I

106TH CONGRESS

1ST SESSION H. R. 1139

To make child care more affordable for working families and for stay-athome parents with children under the age of 1, to double the number

of children receiving child care assistance, to provide for after-school

care, and to improve child care safety and quality and enhance early

childhood development.

IN THE HOUSE OF REPRESENTATIVES

MARCH 16, 1999

Mrs. TAUSCHER (for herself, Mr. GEPHARDT, Mr. BONIOR, Mr. FROST, Mr.

MENENDEZ, Mr. CARDIN, Mr. CLAY, Ms. DELAURO, Ms. LOFGREN, Mrs.

MALONEY of New York, Mr. RANGEL, Mr. WEYGAND, Ms. WOOLSEY, Mr.

ACKERMAN, Mr. ALLEN, Mr. ANDREWS, Mr. BALDACCI, Mr. BARRETT of

Wisconsin, Ms. BERKLEY, Mr. BERMAN, Mr. BORSKI, Mr. BOSWELL, Mr.

BOUCHER, Mr. BRADY of Pennsylvania, Ms. BROWN of Florida, Mr.

BROWN of California, Mr. BROWN of Ohio, Mrs. CAPPS, Ms. CARSON,

Mrs. CHRISTENSEN, Mrs. CLAYTON, Mr. CLEMENT, Mr. CONYERS, Mr.

COSTELLO, Mr. CROWLEY, Mr. CUMMINGS, Mr. DEFAZIO, Mr.

DELAHUNT, Mr. DICKS, Mr. DINGELL, Mr. DIXON, Mr. ENGEL, Ms.

ESHOO, Mr. FARR of California, Mr. FILNER, Mr. GEJDENSON, Mr.

GREEN of Texas, Mr. HASTINGS of Florida, Mr. HINCHEY, Mr. HOYER,

Ms. JACKSON-LEE of Texas, Mr. JEFFERSON, Ms. EDDIE BERNICE

JOHNSON of Texas, Mr. KANJORSKI, Ms. KAPTUR, Mr. KENNEDY of

Rhode Island, Mr. KILDEE, Ms. KILPATRICK, Mr. LAFALCE, Mr.

LAMPSON, Mr. LANTOS, Mr. LEWIS of Georgia, Mr. MATSUI, Mr.

MCGOVERN, Mr. MCNULTY, Ms. MILLENDER-MCDONALD, Mr. GEORGE

MILLER of California, Mr. MORAN of Virginia, Mr. NEAL of Massachusetts, Ms. NORTON, Mr. OBERSTAR, Mr. PALLONE, Mr. PAYNE, Ms.

PELOSI, Mr. PRICE of North Carolina, Mr. RAHALL, Mr. RODRIGUEZ,

Mr. ROMERO-BARCELO ́, Ms. ROYBAL-ALLARD, Mr. RUSH, Ms. SANCHEZ,

Mr. SANDLIN, Mr. SCOTT, Mr. SERRANO, Mr. SHERMAN, Mr. SHOWS,

Ms. SLAUGHTER, Ms. STABENOW, Mrs. THURMAN, Mr. VENTO, Mr.

WAXMAN, Mr. WEXLER, and Mr. WYNN) introduced the following bill;

which was referred to the Committee on Ways and Means, and in addition to the Committees on Education and the Workforce, and Banking

and Financial Services, for a period to be subsequently determined by the

Speaker, in each case for consideration of such provisions as fall within

the jurisdiction of the committee concerned
2

•HR 1139 IH

A BILL

To make child care more affordable for working families

and for stay-at-home parents with children under the

age of 1, to double the number of children receiving

child care assistance, to provide for after-school care,

and to improve child care safety and quality and enhance

early childhood development.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Affordable Child Care,

5 Education, Security, and Safety Act’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—FUNDING FOR CHILD CARE

Sec. 101. Child care subsidy funding.

TITLE II—DEPENDENT CARE TAX CREDIT REFORM

Sec. 201. Increase in dependent care tax credit; equivalent benefit where one

parent stays at home to provide child care for child under age

1.

Sec. 202. Allowance of credit for employer expenses for child care assistance.

Sec. 203. Dependent care credit allowed against the alternative minimum tax.

TITLE III—GRANTS TO BUSINESS CONSORTIA

Subtitle A—Grant Program

Sec. 301. Authority to make grants.

Sec. 302. Application.

Sec. 303. Use of amounts.

Sec. 304. Requirement of matching funds.

Subtitle B—General Provisions

Sec. 351. Definitions.

Sec. 352. Authorization of appropriations.
3

•HR 1139 IH

TITLE IV—AFTER SCHOOL PROGRAM

Subtitle A—21st Century Community Learning Centers

Sec. 401. Program authorization.

Sec. 402. Applications.

Sec. 403. Uses of funds.

Sec. 404. Definition.

Sec. 405. Continuation awards under current statute.

Sec. 406. Effective date.

Subtitle B—After School Snacks

Sec. 411. Child and adult care food program; meal supplements for children in

afterschool care.

TITLE V—MODEL STATES EARLY LEARNING PROGRAM

Sec. 501. Model States early learning program.

TITLE VI—CHILD CARE WORKER INCENTIVES

Sec. 601. Short title.

Sec. 602. National child care provider scholarship program.

Sec. 603. Application of amendments.

TITLE VII—RESEARCH AND DEMONSTRATION PROGRAM

Sec. 701. Research and demonstrations.

TITLE VIII—MISCELLANEOUS

Subtitle A—Child and Adult Food Program

Sec. 801. Revision of reimbursement rates for family or group day care homes

under the child and adult care food program under the National School Lunch Act.

Subtitle B—Mortgage Insurance for Child Care and Development Facilities

Sec. 851. Short title.

Sec. 852. Congressional findings.

Sec. 853. Insurance for mortgages on new and rehabilitated child care and development facilities.

Sec. 854. Insurance for mortgages for acquisition or refinancing debt of existing child care and development facilities.

Sec. 855. Children’s development commission.

Sec. 856. Study of availability of secondary markets for mortgages on child

care facilities.

Subtitle C—Sense of the Congress

Sec. 871. Sense of the Congress.
4

•HR 1139 IH

1 TITLE I—FUNDING FOR CHILD

2 CARE

3 SEC. 101. CHILD CARE SUBSIDY FUNDING.

4 (a) APPROPRIATION; ALLOCATION.—Section 418 of

5 the Social Security Act (42 U.S.C. 618) is amended—

6 (1) by redesignating subsections (b), (c), and

7 (d) as subsections (c), (d), and (e), respectively; and

8 (2) by inserting after subsection (a) the fol9 lowing:

10 ‘‘(b) CHILD CARE SUBSIDY FUNDING.—

11 ‘‘(1) APPROPRIATION.—Out of any funds in the

12 Treasury not otherwise appropriated, there are ap13 propriated for grants and other activities under this

14 subsection—

15 ‘‘(A) $1,155,000,000 for fiscal year 2000;

16 ‘‘(B) $1,280,000,000 for fiscal year 2001;

17 ‘‘(C) $1,400,000,000 for fiscal year 2002;

18 ‘‘(D) $1,600,000,000 for fiscal year 2003;

19 and

20 ‘‘(E) $2,065,000,000 for fiscal year 2004.

21 ‘‘(2) ALLOTMENT AND RESERVATION OF

22 FUNDS.—

23 ‘‘(A) ALLOTMENTS FOR INDIAN TRIBES.—

24 From the amount appropriated pursuant to

25 paragraph (1) for a fiscal year, the Secretary
5

•HR 1139 IH

1 shall allot to each Indian tribe that has received

2 a share for the fiscal year under section

3 658O(c) of the CCDBG Act, an amount that

4 bears the same ratio to such sum as the Sec5 retary may determine that is not less than 1

6 and not more than 2 percent of the amount so

7 appropriated as the share so received by the

8 tribe bears to the total of the shares so received

9 by all Indian tribes.

10 ‘‘(B) RESERVATION FOR SECRETARY’S AC11 TIVITIES.—From the amount appropriated pur12 suant to paragraph (1) for a fiscal year, the

13 Secretary shall reserve $1,000,000 for expendi14 ture by the Secretary for quality assurance and

15 quality improvement activities relating to pro16 grams under the CCDBG Act.

17 ‘‘(C) ALLOTMENTS FOR STATES AND TER18 RITORIES.—From the amount appropriated

19 pursuant to paragraph (1) for a fiscal year that

20 remains after applying subparagraphs (A) and

21 (B) of this paragraph for the fiscal year, the

22 Secretary shall allot to each State and territory

23 an amount that bears the same ratio to such re24 maining amount as the number of children re25 siding in the State or territory in the second
6

•HR 1139 IH

1 preceding fiscal year bears to the number of

2 children residing in the United States in the

3 second preceding fiscal year.

4 ‘‘(3) MATCHING PAYMENTS TO STATES AND

5 TERRITORIES.—

6 ‘‘(A) IN GENERAL.—From the amount al7 lotted to a State or territory for a fiscal year

8 under paragraph (2), the Secretary shall pay to

9 the State or territory for the fiscal year an

10 amount equal to the lesser of the amount so al11 lotted or 80 percent of the amount of eligible

12 child care expenditures of the State or territory

13 during the fiscal year.

14 ‘‘(B) ELIGIBLE CHILD CARE EXPENDI15 TURES DEFINED.—In subparagraph (A), the

16 term ‘eligible child care expenditures’ means,

17 with respect to a State or territory,

18 expenditures—

19 ‘‘(i) made under the approved plan of

20 the State or territory under the CCDBG

21 Act;

22 ‘‘(ii) for which Federal matching pay23 ments or reimbursements have not other24 wise been made; and
7

•HR 1139 IH

1 ‘‘(iii) in the case of a State, to the ex2 tent the amount of such expenditures ex3 ceeds the amount necessary to secure pay4 ment of the full amount of the State’s al5 lotment (if any) under subsection (a)(2)

6 (determined without regard to subsection

7 (a)(2)(D)).

8 ‘‘(C) REDISTRIBUTION.—The Secretary

9 shall, to the extent necessary, determine the

10 need for redistribution of, and redistribute,

11 amounts allotted under this subsection to

12 States, in accordance with the procedures and

13 formula set forth in subsection (a)(2)(D).

14 ‘‘(4) PAYMENTS TO INDIAN TRIBES.—From the

15 amount allotted to an Indian tribe for a fiscal year

16 under paragraph (2), the Secretary shall pay to the

17 tribe for the fiscal year an amount equal to the less18 er of the amount so allotted or the total amount ex19 pended by the tribe pursuant to the CCDBG Act for

20 which Federal payments have not otherwise been

21 made.

22 ‘‘(5) TARGETING OF FUNDS FOR WORKING

23 NON-WELFARE FAMILIES.—Notwithstanding sub24 section (e) of this section, a State or territory to

25 which amounts are provided under this subsection
8

•HR 1139 IH

1 shall use not less than 70 percent of the amounts for

2 child care assistance to working families who are not

3 recipients of assistance under the State or territory

4 program funded under section 403(a)(1).’’.

5 (b) INCLUSION OF TERRITORIES IN DEFINITIONS.—

6 Section 418(e) of such Act, as so redesignated by sub7 section (a)(1) of this section, is amended to read as fol8 lows:

9 ‘‘(f) DEFINITIONS.—As used in this section:

10 ‘‘(1) CCDBG ACT.—The term ‘CCDBG Act’

11 means the Child Care and Development Block Grant

12 Act of 1990 (42 U.S.C. 9801 et seq.).

13 ‘‘(2) STATE.—The term ‘State’ means each of

14 the 50 States, the District of Columbia, and (except

15 for purposes of subsection (a)) the Commonwealth of

16 Puerto Rico.

17 ‘‘(3) TERRITORY.—The term ‘territory’ means

18 the United States Virgin Islands, Guam, American

19 Samoa, and the Commonwealth of the Northern

20 Mariana Islands.’’.

21 (c) CONFORMING AMENDMENTS.—

22 (1) Section 418(a)(3) of such Act (42 U.S.C.

23 618(a)(3)) is amended by striking ‘‘this section’’ and

24 inserting ‘‘this subsection’’.
9

•HR 1139 IH

1 (2) Section 418(c) of such Act (as so redesig2 nated by subsection (a)(1) of this section) is amend3 ed in paragraphs (1) and (2) by striking ‘‘under this

4 section’’ each place it appears and inserting ‘‘under

5 subsection (a)’’.

6 (3) Section 1108(a)(2) of such Act (42 U.S.C.

7 1308(a)(2)) is amended by striking ‘‘or 413(f)’’ and

8 inserting ‘‘413(f), or 418(b)(3)(A)’’.

9 TITLE II—DEPENDENT CARE TAX

10 CREDIT REFORM

11 SEC. 201. EXPANSION OF DEPENDENT CARE TAX CREDIT.

12 (a) IN GENERAL.—Paragraph (2) of section 21(a) of

13 the Internal Revenue Code of 1986 (relating to expenses

14 for household and dependent care services necessary for

15 gainful employment) is amended to read as follows:

16 ‘‘(2) APPLICABLE PERCENTAGE DEFINED.—For

17 purposes of paragraph (1), the term ‘applicable per18 centage’ means 50 percent reduced (but not below

19 20 percent) by 1 percentage point for each $1,000

20 (or fraction thereof) by which the taxpayer’s ad21 justed gross income for the taxable year exceeds

22 $30,000.’’

23 (b) MINIMUM CREDIT ALLOWED FOR STAY-AT-HOME

24 PARENTS.—Section 21(e) of such Code (relating to special

25 rules) is amended by adding at the end the following:
10

•HR 1139 IH

1 ‘‘(11) MINIMUM CREDIT ALLOWED FOR STAY2 AT-HOME PARENTS.—Notwithstanding subsection

3 (d), in the case of any taxpayer with one or more

4 qualifying individuals described in subsection

5 (b)(1)(A) under the age of 1 at any time during the

6 taxable year, such taxpayer shall be deemed to have

7 employment-related expenses with respect to such

8 qualifying individuals in an amount equal to the

9 greater of—

10 ‘‘(A) the amount of employment-related ex11 penses incurred for such qualifying individuals

12 for the taxable year (determined under this sec13 tion without regard to this paragraph), or

14 ‘‘(B) $125 for each month in such taxable

15 year during which such qualifying individual is

16 under the age of 1.’’.

17 (c) INFLATION ADJUSTMENT OF DOLLAR

18 AMOUNTS.—

19 (1) Section 21 of such Code is amended by re20 designating subsection (f) as subsection (g) and by

21 inserting after subsection (e) the following new sub22 section:

23 ‘‘(f) INFLATION ADJUSTMENT.—In the case of any

24 taxable year beginning in a calendar year after 2000, the

25 $30,000 amount contained in subsection (a), the $2,400
11

•HR 1139 IH

1 amount in subsection (c), and the $125 amount in sub2 section (e)(11) shall be increased by an amount equal to—

3 ‘‘(1) such dollar amount, multiplied by

4 ‘‘(2) the cost-of-living adjustment determined

5 under section 1(f)(3) for such calendar year by sub6 stituting ‘calendar year 1999’ for ‘calendar year

7 1992’ in subparagraph (B) thereof.

8 If the increase determined under the preceding sentence

9 is not a multiple of $50 ($5 in the case of the amount

10 in subsection (e)(11)), such amount shall be rounded to

11 the next lowest multiple thereof.’’

12 (2) Paragraph (2) of section 21(c) of such Code

13 is amended by striking ‘‘$4,800’’ and inserting

14 ‘‘twice the dollar amount applicable under paragraph

15 (1)’’.

16 (3) Paragraph (2) of section 21(d) of such Code

17 is amended by striking ‘‘less than—’’ and all that

18 follows through the end of the first sentence and inserting ‘‘less than 1 19 ⁄12 of the amount which applies

20 under subsection (c) to the taxpayer for the taxable

21 year.’’

22 (d) CREDIT ALLOWED BASED ON RESIDENCY IN

23 CERTAIN CASES.—Subsection (e) of section 21 of such

24 Code is amended by adding at the end the following new

25 paragraph:
12

•HR 1139 IH

1 ‘‘(12) CREDIT ALLOWED BASED ON RESIDENCY

2 IN CERTAIN CASES.—In the case of a taxpayer—

3 ‘‘(A) who does not satisfy the household

4 maintenance test of subsection (a) for any pe5 riod, but

6 ‘‘(B) whose principal place of abode for

7 such period is also the principal place of abode

8 of any qualifying individual,

9 then such taxpayer shall be treated as satis10 fying such test for such period but the amount

11 of credit allowable under this section with re12 spect to such individual shall be determined by

allowing only 1 13 ⁄12 of the limitation under sub14 section (c) for each full month that the require15 ment of subparagraph (B) is met.’’

16 (e) EFFECTIVE DATE.—The amendments made by

17 this section shall apply to taxable years beginning after

18 December 31, 1999.

19 SEC. 202. ALLOWANCE OF CREDIT FOR EMPLOYER EX20 PENSES FOR CHILD CARE ASSISTANCE.

21 (a) IN GENERAL.—Subpart D of part IV of sub22 chapter A of chapter 1 of the Internal Revenue Code of

23 1986 (relating to business related credits) is amended by

24 adding at the end the following new section:
13

•HR 1139 IH

1 ‘‘SEC. 45D. EMPLOYER-PROVIDED CHILD CARE CREDIT.

2 ‘‘(a) IN GENERAL.—For purposes of section 38, the

3 employer-provided child care credit determined under this

4 section for the taxable year is an amount equal to 25 per5 cent of the qualified child care expenditures of the tax6 payer for such taxable year.

7 ‘‘(b) DOLLAR LIMITATION.—The credit allowable

8 under subsection (a) for any taxable year shall not exceed

9 $150,000.

10 ‘‘(c) DEFINITIONS.—For purposes of this section—

11 ‘‘(1) QUALIFIED CHILD CARE EXPENDITURE.—

12 The term ‘qualified child care expenditure’ means

13 any amount paid or incurred—

14 ‘‘(A) to acquire, construct, rehabilitate, or

15 expand property—

16 ‘‘(i) which is to be used as part of a

17 qualified child care facility of the taxpayer,

18 ‘‘(ii) with respect to which a deduction

19 for depreciation (or amortization in lieu of

20 depreciation) is allowable, and

21 ‘‘(iii) which does not constitute part of

22 the principal residence (within the meaning

23 of section 121) of the taxpayer or any em24 ployee of the taxpayer,

25 ‘‘(B) for the operating costs of a qualified

26 child care facility of the taxpayer, including
14

•HR 1139 IH

1 costs related to the training of employees, to

2 scholarship programs, and to the providing of

3 increased compensation to employees with high4 er levels of child care training,

5 ‘‘(C) under a contract with a qualified

6 child care facility to provide child care services

7 to employees of the taxpayer,

8 ‘‘(D) under a contract to provide child care

9 resource and referral services to employees of

10 the taxpayer, or

11 ‘‘(E) for the costs of seeking accreditation

12 from a child care credentialing or accreditation

13 entity.

14 ‘‘(2) QUALIFIED CHILD CARE FACILITY.—

15 ‘‘(A) IN GENERAL.—The term ‘qualified

16 child care facility’ means a facility—

17 ‘‘(i) the principal use of which is to

18 provide child care assistance, and

19 ‘‘(ii) which meets the requirements of

20 all applicable laws and regulations of the

21 State or local government in which it is lo22 cated, including, but not limited to, the li23 censing of the facility as a child care

24 facility.
15

•HR 1139 IH

1 Clause (i) shall not apply to a facility which is

2 the principal residence (within the meaning of

3 section 121) of the operator of the facility.

4 ‘‘(B) SPECIAL RULES WITH RESPECT TO A

5 TAXPAYER.—A facility shall not be treated as a

6 qualified child care facility with respect to a

7 taxpayer unless—

8 ‘‘(i) enrollment in the facility is open

9 to all employees of the taxpayer during the

10 taxable year,

11 ‘‘(ii) services available at such facility

12 do not discriminate in favor of employees

13 of the taxpayer who are highly com14 pensated employees (within the meaning of

15 section 414(q)), and

16 ‘‘(iii) in the case of a facility which is

17 owned or operated by the taxpayer, at least

18 30 percent of the enrollees of such facility

19 are dependents of employees of the tax20 payer.

21 ‘‘(d) RECAPTURE OF ACQUISITION AND CONSTRUC22 TION CREDIT.—

23 ‘‘(1) IN GENERAL.—If, as of the close of any

24 taxable year, there is a recapture event with respect

25 to any qualified child care facility of the taxpayer,
16

•HR 1139 IH

1 then the tax of the taxpayer under this chapter for

2 such taxable year shall be increased by an amount

3 equal to the product of—

4 ‘‘(A) the applicable recapture percentage,

5 and

6 ‘‘(B) the aggregate decrease in the credits

7 allowed under section 38 for all prior taxable

8 years which would have resulted if the qualified

9 child care expenditures of the taxpayer de10 scribed in subsection (c)(1)(A) with respect to

11 such facility had been zero.

12 ‘‘(2) APPLICABLE RECAPTURE PERCENTAGE.—

13 ‘‘(A) IN GENERAL.—For purposes of this

14 subsection, the applicable recapture percentage

15 shall be determined from the following table:

The applicable

recapture

‘‘If the recapture event occurs in: percentage is:

Years 1–3 .................................................................. 100

Year 4 ........................................................................ 85

Year 5 ........................................................................ 70

Year 6 ........................................................................ 55

Year 7 ........................................................................ 40

Year 8 ........................................................................ 25

Years 9 and 10 .......................................................... 10

Years 11 and thereafter ............................................ 0.

16 ‘‘(B) YEARS.—For purposes of subpara17 graph (A), year 1 shall begin on the first day

18 of the taxable year in which the qualified child

19 care facility is placed in service by the taxpayer.
17

•HR 1139 IH

1 ‘‘(3) RECAPTURE EVENT DEFINED.—For pur2 poses of this subsection, the term ‘recapture event’

3 means—

4 ‘‘(A) CESSATION OF OPERATION.—The

5 cessation of the operation of the facility as a

6 qualified child care facility.

7 ‘‘(B) CHANGE IN OWNERSHIP.—

8 ‘‘(i) IN GENERAL.—Except as pro9 vided in clause (ii), the disposition of a

10 taxpayer’s interest in a qualified child care

11 facility with respect to which the credit de12 scribed in subsection (a) was allowable.

13 ‘‘(ii) AGREEMENT TO ASSUME RECAP14 TURE LIABILITY.—Clause (i) shall not

15 apply if the person acquiring such interest

16 in the facility agrees in writing to assume

17 the recapture liability of the person dis18 posing of such interest in effect imme19 diately before such disposition. In the

20 event of such an assumption, the person

21 acquiring the interest in the facility shall

22 be treated as the taxpayer for purposes of

23 assessing any recapture liability (computed

24 as if there had been no change in owner25 ship).
18

•HR 1139 IH

1 ‘‘(4) SPECIAL RULES.—

2 ‘‘(A) TAX BENEFIT RULE.—The tax for

3 the taxable year shall be increased under para4 graph (1) only with respect to credits allowed

5 by reason of this section which were used to re6 duce tax liability. In the case of credits not so

7 used to reduce tax liability, the carryforwards

8 and carrybacks under section 39 shall be appro9 priately adjusted.

10 ‘‘(B) NO CREDITS AGAINST TAX.—Any in11 crease in tax under this subsection shall not be

12 treated as a tax imposed by this chapter for

13 purposes of determining the amount of any

14 credit under subpart A, B, or D of this part.

15 ‘‘(C) NO RECAPTURE BY REASON OF CAS16 UALTY LOSS.—The increase in tax under this

17 subsection shall not apply to a cessation of op18 eration of the facility as a qualified child care

19 facility by reason of a casualty loss to the ex20 tent such loss is restored by reconstruction or

21 replacement within a reasonable period estab22 lished by the Secretary.

23 ‘‘(e) SPECIAL RULES.—For purposes of this

24 section—
19

•HR 1139 IH

1 ‘‘(1) AGGREGATION RULES.—All persons which

2 are treated as a single employer under subsections

3 (a) and (b) of section 52 shall be treated as a single

4 taxpayer.

5 ‘‘(2) PASS-THRU IN THE CASE OF ESTATES AND

6 TRUSTS.—Under regulations prescribed by the Sec7 retary, rules similar to the rules of subsection (d) of

8 section 52 shall apply.

9 ‘‘(3) PARTNERSHIPS.—In the case of partner10 ships, the credit under this section shall be deter11 mined at the partnership level and allocated among

12 the partners under regulations prescribed by the

13 Secretary; except that—

14 ‘‘(A) subsection (b) shall be applied at the

15 partner level, and

16 ‘‘(B) the employees of the partnership and

17 of each partner shall be treated as employees of

18 the taxpayer for purposes of applying sub19 section (c)(2)(B)(iii).

20 ‘‘(f) NO DOUBLE BENEFIT.—

21 ‘‘(1) REDUCTION IN BASIS.—For purposes of

22 this subtitle—

23 ‘‘(A) IN GENERAL.—If a credit is deter24 mined under this section with respect to any

25 property by reason of expenditures described in
20

•HR 1139 IH

1 subsection (c)(1)(A), the basis of such property

2 shall be reduced by the amount of the credit so

3 determined.

4 ‘‘(B) CERTAIN DISPOSITIONS.—If during

5 any taxable year there is a recapture amount

6 determined with respect to any property the

7 basis of which was reduced under subparagraph

8 (A), the basis of such property (immediately be9 fore the event resulting in such recapture) shall

10 be increased by an amount equal to such recap11 ture amount. For purposes of the preceding

12 sentence, the term ‘recapture amount’ means

13 any increase in tax (or adjustment in

14 carrybacks or carryovers) determined under

15 subsection (d).

16 ‘‘(2) OTHER DEDUCTIONS AND CREDITS.—No

17 deduction or credit shall be allowed under any other

18 provision of this chapter with respect to the amount

19 of the credit determined under this section.’’

20 (b) CONFORMING AMENDMENTS.—

21 (1) Section 38(b) of such Code is amended—

22 (A) by striking ‘‘plus’’ at the end of para23 graph (11),
21

•HR 1139 IH

1 (B) by striking the period at the end of

2 paragraph (12), and inserting a comma and

3 ‘‘plus’’, and

4 (C) by adding at the end the following new

5 paragraph:

6 ‘‘(13) the employer-provided child care credit

7 determined under section 45D.’’.

8 (2) Subsection (d) of section 39 of such Code

9 (relating to carryback and carryforward of unused

10 credits) is amended by adding at the end the fol11 lowing new paragraph:

12 ‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT

13 BEFORE JANUARY 1, 2000.—No portion of the un14 used business credit for any taxable year which is

15 attributable to the credit determined under section

16 45D may be carried back to a taxable year begin17 ning before January 1, 2000.’’.

18 (3) The table of sections for subpart D of part

19 IV of subchapter A of chapter 1 of such Code is

20 amended by adding at the end the following new

21 item:

‘‘Sec. 45D. Employer-provided child care credit.’’.

22 (c) EFFECTIVE DATE.—The amendments made by

23 this section shall apply to taxable years beginning after

24 December 31, 1999.
22

•HR 1139 IH

1 SEC. 203. DEPENDENT CARE CREDIT ALLOWED AGAINST

2 THE ALTERNATIVE MINIMUM TAX.

3 (a) IN GENERAL.—Subsection (a) of section 26 of the

4 Internal Revenue Code of 1986 is amended by inserting

5 ‘‘(other than the credit allowed by section 21)’’ after

6 ‘‘credits allowed by this subpart’’.

7 (b) CONFORMING AMENDMENT.—Section 21 of such

8 Code, as amended by section 201, is amended by redesig9 nating subsections (f) and (g) as subsections (g) and (h),

10 respectively, and by inserting after subsection (e) the fol11 lowing new subsection:

12 ‘‘(f) LIMITATION BASED ON AMOUNT OF TAX.—The

13 aggregate credit allowed by this section for the taxable

14 year shall not exceed the sum of—

15 ‘‘(1) the taxpayer’s regular tax liability for the

16 taxable year reduced by the sum of the credits al17 lowed by this subpart other than this section, plus

18 ‘‘(2) the tax imposed by section 55 for such

19 taxable year.’’

20 (c) EFFECTIVE DATE.—The amendments made by

21 this section shall apply to taxable years beginning after

22 December 31, 1999.
23

•HR 1139 IH

1 TITLE III—GRANTS TO BUSINESS

2 CONSORTIA

3 Subtitle A—Grant Program

4 SEC. 301. AUTHORITY TO MAKE GRANTS.

5 (a) IN GENERAL.—The Secretary shall make grants

6 to States to be used to provide grants to eligible entities

7 described in subsection (b) to assist such entities to im8 prove access to affordable, local, quality child care serv9 ices.

10 (b) ELIGIBLE ENTITIES DESCRIBED.—

11 (1) IN GENERAL.—An eligible entity described

12 in this subsection is a consortium that—

13 (A) shall consist of representatives from

14 not fewer than 5 businesses (or a nonprofit or15 ganization that represents not fewer than 5

16 businesses); and

17 (B) has not received a grant under this

18 title.

19 (2) ADDITIONAL REQUIREMENT.—To the max20 imum extent practicable, each business or organiza21 tion that forms an eligible entity under paragraph

22 (1) shall be located in the same geographical region

23 of the United States.

24 (c) PRIORITY FOR SMALL BUSINESSES.—In pro25 viding grants under subsection (a), a State shall give pri-
24

•HR 1139 IH

1 ority to eligible entities that consist of a majority of rep2 resentatives from small businesses.

3 (d) MAXIMUM AMOUNT OF GRANT.—The amount of

4 a grant provided to an eligible entity under subsection (a)

5 may not exceed $50,000 for any fiscal year.

6 SEC. 302. APPLICATION.

7 The Secretary may not provide a grant under section

8 301 to an eligible entity unless such entity submits to the

9 Secretary an application that contains—

10 (1) a proposal to use such grant to provide

11 quality child care services; and

12 (2) such information as the Secretary may rea13 sonably require by rule.

14 SEC. 303. USE OF AMOUNTS.

15 (a) IN GENERAL.—The Secretary may not provide a

16 grant under section 301 to an eligible entity unless such

17 entity agrees to use such grant to initiate a quality, afford18 able, local child care program that carries out the proposal

19 included in the application submitted under section 302

20 by such entity.

21 (b) CONDUCT OF PROGRAM.—In carrying out the

22 program described in subsection (a), the eligible entity

23 may—

24 (1) establish a board of directors to oversee the

25 program; and
25

•HR 1139 IH

1 (2) provide child care services on a sliding fee

2 scale that provides for cost sharing by the families

3 of the children who receive such services.

4 (c) ADMINISTRATIVE COSTS.—The eligible entity

5 may use not more than 15 percent of the amount of a

6 grant to pay for administrative costs associated with the

7 program described in subsection (a).

8 SEC. 304. REQUIREMENT OF MATCHING FUNDS.

9 The Secretary may not provide a grant under section

10 301 to an eligible entity unless such entity agrees that—

11 (1) it will make available non-Federal contribu12 tions toward the costs of carrying out a program

13 under section 303 in an amount that is not less than

14 $1 for each $1 of Federal funds provided under a

15 grant under section 301; and

16 (2) of such non-Federal contributions, not less

17 than $1 of each such $2 shall be from businesses

18 participating in the eligible entity.

19 Subtitle B—General Provisions

20 SEC. 351. DEFINITIONS.

21 For purposes of this title:

22 (1) SECRETARY.—The term ‘‘Secretary’’ means

23 the Secretary of Health and Human Services.

24 (2) STATE.—The term ‘‘State’’ has the mean25 ing given such term in section 658P of the of the
26

•HR 1139 IH

1 Child Care and Development Block Grant Act of

2 1990 (42 U.S.C. 9858n).

3 SEC. 352. AUTHORIZATION OF APPROPRIATIONS.

4 There is authorized to be appropriated $75,000,000

5 for each of the fiscal years 2000, 2001, 2002, 2003, and

6 2004 to carry out this title.

7 TITLE IV—AFTER SCHOOL

8 PROGRAM

9 Subtitle A—21st Century

10 Community Learning Centers

11 SEC. 401. PROGRAM AUTHORIZATION.

12 Section 10903 of the 21st Century Community

13 Learning Centers Act (referred to in this subtitle as ‘‘the

14 Act’’) is amended—

15 (1) in subsection (a)—

16 (A) by inserting ‘‘(1) GRANTS TO LEAS.’’

17 after ‘‘SECRETARY.—’’;

18 (B) in paragraph (1), as so designated—

19 (i) by striking ‘‘rural and inner-city’’

20 and all that follows through ‘‘or to’’ and

21 inserting the following: ‘‘local educational

22 agencies, on behalf of public elementary or

23 secondary schools, including middle

24 schools, that serve communities with a sub25 stantial need for expanded learning oppor-
27

•HR 1139 IH

1 tunities, to enable them to establish or’’;

2 and

3 (ii) by striking ‘‘a rural or inner-city

4 community’’ and inserting ‘‘those commu5 nities’’; and

6 (C) by adding after paragraph (1), as re7 designated, a new paragraph (2) to read as fol8 lows:

9 ‘‘(2) GRANTS TO CBOS.—The Secretary may re10 serve not more than 10 percent of the funds appro11 priated to carry out this part for any fiscal year to

12 make grants to community-based organizations to

13 carry out projects, consistent with the purpose of

14 this part, with the concurrence of the local edu15 cational agencies in their respective communities.’’;

16 (2) in subsection (b)—

17 (A) by striking ‘‘States, among’’ and in18 serting ‘‘States and among’’; and

19 (B) by striking ‘‘United States,’’ and all

20 that follows through ‘‘a State’’ and inserting

21 ‘‘United States’’; and

22 (3) in subsection (c), by striking ‘‘3’’ and in23 serting ‘‘5’’.

24 SEC. 402. APPLICATIONS.

25 Section 10904(a) of the Act is amended—
28

•HR 1139 IH

1 (1) in the first sentence, by striking ‘‘an ele2 mentary or secondary school or consortium’’ and in3 serting ‘‘a local educational agency, on behalf of one

4 or more elementary or secondary schools,’’;

5 (2) in paragraph (1), by striking ‘‘or consor6 tium’’;

7 (3) in paragraph (2), by striking ‘‘and’’ after

8 the semicolon;

9 (4) in paragraph (3)—

10 (A) in subparagraph (D), by striking ‘‘or

11 consortium’’; and

12 (B) in subparagraph (E)—

13 (i) by striking ‘‘or consortium’’; and

14 (ii) in clause (ii), by striking the pe15 riod at the end and inserting a semicolon;

16 and

17 (5) by adding at the end the following:

18 ‘‘(4) information demonstrating that the appli19 cant will—

‘‘(A) provide not less than 1 20 ⁄2 the annual

21 cost of project activities from sources other

22 than funds under this part, which may be pro23 vided in cash or in kind, fairly evaluated, pro24 vided that not more than 50 percent of the ap25 plicant’s contribution may come from funds
29

•HR 1139 IH

1 provided by the Secretary under other programs

2 that permit the use of those funds for those ac3 tivities, if the applicant determines, in good

4 faith, that it cannot otherwise meet the require5 ment of this subparagraph; and

6 ‘‘(B) in the 4th and 5th years of its

7 project, increase the percentage of the project’s

8 cost that is paid for by funds other than those

9 received under this part; and

10 ‘‘(5) an assurance that the applicant will, in

11 each year of the project, maintain its fiscal effort,

12 from non-Federal sources, from the preceding fiscal

13 year for the services it provides with its grant under

14 this part.’’.

15 SEC. 403. USES OF FUNDS.

16 Section 10905 of the Act is amended by striking

17 ‘‘may be used’’ and all that follows through ‘‘four’’ and

18 inserting the following: ‘‘shall be used to establish or ex19 pand community learning centers that provide activities

20 that offer significant expanded learning opportunities,

21 such as before and after school, for children and youth

22 in the community and that also may include any’’.

23 SEC. 404. DEFINITION.

24 Section 10906(1) of the Act is amended to read as

25 follows:
30

•HR 1139 IH

1 ‘‘(1) provides extended learning services and

2 that may provide services that address other health,

3 social services, cultural, and recreational needs of

4 the community; and;’’.

5 SEC. 405. CONTINUATION AWARDS UNDER CURRENT STAT6 UTE.

7 The Act is further amended—

8 (1) in section 10907, by striking ‘‘appro9 priated’’ and all that follows to the end and insert10 ing the following: ‘‘appropriated $600,000,000 for

11 each of fiscal years 2000 through 2004.’’; and

12 (2) by adding after section 10907 a new section

13 10908 to read as follows:

14 ‘‘SEC. 10908. CONTINUATION AWARDS.

15 ‘‘Notwithstanding any other provision of law, the Sec16 retary may use funds appropriated under this part to

17 make continuation awards for projects that were funded

18 under this part with fiscal year 1998 funds, under the

19 terms and conditions that applied to the original awards

20 for those projects.’’.

21 SEC. 406. EFFECTIVE DATE.

22 This subtitle, and the amendments made by this sub23 title, shall take effect on October 1, 1999.
31

•HR 1139 IH

1 Subtitle B—After School Snacks

2 SEC. 411. CHILD AND ADULT CARE FOOD PROGRAM; MEAL

3 SUPPLEMENTS FOR CHILDREN IN AFTER4 SCHOOL CARE.

5 (a) PARTICIPATION BY CERTAIN ADDITIONAL INSTI6 TUTIONS UNDER THE CHILD AND ADULT CARE FOOD

7 PROGRAM.—Section 17 of the National School Lunch Act

8 (42 U.S.C. 1766) is amended by adding at the end the

9 following:

10 ‘‘(q) PARTICIPATION BY CERTAIN ADDITIONAL IN11 STITUTIONS UNDER THE PROGRAM.—

12 ‘‘(1) IN GENERAL.—Subject to the conditions in

13 this subsection, institutions that provide care to

14 school children during after-school hours, weekends,

15 or holidays during the regular school year may par16 ticipate in the program authorized under this sec17 tion. Unless otherwise specified in this subsection,

18 all other provisions of this section shall apply to

19 these institutions.

20 ‘‘(2) ELIGIBLE CHILDREN.—Reimbursement

21 may be provided under this subsection only for sup22 plements served to children who are not more than

23 18 years of age.

24 ‘‘(3) SUPPLEMENT REIMBURSEMENT.—
32

•HR 1139 IH

1 ‘‘(A) LIMITATION.—Only supplements

2 served to eligible school children during after3 school hours, weekends, or holidays during the

4 regular school year may be claimed for reim5 bursement. Institutions may claim reimburse6 ment for only one supplement per child per day.

7 ‘‘(B) RATE.—Eligible supplements shall be

8 reimbursed at the rate for free supplements

9 under subsection (c)(3).

10 ‘‘(C) NO CHARGE.—All supplements

11 claimed for reimbursement shall be served with12 out charge.’’.

13 (b) CHANGES TO ELIGIBILITY REQUIREMENTS FOR

14 MEAL SUPPLEMENTS FOR CHILDREN IN AFTERSCHOOL

15 CARE.—Section 17A of such Act (42 U.S.C. 1766a) is

16 amended—

17 (1) in subsection (a)(2)—

18 (A) in subparagraph (A), by adding ‘‘and’’

19 at the end;

20 (B) in subparagraph (B), by striking ‘‘;

21 and’’ and inserting a period; and

22 (C) by striking subparagraph (C);

23 (2) by striking subsection (b); and

24 (3) by redesignating subsections (c) and (d) as

25 subsections (b) and (c), respectively.
33

•HR 1139 IH

1 TITLE V—MODEL STATES EARLY

2 LEARNING PROGRAM

3 SEC. 501. MODEL STATES EARLY LEARNING PROGRAM.

4 (a) FUNDING.—Section 418 of the Social Security

5 Act (42 U.S.C. 618), as amended by section 101 of this

6 Act, is amended—

7 (1) by redesignating subsections (c), (d), and

8 (e) as subsections (d), (e), and (f), respectively; and

9 (2) by inserting after subsection (b) the fol10 lowing:

11 ‘‘(c) APPROPRIATIONS FOR MODEL STATES EARLY

12 LEARNING PROGRAM.—

13 ‘‘(1) APPROPRIATION.—Out of any money in

14 the Treasury of the United States not otherwise ap15 propriated, there are appropriated $600,000,000 for

16 each of fiscal years 2000 through 2004 for carrying

17 out activities related to early learning programs in

18 accordance with section 658T of the CCDBG Act.

19 ‘‘(2) RESERVATION AND ALLOTMENT OF

20 FUNDS.—

21 ‘‘(A) INDIAN TRIBES.—The Secretary shall

22 reserve 2 percent of the total amount appro23 priated pursuant to paragraph (1) of this sub24 section for each fiscal year for payments to In25 dian tribes. From the amount so reserved for a
34

•HR 1139 IH

1 fiscal year, the Secretary shall allot to an In2 dian tribe for the fiscal year an amount that

3 bears the same proportion to the amount so re4 served as the proportion of funds provided to

5 the Indian tribe under section 658O(c) of the

6 CCDBG Act for the fiscal year bears to the

7 total amount paid to all Indian tribes under

8 such section for the fiscal year.

9 ‘‘(B) TERRITORIES.—The Secretary shall

reserve 1 10 ⁄2 of 1 percent of the total amount ap11 propriated pursuant to paragraph (1) of this

12 subsection for any fiscal year for payments to

13 the territories. From the amount so reserved

14 for a fiscal year, the Secretary shall allot to a

15 territory for the fiscal year an amount that

16 bears the same ratio to the amount so reserved

17 as the amount provided to the territory under

18 the CCDBG Act for fiscal year 1997 bears to

19 the total amount provided to all territories

20 under such Act for fiscal year 1997.

21 ‘‘(C) TECHNICAL ASSISTANCE FOR, AND

22 EVALUATION OF, EARLY LEARNING PRO23 GRAMS.—From all amounts appropriated pur24 suant to paragraph (1) of this subsection, the

25 Secretary shall reserve an aggregate of
35

•HR 1139 IH

1 $6,000,000, which shall be available only for

2 costs of providing technical assistance to, and

3 conducting national evaluations of, State, local,

4 and tribal early learning programs under sec5 tion 658T of the CCDBG Act.

6 ‘‘(D) STATES.—The Secretary shall allot

7 the total amount appropriated for a fiscal year

8 pursuant to paragraph (1) of this subsection

9 that remains after applying subparagraphs (A),

10 (B), and (C) of this paragraph for the fiscal

11 year, among the Model States pursuant to the

12 formula used for determining the amount to be

13 allotted to the State under section 658O of the

14 CCDBG Act.

15 ‘‘(3) MATCHING PAYMENTS TO STATES AND

16 TERRITORIES.—

17 ‘‘(A) IN GENERAL.—The Secretary shall

18 pay to each State and each territory that is a

19 Model State for a fiscal year an amount equal

20 to the lesser of—

21 ‘‘(i) the amount allotted to the State

22 or territory under paragraph (2) of this

23 subsection; or

24 ‘‘(ii) 80 percent of expenditures by the

25 State or territory for an early learning pro-
36

•HR 1139 IH

1 gram under a plan approved under section

2 658T of the CCDBG Act.

3 ‘‘(B) REDISTRIBUTION.—Subsection

4 (a)(2)(D) shall apply to amounts allotted to

5 States under this subsection.

6 ‘‘(4) PAYMENTS TO INDIAN TRIBES.—The Sec7 retary shall pay to each Indian tribe for a fiscal year

8 an amount equal to the lesser of—

9 ‘‘(A) the amount allotted to the Indian

10 tribe under paragraph (2)(A) of this subsection;

11 or

12 ‘‘(B) the total amount of expenditures by

13 the tribe for an early learning program under

14 section 658T of the CCDBG Act.

15 ‘‘(5) MODEL STATE.—In this subsection, the

16 term ‘Model State’ means a State that has in effect

17 under its plan under section 658E of the CCDBG

18 Act an early learning program plan meeting the re19 quirements specified in section 658T(b)(2) of such

20 Act.’’.

21 (b) ESTABLISHMENT OF MODEL STATES EARLY

22 LEARNING PROGRAM.—

23 (1) STATE PLAN REQUIREMENT.—Section

24 658E(c) of the Child Care and Development Block
37

•HR 1139 IH

1 Grant Act of 1990 (42 U.S.C. 9858c(c)) is amended

2 by adding at the end the following:

3 ‘‘(6) MODEL STATES EARLY LEARNING PRO4 GRAM PLAN REQUIREMENTS.—In the case of a State

5 electing to implement an early learning program

6 under section 658T, the State plan shall meet the

7 requirements specified in section 658T(b)(2).’’.

8 (2) MODEL STATES EARLY LEARNING PRO9 GRAM.—The Child Care and Development Block

10 Grant Act of 1990 (42 U.S.C. 9858 et seq.) is

11 amended by adding at the end the following:

12 ‘‘SEC. 658T. MODEL STATES EARLY LEARNING PROGRAM.

13 ‘‘(a) PROGRAM PURPOSE.—The purpose of the pro14 gram under this section is to enable States, through

15 grants to communities, to support activities that promote

16 children’s healthy development during the earliest years

17 of life and improve the quality of child care for children

18 aged five and under, including those with disabilities.

19 ‘‘(b) REQUIREMENTS FOR STATE PARTICIPATION.—

20 ‘‘(1) IN GENERAL.—In order to be eligible for

21 Federal matching funds under section 418(c) of the

22 Social Security Act, the State shall have in effect

23 under its plan under section 658E an early learning

24 program plan meeting the requirements specified in

25 paragraph (2).
38

•HR 1139 IH

1 ‘‘(2) MODEL STATES EARLY LEARNING PRO2 GRAM PLAN REQUIREMENTS.—The model states

3 early learning program plan shall meet the following

4 requirements:

5 ‘‘(A) LEAD AGENCY.—The plan shall pro6 vide that the program will be administered by

7 the lead agency designated under 658D.

8 ‘‘(B) CERTIFICATION.—The plan shall in9 clude a certification that—

10 ‘‘(i) there is in effect in such State,

11 and that the State maintains a mechanism

12 to enforce, a requirement that each center13 based child care provider, and each group

14 home child care provider, in such State ob15 tain from such State, or from an entity of

16 local government designated by such State,

17 a preemployment criminal background

18 check of each individual subsequently em19 ployed by such provider to provide child

20 care services,

21 ‘‘(ii) there is in effect in such State,

22 and that such State enforces, a require23 ment that an entity of State or local gov24 ernment periodically inspect center-based

25 child care providers, group home child care
39

•HR 1139 IH

1 providers, family child care providers, and

2 all other child care providers for compli3 ance with the health and safety require4 ments applicable to such providers under

5 State law.

6 ‘‘(iii) there is in effect in such State,

7 and that such State enforces, a require8 ment that all caregivers who provide child

9 care services for which assistance is pro10 vided under the Child Care and Develop11 ment Block Grant Act of 1990 (42 U.S.C.

12 9858 et seq.), receive training in providing

13 medical first aid.

14 ‘‘(iv) there is in effect in such State,

15 and that such State enforces, a require16 ment that caregivers who are, or are em17 ployed by, child care providers who provide

18 child care services for compensation have

19 specific minimum training as determined

20 and provided by the lead agency.

21 ‘‘(v) there is in effect in such State,

22 and that such State enforces, a require23 ment that all child care providers in such

24 State who provide child care services for

25 compensation obtain from the parents (or
40

•HR 1139 IH

1 legal guardians) of the children who receive

2 such services information regarding wheth3 er such children have received age-appro4 priate immunizations in accordance with

5 the then current immunization rec6 ommendations issued by the Centers for

7 Disease Control and Prevention.

8 ‘‘(vi) there is in effect in such State,

9 and that such State enforces, a require10 ment that specifies developmentally appro11 priate child-per-caregiver ratios applicable

12 to center-based child care providers in such

13 State.

14 ‘‘(vii) such State complies with section

15 58E(c)(4)(A) of the Child Care and Devel16 opment Block Grant Act (42 U.S.C.

17 9858c(c)(4)(A)).

18 ‘‘(C) ASSURANCES.—The plan shall include

19 an assurance that—

20 ‘‘(i) such State will comply with the

21 requirements of this subtitle applicable

22 with respect to such grant.

23 ‘‘(ii) the State will not reduce or re24 move any requirement applicable to child
41

•HR 1139 IH

1 care providers, that exceeds any require2 ment applicable under this title.

3 ‘‘(D) COMMUNITY GRANT PROCEDURES.—

4 The plan shall describe the standards and pro5 cedures to be applied in the review and approval

6 of community applications, and in setting

7 amounts, terms, and conditions of community

8 grants, including the methods to be used to en9 sure that no less than 70 percent of grant

10 funds are awarded to low-income communities.

11 ‘‘(E) COMMUNITY PARTICIPATION IN PLAN12 NING AND MONITORING.—The plan shall de13 scribe the methods to be used to ensure partici14 pation, in planning and monitoring activities

15 under the community plan, of representatives of

16 concerned elements of the community, including

17 parents of young children, child care providers,

18 child development professionals, early interven19 tion specialists, health care providers, public

20 school representatives, local interagency coordi21 nating councils for children with disabilities,

22 local government, and business leaders.

23 ‘‘(F) PROGRAM ACTIVITIES.—The plan

24 shall specify which of the allowable activities
42

•HR 1139 IH

1 enumerated in subsection (c) may be carried

2 out under community grants under the plan.

3 ‘‘(G) PERFORMANCE GOALS AND MEAS4 URES.—The plan shall specify—

5 ‘‘(i) performance goals to be achieved

6 and the performance measures to be used

7 to assess progress toward such goals under

8 the plan, which—

9 ‘‘(I) shall be developed pursuant

10 to guidance provided by the Secretary

11 and in consultation with local govern12 ment authorities in accordance with

13 section 658D(b)(2); and

14 ‘‘(II) shall be designed to im15 prove child development through co16 ordination with health care services;

17 enhanced early learning environments;

18 parental involvement; consumer edu19 cation; and increased rates of accredi20 tation by nationally recognized accred21 itation organizations;

22 ‘‘(ii) interim benchmarks and interim

23 and long term timetables, as appropriate,

24 for achieving each goal; and
43

•HR 1139 IH

1 ‘‘(iii) the steps to be taken by the

2 State or grantees in accordance with guid3 ance provided by the Secretary if the speci4 fied benchmarks are not achieved.

5 ‘‘(H) COORDINATION WITH ACTIVITIES TO

6 IMPROVE THE QUALITY OF CHILD CARE.—The

7 State plan shall specify the methods to be used

8 to coordinate activities under this section and

9 section 658G(a), including coordination of plan10 ning and of performance goals and measures, in

11 order to maximize the effectiveness of both pro12 grams.

13 ‘‘(c) ALLOWABLE ACTIVITIES.—A model states early

14 learning program under a State plan under this section

15 may provide for any or all of the following activities:

16 ‘‘(1) INFORMATION AND RESOURCES.—

17 ‘‘(A) PARENTING EDUCATION.—Provision

18 of parenting education, including use of or col19 laboration with Even Start or similar programs,

20 for parents of young children by means includ21 ing use of community-based resource centers,

22 family literacy programs with parenting edu23 cation components, collaboration with early

24 intervention and preschool providers of services

25 for children, public elementary schools, centers
44

•HR 1139 IH

1 that serve children with special health care

2 needs or disabilities and their families, and

3 home visiting programs.

4 ‘‘(B) INFORMATION AND REFERRAL.—Ini5 tiatives to develop or increase the availability of

6 consumer education information and referral

7 services and other resources to assist parents to

8 locate and assess the quality of available child

9 care services.

10 ‘‘(C) FAMILY CHILD CARE NETWORKS.—

11 Development of support networks, information

12 and referral services, and other supportive serv13 ices addressing needs of family child care pro14 viders for access to such resources as education,

15 training, and community support services.

16 ‘‘(2) QUALITY AND AVAILABILITY.—

17 ‘‘(A) PROVIDER TRAINING.—Training of

18 child care personnel, which may include train19 ing in early childhood development, early lit20 eracy, health, nutrition, hygiene, first-aid and

21 safety, best practices for serving children with

22 disabilities in child care, and other appropriate

23 matters.

24 ‘‘(B) IMPROVED STAFFING RATIOS.—Ini25 tiatives to increase ratios of child care staff to
45

•HR 1139 IH

1 children in care and to reduce child care group

2 sizes.

3 ‘‘(C) LICENSING AND ACCREDITATION AS4 SISTANCE.—Assistance to entities and individ5 uals in meeting applicable child care accredita6 tion and licensing requirements and in obtain7 ing licensing or accreditation.

8 ‘‘(D) HEALTH SERVICES.—Improving co9 ordination of child care with appropriate health

10 services including health and mental health con11 sultations, hearing and vision testing, and im12 munizations, by methods such as co-location of

13 health and child care services, referrals of chil14 dren in child care to health care providers or

15 screening services, and transfer of child health

16 records to public school at school entry. Serv17 ices under this subparagraph shall not include

18 direct provision of or payment for health care

19 services.

20 ‘‘(E) CARE FOR CHILDREN WITH SPECIAL

21 NEEDS.—Increasing the availability and quality

22 of child care for young children with special

23 health care needs, developmental delays, and

24 disabilities; and coordinating with early inter25 vention and preschool special education services.
46

•HR 1139 IH

1 ‘‘(F) SALARY AND BENEFIT ENHANCE2 MENT.—Assistance to child care programs to

3 increase the quality and continuity of care by

4 retaining highly qualified child care staff work5 ing directly with children through enhanced

6 compensation.

7 ‘‘(G) MONITORING AND TECHNICAL AS8 SISTANCE.—Technical assistance to grantees,

9 and monitoring of programs, assisted under this

10 section. State expenditures under this subpara11 graph shall not exceed a percentage of total

12 State expenditures for the program under this

13 section equal to 10 percent for each of fiscal

14 years 1999 through 2001, and 5 percent for fis15 cal year 2002 and each succeeding fiscal year.

16 ‘‘(H) COMPREHENSIVE BACKGROUND

17 CHECKS.—To pay costs incurred to obtain com18 prehensive background checks required by sec19 tion 658T(b)(2)(B)(I),

20 ‘‘(I) SMALL GRANT PROGRAM.—Funding in

21 the aggregate amount of $1,000,000 or 5 per22 cent of such State’s allotment, whichever is less,

23 may be used to make small grants to persons

24 on a competitive basis, established by the Sec25 retary by rule, to be used for improvments and
47

•HR 1139 IH

1 startup costs (as defined by the Secretary by

2 rule) incurred to become eligible childcare pro3 viders.’’.

4 (c) ANNUAL REPORT.—Section 658K(a)(2) of the

5 Child Care and Development Block Grant Act of 1990 (42

6 U.S.C. 9858i(a)(2)) is amended—

7 (1) by striking ‘‘and’’ at the end of subpara8 graph (D);

9 (2) by striking the period at the end of sub10 paragraph (E) and inserting a semicolon; and

11 (3) by inserting after and below subparagraph

12 (E) the following subparagraph:

13 ‘‘(F) the model states early learning pro14 gram under section 658T, including—

15 ‘‘(i) the number and average dollar

16 amount of grants awarded;

17 ‘‘(ii) the number, average dollar

18 amount, and percentage of the total State

19 award of such grants made to low-income

20 communities;

21 ‘‘(iii) the number of early learning

22 programs;

23 ‘‘(iv) the number of children served

24 with special health care needs, disabilities

25 or developmental delays;
48

•HR 1139 IH

1 ‘‘(v) the number of early learning pro2 grams that assist children with special

3 needs;

4 ‘‘(vi) progress toward achievement of

5 each performance goal, for each specific,

6 quantifiable and measurable objective;

7 ‘‘(vii) expenditures for each allowable

8 activity listed in section 658T(c), total ex9 penditures and, to the extent feasible, the

10 volume or frequency of such activity and

11 the average expenditure per unit of such

12 activity; and

13 ‘‘(viii) with respect to any allowable

14 activity listed in section 658T(c) for which

15 expenditures are made by the State both

16 under section 658G(a) and under section

17 658T, the amount expended under each

18 such section; and

19 ‘‘(ix) such other data as the Secretary

20 may require;.’’.

21 TITLE VI—CHILD CARE WORKER

22 INCENTIVES

23 SEC. 601. SHORT TITLE.

24 This title may be cited as the ‘‘Child Care Worker

25 Incentive Act of 1999’’.
49

•HR 1139 IH

1 SEC. 602. NATIONAL CHILD CARE PROVIDER SCHOLARSHIP

2 PROGRAM.

3 (a) ESTABLISHMENT OF PROGRAM.—Section 658G

4 of the Child Care and Development Block Grant Act of

5 1990 (42 U.S.C. 9858e) is amended—

6 (1) by inserting ‘‘(a) IN GENERAL.—’’ before

7 ‘‘A State’’; and

8 (2) by adding at the end the following:

9 ‘‘(b) CHILD CARE PROVIDER SCHOLARSHIP PRO10 GRAM.—

11 ‘‘(1) STATE PLAN REQUIREMENT.—In order to

12 be eligible for funds under section 658J(a)(2), a

13 State shall include in its plan under section 658E a

14 child care provider scholarship program plan, meet15 ing the requirements of this subsection, designed to

16 further the goals of child care provider recruitment,

17 training, credentialing, and retention.

18 ‘‘(2) ELIGIBILITY CRITERIA FOR SCHOLARSHIP

19 APPLICANTS.—The State plan shall provide that, in

20 order for an individual to be eligible for a scholar21 ship grant under this subsection, the following re22 quirements shall be met:

23 ‘‘(A) DEMONSTRATED COMMITMENT TO

24 CHILD CARE CAREER.—The individual—

25 ‘‘(i) shall be a child care worker who

26 is (or is employed by) a licensed or reg-
50

•HR 1139 IH

1 istered child care provider, or has a com2 mitment for employment from a licensed or

3 registered child care provider; and

4 ‘‘(ii) shall agree in writing to continue

5 to be employed in the field of child care for

6 at least one year after receiving the train7 ing for which assistance is provided.

8 ‘‘(B) COST SHARING BY APPLICANT.—

9 ‘‘(i) IN GENERAL.—The individual (ei10 ther as provided in clause (ii) or otherwise)

11 shall provide for payment, in cash or in

12 kind, of a share of the cost of the edu13 cation or training.

14 ‘‘(ii) APPLICATION FOR PELL

15 GRANTS.—In the case of an application for

16 a scholarship intended for use in an edu17 cational institution participating in the

18 Pell Grant program under title IV of the

19 Higher Education Act, the individual shall

20 apply for a grant under such program for

21 which the individual is eligible.

22 ‘‘(C) EMPLOYER REQUIREMENTS.—In the

23 case of an individual employed by (or who has

24 a commitment for employment from) a licensed
51

•HR 1139 IH

1 or registered child care provider the individual’s

2 employer shall—

3 ‘‘(i) pay a share of the cost of the

4 education or training; and

5 ‘‘(ii) agree to provide increased finan6 cial incentives to the individual, such as a

7 salary increase or bonus, when the indi8 vidual completes the education or training.

9 ‘‘(3) QUALIFYING EDUCATIONAL INSTITU10 TIONS.—The State plan shall specify the types of

11 educational and training programs for which schol12 arships granted under the State program may be

13 used, which shall be limited to (but may include any

14 or all) programs that—

15 ‘‘(A) are administered by institutions of

16 higher education that are eligible to participate

17 in student financial assistance programs under

18 title IV of the Higher Education Act of 1965;

19 and

20 ‘‘(B) lead to a State or national credential

21 in child care or early childhood or early child22 hood special education, or to an associate or

23 bachelor’s degree in child development or early

24 childhood education.
52

•HR 1139 IH

1 ‘‘(4) ANNUAL MAXIMUM SCHOLARSHIP GRANT

2 AMOUNT.—The maximum amount of a scholarship

3 awarded to an eligible individual under this section

4 may not exceed $1,500 per year.

5 ‘‘(5) SUPPLEMENTATION OF OTHER FUND6 ING.—The State plan shall contain assurances that

7 Federal funds provided to the State under this sub8 section will not be used to supplant Federal or non9 Federal funds for existing services and activities

10 that promote the purposes of this subsection.’’.

11 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

12 658B of the Child Care and Development Block Grant Act

13 of 1990 (42 U.S.C. 9858) is amended

14 (1) by inserting ‘‘(a) IN GENERAL.—’’ before

15 ‘‘There’’; and

16 (2) by adding at the end the following:

17 ‘‘(b) CHILD CARE PROVIDER SCHOLARSHIP PRO18 GRAM.—There is authorized to be appropriated to carry

19 out section 658G(b) $50,000,000 for each of fiscal years

20 2000 through 2004.’’.

21 (c) ALLOTMENT.—Section 658O of the Child Care

22 and Development Block Grant Act of 1990 (42 U.S.C.

23 9858m) is amended—

24 (1) in subsection (a)—
53

•HR 1139 IH

1 (A) in paragraph (1) by striking ‘‘this sub2 chapter’’ and inserting ‘‘each subsection of sec3 tion 658B’’; and

4 (B) in paragraph (2) by striking ‘‘section

5 658B’’ and inserting ‘‘section 658B(a)’’;

6 (2) in subsection (b)(1) in the matter preceding

7 subparagraph (A), by inserting ‘‘each subsection of’’

8 before ‘‘section 658B’’; and

9 (3) in subsection (e)(1) by striking ‘‘the allot10 ment under subsection (b)’’ and inserting ‘‘an allot11 ment under subsection (b)’’.

12 (d) PAYMENTS.—Section 658J(a) of the Child Care

13 and Development Block Grant Act of 1990 (42 U.S.C.

14 9858h) is amended—

15 (1) by inserting ‘‘(1)’’ before ‘‘Subject’’; and

16 (2) by adding at the end the following:

17 ‘‘(2) A State described in paragraph (1) whose plan

18 under section 658E provides for a child care scholarship

19 program under section 658G(b) shall be entitled to pay20 ment under this section in an amount equal to the lesser

21 of its allotment under section 658O or 80 percent of ex22 penditures by the State for such program.’’.

23 (e) ANNUAL REPORT.—Section 658K(a)(2) of the

24 Child Care and Development Block Grant Act of 1990 (42

25 U.S.C. 9858i) is amended—
54

•HR 1139 IH

1 (1) in subparagraph (D) by striking ‘‘and’’ at

2 the end;

3 (2) in subparagraph (E) by adding ‘‘and’’ at

4 the end; and

5 (3) by inserting after subparagraph (E) the fol6 lowing:

7 ‘‘(F) the child care scholarship program,

8 including—

9 ‘‘(i) the number of child care workers

10 receiving scholarship grants;

11 ‘‘(ii) the amount of each scholarship

12 grant;

13 ‘‘(iii) the number of course credits or

14 credentials completed by individuals receiv15 ing scholarships;

16 ‘‘(iv) the number and percentage of

17 child care workers receiving scholarship

18 grants in the previous year who fulfilled

19 their 1-year commitment; and

20 ‘‘(v) such other data as the Secretary

21 may require.’’.

22 SEC. 603. APPLICATION OF AMENDMENTS.

23 The amendments made by this title shall not apply

24 with respect to fiscal years beginning before the date of

25 the enactment of this Act.
55

•HR 1139 IH

1 TITLE VII—RESEARCH AND

2 DEMONSTRATION PROGRAM

3 SEC. 701. RESEARCH AND DEMONSTRATIONS.

4 (a) ESTABLISHMENT OF RESEARCH AND DEM5 ONSTRATION ACTIVITIES.—The Child Care and Develop6 ment Block Grant Act of 1990 (42 U.S.C. 9858 et seq.)

7 is amended by adding at the end the following:

8 ‘‘SEC. 658U. RESEARCH AND DEMONSTRATIONS.

9 ‘‘(a) IN GENERAL.—The Secretary is authorized, ei10 ther directly or through grants, contracts, cooperative

11 agreements, or other arrangements, to carry out research,

12 demonstration projects, and other activities relating to

13 child care, including activities designed to improve the

14 quality and increase the availability of child care. Such

15 activities shall be coordinated with activities under the De16 partment of Education’s Office of Educational Research

17 and Improvement.

18 ‘‘(b) ALLOWABLE ACTIVITIES.—Activities under this

19 section may include the following:

20 ‘‘(1) RESEARCH ON CHILD CARE NEEDS OF

21 LOW-INCOME FAMILIES.—Research designed to iden22 tify and overcome barriers restricting availability, af23 fordability, and quality of child care for low-income

24 families.
56

•HR 1139 IH

1 ‘‘(2) RESEARCH ON GOOD POLICIES AND PRAC2 TICES.—Research designed to identify good child

3 care policies and practices, including the types of

4 child care settings, parent activities, and provider

5 training that most benefit the early development of

6 children.

7 ‘‘(3) RESEARCH ON RETENTION OF CHILD CARE

8 PROVIDER STAFF.—Research on factors affecting re9 tention of child care provider staff, including the

10 National Child Care Provider Scholarship Program

11 under section 658G(b) and its subsequent effect on

12 outcomes for children.

13 ‘‘(4) DEMONSTRATIONS OF TECHNOLOGY14 BASED EDUCATION AND TRAINING.—Demonstration

15 projects testing use of remote site and interactive

16 computer technology to provide education and train17 ing to child care providers and parents.

18 ‘‘(5) DEMONSTRATION PROJECTS FOR NEW

19 METHODS.—Demonstration projects addressing ways

20 to assist parents, such as parents who choose to stay

21 at home with their children and parents with par22 ticular child care needs, including parents of chil23 dren with special health care needs or disabilities,

24 homeless families, migrant families, teen parents

25 and foster parents.
57

•HR 1139 IH

1 ‘‘(6) NATIONAL CENTER ON CHILD CARE STA2 TISTICS.—Establishment and operation of a Na3 tional Center on Child Care Statistics for the collec4 tion and dissemination of data and information on

5 child care.

6 ‘‘(7) HOTLINE AND CONSUMER EDUCATION.—

7 Establishment and operation of a hotline to assist

8 parents to locate their local child care resource and

9 referral agency and public education activities to as10 sist parents in becoming informed consumers of

11 quality child care.

12 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There

13 is authorized to be appropriated to carry out this section

14 $30,000,000 for each of fiscal years 2000 through 2004.’’.

15 (b) REPORT TO CONGRESS.—Section 658L of the

16 Child Care and Development Block Grant Act of 1990 (42

17 U.S.C. 9858j) is amended by inserting ‘‘and progress on

18 development of research and demonstration projects as

19 carried out under section 658U’’ after ‘‘under section

20 658K’’.
58

•HR 1139 IH

1 TITLE VIII—MISCELLANEOUS

2 Subtitle A—Child and Adult Food

3 Program

4 SEC. 801. REVISION OF REIMBURSEMENT RATES FOR FAM5 ILY OR GROUP DAY CARE HOMES UNDER THE

6 CHILD AND ADULT CARE FOOD PROGRAM

7 UNDER THE NATIONAL SCHOOL LUNCH ACT.

8 Section 17(f)(3) of the National School Lunch Act

9 (42 U.S.C. 1766(f)(3)) is amended—

10 (1) in subparagraph (A)(iii)(I)—

11 (A) in division (aa), by striking ‘‘95 cents

12 for lunches and suppers, 27 cents for break13 fasts, and 13 cents for supplements’’ and in14 serting ‘‘$1.03 for lunches and suppers, 38

15 cents for breakfasts, and 18 cents for supple16 ments’’; and

17 (B) in division (bb), by striking ‘‘1997’’

18 and inserting ‘‘1998’’; and

19 (2) in the second sentence of subparagraph (B),

20 by inserting after ‘‘Such levels’’ the following: ‘‘shall

21 be those levels in effect on June 30, 1998, increased

22 by $2.00 per home and’’.
59

•HR 1139 IH

1 Subtitle B—Mortgage Insurance for

2 Child Care and Development

3 Facilities

4 SEC. 851. SHORT TITLE.

5 This title may be cited as the ‘‘Children’s Develop6 ment Commission Act’’.

7 SEC. 852. CONGRESSIONAL FINDINGS.

8 The Congress finds the following:

9 (1) The need for quality nursery schools, both

10 full-time and part-time child care centers and after11 school programs, neighborhood-run mothers-day-out

12 programs, and family child care providers has grown

13 among working parents, and parents who stay at

14 home, who want their children to have access to

15 early childhood education.

16 (2) All parents should have access to safe, stim17 ulating, and educational early childhood education

18 programs for their children, whether such programs

19 are carried out in a child care center, a part-time

20 nursery school (including a nursery school operated

21 by a religious organization), or a certified child care

22 provider’s home.

23 (3) The number of available enrollment oppor24 tunities for children to receive quality child care

25 services is not meeting the demand for such services.
60

•HR 1139 IH

1 (4) In 1995 there were about 21,000,000 chil2 dren less than 6 years of age, of whom 31 percent

3 were participating in center-based child care services

4 and 14 percent were receiving child care in homes.

5 Between 1992 and 2005 the participation of women

6 24 to 54 years of age in the labor force is projected

7 to increase from 75 percent to 83 percent.

8 (5) In States that have set up a mechanism to

9 provide capital improvements for child care facilities,

10 the demand for services of such facilities still has

11 not been met.

12 (6) The United States is behind other western,

13 industrialized countries when it comes to providing

14 child care services. In France, almost 100 percent of

15 all children 3 to 5 years of age attend nursery

16 school. In Germany this number is 65 to 70 percent.

17 In Japan 90 percent of such children attend some

18 form of preschool care. In all of these countries early

19 childhood care has proven to increase children’s de20 velopment and performance.
61

•HR 1139 IH

1 SEC. 853. INSURANCE FOR MORTGAGES ON NEW AND RE2 HABILITATED CHILD CARE AND DEVELOP3 MENT FACILITIES.

4 Title II of the National Housing Act (12 U.S.C. 1707

5 et seq.) is amended by adding at the end the following

6 new section:

7 ‘‘MORTGAGE INSURANCE FOR CHILD CARE AND

8 DEVELOPMENT FACILITIES

9 ‘‘SEC. 257. (a) PURPOSE.—The purpose of this sec10 tion is to facilitate and assist in the provision and develop11 ment of licensed child care and development facilities.

12 ‘‘(b) GENERAL INSURANCE AUTHORITY.—The Sec13 retary may insure mortgages (including advances on such

14 mortgages during construction) in accordance with the

15 provisions of this section and upon such terms and condi16 tions as the Secretary may prescribe and may make com17 mitments for insurance of such mortgages before the date

18 of their execution or disbursement thereon.

19 ‘‘(c) ELIGIBLE MORTGAGES.—To carry out the pur20 pose of this section, the Secretary may insure any mort21 gage that covers a new child care and development facility,

22 including a new addition to an existing child care and de23 velopment facility (regardless of whether the existing facil24 ity is being rehabilitated), or a substantially rehabilitated

25 child care and development facility, including equipment
62

•HR 1139 IH

1 to be used in the operation of the facility, subject to the

2 following conditions:

3 ‘‘(1) APPROVED MORTGAGOR.—The mortgage

4 shall be executed by a mortgagor approved by the

5 Secretary. The Secretary may, in the discretion of

6 the Secretary, require any such mortgagor to be reg7 ulated or restricted as to charges and methods of fi8 nancing and, if the mortgagor is a corporate entity,

9 as to capital structure and rate of return. As an aid

10 to the regulation or restriction of any mortgagor

11 with respect to any of the foregoing matters, the

12 Secretary may make such contracts with and acquire

13 for not more than $100 such stock or interest in

14 such mortgagor as the Secretary may consider nec15 essary. Any stock or interest so purchased shall be

16 paid for out of the General Insurance Fund, and

17 shall be redeemed by the mortgagor at par upon the

18 termination of all obligations of the Secretary under

19 the insurance.

20 ‘‘(2) PRINCIPAL OBLIGATION.—

21 ‘‘(A) IN GENERAL.—Except as provided in

22 subparagraph (B), the mortgage shall involve a

23 principal obligation in an amount not to exceed

24 80 percent of the estimated value of the prop25 erty or project, or 85 percent of the estimated
63

•HR 1139 IH

1 value of the property or project in the case only

2 of a mortgagor that is a private nonprofit cor3 poration or association (as such term is defined

4 pursuant to section 221(d)(3)), including—

5 ‘‘(i) equipment to be used in the oper6 ation of the facility when the proposed im7 provements are completed and the equip8 ment is installed; or

9 ‘‘(ii) a solar energy system (as defined

10 in subparagraph (3) of the last paragraph

11 of section 2(a)) or residential energy con12 servation measures (as defined in subpara13 graphs (A) through (G) and (I) of section

14 210(11) of the National Energy Conserva15 tion Policy Act), in cases in which the Sec16 retary determines that such measures are

17 in addition to those required under the

18 minimum property standards and will be

19 cost-effective over the life of the measure.

20 ‘‘(B) INCREASE FOR CERTAIN DISTRESSED

21 AREAS.—In the case of any mortgage for a

22 child care and development facility that is lo23 cated in a distressed area and for which more

24 than 50 percent of the children served by the

25 facility are children of families or individuals
64

•HR 1139 IH

1 who are eligible for assistance under a State

2 program for temporary assistance for needy

3 families that is funded under part A of title IV

4 of the Social Security Act, the mortgage shall

5 involve principal obligation in an amount not to

6 exceed the sum of the amount determined

7 under subparagraph (A) for the mortgagor and

8 5 percent of the estimated value of the property

9 or project.

10 ‘‘(3) AMORTIZATION AND INTEREST.—The

11 mortgage shall—

12 ‘‘(A) provide for complete amortization by

13 periodic payments under such terms as the Sec14 retary shall prescribe;

15 ‘‘(B) have a maturity satisfactory to the

16 Secretary, but in no event longer than 25 years;

17 and

18 ‘‘(C) bear interest at such rate as may be

19 agreed upon by the mortgagor and the mort20 gagee, and the Secretary shall not issue any

21 regulations or establish any terms or conditions

22 that interfere with the ability of the mortgagor

23 and mortgagee to determine the interest rate.

24 ‘‘(d) CERTIFICATION BY CHILDREN’S DEVELOPMENT

25 COMMISSION.—The Secretary may not insure a mortgage
65

•HR 1139 IH

1 under this section unless the Children’s Development

2 Commission established under section 258 certifies that

3 the facility is in compliance, or will be in compliance not

4 later than 12 months after such certification, with—

5 ‘‘(1) any laws, standards, and requirements ap6 plicable to such facilities under the laws of the

7 State, municipality, or other unit of general local

8 government in which the facility is or is to be lo9 cated; and

10 ‘‘(2) after the effective date of the standards

11 and requirements established under section

12 258(c)(2), such standards and requirements.

13 ‘‘(e) LOW-INCOME CLIENTELE.—The Secretary may

14 not insure a mortgage under this section unless the mort15 gage certifies, to the satisfaction of the Secretary, that not

16 less than 20 percent of the children served by the facility

17 during the period that the mortgage is outstanding shall

18 be children of families having incomes less than the me19 dian income for the metropolitan statistical area in which

20 the facility is located.

21 ‘‘(f) RELEASE.—The Secretary may consent to the

22 release of a part or parts of the mortgaged property or

23 project from the lien of any mortgage insured under this

24 section upon such terms and conditions as the Secretary

25 may prescribe.
66

•HR 1139 IH

1 ‘‘(g) MORTGAGE INSURANCE TERMS.—The provi2 sions of subsections (d), (e), (g), (h), (i), (j), (k), (l), and

3 (n) of section 207 shall apply to mortgages insured under

4 this section, except that all references in such subsections

5 to section 207 shall be considered, for purposes of mort6 gage insurance under this section, to refer to this section.

7 ‘‘(h) MORTGAGE INSURANCE FOR FIRE SAFETY

8 EQUIPMENT LOANS.—

9 ‘‘(1) AUTHORITY.—The Secretary may, upon

10 such terms and condition as the Secretary may pre11 scribe, make commitments to insure and insure

12 loans made by financial institutions or other ap13 proved mortgagees to child care and development fa14 cilities to provide for the purchase and installation

15 of fire safety equipment necessary for compliance

16 with the 1967 edition of the Life Safety Code of the

17 National Fire Protection Association (or any subse18 quent edition specified by the Secretary of Health

19 and Human Services).

20 ‘‘(2) LOAN REQUIREMENTS.—To be eligible for

21 insurance under this subsection a loan shall—

22 ‘‘(A) not exceed the Secretary’s estimate of

23 the reasonable cost of the equipment fully in24 stalled;
67

•HR 1139 IH

1 ‘‘(B) bear interest at such rate as may be

2 agreed upon by the mortgagor and the mort3 gagee;

4 ‘‘(C) have a maturity satisfactory to the

5 Secretary;

6 ‘‘(D) be made by a financial institution or

7 other mortgagee approved by the Secretary as

8 eligible for insurance under section 2 or a mort9 gagee approved under section 203(b)(1);

10 ‘‘(E) comply with other such terms, condi11 tions, and restrictions as the Secretary may

12 prescribe; and

13 ‘‘(F) be made with respect to a child care

14 and development facility that complies with the

15 requirement under subsection (d).

16 ‘‘(3) INSURANCE REQUIREMENTS.—The provi17 sions of paragraphs (5), (6), (7), (9), and (10) of

18 section 220(h) shall apply to loans insured under

19 this subsection, except that all references in such

20 paragraphs to home improvement loans shall be con21 sidered, for purposes of this subsection, to refer to

22 loans under this subsection. The provisions of sub23 sections (c), (d), and (h) of section 2 shall apply to

24 loans insured under this subsection, except that all

25 references in such subsections to ‘this section’ or
68

•HR 1139 IH

1 ‘this title’ shall be considered, for purposes of this

2 subsection, to refer to this subsection.

3 ‘‘(i) SCHEDULES AND DEADLINES.—The Secretary

4 shall establish schedules and deadlines for the processing

5 and approval (or provision of notice of disapproval) of ap6 plications for mortgage insurance under this section.

7 ‘‘(j) DEFINITIONS.—For the purposes of this section,

8 the following definitions shall apply:

9 ‘‘(1) CHILD CARE AND DEVELOPMENT FACIL10 ITY.—The term ‘child care and development facility’

11 means a public facility, proprietary facility, or facil12 ity of a private nonprofit corporation or association

13 that—

14 ‘‘(A) has as its purpose the care and devel15 opment of children less than 12 years of age;

16 and

17 ‘‘(B) is licensed or regulated by the State

18 in which it is located (or, if there is no State

19 law providing for such licensing and regulation

20 by the State, by the municipality or other polit21 ical subdivision in which the facility is located).

22 The term does not include facilities for school-age

23 children primarily for use during normal school

24 hours. The term includes facilities for training indi-
69

•HR 1139 IH

1 viduals to provide child care and development serv2 ices.

3 ‘‘(2) DISTRESSED AREA.—The term ‘distressed

4 area’ means an area that—

5 ‘‘(A) meets the requirements under sub6 chapter U of chapter I of the Internal Revenue

7 Code (26 U.S.C. 1391 et seq.) for designation

8 as an enterprise community or empowerment

9 zone under such subchapter; or

10 ‘‘(B) is a census tract that has a median

11 income that does not exceed 50 percent of the

12 median income for the region in which the cen13 sus tract is located, as determined by the Sec14 retary.

15 For purposes of subparagraph (B), a region shall be

16 determined by the Secretary in the same manner as

17 areas are determined for purposes of determining in18 come limitations for assistance under section 8 of

19 the United States Housing Act of 1937 (42 U.S.C.

20 1437f).

21 ‘‘(3) EQUIPMENT.—The term ‘equipment’ in22 cludes machinery, utilities, and built-in equipment

23 and any necessary enclosures or structures to house

24 them, and any other items necessary for the func25 tioning of a particular facility as a child care and
70

•HR 1139 IH

1 development facility, including necessary furniture.

2 Such term includes books, curricular, and program

3 materials.

4 ‘‘(4) MORTGAGE; FIRST MORTGAGE; MORT5 GAGEE.—The term ‘mortgage’ means a first mort6 gage on real estate in fee simple, or on the interest

7 of either the lessor or lessee thereof under a lease

8 having a period of not less than 7 years to run be9 yond the maturity date of the mortgage. The term

10 ‘first mortgage’ means such classes of first liens as

11 are commonly given to secure advances (including

12 advances during construction) on, or the unpaid pur13 chase price of, real estate under the laws of the

14 State in which the real estate is located, together

15 with the credit instrument or instruments (if any)

16 secured thereby, and any mortgage may be in the

17 form of one or more trust mortgages or mortgage in18 dentures or deeds of trust, securing notes, bonds, or

19 other credit instruments, and, by the same instru20 ment or by a separate instrument, may create a se21 curity interest in initial equipment, whether or not

22 attached to the realty. The term ‘mortgagor’ has the

23 meaning given the term in section 207(a).

24 ‘‘(k) LIMITATION ON INSURANCE AUTHORITY.—
71

•HR 1139 IH

1 ‘‘(1) TERMINATION.—No mortgage may be in2 sured under this section or section 223(h) after Sep3 tember 30, 2008, except pursuant to a commitment

4 to insure issued on or before such date.

5 ‘‘(2) AGGREGATE PRINCIPAL AMOUNT LIMITA6 TION.—The aggregate principal amount of mort7 gages for which the Secretary enters into commit8 ments to insure under this section or section 223(h)

9 on or before the date under paragraph (1) may not

10 exceed $2,000,000,000. If, upon the date under

11 paragraph (1), the aggregate insurance authority

12 provided under this paragraph has not been fully

13 used, the Secretary of the Treasury shall submit a

14 report to the Congress evaluating the need for con15 tinued mortgage insurance under this section.’’.

16 ‘‘(l) REGULATIONS.—The Secretary shall issue any

17 regulations necessary to carry out this section. In issuing

18 such regulations, the Secretary shall consult with the Sec19 retary of Health and Human Services with respect to any

20 aspects of the regulations regarding child care and devel21 opment facilities.’’.
72

•HR 1139 IH

1 SEC. 854. INSURANCE FOR MORTGAGES FOR ACQUISITION

2 OR REFINANCING DEBT OF EXISTING CHILD

3 CARE AND DEVELOPMENT FACILITIES.

4 Section 223 of the National Housing Act (12 U.S.C.

5 1715n) is amended by adding at the end the following new

6 subsection:

7 ‘‘(h) MORTGAGE INSURANCE FOR PURCHASE OR RE8 FINANCING OF EXISTING CHILD CARE AND DEVELOP9 MENT FACILITIES.—

10 ‘‘(1) AUTHORITY.—Notwithstanding any other

11 provision of this Act, the Secretary may insure

12 under any section of this title a mortgage executed

13 in connection with the purchase or refinancing of an

14 existing child care and development facility, the pur15 chase of a structure to serve as a child care and de16 velopment facility, or the refinancing of existing debt

17 of an existing child care and development facility.

18 ‘‘(2) PURCHASE OF EXISTING FACILITIES AND

19 STRUCTURES.—In the case of the purchase under

20 this subsection of an existing child care and develop21 ment facility or purchase of an existing structure to

22 serve as such a facility, the Secretary shall prescribe

23 any terms and conditions that the Secretary con24 siders necessary to ensure that—
73

•HR 1139 IH

1 ‘‘(A) the facility or structure purchased

2 continues to be used as a child care and devel3 opment facility; and

4 ‘‘(B) the facility complies with the same

5 requirements applicable under section 257(d) to

6 facilities having mortgages insured under such

7 section.

8 ‘‘(3) REFINANCING OF EXISTING FACILITIES.—

9 In the case of refinancing of an existing child care

10 and development facility, the Secretary shall pre11 scribe any terms and conditions that the Secretary

12 considers necessary to ensure that—

13 ‘‘(A) the refinancing is used to lower the

14 monthly debt service costs (taking into account

15 any fees or charges connected with such refi16 nancing) of the existing facility;

17 ‘‘(B) the proceeds of any refinancing will

18 be employed only to retire the existing indebted19 ness and pay the necessary cost of refinancing

20 on the existing facility;

21 ‘‘(C) the existing facility is economically

22 viable; and

23 ‘‘(D) the facility complies with the same

24 requirements applicable under section 257(d) to
74

•HR 1139 IH

1 facilities having mortgages insured under such

2 section.

3 ‘‘(4) DEFINITIONS.—For purposes of this sub4 section, the terms defined in section 257(j) shall

5 have the same meanings as provided under such sec6 tion.

7 ‘‘(5) LIMITATION ON INSURANCE AUTHORITY.—

8 The authority of the Secretary to enter into commit9 ments to insure mortgages under this subsection is

10 subject to the limitations under section 257(k).’’.

11 SEC. 855. CHILDREN’S DEVELOPMENT COMMISSION.

12 Title II of the National Housing Act (12 U.S.C. 1707

13 et seq.) is amended by adding at the end (after section

14 257, as added by section 853 of this Act) the following

15 new section:

16 ‘‘CHILDREN’S DEVELOPMENT COMMISSION

17 ‘‘SEC. 258. (a) ESTABLISHMENT.—There is hereby

18 established a commission to be known as the Children’s

19 Development Commission.

20 ‘‘(b) MEMBERSHIP.—

21 ‘‘(1) APPOINTMENT.—The Commission shall be

22 composed of 7 members appointed by the President,

23 not later than the expiration of the 3-month period

24 beginning upon the enactment of this section, by and

25 with the advice and consent of the Senate, as fol26 lows:
75

•HR 1139 IH

1 ‘‘(A) The Secretary of Housing and Urban

2 Development or the Secretary’s designee.

3 ‘‘(B) The Secretary of Health and Human

4 Services or the Secretary’s designee.

5 ‘‘(C) The Secretary of the Treasury or the

6 Secretary’s designee.

7 ‘‘(D) 4 members shall be appointed from

8 among 12 individuals recommended jointly by

9 the Speaker of the House of Representatives,

10 the Majority Leader of the Senate, Minority

11 Leader of the House of Representatives, the

12 Minority Leader of the Senate.

13 ‘‘(2) QUALIFICATIONS OF CONGRESSIONALLY

14 RECOMMENDED MEMBERS.—Of the members ap15 pointed under paragraph (1)(D)—

16 ‘‘(A) each shall be an individual who ac17 tively participates or is employed in the field of

18 child care and has academic, licensing, or other

19 credentials relating to such participation or em20 ployment; and

21 ‘‘(B) not more than 2 may be of the same

22 political party.

23 ‘‘(3) TERMS.—Each appointed member of the

24 Commission shall serve for a term of 3 years.
76

•HR 1139 IH

1 ‘‘(4) VACANCIES.—Any member appointed to

2 fill a vacancy occurring before the expiration of the

3 term for which the member’s predecessor was ap4 pointed shall be appointed only for the remainder of

5 that term. A member may serve after the expiration

6 of that member’s term until a successor has taken

7 office. A vacancy in the Commission shall be filled

8 in the manner in which the original appointment was

9 made.

10 ‘‘(5) CHAIRPERSON.—The chairperson of the

11 Commission shall be designated by the President at

12 the time of appointment.

13 ‘‘(6) QUORUM.—A majority of the members of

14 the Commission shall constitute a quorum for the

15 transaction of business.

16 ‘‘(7) VOTING.—Each member of the Commis17 sion shall be entitled to 1 vote, which shall be equal

18 to the vote of every other member of the Commis19 sion.

20 ‘‘(8) PROHIBITION ON ADDITIONAL PAY.—

21 Members of the Commission shall serve without

22 compensation, but shall be reimbursed for travel,

23 subsistence, and other necessary expenses incurred

24 in the performance of their duties as members of the

25 Commission.
77

•HR 1139 IH

1 ‘‘(c) FUNCTIONS.—The Commission shall carry out

2 the following functions:

3 ‘‘(1) CERTIFICATION OF COMPLIANCE.—The

4 Commission shall collect such information and make

5 such determinations as may be necessary to deter6 mine, for purposes of section 257(d), whether child

7 care and development facilities comply, or will be in

8 compliance within 12 months, with—

9 ‘‘(A) any laws, standards, and require10 ments applicable to such facilities under the

11 laws of the State, municipality, or other unit of

12 general local government in which the facility is

13 or is to be located, and

14 ‘‘(B) after the effective date of the stand15 ards and requirements established under para16 graph (2), such standards and requirements,

17 and shall issue certifications of such compliance.

18 ‘‘(2) ESTABLISHMENT OF STANDARDS.—

19 ‘‘(A) STUDY.—Not later than 12 months

20 after the date on which appointment of initial

21 membership of the Commission is completed,

22 the Commission, in consultation with the Sec23 retary of Housing and Urban Development and

24 the Secretary of Health and Human Services,

25 shall conduct a study to determine the laws,
78

•HR 1139 IH

1 standards, and requirements referred to in

2 paragraph (1)(A) that are applicable in each

3 State. Taking into consideration the findings of

4 the study, the Secretary shall establish stand5 ards and requirements regarding child care and

6 development facilities that are designed to en7 sure that mortgage insurance is provided under

8 section 257 and section 223(h) only for safe,

9 clean, and healthy facilities that provide appro10 priate care and development services for chil11 dren.

12 ‘‘(B) PUBLICATION.—The Commission

13 shall issue regulations providing for the stand14 ards and requirements established under sub15 paragraph (A) to take effect, for purposes of

16 sections 257(d)(2) and 223(h)(2)(B) and para17 graph (1)(B) of this section, not later than 18

18 months after the date of the enactment of this

19 section.

20 ‘‘(3) SMALL PURPOSE LOANS.—The Commis21 sion shall, to the extent amounts are made available

22 for such purpose pursuant to subsection (i) and

23 qualified requests are received, make loans, directly

24 or indirectly to providers of child care and develop-
79

•HR 1139 IH

1 ment facilities for reconstruction or renovation of

2 such facilities, subject to the following requirements:

3 ‘‘(A) Loans under this paragraph shall be

4 made only for such facilities that are financially

5 and operationally viable, as determined under

6 standards and guidelines to be established by

7 the Commission.

8 ‘‘(B) The aggregate amount of loans made

9 under this paragraph to a single borrower may

10 not exceed $50,000.

11 ‘‘(C) A loan made under this paragraph

12 may not have a term exceeding 15 years.

13 ‘‘(D) Loans under this paragraph shall

14 bear interest at rates and be made under such

15 other conditions and terms as the Commission

16 shall provide.

17 ‘‘(4) NOTIFICATION.—The Commission shall

18 take such actions as may be necessary to publicize

19 the availability of the programs for mortgage insur20 ance under sections 257 and 223(h) and loans under

21 paragraph (3) of this subsection in a manner that

22 ensures that information concerning such programs

23 will be available to child care providers throughout

24 the United States.
80

•HR 1139 IH

1 ‘‘(5) TECHNICAL ASSISTANCE.—The Commis2 sion shall make available, to mortgagors of mort3 gages insured under section 257 or 223(h) and to

4 borrowers under paragraph (3) of this subsection,

5 technical assistance and expertise in the business as6 pects of operating child care and development facili7 ties (including business planning and quality control

8 assistance). The Commission shall provide such as9 sistance and expertise directly and in coordination

10 with appropriate Federal agencies (including the De11 partment of Housing and Urban Development, the

12 Department of Health and Human Services, the De13 partment of Defense, and the Small Business Ad14 ministration),

15 ‘‘(6) LIABILITY INSURANCE.—Not later than 12

16 months after the date on which appointment of ini17 tial membership of the Commission is completed, the

18 Commission shall establish standards and guidelines,

19 applicable to mortgage insurance under sections 257

20 and 223(h) and loans under paragraph (3) of this

21 subsection, requiring child care providers operating

22 child care and development facilities assisted under

23 such provisions to obtain and maintain liability in24 surance in such amounts and subject to such re-
81

•HR 1139 IH

1 quirements as the Commission considers appro2 priate.

3 ‘‘(7) RESEARCH FOUNDATION.—Not later than

4 12 months after the date of the enactment of this

5 section, the Commission shall submit a report to the

6 Congress recommending a plan for establishing and

7 funding a foundation that is an entity independent

8 of the Commission (but which maintains association

9 with the Commission)—

10 ‘‘(A) which shall have as its purpose—

11 ‘‘(i) to support research relating to

12 child care and development facilities;

13 ‘‘(ii) to fund pilot programs to test in14 novative methods for improving child care;

15 and

16 ‘‘(iii) to engage in activities and pub17 lish materials to assist persons interested

18 in mortgage insurance under sections 257

19 and 223(h) and other assistance provided

20 by the Commission; and

21 ‘‘(B) which shall have the authority to ac22 cept, use, and dispose of gifts, bequests, or de23 vises of services or property, both real and per24 sonal, for the purpose of aiding or facilitating

25 the work of the foundation.
82

•HR 1139 IH

1 ‘‘(8) STUDY REGARDING CAPITAL NEEDS OF

2 CENTER-BASED CHILD CARE IN LOW-INCOME COM3 MUNITIES.—The Commission shall provide for the

4 conducting of a study of center-based child care for

5 families in low-income communities and neighbor6 hoods that—

7 ‘‘(A) determines the existing supply and

8 quality of such care in such areas;

9 ‘‘(B) identifies the economic and other

10 market barriers in such areas to—

11 ‘‘(i) creating an adequate supply of

12 center-based child care services; and

13 ‘‘(ii) achieving a quality standard in

14 child care centers adequate to support

15 early childhood programs; and

16 ‘‘(C) proposes public policy and private

17 sector initiatives that might be taken to ensure

18 that such areas have—

19 ‘‘(i) a supply of center-based child

20 care facilities sufficient for child care needs

21 of the areas and to facilitate employment

22 and support the goals of welfare reform;

23 ‘‘(ii) appropriate child care choices;

24 and
83

•HR 1139 IH

1 ‘‘(iii) sufficient quality of care nec2 essary to prepare at-risk children for

3 school.

4 The Commission shall submit to the Congress a re5 port regarding the results of the study conducted

6 under this section not later than the expiration of

7 the 18-month period beginning on the date of the

8 appointment of the executive director pursuant to

9 subsection (f)(1).

10 ‘‘(d) NONDISCRIMINATION REQUIREMENT.—

11 ‘‘(1) IN GENERAL.—The Commission may not

12 certify under subsection (c)(1) or carry out any ac13 tivities of the Commission with respect to any child

14 care and development facility if the provider of the

15 facility discriminates on account of race, color, reli16 gion (subject to paragraph (2)), national origin, sex

17 (to the extent provided in title IX of the Education

18 Amendments of 1972 (20 U.S.C. 1681 et seq.)), or

19 handicapping condition.

20 ‘‘(2) FACILITIES OF RELIGIOUS ORGANIZA21 TIONS.—The prohibition with respect to religion

22 shall not apply to a child care and development facil23 ity which is controlled by or which is closely identi24 fied with the tenets of a particular religious organi25 zation if the application of this subsection would not
84

•HR 1139 IH

1 be consistent with the religious tenets of such orga2 nization.

3 ‘‘(3) CERTIFICATION.—As a condition of certifi4 cation under subsection (c)(1) and eligibility for a

5 loan under subsection (c)(3), the provider of a child

6 care and development facility shall certify to the

7 Commission that the provider does not discriminate,

8 as required by the provisions of paragraph (1) of

9 this subsection.

10 ‘‘(e) POWERS.—

11 ‘‘(1) ASSISTANCE FROM FEDERAL AGENCIES.—

12 The Commission may secure directly from any de13 partment or agency of the Federal Government such

14 information as the Commission may require for car15 rying out its functions. Upon request of the Com16 mission, any such department or agency shall fur17 nish such information.

18 ‘‘(2) ASSISTANCE FROM GENERAL SERVICES

19 ADMINISTRATION.—The Administrator of General

20 Services shall provide to the Commission, on a reim21 bursable basis, such administrative support services

22 as the Commission may request.

23 ‘‘(3) ASSISTANCE FROM DEPARTMENT OF

24 HOUSING AND URBAN DEVELOPMENT.—Upon the re25 quest of the Commission, the Secretary of Housing
85

•HR 1139 IH

1 and Urban Development shall, to the extent possible

2 and subject to the discretion of the Secretary, detail

3 any of the personnel of the Department of Housing

4 and Urban Development, on a nonreimbursable

5 basis, to assist the Commission in carrying out its

6 functions under this section.

7 ‘‘(4) MAILS.—The Commission may use the

8 United States mails in the same manner and under

9 the same conditions as other Federal agencies.

10 ‘‘(f) STAFF.—

11 ‘‘(1) EXECUTIVE DIRECTOR.—The Commission

12 shall appoint an executive director, who shall be

13 compensated at a rate fixed by the Commission, but

14 which shall not exceed the rate established for level

15 I of the Executive Schedule under title 5, United

16 States Code.

17 ‘‘(2) OTHER PERSONNEL.—In addition to the

18 executive director, the Commission may appoint and

19 fix the compensation of such personnel as the Com20 mission considers necessary, in accordance with the

21 provisions of title 5, United States Code, governing

22 appointments to the competitive service, and the

23 provisions of chapter 51 and subchapter III of chap24 ter 53 of such title, relating to classification and

25 General Schedule pay rates.
86

•HR 1139 IH

1 ‘‘(g) REPORTS.—Not later than March 31 of each

2 year, the Commission shall submit a report to the Presi3 dent and the Congress regarding the operations and activi4 ties of the Commission during the preceding calendar year.

5 Each annual report shall include a copy of the Commis6 sion’s financial statements and such information and other

7 evidence as is necessary to demonstrate that the activities

8 of the Commission during the year for which the report

9 is made. The Commission may also submit reports to the

10 Congress and President at such other times as the Com11 mission deems desirable.

12 ‘‘(h) DEFINITIONS.—For purposes of this section, the

13 terms defined in section 257(j) shall have the same mean14 ings as provided under such section.

15 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There

16 are authorized to be appropriated to the Commission to

17 carry out this section $20,000,000 for fiscal year 2000,

18 to remain available until expended, of which not more than

19 $2,500,000 shall be available for administrative costs of

20 the Commission and the remainder of which shall be avail21 able only for loans under subsection (c)(3).’’.
87

•HR 1139 IH

1 SEC. 856. STUDY OF AVAILABILITY OF SECONDARY MAR2 KETS FOR MORTGAGES ON CHILD CARE FA3 CILITIES.

4 The Secretary of the Treasury shall conduct a study

5 of the secondary mortgage markets to determine—

6 (1) whether such a market exists for purchase

7 of mortgages eligible for insurance under sections

8 223(h) and 257 of the National Housing Act (as

9 added by this title);

10 (2) whether such a market would affect the

11 availability of credit available for development of

12 child care and development facilities or would lower

13 development costs of such facilities; and

14 (3) the extent to which such a market or other

15 activities to provide credit enhancement for child

16 care and development facilities loans is needed to

17 meet the demand for such facilities.

18 The Secretary of the Treasury shall submit to the Con19 gress a report regarding the results of the study conducted

20 under this section not later than the expiration of the 2-

21 year period beginning on the date of the enactment of this

22 Act.

23 Subtitle C—Sense of the Congress

24 SEC. 871. SENSE OF THE CONGRESS.

25 It is the sense of the Congress that funds should be

26 appropriated pursuant to this Act, to the maximum extent
88

•HR 1139 IH

1 authorized and consistently with achieving a balanced

2 Federal budget.

Æ