text: 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.
target: 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.
feat_title: A bill to establish a small business child care grant program, and for other purposes.