article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Small Business Child Care Act''. SEC. 2. SMALL BUSINESS CHILD CARE GRANT PROGRAM. (a) Establishment.--The Secretary of Health and Human Services (referred to in this section as the ``Secretary'') shall establish a program to award grants to States, on a competitive basis, to assist States in providing funds to encourage the establishment and operation of employer-operated child care programs. (b) Application.--To be eligible to receive a grant under this section, a State shall prepare and submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including an assurance that the funds required under subsection (e) will be provided. (c) Amount and Period of Grant.--The Secretary shall determine the amount of a grant to a State under this section based on the population of the State as compared to the population of all States receiving grants under this section. The Secretary shall make the grant for a period of 3 years. (d) Use of Funds.-- (1) In general.--A State shall use amounts provided under a grant awarded under this section to provide assistance to small businesses (or consortia formed in accordance with paragraph (3)) located in the State to enable the small businesses (or consortia) to establish and operate child care programs. Such assistance may include-- (A) technical assistance in the establishment of a child care program; (B) assistance for the startup costs related to a child care program; (C) assistance for the training of child care providers; (D) scholarships for low-income wage earners; (E) the provision of services to care for sick children or to provide care to school-aged children; (F) the entering into of contracts with local resource and referral organizations or local health departments; (G) assistance for care for children with disabilities; (H) payment of expenses for renovation or operation of a child care facility; or (I) assistance for any other activity determined appropriate by the State. (2) Application.--In order for a small business or consortium to be eligible to receive assistance from a State under this section, the small business involved shall prepare and submit to the State an application at such time, in such manner, and containing such information as the State may require. (3) Preference.-- (A) In general.--In providing assistance under this section, a State shall give priority to an applicant that desires to form a consortium to provide child care in a geographic area within the State where such care is not generally available or accessible. (B) Consortium.--For purposes of subparagraph (A), a consortium shall be made up of 2 or more entities that shall include small businesses and that may include large businesses, nonprofit agencies or organizations, local governments, or other appropriate entities. (4) Limitations.--With respect to grant funds received under this section, a State may not provide in excess of $500,000 in assistance from such funds to any single applicant. (e) Matching Requirement.--To be eligible to receive a grant under this section, a State shall provide assurances to the Secretary that, with respect to the costs to be incurred by a covered entity receiving assistance in carrying out activities under this section, the covered entity will make available (directly or through donations from public or private entities) non-Federal contributions to such costs in an amount equal to-- (1) for the first fiscal year in which the covered entity receives such assistance, not less than 50 percent of such costs ($1 for each $1 of assistance provided to the covered entity under the grant); (2) for the second fiscal year in which the covered entity receives such assistance, not less than 66\2/3\ percent of such costs ($2 for each $1 of assistance provided to the covered entity under the grant); and (3) for the third fiscal year in which the covered entity receives such assistance, not less than 75 percent of such costs ($3 for each $1 of assistance provided to the covered entity under the grant). (f) Requirements of Providers.--To be eligible to receive assistance under a grant awarded under this section, a child care provider-- (1) who receives assistance from a State shall comply with all applicable State and local licensing and regulatory requirements and all applicable health and safety standards in effect in the State; and (2) who receives assistance from an Indian tribe or tribal organization shall comply with all applicable regulatory standards. (g) State-Level Activities.--A State may not retain more than 3 percent of the amount described in subsection (c) for State administration and other State-level activities. (h) Administration.-- (1) State responsibility.--A State shall have responsibility for administering a grant awarded for the State under this section and for monitoring covered entities that receive assistance under such grant. (2) Audits.--A State shall require each covered entity receiving assistance under the grant awarded under this section to conduct an annual audit with respect to the activities of the covered entity. Such audits shall be submitted to the State. (3) Misuse of funds.-- (A) Repayment.--If the State determines, through an audit or otherwise, that a covered entity receiving assistance under a grant awarded under this section has misused the assistance, the State shall notify the Secretary of the misuse. The Secretary, upon such a notification, may seek from such a covered entity the repayment of an amount equal to the amount of any such misused assistance plus interest. (B) Appeals process.--The Secretary shall by regulation provide for an appeals process with respect to repayments under this paragraph. (i) Reporting Requirements.-- (1) 2-year study.-- (A) In general.--Not later than 2 years after the date on which the Secretary first awards grants under this section, the Secretary shall conduct a study to determine-- (i) the capacity of covered entities to meet the child care needs of communities within States; (ii) the kinds of consortia that are being formed with respect to child care at the local level to carry out programs funded under this section; and (iii) who is using the programs funded under this section and the income levels of such individuals. (B) Report.--Not later than 28 months after the date on which the Secretary first awards grants under this section, the Secretary shall prepare and submit to the appropriate committees of Congress a report on the results of the study conducted in accordance with subparagraph (A). (2) 4-year study.-- (A) In general.--Not later than 4 years after the date on which the Secretary first awards grants under this section, the Secretary shall conduct a study to determine the number of child care facilities that are funded through covered entities that received assistance through a grant awarded under this section and that remain in operation, and the extent to which such facilities are meeting the child care needs of the individuals served by such facilities. (B) Report.--Not later than 52 months after the date on which the Secretary first awards grants under this section, the Secretary shall prepare and submit to the appropriate committees of Congress a report on the results of the study conducted in accordance with subparagraph (A). (j) Definitions.--In this section: (1) Covered entity.--The term ``covered entity'' means a small business or a consortium formed in accordance with subsection (d)(3). (2) Indian community.--The term ``Indian community'' means a community served by an Indian tribe or tribal organization. (3) Indian tribe; tribal organization.--The terms ``Indian tribe'' and ``tribal organization'' have the meanings given the terms in section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n). (4) Small business.--The term ``small business'' means an employer who employed an average of at least 2 but not more than 50 employees on the business days during the preceding calendar year. (5) 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). (k) Application to Indian Tribes and Tribal Organizations.--In this section: (1) In general.--Except as provided in subsection (f)(1), and in paragraphs (2) and (3), the term ``State'' includes an Indian tribe or tribal organization. (2) Geographic references.--The term ``State'' includes an Indian community in subsections (c) (the second and third place the term appears), (d)(1) (the second place the term appears), (d)(3)(A) (the second place the term appears), and (i)(1)(A)(i). (3) State-level activities.--The term ``State-level activities'' includes activities at the tribal level. (l) Authorization of Appropriations.-- (1) In general.--There is authorized to be appropriated to carry out this section, $50,000,000 for the period of fiscal years 2008 through 2012. (2) Studies and administration.--With respect to the total amount appropriated for such period in accordance with this subsection, not more than $2,500,000 of that amount may be used for expenditures related to conducting studies required under, and the administration of, this section. (m) Termination of Program.--The program established under subsection (a) shall terminate on September 30, 2012.
summary: Small Business Child Care Act - Directs the Secretary of Health and Human Services to establish a program to award grants, on a competitive basis, to assist states in providing funds to encourage the establishment and operation of employer-operated child care programs.