enhance enforcement of gun violence laws.
Subtitle F--Miscellaneous
Sec. 11501. Study of marketing practices of the firearms industry.
Sec. 11502. Regulation of Internet firearms transfers.
Sec. 11503. Reduction of gun trafficking.
TITLE XII--MISCELLANEOUS
Sec. 12001. Advisory Committee on Private Sector Support for Children
and Families.
Sec. 12002. Improvement of data collection and reporting regarding
children and families.
TITLE I--HEALTHY START--CHILDREN'S HEALTH INSURANCE
Subtitle A--Children's Health Insurance
SEC. 1001. MEDIKIDS HEALTH INSURANCE.
(a) Short Title of Title.--This title may be cited as the
``MediKids Health Insurance Act of 2001''.
(b) Findings.--Congress finds the following:
(1) More than 11 million American children are uninsured.
(2) Children who are uninsured receive less medical care
and less preventive care and have a poorer level of health,
which result in lifetime costs to themselves and to the entire
American economy.
(3) Although SCHIP and Medicaid are successfully extending
a health coverage safety net to a growing portion of the
vulnerable low-income population of uninsured children, we now
see that they alone cannot achieve 100 percent health insurance
coverage for our nation's children due to inevitable gaps
during outreach and enrollment, fluctuations in eligibility,
and variations in access to private insurance at all income
levels.
(4) As all segments of our society continue to become more
and more transient, with many changes in employment over the
working lifetime of parents, the need for a reliable safety net
of health insurance which follows children across State lines,
already a major problem for the children of migrant and
seasonal farmworkers, will become a major concern for all
families in the United States.
(5) The Medicare program has successfully evolved over the
years to provide a stable, universal source of health insurance
for the nation's disabled and those over age 65, and therefore
provides a tested model for designing a program to reach out to
America's children.
(6) The problem of insuring 100 percent of all American
children could be gradually solved by automatically enrolling
all children born after December 31, 2002, in a program modeled
after Medicare (and to be known as ``MediKids''), and allowing
those children to be transferred into other equivalent or
better insurance programs, including either private insurance,
SCHIP, or Medicaid, if they are eligible to do so, but
maintaining the child's default enrollment in MediKids for any
times when the child's access to other sources of insurance is
lost.
(7) A family's freedom of choice to use other insurers to
cover children would not be interfered with in any way, and
children eligible for SCHIP and Medicaid would continue to be
enrolled in those programs, but the underlying safety net of
MediKids would always be available to cover any gaps in
insurance due to changes in medical condition, employment,
income, or marital status, or other changes affecting a child's
access to alternate forms of insurance.
(8) The MediKids program can be administered without
impacting the finances or status of the existing Medicare
program.
(9) The MediKids benefit package can be tailored to the
special needs of children and updated over time.
(10) The financing of the program can be administered
without difficulty by a yearly payment of affordable premiums
through a family's tax filing (or adjustment of a family's
earned income tax credit).
(11) The cost of the program will gradually rise as the
number of children using MediKids as the insurer of last resort
increases, and a future Congress always can accelerate or slow
down the enrollment process as desired, while the societal
costs for emergency room usage, lost productivity and work
days, and poor health status for the next generation of
Americans will decline.
(12) Over time 100 percent of American children will always
have basic health insurance, and we can therefore expect a
healthier, more equitable, and more productive society.
SEC. 1002. BENEFITS FOR ALL CHILDREN BORN AFTER 2002.
(a) In General.--The Social Security Act is amended by adding at
the end the following new title:
``TITLE XXII--MEDIKIDS PROGRAM
``SEC. 2201. ELIGIBILITY.
``(a) Eligibility of Individuals Born After December 31, 2002; All
Children Under 23 Years of Age in Sixth Year.--An individual who meets
the following requirements with respect to a month is eligible to
enroll under this title with respect to such month:
``(1) Age.--
``(A) First year.--During the first year in which
this title is effective, the individual has not
attained 6 years of age.
``(B) Second year.--During the second year in which
this title is effective, the individual has not
attained 11 years of age.
``(C) Third year.--During the third year in which
this title is effective, the individual has not
attained 16 years of age.
``(D) Fourth year.--During the fourth year in which
this title is effective, the individual has not
attained 21 years of age.
``(E) Fifth and subsequent years.--During the fifth
year in which this title is effective and each
subsequent year, the individual has not attained 23
years of age.
``(2) Citizenship.--The individual is a citizen or national
of the United States or is lawfully residing in the United
States.
``(b) Enrollment Process.--An individual may enroll in the program
established under this title only in such manner and form as may be
prescribed by regulations, and only during an enrollment period
prescribed by the Secretary consistent with the provisions of this
section. Such regulations shall provide a process under which--
``(1) individuals who are born in the United States after
December 31, 2002, are deemed to be enrolled at the time of
birth and a parent or guardian of such an individual is
permitted to pre-enroll in the month prior to the expected
month of birth;
``(2) individuals who are born outside the United States
after such date and who become eligible to enroll by virtue of
immigration into (or an adjustment of immigration status in)
the United States are deemed enrolled at the time of entry or
adjustment of status;
``(3) eligible individuals may otherwise be enrolled at
such other times and manner as the Secretary shall specify,
including the use of outstationed eligibility sites as
described in section 1902(a)(55)(A) and the use of presumptive
eligibility provisions like those described in section 1920A;
and
``(4) at the time of automatic enrollment of a child, the
Secretary provides for issuance to a parent or custodian of the
individual a card evidencing coverage under this title and for
a description of such coverage.
The provisions of section 1837(h) apply with respect to enrollment
under this title in the same manner as they apply to enrollment under
part B of title XVIII.
``(c) Date Coverage Begins.--
``(1) In general.--The period during which an individual is
entitled to benefits under this title shall begin as follows,
but in no case earlier than January 1, 2003:
``(A) In the case of an individual who is enrolled
under paragraph (1) or (2) of subsection (b), the date
of birth or date of obtaining appropriate citizenship
or immigration status, as the case may be.
``(B) In the case of an another individual who
enrolls (including pre-enrolls) before the month in
which the individual satisfies eligibility for
enrollment under subsection (a), the first day of such
month of eligibility.
``(C) In the case of an another individual who
enrolls during or after the month in which the
individual first satisfies eligibility for enrollment
under such subsection, the first day of the following
month.
``(2) Authority to provide for partial months of
coverage.--Under regulations, the Secretary may, in the
Secretary's discretion, provide for coverage periods that
include portions of a month in order to avoid lapses of
coverage.
``(3) Limitation on payments.--No payments may be made
under this title with respect to the expenses of an individual
enrolled under this title unless such expenses were incurred by
such individual during a period which, with respect to the
individual, is a coverage period under this section.
``(d) Expiration of Eligibility.--An individual's coverage period
under this part shall continue until the individual's enrollment has
been terminated because the individual no longer meets the requirements
of subsection (a) (whether because of age or change in immigration
status).
``(e) Entitlement to MediKids Benefits for Enrolled Individuals.--
An individual enrolled under this section is entitled to the benefits
described in section 2202.
``(f) Low-Income Information.--At the time of enrollment of a child
under this title, the Secretary shall make an inquiry as to whether or
not the family income of the family that includes the child is less
than 150 percent of the poverty line for a family of the size involved.
If the family income is below such level, the Secretary shall encode in
the identification card issued in connection with eligibility under
this title a code indicating such fact. The Secretary also shall
provide for a toll-free telephone line at which providers can verify
whether or not such a child is in a family the income of which is below
such level.
``(g) Construction.--Nothing in this title shall be construed as
requiring (or preventing) an individual who is enrolled under this
section from seeking medical assistance under a State medicaid plan
under title XIX or child health assistance under a State child health
plan under title XXI.
``SEC. 2202. BENEFITS.
``(a) Secretarial Specification of Benefit Package.--
``(1) In general.--The Secretary shall specify the benefits
to be made available under this title consistent with the
provisions of this section and in a manner designed to meet the
health needs of children.
``(2) Updating.--The Secretary shall update the
specification of benefits over time to ensure the inclusion of
age-appropriate benefits as the enrollee population gets older.
``(3) Annual updating.--The Secretary shall establish
procedures for the annual review and updating of such benefits
to account for changes in medical practice, new information
from medical research, and other relevant developments in
health science.
``(4) Input.--The Secretary shall seek the input of the
pediatric community in specifying and updating such benefits.
``(5) Limitation on updating.--In no case shall updating of
benefits under this subsection result in a failure to provide
benefits required under subsection (b).
``(b) Inclusion of Certain Benefits.--
``(1) Medicare core benefits.--Such benefits shall include
(to the extent consistent with other provisions of this
section) at least the same benefits (including coverage,
access, availability, duration, and beneficiary rights) that
are available under parts A and B of title XVIII.
``(2) All required medicaid benefits.--Such benefits shall
also include all items and services for which medical
assistance is required to be provided under section
1902(a)(10)(A) to individuals described in such section,
including early and periodic screening, diagnostic services,
and treatment services.
``(3) Inclusion of prescription drugs.--Such benefits also
shall include (as specified by the Secretary) prescription
drugs and biologicals.
``(4) Cost-sharing.--
``(A) In general.--Subject to subparagraph (B),
such benefits also shall include the cost-sharing (in
the form of deductibles, coinsurance, and copayments)
applicable under title XVIII with respect to comparable
items and services, except that no cost-sharing shall
be imposed with respect to early and periodic screening
and diagnostic services included under paragraph (2).
``(B) No cost-sharing for lowest income children.--
Such benefits shall not include any cost-sharing for
children in families the income of which (as determined
for purposes of section 1905(p)) does not exceed 150
percent of the official income poverty line (referred
to in such section) applicable to a family of the size
involved.
``(C) Refundable credit for cost-sharing for other
low-income children.--For a refundable credit for cost-
sharing in the case of children in certain families,
see section 35 of the Internal Revenue Code of 1986.
``(c) Payment Schedule.--The Secretary, with the assistance of the
Medicare Payment Advisory Commission, shall develop and implement a
payment schedule for benefits covered under this title. To the extent
feasible, such payment schedule shall be consistent with comparable
payment schedules and reimbursement methodologies applied under parts A
and B of title XVIII.
``(d) Input.--The Secretary shall specify such benefits and payment
schedules only after obtaining input from appropriate child health
providers and experts.
``(e) Enrollment in Health Plans.--The Secretary shall provide for
the offering of benefits under this title through enrollment in a
health benefit plan that meets the same (or similar) requirements as
the requirements that apply to Medicare+Choice plans under part C of
title XVIII. In the case of individuals enrolled under this title in
such a plan, the Medicare+Choice capitation rate described in section
1853(c) shall be adjusted in an appropriate manner to reflect
differences between the population served under this title and the
population under title XVIII.
``SEC. 2203. PREMIUMS.
``(a) Amount of Monthly Premiums.--
``(1) In general.--The Secretary shall, during September of
each year (beginning with 2002), establish a monthly MediKids
premium. Subject to paragraph (2), the monthly MediKids premium
for a year is equal to \1/12\ of the annual premium rate
computed under subsection (b).
``(2) Elimination of monthly premium for demonstration of
equivalent coverage (including coverage under low-income
programs).--The amount of the monthly premium imposed under
this section for an individual for a month shall be zero in the
case of an individual who demonstrates to the satisfaction of
the Secretary that the individual has basic health insurance
coverage for that month the actuarial value of which, as
determined by the Secretary, is at least actuarially equivalent
to the benefits available under this title. For purposes of the
previous sentence enrollment in a medicaid plan under title
XIX, a State child health insurance plan under title XXI, or
under the medicare program under title XVIII is deemed to
constitute basic health insurance coverage described in such
sentence.
``(b) Annual Premium.--
``(1) National, per capita average.--The Secretary shall
estimate the average, annual per capita amount that would be
payable under this title with respect to individuals residing
in the United States who meet the requirement of section
2201(a)(1) as if all such individuals were eligible for (and
enrolled) under this title during the entire year (and assuming
that section 1862(b)(2)(A)(i) did not apply).
``(2) Annual premium.--Subject to subsection (d), the
annual premium under this subsection for months in a year is
equal to 25 percent of the average, annual per capita amount
estimated under paragraph (1) for the year.
``(c) Payment of Monthly Premium.--
``(1) Period of payment.--In the case of an individual who
participates in the program established by this title, subject
to subsection (d), the monthly premium shall be payable for the
period commencing with the first month of the individual's
coverage period and ending with the month in which the
individual's coverage under this title terminates.
``(2) Collection through tax return.--For provisions
providing for the payment of monthly premiums under this
subsection, see section 59B of the Internal Revenue Code of
1986.
``(3) Protections against fraud and abuse.--The Secretary
shall develop, in coordination with States and other health
insurance issuers, administrative systems to ensure that claims
which are submitted to more than one payor are coordinated and
duplicate payments are not made.
``(d) Reduction in Premium for Certain Low-Income Families.--For
provisions reducing the premium under this section for certain low-
income families, see section 59B(c) of the Internal Revenue Code of
1986.
``SEC. 2204. MEDIKIDS TRUST FUND.
``(a) Establishment of Trust Fund.--
``(1) In general.--There is hereby created on the books of
the Treasury of the United States a trust fund to be known as
the `MediKids Trust Fund' (in this section referred to as the
`Trust Fund'). The Trust Fund shall consist of such gifts and
bequests as may be made as provided in section 201(i)(1) and
such amounts as may be deposited in, or appropriated to, such
fund as provided in this title.
``(2) Premiums.--Premiums collected under section 2203
shall be transferred to the Trust Fund.
``(b) Incorporation of Provisions.--
``(1) In general.--Subject to paragraph (2), subsections
(b) through (i) of section 1841 shall apply with respect to the
Trust Fund and this title in the same manner as they apply with
respect to the Federal Supplementary Medical Insurance Trust
Fund and part B, respectively.
``(2) Miscellaneous references.--In applying provisions of
section 1841 under paragraph (1)--
``(A) any reference in such section to `this part'
is construed to refer to title XXII;
``(B) any reference in section 1841(h) to section
1840(d) and in section 1841(i) to sections 1840(b)(1)
and 1842(g) are deemed references to comparable
authority exercised under this title;
``(C) payments may be made under section 1841(g) to
the Trust Funds under sections 1817 and 1841 as
reimbursement to such funds for payments they made for
benefits provided under this title; and
``(D) the Board of Trustees of the MediKids Trust
Fund shall be the same as the Board of Trustees of the
Federal Supplementary Medical Insurance Trust Fund.
``SEC. 2205. OVERSIGHT AND ACCOUNTABILITY.
``(a) Through Annual Reports of Trustees.--The Board of Trustees of
the MediKids Trust Fund under section 2204(b)(1) shall report on an
annual basis to Congress concerning the status of the Trust Fund and
the need for adjustments in the program under this title to maintain
financial solvency of the program under this title.
``(b) Periodic GAO Reports.--The Comptroller General of the United
States shall periodically submit to Congress reports on the adequacy of
the financing of coverage provided under this title. The Comptroller
General shall include in such report such recommendations for
adjustments in such financing and coverage as the Comptroller General
deems appropriate in order to maintain financial solvency of the
program under this title.
``SEC. 2206. INCLUSION OF CARE COORDINATION SERVICES.
``(a) In General.--
``(1) Program authority.--The Secretary, beginning in 2003,
may implement a care coordination services program in
accordance with the provisions of this section under which, in
appropriate circumstances, eligible individuals may elect to
have health care services covered under this title managed and
coordinated by a designated care coordinator.
``(2) Administration by contract.--The Secretary may
administer the program under this section through a contract
with an appropriate program administrator.
``(3) Coverage.--Care coordination services furnished in
accordance with this section shall be treated under this title
as if they were included in the definition of medical and other
health services under section 1861(s) and benefits shall be
available under this title with respect to such services
without the application of any deductible or coinsurance.
``(b) Eligibility Criteria; Identification and Notification of
Eligible Individuals.--
``(1) Individual eligibility criteria.--The Secretary shall
specify criteria to be used in making a determination as to
whether an individual may appropriately be enrolled in the care
coordination services program under this section, which shall
include at least a finding by the Secretary that for cohorts of
individuals with characteristics identified by the Secretary,
professional management and coordination of care can reasonably
be expected to improve processes or outcomes of health care and
to reduce aggregate costs to the programs under this title.
``(2) Procedures to facilitate enrollment.--The Secretary
shall develop and implement procedures designed to facilitate
enrollment of eligible individuals in the program under this
section.
``(c) Enrollment of Individuals.--
``(1) Secretary's determination of eligibility.--The
Secretary shall determine the eligibility for services under
this section of individuals who are enrolled in the program
under this section and who make application for such services
in such form and manner as the Secretary may prescribe.
``(2) Enrollment period.--
``(A) Effective date and duration.--Enrollment of
an individual in the program under this section shall
be effective as of the first day of the month following
the month in which the Secretary approves the
individual's application under paragraph (1), shall
remain in effect for one month (or such longer period
as the Secretary may specify), and shall be
automatically renewed for additional periods, unless
terminated in accordance with such procedures as the
Secretary shall establish by regulation. Such
procedures shall permit an individual to disenroll for
cause at any time and without cause at re-enrollment
intervals.
``(B) Limitation on reenrollment.--The Secretary
may establish limits on an individual's eligibility to
reenroll in the program under this section if the
individual has disenrolled from the program more than
once during a specified time period.
``(d) Program.--The care coordination services program under this
section shall include the following elements:
``(1) Basic care coordination services.--
``(A) In general.--Subject to the cost-
effectiveness criteria specified in subsection (b)(1),
except as otherwise provided in this section, enrolled
individuals shall receive services described in section
1905(t)(1) and may receive additional items and
services as described in subparagraph (B).
``(B) Additional benefits.--The Secretary may
specify additional benefits for which payment would not
otherwise be made under this title that may be
available to individuals enrolled in the program under
this section (subject to an assessment by the care
coordinator of an individual's circumstance and need
for such benefits) in order to encourage enrollment in,
or to improve the effectiveness of, such program.
``(2) Care coordination requirement.--Notwithstanding any
other provision of this title, the Secretary may provide that
an individual enrolled in the program under this section may be
entitled to payment under this title for any specified health
care items or services only if the items or services have been
furnished by the care coordinator, or coordinated through the
care coordination services program. Under such provision, the
Secretary shall prescribe exceptions for emergency medical
services as described in section 1852(d)(3), and other
exceptions determined by the Secretary for the delivery of
timely and needed care.
``(e) Care Coordinators.--
``(1) Conditions of participation.--In order to be
qualified to furnish care coordination services under this
section, an individual or entity shall--
``(A) be a health care professional or entity
(which may include physicians, physician group
practices, or other health care professionals or
entities the Secretary may find appropriate) meeting
such conditions as the Secretary may specify;
``(B) have entered into a care coordination
agreement; and
``(C) meet such criteria as the Secretary may
establish (which may include experience in the
provision of care coordination or primary care
physician's services).
``(2) Agreement term; payment.--
``(A) Duration and renewal.--A care coordination
agreement under this subsection shall be for one year
and may be renewed if the Secretary is satisfied that
the care coordinator continues to meet the conditions
of participation specified in paragraph (1).
``(B) Payment for services.--The Secretary may
negotiate or otherwise establish payment terms and
rates for services described in subsection (d)(1).
``(C) Liability.--Case coordinators shall be
subject to liability for actual health damages which
may be suffered by recipients as a result of the care
coordinator's decisions, failure or delay in making
decisions, or other actions as a care coordinator.
``(D) Terms.--In addition to such other terms as
the Secretary may require, an agreement under this
section shall include the terms specified in
subparagraphs (A) through (C) of section 1905(t)(3).
``SEC. 2207. ADMINISTRATION AND MISCELLANEOUS.
``(a) In General.--Except as otherwise provided in this title--
``(1) the Secretary shall enter into appropriate contracts
with providers of services, other health care providers,
carriers, and fiscal intermediaries, taking into account the
types of contracts used under title XVIII with respect to such
entities, to administer the program under this title;
``(2) individuals enrolled under this title shall be
treated for purposes of title XVIII as though the individual
were entitled to benefits under part A and enrolled under part
B of such title;
``(3) benefits described in section 2202 that are payable
under this title to such individuals shall be paid in a manner
specified by the Secretary (taking into account, and based to
the greatest extent practicable upon, the manner in which they
are provided under title XVIII);
``(4) provider participation agreements under title XVIII
shall apply to enrollees and benefits under this title in the
same manner as they apply to enrollees and benefits under title
XVIII; and
``(5) individuals entitled to benefits under this title may
elect to receive such benefits under health plans in a manner,
specified by the Secretary, similar to the manner provided
under part C of title XVIII.
``(b) Coordination With Medicaid and SCHIP.--Notwithstanding any
other provision of law, individuals entitled to benefits for items and
services under this title who also qualify for benefits under title XIX
or XXI or any other Federally funded program may continue to qualify
and obtain benefits under such other title or program, and in such case
such an individual shall elect either--
``(1) such other title or program to be primary payor to
benefits under this title, in which case no benefits shall be
payable under this title and the monthly premium under section
2203 shall be zero; or
``(2) benefits under this title shall be primary payor to
benefits provided under such program or title, in which case
the Secretary shall enter into agreements with States as may be
appropriate to provide that, in the case of such individuals,
the benefits under titles XIX and XXI or such other program
(including reduction of cost-sharing) are provided on a `wrap-
around' basis to the benefits under this title.''.
(b) Conforming Amendments to Social Security Act Provisions.--
(1) Section 201(i)(1) of the Social Security Act (42 U.S.C.
401(i)(1)) is amended by striking ``or the Federal
Supplementary Medical Insurance Trust Fund'' and inserting
``the Federal Supplementary Medical Insurance Trust Fund, and
the MediKids Trust Fund''.
(2) Section 201(g)(1)(A) of such Act (42 U.S.C.
401(g)(1)(A)) is amended by striking `` and the Federal
Supplementary Medical Insurance Trust Fund established by title
XVIII'' and inserting ``, the Federal Supplementary Medical
Insurance Trust Fund, and the MediKids Trust Fund established
by title XVIII''.
(3) Section 1853(c) of such Act (42 U.S.C. 1395w-23(c)) is
amended--
(A) in paragraph (1), by striking ``and (7)'' and
inserting ``, (7), and (8)'', and
(B) by adding at the end the following:
``(8) Adjustment for medikids.--In applying this subsection
with respect to individuals entitled to benefits under title
XXII, the Secretary shall provide for an appropriate adjustment
in the Medicare+Choice capitation rate as may be appropriate to
reflect differences between the population served under such
title and the population under parts A and B.''.
(c) Maintenance of Medicaid Eligibility and Benefits for
Children.--
(1) In general.--In order for a State to continue to be
eligible for payments under section 1903(a) of the Social
Security Act (42 U.S.C. 1396b(a))--
(A) the State may not reduce standards of
eligibility, or benefits, provided under its State
medicaid plan under title XIX of the Social Security
Act or under its State child health plan under title
XXI of such Act for individuals under 23 years of age
below such standards of eligibility, and benefits, in
effect on the date of the enactment of this Act; and
(B) the State shall demonstrate to the satisfaction
of the Secretary of Health and Human Services that any
savings in State expenditures under title XIX or XXI of
the Social Security Act that results from children from
enrolling under title XXII of such Act shall be used in
a manner that improves services to beneficiaries under
title XIX of such Act, such as through increases in
provider payment rates, expansion of eligibility,
improved nurse and nurse aide staffing and improved
inspections of nursing facilities, and coverage of
additional services.
(2) MediKids as primary payor.--In applying title XIX of
the Social Security Act, the MediKids program under title XXII
of such Act shall be treated as a primary payor in cases in
which the election described in section 2207(b)(2) of such Act,
as added by subsection (a), has been made.
(d) Expansion of MedPAC Membership to 19.--
(1) In general.--Section 1805(c) of the Social Security Act
(42 U.S.C. 1395b-6(c)) is amended--
(A) in paragraph (1), by striking ``17'' and
inserting ``19''; and
(B) in paragraph (2)(B), by inserting ``experts in
children's health,'' after ``other health
professionals,''.
(2) Initial terms of additional members.--
(A) In general.--For purposes of staggering the
initial terms of members of the Medicare Payment
Advisory Commission under section 1805(c)(3) of the
Social Security Act (42 U.S.C. 1395b-6(c)(3)), the
initial terms of the 2 additional members of the
Commission provided for by the amendment under
subsection (a)(1) are as follows:
(i) One member shall be appointed for 1
year.
(ii) One member shall be appointed for 2
years.
(B) Commencement of terms.--Such terms shall begin
on January 1, 2002.
SEC. 1003. MEDIKIDS PREMIUM.
(a) General Rule.--Subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to determination of tax liability) is
amended by adding at the end the following new part:
``PART VIII--MEDIKIDS PREMIUM
``Sec. 59B. MediKids premium.
``SEC. 59B. MEDIKIDS PREMIUM.
``(a) Imposition of Tax.--In the case of an individual to whom this
section applies, there is hereby imposed (in addition to any other tax
imposed by this subtitle) a MediKids premium for the taxable year.
``(b) Individuals Subject to Premium.--
``(1) In general.--This section shall apply to an
individual if the taxpayer has a MediKid at any time during the
taxable year.
``(2) MediKid.--For purposes of this section, the term
`MediKid' means, with respect to a taxpayer, any individual
with respect to whom the taxpayer is required to pay a premium
under section 2203(c) of the Social Security Act for any month
of the taxable year.
``(c) Amount of Premium.--For purposes of this section, the
MediKids premium for a taxable year is the sum of the monthly premiums
under section 2203 of the Social Security Act for months in the taxable
year.
``(d) Exceptions Based on Adjusted Gross Income.--
``(1) Exemption for very low-income taxpayers.--
``(A) In general.--No premium shall be imposed by
this section on any taxpayer having an adjusted gross
income not in excess of the exemption amount.
``(B) Exemption amount.--For purposes of this
paragraph, with respect to a family, the exemption
amount is the amount equal to 150 percent of the income
official poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable to a family of
the size involved.
``(C) Phaseout of exemption.--In the case of a
taxpayer having an adjusted gross income which exceeds
the exemption amount but does not exceed twice the
exemption amount, the premium shall be the amount which
bears the same ratio to the premium which would (but
for this subparagraph) apply to the taxpayer as such
excess bears to the exemption amount.
``(2) Premium limited to 5 percent of adjusted gross
income.--In no event shall any taxpayer be required to pay a
premium under this section in excess of an amount equal to 5
percent of the taxpayer's adjusted gross income.
``(e) Coordination With Other Provisions.--
``(1) Not treated as medical expense.--For purposes of this
chapter, any premium paid under this section shall not be
treated as expense for medical care.
``(2) Not treated as tax for certain purposes.--The premium
paid under this section shall not be treated as a tax imposed
by this chapter for purposes of determining--
``(A) the amount of any credit allowable under this
chapter, or
``(B) the amount of the minimum tax imposed by
section 55.
``(3) Treatment under subtitle f.--For purposes of subtitle
F, the premium paid under this section shall be treated as if
it were a tax imposed by section 1.''.
(b) Technical Amendments.--
(1) Subsection (a) of section 6012 of such Code is amended
by inserting after paragraph (9) the following new paragraph:
``(10) Every individual liable for a premium under section
59B.''.
(2) The table of parts for subchapter A of chapter 1 of
such Code is amended by adding at the end the following new
item:
``Part VIII. MediKids premium.''.
(c) Effective Date.--The amendments made by this section shall
apply to months beginning after December 2002, in taxable years ending
after such date.
SEC. 1004. REFUNDABLE CREDIT FOR COST-SHARING EXPENSES UNDER MEDIKIDS
PROGRAM.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 35 as section 36 and by inserting
after section 34 the following new section:
``SEC. 35. COST-SHARING EXPENSES UNDER MEDIKIDS PROGRAM.
``(a) Allowance of Credit.--In the case of an individual who has a
MediKid (as defined in section 59B) at any time during the taxable
year, there shall be allowed as a credit against the tax imposed by
this subtitle an amount equal to 50 percent of the amount paid by the
taxpayer during the taxable year as cost-sharing under section
2202(b)(4) of the Social Security Act.
``(b) Limitation Based on Adjusted Gross Income.--The amount of the
credit which would (but for this subsection) be allowed under this
section for the taxable year shall be reduced (but not below zero) by
an amount which bears the same ratio to such amount of credit as the
excess of the taxpayer's adjusted gross income for such taxable year
over the exemption amount (as defined in section 59B(d)) bears to such
exemption amount.''.
(b) Technical Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``or
from section 35 of such Code''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by striking
the last item and inserting the following new items:
``Sec. 35. Cost-sharing expenses under
MediKids program.
``Sec. 36. Overpayments of tax.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.
SEC. 1005. REPORT ON LONG-TERM REVENUES.
Within 1 year after the date of enactment of this title, the
Secretary of the Treasury shall propose a gradual schedule of
progressive tax changes to fund the program under title XXII of the
Social Security Act, as the number of enrollees grows in the out-years.
Subtitle B--Children's Health Insurance Eligibility Expansion and
Enrollment Improvements
CHAPTER 1--ELIGIBILITY EXPANSIONS
Subchapter A--Medicaid and SCHIP
SEC. 1101. EXPANSION OF CHILDREN'S ELIGIBILITY FOR MEDICAID AND SCHIP.
(a) Expansion of Income Eligibility Under SCHIP.--Section
2110(c)(4) of the Social Security Act (42 U.S.C. 42 U.S.C.
1397jj(c)(4)) is amended by striking ``200'' and inserting ``300''.
(b) Mandatory Buy-In Coverage.--
(1) Medicaid.--Section 1902(a)(10)(A)(i) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)(i)) is amended--
(A) by striking ``or'' at the end of subclause
(VI);
(B) by striking the semicolon at the end of
subclause (VII) and insert ``, or''; and
(C) by adding at the end the following:
``(VIII) who are children in
families whose income exceeds 300
percent of the income official poverty
line (as defined by the Office of
Management and Budget, and revised
annually in accordance with section
673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable
to a family of the size involved
subject, notwithstanding section 1916,
to payment of premiums or other cost-
sharing charges (set on a sliding scale
based on income) that the State may
determine;''.
(2) SCHIP.--Section 2107(e)(1) of such Act (42 U.S.C.
1397gg(e)(1)) is amended by adding at the end the following new
subparagraph:
``(E) Section 1902(a)(10)(A)(i)(VIII) (relating to
buy-in coverage for children whose family income
exceeds 300 percent of the poverty line).''.
(c) Effective Date.--The amendments made by this section apply to
medical assistance and child health assistance provided on or after
October 1, 2001.
SEC. 1102. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE MEDICAID
PROGRAM AND TITLE XXI.
(a) Medicaid Program.--Section 1903(v) of the Social Security Act
(42 U.S.C. 1396b(v)) is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (4)''; and
(2) by adding at the end the following:
``(4)(A) A State may elect (in a plan amendment under this title)
to provide medical assistance under this title for aliens who are
lawfully residing in the United States (including battered aliens
described in section 431(c) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996) and who are otherwise eligible
for such assistance, within any of the following eligibility
categories:
``(i) Pregnant women.--Women during pregnancy (and during
the 60-day period beginning on the last day of the pregnancy).
``(ii) Children.--Children (as defined under such plan),
including optional targeted low-income children described in
section 1905(u)(2)(B).
``(B)(i) In the case of a State that has elected to provide medical
assistance to a category of aliens under subparagraph (A), no debt
shall accrue under an affidavit of support against any sponsor of such
an alien on the basis of provision of assistance to such category and
the cost of such assistance shall not be considered as an unreimbursed
cost.
``(ii) The provisions of sections 401(a), 402(b), 403, and 421 of
the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 shall not apply to a State that makes an election under
subparagraph (A).''.
(b) Title XXI.--Section 2107(e)(1) of the Social Security Act (42
U.S.C. 1397gg(e)(1)), as amended by section 803 of the Medicare,
Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 (as
enacted into law by section 1(a)(6) of Public Law 106-554), is amended
by adding at the end the following:
``(E) Section 1903(v)(4) (relating to optional
coverage of permanent resident alien children), but
only if the State has elected to apply such section to
that category of children under title XIX.''.
(c) Effective Date.--The amendments made by this section take
effect on October 1, 2001, and apply to medical assistance and child
health assistance furnished on or after such date.
Subchapter B--Family Opportunity Act
SEC. 1111. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT.
(a) Short Title.--This subchapter may be cited as the ``Family
Opportunity Act of 2001'' or the ``Dylan Lee James Act''.
(b) Amendments to Social Security Act.--Except as otherwise
specifically provided, whenever in this Act an amendment is expressed
in terms of an amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that section or other
provision of the Social Security Act.
SEC. 1112. OPPORTUNITY FOR FAMILIES OF DISABLED CHILDREN TO PURCHASE
MEDICAID COVERAGE FOR SUCH CHILDREN.
(a) State Option To Allow Families of Disabled Children To Purchase
Medicaid Coverage for Such Children.--
(1) In general.--Section 1902 (42 U.S.C. 1396a), as amended
by section 2(a) of the Breast and Cervical Cancer Prevention
and Treatment Act of 2000 (Public Law 106-354; 114 Stat. 1381)
and section 702(b) of the Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act of 2000 (as enacted
into law by section 1(a)(6) of Public Law 106-554), is
amended--
(A) in subsection (a)(10)(A)(ii)--
(i) by striking ``or'' at the end of
subclause (XVII);
(ii) by adding ``or'' at the end of
subclause (XVIII); and
(iii) by adding at the end the following
new subclause:
``(XIX) who are disabled children
described in subsection (cc)(1);''; and
(B) by adding at the end the following new
subsection:
``(cc)(1) Individuals described in this paragraph are individuals--
``(A) who have not attained 18 years of age;
``(B) who would be considered disabled under section
1614(a)(3)(C) (determined without regard to the reference to
age in that section) but for having earnings or deemed income
or resources (as determined under title XVI for children) that
exceed the requirements for receipt of supplemental security
income benefits; and
``(C) whose family income does not exceed such income level
as the State establishes and does not exceed--
``(i) 300 percent of the income official poverty
line (as defined by the Office of Management and
Budget, and revised annually in accordance with section
673(2) of the Omnibus Budget Reconciliation Act of
1981) applicable to a family of the size involved; or
``(ii) such higher percent of such poverty line as
a State may establish, except that no Federal financial
participation shall be provided under section 1903(a)
for any medical assistance provided to an individual
who would not be described in this subsection but for
this clause.''.
(2) Interaction with employer-sponsored family coverage.--
Section 1902(cc) (42 U.S.C. 1396a(cc)), as added by paragraph
(1), is amended by adding at the end the following new
paragraph:
``(2)(A) If an employer of a parent of an individual described in
paragraph (1) offers family coverage under a group health plan (as
defined in section 2791(a) of the Public Health Service Act), the State
may--
``(i) require such parent to apply for, enroll in, and pay
premiums for, such coverage as a condition of such parent's
child being or remaining eligible for medical assistance under
subsection (a)(10)(A)(ii)(XIX) if the parent is determined
eligible for such coverage and the employer contributes at
least 50 percent of the total cost of annual premiums for such
coverage; and
``(ii) if such coverage is obtained--
``(I) subject to paragraph (2) of section 1916(h),
reduce the premium imposed by the State under that
section (if any) in an amount that reasonably reflects
the premium contribution made by the parent for private
coverage on behalf of a child with a disability; and
``(II) treat such coverage as a third party
liability under subsection (a)(25).
``(B) In the case of a parent to which subparagraph (A) applies, if
the family income of such parent does not exceed 300 percent of the
income official poverty line (referred to in paragraph (1)(C)(i)), a
State may provide for payment of any portion of the annual premium for
such family coverage that the parent is required to pay. Any payments
made by the State under this subparagraph shall be considered, for
purposes of section 1903(a), to be payments for medical assistance.''.
(b) State Option To Impose Income-Related Premiums.--Section 1916
(42 U.S.C. 1396o) is amended--
(1) in subsection (a), by striking ``subsection (g)'' and
inserting ``subsections (g) and (h)''; and
(2) by adding at the end the following new subsection:
``(h)(1) With respect to disabled children provided medical
assistance under section 1902(a)(10)(A)(ii)(XIX), subject to paragraph
(2), a State may (in a uniform manner for such children) require the
families of such children to pay monthly premiums set on a sliding
scale based on family income.
``(2) A premium requirement imposed under paragraph (1) may only
apply to the extent that--
``(A) the aggregate amount of such premium and any premium
that the parent is required to pay for family coverage under
section 1902(cc)(2)(A)(i) does not exceed 5 percent of the
family's income; and
``(B) the requirement is imposed consistent with section
1902(cc)(2)(A)(ii)(I).
``(3) A State shall not require prepayment of a premium imposed
pursuant to paragraph (1) and shall not terminate eligibility of a
child under section 1902(a)(10)(A)(ii)(XIX) for medical assistance
under this title on the basis of failure to pay any such premium until
such failure continues for a period of not less than 60 days from the
date on which the premium became past due. The State may waive payment
of any such premium in any case where the State determines that
requiring such payment would create an undue hardship.''.
(c) Conforming Amendment.--Section 1903(f)(4) (42 U.S.C.
1396b(f)(4)), as amended by section 710(a) of the Medicare, Medicaid,
and SCHIP Benefits Improvement and Protection Act of 2000 (as enacted
into law by section 1(a)(6) of Public Law 106-554), is amended in the
matter preceding subparagraph (A) by inserting
``1902(a)(10)(A)(ii)(XIX),'' after ``1902(a)(10)(A) (ii)(XVIII),''.
(d) Technical Amendments.--
(1) Section 1902 (42 U.S.C. 1396a), as amended by section
702(b) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as enacted into law by
section 1(a)(6) of Public Law 106-554), is amended by
redesignating the subsection (aa) added by such section as
subsection (bb).
(2) Section 1902(a)(15) (42 U.S.C. 1396a(a)(15)), as added
by section 702(a)(2) of the Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act of 2000 (as so enacted
into law), is amended by striking ``subsection (aa)'' and
inserting ``subsection (bb)''.
(3) Section 1915(b) (42 U.S.C. 1396n(b)), as amended by
section 702(c)(2) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as so enacted into
law), is amended by striking ``1902(aa)'' and inserting
``1902(bb)''.
(e) Effective Date.--
(1) In general.--The amendments made by subsections (a),
(b), and (c) shall apply to medical assistance for items and
services furnished on or after January 1, 2002.
(2) Technical amendments.--The amendments made by
subsection (d) shall take effect as if included in the
enactment of section 702 of the Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act of 2000 (as enacted
into law by section 1(a)(6) of Public Law 106-554).
SEC. 1113. TREATMENT OF INPATIENT PSYCHIATRIC HOSPITAL SERVICES FOR
INDIVIDUALS UNDER AGE 21 IN HOME OR COMMUNITY-BASED
SERVICES WAIVERS.
(a) In General.--Section 1915(c) (42 U.S.C. 1396n(c)) is amended--
(1) in paragraph (1)--
(A) in the first sentence, by inserting ``, or
inpatient psychiatric hospital services for individuals
under age 21,'' after ``intermediate care facility for
the mentally retarded''; and
(B) in the second sentence, by inserting ``, or
inpatient psychiatric hospital services for individuals
under age 21'' before the period;
(2) in paragraph (2)(B), by striking ``or services in an
intermediate care facility for the mentally retarded'' each
place it appears and inserting ``, services in an intermediate
care facility for the mentally retarded, or inpatient
psychiatric hospital services for individuals under age 21'';
(3) by striking paragraph (2)(C) and inserting the
following:
``(C) such individuals who are determined to be likely to
require the level of care provided in a hospital, nursing
facility, or intermediate care facility for the mentally
retarded, or inpatient psychiatric hospital services for
individuals under age 21, are informed of the feasible
alternatives, if available under the waiver, at the choice of
such individuals, to the provision of inpatient hospital
services, nursing facility services, services in an
intermediate care facility for the mentally retarded, or
inpatient psychiatric hospital services for individuals under
age 21;''; and
(4) in paragraph (7)(A)--
(A) by inserting ``, or inpatient psychiatric
hospital services for individuals under age 21,'' after
``intermediate care facility for the mentally
retarded''; and
(B) by inserting ``, or who would require inpatient
psychiatric hospital services for individuals under age
21'' before the period.
(b) Effective Date.--The amendments made by subsection (a) apply
with respect to medical assistance provided on or after January 1,
2001.
SEC. 1114. DEMONSTRATION OF COVERAGE UNDER THE MEDICAID PROGRAM OF
CHILDREN WITH POTENTIALLY SEVERE DISABILITIES.
(a) State Application.--A State may apply to the Secretary of
Health and Human Services (in this section referred to as the
``Secretary'') for approval of a demonstration project (in this section
referred to as a ``demonstration project'') under which up to a
specified maximum number of children with a potentially severe
disability (as defined in subsection (b)) are provided medical
assistance under the State medicaid plan under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).
(b) Child With a Potentially Severe Disability Defined.--
(1) In general.--In this section, the term ``child with a
potentially severe disability'' means, with respect to a
demonstration project, an individual who--
(A) has not attained 21 years of age;
(B) has a physical or mental condition, disease,
disorder (including a congenital birth defect or a
metabolic condition), injury, or developmental
disability that was incurred before the individual
attained such age; and
(C) is reasonably expected, but for the receipt of
medical assistance under the State medicaid plan, to
reach the level of disability defined under section
1614(a)(3) of the Social Security Act (42 U.S.C.
1382c(a)(3)), (determined without regard to the
reference to age in subparagraph (C) of that section).
(2) Exception.--Such term does not include an individual
who would be considered disabled under section 1614(a)(3)(C) of
the Social Security Act (42 U.S.C. 1382c(a)(3)(C)) (determined
without regard to the reference to age in that section).
(c) Approval of Demonstration Projects.--
(1) In general.--Subject to paragraph (3), the Secretary
shall approve applications under subsection (a) that meet the
requirements of paragraph (2) and such additional terms and
conditions as the Secretary may require. The Secretary may
waive the requirement of section 1902(a)(1) of the Social
Security Act (42 U.S.C. 1396a(a)(1)) to allow for sub-State
demonstrations.
(2) Terms and conditions of demonstration projects.--The
Secretary may not approve a demonstration project under this
section unless the State provides assurances satisfactory to
the Secretary that the following conditions are or will be met:
(A) Independent evaluation.--The State provides for
an independent evaluation of the project to be
conducted during fiscal year 2006.
(B) Consultation for development of criteria.--The
State consults with appropriate pediatric health
professionals in establishing the criteria for
determining whether a child has a potentially severe
disability.
(C) Annual report.--The State submits an annual
report to the Secretary (in a uniform form and manner
established by the Secretary) on the use of funds
provided under the grant that includes the following:
(i) Enrollment and financial statistics
on--
(I) the total number of children
with a potentially severe disability
enrolled in the demonstration project,
disaggregated by disability;
(II) the services provided by
category or code and the cost of each
service so categorized or coded; and
(III) the number of children
enrolled in the demonstration project
who also receive services through
private insurance.
(ii) With respect to the report submitted
for fiscal year 2006, the results of the
independent evaluation conducted under
subparagraph (A).
(iii) Such additional information as the
Secretary may require.
(3) Limitations on federal funding.--
(A) Appropriation.--
(i) In general.--Out of any funds in the
Treasury not otherwise appropriated, there is
appropriated to carry out this section--
(I) $16,666,000 for each of fiscal
years 2002 and 2003; and
(II) $16,667,000 for each of fiscal
years 2004 through 2007.
(ii) Budget authority.--Clause (i)
constitutes budget authority in advance of
appropriations Acts and represents the
obligation of the Federal Government to provide
for the payment of the amounts appropriated
under clause (i).
(B) Limitation on payments.--In no case may--
(i) the aggregate amount of payments made
by the Secretary to States under this section
exceed $100,000,000;
(ii) the aggregate amount of payments made
by the Secretary to States for administrative
expenses relating to the evaluations and annual
reports required under subparagraphs (A) and
(C) of paragraph (2) exceed $2,000,000 of such
$100,000,000; or
(iii) payments be provided by the Secretary
for a fiscal year after fiscal year 2010.
(C) Funds allocated to states.--
(i) In general.--The Secretary shall
allocate funds to States based on their
applications and the availability of funds. In
making such allocations, the Secretary shall
ensure an equitable distribution of funds among
States with large populations and States with
small populations.
(ii) Availability.--Funds allocated to a
State under a grant made under this section for
a fiscal year shall remain available until
expended.
(D) Funds not allocated to states.--Funds not
allocated to States in the fiscal year for which they
are appropriated shall remain available in succeeding
fiscal years for allocation by the Secretary using the
allocation formula established under this section.
(E) Payments to states.--The Secretary shall pay to
each State with a demonstration project approved under
this section, from its allocation under subparagraph
(C), an amount for each quarter equal to the Federal
medical assistance percentage (as defined in section
1905(b) of the Social Security Act (42 U.S.C.
1395d(b))) of expenditures in the quarter for medical
assistance provided to children with a potentially
severe disability.
(d) Recommendation.--Not later than October 1, 2005, the Secretary
shall submit a recommendation to the Committee on Commerce of the House
of Representatives and the Committee on Finance of the Senate regarding
whether the demonstration project established under this section should
be continued after fiscal year 2007.
(e) State Defined.--In this section, the term ``State'' has the
meaning given such term for purposes of title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).
SEC. 1115. DEVELOPMENT AND SUPPORT OF FAMILY-TO-FAMILY HEALTH
INFORMATION CENTERS.
Section 501 (42 U.S.C. 701) is amended by adding at the end the
following new subsection:
``(c)(1) In addition to amounts appropriated under subsection (a)
and retained under section 502(a)(1) for the purpose of carrying out
activities described in subsection (a)(2), there is appropriated to the
Secretary, out of any money in the Treasury not otherwise appropriated,
for the purpose of enabling the Secretary (through grants, contracts,
or otherwise) to provide for special projects of regional and national
significance for the development and support of family-to-family health
information centers described in paragraph (2), $10,000,000 for each of
fiscal years 2002 through 2007. Funds appropriated under this paragraph
shall remain available until expended.
``(2) The family-to-family health information centers described in
this paragraph are centers that--
``(A) assist families of children with disabilities or
special health care needs to make informed choices about health
care in order to promote good treatment decisions, cost-
effectiveness, and improved health outcomes for such children;
``(B) provide information regarding the health care needs
of, and resources available for, children with disabilities or
special health care needs;
``(C) identify successful health delivery models for such
children;
``(D) develop with representatives of health care
providers, managed care organizations, health care purchasers,
and appropriate State agencies a model for collaboration
between families of such children and health professionals;
``(E) provide training and guidance regarding caring for
such children;
``(F) conduct outreach activities to the families of such
children, health professionals, schools, and other appropriate
entities and individuals; and
``(G) are staffed by families of children with disabilities
or special health care needs who have expertise in Federal and
State public and private health care systems and health
professionals.
``(3) The provisions of this title that are applicable to the funds
made available to the Secretary under section 502(a)(1) apply in the
same manner to funds made available to the Secretary under paragraph
(1).''.
SEC. 1116. RESTORATION OF MEDICAID ELIGIBILITY FOR CERTAIN SSI
BENEFICIARIES.
(a) In General.--Section 1902(a)(10)(A)(i)(II) (42 U.S.C.
1396a(a)(10)(A)(i)(II)) is amended--
(1) by inserting ``(aa)'' after ``(II)'';
(2) by striking ``or who are'' and inserting ``, (bb) who
are''; and
(3) by inserting before the comma at the end the following:
``, or (cc) who are under 21 years of age and with respect to
whom supplemental security income benefits would be paid under
title XVI if subparagraphs (A) and (B) of section 1611(c)(7)
were applied without regard to the phrase `the first day of the
month following'''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to medical assistance for items and services furnished on or
after the first day of the first calendar quarter that begins after the
date of enactment of this Act.
CHAPTER 2--ENROLLMENT IMPROVEMENTS
SEC. 1121. APPLICATION OF SIMPLIFIED TITLE XXI PROCEDURES UNDER THE
MEDICAID PROGRAM.
(a) Application Under Medicaid.--
(1) In general.--Section 1902(l) of the Social Security Act
(42 U.S.C. 1396a(l)) is amended--
(A) in paragraph (3), by inserting ``subject to
paragraph (5)'', after ``Notwithstanding subsection
(a)(17),''; and
(B) by adding at the end the following:
``(5) With respect to determining the eligibility of individuals
under 19 years of age (or such higher age as the State has elected
under paragraph (1)(D)) for medical assistance under subsection
(a)(10)(A) notwithstanding any other provision of this title, if the
State has established a State child health plan under title XXI--
``(A) the State may not apply a resource standard;
``(B) the State shall use the same simplified eligibility
form (that in no case shall be more than 4 pages and that
permits application other than in person) as the State uses
under such State child health plan with respect to such
individuals;
``(C) the State shall provide for initial eligibility
determinations and redeterminations of eligibility using the
same verification policies, forms, and frequency as the State
uses for such purposes under such State child health plan with
respect to such individuals;
``(D) the State shall not require a face-to-face interview
for purposes of initial eligibility determinations and
redeterminations and shall allow for self-declaration of
initial eligibility and recertification information; and
``(E) the State shall coordinate the enrollment of children
under this title and title XXI with the enrollment of such
children and their families in other Federal means-tested
public assistance programs, including child care programs, free
or reduced price lunches or breakfasts under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.),
assistance under the special supplemental nutrition program for
women, infants, and children (WIC) under section 17 of the
Child Nutrition Act of 1966 (42 U.S.C. 1786), and benefits
under the Food Stamp Act of 1977.''.
(2) Effective date.--The amendments made by paragraph (1)
apply to determinations of eligibility made on or after the
date that is 1 year after the date of the enactment of this
Act, whether or not regulations implementing such amendments
have been issued.
(3) Development of uniform application.--Not later than 1
year after the date of enactment of this Act, the Secretary of
Health and Human Services, in consultation with States and
organizations with expertise in outreach to, and enrollment of,
children without health insurance, shall develop a uniform
application that meets the requirements of section 1902(l)(5)
of the Social Security Act, as added by paragraph (1), and may
be used in any State.
(b) Presumptive Eligibility.--
(1) In general.--Section 1920A(b)(3)(A)(i) of the Social
Security Act (42 U.S.C. 1396r-1a(b)(3)(A)(i)), as amended by
section 708(a) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as enacted into law by
section 1(a)(6) of Public Law 106-554), is amended by inserting
``a child care resource and referral agency,'' after ``a State
or tribal child support enforcement agency,''.
(2) Application to presumptive eligibility for pregnant
women under medicaid.--Section 1920(b) of the Social Security
Act (42 U.S.C. 1396r-1(b)) is amended by adding at the end
after and below paragraph (2) the following flush sentence:
``The term `qualified provider' includes a qualified entity as defined
in section 1920A(b)(3).''.
(3) Application under title xxi.--
(A) In general.--Section 2107(e)(1)(D) of the
Social Security Act (42 U.S.C. 1397gg(e)(1)), as added
by section 803 of the Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act of 2000 (as
enacted into law by section 1(a)(6) of Public Law 106-
554), is amended to read as follows:
``(D) Sections 1920 and 1920A (relating to
presumptive eligibility).''.
(B) Exception from limitation on administrative
expenses.--Section 2105(c)(2) of such Act (42 U.S.C.
1397ee(c)(2)) is amended by adding at the end the
following:
``(C) Exception for presumptive eligibility
expenditures.--The limitation under subparagraph (A) on
expenditures shall not apply to expenditures
attributable to the application of section 1920 or
1920A (pursuant to section 2107(e)(1)(D)), regardless
of whether the child is determined to be ineligible for
the program under this title or title XIX.''.
(C) Conforming elimination of resource test.--
Section 2102(b)(1)(A) of such Act (42 U.S.C.
1397bb(b)(1)(A)) is amended--
(i) by striking ``and resources (including
any standards relating to spenddowns and
disposition of resources)''; and
(ii) by adding at the end the following:
``Effective 1 year after the date of the
enactment of the Leave No Child Behind Act of
2001, such standards may not include the
application of a resource standard or test.''.
(c) Automatic Reassessment of Eligibility for Title XXI and
Medicaid Benefits for Children Losing Medicaid or Title XXI
Eligibility.--
(1) Loss of medicaid eligibility.--Section 1902(a) of the
Social Security Act (42 U.S.C. 1396a(a)) is amended--
(A) by striking the period at the end of paragraph
(65) and inserting ``; and''; and
(B) by inserting after paragraph (65) the
following:
``(66) provide, in the case of a State with a State child
health plan under title XXI, that before medical assistance to
a child (or a parent of a child) is discontinued under this
title, a determination of whether the child (or parent) is
eligible for benefits under title XXI shall be made and, if
determined to be so eligible, the child (or parent) shall be
automatically enrolled in the program under such title without
the need for a new application.''.
(2) Loss of title xxi eligibility.--Section 2102(b)(3) (42
U.S.C. 1397bb(b)(3)) is amended by redesignating subparagraphs
(D) and (E) as subparagraphs (E) and (F), respectively, and by
inserting after subparagraph (C) the following:
``(D) that before health assistance to a child (or
a parent of a child) is discontinued under this title,
a determination of whether the child (or parent) is
eligible for benefits under title XIX is made and, if
determined to be so eligible, the child (or parent) is
automatically enrolled in the program under such title
without the need for a new application;''.
(3) Effective date.--The amendments made by paragraphs (1)
and (2) apply to individuals who lose eligibility under the
medicaid program under title XIX, or under a State child health
insurance plan under title XXI, respectively, of the Social
Security Act on or after the date that is 60 days after the
date of the enactment of this Act.
(d) Provision of Medicaid and SCHIP Applications and Information
Under the School Lunch Program.--Section 9(b)(2)(B) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(B)) is
amended--
(1) by striking ``(B) Applications'' and inserting ``(B)(i)
Applications''; and
(2) by adding at the end the following:
``(ii)(I) Applications for free and reduced price lunches that are
distributed pursuant to clause (i) to parents or guardians of children
in attendance at schools participating in the school lunch program
under this Act shall also contain information on the availability of
medical assistance under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) (commonly referred to as the `medicaid program')
and of child health assistance under title XXI of such Act (commonly
referred to as `SCHIP'), including information on how to obtain an
application for assistance under such program.
``(II) Information on the medicaid program and SCHIP under
subclause (I) shall be provided on a form separate from the application
form for free and reduced price lunches under clause (i).''.
(e) 12-Months Continuous Eligibility.--
(1) Medicaid.--Section 1902(e)(12) of the Social Security
Act (42 U.S.C. 1396a(e)(12)) is amended--
(A) by striking ``At the option of the State, the
plan may'' and inserting ``The plan shall'';
(B) by striking ``an age specified by the State
(not to exceed 19 years of age)'' and inserting ``19
years of age (or such higher age as the State has
elected under subsection (l)(1)(D)) or who is eligible
for medical assistance as the parent of such a child'';
(C) in subparagraph (A), by striking ``a period
(not to exceed 12 months)'' and inserting ``the 12-
month period beginning on the date''; and
(D) in subparagraph (B), by inserting ``or, in the
case of a parent of a child, the child)'' after ``the
individual''.
(2) Title XXI.--Section 2101(b)(2) of such Act (42 U.S.C.
1397aa(b)(2)) is amended by adding at the end the following:
``Such methods shall provide 12-months continuous eligibility
for children and parents under this title in the same manner as
section 1902(e)(12) provides 12-months continuous eligibility
for individuals described in such section under title XIX.''.
SEC. 1122. AUTOMATIC ENROLLMENT OF CHILDREN BORN TO TITLE XXI PARENTS.
Section 2102(b)(1) of the Social Security Act (42 U.S.C.
1397bb(b)(1)) is amended by adding at the end the following new
subparagraph:
``(C) Automatic eligibility of children born to a
parent being provided familycare.--Such eligibility
standards shall provide for automatic coverage of a
child born to an individual who is provided assistance
under this title in the same manner as medical
assistance would be provided under section 1902(e)(4)
to a child described in such section.''.
CHAPTER 3--EFFECTIVE DATE
SEC. 1131. EFFECTIVE DATE.
(a) In General.--Subject to subsection (b), the amendments made by
this subtitle take effect on the date of enactment of this Act.
(b) Extension of Effective Date for State Law Amendment.--In the
case of a State plan under title XIX or XXI of the Social Security Act
which the Secretary of Health and Human Services determines requires
State legislation in order for the plan to meet the additional
requirements imposed by the amendments made by this subtitle, such
State plan shall not be regarded as failing to comply with such
requirements solely on the basis of its failure to meet the additional
requirements before the first day of the first calendar quarter
beginning after the close of the first regular session of the State
legislature that begins after the date of enactment of this Act. For
purposes of the previous sentence, in the case of a State that has a 2-
year legislative session, each year of the session is considered to be
a separate regular session of the State legislature.
Subtitle C--Improving Access to Care
CHAPTER 1--COMMISSION
SEC. 1201. COMMISSION ON CHILDREN'S ACCESS TO CARE.
(a) Establishment.--There is established a Commission on Children's
Access to Care (in this section referred to as the ``Commission'').
(b) Membership.--
(1) Composition.--The Commission shall be composed of 11
members of whom--
(A) 3 members shall be appointed by the President;
(B) 2 members shall be appointed by the Majority
Leader of the Senate;
(C) 2 members shall be appointed by the Speaker of
the House of Representatives;
(D) 2 members shall be appointed by the Minority
Leader of the Senate; and
(E) 2 members shall be appointed by the Minority
Leader of the House of Representatives.
(2) Qualifications.--Members of the Commission shall be
appointed from among representatives of children's advocacy
groups and children's health care providers.
(3) Timing of appointments.--Members of the Commission
shall be appointed not later than 6 months after the date of
enactment of this Act.
(4) Chair.--
(A) In general.--The Commission shall select a
Chair from among its members.
(B) Duties.--The Chair of the Commission shall be
responsible for--
(i) the assignment of duties and
responsibilities among staff personnel and
their continuing supervision; and
(ii) the use and expenditure of funds
available to the Commission.
(5) Vacancies.--Any vacancy on the Commission shall be
filled in the same manner as the original incumbent was
appointed.
(6) Travel expenses.--The members of the Commission shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the Commission.
(c) Meetings.--
(1) Initial meeting.--Not later than 30 days after the date
on which all members of the Commission have been appointed, the
Commission shall hold its first meeting.
(2) Time.--The Commission shall meet at the call of the
Chair.
(3) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
(d) Duties.--
(1) In general.--The Commission shall conduct annual
studies of children's access to health care.
(2) Matters studied.--Each year the Commission shall
study--
(A) the impact of payment rates under the medicaid
and the State children's health insurance programs on
access to health care and provider participation in the
delivery of health care to children;
(B) the access to health care of children with
special health care needs, particularly those in
managed care delivery systems;
(C) the access to, and delivery of, preventive
health care to children;
(D) Federal and State government efforts to collect
data, report, evaluate, and monitor children's access
to health care, including Federal and State government
deficiencies in assessing children's access to health
care;
(E) the needs for supplemental and enabling
services to improve children's access to health care,
including translation and transportation services; and
(F) other factors that impact the ability of
families with children to gain access to health care
services.
(3) Reports.--
(A) In general.--Not later than 1 year after the
date of the initial meeting of the Commission, and
annually thereafter, the Commission shall submit to
Congress and the President a report.
(B) Contents.--Each report shall contain the
results of the study conducted for that year and the
Commission's recommendations to improve children's--
(i) health status; and
(ii) access to health care.
(e) Powers of the Commission.--
(1) Hearings.--The Commission may hold hearings, sit and
act at times and places, take testimony, and receive evidence
as the Commission considers advisable to carry out this
section.
(2) Information from federal agencies.--The Commission may
secure directly from any Federal department or agency such
information as the Commission considers necessary to carry out
this section. Upon request of the Chair of the Commission, the
head of such department or agency shall furnish such
information to the Commission.
(3) Postal services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Federal Government.
(4) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property.
(f) Staff and Administrative Support.--
(1) In general.--The Chair of the Commission may, without
regard to the civil service laws and regulations, appoint and
terminate an executive director and such other additional
personnel as may be necessary to enable the Commission to
perform its duties. The employment of an executive director
shall be subject to confirmation by the Commission.
(2) Compensation.--The Chair of the Commission may fix the
compensation of the executive director and other personnel
without regard to chapter 51 and subchapter III of chapter 53
of title 5, United States Code, relating to classification of
positions and General Schedule pay rates, except that the rate
of pay for the executive director and other personnel may not
exceed the rate payable for level V of the Executive Schedule
under section 5316 of title 5, United States Code.
(3) Detail of government employees.--Any Federal Government
employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege.
(4) Procurement of temporary and intermittent services.--
The Chair of the Commission may procure temporary and
intermittent services under section 3109(b) of title 5, United
States Code, at rates for individuals which do not exceed the
daily equivalent of the annual rate of basic pay prescribed for
level V of the Executive Schedule under section 5316 of title
5, United States Code.
CHAPTER 2--CHILDREN'S HEALTH INSURANCE ACCOUNTABILITY
SEC. 1211. SHORT TITLE.
This chapter may be cited as the ``Children's Health Insurance
Accountability Act of 2001''.
SEC. 1212. FINDINGS.
Congress makes the following findings:
(1) Children have health and development needs that are
markedly different than those for the adult population.
(2) Children experience complex and continuing changes
during the continuum from birth to adulthood in which
appropriate health care is essential for optimal development.
(3) The vast majority of work done on development methods
to assess the effectiveness of health care services and the
impact of medical care on patient outcomes and patient
satisfaction has been focused on adults.
(4) Health outcome measures need to be age, gender, and
developmentally appropriate to be useful to families and
children.
(5) Costly disorders of adulthood often have their origins
in childhood, making early access to effective health services
in childhood essential.
(6) More than 200 chronic conditions, disabilities and
diseases affect children, including asthma, diabetes, sickle
cell anemia, spina bifida, epilepsy, autism, cerebral palsy,
congenital heart disease, mental retardation, and cystic
fibrosis. These children need the services of specialists who
have in depth knowledge about their particular condition.
(7) Children's patterns of illness, disability and injury
differ dramatically from adults.
SEC. 1213. AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT.
(a) Patient Protection Standards.--Title XXVII of the Public Health
Service Act (42 U.S.C. 300gg et seq.) is amended--
(1) by redesignating part C as part D; and
(2) by inserting after part B the following new part:
``Part C--Children's Health Protection Standards
``SEC. 2770. ACCESS TO CARE.
``(a) Access to Appropriate Primary Care Providers.--
``(1) In general.--If a group health plan, or a health
insurance issuer in connection with the provision of health
insurance coverage, requires or provides for an enrollee to
designate a participating primary care provider for a child of
such enrollee--
``(A) the plan or issuer shall permit the enrollee
to designate a physician who specializes in pediatrics
as the child's primary care provider; and
``(B) if such an enrollee has not designated such a
provider for the child, the plan or issuer shall
consider appropriate pediatric expertise in mandatorily
assigning such an enrollee to a primary care provider.
``(2) Construction.--Nothing in paragraph (1) shall waive
any requirements of coverage relating to medical necessity or
appropriateness with respect to coverage of services.
``(b) Access to Pediatric Specialty Services.--
``(1) Referral to specialty care for children requiring
treatment by specialists.--
``(A) In general.--In the case of a child who is
covered under a group health plan, or health insurance
coverage offered by a health insurance issuer and who
has a mental or physical condition, disability, or
disease of sufficient seriousness and complexity to
require diagnosis, evaluation or treatment by a
specialist, the plan or issuer shall make or provide
for a referral to a specialist who has extensive experience or
training, and is available and accessible to provide the treatment for
such condition or disease, including the choice of a nonprimary care
physician specialist participating in the plan or a referral to a
nonparticipating provider as provided for under subparagraph (D) if
such a provider is not available within the plan.
``(B) Specialist defined.--For purposes of this
subsection, the term `specialist' means, with respect
to a condition, disability, or disease, a health care
practitioner, facility, or center (such as a center of
excellence) that has extensive pediatric expertise
through appropriate training or experience to provide
high quality care in treating the condition, disability
or disease.
``(C) Referrals to participating providers.--A plan
or issuer is not required under subparagraph (A) to
provide for a referral to a specialist that is not a
participating provider, unless the plan or issuer does
not have an appropriate specialist that is available
and accessible to treat the enrollee's condition and
that is a participating provider with respect to such
treatment.
``(D) Treatment of nonparticipating providers.--If
a plan or issuer refers a child enrollee to a
nonparticipating specialist, services provided pursuant
to the referral shall be provided at no additional cost
to the enrollee beyond what the enrollee would
otherwise pay for services received by such a
specialist that is a participating provider.
``(E) Specialists as primary care providers.--A
plan or issuer shall have in place a procedure under
which a child who is covered under health insurance
coverage provided by the plan or issuer who has a
condition or disease that requires specialized medical
care over a prolonged period of time shall receive a
referral to a pediatric specialist affiliated with the
plan, or if not available within the plan, to a
nonparticipating provider for such condition and such
specialist may be responsible for and capable of
providing and coordinating the child's primary and
specialty care.
``(2) Standing referrals.--
``(A) In general.--A group health plan, or health
insurance issuer in connection with the provision of
health insurance coverage of a child, shall have a
procedure by which a child who has a condition,
disability, or disease that requires ongoing care from
a specialist may request and obtain a standing referral
to such specialist for treatment of such condition. If
the primary care provider in consultation with the
medical director of the plan or issuer and the
specialist (if any), determines that such a standing
referral is appropriate, the plan or issuer shall
authorize such a referral to such a specialist. Such
standing referral shall be consistent with a treatment
plan.
``(B) Treatment plans.--A group health plan, or
health insurance issuer, with the participation of the
family and the health care providers of the child,
shall develop a treatment plan for a child who requires
ongoing care that covers a specified period of time
(but in no event less than a 6-month period). Services
provided for under the treatment plan shall not require
additional approvals or referrals through a gatekeeper.
``(C) Terms of referral.--The provisions of
subparagraph (C) and (D) of paragraph (1) shall apply
with respect to referrals under subparagraph (A) in the
same manner as they apply to referrals under paragraph
(1)(A).
``(c) Adequacy of Access.--For purposes of subsections (a) and (b),
a group health plan or health insurance issuer in connection with
health insurance coverage shall ensure that a sufficient number,
distribution, and variety of qualified participating health care
providers are available so as to ensure that all covered health care
services, including specialty services, are available and accessible to
all enrollees in a timely manner.
``(d) Coverage of Emergency Services.--
``(1) In general.--If a group health plan, or health
insurance coverage offered by a health insurance issuer,
provides any benefits for children with respect to emergency
services (as defined in paragraph (2)(A)), the plan or issuer
shall cover emergency services furnished under the plan or
coverage--
``(A) without the need for any prior authorization
determination;
``(B) whether or not the physician or provider
furnishing such services is a participating physician
or provider with respect to such services; and
``(C) without regard to any other term or condition
of such coverage (other than exclusion of benefits, or
an affiliation or waiting period, permitted under
section 2701).
``(2) Definitions.--In this subsection:
``(A) Emergency medical condition based on prudent
layperson standard.--The term `emergency medical
condition' means a medical condition manifesting itself
by acute symptoms of sufficient severity (including
severe pain) such that a prudent layperson, who
possesses an average knowledge of health and medicine,
could reasonably expect the absence of immediate
medical attention to result in a condition described in
clause (i), (ii), or (iii) of section 1867(e)(1)(A) of
the Social Security Act.
``(B) Emergency services.--The term `emergency
services' means--
``(i) a medical screening examination (as
required under section 1867 of the Social
Security Act) that is within the capability of
the emergency department of a hospital,
including ancillary services routinely available to the emergency
department to evaluate an emergency medical condition (as defined in
subparagraph (A)); and
``(ii) within the capabilities of the staff
and facilities available at the hospital, such
further medical examination and treatment as
are required under section 1867 of such Act to
stabilize the patient.
``(3) Reimbursement for maintenance care and post-
stabilization care.--A group health plan, and health insurance
issuer offering health insurance coverage, shall provide, in
covering services other than emergency services, for
reimbursement with respect to services which are otherwise
covered and which are provided to an enrollee other than
through the plan or issuer if the services are maintenance care
or post-stabilization care covered under the guidelines
established under section 1852(d) of the Social Security Act
(relating to promoting efficient and timely coordination of
appropriate maintenance and post-stabilization care of an
enrollee after an enrollee has been determined to be stable).
``(e) Prohibition on Financial Barriers.--A health insurance issuer
in connection with the provision of health insurance coverage may not
impose any cost sharing for pediatric specialty services provided under
such coverage to enrollee children in amounts that exceed the cost-
sharing required for other specialty care under such coverage.
``(f) Children With Special Health Care Needs.--A health insurance
issuer in connection with the provision of health insurance coverage
shall ensure that such coverage provides special consideration for the
provision of services to enrollee children with special health care
needs. Appropriate procedures shall be implemented to provide care for
children with special health care needs. The development of such
procedures shall include participation by the families of such
children.
``(g) Definitions.--In this part:
``(1) Child.--The term `child' means an individual who is
under 19 years of age.
``(2) Children with special health care needs.--The term
`children with special health care needs' means those children
who have or are at elevated risk for chronic physical,
developmental, behavioral or emotional conditions and who also
require health and related services of a type and amount not
usually required by children.
``SEC. 2771. CONTINUITY OF CARE.
``(a) In General.--If a contract between a health insurance issuer,
in connection with the provision of health insurance coverage, and a
health care provider is terminated (other than by the issuer for
failure to meet applicable quality standards or for fraud) and an
enrollee is undergoing a course of treatment from the provider at the
time of such termination, the issuer shall--
``(1) notify the enrollee of such termination, and
``(2) subject to subsection (c), permit the enrollee to
continue the course of treatment with the provider during a
transitional period (provided under subsection (b)).
``(b) Transitional Period.--
``(1) In general.--Except as provided in paragraphs (2)
through (4), the transitional period under this subsection
shall extend for at least--
``(A) 60 days from the date of the notice to the
enrollee of the provider's termination in the case of a
primary care provider, or
``(B) 120 days from such date in the case of
another provider.
``(2) Institutional care.--The transitional period under
this subsection for institutional or inpatient care from a
provider shall extend until the discharge or termination of the
period of institutionalization and shall include reasonable
follow-up care related to the institutionalization and shall
also include institutional care scheduled prior to the date of
termination of the provider status.
``(3) Pregnancy.--If--
``(A) an enrollee has entered the second trimester
of pregnancy at the time of a provider's termination of
participation, and
``(B) the provider was treating the pregnancy
before date of the termination,
the transitional period under this subsection with respect to
provider's treatment of the pregnancy shall extend through the
provision of post-partum care directly related to the delivery.
``(4) Terminal illness.--
``(A) In general.--If--
``(i) an enrollee was determined to be
terminally ill (as defined in subparagraph (B))
at the time of a provider's termination of
participation, and
``(ii) the provider was treating the
terminal illness before the date of
termination,
the transitional period under this subsection shall
extend for the remainder of the enrollee's life for
care directly related to the treatment of the terminal
illness.
``(B) Definition.--In subparagraph (A), an enrollee
is considered to be `terminally ill' if the enrollee
has a medical prognosis that the enrollee's life
expectancy is 6 months or less.
``(c) Permissible Terms and Conditions.--An issuer may condition
coverage of continued treatment by a provider under subsection (a)(2)
upon the provider agreeing to the following terms and conditions:
``(1) The provider agrees to continue to accept
reimbursement from the issuer at the rates applicable prior to
the start of the transitional period as payment in full.
``(2) The provider agrees to adhere to the issuer's quality
assurance standards and to provide to the issuer necessary
medical information related to the care provided.
``(3) The provider agrees otherwise to adhere to the
issuer's policies and procedures, including procedures
regarding referrals and obtaining prior authorization and
providing services pursuant to a treatment plan approved by the
issuer.
``SEC. 2772. CONTINUOUS QUALITY IMPROVEMENT.
``(a) In General.--A health insurance issuer that offers health
insurance coverage for children shall establish and maintain an
ongoing, internal quality assurance program that at a minimum meets the
requirements of subsection (b).
``(b) Requirements.--The internal quality assurance program of an
issuer under subsection (a) shall--
``(1) establish and measure a set of health care,
functional assessments, structure, processes and outcomes, and
quality indicators that are unique to children and based on
nationally accepted standards or guidelines of care;
``(2) maintain written protocols consistent with recognized
clinical guidelines or current consensus on the pediatric
field, to be used for purposes of internal utilization review,
with periodic updating and evaluation by pediatric specialists
to determine effectiveness in controlling utilization;
``(3) provide for peer review by health care professionals
of the structure, processes, and outcomes related to the
provision of health services, including pediatric review of
pediatric cases;
``(4) include in member satisfaction surveys, questions on
child and family satisfaction and experience of care, including
care to children with special needs;
``(5) monitor and evaluate the continuity of care with
respect to children;
``(6) include pediatric measures that are directed at
meeting the needs of at-risk children and children with chronic
conditions, disabilities and severe illnesses;
``(7) maintain written guidelines to ensure the
availability of medications appropriate to children;
``(8) use focused studies of care received by children with
certain types of chronic conditions and disabilities and
focused studies of specialized services used by children with
chronic conditions and disabilities;
``(9) monitor access to pediatric specialty services; and
``(10) monitor child health care professional satisfaction.
``(c) Utilization Review Activities.--
``(1) Compliance with requirements.--
``(A) In general.--A health insurance issuer that
offers health insurance coverage for children shall
conduct utilization review activities in connection
with the provision of such coverage only in accordance
with a utilization review program that meets at a
minimum the requirements of this subsection.
``(B) Definitions.--In this subsection:
``(i) Clinical peers.--The term `clinical
peer' means, with respect to a review, a
physician or other health care professional who
holds a non-restricted license in a State and
in the same or similar specialty as typically
manages the pediatric medical condition,
procedure, or treatment under review.
``(ii) Health care professional.--The term
`health care professional' means a physician or
other health care practitioner licensed or
certified under State law to provide health
care services and who is operating within the
scope of such licensure or certification.
``(iii) Utilization review.--The terms
`utilization review' and `utilization review
activities' mean procedures used to monitor or evaluate the clinical
necessity, appropriateness, efficacy, or efficiency of health care
services, procedures or settings for children, and includes prospective
review, concurrent review, second opinions, case management, discharge
planning, or retrospective review specific to children.
``(2) Written policies and criteria.--
``(A) Written policies.--A utilization review
program shall be conducted consistent with written
policies and procedures that govern all aspects of the
program.
``(B) Use of written criteria.--A utilization
review program shall utilize written clinical review
criteria specific to children and developed pursuant to
the program with the input of appropriate physicians,
including pediatricians, nonprimary care pediatric
specialists, and other child health professionals.
``(C) Administration by health care
professionals.--A utilization review program shall be
administered by qualified health care professionals,
including health care professionals with pediatric
expertise who shall oversee review decisions.
``(3) Use of qualified, independent personnel.--
``(A) In general.--A utilization review program
shall provide for the conduct of utilization review
activities only through personnel who are qualified
and, to the extent required, who have received
appropriate pediatric or child health training in the
conduct of such activities under the program.
``(B) Peer review of adverse clinical
determinations.--A utilization review program shall
provide that clinical peers shall evaluate the clinical
appropriateness of adverse clinical determinations and
divergent clinical options.
``SEC. 2773. APPEALS AND GRIEVANCE MECHANISMS FOR CHILDREN.
``(a) Internal Appeals Process.--A health insurance issuer in
connection with the provision of health insurance coverage for children
shall establish and maintain a system to provide for the resolution of
complaints and appeals regarding all aspects of such coverage. Such a
system shall include an expedited procedure for appeals on behalf of a
child enrollee in situations in which the time frame of a standard
appeal would jeopardize the life, health, or development of the child.
``(b) External Appeals Process.--A health insurance issuer in
connection with the provision of health insurance coverage for children
shall provide for an independent external review process that meets the
following requirements:
``(1) External appeal activities shall be conducted through
clinical peers, a physician or other health care professional
who is appropriately credentialed in pediatrics with the same
or similar specialty and typically manages the condition,
procedure, or treatment under review or appeal.
``(2) External appeal activities shall be conducted through
an entity that has sufficient pediatric expertise, including
subspecialty expertise, and staffing to conduct external appeal
activities on a timely basis.
``(3) Such a review process shall include an expedited
procedure for appeals on behalf of a child enrollee in which
the time frame of a standard appeal would jeopardize the life,
health, or development of the child.
``SEC. 2774. ACCOUNTABILITY THROUGH DISTRIBUTION OF INFORMATION.
``(a) In General.--A health insurance issuer in connection with the
provision of health insurance coverage for children shall submit to
enrollees (and prospective enrollees), and make available to the
public, in writing the health-related information described in
subsection (b).
``(b) Information.--The information to be provided under subsection
(a) shall include a report of measures of structures, processes, and
outcomes regarding each health insurance product offered to
participants and dependents in a manner that is separate for both the
adult and child enrollees, using measures that are specific to each
group.''.
(b) Application to Group Health Insurance Coverage.--
(1) In general.--Subpart 2 of part A of title XXVII of the
Public Health Service Act (42 U.S.C. 300gg-4 et seq.) is
amended by adding at the end the following new section:
``SEC. 2707. CHILDREN'S HEALTH ACCOUNTABILITY STANDARDS.
``(a) In General.--Each health insurance issuer shall comply with
children's health accountability requirement under part C with respect
to group health insurance coverage it offers.
``(b) Assuring Coordination.--The Secretary of Health and Human
Services and the Secretary of Labor shall ensure, through the execution
of an interagency memorandum of understanding between such Secretaries,
that--
``(1) regulations, rulings, and interpretations issued by
such Secretaries relating to the same matter over which such
Secretaries have responsibility under part C (and this section)
and section 714 of the Employee Retirement Income Security Act
of 1974 are administered so as to have the same effect at all
times; and
``(2) coordination of policies relating to enforcing the
same requirements through such Secretaries in order to have a
coordinated enforcement strategy that avoids duplication of
enforcement efforts and assigns priorities in enforcement.''.
(2) Conforming amendment.--Section 2792 of the Public
Health Service Act (42 U.S.C. 300gg-92) is amended by inserting
``and section 2707(b)'' after ``of 1996''.
(c) Application to Individual Health Insurance Coverage.--Part B of
title XXVII of the Public Health Service Act (42 U.S.C. 300gg-41 et
seq.) is amended by inserting after section 2752 the following new
section:
``SEC. 2753. CHILDREN'S HEALTH ACCOUNTABILITY STANDARDS.
``Each health insurance issuer shall comply with children's health
accountability requirements under part C with respect to individual
health insurance coverage it offers.''.
(d) Modification of Preemption Standards.--
(1) Group health insurance coverage.--Section 2723 of the
Public Health Service Act (42 U.S.C. 300gg-23) is amended--
(A) in subsection (a)(1), by striking ``subsection
(b)'' and inserting ``subsections (b) and (c)'';
(B) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and
(C) by inserting after subsection (b) the following
new subsection:
``(c) Special Rules in Case of Children's Health Accountability
Requirements.--Subject to subsection (a)(2), the provisions of section
2707 and part C, and part D insofar as it applies to section 2707 or
part C, shall not prevent a State from establishing requirements
relating to the subject matter of such provisions so long as such
requirements are at least as stringent on health insurance issuers as
the requirements imposed under such provisions.''.
(2) Individual health insurance coverage.--Section 2762 of
the Public Health Service Act (42 U.S.C. 300gg-62), as added by
section 605(b)(3)(B) of Public Law 104-204, is amended--
(A) in subsection (a), by striking ``subsection
(b), nothing in this part'' and inserting ``subsections
(b) and (c)'', and
(B) by adding at the end the following new
subsection:
``(c) Special Rules in Case of Children's Health Accountability
Requirements.--Subject to subsection (b), the provisions of section
2753 and part C, and part D insofar as it applies to section 2753 or
part C, shall not prevent a State from establishing requirements
relating to the subject matter of such provisions so long as such
requirements are at least as stringent on health insurance issuers as
the requirements imposed under such section.''.
SEC. 1214. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974.
(a) In General.--Subpart B of part 7 of subtitle B of title I of
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1185 et
seq.) is amended by adding at the end the following:
``SEC. 714. CHILDREN'S HEALTH ACCOUNTABILITY STANDARDS.
``(a) In General.--Subject to subsection (b), the provisions of
part C of title XXVII of the Public Health Service Act shall apply
under this subpart and part to a group health plan (and group health
insurance coverage offered in connection with a group health plan) as
if such part were incorporated in this section.
``(b) Application.--In applying subsection (a) under this subpart
and part, any reference in such part C--
``(1) to health insurance coverage is deemed to be a
reference only to group health insurance coverage offered in
connection with a group health plan and to also be a reference
to coverage under a group health plan;
``(2) to a health insurance issuer is deemed to be a
reference only to such an issuer in relation to group health
insurance coverage or, with respect to a group health plan, to
the plan;
``(3) to the Secretary is deemed to be a reference to the
Secretary of Labor;
``(4) to an applicable State authority is deemed to be a
reference to the Secretary of Labor; and
``(5) to an enrollee with respect to health insurance
coverage is deemed to include a reference to a participant or
beneficiary with respect to a group health plan.''.
(b) Modification of Preemption Standards.--Section 731 of the
Employee Retirement Income Security Act of 1974 (42 U.S.C. 1191) is
amended--
(1) in subsection (a)(1), by striking ``subsection (b)''
and inserting ``subsections (b) and (c)'';
(2) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(3) by inserting after subsection (b) the following new
subsection:
``(c) Special Rules in Case of Patient Accountability
Requirements.--Subject to subsection (a)(2), the provisions of section
714, shall not prevent a State from establishing requirements relating
to the subject matter of such provisions so long as such requirements
are at least as stringent on group health plans and health insurance
issuers in connection with group health insurance coverage as the
requirements imposed under such provisions.''.
(c) Conforming Amendments.--
(1) Section 732(a) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1185(a)) is amended by striking
``section 711'' and inserting ``sections 711 and 714''.
(2) The table of contents in section 1 of the Employee
Retirement Income Security Act of 1974 is amended by inserting
after the item relating to section 713 the following new item:
``Sec. 714. Children's health accountability standards.''.
SEC. 1215. STUDIES.
(a) By Secretary.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Health and Human Services shall
conduct a study, and prepare and submit to Congress a report,
concerning--
(1) the unique characteristics of patterns of illness,
disability, and injury in children;
(2) the development of measures of quality of care and
outcomes related to the health care of children; and
(3) the access of children to primary mental health
services and the coordination of managed behavioral health
services.
(b) By GAO.--
(1) Managed care.--Not later than 1 year after the date of
enactment of this Act, the General Accounting Office shall
conduct a study, and prepare and submit to the Committee on
Health, Education, Labor, and Pensions of the Senate and the
Committee on Energy and Commerce of the House of
Representatives a report, concerning--
(A) an assessment of the structure and performance
of non-governmental health plans, medicaid managed care
organizations, plans under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.), and the program
under title XXI of the Social Security Act (42 U.S.C.
1397aa et seq.) serving the needs of children with
special health care needs;
(B) an assessment of the structure and performance
of non-governmental plans in serving the needs of
children as compared to medicaid managed care
organizations under title XIX of the Social Security
Act (42 U.S.C. 1396 et seq.); and
(C) the emphasis that private managed care health
plans place on primary care and the control of services
as it relates to care and services provided to children
with special health care needs.
(2) Plan survey.--Not later than 1 year after the date of
enactment of this Act, the General Accounting Office shall
prepare and submit to the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on Energy
and Commerce of the House of Representatives a report that
contains a survey of health plan activities that address the
unique health needs of adolescents, including quality measures
for adolescents and innovative practice arrangement.
CHAPTER 3--EPSDT
SEC. 1221. COLLECTION OF DATA REGARDING THE DELIVERY OF EPSDT SERVICES.
Section 1902(a)(43) of the Social Security Act (42 U.S.C.
1396a(a)(43)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D)(iv), by striking the semicolon and
inserting ``, and''; and
(3) by inserting after subparagraph (D)(iv), the following
new subparagraph:
``(E) beginning with fiscal year 2003, reporting to
the Secretary (in a uniform form and manner established
by the Secretary that does not identify individual
patients and that allows for the comparison of data
within and among States) the following information
relating to early and periodic screening, diagnostic,
and treatment services provided to each child enrolled
under the plan during each fiscal year:
``(i) as of the date of enrollment of the
child, the child's--
``(I) age, State of residence,
gender, and race/ethnicity,
``(II) the basis for eligibility
for medical assistance,
``(III) immunization history,
``(IV) blood-lead level,
``(V) weight and height percentile
compared to the widely accepted
standard percentiles for the child's
age,
``(VI) general health and any
chronic conditions or disabilities, and
``(VII) the primary service
delivery arrangement (such as fee-for-
service, managed care, preferred
provider organization, or other
provider practice arrangement); and
``(ii) throughout the fiscal year (at such
intervals as the Secretary shall specify)--
``(I) the number of medical
screenings the child received and a
specific description of the services
performed as part of such screenings
(such as the weighing and measuring of
the child and the administering of a
blood-lead level test),
``(II) the number of screenings the
child received for vision and hearing
problems,
``(III) the number of dental
screenings the child received,
``(IV) information regarding
whether a condition was discovered from
any of such screenings, whether the
child was referred for, and received,
further treatment, and if so, the
number of visits, and the treatments
received, and
``(V) the actual or estimated costs
of each of such screenings and
treatments,
``(VI) information regarding
whether such screenings and treatments
are more comprehensive than similar
screenings and treatments provided to adult individuals enrolled in the
plan, and
``(VII) the service delivery
arrangement for such screening and
treatment provided;''.
Subtitle D--Reducing Public Health Risks
CHAPTER 1--ASTHMA TREATMENTS
SEC. 1301. FINDINGS.
Congress finds that--
(1)(A) asthma is 1 of the most common and deadly diseases
in the United States, affecting an estimated 14,000,000 to
15,000,000 individuals in the United States, including almost
5,000,000 children;
(B) asthma is the most common chronic illness in children,
affecting an estimated 7 percent of children in the United
States;
(C) although asthma can occur at any age, about 80 percent
of the children who develop asthma do so before starting
school;
(D) asthma is the single greatest cause of school
absenteeism, with 10,100,000 days missed from school per year
in the United States; and
(E) according to a 1995 National Institutes of Health
workshop report, the cost of lost productivity from missed
school days for parents of children with asthma is estimated at
$1,000,000,000 per year; and
(2)(A) vision and hearing screening is an essential part of
child health care;
(B) a vision or hearing deficit may undermine a child's
ability to learn;
(C) the Chicago public school system has determined through
vision screening that a far higher number of children
identified as failing academically suffer from vision
impairment;
(D) students who have failed a grade 1 or more times are
even more likely to have a vision problem;
(E) more than 30 percent of students in Chicago public
schools who were retained during the 1998-1999 school year
failed their school-based vision screening, a rate that is 50
percent higher than children who were not failing;
(F) schools play a critical role in promoting a clear link
between visual and hearing acuity and academic performance;
(G) providing vision and hearing screening in schools helps
children receive those essential health care services in a
timely fashion;
(H) many parents find it difficult to take time off work in
order to ensure that their children receive preventive or other
nonemergency health care services; and
(I) allowing children to receive nonemergency health care
services at school would ensure that the children receive
services that promote healthy lives and better academic
achievement.
SEC. 1302. ASTHMA, VISION, AND HEARING SCREENING FOR EARLY HEAD START
AND HEAD START PROGRAMS.
(a) Early Head Start Programs.--Section 645A of the Head Start Act
(42 U.S.C. 9840a) is amended by adding at the end the following:
``(h) Asthma, Vision, and Hearing Screening.--
``(1) In general.--An entity that receives assistance under
this section may carry out a program under which the entity--
``(A) determines whether a child eligible to
participate in the program described in subsection
(a)(1) has received each of an asthma, vision, and
hearing screening test using a test that is appropriate
for age and risk factors on the enrollment of the child
in the program; and
``(B) in the case of a child who has not received
each of an asthma, and vision, and hearing screening
test, ensures that the enrolled child receives such a
test either by referral or by performing the test
(under contract or otherwise).
``(2) Reimbursement.--
``(A) In general.--On the request of an entity that
performs or arranges for the performance of an asthma,
vision, or hearing screening test under paragraph (1)
on a child who is eligible for or receiving medical
assistance under a State plan under title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.), the
Secretary of Health and Human Services, notwithstanding
any other provision of, or limitation under, title XIX
of the Social Security Act, shall reimburse the entity,
from funds that are made available under that title,
for 100 percent of the cost of the test and data
reporting.
``(B) Costs.--The costs of a test conducted under
this subsection--
``(i) shall include reimbursement for
testing devices and associated supplies
approved for sale by the Food and Drug
Administration and used in compliance with
section 353 of the Public Health Service Act
(42 U.S.C. 263a); and
``(ii) shall include reimbursement for
administering the tests and related services,
as determined appropriate by the State agency.
``(3) Head start.--This subsection shall apply to Head
Start programs that include coverage, directly or indirectly,
for infants and toddlers under the age of 3 years.''.
(b) Head Start Programs.--Section 642(b) of the Head Start Act (42
U.S.C. 9837(b)) is amended--
(1) in paragraph (10), by striking ``and'' at the end;
(2) in paragraph (11), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(12) with respect to an agency that elects to carry out a
program under section 645(h), comply with the requirements of
such section 645A(h) in the case of each child eligible to
participate in the Head Start program to be carried out by the
agency.''.
(c) Payments for Screening and Treatment Provided to Children
Eligible Under Medicaid or SCHIP.--
(1) Medicaid.--Section 1903(c) of the Social Security Act
(42 U.S.C. 1396b(c)) is amended--
(A) by inserting ``(1)'' after ``(c)''; and
(B) by adding at the end the following:
``(2) Nothing in this title or any other provision of law,
including the payment limitation commonly known as the `free care
rule', shall be construed as prohibiting or restricting, or authorizing
the Secretary to prohibit or restrict, payment under subsection (a) for
medical assistance for covered services furnished to a child who is
eligible for or receiving medical assistance under the State plan and
who receives an asthma, vision, hearing, or other health screening
test, or is provided treatment, education in disease management,
corrective eyewear, or hearing aids, through a public elementary or
secondary school, whether directly or indirectly, and regardless of
whether the school participates in a program established under
subsection (a) or (b) of section 320B of the Public Health Service
Act.''.
(2) SCHIP.--Section 2105 of the Social Security Act (42
U.S.C.1397ee) is amended by adding at the end the following:
``(g) Required Payment for Certain School-Based Services.--Nothing
in this title or any other provision of law (including the payment
limitation under title XIX commonly known as the `free care rule' to
the extent, if any, such limitation applies to the program established
under this title), shall be construed as prohibiting or restricting, or
authorizing the Secretary to prohibit or restrict, payment under
subsection (a) for child health assistance for covered services
furnished to a child who is eligible for or receiving such assistance
under the State plan and who receives an asthma, vision, or hearing
screening test, or other health screening test that is available to
children receiving assistance under the State plan, or is provided
treatment, education in disease management, corrective eyewear, or
hearing aids through a public elementary or secondary school, whether
directly or indirectly, and regardless of whether the school
participates in a program established under subsection (a) or (b) of
section 320B of the Public Health Service Act.''.
SEC. 1303. ASTHMA, VISION, AND HEARING SCREENING AND TREATMENT FOR
CHILDREN ENROLLED IN PUBLIC SCHOOLS.
Part B of title III of the Public Health Service Act (42 U.S.C. 243
et seq.) is amended by adding at the end the following:
``SEC. 320B. ASTHMA, VISION, AND HEARING SCREENING AND TREATMENT FOR
CHILDREN ENROLLED IN PUBLIC SCHOOLS.
``(a) Asthma Screening and Case Management Program.--
``(1) In general.--The Secretary, in collaboration with the
Secretary of Education, shall carry out an asthma screening and
case management program under which local educational agencies
shall be reimbursed for the provision of asthma screening and
case management to children enrolled in public elementary
schools and secondary schools located in areas with respect to
which there is a high incidence of childhood asthma.
``(2) Program elements.--Under the program, a local
educational agency shall--
``(A) determine whether a child enrolled in a
school described in paragraph (1) has received an
asthma screening test using a test that is appropriate
for age and risk factors on the enrollment of the child
in the school;
``(B) in the case of a child who has not received
an asthma screening test, ensure that the child
receives such a test either by referral or by
performing the test (under contract or otherwise); and
``(C) in the case of a child determined to have
asthma, provide treatment or refer the child for
treatment (including case management) and education in
the management of asthma.
``(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection with respect to
a child, and any data reporting with respect to the child, who
is not eligible for coverage under title XIX or XXI of the
Social Security Act, or is not otherwise covered under a health
insurance plan, $10,000,000 for each fiscal year.
``(b) Vision and Hearing Screening Program.--
``(1) In general.--The Secretary shall carry out a vision
and hearing screening program under which local educational
agencies shall be reimbursed for the provision of vision and
hearing screening and corrective eyewear and hearing aids to
children enrolled in public elementary schools and secondary
schools.
``(2) Program elements.--Under the program, a local
educational agency shall--
``(A) elect to provide vision and hearing screening
tests--
``(i) to all children enrolled in a school
who are most likely to suffer from vision or
hearing loss; or
``(ii) to all children enrolled in a
school;
``(B) ensure that the category of children elected
under subparagraph (A) receive such tests, either by
referral or by performing the test (under contract or
otherwise), that are appropriate for the age and risk
factors of the children, based on the enrollment of the
children in the school; and
``(C) in the case of any child determined to have a
vision or hearing impairment, provide the child with
such eyewear and hearing aids as are appropriate to
correct the child's vision or hearing, to the extent
that such correction is feasible.
``(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection with respect to
a child, and any data reporting with respect to the child, who
is not eligible for coverage under title XIX or XXI of the
Social Security Act, or is not otherwise covered under a health
insurance plan, $10,000,000 for each fiscal year.
``(c) Reimbursement.--
``(1) Children enrolled in or eligible for medicaid.--
``(A) In general.--With respect to a child who is
eligible for or receiving medical assistance under a
State plan under title XIX of the Social Security Act
(42 U.S.C. 1396 et seq.) and who receives, or is
provided, a test, treatment, education, corrective
eyewear, or hearing aid under a program established
under subsection (a) or (b), the Secretary,
notwithstanding any other provision of, or limitation
under, such title XIX, including the payment limitation
commonly known as the `free care rule', shall reimburse
the local educational agency administering such program
from funds that are made available under such title XIX
for 100 percent of the cost of the performance,
arrangement, or provision and data reporting.
``(B) Costs.--The costs of a test conducted under
this section shall include reimbursement for--
``(i) testing devices and associated
supplies approved for sale by the Food and Drug
Administration and used in compliance with
section 353; and
``(ii) administering the tests and related
services, as determined appropriate by the
State agency responsible for the administration
of title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).
``(2) Children enrolled in or eligible for schip.--
``(A) In general.--With respect to a child who is
eligible for or receiving child health assistance under
a State plan under title XXI of the Social Security Act
(42 U.S.C. 1397aa et seq.) and who receives, or is
provided, a test, treatment, education, corrective
eyewear, or hearing aid under a program established
under subsection (a) or (b), the Secretary,
notwithstanding any other provision of, or limitation
under, such title XXI, or any other provision of law
(including the payment limitation under title XIX
commonly known as the `free care rule' to the extent,
if any, such limitation applies to the State children's
health insurance program established under title XXI of
that Act), shall reimburse the local educational agency
administering such program from funds that are made
available under such title XXI for 100 percent of the
cost of the performance, arrangement, or provision and
data reporting.
``(B) Costs.--The costs shall include the costs
described in paragraph (1)(B).
``(d) Rule of Construction.--Nothing in this section shall be
construed to require that a local educational agency participate in a
program carried out by the Secretary under this section.
``(e) Definitions.--In this section, the terms `local educational
agency' and `elementary and secondary school' shall have the meanings
given such terms in section 14101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801).''.
SEC. 1304. GENERAL EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), the
amendments made by this chapter take effect on the date that is 18
months after the date of enactment of this Act.
(b) Head Start Waivers.--
(1) In general.--An entity carrying out activities under
section 642 or 645A of the Head Start Act (42 U.S.C. 9837,
9840a), may be awarded a waiver from the amendments made by
section 1302 if the State where the entity is located
establishes to the satisfaction of the Secretary of Health and
Human Services, in accordance with requirements and procedures
recommended in accordance with paragraph (2) to the Secretary
by the Director of the Centers for Disease Control and
Prevention a plan for increasing the number of asthma, vision,
and hearing screening tests of children enrolled in the Early
Head Start and Head Start programs in the State.
(2) Development of waiver procedures and requirements.--Not
later than 1 year after the date of enactment of this Act, the
Director of the Centers for Disease Control and Prevention
shall develop and recommend to the Secretary of Health and
Human Services criteria and procedures (including a timetable
for the submission of the State plan described in paragraph
(1)) for the awarding of waivers under that paragraph.
CHAPTER 2--INCREASE IN FUNDING FOR HUD PROGRAMS
SEC. 1311. LEAD-BASED PAINT HAZARD CONTROL GRANTS.
Section 1011(p) of the Residential Lead-Based Paint Hazard
Reduction Act of 1992 (42 U.S.C. 4852) is amended by striking
``appropriated'' and all that follows through the period and inserting
``appropriated--
``(1) $125,000,000 for fiscal year 1993 and $250,000,000
for fiscal year 1994;
``(2) $200,000,000 for fiscal year 2002;
``(3) $250,000,000 for fiscal year 2003; and
``(4) $300,000,000 beginning with fiscal year 2004 and
fiscal years thereafter.''.
SEC. 1312. HEALTHY HOMES INITIATIVE PROGRAM.
There are authorized to be appropriated for the Healthy Homes
Initiative program pursuant to sections 501 and 502 of the Housing and
Urban Development Act of 1970, for which funds were provided under
title II of the Departments of Veterans Affairs and Housing and Urban
Development, Independent Agencies Appropriations Act, 2000--
(1) $100,000,000 for fiscal year 2002; and
(2) $150,000,000 beginning with fiscal year 2003 and fiscal
years thereafter.
CHAPTER 3--YOUTH SMOKING CESSATION AND EDUCATION
SEC. 1321. SHORT TITLE.
This chapter may be cited as the ``Kids Deserve Freedom from
Tobacco Act of 2001'' or the ``KIDS Act''.
Subchapter A--Protection of Children from Tobacco
PART I--FOOD AND DRUG ADMINISTRATION JURISDICTION AND GENERAL AUTHORITY
SEC. 1331. REFERENCE.
Whenever in this subchapter an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et
seq.).
SEC. 1332. STATEMENT OF GENERAL AUTHORITY.
The regulations promulgated by the Secretary in the rule dated
August 28, 1996 (Vol. 61, No. 168 C.F.R.), adding part 897 to title 21,
Code of Federal Regulations, shall be deemed to have been lawfully
promulgated under the Food, Drug, and Cosmetic Act as amended by this
subchapter. Such regulations shall apply to all tobacco products.
SEC. 1333. NONAPPLICABILITY TO OTHER DRUGS OR DEVICES.
Nothing in this subchapter, or an amendment made by this
subchapter, shall be construed to affect the regulation of drugs and
devices that are not tobacco products by the Secretary under the
Federal Food, Drug, and Cosmetic Act.
SEC. 1334. CONFORMING AMENDMENTS TO CONFIRM JURISDICTION.
(a) Definitions.--
(1) Drug.--Section 201(g)(1) (21 U.S.C. 321(g)(1)) is
amended by striking ``; and (D)'' and inserting ``; (D)
nicotine in tobacco products; and (E)''.
(2) Devices.--Section 201(h) (21 U.S.C. 321(h)) is amended
by adding at the end the following: ``Such term includes a
tobacco product.''.
(3) Other definitions.--Section 201 (21 U.S.C. 321) is
amended by adding at the end the following:
``(kk) The term `tobacco product' means any product made or
derived from tobacco that is intended for human consumption.''.
(b) Prohibited Acts.--Section 301 (21 U.S.C. 331) is amended by
adding at the end the following:
``(aa) The manufacture, labeling, distribution, advertising and
sale of any adulterated or misbranded tobacco product in violation of--
``(1) regulations issued under this Act; or
``(2) the KIDS Act, or regulations issued under such
Act.''.
(c) Adulterated Drugs and Devices.--
(1) In general.--Section 501 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 351) is amended by adding at the end
the following:
``(j) If it is a tobacco product and it does not comply with the
provisions of subchapter D of this chapter or the KIDS Act.''.
(2) Misbranding.--Section 502(q) (21 U.S.C. 352(q)) is
amended--
(A) by striking ``or (2)'' and inserting in lieu
thereof ``(2)''; and
(B) by inserting before the period the following:
``, or (3) in the case of a tobacco product, it is
sold, distributed, advertised, labeled, or used in
violation of this Act or the KIDS Act, or regulations
prescribed under such Acts''.
(d) Restricted Device.--Section 520(e) (21 U.S.C. 360j(e)) is
amended--
(1) in paragraph (1), by striking ``or use--'' and
inserting ``or use, including restrictions on the access to,
and the advertising and promotion of, tobacco products--''; and
(2) by adding at the end the following:
``(3) Tobacco products are a restricted device under this
paragraph.''.
(e) Regulatory Authority.--Section 503(g) (21 U.S.C. 353(g)) is
amended by adding at the end the following:
``(5) The Secretary may regulate any tobacco product as a drug,
device, or both, and may designate the office of the Administration
that shall be responsible for regulating such products.''.
SEC. 1335. GENERAL RULE.
Section 513(a)(1)(B) (21 U.S.C. 360c(a)(1)(B)) is amended by adding
at the end the following: ``The sale of tobacco products to adults that
comply with performance standards established for these products under
section 514 and other provisions of this Act and any regulations
prescribed under this Act shall not be prohibited by the Secretary,
notwithstanding sections 502(j), 516, and 518.''.
SEC. 1336. SAFETY AND EFFICACY STANDARD AND RECALL AUTHORITY.
(a) Safety and Efficacy Standard.--Section 513(a) (21 U.S.C.
360c(a)) is amended--
(1) in paragraph (1)(B), by inserting after the first
sentence the following: ``For a device which is a tobacco
product, the assurance in the previous sentence need not be
found if the Secretary finds that special controls achieve the
best public health result.''; and
(2) in paragraph (2)--
(A) by redesignating subparagraphs (A), (B) and (C)
as clauses (i), (ii) and (iii), respectively;
(B) by striking ``(2) For'' and inserting ``(2)(A)
For''; and
(C) by adding at the end the following:
``(B) For purposes of paragraph (1)(B), subsections (c)(2)(C),
(d)(2)(B), (e)(2)(A), (f)(3)(B)(i), and (f)(3)(C)(i), and sections 514,
519(a), 520(e), and 520(f), the safety and effectiveness of a device
that is a tobacco product need not be found if the Secretary finds that
the action to be taken under any such provision would achieve the best
public health result. The finding as to whether the best public health
result has been achieved shall be determined with respect to the risks
and benefits to the population as a whole, including users and non-
users of the tobacco product, and taking into account--
``(i) the increased or decreased likelihood that existing
consumers of tobacco products will stop using such products;
and
``(ii) the increased or decreased likelihood that those who
do not use tobacco products will start using such products.''.
(b) Recall Authority.--Section 518(e)(1) (21 U.S.C. 360h(e)(1)) is
amended by inserting after ``adverse health consequences or death,''
the following: ``and for tobacco products that the best public health
result would be achieved,''.
PART II--REGULATION OF TOBACCO PRODUCTS
SEC. 1341. PERFORMANCE STANDARDS.
Section 514(a) (21 U.S.C. 60d(a)) is amended--
(1) in paragraph (2), by striking ``device'' and inserting
``nontobacco product device'';
(2) by redesignating paragraphs (3) and (4) as paragraphs
(6) and (7), respectively; and
(3) by inserting after paragraph (2) the following:
``(3) The Secretary may adopt a performance standard under section
514(a)(2) for a tobacco product regardless of whether the product has
been classified under section 513. Such standard may--
``(A) include provisions to achieve the best public health
result;
``(B) where necessary to achieve the best public health
result, include--
``(i) provisions respecting the construction,
components, constituents, ingredients, and properties
of the tobacco product device, including the reduction
or elimination (or both) of nicotine and the other
components, ingredients, and constituents of the
tobacco product, its components and its by-products,
based upon the best available technology;
``(ii) provisions for the testing (on a sample
basis or, if necessary, on an individual basis) of the
tobacco product device or, if it is determined that no
other more practicable means are available to the
Secretary to assure the conformity of the tobacco
product device to such standard, provisions for the
testing (on a sample basis or, if necessary, on an
individual basis) by the Secretary or by another person
at the direction of the Secretary;
``(iii) provisions for the measurement of the
performance characteristics of the tobacco product
device;
``(iv) provisions requiring that the results of
each test or of certain tests of the tobacco product
device required to be made under clause (ii)
demonstrate that the tobacco product device is in
conformity with the portions of the standard for which
the test or tests were required; and
``(v) a provision that the sale and distribution of
the tobacco product device be restricted but only to
the extent that the sale and distribution of a tobacco
product device may otherwise be restricted under this
Act; and
``(C) where appropriate, require the use and prescribe the
form and content of labeling for the use of the tobacco product
device.
``(4) Not later than 1 year after the date of enactment of the KIDS
Act, the Secretary (acting through the Commissioner of Food and Drugs)
shall establish a Scientific Advisory Committee to evaluate whether a
level or range of levels exists at which nicotine yields do not produce
drug-dependence. The Advisory Committee shall also review any other
safety, dependence or health issue assigned to it by the Secretary. The
Secretary need not promulgate regulations to establish the
Committee.''.
SEC. 1342. APPLICATION OF FEDERAL FOOD, DRUG, AND COSMETIC ACT TO
TOBACCO PRODUCTS.
(a) Tobacco Products Regulation.--Chapter V (21 U.S.C. 351 et seq.)
is amended by adding at the end the following:
``SUBCHAPTER F--TOBACCO PRODUCT DEVELOPMENT, MANUFACTURING, AND ACCESS
RESTRICTIONS
``SEC. 570. PROMULGATION OF REGULATIONS.
``Any regulations necessary to implement this subchapter shall be
promulgated not later than 12 months after the date of enactment of
this subchapter using notice and comment rulemaking (in accordance with
chapter 5 of title 5, United States Code). Such regulations may be
revised thereafter as determined necessary by the Secretary.
``SEC. 571. MAIL-ORDER SALES.
``(a) In General.--Not later than 2 years after the date of
enactment of this subchapter, the Secretary shall review and determine
whether persons under the age of 18 years are obtaining tobacco
products by means of the mail.
``(b) Restrictions.--Based solely upon the review conducted under
subsection (a), the Secretary may take regulatory and administrative
action to restrict or eliminate mail order sales of tobacco products.
``SEC. 572. IMPLEMENTATION OF THE PROPOSED RESOLUTION.
``(a) Additional Restrictions on Marketing, Advertising, and
Access.--Not later than 18 months after the date of the enactment of
this subchapter, the Secretary shall revise the regulations related to
tobacco products promulgated by the Secretary on August 28, 1996 (61
Fed. Reg. 44396) to include the additional restrictions on marketing,
advertising, and access described in Title IA and Title IC of the
Proposed Resolution entered into by the tobacco manufacturers and the
State attorneys general on June 20, 1997, except that the Secretary
shall not include an additional restriction on marketing or advertising
in such regulations if its inclusion would violate the First Amendment
to the Constitution.
``(b) Warnings.--Not later than 18 months after the date of the
enactment of this subchapter, the Secretary shall promulgate
regulations to require warnings on cigarette and smokeless tobacco
labeling and advertisements. The content, format, and rotation of
warnings shall conform to the specifications described in Title IB of
the Proposed Resolution entered into by the tobacco manufacturers and
the State attorneys general on June 20, 1997.
``(c) Rules of Construction.--
``(1) In general.--Nothing in this section shall be
construed to limit the ability of the Secretary to change the
text or layout of any of the warning statements, or any of the
labeling provisions, under the regulations promulgated under
subsection (b) and other provisions of this Act, if determined
necessary by the Secretary in order to make such statements or
labels larger, more prominent, more conspicuous, or more
effective.
``(2) Unfair acts.--Nothing in this section (other than the
requirements of subsections (a) and (b)) shall be construed to
limit or restrict the authority of the Federal Trade Commission
with respect to unfair or deceptive acts or practices in the
advertising of tobacco products.
``(d) Limited Preemption.--
``(1) State and local action.--No warning label with
respect to tobacco products, or any other tobacco product for
which warning labels have been required under this section,
other than the warning labels required under this Act, shall be
required by any State or local statute or regulation to be
included on any package of a tobacco product.
``(2) Effect on liability law.--Nothing in this section
shall relieve any person from liability at common law or under
State statutory law to any other person.
``(e) Violation of Section.--Any tobacco product that is in
violation of this section shall be deemed to be misbranded.
``SEC. 573. GENERAL RESPONSIBILITIES OF MANUFACTURERS, DISTRIBUTORS AND
RETAILERS.
``Each manufacturer, distributor, and retailer shall ensure that
the tobacco products it manufactures, labels, advertises, packages,
distributes, sells, or otherwise holds for sale comply with all
applicable requirements of this Act.
``SEC. 574. DISCLOSURE AND REPORTING OF TOBACCO AND NONTOBACCO
INGREDIENTS AND CONSTITUENTS.
``(a) Disclosure of All Ingredients.--
``(1) Immediate and annual disclosure.--Not later than 30
days after the date of enactment of this subchapter, and
annually thereafter, each manufacturer of a tobacco product
shall submit to the Secretary an ingredient list for each brand
of tobacco product it manufactures that contains the
information described in paragraph (2).
``(2) Requirements.--The list described in paragraph (1)
shall, with respect to each brand or variety of tobacco product
of a manufacturer, include--
``(A) a list of all ingredients, constituents,
substances, and compounds that are found in or added to
the tobacco or tobacco product (including the paper,
filter, or packaging of the product if applicable) in
the manufacture of the tobacco product, for each brand
or variety of tobacco product so manufactured,
including, if determined necessary by the Secretary,
any material added to the tobacco used in the product
prior to harvesting;
``(B) the quantity of the ingredients,
constituents, substances, and compounds that are listed
under subparagraph (A) in each brand or variety of
tobacco product;
``(C) the nicotine content of the product, measured
in milligrams of nicotine;
``(D) for each brand or variety of cigarettes--
``(i) the filter ventilation percentage
(the level of air dilution in the cigarette as
provided by the ventilation holes in the
filter, described as a percentage);
``(ii) the pH level of the smoke of the
cigarette; and
``(iii) the tar, unionized (free) nicotine,
and carbon monoxide delivery level and any
other smoking conditions established by the
Secretary, reported in milligrams of tar,
nicotine, and carbon monoxide per cigarette;
``(E) for each brand or variety of smokeless
tobacco products--
``(i) the pH level of the tobacco;
``(ii) the moisture content of the tobacco
expressed as a percentage of the weight of the
tobacco; and
``(iii) the nicotine content--
``(I) for each gram of the product,
measured in milligrams of nicotine;
``(II) expressed as a percentage of
the dry weight of the tobacco; and
``(III) with respect to unionized
(free) nicotine, expressed as a
percentage per gram of the tobacco and
expressed in milligrams per gram of the
tobacco; and
``(F) any other information determined appropriate
by the Secretary.
``(3) Methods.--The Secretary shall have the authority to
promulgate regulations to establish the methods to be used by
manufacturers in making the determinations required under
paragraph (2).
``(4) Other tobacco products.--The Secretary shall
prescribe such regulations as may be necessary to establish
information disclosure procedures for other tobacco products.
``(b) Safety Assessments.--
``(1) Application to new ingredients.--
``(A) In general.--Not later than 1 year after the
date of enactment of this subchapter, and annually
thereafter, each manufacturer shall submit to the
Secretary a safety assessment for each new ingredient,
constituent, substance, or compound that such
manufacturer desires to make a part of a tobacco
product. Such new ingredient, constituent, substance,
or compound shall not be included in a tobacco product
prior to approval by the Secretary of such a safety
assessment.
``(B) Method of filing.--A safety assessment
submitted under subparagraph (A) shall be signed by an
officer of the manufacturer who is acting on behalf of
the manufacturer and who has the authority to bind the
manufacturer, and contain a statement that ensures that
the information contained in the assessment is true,
complete and accurate.
``(C) Definition of new ingredient.--For purposes
of subparagraph (A), the term `new ingredient,
constituent, substance, or compound' means an
ingredient, constituent, substance, or compound listed
under subsection (a)(1) that was not used in the brand
or variety of tobacco product involved prior to January
1, 1998.
``(2) Application to other ingredients.--With respect to
the application of this section to ingredients, constituents
substances, or compounds listed under subsection (a) to which
paragraph (1) does not apply, all such ingredients,
constituents, substances, or compounds shall be reviewed
through the safety assessment process within the 5-year period
beginning on the date of enactment of this subchapter. The
Secretary shall develop a procedure for the submission of
safety assessments of such ingredients, constituents,
substances, or compounds that staggers such safety assessments
within the 5-year period.
``(3) Basis of assessment.--The safety assessment of an
ingredient, constituent, substance, or compound described in
paragraphs (1) and (2) shall--
``(A) be based on the best scientific evidence
available at the time of the submission of the
assessment; and
``(B) demonstrate that there is a reasonable
certainty among experts qualified by scientific
training and experience who are consulted, that the
ingredient, constituent, substance, or compound will
not present any risk to consumers or the public in the
quantities used under the intended conditions of use.
``(c) Prohibition.--
``(1) Regulations.--Not later than 12 months after the date
of enactment of this subchapter, the Secretary shall promulgate
regulations to prohibit the use of any ingredient, constituent,
substance, or compound in the tobacco product of a
manufacturer--
``(A) if no safety assessment has been submitted by
the manufacturer for the ingredient, constituent,
substance, or compound as otherwise required under this
section; or
``(B) if the Secretary finds that the manufacturer
has failed to demonstrate the safety of the ingredient,
constituent, substance, or compound that was the
subject of the assessment under paragraph (2).
``(2) Review of assessments.--
``(A) General review.--Not later than 180 days
after the receipt of a safety assessment under
subsection (b), the Secretary shall review the findings
contained in such assessment and approve or disapprove
of the safety of the ingredient, constituent,
substance, or compound that was the subject of the
assessment. The Secretary may, for good cause, extend
the period for such review. The Secretary shall provide
notice to the manufacturer of an action under this
subparagraph.
``(B) Inaction by secretary.--If the Secretary
fails to act with respect to an assessment of an
existing ingredient, constituent, substance, or
additive during the period referred to in subparagraph
(A), the manufacturer of the tobacco product involved
may continue to use the ingredient, constituent,
substance, or compound involved until such time as the
Secretary makes a determination with respect to the
assessment.
``(d) Right To Know; Full Disclosure of Ingredients to the
Public.--
``(1) In general.--Except as provided in paragraph (3), a
package of a tobacco product shall disclose all ingredients,
constituents, substances, or compounds contained in the product
in accordance with regulations promulgated under section 701(a)
by the Secretary.
``(2) Disclosure of percentage of domestic and foreign
tobacco.--The regulations referred to in paragraph (1) shall
require that the package of a tobacco product disclose, with
respect to the tobacco contained in the product--
``(A) the percentage that is domestic tobacco; and
``(B) the percentage that is foreign tobacco.
``(3) Health disclosure.--Notwithstanding section 301(j),
the Secretary may require the public disclosure of any
ingredient, constituent, substance, or compound contained in a
tobacco product that relates to a trade secret or other matter
referred to in section 1905 of title 18, United States Code, if
the Secretary determines that such disclosure will promote the
public health.
``SEC. 575. REDUCED RISK PRODUCTS.
``(a) Prohibition.--
``(1) In general.--No manufacturer, distributor or retailer
of tobacco products may make any direct or implied statement in
advertising or on a product package that could reasonably be
interpreted to state or imply a reduced health risk associated
with a tobacco product unless the manufacturer demonstrates to
the Secretary, in such form as the Secretary may require, that
based on the best available scientific evidence the product
significantly reduces the overall health risk to the public
when compared to other tobacco products.
``(2) Submission to secretary.--Prior to making any
statement described in paragraph (1), a manufacturer,
distributor or retailer shall submit such statement to the
Secretary, who shall review such statement to ensure its
accuracy and, in the case of advertising, to prevent such
statement from increasing, or preventing the contraction of,
the size of the overall market for tobacco products.
``(b) Determination by Secretary.--If the Secretary determines that
a statement described in subsection (a)(2) is permissible because the
tobacco product does present a significantly reduced overall health
risk to the public, the Secretary may permit such statement to be made.
``(c) Development or Acquisition of Reduced Risk Technology.--
``(1) In general.--Any manufacturer that develops or
acquires any technology that the manufacturer reasonably
believes will reduce the risk from tobacco products shall
notify the Secretary of the development or acquisition of the
technology. Such notice shall be in such form and within such
time as the Secretary shall require.
``(2) Confidentiality.--With respect to any technology
described in paragraph (1) that is in the early stages of
development (as determined by the Secretary), the Secretary
shall establish protections to ensure the confidentiality of
any proprietary information submitted to the Secretary under
this subsection during such development.
``SEC. 576. ACCESS TO COMPANY INFORMATION.
``(a) Compliance Procedures.--Each manufacturer of tobacco products
shall establish procedures to ensure compliance with this Act.
``(b) Requirement.--In addition to any other disclosure obligations
under this Act, the KIDS Act, or any other law, each manufacturer of
tobacco products shall, not later than 90 days after the date of the
enactment of the KIDS Act and thereafter as required by the Secretary,
disclose to the Secretary all nonpublic information and research in its
possession or control relating to the addiction or dependency, or the
health or safety of tobacco products, including (without limitation)
all research relating to processes to make tobacco products less
hazardous to consumers and the research and documents described in
subsection (c).
``(c) Research and Documents.--The documents described in this
section include any documents concerning tobacco product research
relating to--
``(1) nicotine, including--
``(A) the interaction between nicotine and other
components in tobacco products including ingredients in
the tobacco and smoke components;
``(B) the role of nicotine in product design and
manufacture, including product charters, and parameters
in product development, the tobacco blend, filter
technology, and paper;
``(C) the role of nicotine in tobacco leaf
purchasing;
``(D) reverse engineering activities involving
nicotine (such as analyzing the products of other
companies);
``(E) an analysis of nicotine delivery; and
``(F) the biology, psychopharmacology and any other
health effects of nicotine;
``(2) other ingredients, including--
``(A) the identification of ingredients in tobacco
products and constituents in smoke, including additives
used in product components such as paper, filter, and
wrapper;
``(B) any research on the health effects of
ingredients; and
``(C) any research or other information explaining
what happens to ingredients when they are heated and
burned;
``(3) less hazardous or safer products, including any
research or product development information on activities
involving reduced risk, less hazardous, low-tar or reduced-tar,
low-nicotine or reduced-nicotine or nicotine-free products; and
``(4) tobacco product advertising, marketing and promotion,
including--
``(A) documents related to the design of
advertising campaigns, including the desired
demographics for individual products on the market or
being tested;
``(B) documents concerning the age of initiation of
tobacco use, general tobacco use behavior, beginning
smokers, pre-smokers, and new smokers;
``(C) documents concerning the effects of
advertising; and
``(D) documents concerning future marketing options
or plans in light of the requirements and regulations
to be imposed under this subchapter or the KIDS Act.
``(d) Authority of Secretary.--With respect to tobacco product
manufacturers, the Secretary shall have the same access to records and
information and inspection authority as is available with respect to
manufacturers of other medical devices.
``SEC. 577. OVERSIGHT OF TOBACCO PRODUCT MANUFACTURING.
``The Secretary shall by regulation prescribe good manufacturing
practice standards for tobacco products. Such regulations shall be
modeled after good manufacturing practice regulations for medical
devices, food, and other items under section 520(f). Such standards
shall be directed specifically toward tobacco products, and shall
include--
``(1) a quality control system, to ensure that tobacco
products comply with such standards;
``(2) a system for inspecting tobacco product materials to
ensure their compliance with such standards;
``(3) requirements for the proper handling of finished
tobacco products;
``(4) strict tolerances for pesticide chemical residues in
or on tobacco or tobacco product commodities in the possession
of the manufacturer, except that nothing in this paragraph
shall be construed to affect any authority of the Environmental
Protection Agency;
``(5) authority for officers or employees of the Secretary
to inspect any factory, warehouse, or other establishment of
any tobacco product manufacturer, and to have access to
records, files, papers, processes, controls and facilities
related to tobacco product manufacturing, in accordance with
appropriate authority and rules promulgated under this Act; and
``(6) a requirement that the tobacco product manufacturer
maintain such files and records as the Secretary may specify,
as well as that the manufacturer report to the Secretary such
information as the Secretary shall require, in accordance with
section 519.
``SEC. 578. PRESERVATION OF STATE AND LOCAL AUTHORITY.
``Notwithstanding section 521 and except as otherwise provided for
in section 572(e), nothing in this subchapter shall be construed as
prohibiting a State or locality from imposing requirements,
prohibitions, penalties or other measures to further the purposes of
this subchapter that are in addition to the requirements, prohibitions,
or penalties required under this subchapter. State and local
governments may impose additional tobacco product control measures to
further restrict or limit the use of such products.''.
SEC. 1343. FUNDING.
(a) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this part (and
the amendments made by this part).
(b) Trigger.--No expenditures shall be made under this part (or the
amendments made by this part) during any fiscal year in which the
annual amount appropriated for the Food and Drug Administration is less
than the amount so appropriated for the prior fiscal year.
SEC. 1344. REPEALS.
The following provisions of law are repealed:
(1) The Federal Cigarette Labeling and Advertising Act (15
U.S.C. 1331 et seq.), except for sections 5(d)(1) and (2) and
6.
(2) The Comprehensive Smokeless Tobacco Health Education
Act of 1986 (15 U.S.C. 4401 et seq.), except for sections 3(f)
and 8(a) and (b).
(3) The Comprehensive Smoking Education Act of 1964 (Public
Law 98-474).
Subchapter B--Miscellaneous Provisions
SEC. 1351. NONAPPLICATION TO TOBACCO PRODUCERS.
(a) In General.--This chapter and the amendments made by this
chapter shall not apply to the producers of tobacco leaf, including
tobacco growers, tobacco warehouses, and tobacco grower cooperatives.
(b) Rule of Construction.--Nothing in this chapter, or an amendment
made by this chapter, shall be construed to provide the Secretary of
Health and Human Services with the authority to--
(1) enter onto a farm owned by a producer of tobacco leaf
without the written consent of such producer; or
(2) promulgate regulations on any matter that involves the
production of tobacco leaf or a producer thereof, other than
activities by a manufacturer that affect production.
(c) Manufacturer Acting as Producer.--Notwithstanding any other
provision of this section, if a producer of tobacco leaf is also a
tobacco product manufacturer or is owned or controlled by a tobacco
product manufacturer, the producer shall be subject to the provisions
of this chapter, and the amendments made by this chapter, in the
producer's capacity as a manufacturer.
(d) Definition.--In this section, the term ``controlled by'' means
a producer that is a member of the same controlled group of
corporations, as that term is used for purposes of section 52(a) of the
Internal Revenue Code of 1986, or under common control within the
meaning of the regulations promulgated under section 52(b) of such
Code.
SEC. 1352. EQUAL TREATMENT OF RETAIL OUTLETS.
The Secretary of Health and Human Services shall promulgate
regulations to require that retail establishments that are accessible
to individuals under the age of 18, for which the predominant business
is the sale of tobacco products, comply with any advertising
restrictions applicable to such establishments.
CHAPTER 4--COVERAGE OF CHILDHOOD IMMUNIZATIONS
SEC. 1361. SHORT TITLE.
This chapter be cited as the ``Comprehensive Insurance Coverage of
Childhood Immunization Act of 2001''.
SEC. 1362. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974.
(a) In General.--Subpart B of part 7 of subtitle B of title I of
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1185 et
seq.), as amended by section 1214, is further amended by adding at the
end the following:
``SEC. 715. STANDARD RELATING TO COVERAGE OF CHILDHOOD IMMUNIZATION.
``(a) In General.--A group health plan, and a health insurance
issuer offering health insurance coverage in connection with a group
health plan, shall provide for each plan year comprehensive coverage
for routine immunizations for each individual who is a dependent of a
participant or beneficiary under the plan and is under 19 years of age.
``(b) Comprehensive Coverage.--For purposes of this section,
comprehensive coverage for routine immunizations for a plan year
consists of coverage, without deductibles, coinsurance, or other cost-
sharing, for immunizations (including the vaccine itself) in accordance
with the most recent version of the Recommended Childhood Immunization
Schedule issued prior to such plan year by the Advisory Committee on
Immunization Practices of the Centers for Disease Control and
Prevention.''.
(b) Conforming Amendment.--The table of contents in section 1 of
the Employee Retirement Income Security Act of 1974, as amended by
section 1214, is further amended by inserting after the item relating
to section 714 the following new item:
``Sec. 715. Standard relating to coverage of childhood immunization.''.
SEC. 1363. AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT.
(a) Group Market.--Subpart 2 of part A of title XXVII of the Public
Health Service Act (42 U.S.C. 300gg-4 et seq.) is amended by adding at
the end the following:
``SEC. 2707. STANDARD RELATING TO COVERAGE OF CHILDHOOD IMMUNIZATION.
``(a) In General.--A group health plan, and a health insurance
issuer offering health insurance coverage in connection with a group
health plan, shall provide for each plan year comprehensive coverage
for routine immunizations for each individual who is a dependent of a
participant or beneficiary under the plan and is under 19 years of age.
``(b) Comprehensive Coverage.--For purposes of this section,
comprehensive coverage for routine immunizations for a plan year
consists of coverage, without deductibles, coinsurance, or other cost-
sharing, for immunizations (including the vaccine itself) in accordance
with the most recent version of the Recommended Childhood Immunization
Schedule issued prior to such plan year by the Advisory Committee on
Immunization Practices of the Centers for Disease Control and
Prevention.''.
(b) Individual Market.--The first subpart 3 of part B of title
XXVII of the Public Health Service Act (42 U.S.C. 300gg-51 et seq.)
(relating to other requirements) (42 U.S.C. 300gg-51 et seq.) is
amended--
(1) by redesignating such subpart as subpart 2; and
(2) by inserting after section 2753, as added by section
1213(c), the following:
``SEC. 2754. STANDARD RELATING TO COVERAGE OF CHILDHOOD IMMUNIZATION.
``The provisions of section 2707 shall apply to health insurance
coverage offered by a health insurance issuer in the individual market
in the same manner as they apply to health insurance coverage offered
by a health insurance issuer in connection with a group health plan in
the small or large group market.''.
SEC. 1364. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.
Subchapter B of chapter 100 of the Internal Revenue Code of 1986 is
amended--
(1) in the table of sections, by inserting after the item
relating to section 9812 the following new item:
``Sec. 9813. Standard relating to
coverage of childhood
immunization.'';
and
(2) by inserting after section 9812 the following:
``SEC. 9813. STANDARD RELATING TO COVERAGE OF CHILDHOOD IMMUNIZATION.
``(a) In General.--A group health plan shall provide for each plan
year comprehensive coverage for routine immunizations for each
individual who is a dependent of a participant or beneficiary under the
plan and is under 19 years of age.
``(b) Comprehensive Coverage.--For purposes of this section,
comprehensive coverage for routine immunizations for a plan year
consists of coverage, without deductibles, coinsurance, or other cost-
sharing, for immunizations (including the vaccine itself) in accordance
with the most recent version of the Recommended Childhood Immunization
Schedule issued prior to such plan year by the Advisory Committee on
Immunization Practices of the Centers for Disease Control and
Prevention.''.
SEC. 1365. EFFECTIVE DATES.
(a) Group Health Insurance Coverage.--Subject to subsection (c),
the amendments made by sections 1362, 1363(a), and 1364 apply with
respect to group health plans for plan years beginning on or after
January 1, 2002.
(b) Individual Health Insurance Coverage.--The amendment made by
section 1363(b) applies with respect to health insurance coverage
offered, sold, issued, renewed, in effect, or operated in the
individual market on or after such date.
(c) Collective Bargaining Exception.--In the case of a group health
plan maintained pursuant to 1 or more collective bargaining agreements
between employee representatives and 1 or more employers ratified
before the date of enactment of this Act, the amendments made sections
1362, 1363(a), and 1364 shall not apply to plan years beginning before
the later of--
(1) the earliest date as of which all such collective
bargaining agreements relating to the plan have terminated
(determined without regard to any extension thereof agreed to
after the date of the enactment of this Act), or
(2) January 1, 2002.
For purposes of paragraph (1), any plan amendment made pursuant to a
collective bargaining agreement relating to the plan which amends the
plan solely to conform to any requirement added by sections 1362,
1363(a), and 1364 shall not be treated as a termination of such
collective bargaining agreement.
Subtitle E--Reducing Environmental Health Risks
CHAPTER 1--ENVIRONMENTAL PROTECTION OF CHILDREN
SEC. 1401. SHORT TITLE.
This chapter may be cited as the ``Children's Environmental
Protection Act''.
SEC. 1402. ENVIRONMENTAL PROTECTION FOR CHILDREN AND OTHER VULNERABLE
SUBPOPULATIONS.
The Toxic Substances Control Act (15 U.S.C. 2601 et seq.) is
amended by adding at the end the following:
``TITLE V--ENVIRONMENTAL PROTECTION FOR CHILDREN AND OTHER VULNERABLE
SUBPOPULATIONS
``SEC. 501. FINDINGS AND POLICY.
``(a) Findings.--Congress finds that--
``(1) the protection of public health and safety depends on
individuals and government officials being aware of the
pollution dangers that exist in their homes, schools, and
communities, and whether those dangers present special threats
to the health of children and other vulnerable subpopulations;
``(2) children spend much of their young lives in schools
and day care centers, and may face significant exposure to
pesticides and other environmental pollutants in those
locations;
``(3) the metabolism, physiology, and diet of children, and
exposure patterns of children to environmental pollutants,
differ from those of adults, and those differences and the
inherent nature of immature and developing systems of children
can make children more susceptible than adults to the harmful
effects of environmental pollutants;
``(4) a study conducted by the National Academy of Sciences
that particularly considered the effects of pesticides on
children concluded that current approaches to assessing
pesticide risks typically do not consider risks to children
and, as a result, current standards and tolerances often fail
to adequately protect children;
``(5) there are often insufficient data to enable the
Administrator, when establishing an environmental and public
health standard for an environmental pollutant, to evaluate the
special susceptibility or exposure of children to environmental
pollutants;
``(6) when data are lacking to evaluate the special
susceptibility or exposure of children to an environmental
pollutant, the Administrator generally--
``(A) does not presume that the environmental
pollutant presents a special risk to children; and
``(B) does not apply a special or additional margin
of safety to protect the health of children in
establishing an environmental or public health standard
for that pollutant; and
``(7) safeguarding children from environmental pollutants
requires the systematic collection of data concerning the
special susceptibility and exposure of children to those
pollutants, and the adoption of an additional safety factor of
at least 10-fold in the establishment of environmental and
public health standards where reliable data are not available.
``(b) Policy.--It is the policy of the United States that--
``(1) the public has the right to be informed about the
pollution dangers to which children are being exposed in their
homes, schools and communities, and how those dangers may
present special health threats to children and other vulnerable
subpopulations;
``(2) each environmental and public health standard for an
environmental pollutant established by the Administrator must,
with an adequate margin of safety, protect children and other
vulnerable subpopulations;
``(3) where data sufficient to evaluate the special
susceptibility and exposure of children (including exposure in
utero) to an environmental pollutant are lacking, the
Administrator should presume that the environmental pollutant
poses a special risk to children and should apply an
appropriate additional margin of safety of at least 10-fold in
establishing an environmental or public health standard for
that environmental pollutant;
``(4) since it is difficult to identify all conceivable
risks and address all uncertainties associated with pesticide
use, the use of dangerous pesticides in schools and day care
centers should be eliminated; and
``(5) the Environmental Protection Agency, the Department
of Health and Human Services (including the National Institute
of Environmental Health Sciences and the Agency for Toxic
Substances and Disease Registry), the National Institutes of
Health, and other Federal agencies should support research on
the short-term and long-term health effects of cumulative and
synergistic exposures of children and other vulnerable
subpopulations to environmental pollutants.
``SEC. 502. DEFINITIONS.
``In this title:
``(1) Child.--The term `child' means an individual 18 years
of age or younger.
``(2) Committee.--The term `Committee' means the Children's
Environmental Health Protection Advisory Committee established
under section 506.
``(3) Day care center.--The term `day care center' means a
center-based child care provider that is licensed, regulated,
or registered under applicable State or local law.
``(4) Environmental pollutant.--The term `environmental
pollutant' includes--
``(A) a hazardous substance (as defined in section
101 of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C.
9601));
``(B) a contaminant (as defined in section 1401 of
the Safe Drinking Water Act (42 U.S.C. 300f))
``(C) an air pollutant subject to regulation under
the Clean Air Act (42 U.S.C. 7401 et seq.);
``(D) a water pollutant subject to regulation under
the Federal Water Pollution Control Act (33 U.S.C. 1251
et seq.); and
``(E) a pesticide subject to regulation under the
Federal Insecticide, Fungicide, and Rodenticide Act (7
U.S.C. 136 et seq.).
``(5) Pesticide.--The term `pesticide' has the meaning
given the term in section 2 of the Federal Insecticide,
Fungicide, and Rodenticide Act (7 U.S.C. 136).
``(6) School.--The term `school' means an elementary school
(as defined in section 14101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801)), a secondary school (as
defined in section 14101 of that Act), a kindergarten, or a
nursery school that is public or receives Federal funding.
``(7) Vulnerable subpopulation.--The term `vulnerable
subpopulation' means--
``(A) children;
``(B) pregnant women;
``(C) the elderly;
``(D) individuals with a history of serious
illness; and
``(E) any other subpopulation identified by the
Administrator as being likely to experience special
health risks from environmental pollutants.
``SEC. 503. SAFEGUARDING CHILDREN AND OTHER VULNERABLE SUBPOPULATIONS.
``(a) In General.--The Administrator shall--
``(1) ensure that each environmental and public health
standard for an environmental pollutant protects children and
other vulnerable subpopulations with an adequate margin of
safety;
``(2) explicitly evaluate data concerning the special
susceptibility and exposure of children to any environmental
pollutant for which an environmental or public health standard
is established; and
``(3) adopt an additional margin of safety of at least 10-
fold in the establishment of an environmental or public health
standard for an environmental pollutant in the absence of
reliable data on toxicity and exposure of the child to an
environmental pollutant or if there is a lack of reliable data
on the susceptibility of the child to an environmental
pollutant for which the environmental and public health
standard is being established.
``(b) Establishing, Modifying, or Reevaluating Environmental and
Public Health Standards.--
``(1) In general.--In establishing, modifying, or
reevaluating any environmental or public health standard for an
environmental pollutant under any law administered by the
Administrator, the Administrator shall take into consideration
available information concerning--
``(A) all routes of exposure of children to that
environmental pollutant; and
``(B) the special susceptibility of children to the
environmental pollutant, including--
``(i) neurological differences between
children and adults;
``(ii) the effect of exposure to that
environmental pollutant in utero; and
``(iii) the cumulative effect on a child of
exposure to that environmental pollutant and
any other substance having a common
toxicological mechanism.
``(2) Additional safety margin.--If any of the data
described in paragraph (1) are not available, the Administrator
shall, in completing a risk assessment, risk characterization,
or other assessment of risk underlying an environmental or
public health standard, adopt an additional margin of safety of
at least 10-fold to take into account--
``(A) potential pre-natal and post-natal toxicity
of an environmental pollutant; and
``(B) the completeness of data concerning the
exposure and toxicity of the environmental pollutant to
children.
``(c) Identification and Revision of Current Environmental and
Public Health Standards That Present Special Risks to Children.--
``(1) In general.--Not later than 1 year after the date of
enactment of this title and annually thereafter, based on the
recommendations of the Committee, the Administrator shall--
``(A) repromulgate, in accordance with this
section, at least 3 of the environmental and public
health standards identified by the Committee as posing
a special risk to children; or
``(B) publish a finding in the Federal Register
that provides the reasons of the Administrator for
declining to repromulgate at least 3 of the
environmental and public health standards identified by
the Committee as posing a special risk to children.
``(2) Determination by administrator.--If the Administrator
makes the finding described in paragraph (1)(B), the
Administrator shall repromulgate in accordance with this
section at least 3 environmental and public health standards
determined to pose a greater risk to children's health than the
environmental and public health standards identified by the
Children's Environmental Health Protection Advisory Committee.
``(3) Report.--Not later than 1 year after the date of
enactment of this title and annually thereafter, the
Administrator shall submit a report to Congress describing the
progress made by the Administrator in carrying out this
subsection.
``SEC. 504. SAFER ENVIRONMENT FOR CHILDREN.
``Not later than 1 year after the date of enactment of this title,
the Administrator shall--
``(1) identify environmental pollutants commonly used or
found in areas that are reasonably accessible to children;
``(2) create a scientifically peer-reviewed list of
substances identified under paragraph (1) with known, likely,
or suspected health risks to children;
``(3) develop a scientifically peer reviewed list of safer-
for-children substances and products recommended by the
Administrator for use in areas that are reasonably accessible
to children that, when applied as recommended by the
manufacturer, will minimize potential risks to children from
exposure to environmental pollutants;
``(4) establish guidelines to help reduce and eliminate
exposure of children to environmental pollutants in areas
reasonably accessible to children, including advice on how to
establish an integrated pest management program;
``(5) develop a family right-to-know information kit that
includes a summary of helpful information and guidance to
families, such as--
``(A) the information developed under paragraph
(3);
``(B) the guidelines established under paragraph
(4);
``(C) information on the potential health effects
of environmental pollutants;
``(D) practical suggestions on how parents may
reduce the exposure of their children to environmental
pollutants; and
``(E) other information determined to be relevant
by the Administrator, in cooperation with the Director
of the Centers for Disease Control and Prevention;
``(6) make all information developed under this subsection
available to Federal and State agencies, to the public, and on
the Internet; and
``(7) review and update the lists developed under
paragraphs (2) and (3) at least annually.
``SEC. 505. RESEARCH TO IMPROVE INFORMATION ON THE EFFECTS OF
ENVIRONMENTAL POLLUTANTS ON CHILDREN.
``(a) Exposure and Toxicity Data.--The Administrator, the Secretary
of Agriculture, and the Secretary of Health and Human Services shall
coordinate and support the development and implementation of basic and
applied research initiatives to examine--
``(1) the health effects and toxicity of pesticides
(including active and inert ingredients) and other
environmental pollutants on children and other vulnerable
subpopulations; and
``(2) the exposure of children and other vulnerable
subpopulations to environmental pollutants.
``(b) Biennial Reports.--The Administrator, the Secretary of
Agriculture, and the Secretary of Health and Human Services shall
submit biennial reports to Congress describing actions taken to carry
out this section.
``SEC. 506. CHILDREN'S ENVIRONMENTAL HEALTH PROTECTION ADVISORY
COMMITTEE.
``(a) Establishment.--The Administrator shall establish a
Children's Environmental Health Protection Advisory Committee to assist
the Administrator in carrying out this title.
``(b) Composition.--The Committee shall be comprised of--
``(1) medical professionals specializing in pediatric
health;
``(2) educators;
``(3) representatives of community groups;
``(4) representatives of environmental and public health
nonprofit organizations;
``(5) industry representatives; and
``(6) representatives of State environmental and public
health departments.
``(c) Duties.--Not later than 2 years after the date of enactment
of this title and annually thereafter, the Committee shall develop a
list of standards that merit reevaluation by the Administrator in order
to better protect the health of children.
``(d) Termination.--The Committee shall terminate not later than 15
years after the date on which the Committee is established.
``SEC. 507. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary
to carry out this title.''.
SEC. 1403. CONFORMING AMENDMENT.
The table of contents in section 1 of the Toxic Substances Control
Act (15 U.S.C. prec. 2601) is amended by adding at the end the
following:
``TITLE V--ENVIRONMENTAL PROTECTION FOR CHILDREN AND OTHER VULNERABLE
SUBPOPULATIONS
``Sec. 501. Findings and policy.
``Sec. 502. Definitions.
``Sec. 503. Safeguarding children and other vulnerable subpopulations.
``Sec. 504. Safer environment for children.
``Sec. 505. Research to improve information on the effects of
environmental pollutants on children.
``Sec. 506. Children's environmental health protection advisory
committee.
``Sec. 507. Authorization of appropriations.''.
CHAPTER 2--SCHOOL ENVIRONMENTAL PROTECTION
SEC. 1411. SHORT TITLE.
This chapter may be cited as the ``School Environment Protection
Act''.
SEC. 1412. INTEGRATED PEST MANAGEMENT SYSTEMS FOR SCHOOLS.
The Federal Insecticide, Fungicide, and Rodenticide Act is
amended--
(1) by redesignating sections 33 and 34 (7 U.S.C. 136x,
136y) as sections 34 and 35, respectively; and
(2) by inserting after section 32 (7 U.S.C. 136w-7) the
following:
``SEC. 33. INTEGRATED PEST MANAGEMENT SYSTEMS FOR SCHOOLS.
``(a) Definitions.--In this section:
``(1) Board.--The term `Board' means the National School
Integrated Pest Management Advisory Board established under
subsection (c).
``(2) Contact person.--The term `contact person' means an
individual who is--
``(A) knowledgeable about integrated pest
management systems; and
``(B) designated by a local educational agency as
the contact person under subsection (f).
``(3) Crack and crevice treatment.--The term `crack and
crevice treatment' means the application of small quantities of
a pesticide in a building into openings such as those commonly
found at expansion joints, between levels of construction, and
between equipment and floors.
``(4) Emergency.--The term `emergency' means an urgent need
to mitigate or eliminate a pest that threatens the health or
safety of a student or staff member.
``(5) Fund.--The term `Fund' means the Integrated Pest
Management Trust Fund established under subsection (m).
``(6) Integrated pest management system.--The term
`integrated pest management system' means a managed pest
control system that--
``(A) eliminates or mitigates economic, health, and
aesthetic damage caused by pests;
``(B) uses--
``(i) integrated methods;
``(ii) site or pest inspections;
``(iii) pest population monitoring;
``(iv) an evaluation of the need for pest
control; and
``(v) 1 or more pest control methods,
including sanitation, structural repair,
mechanical and biological controls, other
nonchemical methods, and (if nontoxic options
are unreasonable and have been exhausted) least
toxic pesticides; and
``(C) minimizes--
``(i) the use of pesticides; and
``(ii) the risk to human health and the
environment associated with pesticide
applications.
``(7) Least toxic pesticides.--
``(A) In general.--The term `least toxic
pesticides' means--
``(i) boric acid and disodium octoborate
tetrahydrate;
``(ii) silica gels;
``(iii) diatomaceous earth;
``(iv) nonvolatile insect and rodent baits
in tamper resistant containers or for crack and
crevice treatment only;
``(v) microbe-based insecticides;
``(vi) botanical insecticides (not
including synthetic pyrethroids) without toxic
synergists;
``(vii) biological, living control agents;
and
``(viii) materials for which the inert
ingredients are nontoxic and disclosed.
``(B) Exclusions.--The term `least toxic
pesticides' does not include a pesticide that is
determined by the Administrator to be an acutely or
moderately toxic pesticide, carcinogen, mutagen,
teratogen, reproductive toxin, developmental
neurotoxin, endocrine disrupter, or immune system
toxin, and any application of the pesticide using a
broadcast spray, dust, tenting, fogging, or baseboard
spray application.
``(8) List.--The term `list' means the list of least toxic
pesticides established under subsection (d).
``(9) Local educational agency.--The term `local
educational agency' has the meaning given the term in section
14101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801).
``(10) Official.--The term `official' means the official
appointed by the Administrator under subsection (e).
``(11) Person.--The term `person' means--
``(A) an individual that attends, has children
enrolled in, works at, or uses a school;
``(B) a resident of a school district; and
``(C) any other individual that may be affected by
pest management activities of a school.
``(12) Pesticide.--
``(A) In general.--The term `pesticide' means any
substance or mixture of substances, including
herbicides and bait stations, intended for--
``(i) preventing, destroying, repelling, or
mitigating any pest;
``(ii) use as a plant regulator, defoliant,
or desiccant; or
``(iii) use as a spray adjuvant such as a
wetting agent or adhesive.
``(B) Exclusion.--The term `pesticide' does not
include antimicrobial agents such as disinfectants or
deodorizers used for cleaning products.
``(13) School.--The term `school' means a public--
``(A) elementary school (as defined in section
14101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 8801));
``(B) secondary school (as defined in section 14101
of that Act); or
``(C) kindergarten or nursery school.
``(14) School grounds.--
``(A) In general.--The term `school grounds' means
the area outside of the school buildings controlled,
managed, or owned by the school or school district.
``(B) Inclusions.--The term `school grounds'
includes a lawn, playground, sports field, and any
other property or facility controlled, managed, owned,
or leased for use for a school-sponsored event, by a
school.
``(15) Space spraying.--
``(A) In general.--The term `space spraying' means
application of a pesticide by discharge into the air
throughout an inside area.
``(B) Inclusion.--The term `space spraying'
includes the application of a pesticide using a
broadcast spray, dust, tenting, or fogging.
``(C) Exclusion.--The term `space spraying' does
not include crack and crevice treatment.
``(16) Staff member.--
``(A) In general.--The term `staff member' means an
employee of a school or local educational agency.
``(B) Inclusions.--The term `staff member' includes
an administrator, teacher, and other person that is
regularly employed by a school or local educational
agency.
``(C) Exclusions.--The term `staff member' does not
include--
``(i) an employee hired by a school, local
educational agency, or State to apply a
pesticide; or
``(ii) a person assisting in the
application of a pesticide.
``(17) State educational agency.--The term `State
educational agency' has the meaning given the term in section
14101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801).
``(18) Universal notification.--The term `universal
notification' means notice provided by a local educational
agency or school to--
``(A) all parents or guardians of children
attending the school; and
``(B) staff members of the school or local
educational agency.
``(b) Integrated Pest Management Systems.--
``(1) In general.--The Administrator, in consultation with
the Secretary of Education, shall establish a National School
Integrated Pest Management Advisory System to develop and
update uniform standards and criteria for implementing
integrated pest management systems in schools.
``(2) Implementation.--Not later than 18 months after the
date of enactment of this subsection, each local educational
agency of a school district shall develop and implement in each
of the schools in the school district an integrated pest
management system that complies with this section.
``(3) State programs.--If, on the date of enactment of this
section, a State maintains an integrated pest management system
that meets the standards and criteria established under
paragraph (1) (as determined by the Board), a local educational
agency in the State may continue to implement the system in a
school or in the school district in accordance with paragraph
(2).
``(4) Application to schools and school grounds.--The
requirements of this section that apply to a school, including
the requirement to implement an integrated management system,
apply to pesticide application in a school building and on the
school grounds.
``(5) Application of pesticides when schools in use.--A
school shall prohibit--
``(A) the application of a pesticide when a school
or school grounds are occupied or in use; or
``(B) the use of an area or room treated by a
pesticide, other than a least toxic pesticide, during
the 24-hour period beginning at the end of the
treatment.
``(c) National School Integrated Pest Management Advisory Board.--
``(1) In general.--The Administrator, in consultation with
the Secretary of Education, shall establish a National School
Integrated Pest Management Advisory Board to--
``(A) establish uniform standards and criteria for
developing integrated pest management systems and
policies in schools;
``(B) develop standards for the use of least toxic
pesticides in schools; and
``(C) advise the Administrator on any other aspects
of the implementation of this section.
``(2) Composition of board.--The Board shall be composed of
12 members and include 1 representative from each of the
following groups:
``(A) Parents.
``(B) Public health care professionals.
``(C) Medical professionals.
``(D) State integrated pest management system
coordinators.
``(E) Independent integrated pest management
specialists that have carried out school integrated
pest management programs.
``(F) Environmental advocacy groups.
``(G) Children's health advocacy groups.
``(H) Trade organization for pest control
operators.
``(I) Teachers and staff members.
``(J) School maintenance staff.
``(K) School administrators.
``(L) School board members.
``(3) Appointment.--Not later than 180 days after the date
of enactment of this section, the Administrator shall appoint
members of the Board from nominations received from Parent
Teacher Associations, school districts, States, and other
interested persons and organizations.
``(4) Term.--
``(A) In general.--A member of the Board shall
serve for a term of 5 years, except that the
Administrator may shorten the terms of the original
members of the Board in order to provide for a
staggered term of appointment for all members of the
Board.
``(B) Consecutive terms.--Subject to subparagraph
(C), a member of the Board shall not serve consecutive
terms unless the term of the member has been reduced by
the Administrator.
``(C) Maximum term.--In no event may a member of
the Board serve for more than 6 consecutive years.
``(5) Meetings.--The Administrator shall convene--
``(A) an initial meeting of the Board not later
than 60 days after the appointment of the members; and
``(B) subsequent meetings on a periodic basis, but
not less often than 2 times each year.
``(6) Compensation.--A member of the Board shall serve
without compensation, but may be reimbursed by the
Administrator for expenses (in accordance with section 5703 of
title 5, United States Code) incurred in performing duties as a
member of the Board.
``(7) Chairperson.--The Board shall select a Chairperson
for the Board.
``(8) Quorum.--A majority of the members of the Board shall
constitute a quorum for the purpose of conducting business.
``(9) Decisive votes.--Two-thirds of the votes cast at a
meeting of the Board at which a quorum is present shall be
decisive for any motion.
``(10) Administration.--The Administrator--
``(A) shall--
``(i) authorize the Board to hire a staff
director; and
``(ii) detail staff of the Environmental
Protection Agency, or allow for the hiring of
staff for the Board; and
``(B) subject to the availability of
appropriations, may pay necessary expenses incurred by
the Board in carrying out this subtitle, as determined
appropriate by the Administrator.
``(11) Responsibilities of the board.--
``(A) In general.--The Board shall provide
recommendations to the Administrator regarding the
implementation of this section.
``(B) List of least toxic pesticides.--Not later
than 1 year after the initial meeting of the Board, the
Board shall--
``(i) review implementation of this section
(including use of least toxic pesticides); and
``(ii) review and make recommendations to
the Administrator with respect to new proposed
active and inert ingredients or proposed
amendments to the list in accordance with
subsection (d).
``(C) Technical advisory panels.--
``(i) In general.--The Board shall convene
technical advisory panels to provide scientific
evaluations of the materials considered for
inclusion on the list.
``(ii) Composition.--A panel described in
clause (i) shall include experts on integrated
pest management, children's health, entomology,
health sciences, and other relevant
disciplines.
``(D) Special review.--
``(i) In general.--Not later than 2 years
after the initial meeting of the Board, the
Board shall review, with the assistance of a
technical advisory panel, pesticides used in
school buildings and on school grounds for
their acute toxicity and chronic effects,
including cancer, mutations, birth defects,
reproductive dysfunction, neurological and
immune system effects, and endocrine system
disruption.
``(ii) Determination.--The Board--
``(I) shall determine whether the
use of pesticides described in clause
(i) may endanger the health of
children; and
``(II) may recommend to the
Administrator restrictions on pesticide
use in school buildings and on school
grounds.
``(12) Requirements.--In establishing the proposed list,
the Board shall--
``(A) review available information from the
Environmental Protection Agency, the National Institute
of Environmental Health Studies, medical and scientific
literature, and such other sources as appropriate,
concerning the potential for adverse human and
environmental effects of substances considered for
inclusion in the proposed list; and
``(B) cooperate with manufacturers of substances
considered for inclusion in the proposed list to obtain
a complete list of ingredients and determine that such
substances contain inert ingredients that are generally
recognized as safe.
``(13) Petitions.--The Board shall establish procedures
under which individuals may petition the Board for the purpose
of evaluating substances for inclusion on the list.
``(14) Periodic review.--
``(A) In general.--The Board shall review each
substance included on the list at least once during
each 5-year period beginning on--
``(i) the date that the substance was
initially included on the list; or
``(ii) the date of the last review of the
substance under this subsection.
``(B) Submission to administrator.--The Board shall
submit the results of a review under subparagraph (A)
to the Administrator with a recommendation as to
whether the substance should continue to be included on
the list.
``(15) Confidentiality.--Any business sensitive material
obtained by the Board in carrying out this section shall be
treated as confidential business information by the Board and
shall not be released to the public.
``(d) List of Least Toxic Pesticides; Pesticide Review.--
``(1) In general.--The Board shall recommend to the
Administrator a list of least toxic pesticides (including the
pesticides described in subsection (a)(7)) that may be used as
least toxic pesticides, any restrictions on the use of the
listed pesticides, and any recommendations regarding
restrictions on all other pesticides, in accordance with this
section.
``(2) Procedure for evaluating pesticide use.--
``(A) List of least toxic pesticides.--
``(i) In general.--The Administrator shall
establish a list of least toxic pesticides that
may be used in school buildings and on school
grounds, including any restrictions on the use
of the pesticides, that is based on the list
prepared by the Board.
``(ii) Regulatory review.--The
Administrator shall initiate regulatory review
of all other pesticides recommended for
restriction by the Board.
``(B) Recommendations.--Not later than 1 year after
receiving the proposed list and restrictions, and
recommended restrictions on all other pesticides from
the Board, the Administrator shall--
``(i) publish the proposed list and
restrictions and all other proposed pesticide
restrictions in the Federal Register and seek
public comment on the proposed proposals; and
``(ii) after evaluating all comments
received concerning the proposed list and
restrictions, but not later than 1 year after
the close of the period during which public
comments are accepted, publish the final list
and restrictions in the Federal Register,
together with a discussion of comments
received.
``(C) Findings.--Not later than 2 years after
publication of the final list and restrictions, the
Administrator shall make a determination and issue
findings on whether use of registered pesticides in
school buildings and on school grounds may endanger the
health of children.
``(D) Notice and comment.--
``(i) In general.--Prior to establishing or
making amendments to the list, the
Administrator shall publish the proposed list
or any proposed amendments to the list in the
Federal Register and seek public comment on the
proposals.
``(ii) Recommendations.--The Administrator
shall include in any publication described in
clause (i) any changes or amendments to the
proposed list that are recommended to and by
the Administrator.
``(E) Publication of list.--After evaluating all
comments received concerning the proposed list or
proposed amendments to the list, the Administrator
shall publish the final list in the Federal Register,
together with a description of comments received.
``(e) Office of Pesticide Programs.--
``(1) Establishment.--The Administrator shall appoint an
official for school pest management within the Office of
Pesticide Programs of the Environmental Protection Agency to
coordinate the development and implementation of integrated
pest management systems in schools.
``(2) Duties.--The official shall--
``(A) coordinate the development of school
integrated pest management systems and policies;
``(B) consult with schools concerning--
``(i) issues related to the integrated pest
management systems of schools;
``(ii) the use of least toxic pesticides;
and
``(iii) the registration of pesticides, and
amendments to the registrations, as the
registrations and amendments relate to the use
of integrated pest management systems in
schools; and
``(C) support and provide technical assistance to
the Board.
``(f) Contact Person.--
``(1) In general.--Each local educational agency of a
school district shall designate a contact person for carrying
out an integrated pest management system in schools in the
school district.
``(2) Duties.--The contact person of a school district
shall--
``(A) maintain information about pesticide
applications inside and outside schools within the
school district, in school buildings, and on school
grounds;
``(B) act as a contact for inquiries about the
integrated pest management system;
``(C) maintain material safety data sheets and
labels for all pesticides that may be used in the
school district;
``(D) be informed of Federal and State chemical
health and safety information and contact information;
``(E) maintain scheduling of all pesticide usage
for schools in the school district;
``(F) maintain contact with Federal and State
integrated pest management system experts; and
``(G) obtain periodic updates and training from
State integrated pest management system experts.
``(3) Pesticide use data.--A local educational agency of a
school district shall--
``(A) maintain all pesticide use data for each
school in the school district; and
``(B) on request, make the data available to the
public for review.
``(g) Notice of Integrated Pest Management System.--
``(1) In general.--At the beginning of each school year,
each local educational agency or school of a school district
shall include a notice of the integrated pest management system
of the school district in school calendars or other forms of
universal notification.
``(2) Contents.--The notice shall include a description
of--
``(A) the integrated pest management system of the
school district;
``(B) any pesticide (including any least toxic
pesticide) or bait station that may be used in a school
building or on school grounds as part of the integrated
pest management system;
``(C) the name, address, and telephone number of
the contact person of the school district;
``(D) a statement that--
``(i) the contact person maintains the
product label and material safety data sheet of
each pesticide (including each least toxic
pesticide) and bait station that may be used by
a school in buildings or on school grounds;
``(ii) the label and data sheet is
available for review by a parent, guardian,
staff member, or student attending the school;
and
``(iii) the contact person is available to
parents, guardians, and staff members for
information and comment; and
``(E) the time and place of any meetings that will
be held under subsection (g)(1).
``(3) Use of pesticides.--A local educational agency or
school may use a pesticide during a school year only if the use
of the pesticide has been disclosed in the notice required
under paragraph (1) at the beginning of the school year.
``(4) New employees and students.--After the beginning of
each school year, a local educational agency or school of a
school district shall provide the notice required under this
subsection to--
``(A) each new staff member who is employed during
the school year; and
``(B) the parent or guardian of each new student
enrolled during the school year.
``(h) Use of Pesticides.--
``(1) In general.--If a local educational agency or school
determines that a pest in the school or on school grounds
cannot be controlled after having used the integrated pest
management system of the school or school district and least
toxic pesticides, the school may use a pesticide (other than
space spraying of the pesticide) to control the pest in
accordance with this subsection.
``(2) Prior notification of parents, guardians, and staff
members.--
``(A) In general.--Subject to paragraphs (4) and
(5), not less than 72 hours before a pesticide (other
than a least toxic pesticide) is used by a school, the
school shall provide to a parent or guardian of each
student enrolled at the school and each staff member of
the school, notice that includes--
``(i) the common name, trade name, and
Environmental Protection Agency registration
number of the pesticide;
``(ii) a description of the location of the
application of the pesticide;
``(iii) a description of the date and time
of application, except that, in the case of
outdoor pesticide applications, 1 notice shall
include 3 dates, in chronological order, that
the outdoor pesticide applications may take
place if the preceding date is canceled;
``(iv) a statement that `The Office of
Pesticide Programs of the United States
Environmental Protection Agency has stated:
`Where possible, persons who potentially are
sensitive, such as pregnant women and infants
(less than 2 years old), should avoid any
unnecessary pesticide exposure.';
``(v) a description of potential adverse
effects of the pesticide based on the material
safety data sheet of the pesticide;
``(vi) a description of the reasons for the
application of the pesticide;
``(vii) the name and telephone number of
the contact person of the school district; and
``(viii) any additional warning information
related to the pesticide.
``(B) Method of notification.--The school may
provide the notice required by subparagraph (A) by--
``(i) written notice sent home with the
student and provided to the staff member;
``(ii) a telephone call;
``(iii) direct contact; or
``(iv) written notice mailed at least 1
week before the application.
``(C) Reissuance.--If the date of the application
of the pesticide needs to be extended beyond the period
required for notice under this paragraph, the school shall reissue the
notice under this paragraph for the new date of application.
``(3) Posting of signs.--
``(A) In general.--Subject to paragraphs (4) and
(5), at least 72 hours before a pesticide (other than a
least toxic pesticide) is used by a school, the school
shall post a sign that provides notice of the
application of the pesticide--
``(i) in a prominent place that is in or
adjacent to the location to be treated; and
``(ii) at each entrance to the building or
school grounds to be treated.
``(B) Administration.--A sign required under
subparagraph (A) for the application of a pesticide
shall--
``(i) remain posted for at least 72 hours
after the end of the treatment;
``(ii) be at least 8 \1/2\ inches by 11
inches; and
``(iii) state the same information as that
required for prior notification of the
application under paragraph (2).
``(C) Outdoor pesticide applications.--
``(i) In general.--In the case of outdoor
pesticide applications, each sign shall include
3 dates, in chronological order, that the
outdoor pesticide application may take place if
the preceding date is canceled due to weather.
``(ii) Duration of posting.--A sign
described in clause (i) shall be posted after
an outdoor pesticide application in accordance
with subparagraph (B).
``(4) Administration.--
``(A) Applicators.--Paragraphs (2) and (3) shall
apply to any person that applies a pesticide in a
school or on school grounds, including a custodian,
staff member, or commercial applicator.
``(B) Time of year.--Paragraphs (2) and (3) shall
apply to a school--
``(i) during the school year; and
``(ii) during holidays and the summer
months, if the school is in use, with notice
provided to all staff members and the parents
or guardians of the students that are using the
school in an authorized manner.
``(5) Emergencies.--
``(A) In general.--A school may apply a pesticide
(other than a least toxic pesticide) in the school or
on school grounds without complying with paragraphs (2)
and (3) in an emergency, subject to subparagraph (B).
``(B) Subsequent notification of parents,
guardians, and staff members.--Not later than the
earlier of the time that is 24 hours after a school
applies a pesticide under this paragraph or on the
morning of the next school day, the school shall
provide to each parent or guardian of a student
enrolled at the school, and staff member of the school,
notice of the application of the pesticide for
emergency pest control that includes--
``(i) the information required for a notice
under paragraph (2)(A);
``(ii) a description of the problem and the
factors that qualified the problem as an
emergency that threatened the health or safety
of a student or staff member; and
``(iii) a description of the steps the
school will take in the future to avoid
emergency application of a pesticide under this
paragraph.
``(C) Method of notification.--The school may
provide the notice required by subparagraph (B) by--
``(i) written notice sent home with the
student and provided to the staff member;
``(ii) a telephone call; or
``(iii) direct contact.
``(D) Posting of signs.--A school applying a
pesticide under this paragraph shall post a sign
warning of the pesticide application in accordance with
paragraph (3).
``(E) Modification of integrated pest management
plans.--If a school in a school district applies a
pesticide under this paragraph, the local educational
agency of the school district shall modify the
integrated pest management plan of the school district
to minimize the future applications of pesticides under
this paragraph.
``(6) Drift of pesticides onto school grounds.--Each local
educational agency, State pesticide lead agency, and the
Administrator are encouraged to--
``(A) identify sources of pesticides that drift
from treated land to school grounds of the educational
agency; and
``(B) take steps necessary to create an indoor and
outdoor school environment that are protected from
pesticides described in subparagraph (A).
``(i) Meetings.--
``(1) In general.--Before the beginning of a school year,
at the beginning of each new calendar year, and at a regularly
scheduled meeting of a school board, each local educational
agency shall provide an opportunity for the contact person
designated under subsection (d) to receive and address public
comments regarding the integrated pest management system of the
school district.
``(2) Emergency meetings.--An emergency meeting of a school
board to address a pesticide application may be called under
locally appropriate procedures for convening emergency
meetings.
``(j) Investigations and Orders.--
``(1) In general.--Not later than 60 days after receiving a
complaint of a violation of this section, the Administrator
shall--
``(A) conduct an investigation of the complaint;
``(B) determine whether it is reasonable to believe
the complaint has merit; and
``(C) notify the complainant and the person alleged
to have committed the violation of the findings of the
Administrator.
``(2) Preliminary order.--If the Administrator determines
it is reasonable to believe a violation occurred, the
Administrator shall issue a preliminary order (that includes
findings) to impose the penalty described in subsection (j).
``(3) Objections to preliminary order.--
``(A) In general.--Not later than 30 days after the
preliminary order is issued under paragraph (2), the
complainant and the person alleged to have committed
the violation may--
``(i) file objections to the preliminary
order (including findings); and
``(ii) request a hearing on the record.
``(B) Final order.--If a hearing is not requested
within 30 days after the preliminary order is issued,
the preliminary order shall be final and not subject to
judicial review.
``(4) Hearing.--A hearing under this subsection shall be
conducted expeditiously.
``(5) Final order.--Not later than 120 days after the end
of the hearing, the Administrator shall issue a final order.
``(6) Settlement agreement.--Before the final order is
issued, the proceeding may be terminated by a settlement
agreement, which shall remain open, entered into by the
Administrator, the complainant, and the person alleged to have
committed the violation.
``(7) Costs.--
``(A) In general.--If the Administrator issues a
final order against a school or school district for
violation of this section and the complainant requests,
the Administrator may assess against the person against
whom the order is issued the costs (including
attorney's fees) reasonably incurred by the complainant
in bringing the complaint.
``(B) Amount.--The Administrator shall determine
the amount of the costs that were reasonably incurred
by the complainant.
``(8) Judicial review and venue.--
``(A) In general.--A person adversely affected by
an order issued after a hearing under this subsection
may file a petition for review not later than 60 days
after the date that the order is issued, in a district
court of the United States or other United States court
for any district in which a local educational agency or
school is found, resides, or transacts business.
``(B) Timing.--The review shall be heard and
decided expeditiously.
``(C) Collateral review.--An order of the
Administrator subject to review under this paragraph
shall not be subject to judicial review in a criminal
or other civil proceeding.
``(k) Civil Penalty.--
``(1) In general.--Any local educational agency, school, or
person that violates this section may be assessed a civil
penalty by the Administrator under subsections (h) and (i),
respectively, of not more than $10,000 for each offense.
``(2) Transfer to trust fund.--Except as provided in
subsection (i)(4)(B), civil penalties collected under paragraph
(1) shall be deposited in the Fund.
``(l) Integrated Pest Management Trust Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States a trust fund to be known as the
`Integrated Pest Management Trust Fund', consisting of--
``(A) amounts deposited in the Fund under
subsection (j)(2);
``(B) amounts transferred to the Secretary of the
Treasury for deposit into the Fund under paragraph (5);
and
``(C) any interest earned on investment of amounts
in the Fund under paragraph (3).
``(2) Expenditures from fund.--
``(A) In general.--Subject to subparagraph (B), on
request by the Administrator, the Secretary of the
Treasury shall transfer from the Fund to the
Administrator, without further appropriation, such
amounts as the Secretary determines are necessary to
provide funds to each State educational agency of a
State, in proportion to the amount of civil penalties
collected in the State under subsection (j)(1), to
carry out education, training, propagation, and
development activities under integrated pest management
systems of schools in the State to remedy the harmful
effects of actions taken by the persons that paid the
civil penalties.
``(B) Administrative expenses.--An amount not to
exceed 6 percent of the amounts in the Fund shall be
available for each fiscal year to pay the
administrative expenses necessary to carry out this
subsection.
``(3) Investment of amounts.--
``(A) In general.--The Secretary of the Treasury
shall invest such portion of the Fund as is not, in the
judgment of the Secretary of the Treasury, required to
meet current withdrawals. Investments may be made only
in interest-bearing obligations of the United States.
``(B) Acquisition of obligations.--For the purpose
of investments under subparagraph (A), obligations may
be acquired--
``(i) on original issue at the issue price;
or
``(ii) by purchase of outstanding
obligations at the market price.
``(C) Sale of obligations.--Any obligation acquired
by the Fund may be sold by the Secretary of the
Treasury at the market price.
``(D) Credits to fund.--The interest on, and the
proceeds from the sale or redemption of, any
obligations held in the Fund shall be credited to and
form a part of the Fund.
``(4) Transfers of amounts.--
``(A) In general.--The amounts required to be
transferred to the Fund under this subsection shall be
transferred at least monthly from the general fund of
the Treasury to the Fund on the basis of estimates made
by the Secretary of the Treasury.
``(B) Adjustments.--Proper adjustment shall be made
in amounts subsequently transferred to the extent prior
estimates were in excess of or less than the amounts
required to be transferred.
``(5) Acceptance and use of donations.--The Secretary may
accept and use donations to carry out paragraph (2)(A). Amounts
received by the Secretary in the form of donations shall be
transferred to the Secretary of the Treasury for deposit into
the Fund.
``(m) Employee Protection.--
``(1) In general.--No local educational agency, school, or
person may harass, prosecute, hold liable, or discriminate
against any employee or other person because the employee or
other person--
``(A) is assisting or demonstrating an intent to
assist in achieving compliance with this section
(including any regulation);
``(B) is refusing to violate or assist in the
violation of this section (including any regulation);
or
``(C) has commenced, caused to be commenced, or is
about to commence a proceeding, has testified or is
about to testify at a proceeding, or has assisted or
participated or is about to participate in any manner
in such a proceeding or in any other action to carry
out this section.
``(2) Complaints.--Not later than 1 year after an alleged
violation occurred, an employee or other person alleging a
violation of this section, or another person at the request of
the employee, may file a complaint with the Administrator.
``(3) Remedial action.--If the Administrator decides, on
the basis of a complaint, that a local educational agency,
school, or person violated paragraph (1), the Administrator
shall order the local educational agency, school, or person
to--
``(A) take affirmative action to abate the
violation;
``(B) reinstate the complainant to the former
position with the same pay and terms and privileges of
employment; and
``(C) pay compensatory damages, including back pay.
``(n) Grants.--
``(1) In general.--The Administrator, in consultation with
the Secretary of Education, shall provide grants to local
educational agencies to develop and implement integrated pest
management systems in schools in the school district of the
local educational agencies.
``(2) Amount.--The amount of a grant provided to a local
educational agency of a school district under paragraph (1)
shall be based on the ratio that the number of students
enrolled in schools in the school district bears to the total
number of students enrolled in schools in all school districts
in the United States.
``(o) Relationship to State and Local Requirements.--This section
(including regulations promulgated under this section) shall not
preempt requirements imposed on local educational agencies and schools
related to the use of integrated pest management by State or local law
(including regulations) that are more stringent than the requirements
imposed under this section.
``(p) Regulations.--Subject to subsection (m), the Administrator
shall promulgate such regulations as are necessary to carry out this
section.
``(q) Restriction on Pesticide Use.--Not later than 6 years after
the date of enactment of this section, no pesticide, other than a
pesticide that is defined as a least toxic pesticide under this
subsection, shall be used in a school or on school grounds unless the
Administrator has met the deadlines and requirements of this section.
``(r) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $7,000,000 for each of fiscal
years 2002 through 2006.''.
SEC. 1413. CONFORMING AMENDMENT.
The table of contents in section 1(b) of the Federal Insecticide,
Fungicide, and Rodenticide Act (7 U.S.C. prec. 121) is amended by
striking the items relating to sections 30 through 32 and inserting the
following:
``Sec. 30. Minimum requirements for training of maintenance applicators
and service technicians.
``Sec. 31. Environmental Protection Agency minor use program.
``Sec. 32. Department of Agriculture minor use program.
``(a) In general.
``(b)(1) Minor use pesticide data.
``(2) Minor Use Pesticide Data Revolving Fund.
``Sec. 33. Integrated pest management systems for schools.
``(a) Definitions.
``(1) Board.
``(2) Contact person.
``(3) Crack and crevice treatment.
``(4) Emergency.
``(5) Fund.
``(6) Integrated pest management system.
``(7) Least toxic pesticides.
``(8) List.
``(9) Local educational agency.
``(10) Official.
``(11) Person.
``(12) Pesticide.
``(13) School.
``(14) School grounds.
``(15) Space spraying.
``(16) Staff member.
``(17) State educational agency.
``(18) Universal notification.
``(b) Integrated pest management systems.
``(1) In general.
``(2) Implementation.
``(3) State programs.
``(4) Application to schools and school grounds.
``(5) Application of pesticides when schools in use.
``(c) National School Integrated Pest Management Advisory
Board.
``(1) In general.
``(2) Composition of Board.
``(3) Appointment.
``(4) Term.
``(5) Meetings.
``(6) Compensation.
``(7) Chairperson.
``(8) Quorum.
``(9) Decisive votes.
``(10) Administration.
``(11) Responsibilities of the Board.
``(12) Requirements.
``(13) Petitions.
``(14) Periodic review.
``(15) Confidentiality.
``(d) List of least toxic pesticides.
``(1) In general.
``(2) Procedure for evaluating pesticide use.
``(e) Office of Pesticide Programs.
``(1) Establishment.
``(2) Duties.
``(f) Contact person.
``(1) In general.
``(2) Duties.
``(3) Pesticide use data.
``(g) Notice of integrated pest management system.
``(1) In general.
``(2) Contents.
``(3) Use of pesticides.
``(4) New employees and students.
``(h) Use of pesticides.
``(1) In general.
``(2) Prior notification of parents, guardians, and staff
members.
``(3) Posting of signs.
``(4) Administration.
``(5) Emergencies.
``(6) Drift of pesticides onto school grounds.
``(i) Meetings.
``(1) In general.
``(2) Emergency meetings.
``(j) Investigations and orders.
``(1) In general.
``(2) Preliminary order.
``(3) Objections to preliminary order.
``(4) Hearing.
``(5) Final order.
``(6) Settlement agreement.
``(7) Costs.
``(8) Judicial review and venue.
``(k) Civil penalty.
``(1) In general.
``(2) Transfer to Trust Fund.
``(l) Integrated Pest Management Trust Fund.
``(1) Establishment.
``(2) Expenditures from Fund.
``(3) Investment of amounts.
``(4) Transfers of amounts.
``(5) Acceptance and use of donations.
``(m) Employee protection.
``(1) In general.
``(2) Complaints.
``(3) Remedial action.
``(n) Grants.
``(1) In general.
``(2) Amount.
``(o) Relationship to State and local requirements.
``(p) Regulations.
``(q) Restriction on pesticide use.
``(r) Authorization of appropriations.
``Sec. 34. Severability.
``Sec. 35. Authorization of appropriations.''.
SEC. 1414. EFFECTIVE DATE.
This chapter and the amendments made by this chapter take effect on
October 1, 2001.
TITLE II--HEALTHY START-SUPPORT FOR HEALTHY DEVELOPMENT
Subtitle A--Promotion of State and Local Support
SEC. 2001. STATE AND LOCAL PARENTING SUPPORT AND EDUCATION GRANT
PROGRAM.
(a) State Allotments.--
(1) In general.--The Secretary of Health and Human Services
(referred to in this section as the ``Secretary'') shall make
grants, from allotments made under paragraph (2), to eligible
States to support parenting support and education programs.
(2) Allotments.--From the funds appropriated under
subsection (h) for a fiscal year, the Secretary shall allot to
each State an amount that bears the same relationship to the
funds as the total number of children in the State bears to the
total number of children in all States, but no State shall
receive less than \1/2\ of 1 percent of the funds.
(3) Reservation.--
(A) In general.--For each State in which the
population of Indians (including Alaska Natives) is
more than 2 percent of the population of the State, the
Governor of the State shall reserve for Indian tribes 2
percent of the funds received through an allotment made
under paragraph (2).
(B) Distribution.--
(i) In general.--Except as described in
clause (ii), from the funds reserved under
subparagraph (A), the Governor shall allocate
to each Indian tribe in the State an amount
that bears the same relationship to the funds
as the total number of children in the tribe
bears to the total number of children in all
Indian tribes in the State.
(ii) Alaska.--The Governor of Alaska shall
allocate the funds reserved under subparagraph
(A) for Indian tribes in Alaska to the
nonprofit entities described in section
419(4)(B) of the Social Security Act (42 U.S.C.
619(4)(B)). The Governor shall allocate to each
region of the State, for such entities, an
amount that bears the same relationship to the
funds as the total number of Alaska Native
children in the region bears to the total
number of Alaska Native children in all regions
of the State.
(C) Definitions.--In this paragraph:
(i) Alaska native.--The term ``Alaska
Native'' has the meaning given the term
``Native'' in section 3 of the Alaska Native
Claims Settlement Act (43 U.S.C. 1602).
(ii) Indian; indian tribe.--The terms
`Indian' and `Indian tribe' have the meanings
given the terms in section 4 of the Indian
Self-Determination and Education Assistance Act
(25 U.S.C. 450b).
(b) State Parenting Support and Education Councils.--
(1) In general.--To be eligible to receive a grant under
subsection (a), the Governor of each State shall appoint or
designate an existing entity (as of the date of the appointment
or designation) to serve as a State Parenting Support and
Education Council (referred to in this section as the
``Council''), which shall include--
(A) representatives of parents;
(B) representatives of the State government;
(C) bipartisan representation from the State
legislature;
(D) representatives from communities; and
(E) representatives of children's organizations
interested in promoting parenting support and education
programs.
(2) Responsibilities.--
(A) Assessment.--The Council shall conduct a needs
and resources assessment of parenting support and
education programs in the State to--
(i) determine areas in which such programs
are lacking or inadequate; and
(ii) identify the additional programs that
are needed and the programs that require
additional resources.
(B) Grants.--On completion of the assessment, the
Council for a State may use the grant received by the
State under subsection (a) to make grants under
subsection (c) in a manner that takes into account the
results of the assessment.
(c) Grants to State and Local Agencies and Entities.--
(1) In general.--The Council may carry out a program under
which the Council makes grants to State agencies to provide
parenting support and education programs on a statewide basis,
or to local agencies (including schools) and nonprofit service
providers (including faith-based organizations) to provide
parenting support and education programs.
(2) Applications.--To be eligible to receive a grant under
this subsection, an agency or entity shall submit an
application to a Council at such time, in such manner, and
containing such information as the Council may require.
(d) Local Use of Funds.--An agency or entity that receives a grant
under subsection (c) may use the funds made available through the grant
to carry out parenting support and education programs that--
(1) provide parenting support to promote early brain
development and childhood development and education,
including--
(A) providing assistance to schools to offer
classroom instruction on brain stimulation, child
development, and early childhood education;
(B) distributing materials developed by entities
that reflect best parenting practices;
(C) developing and distributing referral
information on programs and services available to
children and families at the local level, including
information on eligibility criteria;
(D) conducting voluntary hospital visits for
postpartum women and in-home visits for families with
infants, toddlers, or newly adopted children to provide
hands-on training and one-on-one instruction on brain
stimulation, child development, and early childhood
education; and
(E) carrying out parenting education programs,
including training programs, with respect to best
parenting practices;
(2) provide parenting support for parents of adolescents
and youth, including providing funds for services and support
for parents and other caregivers of adolescents and youth being
served by a range of education, social service, mental health,
health, runaway, and homeless youth programs, which parenting
support--
(A) may be provided by the Boys and Girls Club, the
YMCA, the YWCA, entities that provide after school
programs, entities that provide 4-H programs, or other
community based organizations; and
(B) may include providing parent-caregiver support
groups, peer support groups, parent education classes,
seminars or discussion groups on problems facing
adolescents and youth, or advocates and mentors to help
parents understand and work with schools, the courts,
and various treatment programs; or
(3) provide parenting support and education resource
centers, including--
(A) centers that may serve as a single point of
contact for the provision to children and their
families of comprehensive services, which--
(i) shall include services available to
children from Federal, State, and local
government agencies and nonprofit
organizations; and
(ii) may include child care, respite care,
pediatric care, child abuse prevention
programs, nutrition programs, parent training,
infant and child cardiopulmonary resuscitation
programs, safety training, caregiver training
and education, and other related programs;
(B) centers that provide a national toll-free
parent hotline that provides 24-hour consultation and
advice, on an anonymous basis, including referrals to
local community-based services; and
(C) centers that provide respite care for parents
with children with special needs, single mothers, and
parents with at-risk youth.
(e) Reporting.--Each agency or entity that receives a grant under
this section shall prepare and submit to the Council every 2 years a
report describing the program that the agency or entity carried out
under this section, the number of parents and children served, and the
success of the program in supporting and educating parents using
specific performance measures.
(f) Administrative Costs.--Not more than 5 percent of the amount
made available through a grant received by a State under subsection (a)
may be used for the administrative expenses of the State Council in
implementing the grant program described in subsection (c).
(g) Supplement Not Supplant.--Funds appropriated pursuant to this
section shall be used to supplement and not supplant other Federal,
State, and local public funds expended for parenting support and
education programs.
(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $100,000,000 for each of fiscal
years 2002 and 2003, $200,000,000 for each of fiscal years 2004 and
2005, and $300,000,000 for fiscal year 2006.
(i) Definition.--In this section, the term ``child'' means an
individual who is younger than age 18.
Subtitle B--Support for Parents Caring for Children
SEC. 2101. SHORT TITLE.
This subtitle may be cited as the ``Family and Medical Leave
Fairness Act of 2001''.
SEC. 2102. FINDINGS.
Congress finds that--
(1) the Family and Medical Leave Act of 1993 (29 U.S.C.
2601 et seq.) has provided employees with a significant new
tool in balancing the needs of their families with the demands
of work;
(2) the Family and Medical Leave Act of 1993 has had a
minimal impact on business, and over 90 percent of private
employers covered by the Act experienced little or no cost and
a minimal, or positive, impact on productivity as a result of
the Act;
(3) although both employers at workplaces with large
numbers of employees and employers at workplaces with small
numbers of employees reported that compliance with the Family
and Medical Leave Act of 1993 involved very easy administration
and low costs, the smaller employers found it easier and less
expensive to comply with the Act than the larger employers;
(4) over three-quarters of worksites with under 50
employees covered by the Family and Medical Leave Act of 1993
report no cost increases or small cost increases associated
with compliance with the Act;
(5) in 1998, 27 percent of Americans needed to take family
or medical leave but were unable to do so, and 44 percent of
these employees did not take such leave because they would have
lost their jobs or their employers did not allow it;
(6) only 57 percent of the private workforce is currently
protected by the Family and Medical Leave Act of 1993; and
(7) 13,000,000 more private employees, or an additional 14
percent of the private workforce, would be protected by the
Family and Medical Leave Act of 1993 if the Act was expanded to
cover private employers with 25 or more employees.
SEC. 2103. COVERAGE OF EMPLOYEES.
Paragraphs (2)(B)(ii) and (4)(A)(i) of section 101 of the Family
and Medical Leave Act of 1993 (29 U.S.C. 2611(2)(B)(ii) and (4)(A)(i))
are amended by striking ``50'' each place it appears and inserting
``25''.
Subtitle C--Paid Family Leave
SEC. 2201. SHORT TITLE.
This subtitle may be cited as the ``Family Income to Respond to
Significant Transitions Insurance Act''.
SEC. 2202. FINDINGS.
Congress finds that--
(1) nearly every industrialized nation other than the
United States, and most developing nations, provide parents
with paid leave for infant care;
(2)(A) parents' interactions with their infants have a
major influence on the physical, cognitive, and social
development of the infants; and
(B) optimal development of an infant depends on a strong
attachment between an infant and the infant's parents;
(3) nearly \2/3\ of employees, who need to take family or
medical leave, but do not take the leave, report that they
cannot afford to take the leave;
(4) although some employees in the United States receive
wage replacement during periods of family or medical leave, the
benefit of wage replacement is not shared equally in the
workforce, as demonstrated by the fact that--
(A) employees with less education and lower income
are less likely to receive wage replacement than
employees with more education and higher salaries; and
(B) female employees, employees from racial
minority groups, and younger employees are slightly
less likely to receive wage replacement than male
employees, white employees, and older employees,
respectively;
(5) in order to cope financially with taking family or
medical leave, of persons taking that leave without full wage
replacement--
(A) 40 percent cut their leave short;
(B) 39 percent put off paying bills;
(C) 25 percent borrowed money; and
(D) 9 percent obtained public assistance;
(6) taking family or medical leave often drives employees
earning low wages into poverty, and 21 percent of such low-wage
employees who take family or medical leave without full wage
replacement resort to public assistance;
(7) studies document shortages in the supply of infant
care, and that the shortages are expected to worsen as welfare
reform measures are implemented; and
(8) compared to 30 years ago, families have experienced an
average decrease of 22 hours per week in time that parents
spend with their children.
SEC. 2203. PURPOSES.
The purposes of this subtitle are--
(1) to establish a demonstration program that supports the
efforts of States and political subdivisions to provide partial
or full wage replacement, often referred to as FIRST insurance,
to new parents so that the new parents are able to spend time
with a new infant or newly adopted child, and to other
employees; and
(2) to learn about the most effective mechanisms for
providing the wage replacement assistance.
SEC. 2204. DEFINITIONS.
In this subtitle:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor, acting after consultation with the Secretary of
Health and Human Services.
(2) Son or daughter; state.--The terms ``son or daughter''
and ``State'' have the meanings given the terms in section 101
of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611).
SEC. 2205. DEMONSTRATION PROJECTS.
(a) Grants.--The Secretary shall make grants to eligible entities
to pay for the Federal share of the cost of carrying out projects that
assist families by providing, through various mechanisms, wage
replacement for eligible individuals that are responding to caregiving
needs resulting from the birth or adoption of a son or daughter or
other family caregiving needs. The Secretary shall make the grants for
periods of 5 years.
(b) Eligible Entities.--To be eligible to receive a grant under
this section, an entity shall be a State or political subdivision of a
State.
(c) Use of Funds.--
(1) In general.--An entity that receives a grant under this
section may use the funds made available through the grant to
provide partial or full wage replacement as described in
subsection (a) to eligible individuals--
(A) directly;
(B) through an insurance program, such as a State
temporary disability insurance program or the State
unemployment compensation benefit program;
(C) through a private disability or other insurance
plan, or another mechanism provided by a private
employer; or
(D) through another mechanism.
(2) Administrative costs.--No entity may use more than 10
percent of the total funds made available through the grant
during the 5-year period of the grant to pay for the
administrative costs relating to a project described in
subsection (a).
(d) Eligible Individuals.--To be eligible to receive wage
replacement under subsection (a), an individual shall--
(1) meet such eligibility criteria as the eligible entity
providing the wage replacement may specify in an application
described in subsection (e); and
(2) be--
(A) an individual who is taking leave, under the
Family and Medical Leave Act of 1993 (29 U.S.C. 2601 et
seq.), other Federal, State, or local law, or a private
plan, for a reason described in subparagraph (A) or (B)
of section 102(a)(1) of the Family and Medical Leave
Act of 1993 (29 U.S.C. 2612(a)(1));
(B) at the option of the eligible entity, an
individual who--
(i) is taking leave, under that Act, other
Federal, State, or local law, or a private
plan, for a reason described in subparagraph
(C) or (D) of section 102(a)(1) of the Family
and Medical Leave Act of 1993 (29 U.S.C.
2612(a)(1)); or
(ii) leaves employment because the
individual has elected to care for a son or
daughter under age 1; or
(C) at the option of the eligible entity, an
individual with other characteristics specified by the
eligible entity in an application described in
subsection (e).
(e) Application.--To be eligible to receive a grant under this
section, an entity shall submit an application to the Secretary, at
such time, in such manner, and containing such information as the
Secretary may require, including, at a minimum--
(1) a plan for the project to be carried out with the
grant;
(2) information demonstrating that the applicant consulted
representatives of employers and employees, including labor
organizations, in developing the plan;
(3) estimates of the costs and benefits of the project;
(4)(A) information on the number and type of families to be
covered by the project, and the extent of such coverage in the
area served under the grant; and
(B) information on any criteria or characteristics that the
entity will use to determine whether an individual is eligible
for wage replacement under subsection (a), as described in
paragraphs (1) and (2)(C) of subsection (d);
(5) if the project will expand on State and private systems
of wage replacement for eligible individuals, information on
the manner in which the project will expand on the systems;
(6) information demonstrating the manner in which the wage
replacement assistance provided through the project will assist
families in which an individual takes leave as described in
subsection (d)(1); and
(7) an assurance that the applicant will participate in
efforts to evaluate the effectiveness of the project.
(f) Selection Criteria.--In selecting entities to receive grants
for projects under this section, the Secretary shall--
(1) take into consideration--
(A) the scope of the proposed projects;
(B) the cost-effectiveness, feasibility, and
financial soundness of the proposed projects;
(C) the extent to which the proposed projects would
expand access to wage replacement in response to family
caregiving needs, particularly for low-wage employees,
in the area served by the grant; and
(D) the benefits that would be offered to families
and children through the proposed projects; and
(2) to the extent feasible, select entities proposing
projects that utilize diverse mechanisms, including expansion
of State unemployment compensation benefit programs, and
establishment or expansion of State temporary disability
insurance programs, to provide the wage replacement.
(g) Federal Share.--
(1) In general.--The Federal share of the cost described in
subsection (a) shall be--
(A) 50 percent for the first year of the grant
period;
(B) 40 percent for the second year of that period;
(C) 30 percent for the third year of that period;
and
(D) 20 percent for each subsequent year.
(2) Non-federal share.--The non-Federal share of the cost
may be in cash or in kind, fairly evaluated, including plant,
equipment, and services and may be provided from State, local,
or private sources, or Federal sources other than this subtitle.
(h) Supplement Not Supplant.--Funds appropriated pursuant to the
authority of this subtitle shall be used to supplement and not supplant
other Federal, State, and local public funds and private funds expended
to provide wage replacement.
(i) Effect on Existing Rights.--Nothing in this subtitle shall be
construed to supersede, preempt, or otherwise infringe on the
provisions of any collective bargaining agreement or any employment
benefit program or plan that provides greater rights to employees than
the rights established under this subtitle.
SEC. 2206. EVALUATIONS AND REPORTS.
(a) Available Funds.--The Secretary shall use not more than 2
percent of the funds made available under section 2205 to carry out
this section.
(b) Evaluations.--The Secretary shall, directly or by contract,
evaluate the effectiveness of projects carried out with grants made
under section 2205, including conducting--
(1) research relating to the projects, including research
comparing--
(A) the scope of the projects, including the type
of insurance or other wage replacement mechanism used,
the method of financing used, the eligibility
requirements, the level of the wage replacement benefit
provided (such as the percentage of salary replaced),
and the length of the benefit provided, for the
projects;
(B) the utilization of the projects, including the
characteristics of individuals who benefit from the
projects, particularly low-wage workers, and factors
that determine the ability of eligible individuals to
obtain wage replacement through the projects; and
(C) the costs of and savings achieved by the
projects, including the cost-effectiveness of the
projects and their benefits for children and families;
(2) analysis of the overall need for wage replacement; and
(3) analysis of the impact of the projects on the overall
availability of wage replacement.
(c) Reports.--
(1) Initial report.--Not later than 3 years after the
beginning of the grant period for the first grant made under
section 2205, the Secretary shall prepare and submit to
Congress a report that contains information resulting from the
evaluations conducted under subsection (b).
(2) Subsequent reports.--Not later than 4 years after the
beginning of that grant period, and annually thereafter, the
Secretary shall prepare and submit to Congress a report that
contains--
(A) information resulting from the evaluations
conducted under subsection (b); and
(B) usage data for the demonstration projects, for
the most recent year for which data are available.
SEC. 2207. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this subtitle
$400,000,000 for fiscal year 2002 and such sums as may be necessary for
each subsequent fiscal year.
Subtitle D--Health Care for the Uninsured
SEC. 2301. FAMILYCARE COVERAGE OF PARENTS UNDER THE MEDICAID PROGRAM
AND TITLE XXI.
(a) Incentives To Implement FamilyCare Coverage.--
(1) Under medicaid.--
(A) Establishment of new optional eligibility
category.--Section 1902(a)(10)(A)(ii) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)) is
amended--
(i) by striking ``or'' at the end of
subclause (XVI);
(ii) by adding ``or'' at the end of
subclause (XVII); and
(iii) by adding at the end the following
new subclause:
``(XVIII) who are parents described
in subsection (k)(1), but only if the
State meets the conditions described in
subsection (k)(2);''.
(B) Conditions for coverage.--Section 1902 of such
Act is further amended by inserting after subsection
(j) the following new subsection:
``(k)(1)(A) Parents described in this paragraph are the parents of
an individual who is under 19 years of age (or such higher age as the
State may have elected under section 1902(l)(1)(D)) and who is eligible
and enrolled for medical assistance under subsection (a)(10)(A), if--
``(i) such parents are not otherwise eligible for such
assistance under such subsection; and
``(ii) the income of the family that includes such parents
does not exceed an income level specified by the State
consistent with paragraph (2)(B).
``(B) In this subsection, the term `parent' has the meaning given
the term `caretaker' for purposes of carrying out section 1931, and
such additional meaning as defined by the State and approved by the
Secretary.
``(2) The conditions for a State to provide medical assistance
under subsection (a)(10)(A)(ii)(XVIII) are as follows:
``(A) The State has a State child health plan under title
XXI which (whether implemented under such title or under this
title)--
``(i) has an income standard (or will establish an
income standard that is effective at the time
additional allotments are available to the State under
section 2104(d), as amended by the Leave No Child
Behind Act of 2001) for children that is at least 200
percent of the poverty line; and
``(ii) does not limit the acceptance of
applications, does not use a waiting list for children
who meet eligibility standards to qualify for
assistance, and provides benefits to all children
in the State who apply for and meet eligibility standards.
``(B) The income level specified under paragraph (1)(A)(ii)
for parents in a family exceeds the income level applicable
under section 1931 but does not exceed the highest income level
applicable to a child in the family under this title. A State
may not cover such parents with higher family income without
covering parents with a lower family income.
``(3) In the case of a parent described in paragraph (1) who is
also the parent of a child who is eligible and enrolled for child
health assistance under title XXI, the State may elect (on a uniform
basis) to cover all such parents under section 2111 or under subsection
(a)(10)(A).''.
(C) Enhanced matching funds available.--Section
1905 of such Act (42 U.S.C. 1396d) is amended--
(i) in the fourth sentence of subsection
(b), by striking ``or subsection (u)(3)'' and
inserting ``, (u)(3), or (u)(4)''; and
(ii) in subsection (u)--
(I) by redesignating paragraph (4)
as paragraph (6), and
(II) by inserting after paragraph
(3) the following new paragraph:
``(4) For purposes of subsection (b) and section 2105(a)(1):
``(A) FamilyCare parents.--The expenditures described in
this subparagraph are the following:
``(i) Parents.--Expenditures for medical assistance
made available under section 1931, or under section
1902(a)(10)(A)(ii)(XVIII) for parents described in
section 1902(k)(1), in a family the income of which
exceeds the income level applicable under such section
1931 to a family of the size involved as of January 1,
2000.
``(ii) Certain pregnant women.--Expenditures for
medical assistance for pregnant women under section
1902(l)(1)(A) in a family the income of which exceeds
the income level applicable under section 1902(l)(2)(A)
to a family of the size involved as of January 1,
2000.''.
(D) Appropriation from title xxi allotment for
certain medicaid expansion costs.--Section
2105(a)(1)(C) of such Act (42 U.S.C. 1397ee(a)(1)(C)))
is amended by inserting ``and for medical assistance
that is attributable to expenditures described in
section 1905(u)(4)(A)'' before the semicolon.
(E) Only counting enhanced portion for coverage of
additional pregnant women.--Section 1905 of such Act
(42 U.S.C. 1396d) is amended--
(i) in the fourth sentence of subsection
(b), by inserting ``(except in the case of
expenditures described in subsection (u)(5))''
after ``do not exceed'';
(ii) in subsection (u), by inserting after
paragraph (4) (as inserted by subparagraph
(C)), the following new paragraph:
``(5) For purposes of the fourth sentence of subsection (b) and
section 2105(a), the following payments under this title do not count
against a State's allotment under section 2104:
``(A) Regular fmap for expenditures for pregnant women with
income above january 1, 2000 income level and below 185 percent
of poverty.--The portion of the payments made for expenditures
described in paragraph (4)(A)(ii) that represents the amount
that would have been paid if the enhanced FMAP had not been
substituted for the Federal medical assistance percentage.''.
(2) Under title xxi.--
(A) FamilyCare coverage.--Title XXI of such Act is
amended by adding at the end the following new section:
``SEC. 2111. OPTIONAL FAMILYCARE COVERAGE OF PARENTS OF TARGETED LOW-
INCOME CHILDREN.
``(a) Optional Coverage.--Notwithstanding any other provision of
this title, a State child health plan may provide for coverage, through
an amendment to its State child health plan under section 2102, of
FamilyCare assistance for targeted low-income parents in accordance
with this section, but only if--
``(1) the State meets the conditions described in section
1902(k)(2); and
``(2) the State elects to provide medical assistance under
section 1902(a)(10)(A)(ii)(XVIII) and elects an applicable
income limit that is not lower than the limit described in
subsection (b)(2)(A).
``(b) Definitions.--For purposes of this section:
``(1) FamilyCare assistance.--The term `FamilyCare
assistance' has the meaning given the term child health
assistance in section 2110(a) as if any reference to targeted
low-income children were a reference to targeted low-income parents.
``(2) Targeted low-income parent.--The term `targeted low-
income parent' has the meaning given the term targeted low-
income child in section 2110(b) as if the reference to a child
were deemed a reference to a parent (as defined in paragraph
(3)) of the child; except that in applying such section--
``(A) there shall be substituted for the income
limit described in paragraph (1)(B)(ii)(I) the
applicable income limit in effect for a targeted low-
income child;
``(B) in paragraph (3), January 1, 2000, shall be
substituted for July 1, 1997; and
``(C) in paragraph (4), January 1, 2000, shall be
substituted for March 31, 1997.
``(3) Parent.--The term `parent' has the meaning given the
term `caretaker' for purposes of carrying out section 1931, and
such additional meaning as defined by the State and approved by
the Secretary.
``(4) Optional treatment of pregnant women as parents.--A
State child health plan may treat a pregnant woman who is not
otherwise a parent as a targeted low-income parent for purposes
of this section but only if the State has established an income
level under section 1902(l)(2)(A)(i) for pregnant women that is
at least 185 percent of the income official poverty line
described in such section.
``(c) References to Terms and Special Rules.--In the case of, and
with respect to, a State providing for coverage of FamilyCare
assistance to targeted low-income parents under subsection (a), the
following special rules apply:
``(1) Any reference in this title (other than subsection
(b)) to a targeted low-income child is deemed to include a
reference to a targeted low-income parent.
``(2) Any such reference to child health assistance with
respect to such parents is deemed a reference to FamilyCare
assistance.
``(3) In applying section 2103(e)(3)(B) in the case of a
family provided coverage under this section, the limitation on
total annual aggregate cost-sharing shall be applied to the
entire family.
``(4) In applying section 2110(b)(4), any reference to
`section 1902(l)(2) or 1905(n)(2) (as selected by a State)' is
deemed a reference to the income level applicable to parents
under section 1931, or, in the case of a pregnant woman
described in subsection (b)(4), the income level established
under section 1902(l)(2)(A).''.
(B) Additional allotment for states providing
familycare.--
(i) In general.--Section 2104 of such Act
(42 U.S.C. 1397dd) is amended by inserting
after subsection (c) the following new
subsection:
``(d) Additional Allotments for State Providing FamilyCare.--
``(1) Appropriation; total allotment.--For the purpose of
providing additional allotments to States electing to provide
FamilyCare coverage under section 2111, there is appropriated,
out of any money in the Treasury not otherwise appropriated--
``(A) for fiscal year 2002, $2,000,000,000;
``(B) for fiscal year 2003, $2,000,000,000;
``(C) for fiscal year 2004, $3,000,000,000;
``(D) for fiscal year 2005, $3,000,000,000;
``(E) for fiscal year 2006, $6,000,000,000;
``(F) for fiscal year 2007, $7,000,000,000;
``(G) for fiscal year 2008, $8,000,000,000;
``(H) for fiscal year 2009, $9,000,000,000;
``(I) for fiscal year 2010, $10,000,000,000; and
``(J) for fiscal year 2011 and each fiscal year
thereafter, the amount of the allotment provided under
this paragraph for the preceding fiscal year increased
by the percentage increase (if any) in the medical care
expenditure category of the Consumer Price Index for
All Urban Consumers (United States city average).
``(2) State and territorial allotments.--
``(A) In general.--In addition to the allotments
provided under subsections (b) and (c), subject to
paragraph (3), of the amount available for the
additional allotments under paragraph (1) for a fiscal
year, the Secretary shall allot to each State with a
State child health plan approved under this title and
which has elected to provide coverage under section
2111 during the fiscal year--
``(i) in the case of such a State other
than a commonwealth or territory described in
clause (ii), the same proportion as the
proportion of the State's allotment under
section 2104(b) (determined without regard to
section 2104(f)) to 98.95 percent of the total
amount of the allotments under such section for
such States eligible for an allotment under
this subparagraph for such fiscal year; and
``(ii) in the case of a commonwealth or
territory described in section 2104(c)(3), the
same proportion as the proportion of the
commonwealth's or territory's allotment under
section 2104(c) (determined without regard to
section 2104(f)) to 1.05 percent of the total
amount of the allotments under such section for
commonwealths and territories eligible for an
allotment under this subparagraph for such
fiscal year.
``(B) Redistribution of unused allotments.--In
applying subsection (f) with respect to additional
allotments made available under this subsection, the
procedures established under such subsection shall
ensure such additional allotments are only made
available to States which have elected to provide
coverage under section 2111.
``(3) Use of additional allotment.--Additional allotments
provided under this subsection are not available for amounts
expended before October 1, 2001. Such amounts are available for amounts
expended on or after such date for child health assistance for targeted
low-income children, as well as for FamilyCare assistance.''.
(ii) Conforming amendments.--Section 2104
of such Act (42 U.S.C. 1397dd) is further
amended--
(I) in subsection (a), by inserting
``subject to subsection (d),'' after
``under this section,'';
(II) in subsection (b)(1), by
inserting ``and subsection (d)'' after
``Subject to paragraph (4)''; and
(III) in subsection (c)(1), by
inserting ``subject to subsection
(d),'' after ``for a fiscal year,''.
(C) No cost-sharing for pregnancy-related
benefits.--Section 2103(e)(2) of such Act (42 U.S.C.
1397cc(e)(2)) is amended--
(i) in the heading, by inserting ``and
pregnancy-related services'' after ``preventive
services''; and
(ii) by inserting before the period at the
end the following: ``and for pregnancy-related
services''.
(3) Effective date.--The amendments made by this subsection
apply to items and services furnished on or after October 1,
2001.
(b) Rules for Implementation Beginning With Fiscal Year 2006.--
(1) Required coverage of familycare parents.--Section
1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C.
1396a(a)(10)(A)(i)) is amended--
(A) by striking ``or'' at the end of subclause
(VI);
(B) by striking the semicolon at the end of
subclause (VII) and insert ``, or''; and
(C) by adding at the end the following new
subclause:
``(VIII) who would be parents
described in subsection (k)(1) if the
income level specified in subsection
(k)(2)(B) were equal to at least 100
percent of the poverty line referred to
in such subsection;''.
(2) Expansion of availability of enhanced match under
medicaid for pre-chip expansions.--Paragraph (4) of section
1905(u) of such Act (42 U.S.C. 1396d(u)), as inserted by
subsection (a)(1)(C), is amended--
(A) by amending clause (ii) of subparagraph (A) to
read as follows:
``(ii) Certain pregnant women.--Expenditures for
medical assistance for pregnant women under section
1902(l)(1)(A) in a family the income of which exceeds
the 133 percent of the income official poverty line.'';
and
(B) by adding at the end the following new
subparagraphs:
``(B) Parents with income above 100 percent of poverty but
below january 1, 2000 income level.--The expenditures described
in this subparagraph are expenditures for medical assistance
made available for any parents described in section
1902(a)(10)(A)(i)(VIII), whose income exceeds 100 percent of
the income official poverty line applicable to a family of the
size involved but does not exceed the applicable income level
established under this title (under section 1931 or otherwise)
for a parent in a family of the size involved as of January 1,
2000.
``(C) Children in families with income above medicaid
mandatory level not previously described.--The expenditures
described in this subparagraph are expenditures (other than
expenditures described in paragraph (2) or (3)) for medical
assistance made available to any child who is eligible for
assistance under section 1902(a)(10)(A) and the income of whose
family exceeds the minimum income level required under
subsection 1902(l)(2) for a child of the age involved (treating
any child who is 19 or 20 years of age as being 18 years of
age).''.
(3) Offset of additional expenditures for enhanced match
for pre-chip expansion; elimination of offset for required
coverage of familycare parents.--
(A) In general.--Section 1905(u)(5) of such Act (42
U.S.C. 1396d(u)(5)), as added by subsection (a)(1)(E),
is amended--
(i) by amending subparagraph (A) to read as
follows:
``(A) Regular fmap for expenditures for pregnant women with
income above 133 percent of poverty.--The portion of the
payments made for expenditures described in paragraph
(4)(A)(ii) that represents the amount that would have been paid
if the enhanced FMAP had not been substituted for the Federal
medical assistance percentage.''; and
(ii) by adding at the end the following new
subparagraphs:
``(B) FamilyCare parents under 100 percent of poverty.--
Payments for expenditures described in paragraph (4)(A)(i) in
the case of parents whose income does not exceed 100 percent of
the income official poverty line applicable to a family of the
size involved.
``(C) Regular fmap for expenditures for parents with income
above 100 percent of poverty but below january 1, 2000 income
level.--The portion of the payments made for expenditures
described in paragraph (4)(B) that represents the amount that
would have been paid if the enhanced FMAP had not been
substituted for the Federal medical assistance percentage.
``(D) Regular fmap for expenditures for certain children in
families with income above medicaid mandatory level.--The
portion of the payments made for expenditures described in
paragraph (4)(C) that represents the amount that would have been paid
if the enhanced FMAP had not been substituted for the Federal medical
assistance percentage.''.
(B) Conforming amendments.--Section 2105(a)(1)(C)
of such Act (42 U.S.C. 1397ee(1)(1)(C)), as amended by
subsection (a)(1)(D), is amended by striking ``and for
medical assistance that is attributable to expenditures
described in section 1905(u)(4)(A)'' and inserting
``and for medical assistance that is attributable to
expenditures described in section 1905(u)(4), except as
provided in section 1905(u)(5)''.
(3) Effective date.--The amendments made by this subsection
apply as of October 1, 2005, to fiscal years beginning on or
after such date and to expenditures under the State plan on and
after such date.
(c) Making Title XXI Base Allotments Permanent.--Section 2104(a) of
such Act (42 U.S.C. 1397dd(a)) is amended--
(1) by striking ``and'' at the end of paragraph (9);
(2) by striking the period at the end of paragraph (10) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(11) for fiscal year 2008 and each fiscal year
thereafter, the amount of the allotment provided under this
subsection for the preceding fiscal year increased by the
percentage increase (if any) in the medical care expenditure
category of the Consumer Price Index for All Urban Consumers
(United States city average).''.
(d) Optional Application of Presumptive Eligibility Provisions to
Parents.--Section 1920A of such Act (42 U.S.C. 1396r-1a) is amended by
adding at the end the following new subsection:
``(e) In accordance with regulations, a State may elect to apply
the previous provisions of this section to provide for a period of
presumptive eligibility for medical assistance for a parent of a child
with respect to whom such a period is provided under this section.''.
(e) Conforming Amendments.--
(1) Eligibility categories.--Section 1905(a) of such Act
(42 U.S.C. 1396d(a)) is amended, in the matter before paragraph
(1)--
(A) by striking ``or'' at the end of clause (xi);
(B) by inserting ``or'' at the end of clause (xii);
and
(C) by inserting after clause (xii) the following
new clause:
``(xiii) who are parents described (or treated as if
described) in section 1902(k)(1),''.
(2) Income limitations.--Section 1903(f)(4) of such Act (42
U.S.C. 1396b(f)(4))--
(A) effective October 1, 2005, by inserting
``1902(a)(10)(A)(i)(VIII),'' after
``1902(a)(10)(A)(i)(VII),''; and
(B) by inserting ``1902(a)(10)(A)(ii)(XVII),
1902(a)(10)(A)(ii)(XVIII),'' after
``1902(a)(10)(A)(ii)(XVI),''.
(3) Conforming amendment relating to no waiting period for
certain women.--Section 2102(b)(1)(B) of such Act (42 U.S.C.
1397bb(b)(1)(B)) is amended--
(A) by striking ``, and'' at the end of clause (i)
and inserting a semicolon;
(B) by striking the period at the end of clause
(ii) and inserting ``; and''; and
(C) by adding at the end the following new clause:
``(iii) may not apply a waiting period
(including a waiting period to carry out
paragraph (3)(C)) in the case of targeted low-
income women who are pregnant.''.
Subtitle E--Awareness of Environmental Risks to Children
SEC. 2401. SHORT TITLE.
This subtitle may be cited as the ``Children's Environmental
Protection and Right to Know Act''.
SEC. 2402. FINDING.
Congress finds that requirements to disclose information about
environmental risks will improve health and safety by--
(1) prompting persons causing those risks to reduce the
risks; and
(2) enabling individuals to take actions to protect
themselves from those risks.
CHAPTER 1--CHILDREN'S ENVIRONMENTAL PROTECTION
Subchapter A--Disclosure of Industrial Releases That Present a
Significant Risk to Children
SEC. 2411. REPORTING REQUIREMENTS.
(a) In General.--Section 313(f) of the Emergency Planning and
Community Right-To-Know Act of 1986 (42 U.S.C. 11023(f)) is amended by
striking paragraph (1) and inserting the following:
``(1) In general.--
``(A) Toxic chemical threshold quantity.--The
threshold quantities for purposes of reporting toxic
chemicals under this section are as follows:
``(i) Toxic chemicals used at facilities.--
The threshold quantity of a toxic chemical used
at a facility shall be 10,000 pounds of the
toxic chemical per year.
``(ii) Manufactured or processed toxic
chemicals.--The threshold quantity of a toxic
chemical manufactured or processed at a
facility shall be--
``(I) 75,000 pounds of a toxic
chemical per year, for any toxic
chemical for which a toxic chemical
release form is required to be
submitted under this section on or
before July 1, 1988;
``(II) 50,000 pounds of a toxic
chemical per year, for any toxic
chemical for which a toxic chemical
release form is required to be
submitted during the period beginning
July 2, 1988, and ending July 1, 1989;
and
``(III) 25,000 pounds of a toxic
chemical per year, for any toxic
chemical for which any toxic release
form is required to be submitted on or
after July 2, 1989.
``(B) Toxic chemicals released from facilities.--
``(i) Toxic chemical threshold program.--
``(I) Establishment.--Not later
than 2 years after the date of
enactment of the Children's
Environmental Protection and Right to
Know Act, subject to clause (ii) and in
addition to the reporting thresholds
for the toxic chemicals specified in
subclause (II), the Administrator shall
establish a reporting threshold for
each toxic chemical that the
Administrator determines may present a
significant risk to children's health
or the environment due to, as
determined by the--
``(aa) the persistent use
or existence of the toxic
chemical in the environment;
``(bb) the potential of the
toxic chemical to bioaccumulate
or disrupt endocrine systems;
or
``(cc) other
characteristics of the toxic
chemical.
``(II) Toxic chemicals included.--
The Administrator shall establish a
reporting threshold under subclause (I)
for--
``(aa) lead;
``(bb) mercury;
``(cc) dioxin;
``(dd) cadmium;
``(ee) chromium; and
``(ff) each substance
identified as a bioaccumulative
chemical of concern in the
final rule promulgated by the
Administrator entitled `Water
Quality Guidance for the Great
Lakes System, Part III' (60
Fed. Reg. 15336 (March 23,
1995)).
``(ii) Threshold quantity.--The
Administrator shall establish by regulation
each threshold quantity for a toxic chemical
described in clause (i) at a level that, as
determined by the Administrator, will ensure
reporting of at least 80 percent of the
aggregate of all releases of the toxic chemical
from facilities that--
``(I) have 10 or more full-time
employees; and
``(II) are designated with any of
Standard Industrial Classification
Codes 20 through 39 or any of the
Standard Industrial Classification
Codes added under subsection
(b)(1)(B).''.
(b) Conforming Amendments.--
(1) Section 313 of the Emergency Planning and Community
Right-To-Know Act of 1986 (42 U.S.C. 11023) is amended--
(A) in subsections (a) and (b)(1)(A), by striking
``or otherwise used'' each place it appears and
inserting ``otherwise used, or released'';
(B) in subsection (c)--
(i) by striking ``are those chemicals'' and
inserting the following: ``are--
``(1) those chemicals'';
(ii) by striking the period at the end and
inserting ``; and''; and
(iii) by adding at the end the following:
``(2) dioxin and each other substance identified as a
bioaccumulative chemical of concern in the final rule
promulgated by the Administrator entitled `Water Quality
Guidance for the Great Lakes System, Part III' (60 Fed. Reg.
15336 (March 23, 1995)).''; and
(C) in the first sentence of subsection (f)(2), by
striking ``paragraph (1)' and inserting ``subparagraph
(A) or (B) of paragraph (1)''.
(2) Section 326(a)(1)(B) of the Emergency Planning and
Community Right-To-Know Act of 1986 (42 U.S.C. 11046(a)(1)(B))
is amended by adding at the end the following:
``(vii) Establish reporting thresholds for chemicals
referred to in section 313(f)(1)(C).''.
Subchapter B--Disclosure of High Health Risk Chemicals in Children's
Consumer Products
SEC. 2421. LIST OF TOXIC CHEMICALS.
(a) Definition of Eligible Product.--Section 2 of the Federal
Hazardous Substances Act (15 U.S.C. 1261) is amended by adding at the
end the following:
``(u) Eligible Product.--
``(1) In general.--Except as provided in paragraph (2), the
term `eligible product' means any toy or other article intended
for use by children.
``(2) Exception.--On and after the date that is 3 years
after the date of enactment of this subsection, the term
`eligible product' means any consumer product (as defined in
section 3 of the Consumer Product Safety Act (15 U.S.C.
2052)).''.
(b) List of Toxic Chemicals.--Section 3 of the Federal Hazardous
Substances Act (15 U.S.C. 1262) is amended by adding at the end the
following:
``(k) List of Toxic Chemicals.--
``(1) Definitions.--In this subsection:
``(A) Administrator.--The term `Administrator'
means the Administrator of the Environmental Protection
Agency.
``(B) Chairman.--The term `Chairman' means the
Chairman of the Consumer Product Safety Commission.
``(2) List.--Not later than 1 year after the date of
enactment of this subsection, the Administrator, acting jointly
with the Chairman, shall publish in the Federal Register a list
of substances or mixtures of substances that have been
determined by the Administrator and the Chairman to be toxic to
children due to their carcinogenic, neurotoxic, or reproductive
toxic effects.
``(3) Substances and information to be included.--The list
under that paragraph shall include--
``(A)(i) any chemical that has been identified by a
Federal agency as being a carcinogen, neurotoxin, or
reproductive toxin;
``(ii) each chemical identified as a Group A or
Group B carcinogen in the notice published by the
Administrator entitled `Regulation of Pesticides in
Food: Addressing the Delaney Paradox Policy Statement'
(53 Fed. Reg. 41118 (October 19, 1988));
``(iii) each chemical that adversely affects the
nervous system of children, as identified in criteria
documents of the National Institute for Occupational
Safety and Health;
``(iv) each chemical identified by the Consumer
Product Safety Commission as having sufficient evidence
to demonstrate--
``(I) carcinogenicity in humans or animals;
``(II) neurotoxicity in humans or animals;
``(III) human developmental toxicity; or
``(IV) male or female reproductive toxicity
in humans or animals;
``(v) each chemical regulated as a neurotoxin,
reproductive toxin, or developmental toxin by the
Administrator; and
``(vi) each chemical on the Biennial List of
Carcinogens submitted to Congress by the Secretary of
Health and Human Services; and
``(B) such reasonably available information on
adverse health effects of any substance or mixture of
substances as was used to determine whether to include
the substance or mixture on the list required under
paragraph (2).
``(4) Data.--In carrying out paragraph (3), the Secretary
and the Chairman shall require manufacturers and importers of
substances and mixtures of substances on the list required
under paragraph (2) to generate, and shall obtain from any
Federal, State, or local government, such data as are
sufficient to identify substances or mixtures of substances--
``(A) that are toxic within the meaning of
paragraph (2); and
``(B) to which infants and young children are
exposed.
``(l) Chemical Testing and Risk Assessment.--As soon as practicable
after the date of enactment of this subsection, the Administrator of
the Environmental Protection Agency, in consultation with experts in
pediatric toxicology and exposure, shall develop and implement new
short-term and long-term strategies for more comprehensive chemical
testing and risk assessment to ensure that risks of exposure to
children (including exposure to children in utero) are, to the maximum
extent practicable, fully understood.''.
SEC. 2422. REPORTING OF TOXIC CHEMICALS IN CONSUMER PRODUCTS.
(a) Reporting.--The Federal Hazardous Substances Act (15 U.S.C.
1261 et seq.) is amended by adding at the end the following:
``SEC. 25. REPORTING OF TOXIC CHEMICALS.
``(a) In General.--A manufacturer or importer of any eligible
product that contains, or is composed of, a substance or mixture of
substances listed under section 3(k) shall submit to the Commission a
report that describes each of the following:
``(1) The identity of the manufacturer or importer of the
eligible product.
``(2) A description of the eligible product (including any
model name and model number of the eligible product).
``(3) The identity of the substance or mixture of
substances listed under section 3(k) (including the
concentration of the substance or mixture in the eligible
product).
``(4) Any information known to the manufacturer or importer
that would support a determination that the eligible product is
not a misbranded hazardous substance or a banned hazardous
substance.
``(5) Such data as are generated by the manufacturer or
importer as are sufficient to identify any substances or
mixtures of substances manufactured or imported that are toxic
to children, as described in section 3(k)(2).
``(b) Publication.--The Commission shall annually publish in the
Federal Register, and make available to the public in an electronic
format, the information submitted under subsection (a).
``(c) Regulations.--The Commission shall promulgate such
regulations as necessary to carry out this section.
``(d) Application of Section.--Subsection (a) shall apply to a
substance or mixture of substances listed under section 3(k) beginning
on the date that is 1 year after the date on which the substance or
mixture of substances is listed under that section.''.
(b) Prohibited Acts.--
(1) In general.--Section 4 of the Federal Hazardous
Substances Act (15 U.S.C. 1263) is amended by adding at the end
the following:
``(l) The failure to report as required under section 25.''.
(2) Conforming amendment.--Section 5(c)(1) of the Federal
Hazardous Substances Act (15 U.S.C. 1264(c)(1)) is amended in
the second sentence by striking ``and (k)'' and inserting
``(k), and (l)''.
SEC. 2423. EXEMPTIONS.
(a) In General.--Section 3(c) of the Federal Hazardous Substances
Act (15 U.S.C. 1262(c)) is amended--
(1) by striking ``(c) If the Commission finds'' and
inserting the following:
``(c) Exemption From Requirements by Regulation.--
``(1) In general.--If the Commission determines''; and
(2) by adding at the end the following:
``(2) Additional regulations.--In addition to regulations
promulgated under paragraph (1), the Commission may promulgate
regulations exempting from the reporting requirements of
section 25 any substance or mixture of substances.
``(3) Applicability.--This subsection shall not apply to
any substance or mixture of substances unless the Commission
determines that the substance or mixture would not, by reason
of containing a substance or mixture of substances listed under
section 3(k), cause substantial personal injury or substantial
illness during, or as a proximate result of, any customary or
reasonably foreseeable handling or use (including reasonably
foreseeable ingestion by children).''.
(b) Conforming Amendment.--Section 3(d) of the Federal Hazardous
Substances Act (15 U.S.C. 1262(d)) is amended by striking ``adequate
requirements satisfying the purposes of'' and inserting ``requirements
at least as stringent as''.
SEC. 2424. PRIVATE CITIZEN ENFORCEMENT.
The Federal Hazardous Substances Act (15 U.S.C. 1261 et seq.) (as
amended by section 2422(a)) is amended by adding at the end the
following:
``SEC. 26. PRIVATE CITIZEN ENFORCEMENT.
``(a) In General.--Subject to subsection (c), any person other than
the Commission may bring a civil action in United States district
court--
``(1) against any person, for violation of subsection (a),
(b), or (l) of section 4; or
``(2) against the Commission, for a failure of the
Commission to perform any nondiscretionary act or duty under
the amendments made by the Children's Environmental Protection
and Right to Know Act.
``(b) Jurisdiction.--In the case of a civil action under subsection
(a)--
``(1) the United States district courts shall have
jurisdiction over the civil action without regard to the amount
in controversy or the citizenship of the parties; and
``(2) the court may apply any appropriate civil penalties
under section 5 or order the Commission to perform any
nondiscretionary act or duty that the Commission failed to
perform.
``(c) Actions Prohibited.--No action may be commenced under this
section unless--
``(1) not later than 60 days before the date on which the
action is filed, the plaintiff gives notice of the intent to
bring the action--
``(A) to the Commission; and
``(B) in the case of an action for a violation of
section 4, to the person that is alleged to have
violated that section; and
``(2) in the case of an action for a violation of section
4, the Commission has not commenced and is not diligently
pursuing a civil action on behalf of the United States.
``(d) Intervention.--In any action on behalf of the United States
following receipt of a notice under subsection (d)(1), the person
providing the notice may intervene as of right as a plaintiff in the
action.
``(e) Costs.--
``(1) In general.--Except as provided in paragraph (2), in
any action under subsection (a), the costs of litigation
(including reasonable attorney fees) may be awarded to--
``(A) any substantially prevailing plaintiff; and
``(B) in any action under subsection (c), the party
intervening under subsection (c), if that party
contributed significantly to the success of the
plaintiff.
``(2) Waiver.--The award of costs under paragraph (1) may
be fully or partially waived by a court if the court finds such
an award to be inappropriate under the circumstances.
``(f) Burden of Proof.--In any action under subsection (a)(1), if
the person alleged to have violated section 4 asserts that a substance
or mixture of substances is not a hazardous substance by reason of
containing a substance or mixture of substances listed under section
3(k), the burden of proof shall be the alleged violator to establish
that the substance or mixture of substances is not a hazardous
substance.
``(g) Penalty Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States a fund to be used in carrying out this
section (referred to in this section as the `Fund').
``(2) Deposit of assessed penalties.--A penalty assessed as
a result of a civil action under subsection (a) shall be
deposited in the Fund.
``(3) Use of funds.--On request by the Commission, the
Secretary of the Treasury shall transfer from the Fund to the
Commission such amounts as the Commission determines are
necessary to finance compliance and enforcement activities
under this Act.
``(4) Availability.--Amounts in the Fund shall remain
available for use by the Commission until expended, without
further appropriation.
``(5) Reports.--The Commission shall submit to Congress an
annual report that describes--
``(A) any funds deposited into the Fund during the
year for which the report is submitted (including the
sources of those funds); and
``(B) the actual and proposed uses of the funds.
``(h) Other Projects.--Notwithstanding subsection (g), in lieu of
being deposited in the Fund, any civil penalty assessed may, at the
option of the court (after consultation with the Commission), be used
to fund projects of the Commission that are--
``(1) consistent with this Act; and
``(2) designed to enhance public awareness of--
``(A) the health effects of toxic substances or
mixtures of toxic substances in eligible products; and
``(B) the potential for exposure of children to
toxic substances or mixtures of toxic substances in
eligible products.''.
CHAPTER 2--PUBLIC RIGHT TO KNOW ABOUT TOXIC CHEMICAL USE
SEC. 2431. DISCLOSURE OF TOXIC CHEMICAL USE BY COMPARABLE FACILITIES.
Section 313(b)(1)(B) of the Emergency Planning and Community Right-
To-Know Act of 1986 (42 U.S.C. 11023(b)(1)(B)) is amended--
(1) by striking ``(B) The Administrator'' and inserting the
following:
``(B) Modifications to covered facilities.--
``(i) Modification by the administrator.--
The Administrator''; and
(2) by adding at the end the following:
``(ii) Modifications beginning with 2002
reporting year.--Effective beginning with the
2002 reporting year, any facility identified by
the Standard Industrial Classification Codes
specified in the proposed rule entitled
`Addition of Facilities in Certain Industry
Sectors; Toxic Chemical Release Reporting;
Community Right-to-Know, Part II' (61 Fed. Reg.
33588 (June 27, 1996)) shall be subject to the
requirements of this section.
``(iii) Regulations to add additional
categories of facilities.--
``(I) In general.--Not later than 2
years after the date of enactment of
this clause, subject to subclause (II),
the Administrator shall promulgate
final regulations to require compliance
with this section by all additional
categories of facilities that use or
release toxic chemicals in volumes
similar to the volumes used or released
by facilities that are covered by this
section as of the date of enactment of
this clause.
``(II) Inapplicability to farms.--
Subclause (I) shall not apply to any
farm.''.
SEC. 2432. DISCLOSURE OF TOXIC CHEMICAL USE.
(a) In General.--Section 313 of the Emergency Planning and
Community Right-To-Know Act of 1986 (42 U.S.C. 11023) is amended--
(1) in the second sentence of subsection (a), by striking
``releases'' and inserting ``toxic chemical uses and
releases'';
(2) in subsection (g)(1)(C)--
(A) by inserting ``for the preceding calendar
year'' after ``items of information'';
(B) in clause (ii), by striking ``the preceding
calendar year'' and inserting ``the calendar year'';
and
(C) by adding at the end the following:
``(v)(I) The number of employees, including contractors, at
the facility.
``(II) The number of employees, including contractors, at
the facility that were exposed to the toxic chemical.
``(III) An estimate of the quantity and level of
occupational exposures to the toxic chemical.
``(vi)(I) The following materials accounting information:
``(aa) A description of the uses of the toxic
chemical at the facility.
``(bb) The starting inventory of the toxic chemical
at the facility.
``(cc) The quantity of the toxic chemical produced
at the facility.
``(dd) The quantity of the toxic chemical
transported into the facility and the mode of
transportation.
``(ee) The quantity of the toxic chemical consumed
at the facility.
``(ff) The quantity of the toxic chemical
transported out of the facility as products or in
products, and the quantity intended for--
``(AA) industrial use;
``(BB) commercial use;
``(CC) consumer use; and
``(DD) any additional category of use that
the Administrator may designate.
``(gg) The quantity of the toxic chemical entering
any waste stream (or otherwise released into the
environment) before recycling, treatment, or disposal.
``(hh) The ending inventory of the toxic chemical
at the facility.
``(ii) The quantity of the toxic chemical recycled
at the facility that is subsequently used at the
facility.
``(jj) The quantity of the toxic chemical used,
which shall be calculated with respect to a toxic
chemical by adding the quantities reported under items
(bb), (cc), (dd), and (ii) with respect to the toxic
chemical and subtracting the quantity reported under
subclause (hh) with respect to the toxic chemical.
``(II) Each quantity reported under this clause shall be
complete and verifiable by computations using conventional
materials accounting practices.
``(III) If the sum of the quantities reported under items
(bb), (cc), (dd), and (ii) of subclause (I) does not equal the
sum of the quantities reported under subclauses (ee), (ff),
(gg), and (hh) of that subclause, the form shall provide an
explanation of the difference in the sums.
``(vii) The quantity of the reduction, from the year prior
to the preceding calendar year, in the quantity of the toxic
chemical entering any waste stream (or otherwise released into
the environment) before recycling, treatment, or disposal (as
reported under section 6607(b)(1) of the Pollution Prevention
Act of 1990 (42 U.S.C. 13106(b)(1)), as a result of--
``(I) equipment or technology modifications;
``(II) process or procedure modifications;
``(III) reformulation or redesign of products;
``(IV) substitution of raw materials; and
``(V) improvements in housekeeping, maintenance,
training, or inventory control.
``(viii) The quantity of the reduction, from the year prior
to the preceding calendar year, in the quantity of the toxic
chemical used as determined under clause (vi)(I)(jj) as a
result of all activities specified in clause (vii).''; and
(3) in the second sentence of subsection (h), by inserting
``uses of toxic chemicals at covered facilities and'' after
``inform persons about''.
(b) Regulations.--Not later than 2 years after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall promulgate regulations concerning the
information to be provided under section 313(g)(1)(C)(v) of the
Emergency Planning and Community Right-To-Know Act of 1986 (42 U.S.C.
11023(g)(1)(C)(v)).
SEC. 2433. STREAMLINED DATA COLLECTION AND DISSEMINATION.
Section 313 of the Emergency Planning and Community Right-To-Know
Act of 1986 (42 U.S.C. 11023) is amended by adding at the end the
following:
``(m) Streamlined Data Collection and Dissemination.--
``(1) In general.--To enhance public access and use of
information resources, to facilitate compliance with reporting
requirements, and to promote multimedia permitting, reporting,
and pollution prevention, the Administrator shall, not later
than 3 years after the date of enactment of this subsection--
``(A) establish standard data formats for
management of information collected under this title
and other Federal environmental laws;
``(B) integrate information collected under this
title and other Federal environmental laws, using--
``(i) common company, facility, industry,
geographic, and chemical identifiers; and
``(ii) other identifiers as the
Administrator determines to be appropriate;
``(C) establish a system for indexing, locating,
and obtaining agency-held information about parent
companies, facilities, industries, chemicals,
geographic locations, ecological indicators, and the
regulatory status of chemicals and entities subject to
regulation under this title and other Federal
environmental laws;
``(D) consolidate all annual reporting
requirements, under this title and other Federal
environmental laws, for small business concerns (as
defined in section 3 of the Small Business Act (15
U.S.C. 632)) in a manner that allows reporting to 1
point of contact using 1 form or electronic reporting
system; and
``(E) provide members of the public 1 point of
contact for access to all publicly available
information collected by the Administrator for any 1
regulated entity.
``(2) Consolidation.--Not later than 5 years after the date
of enactment of this subsection, the Administrator shall
consolidate all annual reporting under this title and other
Federal environmental laws, for each entity subject to such
reporting, in a manner that allows reporting to 1 point of
contact using 1 form or electronic reporting system.
``(3) Understandable language.--In improving the means by
which the Administrator provides information to the public and
requires information be reported by regulated entities, as
required by paragraphs (1) and (2), the Administrator shall use
language and methods of communication that the Administrator
finds to be clear and understandable by a member of the public
of average intelligence, education, and experience.''.
SEC. 2434. TRADE SECRET PROTECTION.
Section 322 of the Emergency Planning and Community Right-To-Know
Act of 1986 (42 U.S.C. 11042) is amended--
(1) in subsection (a)(1), by adding at the end the
following:
``(C) Withholding of materials accounting
information.--
``(i) In general.--Subject to clause (ii),
any person required to submit materials
accounting information under section
313(g)(1)(C)(vi) may withhold any item of that
information (as determined under regulations
promulgated by the Administrator under
subsection (c)) if the person complies with
paragraph (2) with respect to the information
to be withheld.
``(ii) Limitation.--Clause (i) does not
provide authority to withhold any information
covered by the Pollution Prevention Act of 1990
(42 U.S.C. 13101 et seq.).'';
(2) in subsection (b)(4), by inserting ``or other
information withheld'' after ``The chemical identity'';
(3) in subsection (d)--
(A) in the first sentence of paragraph (1), by
inserting ``, or other information withheld under
subsection (a)(1),'' after ``toxic chemical''; and
(B) in paragraphs (2) through (4), by inserting
``or other information withheld'' after ``chemical
identity'' each place it appears;
(4) in subsection (f), by inserting ``or other information
withheld under subsection (a)(1)'' after ``chemical identity'';
and
(5) in subsection (h)--
(A) in paragraph (1), by inserting ``, or other
information withheld under subsection (a)(1),'' before
``is claimed as''; and
(B) in paragraph (2), by inserting ``, or other
information withheld under subsection (a)(1),'' after
``identity of a toxic chemical''.
Subtitle F--Promoting Responsible Fatherhood
CHAPTER 1--BLOCK GRANTS
SEC. 2501. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.
(a) In General.--Part D of title IV of the Social Security Act (42
U.S.C. 651 et seq.) is amended by adding at the end the following:
``SEC. 469C. BLOCK GRANTS TO STATES FOR MEDIA CAMPAIGNS PROMOTING
RESPONSIBLE FATHERHOOD.
``(a) Definitions.--In this section:
``(1) Broadcast advertisement.--The term `broadcast
advertisement' means a communication intended to be aired by a
television or radio broadcast station, including a
communication intended to be transmitted through a cable
channel.
``(2) Child at risk.--The term `child at risk' means each
young child whose family income does not exceed the poverty
line.
``(3) Poverty line.--The term `poverty line' has the
meaning given such term in section 673(2) of the Omnibus Budget
Reconciliation Act of 1981 (including any revision required by
such section) that is applicable to a family of the size
involved.
``(4) Printed or other advertisement.--The term `printed or
other advertisement' includes any communication intended to be
distributed through a newspaper, magazine, outdoor advertising
facility, mailing, or any other type of general public
advertising, but does not include any broadcast advertisement.
``(5) State.--The term `State' means each of the 50 States,
the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
``(6) Young child.--The term `young child' means an
individual under age 5.
``(b) State Certifications.--Not later than October 1 of each
fiscal year for which a State desires to receive an allotment under
this section, the chief executive officer of the State shall submit to
the Secretary a certification that the State will--
``(1) use such funds to promote the formation and
maintenance of married 2-parent families, strengthen fragile
families, and promote responsible fatherhood through media
campaigns conducted in accordance with the requirements of
subsection (d);
``(2) return any unused funds to the Secretary in
accordance with the reconciliation process under subsection
(e); and
``(3) comply with the reporting requirements under
subsection (f).
``(c) Payments to States.--For each of fiscal years 2002 through
2006, the Secretary shall pay to each State that submits a
certification under subsection (b), from any funds appropriated under
subsection (h), for the fiscal year an amount equal to the amount of
the allotment determined for the fiscal year under subsection (g).
``(d) Establishment of Media Campaigns.--Each State receiving an
allotment under this section for a fiscal year shall use the allotment
to conduct media campaigns as follows:
``(1) Conduct of media campaigns.--
``(A) Radio and television media campaigns.--
``(i) Production of broadcast
advertisements.--At the option of the State, to
produce broadcast advertisements that promote
the formation and maintenance of married 2-
parent families, strengthen fragile families,
and promote responsible fatherhood.
``(ii) Air time challenge program.--At the
option of the State, to establish an air time
challenge program under which the State may
spend amounts allotted under this section to
purchase time from a broadcast station to air a
broadcast advertisement produced under
subparagraph (A), but only if the State obtains
an amount of time of the same class and during
a comparable period to air the advertisement
using non-Federal contributions.
``(B) Other media campaigns.--At the option of the
State, to conduct a media campaign that consists of the
production and distribution of printed or other
advertisements that promote the formation and
maintenance of married 2-parent families, strengthen
fragile families, and promote responsible fatherhood.
``(2) Administration of media campaigns.--A State may
administer media campaigns funded under this section directly
or through grants, contracts, or cooperative agreements with
public agencies, local governments, or private entities,
including charitable and religious organizations.
``(3) Consultation with domestic violence assistance
centers.--In developing broadcast and printed advertisements to
be used in the media campaigns conducted under paragraph (1),
the State or other entity administering the campaign shall
consult with representatives of State and local domestic
violence centers.
``(4) Non-federal contributions.--In this subsection, the
term `non-Federal contributions' includes contributions by the
State and by public and private entities. Such contributions
may be in cash or in kind. Such term does not include any
amounts provided by the Federal Government, or services
assisted or subsidized to any significant extent by the Federal
Government, or any amount expended by a State before October 1,
2002.
``(e) Reconciliation Process.--
``(1) 3-year availability of amounts allotted.--Each State
that receives an allotment under this section shall return to
the Secretary any unused portion of the amount allotted to a
State under this section for a fiscal year not later than the
last day of the second succeeding fiscal year together with any
earnings on such unused portion.
``(2) Procedure for redistribution of unused allotments.--
The Secretary shall establish an appropriate procedure for
redistributing to States that have expended the entire amount
allotted under this section any amount that is--
``(A) returned to the Secretary by States under
paragraph (1); or
``(B) not allotted to a State under this section
because the State did not submit a certification under
subsection (b) by October 1 of a fiscal year.
``(f) Reporting Requirements.--
``(1) Monitoring and evaluation.--Each State receiving an
allotment under this section for a fiscal year shall monitor
and evaluate the media campaigns conducted using funds made
available under this section in such manner as the Secretary,
in consultation with the States, determines appropriate.
``(2) Annual reports.--Not less frequently than annually,
each State receiving an allotment under this section for a
fiscal year shall submit to the Secretary reports on the media
campaigns conducted under this section at such time, in such
manner, and containing such information as the Secretary may
require.
``(g) Amount of Allotments.--
``(1) In general.--Except as provided in paragraph (2), of
the amount appropriated for the purpose of making allotments
under this section for a fiscal year, the Secretary shall allot
to each State that submits a certification under subsection (b)
for the fiscal year an amount equal to the sum of--
``(A) the amount that bears the same ratio to 50
percent of such funds as the number of young children
in the State (as determined by the Secretary based on
the most recent March supplement to the Current
Population Survey of the Bureau of the Census before
the beginning of the calendar year in which such fiscal
year begins) as bears to the number of such children in
all States; and
``(B) the amount that bears the same ratio to 50
percent of such funds as the number of children at risk
in the State (as determined by the Secretary based on
the most recent March supplement to the Current
Population Survey of the Bureau of the Census before
the beginning of the calendar year in which such fiscal
year begins) bears to the number of such children in
all States.
``(2) Minimum allotments.--No allotment for a fiscal year
under this section shall be less than--
``(A) in the case of a State other than the
Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, 1 percent of the amount
appropriated for the fiscal year under subsection (h);
and
``(B) in the case of the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana
Islands, 0.5 percent of such amount.
``(3) Pro rata reductions.--The Secretary shall make such
pro rata reductions to the allotments determined under
paragraph (1) as are necessary to comply with the requirements
of paragraph (2).
``(h) Authorization of Appropriations.--There is authorized to be
appropriated $25,000,000 for each of fiscal years 2002 through 2006 for
purposes of making allotments to States under this section.''.
(b) Evaluation.--
(1) In general.--The Secretary of Health and Human Services
shall conduct an evaluation of the impact of the media
campaigns funded under section 469C of the Social Security Act,
as added by subsection (a).
(2) Report.--Not later than December 31, 2004, the
Secretary of Health and Human Services shall report to Congress
the results of the evaluation under paragraph (1).
(3) Authorization of appropriations.--There is authorized
to be appropriated $1,000,000 for fiscal year 2002 for purposes
of conducting the evaluation required under this subsection, to
remain available until expended.
SEC. 2502. RESPONSIBLE FATHERHOOD BLOCK GRANT.
(a) In General.--Part D of title IV of the Social Security Act (42
U.S.C. 651 et seq.), as amended by section 2501, is amended by adding
at the end the following:
``SEC. 469D. RESPONSIBLE FATHERHOOD BLOCK GRANT.
``(a) Definitions.--In this section:
``(1) Child at risk.--The term `child at risk' has the
meaning given such term in section 469C(a)(2).
``(2) Poverty line.--The term `poverty line' has the
meaning given such term in section 469C(a)(3).
``(3) State.--The term `State' has the meaning given such
term in section 469C(a)(5).
``(4) Young child.--The term `young child' has the meaning
given such term in section 469C(a)(6).
``(b) State Certifications.--Not later than October 1 of each
fiscal year for which a State desires to receive an allotment under
this section, the chief executive officer of the State shall submit to
the Secretary a certification that the State will--
``(1) comply with the matching requirements under
subsection (c)(2);
``(2) use such funds to promote responsible fatherhood in
accordance with the requirements of subsection (d);
``(3) use such funds to promote or sustain marriage in
accordance with subparagraph (A) or (B) of subsection (d)(2);
``(4) return any unused funds to the Secretary in
accordance with the reconciliation process under subsection
(e); and
``(5) comply with the reporting requirements under
subsection (f).
``(c) Payments to States.--
``(1) In general.--Subject to paragraph (2), for each of
fiscal years 2002 through 2006, the Secretary shall pay to each
State that submits a certification described in subsection (b),
from any funds appropriated under subsection (h), for the
fiscal year an amount equal to the amount of the allotment
determined under subsection (g).
``(2) Matching requirement.--The Secretary may not make a
payment to a State under paragraph (1) unless the State agrees
that, with respect to the costs to be incurred by the State in
supporting the programs described in subsection (d), the State
will make available non-Federal contributions in an amount
equal to 25 percent of the amount of Federal funds paid to the
State under such clause.
``(3) Non-federal contributions.--In this subsection, the
term `non-Federal contributions' includes contributions by the
State and by public and private entities. Such contributions
may be in cash or in kind. Such term does not include any
amounts provided by the Federal Government, or services
assisted or subsidized to any significant extent by the Federal
Government or any amount expended by a State before October 1,
2002.
``(d) Responsible Fatherhood Programs.--
``(1) Support of programs.--A State shall use the
allotments received under this section to support programs
described in paragraph (2) directly or through a grant,
contract, or cooperative agreement with any public agency,
local government, or private entity (including any charitable
or religious organization) with experience in administering
such a program.
``(2) Programs described.--Responsible Fatherhood programs
include programs that--
``(A) promote marriage through such activities as
counseling, mentoring, disseminating information about
the benefits of marriage and 2-parent involvement for
children, enhancing relationship skills, teaching on
how to control aggressive behavior, and disseminating
information on the causes of domestic violence and
child abuse;
``(B) sustain marriages through marriage
preparation programs, premarital counseling, marital
inventories, skills-based marriage education, financial
planning seminars, programs to help parents improve
their economic status, and divorce education and
reduction programs, including mediation and counseling;
``(C) promote responsible parenting through such
activities as counseling, mentoring, disseminating
information about good parenting practices, skills-
based parenting education, encouraging child support
payments, and other methods; and
``(D) help fathers and their families avoid or
leave cash welfare and improve their economic status by
providing such activities as work first services, job
search, job training, subsidized employment, job
retention, job enhancement, and encouraging education,
including career-advancing education, dissemination of
employment materials, coordination with existing
employment services such as Welfare to Work and
referrals to local employment training initiatives, and
other methods.
``(3) Targeted low-income participants.--Not less than 50
percent of the participants in each program supported under
paragraph (1) shall be--
``(A) parents of a child who is, or within the past
24 months has been, a recipient of assistance or
services under a State program funded under this part;
or
``(B) parents, including an expectant parent or a
married parent, whose income (after adjustment for
court-ordered child support paid or received) does not
exceed 150 percent of the poverty line.
``(4) Consultation with domestic violence assistance
centers.--Each State or entity administering a program
supported under paragraph (1) shall consult with
representatives of State and local domestic violence centers.
``(5) Supplement not supplant.--Amounts allotted to a State
under this section shall be used to supplement and not supplant
other Federal, State, or local funds provided to the State
under this part or any other provision of law that are used to
support programs and activities similar to the responsible
fatherhood program described in paragraph (2).
``(6) Restrictions on use.--No amount allotted under this
section may be used for court proceedings on matters of child
visitation or child custody, or for legislative advocacy.
``(e) Reconciliation Process.--
``(1) 3-year availability of amounts allotted.--Each State
that receives an allotment under this section shall return to
the Secretary any unused portion of the amount allotted to a
State under this section for a fiscal year not later than the
last day of the second succeeding fiscal year, together with
any earnings on such unused portion.
``(2) Procedure for redistribution of unused allotments.--
The Secretary shall establish an appropriate procedure for
redistributing to States that have expended the entire amount
allotted under this section any amount that is--
``(A) returned to the Secretary by States under
paragraph (1); or
``(B) not allotted to a State under this section
because the State did not submit a certification under
subsection (b) by October 1 of a fiscal year.
``(f) Reporting Requirements.--
``(1) Monitoring and evaluation.--Each State receiving an
allotment under this section shall monitor and evaluate the
programs supported using funds made available under this
section in such manner as the Secretary, in consultation with
the States, determines appropriate.
``(2) Annual reports.--Not less frequently than annually,
each State receiving an allotment under this section for a
fiscal year shall submit to the Secretary reports on the
programs supported under this section at such time, in such
manner, and containing such information as the Secretary may
reasonably require.
``(g) Amount of Allotments.--
``(1) In general.--Except as provided in paragraph (2), of
the amount appropriated for the purpose of making allotments
under this section for a fiscal year the Secretary shall allot
to each State that submits a certification under subsection (b)
for that fiscal year an amount equal to the sum of--
``(A) the amount that bears the same ratio to 50
percent of such funds as the number of young children
in the State (as determined by the Secretary based on
the most recent March supplement to the Current
Population Survey of the Bureau of the Census before
the beginning of the calendar year in which such fiscal
year begins) as bears to the number of such children in
all States; and
``(B) the amount that bears the same ratio to 50
percent of such funds as the number of children at risk
in the State (as determined by the Secretary based on
the most recent March supplement to the Current
Population Survey of the Bureau of the Census before
the beginning of the calendar year in which such fiscal
year begins) bears to the number of such children in
all States.
``(2) Minimum allotments.--No allotment for a fiscal year
under this section shall be less than--
``(A) in the case of a State other than the
Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, 1 percent of the amount
appropriated for the fiscal year under subsection (h);
and
``(B) in the case of the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana
Islands, 0.5 percent of such amount.
``(3) Pro rata reductions.--The Secretary shall make such
pro rata reductions to the allotments determined under
paragraph (1) as are necessary to comply with the requirements
of paragraph (2).
``(h) Authorization of Appropriations.--There is authorized to be
appropriated $50,000,000 for each of fiscal years 2002 through 2006 for
purposes of making allotments to States under this section.''.
(b) Evaluation and Report.--
(1) Evaluation.--
(A) In general.--The Secretary of Health and Human
Services (in this subsection referred to as the
``Secretary''), in consultation with the Secretary of
Labor, shall, directly or through a grant, contract, or
interagency agreement, conduct an evaluation of the
projects funded under section 469D of the Social
Security Act (as added by subsection (a)).
(B) Outcomes assessment.--The evaluation conducted
under subparagraph (A) shall assess, among other
outcomes selected by the Secretary, effects of the
projects on marriage, parenting, employment, earnings, payment of child
support, and incidence of domestic violence and child abuse.
(C) Project selection.--In selecting projects for
the evaluation, the Secretary should include projects
that are most likely to further the purposes of this
section.
(D) Random assignment.--In conducting the
evaluation, random assignment should be used wherever
possible.
(2) Report.--Not later than December 31, 2004, the
Secretary shall submit to Congress a report on the results of
the evaluation conducted under paragraph (1).
(3) Authorization of appropriations.--There is authorized
to be appropriated $1,000,000 for each of fiscal years 2002
through 2006 to carry out this subsection.
CHAPTER 2--NATIONAL CLEARINGHOUSE
SEC. 2511. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD PROGRAMS.
Part D of title IV of the Social Security Act (42 U.S.C. 651), as
amended by section 2502, is amended by adding at the end the following:
``SEC. 469E. MEDIA CAMPAIGN NATIONAL CLEARINGHOUSE FOR RESPONSIBLE
FATHERHOOD.
``(a) Media Campaign and National Clearinghouse.--
``(1) In general.--From any funds appropriated under
subsection (c), the Secretary shall contract with a nationally
recognized, nonprofit fatherhood promotion organization
described in subsection (b) to--
``(A) develop, promote, and distribute to
interested States, local governments, public agencies,
and private entities a media campaign that encourages
the appropriate involvement of both parents in the life
of any child of the parents, with a priority for
programs that specifically address the issue of
responsible fatherhood; and
``(B) develop a national clearinghouse to assist
States and communities in efforts to promote and
support marriage and responsible fatherhood by
collecting, evaluating, and making available (through
the Internet and by other means) to other States
information regarding the media campaigns established
under section 469C.
``(2) Coordination with domestic violence programs.--The
Secretary shall ensure that the nationally recognized nonprofit
fatherhood promotion organization with a contract under
paragraph (1) coordinates the media campaign developed under
subparagraph (A) of such paragraph and the national
clearinghouse developed under subparagraph (B) of such
paragraph with a national, State, or local domestic violence
program.
``(b) Nationally Recognized, Nonprofit Fatherhood Promotion
Organization Described.--The nationally recognized, nonprofit
fatherhood promotion organization described in this subsection is such
an organization that has at least 4 years of experience in--
``(1) designing and disseminating a national public
education campaign, including the production and successful
placement of television, radio, and print public service
announcements that promote the importance of responsible
fatherhood; and
``(2) providing consultation and training to community-
based organizations interested in implementing fatherhood
outreach, support, or skill development programs with an
emphasis on promoting married fatherhood as the ideal.
``(c) Authorization of Appropriations.--There is authorized to be
appropriated $2,000,000 for each of fiscal years 2002 through 2006 to
carry out this section.''.
TITLE III--HEAD START AND CHILD CARE
Subtitle A--Infants and Toddlers
SEC. 3001. RESERVATION OF HEAD START ACT FUNDS FOR INFANTS AND
TODDLERS.
Section 640(a)(6) of the Head Start Act (42 U.S.C. 9835(a)(6)) is
amended--
(1) by striking subparagraph (A) and inserting the
following:
``(A) Except as provided in subparagraph (B), from amounts reserved
and allotted pursuant to paragraphs (2) and (4), the Secretary shall
use, for grants for programs described in section 645A(a), a portion of
the combined total of such amounts equal to--
``(i) 10 percent of the funds appropriated pursuant to
section 639(a) for fiscal year 2002;
``(ii) 11 percent of such funds for fiscal year 2003;
``(iii) 12 percent of such funds for fiscal year 2004;
``(iv) 13 percent of such funds for fiscal year 2005;
``(v) 15 percent of such funds for fiscal year 2006;
``(vi) 20 percent of such funds for fiscal year 2007;
``(vii) 25 percent of such funds for fiscal year 2008;
``(viii) 30 percent of such funds for fiscal 2009;
``(ix) 35 percent of such funds for fiscal 2010; and
``(x) 40 percent of such funds for fiscal 2011.''; and
(2) in subparagraph (B)--
(A) by striking clause (i); and
(B) by redesignating clauses (ii) and (iii) as
clauses (i) and (ii), respectively.
SEC. 3002. RESERVATION OF CHILD CARE AND DEVELOPMENT BLOCK GRANT FUNDS
FOR INFANTS AND TODDLERS.
Section 658G of the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858e) is amended--
(1) by striking the heading and inserting the following:
``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE AND
ACTIVITIES FOR INFANTS AND TODDLERS.'';
(2) by inserting before ``A State'' the following:
``(a) Activities To Improve the Quality of Child Care.--''; and
(3) by adding at the end the following:
``(b) Activities for Infants and Toddlers.--A State that receives
funds to carry out this subchapter for a fiscal year shall use, for
activities that are designed to improve and expand child care for
children from birth through age 3, not less than--
``(1) 5 percent of such funds for fiscal year 2002;
``(2) 6 percent of such funds for fiscal year 2003;
``(3) 7 percent of such funds for fiscal year 2004;
``(4) 8 percent of such funds for fiscal year 2005;
``(5) 9 percent of such funds for fiscal year 2006; and
``(6) 10 percent of such funds for fiscal year 2007.''.
Subtitle B--Child Care Access
CHAPTER 1--IMPROVING ACCESS TO CHILD CARE
SEC. 3101. PAYMENT RATES.
Section 658E(c)(4) of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858c(c)(4)) is amended by striking subparagraph
(A) and inserting the following:
``(A) In general.--The State plan shall provide an
assurance that payment rates for the provision of child
care services for which assistance is provided under
this subchapter--
``(i) are set at not less than the rate at
the 100th percentile of the market rate for
child care in the State, calculated as a rate--
``(I) determined in accordance with
market surveys (that reflect variations
in the cost of care by locality)
conducted by the State not less often
than once every 2 years; and
``(II) adjusted at intervals
between such surveys to reflect
increases in the cost of living, in
such manner as the Secretary may
specify;
``(ii) are set at rates higher than the
rate at the 100th percentile of the market rate
for care of higher than average quality, such
as care by accredited providers, care that
includes the provision of comprehensive
services, care provided at unusual hours, care
for children with special needs, care for
children from low-income and rural communities,
and care of a type that is in short supply; and
``(iii) are set at rates that reflect
variations in the cost of providing care for
children of different ages and different types
of care.''.
CHAPTER 2--IMPROVEMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK GRANT
PROGRAM
SEC. 3111. AUTHORIZATION OF APPROPRIATIONS.
(a) Child Care and Development Block Grant Act of 1990.--Section
658B of the Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858), is amended to read as follows:
``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
subchapter--
``(1) $2,936,400,000 for fiscal year 2002;
``(2) $4,104,300,000 for fiscal year 2003;
``(3) $5,292,400,000 for fiscal year 2004;
``(4) $6,524,900,000 for fiscal year 2005;
``(5) $7,827,700,000 for fiscal year 2006;
``(6) $9,092,800,000 for fiscal year 2007;
``(7) $10,524,100,000 for fiscal year 2008;
``(8) $11,830,500,000 for fiscal year 2009;
``(9) $13,343,900,000 for fiscal year 2010; and
``(10) $14,991,200,000 for fiscal year 2011.''.
(b) Social Security Act.--Section 418(a)(3) of the Social Security
Act (42 U.S.C. 618(a)(3)) is amended by striking subparagraphs (A)
through (F) and inserting the following:
``(A) $3,989,100,000 for fiscal year 2002;
``(B) $5,575,600,000 for fiscal year 2003;
``(C) $7,189,800,000 for fiscal year 2004;
``(D) $8,864,100,000 for fiscal year 2005;
``(E) $10,634,000,000 for fiscal year 2006;
``(F) $12,352,500,000 for fiscal year 2007;
``(G) $14,297,000,000 for fiscal year 2008;
``(H) $16,071,800,000 for fiscal year 2009;
``(I) $18,127,600,000 for fiscal year 2010; and
``(J) $20,365,600,000 for fiscal year 2011.''.
SEC. 3112. STATE PLAN REQUIREMENTS.
Section 658E(c)(2) of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858c(c)(2)) is amended--
(1) by striking subparagraph (D) and inserting the
following:
``(D) Consumer education information.--Certify that
the State will collect and disseminate to parents of
eligible children and the general public, consumer
education information that will promote informed child
care choices, and describe how the State will inform
parents receiving assistance under a State program
funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) and low-income parents
about eligibility for assistance under this
subchapter.''; and
(2) by adding at the end the following new subparagraphs:
``(I) Availability of staff.--Describe how the
State will ensure that staff from the lead agency
described in section 658D will be available, at the
offices of the State program funded under part A of
title IV of the Social Security Act, to provide
information about eligibility for assistance under this
subchapter.
``(J) Eligibility redetermination.--Demonstrate
that each child that receives assistance under this
subchapter in the State will receive such assistance
for not less than 1 year before the State redetermines
the eligibility of the child under this subchapter.''.
SEC. 3113. DEFINITIONS.
Section 658P(4)(C) of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858n(4)(C)) is amended--
(1) in clause (i), by striking ``or'' at the end;
(2) in clause (ii), by striking the period and inserting
``; or''; and
(3) by adding at the end the following:
``(iii) is a foster child.''.
Subtitle C--Child Care Quality Improvement
CHAPTER 1--FOCUS ON COMMITTED AND UNDERPAID STAFF FOR CHILDREN'S SAKE
SEC. 3201. 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''.
SEC. 3202. 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 children 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 attainment of children, and the success and
attainment 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 full-time, full-year work, the average
annual wage for a child care provider was not much above the
1999 poverty line of $13,423 for a family consisting of a
parent and 2 children. Family child care providers earned even
less. The median weekly wage of a family child care provider in
1999 was $264, which equals an annual wage of $13,728.
(5) Despite the important role child care providers may
play in early child development and learning, on average, a
child care provider earns less in a year than a bus driver
($26,460), barber ($20,970), or janitor ($18,220).
(6) Employer-sponsored benefits are minimal for most child
care staff. Even for child care providers at 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 providers, child care
programs would have to charge parents fees that many parents
could not afford. For programs that serve low-income children
whose families 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 being 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 work for long periods in the child
care field. Approximately 30 percent of all teaching staff
employed at child care centers leaves employment with a child
care center each year.
(10) Child care providers, as well as the children,
families, and businesses that depend upon the providers, suffer
the consequences of inadequate compensation. This is true, with
few exceptions, for providers in all types of programs,
including subsidized and nonsubsidized programs, programs
offered by for-profit and nonprofit entities, and programs in
large and small child care settings.
(11) Because of the severe nationwide shortage of qualified
staff available for employment by child care programs, 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 increases in compensation, that range from
$350 to $6,500 annually.
(b) Purposes.--The purposes of this Act are--
(1) to establish the Child Care Provider Development and
Retention Grant Program and the Child Care Provider Scholarship
Program; and
(2) to help children receive the high quality child care
and early education the children need for positive cognitive
and social development, by rewarding and promoting the
retention of committed, qualified child care providers and by
providing financial assistance to improve the educational
qualifications of child care providers.
SEC. 3203. 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 for--
(A) a center-based child care provider that is
licensed or regulated under State or local 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 or local 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 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(4) In-kind contribution.--The term ``in-kind
contribution'' means payment of the costs of participation of
eligible 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
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 the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
SEC. 3204. FUNDS FOR CHILD CARE PROVIDER DEVELOPMENT AND RETENTION
GRANTS AND FOR CHILD CARE PROVIDER SCHOLARSHIPS.
(a) In General.--The Secretary may allot and distribute funds
appropriated to carry out this Act to eligible States and Indian tribes
and tribal organizations to pay for the Federal share of the cost of
making grants under sections 3207 and 3208 to eligible child care
providers.
(b) Allotments.--The funds shall be allotted and distributed by the
Secretary in accordance with section 3205, 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. 3205. 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, 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) 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 payments to
Indian tribes and tribal organizations with applications
approved under subsection (c), 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.
(b) Allotments to Remaining States.--
(1) General authority.--From the funds appropriated to
carry out this Act for any fiscal year and remaining after the
reservations made 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.--In this subsection, the term
``young child factor'' means the ratio of the number of
children under 5 years of age in the State to the number of
such children in all the States, as determined according to the
most recent annual estimates of population in the States, as
provided by the Bureau of the Census.
(3) School lunch factor.--In this subsection, the term
``school lunch factor'' means the ratio of the number of
children who are receiving free or reduced price lunches under
the school lunch program established under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.) in
the State to the number of such children in all the States, as
determined annually by the Department of Agriculture.
(4) Allotment percentage.--
(A) In general.--Except as provided in subparagraph
(B), for purposes of this subsection, the allotment
percentage for a State shall be 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.--For purposes of this subsection,
if an allotment percentage determined under
subparagraph (A)--
(i) is more than 1.2 percent, the allotment
percentage of that State shall be considered to
be 1.2 percent; and
(ii) is less than 0.8 percent, 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 after 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) Payments to Indian Tribes and Tribal Organizations.--
(1) Reservation of funds.--From amounts reserved under
subsection (a)(2), the Secretary may make grants to or enter
into contracts with 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.--To be eligible to
receive a grant or contract under this subsection, an Indian
tribe or tribal organization shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require. The application shall
provide that the applicant--
(A) will coordinate the programs and activities
involved, 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 the funds made available through the grant or
contract for, 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 in
proportion to the original 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 under this subsection 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 to States for which no reduction in
an allotment, or in a reallotment, is required by this
subsection, in proportion to the original allotments
made under subsection (b) to such States for such
fiscal year.
(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.--The Federal share of the cost of
making grants under sections 3207 and 3208, with funds allotted under
this section and distributed by the Secretary to a State, shall be--
(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
funds allotted under this section and distributed by the Secretary to a
State for a fiscal year--
(1) not less than 67.5 percent shall be available to the
State for grants under section 3207;
(2) not less than 22.5 percent shall be available to the
State for grants under section 3208; and
(3) not more than 10 percent shall be available to pay
administrative costs incurred by the State to carry out this
Act.
SEC. 3206. APPLICATION AND PLAN.
(a) Application.--To be eligible to receive a distribution of funds
allotted under section 3205, 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 for the State.
(2) Recruitment and retention of child care providers.--The
State plan shall describe how the lead agency will encourage
both the recruitment of eligible child care providers who are
new to the child care field and the retention of eligible 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 all eligible
child care providers in the State and notify the providers 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 3207 and
3208 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--
(i) select a variety of geographical areas,
determined by the State, that, collectively--
(I) include urban areas, suburban
areas, and rural areas; and
(II) are areas whose residents have
diverse income levels; and
(ii) give special consideration to
geographical areas selected under this
subparagraph for the preceding fiscal year.
(B) Selection of child care providers to receive
grants.--In making grants under section 3207, the State
may make grants only to eligible child care providers
in geographical areas selected under subparagraph (A),
but--
(i) may give special consideration in such
areas to eligible child care providers 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 child care providers 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 3207
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 under
subparagraph (A), the State shall provide an assurance
that the State will, for each fiscal year for which
such State receives a grant under section 3207--
(i) include in the report required by
section 3209, detailed information regarding--
(I) the continuity of employment of
the grant recipients as child care
providers with the same employer;
(II) with respect to each employer
that employed such a grant recipient,
whether such employer was accredited by
a recognized national or State
accrediting body during the period of
employment; and
(III) to the extent practicable and
available to the State, the rate and
frequency of employment turnover of
qualified child care providers
throughout such area,
during the 2-year period ending on the deadline
for submission of applications for grants under
section 3207 for that fiscal year; and
(ii) 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
the grant recipients as child care
providers with the same employer;
(II) with respect to each employer
that employed such a grant recipient,
whether such employer was accredited by
a recognized national or State
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
on which the grant to the State was made under
section 3207.
(5) Child care provider development and retention grant
program.--The State plan shall describe how the lead agency
will determine the amounts of grants to be made under section
3207 in accordance with the following requirements:
(A) Sufficient amounts.--The State shall
demonstrate that the amounts of individual grants to be
made under section 3207 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) Amounts to credentialed providers.--Such grants
made to child care 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) Amounts to providers with higher levels of
education.--The State shall make such grants in amounts
greater than $1,000 per year to child care providers
who have higher levels of education than the education
required for a credential such as a child development
associate credential, according to the following
requirements:
(i) Providers with baccalaureate degrees in
relevant fields.--A child care provider who has
a baccalaureate degree in the area of child
development or early child education shall
receive a grant under section 3207 in an amount
that is not less than twice the amount of
the grant that is made under section 3207 to a child care provider who
has an associate of the arts degree in the area of child development or
early child education.
(ii) Providers with associate degrees.--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
under section 3207 in an amount that is not
less than 150 percent of the amount of the
grant that is made under section 3207 to a
child care provider who has a child development
associate credential and is employed full-time
to provide child care services.
(iii) Other providers with baccalaureate
degrees.--
(I) In general.--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 under section 3207 in an amount
equal to the amount of the grant that
is made under section 3207 to a child
care provider who has an associate of
the arts degree in the area of child
development or early child education.
(II) Exception.--If a child care
provider who has such a 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 under
section 3207 in an amount equal to the
amount of the grant that is made under
section 3207 to a child care provider
who has a baccalaureate degree
specified in clause (i).
(D) Amounts to full-time providers.--The State
shall make a grant under section 3207 to a child care
provider who works full-time in a greater amount than
the amount of the grant that is made under section 3207
to a child care provider who works part-time, based on
the State definitions of full-time and part-time work.
(E) Amounts to experienced providers.--The State
shall make grants under section 3207 in progressively
larger amounts to child care providers to reflect the
number of years worked as child care providers.
(6) Distribution of child care provider scholarships.--The
State plan shall describe how the lead agency will make grants
for scholarships in compliance with section 3208 and shall
specify the types of educational and training programs for
which the 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 3208.
(8) Supplementation.--The State plan shall provide
assurances that amounts received by the State to carry out
sections 3207 and 3208 will be used only to supplement, and not
to supplant, Federal, State, and local funds otherwise
available to support existing services and activities (as of
the date the amounts are used) 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. 3207. CHILD CARE PROVIDER DEVELOPMENT AND RETENTION GRANT PROGRAM.
(a) In General.--A State that receives funds allotted under section
3205 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 (if the provider is employed on the date of
the eligibility determination in a child care program that
operates for less than a full calendar year) the program
equivalent of 1 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 the corresponding calendar year may
be treated as employment that satisfies the requirements of
this paragraph.
(c) Preservation of Eligibility.--A State shall not take into
consideration whether a child care provider is receiving, may receive,
or may be eligible to receive any funds under section 3208 for purposes
of selecting eligible child care providers to receive grants under this
section.
SEC. 3208. CHILD CARE PROVIDER SCHOLARSHIP PROGRAM.
(a) In General.--A State that receives funds allotted under section
3205 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.--To be eligible
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 (if the provider is employed on the date of the
eligibility determination in a child care program that operates for
less than a full calendar year) the program equivalent of 1 calendar
year, ending on the date of the application for such grant.
(c) Selection of Grantees.--For purposes of selecting eligible
child care providers to receive scholarship grants under this section
and determining the amounts of such grants, a State shall not--
(1) take into consideration whether a child care provider
is receiving, may receive, or may be eligible 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 provider any funds such
provider 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 amount of a scholarship grant made
under this section to an eligible child care provider shall be less
than the cost of the educational or training program for which such
grant is made.
(e) Annual Maximum Scholarship Grant Amount.--The maximum aggregate
dollar amount of a scholarship grant made by a State to an eligible
child care provider under this section in a fiscal year shall $1,500.
SEC. 3209. 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 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 3206 for the purpose of making such
grants;
(E) with respect to grants made under section
3207--
(i) the number of years grant recipients
have been employed as child care providers;
(ii) the level of training and education of
grant recipients;
(iii) 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;
(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
3203(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
3208--
(i) the number of years grant recipients
have been employed as child care providers;
(ii) the level of training and education of
grant recipients;
(iii) 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;
(iv) the types of settings described in
subparagraphs (A), (B), and (C) of section
3203(a)(1) in which grant recipients are
employed;
(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 educational and training
programs for which such grants were made; and
(G) such other information as the Secretary may
require by rule.
SEC. 3210. 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.
CHAPTER 2--STRENGTHENING QUALITY THROUGH THE CHILD CARE AND DEVELOPMENT
BLOCK GRANT
SEC. 3231. STATE PLAN.
Section 658E(c)(2) of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858c(c)(2)), as amended in section 3112, is
further amended by adding at the end the following:
``(K) Establishment of training requirements.--
Certify that there are requirements in effect within
the State, under State or local law, that are designed
to support the learning and development of children and
that are applicable to all child care providers that
provide services for which assistance is made available
under this subchapter. Such requirements shall include
requirements relating to preservice training in
childhood development.
``(L) Insuring the safety of children.--Certify
that there are requirements in effect within the State,
under State or local law, that require that evaluators
from an appropriate State or local agency make not less
than 2 unannounced visits annually to each child care
provider in the State that provides services for which
assistance is made available under this subchapter.''.
SEC. 3232. CHILD CARE QUALITY IMPROVEMENTS.
Section 658G of the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858e), as amended in section 3002, is further amended
by striking subsection (a) and inserting the following:
``(a) Activities To Improve the Quality of Child Care.--
``(1) In general.--A State that receives funds to carry out
this subchapter shall reserve and use not less than 12 percent
of the funds--
``(A) for 1 or more activities consisting of--
``(i) providing directly, or providing
financial assistance to private nonprofit
organizations or public entities (including
units of general purpose local government) for
the development, establishment, expansion,
operation, and coordination of, child care
resource and referral services;
``(ii) making grants or providing loans to
eligible child care providers to assist the
providers in meeting applicable State and local
child care standards and recognized
accreditation standards;
``(iii) improving the ability of State or
local government, as applicable, to monitor
compliance with, and to enforce, State and
local licensing and regulatory requirements
(including registration requirements)
applicable to child care providers;
``(iv) providing training and technical
assistance in areas relating to the provision
of child care services, such as training
relating to promotion of health and safety,
promotion of good nutrition, provision of first
aid, recognition of communicable diseases,
child abuse detection and prevention, and care
of children with special needs; and
``(v) improving salaries and other
compensation paid to full-time and part-time
staff who provide child care services for which
assistance is made available under this
subchapter; and
``(B) to support the system described in paragraph
(2).
``(2) Child care resource and referral system.--The State
shall use a portion of the funds reserved under paragraph (1)
to support a system of local child care resource and referral
organizations coordinated by a statewide lead child care
resource and referral organization. The local child care
resource and referral organizations shall--
``(A) provide parents in the State with information
and support concerning child care options in their
communities;
``(B) collect data on the supply of and demand for
child care in political subdivisions within the State;
``(C) develop links with the business community;
and
``(D) increase the supply and improve the quality
of child care in the State and in political
subdivisions in the State.''.
SEC. 3233. ADMINISTRATION AND ENFORCEMENT.
(a) In General.--Section 658I of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858g) is amended by adding at the
end the following:
``(c) Federal Administration Activities.--The Secretary shall use
the funds reserved under section 658O(a)(3)--
``(1) to support the establishment of a national data
system to develop statistics on the supply of, demand for, and
quality of child care, early education, and non-school-hours
programs, including use of data collected through child care
resource and referral organizations at the national, State, and
local levels;
``(2) to prepare and submit to Congress an annual report on
the supply of, demand for, and quality of child care, early
education, and non-school-hours programs, using data collected
through State and local child care resource and referral
organizations and other sources; and
``(3) to provide technical assistance to States to enable
the States to participate in carrying out the activities
described in paragraphs (1) and (2).''.
(b) Reservation.--Section 658O(a) of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858m(a)) is amended by adding at
the end the following:
``(3) Administration.--The Secretary shall reserve not more
than 2 percent of the amount appropriated under section 658B
for each fiscal year to carry out section 658I(c).''.
CHAPTER 3--CHILD CARE CENTERS IN FEDERAL FACILITIES
SEC. 3241. SHORT TITLE.
This chapter may be cited as the ``Federal Employees Child Care
Act''.
SEC. 3242. DEFINITIONS.
In this chapter (except as otherwise provided in section 3245):
(1) Administrator.--The term ``Administrator'' means the
Administrator of General Services.
(2) Child care accreditation entity.--The term ``child care
accreditation entity'' means a nonprofit private organization
or public agency that--
(A) is recognized by a State agency or by a
national organization that serves as a peer review
panel on the standards and procedures of public and
private child care or school accrediting bodies; and
(B) accredits a facility to provide child care on
the basis of--
(i) an accreditation or credentialing
instrument based on peer-validated research;
(ii) compliance with applicable State or
local licensing requirements, as appropriate,
for the facility;
(iii) outside monitoring of the facility;
and
(iv) criteria that provide assurances of--
(I) use of developmentally
appropriate health and safety standards
at the facility;
(II) use of developmentally
appropriate educational activities, as
an integral part of the child care
program carried out at the facility;
and
(III) use of ongoing staff
development or training activities for
the staff of the facility, including
related skills-based testing.
(3) Entity sponsoring a child care facility.--The term
``entity sponsoring a child care facility'' means a Federal
agency that operates, or an entity that enters into a contract
or licensing agreement with a Federal agency to operate, a
child care facility primarily for the use of Federal employees.
(4) Executive agency.--The term ``Executive agency'' has
the meaning given the term in section 105 of title 5, United
States Code, except that the term--
(A) does not include the Department of Defense and
the Coast Guard; and
(B) includes the General Services Administration,
with respect to the administration of a facility
described in paragraph (5)(B).
(5) Executive facility.--The term ``executive facility''--
(A) means a facility that is owned or leased by an
Executive agency; and
(B) includes a facility that is owned or leased by
the General Services Administration on behalf of a
judicial office.
(6) Federal agency.--The term ``Federal agency'' means an
Executive agency, a legislative office, or a judicial office.
(7) Judicial facility.--The term ``judicial facility''
means a facility that is owned or leased by a judicial office
(other than a facility that is also a facility described in
paragraph (5)(B)).
(8) Judicial office.--The term ``judicial office'' means an
entity of the judicial branch of the Federal Government.
(9) Legislative facility.--The term ``legislative
facility'' means a facility that is owned or leased by a
legislative office.
(10) Legislative office.--The term ``legislative office''
means an entity of the legislative branch of the Federal
Government.
(11) State.--The term ``State'' has the meaning given the
term in section 658P of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858n).
SEC. 3243. PROVIDING QUALITY CHILD CARE IN FEDERAL FACILITIES.
(a) Executive Facilities.--
(1) State and local licensing requirements.--
(A) In general.--Any entity sponsoring a child care
facility in an executive facility shall--
(i) comply with child care standards
described in paragraph (2) that are no less
stringent than applicable State or local
licensing requirements that are related to the
provision of child care in the State or
locality involved; or
(ii) obtain the applicable State or local
licenses, as appropriate, for the facility.
(B) Compliance.--Not later than 6 months after the
date of enactment of this Act--
(i) the entity shall comply, or make
substantial progress (as determined by the
Administrator) toward complying, with
subparagraph (A); and
(ii) any contract or licensing agreement
used by an Executive agency for the provision
of child care services in the child care
facility shall include a condition that the
child care be provided by an entity that
complies with the standards described in
subparagraph (A)(i) or obtains the licenses
described in subparagraph (A)(ii).
(2) Health, safety, and facility standards.--The
Administrator shall by regulation establish standards relating
to health, safety, facilities, facility design, and other
aspects of child care that the Administrator determines to be
appropriate for child care in executive facilities, and require
child care facilities, and entities sponsoring child care
facilities, in executive facilities to comply with the
standards. The standards shall include requirements that
child care facilities be inspected for, and be free of, lead hazards.
(3) Accreditation standards.--
(A) In general.--The Administrator shall issue
regulations requiring, to the maximum extent possible,
any entity sponsoring an eligible child care facility
(as defined by the Administrator) in an executive
facility to comply with standards of a child care
accreditation entity.
(B) Compliance.--The regulations shall require
that, not later than 3 years after the date of
enactment of this Act--
(i) the entity shall comply, or make
substantial progress (as determined by the
Administrator) toward complying, with the
standards; and
(ii) any contract or licensing agreement
used by an Executive agency for the provision
of child care services in the child care
facility shall include a condition that the
child care be provided by an entity that
complies with the standards.
(4) Evaluation and compliance.--
(A) In general.--The Administrator shall evaluate
the compliance, with the requirements of paragraph (1)
and the regulations issued pursuant to paragraphs (2)
and (3), as appropriate, of child care facilities, and
entities sponsoring child care facilities, in executive
facilities. The Administrator may conduct the
evaluation of such a child care facility or entity
directly, or through an agreement with another Federal
agency or private entity, other than the Federal agency
for which the child care facility is providing
services. If the Administrator determines, on the basis
of such an evaluation, that the child care facility or
entity is not in compliance with the requirements, the
Administrator shall notify the Executive agency.
(B) Effect of noncompliance.--On receipt of the
notification of noncompliance issued by the
Administrator, the head of the Executive agency shall--
(i) if the entity operating the child care
facility is the agency--
(I) not later than 2 business days
after the date of receipt of the
notification, correct any deficiencies
that are determined by the
Administrator to be life threatening or
to present a risk of serious bodily
harm;
(II) not later than 4 months after
the date of receipt of the
notification, develop and provide to
the Administrator a plan to correct any
other deficiencies in the operation of
the facility and bring the facility and
entity into compliance with the
requirements;
(III) provide the parents of the
children receiving child care services
at the child care facility and
employees of the facility with a
notification detailing the deficiencies
described in subclauses (I) and (II)
and actions that will be taken to
correct the deficiencies, and post a
copy of the notification in a
conspicuous place in the facility for 5
working days or until the deficiencies
are corrected, whichever is later;
(IV) bring the child care facility
and entity into compliance with the
requirements and certify to the
Administrator that the facility and
entity are in compliance, based on an
onsite evaluation of the facility
conducted by an individual with
expertise in child care health and
safety; and
(V) in the event that deficiencies
determined by the Administrator to be
life threatening or to present a risk
of serious bodily harm cannot be
corrected within 2 business days after
the date of receipt of the
notification, close the child care
facility, or the affected portion of
the facility, until the deficiencies
are corrected and notify the
Administrator of the closure; and
(ii) if the entity operating the child care
facility is a contractor or licensee of the
Executive agency--
(I) require the contractor or
licensee, not later than 2 business
days after the date of receipt of the
notification, to correct any
deficiencies that are determined by the
Administrator to be life threatening or
to present a risk of serious bodily
harm;
(II) require the contractor or
licensee, not later than 4 months after
the date of receipt of the
notification, to develop and provide to
the head of the agency a plan to
correct any other deficiencies in the
operation of the child care facility
and bring the facility and entity into
compliance with the requirements;
(III) require the contractor or
licensee to provide the parents of the
children receiving child care services
at the child care facility and
employees of the facility with a
notification detailing the deficiencies
described in subclauses (I) and (II)
and actions that will be taken to
correct the deficiencies, and to post a
copy of the notification in a
conspicuous place in the facility for 5
working days or until the deficiencies
are corrected, whichever is later;
(IV) require the contractor or
licensee to bring the child care
facility and entity into compliance
with the requirements and certify to
the head of the agency that the
facility and entity are in compliance,
based on an onsite evaluation of the
facility conducted by an independent
entity with expertise in child care
health and safety; and
(V) in the event that deficiencies
determined by the Administrator to be
life threatening or to present a risk
of serious bodily harm cannot be
corrected within 2 business days after
the date of receipt of the
notification, close the child care
facility, or the affected portion of
the facility, until the deficiencies
are corrected and notify the
Administrator of the closure, which
closure may be grounds for the
immediate termination or suspension of
the contract or license of the
contractor or licensee.
(C) Cost reimbursement.--The Executive agency shall
reimburse the Administrator for the costs of carrying
out subparagraph (A) for child care facilities located
in an executive facility other than an executive
facility of the General Services Administration. If an
entity is sponsoring a child care facility for 2 or
more Executive agencies, the Administrator shall
allocate the reimbursement costs with respect to the
entity among the agencies in a fair and equitable
manner, based on the extent to which each agency is
eligible to place children in the facility.
(5) Disclosure of prior violations to parents and facility
employees.--
(A) In general.--The Administrator shall issue
regulations that require that each entity sponsoring a
child care facility in an executive facility, upon
receipt by the child care facility or the entity (as
applicable) of a request by any individual who is--
(i) a parent of any child enrolled at the
facility;
(ii) a parent of a child for whom an
application has been submitted to enroll at the
facility; or
(iii) an employee of the facility;
shall provide to the individual the copies and
description described in subparagraph (B).
(B) Copies and description.--The entity shall
provide--
(i) copies of all notifications of
deficiencies that have been provided in the
past with respect to the facility under clause
(i)(III) or (ii)(III), as applicable, of
paragraph (4)(B); and
(ii) a description of the actions that were
taken to correct the deficiencies.
(b) Legislative Facilities.--
(1) Accreditation.--The Chief Administrative Officer of the
House of Representatives, the Librarian of Congress, and the
head of a designated entity in the Senate shall ensure that,
not later than 1 year after the date of enactment of this Act,
the corresponding child care facility obtains accreditation by
a child care accreditation entity, in accordance with the
accreditation standards of the entity.
(2) Regulations.--
(A) In general.--If the corresponding child care
facility does not maintain accreditation status with a
child care accreditation entity, the Chief
Administrative Officer of the House of Representatives,
the Librarian of Congress, or the head of the
designated entity in the Senate shall issue regulations
governing the operation of the corresponding child care
facility, to ensure the safety and quality of care of
children placed in the facility. The regulations shall
be no less stringent in content and effect than the
requirements of subsection (a)(1) and the regulations
issued by the Administrator under paragraphs (2) and
(3) of subsection (a), except to the extent that
appropriate administrative officers make the
determination described in subparagraph (B).
(B) Modification more effective.--The determination
referred to in subparagraph (A) is a determination, for
good cause shown and stated together with the
regulations, that a modification of the regulations
would be more effective for the implementation of the
requirements and standards described in subsection (a)
for the corresponding child care facilities,
and entities sponsoring the corresponding child care facilities, in
legislative facilities.
(3) Corresponding child care facility.--In this subsection,
the term ``corresponding child care facility'', used with
respect to the Chief Administrative Officer, the Librarian, or
the head of a designated entity described in paragraph (1),
means a child care facility operated by, or under a contract or
licensing agreement with, an office of the House of
Representatives, the Library of Congress, or an office of the
Senate, respectively.
(c) Judicial Branch Standards and Compliance.--
(1) State and local licensing requirements health, safety,
and facility standards, and accreditation standards.--The
Director of the Administrative Office of the United States
Courts shall issue regulations for child care facilities, and
entities sponsoring child care facilities, in judicial
facilities, which shall be no less stringent in content and
effect than the requirements of subsection (a)(1) and the
regulations issued by the Administrator under paragraphs (2)
and (3) of subsection (a), except to the extent that the
Director may determine, for good cause shown and stated
together with the regulations, that a modification of such
regulations would be more effective for the implementation of
the requirements and standards described in paragraphs (1),
(2), and (3) of subsection (a) for child care facilities, and
entities sponsoring child care facilities, in judicial
facilities.
(2) Evaluation and compliance.--
(A) Director of the administrative office of the
united states courts.--The Director of the
Administrative Office of the United States Courts shall
have the same authorities and duties with respect to
the evaluation of, compliance of, and cost
reimbursement for child care facilities, and entities
sponsoring child care facilities, in judicial
facilities as the Administrator has under subsection
(a)(4) with respect to the evaluation of, compliance
of, and cost reimbursement for such centers and
entities sponsoring such centers, in executive
facilities.
(B) Head of a judicial office.--The head of a
judicial office shall have the same authorities and
duties with respect to the compliance of and cost
reimbursement for child care facilities, and entities
sponsoring child care facilities, in judicial
facilities as the head of an Executive agency has under
subsection (a)(4) with respect to the compliance of and
cost reimbursement for such centers and entities
sponsoring such centers, in executive facilities.
(d) Application.--Notwithstanding any other provision of this
section, if 8 or more child care facilities are sponsored in facilities
owned or leased by an Executive agency, the Administrator shall
delegate to the head of the agency the evaluation and compliance
responsibilities assigned to the Administrator under subsection
(a)(4)(A).
(e) Technical Assistance, Studies, and Reviews.--The Administrator
may provide technical assistance, and conduct and provide the results
of studies and reviews, for Executive agencies, and entities sponsoring
child care facilities in executive facilities, on a reimbursable basis,
in order to assist the entities in complying with this section. The
Chief Administrative Officer of the House of Representatives, the
Librarian of Congress, the head of the designated Senate entity
described in subsection (b), and the Director of the Administrative
Office of the United States Courts, may provide technical assistance,
and conduct and provide the results of studies and reviews, or request
that the Administrator provide technical assistance, and conduct and
provide the results of studies and reviews, for legislative offices and
judicial offices, as appropriate, and entities operating child care
facilities in legislative facilities or judicial facilities, as
appropriate, on a reimbursable basis, in order to assist the entities
in complying with this section.
(f) Interagency Council.--
(1) Composition.--The Administrator shall establish an
interagency council, comprised of--
(A) representatives of all Executive agencies
described in subsection (d) and other Executive
agencies at the election of the heads of the agencies;
(B) a representative of the Chief Administrative
Officer of the House of Representatives, at the
election of the Chief Administrative Officer;
(C) a representative of the head of the designated
Senate entity described in subsection (b), at the
election of the head of the entity;
(D) a representative of the Librarian of Congress,
at the election of the Librarian; and
(E) a representative of the Director of the
Administrative Office of the United States Courts, at
the election of the Director.
(2) Functions.--The council shall facilitate cooperation
and sharing of best practices, and develop and coordinate
policy, regarding the provision of child care, including the
provision of areas for nursing mothers and other lactation
support facilities and services, in the Federal Government.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $900,000 for fiscal year 2002
and such sums as may be necessary for each subsequent fiscal year.
SEC. 3244. FEDERAL CHILD CARE EVALUATION.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Administrator and the Director of the Office of
Personnel Management shall jointly prepare and submit to Congress a
report that evaluates child care provided by entities sponsoring child
care facilities in executive facilities, legislative facilities, or
judicial facilities.
(b) Contents.--The evaluation shall contain, at a minimum--
(1) information on the number of children receiving child
care described in subsection (a), analyzed by age, including
information on the number of those children who are age 6
through 12;
(2) information on the number of families not using child
care described in subsection (a) because of the cost of the
child care; and
(3) recommendations for improving the quality and cost-
effectiveness of child care described in subsection (a),
including recommendations of options for creating an optimal
organizational structure and using best practices for the
delivery of the child care.
SEC. 3245. CHILD CARE SERVICES FOR FEDERAL EMPLOYEES.
(a) In General.--In addition to services authorized to be provided
by an agency of the United States pursuant to section 616 of the Act of
December 22, 1987 (40 U.S.C. 490b), an Executive agency that provides
or proposes to provide child care services for Federal employees may
use agency funds to provide the child care services, in a facility that
is owned or leased by an Executive agency, or through a contractor, for
civilian employees of the agency.
(b) Affordability.--Funds so used with respect to any such facility
or contractor shall be applied to improve the affordability of child
care for lower income Federal employees using or seeking to use the
child care services offered by the facility or contractor.
(c) Regulations.--The Administrator after consultation with the
Director of the Office of Personnel Management, shall, within 180 days
after the date of enactment of this Act, issue regulations necessary to
carry out this section.
(d) Definition.--For purposes of this section, the term ``Executive
agency'' has the meaning given the term by section 105 of title 5,
United States Code, but does not include the General Accounting Office.
SEC. 3246. MISCELLANEOUS PROVISIONS RELATING TO CHILD CARE PROVIDED BY
FEDERAL AGENCIES.
(a) Availability of Federal Child Care Centers for Onsite
Contractors; Percentage Goal.--Section 616 of the Act of December 22,
1987 (40 U.S.C. 490b) is amended--
(1) in subsection (a)--
(A) by striking ``officer or agency of the United
States'' and inserting ``Federal agency or officer of a
Federal agency''; and
(B) by striking paragraphs (2) and (3) and
inserting the following:
``(2) the officer or agency determines that the space will
be used to provide child care and related services to--
``(A) children of Federal employees or onsite
Federal contractors; or
``(B) dependent children who live with Federal
employees or onsite Federal contractors; and
``(3) the officer or agency determines that the individual
or entity will give priority for available child care and
related services in the space to Federal employees and onsite
Federal contractors.''; and
(2) by adding at the end the following:
``(f)(1)(A) The Administrator of General Services shall confirm
that at least 50 percent of aggregate enrollment in Federal child care
centers governmentwide are children of Federal employees or onsite
Federal contractors, or dependent children who live with Federal
employees or onsite Federal contractors.
``(B) Each provider of child care services at an individual Federal
child care center shall maintain 50 percent of the enrollment at the
center of children described under subparagraph (A) as a goal for
enrollment at the center.
``(C)(i) If enrollment at a center does not meet the percentage
goal under subparagraph (B), the provider shall develop and implement a
business plan with the sponsoring Federal agency to achieve the goal
within a reasonable timeframe.
``(ii) The plan shall be approved by the Administrator of General
Services based on--
``(I) compliance of the plan with standards established by
the Administrator; and
``(II) the effect of the plan on achieving the aggregate
Federal enrollment percentage goal.
``(2) The Administrator of General Services may enter into public-
private partnerships or contracts with nongovernmental entities to
increase the capacity, quality, affordability, or range of child care
and related services and may, on a demonstration basis, waive
subsection (a)(3) and paragraph (1) of this subsection.''.
(b) Payment of Costs of Training Programs.--Section 616(b)(3) of
such Act (40 U.S.C. 490b(b)(3)) is amended to read as follows:
``(3) If a Federal agency has a child care facility in a Federal
space, or is a sponsoring agency for a child care facility in a Federal
space, the agency or the General Services Administration may pay
accreditation fees, including renewal fees, for that center to be
accredited. Any Federal agency that provides or proposes to provide
child care services for children referred to in subsection (a)(2), may
reimburse any Federal employee or any person employed to provide the
services for the costs of training programs, conferences, and meetings
and related travel, transportation, and subsistence expenses incurred
in connection with those activities. Any per diem allowance made under
this section shall not exceed the rate specified in regulations
prescribed under section 5707 of title 5, United States Code.''.
(c) Technical and Conforming Amendments.--Section 616(c) of such
Act (40 U.S.C. 490b(c)) is amended--
(1) by inserting ``Federal'' before ``child care centers'';
and
(2) by striking ``Federal workers'' and inserting ``Federal
employees''.
(d) Provision of Child Care by Private Entities.--Section 616(d) of
such Act (40 U.S.C. 490b(d)) is amended to read as follows:
``(d)(1) If a Federal agency has a child care facility in a Federal
space, or is a sponsoring agency for a child care facility in a Federal
space, the agency, the child care center board of directors, or the
General Services Administration may enter into an agreement with 1 or
more private entities under which the private entities would assist in
defraying the general operating expenses of the child care providers
including salaries and tuition assistance programs at the facility.
``(2)(A) Notwithstanding any other provision of law, if a Federal
agency does not have a child care program, or if the Administrator of
General Services has identified a need for child care for Federal
employees at a Federal agency providing child care services that do not
meet the requirements of subsection (a), the agency or the
Administrator may enter into an agreement with a non-Federal, licensed,
and accredited child care facility, or a planned child care facility
that will become licensed and accredited, for the provision of child
care services for children of Federal employees.
``(B) Before entering into an agreement, the head of the Federal
agency shall determine that child care services to be provided through
the agreement are more cost-effectively provided through the
arrangement than through establishment of a Federal child care
facility.
``(C) The Federal agency may provide any of the services described
in subsection (b)(3) if, in exchange for the services, the facility
reserves child care spaces for children referred to in subsection
(a)(2), as agreed to by the parties. The cost of any such services
provided by a Federal agency to a Federal child care facility on behalf
of another Federal agency shall be reimbursed by the receiving agency.
``(3) This subsection does not apply to residential child care
programs.''.
(e) Pilot Projects.--Section 616 of such Act (40 U.S.C. 490b) is
further amended by adding at the end the following:
``(g)(1) Upon approval of the agency head, a Federal agency may
conduct a pilot project not otherwise authorized by law for no more
than 2 years to test innovative approaches to providing alternative
forms of quality child care assistance for Federal employees. A Federal
agency head may extend a pilot project for an additional 2-year period.
Before any pilot project may be implemented, a determination shall be
made by the agency head that initiating the pilot project would be more
cost-effective than establishing a new Federal child care facility.
Costs of any pilot project shall be paid solely by the agency
conducting the pilot project.
``(2) The Administrator of General Services shall serve as an
information clearinghouse for pilot projects initiated by other Federal
agencies to disseminate information concerning the pilot projects to
the other Federal agencies.
``(3) Within 6 months after completion of the initial 2-year pilot
project period, a Federal agency conducting a pilot project under this
subsection shall provide for an evaluation of the impact of the project
on the delivery of child care services to Federal employees, and shall
submit the results of the evaluation to the Administrator of General
Services. The Administrator shall share the results with other Federal
agencies.''.
(f) Definitions.--Section 616 of such Act (40 U.S.C. 490b) is
further amended by adding at the end the following:
``(h) In this section:
``(1) The term `Federal agency' has the meaning given the
term `Executive agency' in section 3242 of the Federal
Employees Child Care Act.
``(2) The terms `Federal building' and `Federal space' have
the meanings given the term `executive facility' in such
section 3242.
``(3) The term `Federal child care center' means a child
care center in an executive facility, as defined in such
section 3242.
``(4) The terms `Federal contractor' and `Federal employee'
mean a contractor and an employee, respectively, of an
Executive agency, as defined in such section 3242.''.
CHAPTER 4--EARLY LEARNING
SEC. 3251. AMENDMENTS TO THE EARLY LEARNING OPPORTUNITIES ACT.
Section 805 of the Early Learning Opportunities Act (title VIII of
the Departments of Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 2001) (as enacted into law by
section 1(a)(1) of Public Law 106-554) is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
and there are appropriated,'' after ``appropriated''; and
(2) by striking paragraphs (1) through (4) and inserting
the following:
``(1) $750,000,000 for fiscal year 2002;
``(2) $1,000,000,000 for fiscal year 2003;
``(3) $1,500,000,000 for fiscal year 2004;
``(4) $2,000,000,000 for fiscal year 2005; and
``(5) $2,500,000,000 for fiscal year 2006.''.
CHAPTER 5--CHILD CARE FACILITIES FINANCING
SEC. 3261. SHORT TITLE.
This chapter may be cited as the ``Child Care Facilities Financing
Act''.
SEC. 3262. TECHNICAL AND FINANCIAL ASSISTANCE GRANTS.
(a) Definitions.--In this section:
(1) Child care facility.--The term ``child care facility''
means a center-based or home-based child care facility.
(2) Eligible intermediary.--The term ``eligible
intermediary'' means a private, nonprofit intermediary
organization that has demonstrated experience in--
(A) providing technical or financial assistance for
the construction and renovation of physical facilities;
(B) providing technical or financial assistance to
child care providers; and
(C) securing private sources for capital financing
of child care or other low-income community
development.
(3) Eligible recipient.--The term ``eligible recipient''
means--
(A) any existing or new center-based or home-based
child care provider that provides services to eligible
children under a program carried out under the Child
Care and Development Block Grant Act of 1990 (42 U.S.C.
9858 et seq.), or another program serving low-income
children as determined by the Secretary; and
(B) any organization in the process of establishing
a center-based or home-based child care program or
otherwise seeking to provide child care services to
children described in subparagraph (A).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(b) Grant Authority.--The Secretary may award grants on a
competitive basis in accordance with this section to eligible
intermediaries to assist the intermediaries in carrying out the
activities described in subsection (e).
(c) Applications.--To be eligible to receive a grant under this
section an eligible intermediary shall submit to the Secretary an
application, in such form and containing such information as the
Secretary may require.
(d) Priority.--In awarding grants under this section the Secretary
shall give a priority to applicants under subsection (c) that serve
low-income areas or individuals.
(e) Use of Funds.--
(1) Revolving fund.--Each eligible intermediary that
receives a grant under this section shall deposit the grant
amount into a child care revolving fund established by the
eligible intermediary.
(2) Payments from fund.--Subject to subsection (f), from
amounts deposited into the revolving fund under paragraph (1),
each eligible intermediary shall provide technical and
financial assistance (in the form of loans, grants,
investments, guarantees, interest subsidies, and other
appropriate forms of assistance) to eligible recipients to pay
for the Federal share of the cost of the acquisition,
construction, or improvement of child care facilities or
equipment, or for the improvement of related management and
business practices, for each such recipient. The amounts may be
used solely for the purpose of providing technical or financial
assistance.
(3) Loan repayments and investment proceeds.--Any amount
received by an eligible intermediary from an eligible recipient
in the form of a loan repayment or investment proceeds shall be
deposited into the child care revolving fund of the eligible
intermediary for redistribution to other eligible recipients in
accordance with this section.
(f) Federal Share.--
(1) In general.--The Federal share of the cost described in
subsection (e)(2) shall be not more than 50 percent.
(2) Non-federal share.--The non-Federal share of the cost
may be provided in cash or in kind, fairly evaluated, including
plant, equipment, or services.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $500,000,000 for each of fiscal
years 2002 through 2006.
Subtitle D--Head Start Access and Improvement
SEC. 3301. AUTHORIZATION OF APPROPRIATIONS.
Section 639(a) of the Head Start Act (42 U.S.C. 9834(a)) is amended
to read as follows:
``(a) There are authorized to be appropriated to carry out this
subchapter--
``(1) $7,199,812,000 for fiscal year 2002;
``(2) $8,000,000,000 for fiscal year 2003;
``(3) $9,000,000,000 for fiscal year 2004;
``(4) $10,000,000,000 for fiscal year 2005;
``(5) $11,002,000,000 for fiscal year 2006;
``(6) $12,200,000,000 for fiscal year 2007;
``(7) $13,605,000,000 for fiscal year 2008;
``(8) $15,275,000,000 for fiscal year 2009;
``(9) $17,280,000,000 for fiscal year 2010; and
``(10) $19,720,000,000 for fiscal year 2011.''.
Subtitle E--Education Improvements
CHAPTER 1--INCREASING ACCESS TO QUALITY PREKINDERGARTEN PROGRAMS
SEC. 3401. PREKINDERGARTEN PROGRAMS.
Title X of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8001 et seq.) is amended--
(1) by redesignating part L as part N; and
(2) by inserting after part K the following:
``PART L--PREKINDERGARTEN PROGRAMS
``SEC. 10996A. FINDINGS.
``Congress finds the following:
``(1) Countless studies have shown what every parent
already knows: High-quality preschool education programs work.
Such programs prepare children to learn when they go to school,
and increase the success of students throughout their lives.
``(2) Children who get a high-quality prekindergarten
education are less likely to repeat a grade level and have less
need for special education instruction than those with no
prekindergarten experience.
``(3) Prekindergarten programs make a significant
difference in the lives of children from low-income families. A
recent study found that children in high-quality child care
programs had better thinking and attention skills, better
mathematics and pre-reading skills, and fewer behavioral
problems.
``(4) In a study following children to age 21 who received
high-quality early childhood education, such children were more
likely to have enrolled in college, been employed, and delayed
parenthood.
``SEC. 10996B. DEFINITIONS.
``In this part:
``(1) Prekindergarten.--The term `prekindergarten' means a
program serving children ages 3, 4, and 5 years old that
supports children's cognitive, social, emotional, and physical
development and helps prepare children for the transition to
kindergarten.
``(2) Eligible prekindergarten provider.--The term
`eligible prekindergarten provider' means--
``(A) a child care program or Head Start agency
under the Head Start Act (42 U.S.C. 9831 et seq.)
that--
``(i) has met applicable State licensing
requirements and has obtained accreditation by
a national accrediting body with demonstrated
experience in accrediting child care programs,
prekindergarten programs, or schools; or
``(ii) agrees to obtain such accreditation
not later than 3 years after receipt of a grant
under this part; and
``(B) a local educational agency in partnership
with an early childhood program, organization, or
agency that serves prekindergarten school children.
``(3) Prekindergarten Teacher.--The term `prekindergarten
teacher' means an individual who has, or is working toward, a
bachelor of arts degree in early childhood development.
``SEC. 10996C. PROGRAM AUTHORIZED.
``(a) In General.--From amounts made available under section
10996G, the Secretary may provide grants to States with approved
applications under subsection (b)(2) for the purpose of enabling to
States to award subgrants to eligible prekindergarten providers to
establish, enhance, or expand prekindergarten programs.
``(b) State Agency.--
``(1) In general.--A State desiring a grant under this part
shall designate a State agency to administer the grant.
``(2) Application.--
``(A) In general.--With respect to a State desiring
a grant under this part, the State agency designated
under paragraph (1) shall submit an application to the
Secretary at such time, in such manner, and containing
such information as the Secretary may require.
``(B) Contents.--The application submitted under
subparagraph (A) shall include--
``(i) an assurance that the State will
provide non-Federal matching funds, for
carrying out the programs to be funded by a
grant under this part, in an amount equal to
not less than 20 percent of the grant award;
and
``(ii) a description of--
``(I) how grant funds will be used
to expand or enhance existing efforts
across the State in providing access to
high quality prekindergarten programs;
``(II) how the State will
collaborate with local child care
agencies and councils, including local
child care resource and referral
agencies;
``(III) how grant funds will be
used to supplement and not supplant
existing Federal, State, local and
private funds used for prekindergarten
programs;
``(IV) how the State will ensure
that grant funds are provided to a
range of types of eligible
prekindergarten providers;
``(V) how the State will help
eligible prekindergarten providers
attract and retain qualified
prekindergarten teachers;
``(VI) how the State will identify
eligible prekindergarten providers and
identify children to receive
prekindergarten education; and
``(VII) how the State will give
priority in awarding subgrants under
paragraph (3)(B) to full-time
prekindergarten programs, including the
expansion of existing part-time
programs into full-time programs.
``(3) Duties.--The State agency designated under paragraph
(1) shall--
``(A) receive and administer grant funds received
under this part;
``(B) award subgrants, from such grant funds
received, to eligible prekindergarten providers to
carry out section 10996E; and
``(C) conduct evaluations of prekindergarten
programs carried out by eligible prekindergarten
providers that receive subgrants under subparagraph
(B).
``SEC. 10996D. LOCAL APPLICATIONS.
``(a) In General.--An eligible prekindergarten provider that
desires to receive a subgrant under this part shall submit an
application to the appropriate State agency designated under section
10996C(b)(1) at such time, in such manner, and containing such
information as such State agency may reasonably require.
``(b) Content.--An application submitted under subsection (a), at a
minimum, shall--
``(1) demonstrate a need for the establishment,
enhancement, or expansion of a prekindergarten program;
``(2) describe how the eligible prekindergarten provider
will collaborate with local early childhood councils and
agencies;
``(3) provide an assurance that each individual hired as a
teacher by the eligible prekindergarten provider is qualified
to teach children at the prekindergarten level;
``(4) provide an assurance that the ratio of teacher or
child development specialist to children at each
prekindergarten program administered by the provider will not
exceed 1-10;
``(5) provide a description of how funds will be used to
coordinate with and enhance, but not duplicate or supplant,
early childhood programs serving eligible children that exist
in the community;
``(6) describe how the eligible prekindergarten provider
will use a collaborative process with organizations and members
of the community that have an interest and experience in early
childhood development and education to establish, enhance, or
expand prekindergarten programs;
``(7) describe how the program to be funded under the
subgrant will meet the diverse needs of children, ages 3
through 5, in the community who are not enrolled in
kindergarten, including children with disabilities or whose
native language is other than English;
``(8) describe how the eligible prekindergarten provider
will collaborate with local schools to ensure a smooth
transition for participating students from prekindergarten to
kindergarten and early elementary education;
``(9) describe the results the prekindergarten program is
intended to achieve, and what tools will be used to measure the
progress in attaining those results; and
``(10) provide an assurance that none of the funds received
under this part will be used for the construction or renovation
of existing or new facilities (except for minor remodeling
needed to accomplish the purposes of this part).
``SEC. 10996E. LOCAL USES OF FUNDS.
``(a) In General.--An eligible prekindergarten provider that
receives a subgrant under this part shall use funds received under such
subgrant to establish, enhance, or expand prekindergarten programs for
children, ages 3 through 5, who are not enrolled in kindergarten,
including--
``(1) providing a program that focuses on the developmental
needs of participating children, including their social,
cognitive, physical, and language-development needs, and uses
research-based approaches that build on competencies that lead
to school success, particularly in language and literacy
development and in reading;
``(2) paying the costs of purchasing educational equipment,
including educational materials, necessary to provide a high
quality program;
``(3) pursuing accreditation by a national accreditation
body with demonstrated experience in accreditation of
prekindergarten programs, to be obtained not later than 3 years
after the date on which funds are first received under this
part;
``(4) helping prekindergarten teachers pursue and attain
the credential and degree requirements established by the State
and provide a stipend for attaining educational or professional
development; and
``(5) meeting the needs of working parents.
``(b) Permissible Uses of Funds.--An eligible prekindergarten
provider that receives a subgrant under this part may use funds
received under such subgrant to pay for transporting students to and
from a prekindergarten program.
``SEC. 10996F. REPORTING.
``(a) Local Reports.--Each eligible prekindergarten provider that
receives a subgrant under this part shall submit to the State agency
designated under section 10996C(b)(1), not later than 18 months after
the date on which the provider first receives such subgrant, a report
relating to the period for which subgrant funds were received,
containing information on--
``(1) the number and ages of children served by the
provider, including information disaggregated by family income,
race, disability, native language;
``(2) the number of hours of service per day and number of
months of service;
``(3) the total number of prekindergarten teachers employed
by the provider; and
``(4) other sources of Federal, State, local, and private
funds used to operate the prekindergarten program for which
subgrants funds were received under this part.
``(b) Report to Congress.--The Secretary shall submit an annual
report to Congress that evaluates the prekindergarten programs
established, enhanced, or expanded under this part.
``SEC. 10996G. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$2,000,000,000 for fiscal year 2002, $4,000,000,000 for fiscal year
2003, $5,000,000,000 for fiscal year 2004, $8,000,000,000 for fiscal
year 2005, and $10,000,000,000 for fiscal year 2006.''.
CHAPTER 2--EXPANDING EARLY LITERACY EFFORTS
SEC. 3411. EARLY LITERACY.
Part C of Title II of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6661 et seq.) is amended--
(1) by redesignating section 2251 as section 2251A;
(2) by inserting before section 2251A (as so redesignated)
the following:
``SEC. 2251. SHORT TITLE.
``This part may be cited as the `Reading Excellence Act'.'';
(3) by redesignating section 2260 as section 2261;
(4) by inserting after section 2259 the following:
``SEC. 2260. EARLY LITERACY.
``(a) Definitions.--In this section:
``(1) Early childhood educator.--The term `early childhood
educator' means an individual who spends most or all of the
program day working directly with young children and who has
responsibility for implementing the educational components of
an early childhood education program.
``(2) Early childhood education program.--The term `early
childhood education program' means a licensed or regulated
child care center, preschool, State-funded prekindergarten
program, or Head Start program.
``(3) Early literacy.--The term `early literacy' means the
development of young children's vocabulary, reading, and
writing skills in preparation to learn to read and write.
``(4) Local early literacy partnership.--The term `local
early literacy partnership' means a partnership, council, or
consortia that includes representatives of--
``(A) the local educational agency;
``(B) teachers in kindergarten through 3d grade who
are responsible for reading instruction, including
teachers working with children whose native language is
not English and children with disabilities;
``(C) early childhood educators working in a range
of early childhood education programs and with children
in a range of ages from birth through age 5, including
educators working with children whose native language
is not English and children with disabilities;
``(D) the local child care resource and referral
agency, local child care council, Head Start agency,
and other appropriate local child care agencies;
``(E) family literacy programs;
``(F) public libraries;
``(G) local institutions of higher education that
provide professional development in research-based
early literacy and scientifically based reading
instruction; and
``(H) parents of children in early childhood
programs and in schools.
``(5) Research-based early literacy.--The term `research-
based early literacy' means the application of rigorous,
systemic and objective procedures to obtain valid knowledge
relevant to language and literacy development and instruction
that--
``(A) is based on recent national reports
synthesizing research on effective practices to support
children's literacy and prevent later reading
difficulties;
``(B) draws on high quality quantitative research;
``(C) uses systematic methods that draw on
observation or experiment;
``(D) relies on multiple measures;
``(E) meets accepted standards of evidence as
judged by a panel of independent experts; and
``(F) draws on the knowledge of effective teaching
strategies for young children.
``(6) Young children.--The term `young children' means
children from birth through age 5 (or until mandatory school
age as determined by the State).
``(b) Grant Program.--The Secretary shall award grants to State
educational agencies to enable such State educational agencies to award
subgrants to local early literacy partnerships for the purpose of
enhancing the early literacy in early childhood programs serving
children from birth until kindergarten.
``(c) Application.--A State educational agency desiring a grant
under this section shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may require, including--
``(1) how the State educational agency will disseminate
information to a range of early childhood education providers,
organizations, local educational agencies, and institutions of
higher education regarding the partnership grants;
``(2) how the State educational agency will provide
technical assistance to local early literacy partnerships by
disseminating information on research regarding early literacy
curricula and teaching practice; and
``(3) how the State educational agency will coordinate with
other State agencies having responsibility for early childhood
education programs in the selection of the local grantees and
in providing technical assistance and information.
``(d) Administration.--A State educational agency receiving a grant
under this section may reserve not more than 2 percent of the grant
funds received for administrative purposes.
``(e) Local Early Literacy Partnership Application.--A local early
literacy partnership desiring a subgrant under this section shall
submit an application to the State educational agency at such time, in
such manner, and containing such information as the State educational
agency may require. The application shall identify the lead partner
(which shall have a demonstrated history of effective administration of
large grants) that will act as the fiscal agent and shall describe--
``(1) the roles and responsibilities of each partner entity
in the partnership and the resources that will be made
available to each such partner entity to carry out those roles
and responsibilities;
``(2) how the partnership will identify early childhood
education programs and early childhood educators that would
benefit from the services and professional development to be
provided by the partnership under this section;
``(3) how the partnership will coordinate Federal, State,
local, and private resources related to early literacy and
family literacy;
``(4) how the research-based early literacy curricula and
materials will be made available to early childhood education
programs;
``(5) how ongoing professional development in research-
based early literacy will be provided to early childhood
educators in a range of early childhood education programs,
including the use of technology to deliver such professional
development as appropriate;
``(6) how the partnership will establish the presence of an
early literacy specialist in the local child care resource and
referral agency or other appropriate early childhood education
agency in order to provide technical assistance and information
to programs and early childhood educators;
``(7) how the services will build on existing early
literacy and family literacy programs and professional
development in the community;
``(8) how the early literacy activities and professional
development for early childhood educators will be coordinated
with the activities and professional development of
kindergarten teachers in the same geographic area;
``(9) how families will participate in early literacy
programs to enhance their children's language and literacy
progress;
``(10) how the partnership will collect and report data as
required under subsection (g); and
``(11) how the professional development and other
activities and materials to be supplied by the partnership
under this section will support the early literacy of children
whose native language is not English, children with
disabilities, and other children at risk of having reading
difficulties.
``(f) Uses of Funds.--The early literacy partnership shall use
funds for--
``(1) providing research-based early literacy instruction
methods, strategies, and curricula to early childhood providers
serving children from birth through age 5 in a range of
settings in the community;
``(2) providing ongoing, regular, professional development
to early childhood educators in the selection and use of
research-based early literacy instruction methods, strategies,
and curricula;
``(3) providing a stipend or bonus of sufficient size to
each childhood educator who receives the ongoing professional
development in research-based early literacy, and who commits
to remaining in the same early childhood education program for
a minimum of 1 additional full year;
``(4) establishing 1 or more early literacy specialists in
the local child care resource and referral agency or other
appropriate local child care agency or council to provide
technical assistance and to disseminate information;
``(5) coordinating the delivery of early literacy and
family literacy services within the community; and
``(6) collecting and reporting information to the State
educational agency as required in subsection (g).
``(g) Evaluations and Reports.--Each local partnership that
receives a grant under this section shall submit a report to the State
educational agency that includes--
``(1) a description of the types of early childhood
education programs that received services through the grant,
including disaggregated information on the age, race,
ethnicity, native language, disability status, gender, and
family income of the children served and the qualifications, by
credential or degree, and compensation of the staff (including
directors and teachers);
``(2) the extent to which professional development in
research-based early literacy was made accessible and used by
early childhood education staff in the local area;
``(3) how early literacy activities were coordinated with
family literacy programs and activities; and
``(4) how each partner carried out the partner's respective
roles and responsibilities under the application.''; and
(5) by amending section 2261 (as so redesignated) by adding
at the end the following:
``(3) Fiscal years 2002 to 2006.--There are authorized to
be appropriated to carry out this part--
``(A) $500,000,000 for fiscal year 2002;
``(B) $600,000,000 for fiscal year 2003;
``(C) $700,000,000 for fiscal year 2004;
``(D) $850,000,000 for fiscal year 2005; and
``(E) $1,000,000,000 for fiscal year 2006.''.
SEC. 3412. TECHNICAL AMENDMENTS.
The Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301
et seq.) is amended--
(1) in section 1202(c)(1), by striking ``section
2260(b)(3)'' and inserting ``section 2261(b)(3)'';
(2) in section 2257, by striking ``section 2260(b)(1)'' and
inserting ``section 2261(b)(1)''; and
(3) in section 2258, by striking ``2260(b)(2)'' and
inserting ``section 2261(b)(2)''.
CHAPTER 3--INCREASING THE AVAILABILITY OF BOOKS
SEC. 3421. SHORT TITLE.
This chapter may be cited as the ``Book Stamp Act''.
SEC. 3422. FINDINGS.
Congress finds the following:
(1) Literacy is fundamental to all learning.
(2) Between 40 and 60 percent of the Nation's children do
not read at grade level, particularly children in families and
school districts that are challenged by significant financial
or social instability.
(3) Increased investments in child literacy are needed to
improve opportunities for children and the efficacy of the
Nation's education investments.
(4) Increasing access to books in the home is an important
means of improving child literacy, which can be accomplished
nationally at modest cost.
(5) Effective channels for book distribution already exist
through child care providers.
SEC. 3423. DEFINITIONS.
In this chapter:
(1) Early learning program.--The term ``early learning'',
used with respect to a program, means a program of activities
designed to facilitate development of cognitive, language,
motor, and social-emotional skills in children under age 6 as a
means of enabling the children to enter school ready to learn,
such as a Head Start or Early Head Start program carried out
under the Head Start Act (42 U.S.C. 9831 et seq.), or a State
pre-kindergarten program.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(3) State.--The term ``State'' means the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, Guam,
the United States Virgin Islands, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
(4) State agency.--The term ``State agency'' means an
agency designated under section 658D of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9858b).
SEC. 3424. GRANTS TO STATE AGENCIES.
(a) Establishment of Program.--The Secretary shall establish and
carry out a program to promote child literacy and improve children's
access to books at home and in early learning and other child care
programs, by making books available through early learning and other
child care programs.
(b) Grants.--
(1) In general.--In carrying out the program, the Secretary
shall make grants to State agencies from allotments determined
under paragraph (2).
(2) Allotments.--For each fiscal year, the Secretary shall
allot to each State an amount that bears the same ratio to the
total of the available funds for the fiscal year as the amount
the State receives under section 658O(b) of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9858m(b)) for
the fiscal year bears to the total amount received by all
States under that section for the fiscal year.
(c) Applications.--To be eligible to receive an allotment under
this section, a State shall submit an application to the Secretary at
such time, in such manner, and containing such information as the
Secretary may require.
(d) Accountability.--The provisions of sections 658I(b) and 658K(b)
of the Child Care and Development Block Grant Act of 1990 (42 U.S.C.
9858g(b), 9858i(b)) shall apply to States receiving grants under this
chapter, except that references in those sections--
(1) to a chapter shall be considered to be references to
this chapter; and
(2) to a plan or application shall be considered to be
references to an application submitted under subsection (c).
(e) Definition.--In this section, the term ``available funds'',
used with respect to a fiscal year, means the total of--
(1) the funds made available under section 416(c)(1) of
title 39, United States Code for the fiscal year; and
(2) the amounts appropriated under section 3409 for the
fiscal year.
SEC. 3425. CONTRACTS TO CHILD CARE RESOURCE AND
REFERRAL AGENCIES.
A State agency that receives a grant under section 3404 shall use
funds made available through the grant to enter into contracts with
local child care resource and referral agencies to carry out the
activities described in section 3406. The State agency may reserve not
more than 3 percent of the funds made available through the grant to
support a public awareness campaign relating to the activities.
SEC. 3426. USE OF FUNDS.
(a) Activities.--
(1) Book payments for eligible providers.--A child care
resource and referral agency that receives a contract under
section 3405 shall use the funds made available through the
grant to provide payments for eligible early learning program
and other child care providers, on the basis of local needs, to
enable the providers to make books available, to promote child
literacy and improve children's access to books at home and in
early learning and other child care programs.
(2) Eligible providers.--To be eligible to receive a
payment under paragraph (1), a provider shall--
(A)(i) be a center-based child care provider, a
group home child care provider, or a family child care
provider, described in section 658P(5)(A) of the Child
Care and Development Block Grant Act of 1990 (42 U.S.C.
9858n(5)(A)); or
(ii) be a Head Start agency designated under
section 641 of the Head Start Act (42 U.S.C. 9836), an
entity that receives assistance under section 645A of
such Act (42 U.S.C. 9840a) to carry out an Early Head
Start program or another provider of an early learning
program; and
(B) provide services in an area where children face
high risks of literacy difficulties, as defined by the
Secretary.
(b) Responsibilities.--A child care resource and referral agency
that receives a contract under section 3405 to provide payments to
eligible providers shall--
(1) consult with local individuals and organizations
concerned with early literacy (including parents and
organizations carrying out the Reach Out and Read, First Book,
and Reading Is Fundamental programs) regarding local book
distribution needs;
(2) make reasonable efforts to learn public demographic and
other information about local families and child literacy
programs carried out by the eligible providers, as needed to
inform the agency's decisions as the agency carries out the
contract;
(3) coordinate local orders of the books made available
under this chapter;
(4) distribute, to each eligible provider that receives a
payment under this chapter, not fewer than 1 book every 6
months for each child served by the provider for more than 3 of
the preceding 6 months;
(5) use not more than 5 percent of the funds made available
through the contract to provide training and technical
assistance to the eligible providers on the effective use of
books with young children at different stages of development;
and
(6) be a training resource for eligible providers that want
to offer parent workshops on developing reading readiness.
(c) Discounts.--
(1) In general.--Federal funds made available under this
chapter for the purchase of books may only be used to purchase
books on the same terms as are customarily available in the
book industry to entities carrying out nonprofit bulk book
purchase and distribution programs.
(2) Terms.--An entity offering books for purchase under
this chapter shall be presumed to have met the requirements of
paragraph (1), absent contrary evidence, if the terms include a
discount of 43 percent off the catalogue price of the books,
with no additional charge for shipping and handling of the
books.
(d) Administration.--The child care resource and referral agency
may not use more than 6 percent of the funds made available through the
contract for administrative costs.
SEC. 3427. REPORT TO CONGRESS.
Not later than 2 years of the date of enactment of this chapter,
the Secretary shall prepare and submit to Congress a report on the
implementation of the activities carried out under this chapter.
SEC. 3428. SPECIAL POSTAGE STAMPS FOR CHILD LITERACY.
Chapter 4 of title 39, United States Code is amended by adding at
the end the following:
``Sec. 416. Special postage stamps for child literacy
``(a) In order to afford the public a convenient way to contribute
to funding for child literacy, the Postal Service shall establish a
special rate of postage for first-class mail under this section. The
stamps that bear the special rate of postage shall promote childhood
literacy and shall, to the extent practicable, contain an image
relating to a character in a children's book or cartoon.
``(b)(1) The rate of postage established under this section--
``(A) shall be equal to the regular first-class rate of
postage, plus a differential of not to exceed 25 percent;
``(B) shall be set by the Governors in accordance with such
procedures as the Governors shall by regulation prescribe (in
lieu of the procedures described in chapter 36); and
``(C) shall be offered as an alternative to the regular
first-class rate of postage.
``(2) The use of the special rate of postage established under this
section shall be voluntary on the part of postal patrons.
``(c)(1) Of the amounts becoming available for child literacy
pursuant to this section, the Postal Service shall pay 100 percent to
the Department of Health and Human Services.
``(2) Payments made under this subsection to the Department shall
be made under such arrangements as the Postal Service shall by mutual
agreement with such Department establish in order to carry out the
objectives of this section, except that, under those arrangements,
payments to such agency shall be made at least twice a year.
``(3) In this section, the term `amounts becoming available for
child literacy pursuant to this section' means--
``(A) the total amounts received by the Postal Service that
the Postal Service would not have received but for the
enactment of this section; reduced by
``(B) an amount sufficient to cover reasonable costs
incurred by the Postal Service in carrying out this section,
including costs attributable to the printing, sale, and
distribution of stamps under this section,
as determined by the Postal Service under regulations that the Postal
Service shall prescribe.
``(d) It is the sense of Congress that nothing in this section
should--
``(1) directly or indirectly cause a net decrease in total
funds received by the Department of Health and Human Services,
or any other agency of the Government (or any component or
program of the Government), below the level that would
otherwise have been received but for the enactment of this
section; or
``(2) affect regular first-class rates of postage or any
other regular rates of postage.
``(e) Special postage stamps made available under this section
shall be made available to the public beginning on such date as the
Postal Service shall by regulation prescribe, but in no event later
than 12 months after the date of enactment of this section.
``(f) The Postmaster General shall include in each report provided
under section 2402, with respect to any period during any portion of
which this section is in effect, information concerning the operation
of this section, except that, at a minimum, each report shall include
information on--
``(1) the total amounts described in subsection (c)(3)(A)
that were received by the Postal Service during the period
covered by such report; and
``(2) of the amounts described in paragraph (1), how much
(in the aggregate and by category) was required for the
purposes described in subsection (c)(3)(B).
``(g) This section shall cease to be effective at the end of the 2-
year period beginning on the date on which special postage stamps made
available under this section are first made available to the public.''.
SEC. 3429. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this chapter
$50,000,000 for each of fiscal years 2002 through 2006.
CHAPTER 4--INCREASED ACCOUNTABILITY
SEC. 3431. LOW ACHIEVING CHILDREN MEET HIGH STANDARDS.
The Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301
et seq.) is amended in the heading for title I by striking
``DISADVANTAGED'' and inserting ``LOW-ACHIEVING''.
SEC. 3432. PURPOSE AND INTENT.
Section 1001 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6301) is amended to read as follows:
``SEC. 1001. FINDINGS; RECOGNITION OF NEED; STATEMENT OF PURPOSE.
``(a) Findings.--Congress finds the following:
``(1) Schools that enroll high concentrations of children
living in poverty face the greatest challenges, but effective
educational strategies based on scientifically based research
can succeed in educating children to high standards.
``(2) High-poverty schools are much more likely to be
identified as failing to meet State standards for satisfactory
progress. As a result, these schools are generally the most in
need of additional resources and technical assistance to build
the capacity of these schools to address the many needs of
their students.
``(3) The educational progress of children participating in
programs under this title is closely associated with their
being taught by a fully qualified staff, particularly in
schools with the highest concentrations of poverty, where
paraprofessionals, uncertified teachers, and teachers teaching
out of field frequently provide instructional services.
``(4) States, local educational agencies, and schools
should be held accountable for improving student achievement,
while being given appropriate flexibility.
``(5) Programs funded under this title must demonstrate
increased effectiveness in improving schools in order to ensure
all children achieve to high standards.
``(b) Recognition of Need.--The Congress recognizes the following:
``(1) Educational needs are particularly great for low-
achieving children in our Nation's highest-poverty schools,
children with limited English proficiency, children of migrant
workers, children with disabilities, Indian children, children
who are neglected or delinquent, and young children and their
parents who are in need of family literacy services.
``(2) Despite decades of education reform efforts, a
sizable achievement gap remains between minority and
nonminority students, and between disadvantaged students and
their more advantaged peers.
``(3) States, local educational agencies and schools should
be held accountable for improving the academic achievement of
all students, and for identifying and turning around low-
performing schools.
``(4) Federal education assistance is intended not only to
increase pupil achievement overall, but also more specifically
and importantly, to help ensure that all pupils, especially the
disadvantaged, meet challenging standards for curriculum
content and pupil performance. It can only be determined if
schools, local educational agencies, and States, are reaching
this goal if pupil achievement results are disaggregated by at-
risk categories.
``(c) Purpose and Intent.--The purpose and intent of this title are
to ensure that all children have a fair and equal opportunity to obtain
a high quality education.
SEC. 3433. AUTHORIZATION OF APPROPRIATIONS.
(a) Additional Assistance.--Subsection (f) of section 1002 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6302(f)) is
amended to read as follows:
``(f) School Improvement.--Each State may reserve for the purpose
of carrying out its duties under section 1116 and 1117, the greater of
one-half of 1 percent of the amount allocated under this part, or
$200,000.''.
(b) Federal Activities.--Subsection (g) of section 1002 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6302(g)) is
amended by striking ``1995'' each place it appears and inserting
``2002''.
(c) State Administration.--Section 1002 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6302) is amended by adding
at the end the following:
``(h) State Administration.--
``(1) State reservation.--Each State may reserve, from the
grants it receives under parts A, C, and D, of this title, an
amount equal to the greater of--
``(A) 1 percent of the amount it received under
parts A, C, and D; or
``(B) $400,000 ($50,000 for each outlying area), to
carry out administrative duties assigned under parts A,
C, and D.
``(2) Special rule.--The amount reserved by each State
under this subsection may not exceed the amount of State funds
expended by the State educational agency to administer
elementary and secondary education programs in such State.
``(i) Assistance for Local School Improvement.--
``(1) Program authorized.--The Secretary shall award grants
to States to provide subgrants to local educational agencies
for the purpose of providing assistance for school improvement
consistent with section 1116. Such grants shall be allocated
among States, the Bureau of Indian Affairs, and the outlying
areas, in the same proportion to the grants received by each
State, the Bureau of Indian Affairs, and the outlying areas for
the fiscal year under parts A, C, and D of this title. The
Secretary shall expeditiously allocate a portion of such funds
to States for the purpose of assisting local educational
agencies and schools that were in school improvement status on
the date preceding the date of enactment of the Leave No Child
Behind Act of 2001.
``(2) Reallocations.--If a State does not apply for funds
under this subsection, the Secretary shall reallocate such
funds to other States in the same proportion that funds are
allocated under paragraph (1).
``(3) State applications.--Each State educational agency
that desires to receive funds under this subsection shall
submit an application to the Secretary at such time, and
containing such information as the Secretary shall reasonably
require, except that such requirement shall be waived if a
State educational agency has submitted such information as part
of its State plan under this part. Each State plan shall
describe how such funds will be allocated to ensure that the
State educational agency and local educational agencies comply
with school improvement and corrective action requirements of
section 1116.
``(4) Local educational agency grants.--A grant to a local
educational agency under this subsection shall be--
``(A) of sufficient size and scope to support the
activities required under sections 1116 and 1117, but
not less than $50,000 and not more than $500,000 to
each participating school;
``(B) integrated with other funds under this Act;
and
``(C) renewable for 2 additional 1-year periods if
schools are making yearly progress consistent with
State and local educational agency plans developed
under section 1116.
``(5) Priority.--The State, in awarding such grants, shall
give priority to local educational agencies with the lowest
achieving schools, that demonstrate the greatest need for such
funds, and that demonstrate the strongest commitment to making
sure such funds are used to provide adequate resources to enable such
schools to meet the yearly progress goals under State and local school
improvement and corrective action plans under section 1116.
``(6) Administrative costs.--A State educational agency
that receives a grant award under this subsection may reserve
not more than 5 percent of such award for administration,
evaluation, and technical assistance expenses.
``(7) Local awards.--Each local educational agency that
applies for assistance under this subsection shall describe how
it will provide the lowest achieving schools the resources
necessary to meet yearly progress goals under State and local
school improvement and corrective action plans under section
1116.
``(8) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection,
$250,000,000 for fiscal year 2002, $300,000,000 for fiscal year
2003, $350,000,000 for fiscal year 2004, $400,000,000 for
fiscal year 2005, and $450,000,000 for fiscal year 2006.''.
SEC. 3434. RESERVATION AND ALLOCATION.
Section 1003 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6303) is repealed.
SEC. 3435. STATE PLANS.
Section 1111 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311) is amended to read as follows:
``SEC. 1111. STATE PLANS.
``(a) Plans Required.--
``(1) In general.--Any State desiring to receive a grant
under this part shall submit to the Secretary a plan, developed
in consultation with local educational agencies, teachers,
pupil services personnel, administrators (including
administrators of programs described in other parts of this
title), other staff, and parents, that satisfies the
requirements of this section and that is coordinated with other
programs under this Act, the Individuals with Disabilities
Education Act, the Carl D. Perkins Vocational and Technical
Education Act of 1998, and the Head Start Act.
``(2) Consolidated plan.--A State plan submitted under
paragraph (1) may be submitted as part of a consolidated plan
under section 10202.
``(b) Standards, Assessments, and Accountability.--
``(1) Challenging standards.--(A) Each State plan shall
demonstrate that the State has adopted and implemented
challenging content standards and challenging student
performance standards that will be used by the State, its local
educational agencies, and its schools to carry out this part,
except that a State shall not be required to submit such
standards to the Secretary.
``(B) The standards required by subparagraph (A) shall be
the same standards that the State applies to all schools and
children in the State.
``(C) The State shall have such standards for elementary
school and secondary school children served under this part in
subjects determined by the State, but including at least
mathematics, reading or language arts, and science, which shall
include the same knowledge, skills, and levels of performance
expected of all children.
``(D) Standards under this paragraph shall include--
``(i) challenging content standards in academic
subjects that--
``(I) specify what children are expected to
know and be able to do;
``(II) contain coherent and rigorous
content; and
``(III) encourage the teaching of advanced
skills; and
``(ii) challenging student performance standards
that--
``(I) are aligned with the State's content
standards;
``(II) describe 2 levels of high
performance, proficient and advanced, that
determine how well children are mastering the
material in the State content standards; and
``(III) describe a third level of
performance, basic, to provide complete
information about the progress of the lower
performing children toward achieving to the
proficient and advanced levels of performance.
``(E) For the subjects in which students will be served
under this part, but for which a State is not required by
subparagraphs (A), (B), and (C) to develop, and has not
otherwise developed such standards, the State plan shall
describe a strategy for ensuring that such students are taught
the same knowledge and skills and held to the same expectations
as are all children.
``(2) Adequate yearly progress.--
``(A) In general.--Each State plan shall
demonstrate, based on assessments described under
paragraph (4), what constitutes adequate yearly
progress of--
``(i) any school served under this part
toward enabling all children to meet the
State's challenging student performance
standards;
``(ii) any local educational agency that
received funds under this part toward enabling
all children in schools receiving assistance
under this part to meet the State's challenging
student performance standards; and
``(iii) the State in enabling all children
in schools receiving assistance under this part
to meet the State's challenging student
performance standards.
``(B) Definition.--Adequate yearly progress shall
be defined in a manner that--
``(i) applies the same high standards of
academic performance to all students in the
State;
``(ii) takes into account the progress of
all students in the State and in each local
educational agency and school served under
section 1114 or 1115;
``(iii) uses the State challenging content
and challenging student performance standards
and assessments described in paragraphs (1) and
(4);
``(iv) compares separately, within each
State, local educational agency, and school,
the performance and progress of students by
gender, each major ethnic and racial group, by
English proficiency status, by migrant status,
by students with disabilities as compared to
nondisabled students, and by economically
disadvantaged students as compared to students
who are not economically disadvantaged (except
that such disaggregation shall not be required
in a case in which the number of students in a
category is insufficient to yield statistically
reliable information or the results would
reveal individually identifiable information
about an individual student);
``(v) compares the proportions of students
at the `basic', `proficient', and `advanced'
levels of performance with the proportions of
students at each of the 3 levels in the same
grade in the previous school year;
``(vi) includes annual numerical goals for
improving the performance of all groups
specified in clause (iv) and narrowing gaps in
performance between these groups; and
``(vii) includes a timeline for ensuring
that each group of students described in clause
(iv) meets or exceeds the State's proficient
level of performance on each State assessment
used for the purposes of section 1111 and
section 1116 not later than 10 years after the
date of enactment of the Leave No Child Behind
Act of 2001; and
``(viii) at the State's discretion, may
also include other academic measures such as
promotion, completion of college preparatory
courses, and high school completion, except
that inclusion of such other measures may not
change which schools or local educational
agencies would otherwise be subject to
improvement or corrective action under section
1116 if the discretionary indicators were not
included.
``(C) Annual improvement for states.--For a State
to make adequate yearly progress under subparagraph
(A)(iii), not less than 90 percent of the local
educational agencies within its jurisdiction shall meet
the State's criteria for adequate yearly progress.
``(D) Annual improvement for local educational
agencies.--For a local educational agency to make
adequate yearly progress under subparagraph (A)(ii),
not less than 90 percent of the schools within its
jurisdiction must meet the State's criteria for
adequate yearly progress.
``(E) Annual improvement for schools.--For a school
to make adequate yearly progress under subparagraph
(A)(i), not less than 90 percent of each group of
students described in subparagraph (B)(iv) who are
enrolled in such school are required to take the
assessments consistent with section 612(a)(17)(A) of
the Individuals with Disabilities Education Act and
paragraph (4)(F)(iii) on which adequate yearly progress
is based. The requirement of this subparagraph must be
met for such assessments to be used to determine
whether a school is making adequate yearly progress.
``(F) Public notice and comment.--Each State shall
ensure that in developing its plan for adequate yearly
progress, it diligently seeks public comment from a
range of institutions and individuals in the State with
an interest in improved student achievement and that
the State makes and will continue to make a substantial
effort to ensure that information under this part is
widely known and understood by the public, parents,
teachers, and school administrators throughout the
State. Such efforts shall include, at a minimum,
publication of such information and explanatory text,
broadly to the public through such means as the
Internet, the media, and public agencies.
``(G) Review.--The Secretary shall review the
information from States on the adequate yearly progress
of schools and local educational agencies required
under subparagraphs (A) and (B) for the purpose of
determining State and local compliance with section
1116.
``(H) Revision.--The Secretary shall require States
to revise their definition of adequate yearly progress,
consistent with the requirements of this paragraph.
Such revisions shall be submitted to the Secretary for
approval not later than 1 year after the date of
enactment of the Leave No Child Behind Act of 2001.
``(3) State authority.--If a State educational agency
provides evidence that is satisfactory to the Secretary that
neither the State educational agency nor any other State
government official, agency, or entity has sufficient
authority, under State law, to adopt curriculum content and
student performance standards, and assessments aligned with
such standards, that will be applicable to all students
enrolled in the State's public schools, then the State
educational agency may meet the requirements of this subsection
by--
``(A) adopting standards and assessments that meet
the requirements of this subsection, on a statewide
basis, limiting their applicability to students served
under this part; or
``(B) adopting and implementing policies that
ensure that each local educational agency in the State
that receives grants under this part will adopt
curriculum content and student performance standards,
and assessments aligned with such standards, that meet
all of the criteria in this subsection and any
regulations regarding such standards and assessments
that the Secretary may publish, and that are applicable
to all students served by each such local educational
agency.
``(4) Assessments.--Each State plan shall demonstrate that
the State has implemented and is administering a set of high-
quality, yearly student assessments that include, at a minimum,
assessments in mathematics, reading or language arts, and
science as the primary means of determining the yearly
performance of each local educational agency and school served
under this title in enabling all children served under this
part to meet the State's challenging student performance
standards. Such assessments shall--
``(A) be the same assessments used to measure the
performance of all children, if the State measures the
performance of all children;
``(B) be criterion referenced and aligned with the
State's challenging content and student performance
standards and provide coherent information about
student attainment of such standards;
``(C) be used for purposes for which such
assessments are valid and reliable, and be consistent
with relevant, nationally recognized professional and
technical standards for such assessments;
``(D) measure the proficiency of students in the
academic subjects in which a State has adopted
challenging content and student performance standards
and be administered not less than one or more times
during--
``(i) grades 3 through 5;
``(ii) grades 6 through 9; and
``(iii) grades 10 through 12;
``(E) involve multiple up-to-date measures of
student performance, including measures that assess
higher order thinking skills and understanding;
``(F) provide for--
``(i) the participation in such assessments
of all students;
``(ii) the reasonable adaptations and
accommodations for students with disabilities
defined under 602(3) of the Individuals with
Disabilities Education Act necessary to measure
the achievement of such students relative to
State content and State student performance
standards; and
``(iii) the inclusion of limited English
proficient students who shall be assessed, to
the extent practicable, in the language and
form most likely to yield accurate and reliable
information on such students' knowledge of, and
skills in, the subject area being assessed;
``(G) include students who have attended schools in
a local educational agency for a full academic year but
have not attended a single school for a full academic
year, except that the performance of students who have
attended more than 1 school in the local educational
agency in any academic year shall be used only in
determining the progress of the local educational
agency;
``(H) provide individual student reports, which
include assessment scores, or other information on the
attainment of student performance standards; and
``(I) enable results to be disaggregated within
each State, local educational agency, and school by
gender, by each major racial and ethnic group, by
English proficiency status, by migrant status, by
students with disabilities as compared to nondisabled
students, and by economically disadvantaged students as
compared to students who are not economically
disadvantaged.
``(5) Special rule.--
``(A) In general.--Assessment measures that do not
meet the requirements of paragraph (4)(C) may be
included as one of the multiple measures, if a State
includes in the State plan information regarding the
State's efforts to validate such measures.
``(B) Student literacy skills.--States may measure
the literacy skills of students 1 or more times during
kindergarten through grade 2. Such measurement shall
serve only as a diagnostic tool, with its sole purpose
being the improvement of reading instruction.
``(6) Language assessments.--Each State plan shall identify
the languages other than English that are present in the
participating student population and indicate the languages for
which yearly student assessments are not available and are
needed. The State shall make every effort to develop such
assessments and may request assistance from the Secretary if
linguistically accessible assessment measures are needed. Upon
request, the Secretary shall assist with the identification of
appropriate assessment measures in the needed languages, but
shall not mandate a specific assessment or mode of instruction.
``(7) Requirement.--Each State plan shall describe--
``(A) how the State educational agency will ensure
that each local educational agency and school affected
by the State plan to develop the capacity to comply
with each of the requirements of sections
1112(c)(1)(D), 1114(c), and 1115(c) that is applicable
to such agency or school;
``(B) what specific steps the State educational
agency will take to assist, and provide resources to,
schools and local educational agencies that receive
funds under this part to ensure that all students
enrolled in such schools and local educational agencies
reach, at a minimum, the proficient level of
performance;
``(C) the actions the State will take to ensure
that critical education services and resources are
available in local educational agencies that receive
funds under this part to the extent that such services
are available in local educational agencies that do not
receive funds under this part;
``(D) whether services in local educational
agencies that receive funds under this part are of
comparable quality to the services in local educational
agencies that do not receive funds under this part;
``(E) at a minimum--
``(i) how the State will ensure, not later
than December 1, 2004, that students from
families with incomes below the poverty line
and minority students receive instruction from
fully qualified teachers at the same rate as
other students;
``(ii) how the State will ensure, not later
than December 1, 2004, that students from
families with incomes below the poverty line
and minority students have the same access to
challenging curricula and rigorous courses,
including advance placement courses, as do
other students;
``(iii) how the State will ensure, not
later than December 1, 2004, that the quality
and availability of instructional materials and
instructional resources including technology in
local educational agencies receiving funds
under this part, is comparable to such quality
and availability in local educational agencies
not receiving funds under this part; and
``(F) the measures that the State educational
agency will use annually to measure and publicly report
progress regarding subparagraph (E).
``(8) Exclusion from assessments.--
``(A) In general.--Local educational agencies
receiving funds under this part shall compile
information and report, by individual school, on
students who do not participate in assessments required
under paragraph (4). Such report, which shall be
distributed widely to the public, shall include--
``(i) a list of each reason that students
did not participate in any such assessment; and
``(ii) the number from each group of
students described in paragraph (2)(B)(iv) who
did not participate on any such assessment for
each reason.
``(B) Protection.--Reports required under
subparagraph (A) shall not report information in a case
in which it would reveal individually identifiable
information.
``(c) Other Provisions To Support Teaching and Learning.--Each
State plan shall contain assurances that--
``(1) the State educational agency will work with other
agencies, including educational service agencies or other local
consortia, and institutions to provide technical assistance to
local educational agencies and schools to carry out the State
educational agency's responsibilities under this part,
including technical assistance in providing professional
development under section 1119 and technical assistance under
section 1117; and
``(2)(A) where educational service agencies exist, the
State educational agency will consider providing professional
development and technical assistance through such agencies; and
``(B) where educational service agencies do not exist, the
State educational agency will consider providing professional
development and technical assistance through other cooperative
agreements such as through a consortium of local educational
agencies;
``(3) the State educational agency will notify local
educational agencies and the public of the content and student
performance standards and assessments developed under this
section, and of the authority to operate schoolwide programs,
and will fulfill the State educational agency's
responsibilities regarding local educational agency improvement
and school improvement under section 1116, including such
corrective actions as are necessary;
``(4) the State educational agency will provide the least
restrictive and burdensome regulations for local educational
agencies and individual schools participating in a program
assisted under this part;
``(5) if applicable, the State educational agency will
inform the Secretary and the public of how and which Federal
laws hinder the ability of States--
``(A) to improve overall student achievement; and
``(B) to close achievement gaps between groups of
students described in subsection (b)(2)(B)(iv);
``(6) the State educational agency will encourage schools
to consolidate funds from other Federal, State, and local
sources for schoolwide reform in schoolwide programs under
section 1114;
``(7) the State educational agency will modify or eliminate
State fiscal and accounting barriers so that schools can easily
consolidate funds from other Federal, State, and local sources
for schoolwide programs under section 1114;
``(8) the State educational agency has involved the
committee of practitioners established under section 1603(b) in
developing the plan and monitoring its implementation; and
``(9) the State educational agency will inform local
educational agencies of the local educational agency's
authority to seek waivers under title X and, if the State is an Ed-Flex
Partnership State, waivers under the Education Flexibility Partnership
Act of 1999 (30 U.S.C. 589a et seq.).
``(d) Peer Review and Secretarial Approval.--
``(1) Secretarial duties.--The Secretary shall--
``(A) establish a peer review process to assist in
the review of State plans;
``(B) approve a State plan after its submission
unless the Secretary determines that the plan does not
meet the requirements of this section;
``(C) if the Secretary determines that the State
plan does not meet the requirements of subsection (a),
(b), or (c), immediately notify the State of such
determination and the reasons for such determination;
``(D) not decline to approve a State's plan
before--
``(i) offering the State an opportunity to
revise its plan;
``(ii) providing technical assistance in
order to assist the State to meet the
requirements under subsections (a), (b), and
(c); and
``(iii) providing a hearing;
``(E) have the authority to disapprove a State plan
for not meeting the requirements of this part, but
shall not have the authority to require a State, as a
condition of approval of the State plan, to include in,
or delete from, such plan one or more specific elements
of the State's content standards or to use specific
assessment instruments or items; and
``(2) State revisions.--States shall revise their plans if
necessary to satisfy the requirements of this section. Revised
plans shall be submitted to the Secretary for approval not
later than 1 year after the date of enactment of the Leave No
Child Behind Act of 2001.
``(e) Duration of the Plan.--
``(1) In general.--Each State plan shall--
``(A) be submitted for the first year for which
this part is in effect after the date of enactment of
the Leave No Child Behind Act of 2001;
``(B) remain in effect for the duration of the
State's participation under this part; and
``(C) be periodically reviewed and revised by the
State, as necessary, to reflect changes in the State's
strategies and programs under this part.
``(2) Additional information.--If the State makes
significant changes in its plan, such as the adoption of new
State content standards and State student performance
standards, new assessments, or a new definition of adequate
yearly progress, the State shall submit such information to the
Secretary.
``(f) Limitation on Conditions.--Nothing in this part shall be
construed to authorize an officer or employee of the Federal Government
to mandate, direct, or control a State, local educational agency, or
school's specific instructional content or student performance
standards and assessments, curriculum, or program of instruction, as a
condition of eligibility to receive funds under this part.
``(g) Penalties.--
``(1) In general.--If a State fails to demonstrate that it
has in place challenging content standards and student
performance standards and assessments, and a system for
measuring and monitoring adequate yearly progress which
includes the disaggregation of data by groups, as described in
subsection (b)(2)(B)(iv), the State shall be ineligible to
receive any administrative funds under section 1002(h) that
exceed the amount received by the State for such purpose in the
previous year.
``(2) Additional funds.--Based on the extent to which the
requirements of paragraph (1) are not met, additional
administrative funds shall be withheld in such amount as the
Secretary determines appropriate, except that for each
additional year that the State fails to comply with such
requirements, the Secretary shall withhold not less than one-
fifth of the amount the State receives for administrative
expenses under section 1002(h).
``(3) Waiver.--Notwithstanding title X of this Act and the
Education Flexibility Partnership Act of 1999 or any other
provision of law, a waiver shall not be granted except that a
State may request a 1-time, 1-year waiver to meet the
requirements of this section.
``(h) School Report Cards; Parental Information.--
``(1) In general.--
``(A) Annual report cards.--Not later than the
beginning of the 2002-2003 school year, a State that
receives assistance under this Act shall prepare and
publicly disseminate an annual report card on all
schools that receive funds under this part. States and
local educational agencies may issue report cards under
this section only for local educational agencies and
schools receiving funds under this part, except that if
a State or local educational agency issues a report
card for all students, the State or local educational
agency may include the information under this section
as part of such report card.
``(B) Implementation.--The State shall ensure the
dissemination of this information at all levels. Such
information shall be--
``(i) concise; and
``(ii) presented in a format and manner,
and to the extent practicable, in a language
that parents can understand.
``(2) Content of annual state report cards.--
``(A) Required information.--The State shall, at a
minimum, include in the annual State report cards
information for the State on each local educational
agency and school regarding--
``(i) student performance on statewide
assessments for the current and preceding years
in at least mathematics, reading or language
arts, and science, including--
``(I) a comparison of the
proportions of students who performed
at `basic', `proficient', and
`advanced' levels in each subject area,
for each grade level at which
assessments are required under this
part, with proportions in each of the
same 3 categories at the same grade
levels in the previous school year; and
``(II) a statement of the
percentage of students not tested and a
listing of categories of the reasons
why they were not tested;
``(ii) retention in grade, completion of
advanced placement courses, and 4-year
graduation rates;
``(iii) the professional qualifications of
teachers in the aggregate, including the
percentage of course sections in core academic
subjects taught by teachers with emergency or
provisional credentials, and the percentage of
class sections not taught by fully qualified
teachers; and
``(iv) the professional qualifications of
paraprofessionals, the number of
paraprofessionals in the aggregate and the
ratio of paraprofessionals to teachers in the
classroom.
``(B) Student data.--Student data in each report
card shall contain disaggregated results for the
following categories:
``(i) Gender.
``(ii) Racial and ethnic group.
``(iii) Migrant status.
``(iv) Students with disabilities, as
compared to students who are not disabled.
``(v) Economically disadvantaged students,
as compared to students who are not
economically disadvantaged.
``(vi) Students with limited English
proficiency, as compared to students who are
proficient in English.
``(C) Optional information.--A State may include in
its report card any other information it determines
appropriate to reflect school quality and school
achievement, including information on average class
size by grade level, and information on school safety,
such as the incidence of school violence and drug and
alcohol abuse, and the incidence of student suspensions
and expulsions.
``(3) Content of local educational agencies reports.--
``(A) Minimum requirements.--The State shall ensure
that each local educational agency collects appropriate
data and publishes and publicly disseminates an annual
report card for each of its schools that includes, at a
minimum--
``(i) the information described in
paragraphs (2)(A) and (2)(B) for each local
educational agency and school and--
``(I) in the case of a local
educational agency--
``(aa) the number and
percentage of schools
identified for school
improvement, including schools
identified under section
1116(b) of this Act;
``(bb) information that
shows how students in its
schools perform on the
statewide assessment compared
to students in the State as a
whole; and
``(II) in the case of a school--
``(aa) whether it has been
identified for school
improvement; and
``(bb) information that
shows how its students
performed on the statewide
assessment compared to students
in the local educational agency
and the State as a whole.
``(B) Other information.--A local educational
agency may include in its annual report card any other
appropriate information regardless of whether such
information is included in the annual State report
card.
``(4) Dissemination and accessibility of reports.--
``(A) State report cards.--State annual report
cards under paragraph (2) shall be disseminated to all
schools and local educational agencies in the State,
and made broadly available to the public through means
such as posting on the Internet, distribution to the
media, and distribution through public agencies.
``(B) Local educational agency reports.--Local
educational agency report cards under paragraph (3)
shall be disseminated to all schools in the school
district and to all parents of students attending these
schools and made broadly available to the public
through means such as posting on the Internet,
distribution to the media, and distribution through
public agencies.
``(5) Parent's right-to-know.--
``(A) Qualifications.--A local educational agency
that receives funds under this part shall provide, upon
request, in an understandable and uniform format, to
any parent of a student attending any school receiving
funds under this part, information regarding the
professional qualifications of the student's classroom
teachers, including, at a minimum, the following:
``(i) Whether the teacher has met State
qualification and licensing criteria for the
grade levels and subject areas in which the
teacher provides instruction.
``(ii) Whether the teacher is teaching
under emergency or other provisional status
through which State qualification or licensing
criteria have been waived.
``(iii) The baccalaureate degree major of
the teacher and any other graduate
certification or degree held by the teacher,
and the field of discipline of the
certification or degree.
``(iv) Whether the child is provided
services by paraprofessionals and the
qualifications of such paraprofessional.
``(B) Additional information.--In addition to the
information that parents may request under subparagraph
(A), and the information provided in subsection (c), a
school that receives funds under this part shall
provide to each individual parent or guardian--
``(i) information on the level of
performance of the individual student for whom
they are the parent or guardian in each of the
State assessments as required under this part;
and
``(ii) timely notice that the student for
whom they are the parent or guardian has been
assigned or has been taught for 2 or more
consecutive weeks by a substitute teacher or by
a teacher not fully qualified.
``(C) Notification.--A local educational agency
shall notify parents of students attending any school
receiving funds under this part, on an annual basis, of
their ability to request information under this
paragraph and initially not later than 1 year after the
date of enactment of the Leave No Child Behind Act of
2001. A local educational agency shall provide such
notification to parents in a format, and to the extent
practicable, in a language they can understand.
``(6) Plan content.--A State shall include in its plan
under subsection (b) an assurance that it has in effect a
policy that meets the requirements of this section.
``(i) Privacy.--Information collected under this section shall be
collected and disseminated in a manner that protects the privacy of
individuals.
``(j) Special Rule on Science Standards and Assessments.--
Notwithstanding subsections (b) and (h), no State shall be required to
meet the requirements under this title relating to science standards or
assessments until the beginning of the 2006-2007 school year.''.
SEC. 3436. LOCAL EDUCATIONAL AGENCY PLANS.
(a) Plans Required.--Subsection (a) of section 1112 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6312(a)) is
amended--
(1) in paragraph (1), by striking ``the Goals 2000: Educate
America Act'' and all that follows and inserting the following:
``the Individuals with Disabilities Education Act, the Carl D.
Perkins Vocational and Technical Education Act of 1998, the
Head Start Act, and other Acts, as appropriate.''; and
(2) in paragraph (2), by striking ``14304'' and inserting
``10204''.
(b) Plan Provisions.--Subsection (b) of section 1112 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6312(b)) is
amended--
(1) by striking ``Each'' in the matter preceding paragraph
(1) and inserting ``In order to help low-achieving children
achieve to high standards, each'';
(2) in paragraph (1)--
(A) by striking ``part'' each place it appears and
inserting ``title'';
(B) in subparagraph (B), by inserting ``low-
achieving'' before ``children'';
(C) by striking ``and'' at the end of subparagraph
(B);
(D) by inserting ``and'' at the end of subparagraph
(C); and
(E) by adding at the end the following new
subparagraph:
``(D) determine the literacy levels of first
graders and their need for interventions, and a
description of how the local educational agency will
ensure that any such assessments--
``(i) are developmentally appropriate; and
``(ii) use multiple measures to provide
information about the variety of skills that
scientifically based research has identified as
leading to early acquisition of reading
skills.'';
(3) in paragraph (4)(B), by striking ``under part C or who
were formerly eligible for services under part C in the two-
year period preceding the date of enactment of the Improving
America's School Act of 1994, neglected or delinquent youth and
youth at risk of dropping out served under part D'' and
inserting ``under part C, neglected or delinquent youth, Indian
children served under title IX,'';
(4) in paragraph (7), by striking ``eligible homeless
children'' and inserting ``homeless children'';
(5) by striking the period at the end of paragraph (9) and
inserting ``; and''; and
(6) by adding at the end the following new paragraphs:
``(10) a description of the actions the local educational
agency will take to assist its low-performing schools,
including schools identified for improvement under section
1116;
``(11) a description of how the agency will promote the use
of extended learning time, such as an extended school year and
before and after school and summer programs; and
``(12) a description of the activity established by the
local educational agency in accordance with section
1119(b)(1).''.
(c) Assurances.--Subsection (c) of section 1112 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6312(c)) is amended to
read as follows:
``(c) Assurances.--
``(1) In general.--Each local educational agency plan shall
provide assurances that the local educational agency will--
``(A) inform eligible schools and parents of
schoolwide project authority and the ability of such
schools to consolidate funds from Federal, State, and
local sources;
``(B) provide technical assistance and support to
schoolwide programs;
``(C) work in consultation with schools as the
schools develop the schools' plans pursuant to section
1114 and assist schools as the schools implement such
plans or undertake activities pursuant to section 1115
so that each school can make adequate yearly progress
toward meeting the State student performance standards;
``(D) fulfill such agency's school improvement
responsibilities under section 1116, including taking
corrective actions under section 1116(b)(9);
``(E) provide services to eligible children
attending private elementary and secondary schools in
accordance with section 1120, and timely and meaningful
consultation with private school officials regarding
such services;
``(F) take into account the experience of model
programs for the educationally disadvantaged, and the
findings of relevant scientifically based research
indicating that services may be most effective if
focused on students in the earliest grades at schools
that receive funds under this part;
``(G) in the case of a local educational agency
that chooses to use funds under this part to provide
early childhood development services to low-income
children below the age of compulsory school attendance,
ensure that such services comply with the performance
standards established under section 641A(a) of the Head
Start Act;
``(H) inform eligible schools of the local
educational agency's authority to obtain waivers on the
school's behalf under title X of this Act, and if the
State is an Ed-Flex Partnership State, waivers under
the Education Flexibility Partnership Act of 1999;
``(I) coordinate and collaborate, to the extent
feasible and necessary as determined by the local
educational agency, with other agencies providing
services to children, youth, and families; and
``(J) ensure that by not later than December 1,
2004, students from families with incomes below the
poverty line and minority students are not taught by
teachers who are not fully qualified at a greater rate
than other students.
``(2) Special rule.--The Secretary--
``(A) shall consult with the Secretary of Health
and Human Services on the implementation of
subparagraph (G) and shall establish procedures (taking
into consideration existing State and local laws, and
local teacher contracts) to assist local educational
agencies to comply with such subparagraph; and
``(B) upon publication, shall disseminate to local
educational agencies the Head Start performance
standards as in effect under section 641A(a) of the
Head Start Act, and such agencies affected by
subparagraph (G) shall plan for the implementation of
such subparagraph (taking into consideration existing
State and local laws, and local teacher contracts),
including pursuing the availability of other Federal,
State, and local funding sources to assist in
compliance with such subparagraph.''.
(d) Plan Development and Duration.--Section 1112 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6312) is
amended by striking subsection (d) and inserting the following:
``(d) Plan Development and Duration.--
``(1) Consultation.--Each local educational agency plan
shall be developed in consultation with teachers,
administrators (including administrators of programs described
in other parts of this title), and other appropriate school
personnel, and with parents of children in schools served under
this part.
``(2) Duration.--Each such plan shall be submitted for the
first year for which this part is in effect following the date
of enactment of the Leave No Child Behind Act of 2001 and shall
remain in effect for the duration of the agency's participation
under this part.
``(3) Review.--Each such local educational agency shall
periodically review, and as necessary, revise its plan.''.
(e) State Approval.--Section 1112 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6312(e)) is amended by striking
subsection (e) and inserting the following:
``(e) State Approval.--
``(1) In general.--Each local educational agency plan shall
be filed according to a schedule established by the State
educational agency.
``(2) Approval.--The State educational agency shall approve
a local educational agency's plan only if the State educational
agency determines that the local educational agency's plan--
``(A) will enable schools served under this part to
substantially help children served under this part meet
the standards expected of all children described in
section 1111(b)(1); and
``(B) will meet the requirements of this
section.''.
SEC. 3437. TARGETED ASSISTANCE SCHOOLS.
(a) Fully Qualified Teacher.--Subsection (c)(1)(F) of section 1115
of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6315(c)(1)(F)) is amended by striking ``highly qualified staff;'' and
inserting ``fully qualified teachers as defined in section
2812(4)(A);''.
(b) Integration of Professional Development.--Subsection (d) of
section 1115 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6515(d)) is amended to read as follows:
``(d) Integration of Professional Development.--To promote the
integration of staff supported with funds under this part, public
school personnel who are paid with funds received under this part may
participate in general professional development and school planning
activities.''.
SEC. 3438. SCHOOL CHOICE.
Subsection (b) of section 1115A of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6316(b)) is amended by striking
paragraphs (7) through (10) and inserting the following:
``(7) parents of eligible students in the local educational
agency will be given prompt notice of the existence of the
public school choice program and its availability to them, and
a clear explanation of how the program will operate;
``(8) the program will include charter schools and any
other public school and shall not include a school that is or
has been identified as a school in school improvement or is or
has been in corrective action for the past 2 consecutive years;
``(9) transportation services or the costs of
transportation may be provided by the local educational agency
with funds under this part; and
``(10) such local educational agency will comply with the
other requirements of this part.''.
SEC. 3439. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL
IMPROVEMENT.
(a) Local Review.--Section 1116(a) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6317(a)) is amended--
(1) in paragraph (2), by striking ``1111(b)(2)(A)(i)'' and
inserting ``1111(b)(2)(B)'';
(2) in paragraph (3), by striking ``individual school
performance profiles'' and inserting ``school reports'';
(3) in paragraph (3), by striking ``and'' after the
semicolon;
(4) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(5) by adding at the end the following:
``(5) review the effectiveness of the actions and
activities the schools are carrying out under this part with
respect to parental involvement assisted under this Act.''.
(b) School Improvement.--Section 1116 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6317) is amended by striking
subsections (b), (c), and (d) and by inserting after subsection (a) the
following:
``(b) School Improvement.--
``(1) In general.--A local educational agency shall
identify for school improvement any school served under this
part that--
``(A) for 2 consecutive years failed to make
adequate yearly progress as defined in the State's plan
under section 1111(b)(2); or
``(B) was in school improvement status under this
section on the day preceding the date of enactment of
the Leave No Child Behind Act of 2001.
``(2) Transition.--The 2-year period described in paragraph
(1)(A) shall include any continuous period of time immediately
preceding the date of enactment of the Leave No Child Behind
Act of 2001 during which a school did not make adequate yearly
progress as defined in the State's plan, as such plan was in
effect on the day preceding the date of such enactment.
``(3) Targeted assistance schools.--To determine if a
school that is conducting a targeted assistance program under
section 1115 should be identified as in need of improvement
under this subsection, a local educational agency may choose to
review the progress of only those students in such school who
are served under this part.
``(4) Opportunity to review and present evidence.--
``(A) In general.--Before identifying a school for
school improvement under paragraph (1), the local
educational agency shall provide the school with an
opportunity to review the school-level data, including
assessment data, on which the proposed identification
is based.
``(B) Supporting evidence.--If the school principal
believes that the proposed identification is in error
for statistical or other substantive reasons, the
principal may provide supporting evidence to the local
educational agency, which such agency shall consider
before making a final determination.
``(5) Notification to parents.--A local educational agency
shall, in an easily understandable format, provide in writing
to parents of each student in a school identified for school
improvement--
``(A) an explanation of what the school improvement
identification means and how the school compares in
terms of academic performance to other schools in the
local educational agency and State;
``(B) the reasons for such identification;
``(C) the data on which such identification is
based;
``(D) an explanation of what the school is doing to
address the problem of low achievement;
``(E) an explanation of how parents can become
involved in upgrading the quality of the school;
``(F) an explanation of the right of parents,
pursuant to paragraph (6), to transfer their child to
another public school, including a public charter
school, that is not in school improvement, and how such
transfer shall operate; and
``(G) notification to parents in a format and, to
the extent practicable, in a language they can
understand.
``(6) Public school choice option.--
``(A) Schools identified for improvement.--After
the date of enactment of the Leave No Child Behind Act
of 2001, a local educational agency shall provide all
students enrolled in a school identified for school
improvement with an option to transfer to any other
public school within the local educational agency or
any public school consistent with subparagraph (C),
including a public charter school that has not been
identified for school improvement, unless such option
to transfer is prohibited by State law, or local law,
which includes school board-approved local educational
agency policy.
``(B) Capacity.--If a local educational agency
described in subparagraph (A) demonstrates to the
satisfaction of the State educational agency that such
local educational agency lacks the capacity to provide
all students with the option to transfer described in
subparagraph (A), and after giving notice to the
parents of children affected that it is not possible,
consistent with State and local law, to accommodate the
transfer request of every student, the local
educational agency shall permit as many students as
possible (who shall be selected by the local
educational agency on an equitable basis) to transfer
to a public school that has not been identified for
school improvement under section 1116(b).
``(C) Cooperative agreement.--If all public schools
in the local educational agency to which a child may
transfer to, are identified for school improvement, the
agency shall, to the extent practicable, establish a
cooperative agreement with other local educational
agencies in the area for the transfer.
``(D) Transportation.--The local educational agency
in which the schools have been identified for
improvement may use up to 10 percent of the funds
received under this part to provide transportation to
students whose parents choose to transfer their child
or children to a different school.
``(E) Waiver.--A local educational agency using
funds received under this part for transportation
consistent with subparagraph (D) may request a waiver
of the limit of the use of such funds described in
subparagraph (D) from the Secretary.
``(F) Continue option.--Once a school is no longer
identified for school improvement, the local
educational agency may continue to provide public
school choice as an option to students in such school
for a period of not less than 2 years.
``(7) School plan.--
``(A) In general.--Each school identified under
paragraph (1) for school improvement shall, not later
than 3 months after being so identified, develop or
revise a school plan, in consultation with parents,
school staff, the local educational agency, and other
outside experts for approval by the local educational
agency. Such plan shall--
``(i) incorporate scientifically based
research strategies that strengthen the core
academic program in the school;
``(ii) adopt policies that have the
greatest likelihood of improving the
performance of participating children in
meeting the State's student performance
standards;
``(iii) address the professional
development needs of staff, particularly
teachers and principals;
``(iv) establish specific goals and
objectives the school will undertake for making
adequate yearly progress which include specific
numerical performance goals and targets for
each of the groups of students identified in
the disaggregated data pursuant to section
1111(b)(2), consistent with section
1111(b)(2)(B);
``(v) identify how the school will provide
written notification to parents, in a format
and to the extent practicable in a language
such parents can understand; and
``(vi) specify the responsibilities of the
local educational agency and the school under
the plan.
``(B) Conditional approval.--A local educational
agency may condition approval of a school plan,
including a revised plan, on inclusion of one or more
of the corrective actions specified in paragraph (9).
``(C) Implementation.--A school shall implement its
plan or revised plan expeditiously, but not later than
the beginning of the school year after which the school
has been identified for improvement.
``(D) Review.--The local educational agency shall
promptly review the plan, including a revised plan,
work with the school as necessary, and approve the plan
if it meets the requirements of this section.
``(8) Technical assistance.--
``(A) In general.--For each school identified for
school improvement under paragraph (1), the local
educational agency shall provide technical assistance
as the school develops and implements its plan,
including a revised plan.
``(B) Specific technical assistance.--Such
technical assistance--
``(i) shall include effective methods and
instructional strategies that are based upon
scientifically based research that strengthens
the core academic program in the school and
addresses the specific elements of student
performance problems in the school;
``(ii) may be provided directly by the
local educational agency, through mechanisms
authorized under section 1117, or with the
local educational agency's approval, by an
institution of higher education, a private
nonprofit organization, an educational service
agency, a comprehensive regional assistance
center under part A of title XIII (as such
center was in existence prior to the date of enactment of Leave No
Child Behind Act of 2001), or other entities with experience in helping
schools improve achievement.
``(C) Technical assistance.--Technical assistance
provided under this section by the local educational
agency or an entity authorized by such agency shall be
based upon scientifically based research.
``(9) Corrective action.--In order to help students served
under this part meet challenging State standards, each local
educational agency shall implement a system of corrective
action in accordance with the following:
``(A) In general.--After providing technical
assistance under paragraph (8) and subject to
subparagraph (F), the local educational agency--
``(i) may take corrective action at any
time with respect to a school that has been
identified under paragraph (1);
``(ii) shall take corrective action with
respect to any school that fails to make
adequate yearly progress, as defined by the
State, after the end of the second year
following its identification under paragraph
(1); and
``(iii) shall continue to provide technical
assistance while instituting any corrective
action under clause (i) or (ii).
``(B) Definition.--As used in this paragraph, the
term `corrective action' means action, consistent with
State and local law, that--
``(i) substantially and directly responds
to the consistent academic failure that caused
the local educational agency to take such
action and to any underlying staffing,
curricular, or other problems in the school;
and
``(ii) is designed to substantially
increase the likelihood that students will
perform at the proficient and advanced
performance levels.
``(C) Certain schools.--In the case of a school
described in subparagraph (A)(ii), the local
educational agency shall take not less than 1 of the
following corrective actions:
``(i) Withhold funds from the school.
``(ii) Decrease decisionmaking authority at
the school level.
``(iii) Make alternative governance
arrangements, including reopening the school as
a public charter school.
``(iv) Reconstitute the school by requiring
each person employed at the school to reapply
for future employment at the same school or for
any position in the local educational agency.
``(v) Authorize students to transfer to
other higher performing public schools served
by the local educational agency, including
public charter schools, and provide such
students transportation (or the costs of
transportation) to such schools in conjunction
with not less than 1 additional action
described under this subparagraph.
``(vi) Institute and fully implement a new
curriculum, including appropriate professional
development for all relevant staff, that is
based upon scientifically based research and
offers substantial promise of improving
educational achievement for low-performing
students.
``(D) Implementation delay.--A local educational
agency may delay, for a period not to exceed 1 year,
implementation of corrective action only if the failure
to make adequate yearly progress was justified due to
exceptional or uncontrollable circumstances such as a
natural disaster or a precipitous and unforeseen
decline in the financial resources of the local
educational agency or school.
``(E) Publication.--The local educational agency
shall publish, and disseminate to the public and to
parents in a format and, to the extent practicable, in
a language that they can understand, any corrective
action it takes under this paragraph through such means
as the Internet, the media, and public agencies.
``(F) Review.--(i) Before taking corrective action
with respect to any school under this paragraph, a
local educational agency shall provide the school an
opportunity to review the school level data, including
assessment data, on which the proposed determination is
made.
``(ii) If the school believes that the proposed
determination is in error for statistical or other
substantive reasons, it may provide supporting evidence
to the local educational agency, which shall consider
such evidence before making a final determination.
``(10) State educational agency responsibilities.--If a
State educational agency determines that a local educational
agency failed to carry out its responsibilities under this
section, it shall take such action as it finds necessary,
consistent with this section, to improve the affected schools
and to ensure that the local educational agency carries out its
responsibilities under this section.
``(c) State Review and Local Educational Agency Improvement.--
``(1) In general.--A State educational agency shall--
``(A) annually review the progress of each local
educational agency receiving funds under this part to
determine whether schools receiving assistance under
this part are making adequate yearly progress as
defined in section 1111(b)(2) toward meeting the
State's student performance standards; and
``(B) publicize and disseminate to local
educational agencies, teachers and other staff,
parents, students, and the community the results of the
State review consistent with section 1111, including
statistically sound disaggregated results, as required
by section 1111(b)(2).
``(2) Identification of local educational agency for
improvement.--A State educational agency shall identify for
improvement any local educational agency that--
``(A) for 2 consecutive years failed to make
adequate yearly progress as defined in the State's plan
under section 1111(b)(2); or
``(B) was in improvement status under this section
as this section was in effect on the day preceding the
date of enactment of the Leave No Child Behind Act of
2001.
``(3) Transition.--The 2-year period described in paragraph
(2)(A) shall include any continuous period of time immediately
preceding the date of enactment of the Leave No Child Behind
Act of 2001, during which a local educational agency did not
make adequate yearly progress as defined in the State's plan,
as such plan was in effect on the day preceding the date of
such enactment.
``(4) Targeted assistance schools.--For purposes of
targeted assistance schools in a local educational agency, a
State educational agency may choose to review the progress of only the
students in such schools who are served under this part.
``(5) Opportunity to review and present evidence.--
``(A) Review.--Before identifying a local
educational agency for improvement under paragraph (2),
a State educational agency shall provide the local
educational agency with an opportunity to review the
local educational agency data, including assessment
data, on which that proposed identification is based.
``(B) Supporting evidence.--If the local
educational agency believes that the proposed
identification is in error for statistical or other
substantive reasons, it may provide supporting evidence
to the State educational agency, which such agency
shall consider before making a final determination.
``(6) Notification to parents.--The State educational
agency shall promptly notify parents in a format, and to the
extent practicable in a language they can understand, of each
student enrolled in a school in a local educational agency
identified for improvement, of the reasons for such agency's
identification and how parents can participate in upgrading the
quality of the local educational agency.
``(7) Local educational agency revisions.--
``(A) Plan.--Each local educational agency
identified under paragraph (2) shall, not later than 3
months after being so identified, develop or revise a
local educational agency plan, in consultation with
parents, school staff, and others. Such plan shall--
``(i) incorporate scientifically based
research strategies that strengthen the core
academic program in the local educational
agency;
``(ii) identify specific goals and
objectives the local educational agency will
undertake to make adequate yearly progress and
which--
``(I) have the greatest likelihood
of improving the performance of
participating children in meeting the
State's student performance standards;
``(II) address the professional
development needs of staff; and
``(III) include specific numerical
performance goals and targets for each
of the groups of students identified in
the disaggregated data pursuant to
section 1111(b)(2) consistent with
section 1111(b)(2)(B);
``(iii) identify how the local educational
agency will provide written notification to
parents in a format, and to the extent
practicable in a language, they can understand,
pursuant to paragraph (6); and
``(iv) specify the responsibilities of the
State educational agency and the local
educational agency under the plan.
``(B) Implementation.--The local educational agency
shall implement its plan or revised plan expeditiously,
but not later than the beginning of the school year
after which the school has been identified for
improvement.
``(8) State educational agency responsibility.--
``(A) In general.--For each local educational
agency identified under paragraph (2), the State
educational agency shall provide technical or other
assistance, if requested, as authorized under section
1117, to better enable the local educational agency--
``(i) to develop and implement its revised
plan as approved by the State educational
agency consistent with the requirements of this
section; and
``(ii) to work with schools needing
improvement.
``(B) Technical assistance.--Technical assistance
provided under this section by the State educational
agency or an entity authorized by such agency shall be
based upon scientifically based research.
``(9) Corrective action.--In order to help students served
under this part meet challenging State standards, each State
educational agency shall implement a system of corrective
action in accordance with the following:
``(A) In general.--After providing technical
assistance under paragraph (8) and subject to
subparagraph (D), the State educational agency--
``(i) may take corrective action at any
time with respect to a local educational agency
that has been identified under paragraph (2);
``(ii) shall take corrective action with
respect to any local educational agency that
fails to make adequate yearly progress, as
defined by the State, after the end of the
second year following its identification under
paragraph (2); and
``(iii) shall continue to provide technical
assistance while instituting any corrective
action under clause (i) or (ii).
``(B) Definition.--As used in this paragraph, the
term `corrective action' means action, consistent with
State law, that--
``(i) substantially and directly responds
to the consistent academic failure that caused
the State educational agency to take such
action and to any underlying staffing,
curricular, or other problems in the school;
and
``(ii) is designed to meet the goal of
having all students served under this part
perform at the proficient and advanced
performance levels.
``(C) Certain local educational agencies.--In the
case of a local educational agency described in this
paragraph, the State educational agency shall take not
less than 1 of the following corrective actions:
``(i) Withhold funds from the local
educational agency.
``(ii) Reconstitute school district
personnel.
``(iii) Remove particular schools from the
jurisdiction of the local educational agency
and establish alternative arrangements for
public governance and supervision of such
schools.
``(iv) Appoint, through the State
educational agency, a receiver or trustee to
administer the affairs of the local educational
agency in place of the superintendent and
school board.
``(v) Abolish or restructure the local
educational agency.
``(vi) Authorize students to transfer from
a school operated by a local educational agency
to a higher performing public school operated
by another local educational agency, or to a
public charter school and provide such students
transportation (or the costs of transportation)
to such schools, in conjunction with not less
than 1 additional action described under this
paragraph.
``(D) Hearing.--Prior to implementing any
corrective action, the State educational agency shall
provide due process and a hearing to the affected local
educational agency, if State law provides for such
process and hearing.
``(E) Publication.--The State educational agency
shall publish, and disseminate to parents and the
public any corrective action it takes under this
paragraph through such means as the Internet, the
media, and public agencies.
``(F) Delay.--A State educational agency may delay,
for a period not to exceed 1 year, implementation of
corrective action if the failure to make adequate
yearly progress was justified due to exceptional or
uncontrollable circumstances such as a natural disaster
or a precipitous and unforeseen decline in the
financial resources of the local educational agency or
school.''.
SEC. 3440. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.
Section 1117 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6318) is amended to read as follows:
``SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.
``(a) System for Support.--Each State educational agency shall
establish a statewide system of intensive and sustained support and
improvement for local educational agencies and schools receiving funds
under this part, in order to increase the opportunity for all students
in those agencies and schools to meet the State's content standards and
student performance standards.
``(b) Priorities.--In carrying out this section, a State
educational agency shall--
``(1) first, provide support and assistance to local
educational agencies subject to corrective action under section
1116 and assist schools, in accordance with section
1116(b)(10), for which a local educational agency has failed to
carry out its responsibilities under paragraph (8) or (9) of
section 1116(b);
``(2) second, provide support and assistance to other local
educational agencies identified for improvement under section
1116; and
``(3) third, provide support and assistance to other local
educational agencies and schools participating under this part
that need that support and assistance in order to achieve the
purpose of this part.
``(c) Approaches.--In order to achieve the purpose described in
subsection (a), each such system shall provide technical assistance and
support through such approaches as--
``(1) school support teams, composed of individuals who are
knowledgeable about scientifically based research on and
practice of teaching and learning, particularly about
strategies for improving educational results for low-achieving
children; and
``(2) the designation and use of ``Distinguished
Educators'', chosen from schools served under this part that
have been especially successful in improving academic
achievement.
``(d) Funds.--Each State educational agency shall use funds
reserved under section 1002(f) and authorized under section 1002(i) for
such purpose.
``(e) Alternatives.--The State may devise additional approaches to
providing the assistance described in paragraphs (1) and (2) of
subsection (c), such as providing assistance through institutions of
higher education and educational service agencies or other local
consortia, and the State may seek approval from the Secretary to use
funds made available under section 1002(h) for such approaches as part
of the State plan.''.
SEC. 3441. ACADEMIC ACHIEVEMENT AWARDS PROGRAM; IMPROVING STATE
ASSESSMENTS.
Subpart 1 of part A of title I of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311 et seq.) is amended by inserting
after section 1117 the following:
``SEC. 1117A. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.
``(a) Establishment of Academic Achievement Awards Program.--
``(1) In general.--Each State receiving a grant under this
part shall establish a program for making academic achievement
awards to recognize and financially reward schools served under
this part that have--
``(A) significantly closed the achievement gap
between the groups of students defined in section
1111(b)(2); or
``(B) exceeded their adequate yearly progress
goals, consistent with section 1111(b)(2), for 2 or
more consecutive years.
``(2) Awards to teachers.--A State program under paragraph
(1) shall also recognize and provide financial awards to
teachers teaching in a school described in such paragraph whose
students consistently make significant gains in academic
achievement in the areas in which the teacher provides
instruction over multiple academic years.
``(b) Funding.--
``(1) Reservation of funds by state.--For the purpose of
carrying out this section, each State receiving a grant under
this part shall reserve, from the amount (if any) by which the
funds received by the State under this part for a fiscal year
exceed the amount received by the State under this part for the
preceding fiscal year, not more than 25 percent of such excess
amount.
``(2) Use within 3 years.--Notwithstanding any other
provision of law, the amount reserved under paragraph (1) by a
State for each fiscal year shall remain available to the State
until expended for a period not exceeding 3 years.
``(3) Special allocation rule for schools in high-poverty
areas.--
``(A) In general.--Each State receiving a grant
under this part shall distribute at least 85 percent of
the amount reserved under paragraph (1) for each fiscal
year to schools described in subparagraph (B), or to
teachers teaching in such schools.
``(B) Schools described.--A school described in
subparagraph (A) is a school whose student population
is in the highest quartile of schools statewide in
terms of the percentage of children eligible for free
or reduced priced lunches under the Richard B. Russell
National School Lunch Act.
``SEC. 1117B. GRANTS FOR THE IMPROVEMENT OF STATE ASSESSMENT SYSTEMS.
``(a) Purpose.--The purpose of this section is to enable States to
improve the quality and fairness of State assessment systems and to
ensure that such assessment systems accurately measure how well all
children are achieving challenging State student performance standards.
``(b) Program Authorized.--The Secretary is authorized to award
grants, in an amount not less than $500,000, to State educational
agencies with final assessment systems that have been reviewed by the
Secretary and approved as being deemed in full compliance with section
1111(b)(4).
``(c) Application.--A State educational agency desiring a grant
under this section for any fiscal year, shall submit an application to
the Secretary for approval, at such time and containing such
information as the Secretary may require.
``(d) Authorized Uses of Funds.--States having an approved
application under subsection (c) may use grant funds for the purpose
of--
``(1) assuring the continued validity and reliability of
State assessments;
``(2) refining the assessments to ensure their continued
alignment with the State's content standards;
``(3) providing for multiple measures to increase the
reliability and validity of student and school classifications
that have high stakes consequences;
``(4) strengthening the capacity of local educational
agencies and schools to provide all students the opportunity to
increase educational achievement and to ensure fairness and
equitable treatment in testing;
``(5) expanding the range of accommodations available to
limited English proficient students and students with
disabilities to improve rates of inclusion and to include
instructional material development and modified assessment
practices that are culturally and ability appropriate,
respectively;
``(6) improving the alignment of curricula and instruction
materials with the State content standards and State
performance standards;
``(7) enhancing opportunities for professional development
for teachers that include--
``(A) improving the capability of teachers to be
proficient in sound classroom assessment and
knowledgeable in State content and performance
standards and assessments; and
``(B) improving the capability of teachers to
provide high quality instruction within the content
areas;
``(8) providing for the collection of performance data for
children in kindergarten through grade 2--
``(A) for early diagnosis of children's needs;
``(B) to evaluate program effectiveness;
``(C) to guide curriculum and instruction; or
``(D) to provide information that can be used to
measure school and local educational agency progress;
``(9) expanding the range of valid and reliable assessments
to other academic subjects such as science, history, geography,
foreign languages, the arts, civic and government, and
economics; and
``(10) improving the dissemination of information on
student achievement and school performance to parents and the
community.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section, $100,000,000 for fiscal year
2002, and such sums as may be necessary for each of the 4 succeeding
fiscal years.''.
SEC. 3442. PARENTAL INVOLVEMENT CHANGES.
(a) Local Educational Agency Policy.--Subsection (a) of section
1118 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6319(a)) is amended--
(1) in paragraph (1), by striking ``programs, activities,
and procedures'' and inserting ``activities and procedures''.
(2) in paragraph (2) by striking subparagraphs (E) and (F)
and inserting the following:
``(E) conduct, with the involvement of parents, an
annual evaluation of the content and effectiveness of
the parental involvement policy in improving the
academic quality of the schools served under this part;
``(F) involve parents in efforts to improve
academics in schools served under this part; and
``(G) promote consumer friendly environments at the
local educational agency and schools served under this
part.'';
(3) in paragraph (3) by adding at the end the following new
subparagraph:
``(C) Not less than 90 percent of the funds reserved under
subparagraph (A) shall be distributed to schools served under
this part.''.
(b) Notice.--Paragraph (1) of section 1118(b) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6319(b)(1)) is amended by
inserting after the first sentence the following: ``Parents shall be
notified of the policy in a format, and to the extent practicable, in a
language they can understand.''.
(c) Parental Involvement.--Paragraph (4) of section 1118(c) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6319(c)(4))
is amended--
(1) in subparagraph (B), by striking ``performance profiles
required under section 1116(a)(3)'' and inserting ``school
report cards required under section 1111'';
(2) by redesignating subparagraphs (D) and (E) as
subparagraphs (F) and (G), respectively;
(3) by inserting after subparagraph (C) the following new
subparagraphs:
``(D) notice of the school's status as a school
identified for school improvement under section
1116(b), if applicable, and a clear explanation of what
such identification means;
``(E) notice of the corrective action that has been
taken against the school under section 1116(b)(9) and
1116(c)(9), if applicable, and a clear explanation of
what such action means;''; and
(4) in subparagraph (G) (as so redesignated), by striking
``subparagraph (D)'' and inserting ``subparagraph (F)''.
(d) Building Capacity for Involvement.--Subsection (e) of section
1118 of the Elementary and Secondary Education Act of 1965 (20 U.S.C
6319(e)) is amended to read as follows:
``(e) Building Capacity for Involvement.--To ensure effective
involvement of parents and to support a partnership among the school,
parents, and the community to improve student achievement, each school
and local educational agency--
``(1) shall provide assistance to participating parents in
such areas as understanding the State's content standards and
State student performance standards, the provisions of section
1111(b)(8), State and local assessments, the requirements of
this part, and how to monitor a child's progress and work with
educators to improve the performance of their children as well
as information on how parents can participate in decisions
relating to the education of their children;
``(2) shall provide materials and training, such as--
``(A) coordinating necessary literacy training from
other sources to help parents work with their children
to improve their children's achievement; and
``(B) training to help parents work with their
children to improve their children's achievement;
``(3) shall educate teachers, pupil services personnel,
principals, and other staff, with the assistance of parents, in
the value and utility of contributions of parents, and in how
to reach out to, communicate with, and work with parents as
equal partners, implement and coordinate parent programs, and
build ties between home and school;
``(4) shall coordinate and integrate parent involvement
programs and activities with Head Start, Even Start, the Home
Instruction Programs for Preschool Youngsters, the Parents as
Teachers Program, and public preschool programs and other
programs, to the extent feasible and appropriate;
``(5) shall conduct other activities, as appropriate and
feasible, such as parent resource centers and opportunities for
parents to learn how to become full partners in the education
of their children;
``(6) shall ensure, to the extent possible, that
information related to school and parent programs, meetings,
and other activities is sent to the homes of participating
children in the language used in such homes;
``(7) shall provide such other reasonable support for
parental involvement activities under this section as parents
may request;
``(8) shall expand the use of electronic communications
among teachers, students, and parents, such as through the use
of websites and e-mail communications;
``(9) may involve parents in the development of training
for teachers, principals, and other educators to improve the
effectiveness of such training in improving instruction and
services to the children of such parents in a format, and to
the extent practicable, in a language the parents can
understand;
``(10) may provide necessary literacy training from funds
received under this part if the local educational agency has
exhausted all other reasonably available sources of funding for
such activities;
``(11) may pay reasonable and necessary expenses associated
with local parental involvement activities, including
transportation and child care costs, to enable parents to
participate in school-related meetings and training sessions;
``(12) may train and support parents to enhance the
involvement of other parents;
``(13) may arrange meetings at a variety of times, such as
in the mornings and evenings, in order to maximize the
opportunities for parents to participate in school related
activities;
``(14) may arrange for teachers or other educators, who
work directly with participating children, to conduct in-home
conferences with parents who are unable to attend such
conferences at school;
``(15) may adopt and implement model approaches to
improving parental involvement, such as Even Start;
``(16) may establish a district-wide parent advisory
council to advise on all matters related to parental
involvement in programs supported under this part; and
``(17) may develop appropriate roles for community-based
organizations and businesses in parent involvement activities,
including providing information about opportunities for
organizations and businesses to work with parents and schools,
and encouraging the formation of partnerships between
elementary, middle, and secondary schools and local businesses
that include a role for parents.''.
(e) Accessibility.--Subsection (f) of section 1118 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6319(f)) is
amended to read as follows:
``(f) Accessibility.--In carrying out the parental involvement
requirements of this part, local educational agencies and schools, to
the extent practicable, shall provide full opportunities for the
participation of parents with limited English proficiency, parents with
disabilities, and parents of migratory children, including providing
information and school report cards required under section 1111 in a
format, and to the extent practicable, in a language such parents
understand.''.
SEC. 3443. PROFESSIONAL DEVELOPMENT.
Subpart 1 of part A of title I of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311 et seq.) is amended by inserting
after section 1119 the following:
``SEC. 1119A. PROFESSIONAL DEVELOPMENT.
``(a) Purpose.--The purpose of this section is to assist each local
educational agency receiving assistance under this part in increasing
the academic achievement of eligible children (as defined in section
1115(b)(1)(B)) through improved teacher quality.
``(b) Professional Development Activities.--
``(1) Required activities.--Professional development
activities under this section shall--
``(A) support professional development activities
that give teachers, principals, and administrators the
knowledge and skills to provide students with the
opportunity to meet challenging State or local content
standards and student performance standards;
``(B) support the recruiting, hiring, and training
of fully qualified teachers, including teachers fully
qualified through State and local alternative routes;
``(C) advance teacher understanding of effective
instructional strategies based on scientifically based
research for improving student achievement, at a
minimum, in reading or language arts and mathematics;
``(D) be directly related to the curriculum and
content areas in which the teacher provides
instruction;
``(E) be designed to enhance the ability of a
teacher to understand and use the State's standards for
the subject area in which the teacher provides
instruction;
``(F) be tied to scientifically based research
demonstrating the effectiveness of such professional
development activities or programs in increasing
student achievement or substantially increasing the
knowledge and teaching skills of teachers;
``(G) be of sufficient intensity and duration (not
to include 1-day or short-term workshops and
conferences) to have a positive and lasting impact on
the teacher's performance in the classroom, except that
this paragraph shall not apply to an activity if such
activity is 1 component of a long-term comprehensive
professional development plan established by the
teacher and the teacher's supervisor based upon an
assessment of their needs, their students' needs, and
the needs of the local educational agency;
``(H) be developed with extensive participation of
teachers, principals, parents, and administrators of
schools to be served under this part;
``(I) to the extent appropriate, provide training
for teachers in the use of technology so that
technology and its applications are effectively used in
the classroom to improve teaching and learning in the
curriculum and academic content areas in which the
teachers provide instruction;
``(J) as a whole, be regularly evaluated for their
impact on increased teacher effectiveness and improved
student achievement, with the findings of such
evaluations used to improve the quality of professional
development; and
``(K) include strategies for identifying and
eliminating gender and racial bias in instructional
materials, methods, and practices.
``(2) Optional activities.--Such professional development
activities may include--
``(A) instruction in the use of data and
assessments to inform and instruct classroom practice;
``(B) instruction in ways that teachers,
principals, pupil services personnel, and school
administrators may work more effectively with parents;
``(C) the forming of partnerships with institutions
of higher education to establish school-based teacher
training programs that provide prospective teachers and
novice teachers with an opportunity to work under the
guidance of experienced teachers and college faculty,
but only if each such institution of higher education
meets the reporting requirements of section 207 of the
Higher Education Act of 1965 (20 U.S.C. 1027) and its
teacher preparation program has not been identified by
its State as low-performing under such Act;
``(D) the creation of career ladder programs for
paraprofessionals (assisting teachers under this part)
to obtain the education necessary for such
paraprofessionals to become licensed and certified
teachers;
``(E) instruction in ways to teach special needs
children;
``(F) instruction in the ways that teachers,
principals, and guidance counselors can work with
parents and students from groups such as females and
minorities that are under represented in careers in
mathematics, science, engineering, and technology, to
encourage and maintain the interest of such students in
these careers;
``(G) joint professional development activities
involving programs under this part, Head Start, Even
Start, or State-run preschool program personnel;
``(H) instruction in experiential-based teaching
methods such as service or applied learning;
``(I) mentoring programs focusing on changing
teacher behaviors and practices to help novice
teachers, including teachers who are members of a
minority group, develop and gain confidence in their
skills, to increase the likelihood that they will
continue in the teaching profession, and generally to
improve the quality of their teaching; and
``(J) instruction in gender-equitable methods,
techniques, and practices.
``(c) Program Participation.--Each local educational agency
receiving assistance under this part may design professional
development programs so that--
``(1) all school staff in schools participating in a
schoolwide program under section 1114 can participate in
professional development activities; and
``(2) all school staff in targeted assistance schools may
participate in professional development activities if such
participation will result in better addressing the needs of
students served under this part.
``(d) Parental Participation.--Parents may participate in
professional development activities under this part if the school
determines that parental participation is appropriate.
``(e) Consortia.--In carrying out such professional development
programs, local educational agencies may provide services through
consortia arrangements with other local educational agencies,
educational service agencies or other local consortia, institutions of
higher education, or other public or private institutions or
organizations, but only if each such institution of higher education
meets the reporting requirements of section 207 of the Higher Education
Act of 1965 (20 U.S.C. 1027) and its teacher preparation program has
not been identified by its State as low-performing under such Act.
``(f) Consolidation of Funds.--Funds provided under this part that
are used for professional development purposes may be consolidated with
funds provided under title II of this Act and other sources.
``(g) Special Rule.--No State educational agency shall require a
school or a local educational agency to expend a specific amount of
funds for professional development activities under this part, except
that this paragraph shall not apply with respect to requirements under
section 1116(c)(9).''.
SEC. 3444. REQUIREMENTS; RECORDS.
(a) Requirements.--Section 1120A(c)(2) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6322(c)(2)) is amended to
read as follows:
``(2) Criteria for meeting comparability requirement.--
``(A) Approval.--To meet the requirement of
paragraph (1), a local educational agency shall obtain
the State educational agency's approval of a
comprehensive, 3-year plan to ensure comparability in
the use of State and local funds and educational
services among its schools receiving funds under this
part and its other schools with respect to:
``(i) the rates at which class sections are
taught by experienced and fully qualified
teachers, including such rates for low-income
and minority students;
``(ii) curriculum, in terms of both the
range of courses offered, and the opportunity
to participate in rigorous courses including
advanced placement (AP) courses, including such
rates for low-income and minority students; and
``(iii) the quality and availability of
instructional materials and instructional
resources including technology.''
``(B) Exclusion.--A local educational agency need
not include unpredictable changes in student enrollment
or personnel assignments that occur after the beginning
of a school year in determining comparability of
services under this subsection.
``(C) Requirements.--Notwithstanding subparagraph
(A), a local educational agency may continue to meet
the requirement of paragraph (1) by complying with
subparagraph (A) as such subparagraph was in effect on
the day preceding the date of enactment of the Leave No
Child Behind Act of 2001, except that each local
educational agency shall be required to comply with
subparagraph (A), as amended by such Act not later than
July 1, 2004.''.
(b) Records.--Section 1120A(c)(3)(B) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6322(c)(3)(B)) is amended by
striking ``biennially'' and inserting ``annually''.
SEC. 3445. COORDINATION REQUIREMENTS.
Section 1120B of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6323 et seq.) is amended--
(1) in subsection (a), by striking ``to the extent
feasible'' and all that follows through the period and
inserting ``with local Head Start agencies, and if feasible,
other early childhood development programs.'';
(2) in subsection (b)--
(A) in paragraph (3) by striking ``and'' after the
semicolon;
(B) in paragraph (4) by striking the period and
inserting ``; and''; and
(C) by adding at the end, the following:
``(5) linking the educational services provided in such
local educational agency with the services provided in local
Head Start agencies.''.
Chapter 5--Quality Teaching and Leadership
Subchapter A--Amendments to Title II of the Elementary and Secondary
Education Act of 1965
SEC. 3461. AMENDMENTS TO TITLE II.
Title II of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6601 et seq.) is amended--
(1) by redesignating part E as part J;
(2) by redesignating sections 2401 and 2402 as sections
2901 and 2902 respectively; and
(3) by inserting after part D the following:
``PART E--CLASS SIZE REDUCTION
``SEC. 2401. GRANT PROGRAM.
``(a) Purposes.--The purposes of this section are--
``(1) to reduce class size through the use of fully
qualified teachers;
``(2) to assist States and local educational agencies in
recruiting, hiring, and training 100,000 teachers in order to
reduce class sizes nationally, in kindergarten through grade 3,
to an average of 18 students per regular classroom; and
``(3) to improve teaching in those grades so that all
students can learn to read independently and well by the end of
the 3d grade.
``(b) Allotment to States.--
``(1) Reservation.--From the amount made available to carry
out this part for a fiscal year, the Secretary shall reserve
not more than 1 percent for the Secretary of the Interior (on
behalf of the Bureau of Indian Affairs) and the outlying areas
for activities carried out in accordance with this section.
``(2) State allotments.--
``(A) Hold harmless.--
``(i) In general.--Subject to subparagraph
(B) and clause (ii), from the amount made
available to carry out this part for a fiscal
year and not reserved under paragraph (1), the
Secretary shall allot to each State an amount
equal to the amount that such State received
for the preceding fiscal year under this
section or section 306 of the Department of
Education Appropriations Act, 2001, as the case
may be.
``(ii) Ratable reduction.--If the amount
made available to carry out this part for a
fiscal year and not reserved under paragraph
(1) is insufficient to pay the full amounts
that all States are eligible to receive under
clause (i) for such fiscal year, the Secretary
shall ratably reduce such amounts for such
fiscal year.
``(B) Allotment of additional funds.--
``(i) In general.--Subject to clause (ii),
for any fiscal year for which the amount made
available to carry out this part and not
reserved under paragraph (1) exceeds the amount
made available to the States for the preceding
year under the authorities described in
subparagraph (A)(i), the Secretary shall allot
to each of those States the percentage of the
excess amount that is the greater of--
``(I) the percentage the State
received for the preceding fiscal year
of the total amount made available to
the States under section 1122; or
``(II) the percentage so received
of the total amount made available to
the States under section 6101(b), as in
effect on the day before the date of
enactment of the Leave No Child Behind
Act of 2001, or the corresponding
provision of this title, as the case
may be.
``(ii) Ratable reductions.--If the excess
amount for a fiscal year is insufficient to pay
the full amounts that all States are eligible
to receive under clause (i) for such fiscal
year, the Secretary shall ratably reduce such
amounts for such fiscal year.
``(c) Allocation to Local Educational Agencies.--
``(1) Allocation.--Each State that receives funds under
this section shall allocate 100 percent of those funds to local
educational agencies, of which--
``(A) 80 percent shall be allocated to those local
educational agencies in proportion to the number of
children, age 5 through 17, from families with incomes
below the poverty line (as defined by the Office of
Management and Budget and revised annually in
accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved, who reside
in the school district served by that local educational
agency for the most recent fiscal year for which
satisfactory data are available, compared to the number
of those children who reside in the school districts
served by all the local educational agencies in the
State for that fiscal year; and
``(B) 20 percent shall be allocated to those local
educational agencies in accordance with the relative
enrollments of children, age 5 through 17, in public
and private nonprofit elementary schools and secondary
schools within the areas served by those agencies.
``(2) Exception.--Notwithstanding paragraph (1) and
subsection (d)(2)(B), if the award to a local educational
agency under this section is less than the starting salary for
a new fully qualified teacher for a school served by that
agency, that agency may use funds made available under this
section to--
``(A) help pay the salary of a full- or part-time
fully qualified teacher hired to reduce class size,
which may be done in combination with the expenditure
of other Federal, State, or local funds; or
``(B) pay for activities described in subsection
(d)(2)(A)(iii) that may be related to teaching in
smaller classes.
``(d) Use of Funds.--
``(1) Mandatory uses.--Each local educational agency that
receives funds under this section shall use those funds to
carry out effective approaches to reducing class size through
use of fully qualified teachers to improve educational
achievement for both regular and special needs children, with
particular consideration given to reducing class size in the
early elementary grades for which some research has shown class
size reduction is most effective.
``(2) Permissible uses.--
``(A) In general.--Each such local educational
agency may use funds made available under this section
for--
``(i) recruiting (including through the use
of signing bonuses and other financial
incentives), hiring, and training fully
qualified regular and special education
teachers (which may include hiring special
education teachers to team-teach with regular
teachers in classrooms that contain both
children with disabilities and non-disabled
children) and teachers of special needs
children;
``(ii) testing new teachers for academic
content knowledge, and to meet State
certification or licensing requirements that
are consistent with title II of the Higher
Education Act of 1965; and
``(iii) providing professional development
(which may include such activities as promoting
retention and mentoring) for teachers,
including special education teachers and
teachers of special needs children, in order to
meet the goal of ensuring that all teachers
have the general knowledge, teaching skills,
and subject matter knowledge necessary to teach
effectively in the content areas in which the
teachers teach, consistent with title II of the
Higher Education Act of 1965.
``(B) Limitation on testing and professional
development.--
``(i) In general.--Except as provided in
clause (ii), a local educational agency may use
not more than a total of 25 percent of the
funds received by the agency under this section
for activities described in clauses (ii) and
(iii) of subparagraph (A).
``(ii) Special rule.--A local educational
agency may use more than 25 percent of the
funds the agency receives under this section
for activities described in subparagraph
(A)(iii) for the purpose of helping teachers
who are not yet fully qualified in attaining
full qualification if 10 percent or more of the
elementary school classes in a school are
taught by individuals who are not fully
qualified teachers or the State educational
agency has waived State certification or
licensing requirements for 10 percent or more
of such teachers.
``(C) Use of funds by agencies that have reduced
class size.--Notwithstanding subparagraph (B), a local
educational agency that has already reduced class size
in the early elementary grades to 18 or fewer children
(or has already reduced class size to a State or local
class size reduction goal that was in effect on
November 28, 1999 if that goal is 20 or fewer children)
may use funds received under this section--
``(i) to make further class size reductions
in kindergarten through third grade;
``(ii) to reduce class size in other
grades; or
``(iii) to carry out activities to improve
teacher quality, including professional
development.
``(3) Supplement, not supplant.--Each such agency shall use
funds made available under this section only to supplement, and
not to supplant, State and local funds that, in the absence of
funds made available under this section, would otherwise be
expended for activities described in this section.
``(4) Limitation on use for salaries and benefits.--
``(A) In general.--Except as provided in
subparagraph (B), no funds made available under this
section may be used to increase the salaries of, or
provide benefits (other than participation in
professional development and enrichment programs) to,
teachers who are not hired under this section.
``(B) Exception.--Funds made available under this
section may be used to pay the salaries of teachers
hired under section 306 of the Department of Education
Appropriations Act, 2001.
``(e) Reports.--
``(1) State activities.--Each State receiving funds under
this section shall prepare and submit to the Secretary a
biennial report on activities carried out in the State under
this section that provides the information described in section
6202(a)(2) with respect to the activities.
``(2) Progress concerning class size and qualified
teachers.--Each State and local educational agency receiving
funds under this section shall annually report to parents and
the public, in numeric form as compared to the previous year,
on--
``(A) the agency's progress in reducing class size,
and increasing the percentage of classes in core
academic areas taught by fully qualified teachers; and
``(B) the impact that hiring additional fully
qualified teachers and reducing class size, has had, if
any, on increasing student academic achievement.
``(3) Notice.--Each local educational agency that receives
funds under this section shall provide, to each individual
parent of a child who attends a school served by such local
educational agency, timely, written notice if the child has
been assigned or has been taught for 2 or more consecutive
weeks by a substitute teacher, as defined by such local
educational agency, or a teacher who is not fully qualified.
``(f) Private Schools.--If a local educational agency uses funds
made available under this section for professional development
activities, the agency shall ensure the equitable participation of
private nonprofit elementary schools and secondary schools in such
activities in accordance with section 6402. Section 6402 shall not
apply to other activities carried out under this section.
``(g) Administrative Expenses.--A local educational agency that
receives funds under this section may use not more than 3 percent of
such funds for local administrative costs.
``(h) Application.--Each local educational agency that desires to
receive funds under this section shall submit an application to the
State educational agency at such time, in such manner, and containing
such information as the State educational agency may require. Each such
application shall include a description of the agency's program to
reduce class size by hiring additional fully qualified teachers.
``(i) Certification, Licensing, and Competency.--No funds made
available under this section may be used to pay the salary of any
teacher unless such teacher is fully qualified.
``(j) Definition.--As used in this section, the term `certified'
includes certification through State or local alternative routes.
``SEC. 2402. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$2,537,000,000 for fiscal year 2002, $3,452,000,000 for fiscal year
2003, $4,336,000,000 for fiscal year 2004, and $5,281,000,000 for each
of fiscal years 2005 and 2006.
``PART F--TROOPS TO TEACHERS
``SEC. 2501. FINDINGS.
``Congress finds the following:
``(1) School districts will need to hire more than
2,000,000 teachers during the first decade of the 21st century.
``(2) The need for teachers in the areas of mathematics,
science, foreign languages, special education, and bilingual
education, and for teachers able to teach in high-poverty
school districts, will be particularly high. To meet this need,
talented Americans of all ages should be recruited to become
successful, qualified teachers.
``(3) Nearly 13 percent of teachers of academic subjects
have neither an undergraduate major nor minor in their main
assignment fields. This problem is most acute in high-poverty
local educational agencies, where the out-of-field teaching
percentage is 22 percent.
``(4) The Third International Math and Science Study
(TIMSS) ranked United States high school seniors last among 16
countries in physics and next to last in mathematics. It is
also evident, mainly from the TIMSS data, that based on
academic scores, a stronger emphasis needs to be placed on the
academic preparation of our children in mathematics and
science.
``(5) One-fourth of high-poverty local educational agencies
find it very difficult to fill bilingual teaching positions,
and nearly half of public school teachers have students in
their classrooms for whom English is a second language.
``(6) Many career-changing professionals with strong
content-area skills are interested in a teaching career, but
they need assistance in getting the appropriate pedagogical
training and classroom experience.
``(7) The teacher placement program known as the `troops-
to-teachers program', which was established by the Secretary of
Defense and the Secretary of Transportation under section 1151
of title 10, United States Code, has been highly successful in
securing high-quality teachers for teaching positions in high-
poverty local educational agencies.
``SEC. 2502. PURPOSE.
``The purpose of this part is to address the need of local
educational agencies that are high-poverty local educational agencies
or low-performing local educational agencies for fully qualified
teachers in particular subject areas, such as mathematics, science,
foreign languages, bilingual education, and special education, by--
``(1) continuing and enhancing the troops-to-teachers
program for recruiting and supporting the placement of former
members of the Armed Forces as teachers in such local
educational agencies; and
``(2) recruiting, preparing, placing, and supporting
career-changing professionals who have knowledge and experience
that will help them become such teachers.
``SEC. 2503. CONTINUATION AND SUPPORT FOR TROOPS-TO-TEACHERS PROGRAM.
``(a) Continuation.--The Secretary may enter into a written
agreement with the Secretary of Defense and the Secretary of
Transportation, or take such other steps as the Secretary determines
are appropriate, to ensure effective continuation of the troops-to-
teachers program, notwithstanding the duration of the program specified
in section 1151(c)(1)(A) of title 10, United States Code.
``(b) Support.--Before providing any assistance under section 2504
for a fiscal year, the Secretary shall first--
``(1) consult with the Secretary of Defense and the
Secretary of Transportation regarding the appropriate amount of
funding needed to continue and enhance the troops-to-teachers
program; and
``(2) upon agreement, transfer that amount to the Secretary
of Defense to carry out the troops-to-teachers program.
``SEC. 2504. TRANSITION OF CAREER-CHANGING PROFESSIONALS TO TEACHING.
``(a) Authority To Support Transition Programs.--The Secretary may
use funds appropriated pursuant to the authorization of appropriations
in section 2507 to award grants to, and enter into contracts or
cooperative agreements with, institutions of higher education,
including historically Black colleges and universities and Hispanic-
serving institutions, and public and private nonprofit agencies or
organizations to recruit, prepare, place, and support career-changing
professionals as teachers in local educational agencies that are high-
poverty local educational agencies or low-performing local educational
agencies.
``(b) Application.--Each entity described in subsection (a) that
desires assistance under subsection (a) shall submit an application to
the Secretary containing such information as the Secretary may require,
including--
``(1) a description of the target group of career-changing
professionals upon which the applicant will focus in carrying
out its program under this part, including a description of the
characteristics of that target group that shows how the
knowledge and experience of its members are relevant to meeting
the purpose of this part;
``(2) a description of how the applicant will identify and
recruit career-changing professionals for its program under
this part;
``(3) a description of the training that career-changing
professionals will receive in the program and how that training
will relate to their certification as teachers;
``(4) a description of how the applicant will ensure that
career-changing professionals are placed and teach in high-
poverty local educational agencies or low-performing local
educational agencies;
``(5) a description of the teacher induction services
(which may be provided through existing induction programs)
that the career-changing professionals in the program will
receive throughout at least their first year of teaching;
``(6) a description of how the applicant will collaborate,
as needed, with other institutions, agencies, or organizations
to recruit, train, place, and support career-changing professionals
under this part, including evidence of the commitment of those
institutions, agencies, or organizations to the applicant's program;
``(7) a description of how the applicant will evaluate the
progress and effectiveness of its program, including--
``(A) the program's goals and objectives;
``(B) the performance indicators the applicant will
use to measure the program's progress; and
``(C) the outcome measures that will be used to
determine the program's effectiveness; and
``(8) an assurance that the applicant will provide to the
Secretary such information as the Secretary determines
necessary to evaluate the overall effectiveness of programs
under this part.
``SEC. 2505. USES OF FUNDS AND PERIOD OF SERVICE.
``(a) Authorized Activities.--Funds provided under section 2504 may
be used for--
``(1) recruiting career-changing professionals, including
informing them of opportunities under the program and putting
them in contact with other institutions, agencies, or
organizations that will train, place, and support them;
``(2) training stipends and other financial incentives for
career-changing professionals in the program, such as moving
expenses, not to exceed $5,000, in the aggregate, per
participant;
``(3) assisting institutions of higher education or other
providers of teacher training to tailor their training to meet
the particular needs of career-changing professionals;
``(4) placement activities, including identifying high-
poverty, low-performing local educational agencies with needs
for the particular skills and characteristics of the newly
trained career-changing professionals and assisting those
persons to obtain employment in those local educational
agencies; and
``(5) post-placement induction or support activities.
``(b) Period of Service.--A career-changing professional selected
to participate in a program under this part who completes his or her
training shall serve in a high-poverty local educational agency or a
low-performing local educational agency for at least 3 years.
``(c) Repayment.--The Secretary shall establish such requirements
as the Secretary determines appropriate to ensure that career-changing
professionals who receive a training stipend or other financial
incentive under subsection (a)(2), but who fail to complete their
service obligation under subsection (b), repay all or a portion of such
stipend or other incentive.
``SEC. 2506. EQUITABLE DISTRIBUTION.
``To the extent practicable, the Secretary shall make awards and
enter into contracts and cooperative agreements under section 2504 to
support teacher placement programs for career-changing professionals in
different geographic regions of the United States.
``SEC. 2507. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to the Secretary to carry
out this part, $40,000,000 for fiscal year 2002 and such sums as may be
necessary for the next 4 succeeding fiscal years.
``PART G--EARLY CHILDHOOD EDUCATOR PROFESSIONAL DEVELOPMENT
``SEC. 2601. PURPOSE.
``In support of the national effort to attain the first of
America's Education Goals, the purpose of this part is to enhance the
school readiness of young children, particularly disadvantaged young
children, and to prevent them from encountering difficulties once they
enter school, by improving the knowledge and skills of early childhood
educators who work in communities that have high concentrations of
children living in poverty.
``SEC. 2602. PROGRAM AUTHORIZED.
``(a) Grants to Partnerships.--The Secretary shall carry out the
purpose of this part by awarding grants, on a competitive basis, to
partnerships consisting of--
``(1)(A) one or more institutions of higher education that
provide professional development for early childhood educators
who work with children from low-income families in high-need
communities; or
``(B) another public or private, nonprofit entity that
provides such professional development;
``(2) one or more public agencies (including local
educational agencies, State educational agencies, State human
services agencies, and State and local agencies administering
programs under the Child Care and Development Block Grant Act
of 1990), Head Start agencies, or private, nonprofit
organizations; and
``(3) to the extent feasible, an entity with demonstrated
experience in providing training to educators in early
childhood education programs in identifying and preventing
behavior problems or working with children identified or
suspected to be victims of abuse.
``(b) Duration and Number of Grants.--
``(1) Duration.--Each grant under this part shall be
awarded for not more than 4 years.
``(2) Number.--No partnership may receive more than 1 grant
under this part.
``SEC. 2603. APPLICATIONS.
``(a) Applications Required.--Any partnership that desires to
receive a grant under this part shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may require.
``(b) Contents.--Each such application shall include--
``(1) a description of the high-need community to be served
by the project, including such demographic and socioeconomic
information as the Secretary may request;
``(2) information on the quality of the early childhood
educator professional development program currently conducted
by the institution of higher education or other provider in the
partnership;
``(3) the results of the needs assessment that the entities
in the partnership have undertaken to determine the most
critical professional development needs of the early childhood
educators to be served by the partnership and in the broader community,
and a description of how the proposed project will address those needs;
``(4) a description of how the proposed project will be
carried out, including--
``(A) how individuals will be selected to
participate;
``(B) the types of research-based professional
development activities that will be carried out;
``(C) how research on effective professional
development and on adult learning will be used to
design and deliver project activities;
``(D) how the project will coordinate with and
build on, and will not supplant or duplicate, early
childhood education professional development activities
that exist in the community;
``(E) how the project will train early childhood
educators to provide services that are based on
developmentally appropriate practices and the best
available research on child social, emotional, physical
and cognitive development and on early childhood
pedagogy;
``(F) how the program will train early childhood
educators to meet the diverse educational needs of
children in the community, including children who have
limited English proficiency, disabilities, or other
special needs; and
``(G) how the project will train early childhood
educators in identifying and preventing behavioral
problems or working with children identified as or
suspected to be victims of abuse;
``(5) a description of--
``(A) the specific objectives that the partnership
will seek to attain through the project, and how the
partnership will measure progress toward attainment of
those objectives; and
``(B) how the objectives and the measurement
activities align with the performance indicators
established by the Secretary under section 2606(a);
``(6) a description of the partnership's plan for
institutionalizing the activities carried out under the
project, so that the activities continue once Federal funding
ceases;
``(7) an assurance that, where applicable, the project will
provide appropriate professional development to volunteers
working directly with young children, as well as to paid staff;
and
``(8) an assurance that, in developing its application and
in carrying out its project, the partnership has consulted
with, and will consult with, relevant agencies, early childhood
educator organizations, and early childhood providers that are
not members of the partnership.
``SEC. 2604. SELECTION OF GRANTEES.
``(a) Criteria.--The Secretary shall select partnerships to receive
funding on the basis of the community's need for assistance and the
quality of the applications.
``(b) Geographic Distribution.--In selecting partnerships, the
Secretary shall seek to ensure that communities in different regions of
the Nation, as well as both urban and rural communities, are served.
``SEC. 2605. USES OF FUNDS.
``(a) In General.--Each partnership receiving a grant under this
part shall use the grant funds to carry out activities that will
improve the knowledge and skills of early childhood educators who are
working in early childhood programs that are located in high-need
communities and serve concentrations of children from low-income
families.
``(b) Allowable Activities.--Such activities may include--
``(1) professional development for individuals working as
early childhood educators, particularly to familiarize those
individuals with the application of recent research on child,
language, and literacy development and on early childhood
pedagogy;
``(2) professional development for early childhood
educators in working with parents, based on the best current
research on child social, emotional, physical and cognitive
development and parent involvement, so that the educators can
prepare their children to succeed in school;
``(3) professional development for early childhood
educators to work with children who have limited English
proficiency, disabilities, and other special needs;
``(4) professional development to train early childhood
educators in identifying and preventing behavioral problems in
children or working with children identified or suspected to be
victims of abuse;
``(5) activities that assist and support early childhood
educators during their first three years in the field;
``(6) development and implementation of early childhood
educator professional development programs that make use of
distance learning and other technologies;
``(7) professional development activities related to the
selection and use of screening and diagnostic assessments to
improve teaching and learning; and
``(8) data collection, evaluation, and reporting needed to
meet the requirements of this part relating to accountability.
``SEC. 2606. ACCOUNTABILITY.
``(a) Performance Indicators.--Simultaneously with the publication
of any application notice for grants under this part, the Secretary
shall announce performance indicators for this part, which shall be
designed to measure--
``(1) the quality and accessibility of the professional
development provided;
``(2) the impact of that professional development on the
early childhood education provided by the individuals who are
trained; and
``(3) such other measures of program impact as the
Secretary determines appropriate.
``(b) Annual Reports; Termination.--
``(1) Annual reports.--Each partnership receiving a grant
under this part shall report annually to the Secretary on the
partnership's progress against the performance indicators.
``(2) Termination.--The Secretary may terminate a grant
under this part at any time if the Secretary determines that
the partnership is not making satisfactory progress against the
indicators.
``SEC. 2607. COST-SHARING.
``(a) In General.--Each partnership shall provide, from other
sources, which may include other Federal sources--
``(1) at least 50 percent of the total cost of its project
for the grant period; and
``(2) at least 20 percent of the project cost in each year.
``(b) Acceptable Contributions.--A partnership may meet the
requirement of subsection (a) through cash or in-kind contributions,
fairly valued.
``(c) Waivers.--The Secretary may waive or modify the requirements
of subsection (a) in cases of demonstrated financial hardship.
``SEC. 2608. DEFINITIONS.
``In this part:
``(1) High-need community.--
``(A) In general.--The term `high-need community'
means--
``(i) a municipality, or a portion of a
municipality, in which at least 50 percent of
the children are from low-income families; or
``(ii) a municipality that is one of the 10
percent of municipalities within the State
having the greatest numbers of such children.
``(B) Determination.--In determining which
communities are described in subparagraph (A), the
Secretary shall use such data as the Secretary
determines are most accurate and appropriate.
``(2) Low-income family.--The term `low-income family'
means a family with an income below the poverty line (as
defined by the Office of Management and Budget and revised
annually in accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a
family of the size involved for the most recent fiscal year for
which satisfactory data are available.
``(3) Early childhood educator.--The term `early childhood
educator' means a person providing or employed by a provider of
non-residential child care services (including center-based,
family-based, and in-home child care services) for compensation
that is legally operating under State law, and that complies
with applicable State and local requirements for the provision
of child care services to children at any age from birth
through kindergarten.
``SEC. 2609. FEDERAL COORDINATION.
``The Secretary and the Secretary of Health and Human Services
shall coordinate activities under this part and other early childhood
programs administered by the two Secretaries.
``SEC. 2610. AUTHORIZATION OF APPROPRIATIONS.
``For the purpose of carrying out this part, there are authorized
to be appropriated $100,000,000 for fiscal year 2002 and such sums as
may be necessary for each of the 6 succeeding fiscal years.
``PART H--PRINCIPAL LEADERSHIP DEVELOPMENT
``SEC. 2701. PROFESSIONAL DEVELOPMENT FOR PRINCIPALS AS LEADERS OF
SCHOOL REFORM.
``(a) Competitive Grants.--The Secretary is authorized to award, on
a competitive basis, grants to eligible partnerships--
``(1) consisting of--
``(A) one or more institutions of higher education
that provide professional development for principals
and other school administrators; and
``(B) one or more local educational agencies; and
``(2) that may include other entities, agencies, and
organizations, such as a State educational agency, a State
agency for higher education, and professional organizations for
principals, administrators, teachers, and parents.
``(b) Application.--An eligible partnership that desires to receive
a grant under this section shall submit an application to the Secretary
at such time, in such form, and containing such information as the
Secretary may require. Each such application shall include--
``(1) a description of the activities the partnership will
carry out to meet the purpose of this part;
``(2) a description of how those activities will build on
and be coordinated with other professional development
activities, including activities under this title and title II
of the Higher Education Act of 1965;
``(3) a description of how principals, teachers, and other
interested parties were involved in developing the application
and will be involved in planning and carrying out the
activities under this section; and
``(4) a description of how the professional development
will result in the acquisition of a license, degree, or
continuing education unit.
``(c) Use of Funds.--An eligible partnership that receives a grant
under this section shall use the grant funds to provide professional
development to principals and other school administrators to enable
them to be effective school leaders and prepare all students to achieve
to challenging State content and student performance standards,
including professional development on--
``(1) comprehensive school reform;
``(2) leadership skills;
``(3) recruitment, assignment, retention, and evaluation of
teacher and other instructional staff;
``(4) State content standards;
``(5) effective instructional practice;
``(6) using smaller classes effectively; and
``(7) parental and community involvement.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this part, $100,000,000 for fiscal year 2002,
and such sums as may be necessary for each of the 4 succeeding fiscal
years.
``PART I--COMPETITIVE GRANTS TO ESTABLISH PROGRAMS FOR TEACHER QUALITY
IMPROVEMENT
``SEC. 2801. ALLOTMENTS TO STATES.
``(a) In General.--The Secretary is authorized to make grants to
eligible State educational agencies for the improvement of teaching and
learning through sustained and intensive high-quality professional
development, mentoring, and recruitment activities (and covered
recruitment, at the election of a local educational agency) at the
State and local levels. Each grant shall consist of the allotment
determined for the State under subsection (b).
``(b) Determination of Amount of Allotment.--
``(1) Reservation of funds.--
``(A) In general.--From the total amount made
available to carry out this part for any fiscal year,
the Secretary shall reserve--
``(i) \1/2\ of 1 percent for allotments for
the outlying areas to be distributed among
those outlying areas on the basis of their
relative need, as determined by the Secretary,
for professional development, mentoring, and
recruitment activities carried out in
accordance with the purposes of this part; and
``(ii) \1/2\ of 1 percent for the Secretary
of the Interior for programs carried out in
accordance with the purposes of this part to
provide professional development, mentoring,
and recruitment activities for teachers and
other staff in schools operated or funded by
the Bureau of Indian Affairs.
``(B) Limitation.--Notwithstanding subparagraph
(A), the Secretary shall not reserve, for either the
outlying areas under subparagraph (A)(i) or the schools
operated or funded by the Bureau of Indian Affairs
under subparagraph (A)(ii), more than the amount
reserved for those areas or schools for fiscal year
2000 under the authority described in paragraph
(2)(A)(i).
``(2) State allotments.--
``(A) Hold harmless.--
``(i) In general.--Subject to subparagraph
(B), from the total amount made available to
carry out this part for any fiscal year and not
reserved under paragraph (1), the Secretary
shall allot to each of the 50 States, the
District of Columbia, and the Commonwealth of
Puerto Rico an amount equal to the amount that
the State received for fiscal year 2000 under
section 2202(b) of this Act (as in effect on
the day before the date of enactment of the
Leave No Child Behind Act of 2001).
``(ii) Ratable reduction.--If the total
amount made available to carry out this part
for any fiscal year and not reserved under
paragraph (1) is insufficient to pay the full
amounts that all States are eligible to receive
under clause (i) for any fiscal year, the
Secretary shall ratably reduce such amounts for
such fiscal year.
``(B) Allotment of additional funds.--
``(i) In general.--Subject to clause (ii),
for any fiscal year for which the total amount
made available to carry out this part and not
reserved under paragraph (1) exceeds the total
amount made available to the 50 States, the
District of Columbia, and the Commonwealth of
Puerto Rico for fiscal year 2000 under the
authority described in subparagraph (A)(i), the
Secretary shall allot to each of those States
the sum of--
``(I) an amount that bears the same
relationship to 40 percent of the
excess amount as the number of
individuals age 5 through 17 in the
State, as determined by the Secretary
on the basis of the most recent
satisfactory data, bears to the number
of those individuals in all such
States, as so determined; and
``(II) an amount that bears the
same relationship to 60 percent of the
excess amount as the number of
individuals age 5 through 17 from
families with incomes below the poverty
line in the State, as determined by the
Secretary on the basis of the most
recent satisfactory data, bears to the
number of those individuals in all such
States, as so determined.
``(ii) Exception.--No State receiving an
allotment under clause (i) may receive less
than \1/2\ of 1 percent of the total excess
amount allotted under clause (i) for a fiscal
year.
``(3) Reallotment.--If any State described in paragraph (2)
does not apply for an allotment under paragraph (2) for any
fiscal year, the Secretary shall reallot such amount to the
remaining such States in accordance with paragraph (2).
``SEC. 2802. STATE APPLICATIONS.
``(a) Applications Required.--
``(1) In general.--Each State desiring to receive a grant
under this part shall submit an application to the Secretary at
such time, in such manner, and containing such information as
the Secretary may reasonably require.
``(2) Development.--The State educational agency shall
develop the State application--
``(A) in consultation with the State agency for
higher education, community-based and other nonprofit
organizations, and institutions of higher education;
and
``(B) with the extensive participation of teachers,
teacher educators, school administrators, and content
specialists.
``(b) Contents.--Each such application shall include--
``(1) a description of the State's shortages of fully
qualified teachers relating to high-poverty school districts
and high-need academic subjects (as such districts or subjects
are determined by the State);
``(2) an assessment of the need for professional
development for veteran teachers in the State and the need for
strong mentoring programs for beginning teachers that are--
``(A) developed with the involvement of teachers;
and
``(B) based on student achievement data in the core
academic subjects and other indicators of the need for
professional development and mentoring programs;
``(3) a description of how the State educational agency
will use funds made available under this part to improve the
quality of the State's teaching force, eliminate the use of
out-of-field placement of teachers, and eliminate the use of
teachers hired with emergency or other provisional credentials
by setting numerical, annual improvement goals, and meet the
requirements of this section;
``(4) a description of how the State educational agency
will align activities assisted under this part with State
content and student performance standards, and State
assessments, by setting numerical, annual improvement goals;
``(5) a description of how the State educational agency
will coordinate activities funded under this part with
professional development, mentoring, and recruitment activities
that are supported with funds from other relevant Federal and
non-Federal programs;
``(6) a plan, developed with the extensive participation of
teachers, for addressing long-term teacher recruitment,
retention, professional development, and mentoring needs, which
may include--
``(A) providing technical assistance to help school
districts reform hiring and employment practices to
improve the recruitment and retention of fully
qualified teachers, especially with respect to high-
poverty schools; and
``(B) establishing State or regional partnerships
to address teacher shortages;
``(7) a description of how the State educational agency
will assist local educational agencies in implementing
effective and sustained professional development and mentoring
activities and high-quality recruitment activities under this
part;
``(8) an assurance that the State will consistently monitor
the progress of each local educational agency and school in the
State in achieving the goals specified in the information
submitted under paragraphs (1) through (7);
``(9) a description of how the State educational agency
will work with recipients of grants awarded for recruitment
activities under section 2805(b) to ensure that recruits who
successfully complete a teacher corps program will be certified
or licensed; and
``(10) the assurances and description referred to in
section 2810.
``(c) Approval.--The Secretary shall, using a peer-review process,
approve a State application if the application meets the requirements
of this section and holds reasonable promise of achieving the purposes
of this part.
``SEC. 2803. STATE USE OF FUNDS.
``(a) In General.--Of the funds allotted to a State under section
2801 for a fiscal year--
``(1) not more than 6 percent shall be used by the State
educational agency to carry out State activities described in
section 2804, or for the administration of this part (other
than the administration of section 2809) except that not more
than 3 percent shall be used for the administration of this
part;
``(2) 60 percent shall be used by the State educational
agency to provide grants to local educational agencies under
section 2805(a) for professional development and mentoring
(except as provided in section 2807(c));
``(3) 30 percent shall be used by the State educational
agency--
``(A) except as provided in subparagraph (B), to
provide grants to recruitment partnerships under
section 2805(b) for recruitment activities; or
``(B) if the State educational agency determines
that all elementary school and secondary school
teachers in the State that are teaching core academic
subjects are fully qualified, to provide the grants
described in paragraph (2); and
``(4) 4 percent (or 4 percent of the amount the State would
have been allotted if the appropriation for this part were
$1,730,000,000, whichever is greater) shall be used by the
State agency for higher education to provide grants to
partnerships under section 2809.
``(b) Priority for Professional Development and Mentoring in
Mathematics and Science.--
``(1) Priority.--
``(A) Appropriations of not more than
$300,000,000.--Except as provided in section 2807(c),
for any fiscal year for which the appropriation for
this part is $300,000,000 or less, each State
educational agency that receives funds under this part,
working jointly with the State agency for higher
education, shall ensure that all funds received under
this part are used for--
``(i) professional development and
mentoring in mathematics and science that are
aligned with State content and student
performance standards; and
``(ii) recruitment activities to attract
fully qualified math and science teachers to
high-poverty schools.
``(B) Appropriations of more than $300,000,000.--
Except as provided in section 2807(c), for any fiscal
year for which the appropriation for this part is
greater than $300,000,000, the State educational agency
and the State agency for higher education shall jointly
ensure that the total amount of funds that the agencies
receive under this part and that the agencies use for
activities described in subparagraph (A) is at least as
great as the allotment the State would have received if
that appropriation had been $300,000,000.
``(2) Interdisciplinary activities.--A State may use funds
received under this part for activities that focus on more than
1 core academic subject, and apply the funds toward meeting the
requirements of paragraph (1), if the activities include a
strong focus on improving instruction in mathematics or
science.
``(3) Additional funds.--Except as provided in section
2807(c), each State educational agency that receives funds
under this part and the State agency for higher education shall
jointly ensure that any portion of the funds that exceeds the
amount required by paragraph (1) to be spent on activities
described in paragraph (1)(A) is used to provide--
``(A) professional development and mentoring in 1
or more of the core academic subjects that are aligned
with State content and student performance standards;
and
``(B) recruitment activities involving teachers of
1 or more of the core academic subjects.
``SEC. 2804. STATE LEVEL ACTIVITIES.
``(a) Activities.--Each State educational agency that receives a
grant described in section 2801 shall use the funds made available
under section 2803(a)(1) to carry out statewide strategies and
activities to improve teacher quality, including--
``(1) establishing, expanding, or improving alternative
routes to State certification or licensing of teachers, for
highly qualified individuals with a baccalaureate degree, mid-
career professionals from other occupations, or
paraprofessionals, that are at least as rigorous as the State's
standards for initial certification or licensing of teachers;
``(2) developing or improving systems to evaluate the
effectiveness of professional development, mentoring, and
recruitment activities in improving teacher quality, skills,
and content knowledge, and the impact of the professional
development, mentoring, and recruitment activities on
increasing student academic achievement and student performance
with performance measures drawn from assessments that
objectively measure student achievement against State
performance standards;
``(3) funding projects to promote reciprocity of teacher
certification or licensure between or among States;
``(4) providing assistance to local educational agencies to
reduce out-of-field placements and the use of emergency
credentials;
``(5) supporting certification by the National Board for
Professional Teaching Standards of teachers who are teaching or
will teach in high-poverty schools;
``(6) providing assistance to local educational agencies in
implementing effective programs of recruitment activities, and
professional development and mentoring, including supporting
efforts to encourage and train teachers to become mentor
teachers;
``(7) increasing the rigor and quality of State
certification and licensure tests for individuals entering the
field of teaching, including subject matter tests for
elementary school, middle school, and secondary school
teachers; and
``(8) implementing teacher recognition programs.
``(b) Coordination.--A State that receives a grant to carry out
this part and a grant under section 202 of the Higher Education Act of
1965 shall coordinate the activities carried out under this section and
the activities carried out under that section 202.
``SEC. 2805. GRANTS TO LOCAL EDUCATIONAL AGENCIES.
``(a) Grants for Professional Development and Mentoring
Activities.--
``(1) In general.--A State educational agency that receives
a grant described in section 2801 shall use the funds made
available under section 2803(a)(2) (and any funds made
available under section 2803(a)(3)(B)) to make grants to
eligible local educational agencies, from allocations made
under paragraph (2), to carry out the activities described in
section 2807(a) (except as provided in section 2807(c)).
``(2) Allocations.--The State educational agency shall
allocate to each eligible local educational agency the sum of--
``(A) an amount that bears the same relationship to
20 percent of the funds described in paragraph (1) as
the number of individuals enrolled in public and
private nonprofit elementary schools and secondary
schools in the geographic area served by the agency
bears to the number of those individuals in the
geographic areas served by all the local educational
agencies in the State; and
``(B) an amount that bears the same relationship to
80 percent of the funds as the number of individuals
age 5 through 17 from families with incomes below the
poverty line, in the geographic area served by the
agency, as determined by the Secretary on the basis of
the most recent satisfactory data, bears to the number
of those individuals in the geographic areas served by
all the local educational agencies in the State, as so
determined.
``(3) Eligibility.--To be eligible to receive a grant from
a State educational agency under this subsection, a local
educational agency shall serve schools that include--
``(A) high-poverty schools;
``(B) schools that need support for improving
teacher quality based on low achievement of students
served;
``(C) schools that have low teacher retention
rates;
``(D) schools that need to improve or expand the
knowledge and skills of new and veteran teachers in
high-priority content areas;
``(E) schools that have high out-of-field placement
rates; or
``(F) high-poverty schools that have been
identified for improvement in accordance with section
1116.
``(4) Equitable geographic distribution.--A State
educational agency shall ensure an equitable distribution of
grants under this subsection among eligible local educational
agencies serving urban and rural areas.
``(b) Grants for Recruitment Activities.--
``(1) In general.--A State educational agency that receives
a grant under section 2801 shall use the funds made available
under section 2803(a)(3)(A) to make grants to eligible
recruitment partnerships, on a competitive basis, to carry out
the recruitment activities and meet requirements described in
section 2807(b).
``(2) Eligibility.--
``(A) In general.--To be eligible to receive a
grant from a State educational agency under this
subsection, a recruitment partnership--
``(i) shall include an eligible local
educational agency, or a consortium of eligible
local educational agencies;
``(ii) shall include an institution of
higher education, a tribal college, or a
community college; and
``(iii) may include other members, such as
a nonprofit organization or professional
education organization.
``(B) Eligible local educational agency.--In
subparagraph (A), the term `eligible local educational
agency' means a local educational agency that receives
assistance under part A of title I, and meets any
additional eligibility criteria that the appropriate
State educational agency may establish.
``(3) Equitable geographic distribution.--A State
educational agency shall ensure an equitable distribution of
grants under this subsection among eligible recruitment
partnerships serving urban and rural areas.
``SEC. 2806. LOCAL APPLICATIONS.
``(a) In General.--A local educational agency or a recruitment
partnership seeking to receive a grant from a State educational agency
under section 2805 to carry out activities described in section 2807
shall submit an application to the State educational agency at such
time, in such manner, and containing such information as the State
educational agency may reasonably require.
``(b) Contents Relating to Professional Development and Mentoring
Activities.--If the local educational agency seeks a grant under
section 2805(a) to carry out activities described in section 2807(a),
the local application described in subsection (a) shall include in the
application, at a minimum, the following:
``(1) A description of how the local educational agency
intends to use the funds provided through the grant to carry
out activities that meet requirements described in section
2807(a).
``(2) An assurance that the local educational agency will
target the funds to high-poverty, low-performing schools served
by the local educational agency that--
``(A) have the lowest proportions of qualified
teachers;
``(B) are identified for school improvement and
corrective action under section 1116; or
``(C) are identified for school improvement in
accordance with other measures of school quality as
determined and documented by the local educational
agency.
``(3) A description of how the local educational agency
will coordinate professional development and mentoring
activities described in section 2807(a) with professional
development and mentoring activities provided through other
Federal, State, and local programs, including programs
authorized under--
``(A) titles I, IV, and V, and part A of title VII;
and
``(B) where applicable, the Individuals with
Disabilities Education Act, the Carl D. Perkins
Vocational and Technical Education Act of 1998, and
title II of the Higher Education Act of 1965.
``(4) A description of how the local educational agency
will integrate funds received to carry out activities described
in section 2807(a) with funds received under title V that are
used for professional development and mentoring in order to
carry out professional development and mentoring activities
that--
``(A) train teachers, paraprofessionals,
counselors, pupil services personnel, administrators,
and other school staff, including school library media
specialists, in how to use technology to improve
learning and teaching; and
``(B) take into special consideration the different
learning needs for, and exposures to, technology for
all students, including females, students with
disabilities, students with limited English
proficiency, and students who have economic and
educational disadvantages.
``(5) A description of how the local application was
developed with extensive participation of teachers,
paraprofessionals, principals, and parents.
``(6) A description of how the professional development and
mentoring activities described in section 2807(a) will address
the ongoing professional development and mentoring of teachers,
paraprofessionals, counselors, pupil services personnel,
administrators, and other school staff, including school
library media specialists.
``(7) A description of how the professional development and
mentoring activities described in section 2807(a) will have a
substantial, measurable, and positive impact on student
achievement and how the activities will be used as part of a
broader strategy to eliminate the achievement gap that
separates low-income and minority students from other students.
``(8) A description of how the local educational agency
will address the needs of teachers of students with
disabilities, students with limited English proficiency, and
other students with special needs.
``(9) A description of how the local educational agency
will provide training to teachers to enable the teachers to
work with parents, involve parents in their child's education,
and encourage parents to become collaborators with schools in
promoting their child's education.
``(10) The assurances and description referred to in
section 2811, with respect to professional development and
mentoring activities.
``(c) Development and Contents Relating to Recruitment
Activities.--If an eligible local educational agency (as defined in
section 2805(b)) seeks a grant under section 2805(b) to carry out
activities described in section 2807(b)--
``(1) the eligible local educational agency shall enter
into a recruitment partnership, which shall jointly prepare and
submit the local application described in subsection (a); and
``(2) at a minimum, the application shall include--
``(A) a description of how the recruitment
partnership will meet the teacher corps program
requirements described in section 2808;
``(B) a description of the individual and
collective responsibilities of members of the
recruitment partnership in meeting the requirements and
goals of a teacher corps program described in section
2808;
``(C) information demonstrating that the State
agency responsible for teacher licensure or
certification in the State in which a recruitment
partnership is established will--
``(i) ensure that a corps member who
successfully completes a teacher corps program
will have the academic requirements necessary
for initial certification or licensure as a
teacher in the State; and
``(ii) work with the recruitment
partnership to ensure the partnership uses
high-quality methods and establishes high-
quality requirements concerning alternative
routes to certification or licensing, in order
to meet State requirements for certification or
licensure; and
``(D) the assurances and description referred to in
section 2811, with respect to recruitment activities.
``(d) Contents Relating to Covered Recruitment.--If the local
educational agency seeks a grant under section 2805(a) to carry out
activities described in section 2807(c), the local application
described in subsection (a) shall include, at a minimum, a description
of the activities and the manner in which the activities will
contribute to accomplishing the objectives of section 2811, and how the
activities are in compliance with the requirements of title I.
``(e) Approval.--A State educational agency shall approve a local
educational agency's or recruitment partnership's application under
this section only if the State educational agency determines that the
application is of high quality and holds reasonable promise of
achieving the purposes of this part.
``SEC. 2807. LOCAL ACTIVITIES.
``(a) Professional Development and Mentoring Activities.--Except as
provided in subsection (c), each local educational agency receiving a
grant under section 2805(a) shall use the funds made available through
the grant to carry out activities that--
``(1) are professional development activities (as defined
in section 2812(12)(A)) that--
``(A) improve teacher knowledge of--
``(i) 1 or more of the core academic
subjects;
``(ii) effective instructional strategies,
methods, and skills for improving student
achievement in core academic subjects,
including strategies for identifying and
eliminating gender and racial bias;
``(iii) the use of data and assessments to
inform teachers about and thereby help teachers
improve classroom practice; and
``(iv) innovative instructional
methodologies designed to meet the
diverse learning needs of individual students, including methodologies
that integrate academic and technical skills and applied learning (such
as service learning), methodologies for interactive and
interdisciplinary team teaching, and other alternative teaching
strategies, such as strategies for experiential learning, career-
related education, and environmental education, that integrate real
world applications into the core academic subjects;
``(B) provide teachers and paraprofessionals (and
other staff as appropriate) with information on recent
research findings on how children learn to read and
with staff development on research-based instructional
strategies for the teaching of reading;
``(C) replicate effective instructional practices
that involve collaborative groups of teachers and
administrators from the same school or district, using
strategies such as--
``(i) provision of dedicated time for
collaborative lesson planning and curriculum
development meetings;
``(ii) provision of collaborative
professional development experiences for
veteran teachers based on the standards in the
core academic subjects of the National Board
for Professional Teaching Standards;
``(iii) consultation with exemplary
teachers;
``(iv) provision of short-term and long-
term visits to classrooms and schools;
``(v) participation of teams of teachers in
summer institutes and summer immersion
activities that are focused on preparing
teachers to enable all students to meet high
standards in 1 or more of the core academic
subjects; and
``(vi) establishment and maintenance of
local professional networks that provide a
forum for interaction among teachers and
administrators and that allow for the exchange
of information on advances in content knowledge and teaching skills;
``(D) provide for the participation of
paraprofessionals, pupil services personnel, and other
school staff;
``(E) include strategies for fostering meaningful
parental involvement and relations with parents to
encourage parents to become collaborators in their
children's education, for improving classroom
management and discipline, and for integrating
technology into a curriculum;
``(F) as a whole, are regularly evaluated for their
impact on increased teacher effectiveness and improved
student achievement, with the findings of the
evaluations used to improve the quality of activities
described in this paragraph;
``(G) include, to the extent practicable, the
establishment of a partnership with an institution of
higher education, another local educational agency, a
teacher organization, or another organization, for the
purpose of carrying out activities described in this
paragraph; and
``(H) include ongoing and school-based support for
activities described in this paragraph, such as support
for peer review, coaching, or study groups, and the
provision of release time as needed for the activities;
and
``(2) are mentoring activities.
``(b) Recruitment Activities.--Each recruitment partnership
receiving a grant under section 2805(b) shall use the funds made
available through the grant to carry out recruitment activities
described in section 2808.
``(c) Covered Recruitment.--A local educational agency receiving a
grant under section 2805(a) for a fiscal year may elect to use a
portion of the funds made available through the grant, but not more
than the agency's share of 10 percent of the funds allotted to the
State involved under section 2801 for the fiscal year, to carry out
recruitment (including recruitment through the use of signing bonuses
and other financial incentives) and hiring of fully qualified teachers.
``SEC. 2808. RECRUITMENT ACTIVITIES THROUGH A TEACHER CORPS PROGRAM.
``(a) Teacher Corps Program Requirements.--
``(1) Recruitment.--A recruitment partnership that receives
a grant under section 2805(b) shall broadly recruit and screen
for a teacher corps a highly qualified pool of candidates who
demonstrate the potential to become effective teachers. Each
candidate shall meet--
``(A) standards to ensure that--
``(i) each corps member possesses
appropriate, high-level credentials and
presents the likelihood of becoming an
effective teacher; and
``(ii) each group of corps members includes
people who have expertise in academic subjects
and otherwise meet the specific needs of the
district to be served; and
``(B) any additional standard that the recruitment
partnership establishes to enhance the quality and
diversity of candidates and to meet the academic and
grade level needs of the partnership.
``(2) Required curriculum and placement.--Members of the
recruitment partnership shall work together to plan and develop
a program that includes--
``(A) a rigorous curriculum that includes a
preservice training program (incorporating innovative
approaches to preservice training, such as distance
learning), for a period not to exceed 1 year, that
provides corps members with the skills and knowledge
necessary to become effective teachers, by--
``(i) requiring completed course work in
basic areas of teaching, such as principles of
learning and child development, effective
teaching strategies, assessments, and classroom
management, and in the pedagogy related to the
academic subjects in which a corps member
intends to teach;
``(ii) providing extensive preparation in
the pedagogy of reading to corps members,
including preparation components that focus
on--
``(I) understanding the psychology
of reading, and human growth and
development;
``(II) understanding the structure
of the English language; and
``(III) learning and applying the
best teaching methods to all aspects of
reading instruction;
``(iii) providing training in the use of
technology as a tool to enhance a corps
member's effectiveness as a teacher and improve
the achievement of the corps member's students;
and
``(iv) focusing on the teaching skills and
knowledge that corps members need to enable all
students to meet the State's highest
challenging content and student performance
standards;
``(B) placement of a corps member with the local
educational agency participating in the recruitment
partnership, in a teaching internship that--
``(i) includes intensive mentoring;
``(ii) provides a reduced teaching load;
and
``(iii) provides regular opportunities for
the corps member to co-teach with a mentor
teacher, observe other teachers, and be
observed and coached by other teachers;
``(C) individualized inservice training over the
course of the corps member's first 2 years of full-time
teaching that provides--
``(i) high-quality professional
development, coordinated jointly by members of
the recruitment partnership, and the course
work necessary to provide additional or supplementary knowledge to meet
the specific needs of the corps member; and
``(ii) ongoing mentoring by a teacher who
meets the criteria for a mentor teacher
described in paragraph (4)(B), including the
requirements of section 2812(10); and
``(D) collaboration between the recruitment
partnership and local community student and parent
groups, to assist corps members in enhancing their
understanding of the community in which the members are
placed.
``(3) Evaluation.--A recruitment partnership shall evaluate
a corps member's progress in course study and classroom
practice at regular intervals. Each recruitment partnership
shall have a formal process to identify corps members who seem
unlikely to become effective teachers and terminate their
participation in the program.
``(4) Mentor teachers.--
``(A) In general.--A recruitment partnership shall
develop a plan for the program, which shall include
strategies for identifying, recruiting, training, and
providing ongoing support to individuals who will serve
as mentor teachers to corps members.
``(B) Mentor teacher requirements.--The plan
described in subparagraph (A) shall specify the
criteria that the recruitment partnership will use to
identify and select mentor teachers and, at a minimum,
shall--
``(i) require a mentor teacher to meet the
requirements of section 2812(10); and
``(ii) require that consideration be given
to teachers with national board certification.
``(C) Compensation.--The plan shall specify the
compensation--
``(i) for mentor teachers, including
monetary compensation, release time, or a
reduced work load to ensure that mentor
teachers can provide ongoing support for corps
members; and
``(ii) for corps members, including salary
levels and the stipends, if any, that will be
provided during a corps member's preservice
training.
``(5) Assurances.--The plan shall include assurances that--
``(A) a corps member will be assigned to teach only
academic subjects and grade levels for which the member
is fully qualified;
``(B) corps members, to the extent practicable,
will be placed in schools with teams of corps members;
and
``(C) every mentor teacher will be provided
sufficient time to meet the needs of the corps members
assigned to the mentor teacher.
``(b) Corps Member Qualifications.--
``(1) Candidates intending to teach in elementary
schools.--At a minimum, to be accepted by a teacher corps
program, a candidate who intends to teach at the elementary
school level shall--
``(A) have a bachelor's degree;
``(B) possess an outstanding commitment to working
with children and youth;
``(C) possess a strong professional or
postsecondary record of achievement; and
``(D) pass all basic skills and subject matter
tests required by the State for teacher certification
or licensure.
``(2) Candidates intending to teach in secondary schools.--
At a minimum, to be accepted by a teacher corps program, a
candidate who intends to teach at the secondary school level
shall--
``(A) meet the requirements described in paragraph
(1); and
``(B)(i) possess at least an academic major or
postsecondary degree in each academic subject in which
the candidate intends to teach; or
``(ii) if the candidate did not major or earn a
postsecondary degree in an academic subject in which
the candidate intends to teach, have completed a
rigorous course of instruction in that subject that is
equivalent to having majored in the subject.
``(3) Special rule.--Notwithstanding paragraph (2)(B), the
recruitment partnership may consider the candidate to be an
eligible corps member and accept the candidate for a teacher
corps program if the candidate has worked successfully and
directly in a field and in a position that provided the
candidate with direct and substantive knowledge in the academic
subject in which the candidate intends to teach.
``(c) Three-Year Commitment to Teaching in Eligible Districts.--
``(1) In general.--In return for acceptance to a teacher
corps program, a corps member shall commit to 3 years of full-
time teaching in a school or district served by a local
educational agency participating in a recruitment partnership
receiving funds under this part.
``(2) Reimbursement.--
``(A) In general.--If a corps member leaves the
school district to which the corps member has been
assigned prior to the end of the 3-year period
described in paragraph (1), the corps member shall be
required to reimburse the Secretary for the amount of
the Federal share of the cost of the corps member's
participation in the teacher corps program.
``(B) Partnership claims.--A recruitment
partnership that provides a teacher corps program to a
corps member who leaves the school district, as
discussed in subparagraph (A), may submit a claim to
the corps member requiring the corps member to
reimburse the recruitment partnership for the amount of
the partnership's share of the cost described in
subparagraph (A).
``(C) Reduction.--Reimbursements required under
this paragraph may be reduced proportionally based on
the amount of time a corps member remained in the
teacher corps program beyond the corps member's initial
2 years of service.
``(D) Waiver.--The Secretary may waive
reimbursements required under subparagraph (A) in the
case of severe hardship to a corps member who leaves
the school district, as described in subparagraph (A).
``(d) Federal Share; Non-Federal Share.--
``(1) Payment of federal share.--The Secretary shall pay to
each recruitment partnership carrying out a teacher corps
program under this section the Federal share of the cost of the
activities described in the partnership's application under
section 2806(c).
``(2) Non-federal share.--A recruitment partnership's share
of the cost of the activities described in the partnership's
application under section 2806(c)--
``(A) may be provided in cash or in kind, fairly
evaluated, including plant, equipment, or services; and
``(B)(i) for the first year for which the
partnership receives assistance under this part, shall
be not less than 10 percent;
``(ii) for the second such year, shall be not less
than 20 percent;
``(iii) for the third year such year, shall be not
less than 30 percent;
``(iv) for the fourth such year, shall be not less
than 40 percent; and
``(v) for the fifth such year, shall be not less
than 50 percent.
``SEC. 2809. GRANTS TO PARTNERSHIPS OF INSTITUTIONS OF HIGHER EDUCATION
AND LOCAL EDUCATIONAL AGENCIES.
``(a) Administration.--A State agency for higher education may use,
from the funds made available to the agency under section 2803(a)(4)
for any fiscal year, not more than 3\1/3\ percent for the expenses of
the agency in administering this section, including conducting
evaluations of activities on the performance measures described in
section 2804(a)(2).
``(b) Grants to Partnerships.--
``(1) In general.--The State agency for higher education
shall use the remainder of the funds, in cooperation with the
State educational agency, to make grants to (including entering
into contracts or cooperative agreements with) partnerships
of--
``(A) institutions of higher education that are in
full compliance with all reporting requirements of
title II of the Higher Education Act of 1965 or
nonprofit organizations of demonstrated effectiveness
in providing professional development and mentoring in
the core academic subjects; and
``(B) eligible local educational agencies (as
defined in section 2805(b)(2)), to carry out activities
(and only activities) described in subsection (e).
``(2) Size; duration.--Each grant made under this section
shall be--
``(A) in a sufficient amount to carry out the
objectives of this section effectively; and
``(B) for a period of 3 years, which the State
agency for higher education may extend for an
additional 2 years if the agency determines that the
partnership is making substantial progress toward
meeting the specific goals set out in the written
agreement required in subsection (c) and on the
performance measures described in section 2804(a)(2).
``(3) Applications.--To be eligible to receive a grant
under this section, a partnership shall submit an application
to the State agency for higher education at such time, in such
manner, and containing such information as the agency may
reasonably require.
``(4) Award process and basis.--The State agency for higher
education shall make the grants on a competitive basis, using a
peer review process.
``(5) Priority.--In making the grants, the State agency for
higher education shall give priority to partnerships submitting
applications for projects that focus on mentoring programs for
beginning teachers.
``(6) Considerations.--In making such a grant for a
partnership, the State agency for higher education shall
consider--
``(A) the need of the local educational agency
involved for the professional development and mentoring
activities proposed in the application;
``(B) the quality of the program proposed in the
application and the likelihood of success of the
program in improving classroom instruction and student
academic achievement; and
``(C) such other criteria as the agency finds to be
appropriate.
``(c) Agreements.--
``(1) In general.--No partnership may receive a grant under
this section unless the institution of higher education or
nonprofit organization involved enters into a written agreement
with at least 1 eligible local educational agency (as defined
in section 2805(b)(2)) to provide professional development and
mentoring for elementary school and secondary school teachers
in the schools served by that agency in the core academic
subjects.
``(2) Goals.--Each such agreement shall identify specific
measurable annual goals concerning how the professional
development and mentoring that the partnership provides will
enhance the ability of the teachers to prepare all students to
meet challenging State and local content and student
performance standards.
``(d) Joint Efforts Within Institutions of Higher Education.--Each
professional development and mentoring activity assisted under this
section by a partnership containing an institution of higher education
shall involve the joint effort of the institution of higher education's
school or department of education and the schools or departments of the
institution in the specific disciplines in which the professional
development and mentoring will be provided.
``(e) Uses of Funds.--A partnership that receives funds under this
section shall use the funds for activities (and only for activities)
that consist of--
``(1) professional development and mentoring in the core
academic subjects, aligned with State or local content
standards, for teams of teachers from a school or school
district and, where appropriate, administrators and
paraprofessionals;
``(2) research-based professional development and mentoring
programs to assist beginning teachers, which may include--
``(A) mentoring and coaching by trained mentor
teachers that lasts at least 2 years;
``(B) team teaching with veteran teachers who have
a consistent record of helping their students make
substantial academic gains;
``(C) provision of time for observation of, and
consultation with, veteran teachers;
``(D) provision of reduced teaching loads; and
``(E) provision of additional time for preparation;
``(3) the provision of technical assistance to school and
agency staff for planning, implementing, and evaluating
professional development and mentoring;
``(4) the provision of training for teachers to help the
teachers develop the skills necessary to work most effectively
with parents; and
``(5) in appropriate cases, the provision of training to
address areas of teacher and administrator shortages.
``(f) Coordination.--Any partnership that carries out professional
development and mentoring activities under this section shall
coordinate the activities with activities carried out under title II of
the Higher Education Act of 1965, if a local educational agency or
institution of higher education in the partnership is participating in
programs funded under that title.
``(g) Annual Reports.--
``(1) In general.--Beginning with fiscal year 2002, each
partnership that receives a grant under this section shall
prepare and submit to the appropriate State agency for higher
education, by a date set by that agency, an annual report on
the progress of the partnership on the performance measures
described in section 2804(a)(2).
``(2) Contents.--Each such report shall--
``(A) include a copy of each written agreement
required by subsection (c) that is entered into by the
partnership; and
``(B) describe how the members of the partnership
have collaborated to achieve the specific goals set out
in the agreement, and the results of that
collaboration.
``(3) Copy.--The State agency for higher education shall
provide the State educational agency with a copy of each such
report.
``SEC. 2810. STATE APPLICATION ACCOUNTABILITY PROVISIONS.
``(a) Assurances.--Each State application submitted under section
2802 shall contain assurances that--
``(1) beginning on the date of enactment of the Leave No
Child Behind Act of 2001, no school in the State that is served
under this part will use funds received under this part to hire
a teacher who is not a fully qualified teacher; and
``(2) not later than 4 years after the date of enactment of
the Leave No Child Behind Act of 2001, each teacher in the
State who provides services to students served under this part
shall be a fully qualified teacher.
``(b) Withholding.--If a State fails to meet the requirements
described in subsection (a)(2) for a fiscal year in which the
requirements apply--
``(1) the Secretary shall withhold, for the following
fiscal year, a portion of the funds that would otherwise be
available to the State under section 2803(a)(1) for the
administration of this part; and
``(2) the State shall be subject to such other penalties as
are provided by law for a violation of this Act.
``(c) Assistance by State Educational Agency.--Each State
application submitted under section 2802 shall describe how the State
educational agency will help each local educational agency and school
in the State develop the capacity to comply with the requirements of
this section.
``SEC. 2811. LOCAL APPLICATION ACCOUNTABILITY PROVISIONS.
``Each local application submitted under section 2806 shall contain
assurances that--
``(1) the agency will not hire a teacher with funds made
available to the agency under this part, unless the teacher is
a fully qualified teacher;
``(2) the local educational agency and schools served by
the agency will work to ensure, through voluntary agreements
and incentive programs, that elementary school and secondary
school teachers in high-poverty schools served by the local
educational agency will be at least as well qualified, in terms
of experience and credentials, as the instructional staff in
schools served by the same local educational agency that are
not high-poverty schools;
``(3) any teacher who receives certification from the
National Board for Professional Teaching Standards will be
considered fully qualified to teach in the academic subjects in
which the teacher is certified in high-poverty schools in any
school district or community served by the local educational
agency; and
``(4) the agency will--
``(A) make available, on request and in an
understandable and uniform format, to any parent of a
student attending any school served by the local
educational agency, information regarding the
professional qualifications of the student's classroom
teachers with regard to--
``(i) whether the teacher has met State
certification or licensing criteria for the
academic subjects and grade level in which the
teacher teaches the student;
``(ii) whether the teacher is teaching with
emergency credentials or whether any State
certification or licensing standard has been
waived for the teacher; and
``(iii) the academic qualifications of the
teacher in the academic subjects and grade
levels in which the teacher teaches; and
``(B) inform parents that the parents are entitled
to receive the information upon request.
``SEC. 2812. DEFINITIONS.
``In this part:
``(1) Beginning teacher.--The term `beginning teacher'
means a fully qualified teacher who has taught for 3 years or
less.
``(2) Core academic subjects.--The term `core academic
subjects' means--
``(A) mathematics;
``(B) science;
``(C) reading (or language arts) and English;
``(D) social studies (consisting of history,
civics, government, geography, and economics);
``(E) foreign languages; and
``(F) fine arts (consisting of music, dance, drama,
and the visual arts).
``(3) Covered recruitment.--The term `covered recruitment'
means activities described in section 2807(c).
``(4) Fully qualified.--
``(A) In general.--The term `fully qualified', used
with respect to a teacher, means a teacher who--
``(i)(I) is certified or licensed and has
demonstrated the academic subject knowledge,
teaching knowledge, and teaching skills
necessary to teach effectively in the academic
subject in which the teacher teaches, according
to the standards described in subparagraph (B)
or (C), as appropriate; and
``(II) shall not be a teacher for whom
State certification or licensing requirements
have been waived or who is teaching under
emergency credentials; or
``(ii) meets the standards of the National
Board for Professional Teaching Standards.
``(B) Elementary school instructional staff.--For
purposes of complying with subparagraph (A)(i), each
elementary school teacher (other than a middle school
teacher) in the State shall, at a minimum--
``(i) have State certification or a State
license to teach (which may include
certification or licensing obtained through
alternative routes); and
``(ii) hold a bachelor's degree and
demonstrate the academic subject knowledge,
teaching knowledge, and teaching skills
required to teach effectively in reading,
writing, mathematics, social studies, science,
and other academic subjects.
``(C) Middle school and secondary school
instructional staff.--For purposes of complying with
subparagraph (A)(i), each middle school or secondary
school teacher in the State shall, at a minimum--
``(i) have State certification or a State
license to teach (which may include
certification or licensing obtained through
alternative routes); and
``(ii) hold a bachelor's degree or higher
degree and demonstrate a high level of
competence in all academic subjects in which
the teacher teaches through--
``(I) achievement of a high level
of performance on rigorous academic
subject tests;
``(II) completion of an academic
major (or courses totaling an
equivalent number of credit hours) in
each of the academic subjects in which
the teacher teaches; or
``(III) for a teacher hired prior
to the date of enactment of the Leave
No Child Behind Act of 2001, completion
of appropriate course work for mastery
of such academic subjects.
``(5) High-poverty.--The term `high-poverty', used with
respect to a school, means a school that serves a high number
or percentage of children from families with incomes below the
poverty line, as determined by the State in which the school is
located.
``(6) High-poverty local educational agency.--The term
`high-poverty local educational agency' means a local
educational agency for which the number of children served by
the agency who are age 5 through 17, and from families with
incomes below the poverty line--
``(A) is not less than 20 percent of the number of
all children served by the agency; or
``(B) is more than 10,000.
``(7) Institution of higher education.--The term
`institution of higher education'--
``(A) has the meaning given the term in section
101(a) of the Higher Education Act of 1965; and
``(B) if such an institution prepares teachers and
receives Federal funds, means such an institution
that--
``(i) is in full compliance with the
requirements of section 207 of the Higher
Education Act of 1965; and
``(ii) does not have a teacher preparation
program identified by a State as low-
performing.
``(8) Low-performing school.--The term `low-performing
school' means--
``(A) a school identified by a local educational
agency for school improvement under section 1116(c); or
``(B) a school in which the great majority of
students, as determined by the State in which the
school is located, fail to meet State student
performance standards based on assessments the local
educational agency is using under part A of title I.
``(9) Mentoring.--The term `mentoring' means activities
that--
``(A) consist of structured guidance and regular
and ongoing support for beginning teachers, that--
``(i) is designed to help the teachers
continue to improve their practice of teaching
and to develop their instructional skills; and
``(ii)(I) is part of a multiyear,
developmental induction process;
``(II) involves the assistance of a mentor
teacher and other appropriate individuals from
a school, local educational agency, or
institution of higher education; and
``(III) may include coaching, classroom
observation, team teaching, and reduced
teaching loads; and
``(B) may include the establishment of a
partnership by a local educational agency with an
institution of higher education, another local
educational agency, teacher organization, or another
organization, for the purpose of carrying out the
activities described in subparagraph (A).
``(10) Mentor teacher.--The term `mentor teacher' means a
fully qualified teacher who--
``(A) is a highly competent classroom teacher who
is formally selected and trained to work effectively
with beginning teachers (including corps members
described in section 2808);
``(B) is full-time, and is assigned and qualified
to teach in the content area or grade level in which a
beginning teacher (including a corps member described
in section 2808), to whom the teacher provides
mentoring, intends to teach;
``(C) has been consistently effective in helping
diverse groups of students make substantial achievement
gains; and
``(D) has been selected to provide mentoring
through a peer review process that uses, as the primary
selection criterion for the process, the teacher's
ability to help students achieve academic gains.
``(11) Poverty line.--The term `poverty line' means the
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section 673(2)
of the Community Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
``(12) Professional development.--The term `professional
development' means activities that are--
``(A)(i) an integral part of broad schoolwide and
districtwide educational improvement plans and enhance
the ability of teachers and other staff to help all
students, including females, students with
disabilities, students with limited English
proficiency, and students who have economic and
educational disadvantages, meet high State and local
content and student performance standards;
``(ii) sustained, intensive, school-embedded, tied
to State standards, and of high quality and sufficient
duration to have a positive and lasting impact on
classroom instruction (not one-time workshops); and
``(iii) based on the best available research on
teaching and learning; and
``(B) described in subparagraphs (A) through (F) of
section 2807(a)(1).
``(13) Recruitment activities.--The term `recruitment
activities' means activities carried out through a teacher
corps program as described in section 2808 to attract highly
qualified individuals, including individuals taking
nontraditional routes to teaching, to enter teaching and
support the individuals during necessary certification and
licensure activities.
``(14) Recruitment partnership.--The term `recruitment
partnership' means a partnership described in section
2805(b)(2).
``SEC. 2813. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this part,
$1,730,000,000 for fiscal year 2002 and for each of the 4 succeeding
fiscal years.''.
Subchapter B--National Board Certification Program
SEC. 3471. PURPOSE.
It is the purpose of this subchapter to assist 105,000 elementary
school or secondary school teachers in becoming board certified by the
year 2006.
SEC. 3472. GRANTS TO EXPAND PARTICIPATION IN THE NATIONAL BOARD
CERTIFICATION PROGRAM.
(a) Definitions.--The terms used in this section have the meanings
given the terms in section 14101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801).
(b) Grants Authorized.--From amounts appropriated under subsection
(f), the Secretary shall award grants to States to enable such States
to provide subsidies to elementary school and secondary school teachers
who enroll in the certification program of the National Board for
Professional Teaching Standards.
(c) Application.--To be eligible to receive a grant under
subsection (b), 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.
(d) Amount of Grant.--The amount of a grant awarded to a State
under subsection (b) shall be determined by the Secretary.
(e) Use of Funds.--
(1) In general.--A State shall use amounts received under a
grant under this section to provide a subsidy to an eligible
teacher who enrolls and completes the teaching certification
program of the National Board for Professional Teaching
Standards.
(2) Eligibility.--
(A) In general.--To be eligible to receive a
subsidy under this section an individual shall--
(i) be a teacher in an elementary school or
secondary school, served by a local educational
agency that meets the eligibility requirements
described in subparagraph (B), in the State
involved;
(ii) prepare and submit to the State an
application at such time, in such manner, and
containing such information as the State may
require; and
(iii) certify to the State that the
individual intends to enroll and complete the
teaching certification program of the National
Board for Professional Teaching Standards.
(B) Local educational agency.--A local educational
agency described in subparagraph (A)(i) is a local
educational agency that--
(i) serves low achieving students as
measured by low graduation rates or low scores
on assessment exams;
(ii) has a low teacher retention rate in
the schools served by the local educational
agency;
(iii) has a high rate of out-of-field
placement of teachers in the schools served by
the local educational agency; and
(iv) has a shortage of teachers of
mathematics or physical science in the schools
served by the local educational agency.
(3) Amount of subsidy.--Subject to the availability of
funds, a State shall provide a teacher who has an application
approved under paragraph (2) with a subsidy in an amount equal
to 90 percent of the cost of enrollment in the program
described in paragraph (2)(A)(iii).
(f) Appropriations.--There are authorized to be appropriated to
carry out this section, $37,800,000 for each of the fiscal years 2002
through 2006.
Subchapter C--Student Loan Forgiveness for Teachers
SEC. 3481. STUDENT LOAN FORGIVENESS FOR TEACHERS.
(a) Guaranteed Loans.--Section 428J of the Higher Education Act of
1965 (20 U.S.C. 1078-10) is amended to read as follows:
``SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.
``(a) Statement of Purpose.--It is the purpose of this section to
encourage individuals to enter and continue in the teaching profession.
``(b) Program Authorized.--The Secretary shall carry out a program,
through the holder of the loan, of assuming the obligation to repay in
accordance with subsection (c) a qualified loan amount for a loan made
under section 428 or 428H for any borrower who--
``(1) is employed as a full-time teacher during the
academic year beginning in calendar year 2001 or during any
subsequent academic year--
``(A) in a school that qualifies under section
465(a)(2)(A) for loan cancellation for Perkins loan
recipients who teach in such schools;
``(B) if employed as a secondary school teacher, is
teaching--
``(i) a subject area that is relevant to
the borrower's academic major as certified by
the chief administrative officer of the public
or nonprofit private secondary school in which
the borrower is employed; or
``(ii) special education or bilingual
education;
``(C) if employed as an elementary school teacher,
has demonstrated, as certified by the chief
administrative officer of the public or nonprofit
private elementary school in which the borrower is
employed, knowledge and teaching skills in reading,
writing, mathematics, special education, bilingual
education, or other areas of the elementary school
curriculum; and
``(D) is fully qualified, as such term is defined
in section 2812(4)(A) of the Elementary and Secondary
Education Act of 1965; and
``(2) is not in default on a loan for which the borrower
seeks forgiveness.
``(c) Qualified Loans Amount.--
``(1) In general.--Of the aggregate loan obligations of a
borrower on loans made under section 428 or 428H that are
outstanding after the completion of the first complete school
year of teaching described in subsection (b)(1) for which the
borrower applies for repayment under this section, the
Secretary shall repay not more than--
``(A) $3,000 for each of the first and second such
complete school years;
``(B) $4,000 for the third such complete school
year; and
``(C) $5,000 for each of the fourth and fifth such
complete school years.
``(2) Treatment of consolidation loans.--A loan amount for
a loan made under section 428C may be a qualified loan amount
for the purposes of this subsection only to the extent that
such loan amount was used to repay a Federal Direct Stafford
Loan, a Federal Direct Unsubsidized Stafford Loan, or a loan
made under section 428 or 428H for a borrower who meets the
requirements of subsection (b), as determined in accordance
with regulations prescribed by the Secretary.
``(d) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(e) Construction.--Nothing in this section shall be construed to
authorize any refunding of any repayment of a loan.
``(f) List.--If the list of schools in which a teacher may perform
service pursuant to subsection (b) is not available before May 1 of any
year, the Secretary may use the list for the year preceding the year
for which the determination is made to make such service determination.
``(g) Additional Eligibility Provisions.--
``(1) Continued eligibility.--Any teacher who performs
service in a school that--
``(A) meets the requirements of subsection
(b)(1)(A) in any year during such service; and
``(B) in a subsequent year fails to meet the
requirements of such subsection,
may continue to teach in such school and shall be eligible for
loan forgiveness pursuant to subsection (b).
``(2) Prevention of double benefits.--No borrower may, for
the same service, receive a benefit under both this subsection
and subtitle D of title I of the National and Community Service
Act of 1990 (42 U.S.C. 12571 et seq.). No borrower may receive
a reduction of loan obligations under both this section and
section 460.
``(h) Definition.--For purposes of this section, the term `year',
where applied to service as a teacher, means an academic year as
defined by the Secretary.''.
(b) Direct Loans.--Section 460 of such Act (20 U.S.C. 1087j) is
amended to read as follows:
``SEC. 460. LOAN FORGIVENESS FOR TEACHERS.
``(a) Statement of Purpose.--It is the purpose of this section to
encourage individuals to enter and continue in the teaching profession.
``(b) Program Authorized.--The Secretary shall carry out a program
of canceling the obligation to repay a qualified loan amount in
accordance with subsection (c) for Federal Direct Stafford Loans and
Federal Direct Unsubsidized Stafford Loans made under this part for any
borrower who--
``(1) is employed as a full-time teacher during the
academic year beginning in calendar year 2001 or during any
subsequent academic year--
``(A) in a school that qualifies under section
465(a)(2)(A) for loan cancellation for Perkins loan
recipients who teach in such schools;
``(B) if employed as a secondary school teacher, is
teaching--
``(i) a subject area that is relevant to
the borrower's academic major as certified by
the chief administrative officer of the public
or nonprofit private secondary school in which
the borrower is employed; or
``(ii) special education or bilingual
education;
``(C) if employed as an elementary school teacher,
has demonstrated, as certified by the chief
administrative officer of the public or nonprofit
private elementary school in which the borrower is
employed, knowledge and teaching skills in reading,
writing, mathematics, special education, bilingual
education, and other areas of the elementary school
curriculum; and
``(D) is fully qualified, as such term is defined
in section 2812(4)(A) of the Elementary and Secondary
Education Act of 1965; and
``(2) is not in default on a loan for which the borrower
seeks forgiveness.
``(c) Qualified Loans Amount.--
``(1) In general.--Of the aggregate loan obligations of a
borrower on Federal Direct Stafford Loans and Federal Direct
Unsubsidized Stafford Loans made under this part that are
outstanding after the completion of the first complete school
year of teaching described in subsection (b)(1) for which the
borrower applies for cancellation under this section, the
Secretary shall cancel not more than--
``(A) $3,000 for each of the first and second such
complete school years;
``(B) $4,000 for the third such complete school
year; and
``(C) $5,000 for each of the fourth and fifth such
complete school years.
``(2) Treatment of consolidation loans.--A loan amount for
a Federal Direct Consolidation Loan may be a qualified loan
amount for the purposes of this subsection only to the extent
that such loan amount was used to repay a Federal Direct
Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or
a loan made under section 428 or 428H, for a borrower who meets
the requirements of subsection (b), as determined in accordance
with regulations prescribed by the Secretary.
``(d) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(e) Construction.--Nothing in this section shall be construed to
authorize any refunding of any repayment of a loan.
``(f) List.--If the list of schools in which a teacher may perform
service pursuant to subsection (b) is not available before May 1 of any
year, the Secretary may use the list for the year preceding the year
for which the determination is made to make such service determination.
``(g) Additional Eligibility Provisions.--
``(1) Continued eligibility.--Any teacher who performs
service in a school that--
``(A) meets the requirements of subsection
(b)(1)(A) in any year during such service; and
``(B) in a subsequent year fails to meet the
requirements of such subsection,
may continue to teach in such school and shall be eligible for
loan forgiveness pursuant to subsection (b).
``(2) Prevention of double benefits.--No borrower may, for
the same service, receive a benefit under both this subsection
and subtitle D of title I of the National and Community Service
Act of 1990 (42 U.S.C. 12571 et seq.). No borrower may receive
a reduction of loan obligations under both this section and
section 428J.
``(h) Definition.--For purposes of this section, the term `year',
where applied to service as a teacher, means an academic year as
defined by the Secretary.''.
CHAPTER 6--SCHOOL CONSTRUCTION
Subchapter A--School Modernization Bonds
SEC. 3501. SHORT TITLE.
This subchapter may be cited as the ``America's Better Classroom
Act of 2001''.
SEC. 3502. EXPANSION OF INCENTIVES FOR PUBLIC SCHOOLS.
(a) In General.--Chapter 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following:
``Subchapter Y--Public School Modernization Provisions
``Sec. 1400K. Credit to holders of
qualified public school
modernization bonds.
``Sec. 1400L. Qualified school
construction bonds.
``Sec. 1400M. Qualified zone academy
bonds.
``SEC. 1400K. CREDIT TO HOLDERS OF QUALIFIED PUBLIC SCHOOL
MODERNIZATION BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who holds a
qualified public school modernization bond on a credit allowance date
of such bond which occurs during the taxable year, there shall be
allowed as a credit against the tax imposed by this chapter for such
taxable year an amount equal to the sum of the credits determined under
subsection (b) with respect to credit allowance dates during such year
on which the taxpayer holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a qualified public school modernization bond is 25 percent
of the annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified public school modernization bond is
the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(1), the applicable credit rate with respect to an issue is the
rate equal to an average market yield (as of the day before the
date of issuance of the issue) on outstanding long-term
corporate debt obligations (determined under regulations
prescribed by the Secretary).
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under part
IV of subchapter A (other than subpart C thereof,
relating to refundable credits).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year.
``(d) Qualified Public School Modernization Bond; Credit Allowance
Date.--For purposes of this section--
``(1) Qualified public school modernization bond.--The term
`qualified public school modernization bond' means--
``(A) a qualified zone academy bond, and
``(B) a qualified school construction bond.
``(2) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Local educational agency.--The term `local
educational agency' has the meaning given to such term by
section 14101 of the Elementary and Secondary Education Act of
1965. Such term includes the local educational agency that
serves the District of Columbia but does not include any other
State agency.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Public school facility.--The term `public school
facility' shall not include--
``(A) any stadium or other facility primarily used
for athletic contests or exhibitions or other events
for which admission is charged to the general public, or
``(B) any facility which is not owned by a State or
local government or any agency or instrumentality of a
State or local government.
``(f) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (c)) and the amount so
included shall be treated as interest income.
``(g) Bonds Held by Regulated Investment Companies.--If any
qualified public school modernization bond is held by a regulated
investment company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures prescribed by
the Secretary.
``(h) Credits May Be Stripped.--Under regulations prescribed by the
Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified public school
modernization bond and the entitlement to the credit under this
section with respect to such bond. In case of any such
separation, the credit under this section shall be allowed to
the person who on the credit allowance date holds the
instrument evidencing the entitlement to the credit and not to
the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified public school modernization bond as if
it were a stripped bond and to the credit under this section as
if it were a stripped coupon.
``(i) Treatment for Estimated Tax Purposes.--Solely for purposes of
sections 6654 and 6655, the credit allowed by this section to a
taxpayer by reason of holding a qualified public school modernization
bonds on a credit allowance date shall be treated as if it were a
payment of estimated tax made by the taxpayer on such date.
``(j) Credit May Be Transferred.--Nothing in any law or rule of law
shall be construed to limit the transferability of the credit allowed
by this section through sale and repurchase agreements.
``(k) Reporting.--Issuers of qualified public school modernization
bonds shall submit reports similar to the reports required under
section 149(e).
``(l) Termination.--This section shall not apply to any bond issued
after September 30, 2006.
``SEC. 1400L. QUALIFIED SCHOOL CONSTRUCTION BONDS.
``(a) Qualified School Construction Bond.--For purposes of this
subchapter, the term `qualified school construction bond' means any
bond issued as part of an issue if--
``(1) 95 percent or more of the proceeds of such issue are
to be used for the construction, rehabilitation, or repair of a
public school facility or for the acquisition of land on which
such a facility is to be constructed with part of the proceeds
of such issue,
``(2) the bond is issued by a State or local government
within the jurisdiction of which such school is located,
``(3) the issuer designates such bond for purposes of this
section, and
``(4) the term of each bond which is part of such issue
does not exceed 15 years.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds issued during any calendar year which
may be designated under subsection (a) by any issuer shall not exceed
the sum of--
``(1) the limitation amount allocated under subsection (d)
for such calendar year to such issuer, and
``(2) if such issuer is a large local educational agency
(as defined in subsection (e)(4)) or is issuing on behalf of
such an agency, the limitation amount allocated under
subsection (e) for such calendar year to such agency.
``(c) National Limitation on Amount of Bonds Designated.--There is
a national qualified school construction bond limitation for each
calendar year. Such limitation is--
``(1) $11,000,000,000 for 2002,
``(2) $11,000,000,000 for 2003, and
``(3) except as provided in subsection (f), zero after
2003.
``(d) 60 Percent of Limitation Allocated Among States.--
``(1) In general.--60 percent of the limitation applicable
under subsection (c) for any calendar year shall be allocated
by the Secretary among the States in proportion to the
respective numbers of children in each State who have attained
age 5 but not age 18 for the most recent fiscal year ending
before such calendar year. The limitation amount allocated to a
State under the preceding sentence shall be allocated by the
State to issuers within such State and such allocations may be
made only if there is an approved State application.
``(2) Minimum allocations to states.--
``(A) In general.--The Secretary shall adjust the
allocations under this subsection for any calendar year
for each State to the extent necessary to ensure that
the sum of--
``(i) the amount allocated to such State
under this subsection for such year, and
``(ii) the aggregate amounts allocated
under subsection (e) to large local educational
agencies in such State for such year,
is not less than an amount equal to such State's
minimum percentage of the amount to be allocated under
paragraph (1) for the calendar year.
``(B) Minimum percentage.--A State's minimum
percentage for any calendar year is the minimum
percentage described in section 1124(d) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6334(d)) for such State for the most recent
fiscal year ending before such calendar year.
``(3) Allocations to certain possessions.--The amount to be
allocated under paragraph (1) to any possession of the United
States other than Puerto Rico shall be the amount which would
have been allocated if all allocations under paragraph (1) were
made on the basis of respective populations of individuals
below the poverty line (as defined by the Office of Management
and Budget). In making other allocations, the amount to be
allocated under paragraph (1) shall be reduced by the aggregate
amount allocated under this paragraph to possessions of the
United States.
``(4) Allocations for indian schools.--In addition to the
amounts allocated under this subsection, $200,000,000 for
calendar year 2002, and $200,000,000 for calendar year 2003,
shall be allocated by the Secretary of the Interior for
purposes of the construction, rehabilitation, and repair of
schools funded by the Bureau of Indian Affairs. In the case of
amounts allocated under the preceding sentence, Indian tribal
governments (as defined in section 7871) shall be treated as
qualified issuers for purposes of this subchapter.
``(5) Approved state application.--For purposes of
paragraph (1), the term `approved State application' means an
application which is approved by the Secretary of Education and
which includes--
``(A) the results of a recent publicly-available
survey (undertaken by the State with the involvement of
local education officials, members of the public, and
experts in school construction and management) of such
State's needs for public school facilities, including
descriptions of--
``(i) health and safety problems at such
facilities,
``(ii) the capacity of public schools in
the State to house projected enrollments, and
``(iii) the extent to which the public
schools in the State offer the physical
infrastructure needed to provide a high-quality
education to all students, and
``(B) a description of how the State will allocate
to local educational agencies, or otherwise use, its
allocation under this subsection to address the needs
identified under subparagraph (A), including a
description of how it will--
``(i) ensure that the needs of both rural
and urban areas will be recognized,
``(ii) give highest priority to localities
with the greatest needs, as demonstrated by
inadequate school facilities coupled with a low
level of resources to meet those needs,
``(iii) use its allocation under this
subsection to assist localities that lack the
fiscal capacity to issue bonds on their own,
and
``(iv) ensure that its allocation under
this subsection is used only to supplement, and
not supplant, the amount of school
construction, rehabilitation, and repair in the
State that would have occurred in the absence
of such allocation.
Any allocation under paragraph (1) by a State shall be binding
if such State reasonably determined that the allocation was in
accordance with the plan approved under this paragraph.
``(e) 40 Percent of Limitation Allocated Among Largest School
Districts.--
``(1) In general.--40 percent of the limitation applicable
under subsection (c) for any calendar year shall be allocated
under paragraph (2) by the Secretary among local educational
agencies which are large local educational agencies for such
year. No qualified school construction bond may be issued by
reason of an allocation to a large local educational agency
under the preceding sentence unless such agency has an approved
local application.
``(2) Allocation formula.--The amount to be allocated under
paragraph (1) for any calendar year shall be allocated among
large local educational agencies in proportion to the
respective amounts each such agency received for Basic Grants
under subpart 2 of part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for
the most recent fiscal year ending before such calendar year.
``(3) Allocation of unused limitation to state.--The amount
allocated under this subsection to a large local educational
agency for any calendar year may be reallocated by such agency
to the State in which such agency is located for such calendar
year. Any amount reallocated to a State under the preceding
sentence may be allocated as provided in subsection (d)(1).
``(4) Large local educational agency.--For purposes of this
section, the term `large local educational agency' means, with
respect to a calendar year, any local educational agency if
such agency is--
``(A) among the 100 local educational agencies with
the largest numbers of children aged 5 through 17 from
families living below the poverty level, as determined
by the Secretary using the most recent data available
from the Department of Commerce that are satisfactory
to the Secretary, or
``(B) 1 of not more than 25 local educational
agencies (other than those described in subparagraph
(A)) that the Secretary of Education determines (based
on the most recent data available satisfactory to the
Secretary) are in particular need of assistance, based
on a low level of resources for school construction, a
high level of enrollment growth, or such other factors
as the Secretary deems appropriate.
``(5) Approved local application.--For purposes of
paragraph (1), the term `approved local application' means an
application which is approved by the Secretary of Education and
which includes--
``(A) the results of a recent publicly-available
survey (undertaken by the local educational agency or
the State with the involvement of school officials,
members of the public, and experts in school
construction and management) of such agency's needs for
public school facilities, including descriptions of--
``(i) the overall condition of the local
educational agency's school facilities,
including health and safety problems,
``(ii) the capacity of the agency's schools
to house projected enrollments, and
``(iii) the extent to which the agency's
schools offer the physical infrastructure
needed to provide a high-quality education to
all students,
``(B) a description of how the local educational
agency will use its allocation under this subsection to
address the needs identified under subparagraph (A),
and
``(C) a description of how the local educational
agency will ensure that its allocation under this
subsection is used only to supplement, and not
supplant, the amount of school construction,
rehabilitation, or repair in the locality that would
have occurred in the absence of such allocation.
A rule similar to the rule of the last sentence of subsection
(d)(5) shall apply for purposes of this paragraph.
``(f) Carryover of Unused Limitation.--If for any calendar year--
``(1) the amount allocated under subsection (d) to any
State, exceeds
``(2) the amount of bonds issued during such year which are
designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the
following calendar year shall be increased by the amount of such
excess. A similar rule shall apply to the amounts allocated under
subsection (d)(5) or (e).
``(g) Special Rules Relating to Arbitrage.--
``(1) In general.--A bond shall not be treated as failing
to meet the requirement of subsection (a)(1) solely by reason
of the fact that the proceeds of the issue of which such bond
is a part are invested for a temporary period (but not more
than 36 months) until such proceeds are needed for the purpose
for which such issue was issued.
``(2) Binding commitment requirement.--Paragraph (1) shall
apply to an issue only if, as of the date of issuance, there is
a reasonable expectation that--
``(A) at least 10 percent of the proceeds of the
issue will be spent within the 6-month period beginning
on such date for the purpose for which such issue was
issued, and
``(B) the remaining proceeds of the issue will be
spent with due diligence for such purpose.
``(3) Earnings on proceeds.--Any earnings on proceeds
during the temporary period shall be treated as proceeds of the
issue for purposes of applying subsection (a)(1) and paragraph
(1) of this subsection.
``SEC. 1400M. QUALIFIED ZONE ACADEMY BONDS.
``(a) Qualified Zone Academy Bond.--For purposes of this
subchapter--
``(1) In general.--The term `qualified zone academy bond'
means any bond issued as part of an issue if--
``(A) 95 percent or more of the proceeds of such
issue are to be used for a qualified purpose with
respect to a qualified zone academy established by a
local educational agency,
``(B) the bond is issued by a State or local
government within the jurisdiction of which such
academy is located,
``(C) the issuer--
``(i) designates such bond for purposes of
this section,
``(ii) certifies that it has written
assurances that the private business
contribution requirement of paragraph (2) will
be met with respect to such academy, and
``(iii) certifies that it has the written
approval of the local educational agency for
such bond issuance, and
``(D) the term of each bond which is part of such
issue does not exceed 15 years.
Rules similar to the rules of section 1400L(g) shall apply for
purposes of paragraph (1).
``(2) Private business contribution requirement.--
``(A) In general.--For purposes of paragraph (1),
the private business contribution requirement of this
paragraph is met with respect to any issue if the local
educational agency that established the qualified zone
academy has written commitments from private entities
to make qualified contributions having a present value
(as of the date of issuance of the issue) of not less
than 10 percent of the proceeds of the issue.
``(B) Qualified contributions.--For purposes of
subparagraph (A), the term `qualified contribution'
means any contribution (of a type and quality
acceptable to the local educational agency) of--
``(i) equipment for use in the qualified
zone academy (including state-of-the-art
technology and vocational equipment),
``(ii) technical assistance in developing
curriculum or in training teachers in order to
promote appropriate market driven technology in
the classroom,
``(iii) services of employees as volunteer
mentors,
``(iv) internships, field trips, or other
educational opportunities outside the academy
for students, or
``(v) any other property or service
specified by the local educational agency.
``(3) Qualified zone academy.--The term `qualified zone
academy' means any public school (or academic program within a
public school) which is established by and operated under the
supervision of a local educational agency to provide education
or training below the postsecondary level if--
``(A) such public school or program (as the case
may be) is designed in cooperation with business to
enhance the academic curriculum, increase graduation
and employment rates, and better prepare students for
the rigors of college and the increasingly complex
workforce,
``(B) students in such public school or program (as
the case may be) will be subject to the same academic
standards and assessments as other students educated by
the local educational agency,
``(C) the comprehensive education plan of such
public school or program is approved by the local
educational agency, and
``(D)(i) such public school is located in an
empowerment zone or enterprise community (including any
such zone or community designated after the date of the
enactment of this section), or
``(ii) there is a reasonable expectation (as of the
date of issuance of the bonds) that at least 35 percent
of the students attending such school or participating
in such program (as the case may be) will be eligible
for free or reduced-cost lunches under the school lunch
program established under the National School Lunch
Act.
``(4) Qualified purpose.--The term `qualified purpose'
means, with respect to any qualified zone academy--
``(A) constructing, rehabilitating, or repairing
the public school facility in which the academy is
established,
``(B) acquiring the land on which such facility is
to be constructed with part of the proceeds of such
issue,
``(C) providing equipment for use at such academy,
``(D) developing course materials for education to
be provided at such academy, and
``(E) training teachers and other school personnel
in such academy.
``(b) Limitations on Amount of Bonds Designated.--
``(1) In general.--There is a national zone academy bond
limitation for each calendar year. Such limitation is--
``(A) $400,000,000 for 1998,
``(B) $400,000,000 for 1999,
``(C) $400,000,000 for 2000,
``(D) $400,000,000 for 2001,
``(E) $1,400,000,000 for 2002,
``(F) $1,400,000,000 for 2003, and
``(G) except as provided in paragraph (3), zero
after 2003.
``(2) Allocation of limitation.--
``(A) Allocation among states.--
``(i) 1998, 1999, 2000, and 2001
limitations.--The national zone academy bond
limitations for calendar years 1998, 1999,
2000, and 2001 shall be allocated by the
Secretary among the States on the basis of
their respective populations of individuals
below the poverty line (as defined by the
Office of Management and Budget).
``(ii) Limitation after 2001.--The national
zone academy bond limitation for any calendar
year after 2001 shall be allocated by the
Secretary among the States in proportion to the
respective amounts each such State received for
Basic Grants under subpart 2 of part A of title
I of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6331 et seq.) for the most
recent fiscal year ending before such calendar
year.
``(B) Allocation to local educational agencies.--
The limitation amount allocated to a State under
subparagraph (A) shall be allocated by the State to
qualified zone academies within such State.
``(C) Designation subject to limitation amount.--
The maximum aggregate face amount of bonds issued
during any calendar year which may be designated under
subsection (a) with respect to any qualified zone
academy shall not exceed the limitation amount
allocated to such academy under subparagraph (B) for
such calendar year.
``(3) Carryover of unused limitation.--If for any calendar
year--
``(A) the limitation amount under this subsection
for any State, exceeds
``(B) the amount of bonds issued during such year
which are designated under subsection (a) (or the
corresponding provisions of prior law) with respect to
qualified zone academies within such State,
the limitation amount under this subsection for such State for
the following calendar year shall be increased by the amount of
such excess.''
(b) Reporting.--Subsection (d) of section 6049 of the Internal
Revenue Code of 1986 (relating to returns regarding payments of
interest) is amended by adding at the end the following:
``(8) Reporting of credit on qualified public school
modernization bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 1400K(f) and such amounts
shall be treated as paid on the credit allowance date
(as defined in section 1400K(d)(2)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A) of this
paragraph, subsection (b)(4) of this section shall be
applied without regard to subparagraphs (A), (H), (I),
(J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''
(c) Conforming Amendments.--
(1) Subchapter U of chapter 1 of the Internal Revenue Code
of 1986 is amended by striking part IV, by redesignating part V
as part IV, and by redesignating section 1397F as section
1397E.
(2) The table of subchapters for chapter 1 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following:
``Subchapter Y. Public school
modernization provisions.''
(3) The table of parts of subchapter U of chapter 1 of the
Internal Revenue Code of 1986 is amended by striking the last 2
items and inserting the following:
``Part IV. Regulations.''
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
obligations issued after December 31, 2001.
(2) Repeal of restriction on zone academy bond holders.--In
the case of bonds to which section 1397E of the Internal
Revenue Code of 1986 (as in effect before the date of enactment
of this Act) applies, the limitation of such section to
eligible taxpayers (as defined in subsection (d)(6) of such
section) shall not apply after the date of enactment of this
Act.
SEC. 3503. APPLICATION OF CERTAIN LABOR STANDARDS ON CONSTRUCTION
PROJECTS FINANCED UNDER PUBLIC SCHOOL MODERNIZATION
PROGRAM.
Section 439 of the General Education Provisions Act (relating to
labor standards) (20 U.S.C. 1232b) is amended--
(1) by inserting ``(a)'' before ``All laborers and
mechanics''; and
(2) by adding at the end the following:
``(b)(1) For purposes of this section, the term `applicable
program' also includes the qualified zone academy bond provisions
enacted by section 226 of the Taxpayer Relief Act of 1997 and the
program established by section 3502 of the America's Better Classroom
Act of 2001.
``(2) A State or local government participating in a program
described in paragraph (1) shall--
``(A) in the awarding of contracts, give priority to
contractors with substantial numbers of employees residing in
the local education area to be served by the school being
constructed; and
``(B) include in the construction contract for such school
a requirement that the contractor give priority in hiring new
workers to individuals residing in such local education area.
``(3) In the case of a program described in paragraph (1), nothing
in this subsection or subsection (a) shall be construed to deny any tax
credit allowed under such program. If amounts are required to be
withheld from contractors to pay wages to which workers are entitled,
such amounts shall be treated as expended for construction purposes in
determining whether the requirements of such program are met.''.
Subchapter B--Schools as Centers of the Community
SEC. 3551. FINDINGS.
Congress makes the following findings:
(1) Communities across the Nation need to build and
modernize thousands of public elementary schools and secondary
schools in the coming decade in ways that reflect new
approaches to teaching and learning, and in ways that reflect
the fact that learning is a lifelong process for persons of all
ages. These schools can make an enduring difference for these
communities by affecting not just students but entire
neighborhoods for generations.
(2) The National Symposium on School Design has recommended
that local educational agencies hold community dialogues that
discuss the planning and design of their new school buildings.
Community partnerships of parents, educators, architects, urban
planners, students, and other interested parties can assist
local educational agencies to design new schools that better
meet the needs of their communities now and in the future.
(3) Establishing such community partnerships for the
purpose of broadening public participation in the planning and
design of schools encourages broader community involvement in
the schools, generates creativity in the planning process, and
promotes savings, cost-sharing, and the most effective use of
the school building by the entire community. Such partnerships
can help create schools that are centers of teaching and
learning for the entire community.
SEC. 3552. PURPOSE.
The purpose of this subchapter is to assist local educational
agencies and their communities to increase the involvement of parents,
teachers, students, and community groups in the planning and design of
new and renovated public elementary school and secondary school
buildings that--
(1) enhance teaching and learning, and accommodate the
needs of all learners;
(2) serve as a center of the community;
(3) promote health, safety, and security;
(4) effectively use all available resources; and
(5) are flexible and can accommodate changing community
needs.
SEC. 3553. PROGRAM AUTHORIZED.
(a) Grants Authorized.--
(1) In general.--From funds appropriated under section
3556, the Secretary shall award grants to local educational
agencies participating in eligible consortia to enable the
eligible consortia to support the planning and design of--
(A) new elementary school or secondary school
buildings; or
(B) the renovation of existing elementary school or
secondary school buildings.
(2) Definition of eligible consortium.--In this subchapter,
the term ``eligible consortium'' means a consortium that--
(A) shall include at least 1 local educational
agency; and
(B) may include such organizations and individuals
as a State educational agency, a community-based
organization, a local government, a business or
industry, an architect, a parent, teacher, or senior
citizen group, a library, or a museum.
(b) Requirements.--
(1) Duration.--Grants under this subchapter shall be
awarded for not more than 1 year.
(2) Limitation.--Not more than 1 grant provided under this
subchapter may be used to plan or design the same school.
(3) Matching.--A grant under this subchapter shall not be
used to pay for more than 50 percent of the cost of a planning
or design project. A recipient of a grant under this subchapter
shall provide at least 50 percent of the cost of the planning
or design project from non-Federal sources, which may include
in-kind contributions, fairly evaluated.
(c) Geographic Distribution.--In awarding grants under this
subchapter, the Secretary is authorized to take such steps as are
necessary to ensure an equitable geographic distribution of the grants,
including distributing the grants among rural, urban, and suburban
local educational agencies.
SEC. 3554. USE OF FUNDS.
A grant under this subchapter shall be used by a local educational
agency to support the planning or design of a new school building, or
of the renovation of an existing school building, and may be used for
activities such as--
(1) community outreach activities (including the
development and circulation of explanatory materials and the
cost of meetings) designed to encourage greater participation
by the community;
(2) the development, with the involvement of all
stakeholders, of a master plan for a school district; and
(3) necessary administrative support for the eligible
consortium.
SEC. 3555. APPLICATIONS.
(a) In General.--Each local educational agency desiring a grant
under this subchapter shall submit to the Secretary an application at
such time, and containing such information, as the Secretary may
require.
(b) Contents.--Each application submitted under this subchapter
shall describe--
(1) the community to be served by the new or renovated
school, including the needs of that community with respect to
such school;
(2) the individuals and groups that compose the eligible
consortium and their respective functions;
(3) the project activities to be supported by the grant and
how the activities will help meet the needs of that community
and the purpose of this subchapter; and
(4) the availability of resources for the project, and how
the resources will be obtained.
SEC. 3556. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
subchapter $10,000,000 for fiscal year 2002, and such sums as may be
necessary for each of the 4 succeeding fiscal years.
Chapter 7--Child Opportunity Zone Family Centers
SEC. 3571. CHILD OPPORTUNITY ZONE FAMILY CENTERS.
Title X of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8001 et seq.), as amended by section 3401, is further amended by
inserting after part L the following:
``PART M--CHILD OPPORTUNITY ZONE FAMILY CENTERS
``SEC. 10997A. SHORT TITLE.
``This part may be cited as the `Child Opportunity Zone Family
Center Act of 2001'.
``SEC. 10997B. PURPOSE.
``The purpose of this part is to encourage eligible partnerships to
establish or expand child opportunity zone family centers in public
elementary schools and secondary schools in order to provide
comprehensive support services for children and their families, and to
improve the children's educational, health, mental health, and social
outcomes.
``SEC. 10997C. DEFINITIONS.
``In this part:
``(1) Child opportunity zone family center.--The term
`child opportunity zone family center' means a school-based or
school-linked community service center that provides and links
children and their families with comprehensive information,
support, services, and activities to improve the education,
health, mental health, safety, and economic well-being of the
children and their families.
``(2) Eligible partnership.--The term `eligible
partnership' means a partnership--
``(A) that contains--
``(i) at least 1 public elementary school
or secondary school that--
``(I) receives assistance under
title I and for which a measure of
poverty determination is made under
section 1113(a)(5) with respect to a
minimum of 40 percent of the children
in the school; and
``(II) demonstrates parent
involvement and parent support for the
partnership's activities;
``(ii) a local educational agency;
``(iii) a public agency, other than a local
educational agency, such as a local or State
department of health, mental health, or social
services;
``(iv) a nonprofit community-based
organization, providing health, mental health,
or social services;
``(v) a local child care resource and
referral agency; and
``(vi) a local organization representing
parents; and
``(B) that may contain--
``(i) an institution of higher education;
and
``(ii) other public or private nonprofit
entities with experience in providing services
to disadvantaged families.
``SEC. 10997D. GRANTS AUTHORIZED.
``(a) In General.--The Secretary may award, on a competitive basis,
grants to eligible partnerships to pay for the Federal share of the
cost of establishing and expanding child opportunity zone family
centers.
``(b) Duration.--The Secretary shall award grants under this
section for periods of 5 years.
``SEC. 10997E. REQUIRED ACTIVITIES.
``Each eligible partnership receiving a grant under this part shall
use the grant funds--
``(1) in accordance with the needs assessment described in
section 10997F(b)(1), to provide or link children and their
families with information, support, activities, or services in
core areas such as education, child care, before- and after-
school care and enrichment programs, health services, mental
health services, family support, nutrition, literacy services,
parenting skills, and drop-out prevention;
``(2) to provide intensive, high-quality, research-based
programs that--
``(A) provide violence prevention education for
families and developmentally appropriate instructional
services to children (including children below the age
of compulsory school attendance); and
``(B) provide effective strategies for nurturing
and supporting the emotional, social, and cognitive
growth of children; and
``(3) to provide training, information, and support to
families to enable the families to participate effectively in
their children's education, and to help their children meet
challenging standards, including assisting families to--
``(A) understand the applicable accountability
systems, including State and local content standards,
performance standards, and assessments, their
children's educational performance in comparison to the
standards, and the steps the school is taking to
address the children's needs and to help the children
meet the standards; and
``(B) communicate effectively with personnel
responsible for providing educational services to the
families' children, and to participate in the
development and implementation of school-parent
compacts, parent involvement policies, and school
plans.
``SEC. 10997F. APPLICATIONS.
``(a) In General.--Each eligible partnership desiring a grant under
this part shall submit an application to the Secretary at such time, in
such manner, and containing such information as the Secretary may
require.
``(b) Contents.--Each application submitted pursuant to subsection
(a) shall--
``(1) include a needs assessment, including a description
of how the partnership will ensure that the activities to be
assisted under this part will be tailored to meet the specific
needs of the children and families to be served;
``(2) describe arrangements that have been formalized
between the participating public elementary school or secondary
school, and other partnership members;
``(3) describe how the partnership will effectively
coordinate with the centers under section 1118 and utilize
Federal, State, and local sources of funding that provide
assistance to families and their children;
``(4) describe the partnership's plan to--
``(A) develop and carry out the activities assisted
under this part with extensive participation of
parents, administrators, teachers, pupil services
personnel, social and human service agencies, and
community organizations and leaders; and
``(B) coordinate the activities assisted under this
part with the education reform efforts of the
participating public elementary school or secondary
school, and the participating local educational agency;
``(5) describe how the partnership will ensure that
underserved populations such as families of students with
limited English proficiency, and families of students with
disabilities, are effectively involved, informed, and assisted;
``(6) describe how the partnership will collect and analyze
data, and will utilize specific performance measures and
indicators to--
``(A) determine the impact of activities assisted
under this part as described in section 10997I(a); and
``(B) improve the activities assisted under this
part; and
``(7) describe how the partnership will protect the privacy
of families and their children participating in the activities
assisted under this part.
``SEC. 10997G. FEDERAL SHARE.
``The Federal share of the cost of establishing and expanding child
opportunity zone family centers--
``(1) for the first year for which an eligible partnership
receives assistance under this part shall not exceed 90
percent;
``(2) for the second such year, shall not exceed 80
percent;
``(3) for the third such year, shall not exceed 70 percent;
``(4) for the fourth such year, shall not exceed 60
percent; and
``(5) for the fifth such year, shall not exceed 50 percent.
``SEC. 10997H. FUNDING.
``(a) Continuation of Funding.--Each eligible partnership that
receives a grant under this part shall, after the third year for which
the partnership receives funds through the grant, be eligible to
continue to receive the funds if the Secretary determines that the
partnership has made significant progress in meeting the
performance measures used for the partnership's local evaluation under
section 10997I(a).
``(b) Limitation on Use of Funds To Offset Other Programs.--
Notwithstanding any other provision of law, none of the funds received
under a grant under this part may be used to pay for expenses related
to any other Federal program, including treating such funds as an
offset against such a Federal program.
``SEC. 10997I. EVALUATIONS AND REPORTS.
``(a) Local Evaluations.--Each partnership receiving funds under
this part shall conduct annual evaluations and submit to the Secretary
reports containing the results of the evaluations. The reports shall
include the results of the partnership's performance assessment
effectiveness in reaching and meeting the needs of families and
children served under this part, including performance measures
demonstrating--
``(1) improvements in areas such as student achievement,
family participation in schools, and access to health care,
mental health care, child care, and family support services,
resulting from activities assisted under this part; and
``(2) reductions in such areas as violence among youth,
truancy, suspension, and dropout rates, resulting from
activities assisted under this part.
``(b) National Evaluations.--The Secretary shall reserve not more
than 3 percent of the amount appropriated under this part to carry out
a national evaluation of the effectiveness of the activities assisted
under this part. Such evaluation shall be completed not later than 3
years after the date of enactment of the Child Opportunity Zone Family
Center Act of 2001, and every year thereafter and shall be submitted to
Congress.
``(c) Exemplary Activities.--The Secretary shall broadly
disseminate information on exemplary activities developed under this
part.
``SEC. 10997J. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$100,000,000 for fiscal year 2002, and such sums as may be necessary
for each of the fiscal years 2003 through 2005.''.
TITLE IV--FAIR START--LIFTING CHILDREN OUT OF POVERTY
Subtitle A--Expanding the Child Tax Credit
SEC. 4001. EXPANSION OF CHILD TAX CREDIT; CREDIT MADE PARTIALLY
REFUNDABLE.
(a) Increase in Amount Allowed.--Subsection (a) of section 24 of
the Internal Revenue Code of 1986 (relating to allowance of credit) is
amended to read as follows:
``(a) Allowance of Credit.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year
with respect to each qualifying child of the taxpayer an amount
equal to the applicable amount.
``(2) Applicable amount.--For purposes of paragraph (1),
the applicable amount shall be determined as follows:
``In the case of any taxable year The applicable amount is--
beginning in--
2002.......................................... $600
2003.......................................... 700
2004.......................................... 800
2005.......................................... 900
2006 or thereafter............................ 1,000.''.
(b) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Section 24(b) of the Internal Revenue Code
of 1986 (relating to limitation based on adjusted gross income)
is amended by adding at the end the following new paragraph:
``(3) Limitation based on amount of tax.--The credit
allowed under subsection (a) for any taxable year shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section) and section 27 for
the taxable year.''.
(2) Conforming amendments.--
(A) Section 24(d) of such Code is amended--
(i) by striking ``section 26(a)'' each
place it appears and inserting ``subsection
(b)(3)'', and
(ii) in paragraph (1)(B) by striking
``aggregate amount of credits allowed by this
subpart'' and inserting ``amount of credit
allowed by this section''.
(B) Paragraph (1) of section 26(a) of such Code is
amended by inserting ``(other than section 24)'' after
``this subpart''.
(C) Subsection (c) of section 23 is amended by
striking ``and section 1400C'' and inserting ``and
sections 24 and 1400C''.
(D) Subparagraph (C) of section 25(e)(1) is amended
by inserting ``, 24,'' after ``sections 23''.
(E) Section 904(h) of such Code is amended by
inserting ``(other than section 24)'' after
``chapter''.
(F) Subsection (d) of section 1400C is amended by
inserting ``and section 24'' after ``this section''.
(G) The heading for section 24(b) of such Code is
amended to read as follows: ``Limitations.--''.
(H) The heading for section 24(b)(1) of such Code
is amended to read as follows: ``Limitation based on
adjusted gross income.--''.
(c) Portion of Child Credit Treated as Refundable.--
(1) In general.--Paragraph (1) of section 24(d) of the
Internal Revenue Code of 1986 (relating to additional credit
for families with 3 or more children), as amended by subsection
(b)(2)(A), is amended to read as follows:
``(1) In general.--The aggregate credits allowed to a
taxpayer under subpart C shall be increased by the sum of the
credits allowable under this section for all qualifying
children of the taxpayer (determined without regard to this
subsection and the limitation under subsection (b)(3)). The
amount of the credit allowed under this subsection shall not be treated
as a credit allowed under this subpart and shall reduce the amount of
credit otherwise allowable under subsection (a) without regard to
subsection (b)(3).''.
(2) Conforming amendments.--
(A) Section 24(d) of such Code is amended by
striking paragraphs (2) and (3).
(B) The heading for section 24(d) of such Code is
amended to read as follows: ``Additional Credit for
Certain Families.--''.
(C) Section 32 of such Code is amended by striking
subsection (m).
(d) Coordination With Federal Means-Tested Programs.--Section 24(d)
of the Internal Revenue Code of 1986 (relating to additional credit for
certain families), as amended by subsection (c), is amended by adding
at the end the following new paragraph:
``(2) Coordination with means-tested programs.--For
purposes of any benefits, assistance, or supportive services
under any Federal program or under any State or local program
financed, in whole or in part, with Federal funds or with State
funds, taken into account under any maintenance of effort
requirements, which imposes income limitations on eligibility
for such program, any refund made to an individual (or the
spouse of an individual) by reason of this subsection shall not
be treated as income (and shall not be taken into account in
determining resources for the month of its receipt and the
following month).''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
Subtitle B--Strengthening the Earned Income Tax Credit
SEC. 4101. SHORT TITLE.
This subtitle may be cited as the ``Tax Relief for Working Families
Act of 2001''.
SEC. 4102. INCREASED EARNED INCOME TAX CREDIT FOR 2 OR MORE QUALIFYING
CHILDREN.
(a) In General.--The table in section 32(b)(1)(A) of the Internal
Revenue Code of 1986 (relating to percentages) is amended--
(1) in the second item--
(A) by striking ``or more'', and
(B) by striking ``21.06'' and inserting ``19.06'',
and
(2) by inserting after the second item the following:
``3 or more qualifying children.... 45.................................. 19.06''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 4103. SIMPLIFICATION OF DEFINITION OF EARNED INCOME.
(a) In General.--Section 32(c)(2)(A)(i) of the Internal Revenue
Code of 1986 (defining earned income) is amended by inserting ``, but
only if such amounts are includible in gross income for the taxable
year'' after ``other employee compensation''.
(b) Conforming Amendment.--Section 32(c)(2)(B) of the Internal
Revenue Code of 1986 (defining earned income) is amended by striking
``and'' at the end of clause (iv), by striking the period at the end of
clause (v) and inserting ``, and'', and by adding at the end the
following:
``(vi) the requirement under subparagraph
(A)(i) that an amount be includible in gross
income shall not apply if such amount is exempt
from tax under section 7873 or is derived
directly from restricted and allotted land
under the Act of February 8, 1887 (commonly
known as the Indian General Allotment Act) (25
U.S.C. 331 et seq.) or from land held under
Acts or treaties containing an exception
provision similar to the Indian General
Allotment Act.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts received in taxable years beginning after December 31,
2001.
SEC. 4104. SIMPLIFICATION OF DEFINITION OF CHILD DEPENDENT.
(a) Removal of Support Test for Certain Individuals.--Section
152(a) of the Internal Revenue Code of 1986 (relating to general
definition) is amended to read as follows:
``(a) General Definition.--For purposes of this subtitle--
``(1) Dependent.--The term `dependent' means--
``(A) any individual described in paragraph (2)
over half of whose support, for the calendar year in
which the taxable year of the taxpayer begins, was
received from the taxpayer (or is treated under
subsection (c) as received from the taxpayer), or
``(B) any individual described in subsection (f).
``(2) Individuals.--An individual is described in this
paragraph if such individual is--
``(A) a brother, sister, stepbrother, or stepsister
of the taxpayer,
``(B) the father or mother of the taxpayer, or an
ancestor of either,
``(C) a stepfather or stepmother of the taxpayer,
``(D) a son or daughter of a brother or sister of
the taxpayer,
``(E) a brother or sister of the father or mother
of the taxpayer,
``(F) a son-in-law, daughter-in-law, father-in-law,
mother-in-law, brother-in-law, or sister-in-law of the
taxpayer, or
``(G) an individual (other than an individual who
at any time during the taxable year was the spouse,
determined without regard to section 7703, of the
taxpayer) who, for the taxable year of the taxpayer,
has as their principal place of abode the home of the
taxpayer and is a member of the taxpayer's
household.''.
(b) Other Modifications.--Section 152 of the Internal Revenue Code
of 1986 (relating to dependent defined) is amended by adding at the end
the following:
``(f) Subsection (f) Dependents.--
``(1) In general.--An individual is described in this
subsection for the taxable year if such individual--
``(A) bears a relationship to the taxpayer
described in paragraph (2),
``(B) except in the case of an eligible foster
child or as provided in subsection (e), has the same
principal place of abode as the taxpayer for more than
one-half of such taxable year, and
``(C)(i) has not attained the age of 19 at the
close of the calendar year in which the taxable year
begins, or
``(ii) is a student (within the meaning of section
151(c)(4)) who has not attained the age of 24 at the
close of such calendar year.
``(2) Relationship test.--An individual bears a
relationship to the taxpayer described in this paragraph if
such individual is--
``(A) a son or daughter of the taxpayer, or a
descendant of either, or
``(B) a stepson or stepdaughter of the taxpayer.
``(3) Special rules.--
``(A) 2 or more claiming dependent.--Except as
provided in subparagraph (B), if an individual may be
claimed as a dependent by 2 or more taxpayers (but for
this subparagraph) for a taxable year beginning in the
same calendar year, only the taxpayer with the highest
adjusted gross income for such taxable year shall be
allowed the deduction with respect to such individual.
``(B) Release of claim to exemption.--Subparagraph
(A) shall not apply with respect to an individual if--
``(i) the taxpayer with the highest
adjusted gross income under subparagraph (A),
for any calendar year signs a written
declaration (in such manner and form as the
Secretary may by regulations prescribe) that
such taxpayer will not claim such individual as
a dependent for any taxable year beginning in
such calendar year,
``(ii) the other taxpayer provides over
half of such individual's support for the
calendar year in which the taxable year of such
other taxpayer begins, and
``(iii) such other taxpayer attaches such
written declaration to such taxpayer's return
for the taxable year beginning during such
calendar year.''.
(c) Rules Relating to Foster Child.--Section 152(b)(2) of the
Internal Revenue Code of 1986 (relating to rules relating to general
definition) is amended by striking ``a foster child'' and all that
follows through ``individual)'' and inserting ``an eligible foster
child (as defined in section 32(c)(3)(B)(iii)) of an individual''.
(d) Exemption From Gross Income Test.--Section 151(c)(3) of the
Internal Revenue Code of 1986 (relating to definition of child) is
amended by striking ``or stepdaughter'' and inserting ``stepdaughter,
or a descendant of such individual''.
(e) Waiver of Deduction for Divorced Parents.--
(1) In general.--So much of section 152(e) as precedes
paragraph (4) of the Internal Revenue Code of 1986 (relating to
support test in case of child of divorced parents, etc.) is
amended to read as follows:
``(e) Special Rules for Child of Divorced Parents.--
``(1) Release of claim to exemption.--In the case of a
child (as defined in section 151(c)(3)) of parents--
``(A) who are divorced or legally separated under a
decree of divorce or separate maintenance,
``(B) who are separated under a written separation
agreement, or
``(C) who live apart at all times during the last 6
months of the calendar year,
the custodial parent who is entitled to the deduction under
section 151 for a taxable year with respect to such child may
release such deduction to the noncustodial parent.
``(2) Procedure.--The noncustodial parent may claim a child
described in paragraph (1) as a dependent for the taxable year
if--
``(A) the custodial parent signs a written
declaration (in such manner and form as the Secretary
may by regulations prescribe) that such custodial
parent will not claim such child as a dependent for any
taxable year beginning in such calendar year,
``(B) the custodial parent and the noncustodial
parent provide over half of such child's support for
the calendar year in which the taxable years of such
parents begin, and
``(C) the noncustodial parent attaches such written
declaration to such noncustodial parent's return for
the taxable year beginning during such calendar year.
``(3) Definitions.--For purposes of this subsection--
``(A) Custodial parent.--The term `custodial
parent' means, with regard to an individual, a parent
who has custody of such individual for a greater
portion of the calendar year than the noncustodial
parent.
``(B) Noncustodial parent.--The term `noncustodial
parent' means the parent who is not the custodial
parent.''.
(2) Pre-1985 instruments.--Section 152(e)(4)(A) of such
Code (relating to exception for certain pre-1985 instruments)
is amended by striking ``A child'' and all that follows through
``noncustodial parent'' and inserting ``A noncustodial parent
described in paragraph (1) shall be entitled to the deduction
under section 151 for a taxable year with respect to a child if''.
(f) Conforming Amendments.--
(1) Section 1(g)(5)(A) of the Internal Revenue Code of 1986
is amended by inserting ``as in effect on the day before the
date of the enactment of the Tax Relief for Working Families
Act of 2001'' after ``152(e)''.
(2) Section 2(b)(1)(A)(i) of such Code is amended by
striking ``paragraph (2) or (4) of''.
(3) Section 2(b)(3)(B)(i) of such Code is amended by
striking ``paragraph (9)'' and inserting ``paragraph (2)(G)''.
(4) Section 21(e)(5)(A) of such Code is amended by striking
``paragraph (2) or (4) of''.
(5) Section 21(e)(5) of such Code is amended in the matter
following subclause (B) by inserting ``as in effect on the day
before the date of the enactment of the Tax Relief for Working
Families Act of 2001'' after ``152(e)(1)''.
(6) Section 32(c)(1)(G) of such Code is amended by striking
``(3)(D).'' and inserting ``(1)(C). An individual whose
qualifying child or qualifying children are not taken into
account under subsection (b) solely by reason of paragraph
(3)(D) shall be treated as an eligible individual if such
individual otherwise meets the requirements of subparagraph
(A)(ii).''.
(7) Section 32(c)(3)(B)(ii) of such Code is amended by
striking ``paragraph (2) or (4) of''.
(8) Section 51(i)(1)(C) of such Code is amended by striking
``152(a)(9)'' and inserting ``152(a)(2)(G)''.
(9) Section 152(b) of such Code is amended by striking
``specified in subsection (a)'' and inserting ``specified in
subsection (a)(2) or (f)(2)''.
(10) Section 152(c) of such Code is amended by striking
``(a)'' and inserting ``(a)(1)''.
(11) Section 7703(b)(1) of such Code is amended by striking
``paragraph (2) or (4) of''.
(12) The following provisions of such Code are each amended
by striking ``paragraphs (1) through (8) of section 152(a)''
and inserting ``subparagraphs (A) through (F) of subsection
(a)(2) or subsection (f)(2) of section 152'':
(A) Section 170(g)(3).
(B) Subparagraphs (A) and (B) of section 51(i)(1).
(C) The second sentence of section 213(d)(11).
(D) Section 529(e)(2)(B).
(E) Section 7702B(f)(2)(C)(iii).
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 4105. OTHER MODIFICATIONS TO EARNED INCOME TAX CREDIT.
(a) Modification of Joint Return Requirement.--Section 32(d) of the
Internal Revenue Code of 1986 (relating to married individuals) is
amended to read as follows:
``(d) Married Individuals.--
``(1) In general.--If the taxpayer is married at the close
of the taxable year, the credit shall be allowed under
subsection (a) only if the taxpayer and his spouse file a joint
return for the taxable year.
``(2) Marital status.--For purposes of paragraph (1), an
individual legally separated from his spouse under a decree of
divorce or of separate maintenance shall not be considered as
married.
``(3) Certain married individuals living apart.--For
purposes of paragraph (1), if--
``(A) an individual--
``(i) is married and files a separate
return, and
``(ii) has a qualifying child who is a son,
daughter, stepson, or stepdaughter of such
individual, and
``(B) during the last 6 months of such taxable
year, such individual and such individual's spouse do
not have the same principal place of abode,
such individual shall not be considered as married.''.
(b) Modification of Rule Where There Are 2 or More Eligible
Individuals.--Subparagraph (C) of section 32(c)(1) of the Internal
Revenue Code of 1986 (relating to 2 or more eligible individuals) is
amended to read as follows:
``(C) 2 or more eligible individuals.--
``(i) In general.--Except as provided in
clause (ii), if 2 or more individuals would
(but for this subparagraph and after
application of subparagraph (B)) be treated as
eligible individuals with respect to the same
qualifying child for taxable years beginning in
the same calendar year, only the individual
with the highest modified adjusted gross income
for such taxable years shall be treated as an
eligible individual with respect to such
qualifying child.
``(ii) Exception for certain parents.--An
otherwise eligible individual who is not
treated under clause (i) as the only eligible
individual with respect to any qualifying child
shall be treated as an eligible individual with
respect to such child if--
``(I) such child is the son,
daughter, stepson, or stepdaughter of
such individual,
``(II) such child is not taken into
account under subsection (b) by any
other individual, and
``(III) the limitation under
subsection (a)(2) for the individual
who would (but for this clause) be
treated under clause (i) as the only
eligible individual with respect to
such child would be greater than zero
(determined as if such individual had 2
qualifying children).''.
(c) Expansion of Mathematical Error Authority.--Paragraph (2) of
section 6213(g) of the Internal Revenue Code of 1986 (relating to
definitions) is amended by striking ``and'' at the end of subparagraph
(K), by striking the period at the end of subparagraph (L) and
inserting ``, and'', and by inserting after subparagraph (L) the
following new subparagraph:
``(M) the entry on the return claiming the credit
under section 32 with respect to a child if, according
to the Federal Case Registry of Child Support Orders
established under section 453(h) of the Social Security
Act, the taxpayer is a noncustodial parent of such
child.''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2000.
(2) Expansion of mathematical error authority.--The
amendment made by subsection (c) shall apply to taxable years
beginning after December 31, 2001.
Subtitle C--Marriage Penalty Relief
SEC. 4201. MARRIAGE PENALTY RELIEF FOR EARNED INCOME CREDIT.
(a) In General.--Paragraph (2) of section 32(b) of the Internal
Revenue Code of 1986 (relating to percentages and amounts) is amended--
(1) by striking ``Amounts.--The earned'' and inserting
``Amounts.--
``(A) In general.--Subject to subparagraph (B), the
earned''; and
(2) by adding at the end the following new subparagraph:
``(B) Joint returns.--In the case of a joint
return, the earned income amount determined under
subparagraph (A) shall be 120 percent of the otherwise
applicable amount. If any amount determined under the
preceding sentence is not a multiple of $10, such
amount shall be rounded to the nearest multiple of
$10.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
Subtitle D--Expanding the Dependent Care Tax Credit
SEC. 4301. DEPENDENT CARE TAX CREDIT.
(a) Dependent Care Services.--Subpart C of part IV of subchapter A
of chapter 1 of the Internal Revenue Code of 1986 (relating to
refundable credits), as amended by section 4001(b)(1), is amended by
redesignating section 36 as section 37 and by inserting after section
35 the following new section:
``SEC. 36. DEPENDENT CARE SERVICES.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual who
maintains a household which includes as a member 1 or more
qualifying individuals, there shall be allowed as a credit
against the tax imposed by this subtitle for the taxable year
an amount equal to the applicable percentage of the sum of--
``(A) the employment-related expenses paid by such
individual during the taxable year, plus
``(B) the respite care expenses paid by such
individual during the taxable year.
``(2) Applicable percentage defined.--
``(A) In general.--For purposes of paragraph (1),
the term `applicable percentage' means 50 percent
reduced (but not below 20 percent) by 1 percentage
point for each full $1,000 amount by which the
taxpayer's adjusted gross income for the taxable year
exceeds $15,000.
``(B) Cost-of-living adjustment.--
``(i) In general.--In the case of a taxable
year beginning in a calendar year after 2001,
subparagraph (A) shall be applied by increasing
the $15,000 amount contained therein by the
cost-of-living adjustment (as defined in
section 1(f)(3)) for such calendar year
determined by substituting `2000' for `1992' in
subparagraph (B) of section 1(f)(3).
``(ii) Rounding.--If any increase
determined under clause (i) is not a multiple
of $10, such increase shall be rounded to the
nearest multiple of $10 (or if such increase is
a multiple of $5, such increase shall be
increased to the next highest multiple of $10).
``(b) Employment-Related Expenses.--For purposes of this section--
``(1) Determination of eligible expenses.--
``(A) In general.--The term `employment-related
expenses' means amounts paid for the following
expenses, but only if such expenses are incurred to
enable the taxpayer to be gainfully employed for any
period for which there are 1 or more qualifying
individuals with respect to the taxpayer:
``(i) expenses for household services, and
``(ii) expenses for the care of a
qualifying individual.
Such term shall not include any amount paid for
services outside the taxpayer's household at a camp
where the qualifying individual stays overnight and
shall not include any respite care expense taken into
account under subsection (a).
``(B) Exception.--Employment-related expenses
described in subparagraph (A) which are incurred for
services outside the taxpayer's household shall be
taken into account only if incurred for the care of--
``(i) a qualifying individual described in
subsection (d)(1), or
``(ii) a qualifying individual (not
described in subsection (d)(1)) who regularly
spends at least 8 hours each day in the
taxpayer's household.
``(C) Dependent care centers.--Employment-related
expenses described in subparagraph (A) which are
incurred for services provided outside the taxpayer's
household by a dependent care center (as defined in
subparagraph (D)) shall be taken into account only if--
``(i) such center complies with all
applicable laws and regulations of a State or
unit of local government, and
``(ii) the requirements of subparagraph (B)
are met.
``(D) Dependent care center defined.--For purposes
of this paragraph, the term `dependent care center'
means any facility which--
``(i) provides care for more than 6
individuals (other than individuals who reside
at the facility), and
``(ii) receives a fee, payment, or grant
for providing services for any of the
individuals (regardless of whether such
facility is operated for profit).
``(2) Dollar limit on amount creditable.--
``(A) In general.--The amount of the employment-
related expenses incurred during any taxable year which
may be taken into account under subsection (a) shall
not exceed--
``(i) $2,400 if there is 1 qualifying
individual with respect to the taxpayer for
such taxable year, or
``(ii) $4,800 if there are 2 or more
qualifying individuals with respect to the
taxpayer for such taxable year.
The amount determined under clause (i) or (ii)
(whichever is applicable) shall be reduced by the
aggregate amount excludable from gross income under
section 129 for the taxable year.
``(B) Reduction in limit for amount of respite care
expenses.--The limitation of subparagraph (A) shall be
reduced by the amount of the respite care expenses
taken into account by the taxpayer under subsection (a)
for the taxable year.
``(3) Earned income limitation.--
``(A) In general.--Except as otherwise provided in
this paragraph, the amount of the employment-related
expenses incurred during any taxable year which may be
taken into account under subsection (a) shall not
exceed--
``(i) in the case of an individual who is
not married at the close of such year, such
individual's earned income for such year, or
``(ii) in the case of an individual who is
married at the close of such year, the lesser
of such individual's earned income or the
earned income of his spouse for such year.
``(B) Special rule for spouse who is a student or
incapable of caring for himself.--In the case of a
spouse who is a student or a qualified individual
described in subsection (d)(3), for purposes of
subparagraph (A), such spouse shall be deemed for each
month during which such spouse is a full-time student
at an educational institution, or is such a qualifying
individual, to be gainfully employed and to have earned
income of not less than--
``(i) $200 if paragraph (2)(A)(i) applies
for the taxable year, or
``(ii) $400 if paragraph (2)(A)(ii) applies
for the taxable year.
In the case of any husband and wife, this subparagraph
shall apply with respect to only one spouse for any one
month.
``(c) Respite Care Expenses.--For purposes of this section--
``(1) In general.--The term `respite care expenses' means
expenses paid (whether or not to enable the taxpayer to be
gainfully employed) for--
``(A) the care of a qualifying individual--
``(i) who has attained the age of 13, or
``(ii) who is under the age of 13 but has a
physical or mental impairment which results in
the individual being incapable of caring for
himself,
during any period when such individual regularly spends
at least 8 hours each day in the taxpayer's household,
or
``(B) the care (for not more than 14 days during
the calendar year) of a qualifying individual described
in subparagraph (A) during any period during which the
individual does not regularly spend at least 8 hours
each day in the taxpayer's household.
``(2) Dollar limit.--The amount of the respite care
expenses incurred during any taxable year which may be taken
into account under subsection (a) shall not exceed--
``(A) $1,200 if such expenses are incurred with
respect to only 1 qualifying individual for the taxable
year, or
``(B) $2,400 if such expenses are incurred for 2 or
more qualifying individuals for such taxable year.
``(d) Qualifying Individual.--For purposes of this section, the
term `qualifying individual' means--
``(1) a dependent of the taxpayer who is under the age of
13 and with respect to whom the taxpayer is entitled to a
deduction under section 151(c),
``(2) a dependent of the taxpayer who is physically or
mentally incapable of caring for himself, or
``(3) the spouse of the taxpayer, if he is physically or
mentally incapable of caring for himself.
``(e) Special Rules.--For purposes of this section--
``(1) Maintaining household.--An individual shall be
treated as maintaining a household for any period only if over
half the cost of maintaining the household for such period is
furnished by such individual (or, if such individual is married
during such period, is furnished by such individual and his
spouse).
``(2) Married couples must file joint return.--If the
taxpayer is married at the close of the taxable year, the
credit shall be allowed under subsection (a) only if the
taxpayer and his spouse file a joint return for the taxable
year.
``(3) Marital status.--An individual legally separated from
his spouse under a decree of divorce or of separate maintenance
shall not be considered as married.
``(4) Certain married individuals living apart.--If--
``(A) an individual who is married and who files a
separate return--
``(i) maintains as his home a household
that constitutes for more than one-half of the
taxable year the principal place of abode of a
qualifying individual, and
``(ii) furnishes over half the cost of
maintaining such household during the taxable
year, and
``(B) during the last 6 months of such taxable year
such individual's spouse is not a member of such
household,
such individual shall not be considered as married.
``(5) Special dependency test in case of divorced parents,
etc.--If--
``(A) paragraph (2) or (4) of section 152(e)
applies to any child with respect to any calendar year,
and
``(B) such child is under the age of 13 or is
physically or mentally incapable of caring for himself,
in the case of any taxable year beginning in such calendar
year, such child shall be treated as a qualifying individual
with respect to the custodial parent (within the meaning of
section 152(e)(1)), and shall not be treated as a qualifying
individual with respect to the noncustodial parent.
``(6) Payments to related individuals.--No credit shall be
allowed under subsection (a) for any amount paid by the
taxpayer to an individual--
``(A) with respect to whom, for the taxable year, a
deduction under section 151(c) (relating to deduction
for personal exemptions for dependents) is allowable
either to the taxpayer or his spouse, or
``(B) who is a child of the taxpayer (within the
meaning of section 151(c)(3)) who has not attained the
age of 19 at the close of the taxable year.
For purposes of this paragraph, the term `taxable year' means
the taxable year of the taxpayer in which the service is
performed.
``(7) Student.--The term `student' means an individual who
during each of 5 calendar months during the taxable year is a
full-time student at an educational organization.
``(8) Educational organization.--The term `educational
organization' means an educational organization described in
section 170(b)(1)(A)(ii).
``(9) Identifying information required with respect to
service provider.--No credit shall be allowed under subsection
(a) for any amount paid to any person unless--
``(A) the name, address, and taxpayer
identification number of such person are included on
the return claiming the credit, or
``(B) if such person is an organization described
in section 501(c)(3) and exempt from tax under section
501(a), the name and address of such person are
included on the return claiming the credit.
In the case of a failure to provide the information required
under the preceding sentence, the preceding sentence shall not
apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information so required.
``(f) Regulations.--The Secretary shall prescribe such regulations
as may be necessary to carry out the purposes of this section.''.
(b) Conforming Amendments.--
(1) Section 21 of such Code is repealed.
(2) Section 23(f)(1) of such Code and section 129(a)(2)(C)
of such Code are each amended by striking ``section 21(e)'' and
inserting ``section 36(e)''.
(3) Section 129(b)(2) of such Code is amended by striking
``section 21(d)(2)'' and inserting ``section 36(b)(3)(B)''.
(4) Section 129(e)(1) of such Code is amended by striking
``under section 21(b)(2) (relating to expenses for household
and dependent care services necessary for gainful employment)''
and inserting ``or respite care services under section 36
(relating to dependent care services)''.
(5) Section 213(e) of such Code is amended by striking
``section 21'' and inserting ``section 36''.
(6) Section 6213(g)(2)(H) of such Code is amended by
striking ``section 21 (related to expenses for household and
dependent care services necessary for gainful employment)'' and
inserting ``section 36 (relating to dependent care services)''.
(c) Technical Amendments.--(1) The table of sections for subpart C
of part IV of subchapter A of chapter 1 of such Code is amended by
striking the item relating to section 36 and inserting the following:
``Sec. 36. Dependent care services.
``Sec. 37. Overpayments of tax.''.
(2) The table of sections for subpart A of such part IV is amended
by striking the item relating to section 21.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
TITLE V--FAIR START--SUPPORT TO PROMOTE WORK AND REDUCE POVERTY
Subtitle A--Gateways Grant Program
SEC. 5001. GATEWAYS GRANT PROGRAM.
(a) Purposes.--The purposes of this section are to--
(1) inform low-income families with children about programs
available to families leaving welfare and other programs to
support low-income families with children;
(2) provide incentives to States and counties to improve
and coordinate application and renewal procedures for low-
income family with children support programs; and
(3) track the extent to which low-income families with
children receive the benefits and services for which they are
eligible.
(b) Definitions.--In this section:
(1) Locality.--The term locality means a municipality that
does not administer a temporary assistance for needy families
program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) (in this section referred to as
``TANF'').
(2) Low-income family with children support program.--The
term ``low-income family with children support program'' means
a program designed to provide low-income families with
assistance or benefits to enable the family to become self-
sufficient and includes--
(A) TANF;
(B) the food stamp program established under the
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) (in this
section referred to as ``food stamps'');
(C) the medicaid program funded under title XIX of
the Social Security Act (42 U.S.C. 1396 et seq.);
(D) the State children's health insurance program
(SCHIP) funded under title XXI of the Social Security
Act (42 U.S.C. 1397aa et seq.);
(E) the child care program funded under the Child
Care Development Block Grant Act of 1990 (42 U.S.C.
9858 et seq.);
(F) the child support program funded under part D
of title IV of the Social Security Act (42 U.S.C. 651
et seq.);
(G) the earned income tax credit under section 32
of the Internal Revenue Code of 1986;
(H) the low-income home energy assistance program
(LIHEAP) established under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C 8621 et seq.);
(I) the special supplemental nutrition program for
women, infants, and children (WIC) established under
section 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786);
(J) programs under the Workforce Investment Act of
1998 (29 U.S.C. 2801 et seq.); and
(K) any other Federal or State funded program
designed to provide family and work support to low-
income families with children.
(3) Nonprofit.--The term ``nonprofit'', as applied to a
school, agency, organization, or institution means a school,
agency, organization, or institution owned and operated by 1 or
more nonprofit corporations or associations, no part of the net
earnings of which inures, or may lawfully inure, to the benefit
of any private shareholder or individual.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(5) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, American Samoa, Guam, and the
United States Virgin Islands.
(c) Authorization of Grants.--
(1) States and counties.--
(A) In general.--The Secretary is authorized to
award grants to States and counties to pay the Federal
share of the costs involved in improving the
administration of low-income family with children
support programs, including simplifying application,
recertification, reporting, and verification rules.
(B) Federal share.--The Federal share shall be 80
percent.
(2) Nonprofits and localities.--The Secretary is authorized
to award grants to nonprofits and localities to distribute
information about and develop service centers for low-income
family with children support programs.
(d) Grant Approval Criteria.--
(1) In general.--The Secretary, in consultation with the
Secretary of Agriculture, shall establish criteria for approval
of an application for a grant under this section that include
consideration of--
(A) an applicant's record of serving low-income
populations;
(B) an applicant's ability to reach hard-to-serve
populations;
(C) the level of innovation in the applicant's
grant proposal; and
(D) any partnerships between the public and private
sector in the applicant's grant proposal.
(2) Separate criteria.--Separate criteria shall be
established for the grants authorized under paragraphs (1) and
(2) of subsection (c).
(e) Uses of Funds.--
(1) States and counties.--
(A) Improvements in programs.--Grants awarded to
States and counties under subsection (c)(1) shall be
used to--
(i) simplify low-income family with
children support program application,
recertification, reporting, and verification
rules;
(ii) create uniformity in eligibility
criteria for low-income family with children
support programs;
(iii) develop options for families to apply
for low-income family with children support
programs through the telephone, mail,
facsimile, Internet, or electronic mail, and
submit any recertifications or reports required
for such families through these options;
(iv) co-locate eligibility workers for
various low-income family with children support
programs at strategically located sites; and
(v) develop or enhance one-stop service
centers for low-income family with children
support programs, including establishing
evening and weekend hours at these centers.
(B) Customer surveys.--
(i) In general.--A grant awarded to a State
or county under subsection (c)(1) shall be used
to carry out a customer survey.
(ii) Model surveys.--The customer survey
under clause (i) shall be modeled after a form
developed by the Secretary under subsection
(g).
(iii) Reports to secretary.--Not later than
1 year after a State or county is awarded a
grant under subsection (c)(1), and annually
thereafter, the State or county shall submit a
report to the Secretary detailing the results
of the customer survey carried out under clause
(i).
(iv) Reports to public.--A State or county
receiving a grant under subsection (c)(1) and
the Secretary shall make the report required
under clause (iii) available to the public.
(v) Public comment.--A State or county
receiving a grant under subsection (c)(1) shall
accept public comments and hold public hearings
on the report made available under clause (iv).
(C) Tracking systems.--
(i) In general.--A grant awarded to a State
or county under subsection (c)(1) shall be used
to implement a tracking system to determine the
level of participation in low-income family
with children support programs of the eligible
population.
(ii) Reports.--Not later than 1 year after
a State or county is awarded a grant under
subsection (c)(1), and annually thereafter, the
State or county shall submit a report to the
Secretary detailing the effectiveness of the
tracking system implemented under clause (i).
(D) Reporting.--A State or county awarded a grant
under subsection (c)(1) shall adopt the most favorable
options available under Federal law to reduce or
eliminate requirements for low-income families
receiving assistance under TANF or food stamps to
report changes in income, residence, or employment,
including such requirements as they relate to the
determination of State expenditures to meet TANF
maintenance of effort requirements.
(E) In-person interviews.--A State or county
awarded a grant under subsection (c)(1)--
(i) may expend funds made available under
the grant to provide for reporting and
recertification procedures through the
telephone, mail, facsimile, Internet, or
electronic mail; and
(ii) shall adopt the most favorable options
available under Federal law to reduce or
eliminate requirements for in-person interviews
for redeterminations of eligibility for TANF or
food stamps.
(F) Sharing documentation and verification
information.--A grant awarded to a State or county
under subsection (c)(1) shall be used to develop
procedures by which--
(i) a low-income family is relieved of the
requirement to present documentation to
establish eligibility for various low-income
family with children support programs where
information concerning the family's income
exists in State databases and the family is
provided adequate opportunity to review,
correct, and contest such information;
(ii) a low-income family is given the
option to present the same documentation to
establish eligibility for various low-income
family with children support programs; and
(iii) verification of the documentation
presented under clause (ii) is shared among
agencies with responsibility for the
administration of low-income family with
children support programs.
(G) Jurisdiction-wide implementation.--
(i) In general.--A grant awarded to a State
or county under subsection (c)(1) shall be used
for activities throughout the jurisdiction.
(ii) Exception.--A State or county awarded
a grant under subsection (c)(1) may use grant
funds to develop one-stop service centers and
telephone, mail, facsimile, Internet, or
electronic mail application and renewal
procedures for low-income family with children
support programs without regard to the
requirements of clause (i).
(H) Supplement not supplant.--Funds provided to a
State or county under a grant awarded under subsection
(c)(1) shall be used to supplement and not supplant
other State or county public funds expended to provide
support services for low-income families.
(2) Nonprofits and localities.--A grant awarded to a
nonprofit or locality under subsection (c)(2) shall be used
to--
(A) develop one-stop service centers for low-income
family with children support programs in cooperation
with States and counties; and
(B) provide information about and referrals to low-
income family with children support programs through
the dissemination of materials at strategic locations,
including schools, clinics, and shopping locations.
(f) Application.--
(1) In general.--Each applicant desiring a grant under
paragraph (1) or (2) of subsection (c) shall submit an
application to the Secretary at such time, in such manner, and
accompanied by such information as the Secretary may reasonably
require.
(2) States and counties.--
(A) Non-federal share.--Each State or county
applicant shall provide assurances that the applicant
will pay the non-Federal share of the activities for
which a grant is sought.
(B) Certification periods.--
(i) In general.--In order to receive a
grant under subsection (c)(1), each State or
county applicant shall provide assurances that
the applicant will establish certification
periods of at least 1 year for TANF and food
stamps.
(ii) Exception.--The certification period
under clause (i) may be extended to 2 years for
households in which all members of the
household are elderly or disabled.
(C) Partnerships.--Each State or county applicant
shall submit a memorandum of understanding
demonstrating that the applicant has entered into a
partnership to coordinate its efforts under the grant
with the efforts of other State and county agencies
that have responsibility for providing low-income
families with assistance or benefits.
(g) Duties of the Secretary.--
(1) Survey form.--The Secretary, in cooperation with other
relevant agencies, shall develop a customer survey form to
determine whether low-income families--
(A) encounter any impediments in applying for or
renewing their participation in low-income family with
children support programs; and
(B) are unaware of low-income family with children
support programs for which they are eligible.
(2) Reports.--
(A) Annual reports.--Not later than 1 year after
the date of enactment of this Act, and annually
thereafter, the Secretary shall submit a report to
Congress describing the uses of grant funds awarded
under this section.
(B) Results of tracking systems and surveys.--The
Secretary shall submit a report to Congress detailing
the results of the tracking systems implemented and
customer surveys carried out by States and counties
under subsection (e) as the information becomes
available.
(h) Miscellaneous.--
(1) Matching funds.--
(A) In general.--Matching funds required from a
State or county awarded a grant under subsection (c)(1)
may--
(i) include in-kind services and
expenditures by municipalities and private
entities; and
(ii) be considered a qualified State
expenditure for purposes of determining whether
the State has satisfied the maintenance of
effort requirements of the temporary assistance
for needy families program under section
409(a)(7) of the Social Security Act (42 U.S.C.
609(a)(7)).
(B) Conforming amendment.--Section 409(a)(7)(B)(iv)
of the Social Security Act (42 U.S.C. 609(a)(7)(B)(iv))
is amended by striking ``title.'' and inserting
``title, and also includes State funds which are
expended as a condition of receiving Federal funds
under a grant made under section 5001 of the Leave No
Child Behind Act.''.
(2) Limitation on expenditures.--
(A) In general.--Subject to paragraph 3--
(i) not more than 20 percent of a grant
awarded under subsection (c) shall be expended
on customer surveys or tracking systems; and
(ii) except as provided in subparagraph
(B), not more than 15 percent of a grant
awarded under subsection (c) shall be expended
on administrative costs.
(B) Automation exception.--The limitation on
administrative expenditures under subparagraph (A)(ii)
shall not apply to expenditures for the acquisition,
implementation, or maintenance of information
technology, computerization, or other automated data
processing to accomplish the purposes of a grant
awarded under subsection (c).
(3) Reversion of funds.--Any funds not expended by a
grantee within 2 years after awarded a grant shall be available
for redistribution among other grantees in such manner and
amount as the Secretary may determine, unless the Secretary
extends by regulation the 2-year time period to expend funds.
(4) Nonapportionment.--Notwithstanding any other provision
of law, a State, county, locality, or nonprofit awarded a grant
under subsection (c) is not required to apportion the costs of
providing information about low-income family with children
support programs among all low-income family with children
support programs.
(5) Administrative costs of the secretary.--Not more than 5
percent of the funds appropriated to carry out this section
shall be expended on administrative costs of the Secretary.
(i) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $500,000,000 for the period of
fiscal years 2002 through 2006.
Subtitle B--Support From Both Parents
CHAPTER 1--CHILD SUPPORT DISTRIBUTION
SEC. 5101. SHORT TITLE.
This subtitle may be cited as the ``Child Support Distribution Act
of 2001''.
Subchapter A--Distribution of Child Support
SEC. 5111. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF
OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.
(a) Modification of Rule Requiring Assignment of Support Rights as
a Condition of Receiving TANF.--Section 408(a)(3) of the Social
Security Act (42 U.S.C. 608(a)(3)) is amended to read as follows:
``(3) No assistance for families not assigning certain
support rights to the state.--A State to which a grant is made
under section 403 shall require, as a condition of providing
assistance to a family under the State program funded under
this part, that a member of the family assign to the State any
rights the family member may have (on behalf of the family
member or of any other person for whom the family member has
applied for or is receiving such assistance) to support from
any other person, not exceeding the total amount of assistance
so provided to the family, which accrues during the period that
the family receives assistance under the program.''.
(b) Increasing Child Support Payments to Families and Simplifying
Child Support Distribution Rules.--
(1) Distribution rules.--
(A) In general.--Section 457(a) of such Act (42
U.S.C. 657(a)) is amended to read as follows:
``(a) In General.--Subject to subsections (e) and (f), the amounts
collected on behalf of a family as support by a State pursuant to a
plan approved under this part shall be distributed as follows:
``(1) Families receiving assistance.--In the case of a
family receiving assistance from the State, the State shall--
``(A) pay to the Federal Government the Federal
share of the amount collected, subject to paragraph
(3)(A);
``(B) retain, or pay to the family, the State share
of the amount collected, subject to paragraph (3)(B);
and
``(C) pay to the family any remaining amount.
``(2) Families that formerly received assistance.--In the
case of a family that formerly received assistance from the
State:
``(A) Current support.--To the extent that the
amount collected does not exceed the current support
amount, the State shall pay the amount to the family.
``(B) Arrearages.--To the extent that the amount
collected exceeds the current support amount, the
State--
``(i) shall first pay to the family the
excess amount, to the extent necessary to
satisfy support arrearages not assigned
pursuant to section 408(a)(3);
``(ii) if the amount collected exceeds the
amount required to be paid to the family under
clause (i), shall--
``(I) pay to the Federal
Government, the Federal share of the
excess amount described in this clause,
subject to paragraph (3)(A); and
``(II) retain, or pay to the
family, the State share of the excess
amount described in this clause,
subject to paragraph (3)(B); and
``(iii) shall pay to the family any
remaining amount.
``(3) Limitations.--
``(A) Federal reimbursements.--The total of the
amounts paid by the State to the Federal Government
under paragraphs (1) and (2) of this subsection with respect to a
family shall not exceed the Federal share of the amount assigned with
respect to the family pursuant to section 408(a)(3).
``(B) State reimbursements.--The total of the
amounts retained by the State under paragraphs (1) and
(2) of this subsection with respect to a family shall
not exceed the State share of the amount assigned with
respect to the family pursuant to section 408(a)(3).
``(4) Families that never received assistance.--In the case
of any other family, the State shall pay the amount collected
to the family.
``(5) Families under certain agreements.--Notwithstanding
paragraphs (1) through (4), in the case of an amount collected
for a family in accordance with a cooperative agreement under
section 454(33), the State shall distribute the amount
collected pursuant to the terms of the agreement.
``(6) State financing options.--To the extent that the
State share of the amount payable to a family for a month
pursuant to paragraph (2)(B) of this subsection exceeds the
amount that the State estimates (under procedures approved by
the Secretary) would have been payable to the family for the
month pursuant to former section 457(a)(2) (as in effect for
the State immediately before the date this subsection first
applies to the State) if such former section had remained in
effect, the State may elect to use the grant made to the State
under section 403(a) to pay the amount, or to have the payment
considered a qualified State expenditure for purposes of
section 409(a)(7), but not both.
``(7) State option to pass through additional support with
federal financial participation.--
``(A) In general.--Notwithstanding paragraphs (1)
and (2), a State shall not be required to pay to the
Federal Government the Federal share of an amount
collected on behalf of a family that is not a recipient
of assistance under the State program funded under part
A, to the extent that the State pays the amount to the
family.
``(B) Recipients of tanf for less than 5 years.--
``(i) In general.--Notwithstanding
paragraphs (1) and (2), a State shall not be
required to pay to the Federal Government the
Federal share of an amount collected on behalf
of a family that is a recipient of assistance
under the State program funded under part A and
that has received the assistance for not more
than 5 years after the date of enactment of
this paragraph, to the extent that--
``(I) the State pays the amount to
the family; and
``(II) subject to clause (ii), the
amount is disregarded in determining
the amount and type of the assistance
provided to the family.
``(ii) Limitation.--Of the amount
disregarded as described in clause (i)(II), the
maximum amount that may be taken into account
for purposes of clause (i) shall not exceed
$400 per month, except that, in the case of a
family that includes 2 or more children, the
State may elect to increase the maximum amount
to not more than $600 per month.''.
(B) Approval of estimation procedures.--Not later
than October 1, 2001, the Secretary of Health and Human
Services, in consultation with the States (as defined
for purposes of part D of title IV of the Social
Security Act), shall establish the procedures to be
used to make the estimate described in section
457(a)(6) of such Act.
(2) Current support amount defined.--Section 457(c) of such
Act (42 U.S.C. 657(c)) is amended by adding at the end the
following:
``(5) Current support amount.--The term `current support
amount' means, with respect to amounts collected as support on
behalf of a family, the amount designated as the monthly
support obligation of the noncustodial parent in the order
requiring the support.''.
(c) Ban on Recovery of Medicaid Costs for Certain Births.--Section
454 of such Act (42 U.S.C. 654) is amended--
(1) by striking ``and'' at the end of paragraph (32);
(2) by striking the period at the end of paragraph (33) and
inserting ``; and''; and
(3) by inserting after paragraph (33) the following:
``(34) provide that the State shall not use the State
program operated under this part to collect any amount owed to
the State by reason of costs incurred under the State plan
approved under title XIX for the birth of a child for whom
support rights have been assigned pursuant to section
408(a)(3), 471(a)(17), or 1912.''.
(d) State Option To Discontinue Certain Support Assignments.--
Section 457(b) of such Act (42 U.S.C. 657(b)) is amended by striking
``shall'' and inserting ``may''.
(e) Conforming Amendments.--
(1) Section 409(a)(7)(B)(i)(I)(aa) of such Act (42 U.S.C.
609(a)(7)(B)(i)(I)(aa)) is amended by striking ``457(a)(1)(B)''
and inserting ``457(a)(1)''.
(2) Section 404(a) of such Act (42 U.S.C. 604(a)) is
amended--
(A) by striking ``or'' at the end of paragraph (1);
(B) by striking the period at the end of paragraph
(2) and inserting ``; or''; and
(C) by adding at the end the following:
``(3) to fund payment of an amount pursuant to clause (i)
or (ii) of section 457(a)(2)(B), but only to the extent that
the State properly elects under section 457(a)(6) to use the
grant to fund the payment.''.
(3) Section 409(a)(7)(B)(i) of such Act (42 U.S.C.
609(a)(7)(B)(i)) is amended by adding at the end the following:
``(V) Portions of certain child
support payments collected on behalf of
and distributed to families no longer
receiving assistance.--Any amount paid
by a State pursuant to clause (i) or
(ii) of section 457(a)(2)(B), but only
to the extent that the State properly
elects under section 457(a)(6) to have
the payment considered a qualified
State expenditure.''.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on October 1, 2006, and shall apply to payments
under parts A and D of title IV of the Social Security Act for
calendar quarters beginning on or after such date, and without
regard to whether regulations to implement such amendments (in
the case of State programs operated under such part D) are
promulgated by such date.
(2) State option to accelerate effective date.--In
addition, a State may elect to have the amendments made by this
section apply to the State and to amounts collected by the
State, on and after such date as the State may select that is
after the date of enactment of this Act and before October 1,
2006.
Subchapter B--Review and Adjustment of Child Support Orders
SEC. 5116. MANDATORY REVIEW AND MODIFICATION OF CHILD SUPPORT ORDERS
FOR TANF RECIPIENTS.
(a) Review Every 3 Years.--Section 466(a)(10)(A)(i) of the Social
Security Act (42 U.S.C. 666(a)(10)(A)(i)) is amended in the matter
preceding subclause (I)--
(1) by striking ``or,'' and inserting ``or''; and
(2) by striking ``upon the request of the State agency
under the State plan or of either parent,''.
(b) Review Upon Leaving TANF.--
(1) Notice of certain families leaving tanf.--Section
402(a) of such Act (42 U.S.C. 602(a)) is amended by adding at
the end the following:
``(8) Certification that the child support enforcement
program will be provided notice of certain families leaving
tanf program.--A certification by the chief executive officer
of the State that the State has established procedures to
ensure that the State agency administering the child support
enforcement program under the State plan approved under part D
will be provided notice of the impending discontinuation of
assistance to an individual under the State program funded
under this part if the individual has custody of a child whose
other parent is alive and not living at home with the child.''.
(2) Review.--Section 466(a)(10) of such Act (42 U.S.C.
666(a)(10)) is amended--
(A) in the paragraph heading, by striking ``upon
request'';
(B) in subparagraph (C), by striking ``this
paragraph'' and inserting ``subparagraph (A) or (B)'';
and
(C) by adding at the end the following:
``(D) Review upon leaving tanf.--On receipt of a
notice issued pursuant to section 402(a)(8), the State
child support enforcement agency shall--
``(i) examine the case file involved;
``(ii) determine what actions (if any) are
needed to locate any noncustodial parent,
establish paternity or a support order, or
enforce a support order in the case;
``(iii) immediately take the actions; and
``(iv) if there is a support order in the
case which the State has not reviewed during
the 1-year period ending with receipt of the
notice, notwithstanding subparagraph (B),
review and, if appropriate, adjust the order in
accordance with subparagraph (A).''.
Subchapter C--Demonstrations of Expanded Information and Enforcement
SEC. 5121. GUIDELINES FOR INVOLVEMENT OF PUBLIC NON-IV-D CHILD SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT ENFORCEMENT.
(a) In General.--Not later than October 1, 2002, the Secretary, in
consultation with States, local governments, and individuals or
companies knowledgeable about involving public non-IV-D child support
enforcement agencies in child support enforcement, shall develop
recommendations which address the participation of public non-IV-D
child support enforcement agencies in the establishment and enforcement
of child support obligations. The matters addressed by the
recommendations shall include substantive and procedural rules which
should be followed with respect to privacy safeguards, data security,
due process rights, administrative compatibility with Federal and State
automated systems, eligibility requirements (such as registration,
licensing, and posting of bonds) for access to information and use of
enforcement mechanisms, recovery of costs by charging fees, penalties
for violations of the rules, treatment of collections for purposes of
section 458 of such Act, and avoidance of duplication of effort.
(b) Definitions.--In this title:
(1) Child support.--The term ``child support'' has the
meaning given in section 459(i)(2) of the Social Security Act.
(2) Public non-iv-d child support enforcement agency.--The
term ``public non-IV-D child support enforcement agency'' means
an agency, of a political subdivision of a State, which is
principally responsible for the operation of a child support
registry or for the establishment or enforcement of an
obligation to pay child support other than pursuant to the
State plan approved under part D of title IV of such Act, or a
clerk of court office of a political subdivision of a State.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(4) State.--The term ``State'' shall have the meaning given
in section 1101(a)(1) of the Social Security Act for purposes
of part D of title IV of such Act.
SEC. 5122. DEMONSTRATIONS INVOLVING ESTABLISHMENT AND ENFORCEMENT OF
CHILD SUPPORT OBLIGATIONS BY PUBLIC NON-IV-D CHILD
SUPPORT ENFORCEMENT AGENCIES.
(a) Purpose.--The purpose of this section is to determine the
extent to which public non-IV-D child support enforcement agencies may
contribute effectively to the establishment and enforcement of child
support obligations.
(b) Applications.--
(1) Consideration.--The Secretary shall consider all
applications received from States desiring to conduct
demonstration projects under this section.
(2) Preferences.--In considering which applications to
approve under this section, the Secretary shall give preference
to applications submitted by States that had a public non-IV-D
child support enforcement agency as of January 1, 2001.
(3) Approval.--
(A) Timing; limitation on number of projects.--On
July 1, 2003, the Secretary may approve not more than
10 applications for projects providing for the
participation of a public non-IV-D child support
enforcement agency in the establishment and enforcement
of child support obligations, and, if the Secretary
receives at least 5 such applications that meet such
requirements as the Secretary may establish, shall
approve not less than 5 such applications.
(B) Requirements.--The Secretary may not approve an
application for a project unless--
(i) the applicant and the Secretary have
entered into a written agreement which
addresses at a minimum, privacy safeguards,
data security, due process rights, automated
systems, liability, oversight, and fees, and
the applicant has made a commitment to conduct
the project in accordance with the written
agreement and such other requirements as the
Secretary may establish;
(ii) the project includes a research plan
(but such plan shall not be required to use
random assignment) that is focused on assessing
the costs and benefits of the project; and
(iii) the project appears likely to
contribute significantly to the achievement of
the purpose of this title.
(c) Demonstration Authority.--On approval of an application
submitted by a State under this section--
(1) the State agency responsible for administering the
State plan under part D of title IV of the Social Security Act
may, subject to the privacy safeguards of section 454(26) of
such Act, provide to any public non-IV-D child support
enforcement agency participating in the demonstration project
all information in the State Directory of New Hires and any
information obtained through information comparisons under
section 453(j)(3) of such Act about an individual with respect
to whom the public non-IV-D agency is seeking to establish or
enforce a child support obligation, if the public non-IV-D
agency meets such requirements as the State may establish and
has entered into an agreement with the State under which the public
non-IV-D agency has made a binding commitment to carry out
establishment and enforcement activities with respect to the child
support obligation subject to the same data security, privacy
protection, and due process requirements applicable to the State agency
and in accordance with procedures approved by the head of the State
agency;
(2) the State agency may charge and collect fees from any
such public non-IV-D agency to recover costs incurred by the
State agency in providing information and services to the
public non-IV-D agency under the demonstration project;
(3) if a public non-IV-D child support enforcement agency
has agreed to collect past-due support (as defined in section
464(c) of such Act) owed by a named individual, and the State
agency has submitted a notice to the Secretary of the Treasury
pursuant to section 464 of such Act on behalf of the public
non-IV-D agency, then the Secretary of the Treasury shall
consider the State agency to have agreed to collect such
support for purposes of such section 464, and the State agency
may collect from the public non-IV-D agency any fee which the
State is required to pay for the cost of applying the offset
procedure in the case;
(4) for so long as a public non-IV-D child support
enforcement agency is participating in the demonstration
project, the public non-IV-D agency shall be considered part of
the State agency for purposes of section 469A of such Act; and
(5) for so long as a public non-IV-D child support
enforcement agency is participating in the demonstration
project, the public non-IV-D agency shall be considered part of
the State agency for purposes of section 303(e) of such Act but
only with respect to any child support obligation that the
public non-IV-D agency has agreed to collect.
(d) Waiver Authority.--The Secretary may waive or vary the
applicability of any provision of sections 303(e), 454(31), 464,
466(a)(7), 466(a)(17), and 469A of the Social Security Act to the
extent necessary to enable the conduct of demonstration projects under
this section, subject to the preservation of the data security, privacy
protection, and due process requirements of part D of title IV of such
Act.
(e) Federal Audit.--
(1) In general.--The Comptroller General of the United
States shall conduct an audit of the demonstration projects
conducted under this section for the purpose of examining and
evaluating the manner in which information and enforcement
tools are used by the public non-IV-D child support enforcement
agencies participating in the projects.
(2) Report to congress.--
(A) In general.--The Comptroller General of the
United States shall submit to Congress a report on the
audit required by paragraph (1).
(B) Timing.--The report required by subparagraph
(A) shall be so submitted not later than October 1,
2005.
(f) Secretarial Report to Congress.--
(1) In general.--The Secretary shall submit to Congress a
report on the demonstration projects conducted under this
section, which shall include the results of any research or
evaluation conducted pursuant to this title, and shall include
policy recommendations regarding the establishment and
enforcement of child support obligations by the agencies
involved.
(2) Timing.--The report required by paragraph (1) shall be
so submitted not later than October 1, 2006.
SEC. 5123. GAO REPORT TO CONGRESS ON PRIVATE CHILD SUPPORT ENFORCEMENT
AGENCIES.
(a) In General.--Not later than October 1, 2002, the Comptroller
General of the United States shall submit to Congress a report on the
activities of private child support enforcement agencies that shall be
designed to help Congress determine whether the agencies are providing
a needed service in a fair manner using accepted debt collection
practices and at a reasonable fee.
(b) Matters To Be Addressed.--Among the matters addressed by the
report required by subsection (a) shall be the following:
(1) The number of private child support enforcement
agencies.
(2) The types of debt collection activities conducted by
the private agencies.
(3) The fees charged by the private agencies.
(4) The methods used by the private agencies to collect
fees from custodial parents.
(5) The nature and degree of cooperation the private
agencies receive from State agencies responsible for
administering State plans under part D of title IV of the
Social Security Act.
(6) The extent to which the conduct of the private agencies
is subject to Federal or State regulation, and if so, the
extent to which the regulations are effectively enforced.
(7) The amount of child support owed but uncollected and
changes in this amount in recent years.
(8) The average period of time required for the completion
of successful enforcement actions yielding collections of past-
due child support by both the child support enforcement
programs operated pursuant to State plans approved under part D
of title IV of the Social Security Act and, to the extent
known, by private child support enforcement agencies.
(9) The types of Federal and State child support
enforcement remedies and resources currently available to
private child support enforcement agencies, and the types of
such remedies and resources now restricted to use by State
agencies administering State plans referred to in paragraph
(8).
(c) Private Child Support Enforcement Agency Defined.--In this
section, the term ``private child support enforcement agency'' means a
person or any other nonpublic entity which seeks to establish or
enforce an obligation to pay child support (as defined in section
459(i)(2) of the Social Security Act).
SEC. 5124. EFFECTIVE DATE.
This title shall take effect on the date of enactment of this Act.
Subchapter D--Expanded Enforcement
SEC. 5126. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING
PASSPORT DENIAL.
Section 452(k) of the Social Security Act (42 U.S.C. 652(k)) is
amended by striking ``$5,000'' and inserting ``$2,500''.
SEC. 5127. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE
CHILD SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.
Section 464 of the Social Security Act (42 U.S.C. 664) is amended--
(1) in subsection (a)(2)(A), by striking ``(as that term is
defined for purposes of this paragraph under subsection (c))'';
and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``(1) Except as provided in
paragraph (2), as used in'' and inserting
``In''; and
(ii) by inserting ``(whether or not a
minor)'' after ``a child'' each place it
appears; and
(B) by striking paragraphs (2) and (3).
SEC. 5128. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT
OBLIGATIONS.
Section 459(h) of the Social Security Act (42 U.S.C. 659(h)) is
amended--
(1) in paragraph (1)(A)(ii)(V), by striking all that
follows ``Armed Forces'' and inserting a semicolon; and
(2) by adding at the end the following:
``(3) Limitations with respect to compensation paid to
veterans for service-connected disabilities.--Notwithstanding
any other provision of this section:
``(A) Compensation described in paragraph
(1)(A)(ii)(V) shall not be subject to withholding
pursuant to this section--
``(i) for payment of alimony; or
``(ii) for payment of child support if the
individual is fewer than 60 days in arrears in
payment of the support.
``(B) Not more than 50 percent of any payment of
compensation described in paragraph (1)(A)(ii)(V) may
be withheld pursuant to this section.''.
Subchapter E--Miscellaneous
SEC. 5131. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.
Not later than 6 months after the date of enactment of this Act,
the Secretary of Health and Human Services shall submit to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on the procedures that the
States use generally to locate custodial parents for whom child support
has been collected but not yet distributed due to a change in address.
The report shall include an estimate of the total amount of such
undistributed child support and the average length of time it takes for
such child support to be distributed. The Secretary shall include in
the report recommendations as to whether additional procedures should
be established at the Federal or State level to expedite the payment of
undistributed child support.
SEC. 5132. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF
UNEMPLOYMENT COMPENSATION PROGRAMS.
(a) In General.--Section 453(j) of the Social Security Act (42
U.S.C. 653(j)) is amended by adding at the end the following:
``(7) Information comparisons and disclosure to assist in
administration of unemployment compensation programs.--
``(A) In general.--If a State agency responsible
for the administration of an unemployment compensation
program under Federal or State law transmits to the
Secretary the name and social security account number
of an individual, the Secretary shall, if the
information in the National Directory of New Hires
indicates that the individual may be employed, disclose
to the State agency the name, address, and employer
identification number of any putative employer of the
individual, subject to this paragraph.
``(B) Condition on disclosure.--The Secretary shall
make a disclosure under subparagraph (A) only to the
extent that the Secretary determines that the
disclosure would not interfere with the effective
operation of the program under this part.
``(C) Use of information.--A State agency may use
information provided under this paragraph only for
purposes of administering a program referred to in
subparagraph (A).''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 2001.
SEC. 5133. IMMIGRATION PROVISIONS.
(a) Nonimmigrant Aliens Ineligible To Receive Visas and Excluded
From Admission for Nonpayment of Child Support.--
(1) In general.--Section 212(a)(10) of the Immigration and
Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding at
the end the following:
``(F) Nonpayment of child support.--
``(i) In general.--Any nonimmigrant alien
is inadmissible who is legally obligated under
a judgment, decree, or order to pay child
support (as defined in section 459(i) of the
Social Security Act), and whose failure to pay
such child support has resulted in an arrearage
exceeding $2,500, until child support payments
under the judgment, decree, or order are
satisfied or the nonimmigrant alien is in
compliance with an approved payment agreement.
``(ii) Waiver authorized.--The Attorney
General may waive the application of clause (i)
in the case of an alien, if the Attorney General--
``(I) has received a request for
the waiver from the court or
administrative agency having
jurisdiction over the judgment, decree,
or order obligating the alien to pay
child support that is referred to in
such clause; or
``(II) determines that there are
prevailing humanitarian or public
interest concerns.''.
(2) Effective date.--The amendment made by this subsection
shall take effect 180 days after the date of enactment of this
Act.
(b) Authorization To Serve Legal Process in Child Support Cases on
Certain Arriving Aliens.--
(1) In general.--Section 235(d) of the Immigration and
Nationality Act (8 U.S.C. 1225(d)) is amended by adding at the
end the following:
``(5) Authority to serve process in child support cases.--
``(A) In general.--To the extent consistent with
State law, immigration officers are authorized to serve
on any alien who is an applicant for admission to the
United States legal process with respect to any action
to enforce or establish a legal obligation of an
individual to pay child support (as defined in section
459(i) of the Social Security Act).
``(B) Definition.--For purposes of subparagraph
(A), the term `legal process' means any writ, order,
summons, or other similar process, which is issued by--
``(i) a court or an administrative agency
of competent jurisdiction in any State,
territory, or possession of the United States;
or
``(ii) an authorized official pursuant to
an order of such a court or agency or pursuant
to State or local law.''.
(2) Effective date.--The amendment made by this subsection
shall apply to aliens applying for admission to the United
States on or after 180 days after the date of enactment of this
Act.
(c) Authorization To Share Child Support Enforcement Information To
Enforce Immigration and Naturalization Law.--
(1) Secretarial responsibility.--Section 452 of the Social
Security Act (42 U.S.C. 652) is amended by adding at the end
the following:
``(m) If the Secretary receives a certification by a State agency,
in accordance with section 454(35), that an individual who is a
nonimmigrant alien (as defined in section 101(a)(15) of the Immigration
and Nationality Act) owes arrearages of child support in an amount
exceeding $2,500, the Secretary may, at the request of the State
agency, the Secretary of State, or the Attorney General, or on the
Secretary's own initiative, provide such certification to the Secretary
of State and the Attorney General information in order to enable them
to carry out their responsibilities under sections 212(a)(10) and
235(d) of such Act.''.
(2) State agency responsibility.--Section 454 of the Social
Security Act (42 U.S.C. 654), as amended by section 5111(c) of
this Act, is amended--
(A) by striking ``and'' at the end of paragraph
(33);
(B) by striking the period at the end of paragraph
(34) and inserting ``; and''; and
(C) by inserting after paragraph (34) the
following:
``(35) provide that the State agency will have in effect a
procedure for certifying to the Secretary, in such format and
accompanied by such supporting documentation as the Secretary
may require, determinations that nonimmigrant aliens owe
arrearages of child support in an amount exceeding $2,500.''.
SEC. 5134. CORRECTION OF ERRORS IN CONFORMING AMENDMENTS IN THE
WELFARE-TO-WORK AND CHILD SUPPORT AMENDMENTS OF 1999.
The amendments made by section 2402 of Public Law 106-246 shall
take effect as if included in the enactment of section 806 of H.R. 3424
of the 106th Congress by section 1000(a)(4) of Public Law 106-113.
SEC. 5135. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES FOR
SHORT-TERM TRAINING OF STAFF OF CERTAIN CHILD WELFARE
AGENCIES.
Section 474(a)(3)(B) of the Social Security Act (42 U.S.C.
674(a)(3)(B)) is amended by inserting ``, or State-licensed or State-
approved child welfare agencies providing services,'' after ``child
care institutions''.
SEC. 5136. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in this subtitle and
in subsection (b) of this section, this subtitle and the amendments
made by this subtitle shall take effect on October 1, 2002, and shall
apply to payments under part D of title IV of the Social Security Act
for calendar quarters beginning on or after such date, and without
regard to whether regulations to implement such amendments are
promulgated by such date.
(b) Delay Permitted if State Legislation Required.--In the case of
a State plan approved under section 454 of the Social Security Act
which requires State legislation (other than legislation appropriating
funds) in order for the plan to meet the additional requirements
imposed by the amendments made by this Act, the State plan shall not be
regarded as failing to comply with the additional requirements solely
on the basis of the failure of the plan to meet the additional
requirements before the first day of the first calendar quarter
beginning after the close of the first regular session of the State
legislature that begins after the date of enactment of this Act. For
purposes of the previous sentence, in the case of a State that has a 2-
year legislative session, each year of such session shall be deemed to
be a separate regular session of the State legislature.
CHAPTER 2--CHILD SUPPORT DEMONSTRATION PROGRAMS-
SEC. 5141. SHORT TITLE.
This chapter may be cited as the ``Child Support Assurance Act of
2001''.
SEC. 5142. PURPOSES.
The purposes of this chapter are to enable participating States to
establish, expand, or improve child support assurance systems in order
to improve the economic circumstances of children who do not receive a
minimum level of child support in a given month from the noncustodial
parents of such children, to strengthen the establishment and
enforcement of child support awards, and to promote work by custodial
and noncustodial parents.
SEC. 5143. DEFINITIONS.
In this chapter:
(1) Child.--The term ``child'' means an individual who is
of such an age, disability, or educational status as to be
eligible for child support as provided for by law.
(2) Eligible child.--The term ``eligible child'' means a
child who--
(A) is not currently receiving cash assistance
under the State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.);
(B) meets the eligibility requirements established
by the State for participation in a project
administered under this section; and
(C) is the subject of a support order, as defined
in section 453(p) of the Social Security Act (42 U.S.C.
653(p)), or for which good cause exists, as determined
by the appropriate State agency under section
454(29)(A) of such Act (42 U.S.C. 654(29)(A)), for not
having or pursuing a support order.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
SEC. 5144. ESTABLISHMENT OF CHILD SUPPORT ASSURANCE DEMONSTRATION
PROJECTS.
(a) Demonstrations Authorized.--The Secretary shall make grants to
not less than 3 and not more than 5 States to conduct demonstration
projects for the purpose of establishing, expanding, or improving a
system of an assured minimum child support payment to an eligible child
in accordance with this section.
(b) Application and Selection.--
(1) Application requirements.--An application for a grant
under this section shall be submitted by the chief executive
officer of a State and shall--
(A) contain a description of the proposed child
support assurance project to be established, expanded,
or improved using amounts provided under this section,
including the level of the assured minimum child
support payment to be provided and the agencies that
will be involved;
(B) specify whether the project will be carried out
throughout the State or in limited areas of the State;
(C) specify the level of income, if any, at which a
recipient or applicant will be ineligible for an
assured minimum child support payment under the
project;
(D) estimate the number of children who will be
eligible for assured minimum child support payments
under the project;
(E) contain a description of the work requirements,
if any, for custodial parents whose children are
participating in the project;
(F) contain a commitment by the State to carry out
the project during a period of not less than 3 and not
more than 5 consecutive fiscal years beginning with
fiscal year 2002; and
(G) contain such other information as the Secretary
may require by regulation.
(2) Selection criteria.--The Secretary shall consider--
(A) geographic diversity in the selection of States
to conduct demonstration projects under this section;
and
(B) any other criteria that the Secretary
determines will contribute to the achievement of the
purposes of this title.
(c) Use of Funds.--
(1) Grant funds.--A State shall use amounts provided under
a grant awarded under this section to carry out a child support
assurance project that is designed to provide a minimum monthly
child support payment for each eligible child participating in
the project to the extent that such minimum child support is
not paid in a month by the noncustodial parent.
(2) TANF funds.--
(A) In general.--A State selected to conduct a
demonstration project under this title may use, in
addition to the amounts provided under a grant awarded
under this section, funds provided under a State family
assistance grant under section 403(a)(1) of the Social
Security Act (42 U.S.C. 603(a)(1)) for the purpose
described in paragraph (1).
(B) Authority to include amounts used for purposes
of tanf maintenance of effort requirements.--Section
409(a)(7)(B)(i)(I) of the Social Security Act (42
U.S.C. 609(a)(7)(B)(i)(I)) is amended by adding at the
end the following:
``(ff) Notwithstanding
clause (iv), funds provided
under a State family assistance
grant, under section 403(a)(1)
that are used to establish,
expand, or improve a system of
assured minimum child support
payments to eligible children
(regardless of whether such
children reside with an
eligible family, as defined in
subclause (IV)) in accordance
with the Leave No Child Behind
Act of 2001.''.
(d) Treatment of Child Support Payment.--Any assured minimum child
support payment received by an individual under this title shall be
considered child support for purposes of determining the treatment of
such payment under--
(1) the Internal Revenue Code of 1986; and
(2) any eligibility requirements for any means-tested
program of assistance.
(e) Duration.--A demonstration project conducted under this section
shall commence on October 1, 2003, and shall be conducted for not less
than 3 and not more than 5 consecutive fiscal years, except that the
Secretary may terminate a project before the end of such period if the
Secretary determines that the State conducting the project is not in
compliance with the terms of the application approved by the Secretary
under this section.
(f) Evaluations and Reports.--
(1) State evaluations.--
(A) In general.--Each State administering a
demonstration project under this section shall--
(i) provide for evaluation of the project,
meeting such conditions and standards as the
Secretary may require; and
(ii) submit to the Secretary reports, at
the times and in the formats as the Secretary
may require, and containing any information (in
addition to the information required under
subparagraph (B)) as the Secretary may require.
(B) Required information.--A report submitted under
subparagraph (A)(ii) shall include information on and
analysis of the effect of the project with respect to--
(i) the amount of child support collected
for project recipients;
(ii) the economic circumstances and work
efforts of custodial parents;
(iii) the work efforts of noncustodial
parents;
(iv) the rate of compliance by noncustodial
parents with support orders;
(v) project recipients' need for assistance
under means-tested assistance programs other
than the project administered under this
section; and
(vi) any other matters that the Secretary
may specify.
(C) Methodology.--Information required under this
paragraph shall be collected through the use of
scientifically acceptable sampling methods.
(2) Reports to congress.--The Secretary shall, on the basis
of reports received from States administering projects under
this section, submit interim reports and, not later than 6
months after the conclusion of all projects administered under
this section, a final report to Congress. A report submitted
under this paragraph shall contain an assessment of the
effectiveness of the State projects administered under this
section and any recommendations for legislative action that the
Secretary considers appropriate.
(g) Funding.--There shall be available to the Secretary, from
amounts made available to carry out part D of title IV of the Social
Security Act, for purposes of carrying out demonstration projects under
this section, amounts not to exceed--
(1) $27,000,000 for fiscal year 2004;
(2) $55,000,000 for fiscal year 2005; and
(3) $70,000,000 for each of fiscal years 2006 through 2008.
Subtitle C--Fair Wages and Unemployment Insurance
CHAPTER 1--FAIR MINIMUM WAGE
SEC. 5201. SHORT TITLE.
This chapter may be cited as the ``Fair Minimum Wage Act of 2001''.
SEC. 5202. MINIMUM WAGE.
(a) In General.--Section 6(a)(1) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) $5.75 an hour beginning 30 days after the
date of enactment of the Fair Minimum Wage Act of 2001;
``(B) $6.25 an hour during the year beginning
January 1, 2002; and
``(C) $6.65 an hour beginning January 1, 2003;''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect 30 days after the date of enactment of this Act.
SEC. 5203. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH OF THE
NORTHERN MARIANA ISLANDS.
(a) In General.--Section 6 of the Fair Labor Standards Act of 1938
(29 U.S.C. 206) shall apply to the Commonwealth of the Northern Mariana
Islands.
(b) Transition.--Notwithstanding subsection (a), the minimum wage
applicable to the Commonwealth of the Northern Mariana Islands under
section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C.
206(a)(1)) shall be--
(1) $3.55 an hour beginning 30 days after the date of
enactment of this Act; and
(2) increased by $0.50 an hour (or such lesser amount as
may be necessary to equal the minimum wage under section
6(a)(1) of such Act), beginning 6 months after the date of
enactment of this Act and every 6 months thereafter until the
minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under this subsection is equal to the minimum
wage set forth in such section.
CHAPTER 2--LIVABLE WAGES FOR EMPLOYEES UNDER FEDERAL CONTRACTS
SEC. 5211. SHORT TITLE.
This chapter may be cited as the ``Federal Living Wage
Responsibility Act''.
SEC. 5212. FINDINGS.
The Congress finds the following:
(1) American workers are working harder to make ends meet.
(2) The wages of many working Americans have not kept pace
with the cost of providing for their families.
(3) The Federal Government provides billions of dollars in
subsidies to businesses each year through both spending
programs and the Internal Revenue Code of 1986.
(4) Recipients of Federal contracts have benefited greatly
from the provision of taxpayers' dollars.
(5) The Congressional Budget Office concluded that the
Federal Government spends more than $30 billion a year on
spending and credit programs.
(6) Congress must ensure that Federal dollars are used
responsibly to improve the economic security and well-being of
Americans across the country.
SEC. 5213. POVERTY LEVEL WAGE.
(a) Requirement.--
(1) General rule.--Except as provided in paragraph (2), any
employer under a Federal contract for an amount exceeding
$10,000 or a subcontract under a Federal contract for such an
amount shall, except as provided in subsection (b), pay each of
the employer's employees working on or hired in conjunction
with such contract or subcontract--
(A) an hourly wage necessary for such employee to
earn, while working 40 hours a week on a full-time
basis, the amount of the Federal poverty level for a
family of 4 (as published in the Federal Register by
the Department of Health and Human Services under the
authority of section 673(2) of the Omnibus Budget
Reconciliation Act of 1981), or
(B) $8.20 an hour,
whichever is greater.
(2) Exception.--An employer which is--
(A) a small business concern as defined under
section 3 of the Small Business Act (15 U.S.C. 632), or
(B) a nonprofit organization exempt from Federal
income tax under section 501(c) of the Internal Revenue
Code of 1986 if the ratio of the total compensation of
its chief executive officer to the compensation of the
full-time equivalent of its lowest paid employee is not
greater than 25 to 1,
shall not be required to pay the wage prescribed by paragraph
(1).
(3) Scope.--An employer may not avoid the requirement of
paragraph (1) by laying off or otherwise terminating the
employment of an employee with the intention of replacing such
employee with an employee who, under subsection (b), is not
eligible for the subsection (a) wage.
(b) Exception.--An employee who is participating in--
(1) an apprenticeship program, or
(2) any other training program which does not exceed 6
months in duration and which is offered to an employee while
employed in productive work that provides training, technical
and other related skills, and personal skills that are
essential to the full and adequate performance of the
employee's employment,
is not eligible for the wage prescribed by subsection (a).
(c) Contract Requirement.--Any contract between the Federal
Government and any contractor and any contract between such contractor
with a subcontractor to carry out work for the Federal Government shall
require the contractor or subcontractor to pay the wage prescribed by
subsection (a)(1).
(d) Enforcement.--
(1) Suspension.--If an employer does not pay the wage
required by subsection (a) the Federal contract or subcontract
under which such employer was employing employees shall be
suspended.
(2) Ineligibility.--An employer described in paragraph (1)
shall not be eligible for any Federal contract or subcontract
for a period of 5 years beginning on the date the employer does
not pay the required wage.
(3) Restitution.--An employer who does not pay the wage
required by subsection (a) shall be liable to the United States
in an amount equal to the unpaid wages and in addition an equal
amount as liquidated damages. The Secretary of Labor shall pay
to the employees who were not paid such wage the amount
recovered by the United States under this paragraph.
SEC. 5214. EFFECTIVE DATE.
This chapter shall take effect with respect to Federal contracts
entered into, renewed, or extended after 90 days after the date of
enactment of this Act.
CHAPTER 3--UNEMPLOYMENT INSURANCE
SEC. 5221. PARITY FOR PART-TIME WORKERS, FAIR COUNTING OF WAGES, AND
USE OF IMPROVED TECHNOLOGY FOR MAKING WAGE DATA
AVAILABLE.
(a) In General.--Subsection (a) of section 3304 of the Internal
Revenue Code of 1986 (relating to approval of State unemployment
compensation laws) is amended--
(1) in paragraph (18), by striking ``and'' at the end;
(2) by redesignating paragraph (19) as paragraph (21); and
(3) by inserting after paragraph (18) the following new
paragraphs:
``(19) compensation shall not be denied to an individual
solely because such individual is seeking only part-time work,
if--
``(A) such individual otherwise qualifies for
unemployment compensation; and
``(B) the part-time work sought by such individual
generally requires seeking suitable and comparable
part-time work under provisions of State law reasonably implementing
this provision;
``(20) with respect to each individual who was initially
determined ineligible for compensation under provisions of
State law relating to base period wages and employment,
eligibility for compensation is determined by using wage and
employment information received by the State agency from any
employer for the most recently completed calendar quarter,
except that nothing in this paragraph shall be construed as
prohibiting a State from using any additional wage and
employment information considered by such State for monetary
eligibility; and''.
(b) Effective Dates.--
(1) In general.--Except as provided in subsection (b), the
amendments made by this title shall apply to compensation paid
for weeks of unemployment beginning after June 30, 2002.
(2) Amendment relating to use of recent wages.--Section
3304(a)(20) of the Internal Revenue Code of 1986, as added by
subsection (a)(3), shall apply to compensation paid for weeks
of unemployment beginning after December 31, 2002.
SEC. 5222. ENSURING UNEMPLOYMENT COMPENSATION FOR INDIVIDUALS THAT ARE
SEPARATED FROM EMPLOYMENT DUE TO DOMESTIC VIOLENCE.
(a) Unemployment Compensation.--Section 3304 of the Internal
Revenue Code of 1986 (relating to approval of State unemployment
compensation laws), as amended by section 5221, is amended--
(1) in subsection (a)--
(A) in paragraph (20), by striking ``and'' at the
end;
(B) by redesignating paragraph (21) as paragraph
(22); and
(C) by inserting after paragraph (20) the following
new paragraph:
``(21) compensation is to be paid where an individual is
separated from employment due to circumstances directly
resulting from domestic violence; and''; and
(2) by adding at the end the following new subsection:
``(g) Construction.--
``(1) In general.--For purposes of subsection (a)(21), an
employee's separation from employment shall be treated as due
to circumstances directly resulting from domestic violence if
the separation resulted from--
``(A) the employee's reasonable fear of future
domestic violence at or en route to or from the
employee's place of employment;
``(B) the employee's wish to relocate to another
geographic area in order to avoid future domestic
violence against the employee or the employee's family;
``(C) the employee's need to recover from traumatic
stress resulting from the employee's experience of
domestic violence;
``(D) the employer's denial of the employee's
request for the temporary leave from employment to
address domestic violence and its effects; or
``(E) any other circumstance in which domestic
violence causes the employee to reasonably believe that
termination of employment is necessary for the future
safety of the employee or the employee's family.
``(2) Reasonable efforts to retain employment.--For
purposes of subsection (a)(21), if State law requires the
employee to have made reasonable efforts to retain employment
as a condition for receiving unemployment compensation, such
requirement shall be met if the employee--
``(A) sought protection from, or assistance in
responding to, domestic violence, including calling the
police or seeking legal, social work, medical, clergy,
or other assistance;
``(B) sought safety, including refuge in a shelter
or temporary or permanent relocation, whether or not
the employee actually obtained such refuge or
accomplished such relocation; or
``(C) reasonably believed that options such as
taking a leave of absence, transferring jobs, or
receiving an alternative work schedule would not be
sufficient to guarantee the employee or the employee's
family's safety.
``(3) Active search for employment.--For purposes of
subsection (a)(21), if State law requires the employee to
actively search for employment after separation from employment
as a condition for receiving unemployment compensation, such
requirement shall be treated as met where the employee is
temporarily unable to actively search for employment because
the employee is engaged in seeking safety or relief for the
employee or the employee's family from domestic violence,
including--
``(A) going into hiding or relocating or attempting
to do so, including activities associated with such
hiding or relocation, such as seeking to obtain
sufficient shelter, food, schooling for children, or
other necessities of life for the employee or the
employee's family;
``(B) actively pursuing legal protection or
remedies, including meeting with the police, going to
court to make inquiries or file papers, meeting with
attorneys, or attending court proceedings; or
``(C) participating in psychological, social, or
religious counseling or support activities to assist
the employee in ending domestic violence.
``(4) Provision of information to meet certain
requirements.--In determining if an employee meets the
requirements of paragraphs (1), (2), and (3), the unemployment
agency of the State in which an employee is requesting
unemployment compensation by reason of subsection (a)(21) may
require the employee to provide--
``(A) documentation of the domestic violence, such
as--
``(i) police or court records; or
``(ii) documentation from a shelter worker
or an employee of a domestic violence program,
an attorney, a clergy member, or a medical or
other professional from whom the employee has
sought assistance in addressing domestic
violence and its effects; or
``(B) other corroborating evidence, such as--
``(i) a statement from any other individual
with knowledge of the circumstances which
provide the basis for the claim; or
``(ii) physical evidence of domestic
violence, such as photographs or torn or bloody
clothes.
All evidence of domestic violence experienced by an employee,
including an employee's statement, any corroborating evidence,
and the fact that an employee has applied for, or inquired
about, unemployment compensation available by reason of
subsection (a)(21) shall be retained in the strictest
confidence by such State unemployment agency, except to the
extent consented to by the employee where disclosure is
necessary to protect the employee's safety.
``(5) Effect of claims.--Claims filed for unemployment
compensation solely by reason of subsection (a)(21) shall be
disregarded in determining an employer's State unemployment
taxes based on unemployment experience.''.
(b) Social Security Personnel Training.--Section 303(a) of the
Social Security Act (42 U.S.C. 503(a)) is amended--
(1) by redesignating paragraphs (4) through (10) as
paragraphs (5) through (11), respectively; and
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) Such methods of administration as will ensure that
claims reviewers and hearing personnel are adequately trained
in--
``(A) the nature and dynamics of claims for
unemployment compensation based on domestic violence
under section 3304(a)(20) of the Internal Revenue Code
of 1986; and
``(B) methods of ascertaining and keeping
confidential information about possible experiences of
domestic violence to ensure that--
``(i) requests for unemployment
compensation based on domestic violence are
reliably screened, identified, and adjudicated;
and
``(ii) complete confidentiality is provided
for the employee's claim and submitted
evidence; and''.
(c) Funding for Improved Technology To Assist in Determining
Benefit Eligibility.--Section 901(c) of the Social Security Act (42
U.S.C. 1101(c)) is amended by adding at the end the following new
paragraph:
``(6) In addition to amounts provided under paragraph (1)(A)(i),
there is hereby appropriated out of the employment security
administration account $60,000,000 for fiscal year 2001 (which shall
remain available for obligation to the States through fiscal year 2003)
for the purpose of assisting States in funding technology and other
costs that accelerate access to wage and employment information in
order to determine eligibility for unemployment compensation.''.
(d) Definitions.--Section 3306 of the Internal Revenue Code of 1986
(relating to definitions) is amended by adding at the end the following
new subsection:
``(u) Domestic Violence.--For purposes of this chapter, the term
`domestic violence' has the meaning given such term in section 2003(1)
of title I of the Omnibus Crime Control and Safe Streets Act of 1968
(42 U.S.C. 3796gg-2).''.
(e) Effective Date.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall take effect on
November 1, 2001.
(2) Funding for improved technology to assist in
determining benefit eligibility.--The amendment made by
subsection (c) shall take effect on the date of enactment of
this Act.
(3) Exception.--In the case of any State the legislature of
which has not been in session for at least 30 calendar days
(whether or not successive) between the date of enactment of
this Act and November 1, 2001, the amendments made by this
section shall take effect 30 calendar days after the first day
on which such legislature is in session on or after November 1,
2001.
SEC. 5223. LOSS OF CHILD CARE AS GOOD CAUSE FOR LEAVING EMPLOYMENT.
(a) In General.--Subsection (a) of section 3304 of the Internal
Revenue Code of 1986 (relating to approval of State unemployment
compensation laws), as amended by section 5222, is amended--
(1) in paragraph (21), by striking ``and'' at the end;
(2) by redesignating paragraph (22) as paragraph (23); and
(3) by inserting after paragraph (21) the following new
paragraph:
``(22) if any individual leaves employment because of loss
of adequate child care for a dependent child under the age of
12, for purposes of determining such individual's eligibility
for compensation for any subsequent week for which such
individual meets the State law requirements relating to
availability for work and active search for work--
``(A) such individual shall be treated as having
left such employment for good cause, and
``(B) any failure to return to such employment or
to otherwise meet such State law requirements, while
the lack of such child care continues, shall be
disregarded; and''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by subsection (a) shall take effect on November
1, 2001.
(2) Exception.--In the case of any State the legislature of
which has not been in session for at least 30 calendar days
(whether or not successive) between the date of enactment of
this Act and November 1, 2001, the amendments made by
subsection (a) shall take effect 30 calendar days after the
first day on which such legislature is in session on or after
November 1, 2001.
Subtitle D--Jobs for Low-Income Parents
SEC. 5301. DISREGARD OF MONTHS ENGAGED IN WORK FOR PURPOSES OF 5-YEAR
TANF ASSISTANCE LIMIT.
Section 408(a)(7) of the Social Security Act (42 U.S.C. 608(a)(7))
is amended--
(1) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (G), (H), and (I), respectively; and
(2) by inserting after subparagraph (D), the following:
``(E) Disregard of months of assistance received by
adult while engaged in work.--In determining the number
of months for which an adult has received assistance
under a State or tribal program funded under this part,
the State or tribe shall disregard any month during
which the adult is engaged in a work activity described
in paragraph (1), (2), (3), (4), (5), (6), (7), (8), or
(12) of section 407(d) in accordance with the
requirements of section 407(c).''.
SEC. 5302. STRENGTHENING TANF EDUCATION AND TRAINING REQUIREMENTS.
(a) In General.--Section 407(c) of the Social Security Act (42
U.S.C. 607(c)) is amended--
(1) in paragraph (1)(A), by striking ``not fewer than 20
hours per week of which are attributable to an activity
described in paragraph (1), (2), (3), (4), (5), (6), (7), (8),
or (12) of subsection (d),''; and
(2) in paragraph (2)(D)--
(A) by striking ``30 percent'' and inserting ``50
percent'';
(B) by striking ``For purposes of'' and inserting
the following:
``(i) In general.--For purposes of''; and
(C) by adding at the end the following:
``(ii) Waiver.--The Secretary may waive the
requirements of clause (i) with respect to an
individual if a State demonstrates that the
vocational educational training or education
described in subparagraph (C) that the
individual is engaged in is part of the
individual's individual responsibility plan
developed under section 408(b) and is designed
to ensure that the individual has a better
chance of sustaining stable employment.''.
(b) Elimination of 12-Month Limit on Vocational Educational
Training; Inclusion of Post-Secondary Education.--Section 407(d) of the
Social Security Act (42 U.S.C. 607(d)) is amended--
(1) in paragraph (8), by striking ``(not to exceed 12
months with respect to any individual)'';
(2) in paragraph (11), by striking ``and'' at the end;
(3) by redesignating paragraph (12) as paragraph (13); and
(4) by inserting after paragraph (11), the following:
``(12) post-secondary education related to employment;
and''.
SEC. 5303. ADDITION OF POVERTY REDUCTION BONUS TO TANF.
Section 403(a) of the Social Security Act (42 U.S.C. 603(a)), is
amended by adding at the end the following:
``(6) Bonus to reward states that reduce poverty.--
``(A) In general.--The Secretary shall make a grant
pursuant to this paragraph to each State for each
fiscal year beginning with fiscal year 2003 for which
the State is a qualified poverty reduction State, as
determined under subparagraph (C).
``(B) Amount of grant.--With respect to a fiscal
year, each State that the Secretary determines is a
qualified poverty reduction State for that fiscal year
shall receive a grant in an amount equal to the ratio
of the amount appropriated under subparagraph (D) for
that fiscal year to the total number of all such States
for that fiscal year.
``(C) Determination of qualified poverty reduction
states.--For purposes of subparagraph (A), a State
shall be considered a qualified poverty reduction State
for a fiscal year if the State satisfies the following:
``(i) Provision of certain assistance.--The
State demonstrates to the Secretary that the
State program funded under this part provides
in each local political subdivision of the
State for at least 3 of the following:
``(I) A work expense or
transportation allowance for any low-
income family that is not receiving
assistance under the State program.
``(II) The use of income disregards
sufficient to allow a family to remain
eligible for at least partial
assistance under the State program
until the sum of the family's earned
income and cash assistance exceed the
poverty line applicable to such family.
``(III) On-the-job training or
work/study programs in occupations
likely to provide a livable wage. For
purposes of this subclause, the term
`livable wage' means such hourly wage
as is necessary for an employee to
earn, while working 40 hours a week on
a full-year basis, an amount equal to
the amount of the Federal poverty level for a family of 4 for that year
(as published in the Federal Register by the Department of Health and
Human Services under the authority of section 673(2) of the Omnibus
Budget Reconciliation Act of 1981).
``(IV) Temporary subsidized
employment that provides at least the
minimum wage applicable under section 6
of the Fair Labor Standards Act for
parents or caregivers who are unable to
find other employment.
``(V) Non-recurrent assistance to
help pay for the repair of a vehicle or
appliance, past-due rent, a utility or
fuel bill, vehicle licensing or
insurance costs, or for other purposes
deemed necessary by the State to enable
eligible families with children to
maintain stable work and living
situations.
``(VI) A minimum monthly child
support payment paid by the State to a
low-income family with at least 1 child
support order if the noncustodial
parent does not pay the minimum payment
required under the order.
``(VII) With respect to families
that have assigned to the State in
accordance with section 408(a)(3) any
child support rights a family member
may have (on behalf of the family
member or of any other person for whom
the family member has applied for or is
receiving such assistance), a pass
through of child support collections to
the family, with at least $100 per
month of the pass-through payment
disregarded for purposes of calculating
assistance for the family under the
State program funded under this part.
``(VIII) An increase in the State's
minimum wage to at least $6.15 per hour
or a State minimum wage indexed to
inflation.
``(ii) Demonstration of improved outcomes
for current and former recipients of
assistance.--
``(I) In general.--With respect to
a fiscal year, the State is one of the
10 States with the greatest year-to-
year decline or, in the absence of 10
such States, the least year-to-year
increase, in the child poverty rate
adjusted by the severity of poverty.
For purposes of this subclause, the
child poverty rate adjusted by the
severity of poverty shall be determined
with respect to a State for a fiscal
year by multiplying the State's
percentage of children with family
income below the poverty line for that
fiscal year by the average difference
per poor child in the State between the
child's family income and the poverty
line.
``(II) Determination of income.--
For purposes of subclause (I), the
Secretary shall, to the extent
feasible, consider the following in
calculating a family's income:
``(aa) Cash income, such as
earnings, child support
received by the family, and
government cash payments.
``(bb) Benefits received
under the Food Stamp Act of
1977.
``(cc) Federal, State, or
local income taxes paid by the
family for the preceding
taxable year and the refundable
portion of any tax credits
received.
``(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there is appropriated for fiscal year
2003 and each fiscal year thereafter, $200,000,000 to
make the grants required under this paragraph.''.
SEC. 5304. PARTICIPATION IN WORKFORCE INVESTMENT BOARDS.
(a) State Workforce Investment Boards.--Section 111(b)(1)(C) of the
Workforce Investment Act of 1998 (29 U.S.C. 2821(b)(1)(C)) is amended--
(1) by redesignating clause (vii) as clause (viii);
(2) in clause (vi), by striking ``and'' at the end; and
(3) by inserting after clause (vi) the following:
``(vii) a representative of a lead State
agency with responsibility for the State
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
and''.
(b) Local Workforce Investment Boards.--Section 117(b)(2)(A) of the
Workforce Investment Act of 1998 (29 U.S.C. 2832(b)(2)(A)) is amended--
(1) in clause (v), by striking ``and'' at the end; and
(2) by adding at the end the following:
``(vii) a representative of the local
agency, if any, with responsibility for the
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
and''.
SEC. 5305. CLARIFICATION OF TANF PURPOSE.
Section 401(a) of the Social Security Act (42 U.S.C. 601(a)) is
amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (2), the following:
``(3) reduce poverty among families with children;''.
SEC. 5306. EFFECTIVE DATE.
The amendments made by this subtitle take effect on October 1,
2001.
Subtitle E--Incentives to Serve Families
SEC. 5401. DEVELOPMENT OF MODEL CASEWORKER TRAINING MATERIALS.
(a) Development of Model Caseworker Training Materials.--The
Secretary of Health and Human Services shall develop model training
materials (including guidebooks and other resources) for caseworkers
assigned to administer the provision of assistance to a family under
the State program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.). The model training materials
shall be designed to train the caseworkers to improve the access of the
family to other services and benefits that the family, or individuals
within the family, may be eligible for, including--
(1) benefits under the food stamp program, as defined in
section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 2012(h));
(2) medical assistance under the medicaid program under
title XIX of the Social Security Act (42 U.S.C. 1396 et seq.);
(3) child health assistance under the State children's
health insurance program under title XXI of the Social Security
Act (42 U.S.C. 1397aa et seq.);
(4) the special supplemental nutrition program for women,
infants, and children (WIC) under section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786);
(5) child care assistance;
(6) transportation assistance;
(7) education or training assistance;
(8) job placement activities;
(9) the earned income tax credit under section 32 of the
Internal Revenue Code of 1986; and
(10) services to treat or alleviate substance abuse, mental
illness, or family violence.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary of Health and Human Services to carry out
this section such sums as may be necessary for fiscal year 2002 and
each fiscal year thereafter.
SEC. 5402. EXCEPTION TO LIMIT ON TANF ADMINISTRATIVE EXPENDITURES FOR
CASEWORKER BONUSES AND OTHER STATE INITIATIVES TO
ELIMINATE BARRIERS TO WORK.
Section 404(b)(2) of the Social Security Act (42 U.S.C. 604(b)(2))
is amended--
(1) in the heading, by striking ``Exception''; and
inserting ``Exceptions'';
(2) by striking ``Paragraph (1)'' and inserting the
following:
``(A) Information technology and computerization.--
Paragraph (1)''; and
(3) by adding at the end the following:
``(B) Caseworker bonuses and other state
initiatives to eliminate barriers to work.--
``(i) In general.--Paragraph (1) shall not
apply to the use of a grant to provide a cash
bonus to a caseworker for a family receiving
assistance under the State program funded under
this part based on the number of such families
that the State determines the caseworker
assists achieve a goal described in clause
(ii), or for expenditures incurred for other
State initiatives designed to eliminate
barriers to work for families receiving
assistance under the State program funded under
this part.
``(ii) Caseworker goals.--For purposes of
clause (i), the goals described in this clause
are the following:
``(I) Obtain employment that
provides wages and benefits that enable
the family to have income that exceeds
the poverty line applicable to a family
of the size involved.
``(II) Obtain supportive services
and benefits for which the family is
eligible.
``(III) With respect to an
individual within a family, overcome a
barrier to the individual's employment,
including a barrier resulting from a
lack of transportation or child care, a
life crisis due to family violence,
substance abuse, or a mental or
physical disability.
``(IV) With respect to an
individual within a family, retain
employment for at least 6 months.''.
SEC. 5403. STRENGTHENING OF TANF INDIVIDUAL RESPONSIBILITY PLANS.
Section 408(b) of the Social Security Act (42 U.S.C. 608(b)) is
amended--
(1) in paragraph (2)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by
striking ``may'' and inserting ``shall''; and
(ii) in clause (i), by striking
``immediately into private sector employment''
and inserting ``into a job leading to stable
employment with earnings above the poverty line
applicable to a family of the size involved
(based on 35 hours of work per week) and health
care benefits for the employee and the
employee's dependents''; and
(B) in subparagraph (B)--
(i) in the matter preceding clause (i), by
striking ``may'' and inserting ``shall'';
(ii) in clause (i), by striking ``(or, at
the option of the State, 180 days)'';
(iii) in clause (ii), by striking ``(or, at
the option of the State, 90 days)''; and
(2) by striking paragraph (4) and inserting the following:
``(4) Penalty for noncompliance by the state.--In addition
to any other penalties that may be imposed against a State for
failure to comply with the requirements of this part, the
Secretary may reduce the grant payable to a State under section
403(a)(1) if the Secretary determines that the State has
failed, without good cause, to comply with the requirements of
this subsection.''.
SEC. 5404. EFFECTIVE DATE.
The amendments made by this subtitle take effect on October 1,
2001.
Subtitle F--Addressing Work Barriers
SEC. 5501. FUNDING FOR ACCESS TO JOBS PROGRAM.
Section 3037 of the Transportation Equity Act for the 21st Century
(49 U.S.C. 5309 note) is amended in subsection (l)(1)--
(1) in subparagraph (A), by striking clauses (iv) and (v)
and inserting the following:
``(iv) $150,000,000 for fiscal year 2002;
``(v) $170,000,000 for fiscal year 2003;
``(vi) $190,000,000 for fiscal year 2004;
``(vii) $200,000,000 for fiscal year 2005;
and
``(viii) $225,000,000 for fiscal year
2006.'';
(2) in subparagraph (B), by striking clauses (iv) and (v)
and inserting the following:
``(iv) $50,000,000 for each of fiscal years
2002 through 2006.''; and
(3) in subparagraph (C)--
(A) by inserting ``and'' after the semicolon in
clause (ii);
(B) by striking ``; and'' in clause (iii) and
inserting a period; and
(C) by striking clause (iv).
SEC. 5502. REQUIREMENT TO IDENTIFY AND PROVIDE SERVICES TO ADDRESS
BARRIERS TO EMPLOYMENT OF TANF RECIPIENTS.
(a) Requirement To Identify as Part of Individual Responsibility
Plan.--Section 408(b) of the Social Security Act (42 U.S.C. 608(b)), as
amended by section 5403, is amended--
(1) in paragraph (1), by striking ``who--'' and all that
follows and inserting ``has attained 18 years of age, using
caseworkers who are trained to utilize assessment methods
approved by the State to identify recipients with severe
barriers to employment, such as being subjected to domestic
violence, having mental health, substance or alcohol abuse
problems, homelessness, a physical or mental disability, or
illiteracy problems.''; and
(2) in paragraph (2)(A)(iv), by inserting ``overcome any
severe barriers to employment identified by the State under
paragraph (1), and to'' after ``will be able to''.
(b) Exemption From Work Requirement if State Fails To Provide
Services.--Section 407(e) of the Social Security Act (42 U.S.C. 607(e))
is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (3)'';
(2) in paragraph (2), in the heading, by striking
``Exception''; and inserting ``Single custodial parent with a
young child''; and
(3) by adding at the end the following:
``(3) Individual with a severe barrier to employment to
whom the state fails to provide services.--Notwithstanding
paragraph (1), a State may not reduce assistance under the
State program funded under this part based on a refusal of an
individual to engage in work required in accordance with this
section if, as part of the assessment required under section
408(b)(1), the individual has been identified as having a
severe barrier to employment and the State fails to provide
services necessary to overcome the barrier.''.
SEC. 5503. STATE OPTION TO ESTABLISH EXCEPTIONS FROM TIME LIMIT FOR
RECEIPT OF TANF ASSISTANCE BASED ON SEVERE BARRIERS TO
EMPLOYMENT.
Section 408(a)(7)(C) of the Social Security Act (42 U.S.C.
608(a)(7)(C)) is amended--
(1) in clause (ii), by striking ``The average'' and
inserting ``Subject to clause (iv), the average''; and
(2) by adding at the end the following:
``(iv) State option for exceptions based on
severe barriers to employment.--At State
option, the limit described in clause (ii)
shall not apply with respect to each category
of exception based on severe barriers to
employment as the State may determine.''.
SEC. 5504. EFFECTIVE DATE.
The amendments made by this subtitle take effect on October 1,
2001.
Subtitle G--Protection for Families in Need
SEC. 5601. EARN-BACK OF MONTHS OF TANF ASSISTANCE.
Section 408(a)(7) of the Social Security Act (42 U.S.C. 608(a)(7)),
as amended by section 5301, is amended by inserting after subparagraph
(E) the following:
``(F) Earn-back of months of assistance.--In
determining the number of months for which an adult has
received assistance under a State or tribal program
funded under this part, the State or tribe shall
disregard 1 month for every 3 months that the adult is
engaged in a work activity defined in paragraph (1),
(2), or (3) of section 407(d) in accordance with the
requirements of section 407(c) and during which the
individual is not receiving assistance under the State
program funded under this part.''.
SEC. 5602. ESTABLISHMENT OF A FAIR CONCILIATION PROCESS FOR FAMILIES
UNDER TANF.
Section 408 of the Social Security Act (42 U.S.C. 608) is amended
by adding at the end the following:
``(h) Fair Conciliation Procedures.--
``(1) In general.--Any case closed under the State program
funded under this part shall be subject to a customer service
review in accordance with the requirements of this subsection
to ensure that a case is not erroneously terminated and to give
a family another opportunity to participate in the program.
``(2) Requirements.--
``(A) Initial review.--A customer service reviewer
shall examine the case record for each case closed to
determine--
``(i) whether the caseworker responsible
for the case has attempted to make personal
contact with the parent or caregiver before
recommending closure of the case; and
``(ii) whether sufficient documentation
exists in the case record to establish both a
factual and policy basis for closure of the
case, including documentation of written notice
of the closure to the parent or caregiver.
``(B) Return to caseworker.--Any case in which a
customer service reviewer determines that no personal
contact has been attempted before closure of the case,
or that insufficient documentation exists, shall be
returned to the caseworker for the provision of such
attempted contact or documentation.
``(C) Additional attempted personal contact.--If a
case is not returned to a caseworker under subparagraph
(A), the customer service reviewer shall attempt to
make personal contact with the parent or caregiver
involved, including, if 3 attempts are required, an
attempt outside of normal business hours. A case shall
be closed after 3 unsuccessful attempts.
``(D) Determination of good cause for exception to
closure.--
``(i) In general.--With respect to a case
in which a caseworker or a customer service
reviewer has made personal contact with the
parent or caregiver, the customer service
reviewer shall determine whether barriers to
participation in the program exist, whether
there are grounds for exemption from the time
limits or any other program requirements, or
whether there was an error in the application
of the facts or policy.
``(ii) Modification of individual
responsibility plan.--If a customer service
reviewer determines under clause (i) that a
case should not be closed, the customer service
reviewer shall work with the parent or
caregiver to modify the parent's or caregiver's
individual responsibility plan developed under
subsection (b) as appropriate, including with
respect to the provision of any additional
services needed to assist the individual in
becoming work-ready.
``(E) Plan for compliance.--If a customer service
reviewer determines that subparagraph (D) does not
apply and a parent or caregiver is not subject to the
time limit for receipt of assistance under subsection
(a)(7), the reviewer shall ask the parent or caregiver
if the parent or caregiver is now willing to comply
with program requirements, and establish a plan with
the parent or caregiver for compliance. If the parent
or caregiver does not comply with such plan, the case
shall be closed without regard to the preceding
subparagraphs of this paragraph.
``(F) Written notice.--With respect to a case
closed by a customer service reviewer under this
subsection, the reviewer shall send the family involved
a final written notice of the case closure that informs
the family of--
``(i) the specific factual basis of the
closure;
``(ii) the steps that the family can take
to maintain eligibility for assistance under
the State program; and
``(iii) the procedure for appealing the
closure decision.''.
SEC. 5603. EFFECTIVE DATE.
The amendments made by this subtitle take effect on October 1,
2001.
Subtitle H--TANF Reauthorization
SEC. 5701. REAUTHORIZATION OF TANF STATE FAMILY ASSISTANCE GRANTS.
Section 403(a)(1) of the Social Security Act (42 U.S.C. 603(a)(1))
is amended--
(1) in subparagraph (A), by striking ``fiscal years 1996,
1997, 1998, 1999, 2000, 2001, and 2002'' and inserting ``the
fiscal years during the period beginning with fiscal year 1996
and ending with fiscal year 2007''; and
(2) in subparagraph (E), by striking ``fiscal years 1996,
1997, 1998, 1999, 2000, 2001, and 2002'' and inserting ``each
of the fiscal years during the period beginning with fiscal
year 1996 and ending with fiscal year 2007''.
SEC. 5702. PROHIBITION ON SUPPLANTATION OF TANF FUNDS.
Section 408(a) of the Social Security Act (42 U.S.C. 608(a)) is
amended by adding at the end the following new paragraph:
``(12) Supplement not supplant.--Funds made available under
this part shall be used to supplement, not supplant, other
Federal, State, or local funds that are used for existing
services and activities that promote the purposes of this
part.''.
TITLE VI--FAIR START
Subtitle A--Child and Adult Care Food Program
SEC. 6001. PARTICIPATION OF FOR-PROFIT CARE CENTERS IN CHILD AND ADULT
CARE FOOD PROGRAM.
Section 17(a)(2)(B) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1766(a)(2)(B)) is amended--
(1) by striking ``if--'' and all that follows through
``2001, at'' and inserting ``if at''; and
(2) by striking ``meals; or'' and all that follows and
inserting ``meals;''.
SEC. 6002. CATEGORICAL ELIGIBILITY REQUIREMENTS.
Section 17(f)(3)(A)(ii) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1766(f)(3)(A)(ii)) is amended by adding at the end
the following:
``(V) Categorical eligibility.--In
making a determination of income
eligibility under subclauses (I)(cc)
and (II), a family or group day care
home sponsoring organization may
consider a provider participating in or
subsidized under, or a provider with a
child participating in or subsidized
under, a federally or State supported
child care or other benefit program
with an income eligibility limit that
does not exceed the eligibility
standard for free or reduced price
meals under section 9 to be a provider
whose household meets the income
eligibility guidelines under section
9.''.
SEC. 6003. INCREASE IN ADMINISTRATIVE REIMBURSEMENT RATES.
Section 17(f)(3) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1766(f)(3)) is amended by striking subparagraph (B) and
inserting the following:
``(B) Reimbursement for administrative expenses.--
``(i) In general.--Family or group day care
home sponsoring organizations shall also
receive reimbursement for administrative
expenses in amounts not exceeding the maximum
allowable levels prescribed by the Secretary.
``(ii) Adjustment.--The maximum allowable
levels prescribed under clause (i) shall be--
``(I) adjusted July 1 of each year
to reflect changes for the 12-month
period ending in the preceding June, in
the Consumer Price Index for All Urban
Consumers published by the Bureau of
Labor Statistics of the Department of
Labor, rounded to the nearest lower
dollar increment; and
``(II) in addition to the
adjustments required under subclause
(I), increased by $2.00 for each level
described in clause (i).''.
SEC. 6004. PROGRAM FOR AT-RISK SCHOOL CHILDREN.
Section 17(r) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1766(r)) is amended--
(1) in paragraph (1)(B)--
(A) by inserting ``(i)'' after ``(B)'';
(B) by striking ``in a geographical area'' and all
that follows through the period and inserting the
following: ``in a geographical area--
``(I) that is served by a school in which
at least 50 percent of the children are
eligible for free or reduced price school meals
under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.); or
``(II) in which poor economic conditions
exist, as determined by the Secretary based
on--
``(aa) information provided from
the local department of welfare, zoning
commission, or census tracts; or
``(bb) information from other
appropriate sources; or''; and
(C) by adding at the end the following:
``(ii) is enrolled in a program authorized under
this subsection operated at a site not described in
clause (i).'';
(2) in paragraph (4), by striking subparagraphs (B) and (C)
and inserting the following:
``(B) Rates.--
``(i) Meals.--A meal shall be reimbursed
under this subsection--
``(I) for children participating in
a program at a site described in
paragraph (1)(B)(i), at the rate
established for free meals under
subsection (c); and
``(II) for children enrolled in a
program under paragraph 1(B)(ii), at
the applicable rate for meals
established under subsection (c).
``(ii) Supplements.--A supplement shall be
reimbursed under this subsection--
``(I) for children participating in
a program at a site described in
paragraph (1)(B)(i), at the rate
established for a free supplement under
subsection (c)(3); and
``(II) for children enrolled in a
program under paragraph 1(B)(ii), at
the applicable rate for supplements
established under subsection (c)(3).
``(C) No charge.--In the case of at-risk school
child participating in a program at a site described in
paragraph (1)(B)(i), a meal or supplement provided
under this subsection to the child shall be served
without charge.''; and
(3) by striking paragraph (5).
Subtitle B--Food Stamp Program
SEC. 6101. RESTORATION OF FOOD STAMP BENEFITS FOR QUALIFIED ALIENS.
(a) Limited Eligibility of Qualified Aliens for Certain Federal
Programs.--
(1) In general.--Section 402(a) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1612(a)) is amended--
(A) in paragraph (2)--
(i) in subparagraph (A), by striking
``Federal programs'' and inserting ``Federal
program'';
(ii) in subparagraph (D)--
(I) by striking clause (ii); and
(II) in clause (i)--
(aa) by striking ``(i)
SSI.--'' and all that follows
through ``paragraph (3)(A)''
and inserting the following:
``(i) In general.--With respect to the
specified Federal program described in
paragraph (3)'';
(bb) by redesignating
subclauses (II) through (IV) as
clauses (ii) through (iv) and
indenting appropriately;
(cc) by striking
``subclause (I)'' each place it
appears and inserting ``clause
(i)''; and
(dd) in clause (iv) (as
redesignated by item (bb)), by
striking ``this clause'' and
inserting ``this
subparagraph'';
(iii) in subparagraph (E), by striking
``paragraph (3)(A) (relating to the
supplemental security income program)'' and
inserting ``paragraph (3)'';
(iv) in subparagraph (F);
(I) by striking ``Federal
programs'' and inserting ``Federal
program'';
(II) in clause (ii)(I)--
(aa) by striking ``(I) in
the case of the specified
Federal program described in
paragraph (3)(A),''; and
(bb) by striking ``; and''
and inserting a period; and
(III) by striking subclause (II);
(v) in subparagraph (G), by striking
``Federal programs'' and inserting ``Federal
program'';
(vi) in subparagraph (H), by striking
``paragraph (3)(A) (relating to the
supplemental security income program)'' and
inserting ``paragraph (3)''; and
(vii) by striking subparagraphs (I), (J),
and (K); and
(B) in paragraph (3)--
(i) by striking ``means any'' and all that
follows through ``The supplemental'' and
inserting ``means the supplemental''; and
(ii) by striking subparagraph (B).
(2) Conforming amendment.--Section 402(b)(2)(F) of the
Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 (8 U.S.C. 1612(b)(2)(F)) is amended by striking
``subsection (a)(3)(A)'' and inserting ``subsection (a)(3)''.
(b) Five-Year Limited Eligibility of Qualified Aliens for Federal
Means-Tested Public Benefit.--Section 403 of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1613) is amended--
(1) in subsection (c)(2), by adding at the end the
following:
``(L) Assistance or benefits under the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.).''; and
(2) in subsection (d)--
(A) by striking ``not apply'' and all that follows
through ``(1) an individual'' and inserting ``not apply
to an individual''; and
(B) by striking ``; or'' and all that follows
through ``402(a)(3)(B)''.
(c) Authority for States To Provide for Attribution of Sponsor's
Income and Resources to the Qualified Alien With Respect to State
Programs.--Section 422(b) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1632(b)) is amended by
adding at the end the following:
``(8) Programs comparable to assistance or benefits under
the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).''.
(d) Requirements for Sponsor's Affidavit of Support.--Section
423(d) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1183a note; Public Law 104-193) is
amended by adding at the end the following:
``(12) Benefits under the Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.), if a sponsor is unable to make the reimbursement
because the sponsor experiences hardship (including bankruptcy,
disability, and indigence) or if the sponsor experiences severe
circumstances beyond the control of the sponsor, as determined
by the Secretary of Agriculture.''.
(e) Derivative Eligibility for Benefits.--Section 436 of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1646) is repealed.
(f) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section take effect on
April 1, 2002.
(2) Exceptions.--The amendments made by subsections (a)
through (d) shall--
(A) not apply to a certification period that begins
not later than April 1, 2002, and ends not later than
October 1, 2002, unless the State agency (as defined in
section 3 of the Food Stamp Act of 1977 (7 U.S.C.
2012)) elects to make such amendments applicable before
the ends of the period, but not before April 1, 2002;
and
(B) apply on October 1, 2002 to a certification
period that begins not later than April 1, 2002, and
ends after October 1, 2002, unless the State agency
elects to make the amendments applicable to the
certification period on a date before October 1, 2002,
but not before April 1, 2002.
SEC. 6102. CONFORMING FOOD STAMP AND MEDICAID INCOME DEFINITIONS;
SIMPLIFIED INCOME CALCULATIONS.
Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is
amended--
(1) in paragraph (3)--
(A) by striking ``and (C)'' and inserting ``(C)'';
and
(B) by adding at the end the following: ``and (D)
to the extent that any other educational loans on which
payment is deferred, grants, scholarships, fellowships,
veterans' educational benefits, and the like are
excluded under Title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).'';
(2) by striking ``and (15)'' and inserting ``(15)''; and
(3) by inserting before the period at the end the
following: ``(16) any State complementary assistance program
payments that are excluded under subsections (a) and (b) of
section 1931 of the Social Security Act (42 U.S.C. 1396u-
1(a),(b)), and (17) at the option of the State agency, any type
of income that the State agency does not consider when
determining eligibility for cash assistance under a program
funded under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) or medical assistance under section 1931 of
the Social Security Act (41 U.S.C. 1396u-1): Provided, That
this paragraph shall not authorize a State agency to exclude
earned income, benefits under titles II, IV, or XVI of the
Social Security Act (42 U.S.C. 401 et seq.), or other types of
income that the Secretary considers necessary for the equitable
determinations of eligibility and benefit levels''.
SEC. 6103. PREVENTION OF HUNGER AMONG FAMILIES WITH CHILDREN.
(a) Standard Deduction.--Section 5(e) of the Food Stamp Act of 1977
(7 U.S.C. 2014(e)) is amended by striking paragraph (1) and inserting
the following:
``(1) Standard deduction.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall allow a standard deduction for each
household in the 48 contiguous States and the District
of Columbia, Alaska, Hawaii, Guam, and the Virgin
Islands of the United States that is equal to the
applicable percentage established under subparagraph
(C) of the income standard of eligibility under
subsection (c)(1).
``(B) Limitations.--The standard deduction for each
household in the 48 contiguous States and the District
of Columbia, Alaska, Hawaii, Guam, and the Virgin
Islands of the United States under subparagraph (A)
shall not be--
``(i) less than $134, $229, $189, $269, and
$118, respectively; or
``(ii) more than the applicable percentage
specified in subparagraph (C) of the income
standard of eligibility established under
section (c)(1) for a household of 6 members.
``(C) Applicable percentage.--The applicable
percentage referred to in subparagraphs (A) and (B)
shall be--
``(i) for fiscal year 2002, 8 percent;
``(ii) for fiscal year 2003, 8.5 percent;
``(iii) for fiscal year 2004, 9 percent;
``(iv) for fiscal year 2005, 9.5 percent;
and
``(v) for fiscal year 2006 and each
subsequent fiscal year, 10 percent.''.
(b) Application Date.--The amendments made by this section shall
apply on the later of--
(1) July 1, 2002; or
(2) at the option of a State agency of a State (as those
terms are defined in section 3 of the Food Stamp Act of 1977 (7
U.S.C. 2012)), October 1, 2002.
SEC. 6104. ENCOURAGEMENT OF COLLECTION OF CHILD SUPPORT.
(a) In General.--Section 5(e)(2) of the Food Stamp Act of 1977 (7
U.S.C. 2014(e)(2)) is amended--
(1) by inserting ``and child support'' after ``income'';
(2) in subparagraph (A)--
(A) by striking ``Definition of'' and all that
follows through ``not include'' and inserting the
following: ``Limitation on deduction.--A deduction
under this paragraph shall not apply to'';
(B) in clause (i), by striking ``or'';
(C) in clause (ii), by striking the period at the
end and inserting ``; or''; and
(D) by adding at the end the following:
``(iii) child support received to the
extent of any reduction in public assistance to
the household as a result of receiving the
support.''; and
(3) in subparagraph (B)--
(A) by striking ``with earned income''; and
(B) by striking ``to compensate'' and all that
follows through the period and inserting the following:
``and child support received from an identified or
putative parent of a child in the household if that
parent is not a household member.''.
(b) Effective Date.--The amendments made by this section take
effect on--
(1) July 1, 2002; or
(2) at the option of a State agency of a State (as those
terms are defined in section 3 of the Food Stamp Act of 1977 (7
U.S.C. 2012)), October 1, 2002.
SEC. 6105. ELIMINATION OF EXCESS SHELTER EXPENSE DEDUCTION CAP FOR
FAMILIES WITH HIGH SHELTER COSTS.
Section 5(e)(7) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(7))
is amended--
(1) by striking subparagraph (B); and
(2) by redesignating subparagraph (C) as subparagraph (B).
SEC. 6106. PERIODIC REDETERMINATION OF ELIGIBILITY.
(a) In General.--Section 11(e) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)) is amended by striking paragraph (4) and inserting the
following:
``(4)(A) that the State agency shall periodically require
the household to cooperate in a redetermination of eligibility
under procedures consistent with paragraph (2); and
``(B) that, in carrying out subparagraph (A), a State
agency--
``(i) shall require a redetermination of
eligibility at least once--
``(I) every 12 months; or
``(II) every 24 months, if--
``(aa) the State agency has contact
with the household at least once every
12 months; and
``(bb) all adult household members
are elderly or disabled;
``(ii) except as provided in clause (iii), shall
continue to provide benefits to households during the
redetermination process; and
``(iii) shall not provide further allotments to any
household that the State agency determines has refused
to cooperate in the redetermination of eligibility;''.
(b) Conforming Amendments--
(1) Section 3 of the Food Stamp Act of 1977 (7 U.S.C. 2012)
is amended by striking subsection (c).
(2) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)
is amended--
(A) in subsection (d)(2), by striking ``in the
certification period''; and
(B) in subsection (e)--
(i) in paragraph (6)(B)(ii)(III), by
striking ``has been anticipated for the
certification period'' and inserting ``was
anticipated when the household applied for
benefits or at the most recent redetermination
of eligibility''; and
(ii) in paragraph (7)(C)(iii)(II), by
striking ``the end of a certification period''
and inserting ``each redetermination of
eligibility''.
(3) Section 6(c)(1)(C)(iv) of the Food Stamp Act of 1977 (7
U.S.C. 2015(c)(1)(C)(iv)) is amended by striking
``certification period'' each place it appears and inserting
``interval between required redeterminations of eligibility''.
(4) Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended--
(A) in paragraph (1), by striking ``within a
certification period''; and
(B) in paragraph (2), by striking ``expiration of''
and all that follows through ``certification period,''
and inserting ``termination of benefits to a
household,''.
(5) Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e) is amended--
(A) in paragraph (10)--
(i) by striking ``within the household's
certification period''; and
(ii) by striking ``until such time'' and
all that follows through ``occurs earlier'';
and
(B) in paragraph (16), by striking
``recertification'' and inserting ``redetermination of
the eligibility of''.
SEC. 6107. TRANSITIONAL BENEFITS OPTION.
(a) In General.--Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020) is amended by adding at the end the following:
``(s) Transitional Benefits Option.--
``(1) In general.--A State may provide transitional food
stamp benefits to a household that is no longer eligible to
receive cash assistance under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.).
``(2) Transitional benefits period.--Under paragraph (1), a
household may continue to receive food stamp benefits for a
period of not more than 6 months after the date on which cash
assistance is terminated.
``(3) Amount.--During the transitional benefits period
under paragraph (2), a household shall receive an amount equal
to the allotment received in the month immediately preceding
the date on which cash assistance is terminated, adjusted for--
``(A) the change in household income as a result of
the termination of cash assistance; and
``(B) any changes in circumstances that may result
in an increase in the food stamp allotment of the
household and that the household elects to report (as
verified in accordance with standards established by
the Secretary).
``(4) Determination of future eligibility.--In the final
month of the transitional benefits period under paragraph (2),
the State agency may--
``(A) require a household to cooperate in a
redetermination of eligibility to receive uninterrupted
benefits after the transitional benefits period; and
``(B) renew eligibility for a new certification
period for the household without regard to whether the
previous certification period has expired.
``(5) Limitation.--A household sanctioned under section 6
shall not be eligible for transitional benefits under this
subsection.''.
(b) Conforming Amendments.--
(1) Section 11(e)(4)(B) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(4)(B)) (as amended by section 6106(a)) is
amended--
(A) in clause (ii), by striking ``and'' at the end;
(B) in clause (iii), by inserting ``and'' after the
semicolon; and
(C) by adding at the end the following:
``(iv) may extend the intervals under
clause (i) to the end of a transitional
benefits period established by a State under
section 11(s);''.
(2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C.
2015(c)) is amended by striking ``No household'' and inserting
``Except in a case in which a household is receiving
transitional benefits during the transitional benefits period under
subsection (s), no household''.
SEC. 6108. IMPROVING STATE INCENTIVES TO SERVE WORKING FAMILIES.
(a) Targeted Quality Control System.--Section 16(c) of the Food
Stamp Act of 1977 (7 U.S.C. 2025(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) by striking subparagraph (C) and inserting the
following:
``(C) except as provided in subparagraph (D), for
any fiscal year in which the Secretary determines that
a 95-percent statistical probability exists that the
payment error rate of a State agency exceeds the
national performance measure for payment error rates
under paragraph (6) by more than 1 percentage point,
other than for good cause shown, the State agency shall
pay to the Secretary an amount, to be determined by the
Secretary based on an investigation and finding that
the State administration of the program under this Act
was seriously negligent, that reflects the extent of
negligence, not to exceed 5 percent of the amount
provided the State agency under subsection (a); and'';
and
(C) by adding at the end the following:
``(D) if, in any 3 consecutive fiscal years, the
Secretary determines that a 95-percent statistical
probability exists that the payment error rate of a
State agency exceeds the national performance measure
for payment error rates under paragraph (6) by more
than 1 percentage point, other than for good cause
shown, the agency shall pay to the Secretary an amount
equal to the product of--
``(i) the value of all allotments issued by
the State agency in the fiscal year; times
``(ii) the lesser of--
``(I) the ratio of--
``(aa) the amount by which
the payment error rate of the
State agency for the fiscal
year exceeds by more than 1
percentage point the national
performance measure for the
fiscal year; bears to
``(bb) 10 percent, or
``(II) 1; times
``(iii) the amount by which the payment
error rate of the State agency for the fiscal
year exceeds by more than 1 percentage point
the national performance measure for the fiscal
year.'';
(2) in paragraph (2)(A), by inserting before the semicolon
the following: ``, as adjusted downward to eliminate any
increases that may result from the State agency serving a
higher percentage of households--
``(i) with earned income than--
``(I) the State agency served in fiscal
year 1992; or
``(II) the national average for the current
year; and
``(ii) containing 1 or more members who are not
United States citizens than--
``(I) the State agency served in fiscal
year 1998; or
``(II) the national average for the current
year'';
(3) in paragraph (4), by striking the first sentence and
inserting the following: ``The Secretary may require a State
agency to report any factors that the Secretary considers
necessary to determine a State agency's payment error rate,
enhanced administrative funding, claim for payment error, or
performance under the measures under paragraph (10).'';
(4) in paragraph (5), by striking the first sentence and
inserting the following: ``To facilitate the implementation of
this subsection each State agency shall expeditiously submit to
the Secretary data regarding its operations in each fiscal year
sufficient for the Secretary to comply with paragraph (10) and
to establish the payment error rate for the State agency for
such fiscal year and determine the amount of either incentive
payments under paragraph (1)(A) or claims under subparagraph
(C) or (D) of paragraph (1).'' ; and
(5) by inserting at the end the following:
``(10)(A) Additional performance measures.--In addition to
the performance measures under paragraph (1), the Secretary
shall measure--
``(i) compliance with the deadlines under
paragraphs (3) and (9) of section 11(e);
``(ii) the percentage of negative eligibility
decisions that are made in error; and
``(iii) the number of households that have--
``(I) incomes less than 130 percent of the
poverty rate;
``(II) annual earnings equal to at least
1000 times the Federal minimum hourly rate
under the Fair Labor Standards Act of 1938 (29
U.S.C. 201 et seq.); and
``(III) children under age 18;
that receive food stamps in the State as a percentage
of the number of the low-income working households with
children in the State.
``(B) Bonus payments.--For each fiscal year, with respect
to each of the performance measures in subparagraph (A), the
Secretary shall make excellence bonus payments of $1,000,000
to--
``(i) each of the 5 States with the highest
performance; and
``(ii) each of the 5 States with the performance
that has most improved during the fiscal year.
``(C) Investigation.--
``(1) In general.--For any fiscal year in which the
Secretary determines that a 95-percent statistical
probability exists that the performance of a State
agency with respect to any of the performance measures
in subparagraph (A) is substantially worse than a level
the Secretary determines reasonable, the Secretary
shall investigate the State agency.
``(2) Corrective action.--If the Secretary
determines that the administration by the State agency
has been deficient, the Secretary shall require the
State agency to take prompt corrective action.''.
(b) Application Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to all fiscal years
beginning on or after October 1, 1999.
(2) Additional performance measures.--The amendments made
by subsection (a)(5) shall apply to all fiscal years beginning
on or after October 1, 2001.
SEC. 6109. AUTHORIZATION OF APPROPRIATIONS FOR ADDITIONAL COMMODITIES
UNDER EMERGENCY FOOD ASSISTANCE PROGRAM.
Section 214 of the Emergency Food Assistance Act of 1983 (7 U.S.C.
7515) is amended by adding at the end the following:
``(e) Authorization of Appropriations.--
``(1) In general.--In addition to any other funds that are
made available to carry out this section, there are authorized
to be appropriated to purchase and make available additional
commodities under this section $20,000,000 for each of fiscal
years 2002 through 2006.
``(2) Direct expenses.--Not less than 50 percent of the
amount made available under paragraph (1) shall be used to pay
direct expenses (as defined in section 204(a)(2)) incurred by
emergency feeding organizations to distribute additional
commodities to needy persons.''.
TITLE VII--FAIR START HOUSING
Subtitle A--Section 8 Vouchers
SEC. 7001. RENTAL ASSISTANCE VOUCHER PROGRAM.
(a) In General.--The Secretary of Housing and Urban Development
(referred to in this subtitle as the ``Secretary'') shall provide
1,000,000 incremental housing vouchers for rental assistance under
section 8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)) during the 10 year period following the date of enactment of
this Act.
(b) Authorization of Appropriations.--There are authorized to be
appropriated such sums as necessary to carry out this section.
SEC. 7002. VOUCHER SUCCESS FUND.
(a) Voucher Success Fund.--
(1) Establishment.--There is established the Voucher
Success Fund (referred to in this section as the ``Fund'').
(2) Purposes.--The purposes of the Fund are--
(A) to address barriers that individuals encounter
in successfully utilizing voucher rental assistance
provided under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)); and
(B) to help improve the operation of that voucher
rental assistance program.
(3) Uses of assistance.--The Secretary shall provide
assistance from the Fund to States on a competitive basis,
which assistance shall be used--
(A) by communities that are determined by an
appropriate State agency of the State to be
experiencing problems in utilizing voucher rental
assistance provided under section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)),
including--
(i) difficult market conditions;
(i) low rates of success for families
attempting to use voucher rental assistance
provided under that section;
(iii) concentrations of assisted families
in high poverty neighborhoods; and
(iv) other program difficulties; and
(B) for activities that include--
(i) technical assistance to local public
housing authorities or communities to improve
the success of the voucher rental assistance
program under section 8(o) of the United States
Housing Act (42 U.S.C. 1437f(o));
(ii) assistance for families in using that
assistance, including mobility counseling,
assistance with security deposits,
transportation, and other activities intended
to increase the likelihood that families will
succeed in leasing units or leasing units
outside of areas of concentrated poverty; and
(iii) outreach to landlords and community
groups to encourage participation in that
voucher rental assistance program.
(4) Monitoring systems.--The Secretary may use not more
than 1 percent of any amount made available to the Fund under
this section to establish monitoring systems for the Fund.
(5) Report.--Not later than 12 months after the date of
enactment of this Act, the Secretary shall--
(A) conduct a detailed evaluation of the effect of
providing assistance under this section; and
(B) submit a report to Congress regarding the
evaluation conducted under subparagraph (A).
(6) Authorization of appropriations.--There is authorized
to be appropriated to the Fund, $50,000,000 for each of fiscal
years 2002 through 2011 to carry out the provisions of this
section.
Subtitle B--National Affordable Housing Trust Fund
SEC. 7101. PURPOSES.
The purposes of this subtitle are--
(1) to fill the growing gap in the national ability to
build affordable housing by using profits generated by Federal
housing programs to fund additional housing activities, and not
supplant existing housing appropriations;
(2) to enable rental housing to be built for those families
with the greatest need in areas with the greatest opportunities
in mixed-income settings; and
(3) to promote homeownership for low-income families.
SEC. 7102. NATIONAL AFFORDABLE HOUSING TRUST FUND.
(a) Establishment of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
``National Affordable Housing Trust Fund'' (referred to in this
subtitle as the ``Trust Fund'') for the purpose of promoting the
development of affordable housing.
(b) Deposits to the Trust Fund.--For fiscal year 2002 and each
fiscal year thereafter, there is authorized to be appropriated to the
Trust Fund an amount equal to the sum of--
(1) any revenue generated by the Mutual Mortgage Insurance
Fund of the Federal Housing Administration in excess of the
amount necessary for the Mutual Mortgage Insurance Fund to
maintain a capital ratio of 3 percent for the preceding fiscal
year; and
(2) any revenue generated by the Government National
Mortgage Association in excess of the amount necessary to pay
the administrative costs and expenses necessary to ensure the
safety and soundness of the Government National Mortgage
Association for the preceding fiscal year, as determined by the
Secretary of Housing and Urban Development.
(c) Expenditures From the Trust Fund.--For fiscal year 2002 and
each fiscal year thereafter, amounts appropriated to the Trust Fund
shall be available to the Secretary of Housing and Urban Development
for use in accordance with section 7103.
SEC. 7103. ADMINISTRATION OF NATIONAL AFFORDABLE HOUSING TRUST FUND.
(a) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing''
means housing for rental that bears rents not greater than the
lesser of--
(A) the existing fair market rent for comparable
units in the area, as established by the Secretary
under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f); or
(B) a rent that does not exceed 30 percent of the
adjusted income of a family whose income equals 65
percent of the median income for the area, as
determined by the Secretary, with an adjustment for the
number of bedrooms in the unit, except that the
Secretary may establish income ceilings that are higher
or lower than 65 percent of the median for the area if
the Secretary finds that such variations are necessary
because of prevailing levels of construction costs or
fair market rents, or unusually high or low family
incomes.
(2) Continued assistance rental subsidy program.--The term
``continued assistance rental subsidy program'' means a program
under which--
(A) project-based assistance is provided, for not
more than 3 years, to a family in an affordable housing
unit developed with assistance made available under
subsection (c) or (d) in a project that partners with a
public housing agency, which agency agrees--
(i) to provide the assisted family with a
priority for the receipt of a voucher under
section 8(o) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(o)) if the family
chooses to move after the initial year of
occupancy; and
(ii) to refer eligible voucher holders to
the property when a vacancy occurs; and
(B) after 3 years, subject to appropriations,
continued assistance is provided under section 8(o) of
the United States Housing Act of 1937 (42 U.S.C.
1437f(o)), notwithstanding any provision to the
contrary in that section, if--
(i) the program is administered to provide
families with the option of continued
assistance with tenant-based vouchers if such a
family chooses to move after the initial year
of occupancy; and
(ii) the public housing agency agrees to
refer eligible voucher holders to the property
when a vacancy occurs.
(3) Eligible activity.--The term ``eligible activity''
means an activity that relates to the development of affordable
housing, including--
(A) the construction of new housing;
(B) the acquisition of real property;
(C) site preparation and improvement, including
demolition;
(D) substantial rehabilitation of existing housing;
and
(E) rental subsidy for not more than 3 years under
a continued assistance rental subsidy program.
(4) Eligible entity.--The term ``eligible entity'' includes
any public or private nonprofit or for-profit entity, unit of
local government, regional planning entity, and any other
entity engaged in the development of affordable housing, as
determined by the Secretary.
(5) Eligible intermediary.--The term ``eligible
intermediary'' means--
(A) a nonprofit community development corporation;
(B) a community development financial institution
(as defined in section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (12
U.S.C. 4702));
(C) a State or local trust fund;
(D) any entity eligible for assistance under
section 4 of the HUD Demonstration Act of 1993 (42
U.S.C. 9816 note);
(E) a national, regional, or statewide nonprofit
organization; and
(F) any other appropriate nonprofit entity, as
determined by the Secretary.
(6) Extremely low-income families.--The term ``extremely
low-income families'' means very low-income families (as
defined in section 3(b) of the United States Housing Act of
1937 (42 U.S.C. 1437a(b)) whose incomes do not exceed 30
percent of the median family income for the area, as determined
by the Secretary with adjustments for smaller and larger
families, except that the Secretary may establish income
ceilings that are higher or lower than 30 percent of the median
for the area if the Secretary finds that such variations are
necessary because of unusually high or low family incomes.
(7) Low-income families.--The term ``low-income families''
has the same meaning as in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)).
(8) Non-Federal sources.--Non-Federal sources include--
(A) 50 percent of funds allocable to tax credits
allocated under section 42 of the Internal Revenue Code
of 1986;
(B) 50 percent of revenue from mortgage revenue
bonds issued under section 143 of that Code; and
(C) 50 percent of proceeds from the sale of tax
exempt bonds.
(9) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(10) State.--The term ``State'' has the same meaning as in
section 3(b) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)).
(b) Allocation to States and Eligible Intermediaries.--For fiscal
year 2002 and each fiscal year thereafter, of the total amount made
available to the Secretary from the Trust Fund under section 7102(c)--
(1) 75 percent shall be used by the Secretary to award
grants to States in accordance with subsection (c); and
(2) 25 percent shall be used by the Secretary to award
grants to eligible intermediaries in accordance with subsection
(d).
(c) Grants to States.--
(1) In general.--Subject to paragraph (2), from the amount
made available for each fiscal year under subsection (b)(1),
the Secretary shall award grants to States, in accordance with
an allocation formula established by the Secretary, based on
the pro rata share of each State of the total need among all
States for an increased supply of affordable housing, as
determined on the basis of--
(A) the number and percentage of families in the
State that live in substandard housing;
(B) the number and percentage of families in the
State that pay more than 50 percent of their annual
income for housing costs;
(C) the number and percentage of persons living at
or below the poverty level in the State;
(D) the cost of developing or carrying out
substantial rehabilitation of housing in the State;
(E) the age of the multifamily housing stock in the
State; and
(F) such other factors as the Secretary determines
to be appropriate.
(2) Grant amount.--The amount of a grant award to a State
under this subsection shall be equal to the lesser of--
(A) 4 times the amount of assistance provided by
the State from non-Federal sources; and
(B) the allocation determined in accordance with
paragraph (1).
(3) Award of state allocation to certain entities.--
(A) In general.--If the amount provided by a State
from non-Federal sources is less than 25 percent of the
amount that would be awarded to the State under this
subsection based on the allocation formula described in
paragraph (1), then not later than 60 days after the
date on which the Secretary determines that the State
is not eligible for the full allocation determined
under paragraph (1), the Secretary shall publish a
notice regarding the availability of the funds for
which the State is ineligible.
(B) Applications.--Not later than 9 months after
the date of publication of a notice of funding
availability under subparagraph (A), a nonprofit or
public entity (or a consortium thereof, which may
include units of local government working together on a
regional basis) may submit to the Secretary an
application for the available assistance or a portion
of the available assistance, which application shall
include--
(i) a certification that the applicant will
provide assistance in an amount equal to 25
percent of the amount of assistance made
available to the applicant under this
paragraph; and
(ii) an allocation plan that meets the
requirements of paragraph (4)(B) for use or
distribution in the State of any assistance
made available to the applicant under this
paragraph and the assistance provided by the
applicant for purposes of clause (i).
(C) Award of assistance.--The Secretary shall award
the amount that is not awarded to a State by operation
of paragraph (2) to 1 or more applicants that meet the
requirements of subparagraph (B) of this paragraph that
are selected by the Secretary based on selection
criteria, established by regulation of the Secretary.
(4) Distribution to eligible entities.--
(A) In general.--Of the amount that a State
receives under a grant award under this subsection and
the assistance provided by the State from non-Federal
sources for purposes of paragraph (2)(A) to eligible
entities for the purpose of assisting those entities in
carrying out eligible activities in the State, the
State shall distribute--
(i) 75 percent to eligible entities for
eligible activities relating to the development
of affordable housing for rental by extremely
low-income families in the State; and
(ii) 25 percent to eligible entities for
eligible activities relating to the development
of affordable housing for rental by low-income
families in the State, or for homeownership
assistance for low-income families in the
State.
(B) Allocation plan.--Each State shall, after
giving notice to the public, an opportunity for public
comment, and consideration of public comments received,
establish an allocation plan for the distribution of
assistance under this paragraph, which plan shall be
submitted to the Secretary and shall be made available
to the public by the State, and which shall include--
(i) application requirements for eligible
entities seeking to receive assistance under
this paragraph, including a requirement that
each application include--
(I) a certification by the
applicant that any housing developed
with assistance under this paragraph
will remain affordable for extremely
low-income families or low-income
families, as applicable, for not less
than 40 years;
(II) a certification by the
applicant that the tenant contribution
towards rent for a family that resides
in a unit developed with assistance
under this paragraph will not exceed 30
percent of the adjusted income of that
family; and
(III) a certification by the
applicant that the owner of a project
in which any housing developed with
assistance under this paragraph is
located will make a percentage of units
in the project available to families
assisted under the voucher program
under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C.
1437f(o)) on the same basis as other
families eligible for the housing
(except that only the expected share of
rent of the voucher holder shall be
considered), which percentage shall not
be less than the percentage of the
total cost of developing or
rehabilitating the project that is
funded with assistance under this
paragraph; and
(ii) factors for consideration in selecting
among applicants that meet the application
requirements under clause (i), which factors
shall give preference to applicants based on--
(I) the amount of assistance for
the eligible activities leveraged by
the applicant from private and other
non-Federal sources, including
assistance made available under section
8 of the United States Housing Act of
1937 (42 U.S.C. 1437f) that is devoted
to the project in which the housing to
be developed with assistance under this
paragraph is located;
(II) the extent of local assistance
that will be provided in carrying out
the eligible activities, including--
(aa) financial assistance;
and
(bb) the extent to which
the applicant has worked with
the unit of local government in
which the housing will be
located to address issues of
siting and exclusionary zoning
or other policies that are
barriers to affordable housing;
(III) the degree to which the
development in which the housing will
be located is mixed-income;
(IV) whether the housing will be
located in a census tract in which the
poverty rate is less than 20 percent;
(V) whether the housing will be
located in a community undergoing
revitalization;
(VI) the extent of employment and
other opportunities for low-income
families in the area in which the
housing will be located; and
(VII) the extent to which the
applicant demonstrates the ability to
maintain units as affordable for
extremely low-income or low-income
families, as applicable, through the
use of assistance made available under
this paragraph, assistance leveraged
from non-Federal sources, assistance
made available under section 8 of the
United States Housing Act of 1937 (42
U.S.C. 1437f), State or local
assistance, programs to increase tenant
income, cross-subsidization, and any
other resources.
(C) Forms of assistance.--
(i) In general.--Assistance distributed
under this paragraph may be in the form of
capital grants, non-interest bearing or low-
interest loans or advances, deferred payment
loans, guarantees, and any other forms of
assistance approved by the Secretary.
(ii) Repayments.--If a State awards
assistance under this paragraph in the form of
a loan or other mechanism by which funds are
later repaid to the State, any repayments
received by the State shall be distributed by
the State in accordance with the allocation
plan described in subparagraph (B) during the
following fiscal year.
(D) Coordination with other assistance.--In
distributing assistance under this paragraph, each
State shall, to the maximum extent practicable,
coordinate the distribution with the provision of other
affordable housing assistance by the State, including--
(i) housing credit dollar amounts allocated
by the State under section 42(h) of the
Internal Revenue Code of 1986;
(ii) assistance made available under the
HOME Investment Partnerships Act (42 U.S.C.
12721 et seq.) or the community development
block grant program; and
(iii) private activity bonds.
(d) National Competition.--
(1) In general.--From the amount made available for each
fiscal year under subsection (b)(2), the Secretary shall award
grants on a competitive basis to eligible intermediaries, which
grants shall be used in accordance with paragraph (3) of this
subsection.
(2) Application requirements and selection criteria.--The
Secretary, by regulation, shall establish application
requirements and selection criteria for the award of
competitive grants to eligible intermediaries under this
subsection, which criteria shall include--
(A) the ability of the eligible intermediary to
meet housing needs of low-income families on a national
or regional scope;
(B) the capacity of the eligible intermediary to
use the grant award in accordance with paragraph (3),
based on the past performance and management of the
applicant; and
(C) the extent to which the eligible intermediary
has leveraged funding from private and other non-
Federal sources for the eligible activities.
(3) Use of grant award.--
(A) In general.--Except as provided in subparagraph
(B), of the amount of a grant made available under this
subsection, an eligible intermediary shall ensure
that--
(i) 75 percent shall be used for eligible
activities relating to the development of
affordable housing for rental by extremely low-
income families; and
(ii) 25 percent shall be used for eligible
activities relating to the development of
affordable housing for rental by low-income
families, or for homeownership assistance for
low-income families.
(B) Exception.--
(i) In general.--If a grant made available
under this subsection is used for a project
described in clause (ii), an eligible
intermediary may use that amount for eligible
activities relating to the development of
housing for rental by families whose incomes
are less than 60 percent of the area median
income, and for homeownership activities for
families whose incomes are less than 80 percent
of area median income.
(ii) Project contributing to a concerted
community revitalization plan.--A project is
described in this clause if--
(I) it is located in a community
undergoing concerted revitalization and
is contributing to a community
revitalization plan; and
(II) it is located in a census
tract in which--
(aa) the median household
income is less than 60 percent
of the area median income; or
(bb) the rate of poverty is
greater than 20 percent.
(C) Plan of use.--Each eligible intermediary that
receives a grant under this subsection shall establish
a plan for the use or distribution of the amount made
available under the grant, which plan shall be
submitted to the Secretary and shall include
information relating to the manner in which the
eligible intermediary will either use or distribute
that amount, including--
(i) a certification that assistance under
this subsection will be used to supplement
assistance leveraged from private and other
non-Federal sources, including assistance made
available under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) that is
devoted to the project in which the housing to
be developed is located;
(ii) a certification that local assistance
will be provided in carrying out the eligible
activities, which may include--
(I) financial assistance; and
(II) a good faith effort to work
with the unit of local government in
which the housing will be located to
address issues of siting and
exclusionary zoning or other policies
that are barriers to affordable
housing;
(iii) a certification that any housing
developed with assistance under this subsection
will remain affordable for extremely low-income
families or low-income families, as applicable,
for not less than 40 years;
(iv) a certification that any housing
developed by the applicant with assistance
under this subsection will be located--
(I) in a mixed-income development
in a census tract having a poverty rate
of not more than 20 percent, and near
employment and other opportunities for
low-income families; or
(II) in a community undergoing
revitalization;
(v) a certification that the tenant
contribution toward rent for a family residing
in a unit developed with assistance under this
paragraph will not exceed 30 percent of the
adjusted income of that family; and
(vi) a certification by the applicant that
the owner of a project in which any housing
developed with assistance under this subsection
is located will make a percentage of units in
the project available to families assisted
under the voucher program under section 8(o) of
the United States Housing Act of 1937 (42
U.S.C. 1437f(o)) on the same basis as other
families eligible for the housing (except that
only the expected share of rent of the voucher
holder shall be considered), which percentage
shall not be less than the percentage of the
total cost of developing or rehabilitating the
project that is funded with assistance under
this subsection.
(D) Forms of assistance.--
(i) In general.--An eligible intermediary
may distribute the amount made available under
a grant under this subsection in the form of
capital grants, non-interest bearing or low-
interest loans or advances, deferred payment
loans, guarantees, and other forms of
assistance.
(ii) Repayments.--If an eligible
intermediary awards assistance under this
subsection in the form of a loan or other
mechanism by which funds are later repaid to
the eligible intermediary, any repayments
received by the eligible intermediary shall be
distributed by the eligible intermediary in
accordance with the plan of use described in
subparagraph (C) during the following fiscal
year.
SEC. 7104. REGULATIONS.
Not later than 6 months after the date of enactment of this Act,
the Secretary of Housing and Urban Development shall promulgate
regulations to carry out this subtitle.
Subtitle C--Housing Preservation Matching Grants
SEC. 7201. SHORT TITLE.
This subtitle may be cited as the ``Housing Preservation Matching
Grant Act of 2001''.
SEC. 7202. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) more than 55,300 affordable housing dwelling units in
the United States have been lost through termination of low
income affordability requirements, which usually involves the
prepayment of the outstanding principal balance under the
mortgage on the project in which such units are located;
(2) more than 265,000 affordable housing dwelling units in
the United States are at risk of prepayment;
(3) the loss of the privately owned, federally assisted
affordable housing, which is occurring during a period when
rents for unassisted housing are increasing and few units of
additional affordable housing are being developed, will cause
unacceptable harm on current tenants of affordable housing and
will precipitate a national crisis in the supply of housing for
low-income households;
(4) the demand for affordable housing far exceeds the
supply of affordable housing, as evidenced by studies in 1998
that found that--
(A) 5,300,000 households (one-seventh of all
renters in the Nation) have worst-case housing needs;
and
(B) the number of families with at least one full-
time worker and having worst-case housing needs
increased from 1991 to 1995 by 265,000 to almost
1,400,000 (a 24 percent increase);
(5) the shortage of affordable housing in the United States
reached a record high in 1995, when the number of low-income
households exceeded the number of low-cost rental dwelling units by
4,400,000;
(6) between 1990 and 1995, the shortage of affordable
housing in the United States increased by 1,000,000 dwelling
units, as the supply of low-cost units decreased by 100,000 and
the number of low-income renter households increased by
900,000;
(7) there are nearly 2 low-income renters in the United
States for every low-cost rental dwelling unit;
(8) 2 of every 3 low-income renters receive no housing
assistance, and approximately 2,000,000 low-income households
remain on waiting lists for affordable housing;
(9) the shortage of affordable housing dwelling units
results in low-income households that are not able to acquire
low-cost rental units paying large proportions of their incomes
for rent; and
(10) in 1995, 82 percent of low-income renter households
were paying more than 30 percent of their incomes for rent and
utilities.
(b) Purposes.--The purposes of this subtitle are--
(1) to promote the preservation of affordable housing units
by providing matching grants to States that have developed and
funded programs for the preservation of privately owned housing
that is affordable to low-income families and persons and was
produced for such purpose with Federal assistance;
(2) to minimize the involuntary displacement of tenants who
are currently residing in such housing, many of whom are
elderly or disabled persons; and
(3) to continue the partnerships among the Federal
Government, State and local governments, and the private sector
in operating and assisting housing that is affordable to low-
income Americans.
SEC. 7203. DEFINITIONS.
For purposes of this subtitle, the following definitions shall
apply:
(1) Low-income affordability restriction.--The term ``low-
income affordability restriction'' means, with respect to a
housing project, any limitation imposed by regulation or
regulatory agreement on rents for tenants of the project, rent
contributions for tenants of the project, or income-eligibility
for occupancy in the project.
(2) Project-based assistance.--The term ``project-based
assistance'' has the same meaning as in section 16(c) of the
United States Housing Act of 1937 (42 U.S.C. 1437n(c)), except
that the term includes assistance under any successor program
to any program referred to in that section.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(4) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of the Northern
Mariana Islands, Guam, the Virgin Islands, American Samoa, and
any other territory or possession of the United States.
SEC. 7204. AUTHORITY.
The Secretary shall, to the extent that amounts are made available
pursuant to section 7211, make grants under this subtitle to States for
low-income housing preservation.
SEC. 7205. APPLICATIONS.
(a) In General.--Each State that seeks a grant under this subtitle
shall submit an application to the Secretary (through an appropriate
State agency) at such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
(b) Contents.--Each application submitted pursuant to subsection
(a) shall contain any information and certifications necessary for the
Secretary to determine whether the State is eligible to receive a grant
under this subtitle.
SEC. 7206. USE OF GRANTS.
(a) In General.--Amounts from grants made under this subtitle may
be used by States only for assistance for acquisition, preservation
incentives, operating costs, and capital expenditures for a housing
project that meets the requirements of subsection (b), (c), or (d).
(b) Projects With HUD-Insured Mortgages.--A project meets the
requirements of this subsection only if--
(1) the project is financed by a loan or mortgage that is--
(A) insured or held by the Secretary under section
221(d)(3) of the National Housing Act (12 U.S.C.
1715l(d)(3)) and the project is receiving loan
management assistance under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f) due to a
conversion from section 101 of the Housing and Urban
Development Act of 1965 (12 U.S.C. 1701s);
(B) insured or held by the Secretary and bears
interest at a rate determined under the proviso of
section 221(d)(5) of the National Housing Act (12
U.S.C. 1715l(d)(5));
(C) insured, assisted, or held by the Secretary or
a State or State agency under section 236 of the
National Housing Act (12 U.S.C. 1715z-1); or
(D) held by the Secretary and formerly insured
under a program referred to in subparagraph (A), (B),
or (C);
(2) with respect to the mortgage referred to in paragraph
(1), the project is subject to an unconditional waiver of--
(A) all rights to any prepayment of the mortgage;
and
(B) all rights to any voluntary termination of the
mortgage insurance contract for the mortgage; and
(3) the owner of the project has entered into binding
commitments (applicable to any subsequent owner) to extend all
low-income affordability restrictions for the project,
including any such restrictions imposed because of any contract
for project-based assistance for the project.
(c) Projects With Section 8 Project-Based Assistance.--A project
meets the requirements of this subsection only if--
(1) the project is subject to a contract for project-based
assistance; and
(2) the owner of the project has entered into binding
commitments (applicable to any subsequent owner)--
(A) to extend the project-based assistance for the
maximum period allowable under law (subject to the
availability of amounts for such purpose); and
(B) to extend any low-income affordability
restrictions applicable to the project in connection
with the project-based assistance.
(d) Projects Purchased by Residents.--A project meets the
requirements of this subsection only if the project--
(1) is or was eligible low-income housing (as defined in
section 229 of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4119); and
(2) has been purchased by a resident council for the
housing, or is approved by the Secretary for such purchase, for
conversion to homeownership housing under a resident
homeownership program meeting the requirements of section 226
of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4116).
(e) Combination of Assistance.--Notwithstanding subsection (a), any
project that is otherwise eligible for assistance with grant amounts
provided under this subtitle because the project meets the requirements
under subsection (b) or (c), and that also meets the requirements under
paragraph (1) of the other of such subsections, shall be eligible for
assistance under this subtitle only if the project complies with all of
the requirements under such other subsection.
SEC. 7207. GRANT AMOUNT LIMITATION.
The Secretary shall limit the portion of the aggregate amount of
grants under this subtitle made available for any fiscal year that may
be provided to a single State based upon the proportion of the need of
that State (as determined by the Secretary) for assistance under this
subtitle to the aggregate need among all States approved for assistance
under this subtitle for that fiscal year.
SEC. 7208. MATCHING REQUIREMENTS.
(a) In General.--The Secretary may not make a grant under this
subtitle to any State for any fiscal year in an amount that exceeds
twice the amount that the State certifies, as the Secretary shall
require, that the State will contribute for such fiscal year, or has
contributed since January 1, 2001, from non-Federal sources for the
purposes under section 7206(a).
(b) Treatment of Previous Contributions.--Any portion of amounts
contributed after January 1, 2001, that are counted for the purpose of
meeting the requirement under subsection (a) for a fiscal year may not
be counted for such purpose for any subsequent fiscal year.
(c) Treatment of Tax Credits.--Tax credits provided under section
42 of the Internal Revenue Code of 1986, and proceeds from the sale of
tax-exempt bonds by any State or local government entity shall not be
considered non-Federal sources for purposes of this section.
SEC. 7209. TREATMENT OF SUBSIDY LAYERING REQUIREMENTS.
Neither section 7208 nor any other provision of this subtitle may
be construed to prevent the use of tax credits provided under section
42 of the Internal Revenue Code of 1986, in connection with housing
assisted with grant amounts provided under this subtitle, to the extent
that such use is in accordance with section 102(d) of the Department of
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545(d))
and section 911 of the Housing and Community Development Act of 1992
(42 U.S.C. 3545 note).
SEC. 7210. REGULATIONS.
The Secretary may issue regulations to carry out this subtitle.
SEC. 7211. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for grants under this
subtitle such sums as are necessary for each of fiscal years 2002
through 2006.
TITLE VIII--SAFE START
Subtitle A--Promotion of Permanency for Children
SEC. 8001. REIMBURSEMENT FOR PREVENTIVE, PROTECTIVE, CRISIS,
PERMANENCY, INDEPENDENT LIVING, AND POST-PERMANENCY
SERVICES AND ACTIVITIES.
(a) In General.--Part E of title IV of the Social Security Act (42
U.S.C. 670 et seq.) is amended by inserting after section 474 the
following:
``SEC. 474A. PAYMENTS FOR PREVENTIVE, PROTECTIVE, CRISIS, PERMANENCY,
INDEPENDENT LIVING, AND POST-PERMANENCY SERVICES AND
ACTIVITIES.
``(a) In General.--In addition to any other payments made to a
State under this title, for each quarter beginning after September 30,
2001, the Secretary shall pay each State which has a plan approved
under this part and that opts to receives payments under this section,
a payment, subject to subsection (e), equal to the Federal medical
assistance percentage of the costs of providing the services and
activities described in subsection (b) in order to ensure that the
timelines set forth in section 475(5), as added by the Adoption and
Safe Families Act of 1997, can be honored and the goals of safety and
permanence for children will be realized.
``(b) Services and Activities Described.--The services and
activities described in this subsection are as follows:
``(1) Preventive, protective, and crisis services.--
``(A) In general.--Preventive, protective, and
crisis services for children and parents who come to
the attention of the State or a local agency and whose
cases are referred for assessment or investigation
because of a concern about the risk of abuse or
neglect.
``(B) Requirements.--In the case of services other
than investigation and assessment--
``(i) the agency and the parents must have
agreed to the provision of such services in the
case plan for the family; and
``(ii) funding for such services under this
part shall be provided for not more than 18
months within a 48 month period, consistent
with the exception provided in subsection (c).
``(2) Permanency services.--Permanency services for
children and parents to help ensure that when a child is placed
in foster care, prompt decisions can be made about the
appropriate permanency plan for the child, but only if the
agency and the parents have agreed to the provision of such
services to the parents in the case plan for the family and
funding for such services under this part (other than foster
care maintenance payments under section 472) will be provided
for not more than 18 months within a 48 month period,
consistent with the exception provided in subsection (c).
``(3) Post-permanency services.--
``(A) In general.--Post-permanency services for
children and their parents or other caregivers when
children have been in foster care funded under this
part and are returned to their birth families, are in
adoptive families, or are placed permanently with a
legal guardian or a fit and willing relative, if the
agency and the child's caregivers have agreed to the
provision of such services in the case plan for the
family, but only to the extent that--
``(i) with respect to such services for
children returned to their birth families, such
services are provided for not more than 18
months within a 48 month period, consistent
with the exception provided in subsection (c);
and
``(ii) with respect to such services for
children who are adopted from foster care or
placed permanently with a legal guardian or a
fit and willing relative, such services are
provided on an as-needed basis consistent with
the child and family service plan.
``(4) Application to certain children.--With respect to the
services described in paragraph (1), (2), or (3) that are
provided to children who have come to the attention of the
State or a local agency before the date of enactment of the
Leave No Child Behind Act of 2001, the 18-month time limit for
such services for such children shall commence on a date
determined by the State that is not more than 180 days after
such date of enactment.
``(5) Independent living services.--Independent living
services to help children who are likely to remain in foster
care until attaining 18 years of age and children who are
former foster care recipients who have not attained 21 years of
age make the transition to self-sufficiency by providing
services such as assistance in obtaining a high school diploma,
a General Equivalency Diploma, or post-secondary education or
training, career exploration, vocational training, job
placement and retention, training in daily living skills,
budgeting and financial management skills, substance abuse
prevention, preventive health activities, financial, housing,
counseling, personal or emotional support (through interaction
with dedicated adults), and other appropriate support services.
``(c) Safety Exception.--
``(1) In general.--Subject to paragraph (2), beginning with
fiscal year 2003, a State may exempt up to the number of
children and parents receiving any of the services described in
subsection (b) that equals 20 percent of the number of such
children and parents who received such services during the
preceding fiscal year, from the time limits specified for such
services in such subsection in order to help ensure that
children will be served safely and appropriately in accordance
with their individual needs.
``(2) Biennial review.--
``(A) Excepted cases.--A State shall biennially
review the cases excepted under paragraph (1), in
accordance with guidelines developed by the Secretary,
to ensure the continued appropriateness of the
exceptions and to determine the circumstances under
which such exceptions have been made, and shall report
the findings of the review to the Secretary. Such
report shall include a recommendation, if necessary,
that the Secretary allow the State to adjust the
maximum percentage for such exceptions to address
changed circumstances. A State may proceed in
accordance with the recommendation unless the Secretary
disapproves the recommendation within 60 days of the
receipt of the recommendation.
``(B) Foster care children.--In addition to the
review required under subparagraph (A), a State shall
biennially review, in accordance with guidelines
developed by the Secretary, the cases of children who
have remained in foster care and for which foster care
maintenance payments (as defined in section 474(4))
have been made for more than 18 months and submit a
report on such review to the Secretary. Such report
shall describe, with respect to each such child, the
child's age, special needs (if any), type of placement,
and the length of time that the child has been in
foster care.
``(C) Report.--Not later than January 1, 2006, and
January 1 of every other year thereafter, the Secretary
shall submit a report to Congress on the reviews and
recommendations required under subparagraphs (A) and
(B) for the preceding fiscal year. Such report shall
include a summary of the Secretary's findings on the
appropriateness of the safety exceptions and the
States' progress in meeting the needs of the children
who receive services or foster care for more than 18
months.
``(d) No Payment For Services Reimbursable under Title XIX.--No
payments may be made under this section for any services described in
subsection (b) that the State is reimbursed for under title XIX.
``(e) Maintenance of Effort.--A State may not receive payments
under this section unless, for fiscal year 2002 and each fiscal year
thereafter, the total State and local expenditures for services and
activities described in subsection (b) for that fiscal year equals or
exceeds the total of such expenditures for fiscal year 2001.''.
(b) State Plan Amendment.--Section 471(a) of such Act (42 U.S.C.
671(a)) is amended--
(1) in paragraph (23)(B), by striking ``and'' at the end;
(2) in paragraph (24), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(25) provides that the State shall describe--
``(A) prior to the beginning of a fiscal year, the
types of preventive, protective, crisis, permanency,
independent living, and post-permanency services that
the State expects to be made available under the plan
during that fiscal year;
``(B) the populations expected to be provided such
services during the fiscal year;
``(C) notwithstanding paragraph (3), the geographic
areas in the State in which the services are likely to
be available during the fiscal year;
``(D) the role of public and nonprofit private
agencies and community-based organizations referred to
in section 432(b)(1) in the planning and decisionmaking
regarding which such services would be provided during
the fiscal year and how the services to be provided
would promote safety and permanence for children; and
``(E) prior to the beginning of the third fiscal
year of implementation of such services, and prior to
the beginning of each fiscal year thereafter, what the
State proposes to do to reduce the length of time
families need to receive services from the State
agency.''.
SEC. 8002. CHILD AND FAMILY SERVICE PLAN AND CASE REVIEWS.
(a) In General.--Section 471(a)(16) of the Social Security Act (42
U.S.C. 671(a)(16)) is amended--
(1) by inserting ``(A)'' after ``(16)'';
(2) by adding ``and'' after the semicolon; and
(3) by adding at the end the following:
``(B)(i) provides for the development of a child and family
service plan and for case reviews by a citizen review board or
an administrative review body no less frequently than once
every 6 months for each child and family member receiving
preventive, protective, crisis, permanency, independent living,
or post-permanency services; and
``(ii) provides that each child and family service plan
developed under clause (i) shall describe the steps taken to
assure the safety of the child, provide the services that are
needed and, where applicable, have been agreed to by the agency
and the parent, the extent of progress that has been made
toward meeting the service needs of the child and the family,
and the continuing necessity for and appropriateness of the
services being provided with respect to--
``(I) each child, parent, or caregiver who comes to
the attention of the State agency and whose case is
referred for assessment or investigation because of a
concern about the risk of abuse or neglect, and who
receives preventive, protective, crisis, permanency,
independent living, or post-permanency services under
this part; and
``(II) each child, parent, or caregiver who
receives post-permanency services under this part when
a child is returned to the birth family, placed in an
adoptive family, or placed permanently with a legal
guardian or a fit and willing relative.''
(b) Effective Date.--The amendments made by this section take
effect on October 1, 2001.
SEC. 8003. KINSHIP GUARDIANSHIP ASSISTANCE PAYMENTS FOR CHILDREN.
(a) In General.--Part E of title IV of the Social Security Act (42
U.S.C. 670 et seq.) is amended by inserting after section 472 the
following:
``SEC. 472A. KINSHIP GUARDIANSHIP ASSISTANCE PAYMENTS FOR CHILDREN.
``(a) In General.--Each State with a plan approved under this part
may, at State option, enter into kinship guardianship assistance
agreements to provide kinship guardianship assistance payments on
behalf of children to grandparents and other relatives who have assumed
legal guardianship (as defined in section 475(7)) of the children for
whom they have cared as foster parents and for whom they have committed
to care for on a permanent basis.
``(b) Kinship Guardianship Assistance Agreement.--
``(1) In general.--In order to receive payments under this
section, a State shall--
``(A) negotiate and enter into a written, binding,
kinship guardianship assistance agreement with the
prospective relative guardian of a child that meets the
requirements of this subsection; and
``(B) provide the prospective relative guardian
with a copy of the agreement.
``(2) Minimum requirements.--The agreement shall specify,
at a minimum--
``(A) the amount of, and manner in which, each
kinship guardianship assistance payment will be
provided under the agreement;
``(B) the additional services and assistance that
the child and relative guardian will be eligible for
under the agreement;
``(C) the procedure by which the relative guardian
may apply for additional services as needed, provided
the agency and relative guardian agree on the
additional services as specified in the case plan; and
``(D) subject to paragraph (3), that the State will
pay the total cost of nonrecurring expenses associated
with obtaining legal guardianship of the child.
``(2) Interstate application.--The agreement shall
provide--
``(A) that the agreement shall remain in effect
without regard to the State residency of the kinship
guardian; and
``(B) for the protection of the interests of the
child in any case where the kinship guardian and the
child move to another State while the agreement is in
effect.
``(3) No affect on federal reimbursement.--Nothing in
paragraph (1)(D) shall be construed as affecting the ability of
the State to obtain reimbursement from the Federal Government
for costs described in that paragraph.
``(c) Kinship Guardianship Assistance Payment.--
``(1) In general.--The kinship guardianship assistance
payment shall be based on consideration of the needs of the
relative guardian and of the child and shall be at least equal
to the amount of the foster care maintenance payment for which
the child would have been eligible if the child remained in
foster care. The payment may be readjusted periodically based
on relevant changes in such needs.
``(2) Limitation.--
``(A) In general.--Except as provided in
subparagraph (B), no kinship guardianship assistance
payment may be made to a relative guardian for any
child who has attained age 18.
``(B) Exceptions.--A kinship guardianship
assistance payment may be made to a relative guardian
with respect to a child who--
``(i) is a full-time student in a secondary
school or in the equivalent level of a
vocational or technical training program and
has not attained age 19; or
``(ii) with respect to a child who the
State determines has a mental or physical
disability that warrants the continuation of
assistance to age 21.
``(d) Child's Eligibility for a Kinship Guardianship Assistance
Payment.--
``(1) In general.--A child is eligible for a kinship
guardianship assistance payment under this section if the State
agency determines the following:
``(A) The child has been--
``(i) removed from his or her home pursuant
to a voluntary placement agreement or as a
result of a judicial determination to the
effect that continuation in the home would be
contrary to the welfare of the child; and
``(ii) under the care of the State agency
for the 12-month period ending on the date of
such agency determination.
``(B) Being returned home or adopted are not
appropriate permanency options for the child.
``(C) The child demonstrates a strong attachment to
the prospective relative guardian and the relative
guardian has a strong commitment to caring permanently
for the child.
``(D) With respect to a child who has attained age
14, the child has been consulted regarding the kinship
guardianship arrangement.
``(2) Treatment of siblings.--With respect to a child who
is described in paragraph (1) whose sibling or siblings are not
so described--
``(A) the child and any sibling of the child may be
placed in the same kinship guardianship arrangement if
the State agency and the relative agree on the
appropriateness of the arrangement for the siblings;
and
``(B) kinship guardianship assistance payments may
be paid for the child and each sibling so placed.''.
(b) Conforming Amendments.--
(1) State plan requirement.--Section 471(a)(20) of such Act
(42 U.S.C. 671(a)(20) is amended by striking ``before the
foster or adoptive parent may be finally approved for placement
of a child on whose behalf foster care maintenance payments or
adoption assistance payments'' and inserting ``or relative
guardian before the foster or adoptive parent or relative
guardian may be finally approved for placement of a child on
whose behalf foster care maintenance payments, adoption
assistance payments, or kinship guardianship assistance
payments''.
(2) Definitions.--Section 475(1) of such Act (42 U.S.C.
675(1)) is amended by adding at the end the following:
``(F) In the case of a child with respect to whom
the permanency plan is placement with a relative and
receipt of kinship guardianship assistance payments
under section 472A, a description of--
``(i) the steps that the agency has taken
to determine that it is not appropriate for the
child to be returned home or adopted;
``(ii) the reasons why a permanent
placement with a fit and willing relative
through a kinship guardianship assistance
arrangement is in the child's best interests;
``(iii) the ways in which the child meets
the eligibility requirements for a kinship
guardianship assistance payment;
``(iv) the efforts the agency has made to
discuss adoption by the child's relative foster
parent as a more permanent alternative to legal
guardianship and, in the case of a relative
foster parent who has chosen not to pursue
adoption, documentation of the reasons why; and
``(v) the efforts made by the State agency
to secure the consent of the child's parent or
parents to the kinship guardianship assistance
arrangement, or the reasons why such efforts
were not made.''.
SEC. 8004. ELIMINATION OF FINANCIAL ELIGIBILITY REQUIREMENT FOR FOSTER
CARE MAINTENANCE AND ADOPTION ASSISTANCE PAYMENTS.
(a) Foster Care Maintenance Payments.--Section 472(a) of the Social
Security Act (42 U.S.C. 672(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``would have met the requirements of section 406(a) (as so in
effect) or of section 407 (as such sections were in effect on
July 16, 1996) but for his removal from the home of a relative
(specified in section 406(a)),'' and inserting ``has been
removed from his or her home'';
(2) in paragraph (2), by adding ``and'' at the end;
(3) in paragraph (3), by striking ``; and'' and inserting a
period;
(4) by striking paragraph (4); and
(5) by striking the last 2 sentences of that section.
(b) Adoption Assistance Payments.--Section 473(a)(2) of the Social
Security Act (42 U.S.C. 673(a)(2)) is amended--
(1) in subparagraph (A)(i)--
(A) by striking ``met the requirements of section
406(a) or section 407 (as such sections were in effect
on July 16, 1996) or would have met such requirements
except for his removal from the home of a relative
(specified in section 406(a) (as so in effect))'' and
inserting ``has been removed from his or her home'';
and
(B) by striking ``(or 403 (as such section was in
effect on July 16, 1996))'';
(2) in subparagraph (A)(iii), by adding ``and'' at the end;
(3) by striking subparagraph (B);
(4) by redesignating subparagraph (C) as subparagraph (B);
and
(5) by striking ``The last sentence of section 472(a)'' and
all that follows and inserting ``Any child who meets the
requirements of subparagraph (B), who was determined eligible
for adoption assistance payments under this part with respect
to a prior adoption, who is available for adoption because the
prior adoption has been dissolved and the parental rights of
the adoptive parents have been terminated or because the
child's adoptive parents have died, and who fails to meet the
requirements of subparagraph (A) but would meet such
requirements if the child were treated as if the child were in
the same circumstances the child was in the last time the child
was determined eligible for adoption assistance payments under
this part and the prior adoption were treated as never having
occurred, shall be treated as meeting the requirements of this
paragraph for purposes of paragraph (1)(B)(ii).''.
SEC. 8005. ESTABLISHMENT OF UNIFORM FEDERAL MATCHING RATE.
(a) In General.--Section 474(a) of the Social Security Act (42
U.S.C. 674(a)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``of--'' and inserting ``of the
following:'';
(B) by striking ``(1) an amount'' and all that
follows through the end of paragraph (3) and inserting
the following:
``(1) The Federal medical assistance percentage (as defined
in section 1905(b)) of each of the following:
``(A) The total amount expended during such quarter
as foster care maintenance payments under section 472
for children in foster family homes or child-care
institutions.
``(B) The total amount expended during such quarter
as kinship guardianship assistance payments under
section 472A for children with a kinship guardianship
assistance agreement.
``(C) The total amount expended during such quarter
as adoption assistance payments under section 473
pursuant to adoption assistance agreements.
``(D) Subject to paragraph (3), the total amount
expended during such quarter for preventive,
protective, crisis, permanency, independent living, and
post-permanency services and activities under section
474A.
``(E) The total amounts expended during such
quarter as found necessary by the Secretary for the
provision of child placement services and for the
proper and efficient administration of the State plan.
``(F) The total amounts expended during such
quarter as found necessary by the Secretary for the
training of--
``(i) personnel employed or preparing for
employment by the State agency or by the local
agency administering the plan in the political
subdivision (including short- and long-term
training at educational institutions through
grants to such institutions or by direct
financial assistance to students enrolled in
such institutions);
``(ii) current or prospective foster or
adoptive parents and the members of the staff
of State-licensed or State-approved child care
institutions providing care to foster and
adopted children receiving assistance under
this part, in ways that increase the ability of
such current or prospective parents, staff
members, and institutions to provide support
and assistance to foster and adopted children,
whether incurred directly by the State or by
contract but only for such expenditures
(including travel and per diem expenses) that
are incurred for short-term training;
``(iii) the staff of private State licensed
or State approved child welfare agencies that
provide preventive, crisis, protective
permanency, post-permanency, and independent
living services or care to foster and adopted
children and children with relative guardians
who are eligible for assistance under this part
(including joint training and cross training of
such staff);
``(iv) court staff, including judges,
judicial personnel, law enforcement personnel,
agency attorneys, attorneys representing
parents in proceedings conducted by or under
the supervision of an abuse or neglect court,
attorneys representing children in such
proceedings, guardian ad litems, volunteers who
participate in court-appointed special advocate
(CASA) programs, and citizen review board
members when under court auspices to keep
children safe and provide permanent families
for children, but only to the extent that any
training offered to judges or any judicial
personnel is offered by, or under contract
with, the State or local agency in
collaboration with the judicial conference or
other appropriate judicial governing body
operating in the State; and
``(v) staff employed by State, local, or
private nonprofit substance abuse prevention
and treatment agencies, mental health
providers, domestic violence prevention and
treatment providers, health agencies, child
care agencies, schools, and community service
agencies that are collaborating with the State
or local agency administering the State plan
under this part to keep children safe and
provide permanent families for children, including adoptive families.
``(G) The total amounts expended during such
quarter as found necessary by the Secretary for the
planning, design, development, installation, or
operation of statewide mechanized data collection and
information retrieval systems (including expenditures
for hardware components for such systems) but only to
the extent that such systems--
``(i) meet the requirements imposed by
regulations promulgated pursuant to section
479(b)(2);
``(ii) to the extent practicable, are
capable of interfacing with the State data
collection system that collects information
relating to child abuse and neglect; and
``(iii) are determined by the Secretary to
be likely to provide more efficient,
economical, and effective administration of the
programs carried out under a State plan
approved under part B or this part.'';
(2) in paragraph (4)--
(A) by striking ``the lesser'' and inserting ``The
lesser''; and
(B) by redesignating such paragraph as paragraph
(2); and
(3) by adding at the end the following new paragraph:
``(3) With respect to a State that elects to provide
preventive, protective, crisis, permanency, independent living,
and post-permanency services and activities under section 474A,
that begins the process for accreditation of the State agency
administering the program under this part within 3 years after
the date of enactment of the Leave No Child Behind Act of 2001,
and that has such State agency accredited by a nationally
recognized accrediting agency approved by the Secretary to
provide such accreditation, the Federal medical assistance
percentage for the State shall be increased by 1 percentage
point a year for each of the 4 consecutive years in which the
agency is so accredited for purposes of making the payments
described in paragraph (1)(D), beginning with the first fiscal
year quarter that begins after the State submits to the
Secretary evidence of such accreditation.''.
(b) Conforming Amendments.--
(1) Section 473(a)(6)(B) of such Act (42 U.S.C.
673(a)(6)(B)) is amended by striking ``474(a)(3)(E)'' and
inserting ``474(a)(1)(E)''.
(2) Section 477(h) of such Act (42 U.S.C. 677(h)) is
amended by striking ``474(a)(4)'' and inserting ``474(a)(2)''.
SEC. 8006. ELIMINATION OF DISINCENTIVE FOR FOSTER PARENTS TO ADOPT
CHILDREN WITH SPECIAL NEEDS WHO HAVE BEEN IN THEIR FOSTER
CARE.
The last sentence of section 473(a)(3) of the Social Security Act
(42 U.S.C 673(a)(3)) is amended to read as follows: ``However, an
adoptive parent shall be eligible to receive an adoption assistance
payment under clause (ii) of paragraph (1)(B) that is at least equal to
the foster care maintenance payment which would have been paid during
the period if the child with respect to whom the adoption assistance
payment is made had been in a foster family home.''.
SEC. 8007. EXTENSION OF ADOPTION ASSISTANCE PAYMENTS.
Section 473(a)(4) of the Social Security Act (42 U.S.C. 673(a)(4))
is amended by striking ``(or,'' and inserting ``(or, in the case of a
child who is a full-time student in a secondary school or in the
equivalent educational level of a vocational or technical training
program, the age of nineteen, or''.
SEC. 8008. REIMBURSEMENT FOR ROOM AND BOARD IN FOSTER FAMILY HOMES,
CHILD CARE INSTITUTIONS, OR SUPERVISED LIVING
ARRANGEMENTS FOR YOUNG PEOPLE AGING OUT OF FOSTER CARE.
Section 472 of the Social Security Act (42 U.S.C. 672) is amended
by adding at the end the following:
``(i)(1) Notwithstanding any other provision of this part, a State
may make foster care maintenance payments (as defined in section
475(4)) under this section on behalf of eligible individuals described
in paragraph (2) for reimbursement of room and board expenses incurred
for such individuals in a foster family home, child care institution,
or other supervised living arrangement as approved by the State agency,
in order to assist such individuals to leave foster care and transition
to self-sufficiency.
``(2) An eligible individual described in this paragraph is an
individual who--
``(A) was in foster care on the date that the individual
attained age 17 and had been in foster care for at least 1 year
prior to that date;
``(B) has not attained age 22;
``(C) is in the process of completing secondary education,
enrolled in an institution that provides postsecondary
education or vocational training, or is employed for at least
80 hours per month;
``(D) is participating in independent living activities of
the type that may be supported under the John H. Chafee Foster
Care Independence Program under section 477; and
``(E) has a case plan that includes a specific plan for how
the individual will achieve independent living and that
provides for the individual to reside in a setting that
promotes personal responsibility and encourages self-
sufficiency.
``(3)(A) A State may not receive payments under section
474(a)(1)(A) for expenditures under this subsection unless with respect
to fiscal year 2002 and each fiscal year thereafter, the total Federal,
State, and local expenditures for reimbursements described in paragraph
(1) in the State (or for related independent living services) equals or
exceeds the total of such expenditures for fiscal year 2001.
``(B) The amount of total Federal, State, and local expenditures
required under subparagraph (A) to be maintained for a fiscal year may
be reduced appropriately if the total Federal expenditures for that
fiscal year are less than such the amount of such expenditures for
fiscal year 2001.
``(4) With respect to a fiscal year, a State that makes foster care
maintenance payments under this subsection shall submit to the
Secretary an annual report that includes the following:
``(A) The number of eligible individuals described in
paragraph (2) who received foster care maintenance payments
under this subsection and the nature of the settings in which
such individuals were housed.
``(B) A description of the steps being undertaken in the
State to promote housing opportunities for individuals
transitioning from foster care after attaining age 18 and for
individuals that have already transitioned out of foster care
as a result of age.
``(C) Recommendations regarding the types of Federal
assistance that would assist the State to better meet the
housing need of the individuals described in subparagraph
(B).''.
SEC. 8009. FUNDING FOR VOUCHERS TO ASSIST YOUNG PEOPLE AGING OUT OF
FOSTER CARE MAKE THE TRANSITION TO SELF-SUFFICIENCY.
Section 477 of the Social Security Act (42 U.S.C. 677) is amended
by adding at the end the following:
``(i) Vouchers To Assist the Transition to Self-Sufficiency.--
``(1) Grants to states.--
``(A) In general.--Notwithstanding any other
provision of this part, and in addition to payments
made to a State under section 474(a)(2), the Secretary
shall make grants to States for vouchers to help
eligible individuals described in paragraph (2) make
the transition to self-sufficiency.
``(B) Application.--A State that desires to receive
a grant under this subsection shall submit an
application to the Secretary at such time, and in such
form and manner as the Secretary shall require.
``(C) Competitive grants.--The Secretary shall
award grants to States under this subsection on a
competitive basis, based on criteria established by the
Secretary.
``(2) Eligible individuals described.--An eligible
individual described in this paragraph is an individual who--
``(A) is described in section 472(i)(2); or
``(B) has been adopted from foster care, or placed
with a relative with a kinship guardianship assistance
agreement, on or after the individual's 16th birthday
and has not yet attained age 22.
``(3) Voucher requirements.--A State receiving a grant
under this subsection shall use the funds provided under the
grant to provide a voucher of up to $5000 per year for the
costs incurred by an eligible individual described in paragraph
(2) who applies for the voucher of obtaining--
``(A) a General Equivalency Diploma (and related
supports provided to assist an eligible individual in
obtaining such a degree);
``(B) a post-secondary education; or
``(C) vocational training.
``(4) Matching requirement.--A State may not receive a
grant under this subsection unless the State agrees to provide
$1 for every $3 awarded under the grant.
``(5) Maintenance of effort requirement.--A State may not
receive a grant under this subsection unless with respect to
fiscal year 2002 and each fiscal year thereafter, the total
State, and local expenditures for vouchers described in
paragraph (3) in such State (or for similar expenditures)
equals or exceeds the total of such expenditures for fiscal
year 2001.
``(6) Annual report.--Each State that receives a grant
under this subsection shall submit an annual report to the
Secretary that includes the following:
``(A) The number of eligible individuals described
in paragraph (2) who received vouchers during the year
involved, the nature of the activities that were
supported by the vouchers, and a description of the
institutions where the vouchers were used.
``(B) The number of individuals who applied for a
voucher funded under this section during such year,
were determined to be eligible for a voucher, but did
not receive a voucher because funding was not
available.
``(C) A description of other steps being undertaken
in the State to promote educational and training
opportunities for individuals who are in foster care
and are about to age out of such care and for
individuals who have aged out of foster care.
``(D) Recommendations regarding the types of
Federal assistance that would assist the State to
better meet the educational and training needs of
individuals described in subparagraph (C).
``(7) Authorization of appropriations.--To carry out this
section, there are authorized to be appropriated to the
Secretary $120,000,000 for each of fiscal years 2002 through
2006.''.
SEC. 8010. ADDITIONAL ACCOUNTABILITY.
Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as
amended by section 8001(b), is amended--
(1) in paragraph (24), by striking ``and'' at the end;
(2) in paragraph (25)(E), by striking the period and
inserting a semicolon;
(3) by adding at the end the following:
``(26) provides that, beginning with January 1, 2004, and
each January 1 thereafter, the State agency shall prepare and
submit to the Secretary, and make available to the public,
including through posting on the State agency's Internet
website, a report that, with respect to the 2 preceding fiscal years
that are the subject of the report, describes--
``(A) how the funding made available under section
474A has been used;
``(B) the impact that the services and activities
undertaken with such funding has had on--
``(i) preventing the abuse and neglect and
repeat abuse and neglect of children;
``(ii) preventing the entry and re-entry of
children into foster care;
``(iii) decreasing the length of stay of
children in foster care in the State; and
``(iv) promoting permanent placements for
children;
``(C) efforts by the State agency to improve the
quality and retention of supervisors and staff who are
delivering services under the State plan approved under
this part, directly or under contract, and to improve
the workloads of staff;
``(D) efforts by the State agency or local agencies
to use community partners to promote safety and
permanence for children, including a description of--
``(i) collaborative work with substance
abuse, mental health, health, or domestic
violence agencies or providers to address the
needs of the families assisted under this part;
``(ii) the involvement of community-based
organizations with the State agency;
``(iii) how parents are engaged in the
delivery of services; and
``(iv) efforts to utilize family team
meeting, family group decisionmaking, or other
activities that build on family strengths and
address what families need;
``(E) the procedures that are in place to ensure
that children who are returned home or placed in other
permanent settings receive the support they need to
remain home or in such a setting; and
``(F) the status of the State's most recent child
and family services review and its program improvement
plan activities, if applicable; and
``(27) provides that, beginning on January 1, 2004, the
independent body charged with reviewing cases of children (such
as a court, citizen review board, or independent administrative
review body) biannually shall submit a report to the Secretary,
in such form and manner as the Secretary shall require, that
describes--
``(A) the status of children in the State, as
reflected in the reviews conducted by such body;
``(B) the barriers to moving children in the State
in accordance with the permanency plans for such
children; and
``(C) recommendations for the amount of resources,
fiscal and otherwise, that are needed to better meet
the goals of safety and permanence for children
established in the Adoption and Safe Families Act of
1997.''.
SEC. 8011. AUTHORITY OF INDIAN TRIBES TO RECEIVE FEDERAL FUNDS FOR
FOSTER CARE AND ADOPTION ASSISTANCE.
(a) Children Placed in Tribal Custody Eligible for Foster Care
Funding.--Section 472(a)(2) of the Social Security Act (42 U.S.C.
672(a)(2)) is amended--
(1) by striking ``or (B)'' and inserting ``(B)''; and
(2) by inserting before the semicolon the following: ``, or
(C) an Indian tribe (as defined in section 479B(e)) or an
intertribal consortium if the Indian tribe or consortium is not
operating a program pursuant to section 479B and (i) has a
cooperative agreement with a State pursuant to section 479B(c)
or (ii) submits to the Secretary a description of the
arrangements (jointly developed or developed in consultation
with the State) made by the Indian tribe or consortium for the
payment of funds and the provision of the child welfare
services and protections required by this title''.
(b) Programs Operated by Indian Tribal Organizations.--Part E of
title IV of the Social Security Act (42 U.S.C. 670 et seq.) is amended
by adding at the end the following:
``SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL ORGANIZATIONS.
``(a) Application.--Except as provided in subsection (b), this part
shall apply to an Indian tribe that elects to operate a program under
this part in the same manner as this part applies to a State.
``(b) Modification of Plan Requirements.--
``(1) In general.--In the case of an Indian tribe
submitting a plan for approval under section 471, the plan
shall--
``(A) in lieu of the requirement of section
471(a)(3), identify the service area or areas and
population to be served by the Indian tribe; and
``(B) in lieu of the requirement of section
471(a)(10), provide for the approval of foster homes
pursuant to tribal standards and in a manner that
ensures the safety of, and accountability for, children
placed in foster care.
``(2) Determination of federal share.--
``(A) Per capita income.--
``(i) In general.--For purposes of
determining the Federal medical assistance
percentage applicable to an Indian tribe
eligible for payments under section 474(a), the
calculation of an Indian tribe's per capita
income shall be based upon the service
population of the Indian tribe as defined in
its plan in accordance with paragraph (1)(A).
``(ii) Consideration of other
information.--An Indian tribe may submit to the
Secretary such information as the Indian tribe
considers relevant to the calculation of the per capita income of the
Indian tribe, and the Secretary shall consider such information before
making the calculation.
``(B) Sources of non-federal share.--An Indian
tribe may use Federal or State funds to match payments
for which the Indian tribe is eligible under section
474.
``(3) Modification of other requirements.--Upon the request
of an Indian tribe or tribes, the Secretary may modify any
requirement under this part if, after consulting with the
Indian tribe or tribes, the Secretary determines that
modification of the requirement would advance the best
interests and the safety of children served by the Indian tribe
or tribes.
``(4) Consortium.--The participating Indian tribes of an
intertribal consortium may develop and submit a single plan
under section 471 that meets the requirements of this section.
``(c) Cooperative Agreements.--An Indian tribe or intertribal
consortium and a State may enter into a cooperative agreement for the
administration or payment of funds pursuant to this part. In any case
where an Indian tribe or intertribal consortium and a State enter into
a cooperative agreement that incorporates any of the provisions of this
section, those provisions shall be valid and enforceable. Any such
cooperative agreement that is in effect as of the date of enactment of
this section, shall remain in full force and effect subject to the
right of either party to the agreement to revoke or modify the
agreement pursuant to the terms of the agreement.
``(d) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall, in full consultation
with Indian tribes and tribal organizations, promulgate regulations to
carry out this section.
``(e) Definitions of Indian Tribe; Tribal Organizations.--In this
section, the terms `Indian tribe' and `tribal organization' have the
meanings given those terms in subsections (e) and (l) of section 4 of
the Indian Self-Determination and Education Assistance Act (25 U.S.C.
450b), respectively.''.
(c) Effective Date.--The amendments made by this section take
effect on the date of enactment of this Act without regard to
regulations to implement such amendments being promulgated by such
date.
Subtitle B--Promoting Safe and Stable Families
SEC. 8101. EXPANSION OF THE PROMOTING SAFE AND STABLE FAMILIES PROGRAM.
(a) Reauthorization and Increase in Funding.--Section 430(b) of the
Social Security Act (42 U.S.C. 629(b)) is amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(9) for each of fiscal years 2002 through 2006,
$705,000,000.''.
(b) Continuation of Reservation of Funds for Evaluation, Research,
Training, and Technical Assistance.--Section 430(d)(1) of the Social
Security Act (42 U.S.C. 629(d)(1)) is amended by striking ``, 1996,
1997, 1998, 1999, 2000, and 2001'' and inserting ``through 2006''.
(c) Increase in Reservation of Funds for State Court Assessments.--
Section 430(d)(2) of the Social Security Act (42 U.S.C. 629(d)(2)) is
amended--
(1) by striking ``and'' after ``1995,''; and
(2) by striking ``, 1997, 1998, 1999, 2000, and 2001,'' and
inserting ``through 2001, $15,000,000 of the amounts so
described for each of fiscal years 2002 and 2003, and
$20,000,000 of the amounts so described for each of fiscal
years 2004 through 2006,''.
(d) Increase in Reservation of Funds for Indian Tribes.--Section
430(d)(3) of the Social Security Act (42 U.S.C. 629(d)(3)) is amended
by striking ``1 percent'' and inserting ``3 percent''.
Subtitle C--Social Services Block Grant
SEC. 8201. SHORT TITLE.
This subtitle may be cited as the ``Social Services Block Grant
Restoration Act of 2001''.
SEC. 8202. FINDINGS.
Congress makes the following findings:
(1) Since 1975, title XX of the Social Security Act (42
U.S.C. 1397 et seq.), commonly referred to as the Social
Services Block Grant (in this section referred to as ``SSBG''),
has authorized funding for social services to ensure that at-
risk children and families, the elderly, and physically and
mentally disabled individuals remain stable, independent, and
economically self sufficient. In 1981, Congress and the Reagan
Administration converted SSBG into a block grant designed to
give maximum flexibility to States to serve these fundamental
purposes.
(2) Funds provided under the SSBG focus cost-effective
support at the community level that prevents the need for
inappropriate institutional care which is more costly for
Federal and State programs such as the medicaid, medicare, and
the social security disability benefits programs.
(3) The SSBG helps to further the goals set forth in the
Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 (Public Law 104-193; 110 Stat. 2105) by supporting the
Temporary Assistance to Needy Families program (TANF) and
support-related programs such as on-the-job training, child
care, transportation, counseling, and other services that
facilitate long-term family stability and economic self-
sufficiency.
(4) The SSBG provides essential funding to many States for
child welfare services that support the goals of the Adoption
and Safe Families Act of 1997 (Public Law 105-89; 111 Stat.
2115) to promote a safe family environment and encourage
adoption to move children into stable and permanent families.
(5) The SSBG helps promote independent living for
vulnerable and low-income elderly individuals by supporting
home care services, including home-delivered meals, adult
protective services, adult day care, and other essential case
management services provided in every State.
(6) It is reported that 820,000 older Americans are abused
and neglected in this country each year. There are additional
concerns about the under reporting of elderly abuse and
neglect. The SSBG supports adult protective services that
prevent widespread abuse and neglect of older Americans and
help more than 651,000 elderly individuals in 31 States.
(7) More than 570,000 disabled individuals receive a range
of community-based services and supports nationwide. The SSBG
provides significant resources to fill the funding gaps in the
developmental disabilities system by supporting such services
as early intervention and crisis intervention, adult day care,
respite care, transportation, employment training, and
independent living services in 38 States.
(8) The SSBG supports essential mental health and related
services to ensure that vulnerable adults and children receive
early intervention to prevent more serious and costly mental
health crises in the future. Such services include the
provision of counseling to almost 400,000 adults and children,
case management services for nearly 900,000 families, and the
provision of information and referral assistance to more than
1,300,000 individuals.
(9) There are nearly 3,000,000 reports of child abuse and
neglect each year. There are currently over 300,000 children in
the American foster care system. The SSBG enables the provision
of child protective services to 1,300,000 children, adoption
services to over 150,000 children and families, and prevention
and intervention services to more than 700,000 families.
(10) The SSBG has been eroded by more than $1,000,000,000
over the last 6 years resulting in cuts in services in many
States and local communities.
(11) Temporary Assistance to Needy Families (TANF) block
grants cannot be used to make up cuts to the SSBG because a
large percentage of SSBG funds are used for the elderly,
disabled, and other populations that are ineligible for TANF
funds.
(12) The 104th Congress made a commitment to the SSBG in
the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (Public Law 104-193; 110 Stat. 2105) by authorizing
the program at $2,380,000,000 through fiscal year 2002 and
returning the authorization for the program to $2,800,000,000
in fiscal year 2003 and each succeeding fiscal year.
SEC 8203. RESTORATION OF AUTHORITY TO TRANSFER UP TO 10 PERCENT OF TANF
FUNDS TO THE SOCIAL SERVICES BLOCK GRANT.
(a) In General.--Section 404(d)(2) of the Social Security Act (42
U.S.C. 604(d)(2)) is amended to read as follows:
``(2) Limitation on amount transferable to title xx
programs.--A State may use not more than 10 percent of the
amount of any grant made to the State under section 403(a) for
a fiscal year to carry out State programs pursuant to title
XX.''.
(b) Effective Date.--The amendment made by subsection (a) applies
to amounts made available for fiscal year 2002 and each fiscal year
thereafter.
SEC. 8204. RESTORATION OF FUNDS FOR THE SOCIAL SERVICES BLOCK GRANT.
(a) In General.--Section 2003(c) of the Social Security Act (42
U.S.C. 1397b(c)) is amended--
(1) in paragraph (10), by striking ``and'' at the end; and
(2) by striking paragraph (11) and inserting the following
new paragraphs:
``(11) $1,725,000,000 for the fiscal year 2001; and
``(12) $2,380,000,000 for the fiscal year 2002 and each
fiscal year thereafter.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect as if included in the enactment of the Departments of
Labor, Health and Human Services, and Education, and Related Agencies
Appropriations Act, 2001 (as enacted into law by section 1(a)(1) of
Public Law 106-554).
SEC. 8205. REQUIREMENT TO SUBMIT ANNUAL REPORT ON STATE ACTIVITIES.
(a) In General.--Section 2006(c) of the Social Security Act (42
U.S.C. 1397e(c)) is amended by adding at the end the following new
sentence: ``The Secretary shall compile the information submitted by
the States and submit that information to Congress on an annual
basis.''.
(b) Effective Date.--The amendment made by subsection (a) applies
to information submitted by States under section 2006 of the Social
Security Act (42 U.S.C. 1397e) with respect to fiscal year 2001 and
each fiscal year thereafter.
Subtitle D--Child Protection and Alcohol and Drug Partnerships
SEC. 8301. SHORT TITLE.
This subtitle may be cited as the ``Child Protection/Alcohol and
Drug Partnership Act of 2001''.
SEC. 8302. CHILD PROTECTION/ALCOHOL AND DRUG PARTNERSHIPS FOR CHILDREN.
Part B of title IV of the Social Security Act (42 U.S.C. 620 et
seq.) is amended by adding at the end the following:
``Subpart 3--Child Protection/Alcohol and Drug Partnerships For
Children
``SEC. 440. DEFINITIONS.
``In this subpart:
``(1) Alaska native organization.--The term `Alaska Native
Organization' means any organized group of Alaska Natives
eligible to operate a Federal program under the Indian Self-
Determination Act (25 U.S.C. 450f et seq.) or such group's
designee.
``(2) Administrative costs.--
``(A) In general.--The term `administrative costs'
means the costs for the general administration of
administrative activities, including contract costs and
all overhead costs.
``(B) Exclusion.--Such term does not include the
direct costs of providing services and costs related to
case management, training, technical assistance,
evaluation, establishment, and operation of information
systems, and such other similar costs that are also an
integral part of service delivery.
``(3) Eligible state.--The term `eligible State' means a
State that submits a joint application from the State agencies
that--
``(A) includes a plan that meets the requirements
of section 442; and
``(B) is approved by the Secretary for a 5-year
period after consultation with the Assistant Secretary
for the Administration for Children and Families and
the Administrator of the Substance Abuse and Mental
Health Services Administration.
``(4) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, Nation or other organized group or
community of Indians, including any Alaska Native Organization,
that is recognized as eligible for the special programs and
services provided by the United States to Indians because of
their status as Indians.
``(5) State.--
``(A) In general.--The term `State' means each of
the 50 States, the District of Columbia, and the
territories described in subparagraph (B).
``(B) Territories.--
``(i) In general.--The territories
described in this subparagraph are Puerto Rico,
Guam, the United States Virgin Islands,
American Samoa, and the Northern Mariana
Islands.
``(ii) Authority to modify requirements.--
The Secretary may modify the requirements of
this subpart with respect to a territory
described in clause (i) to the extent necessary
to allow such a territory to conduct activities
through funds provided under a grant made under
this subpart.
``(6) State agencies.--The term `State agencies' means the
State child welfare agency and the unit of State government
responsible for the administration of the substance abuse
prevention and treatment block grant provided under subpart II
of part B of title XIX of the Public Health Service Act (42
U.S.C. 300x-21 et seq.).
``(7) Tribal organization.--The term `tribal organization'
means the recognized governing body of an Indian tribe.
``SEC. 441. GRANTS TO PROMOTE CHILD PROTECTION/ALCOHOL AND DRUG
PARTNERSHIPS FOR CHILDREN.
``(a) Authority To Award Grants.--The Secretary may award grants to
eligible States and directly to Indian tribes in accordance with the
requirements of this subpart for the purpose of promoting joint
activities among Federal, State, and local public child welfare and
alcohol and drug abuse prevention and treatment agencies (and among
child welfare and alcohol and drug abuse prevention and treatment
agencies that are providing services to children in Indian tribes) that
focus on families with alcohol or drug abuse problems who come to the
attention of the child welfare system and are designed to--
``(1) increase the capacity of both the child welfare
system and the alcohol and drug abuse prevention and treatment
system to address comprehensively and in a timely manner the
needs of such families to improve child safety, family
stability, and permanence; and
``(2) promote recovery from alcohol and drug abuse
problems.
``(b) Notification.--Not later than 60 days after the date a joint
application is submitted by the State agencies or an application is
submitted by an Indian tribe, the Secretary shall notify a State or
Indian tribe that the application has been approved or disapproved.
``SEC. 442. PLAN REQUIREMENTS.
``(a) Contents.--Subject to subsection (c), the plan shall contain
the following:
``(1) A detailed description of how the State agencies will
work jointly to implement a range of activities to meet the
alcohol and drug abuse prevention and treatment needs of
families who come to the attention of the child welfare system
and to promote child safety, permanence, and family stability.
``(2) An assurance that the heads of the State agencies
shall jointly administer the grant program funded under this
subpart and a description of how they will do so.
``(3) A description of the nature and extent of the problem
of alcohol and drug abuse among families who come to the
attention of the child welfare system in the State, and of any
plans being implemented to further identify and assess the
extent of the problem.
``(4) A description of any joint activities already being
undertaken by the State agencies in the State on behalf of
families with alcohol and drug abuse problems who come to the
attention of the child welfare system (including any existing
data on the impact of such joint activities) such as activities
relating to--
``(A) the appropriate screening and assessment of
cases;
``(B) consultation on cases involving alcohol and
drug abuse;
``(C) arrangements for addressing confidentiality
and sharing of information;
``(D) cross training of staff;
``(E) co-location of services;
``(F) support for comprehensive treatment programs
for parents and their children; and
``(G) establishing priority of child welfare
families for assessment or treatment.
``(5)(A) A description of the joint activities to be funded
in whole or in part with the funds provided under the grant,
including the sequencing of the activities proposed to be
conducted under the 5-year funding cycle and the goals to be
achieved during such funding cycle. The activities and goals
shall be designed to improve the capacity of the State agencies
to work jointly to improve child safety, family stability, and
permanence for children whose families come to the attention of
the child welfare system and to promote their parents' recovery
from alcohol and drug abuse.
``(B) The description shall include a statement as to why
the State agencies chose the specified activities and goals.
``(6) A description as to whether and how the joint
activities described in paragraph (5), and other related
activities funded with Federal funds, will address some or all
of the following practices and procedures:
``(A) Practices and procedures designed to
appropriately--
``(i) identify alcohol and drug treatment
needs;
``(ii) assess such needs;
``(iii) assess risks to the safety of a
child and the need for permanency with respect
to the placement of a child;
``(iv) enroll families in appropriate
services and treatment in their communities;
and
``(v) regularly assess the progress of
families receiving such treatment.
``(B) Practices and procedures designed to provide
comprehensive and timely individualized alcohol and
drug abuse prevention and treatment services for
families who come to the attention of the child welfare
system that include a range of options that are
available, accessible, and appropriate, and that may
include the following components:
``(i) Preventive and early intervention
services for children of parents with alcohol
and drug abuse problems that integrate alcohol
and drug abuse prevention services with mental
health and domestic violence services, and that
recognize the mental, emotional, and
developmental problems the children may
experience.
``(ii) Prevention and early intervention
services for parents at risk for alcohol and
drug abuse problems.
``(iii) Comprehensive home-based,
outpatient, and residential treatment options.
``(iv) After-care support (both formal and
informal) for families in recovery that
promotes child safety and family stability.
``(v) Services and supports that focus on
parents, parents with their children, parents'
children, other family members, and parent-
child interaction.
``(C) Elimination of existing barriers to treatment
and to child safety and permanence, such as
difficulties in sharing information among agencies and
differences between the values and treatment protocols
of the different agencies.
``(D) Effective engagement and retention
strategies.
``(E) Pre-service and in-service joint training of
management and staff of child welfare and alcohol and
drug abuse prevention and treatment agencies, and,
where appropriate, judges and other court staff, to--
``(i) increase such individuals' awareness
and understanding of alcohol and drug abuse and
related child abuse and neglect;
``(ii) more accurately identify and screen
alcohol and drug abuse and child abuse in
families;
``(iii) improve assessment skills of both
child abuse and alcohol and drug abuse staff,
including skills to assess risk to children's
safety;
``(iv) increase staff knowledge of the
services and resources that are available in
such individuals' communities and appropriate
for such families; and
``(v) increase awareness of the importance
of permanence for children and the timelines
for decisionmaking regarding permanence in the
child welfare system.
``(F) Progress in enhancing the abilities of the
State agencies to improve the data systems of such
agencies in order to monitor the progress of families,
evaluate service and treatment outcomes, and determine
which approaches and activities are most effective.
``(G) Evaluation strategies to demonstrate the
effectiveness of treatment and identify the aspects of
treatment that have the greatest impact on families in
different circumstances.
``(H) Training and technical assistance to increase
the capacity within the State to carry out 1 or more of
the activities described in this paragraph or related
activities that are designed to expand prevention and
treatment services for, and staff training to assist
families with alcohol and drug abuse problems who come
to the attention of the child welfare system.
``(7) A description of the jurisdictions in the State
(including whether such jurisdictions are urban, suburban, or
rural) where the joint activities will be provided, and the
plans for expanding such activities to other parts of the State
during the 5-year funding cycle.
``(8) A description of the methods to be used in measuring
progress toward the goals identified under paragraph (5),
including how the State agencies will jointly measure their
performance in accordance with section 445, and how remaining
barriers to meeting the needs of families with alcohol or drug
abuse problems who come to the attention of the child welfare system
will be assessed.
``(9) A description of what input was obtained in the
development of the plan and the joint application from each of
the following groups of individuals, and the manner in which
each will continue to be involved in the proposed joint
activities:
``(A) Staff who provide alcohol and drug abuse
prevention and treatment and related services to
families who come to the attention of the child welfare
system.
``(B) Advocates for children and parents who come
to the attention of the child welfare and alcohol and
drug abuse prevention and treatment systems.
``(C) Consumers of both child welfare and alcohol
and drug abuse prevention and treatment services.
``(D) Direct service staff and supervisors from
public and private child welfare and alcohol and drug
abuse prevention and treatment agencies.
``(E) Judges and court staff.
``(F) Representatives of the State agencies and
private providers providing health, mental health,
domestic violence, housing, education, and employment
services.
``(G) A representative of the State agency in
charge of administering the temporary assistance to
needy families program funded under part A of this
title.
``(10) An assurance of the coordination, to the extent
feasible and appropriate, of the activities funded under a
grant made under this subpart with the services or benefits
provided under other Federal or federally assisted programs
that serve families with alcohol and drug abuse problems who
come to the attention of the child welfare system, including
health, mental health, domestic violence, housing, and
employment programs, the temporary assistance to needy families
program funded under part A of this title, other child welfare
and alcohol and drug abuse prevention and treatment programs,
and the courts.
``(11) An assurance that not more than 10 percent of
expenditures under the plan for any fiscal year shall be for
administrative costs.
``(12) An assurance that alcohol and drug treatment
services provided at least in part with funds provided under a
grant made under this subpart shall be licensed, certified, or
otherwise approved by the appropriate State alcohol and drug
abuse agencies, or in the case of an Indian tribe, by a State
alcohol and drug abuse agency, the Indian Health Service, or
other designated licensing agency.
``(13) An assurance that Federal funds provided to the
State under a grant made under this subpart will not be used to
supplant Federal or non-Federal funds for services and
activities provided as of the date of the submission of the
plan that assist families with alcohol and drug abuse problems
who come to the attention of the child welfare system.
``(b) Amendments.--
``(1) In general.--An eligible State or Indian tribe may
amend, in whole or in part, its plan at any time through
transmittal of a plan amendment.
``(2) 60-day approval deadline.--A plan amendment is
considered approved unless the Secretary notifies an eligible
State or Indian tribe in writing, within 60 days after receipt
of the amendment, that the amendment is disapproved (and the
reasons for disapproval) or that specified additional
information is needed.
``(c) Requirements for Applications by Indian Tribes.--
``(1) In general.--In order to be eligible for a grant made
under this subpart, an Indian tribe shall--
``(A) submit a plan to the Secretary that
describes--
``(i) the activities the tribe will
undertake with both child welfare and alcohol
and drug agencies that serve the tribe's
children to address the needs of families who
come to the attention of the child welfare
agencies and have alcohol and drug problems;
and
``(ii) whether and how such activities
address any of the practice and policy areas in
subsection (a)(6); and
``(B) subject to paragraph (2), meet the other
requirements of subsection (a) unless, with respect to
a specific requirement of such subsection, the
Secretary determines that it would be inappropriate to
apply such requirement to an Indian tribe, taking into
account the resources, needs, and other circumstances
of the Indian tribe.
``(2) Administrative costs; use of federal funds.--
Paragraphs (11) and (13) of subsection (a) shall not apply to a
plan submitted by an Indian tribe. The indirect cost rate
agreement in effect for an Indian tribe shall apply with
respect to administrative costs under the tribe's plan.
``(3) Authority for intertribal consortium.--The
participating Indian tribes of an intertribal consortium may
develop and submit a single plan that meets the applicable
requirements of subsection (a) (as so determined by the
Secretary) and paragraph (1) of this subsection.
``SEC. 443. APPROPRIATION OF FUNDS.
``(a) Appropriations.--For the purpose of providing allotments to
eligible States and Indian tribes under this subpart and research and
training under subsection (b)(3), there is appropriated out of any
money in the Treasury not otherwise appropriated--
``(1) for fiscal year 2002, $200,000,000;
``(2) for fiscal year 2003, $275,000,000;
``(3) for fiscal year 2004, $375,000,000;
``(4) for fiscal year 2005, $475,000,000; and
``(5) for fiscal year 2006, $575,000,000.
``(b) Reservation of Funds.--With respect to a fiscal year:
``(1) Territories.--The Secretary shall reserve 2 percent
of the amount appropriated under subsection (a) for such fiscal
year for payments to Puerto Rico, Guam, the United States
Virgin Islands, American Samoa, and the Northern Mariana
Islands.
``(2) Indian tribes.--The Secretary shall reserve not less
than 3 nor more than 5 percent of the amount appropriated under
subsection (a) for such fiscal year for direct payments to
Indian tribes and Indian tribal organizations for activities
intended to increase the capacity of the Indian tribes and
tribal organizations to expand treatment, services, and
training to assist families with alcohol and drug abuse
problems who come to the attention of the child welfare
agencies.
``(3) Research and training.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall reserve 1 percent of the amount
appropriated under subsection (a) for such fiscal year
for practice-based research on the effectiveness of
various approaches for the screening, assessment,
engagement, treatment, retention, and monitoring of
families with alcohol and drug abuse problems who come
to the attention of the child welfare system, and for
training of staff in such areas and shall ensure that a
portion of such amount is used for research on the
effectiveness of these approaches for Indian children
and for the training of staff serving children from the
Indian tribes.
``(B) Determination of use of funds.--Funds
reserved under subparagraph (A) may only be used to
carry out a research agenda that addresses the areas
described in such subparagraph and that is established
by the Secretary, together with the Assistant Secretary
for the Administration for Children and Families and
the Administrator of Substance Abuse and Mental Health
Services Administration, with input from public and
private nonprofit providers, consumers, representatives
of Indian tribes, and advocates, as well as others with
expertise in research in such areas.
``SEC. 444. PAYMENTS TO ELIGIBLE STATES AND INDIAN TRIBES.
``(a) Amount of Grant.--
``(1) Eligible states other than territories.--
``(A) In general.--From the amount appropriated
under subsection (a) of section 443 for a fiscal year,
after the reservation of funds required under
subsection (b) of that section for the fiscal year and
subject to subparagraphs (B) and (C), the Secretary
shall pay to each eligible State (after the Secretary
has determined that the State has satisfied the
matching requirement under subsection (b)) an amount
that bears the same ratio to such amount for such
fiscal year as the number of children under the age of
18 that reside in the eligible State bears to the total
number of children under the age of 18 who reside in
all such eligible States for such fiscal year.
``(B) Minimum allotment.--In no case shall the
amount of a payment to an eligible State for a fiscal
year be less than an amount equal to 0.5 percent of the
amount appropriated under subsection (a) of section 443
for the fiscal year, after the reservation of funds
required under subsection (b) of that section.
``(C) Pro rata reductions.--The Secretary shall
make pro rata reductions in the amounts of the
allotments determined under subparagraph (A) for a
fiscal year to the extent necessary to comply with
subparagraph (B).
``(2) Territories.--From the amounts reserved under section
443(b)(1) for a fiscal year, the Secretary shall pay to each
territory described in section 440(5)(B) with an approved plan
that meets the requirements of section 442 (after the Secretary
has determined that the territory has satisfied the matching
requirement under subsection (b)) an amount that bears the same
ratio to such amount for such fiscal year as the number of
children under the age of 18 that reside in the territory bears
to the total number of children under the age of 18 who reside
in all such territories for such fiscal year.
``(3) Indian tribes or tribal organizations.--From the
amount reserved under section 443(b)(2) for a fiscal year, the
Secretary shall pay to each Indian tribe with an approved plan
that meets the requirements of section 442(c) (after the
Secretary has determined that the Indian tribe has satisfied
the matching requirement under subsection (b)) an amount that
bears the same ratio to such reserved amount for such fiscal
year as the number of children under the age of 18 in the
Indian tribe bears to the total number of children under the
age of 18 in all Indian tribes with plans so approved for such
fiscal year, as determined by the Secretary on the basis of the
most current and reliable information available to the
Secretary. For purposes of making the allocations required
under the preceding sentence, an Indian tribe may submit data
and other information that it has on the number of Indian
children under the age of 18 for consideration by the
Secretary.
``(b) Matching Requirement.--
``(1) In general.--In order to receive a grant under this
subpart for a fiscal year, an eligible State or Indian tribe
shall provide through non-Federal contributions the applicable
percentage determined under paragraph (2) for such fiscal year
of the costs of conducting activities funded in whole or in
part with funds provided under the grant. Such contributions
shall be paid jointly by the State agencies, in the case of an
eligible State, or by an Indian tribe.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage for an eligible State or Indian
tribe for a fiscal year is--
``(A) 15 percent, in the case of fiscal years 2002
and 2003;
``(B) 20 percent, in the case of fiscal years 2004
and 2005; and
``(C) 25 percent, in the case of fiscal year 2006.
``(3) Source of match.--
``(A) Eligible states.--The non-Federal
contributions required of an eligible State under this
subsection may be in cash or in kind, fairly evaluated,
including plant, equipment, or services. The
contributions may be made directly or through donations
from public or private entities. Amounts provided by
the Federal Government, or services assisted or
subsidized to any significant extent by the Federal
Government may not be included in determining whether
an eligible State has provided the applicable
percentage of such contributions for a fiscal year.
``(B) Indian tribes.--With respect to an Indian
tribe, such contributions may be made in cash, through
donated funds, through non-public third party in kind
contributions, or from Federal funds received under any
of the following provisions of law:
``(i) The Indian Child Welfare Act of 1978
(25 U.S.C. 1901 et seq.).
``(ii) The Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b et
seq.).
``(iii) Title I of the Housing and
Community Development Act of 1974 (42 U.S.C.
5301 et seq.).
``(4) Waiver.--
``(A) Eligible states.--In the case of an eligible
State, the Secretary, after consultation with the
Assistant Secretary for the Administration for Children
and Families and the Administrator of the Substance
Abuse and Mental Health Services Administration, may
modify the applicable percentage determined under
paragraph (2) for matching funds if the Secretary
determines that economic conditions in the eligible
State justify making such modification.
``(B) Indian tribes.--In the case of an Indian
tribe, the Secretary may modify the applicable
percentage determined under such paragraph if the
Secretary determines that it would be inappropriate to
apply to the Indian tribe, taking into the resources
and needs of the tribe and the amount of funds the
tribe would receive under a grant made under this
section.
``(c) Use of Funds.--Funds provided under a grant made under this
subpart may only be used to carry out activities specified in the plan,
as approved by the Secretary.
``(d) Deadline for Request for Payment.--An eligible State or
Indian tribe shall apply to be paid funds under a grant made under this
subpart not later than the beginning of the fourth quarter of a fiscal
year or such funds shall be reallotted under subsection (f).
``(e) Carryover of Funds.--Funds paid to an eligible State or
Indian tribe under a grant made under this subpart for a fiscal year
may be expended in that fiscal year or the succeeding fiscal year.
``(f) Reallotment of Funds.--
``(1) Eligible states.--In the case of an eligible State
that does not apply for funds allotted to the eligible State
under a grant made under this subpart for a fiscal year within
the time provided under subsection (d), or that does not expend
such funds during the time provided under subsection (e), the
funds which the eligible State would have been entitled to for
such fiscal year shall be reallotted to 1 or more other
eligible States on the basis of each such State's relative need
for additional payments, as determined by the Secretary, after
consultation with the Assistant Secretary for the
Administration for Children and Families and the Administrator
of the Substance Abuse and Mental Health Services
Administration.
``(2) Indian tribes.--In the case of an Indian tribe that
does not expend funds allotted to the tribe during the time
provided under subsection (e), the funds to which the Indian
tribe would have been entitled to for such fiscal year shall be
reallotted to the remaining Indian tribes that are implementing
approved plans in amounts that are proportional to the
percentage of Indian children under the age of 18 in each such
tribe.
``SEC. 445. PERFORMANCE ACCOUNTABILITY; REPORTS AND EVALUATIONS.
``(a) Performance Measurement.--
``(1) Establishment of indicators.--The Secretary, in
consultation with the Assistant Secretary for the
Administration for Children and Families, the Administrator of
the Substance Abuse and Mental Health Services Administration,
Chief Executive Officers of a State or Territory, State
legislators, State and local public officials responsible for
administering child welfare and alcohol and drug abuse
prevention and treatment programs, court staff, consumers of
the services, and advocates for children and parents who come
to the attention of the child welfare system, shall, within 12
months of the date of enactment of the Child Protection/Alcohol
and Drug Partnership Act of 2001, establish indicators that
will be used to assess periodically the performance of eligible
States and Indian tribes in using grant funds provided under
this subpart to promote child safety, permanence, and well-
being and recovery in families who come to the attention of the
child welfare system.
``(2) Coordination.--The indicators established under
paragraph (1) shall be based on and coordinated with the
performance outcomes established for the child welfare system
pursuant to section 203(b) of the Adoption and Safe Families
Act of 1997 and the performance measures developed under
subpart II of part B of title XIX of the Public Health Service
Act (relating to the substance abuse prevention and treatment
block grant).
``(3) Purpose.--The indicators will be used to measure
periodically the progress made by the State agencies and by
child welfare and alcohol and drug abuse prevention and
treatment agencies serving children in Indian tribes in the activities
that such agencies jointly engage in with such grant funds. An eligible
State or Indian tribe will be measured against itself, assessing
progress over time against a baseline established at the time the grant
activities were undertaken.
``(4) Illustrative examples.--The indicators developed
should address the range of activities that eligible States and
Indian tribes have the option of engaging in with such grant
funds. Examples of the types of progress to be measured in the
different areas of activity include the following:
``(A) Improving the screening and assessment of
families who come to the attention of the child welfare
system with alcohol and drug problems, so such families
can be promptly referred for appropriate treatment when
necessary.
``(B) Increasing the availability of comprehensive
and timely individualized treatment for families with
alcohol and drug problems who come to the attention of
the child welfare system.
``(C) Increasing the number or proportion of
families who, when they come to the attention of the
child welfare system with alcohol and drug problems,
promptly enter appropriate treatment.
``(D) Increasing the engagement and retention in
treatment of families with alcohol and drug problems
who come to the attention of the child welfare system.
``(E) Decreasing the number of children who re-
enter foster care after being returned to families who
had alcohol or drug problems when the children entered
foster care.
``(F) Increasing the number or proportion of staff
in both the public child welfare and alcohol and drug
abuse prevention and treatment agencies who have
received training on the needs of families that come to
the attention of the child welfare and alcohol and drug
abuse prevention and treatment systems for help, and
the help that can be provided to such families.
``(G) Increasing the proportion of parents who
complete treatment for alcohol or drug abuse and show
improvement in their pre-employment or employment
status.
``(5) Determination of progress.--
``(A) Initial report.--Not later than the end of
the first fiscal year in which funds are received under
a grant made under this subpart, the State agencies in
each eligible State that receives such funds, and the
Indian tribes that receive such funds, shall submit to
the Secretary a report on the activities carried out
during the fiscal year with such funds. The report
shall contain such information as the Secretary
determines is necessary to provide an accurate
description of the activities conducted with such funds
and of any changes in the use of such funds that are
planned for the succeeding fiscal year.
``(B) Use of indicators.--As soon as possible after
the establishment of indicators under paragraph (1),
the State agencies and Indian tribes shall conduct
evaluations, directly or under contract, of their
progress with respect to such indicators that are
directly related to activities the eligible State or
Indian tribe is engaging in with such grant funds and
include information on the evaluation in the reports to
the Secretary required under subparagraphs (C) and (D).
After the third year in which such activities are
conducted, an eligible State or Indian tribe shall
include in the evaluation at least some indicators that
address improvements in treatment for families with
alcohol and drug problems who come to the attention of
the child welfare system.
``(C) Subsequent reports.--After the initial report
is submitted under subparagraph (A), an eligible State
or Indian tribe shall submit to the Secretary, not
later than June 30 of each fiscal year thereafter in
which the State or tribe carries out activities with
grant funds provided under this subpart, a report on
the application of the indicators established under
paragraph (1) to such activities. The reports shall
include an explanation regarding why the specific
indicators used were chosen, how such indicators are
expected to impact a child's safety, permanence, well-
being, and parental recovery, and the results (as of
the date of submission of the report) of the evaluation
conducted under subparagraph (B).
``(D) Final report.--Not later than September 30,
2006, each eligible State and Indian tribe with an
approved plan under this part shall submit a final
report on the evaluations conducted under subparagraph
(B) and the progress made in achieving the goals
specified in the plan of the State or Indian tribe.
``(E) Failure to report.--
``(i) In general.--Subject to clause (ii),
an eligible State or Indian tribe that fails to
submit the reports required under this
paragraph or to conduct the evaluation required
under subparagraph (B) shall not be eligible to
receive grant funds provided under this subpart
for the fiscal year following the fiscal year
in which such State or Indian tribe failed to
submit such report or conduct such evaluation.
``(ii) Corrective action.--An eligible
State or Indian tribe to which clause (i)
applies may, notwithstanding such clause,
receive grant funds under this subpart for a
succeeding fiscal year if prior to September 30
of the fiscal year in which such failure
occurred, the State agencies of the eligible
State, or the Indian tribe, submit to the
Secretary a plan to monitor and evaluate in a
timely manner the activities conducted with such funds, and such plan
is approved in a timely manner by the Secretary, after consultation
with the Administration for Children and Families and the Substance
Abuse and Mental Health Services Administration.
``(b) Secretarial Reports and Evaluations.--
``(1) Annual reports.--On the basis of reports submitted
under subsection (a), the Secretary, in consultation with the
Assistant Secretary for the Administration for Children and
Families and the Administrator of the Substance Abuse and
Mental Health Services Administration, shall report annually,
beginning on October 1, 2003, to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate on the joint activities conducted with
funds provided under grants made under this subpart, the
indicators that have been established, and the progress that
has been made in addressing the needs of families with alcohol
and drug abuse problems who come to the attention of the child
welfare system and in achieving the goals of child safety,
permanence, and family stability.
``(2) Evaluations.--Not later than 6 months after the end
of each 5-year funding cycle under this subpart, the Secretary
shall submit a report to the committees described in paragraph
(1) that summarizes the results of the evaluations conducted by
eligible States and Indian tribes under subsection (a)(5)(B),
as reported by such States and Indian tribes in accordance with
subparagraphs (C) and (D) of subsection (a)(5). The Secretary
shall include in the report required under this paragraph
recommendations for further legislative or administrative
actions that are designed to assist children and families with
alcohol and drug abuse problems who come to the attention of
the child welfare system.''.
Subtitle E--Permanency Grants
SEC. 8401. ESTABLISHMENT OF PERMANENCY GRANTS PROGRAM.
Part E of title IV of the Social Security Act (42 U.S.C. 670 et
seq.), as amended by section 8011(b), is amended by adding at the end
the following:
``SEC. 479C. PERMANENCY GRANTS.
``(a) Definitions.--In this section:
``(1) Qualified state agency.--The term `qualified State
agency' means, with respect to a State, the State agency--
``(A) with responsibility for administering the
program authorized by subpart 1 of part B and the
program authorized under this part; and
``(B) that submits an application in accordance
with the requirements of subsection (c).
``(2) Waiting children.--The term `waiting children' means
the children described in subsection (b)(2).
``(b) Authority To Award Grants.--The Secretary shall award a one-
time grant to each qualified State agency for the purposes of--
``(1) promoting the permanency goals of the Adoption and
Safe Families Act of 1997; and
``(2) enabling the agency to reduce existing backlogs of
children with permanent placement plans pursuant to that Act
who, as of the date of enactment of that Act, were waiting to
be placed in permanent homes, through return to their families,
placement in adoptive homes, or placement with a legal guardian
or a fit or willing relative.
``(c) Application.--A State agency desiring a grant under this
section shall submit an application for a grant, in such form and
manner as the Secretary shall require, that contains a description of
the following:
``(1) The barriers to achieving the permanency goals
established in the Adoption and Safe Families Act of 1997.
``(2) The results of the review of the permanency plans for
children in foster care on November 19, 1997 (the date of
enactment of that Act), including--
``(A) the number of children who have permanency
plans;
``(B) a description of the permanency goals for
such children;
``(C) the age of such children;
``(D) the current placements and special needs of
such children; and
``(E) the number of such children who have and the
number of such children who have not yet been placed in
accordance with those plans.
``(3) The activities the agency proposes, including a
specific plan and timetable, to--
``(A) move the waiting children to permanent homes;
and
``(B) reduce the backlog of waiting children.
``(4) How the grant funds will be used to
help secure permanent homes for waiting
children.
``(5) Subject to subsection (e), the
information described in that subsection.
``(c) Use of Funds.--Funds provided under a grant made under this
section may be used for any purpose that the Secretary determines will
assist the State agency to secure permanent homes for waiting children.
``(d) Availability of Funds.--Funds awarded under a grant made
under this section shall remain available for expenditure by a
qualified State agency through the end of the second succeeding fiscal
year.
``(e) Coordination With Grants to Courts To Reduce Backlogs.--If a
qualified State agency receiving a grant under this section is in a
State where the State or local courts are recipients of grants pursuant
to the Strengthening Abuse and Neglect Courts Act of 2000 to reduce
pending backlogs of abuse and neglect cases and promote permanency, the
application submitted under subsection (b) shall include a description
of how the proposed backlog reduction activities undertaken with funds
provided under a grant under this section will be coordinated with the
activities undertaken by the State or local courts with funds provided
under that Act.
``(f) Priority of Awards.--In awarding grants under this section,
the Secretary shall give priority to qualified State agencies that can
demonstrate that they already have taken steps to move waiting children
to permanent homes.
``(g) Report.--Not later than 60 days after the end of each fiscal
year for which a qualified State agency expends funds under a grant
made under this section, and 90 days after the date of the final
expenditure of such funds, the agency shall submit a report to the
Secretary that includes any information that the Secretary determines
would assist other jurisdictions in achieving the permanency goals of
the Adoption and Safe Families Act of 1997, including the following:
``(1) The barriers to permanence that are being or were
addressed with grant funds.
``(2) The most effective strategies used to reduce the
backlog of waiting children.
``(3) The activities funded under the grant that helped to
reduce such backlog.
``(4) The numbers of waiting children who were moved to
permanent homes, including the ages of such children, any
special needs of such children, and a description of the
children's placements.
``(5) The efforts being made to ensure that the placements
continue to be permanent.
``(6) The number of waiting children who remain in care
without permanent families.
``(h) Funding.--There is appropriated, out of any money in the
Treasury not otherwise appropriated, $200,000,000 for each of fiscal
years 2002 and 2003 for the purpose of making grants under this
section.''.
Subtitle F--Addressing the Needs of Children Exposed to Domestic
Violence
SEC. 8501. PURPOSES.
The purposes of this subtitle are--
(1) to expand programs, and create new interventions,
services, and treatment options, for children who are exposed
to domestic violence that take into consideration the needs of
both child and adult victims of domestic violence and emphasize
accountability for the perpetrators of domestic violence;
(2) to improve training concerning domestic violence, and
the impact of domestic violence on children, for child welfare
and domestic violence professionals, other providers of
services for children, child educators and counselors, and law
enforcement personnel and judges;
(3) to educate children in elementary schools and secondary
schools about domestic violence and expand the interventions
that are available to children who are exposed to domestic
violence; and
(4) to expand research and data collection concerning the
impact of domestic violence on children in order to better meet
the service and therapeutic needs of children exposed to
domestic violence.
SEC. 8502. DEFINITIONS.
In this subtitle:
(1) Domestic violence.--The term ``domestic violence''
includes--
(A) an act or threat of violence, not including an
act of self defense, committed by--
(i) a current or former spouse of the
victim;
(ii) a person with whom the victim shares a
child in common;
(iii) a person who is cohabiting with or
has cohabited with the victim;
(iv) a person who is or has been in a
social relationship of a romantic or intimate
nature with the victim;
(v) a person similarly situated to a spouse
of the victim under the domestic or family
violence laws of the jurisdiction of the
victim; or
(vi) any other person against a victim who
is protected from that person's act under the
domestic or family violence laws of the
jurisdiction; and
(B) sexual assault.
(2) Exposed to domestic violence.--
(A) In general.--The term ``exposed to domestic
violence'' means exposed to--
(i) an act of domestic violence that
constitutes actual or attempted physical
assault; or
(ii) a threat or other action that places
the victim in fear of domestic violence.
(B) Exposed to.--In subparagraph (A), the term
``exposed to'' means--
(i) directly observing an act, threat, or
action described in subparagraph (A), or the
aftermath of that act, threat, or action; or
(ii) being within earshot of an act,
threat, or action described in subparagraph
(A), or the aftermath of that act, threat, or
action.''.
SEC. 8503. GRANTS TO ADDRESS THE NEEDS OF CHILDREN WHO ARE EXPOSED TO
DOMESTIC VIOLENCE.
(a) In General.--The Family Violence Prevention and Services Act
(42 U.S.C. 10401 et seq.), as amended by section 1203 of the Violence
Against Women Act of 2000, is further amended by adding at the end the
following:
``SEC. 320. MULTISYSTEM INTERVENTIONS FOR CHILDREN WHO ARE EXPOSED TO
DOMESTIC VIOLENCE.
``(a) Grants Authorized.--
``(1) Authority.--The Secretary, acting through the
Director of Community Services, in the Administration for
Children and Families, is authorized to award grants to
eligible entities to conduct programs to encourage the use of
domestic violence intervention models using multisystem
partnerships to address the assessed needs of children who are
exposed to domestic violence.
``(2) Term and amount.--Each grant awarded under this
section shall be awarded for a term of 3 years and in an amount
of not more than $500,000 for each such year.
``(3) Eligible entities.--To be eligible to receive a grant
under this section, an entity shall--
``(A) be a nonprofit private organization;
``(B)(i) demonstrate recognized expertise in the
area of domestic violence on children; or
``(ii) enter into a memorandum of understanding
regarding the intervention program that--
``(I) is entered into with the State or
tribal domestic violence coalition and entities
carrying out domestic violence programs that
provide shelter or related assistance in the
locality in which the intervention program will
be operated; and
``(II) demonstrates collaboration on the
intervention program with the coalition and
entities and the support of the coalition and
entities for the intervention program; and
``(C) demonstrate a history of providing advocacy,
health care, mental health, or other crisis-related
services to children.
``(b) Use of Funds.--An entity that receives a grant under this
section shall use amounts provided through the grant to conduct a
program to design or replicate, and implement, domestic violence
intervention models that use multisystem partners to respond to the
needs of children who are exposed to domestic violence. Such a program
shall--
``(1)(A) involve collaborative partnerships with--
``(i) local entities carrying out domestic violence
programs that provide shelter or related assistance;
and
``(ii) partners that are courts, schools, social
service providers, health care providers, police, early
childhood agencies, entities carrying out Head Start
programs under the Head Start Act (42 U.S.C. 9831 et
seq.), or entities carrying out child protection,
welfare, job training, housing, battered women's
service, or children's mental health programs; and
``(B) be carried out to design and implement protocols and
systems to identify, refer, and appropriately respond to the
needs of, children who are exposed to domestic violence and who
participate in programs administered by the partners;
``(2) include guidelines to evaluate the needs of a child
and make appropriate intervention recommendations;
``(3) include guidelines that respond appropriately to the
overlapping needs of children who are exposed to domestic
violence and who are also being abused or neglected;
``(4) include institutionalized procedures to enhance or
ensure the safety and security (including economic security) of
a battered parent, and as a result, the child of the parent;
``(5) provide direct counseling and advocacy for adult
victims of domestic violence and their children who are exposed
to domestic violence, including providing an evaluation of the
specific needs of each such child and of the nature of the
treatment needed by the child;
``(6) include the development or replication of a mental
health treatment model to meet the needs of children for whom
such treatment has been identified as appropriate;
``(7) include policies and protocols for maintaining the
confidentiality of the battered parent and child;
``(8) provide community outreach and training to enhance
the capacity of professionals who work with children to
appropriately identify and respond to the needs of children who
are exposed to domestic violence;
``(9) include procedures for documenting interventions used
for each child and family served under the program carried out
under the grant; and
``(10) include plans to perform a systematic outcome
evaluation to evaluate the effectiveness of the interventions.
``(c) Application.--To be eligible to receive a grant under this
section, an entity shall prepare and submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require.
``(d) Technical Assistance.--Not later than 90 days after the date
of enactment of this section, the Secretary shall identify successful
programs providing multisystem and mental health interventions to
address the needs of children who are exposed to domestic violence. Not
later than 60 days before the Secretary solicits applications for
grants under this section, the Secretary shall enter into an agreement
with 1 or more entities carrying out the identified programs to provide
technical assistance to the applicants and recipients of the grants.
The Secretary may use not more than 5 percent of the amount
appropriated for a fiscal year under subsection (e) to provide the
technical assistance.
``(e) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section $5,000,000 for each of fiscal years
2002 through 2004 and $10,000,000 for each of fiscal years 2005
and 2006.
``(2) Availability.--Amounts appropriated under paragraph
(1) shall remain available until expended.
``(f) Definitions.--In this section, the terms `domestic violence'
and `exposed to domestic violence' have the meanings given the terms in
section 8502 of the Leave No Child Behind Act of 2001.''.
(b) Administration.--Section 305(a) of the Family Violence
Prevention and Services Act (42 U.S.C. 10404(a)) is amended--
(1) by striking ``an employee'' and inserting ``1 or more
employees''; and
(2) by striking ``The individual'' and inserting ``Each
individual''.
SEC. 8504. TRAINING AND COORDINATION OF CHILD WELFARE AGENCIES AND
DOMESTIC VIOLENCE SERVICE PROVIDERS.
The Family Violence Prevention and Services Act (42 U.S.C. 10401 et
seq.), as amended by section 8503, is further amended by adding at the
end the following:
``SEC. 321. TRAINING AND COORDINATION OF CHILD WELFARE AGENCIES AND
DOMESTIC VIOLENCE SERVICE PROVIDERS.
``(a) Purpose.--The purpose of this section is to encourage cross
training and coordination between State and local child welfare
agencies and domestic violence service providers--
``(1) to encourage the child welfare agencies, as part of
their ongoing child welfare responsibilities, to recognize
domestic violence and treat such violence as a serious problem
threatening the safety and well-being of child and adult
victims;
``(2) to educate the domestic violence service providers
about child welfare policies that affect child and adult
victims and the effects of domestic violence on children; and
``(3) to increase cooperation and collaboration between the
domestic violence service providers and child welfare agencies.
``(b) Definition.--In this section:
``(1) Domestic violence.--The term `domestic violence' has
the meaning given the term in section 8502 of the Leave No
Child Behind Act of 2001.
``(2) Exposed to domestic violence.--The term `exposed to
domestic violence' has the meaning given the term in such
section 8502.
``(c) Grant Authority.--
``(1) In general.--The Attorney General and the Secretary
shall jointly make grants to eligible entities to enable the
entities to carry out initiatives to train staff and modify
policies, procedures, programs, and practices so that the
policies, procedures, programs, and practices are consistent
with principles of--
``(A) protecting children;
``(B) increasing the safety and well-being of the
children, by--
``(i) increasing the safety of parents of
the children who are not the perpetrators of
domestic violence; and
``(ii) supporting the autonomy and capacity
of parents of the children who are victims of
domestic violence (referred to in this section
as `adult victims'); and
``(C) holding adult perpetrators, not child and
adult victims, accountable for stopping the domestic
violence.
``(2) Grant periods.--The Attorney General and the
Secretary shall make the grants for a period of 3 years.
``(d) Eligible Entities.--To be eligible to receive a grant under
this section, an entity shall be a partnership of--
``(1) a State child welfare agency, a tribal organization
that serves as a child welfare agency, or a local child welfare
agency; and
``(2) a domestic violence service provider, such as--
``(A) a State domestic violence coalition; or
``(B) another private nonprofit organization that
is concerned with domestic violence and has a
documented history of effective work concerning
domestic violence and the impact of domestic violence
on children.
``(e) Uses of Funds; Goals.--An entity that receives a grant under
this section shall use the funds made available through the grant to
carry out goals consisting of--
``(1) recognizing--
``(A) the overlap between child abuse and neglect,
including child sexual abuse, and domestic violence in
families;
``(B) the dynamics of domestic violence;
``(C) the dangers posed to both child and adult
victims of domestic violence;
``(D) the physical, emotional, and developmental
impact of domestic violence on children;
``(E) the needs of adult victims of domestic
violence and the need to hold adult perpetrators of
domestic violence accountable for their actions,
in order to provide appropriate services to reduce risks to
children;
``(2) increasing collaboration between child welfare
agencies and domestic violence service providers, including the
education of domestic violence service providers about child
welfare practices and protocols that affect the child and adult
victims;
``(3) developing and implementing policies, procedures,
programs, and practice guidelines to--
``(A) reflect the principles stated in subsection
(c);
``(B) identify and assess, and respond
appropriately to, domestic violence in child protection
cases; and
``(C) ensure the confidentiality of information on
families that is shared between child welfare agencies
and entities carrying out community-based domestic
violence programs;
``(4) developing appropriate responses in cases of domestic
violence, including developing a safety plan and providing
other appropriate services and interventions that ensure the
safety of both the child and adult victims of the domestic
violence;
``(5) creating links between--
``(A) child welfare agencies;
``(B) entities carrying out community-based
domestic violence programs;
``(C) rape crisis centers;
``(D) other entities addressing the safety, health,
mental health, social service, housing, and economic
needs of child and adult victims of domestic violence;
``(E) juvenile, family, and criminal courts; and
``(F) law enforcement agencies; and
``(6) collecting data indicating the number of child
protection cases identified as involving domestic violence and
the number of such cases that repeatedly return to the child
welfare system, in order to evaluate and assess service and
program improvements.
``(f) Applications.--To be eligible to receive a grant under this
section, an entity shall submit an application to the Attorney General
and the Secretary at such time, in such manner, and containing such
information as the Attorney General and the Secretary may require. The
application shall contain the following information and assurances:
``(1) Information outlining the specific activities that
will be undertaken to achieve the goals set forth in subsection
(e).
``(2) An assurance that the entity will develop, during the
period of the grant, in collaboration with other organizations,
a range of training resources, policies, procedures, programs,
and practices relating to child and adult victims of domestic
violence that include at least the following:
``(A)(i) Relevant protocols for the investigation
of and followup to reports of child abuse and neglect,
and the screening, intake, and assessment of, and
provision of appropriate services for, victims of child
abuse and neglect.
``(ii) A procedure and schedule for training child
welfare staff about domestic violence, the impact of
domestic violence on child and adult victims, and the
appropriate use of protocols described in clause (i).
``(iii) A procedure and schedule for training
domestic violence service providers about child welfare
agency protocols and procedures for victims of child
abuse and the impact of domestic violence on child
victims.
``(iv) Policies that require that the training
described in clause (ii)--
``(I) be provided to child welfare staff
including line staff, supervisors, and
administrators, and be provided first to staff
responsible for the investigation, followup,
screening, intake, assessment, and provision of
services described in clause (i); and
``(II) be conducted in collaboration with
domestic violence experts, staff from
community-based domestic violence programs and
rape crisis centers, and relevant
representatives of law enforcement.
``(v) Policies that require that, at a minimum, the
protocols and training described in clauses (ii) and
(iii) shall address--
``(I) the dynamics of domestic violence,
the impact of domestic violence on children
exposed to domestic violence, and the
relationship of domestic violence to child
abuse and neglect;
``(II) screening for domestic violence and
assessing danger to the child and adult victims
of the domestic violence;
``(III) applicable Federal, State, and
local laws pertaining to domestic violence;
``(IV) appropriate interventions for the
child and adult victims that protect the safety
of both types of victims and give appropriate
consideration to preserving the safety of
family members not responsible for the child
abuse or neglect involved;
``(V) appropriate interventions for adult
perpetrators of domestic violence to reduce the
risk of further violence toward child and adult
victims of domestic violence;
``(VI) appropriate supervision of child
welfare staff working with families in which
there has been domestic violence, including
supervision relating to issues involving staff
safety;
``(VII) protecting the safety and
confidentiality of the child and adult victims,
consistent with laws requiring mandatory
reporting of child abuse and neglect; and
``(VIII) developing child protection case
plans that recognize the need to hold adult
perpetrators, not victims, responsible for
stopping domestic violence.
``(B) Community-based networks of services and
support that--
``(i) respond effectively to the
comprehensive needs of child and adult victims
of domestic violence;
``(ii) include new services and linkages to
existing services; and
``(iii) include at least the following
services:
``(I) Appropriate referrals to
community-based domestic violence
programs and rape crisis centers
with the capacities to support adult victims of domestic violence who
are parents of abused or neglected children.
``(II) Emergency shelter and
transitional housing for adult victims
of domestic violence and their
children.
``(III) Legal assistance and
advocacy for victims of domestic
violence, including, when appropriate,
assistance in obtaining and entering
orders of protection.
``(IV) Support and training to
assist parents to help their children
cope with the impact of domestic
violence.
``(V) Programs to help children who
have been exposed to domestic violence.
``(VI) Treatment for adult
perpetrators of domestic violence whose
children are the subjects of child
protection cases to promote the safety
and well-being of the children, and
appropriate coordination of such
treatment with the juvenile, family,
and criminal courts with which the
perpetrators are involved.
``(VII) Health, mental health, and
other necessary supportive services.
``(VIII) Assistance to obtain
housing and necessary economic support.
``(3) Information that--
``(A) identifies the agencies and providers that
will be responsible for carrying out the initiative for
which the entity seeks the grant; and
``(B)(i) includes documentation from entities
carrying out community-based domestic violence programs
and rape crisis centers that the entities and centers
have been involved in the development of the
application; and
``(ii) describes the ongoing involvement of the
entities and centers in the development of the
training, policies, procedures, programs, and practices
described in paragraph (2), including a description of
their roles as subcontractors, if relevant.
``(g) Priority.--In awarding grants under this section, the
Attorney General and the Secretary shall give priority to applicants
that have demonstrated a commitment to educate staff of child welfare
agencies and domestic violence service providers about--
``(1) the impact of domestic violence on children;
``(2) the special risks of child abuse and neglect; and
``(3) appropriate services and interventions for protecting
the child and adult victims of domestic violence.
``(h) Evaluation, Reporting, and Dissemination of Information.--
``(1) Evaluations and reports.--Each entity that receives a
grant under this section shall annually--
``(A) evaluate the effectiveness of activities
developed with the funds provided under this program;
and
``(B) prepare and submit to the Attorney General
and the Secretary a report containing the evaluation
and such additional information as the Attorney General
and the Secretary shall require.
``(2) Dissemination of information.--Not later than 6
months after the end of the grant period for the grants made
under this section, the Attorney General and the Secretary
shall distribute to all State child welfare agencies, State
domestic violence coalitions, and Congress summaries that
contain information on--
``(A) the activities implemented by the recipients
of the grants; and
``(B) related initiatives undertaken by the
Attorney General and the Secretary to promote attention
by the staff of child welfare agencies and of domestic
violence service providers to domestic violence and the
impact of domestic violence on child and adult
victims.''.
SEC. 8505. RESEARCH AND DATA COLLECTION ON THE IMPACT OF DOMESTIC
VIOLENCE ON CHILDREN.
The Family Violence Prevention and Services Act (42 U.S.C. 10401 et
seq.), as amended by section 8504, is further amended by adding at the
end the following:
``SEC. 322. RESEARCH AND DATA COLLECTION.
``(a) Grants.--
``(1) In general.--The Secretary, acting through the
Assistant Secretary for Children and Families, may make grants,
on a competitive basis, to eligible entities to enable the
entities to conduct research and data collection concerning the
impact of domestic violence on children.
``(2) Term and amount.--The Secretary shall award grants
under this section for terms of 3 years and in amounts of not
more than $500,000 for each such year.
``(b) Eligible Entities.--To be eligible to receive a grant under
this section, an entity shall be an institution of higher education or
another nonprofit organization (such as a research entity, hospital, or
mental health institution), with documented experience with research or
data collection concerning the impact of domestic violence on children.
``(c) Use of Funds.--An entity that receives a grant under this
section shall use the amounts provided through the grant to conduct new
or expand current research or data collection--
``(1) on the prevalence of childhood exposure to domestic
violence and the effects of the exposure in child and adult
victims;
``(2) on the co-occurrence of domestic violence, and child
abuse or neglect;
``(3) on linkages between children's exposure to domestic
violence and violent behavior in youth and adults;
``(4) that evaluates new or existing treatments aimed at
children exposed to domestic violence;
``(5) on the role of children's resilience and other
factors that help mitigate the effects of exposure to domestic
violence; and
``(6) on related matters, if the research or data
collection directly addresses the impact of domestic violence
on children.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $2,000,000 for each of fiscal
years 2002 through 2004 and $5,000,000 a year for each of fiscal years
2005 and 2006.''.
SEC. 8506. GRANTS TO SCHOOLS AND EARLY EDUCATION AND CHILD CARE
PROGRAMS FOR PREVENTION OF VIOLENCE AGAINST WOMEN.
(a) Grants Authorized.--From amounts made available under
subsection (j), the Secretary of Education shall award grants to
eligible entities to conduct programs--
(1) to reduce the impact of domestic violence, including
sexual assault, and stalking in the lives of children and
youth;
(2) to develop and implement education programs to prevent
children and youth from becoming victims or perpetrators of
domestic violence, including sexual assault, dating violence,
or stalking, through programs and prevention strategies
targeting children and youth at--
(A) State, local, and tribal elementary, middle,
and secondary schools;
(B) early education programs and child care
programs, including Early Head Start under section 645A
of the Head Start Act (42 U.S.C. 9840a), Head Start
programs under the Head Start Act (42 U.S.C. 9831 et
seq.), preschool, prekindergarten, and child care
programs; and
(C) other Federal, State, and locally funded youth
education programs;
(3) to provide support services for children and youth
experiencing or exposed to domestic violence, including sexual
assault, dating violence, and stalking;
(4) to provide training and support services to school and
program administrators, faculty, counselors, school social
workers, and staff with respect to issues concerning domestic
violence, including sexual assault, dating violence, and
stalking, as well as the impact on children and youth of
experiencing or exposure to the violence or stalking described
in this paragraph; and
(5) to develop and implement school and program policies
regarding identification and referral procedures for children
and youth who are experiencing or exposed to domestic violence,
including sexual assault, dating violence, or stalking with the
goal of contributing to the safety and well-being of adult and
child victims and children and youth impacted by the violence
or stalking involved.
(b) Eligible Entities.--
(1) In general.--To be eligible to receive a grant under
subsection (a), an entity shall be--
(A) a State, local, or tribal school or educational
agency;
(B) an entity carrying out an early education
program or child care program;
(C) a priority youth-serving organization working
in collaboration with a State, local, or tribal school,
or educational agency; or
(D) an entity carrying out a private, nonprofit
domestic violence or sexual assault program working in
collaboration with a State, local, or tribal school, or
educational agency, or an entity carrying our an early
education program, or child care program.
(2) Collaboration.--To be eligible to receive a grant under
subsection (a), an eligible entity described in subparagraphs
(A), (B), or (C) of paragraph (1) shall collaborate with
domestic violence or sexual assault experts from national,
State, or tribal domestic violence or sexual assault programs.
(c) Publication.--The Secretary of Education shall publish
information on the availability of grants under subsection (a) through
announcements in professional publications for State, local, and tribal
educational agencies, early education programs, and child care programs
described in subsection (a)(2), and through notices in the Federal
Register.
(d) Equitable Distribution.--In awarding grants under subsection
(a), the Secretary of Education shall ensure an equitable geographic
distribution of funds to State, local, and tribal schools and
educational agencies, entities carrying out early education programs or
child care programs, priority youth-serving organizations, and entities
carrying out domestic violence or sexual assault programs among areas
throughout the United States, and among rural, urban, and suburban
areas.
(e) Applications.--
(1) In general.--An eligible entity that desires to receive
a grant under subsection (a) shall submit to the Secretary of
Education an application at such time, in such manner, and
containing such information as the Secretary of Education may
require.
(2) Contents.--An application submitted under this
subsection shall--
(A) demonstrate that the education program proposed
to be funded by a grant under subsection (a)--
(i) is comprehensive, engaging, and
appropriate to the target areas;
(ii) is respectful and reflective of
cultural diversity;
(iii) addresses the needs of underserved
communities;
(iv) has the potential to change attitudes
and behaviors;
(v) is based on research and experience in
the areas of early childhood and youth
education, domestic violence, including sexual
assault, dating violence, and stalking;
(vi) collects data on changes in
participants' attitudes or behavior;
(vii) is implemented in collaboration with
domestic violence and sexual assault experts;
and
(viii) includes an evaluation component;
(B) demonstrate that the proposed policy
development process for the program includes
consultation and collaboration with experts on violence
against women and girls as described in subsection
(g)(1);
(C) incorporate a plan for appropriate remuneration
for collaborating partners; and
(D) contain such other information, agreements, and
assurances as the Secretary of Education may require.
(f) Use of Funds.--
(1) In general.--An entity that receives a grant under
subsection (a) may use the grant funds--
(A) to develop and implement developmentally and
culturally appropriate education programs or prevention
strategies for students and personnel in elementary
schools, middle schools, secondary schools, early
education programs, or child care programs, addressing
domestic violence, including sexual assault, dating
violence, and stalking;
(B) to provide the necessary human resources and
intervention strategies to respond to the needs of
students, school personnel, and early education program
and child care program personnel when faced with the
issues of domestic violence, including sexual assault,
dating violence, and stalking, such as 1 or more
resource persons who is either onsite or on-call, and
who is an expert in domestic violence, sexual assault,
dating violence, or stalking;
(C) to develop and implement policies regarding
appropriate assessment, identification, reporting, and
referral procedures for children and youth who may be
experiencing or exposed to domestic violence, including
sexual assault, dating violence, or stalking, with the
goal of contributing to the safety and well-being of
adult and child victims and children and youth impacted
by the violence or stalking involved;
(D) to develop and implement policies to help
prevent students from becoming victims or perpetrators
of domestic violence, including sexual assault, dating
violence, or stalking;
(E) to provide training for school and program
administrators, faculty, counselors, school social
workers, and staff that addresses issues concerning
children and youth who are experiencing or exposed to
domestic violence, including sexual assault, dating
violence, and stalking, and the impact of the violence
or stalking described in this paragraph on children and
youth;
(F) to provide media center materials and
educational materials, to schools and programs, that
address issues concerning children and youth who are
experiencing or exposed to domestic violence, including
sexual assault, dating violence, or stalking, and the
impact of the violence or stalking described in this
paragraph on children and youth;
(G) to conduct evaluations to assess the impact of
programs assisted under this section in order to
enhance the development of the programs;
(H) to modify the program materials of the model
programs created under section 317 of the Family
Violence Prevention and Services Act (42 U.S.C. 10417),
if appropriate, in order to make the materials
applicable to a particular age group; and
(I) to purchase the materials described in
subparagraphs (F) and (H).
(2) Confidentiality.--Policies and programs developed and
implemented under paragraph (1) shall ensure the safety and
confidentiality of child and adult victims in a manner that is
consistent with applicable Federal and State laws.
(3) Limitation.--An entity that receives a grant under
subsection (a) for a fiscal year shall use not more than 5
percent of the grant funds for administrative expenses.
(g) Requirements.--In carrying out an educational program under a
grant awarded under subsection (a), a State, local, or tribal school or
educational agency, an entity carrying out an early education program
or child care program, or priority youth-serving organization shall--
(1) consult and collaborate with 1 or more nonprofit,
nongovernmental experts on violence against women and girls
that are:
(A) entities operating domestic violence shelters;
(B) entities carrying out domestic violence
programs;
(C) national, State, or tribal domestic violence
coalitions;
(D) national, State, or tribal sexual assault
coalitions; or
(E) entities operating out rape crisis centers;
(2) develop the program, or acquire model program materials
if available; and
(3) report the results of the program to the Secretary of
Education in a format provided by such Secretary.
(h) Secretary of Education.--
(1) Guidance.--The Secretary of Education shall disseminate
any Department of Education policy guidance regarding
preventing domestic violence, including sexual assault, dating
violence, or stalking.
(2) Model programs and policies.--
(A) In general.--The Secretary of Education shall
study existing policies and programs as well as new
policies and programs funded by this section for the
purpose of identifying model programs and policies that
reduce the impact of domestic violence, including
sexual assault, dating violence, and stalking in the
lives of children and youth and that contribute to the
safety and well-being of adult and child victims and
children and youth impacted by the violence or stalking
involved. The Secretary of Education shall widely
disseminate information on the model programs and
policies identified.
(B) Confidentiality.--In disseminating the
information under subparagraph (A), the Secretary of
Education shall ensure the safety, and confidentiality
of information concerning the identification, of
individuals who are victims of or impacted by violence
or stalking.
(3) Study and report.--
(A) Study.--The Secretary of Education shall study
existing policies and programs as well as new policies
and programs funded by this section and shall develop
recommendations for implementation of successful
policies for referring students to services when the
students may be experiencing or exposed to domestic
violence, including sexual assault, dating violence, or
stalking.
(B) Report.--
(i) In general.--The Secretary of Education
shall prepare and submit to Congress a report
containing the recommendations developed under
subparagraph (A).
(ii) Confidentiality.--In preparing and
submitting the report under clause (i), the
Secretary of Education shall ensure the safety,
and confidentiality of all information
concerning the identification, of students.
(C) Evaluation, monitoring, and administration.--Of
the amount appropriated under subsection (j) for each
fiscal year, not more than 3 percent shall be used by
the Secretary of Education for evaluation, monitoring,
and administrative costs under this section.
(i) Definitions.--In this section:
(1) Dating violence.--
(A) In general.--The term ``dating violence'' means
violence committed by a person who is or has been in a
social relationship of a romantic or intimate nature
with the victim.
(B) Rule.--The existence of a relationship
described in subparagraph (A) shall be determined based
on a consideration of the following factors:
(i) The length of the relationship.
(ii) The type of relationship.
(iii) The frequency of interaction between
the persons involved in the relationship.
(2) Exposed to.--The term ``exposed to'' means--
(A) with regard to domestic violence, exposed to
domestic violence as defined in section 8502;
(B) with regard to stalking--
(i) directly observing a course of conduct
that constitutes stalking or the aftermath of
that course of conduct; or
(ii) being within earshot of a course of
conduct that constitutes stalking; and
(C) with regard to dating violence--
(i) directly observing an act or threat
that constitutes dating violence or the
aftermath of that act or threat; or
(ii) being within earshot of an act or
threat that constitutes dating violence;
(3) Priority youth-serving organization.--The term
``priority youth-serving organization'' means a public or
private organization with--
(A) a primary focus on providing youth development
programs to youth ages 5 to 17;
(B) a history of providing violence awareness and
prevention skills;
(C) a proven record, as measured by specific
outcome objectives, of providing youth development and
violence awareness and prevention programs, services,
and activities through a comprehensive and coordinated
system; and
(D) the ability to provide access to core resources
consisting of--
(i) ongoing relationships with caring
adults;
(ii) a safe environment and structured
activities;
(iii) programs that promote positive well-
being;
(iv) opportunities to acquire defined
skills and competencies; and
(v) opportunities for community service and
civic participation.
(4) Sexual assault.--The term ``sexual assault'' means any
conduct proscribed by chapter 109A of title 18, United States
Code, regardless of whether the conduct occurs in the special
maritime and territorial jurisdiction of the United States or
in a Federal prison, and includes both assaults committed by
offenders who are strangers to the victim and assaults
committed by offenders who are known to the victim or related
by blood or marriage to the victim.
(5) Stalking.--The term ``stalking'' means engaging in a
course of conduct directed at a specific person that would
cause a reasonable person to fear death, sexual assault, or
bodily injury to such person or a member of such person's
immediate family, if--
(A) the person engaging in such conduct has
knowledge or should have knowledge that the specific
person will be placed in reasonable fear of death,
sexual assault, or bodily injury to such person or a
member of such person's immediate family; or
(B) the conduct induces fear in the specific person
of death, sexual assault, or bodily injury to such
person or a member of such person's immediate family.
(j) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
carry out this section--
(A) $2,750,000 for fiscal year 2002;
(B) $3,000,000 for fiscal year 2003;
(C) $3,000,000 for fiscal year 2004;
(D) $3,000,000 for fiscal year 2005; and
(E) $3,000,000 for fiscal year 2006.
(2) Availability.--Amounts appropriated under paragraph (1)
shall remain available until the earlier of--
(A) the date on which those amounts are expended;
or
(B) December 31, 2006.
SEC. 8507. TRAINING OF LAW ENFORCEMENT AND COURT PERSONNEL.
(a) Grants Authorized.--The Attorney General shall award grants to
nonprofit domestic violence programs, shelters, or organizations in
collaboration with local police departments and local courts for
purposes of training local police officers, judges, attorneys, and
other court personnel, regarding appropriate treatment of children who
have been exposed to domestic violence.
(b) Use of Funds.--A domestic violence agency working in
collaboration with a local police department and local courts may use
amounts from a grant awarded under this section--
(1) to train police officers, judges, attorneys, and other
court personnel in child development and issues related to
children exposed to domestic violence so they may
appropriately--
(A) apply child development principles to their
work in domestic violence cases;
(B) recognize the needs of children who are exposed
to domestic violence;
(C) meet the immediate needs of those children at
the scene of domestic violence and during subsequent
court proceedings;
(D) call for immediate and subsequent therapeutic
attention to be provided to the child by an advocate
from the collaborating domestic violence program,
shelter, or organization, or from a children's services
program with expertise in serving children exposed to
domestic violence; and
(E) refer children for follow-up services; and
(2) to establish a collaborative working relationship
between police officers, the courts, and local domestic
violence programs, shelters, and organizations.
(c) Application.--
(1) In general.--To be eligible for a grant under this
section for any fiscal year, a local domestic violence program,
shelter, or organization, in collaboration with a local police
department or local court, shall submit an application to the
Attorney General at such time, and in such manner, as the
Attorney General shall require.
(2) Contents.--Each application submitted under paragraph
(1) shall--
(A) describe the need for amounts provided under
the grant and the plan for implementation of the uses
described in subsection (b);
(B) describe the manner in which the local domestic
violence program, shelter, or organization shall work
in collaboration with the local police department and
local courts; and
(C) provide measurable goals and expected results
from the use of amounts provided under this section.
(d) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated
from the Violent Crime Reduction Trust Fund established under
section 310001 of the Violent Crime Control and Law Enforcement
Act of 1994 (42 U.S.C. 14211) to carry out this section--
(A) $5,000,000 for each of fiscal years 2002
through 2004; and
(B) $10,000,000 for each of fiscal years 2005 and
2006.
(2) Availability.--Amounts made available under paragraph
(1) shall remain available until expended.
Subtitle G--Enhancing Healthy Emotional Development in Young Children
SEC. 8601. ENHANCING HEALTHY EMOTIONAL DEVELOPMENT.
(a) Findings.--Congress finds the following:
(1) Researchers have identified external risk factors that,
particularly when found in combination, can increase a young
child's risk for experiencing problems in social or emotional
development, including factors such as exposure to traumatic
events, child abuse and neglect, parental mental health
disorders, unsatisfactory relationships, and deprivation.
Experiences involving these risk factors may occur at home or
in the community.
(2) There is growing evidence that positive adaptation and
social and emotional well-being in young children can be
enhanced, and that the impact of risk factors for behavioral
and emotional disorders can be reduced by intervening early in
homes, child care and other early childhood programs, and other
settings.
(3) The Surgeon General's Conference on Children's Mental
Health has recommended the creation of tangible tools for early
childhood service providers to help the providers assess
children's social and emotional needs, discuss issues relating
to those needs with families, and make referrals.
(4) Experience demonstrates that mental health consultants
can help staff, as well as children and families, in early
childhood programs promote healthy social and emotional
development in young children, including those children already
exposed to violence and other damaging experiences.
(5) Success in school is dependent on social and emotional
development, as well as the attainment of other competencies
and skills, and investing early in the promotion of healthy
development in young children will help children enter school
ready to learn.
(b) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services, acting through the Assistant
Secretary for Children and Families.
(2) State agency.--The term ``State agency'' means--
(A) the State office that coordinates early
childhood services in a State; or
(B) if an office described in subparagraph (A) does
not exist in a State, the State office that is
responsible for early childhood programs in the State.
(3) Young children.--The term ``young children'' means
individuals who are below the age of compulsory school
attendance for the State involved.
(c) Grants to State Agencies.--
(1) Grants.--The Secretary shall establish a program
through which the Secretary may make grants to State agencies,
to enable the State agencies to assist eligible entities to
serve young children and the families of the children by
addressing the mental health and developmental needs of the
young children in order to promote the children's resilience,
emotional wellness, and healthy emotional development.
(2) Grant periods.--The Secretary shall make the grants for
periods of not more than 3 years.
(d) State Applications.--To be eligible to receive a grant under
subsection (c), a State agency shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may require. The application shall include the
information and assurances described in subsection (g), with respect to
the State.
(e) Grants to Eligible Entities.--A State agency that receives a
grant under subsection (c) shall use the funds made available through
the grant to make grants to eligible entities to carry out programs to
serve young children and the families of the children as described in
subsection (c).
(f) Eligible Entities.--To be eligible to receive a grant under
subsection (e), an entity shall--
(1) be an agency or organization that carries out a home or
center-based early childhood program, child welfare program,
substance abuse treatment program, or domestic violence service
and treatment program, that serves or has regular contact with
young children;
(2) be an established consortium of agencies or
organizations described in paragraph (1); or
(3) be another entity (such as a child care resource and
referral agency, an early childhood service coordinating body,
or a community mental health center) that works with parents,
agencies, or organizations that serve young children in a
community in promoting the mental health and healthy emotional
development of young children; and
(4) obtain the approval of the State agency for an
application submitted in accordance with subsection (g).
(g) Local Applications.--
(1) In general.--To be eligible to receive a grant under
this section, an entity shall submit an application to the
State agency at such time, in such manner, and containing such
information as the State agency may require.
(2) Contents.--At a minimum, the application shall
contain--
(A) a description of the young children who are
targeted to be served, or are most likely to be served,
with the funds made available through the grant, and
the problems the children are facing or affected by
(such as exposure to parental depression, parental
substance abuse, child abuse or neglect, domestic
violence, community violence, homelessness, a parental
transition to the workforce, or other risk factors);
(B) an assurance that the assistance provided with
funds made available through the grant will be
undertaken in a developmentally appropriate and
culturally competent manner, be child-centered, and, as
applicable, family-focused, and consistent with the best knowledge
available about effective prevention and intervention strategies to
promote mental health and healthy emotional development in young
children;
(C) the name of the entity that would administer
the program carried out under the grant;
(D) a description of the types of assistance that
will be provided with the funds to improve the mental
health and healthy emotional development of young
children;
(E) a description of how the program to be carried
out under the grant will complement and be coordinated
with the activities of, or carried out by, any early
childhood service coordinating offices in the community
in which the grant activities will be carried out;
(F) an assurance that the applicant will work
collaboratively with mental health, early childhood
development, early intervention, education, health, and
other specialized violence prevention or treatment
experts, and other experts in the applicant's community
to coordinate services provided under this subtitle
with similar services and to better address the needs
of the young children the applicant serves;
(G) documentation that the applicant has explored
the extent to which funding under part C of the
Individuals with Disabilities Education Act (20 U.S.C.
1431 et seq.) and from other related Federal and State
sources is available to address the needs of the young
children; and
(H) an assurance that the funds made available
through the grant will not be used for activities that
the State pays for with funds made available under the
medicaid program carried out under title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.), under the
State children's health insurance program carried out
under title XXI of the Social Security Act (42 U.S.C.
1397aa et seq.), or from State and local funds for
mental health programs.
(h) Use of Funds.--
(1) In general.--Except as provided in paragraphs (2) and
(3), an entity that receives a grant under this section may use
the funds made available through the grant to promote the
mental health and healthy emotional development of young
children by--
(A) providing screening and assessments of the
mental health and developmental needs of the young
children to be served under the grant and, as
appropriate, their families;
(B) providing for consultations with staff of
programs described in subsection (f)(1) by mental
health and other early childhood development experts,
such as speech and language therapists and special
education consultants, who can provide programmatic and
individual child-centered and family-focused assistance
to help the staff respond in the manner most conducive
to promoting the mental health and healthy emotional
development of young children;
(C) providing professional development, including
specialized training and supervision, for staff of
programs described in subsection (f)(1) and other early
childhood service providers and, as appropriate, for
families of young children, about the mental health and
developmental needs of young children, to enable the
staff and families to develop the skills and
competencies necessary to respond to the needs of, and
provide needed assistance to, the young children and
their families to promote the children's mental health
and healthy emotional development;
(D) providing prevention and early intervention
services, including home visitation, parenting
education, and other activities, parent-child groups,
and other individualized supports for families of young
children (including parents, grandparents, other
relative caregivers, foster parents, and other
individuals responsible for raising young children),
that are designed to promote mental health and healthy
emotional development of young children;
(E) providing crisis services;
(F) facilitating access to treatment and services
to enable staff of programs described in subsection
(f)(1) to promote mental health and healthy emotional
development by attending appropriately to the emotional
and behavioral concerns facing young children and their
families;
(G) providing increased collaboration between staff
of programs providing early childhood, child
development, and children's mental health services,
and, as appropriate, staff from other service delivery systems such
as--
(i) the courts; and
(ii) service delivery systems for substance
abuse treatment, domestic violence service and
treatment, health, and adult and child mental
health programs; and
(H) providing case management services for young
children and, as appropriate, their families, to help
link the children and families who need more
specialized interventions to appropriate services and
treatment.
(2) Planning and collaboration.--
(A) In general.--An entity that requests authority
to use grant funds made available under this section
for planning and collaboration activities, and receives
a grant under this section, may use a portion of the
grant funds as described in subparagraph (B).
(B) Activities.--The entity may use not more than
50 percent of the grant funds for a period of not more
than 6 months at the beginning of the grant period to
carry out planning and collaboration activities that
will help ensure that the needs of young children will
be addressed appropriately through the activities
carried out under the grant. The planning and
collaboration activities shall build on the work of
and, to the extent possible, be carried out by early
childhood service coordinating offices in the community
in which the grant activities will be carried out.
(3) Designated activities.--The Secretary may, during the
3-year period beginning on the date of the establishment of the
program described in subsection (c), award grants to State
agencies under subsection (c), to enable the State agencies to
assist eligible entities specifically to promote the training
of early childhood mental health specialists, in conjunction
with entities such as community colleges, schools of social
work, and institutions offering psychology programs, through
degree programs or internships or fellowships in early
childhood mental health.
(i) State Collaboration.--The State agency shall review
applications submitted under subsection (g), make grants under
subsection (e), and carry out the administration and oversight of the
programs described in subsection (e) in collaboration with--
(1) the State mental health agency;
(2) the State entity designated to receive collaboration
grants under section 640(a)(5) of the Head Start Act (42 U.S.C.
9835(a)(5)); and
(3) other State offices responsible for child welfare
programs, substance abuse treatment programs, or domestic
violence service programs, serving young children within the
State.
(j) Supplement Not Supplant.--Funds appropriated pursuant to the
authority of this section shall be used to supplement and not supplant
other public funds expended to promote the mental health and healthy
emotional development of young children.
(k) Collaboration.--In carrying out this section, the Secretary
shall collaborate with the Administrator of the Substance Abuse and
Mental Health Services Administration, the Administrator of the Health
Care Financing Administration, and the heads of relevant offices of the
Department of Education that address the concerns of young children.
(l) Report.--A State that receives a grant under this section
shall, not later than 90 days after the end of the grant period,
prepare and submit to the Secretary a report that includes--
(1) information on the needs of the young children, and
their families, who were assisted with the grant funds;
(2) information on the strategies for which the grant funds
were used, and how the funds were combined with other funds to
expand the strategies;
(3) documentation that the activities provided were
developmentally appropriate, child-centered, and, as
appropriate, family-focused, and directed toward preventing
emotional problems, and involved collaboration with mental
health and other developmental experts;
(4) a discussion of--
(A) the extent to which entities in the State
increased the number of activities (similar to
activities carried out under this section) carried out
in the State that were funded from sources other than
funds made available under this section during the
grant period; and
(B) the barriers to increasing the number of those
activities that were so funded; and
(5) a discussion of how the funds made available through
the grant helped to improve outcomes for the young children and
families served, particularly with regard to the goal of school
readiness.
(m) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $25,000,000 for fiscal year 2002;
(2) $40,000,000 for fiscal year 2003;
(3) $55,000,000 for fiscal year 2004;
(4) $70,000,000 for fiscal year 2005; and
(5) $85,000,000 for fiscal year 2006.
TITLE IX--SUCCESSFUL TRANSITION TO ADULTHOOD
Subtitle A--21st Century Community Learning Centers
SEC. 9001. CENTERS.
Part I of title X (20 U.S.C. 8241 et seq.) is amended to read as
follows:
``PART I--21st CENTURY COMMUNITY LEARNING CENTERS
``SEC. 10901. SHORT TITLE.
``This part may be cited as the `21st Century Community Learning
Centers Act'.
``SEC. 10902. PURPOSE.
``The purpose of this part is to provide opportunities to
communities to establish or expand activities in community learning
centers that--
``(1) provide opportunities for academic enrichment,
including providing tutorial services to help students,
particularly students who attend low-performing schools, to
meet State and local student performance standards in core
academic subjects, such as reading and mathematics;
``(2) offer students a broad array of additional services,
programs, and activities, such as youth development activities,
drug and violence prevention programs, art, music, and
recreation programs, technology education programs, and
character education programs, that are designed to reinforce
and complement the regular academic program of participating
students; and
``(3) offer families of students enrolled in community
learning centers opportunities for lifelong learning and
literacy development.
``SEC. 10903. DEFINITIONS.
``In this part:
``(1) Community learning center.--The term `community
learning center' is an entity that--
``(A)(i) assists students to meet State content and
student performance standards in core academic
subjects, such as reading and mathematics, by primarily
providing to the students, during non-school hours or
periods when school is not in session, tutorial and
other academic enrichment services in addition to other
activities (such as youth development activities, drug
and violence prevention programs, art, music, and
recreation programs, technology education programs, and
character education programs) that reinforce and
complement the regular academic program of the
students; and
``(ii) offers families of students enrolled in such
center opportunities for lifelong learning and literacy
development; and
``(B) is operated by 1 or more local educational
agencies, community-based organizations, units of
general purpose local government, or other public or
private entities.
``(2) Covered program.--The term `covered program' means a
program for which--
``(A) the Secretary made a grant under this part
(as in effect on the day before the date of enactment
of the Leave No Child Behind Act of 2001); and
``(B) the grant period had not ended on that date
of enactment.
``(3) Eligible organization.--The term `eligible
organization' means--
``(A) a local educational agency, a community-based
organization, a unit of general purpose local
government, or another public or private entity; or
``(B) a consortium of entities described in
subparagraph (A).
``(4) State.--The term `State' means the State educational
agency of a State (as defined in section 14101).
``(5) Unit of general purpose local government.--The term
`unit of general purpose local government' means any city,
town, township, parish, village, or other general purpose
political subdivision.
``SEC. 10904. PROGRAM AUTHORIZED.
``The Secretary is authorized to award grants to States to make
awards to eligible organizations to plan, implement, or expand
community learning centers that serve--
``(1) students who primarily attend--
``(A) schools eligible for schoolwide programs
under section 1114; or
``(B) schools that serve a high percentage of
students from low-income families; and
``(2) the families of students described in paragraph (1).
``SEC. 10905. ALLOTMENTS TO STATES.
``(a) Reservation.--From the funds appropriated under section 10910
for any fiscal year, the Secretary shall reserve--
``(1) such amount as may be necessary to make continuation
awards for covered programs to grant recipients under this part
(under the terms of those grants), as in effect on the day
before the date of enactment of the Leave No Child Behind Act
of 2001;
``(2) not more than 1 percent for national activities,
which the Secretary may carry out directly or through grants
and contracts, such as providing technical assistance to
organizations carrying out programs under this part or
conducting a national evaluation; and
``(3) not more than 1 percent for payments to the outlying
areas and the Bureau of Indian Affairs, to be allotted in
accordance with their respective needs for assistance under
this part, as determined by the Secretary, to enable the areas
and the Bureau to carry out the objectives of this part.
``(b) State Allotments.--
``(1) Determination.--
``(A) Basis.--From the funds appropriated under
section 10910 for any fiscal year and remaining after
the Secretary makes reservations under subsection (a),
the Secretary shall allot to each State for the fiscal
year an amount that bears the same relationship to the
remainder as the amount the State received under
subpart 2 of part A of title I for the preceding fiscal
year bears to the amount all States received under that
subpart for the preceding fiscal year, except as
provided in subparagraph (B).
``(B) Exception.--No State receiving an allotment
under subparagraph (A) may receive less than \1/2\ of 1
percent of the total amount allotted under subparagraph
(A) for a fiscal year.
``(2) Definition.--In this subsection, the term `State'
means each of the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
``SEC. 10906. STATE PLANS.
``Each State seeking a grant under this part shall submit to the
Secretary a plan, which may be submitted as part of a State's
consolidated plan under section 14302, at such time, in such manner,
and containing such information as the Secretary may reasonably
require. At a minimum, the plan shall--
``(1) describe how the State will use funds received under
this part, including funds reserved for State-level activities;
``(2) contain an assurance that the State will make awards
under this part for eligible organizations only to eligible
organizations that propose to serve--
``(A) students who primarily attend--
``(i) schools eligible for schoolwide
programs under section 1114; or
``(ii) schools that serve a high percentage
of students from low-income families; and
``(B) the families of students described in
subparagraph (A);
``(3) describe the procedures and criteria the State will
use for reviewing applications and awarding funds to eligible
organizations on a competitive basis, which shall include
procedures and criteria that take into consideration the
likelihood that a proposed center will help participating
students meet local content and performance standards by
increasing their academic performance and achievement;
``(4) describe how the State will ensure that awards made
under this part are--
``(A) of sufficient size and scope to support high-
quality, effective programs that are consistent with
the purpose of this part; and
``(B) in amounts that are consistent with section
10908(b);
``(5) contain an assurance that the State--
``(A) will not make awards for programs that exceed
4 years;
``(B) will ensure an equitable distribution of
awards among urban and rural areas of the State; and
``(C) will require each eligible organization
seeking such an award to submit a plan describing how
the center to be funded through the award will continue
after funding under this part ends;
``(6) describe the State's performance measures for
programs carried out under this part, including measures
relating to increased academic performance and achievement, and
how the State will evaluate the effectiveness of those
programs;
``(7) contain an assurance that funds appropriated to carry
out this part will be used to supplement, and not supplant,
other Federal, State, and local public funds expended to
provide programs and activities authorized under this part; and
``(8) contain an assurance that the State will require
eligible organizations to describe in their applications under
section 10909 how the transportation needs of participating
students will be addressed.
``SEC. 10907. STATE-LEVEL ACTIVITIES.
``(a) In General.--A State that receives an allotment under section
10905 for a fiscal year shall use not more than 6 percent of the funds
made available through the allotment for State-level activities
described in paragraphs (1) and (2) of subsection (b).
``(b) Activities.--
``(1) Planning, peer review, and supervision.--The State
may use not more than 3 percent of the funds made available
through the allotment to pay for the costs of--
``(A) establishing and implementing a peer review
process for applications described in section 10909
(including consultation with the Governor and other
State agencies responsible for administering youth
development programs and adult learning activities);
``(B) supervising the awarding of funds to eligible
organizations (in consultation with the Governor and
other State agencies responsible for administering
youth development programs and adult learning
activities);
``(C) planning and supervising the use of funds
made available under this part, and processing the
funds; and
``(D) monitoring activities.
``(2) Evaluation, training, and technical assistance.--The
State may use not more than 3 percent of the funds made
available through the allotment to pay for the costs of--
``(A) comprehensive evaluation (directly, or
through a grant or contract) of the effectiveness of
programs and activities provided under this part; and
``(B) providing training and technical assistance
to eligible organizations who are applicants or
recipients of awards under this part.
``SEC. 10908. AWARDS TO ELIGIBLE ORGANIZATIONS.
``(a) Awards.--A State that receives an allotment under section
10905 for a fiscal year shall use not less than 94 percent of the funds
made available through the allotment to make awards on a competitive
basis to eligible organizations.
``(b) Amounts.--The State shall make the awards in amounts of not
less than $50,000.
``SEC. 10909. LOCAL APPLICATION.
``(a) Application.--To be eligible to receive an award under this
part, an eligible organization shall submit an application to the State
at such time, in such manner, and including such information as the
State may reasonably require. Each such application shall include--
``(1) an evaluation of the needs, available resources, and
goals and objectives for the proposed community learning center
and a description of how the program proposed to be carried out
in the center will address those needs (including the needs of
working families); and
``(2) a description of the proposed community learning
center, including--
``(A) a description of how the eligible
organization will ensure that the program proposed to
be carried out at the center will reinforce and
complement the instructional programs of the schools
that students served by the program attend;
``(B) an identification of Federal, State, and
local programs that will be combined or coordinated
with the proposed program in order to make the most
effective use of public resources;
``(C) an assurance that the proposed program was
developed, and will be carried out, in active
collaboration with the schools the students attend;
``(D) evidence that the eligible organization has
experience, or demonstrates promise of success, in
providing educational and related activities that will
complement and enhance the students' academic
performance and achievement and positive youth
development;
``(E) an assurance that the program will take place
in a safe and easily accessible school or other
facility;
``(F) a description of how students participating
in the program carried out by the center will travel
safely to and from the center and home;
``(G) a description of how the eligible
organization will disseminate information about the
program to the community in a manner that is
understandable and accessible; and
``(H) a description of a preliminary plan for how
the center will continue after funding under this part
ends.
``(b) Priority.--In making awards under this part, the State shall
give equal priority to applications--
``(1) submitted jointly by schools receiving funding under
part A of title I and community-based organizations or other
eligible organizations;
``(2) submitted by such schools or consortia of such
schools; and
``(3) submitted by community-based organizations or other
eligible organizations serving communities in which such
schools are located.
``(c) Approval of Certain Applications.--The State may approve an
application under this part for a program to be located in a facility
other than an elementary school or secondary school, only if the
program--
``(1) will be accessible to the students proposed in the
application to be served; and
``(2) will be as effective as the program would be if the
program were located in such a school.
``SEC. 10910. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$1,500,000,000 for fiscal year 2002 and such sums as may be necessary
for each of the 6 succeeding fiscal years.
Subtitle B--Youth Development
CHAPTER 1--SHORT TITLE; POLICY; FINDINGS; DEFINITIONS
SEC. 9101. SHORT TITLE.
This subtitle may be cited as the ``Younger Americans Act''.
SEC. 9102. A NATIONAL YOUTH POLICY.
It is the policy of the United States, in keeping with the
traditional United States concept that youth are the Nation's most
valuable resource, that youth of the Nation need, and it is the joint
and several duty and responsibility of governments of the United
States, of the several States and political subdivisions, and of Indian
tribes, to assure that all youth have access to, the full array of core
resources, including--
(1) ongoing relationships with caring adults;
(2) safe places with structured activities;
(3) services that promote healthy lifestyles, including
services designed to improve physical and mental health;
(4) opportunities to acquire marketable skills and
competencies; and
(5) opportunities for community service and civic
participation.
SEC. 9103. FINDINGS.
Congress finds that--
(1) young people under 18 years of age are now the most
impoverished age group, with 1 of every 5 of the young people
living in poverty, a greater proportion than in 1968, with the
proportion of minority children who are living in poverty being
about twice as great;
(2) more than 1 of 4 families is headed by a single parent
and the percentage of families headed by single parents has
risen steadily over the past few decades, and has risen 13
percent since 1990;
(3) approximately 8,000,000 school-age children under 14
years of age spend time without adult supervision on a regular
basis;
(4) an estimated 11,000,000 United States children have no
health insurance and 9 out of 10 of such children have parents
who work;
(5) there is a need to address the developmental needs of
all youth while providing more intensive support for youth in
communities where need is greatest;
(6) there is a need to engage youth as active participants
in decisionmaking that affects their lives, including the
design, development, implementation, and evaluation of youth
development programs at the Federal, State, and community
levels;
(7) existing outcome driven youth development strategies,
pioneered by community-based organizations, hold real promise
for promoting positive behaviors and preventing youth problems;
(8) formal evaluations of youth development programs have
documented significant improvements in interpersonal skills,
quality of peer and adult relationships, self-control,
cognitive competencies, commitment to schooling, and academic
achievement;
(9) formal evaluations of youth development programs have
documented significant reductions in drug and alcohol use,
school misbehavior, aggressive behavior, violence, truancy,
high-risk sexual behavior, and smoking;
(10) compared to United States youth generally, youth
participating in activities provided by community-based
organizations are more than 26 percent more likely to report
having received recognition for good grades than United States
youth generally and nearly 20 percent more likely to rate the
likelihood of their going to college as ``very high'' than
United States youth generally;
(11) a partnership between the public and private sector is
necessary to promote access to the full array of core resources
for youth who need such resources because the private sector
alone does not have the capacity to promote such access; and
(12) the availability and use of Federal resources can be
effective incentives to leverage broader community support to
enable entities carrying out or providing local programs,
activities, and services to provide the full array of core
resources, remove barriers to access, promote program
effectiveness, and facilitate coordination of activities and
collaboration within the community.
SEC. 9104. DEFINITIONS.
In this subtitle:
(1) Area agency on youth.--The term ``area agency on
youth'' means an area agency on youth designated under section
9124(a)(2)(A).
(2) Associate commissioner.--The term ``Associate
Commissioner'' means the Associate Commissioner of the Family
and Youth Services Bureau of the Administration on Children,
Youth, and Families of the Department of Health and Human
Services.
(3) Community-based.--The term ``community-based'', used
with respect to an organization, means an organization that--
(A) is representative of a community or significant
segment of a community; and
(B) is engaged in providing services to the
community.
(4) Community board.--The term ``community board'' means a
community board established in accordance with section 9127(a).
(5) Director.--The term ``Director'' means the Director of
the Office on National Youth Policy.
(6) Funding and coordinating agency.--The term ``funding
and coordinating agency'' means an organization that is
directed by a board with wide representation from a community,
that generates and distributes charitable funds for diverse
health and human service programs and coordinates the efforts
of multiple agencies as needed or requested, but that does not
itself provide direct services to children, youth, or their
families.
(7) Indian.--The term ``Indian'' has the meaning given the
term in section 4(d) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b(d)).
(8) Native American organization.--The term ``Native
American organization'' means--
(A) a tribal organization, as defined in section
4(l) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b(l));
(B) a Native Hawaiian Organization, as defined in
section 4009(4) of the Augustus F. Hawkins-Robert T.
Stafford Elementary and Secondary School Improvement
Amendments of 1988 (20 U.S.C. 4909(4)) (as in effect on
the day before the date of enactment of the Improving
America's Schools Act of 1994);
(C) an Alaska Native Village Corporation or
Regional Corporation as defined in or established
pursuant to the Alaskan Native Claims Settlement Act
(43 U.S.C. 1601 et seq.); or
(D) a private nonprofit organization established
for the purpose of serving youth who are Indians or
Native Hawaiians.
(9) Native hawaiian.--The term ``Native Hawaiian'' has the
meaning given the term in section 4009(1) of the Augustus F.
Hawkins-Robert T. Stafford Elementary and Secondary School
Improvement Amendments of 1988 (20 U.S.C. 4909(1)) (as in
effect on the day before the date of enactment of the Improving
America's Schools Act of 1994).
(10) Office.--The term ``Office'' means the Office of
National Youth Policy.
(11) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(12) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico.
(13) Unit of general purpose local government.--The term
``unit of general purpose local government'' means--
(A) a political subdivision of a State whose
authority is general and not limited to only 1 function
or combination of related functions; or
(B) a Native American organization.
(14) Youth.--The term ``youth'' means an individual who is
not younger than age 10 and not older than age 19.
(15) Youth development organization.--The term ``youth
development'', used with respect to an organization, means a
public or private youth-serving organization with a major
emphasis on providing youth development programs.
(16) Youth development programs.--The term ``youth
development programs'' means programs that prepare youth to
contribute to their communities and to meet the challenges of
adolescence and adulthood through a structured, progressive
series of activities and experiences that (in contrast to
deficit-based approaches that focus solely on youth problems)
that--
(A) help the youth obtain social, emotional,
ethical, physical, and cognitive competencies; and
(B) address the broader developmental resources all
children and youth need, such as the core resources
described in section 9102.
(17) Youth-serving organization.--The term ``youth-
serving'', used with respect to an organization, means a public
or private organization with a primary focus on providing youth
development programs, or health, mental health, fitness,
education, workforce preparation, substance abuse prevention,
child welfare, psychological, parenting, recreation, teen
pregnancy prevention, rehabilitative, or residential services,
to youth.
CHAPTER 2--COORDINATION OF NATIONAL YOUTH POLICY
SEC. 9111. OFFICE ON NATIONAL YOUTH POLICY.
(a) Establishment.--There is established in the Executive Office of
the President an Office of National Youth Policy.
(b) Administration.--The Office of National Youth Policy
established under subsection (a) shall be administered by a Director
who shall be appointed by the President with the advice and consent of
the Senate.
(c) Responsibilities.--The Director appointed under subsection (b)
shall--
(1) establish, in cooperation with the Associate
Commissioner, policies, objectives, and priorities for programs
funded under this subtitle;
(2) serve as an effective and visible advocate for youth in
the Federal Government, and with other departments, agencies,
and instrumentalities of the Federal Government, by actively
reviewing and commenting on all Federal policies affecting
youth;
(3) develop mechanisms to resolve administrative and
programmatic conflicts between Federal programs that would be
barriers to parents, community-based, youth-serving, and youth
development organizations, local government entities, education
entities, older adult organizations, faith-based organizations,
and organizations supporting youth involved in community
service and civic participation, related to the coordination of
services and funding for programs promoting access to the full
array of core resources described in section 9102; and
(4) consult with and assist State and local governments
with respect to barriers the governments encounter related to
the coordination of services and funding for programs under
this subtitle.
(d) Authorization of Appropriations.--For the purposes of carrying
out this chapter, there are authorized to be appropriated $500,000 for
fiscal year 2002 and such sums as may be necessary for each of the 4
succeeding fiscal years, to remain available until expended.
SEC. 9112. COUNCIL ON NATIONAL YOUTH POLICY.
(a) Establishment.--
(1) In general.--There is established in the Office a
Council on National Youth Policy (referred to in this section
as the ``Council'').
(2) Composition.--
(A) Number.--The Council shall be composed of 12
members.
(B) Qualifications.--The President shall appoint
the 12 members of the Council from among--
(i) individuals who have expertise or
experience with youth development or youth-
serving programs, especially programs serving
rural and inner-city urban youth;
(ii) representatives of national
organizations with an interest in youth
development programs;
(iii) representatives of business;
(iv) representatives of minorities; and
(v) parents.
(C) Age.--At least \1/3\ of the individuals
appointed shall be younger than age 21 at the time of
appointment.
(D) Limitations.--No full-time officer or employee
of the Federal Government may be appointed to be a
member of the Council.
(b) Appointment and Terms.--
(1) Terms.--
(A) In general.--Except as otherwise provided in
this section, a member of the Council shall serve for a
term of 3 years.
(B) End of term.--The term shall end on March 31
regardless of the actual date of the appointment of the
member.
(2) Service.--Members of the Council shall serve without
regard to the provisions of title 5, United States Code.
(c) Service During Vacancies.--Any member appointed to fill a
vacancy occurring prior to the expiration of the term for which such
member's predecessor was appointed shall be appointed for the remainder
of such term. Members shall be eligible for reappointment and may
continue to serve after the expiration of their terms until their
successors have taken office.
(d) Vacancies.--Any vacancy in the Council shall not affect the
powers of the Council, but shall be filled in the same manner as the
original appointment was made.
(e) Chairperson.--The President shall designate a Chairperson for
the Council from among the members appointed to the Council.
(f) Meetings.--The Council shall meet at the call of the
Chairperson at least twice a year.
(g) Duties.--The Council shall--
(1) advise and assist the President on matters regarding
the core resources youth need and the capacity of youth to
contribute to the Nation and their communities;
(2) directly advise the Director and the Associate
Commissioner on matters affecting the youth development needs
of youth for services and assistance under this subtitle;
(3) make recommendations to the President, to the Director,
to the Secretary, to the Associate Commissioner, and to
Congress with respect to Federal policies regarding youth; and
(4) provide public forums for discussion, publicize the
core resources youth need, and obtain information relating to
assuring all youth access to the full array of core resources
described in section 9102, by conducting public hearings, and
by conducting or sponsoring conferences, workshops, and other
similar meetings.
(h) Travel Expenses.--Members of the Council shall not receive
compensation for the performance of services for the Council, but shall
be allowed travel expenses, including per diem in lieu of subsistence,
at rates authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from their homes
or regular places of business in the performance of services for the
Council. Notwithstanding section 1342 of title 31, United States Code,
the Director may accept the voluntary and uncompensated services of
members of the Council.
(i) Reports.--Not later than March 31 of 2003 and each subsequent
year, the Council shall prepare and submit to the President an annual
report of the findings and recommendations of the Council. The
President shall transmit each such report to Congress together with
comments and recommendations.
(j) Permanent Committee.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the Council.
(k) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $250,000 for fiscal year 2002
and such sums as may be necessary for fiscal years 2003 through 2006.
CHAPTER 3--GRANTS FOR STATE AND COMMUNITY PROGRAMS
SEC. 9121. PURPOSE.
The purpose of this chapter is to encourage and assist State
agencies, community boards, and area agencies on youth to mobilize and
support communities in planning, implementing, and being accountable
for strategies that link community-based organizations, local
government, volunteer centers, schools, faith-based organizations,
business, and other segments of the community to assure that all youth
have access to the full array of core resources consisting of--
(1) ongoing relationships with caring adults;
(2) safe places with structured activities;
(3) services that promote healthy lifestyles, including
services designed to improve physical and mental health;
(4) opportunities to acquire marketable skills and
competencies; and
(5) opportunities for community service and civic
participation.
SEC. 9122. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this chapter
$500,000,000 for fiscal year 2002, $750,000,000 for fiscal year 2003,
$1,000,000,000 for fiscal year 2004, $1,500,000,000 for fiscal year
2005, and $2,000,000,000 for fiscal year 2006.
SEC. 9123. ALLOTMENTS TO STATES.
(a) Reservations.--From sums appropriated under section 9122 for
each fiscal year, the Associate Commissioner shall reserve--
(1) 95 percent of the sums for allotments to States to
enable the States to make allocations to area agencies on
youth;
(2) 1 percent of the sums for grants to Native American
organizations to carry out activities consistent with the
objectives of this chapter;
(3) 1 percent of the sums for grants to outlying areas to
carry out activities consistent with the objectives of this
chapter; and
(4) 3 percent of the sums for Federal discretionary grant
programs aimed at demonstrating ways to respond to the special
developmental needs of youth--
(A) in correctional facilities and other out-of-
home residential settings;
(B) in areas with high concentrations of poverty;
(C) in rural areas; and
(D) in situations where youth are at higher risk
due to abuse, neglect, disconnection from family,
disconnection from school, or another community risk
factor.
(b) Use of Funds.--For each fiscal year for which a State receives
a State allotment, the State shall ensure that funds made available
through the allotment shall be used for the purpose of conducting
community-based youth development programs that--
(1) recognize the primary role of the family in positive
youth development in order to strengthen families;
(2) promote the involvement of youth (including program
participants), parents, and other community members in the
planning and implementation of the programs;
(3) coordinate services with other entities providing youth
and family services in the community;
(4) eliminate barriers, such as transportation, cost, and
service delivery location, to the accessibility of core youth
development services;
(5) provide, directly or through a written contract, a
broad variety of accessible programs, activities, and services
for youth that are designed to assist youth in acquiring skills
and competencies that are necessary to make a successful
transition from childhood to adulthood;
(6) incorporate activities that foster relationships
between positive adult role models and youth, provide age-
appropriate activities, and provide activities that engage
youth in, and promote, positive youth development, including
activities such as--
(A) youth clubs, character development activities,
mentoring, community service, leadership development,
recreation, and literacy and educational tutoring;
(B) sports, workforce readiness activities, peer
counseling, and fine and performing arts; and
(C) camping and environmental education, cultural
enrichment, risk avoidance programs, academic
enrichment, and participant-defined special interest
group activities, courses, or club; and
(7) employ strong outreach efforts to engage the
participation of a wide range of youth, families, and service
providers.
(c) Allotments.--
(1) In general.--Except as provided in paragraph (2), from
sums reserved under subsection (a)(1), the Associate
Commissioner shall allot to each State the sum (referred to in
this chapter as the ``State allotment'') of--
(A) an amount that bears the same relation to \1/2\
of the reserved sums as the number of individuals who
are not younger than age 10 and not older than age 19
in the State bears to the number of such individuals in
all the States; and
(B) an amount that bears the same relation to \1/2\
of the reserved sums as the number of youth who are
receiving free or reduced price lunches under the
school lunch program established under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et
seq.) in the State bears to the number of such youth in
all the States.
(2) State minimum.--No State shall be allotted less than
0.40 percent of the reserved sums for a fiscal year.
(3) Determinations.--For purposes of this subsection, the
number of individuals who are not younger than age 10 and not
older than age 19 in any State and in all the States, and the
number of youth who are receiving free or reduced price lunches
under the school lunch program established under the Richard B.
Russell National School Lunch Act in any State and in all the
States, shall be determined by the Associate Commissioner on
the basis of the most recent data available from the Bureau of
the Census, and other reliable demographic data satisfactory to
the Associate Commissioner.
(d) Reallotments.--Whenever the Associate Commissioner determines
that any amount allotted to a State for a fiscal year under this
section will not be used by such State for carrying out the purpose for
which the allotment was made, the Associate Commissioner shall make
such amount available for carrying out such purpose to 1 or more other
States to the extent the Associate Commissioner determines that such
other States will be able to use such amount for carrying out such
purpose.
(e) Withholding.--
(1) In general.--If the Associate Commissioner finds that
any State has failed to meet the State plan requirements of
section 9125 or the allocation requirements of section 9126(b),
the Associate Commissioner shall withhold the State allotment
from such State.
(2) Disbursal.--The Associate Commissioner shall disburse
the funds withheld directly to any entity that is a public or
private institution, organization, or agency, or unit of
general purpose local government of such State that submits an
approved plan described in section 9128, if the plan includes
an agreement that the entity will--
(A) make available (directly or through donations
from public or private entities) non-Federal
contributions, in cash or in kind, in an amount equal
to a percentage determined for the State of the funds;
and
(B) comply with the requirements of this subtitle
that apply to States receiving State allotments under
this section.
SEC. 9124. STATE AGENCIES AND PLANNING AND MOBILIZATION AREAS.
(a) State Agencies.--In order for a State to be eligible to receive
a State allotment under this chapter--
(1) the State shall, in accordance with regulations issued
by the Associate Commissioner, designate a State agency as the
sole State agency to--
(A) develop a State plan to be submitted to the
Associate Commissioner for approval pursuant to section
9125;
(B) administer the plan in the State;
(C) be primarily responsible for the planning,
policy development, administration, coordination,
priority setting, and evaluation of all State
activities related to the objectives of this subtitle;
(D) serve as an effective and visible advocate for
youth by reviewing and commenting on all State plans,
budgets, and policies that affect youth; and
(E) divide the State into distinct planning and
mobilization areas, after considering the views offered
by units of general purpose local government and
appropriate public or private agencies and
organizations in the State, in accordance with
regulations issued by the Associate Commissioner; and
(2) the State agency shall--
(A) designate for each such area, after
consideration of the views offered by the units of
general purpose local government and by agencies and
organizations in such areas, a public or private
nonprofit agency or organization to serve as the area
agency on youth for such area;
(B) provide assurances that the State agency will
solicit and take into account, with regard to general
policy related to the development and the
administration of the State plan for any fiscal year,
the views of youth who are the recipients of services
provided for in the plan;
(C) in accordance with guidelines issued by the
Associate Commissioner, make allocations to area
agencies on youth pursuant to section 9126(b);
(D) provide reasonable assurances that Federal
funds made available under this chapter for the State
for any period will be used to supplement, and not
supplant, the State, local, and other funds that would
in the absence of such Federal funds be made available
for the programs, services, and activities described in
this chapter;
(E) coordinate the activities of the State agency
with other State agencies and offices, including--
(i) State Commissions on National and
Community Service established under section 178
of the National and Community Service Act of
1990 (42 U.S.C. 12638);
(ii) entities carrying out programs under
the Runaway and Homeless Youth Act (42 U.S.C.
5701 et seq.) and other programs under the
Juvenile Justice and Delinquency Prevention Act
of 1974 (42 U.S.C. 5601 et seq.);
(iii) entities carrying out independent
living programs;
(iv) entities carrying out foster care
programs;
(v) youth councils established under
section 117(h) of the Workforce Investment Act
of 1998 (29 U.S.C. 2832(h)); and
(vi) entities carrying out activities
through 21st Century Community Learning Centers
under part I of title X of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8241
et seq.); and
(F) compile reports from area agencies on youth,
including outcome data and evaluation information
regarding programs funded under this chapter, provide
an annual report based on the compilation to the
Associate Commissioner, and provide a copy of such
report to the Director.
(b) Planning and Mobilization Areas.--
(1) Unit of general purpose local government.--
(A) Criteria.--In carrying out subsection (a)(1),
the State agency may designate as a planning and
mobilization area any unit of general purpose local
government that has a population of 100,000 or more. In
particular, the State agency may designate such a unit
as a planning and mobilization area if the unit has
been engaged in youth development program planning and
mobilization, such as a community of promise
coordinated by America's Promise: the Alliance for
Youth.
(B) Hearing.--In any case in which a unit of
general purpose local government applies to the State
agency to be designated as a planning and mobilization
area under this paragraph, the State agency shall, upon
request, provide an opportunity for a hearing to such
unit of general purpose local government.
(2) Region.--The State agency may designate as a planning
and mobilization area under subsection (a)(1) any region in the
State that includes 1 or more units of general purpose local
government if the State agency determines that the designation
of such a regional planning and mobilization area is necessary
for, and will enhance, the effective administration of the
programs authorized by this chapter.
(3) Additional areas.--The State agency may include in any
planning and mobilization area designated under subsection
(a)(1) such additional areas, adjacent to a unit of general
purpose local government, as the State agency determines to be
necessary for, and will enhance, the effective administration
of the programs authorized by this chapter.
(4) Indian reservations.--The State agency, in carrying out
subsection (a)(1), shall to the extent practicable include all
portions of an Indian reservation in a single planning and
mobilization area.
SEC. 9125. STATE PLANS.
(a) In General.--To be eligible to receive a State allotment under
this chapter, a State shall prepare and submit to the Associate
Commissioner a State plan, for a 2-, 3-, or 4-year period determined by
the State agency, at such time, in such manner, and meeting such
criteria as the Associate Commissioner may by regulation prescribe, and
shall make such annual revisions as may be necessary to the plan.
(b) Contents.--Each such State plan shall contain assurances that
the plan is based on area plans developed under section 9128 by area
agencies on youth in the State and that the State has prepared and
distributed a uniform format for use by area agencies on youth in
developing the area plans.
SEC. 9126. DISTRIBUTION OF FUNDS FOR STATE ACTIVITIES AND LOCAL
ALLOCATIONS.
(a) In General.--From a State allotment made under this chapter for
any fiscal year--
(1)(A) the State agency may use such amount as the State
agency determines to be appropriate, but not more than 7
percent, for the purposes of subparagraphs (B) and (C);
(B) the State agency may use such amount as the State
agency determines to be appropriate, but not more than 4
percent of the State allotment, for paying the cost of--
(i) reviewing area plans and distributing funds to
area agencies on youth; and
(ii) assisting community boards and area agencies
on youth in carrying out activities under this chapter;
and
(C) the State agency may use such amount as the State
agency determines to be appropriate, but not less than 3
percent and not more than 7 percent of the State allotment, for
making State discretionary grants to respond to the special
developmental needs of youth--
(i) in correctional facilities and other out-of-
home residential settings;
(ii) in areas with high concentrations of poverty;
(iii) in rural areas; and
(iv) in situations where youth are at greater risk
due to abuse, neglect, disconnection from family,
disconnection from school, or another community risk
factor; and
(2) the State agency shall use the remainder of such
allotment to make allocations under subsection (b) to area
agencies on youth associated with planning and mobilization
areas, to pay for the cost of programs under this chapter that
are specified in area plans that--
(A) are developed through a comprehensive and
coordinated system of planning;
(B) have been approved by the community board; and
(C) have been approved by the State agency.
(b) Allocations.--From the remainder of the State allotment
described in subsection (a)(2), the State agency, using the best
available data, shall allocate for each planning and mobilization area
in the State the sum of--
(1) an amount that bears the same relation to \1/2\ of the
remainder as the number of individuals who are not younger than
age 10 and not older than age 19 in the planning and
mobilization area bears to the number of such individuals in
the State; and
(2) an amount that bears the same relation to \1/2\ of the
remainder as the number of youth who are receiving free or
reduced price lunches under the school lunch program
established under the Richard B. Russell National School Lunch
Act (42 U.S.C. 1751 et seq.) in the planning and mobilization
area bears to the number of such youth in the State.
(c) Non-Federal Share.--A State that uses Federal funds provided
under this chapter to carry out the activities described in section
9126(a)(1)(B) shall make available (directly or through donations from
public or private entities) non-Federal contributions in cash in an
amount equal to not less than $1 for every $1 of the Federal funds.
SEC. 9127. COMMUNITY BOARDS AND AREA AGENCIES ON YOUTH.
(a) Community Board.--
(1) Selection.--
(A) Local governments and funding and coordinating
agencies.--Except as otherwise provided in this
paragraph, in order to receive funds from a State
pursuant to this chapter, a planning and mobilization
area shall have a community board appointed and
convened jointly by the chief executive officer of a
local funding and coordinating agency in the area and
the chief executive officers of units of general
purpose local government in the area.
(B) Private agencies and local governments.--In the
event that a local funding and coordinating agency is
not represented in the planning and mobilization area,
or the chief executive officer of a local funding and
coordinating agency in the area is unwilling or unable
to participate in jointly appointing and convening the
community board, the State agency, after consideration
of the views offered by the units of general purpose
local government and by nonprofit agencies and
organizations in such area, shall designate a private
nonprofit agency or organization in the area to appoint
and convene the community board jointly with the chief
executive officers of units of general purpose local
government in the area.
(C) Local funding and coordinating agencies and
public entities.--In the event that a chief executive
officer of a unit of general purpose local government
in the planning and mobilization area is unwilling or
unable to participate in jointly appointing and
convening the community board, the State agency, after
consideration of the views offered by the units of
general purpose local government and by youth-serving
organizations in such area, shall designate an
executive official of a public entity in the area to
appoint and convene the community board jointly with
the chief executive officer of a local funding and
coordinating agency and any other chief executive
officers of units of general purpose local government.
(D) Existing entity.--An existing entity in the
planning and mobilization area may serve as the
community board if--
(i) such entity's membership meets the
requirements for a community board or is
adapted to meet such requirements;
(ii) such entity's membership was appointed
by the chief executive officer of a unit of
general purpose local government in the area;
(iii) such entity is approved by the State
agency; and
(iv) such entity is approved by the chief
executive officer of a local funding and
coordinating agency, or by the chief executive
officer of a private nonprofit agency or
organization designated according to
subparagraph (B) in the event that a local
funding and coordinating agency is not
represented in the area or the chief executive
officer of the agency is unwilling or unable to
consider the approval of the entity.
(2) Composition.--A community board shall consist of an
equal number of local representatives from each of the
following 3 groups:
(A) A group comprised of individuals, including
minority individuals, under age 21 at the time of their
appointment.
(B) A group comprised of representatives of--
(i) private youth-serving and youth
development organizations (in existence as of
the date of appointment of the representatives
to the board);
(ii) public youth-serving and youth
development organizations; and
(iii) organizations supporting youth
involved in community service and civic
participation.
(C) A group comprised of representatives of--
(i) local elected officials;
(ii) educational entities, including local
elementary, middle, and secondary schools,
community colleges, colleges, and universities;
(iii) volunteer centers;
(iv) philanthropic organizations, including
community foundations;
(v) businesses and employee organizations;
(vi) faith-based organizations;
(vii) health and mental health agencies;
and
(viii) parents and grandparents.
(3) Chairperson.--After being appointed and convened, the
community board shall elect a chairperson from among its
membership.
(4) Responsibilities.--Each community board in each
planning and mobilization area shall have responsibility for
supervising the preparation, submission, and implementation of
the area plan described in section 9128, including the approval
of grants and contracts funded pursuant to this chapter within
the planning and mobilization area.
(b) Area Agency on Youth.--An area agency on youth--
(1) shall serve as the fiscal agent for a planning and
mobilization area;
(2) shall be under the supervision of the community board
for the planning and mobilization area with regard to
activities conducted pursuant to this chapter;
(3) shall provide an assurance to the State agency, that is
determined to be adequate by the State agency, that such area
agency on youth will have the ability to develop an area plan
for the planning and mobilization area and to carry out, either
directly or indirectly through contractual or other
arrangements, a youth development program in accordance with
such plan; and
(4) shall compile reports from entities carrying out
programs, services, and activities approved by the community
board for funding under this subtitle, including outcome data
and evaluation information regarding program accomplishments,
and provide an annual report based on the compilation to the
State agency.
(c) Community Mobilization Expenses.--An area agency on youth may
use not more than 10 percent of the allocation made to the agency under
this chapter for expenses related to community mobilization, including
expenses related to generating additional commitments of cash and in-
kind resources, administration, planning, monitoring, and evaluation.
SEC. 9128. AREA PLANS.
(a) In General.--Each area agency on youth for a planning and
mobilization area shall, in order to be approved by the State agency
and receive an allocation under this chapter, develop, prepare, and
submit to the State agency an area plan, approved by the community
board, for the planning and mobilization area at such time, in such
manner, and containing such information as the State agency may
require. Such plan shall be for a 2-, 3-, or 4-year period determined
by the State agency, with such annual revisions as may be necessary.
Each such plan shall be based upon a uniform format for area plans in
the State prepared in accordance with section 9125(b).
(b) Contents.--Each such plan shall--
(1) provide specific outcome objectives for youth
development programs, services, and activities to be carried
out in the planning and mobilization area, based on an
assessment of needs and resources, sufficient to assure that
all youth in the area have access through a comprehensive and
coordinated system to the full array of core resources that
consist of--
(A) ongoing relationships with caring adults;
(B) safe places with structured activities;
(C) services that promote healthy lifestyles,
including services designed to improve physical and
mental health;
(D) opportunities to acquire marketable skills and
competencies; and
(E) opportunities for community service and civic
participation;
(2) provide an assurance that, in awarding grants and
contracts to entities to implement the area plan to provide
youth with access to core resources described in paragraph (1) through
youth development programs, the agency will give priority to entities
as described in section 9130(b);
(3) provide that not less than 30 percent of the funds
allocated under this chapter for the planning and mobilization
area will be used for youth development programs that respond
to the special developmental needs of youth--
(A) in correctional facilities and other out-of-
home residential settings;
(B) in areas with high concentrations of poverty;
(C) in rural areas; and
(D) in situations where youth are at higher risk
due to abuse, neglect, disconnection from family,
disconnection from school, or another community risk
factor;
(4) provide assurances that youth engaged in programs
carried out under the area plan will be treated equitably;
(5) contain strategies for mobilizing and coordinating
community resources to meet the outcome objectives;
(6) describe activities for which funds made available
through the allocation will be used to fill gaps between unmet
needs and available resources;
(7) describe the inclusive process used by the area agency
on youth to engage all segments of the communities in the
planning and mobilization area in developing the area plan;
(8) provide measures of program effectiveness to be used in
evaluating the progress of the programs, services, and
activities approved by the community board in the area in
assuring access for all youth to the full array of core
resources described in paragraph (1), including specific
measures for providing access to such resources for youth
living in areas with high concentrations of poverty;
(9) describe how local requirements for providing matching
funds will be met, how resources will be leveraged, and the
uses to which matching funds and leveraged resources will be
applied, in carrying out the area plan;
(10) provide for the establishment and maintenance of
outreach sufficient to ensure that youth and their families in
the planning and mobilization area are aware of programs
providing access to the core resources described in paragraph
(1);
(11) provide that the area agency on youth, under the
supervision of the community board, will--
(A) conduct periodic evaluations of, and public
hearings on, activities carried out under the area
plan;
(B) furnish technical assistance to entities
carrying out programs under this chapter within the
planning and mobilization area;
(C) establish effective and efficient procedures
for the coordination of--
(i) entities carrying out programs under
this chapter within the planning and
mobilization area; and
(ii) entities carrying out other Federal
programs for youth within the planning and
mobilization area;
(D) conduct outreach, to identify youth in the area
and inform the youth of the availability of resources
under this subtitle; and
(E) take into account in connection with matters of
general policy arising in the development and
administration of the area plan, the views of youth who
have participated in programs pursuant to the plan; and
(12) provide for the utilization of entities carrying out
volunteer service centers and organizations supporting youth
involved in community service and civic participation in the
area to--
(A) encourage and enlist the services of local
volunteer groups to provide assistance and services
appropriate to the unique developmental needs of youth
in the planning and mobilization area;
(B) encourage, organize, and promote youth to serve
as volunteers to communities in the area; and
(C) promote recognition of the contribution made by
youth volunteers to programs administered in the
planning and mobilization area.
SEC. 9129. GRANTS AND CONTRACTS TO ELIGIBLE ENTITIES.
(a) Request for Proposals.--In implementing an area plan, once the
plan has been submitted to and approved by the State agency, an area
agency on youth, under the supervision of a community board, shall
issue a request for proposals, to award grants and contracts to
eligible entities to carry out youth development programs under the
plan.
(b) Grants and Contracts.--The area agency on youth, under the
supervision of the community board, shall use the funds made available
through the allocation made to the agency under this chapter to award
grants on a competitive basis and contracts to eligible entities to pay
for the Federal share of the cost of carrying out the youth development
programs. Not more than 50 percent of the funds made available through
the allocation made to the agency may be awarded to a single recipient
of a grant or contract unless the recipient is a consortium as
described in section 9130(a)(1) or approved by the Associate
Commissioner.
(c) Period.--The area agency on youth may award such a grant or
contract for a period of not more than 4 years. The area agency on
youth, under the supervision of the community board and after reviewing
the reports (including outcome data and evaluation information)
compiled pursuant to section 9127(b)(4), may terminate the funding made
available through such grant or contract during such grant or contract
period for a program if the program fails to comply with the
requirements of this subtitle or if insufficient Federal funds are
appropriated under section 9122 to permit continuation of funding of
the program.
(d) Federal Share.--
(1) In general.--The Federal share of the cost of carrying
out a program described in this section shall be--
(A) 80 percent for the first and second year for
which the program receives funding under this section;
(B) 70 percent for the third such year;
(C) 60 percent for the fourth such year; and
(D) 50 percent for any subsequent year.
(2) Non-federal share.--An entity that receives a grant or
contract under this section may provide for the non-Federal
share of the cost from non-Federal sources (which may include
State or local public sources) in cash or in kind, fairly
evaluated, including facilities, equipment, or services.
(3) Adjustments.--A State agency and the Associate
Commissioner may jointly adjust the Federal share of the cost
that applies to an entity that receives a grant or contract
under this section from an area agency on youth, in the event
that the agency demonstrates significant economic need
sufficient to cause difficulties in area plan implementation.
SEC. 9130. ELIGIBLE ENTITIES.
(a) In General.--To be eligible to receive a grant or contract
under section 9129, an entity shall be--
(1) a consortium of community-based youth-serving or youth
development organizations, public agencies, health and mental
health agencies, education entities including community
colleges, colleges, and universities, volunteer centers, faith-
based organizations, older adult organizations, or
organizations supporting youth involved in community service
and civic participation; or
(2) a community-based public or private youth-serving or
youth development organization.
(b) Priority.--In awarding grants and contracts under section 9129,
an area agency on youth shall give priority to--
(1) entities that carry out health and human service
programs (as of the date of submission of the area plan) that
use proven methods and materials supported by evaluation and
have proven records of effective service delivery and
sustainability; and
(2) entities that submit applications under section 9131
that--
(A) evidence collaboration among community agencies
in providing services under an area plan; and
(B) are outcome driven.
(c) Administrative Expenses.--An entity that receives a grant or
contract under section 9129 may use up to 5 percent of the funds
received through the grant or contract for the cost of administrative
expenses.
(d) Limitation.--A for-profit entity that receives a grant or
contract under section 9129 may not use funds made available through
the grant or contract for the purposes of generating additional
profits.
SEC. 9131. APPLICATIONS.
To be eligible to receive a grant or contract under section 9129 to
carry out youth development programs under an area plan, an entity
shall submit an application to the area agency on youth for the area at
such time, in such manner, and containing such information as the area
agency on youth, under the direction of the community board, and the
appropriate State agency, may reasonably require.
SEC. 9132. YOUTH DEVELOPMENT PROGRAMS.
(a) Access.--An entity that receives a grant or contract under
section 9129 to carry out a program shall implement a program that
promotes, either directly, through a contract, or indirectly through
collaboration with other community entities, access to the full array
of core resources specified in section 9102.
(b) Activities.--An entity that receives a grant or contract under
section 9129 to carry out a program may include among activities
provided through the program, which are part of an effort to provide
access to the full array of core resources specified in section 9102--
(1) character development and ethical enrichment
activities;
(2) mentoring activities, including one-to-one relationship
building and tutoring;
(3) provision and support of community youth centers and
clubs;
(4) nonschool hours, weekend, and summer programs and
camps;
(5) sports, recreation, and other activities promoting
physical fitness and teamwork;
(6) services that promote health and healthy development
and behavior on the part of youth, including risk avoidance
programs;
(7) academic enrichment, peer counseling and teaching, and
literacy activities;
(8) camping and environmental education;
(9) cultural enrichment, including enrichment through
music, and fine and performing arts;
(10) workforce preparation, youth entrepreneurship, and
technological and vocational skill building, including skill
building involving computer skills;
(11) opportunities for community service aimed at involving
youth in providing the full array of core resources described
in section 9102 to other youth, including opportunities
provided in conjunction with activities being performed by
entities under the National and Community Service Act of 1990
(42 U.S.C. 12501 et seq.);
(12) opportunities that engage youth in civic participation
and as partners in decisionmaking, especially opportunities
with respect to programs and strategies that seek to offer
access to the full array of core resources described in section
9102;
(13) special interest group activities or courses,
including activities or courses regarding video production,
cooking, gardening, pet care, photography, and other youth-
identified interests;
(14) efforts focused on building the capacity of community-
based youth workers, utilizing community colleges, colleges,
and universities;
(15) public and private youth led programs, including such
programs provided by youth-serving or youth development
organizations;
(16) transportation services to foster the participation of
youth in youth development programs in the community involved;
(17) subsidies for youth from families that meet the income
eligibility guidelines for a free or reduced price lunch under
section 9(b) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1758(b)), if the provision of the subsidy allows
a youth to fully participate in a youth development program
that is part of a strategy to promote access to the full array
of core resources described in section 9102;
(18) training or group counseling to assist youth, by State
certified counselors, psychologists, social workers, or other
State licensed or certified mental health professionals who are
qualified under State law to provide such training or
counseling to youth; and
(19) referrals to State certified counselors,
psychologists, social workers, or other State licensed or
certified mental health professionals or health professionals
qualified under State law to provide such training or
counseling to youth.
CHAPTER 4--TRAINING, RESEARCH, AND EVALUATION
SEC. 9141. PURPOSE.
The purpose of this chapter is to expand the Nation's knowledge and
understanding of youth, youth development programs, and community
mobilization aimed at providing all youth with access to the full array
of core resources described in section 9102 by--
(1) assisting States in evaluating the effectiveness of
activities implemented under this subtitle, including
evaluating the outcomes resulting from the activities;
(2) placing priority on the education and training of
personnel, with respect to youth development programs, to work
with youth, with a special emphasis on youth who are minority
individuals and youth who are low-income individuals;
(3) conducting research and identifying effective practices
directly related to the field of youth development; and
(4) disseminating information acquired through such
research.
SEC. 9142. GRANTS AND CONTRACTS.
(a) In General.--The Associate Commissioner may award grants and
contracts to eligible entities to carry out evaluation, education and
training, research, and dissemination activities described in this
section.
(b) Evaluation.--
(1) System.--The Associate Commissioner shall develop and
establish a system for evaluating the effectiveness of
activities implemented under this subtitle, including
mechanisms for determining and measuring programmatic outcomes
resulting from those activities.
(2) Distribution.--In awarding grants and contracts under
subsection (a), the Associate Commissioner shall use 50 percent
of the funds appropriated to carry out this chapter for an
equitable distribution among the States to allow State agencies
to be responsible for evaluating the effectiveness of the
activities implemented in the State under this subtitle.
(c) Education and Training.--The Associate Commissioner shall
develop and establish a system for providing education and training of
personnel of States, area agencies on youth, and community boards to
increase their capacity to work with youth, with a special emphasis on
youth who are minority individuals and youth who are low-income
individuals, in carrying out quality youth development programs under
this subtitle.
(d) Impact Evaluation.--
(1) Biennial evaluation.--The Associate Commissioner, in
consultation with the Director and the National Council on
Youth Policy, shall conduct an independent biennial evaluation
of the impact of programs assisted under this subtitle and of
other recent and new initiatives (as of the date of the
evaluation) to promote positive youth development. The
evaluation shall report on--
(A) whether the entities carrying out the programs
and initiatives--
(i) provided a thorough assessment of local
resources and barriers to access to the full
array of core resources;
(ii) used objective data and the knowledge
of a wide range of community members;
(iii) developed measurable goals and
objectives;
(iv) implemented research-based programs
and initiatives that have been shown to be
effective and meet identified needs; and
(v) conducted periodic evaluations to
assess progress made towards achieving goals
and objectives and used evaluations to improve
goals, objectives, and activities;
(B) whether the programs and initiatives have been
designed and implemented in a manner that specifically
targets, if relevant to the program or initiative
involved--
(i) research-based variables that are
predictive of healthy youth development;
(ii) risk factors that are predictive of an
increased likelihood that youth will use drugs,
alcohol, or tobacco, or engage in violence or
drop out of school; or
(iii) protective factors, buffers, or
assets that are known to protect youth from
exposure to risk, either by reducing the
exposure to risk factors or by changing the way
a youth responds to risk, and to increase the
likelihood of positive youth development;
(C) whether the programs and initiatives have
appreciably reduced individual risk-taking behavior and
community risk factors and increased either individual
or community protective factors; and
(D) whether the entities carrying out the programs
and initiatives have incorporated effective youth and
parent involvement.
(2) Biennial report.--Not later than January 1, 2004, and
every 2 years thereafter, the Associate Commissioner shall
submit to the President and Congress a report on the findings
of the evaluation conducted under paragraph (1) together with
the data available from other sources on the well-being of
youth.
(e) Dissemination.--The Associate Commissioner shall develop a
system to facilitate the dissemination of information acquired through
the research to States, area agencies on youth, community boards, and
the public about successful and promising strategies for providing all
youth with the full array of core resources specified in section 9102.
SEC. 9143. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this chapter
$7,000,000 for fiscal year 2002 and such sums as may be necessary for
each of fiscal years 2003, 2004, 2005, and 2006.
Subtitle C--Youth Programs
SEC. 9201. AMERICORPS.
Section 501(a)(2)(A) of the National and Community Service Act of
1990 (42 U.S.C. 12681(a)(2)(A)) is amended by striking ``$300,000,000''
and all that follows and inserting ``$500,000,000 for fiscal year
2002.''.
SEC. 9202. YOUTHBUILD PROGRAM.
Section 402 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12870) is amended by adding at the end the following:
``(d) Fiscal Year 2002.--There is authorized to be appropriated for
grants under subtitle D, $75,000,000 for fiscal year 2002.''.
SEC. 9203. YOUTH WORKFORCE INVESTMENT ACTIVITIES.
(a) Youth Opportunities Grants.--Section 127(b)(1)(A)(ii)(II) of
the Workforce Investment Act of 1998 (29 U.S.C. 2852(b)(1)(A)(ii)(II))
is amended by striking ``$1,250,000,000 or greater, $250,000,000.'' and
inserting ``$1,391,000,000 or greater, $391,000,000.''
(b) Youth Activities Formula Grants.--Section 137(a) of the
Workforce Investment Act of 1998 (29 U.S.C. 2872(a)) is amended by
striking ``such sums'' and all that follows and inserting
``$2,427,000,000 for fiscal year 2002.''.
(c) Job Corps.--Section 161 of the Workforce Investment Act of 1998
(29 U.S.C. 2901) is amended by striking ``such sums'' and all that
follows and inserting ``$1,400,000,000 for fiscal year 2002.''.
SEC. 9204. TRANSITION TRAINING FOR REINTEGRATING YOUTH OFFENDERS.
Section 821(j) of the Higher Education Amendments of 1998 (20
U.S.C. 1151(j)) is amended by striking ``$17,000,000'' and all that
follows and inserting ``$75,000,000 for fiscal year 2002.''.
TITLE X--SAFE START--JUVENILE JUSTICE
Subtitle A--Juvenile Delinquency Prevention and Protection
SEC. 10001. DEFINITION OF JUVENILE.
Section 103 of the Juvenile Justice and Delinquency Prevention Act
of 1974 (42 U.S.C. 5603) is amended by adding at the end the following:
``(24) the term `juvenile' means an individual who is less
than 18 years of age.''.
SEC. 10002. STATE PLAN ALLOCATION.
Section 222(a)(2) of the Juvenile Justice and Delinquency
Prevention Act of 1974 (42 U.S.C. 5632(a)(2)) is amended--
(1) in subparagraph (A)--
(A) by striking ``$325,000'' and inserting
``$600,000''; and
(B) by striking ``$400,000'' and inserting
$750,000; and
(2) in subparagraph (B)--
(A) by striking ``$400,000'' and inserting
``$600,000''; and
(B) by striking ``$600,000'' and inserting
$750,000''.
SEC. 10003. STATE PLAN REQUIREMENTS.
Section 223(a) of the Juvenile Justice and Delinquency Prevention
Act of 1974 (42 U.S.C. 5633(a)) is amended--
(1) by redesignating paragraphs (24) and (25) as paragraphs
(30) and (31), respectively; and
(2) by inserting after paragraph (23) the following:
``(24) provide an assurance that the State shall address
the disparate treatment of members of minority groups at all
stages of the juvenile justice system, including intake,
arrest, detention, adjudication, disposition, and transfer;
``(25) provide an assurance that the State shall make the
amended plan submitted annually under this section available to
the public and shall include in the amended plan a report of
the State's progress in addressing the disparate treatment of
members of minority groups at all stages of the juvenile
justice system, including data on any disproportionate
representation of African American, Latino, Native American,
and Asian juveniles;
``(26) contain satisfactory evidence that the State has
held a public hearing on the plan;
``(27) provide an assurance that the State shall provide
every accused or adjudicated juvenile with reasonable safety
and security, adequate food, heat, light, sanitary facilities,
bedding, clothing, recreation, counseling, education, training,
and medical care, including, if necessary, mental health
services;
``(28) provide that not more than 3 percent of funds
received by the State under section 222 shall be expended to
establish a State juvenile justice coalition, which coalition
shall include the participation of juveniles;
``(29) provide that 3 percent of funds received by the
State under section 222 shall be expended to carry out
paragraph (24);''.
SEC. 10004. REPEAL OF PART H.
Part H of title II of the Juvenile Justice and Delinquency
Prevention Act of 1974 (42 U.S.C. 5667f, 5667f-1, 5667f-2, and 5667f-3)
is repealed.
SEC. 10005. FUNDING OF FEDERAL ASSISTANCE FOR STATE AND LOCAL PROGRAMS.
Section 299 of the Juvenile Justice and Delinquency Prevention Act
of 1974 (42 U.S.C. 5671) is amended by adding at the end the following:
``(f) Authorization for 2002.--There is authorized to be
appropriated $150,000,000 to carry out part B of this title for fiscal
year 2002.''.
SEC. 10006. FUNDING OF GRANTS FOR PREVENTION PROGRAMS.
Section 505 of the Juvenile Justice and Delinquency Prevention Act
of 1974 (42 U.S.C. 5784) is amended by adding at the end the following:
``(d) Funding.--Not less than 75 percent of funds made available
under this title shall be used to carry out this section.''.
SEC. 10007. AUTHORIZATION OF APPROPRIATIONS.
Section 506 of the Juvenile Justice and Delinquency Prevention Act
of 1974 (42 U.S.C. 5785) is amended by striking ``appropriated'' and
all that follows and inserting the following: ``appropriated
$250,000,000 for fiscal year 2002.''.
Subtitle B--Mental Health Juvenile Justice
SEC. 10101. SHORT TITLE.
This subtitle may be cited as the ``Mental Health Juvenile Justice
Act''.
SEC. 10102. TRAINING OF JUSTICE SYSTEM PERSONNEL.
Title II of the Juvenile Justice and Delinquency Prevention Act of
1974 (42 U.S.C. 5611 et seq.) is amended by adding at the end the
following:
``PART K--ACCESS TO MENTAL HEALTH AND SUBSTANCE ABUSE TREATMENT
``SEC. 299AA. GRANTS FOR TRAINING OF JUSTICE SYSTEM PERSONNEL.
``(a) In General.--The Administrator shall make grants to State and
local juvenile justice agencies in collaboration with State and local
mental health agencies, for purposes of training the officers and
employees of the State juvenile justice system (including employees of
facilities that are contracted for operation by State and local
juvenile authorities) regarding appropriate access to mental health and
substance abuse treatment programs and services in the State for
juveniles who come into contact with the State juvenile justice system
who have mental health or substance abuse problems.
``(b) Use of Funds.--A State or local juvenile justice agency that
receives a grant under this section may use the grant for purposes of--
``(1) providing cross-training, jointly with the public
mental health system, for State juvenile court judges, public
defenders, and mental health and substance abuse agency
representatives with respect to the appropriate use of
effective, community-based alternatives to juvenile justice or
mental health system institutional placements; or
``(2) providing training for State juvenile probation
officers and community mental health and substance abuse
program representatives on appropriate linkages between
probation programs and mental health community programs,
specifically focusing on the identification of mental disorders
and substance abuse addiction in juveniles on probation,
effective treatment interventions for those disorders, and
making appropriate contact with mental health and substance
abuse case managers and programs in the community, in order to
ensure that juveniles on probation receive appropriate access
to mental health and substance abuse treatment programs and
services.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated from the Violent Crime Reduction Trust Fund, $50,000,000
for fiscal years 2002, 2003, 2004, 2005, and 2006 to carry out this
section.''.
SEC. 10103. BLOCK GRANT FUNDING FOR TREATMENT AND DIVERSION PROGRAMS.
Part K of title II of the Juvenile Justice and Delinquency
Prevention Act of 1974 (42 U.S.C. 5611 et seq.) is amended by adding at
the end the following:
``SEC. 299BB. GRANTS FOR STATE PARTNERSHIPS.
``(a) In General.--The Attorney General and the Secretary of Health
and Human Services shall make grants to partnerships between State and
local/county juvenile justice agencies and State and local mental
health authorities (or appropriate children service agencies) in
accordance with this section.
``(b) Use of Funds.--A partnership described in subsection (a) that
receives a grant under this section shall use such amounts for the
establishment and implementation of programs that address the service
needs of juveniles who come into contact with the justice system
(including facilities contracted for operation by State or local
juvenile authorities) who have mental health or substance abuse
problems, by requiring the following:
``(1) Diversion.--Appropriate diversion of those juveniles
from incarceration--
``(A) at imminent risk of being taken into custody;
``(B) at the time they are initially taken into
custody;
``(C) after they are charged with an offense or act
of juvenile delinquency;
``(D) after they are adjudicated delinquent but
prior to case disposition; and
``(E) after they are released from a juvenile
facility, for the purposes of attending after-care
programs.
``(2) Treatment.--
``(A) Screening and assessment of juveniles.--
``(i) In general.--Initial mental health
screening shall be completed for all juveniles
immediately upon entering the juvenile justice
system or a juvenile facility. Screening shall
be conducted by qualified health and mental
health professionals or by staff who have been
trained by qualified health, mental health, and
substance abuse professionals. In the case of a
screening by staff, the screening results
should be reviewed by qualified health, mental health professionals not
later than 24 hours after the screening.
``(ii) Acute mental illness.--Juveniles who
suffer from acute mental disorders, who are
suicidal, or in need of detoxification shall be
placed in or immediately transferred to an
appropriate medical or mental health facility.
They shall be admitted to a secure correctional
facility only with written medical clearance.
``(iii) Comprehensive assessment.--All
juveniles entering the juvenile justice system
shall have a comprehensive assessment conducted
and an individualized treatment plan written
and implemented within 2 weeks. This assessment
shall be conducted within 1 week for juveniles
incarcerated in secure facilities. Assessments
shall be completed by qualified health, mental
health, and substance abuse professionals.
``(B) Treatment.--
``(i) In general.--If the need for
treatment is indicated by the assessment of a
juvenile, the juvenile shall be referred to or
treated by a qualified professional. A juvenile
who is currently receiving treatment for a
mental or emotional disorder shall have
treatment continued.
``(ii) Period.--Treatment shall continue
until additional mental health assessment
determines that the juvenile is no longer in
need of treatment. Treatment plans shall be
reevaluated at least every 30 days.
``(iii) Discharge plan.--An incarcerated
juvenile shall have a discharge plan prepared
when the juvenile enters the correctional
facility in order to integrate the juvenile
back into the family or the community. This
plan shall be updated in consultation with the
juvenile's family or guardian before the
juvenile leaves the facility. Discharge plans
shall address the provision of aftercare
services.
``(iv) Medication.--Any juvenile receiving
psychotropic medications shall be under the
care of a licensed psychiatrist. Psychotropic
medications shall be monitored regularly by
trained staff for their efficacy and side
effects.
``(v) Specialized treatment.--Specialized
treatment and services shall be continually
available to a juvenile who--
``(I) has a history of mental
health problems or treatment;
``(II) has a documented history of
sexual abuse or offenses, as victim or
as perpetrator;
``(III) has substance abuse
problems, health problems, learning
disabilities, or histories of family
abuse or violence; or
``(IV) has developmental
disabilities.
``(C) Medical and mental health emergencies.--All
correctional facilities shall have written policies and
procedures on suicide prevention. All staff working in
correctional facilities shall be trained and certified
annually in suicide prevention. Facilities shall have
written arrangements with a hospital or other facility
for providing emergency medical and mental health care.
Physical and mental health services shall be available
to an incarcerated juvenile 24 hours per day, 7 days
per week.
``(D) Classification of juveniles.--
``(i) In general.--Juvenile facilities
shall classify and house juveniles in living
units according to a plan that includes age,
gender, offense, special medical or
mental health condition, size, and vulnerability to victimization.
Younger, smaller, weaker, and more vulnerable juveniles shall not be
placed in housing units with older, more aggressive juveniles.
``(ii) Boot camps.--Juveniles who are under
13 years old or who have serious medical
conditions or mental illness shall not be
placed in paramilitary boot camps.
``(E) Confidentiality of records.--Mental health
and substance abuse treatment records of juveniles
shall be treated as confidential and shall be excluded
from the records that States require to be routinely
released to other correctional authorities and school
officials.
``(F) Mandatory reporting.--States shall keep
records of the incidence and types of mental health and
substance abuse disorders in their juvenile justice
populations, the range and scope of services provided,
and barriers to service. The State shall submit an
analysis of this information yearly to the Department
of Justice.
``(G) Staff ratios for correctional facilities.--
Each secure correctional facility shall have a minimum
ratio of no fewer than 1 mental health counselor to
every 50 juveniles. Mental health counselors shall be
professionally trained and certified or licensed. Each
secure correctional facility shall have a minimum ratio
of 1 clinical psychologist for every 100 juveniles.
Each secure correctional facility shall have a minimum
ratio of 1 licensed psychiatrist for every 100
juveniles receiving psychiatric care.
``(H) Use of force.--
``(i) Written guidelines.--All juvenile
facilities shall have a written behavioral
management system based on incentives and
rewards to reduce misconduct and to decrease
the use of restraints and seclusion by staff.
``(ii) Limitations on restraint.--Control
techniques such as restraint, seclusion,
chemical sprays, and room confinement shall be
used only in response to extreme threats to
life or safety. Use of these techniques shall
be approved by the facility superintendent or
chief medical officer and documented in the
juvenile's file along with the justification
for use and the failure of less restrictive
alternatives.
``(iii) Limitation on isolation.--Isolation
and seclusion shall be used only for immediate
and short-term security or safety reasons. No
juvenile shall be placed in isolation without
approval of the facility superintendent or
chief medical officer or their official staff
designee. All cases shall be documented in the
juvenile's file along with the justification. A
juvenile shall be in isolation only the amount
of time necessary to achieve security and
safety of the juvenile and staff. Staff shall
monitor each juvenile in isolation once every
15 minutes and conduct a professional review of
the need for isolation at least every 4 hours.
Any juvenile held in seclusion for 24 hours
shall be examined by a physician or licensed
psychologist.
``(I) IDEA and rehabilitation act.--All juvenile
facilities shall abide by all mandatory requirements
and time lines set forth under the Individuals with
Disabilities Education Act and section 504 of the
Rehabilitation Act of 1973.
``(J) Advocacy assistance.--
``(i) In general.--The Secretary of Health
and Human Services shall make grants to the
systems established under part C of the
Developmental Disabilities Assistance and Bill
of Rights Act (42 U.S.C. 6041 et seq.) to
monitor the mental health and special education
services provided by grantees to juveniles
under paragraph (2) (A), (B), (C), (H), and (I)
of this section, and to advocate on behalf of
juveniles to assure that such services are
properly provided.
``(ii) Appropriation.--The Secretary of
Health and Human Services will reserve no less
than 3 percent of the funds appropriated under
this section for the purposes set forth in
paragraph (2)(J)(i).
``(c) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
from the Violent Crime Reduction Trust Fund, $500,000,000 for
fiscal years 2002, 2003, 2004, 2005, and 2006 to carry out this
section.
``(2) Allocation.--Of amounts appropriated under paragraph
(1)--
``(A) 35 percent shall be used for diversion
programs under subsection (b)(1); and
``(B) 65 percent shall be used for treatment
programs under subsection (b)(2).
``(3) Incentives.--The Attorney General and the Secretary
of Health and Human Services shall give preference under
subsection (b)(2) to partnerships that integrate treatment
programs to serve juveniles with co-occurring mental health and
substance abuse disorders.
``(4) Waivers.--The Attorney General and the Secretary of
Health and Human Services may grant a waiver of requirements
under subsection (b)(2) for good cause.
``SEC. 299CC. GRANTS FOR PARTNERSHIPS.
``(a) In General.--Any partnership desiring to receive a grant
under this part shall submit an application at such time, in such
manner, and containing such information as the Attorney General and the
Secretary of Health and Human Services may prescribe.
``(b) Contents.--In accordance with guidelines established by the
Attorney General and the Secretary of Health and Human Services, each
application submitted under subsection (a) shall--
``(1) set forth a program or activity for carrying out one
or more of the purposes specified in section 299BB(b) and
specifically identify each such purpose such program or
activity is designed to carry out;
``(2) provide that such program or activity shall be
administered by or under the supervision of the applicant;
``(3) provide for the proper and efficient administration
of such program or activity;
``(4) provide for regular evaluation of such program or
activity;
``(5) provide an assurance that the proposed program or
activity will supplement, not supplant, similar programs and
activities already available in the community; and
``(6) provide for such fiscal control and fund accounting
procedures as may be necessary to ensure prudent use, proper
disbursement, and accurate accounting of funds receiving under
this part.''.
SEC. 10104. INITIATIVE FOR COMPREHENSIVE, INTERSYSTEM PROGRAMS.
Subpart 3 of part B of title V of the Public Health Service Act (42
U.S.C. 290bb-31 et seq.) is amended by adding at the end the following:
``SEC. 520K. INITIATIVE FOR COMPREHENSIVE, INTERSYSTEM PROGRAMS.
``(a) In General.--The Attorney General and the Secretary, acting
through the Director of the Center for Mental Health Services, shall
award competitive grants to eligible entities for programs that address
the service needs of juveniles and juveniles with serious mental
illnesses by requiring the State or local juvenile justice system, the
mental health system, and the substance abuse treatment system to work
collaboratively to ensure--
``(1) the appropriate diversion of such juveniles and
juveniles from incarceration;
``(2) the provision of appropriate mental health and
substance abuse services as an alternative to incarceration and
for those juveniles on probation or parole; and
``(3) the provision of followup services for juveniles who
are discharged from the juvenile justice system.
``(b) Eligibility.--To be eligible to receive a grant under this
section an entity shall--
``(1) be a State or local juvenile justice agency, mental
health agency, or substance abuse agency (including community
diversion programs);
``(2) prepare and submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require, including--
``(A) an assurance that the applicant has the
consent of all entities described in paragraph (1) in
carrying out and coordinating activities under the
grant; and
``(B) with respect to services for juveniles, an
assurance that the applicant has collaborated with the
State or local educational agency and the State or
local welfare agency in carrying out and coordinating
activities under the grant;
``(3) be given priority if it is a joint application
between juvenile justice and substance abuse or mental health
agencies; and
``(4) ensure that funds from non-Federal sources are
available to match amounts provided under the grant in an
amount that is not less than--
``(A) with respect to the first 3 years under the
grant, 25 percent of the amount provided under the
grant; and
``(B) with respect to the fourth and fifth years
under the grant, 50 percent of the amount provided
under the grant.
``(c) Use of Funds.--
``(1) Initial year.--An entity that receives a grant under
this section shall, in the first fiscal year in which amounts
are provided under the grant, use such amounts to develop a
collaborative plan--
``(A) for how the guarantee will institute a system
to provide intensive community services--
``(i) to prevent high-risk juveniles from
coming in contact with the justice system; and
``(ii) to meet the mental health and
substance abuse treatment needs of juveniles on
probation or recently discharged from the
justice system; and
``(B) providing for the exchange by agencies of
information to enhance the provision of mental health
or substance abuse services to juveniles.
``(2) 2-5th years.--With respect to the second through
fifth fiscal years in which amounts are provided under the
grant, the grantee shall use amounts provided under the grant--
``(A) to furnish services, such as assertive
community treatment, wrap-around services for
juveniles, multisystemic therapy, outreach, integrated
mental health and substance abuse treatment, case
management, health care, education and job training,
assistance in securing stable housing, finding a job or
obtaining income support, other benefits, access to
appropriate school-based services, transitional and
independent living services, mentoring programs, home-
based services, and provision of appropriate after
school and summer programing;
``(B) to establish a network of boundary spanners
to conduct regular meetings with judges, provide
liaison with mental health and substance abuse workers,
share and distribute information, and coordinate with
mental health and substance abuse treatment providers,
and probation or parole officers concerning provision
of appropriate mental health and drug and alcohol
addiction services for individuals on probation or
parole;
``(C) to provide cross-system training among
police, corrections, and mental health and substance
abuse providers with the purpose of enhancing
collaboration and the effectiveness of all systems;
``(D) to provide coordinated and effective
aftercare programs for juveniles with emotional or
mental disorders who are discharged from jail, prison,
or juvenile facilities;
``(E) to purchase technical assistance to achieve
the grant project's goals; and
``(F) to furnish services, to train personnel in
collaborative approaches, and to enhance intersystem
collaboration.
``(3) Definition.--In paragraph (2)(B), the term `boundary
spanners' means professionals who act as case managers for
juveniles with mental disorders and substance abuse addictions,
within both justice agency facilities and community mental
health programs and who have full authority from both systems
to act as problem-solvers and advocates on behalf of
individuals targeted for service under this program.
``(d) Area Served by the Project.--An entity receiving a grant
under this section shall conduct activities under the grant to serve at
least a single political jurisdiction.
``(e) Authorization of Appropriations.--There shall be made
available to carry out the section, not less than 10 percent of the
amount appropriated under section 1935(a) for each of the fiscal years
2002 through 2006.''.
SEC. 10105. FEDERAL COORDINATING COUNCIL ON THE CRIMINALIZATION OF
JUVENILES WITH MENTAL DISORDERS.
(a) Establishment.--There is established a Federal Coordinating
Council on Criminalization of Juveniles With Mental Disorders as an
interdepartmental council to study and coordinate the criminal and
juvenile justice and mental health and substance abuse activities of
the Federal Government and to report to Congress on proposed new
legislation to improve the treatment of mentally ill juveniles who come
in contact with the juvenile justice system.
(b) Membership.--The Council shall include representatives from--
(1) the appropriate Federal agencies, as determined by the
President, including, at a minimum--
(A) the Office of the Secretary of Health and Human
Services;
(B) the Office for Juvenile Justice and Delinquency
Prevention;
(C) the National Institute of Mental Health;
(D) the Social Security Administration;
(E) the Department of Education; and
(F) the Substance Abuse and Mental Health Services
Administration; and
(2) children's mental health advocacy groups.
(c) Duties.--The Council shall--
(1) review Federal policies that hinder or facilitate
coordination at the State and local level between the mental
health and substance abuse systems on the one hand and the
juvenile justice and corrections system on the other;
(2) study the possibilities for improving collaboration at
the Federal, State, and local level among these systems; and
(3) recommend to Congress any appropriate new initiatives
which require legislative action.
(d) Final Report.--The Council shall submit--
(1) an interim report on current coordination and
collaboration, or lack thereof, 18 months after the Council is
established; and
(2) recommendations for new initiatives in improving
coordination and collaboration in a final report to Congress 2
years after the Council is established.
(e) Expiration.--The Council shall expire 2 years after the Council
is established.
SEC. 10106. MENTAL HEALTH SCREENING AND TREATMENT FOR PRISONERS.
(a) Additional Requirements for the Use of Funds Under the Violent
Offender Incarceration and Truth-in-Sentencing Grants Program.--Section
20105(b) of the Violent Crime Control and Law Enforcement Act of 1994
is amended to read as follows:
``(b) Additional Requirements.--
``(1) Eligibility for grant.--To be eligible to receive a
grant under section 20103 or 20104, a State shall, not later
than January 1, 2001, have a program of mental health screening
and treatment for appropriate categories of juvenile and other
offenders during periods of incarceration and juvenile and
criminal justice supervision, that is consistent with
guidelines issued by the Attorney General.
``(2) Use of funds.--
``(A) In general.--Notwithstanding any other
provision of this subtitle, amounts made available to a
State under section 20103 or 20104, may be applied to
the costs of programs described in paragraph (1),
consistent with guidelines issued by the Attorney
General.
``(B) Additional use.--In addition to being used as
specified in subparagraph (A), the funds referred to in
that subparagraph may be used by a State to pay the
costs of providing to the Attorney General a baseline
study on the mental health problems of juvenile
offenders and prisoners in the State, which study shall
be consistent with guidelines issued by the Attorney
General.''.
SEC. 10107. INAPPLICABILITY OF AMENDMENTS.
Section 3626 of title 18 is amended by adding at the end the
following:
``(h) Inapplicability of Amendments.--A civil action brought
pursuant to section 1983 of title 42, United States Code, that seeks to
remedy conditions of confinement for individuals who are under the age
of 18 shall be governed by the terms of this section, as in effect on
the day before the date of enactment of the Prison Litigation Reform
Act of 1995 and the amendments made by that Act (18 U.S.C. 3601
note).''.
Subtitle C--Juvenile Justice and Accountability
SEC. 10201. SHORT TITLE.
This subtitle may be cited as the ``Juvenile Justice and
Accountability Act''.
SEC. 10202. GRANT PROGRAM.
Title II of the Juvenile Justice and Delinquency Prevention Act of
1974 (42 U.S.C. 5611 et seq.) is amended by adding at the end the
following:
``PART L--JUVENILE ACCOUNTABILITY BLOCK GRANTS
``SEC. 299AAA. PROGRAM AUTHORIZED.
``(a) In General.--The Administrator is authorized to provide
grants to States, for use by States and units of local government, and
in certain cases directly to specially qualified units.
``(b) Authorized Activities.--Amounts paid to a State or a unit of
local government under this part shall be used by the State or unit of
local government for the purpose of strengthening the juvenile justice
system, which includes--
``(1) developing, implementing, and administering graduated
sanctions for juvenile offenders;
``(2) building, expanding, renovating, or operating
temporary or permanent juvenile correction, detention, or
community corrections facilities;
``(3) hiring juvenile court judges, probation officers, and
court-appointed defenders and special advocates, and funding
pretrial services for juvenile offenders, to promote the
effective and expeditious administration of the juvenile
justice system;
``(4) hiring additional prosecutors, so that more cases
involving violent juvenile offenders can be prosecuted and case
backlogs reduced;
``(5) providing funding to enable prosecutors to address
drug, gang, and youth violence problems more effectively and
for technology, equipment, and training to assist prosecutors
in identifying and expediting the prosecution of violent
juvenile offenders;
``(6) establishing and maintaining training programs for
law enforcement and other court personnel with respect to
preventing and controlling juvenile crime;
``(7) establishing juvenile gun courts for the prosecution
and adjudication of juvenile firearms offenders;
``(8) establishing drug court programs for juvenile
offenders that provide continuing judicial supervision over
juvenile offenders with substance abuse problems and the
integrated administration of other sanctions and services for
such offenders;
``(9) establishing and maintaining a system of juvenile
records designed to promote public safety;
``(10) establishing and maintaining interagency
information-sharing programs that enable the juvenile and
criminal justice system, schools, and social services agencies
to make more informed decisions regarding the early
identification, control, supervision, and treatment of
juveniles who repeatedly commit serious delinquent or criminal
acts;
``(11) establishing and maintaining accountability-based
programs designed to reduce recidivism among juveniles who are
referred by law enforcement personnel or agencies, including
development of a plan for administering after care services and
treatment for juvenile offenders when they are released.
``(12) establishing and maintaining programs to conduct
risk and need assessments of juvenile offenders that facilitate
the effective early intervention and the provision of
comprehensive services, including mental health screening and
treatment and substance abuse testing and treatment to such
offenders;
``(13) establishing and maintaining accountability-based
programs that are designed to enhance school safety;
``(14) enacting Child Access Prevention (CAP) laws;
``(15) establishing and maintaining programs to enable
juvenile courts and juvenile probation officers to be more
effective and efficient in holding juvenile offenders
accountable and reducing recidivism;
``(16) building and maintaining smaller juvenile
facilities, including separate units for juveniles tried as
adults;
``(17) requiring all correctional staff who are responsible
for supervising juvenile offenders be provided with orientation
and on-going training regarding the unique needs of juveniles;
and
``(18) developing and utilizing accountable community-based
alternatives to incarceration.
``SEC. 299BBB. GRANT ELIGIBILITY.
``(a) State Eligibility.--To be eligible to receive a grant under
this section, a State shall submit to the Administrator an application
at such time, in such form, and containing such assurances and
information as the Administrator may require by rule, including
assurances that the State and any unit of local government to which the
State provides funding under section 1803(b), has in effect (or shall
have in effect, not later than 1 year after the date that the State
submits such application) laws, or has implemented (or shall implement,
not later than 1 year after the date that the State submits such
application) policies and programs that--
``(1) provide for a system of graduated sanctions described
in subsection (c); and
``(2) prohibit the application of the death penalty for
juveniles.
``(b) Local Eligibility.--
``(1) Subgrant eligibility.--To be eligible to receive a
subgrant, a unit of local government, other than a specially
qualified unit, shall provide such assurances to the State as
the State shall require, that, to the maximum extent
applicable, the unit of local government has in effect (or
shall have in effect, not later than 1 year after the date that
the unit submits such application) laws, or has implemented (or
shall implement, not later than 1 year after the date that the
unit submits such application) policies and programs, that
provide for a system of graduated sanctions described in
subsection (c).
``(2) Special rule.--The requirements of paragraph (1)
shall apply to a specially qualified unit that receives funds
from the Administrator under section 1803(e), except that
information that is otherwise required to be submitted to the
State shall be submitted to the Administrator.
``(c) Graduated Sanctions.--A system of graduated sanctions, which
may be discretionary as provided in subsection (d), shall ensure, at a
minimum, that--
``(1) sanctions are imposed on juvenile offenders for every
offense;
``(2) sanctions escalate in intensity with each subsequent,
more serious delinquent or criminal offense;
``(3) there is sufficient flexibility to allow for
individualized sanctions and services suited to the individual
juvenile offender; and
``(4) appropriate consideration is given to public safety
and victims of crime.
``(d) Discretionary Use of Sanctions.--
``(1) Voluntary participation.--A State or unit of local
government may be eligible to receive a grant under this part
if--
``(A) its system of graduated sanctions is
discretionary; and
``(B) it demonstrates that it has promoted the use
of a system of graduated sanctions by taking steps to
encourage implementation of such a system by juvenile
courts.
``(2) Reporting requirement if graduated sanctions not
used.--
``(A) Juvenile courts.--A State or unit of local
government in which the imposition of graduated
sanctions is discretionary shall require each juvenile
court within its jurisdiction--
``(i) which has not implemented a system of
graduated sanctions, to submit an annual report
that explains why such court did not implement
graduated sanctions; and
``(ii) which has implemented a system of
graduated sanctions but has not imposed
graduated sanctions in 1 or more specific
cases, to submit an annual report that explains
why such court did not impose graduated
sanctions.
``(B) Units of local government.--Each unit of
local government, other than a specially qualified
unit, that has 1 or more juvenile courts that use a
discretionary system of graduated sanctions shall
collect the information reported under subparagraph (A)
for submission to the State each year.
``(C) States.--Each State and specially qualified
unit that has 1 or more juvenile courts that use a
discretionary system of graduated sanctions shall
collect the information reported under subparagraph (A)
for submission to the Administrator each year. A State
shall also collect and submit to the Administrator the
information collected under subparagraph (B).
``(e) Definitions.--For purposes of this section:
``(1) The term `discretionary' means that a system of
graduated sanctions is not required to be imposed by each and
every juvenile court in a State or unit of local government.
``(2) The term `sanctions' means tangible, proportional
consequences that hold the juvenile offender accountable for
the offense committed. A sanction may include counseling,
restitution, community service, a fine, supervised probation,
or confinement.
``SEC. 299CCC. ALLOCATION AND DISTRIBUTION OF FUNDS.
``(a) State Allocation.--
``(1) In general.--In accordance with regulations
promulgated pursuant to this part and except as provided in
paragraph (3), the Administrator shall allocate--
``(A) 0.5 percent for each State; and
``(B) of the total funds remaining after the
allocation under subparagraph (A), to each State, an
amount which bears the same ratio to the amount of
remaining funds described in this subparagraph as the
population of people under the age of 18 living in such
State for the most recent calendar year in which such
data is available bears to the population of people
under the age of 18 of all the States for such fiscal
year.
``(2) Prohibition.--No funds allocated to a State under
this subsection or received by a State for distribution under
subsection (b) may be distributed by the Administrator or by
the State involved for any program other than a program
contained in an approved application.
``(3) Increase for state reserve.--
``(A) In general.--Subject to subparagraph (B), if
a State demonstrates and certifies to the Administrator
that the State's law enforcement expenditures in the
fiscal year preceding the date in which an application
is submitted under this part is more than 25 percent of
the aggregate amount of law enforcement expenditures by
the State and its eligible units of local government,
the percentage referred to in paragraph (1)(A) shall
equal the percentage determined by dividing the State's
law enforcement expenditures by such aggregate.
``(B) Law enforcement expenditures over 50
percent.--If the law enforcement expenditures of a
State exceed 50 percent of the aggregate amount
described in subparagraph (A), the Administrator shall
consult with as many units of local government in such
State as practicable regarding the State's proposed
uses of funds.
``(b) Local Distribution.--
``(1) In general.--Except as provided in subsection (a)(3),
each State which receives funds under subsection (a)(1) in a
fiscal year shall distribute not less than 75 percent of such
amounts received among units of local government, for the
purposes specified in section 1801. In making such distribution
the State shall allocate to such units of local government an
amount which bears the same ratio to the aggregate amount of
such funds as--
``(A) the sum of--
``(i) the product of--
``(I) three-quarters; multiplied by
``(II) the average law enforcement
expenditure for such unit of local
government for the 3 most recent
calendar years for which such data is
available; plus
``(ii) the product of--
``(I) one-quarter; multiplied by
``(II) the average annual number of
part 1 violent crimes in such unit of
local government for the 3 most recent
calendar years for which such data is
available, bears to--
``(B) the sum of the products determined under
subparagraph (A) for all such units of local government
in the State.
``(2) Expenditures.--The allocation any unit of local
government shall receive under paragraph (1) for a payment
period shall not exceed 100 percent of law enforcement
expenditures of the unit for such payment period.
``(3) Reallocation.--The amount of any unit of local
government's allocation that is not available to such unit by
operation of paragraph (2) shall be available to other units of
local government that are not affected by such operation in
accordance with this subsection.
``(c) Unavailability of Data for Units of Local Government.--If the
State has reason to believe that the reported rate of part 1 violent
crimes or law enforcement expenditures for a unit of local government
is insufficient or inaccurate, the State shall--
``(1) investigate the methodology used by the unit to
determine the accuracy of the submitted data; and
``(2) if necessary, use the best available comparable data
regarding the number of violent crimes or law enforcement
expenditures for the relevant years for the unit of local
government.
``(d) Local Government With Allocations Less Than $5,000.--If under
this section a unit of local government is allocated less than $5,000
for a payment period, the amount allotted shall be expended by the
State on services to units of local government whose allotment is less
than such amount in a manner consistent with this part.
``(e) Direct Grants to Specially Qualified Units.--
``(1) In general.--If a State does not qualify or apply for
funds reserved for allocation under subsection (a) by the
application deadline established by the Administrator, the
Administrator shall reserve not more than 75 percent of the
allocation that the State would have received under subsection
(a) for such fiscal year to provide grants to specially
qualified units which meet the requirements for funding under
section 1802.
``(2) Award basis.--In addition to the qualification
requirements for direct grants for specially qualified units
the Administrator may use the average amount allocated by the
States to units of local government as a basis for awarding
grants under this section.
``SEC. 299DDD. GUIDELINES.
``(a) In General.--The Attorney General shall issue guidelines
establishing procedures under which a State or unit of local government
that receives funds under section 1803 is required to provide notice to
the Administrator regarding the proposed use of funds made available
under this part.
``(b) Advisory Board.--The guidelines referred to in subsection (a)
shall include a requirement that such eligible State or unit of local
government establish and convene an advisory board to review the
proposed uses of such funds. The board shall include representation
from, if appropriate--
``(1) the State or local police department;
``(2) the local sheriff's department;
``(3) the State or local prosecutor's office;
``(4) the State or local juvenile court;
``(5) the State or local probation officer;
``(6) the State or local educational agency;
``(7) a State or local social service agency; and
``(8) a nonprofit, religious, or community group.
``SEC. 299EEE. PAYMENT REQUIREMENTS.
``(a) Timing of Payments.--The Administrator shall pay to each
State or unit of local government that receives funds under section
1803 that has submitted an application under this part not later than--
``(1) 90 days after the date that the amount is available,
or
``(2) the first day of the payment period if the State has
provided the Administrator with the assurances required by
subsection (c),
whichever is later.
``(b) Repayment of Unexpended Amounts.--
``(1) Repayment required.--From amounts awarded under this
part, a State or specially qualified unit shall repay to the
Administrator, or a unit of local government shall repay to the
State by not later than 39 months after receipt of funds from
the Administrator, any amount that is not expended by the State
within 3 years after receipt of such funds from the
Administrator.
``(2) Penalty for failure to repay.--If the amount required
to be repaid is not repaid, the Administrator shall reduce
payment in future payment periods accordingly.
``(3) Deposit of amounts repaid.--Amounts received by the
Administrator as repayments under this subsection shall be
deposited in a designated fund for future payments to States
and specially qualified units.
``(c) Administrative Costs.--A State or unit of local government
that receives funds under this part may use not more than 5 percent of
such funds to pay for administrative costs.
``(d) Nonsupplanting Requirement.--Funds made available under this
part to States and units of local government shall not be used to
supplant State or local funds as the case may be, but shall be used to
increase the amount of funds that would, in the absence of funds made
available under this part, be made available from State or local
sources, as the case may be.
``(e) Matching Funds.--The Federal share of a grant received under
this part may not exceed 90 percent of the costs of a program or
proposal funded under this part.
``SEC. 299FFF. UTILIZATION OF PRIVATE SECTOR.
``Funds or a portion of funds allocated under this part may be
utilized to contract with private, nonprofit entities, or community-
based organizations to carry out the purposes specified under section
1801(a)(2).
``SEC. 299GGG. ADMINISTRATIVE PROVISIONS.
``(a) In General.--A State or specially qualified unit that
receives funds under this part shall--
``(1) establish a trust fund in which the government will
deposit all payments received under this part;
``(2) use amounts in the trust fund (including interest)
during a period not to exceed 3 years from the date the grant
award is made to the State or specially qualified unit;
``(3) designate an official of the State or specially
qualified unit to submit reports as the Attorney General
reasonably requires, in addition to the annual reports required
under this part; and
``(4) spend the funds only for the purposes under section
1801(b).
``(b) Title I Provisions.--Except as otherwise provided, the
administrative provisions of part H shall apply to this part and for
purposes of this section any reference in such provisions to title I
shall be deemed to include a reference to this part.
``SEC. 299HHH. DEFINITIONS.
``For purposes of this part:
``(1) The term `unit of local government' means--
``(A) a county, township, city, or political
subdivision of a county, township, or city, that is a
unit of local government as determined by the Secretary
of Commerce for general statistical purposes; and
``(B) the District of Columbia and the recognized
governing body of an Indian tribe or Alaskan Native
village that carries out substantial governmental
duties and powers.
``(2) The term `specially qualified unit' means a unit of
local government which may receive funds under this part only
in accordance with section 1803(e).
``(3) The term `State' means any State of the United
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, American Samoa, Guam, and the
Northern Mariana Islands, except that American Samoa, Guam, and
the Northern Mariana Islands shall be considered as 1 State and
that, for purposes of section 1803(a), 33 percent of the
amounts allocated shall be allocated to American Samoa, 50
percent to Guam, and 17 percent to the Northern Mariana
Islands.
``(4) The term `juvenile' means an individual who is 17
years of age or younger.
``(5) The term `law enforcement expenditures' means the
expenditures associated with prosecutorial, legal, and judicial
services, and corrections as reported to the Bureau of the
Census for the fiscal year preceding the fiscal year for which
a determination is made under this part.
``(6) The term `part 1 violent crimes' means murder and
nonnegligent manslaughter, forcible rape, robbery, and
aggravated assault as reported to the Federal Bureau of
Investigation for purposes of the Uniform Crime Reports.
``SEC. 299III. AUTHORIZATION OF APPROPRIATIONS.
``(a) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this part--
``(1) $500,000,000 for fiscal year 2002;
``(2) $500,000,000 for fiscal year 2003; and
``(3) $500,000,000 for fiscal year 2004.
``(b) Oversight Accountability and Administration.--Not more than 3
percent of the amount authorized to be appropriated under subsection
(a), with such amounts to remain available until expended, for each of
the fiscal years 2002 through 2004 shall be available to the
Administrator for evaluation and research regarding the overall
effectiveness and efficiency of the provisions of this part, assuring
compliance with the provisions of this part, and for administrative
costs to carry out the purposes of this part. The Administrator shall
establish and execute an oversight plan for monitoring the activities
of grant recipients.
``(c) Funding Source.--Appropriations for activities authorized in
this part may be made from the Violent Crime Reduction Trust Fund.''.
SEC. 10203. INCREASE IN FUNDING FOR TITLE III OF THE JJDPA.
There are authorized to be appropriated $120,000,000 for fiscal
year 2002 to carry out the Runaway and Homeless Youth Act (42 U.S.C.
5701 et seq.) of which $100,000,000 shall be for the Basic Centers and
Transitional Living Program and $20,000,000 shall be for the Sexual
Abuse Prevention Program.
SEC. 10204. FUNDING FOR THE SERVICES FOR YOUTHFUL OFFENDERS.
There is authorized to be appropriated $40,000,000 for fiscal year
2002 to carry out section 520D of title V of the Public Health Service
Act (42 U.S.C. 290bb-35).
SEC. 10205. AUTHORIZATION FOR THE JUVENILE JUSTICE AND DELINQUENCY
PREVENTION ACT OF 1974.
Title I of the Juvenile Justice and Delinquency Prevention Act of
1974 (42 U.S.C. 5601 et seq.) is amended by adding at the end the
following:
``SEC. 104. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this Act
such sums as necessary for each of fiscal years 2002 through 2006.''.
TITLE XI--SAFE START--GUN SAFETY
Subtitle A--Closing the Gun Show Loophole
SEC. 11001. EXTENSION OF BRADY BACKGROUND CHECKS TO GUN SHOWS.
(a) Findings.--Congress finds that--
(1) more than 4,400 traditional gun shows are held annually
across the United States, attracting thousands of attendees per
show and hundreds of Federal firearms licensees and nonlicensed
firearms sellers;
(2) traditional gun shows, as well as flea markets and
other organized events, at which a large number of firearms are
offered for sale by Federal firearms licensees and nonlicensed
firearms sellers, form a significant part of the national
firearms market;
(3) firearms and ammunition that are exhibited or offered
for sale or exchange at gun shows, flea markets, and other
organized events move easily in and substantially affect
interstate commerce;
(4) even before a firearm is exhibited or offered for sale
or exchange at a gun show, flea market, or other organized
event, the gun, its component parts, ammunition, and the raw
materials from which it is manufactured have moved in
interstate commerce;
(5) gun shows, flea markets, and other organized events at
which firearms are exhibited or offered for sale or exchange,
provide a convenient and centralized commercial location at
which firearms may be bought and sold anonymously, often
without background checks and without records that enable gun
tracing;
(6) at gun shows, flea markets, and other organized events
at which guns are exhibited or offered for sale or exchange,
criminals and other prohibited persons obtain guns without
background checks and frequently use guns that cannot be traced
to later commit crimes;
(7) many persons who buy and sell firearms at gun shows,
flea markets, and other organized events cross State lines to
attend these events and engage in the interstate transportation
of firearms obtained at these events;
(8) gun violence is a pervasive, national problem that is
exacerbated by the availability of guns at gun shows, flea
markets, and other organized events;
(9) firearms associated with gun shows have been
transferred illegally to residents of other States by Federal
firearms licensees and nonlicensed firearms sellers, and have
been involved in subsequent crimes including drug offenses,
crimes of violence, property crimes, and illegal possession of
firearms by felons and other prohibited persons; and
(10) Congress has the power, under the interstate commerce
clause and other provisions of the Constitution of the United
States, to ensure that criminals and other prohibited persons
do not obtain firearms at gun shows, flea markets, and other
organized events.
(b) Definitions.--Section 921(a) of title 18, United States Code,
is amended by adding at the end the following:
``(35) Gun show.--The term `gun show' means any event at which 50
or more firearms are offered or exhibited for sale, transfer, or
exchange, if 1 or more of the firearms has been shipped or transported
in, or otherwise affects, interstate or foreign commerce.
``(36) Gun show promoter.--The term `gun show promoter' means any
person who organizes, plans, promotes, or operates a gun show.
``(37) Gun show vendor.--The term `gun show vendor' means any
person who exhibits, sells, offers for sale, transfers, or exchanges 1
or more firearms at a gun show, regardless of whether or not the person
arranges with the gun show promoter for a fixed location from which to
exhibit, sell, offer for sale, transfer, or exchange 1 or more
firearms.''.
(c) Regulation of Firearms Transfers at Gun Shows.--
(1) In general.--Chapter 44 of title 18, United States
Code, is amended by adding at the end the following:
``Sec. 931. Regulation of firearms transfers at gun shows
``(a) Registration of Gun Show Promoters.--It shall be unlawful for
any person to organize, plan, promote, or operate a gun show unless
that person--
``(1) registers with the Secretary in accordance with
regulations promulgated by the Secretary; and
``(2) pays a registration fee, in an amount determined by
the Secretary.
``(b) Responsibilities of Gun Show Promoters.--It shall be unlawful
for any person to organize, plan, promote, or operate a gun show unless
that person--
``(1) before commencement of the gun show, verifies the
identity of each gun show vendor participating in the gun show
by examining a valid identification document (as defined in
section 1028(d)(2)) of the vendor containing a photograph of
the vendor;
``(2) before commencement of the gun show, requires each
gun show vendor to sign--
``(A) a ledger with identifying information
concerning the vendor; and
``(B) a notice advising the vendor of the
obligations of the vendor under this chapter;
``(3) notifies each person who attends the gun show of the
requirements of this chapter, in accordance with such
regulations as the Secretary shall prescribe; and
``(4) maintains a copy of the records described in
paragraphs (1) and (2) at the permanent place of business of
the gun show promoter for such period of time and in such form
as the Secretary shall require by regulation.
``(c) Responsibilities of Transferors Other Than Licensees.--
``(1) In general.--If any part of a firearm transaction
takes place at a gun show, it shall be unlawful for any person
who is not licensed under this chapter to transfer a firearm to
another person who is not licensed under this chapter, unless
the firearm is transferred through a licensed importer,
licensed manufacturer, or licensed dealer in accordance with
subsection (e).
``(2) Criminal background checks.--A person who is subject
to the requirement of paragraph (1)--
``(A) shall not transfer the firearm to the
transferee until the licensed importer, licensed
manufacturer, or licensed dealer through which the
transfer is made under subsection (e) makes the
notification described in subsection (e)(3)(A); and
``(B) notwithstanding subparagraph (A), shall not
transfer the firearm to the transferee if the licensed
importer, licensed manufacturer, or licensed dealer
through which the transfer is made under subsection (e)
makes the notification described in subsection
(e)(3)(B).
``(3) Absence of recordkeeping requirements.--Nothing in
this section shall permit or authorize the Secretary to impose
recordkeeping requirements on any nonlicensed vendor.
``(d) Responsibilities of Transferees Other Than Licensees.--
``(1) In general.--If any part of a firearm transaction
takes place at a gun show, it shall be unlawful for any person
who is not licensed under this chapter to receive a firearm
from another person who is not licensed under this chapter,
unless the firearm is transferred through a licensed importer,
licensed manufacturer, or licensed dealer in accordance with
subsection (e).
``(2) Criminal background checks.--A person who is subject
to the requirement of paragraph (1)--
``(A) shall not receive the firearm from the
transferor until the licensed importer, licensed
manufacturer, or licensed dealer through which the
transfer is made under subsection (e) makes the
notification described in subsection (e)(3)(A); and
``(B) notwithstanding subparagraph (A), shall not
receive the firearm from the transferor if the licensed
importer, licensed manufacturer, or licensed dealer
through which the transfer is made under subsection (e)
makes the notification described in subsection
(e)(3)(B).
``(e) Responsibilities of Licensees.--A licensed importer, licensed
manufacturer, or licensed dealer who agrees to assist a person who is
not licensed under this chapter in carrying out the responsibilities of
that person under subsection (c) or (d) with respect to the transfer of
a firearm shall--
``(1) enter such information about the firearm as the
Secretary may require by regulation into a separate bound
record;
``(2) record the transfer on a form specified by the
Secretary;
``(3) comply with section 922(t) as if transferring the
firearm from the inventory of the licensed importer, licensed
manufacturer, or licensed dealer to the designated transferee
(although a licensed importer, licensed manufacturer, or
licensed dealer complying with this subsection shall not be
required to comply again with the requirements of section
922(t) in delivering the firearm to the nonlicensed
transferor), and notify the nonlicensed transferor and the
nonlicensed transferee--
``(A) of such compliance; and
``(B) if the transfer is subject to the
requirements of section 922(t)(1), of any receipt by
the licensed importer, licensed manufacturer, or
licensed dealer of a notification from the national
instant criminal background check system that the
transfer would violate section 922 or would violate
State law;
``(4) not later than 10 days after the date on which the
transfer occurs, submit to the Secretary a report of the
transfer, which report--
``(A) shall be on a form specified by the Secretary
by regulation; and
``(B) shall not include the name of or other
identifying information relating to any person involved
in the transfer who is not licensed under this chapter;
``(5) if the licensed importer, licensed manufacturer, or
licensed dealer assists a person other than a licensee in
transferring, at 1 time or during any 5 consecutive business
days, 2 or more pistols or revolvers, or any combination of
pistols and revolvers totaling 2 or more, to the same
nonlicensed person, in addition to the reports required under
paragraph (4), prepare a report of the multiple transfers,
which report shall be--
``(A) prepared on a form specified by the
Secretary; and
``(B) not later than the close of business on the
date on which the transfer occurs, forwarded to--
``(i) the office specified on the form
described in subparagraph (A); and
``(ii) the appropriate State law
enforcement agency of the jurisdiction in which
the transfer occurs; and
``(6) retain a record of the transfer as part of the
permanent business records of the licensed importer, licensed
manufacturer, or licensed dealer.
``(f) Records of Licensee Transfers.--If any part of a firearm
transaction takes place at a gun show, each licensed importer, licensed
manufacturer, and licensed dealer who transfers 1 or more firearms to a
person who is not licensed under this chapter shall, not later than 10
days after the date on which the transfer occurs, submit to the
Secretary a report of the transfer, which report--
``(1) shall be in a form specified by the Secretary by
regulation;
``(2) shall not include the name of or other identifying
information relating to the transferee; and
``(3) shall not duplicate information provided in any
report required under subsection (e)(4).
``(g) Firearm Transaction Defined.--In this section, the term
`firearm transaction'--
``(1) includes the offer for sale, sale, transfer, or
exchange of a firearm; and
``(2) does not include the mere exhibition of a firearm.''.
(2) Penalties.--Section 924(a) of title 18, United States
Code, is amended by adding at the end the following:
``(7)(A) Whoever knowingly violates section 931(a) shall be fined
under this title, imprisoned not more than 5 years, or both.
``(B) Whoever knowingly violates subsection (b) or (c) of section
931, shall be--
``(i) fined under this title, imprisoned not more than 2
years, or both; and
``(ii) in the case of a second or subsequent conviction,
fined under this title, imprisoned not more than 5 years, or
both.
``(C) Whoever willfully violates section 931(d), shall be--
``(i) fined under this title, imprisoned not more than 2
years, or both; and
``(ii) in the case of a second or subsequent conviction,
fined under this title, imprisoned not more than 5 years, or
both.
``(D) Whoever knowingly violates subsection (e) or (f) of section
931 shall be fined under this title, imprisoned not more than 5 years,
or both.
``(E) In addition to any other penalties imposed under this
paragraph, the Secretary may, with respect to any person who knowingly
violates any provision of section 931--
``(i) if the person is registered pursuant to section
931(a), after notice and opportunity for a hearing, suspend for
not more than 6 months or revoke the registration of that
person under section 931(a); and
``(ii) impose a civil fine in an amount equal to not more
than $10,000.''.
(3) Technical and conforming amendments.--Chapter 44 of
title 18, United States Code, is amended--
(A) in the chapter analysis, by adding at the end
the following:
``931. Regulation of firearms transfers at gun shows.'';
and
(B) in the first sentence of section 923(j), by
striking ``a gun show or event'' and inserting ``an
event''.
(d) Inspection Authority.--Section 923(g)(1) is amended by adding
at the end the following:
``(E) Notwithstanding subparagraph (B), the Secretary may enter
during business hours the place of business of any gun show promoter
and any place where a gun show is held for the purposes of examining
the records required by sections 923 and 931 and the inventory of
licensees conducting business at the gun show. Such entry and
examination shall be conducted for the purposes of determining
compliance with this chapter by gun show promoters and licensees
conducting business at the gun show and shall not require a showing of
reasonable cause or a warrant.''.
(e) Increased Penalties for Serious Recordkeeping Violations by
Licensees.--Section 924(a) of title 18, United States Code, is amended
by striking paragraph (3) and inserting the following:
``(3)(A) Except as provided in subparagraph (B), any licensed
dealer, licensed importer, licensed manufacturer, or licensed collector
who knowingly makes any false statement or representation with respect
to the information required by this chapter to be kept in the records
of a person licensed under this chapter, or violates section 922(m)
shall be fined under this title, imprisoned not more than 5 years, or
both.
``(B) If the violation described in subparagraph (A) is in relation
to an offense--
``(i) under paragraph (1) or (3) of section 922(b), such
person shall be fined under this title, imprisoned not more
than 5 years, or both; or
``(ii) under subsection (a)(6) or (d) of section 922, such
person shall be fined under this title, imprisoned not more
than 10 years, or both.''.
(f) Increased Penalties for Violations of Criminal Background Check
Requirements.--
(1) Penalties.--Section 924(a) of title 18, United States
Code (as amended by subsection (c)), is amended--
(A) in paragraph (5), by striking ``subsection (s)
or (t) of section 922'' and inserting ``section
922(s)''; and
(B) by adding at the end the following:
``(8) Whoever knowingly violates section 922(t) shall be fined
under this title, imprisoned not more than 5 years, or both.''.
(2) Elimination of certain elements of offense.--Section
922(t)(5) of title 18, United States Code, is amended by
striking ``and, at the time'' and all that follows through
``State law''.
(g) Gun Owner Privacy and Prevention of Fraud and Abuse of System
Information.--Section 922(t)(2)(C) of title 18, United States Code, is
amended by inserting before the period at the end ``, as soon as
possible, consistent with the responsibility of the Attorney General
under section 103(h) of the Brady Handgun Violence Prevention Act (18
U.S.C. 922 note) to ensure the privacy and security of the system and
to prevent system fraud and abuse, but in no event later than 90 days
after the date on which the licensee first contacts the system with
respect to the transfer''.
(h) Effective Date.--This section and the amendments made by this
section shall take effect 180 days after the date of enactment of this
Act.
Subtitle B--Child Safety Locks
SEC. 11101. REQUIREMENT OF CHILD HANDGUN SAFETY LOCKS.
(a) Definitions.--Section 921(a) of title 18, United States Code
(as amended by section 11001), is amended by adding at the end the
following:
``(38) Locking device.--The term `locking device' means a
device or locking mechanism that is approved by a licensed
firearms manufacturer for use on the handgun with which the
device or locking mechanism is sold, delivered, or transferred
and that--
``(A) if installed on a firearm and secured by
means of a key or a mechanically, electronically, or
electromechanically operated combination lock, is
designed to prevent the firearm from being discharged
without first deactivating or removing the device by
means of a key or mechanically, electronically, or
electromechanically operated combination lock;
``(B) if incorporated into the design of a firearm,
is designed to prevent discharge of the firearm by any
person who does not have access to the key or other
device designed to unlock the mechanism and thereby
allow discharge of the firearm; or
``(C) is a safe, gun safe, gun case, lockbox, or
other device that is designed to store a firearm and
that is designed to be unlocked only by means of a key,
a combination, or other similar means.''.
(b) Unlawful Acts.--
(1) In general.--Section 922 of title 18, United States
Code, is amended by inserting after subsection (y) the
following:
``(z) Locking Devices.--
``(1) In general.--Except as provided in paragraph (2), it
shall be unlawful for any licensed manufacturer, licensed
importer, or licensed dealer to sell, deliver, or transfer any
handgun to any person other than a licensed manufacturer,
licensed importer, or licensed dealer, unless the transferee is
provided with a locking device for that handgun.
``(2) Exceptions.--Paragraph (1) does not apply to the--
``(A) manufacture for, transfer to, or possession
by, the United States or a State or a department or
agency of the United States, or a State or a
department, agency, or political subdivision of a State, of a firearm;
``(B) transfer to, or possession by, a law
enforcement officer employed by an entity referred to
in clause (i) of a firearm for law enforcement purposes
(whether on or off duty); or
``(C) transfer to, or possession by, a rail police
officer employed by a rail carrier and certified or
commissioned as a police officer under the laws of a
State of a firearm for purposes of law enforcement
(whether on or off duty).''.
(2) Effective date.--Section 922(z) of title 18, United
States Code, as added by this subsection, shall take effect 180
days after the date of enactment of this Act.
(c) Liability; Evidence.--
(1) Liability.--Nothing in this section shall be construed
to--
(A) create a cause of action against any dealer of
firearms or any other person for any civil liability;
or
(B) establish any standard of care.
(2) Evidence.--Notwithstanding any other provision of law,
evidence regarding compliance or noncompliance with the
amendments made by this section shall not be admissible as
evidence in any proceeding of any court, agency, board, or
other entity, except with respect to an action to enforce this
section.
(3) Rule of construction.--Nothing in this subsection shall
be construed to bar a governmental action to impose a penalty
under section 924(p) of title 18, United States Code (as added
by subsection (d)), for a failure to comply with section 922(z)
of that title.
(d) Civil Penalties.--Section 924 of title 18, United States Code,
is amended--
(1) in subsection (a)(1), by striking ``or (f)'' and
inserting ``(f), or (p)''; and
(2) by adding at the end the following:
``(p) Penalties Relating to Locking Devices.--
``(1) In general.--
``(A) Suspension or revocation of license; civil
penalties.--With respect to each violation of section
922(z)(1) by a licensee, the Secretary may, after
notice and opportunity for hearing--
``(i) suspend or revoke any license issued
to the licensee under this chapter; or
``(ii) subject the licensee to a civil
penalty in an amount equal to not more than
$10,000.
``(B) Review.--An action of the Secretary under
this paragraph may be reviewed only as provided in
section 923(f).
``(2) Administrative remedies.--The suspension or
revocation of a license or the imposition of a civil penalty
under paragraph (1) does not preclude any administrative remedy
that is otherwise available to the Secretary.''.
(e) Consumer Product Safety Act.--The Consumer Product Safety Act
(15 U.S.C. 2051 et seq.) is amended by adding at the end the following:
``SEC. 38. CHILD HANDGUN SAFETY LOCKS.
``(a) Establishment of Standard.--
``(1) In general.--
``(A) Rulemaking required.--
``(i) Initiation of rulemaking.--
``(I) In general.--Notwithstanding
section 3(a)(1)(E) of this Act, the
Commission shall initiate a rulemaking
proceeding under section 553 of title
5, United States Code, within 90 days
after the date of enactment of this
section to establish a consumer product
safety standard for locking devices.
``(II) Extension of time period.--
The Commission may extend the 90-day
period under subclause (I) for good
cause.
``(ii) Final standard.--
``(I) In general.--Notwithstanding
any other provision of law, including
chapter 5 of title 5, United States
Code, the Commission shall promulgate a
final consumer product safety standard
under this paragraph within 12 months
after the date on which it initiated
the rulemaking.
``(II) Extension of time period.--
The Commission may extend that 12-month
period under subclause (I) for good
cause.
``(iii) Effective date.--The consumer
product safety standard promulgated under this
paragraph shall take effect 6 months after the
date on which the final standard is
promulgated.
``(B) Standard requirements.--The standard
promulgated under subparagraph (A)(ii) shall require
locking devices that--
``(i) are sufficiently difficult for
children to deactivate or remove; and
``(ii) prevent the discharge of the handgun
unless the locking device has been deactivated
or removed.
``(2) Certain provisions not to apply.--
``(A) Provisions of this act.--Sections 7, 9, and
30(d) of this Act do not apply to the rulemaking
proceeding under paragraph (1). Section 11 of this Act
does not apply to any consumer product safety standard
promulgated under paragraph (1).
``(B) Chapter 5 of title 5.--Except for section
553, chapter 5 of title 5, United States Code, does not
apply to this section.
``(C) Chapter 6 of title 5.--Chapter 6 of title 5,
United States Code, does not apply to this section.
``(D) National environmental policy act.--The
National Environmental Policy Act of 1969 (42 U.S.C.
4321) does not apply to this section.
``(b) No Effect on State Law.--Notwithstanding section 26 of this
Act, this section does not annul, alter, impair, affect, or exempt any
person subject to the provisions of this section from complying with
any provision of the law of any State or any political subdivision
thereof, except to the extent that such provisions of State law are
inconsistent with any provision of this section, and then only to the
extent of the inconsistency. A provision of State law is not
inconsistent with this section if such provision affords greater
protection to children in respect of handguns than is afforded by this
section.
``(c) Enforcement.--Notwithstanding subsection (a)(2)(A), the
consumer product safety standard promulgated by the Commission under
subsection (a) shall be enforced under this Act as if it were a
consumer product safety standard described in section 7(a).
``(d) Definitions.--In this section:
``(1) Child.--The term `child' means an individual who is
less than 13 years of age.
``(2) Locking device.--The term `locking device' has the
meaning given that term in clauses (i) and (iii) of section
921(a)(35)(A) of title 18, United States Code.''.
(f) Conforming Amendment for Consumer Product Safety Act.--Section
1 of the Consumer Product Safety Act is amended by adding at the end of
the table of contents the following:
``Sec. 38. Child handgun safety locks.
(g) Authorization of Appropriations for Consumer Product Safety
Commission.--There are authorized to be appropriated to the Consumer
Product Safety Commission $2,000,000 to carry out the provisions of
section 38 of the Consumer Product Safety Act, such sums to remain
available until expended.
Subtitle C--Unlawful Weapons Transfers
SEC. 11201. UNLAWFUL WEAPONS TRANSFERS TO JUVENILES.
(a) In General.--Section 922 of title 18, United States Code, is
amended by striking subsection (x) and inserting the following:
``(x)(1) It shall be unlawful for a person to sell, deliver, or
otherwise transfer to a person who the transferor knows or has
reasonable cause to believe is a juvenile--
``(A) a handgun;
``(B) ammunition that is suitable for use only in a handgun
(in this section referred to as ``ammunition'');
``(C) a semiautomatic assault weapon; or
``(D) a large capacity ammunition feeding device.
``(2) It shall be unlawful for any person who is a juvenile to
knowingly possess--
``(A) a handgun;
``(B) ammunition;
``(C) a semiautomatic assault weapon; or
``(D) a large capacity ammunition feeding device.
``(3) This subsection does not apply to--
``(A) a temporary transfer of a handgun, ammunition, large
capacity ammunition feeding device, or a semiautomatic assault
weapon to a juvenile or the possession or use of a handgun,
ammunition, large capacity ammunition feeding device, or a
semiautomatic assault weapon by a juvenile--
``(i) if the handgun, ammunition, large capacity
ammunition feeding device, or semiautomatic assault
weapon are possessed and used by the juvenile--
``(I) in the course of employment;
``(II) in the course of ranching or farming
related to activities at the residence of the
juvenile (or on property used for ranching or
farming at which the juvenile, with the
permission of the property owner or lessee, is
performing activities related to the operation
of the farm or ranch);
``(III) for target practice;
``(IV) for hunting; or
``(V) for a course of instruction in the
safe and lawful use of a firearm; and
``(ii) if the juvenile's possession and use of a
handgun, ammunition, large capacity ammunition feeding
device, or a semiautomatic assault weapon under this
subparagraph are in accordance with State and local
law, and the following conditions are met--
``(I) except when a parent or guardian of
the juvenile is in the immediate and
supervisory presence of the juvenile, the
juvenile shall have in the juvenile's
possession at all times when a handgun,
ammunition, large capacity ammunition feeding
device, or semiautomatic assault weapon is in
the possession of the juvenile, the prior
written consent of the juvenile's parent or
guardian who is not prohibited by Federal,
State, or local law from possessing a firearm
or ammunition; and
``(II) during transportation by the
juvenile directly from the place of transfer to
a place at which an activity described in
clause (i) is to take place, the firearm shall
be unloaded and in a locked container or case,
and during the transportation by the juvenile
of that firearm, directly from the place at
which such an activity took place to the
transferor, the firearm shall also be unloaded
and in a locked container or case; or
``(III) with respect to employment,
ranching or farming activities as described in
clause (i), a juvenile may possess and use a
handgun, ammunition, large capacity ammunition
feeding device or a semiautomatic assault rifle
with the prior written approval of the
juvenile's parent or legal guardian, if such
approval is on file with the adult who is not
prohibited by Federal, State, or local law from
possessing a firearm or ammunition and that
person is directing the ranching or farming
activities of the juvenile;
``(B) a juvenile who is a member of the Armed Forces of the
United States or the National Guard who possesses or is armed
with a handgun, ammunition, large capacity ammunition feeding
device, or semiautomatic assault weapon in the line of duty;
``(C) a transfer by inheritance of title (but not
possession) of a handgun, ammunition, large capacity ammunition
feeding device, or a semiautomatic assault weapon to a
juvenile; or
``(D) the possession of a handgun, ammunition, large
capacity ammunition feeding device, or a semiautomatic assault
weapon taken in lawful defense of the juvenile or other persons
in the residence of the juvenile or a residence in which the
juvenile is an invited guest.
``(4) A handgun, ammunition, large capacity ammunition feeding
device, or a semiautomatic assault weapon, the possession of which is
transferred to a juvenile in circumstances in which the transferor is
not in violation of this subsection, shall not be subject to permanent
confiscation by the Government if its possession by the juvenile
subsequently becomes unlawful because of the conduct of the juvenile,
but shall be returned to the lawful owner when such handgun,
ammunition, large capacity ammunition feeding device, or semiautomatic
assault weapon is no longer required by the Government for the purposes
of investigation or prosecution.
``(5) For purposes of this subsection, the term `juvenile' means an
individual who is less than 21 years of age.
``(6)(A) In a prosecution of a violation of this subsection, the
court shall require the presence of a parent or legal guardian of the
juvenile defendant at all proceedings.
``(B) The court may use the contempt power to enforce subparagraph
(A).
``(C) The court may excuse attendance of a parent or legal guardian
of a juvenile defendant at a proceeding in a prosecution of a violation
of this subsection for good cause shown.
``(7) In this subsection, the term `large capacity ammunition
feeding device' has the same meaning as in section 921(a)(31).''.
(b) Effective Date.--This section and the amendment made by this
section shall take effect 180 days after the date of enactment of this
Act.
Subtitle D--Large Capacity Ammunition Feeding Devices
SEC. 11301. BAN ON IMPORTING LARGE CAPACITY AMMUNITION FEEDING DEVICES.
(a) In General.--Section 922(w) of title 18, United States Code, is
amended--
(1) in paragraph (1), by striking ``(1) Except as provided
in paragraph (2)'' and inserting ``(1)(A) Except as provided in
subparagraph (B)'';
(2) in paragraph (2), by striking ``(2) Paragraph (1)'' and
inserting ``(B) Subparagraph (A)'';
(3) by inserting before paragraph (3) the following:
``(2) It shall be unlawful for any person to import a large
capacity ammunition feeding device.''; and
(4) in paragraph (4)--
(A) by striking ``(1)'' each place it appears and
inserting ``(1)(A)''; and
(B) by striking ``(2)'' and inserting ``(1)(B)''.
(b) Conforming Amendment.--Section 921(a)(31) of title 18, United
States Code, is amended by striking ``manufactured after the date of
enactment of the Violent Crime Control and Law Enforcement Act of
1994''.
Subtitle E--Enforcement of Gun Laws
SEC. 11401. ENHANCE ENFORCEMENT OF GUN VIOLENCE LAWS.
(a) Criminal Gun Trafficker Apprehension.--
(1) Commonsense definition of licensed dealer.--Section
921(a)(22) of title 18, United States Code, is amended in the
first sentence by inserting before the period the following:
``: Provided further, That it shall be presumed that the intent
underlying the sale or disposition of a firearm is
predominantly one of obtaining livelihood and pecuniary gain if
a person transfers more than 50 firearms during any 12-month
period, or more than 30 firearms during any 30-day period,
excluding any infrequent transfer of a firearm by gift,
bequest, intestate succession, or other means by an individual
to a parent, child, grandparent, or grandchild of the
individual''.
(2) Requirement that licensee operate from fixed
premises.--Section 923(d)(1)(E)(i) of title 18, United States
Code, is amended by striking ``premises'' and inserting ``fixed
premises (other than a private residence) primarily devoted to
the sale of firearms and conspicuously designated to the public
as such''.
(3) Secure storage of firearms inventories.--
(A) Storage requirements.--Section 923 of title 18,
United States Code, is amended by adding at the end the
following:
``(m) Secure Storage of Firearms Inventories.--
``(1) In general.--Beginning on the date on which the
Secretary issues final regulations under paragraph (2), it
shall be unlawful for any licensed importer, licensed
manufacturer, or licensed dealer (other than a dealer described
in section 921(a)(11)(B)) to store any firearm on a premises
described in subsection (d)(1)(E)(i), other than in accordance
with those regulations.
``(2) Regulations.--
``(A) In general.--Not later than 180 days after
the date of enactment of this subsection, the Secretary
shall issue final regulations governing the secure
storage of firearms on premises described in subsection
(d)(1)(E)(i) by licensed importers, licensed
manufacturers, and licensed dealers.
``(B) Factors for consideration.--In promulgating
regulations issued under this paragraph, the Secretary
shall consider--
``(i) the type and quantity of the firearm
or firearms to be stored; and
``(ii) the standards of safety and security
recognized in the firearms industry.''.
(B) Penalties.--Section 924 of title 18, United
States Code (as amended by section 11101), is amended--
(i) in subsection (a)(1), by striking
``(f), or (p)'' and inserting ``(f), (p), or
(q)''; and
(ii) by adding at the end the following:
``(q) Failure To Securely Store Firearms Inventory.--
``(1) In general.--The Secretary may, after notice and
opportunity for hearing, suspend or revoke any license issued
under this chapter, may subject the licensee to a civil penalty
of not more than $10,000, or both, if the holder of such
license has knowingly violated section 923(m).
``(2) Review.--An action of the Secretary under this
subsection may be reviewed only as provided in section
923(f).''.
(C) Condition of licensing.--
(i) In general.--Section 923(d)(1)(F) of
title 18, United States Code, is amended--
(I) in clause (ii)(II), by striking
``and'' at the end; and
(II) by adding at the end the
following:
``(iv) not later than 30 days after the date on which the
application is approved, the firearms inventory of the business
will be stored in accordance with the regulations issued under
section 923(m)(2); and''.
(ii) Effective date.--The amendments made
by this subparagraph shall apply to any
application submitted under section 923 of
title 18, United States Code, on or after the
date on which final regulations are issued by
the Secretary of the Treasury under section
923(m)(2) of title 18, United States Code, as
added by this section.
(4) Requiring thefts from common carriers to be reported.
(A) In general.--Section 922(f) of title 18, United
States Code, is amended by adding at the end the
following:
``(3)(A) It shall be unlawful for any common or contract carrier to
fail to report the theft or loss of a firearm to the Secretary and to
the appropriate local authorities within 48 hours after the theft or
loss is discovered.
``(B) The Secretary may impose a civil fine of not more than
$10,000 on any person who knowingly violates subparagraph (A).''.
(B) Penalties.--Section 924(a)(1)(B) of title 18,
United States Code, is amended by striking ``(f),'' and
inserting ``(f)(1), (f)(2),''.
(b) Criminal Gun Dealer Detection.--
(1) Recordkeeping inspections.--Section 923(g)(1)(B)(ii)(I)
of title 18, United States Code, is amended by striking
``once'' and inserting ``4 times''.
(2) Disposal of personal firearms collection by certain
licensees made subject to regulations..--Section 923(c) of
title 18, United States Code, is amended by striking the second
sentence and inserting the following: ``A personal collection
of firearms of a licensed manufacturer, licensed importer, or
licensed dealer shall be considered to be part of the business
inventory of the licensee for purposes of this chapter, except
that the provisions of this chapter applicable to the
disposition of a firearm from the business inventory of a
licensee shall not apply to the infrequent transfer of a
firearm by gift, bequest, intestate succession, or other means
from the personal collection of firearms of a licensee to a
parent, child, grandparent, or grandchild of the licensee.''.
(3) Suspension or revocation of firearms dealer license and
civil penalties.--
(A) In general.--Section 923 of title 18, United
States Code, is amended by striking subsection (e) and
inserting the following:
``(e) Suspension or Revocation of Dealer License; Civil
Penalties.--
``(1) Willful violations.--The Secretary may, after notice
and opportunity for hearing, suspend or revoke any license
issued under this section, and may subject the licensee to a
civil penalty of not more than $10,000 per violation, or both,
if the holder of such license has willfully violated any
provision of this chapter or any rule or regulation prescribed
by the Secretary under this chapter.
``(2) Transfer of armor piercing ammunition.--The Secretary
may, after notice and opportunity for hearing, with respect to
a dealer who willfully transfers armor piercing ammunition--
``(A) suspend or revoke the license of that dealer;
``(B) assess a civil penalty of not more than
$10,000 on that dealer; or
``(C) both.
``(3) Compromise, mitigation, or remittance of liability.--
The Secretary may at any time compromise, mitigate, or remit
the liability with respect to any willful violation of this
chapter or any rule or regulation prescribed by the Secretary
under this chapter.
``(4) Review.--An action of the Secretary under this
subsection may be reviewed only as provided in subsection
(f).''.
(B) Notice of license revocation or denial.--
Section 923 of title 18, United States Code, is amended
by striking subsection (f) and inserting the following:
``(f) Rights of Applicants and Licensees.--
``(1) Notice requirements.--
``(A) In general.--If the Secretary denies an
application for, or revokes or suspends a license, or
assesses a civil penalty under this section, the
Secretary shall provide written notice of such denial,
revocation, suspension, or assessment to the affected
party.
``(B) Notice to be given before effective date of
revocation or suspension.--Any notice of a revocation
or suspension of a license under this paragraph shall
be given to the holder of such license before the
effective date of the revocation or suspension, as
applicable.
``(2) Appeals process.--
``(A) Hearing.--If the Secretary denies an
application for, or revokes or suspends a license, or
assesses a civil penalty under this section, the
Secretary, shall--
``(i) upon request of the aggrieved party,
promptly hold a hearing at a location
convenient to the aggrieved party to review the
denial, revocation, suspension, or assessment;
and
``(ii) in the case of a suspension or
revocation of a license, upon the request of
the holder of the license, stay the effective
date of the suspension or revocation.
``(B) Notice of decision.--If, after a hearing held
under subparagraph (A), the Secretary decides not to
reverse the decision of the Secretary to deny the
application, revoke or suspend the license, or assess
the civil penalty, as applicable, the Secretary shall
provide notice of the decision of the Secretary to the
aggrieved party.
``(C) Petition for de novo review.--
``(i) In general.--During the 60-day period
beginning on the date on which an aggrieved
party receives a notice under subparagraph (B),
the aggrieved party may file a petition with
the district court of the United States for the
judicial district in which the aggrieved party
resides or has a principal place of business
for a de novo judicial review of such denial, revocation, suspension,
or assessment.
``(ii) Judicial proceeding.--In any
judicial proceeding pursuant to a petition
under clause (i)--
``(I) the court may consider any
evidence submitted by the parties to
the proceeding, regardless of whether
or not such evidence was considered at
the hearing held under subparagraph
(A); and
``(II) if the court decides that
the Secretary was not authorized to
make such denial, revocation,
suspension, or assessment, the court
shall order the Secretary to take such
actions as may be necessary to comply
with the judgment of the court.''.
(c) Violent Felon Gun Ban Enforcement.--
(1) Administrative relief from certain firearms and
explosives prohibitions.--
(A) In general.--
(i) Firearms.--Section 925(c) of title 18,
United States Code, is amended--
(I) by inserting ``(1)'' after
``(c)'';
(II) in the first sentence, by
inserting ``(other than a natural
person)'' before ``who is prohibited'';
(III) in the fourth sentence--
(aa) by inserting ``person
(other than a natural person)
who is a'' before ``licensed
importer''; and
(bb) by striking ``his
license'' and inserting ``the
license of that person''; and
(IV) by striking the last sentence
and inserting the following:
``(2) Whenever the Secretary grants relief under this section to
any person, the Secretary shall promptly publish notice of such action
in the Federal Register, which shall include--
``(A) the name of the person;
``(B) the disability with respect to which the relief is
granted;
``(C) if the disability was imposed by reason of a criminal
conviction of the person, the crime for which and the court in
which the person was convicted; and
``(D) the reasons for the decision of the Secretary.''.
(ii) Explosive materials.--Section 845(b)
of title 18, United States Code, is amended--
(I) in the first sentence, by
inserting ``(other than a natural
person)'' before ``may make application
to the Secretary''; and
(II) in the second sentence, by
inserting ``(other than a natural
person)'' before ``who makes
application for relief''.
(B) Applicability.--The amendments made by
subparagraph (A) shall apply to any application for
administrative relief and any action for judicial
review that--
(i) is pending on the date of enactment of
this section; and
(ii) is brought or filed on or after the
date of enactment of this section.
(2) Permanent firearm prohibition for convicted violent
felons and serious drug offenders.--Section 921(a)(20) of title
18, United States Code, is amended--
(A) in the first sentence--
(i) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively; and
(ii) by inserting ``(A)'' after ``(20)'';
(B) in the second sentence, by striking ``What''
and inserting the following:
``(B) What''; and
(C) by striking the third sentence and inserting
the following:
``(C) A State conviction shall not be considered to be a conviction
for purposes of this chapter, if--
``(i) the conviction is for an offense other than a serious
drug offense (as defined in section 924(e)(2)(A)) or violent
felony (as defined in section 924(e)(2)(B));
``(ii) the person is pardoned or has restored any civil
right taken away by virtue of the conviction, or the conviction
is expunged; and
``(iii) the authority that grants the pardon, the
restoration of civil rights, or the expungement--
``(I) expressly authorizes the person to ship,
transport, receive, and possess firearms; and
``(II) expressly determines that the circumstances
regarding the conviction and the record and reputation
of the person are such that the person is not likely to
act in a manner that is dangerous to public safety, and
that the granting of the relief is not contrary to the
public interest.''.
(d) Intensive Gun Violence Reduction Strategy and Project Exile
Implementation.--
(1) Authorization of funding for federal domestic violence
offender recordkeeping improvements.--
(A) In general.--In addition to any other amounts
authorized to be appropriated that may be used for such
purpose, there is authorized to be appropriated
$70,000,000 for fiscal year 2002 for the improvement of
the national instant criminal background check system
established under section 103 of the Brady Handgun
Violence Prevention Act (18 U.S.C. 922 note), including
improvements with respect to the records described in
subparagraph (B) of this paragraph, and especially
records of domestic violence incidents, including
felony and misdemeanor convictions for crimes of
domestic violence and restraining orders with respect
to incidents of domestic violence.
(B) Records included.--The records described in
this subsection are--
(i) the records described in paragraphs
(1), (2), and (3) of section 509(b) of the
Omnibus Crime Control and Safe Streets Act of
1968 (42 U.S.C. 3759(b)); and
(ii) the records required by the Attorney
General under section 103 of the Brady Handgun
Violence Prevention Act (18 U.S.C. 922 note)
for the purpose of implementing that Act.
(2) Authorization of funding for state and local domestic
violence offender recordkeeping improvements.--
(A) Grants for state and local domestic violence
offender recordkeeping improvements.--Title III of the
Violent Crime Control and Law Enforcement Act of 1994
is amended by adding at the end the following:
``Subtitle Y--Grants for State and Local Domestic Violence Offender
Recordkeeping Improvements
``SEC. 32501. GRANT AUTHORIZATION.
``The Attorney General may award grants to State or local law
enforcement agencies for the purpose of improving--
``(1) the organization of criminal records including
records relating to convictions for crimes of domestic violence
and restraining orders with respect to domestic violence; and
``(2) the reporting of such records to the national instant
criminal background check system established under section 103
of the Brady Handgun Violence Prevention Act (18 U.S.C. 922
note).
``SEC. 32502. USE OF FUNDS.
``Grants awarded by the Attorney General under this subtitle shall
be used to fund programs for the purpose specified in section 32501.
``SEC. 32503. APPLICATIONS.
``(a) Eligibility.--To be eligible to receive a grant award under
this subtitle for a fiscal year, a State or local law enforcement
agency shall submit to the Attorney General an application, in such
form and containing such information as the Attorney General may
reasonably require.
``(b) Requirements.--Each application submitted under this section
shall include--
``(1) a request for funds for the purpose specified in
section 32501;
``(2) a description of the improvements the applicant
intends to make in its organization of criminal records,
including records relating to convictions for crimes of
domestic violence and to restraining orders with respect to
domestic violence, and its reporting of such records to the
national instant criminal background check system; and
``(3) assurances that Federal funds received under this
subtitle shall be used to supplement, not supplant, non-Federal
funds that would otherwise be available for activities funded
under this section.
``SEC. 32504. MATCHING REQUIREMENT.
``The Federal share of a grant awarded under this subtitle may not
exceed 50 percent of the total costs of the programs described in the
applications submitted under section 32503 for the fiscal year for
which the programs receive assistance under this subtitle.
``SEC. 32505. AWARD OF GRANTS.
``(a) In General.--In awarding grants under this subtitle, the
Attorney General shall consider the demonstrated need for, and the
evidence of the ability of the applicant to make, the improvements
described in section 32503(b)(2), as described in the application
submitted under section 32503.
``(b) Research and Evaluation.--The Attorney General shall use not
more than 3 percent of the funds available under this subtitle, and not
less than 1 percent of such funds, for the purposes of research and
evaluation of the activities carried out under this subtitle.
``SEC. 32506. REPORTS.
``(a) Report to Attorney General.--Not later than March 1 of each
fiscal year, each law enforcement agency that received funds from a
grant awarded under this subtitle for that fiscal year shall submit to
the Attorney General a report describing the progress achieved in
carrying out the program for which the grant was awarded.
``(b) Report to Congress.--Beginning not later than October 1 of
the first fiscal year following the initial fiscal year during which
grants are awarded under this subtitle, and not later than October 1 of
each fiscal year thereafter, the Attorney General shall submit to
Congress a report, which shall contain a detailed statement regarding
grant awards, activities of grant recipients, a compilation of
statistical information submitted by applicants, and an evaluation of
programs established with amounts from grants awarded under this
subtitle during the preceding fiscal year.
``SEC. 32507. DEFINITION OF STATE.
``In this subtitle, the term `State' means each of the several
States of the United States, the District of Columbia, the Commonwealth
of Puerto Rico, the Commonwealth of the Northern Mariana Islands,
American Samoa, Guam, and the United States Virgin Islands.
``SEC. 32508. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this subtitle
$20,000,000 for fiscal year 2002.''.
(B) Technical and conforming amendment.--The table
of contents in section 2 of the Violent Crime Control
and Law Enforcement Act of 1994 is amended by inserting
after the item relating to subtitle X the following:
``Subtitle Y--Grants for State and Local Domestic Violence Offender
Recordkeeping Improvements
``Sec. 32501. Grant authorization.
``Sec. 32502. Use of funds.
``Sec. 32503. Applications.
``Sec. 32504. Matching requirement.
``Sec. 32505. Award of grants.
``Sec. 32506. Reports.
``Sec. 32507. Definition of State.
``Sec. 32508. Authorization of appropriations.''.
(3) Authorization of funding for additional bureau of
alcohol, tobacco and firearms officers.--In addition to any
other amounts authorized to be appropriated that may be used
for such purpose, there is authorized to be appropriated
$53,000,000 for fiscal year 2002 for the hiring of 600
firearms' agents and inspectors for the Bureau of Alcohol,
Tobacco and Firearms.
(4) Authorization of funding for additional state and local
gun prosecutors.--
(A) Grants for state and local gun prosecutors.--
Title III of the Violent Crime Control and Law
Enforcement Act of 1994 (as amended by paragraph (2)),
is amended by adding at the end the following:
``Subtitle Z--Grants for State and Local Gun Prosecutors
``SEC. 32601. GRANT AUTHORIZATION.
``The Attorney General may award grants to State, Indian tribal, or
local prosecutors for the purpose of supporting the creation or
expansion of community-based justice programs for the prosecution of
firearm-related crimes.
``SEC. 32602. USE OF FUNDS.
``Grants awarded by the Attorney General under this subtitle shall
be used to fund programs for the hiring of prosecutors and related
personnel under which those prosecutors and personnel shall utilize an
interdisciplinary team approach to prevent, reduce, and respond to
firearm-related crimes in partnership with communities.
``SEC. 32603. APPLICATIONS.
``(a) Eligibility.--To be eligible to receive a grant award under
this subtitle for a fiscal year, a State, Indian tribal, or local
prosecutor, in conjunction with the chief executive officer of the
jurisdiction in which the program will be placed, shall submit to the
Attorney General an application, in such form and containing such
information as the Attorney General may reasonably require.
``(b) Requirements.--Each application submitted under this section
shall include--
``(1) a request for funds for the purposes described in
section 32602;
``(2) a description of the communities to be served by the
grant, including the nature of the firearm-related crime in
such communities; and
``(3) assurances that Federal funds received under this
subtitle shall be used to supplement, not supplant, non-Federal
funds that would otherwise be available for activities funded
under this section.
``SEC. 32604. MATCHING REQUIREMENT.
``The Federal share of a grant awarded under this subtitle may not
exceed 50 percent of the total cost of the program described in the
application submitted under section 32603 for the fiscal year for which
the program receives assistance under this subtitle.
``SEC. 32605. AWARD OF GRANTS.
``(a) In General.--Except as provided in subsection (b), in
awarding grants under this subtitle, the Attorney General shall
consider--
``(1) the demonstrated need for, and the evidence of the
ability of the applicant to provide, the services described in
section 32603(b)(2), as described in the application submitted
under section 32603;
``(2) the extent to which, as reflected in the 1998 Uniform
Crime Report of the Federal Bureau of Investigation, there is a
high rate of firearm-related crime in the jurisdiction of the
applicant, measured either in total or per capita;
``(3) the extent to which the jurisdiction of the applicant
has experienced an increase in the total or per capita rate of
firearm-related crime, as reported in the 3 most recent annual
Uniform Crime Reports of the Federal Bureau of Investigation;
``(4) the extent to which State and local law enforcement
agencies in the jurisdiction of the applicant have pledged to
cooperate with Federal officials in responding to the illegal
acquisition distribution, possession, and use of firearms
within the jurisdiction; and
``(5) the extent to which the jurisdiction of the applicant
participates in comprehensive firearm law enforcement
strategies, including programs such as the Youth Crime Gun
Interdiction Initiative, Project Achilles, Project Disarm,
Project Triggerlock, Project Exile, Project Surefire, and
Operation Ceasefire.
``(b) Indian Tribes.--
``(1) Federal grants.--Not less than 5 percent of the
amount made available for grants under this subtitle for each
fiscal year shall be awarded as grants to Indian tribes.
``(2) Grant criteria.--In awarding grants to Indian tribes
in accordance with this subsection, the Attorney General shall
consider, to the extent practicable, the factors for
consideration set forth in subsection (a).
``(c) Research and Evaluation.--Of the amount made available for
grants under this subtitle for each fiscal year, the Attorney General
shall use not less than 1 percent and not more than 3 percent for
research and evaluation of the activities carried out with grants
awarded under this subtitle.
``SEC. 32606. REPORTS.
``(a) Report to Attorney General.--Not later than March 1 of each
fiscal year, each law enforcement agency that receives funds from a
grant awarded under this subtitle for that fiscal year shall submit to
the Attorney General a report describing the progress achieved in
carrying out the grant program for which those funds were received.
``(b) Report to Congress.--Beginning not later than October 1 of
the first fiscal year following the initial fiscal year during which
grants are awarded under this subtitle, and not later than October 1 of
each fiscal year thereafter, the Attorney General shall submit to
Congress a report, which shall contain a detailed statement regarding
grant awards, activities of grant recipients, a compilation of
statistical information submitted by applicants, and an evaluation of
programs established with amounts from grants awarded under this
subtitle during the preceding fiscal year.
``SEC. 32607. DEFINITIONS.
``In this subtitle--
``(1) the term `firearm' has the meaning given the term in
section 921(a) of title 18, United States Code;
``(2) the term `Indian tribe' means a tribe, band, pueblo,
nation, or other organized group or community of Indians,
including an Alaska Native village (as defined in or
established under the Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.)), that is recognized as eligible for the
special programs and services provided by the United States to
Indians because of their status as Indians; and
``(3) the term `State' means each of the several States of
the United States, the District of Columbia, the Commonwealth
of Puerto Rico, the Commonwealth of the Northern Mariana
Islands, American Samoa, Guam, and the United States Virgin
Islands.
``SEC. 32608. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this subtitle
$150,000,000 for fiscal year 2002.''.
(B) Technical and conforming amendment.--The table
of contents in section 2 of the Violent Crime Control
and Law Enforcement Act of 1994 (as amended by
paragraph (2)(B)) is amended by inserting after the
item relating to subtitle Y the following:
``Subtitle Z--Grants for State and Local Gun Prosecutors
``Sec. 32601. Grant authorization.
``Sec. 32602. Use of funds.
``Sec. 32603. Applications.
``Sec. 32604. Matching requirement.
``Sec. 32605. Award of grants.
``Sec. 32606. Reports.
``Sec. 32607. Definitions.
``Sec. 32608. Authorization of appropriations.''.
(5) Authorization of funding for additional federal
firearms prosecutors and gun enforcement teams.--
(A) Additional federal firearms prosecutors.--The
Attorney General shall hire 114 additional Federal
prosecutors to prosecute violations of Federal firearms
laws.
(B) Gun enforcement teams.--
(i) Establishment.--The Attorney General
shall establish in each of the jurisdictions
specified in clause (iii) a gun enforcement
team.
(ii) Gun enforcement team requirements.--
Each gun enforcement team established under
this subparagraph shall be composed of--
(I) 1 coordinator, who shall be
responsible, with respect to the
jurisdiction concerned, for
coordinating among Federal, State, and
local law enforcement--
(aa) the appropriate forum
for the prosecution of crimes
relating to firearms; and
(bb) efforts for the
prevention of such crimes; and
(II) 1 analyst, who shall be
responsible, with respect to the
jurisdiction concerned, for analyzing
data relating to such crimes and
recommending law enforcement strategies
to reduce such crimes.
(iii) Covered jurisdictions.--The
jurisdictions specified in this subparagraph
are not more than 20 jurisdictions designated
by the Attorney General for purposes of this
subparagraph as areas having high rates of
crimes relating to firearms.
(C) Authorization of appropriations.--In addition
to any other amounts authorized to be appropriated that
may be used for such purpose, there is authorized to be
appropriated to carry out this paragraph $15,000,000
for fiscal year 2002.
(6) Youth crime gun interdiction initiative.--
(A) In general.--The Secretary of the Treasury
shall expand--
(i) to 50, the number of city and county
law enforcement agencies that through the Youth
Crime Gun Interdiction Initiative submit
identifying information relating to all
firearms recovered during law enforcement
investigations, including from individuals
under age 25, to the Secretary of the Treasury
to identify the types and origins of such
firearms; and
(ii) the resources devoted to law
enforcement investigations of illegal youth
possessors and users of illegal firearms
traffickers identified through the Youth Crime
Gun Interdiction Initiative, including through
the hiring of additional agents, inspectors,
intelligence analysts, and support personnel.
(B) Selection of participants.--The Secretary of
the Treasury, in consultation with Federal, State, and
local law enforcement officials, shall select cities
and counties for participation in the program
established under this paragraph.
(C) Establishment of system.--
(i) In general.--The Secretary of the
Treasury shall establish a system through which
State and local law enforcement agencies,
through online computer technology, can
promptly provide firearms-related information
to the Secretary of the Treasury and access
information derived through the Youth Crime Gun
Interdiction Initiative as soon as such
capability is available.
(ii) Report.--Not later than 6 months after
the date of enactment of this section, the
Secretary of the Treasury shall submit to the
Chairman and Ranking Member of the Committee on
Appropriations of the House of Representatives,
and the Chairman and Ranking Member of the
Committee on Appropriations of the Senate, a
report explaining the capacity to provide such
online access and the future technical and, if
necessary, legal changes required to make such
capability available, including cost estimates.
(D) Report.--Not later than 1 year after the date
of enactment of this paragraph, and annually
thereafter, the Secretary of the Treasury shall submit
to the Chairman and Ranking Member of the Committee on
Appropriations of the House of Representatives, and the
Chairman and Ranking Member of the Committee on
Appropriations of the Senate, a report regarding--
(i) the types and sources of firearms
recovered from individuals, including those
under the age of 25;
(ii) regional, State, and national firearms
trafficking trends; and
(iii) the number of investigations and
arrests resulting from the Youth Crime Gun
Interdiction Initiative.
(E) Authorization of appropriations.--There is
authorized to be appropriated to carry out this section
$20,000,000 for fiscal year 2002.
(7) Local antigun violence media campaigns.--
(A) Grants for local antigun violence media
campaigns.--Title III of the Violent Crime Control and
Law Enforcement Act of 1994 (as amended by paragraphs
(2) and (4)) is amended by adding at the end the
following:
``Subtitle AA--Grants for Local Antigun Violence Media Campaigns
``SEC. 32701. GRANT AUTHORIZATION.
``The Attorney General may award grants to public entities or
private nonprofit entities for the purpose of supporting the creation
or expansion of local antigun violence media campaigns.
``SEC. 32702. USE OF FUNDS.
``Grants awarded by the Attorney General under this subtitle shall
be used to fund programs for media campaigns on gun violence and gun
safety, including campaigns that--
``(1) highlight coordination among Federal, State, and
local law enforcement agencies;
``(2) publicize penalties for violations of firearms laws;
and
``(3) emphasize the safe storage of firearms and the
prevention of access to firearms by children.
``SEC. 32703. APPLICATIONS.
``To be eligible to receive a grant award under this subtitle for a
fiscal year, a public entity or private nonprofit entity shall submit
to the Attorney General an application, in such form and containing
such information as the Attorney General may reasonably require.
``SEC. 32704. MATCHING REQUIREMENT.
``The Federal share of a grant awarded under this subtitle may not
exceed 50 percent of the total cost of the program described in the
application submitted under section 32703 for the fiscal year for which
the program receives assistance under this subtitle.
``SEC. 32705. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this subtitle
$10,000,000 for fiscal year 2002.''.
(B) Technical and conforming amendment.--The table
of contents in section 2 of the Violent Crime Control
and Law Enforcement Act of 1994 (as amended by
paragraphs (2)(B) and (4)(B)), is amended by inserting
after the item relating to subtitle Z the following:
``Subtitle AA--Grants for Local Antigun Violence Media Campaigns
``Sec. 32701. Grant authorization.
``Sec. 32702. Use of funds.
``Sec. 32703. Applications.
``Sec. 32704. Matching requirement.
``Sec. 32705. Authorization of appropriations.''.
(8) Smart gun technology.--
(A) In general.--The Attorney General, acting
through the Director of the National Institute of
Justice, shall carry out a program for the research and
development of smart gun technology.
(B) Definition of smart gun technology.--In this
paragraph, the term ``smart gun technology'' means a
device--
(i) incorporated by manufacture and design
into a handgun in such a manner that the device
cannot be readily removed or deactivated;
(ii) that allows the handgun to be fired
only by a particular individual; and
(iii) that may allow the handgun to be
personalized to an additional individual.
(C) Authorization of appropriations.--In addition
to any other amounts authorized to be appropriated that
may be used for such purpose, there is authorized to be
appropriated to carry out this paragraph $10,000,000
for fiscal year 2002.
(9) Definition of foreign ballistics.--Section 921(a) of
title 18, United States Code (as amended by sections 11001 and
11101), is amended by adding at the end the following:
``(39) The term `forensic ballistics' means a comparative analysis
of fired bullets and cartridge casings to identify the firearm from
which the bullets or cartridge casings were discharged through the
identification of the unique characteristics that each firearm imprints
on bullets and cartridge casings.''.
(10) Test firing and automated storage of forensic
ballistics records.--
(A) Amendments to title 18, united states code.--
(i) In general.--Chapter 44 of title 18,
United States Code (as amended by section
11001), is amended by adding at the end the
following:
``Sec. 932. Test firing and automated storage of forensic ballistics
records
``(a) In General.--A licensed manufacturer or licensed importer
shall not transfer a firearm to any person before--
``(1) test firing the firearm;
``(2) preparing forensic ballistics records of the fired
bullet and cartridge casings from the test fire; and
``(3) making the ballistics records available to the
Secretary for entry in a computerized database.
``(b) Penalties.--
``(1) In general.--With respect to each violation of
subsection (a) by a licensed manufacturer or licensed importer,
the Secretary may, after notice and opportunity for hearing,
suspend the license for not more than 1 year or revoke the
license, impose on the licensee a civil fine of not more than
$10,000, or both.
``(2) Review.--An action of the Secretary under subsection
(b)(1) may be reviewed only as provided in section 923(f).
``(3) Other administrative remedies.--The suspension or
revocation of a license or the imposition of a civil fine under
paragraph (1) shall not preclude any administrative remedy that
is available to the Secretary under any other provision of law.
``(c) Mandatory Forensic Ballistics Testing of Firearms in Federal
Custody.--The Secretary and the Attorney General shall conduct
mandatory forensic ballistics testing of all firearms that are or have
been taken into the custody of, or procured or utilized by, their
respective agencies.''.
(ii) Technical and conforming amendment.--
The analysis for chapter 44 of title 18, United
States Code, is amended by adding at the end
the following:
``932. Test firing and automated storage of forensic ballistics
records.''.
(iii) Authorization of appropriations.--
There is authorized to be appropriated to carry
out section 932(c) of title 18, United States
Code, $38,000,000 for each of fiscal years 2002
through 2005.
(iv) Effective date.--The amendment made by
this subparagraph shall take effect on the date
on which the Attorney General and the Secretary
of the Treasury certify that the Department of
Justice and the Department of the Treasury have
established a National Integrated Ballistics
Network.
(B) Compliance assistance.--
(i) In general.--The Attorney General and
the Secretary shall assist licensed
manufacturers and licensed importers in
complying with section 932(a) of title 18,
United States Code, through--
(I) the acquisition, disposition,
and upgrade of computerized forensic
ballistics equipment and bullet
recovery equipment to be placed at the
sites of licensed manufacturers and
licensed importers or at regional
firearm centers established by the
Secretary;
(II) the hiring or designation of
personnel necessary to develop and
maintain a database of forensic
ballistics records, research, and
evaluation; and
(III) any other steps necessary to
implement effective forensic ballistics
testing.
(ii) Online access to forensic ballistics
records.--The Attorney General and the
Secretary shall establish a system through
which State and local law enforcement agencies,
through online computer technology, can
promptly access forensic ballistics records
stored under section 932 of title 18, United
States Code, as soon as the capability to do so
is available.
(C) Annual reports.--Not later than 1 year after
the effective date of section 932 of title 18, United
States Code, and annually thereafter, the Attorney
General and the Secretary shall submit to the
Committees on the Judiciary of the House of
Representatives and the Senate a report regarding the
effects of section 932 of title 18, United States Code,
including the number of Federal and State criminal
investigations, arrests, indictments, and prosecutions
of all cases in which access to forensic ballistics
records provided under section 932 of title 18, United
States Code, served as a valuable investigative tool.
(D) Education and outreach.--
(i) In general.--The Attorney General and
the Secretary shall work cooperatively with
representatives of the firearm industry
(including firearm manufacturers and importers)
to provide--
(I) education about the role of
forensic ballistics as part of a
comprehensive firearm crime reduction
strategy; and
(II) for coordination among
Federal, State, and local law
enforcement and regulatory agencies and
the firearm industry to curb firearm-
related crime and illegal firearm
trafficking.
(ii) Outreach.--In implementing clause (i),
the Attorney General and the Secretary shall
concentrate on outreach with--
(I) firearm manufacturers and
importers that have agreed to
participate as a pilot site for the
National Integrated Ballistics
Information Network;
(II) firearm manufacturers and
importers that manufacture or import
more than 1,000 firearms per year, as
reported in the Bureau of Alcohol,
Tobacco and Firearms Annual Firearms
Manufacturing and Export Report, or as
determined from information obtained in
annual regulatory inspection audits
conducted by the Secretary; and
(III) firearm manufacturers and
importers that have a policy that
requires the test firing of all
firearms prior to transfer.
(iii) Annual reports.--Not later than 1
year after the effective date of this section
and annually thereafter, the Secretary and the
Attorney General shall submit to the Committees
on the Judiciary of the House of
Representatives and the Senate a report
containing--
(I) a statement of the number of
firearm manufacturers and importers and
other representatives of the firearm
industry participating in the outreach
effort under this subparagraph;
(II) the number and type of
personnel of the Bureau of Alcohol,
Tobacco and Firearms and the Department
of Justice hired or assigned to carry
out this subparagraph;
(III) a summary of the activities
established by firearm manufacturers
and importers as a result of their
participation in the outreach effort
under this subparagraph;
(IV) an evaluation of any changes
in firearm-related crime pertaining to
particular types of firearms
manufactured by a firearm manufacturer
or importer that is an active
participant in the outreach effort
under this subparagraph;
(V) the volume of forensic
ballistics records compiled as a result
of the mandatory forensic ballistics
testing by participating firearm
manufacturers and importers;
(VI) for each firearm manufacturer
and firearm importer, the number of
times a tracing request based on
forensic ballistics analysis resulted
in the identification of a firearm
manufactured or imported by the firearm
manufacturer or firearm importer; and
(VII) an evaluation of the manner
in which the implementation of forensic
ballistics testing affected the volume
of production or importation of
firearms by participating firearm
manufacturers and firearm importers.
(iv) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subparagraph, $38,306,000 for each of fiscal years 2002
through 2005, including funding for--
(I) installation of forensic
ballistics equipment and bullet
recovery equipment;
(II) establishment of regional
centers for firearm testing;
(III) salaries and expenses of
necessary personnel; and
(IV) research and evaluation.
(E) Report.--Not later than 1 year after the date
of enactment of this paragraph, the Attorney General
and the Secretary of the Treasury shall submit to the
Committees on Appropriations of the House of
Representatives and the Senate a report, which shall
include an analysis of--
(i) the capacity to provide the online
access required under subparagraph (B)(ii), and
the process by which the online access will be implemented; and
(ii) any future technical or legal changes
that may be required to make online access
available, including estimates of the costs of
making those changes.
Subtitle F--Miscellaneous
SEC. 11501. STUDY OF MARKETING PRACTICES OF THE FIREARMS INDUSTRY.
(a) In General.--The Federal Trade Commission and the Attorney
General shall jointly conduct a study of the marketing practices of the
firearms industry, with respect to minors.
(b) Issues Examined.--In conducting the study under subsection (a),
the Commission and the Attorney General shall examine the extent to
which the firearms industry advertises and promotes its products to
minors, including in media outlets in which minors comprise a
substantial percentage of the audience.
(c) Report.--Not later than 1 year after the date of enactment of
this Act, the Commission and the Attorney General shall submit to
Congress a report on the study conducted under subsection (a).
SEC. 11502. REGULATION OF INTERNET FIREARMS TRANSFERS.
(a) Prohibitions.--Section 922 of title 18, United States Code (as
amended by section 11101), is amended by inserting after subsection (z)
the following:
``(aa) Regulation of Internet Firearms Transfers.--
``(1) In general.--It shall be unlawful for any person to
operate an Internet website, if a purpose of the website is to
offer 1 or more firearms for sale or exchange, or is to
otherwise facilitate the sale or exchange of 1 or more firearms
posted or listed on the website, unless--
``(A) the person is licensed as a manufacturer,
importer, or dealer under section 923;
``(B) the person notifies the Secretary of the
Internet address of the website, and any other
information concerning the website as the Secretary may
require by regulation; and
``(C) if any firearm posted or listed for sale or
exchange on the website is not from the business
inventory or personal collection of that person--
``(i) the person, as a term or condition
for posting or listing the firearm for sale or
exchange on the website on behalf of a
prospective transferor, requires that, in the
event of any agreement to sell or exchange the
firearm pursuant to that posting or listing,
the firearm be transferred to that person for
disposition in accordance with clause (iii);
``(ii) the person prohibits the posting or
listing on the website of any information
(including any name, nickname, telephone
number, address, or electronic mail address)
that is reasonably likely to enable the
prospective transferor and prospective
transferee to contact one another directly
prior to the shipment of the firearm to that
person under clause (i), except that this
clause does not include any information
relating solely to the manufacturer, importer,
model, caliber, gauge, physical attributes,
operation, performance, or price of the
firearm; and
``(iii) with respect to each firearm
received from a prospective transferor under
clause (i), the person--
``(I) enters such information about
the firearm as the Secretary may
require by regulation into a separate
bound record;
``(II) in transferring the firearm
to any transferee, complies with the
requirements of this chapter as if the
firearm were being transferred from the
business inventory of that person; and
``(III) if the prospective
transferor does not provide the person
with a certified copy of a valid
firearms license issued to the
prospective transferor under this
chapter, submits to the Secretary a
report of the transfer or other
disposition of the firearm on a form
specified by the Secretary, which
report shall not include the name of,
or any other identifying information
relating to, the transferor.
``(2) Transfers by persons other than licensees.--It shall
be unlawful for any person who is not licensed under section
923 to transfer a firearm pursuant to a posting or listing of
the firearm for sale or exchange on an Internet website
described in paragraph (1) to any person other than the
operator of the website.''.
(b) Penalties.--Section 924(a) of title 18, United States Code (as
amended by section 11001), is amended by adding at the end the
following:
``(9) Whoever willfully violates section 922(aa)(2) shall
be fined under this title, imprisoned not more than 2 years, or
both.''.
SEC. 11503. REDUCTION OF GUN TRAFFICKING.
(a) Prohibition Against Multiple Handgun Sales or Purchases.--
Section 922 of title 18, United States Code (as amended by sections
11101 and 11502), is amended by inserting after subsection (aa) the
following:
``(bb) Prohibition Against Multiple Handgun Sales or Purchases.--
``(1) In general.--It shall be unlawful for any licensed
dealer--
``(A) during any 30-day period, to sell 2 or more
handguns to an individual who is not licensed under
section 923; or
``(B) to sell a handgun to an individual who is not
licensed under section 923 and who purchased a handgun
during the 30-day period ending on the date of the
sale.
``(2) Time limitation.--It shall be unlawful for any
individual who is not licensed under section 923 to purchase 2
or more handguns during any 30-day period.
``(3) Exchanges.--Paragraph (1) does not apply to an
exchange of 1 handgun for 1 handgun.''.
(b) Penalties.--Section 924(a)(2) of title 18, United States Code,
is amended by striking ``or (o)'' and inserting ``(o), or (bb)''.
(c) Deadlines for Destruction of Records Related to Certain
Firearms Transfers.--
(1) Handgun transfers subject to the waiting period.--
Section 922(s)(6)(B)(i) of title 18, United States Code, is
amended by striking ``20 business days'' and inserting ``35
calendar days''.
(2) Firearms transfers subject to instant check.--Section
922(t)(2)(C) of title 18, United States Code, is amended by
inserting ``not later than 35 calendar days after the date the
system provides the licensee with the number,'' before
``destroy''.
(d) Revised Definition.--Section 921(a)(21)(C) of title 18, United
States Code, is amended by inserting ``, except that such term shall
include any person who transfers more than 1 handgun in any 30-day
period to a person who is not a licensed dealer'' before the semicolon.
TITLE XII--MISCELLANEOUS
SEC. 12001. ADVISORY COMMITTEE ON PRIVATE SECTOR SUPPORT FOR CHILDREN
AND FAMILIES.
(a) Establishment.--Not later than 6 months after the date of
enactment of this Act, the Secretary of Health and Human Services (in
this section referred to as the ``Secretary'') shall establish an
advisory committee to be known as the ``Advisory Committee on Private
Sector Support for Children and Families'' (in this section referred to
as the ``Committee'') that shall review, highlight and promote the
private sector policies and practices that will best create family-
friendly workplaces and allow parents to succeed at work and at home.
(b) Duties.--The Committee shall--
(1) solicit advice and recommendations concerning employer
and community efforts that are designed to assist parents
caring for their children and ensure that every child residing
in the United States has a healthy start, a head start, a fair
start, and a safe start in life and successful passage to
adulthood;
(2) review and consider the full range of private sector
family-centered efforts, including flexibility in the
workplace, family and medical leave policies, employer
sponsored health care and child care services, parent support
centers, and literacy training; and
(3) prepare and submit the report required under subsection
(d).
(c) Membership.--The Committee shall--
(1) be appointed by the Secretary in consultation with the
Secretary of the Treasury, the Secretary of Labor, and the
Secretary of Education; and
(2) consist of representatives of children and family
advocates, business groups, labor organizations, faith-based
institutions, and charitable foundations.
(d) Report.--
(1) Secretary.--Not later than 18 months after the date of
enactment of this Act, the Committee shall submit to the
Secretary a report that contains the Committee's findings and
recommendations resulting from carrying out the duties required
under subsection (b), together with recommendations for such
legislation and administrative actions as the Committee
considers appropriate
(2) Congress.--The Secretary shall transmit copies of the
report to the Committee on Health, Education, Labor, and
Pensions and the Committee on Finance of the Senate and the
Committee on Education and the Workforce, the Committee on
Energy and Commerce, and the Committee on Ways and Means of the
House of Representatives.
SEC. 12002. IMPROVEMENT OF DATA COLLECTION AND REPORTING REGARDING
CHILDREN AND FAMILIES.
(a) Report on Economic Well-Being of Current and Former TANF
Families.--
(1) Annual report to congress.--Section 411(b) of the
Social Security Act (42 U.S.C. 611(b)) is amended--
(A) in paragraph (3), by striking ``and'' at the
end;
(B) in paragraph (4), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(5) the economic well-being of children and families
receiving assistance under the State programs funded under this
part and of children and families that have ceased to receive
such assistance, using longitudinal matched data gathered from
federally supported programs, and including State-by-State data
that details the distribution of earnings and stability of
employment of such families and (to the extent feasible)
describes, with respect to such families, the distribution of
income from known sources (including employer-reported wages,
assistance under the State program funded under this part, and
benefits under the food stamp program), the ratio of such
families' income to the poverty line, and the extent to which
such families receive or received noncash benefits and child
care assistance.''.
(2) Conforming amendments.--Section 411(a) of the Social
Security Act (42 U.S.C. 611(a)) is amended--
(A) by redesignating paragraph (7) as paragraph
(8); and
(B) by inserting after paragraph (6), the following
new paragraph:
``(7) Report on economic well-being of current and former
recipients.--The report required by paragraph (1) for a fiscal
quarter shall include for that quarter such information as the
Secretary may specify in order for the Secretary to include in
the annual reports to Congress required under subsection (b)
the information described in paragraph (5) of that
subsection.''.
(b) Report on Data From State Studies Regarding Former TANF and
Food Stamp Recipients.--Section 413 of the Social Security Act (42
U.S.C. 613) is amended by adding at the end the following new
subsection:
``(k) Report on Status of Former Recipients of Assistance and Food
Stamp Benefits.--Not later than 6 months after the date of enactment of
the Leave No Child Behind Act of 2001, the Secretary shall compile and
report to Congress data from existing State-level studies funded (in
whole or in part) by the Secretary on the extent of employment, receipt
of non-cash benefits, occurrence of extreme poverty, and hardship among
previous recipients of assistance under the State program funded under
this part and benefits under the food stamp program.''.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S5549-5552)
Read twice and referred to the Committee on Finance.
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