Child Care for Working Parents Act of 1998

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Care for Working Parents Act 
of 1998''.

SEC. 2. EARLY CHILDHOOD EDUCATION SERVICES REFERRAL HOTLINE.

    (a) In General.--The Secretary of Health and Human Services may 
make a grant to a private, nonprofit entity to provide for the 
operation of a national, toll-free telephone hotline to provide 
information and assistance to families seeking quality early childhood 
education services.
    (b) Duration.--A grant under this section may extend over a period 
of not more than 5 years.
    (c) Annual Approval.--The provision of payments under a grant made 
under this section shall be subject to annual approval by the Secretary 
and subject to the availability of appropriations for each fiscal year 
to make the payments.
    (d) Activities.--Funds received by an entity under this section 
shall be used to establish and operate a national, toll-free telephone 
hotline to provide information and assistance to families seeking 
quality early childhood education services. In establishing and 
operating the hotline, a private, nonprofit entity shall--
            (1) contract with a carrier for the use of a toll-free 
        telephone line;
            (2) employ, train, and supervise personnel to answer 
        incoming calls and provide to callers information about and 
        referral to quality early childhood education facilities and 
        local referral agencies;
            (3) assemble and maintain a current database of information 
        relating to the availability of local quality early childhood 
        education services; and
            (4) publicize the hotline to potential users throughout the 
        United States.
    (e) Application.--A grant may not be made under this section unless 
an application for such grant has been approved by the Secretary. To be 
approved by the Secretary under this subsection an application shall--
            (1) contain such agreements, assurances, and information, 
        be in such form and be submitted in such manner as the 
        Secretary shall require by rule;
            (2) include a complete description of the applicant's plan 
        for the operation of a national early childhood education 
        services referral hotline, including descriptions of--
                    (A) training program for hotline personnel;
                    (B) the methodology for ensuring the accuracy of 
                information provided to callers; and
                    (C) a plan for publicizing the availability of the 
                hotline;
            (3) demonstrate that the applicant has nationally 
        recognized expertise in the area of early childhood education, 
        including a demonstration of support from children's advocacy 
        groups; and
            (4) contain such other information as the Secretary may 
        require.
    (f) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section--
                    (A) $1,000,000 for fiscal year 1999;
                    (B) $400,000 for fiscal year 2000;
                    (C) $400,000 for fiscal year 2001;
                    (D) $400,000 for fiscal year 2002;
                    (E) $400,000 for fiscal year 2003; and
                    (F) $400,000 for fiscal year 2004.
            (2) Availability.--Funds authorized to be appropriated 
        under paragraph (1) shall remain available until expended.

SEC. 3. AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 
              1990.

    (a) Authorization of Appropriations for Fiscal Years 1999 Through 
2002.--Section 658B of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858) is amended by inserting ``1998 and 
$8,500,000,000 for each of the fiscal years 1999 through'' after 
``through''.
    (b) Timely Payment of Funds for Child Care Services.--Section 
658E(c) of the Child Care and Development Block Grant Act of 1990 (42 
U.S.C. 9858c(c)) is amended by adding at the end the following:
            ``(6) Timely payment of assistance for child care 
        services.--The State plan shall provide an assurance, and a 
        detailed description of the methods that the State will use to 
        ensure, that amounts provided under this subchapter for child 
        care services will be paid to participating child care 
        providers timely, as determined by the Secretary.''.
    (c) Child Care Quality Improvement.--Section 658G of the Child Care 
and Development Block Grant Act of 1990 (42 U.S.C. 9858e) is amended to 
read as follows:

``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

    ``A State that receives financial assistance under this subchapter 
shall use not less than 4 percent of such assistance for one or more of 
the following:
            ``(1) Resource and referral programs.--Operating directly 
        or providing financial assistance to private nonprofit 
        organizations or public organizations (including units of 
        general purpose local government) for the development, 
        establishment, expansion, operation, and coordination of 
        resource and referral programs specifically related to child 
        care.
            ``(2) Grants or loans to assist in meeting state and local 
        standards.--Making grants or providing loans to child care 
        providers to assist such providers in meeting applicable State 
        and local child care standards.
            ``(3) Monitoring of compliance with licensing and 
        regulatory requirements.--Improving the monitoring of 
        compliance with, and enforcement of, State and local licensing 
        and regulatory requirements (including registration 
        requirements).
            ``(4) Training.--Providing training and technical 
        assistance in areas appropriate to the provision of child care 
        services, such as training in health and safety, nutrition, 
        first aid, the recognition of communicable diseases, child 
        abuse detection and prevention, and the care of children with 
        special needs.
            ``(5) Compensation.--Improving salaries and other 
        compensation paid to full- and part-time staff who provide 
        child care services for which assistance is provided under this 
        subchapter. ''.
    (d) Application of Amendments.--The amendments made by this section 
shall not apply with respect to any fiscal year beginning before the 
date of the enactment of this Act.

SEC. 4. CREDIT FOR EMPLOYER EXPENSES IN PROVIDING CERTAIN DEPENDENT 
              CARE SERVICES.

    (a) General Rule.--Subpart D of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45D. EMPLOYER EXPENSES IN PROVIDING DEPENDENT CARE SERVICES.

    ``(a) General Rule.--For purposes of section 38, the employer day 
care center credit determined under this section for the taxable year 
is the amount determined under subsection (b) with respect to each 
qualified day care center of the taxpayer.
    ``(b) Credit Per Facility.--For purposes of this section--
            ``(1) In general.--The amount determined under this 
        subsection for any taxable year with respect to any qualified 
        day care facility of the taxpayer is 50 percent of the excess 
        (if any) of--
                    ``(A) the expenses paid or incurred by the taxpayer 
                during the taxable year in providing dependent care 
                services at such facility for employees, over
                    ``(B) the aggregate amount received or accrued 
                during the taxable year by the employer for such 
                services.
            ``(2) Depreciation allowances.--For purposes of paragraph 
        (1), depreciation allowances under section 167 shall be treated 
        as expenses.
    ``(c) Qualified Day Care Center.--For purposes of this section, the 
term `qualified day care center' means any day care center--
            ``(1) which is operated by the taxpayer exclusively for 
        purposes of providing dependent care services to employees,
            ``(2) which is located on the business premises of the 
        taxpayer or on a site within a reasonable distance of such 
        premises,
            ``(3) which complies with all applicable laws and 
        regulations of a State or unit of local government, and
            ``(4) the operation of which is part of a dependent care 
        assistance program (as defined in section 129(d)).''
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (11), by striking the period at the end of paragraph (12) and 
inserting ``, plus'', and by adding at the end thereof the following 
new paragraph:
            ``(13) the employer day care center credit determined under 
        section 45D(a).''
    (c) Denial of Double Benefit.--Section 280C of such Code is amended 
by adding at the end thereof the following new subsection:
    ``(d) Credit for Employer Day Care Center Expenses.--No deduction 
shall be allowed for that portion of the expenses referred to in 
section 45D(b)(1)(A) otherwise allowable as a deduction for the taxable 
year which is equal to the amount of the credit determined for such 
taxable year under section 45D(a).''
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 45D. Employer expenses in 
                                        providing dependent care 
                                        services.''
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 5. EXTENDED TIME FOR LEARNING AND LONGER SCHOOL YEAR.

    Section 10993(h)(1) of the Elementary and Secondary Education Act 
of 1965 is amended by striking ``appropriated'' and all that follows 
through the period and inserting ``$150,000,000'' for fiscal year 1999 
and such sums as may be necessary for each of the fiscal years 2000, 
2001, and 2002.''.

Summary: Child Care for Working Parents Act of 1998 - Authorizes the Secretary of Health and Human Services to make a grant, for up to five years subject to annual approval, to a private, nonprofit entity for operation of a national, toll-free telephone hotline to provide information and assistance to families seeking quality early childhood education services. Authorizes appropriations. Amends the Child Care and Development Block Grant Act of 1990 (CCDBGA) to extend the authorization of appropriations through FY 2002. Requires State plans to ensure timely payments to participating child care providers for child care services under CCDBGA. Requires States to use at least four percent of CCDBGA assistance for one or more of the following: (1) resource and referral programs. (2) grants or loans to assist in meeting State and local standards, (3) monitoring of compliance with licensing and regulatory requirements, (4) training. And (5) compensation. Amends the Internal Revenue Code to establish a tax credit for employer expenses in providing certain dependent care services. Makes such employer day care center credit part of the general business credit. Disallows a specified double benefit with respect to such credit. Amends the Elementary and Secondary Education Act of 1965 to extend through FY 2002 the authorization of appropriations for a program of assistance for an extended time for learning and a longer school year.