```

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1430 Introduced in House (IH)]

106th CONGRESS
  1st Session
                                H. R. 1430

 To amend the Internal Revenue Code of 1986 to expand alternatives for 
families with children, to establish incentives to improve the quality 
      and supply of child care, to increase the availability and 
affordability of professional development for child care providers, to 
    expand youth development opportunities, to ensure the safety of 
children placed in child care centers in Federal facilities, to ensure 
adequate child care subsidies for low-income working families, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 15, 1999

  Mr. Gilman (for himself, Mr. Boehlert, Mr. Houghton, and Mr. Shows) 
 introduced the following bill; which was referred to the Committee on 
Ways and Means, and in addition to the Committees on Government Reform, 
Banking and Financial Services, House Administration, Education and the 
     Workforce, and the Judiciary, 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

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to expand alternatives for 
families with children, to establish incentives to improve the quality 
      and supply of child care, to increase the availability and 
affordability of professional development for child care providers, to 
    expand youth development opportunities, to ensure the safety of 
children placed in child care centers in Federal facilities, to ensure 
adequate child care subsidies for low-income working families, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Caring for 
America's Children Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
            TITLE I--TAX BENEFITS FOR FAMILIES WITH CHILDREN

Sec. 101. Expansion of dependent care tax credit.
Sec. 102. Increase in child tax credit.
Sec. 103. Expansion of dependent care assistance program.
Sec. 104. Mutually exclusive use of dependent care tax credit, child 
                            tax credit, and dependent care assistance 
                            program for each dependent.
Sec. 105. Expansion of home office deduction to include use of office 
                            for dependent care.
Sec. 106. Inclusion of child care costs in child support orders.
       TITLE II--ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE

       Subtitle A--Encouraging Business Involvement in Child Care

Sec. 201. Allowance of credit for employer expenses for child care 
                            assistance.
Sec. 202. Charitable contributions of scientific equipment, computer 
                            technology and equipment, and other 
                            services to child care providers and to 
                            elementary and secondary schools.
      Subtitle B--Child Care Quality Improvement Incentive Program

Sec. 211. Definitions.
Sec. 212. Establishment of State program.
Sec. 213. Distribution.
Sec. 214. State eligibility and application requirements.
Sec. 215. Use of funds by States.
Sec. 216. Reservation.
Sec. 217. Authorization of appropriations.
 Subtitle C--Increased Enforcement of State Health and Safety Standards

Sec. 221. Enforcement of State health and safety standards.
    Subtitle D--Distribution of Information About Quality Child Care

Sec. 231. Expansion of role of the Department of Health and Human 
                            Services in the collection and 
                            dissemination of information and 
                            technology.
      TITLE III--EXPANDING PROFESSIONAL DEVELOPMENT OPPORTUNITIES

Sec. 301. Child care training infrastructure.
Sec. 302. Child Care Training Revolving Fund.
 TITLE IV--EXPANDING YOUTH DEVELOPMENT OPPORTUNITIES DURING NON-SCHOOL 
                                 HOURS

Sec. 401. Purpose.
Sec. 402. Definitions.
Sec. 403. Establishment of program.
Sec. 404. State allotments.
Sec. 405. State application.
Sec. 406. Local allocations and grants.
Sec. 407. Local application.
Sec. 408. Use of grant funds.
Sec. 409. Federal administration; duties of the Assistant Secretary.
Sec. 410. State administration; duties of the States.
Sec. 411. Coordination with other programs.
Sec. 412. Authorization of appropriations.
               TITLE V--CHILD CARE IN FEDERAL FACILITIES

Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Providing quality child care in Federal facilities.
Sec. 504. Federal child care evaluation.
Sec. 505. Child care services for Federal employees.
Sec. 506. Miscellaneous provisions relating to child care provided by 
                            Federal agencies.
     TITLE VI--EXPANDING CHILD CARE SUBSIDY FOR LOW-INCOME FAMILIES

Sec. 601. Authorization of appropriations.
Sec. 602. Application and plan.
Sec. 603. Automated systems.
    TITLE VII--CONSTRUCTION AND RENOVATION OF CHILD CARE FACILITIES

             Subtitle A--Community Development Block Grants

Sec. 701. Use of community development block grants to establish child 
                            care facilities.
        Subtitle B--Mortgage Insurance For Child Care Facilities

Sec. 711. Insurance for mortgages on new and rehabilitated child care 
                            facilities.
Sec. 712. Insurance for mortgages for acquisition or refinancing debt 
                            of existing child care facilities.
Sec. 713. Study of availability of secondary markets for mortgages on 
                            child care facilities.
Sec. 714. Technical and financial assistance grants.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Accredited child care facility.--The term ``accredited 
        child care facility'' means--
                    (A) a facility that is accredited, by a child care 
                credentialing or accreditation entity recognized by a 
                State or national organization described in paragraph 
                (2)(A), to provide child care (except children who a 
                tribal organization elects to serve through a facility 
                described in subparagraph (B));
                    (B) a facility that is accredited, by a child care 
                credentialing or accreditation entity recognized by a 
                tribal organization, to provide child care for children 
                served by the tribal organization;
                    (C) a facility that is used as a Head Start center 
                under the Head Start Act (42 U.S.C. 9831 et seq.) and 
                is in compliance with applicable performance standards 
                established by regulation under such Act for Head Start 
                programs; or
                    (D) a military child development center (as defined 
                in section 1798(1) of title 10, United States Code) 
                that is in a facility owned or leased by the Department 
                of Defense or the Coast Guard.
            (2) Child care credentialing or accreditation entity.--The 
        term ``child care credentialing or accreditation entity'' means 
        a nonprofit private organization or public agency that--
                    (A) is recognized by a State agency, a tribal 
                organization, or a national organization that serves as 
                a peer review panel on the standards and procedures of 
                public and private child care or school accrediting 
                bodies; and
                    (B) accredits a facility or credentials an 
                individual to provide child care on the basis of--
                            (i) an accreditation or credentialing 
                        instrument based on peer-validated research;
                            (ii) compliance with applicable State and 
                        local licensing requirements, or standards 
                        described in section 658E(c)(2)(E)(ii) of the 
                        Child Care and Development Block Grant Act (42 
                        U.S.C. 9858c(c)(2)(E)(ii)), as appropriate, for 
                        the facility or individual;
                            (iii) outside monitoring of the facility or 
                        individual; and
                            (iv) criteria that provide assurances of--
                                    (I) compliance with age-appropriate 
                                health and safety standards at the 
                                facility or by the individual;
                                    (II) use of developmentally 
                                appropriate educational activities, as 
                                an integral part of the child care 
                                program carried out at the facility or 
                                by the individual; and
                                    (III) use of ongoing staff 
                                development or training activities for 
                                the staff of the facility or the 
                                individual, including related skills-
                                based testing.
            (3) Credentialed child care professional.--The term 
        ``credentialed child care professional'' means--
                    (A) an individual who--
                            (i) is credentialed, by a child care 
                        credentialing or accreditation entity 
                        recognized by a State or a national 
                        organization described in paragraph (2)(A), to 
                        provide child care (except children who a 
                        tribal organization elects to serve through an 
                        individual described in subparagraph (B)); or
                            (ii) successfully completes a 4-year or 
                        graduate degree in a relevant academic field 
                        (such as early childhood education, education, 
                        or recreation services);
                    (B) an individual who is credentialed, by a child 
                care credentialing or accreditation entity recognized 
                by a tribal organization, to provide child care for 
                children served by the tribal organization; or
                    (C) an individual certified by the Armed Forces of 
                the United States to provide child care as a family 
                child care provider (as defined in section 658P of the 
                Child Care and Development Block Grant Act of 1990 (42 
                U.S.C. 9858n)) in military family housing.
            (4) State; tribal organization.--The terms ``State'' and 
        ``tribal organization'' have the meaning given the term in 
        section 658P of the Child Care and Development Block Grant Act 
        (42 U.S.C. 9858n).

            TITLE I--TAX BENEFITS FOR FAMILIES WITH CHILDREN

SEC. 101. EXPANSION OF DEPENDENT CARE TAX CREDIT.

    (a) Dollar Limit on Creditable Employment-Related Expenses 
Increased.--Section 21(c) of the Internal Revenue Code of 1986 
(relating to dollar limit on amount creditable) is amended--
            (1) by striking ``$2,400'' in paragraph (1) and inserting 
        ``$3,600'', and
            (2) by striking ``$4,800'' in paragraph (2) and inserting 
        ``$6,000''.
    (b) Percentage of Employment-Related Expenses Increased.--Section 
21(a)(2) of the Internal Revenue Code of 1986 (defining applicable 
percentage) is amended to read as follows:
            ``(2) Applicable percentage defined.--For purposes of 
        paragraph (1), the term `applicable percentage' means 40 
        percent reduced (but not below 10 percent) by 1 percentage 
        point for each $2,000 (or fraction thereof) by which the 
        taxpayers's adjusted gross income for the taxable year exceeds 
        $50,000.''.
    (c) Employment-Related Expenses Expanded To Include Transportation 
Costs and Costs of Educational Programs.--Section 21(b)(2)(A) of the 
Internal Revenue Code of 1986 (defining employment-related expenses) is 
amended--
            (1) by striking ``and'' at the end of clause (i),
            (2) by striking the period at the end of clause (ii) and 
        inserting ``(including expenses for educational activities 
        provided during such care), and'', and
            (3) by adding at the end the following:
                            ``(iii) expenses for transportation--
                                    ``(I) related to such services or 
                                care, and
                                    ``(II) provided by a person not 
                                described in subsection (e)(6).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 102. INCREASE IN CHILD TAX CREDIT.

    (a) In General.--Section 24(a) of the Internal Revenue Code of 1986 
(relating to allowance of credit) is amended by striking ``$500 ($400 
in the case of taxable years beginning in 1998)'' and inserting 
``$900''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2000.

SEC. 103. EXPANSION OF DEPENDENT CARE ASSISTANCE PROGRAM.

    (a) Dollar Limit Increased.--Section 129(a)(2)(A) of the Internal 
Revenue Code of 1986 (relating to limitation of exclusion) is amended 
to read as follows:
                    ``(A) Dollar limitation.--
                            ``(i) In general.--The amount which may be 
                        excluded under paragraph (1) for dependent care 
                        assistance with respect to dependent care 
                        services provided during a taxable year shall 
                        not exceed--
                                    ``(I) in the case of dependent care 
                                services provided for 1 qualifying 
                                individual described in section 
                                21(b)(1), $5,000, and
                                    ``(II) in the case of dependent 
                                care services provided for 2 or more 
                                qualifying individuals so described, 
                                $7,000.
                            ``(ii) Amounts for married individuals 
                        filing separate returns.--In the case of a 
                        separate return by a married individual, the 
                        amount applicable under clause (i) shall be 
                        one-half of the amount specified.''.
    (b) Payments for Infant Care, Including Stay-at-Home Care, 
Allowed.--
            (1) In general.--Section 129(e)(1) of the Internal Revenue 
        Code of 1986 (relating to definitions and special rules) is 
        amended to read as follows:
            ``(1) Dependent care assistance.--The term `dependent care 
        assistance' means--
                    ``(A) the payment of, or provision of, those 
                services which if paid for by the employee would be 
                considered employment-related expenses under section 
                21(b)(2) (relating to expenses for household and 
                dependent care services necessary for gainful 
                employment), and
                    ``(B) any payment to the employee or any individual 
                described in subsection (c)(2) from amounts contributed 
                to the employee's account during the 9-month period 
                ending with the birth of a qualifying individual 
                described in section 21(b)(1)(A), if paid during a 
                period ending 1 year after such birth.''.
            (2) Conforming amendment.--Section 125 of such Code 
        (relating to cafeteria plans) is amended by redesignating 
        subsections (h) and (i) as subsections (i) and (j) and by 
        inserting after subsection (g) the following:
    ``(h) Allowance of Carryovers of Certain Unused Dependent Care 
Assistance to Later Taxable Years.--For purposes of this title--
            ``(1) a plan or other arrangement shall not fail to be 
        treated as a cafeteria plan or flexible spending or similar 
        arrangement, and
            ``(2) no amount shall be required to be included in gross 
        income by reason of this section or any other provision of this 
        chapter,
solely because under such plan or other arrangement any dependent care 
assistance described in section 129(e)(1)(B) which is unused as of the 
close of a taxable year may be carried forward to the succeeding 
taxable year.''.
    (c) Payments to Certain Related Individuals for Routine Care 
Allowed.--Section 129(c) of the Internal Revenue Code of 1986 (relating 
to payments to related individuals) is amended by adding at the end the 
following flush sentence:
``The preceding sentence shall not apply to any amount paid or incurred 
to any individual otherwise described in paragraph (1) if such amount 
is paid or incurred for care of a qualifying individual during the 
period ending with the first day of State mandatory schooling of such 
qualifying individual.''.
    (d) Dependent Care Assistance Program for Federal Employees.--
Subpart G of part III of title 5, United States Code, is amended by 
inserting after chapter 87 the following:

            ``CHAPTER 88--DEPENDENT CARE ASSISTANCE PROGRAM

``Sec. 8801. Definitions
    ``(a) For the purpose of this chapter, `employee' means--
            ``(1) an employee as defined by section 2105 of this title;
            ``(2) a Member of Congress as defined by section 2106 of 
        this title;
            ``(3) a Congressional employee as defined by section 2107 
        of this title;
            ``(4) the President;
            ``(5) a justice or judge of the United States appointed to 
        hold office during good behavior (i) who is in regular active 
        judicial service, or (ii) who is retired from regular active 
        service under section 371(b) or 372(a) of title 28, United 
        States Code, or (iii) who has resigned the judicial office 
        under section 371(a) of title 28 with the continued right 
        during the remainder of his lifetime to receive the salary of 
        the office at the time of his resignation;
            ``(6) an individual first employed by the government of the 
        District of Columbia before October 1, 1987;
            ``(7) an individual employed by Gallaudet College;
            ``(8) an individual employed by a county committee 
        established under section 590h(b) of title 16;
            ``(9) an individual appointed to a position on the office 
        staff of a former President under section 1(b) of the Act of 
        August 25, 1958 (72 Stat. 838); and
            ``(10) an individual appointed to a position on the office 
        staff of a former President, or a former Vice President under 
        section 4 of the Presidential Transition Act of 1963, as 
        amended (78 Stat. 153), who immediately before the date of such 
        appointment was an employee as defined under any other 
        paragraph of this subsection;
but does not include--
            ``(A) an employee of a corporation supervised by the Farm 
        Credit Administration if private interests elect or appoint a 
        member of the board of directors;
            ``(B) an individual who is not a citizen or national of the 
        United States and whose permanent duty station is outside the 
        United States, unless the individual was an employee for the 
        purpose of this chapter on September 30, 1979, by reason of 
        service in an Executive agency, the United States Postal 
        Service, or the Smithsonian Institution in the area which was 
        then known as the Canal Zone; or
            ``(C) an employee excluded by regulation of the Office of 
        Personnel Management under section 8716(b) of this title.
    ``(b) For the purpose of this chapter, `dependent care assistance 
program' has the meaning given such term by section 129(d) of the 
Internal Revenue Code of 1986.
``Sec. 8802. Dependent care assistance program
    ``The Office of Personnel Management shall establish and maintain a 
dependent care assistance program for the benefit of employees.''.
    (e) Effective Date.--The amendments made by this section apply to 
taxable years beginning after December 31, 2000.

SEC. 104. MUTUALLY EXCLUSIVE USE OF DEPENDENT CARE TAX CREDIT, CHILD 
              TAX CREDIT, AND DEPENDENT CARE ASSISTANCE PROGRAM FOR 
              EACH DEPENDENT.

    (a) Election To Apply Dependent Care Tax Credit.--
            (1) In general.--Section 21 of the Internal Revenue Code of 
        1986 (relating to expenses for household and dependent care 
        services necessary for gainful employment) is amended by 
        redesignating subsection (f) as subsection (g) and by inserting 
        after subsection (e) the following:
    ``(f) Election To Have Section Apply.--
            ``(1) In general.--No credit shall be allowed under 
        subsection (a) for a taxable year with respect to any 
        qualifying individual unless the taxpayer elects to have this 
        section apply with respect to such individual for such year.
            ``(2) Coordination with child tax credit and dependent care 
        assistance exclusion.--If the taxpayer elects to apply this 
        section with respect to a qualifying individual for the taxable 
        year, such individual may not be considered--
                    ``(A) a qualifying child for purposes of section 24 
                for such year, or
                    ``(B) a qualifying individual for purposes of 
                section 129 for such year.''.
            (2) Conforming amendment.--Section 21(c) of such Code, as 
        amended by section 101(a), is amended by striking the last 
        sentence.
    (b) Election To Apply Child Tax Credit.--Section 24 of the Internal 
Revenue Code of 1986 (relating to child tax credit) is amended by 
adding at the end the following:
    ``(g) Election To Have Section Apply.--
            ``(1) In general.--No credit shall be allowed under 
        subsection (a) for a taxable year with respect to any 
        qualifying child unless the taxpayer elects to have this 
        section apply with respect to such child for such year.
            ``(2) Coordination with dependent care tax credit and 
        dependent care assistance exclusion.--If the taxpayer elects to 
        apply this section with respect to a qualifying child for the 
        taxable year, such child may not be considered a qualifying 
        individual for purposes of section 21 or 129 for such year.''.
    (c) Election To Apply Dependent Care Assistance Exclusion.--Section 
129 of the Internal Revenue Code of 1986 (dependent care assistance 
programs) is amended by adding at the end the following:
    ``(f) Election To Have Section Apply.--
            ``(1) In general.--No exclusion shall be allowed under 
        subsection (a) for a taxable year with respect to any 
        qualifying individual unless the taxpayer elects to have this 
        section apply with respect to such individual for such year.
            ``(2) Coordination with dependent care tax credit and child 
        tax credit.--If the taxpayer elects to apply this section with 
        respect to a qualifying individual for the taxable year, such 
        individual may not be considered--
                    ``(A) a qualifying individual for purposes of 
                section 21 for such year, or
                    ``(B) a qualifying child for purposes of section 24 
                for such year.''.
    (d) Effective Date.--The amendments made by this section apply to 
taxable years beginning after December 31, 2000.

SEC. 105. EXPANSION OF HOME OFFICE DEDUCTION TO INCLUDE USE OF OFFICE 
              FOR DEPENDENT CARE.

    (a) In General.--Section 280A(c)(1) of the Internal Revenue Code of 
1986 (relating to certain business use) is amended by adding at the end 
the following: ``A portion of a dwelling unit and the exclusive use of 
such portion otherwise described in this paragraph shall not fail to be 
so described if such portion is also used by the taxpayer during such 
exclusive use to care for a dependent of the taxpayer.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1999.

SEC. 106. INCLUSION OF CHILD CARE COSTS IN CHILD SUPPORT ORDERS.

    (a) In General.--Section 466(a) of the Social Security Act (42 
U.S.C. 666(a)) is amended by inserting after paragraph (19) the 
following:
            ``(20) Child care costs.--Procedures under which any child 
        support order enforced under this part shall include an 
        equitable division between the custodial and noncustodial 
        parents of any costs of providing child care services in any 
        case where the custodial parent is employed or is actively 
        seeking employment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to child support orders enforced or otherwise modified by a court 
on and after the date of enactment of this Act.

       TITLE II--ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE

       Subtitle A--Encouraging Business Involvement in Child Care

SEC. 201. ALLOWANCE OF CREDIT FOR EMPLOYER EXPENSES FOR CHILD CARE 
              ASSISTANCE.

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

``SEC. 45D. EMPLOYER-PROVIDED CHILD CARE CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, the 
employer-provided child care credit determined under this section for 
the taxable year is an amount equal to 40 percent of the qualified 
child care expenditures of the taxpayer for such taxable year.
    ``(b) Dollar Limitation.--The credit allowable under subsection (a) 
for any taxable year shall not exceed $150,000 ($250,000 in the case of 
qualified child care expenditures with respect to 3 or more qualified 
child care facilities each located in a different jurisdiction of State 
or local government).
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified child care expenditure.--The term 
        `qualified child care expenditure' means any amount paid or 
        incurred--
                    ``(A) to acquire, construct, rehabilitate, or 
                expand property--
                            ``(i) which is to be used as part of a 
                        qualified child care facility of the taxpayer,
                            ``(ii) with respect to which a deduction 
                        for depreciation (or amortization in lieu of 
                        depreciation) is allowable, and
                            ``(iii) which does not constitute part of 
                        the principal residence (within the meaning of 
                        section 121) of the taxpayer or any employee of 
                        the taxpayer,
                    ``(B) for the operating costs of a qualified child 
                care facility of the taxpayer, including costs related 
                to the training of employees, to scholarship programs, 
                and to the providing of increased compensation to 
                employees with higher levels of child care training,
                    ``(C) under a contract with a qualified child care 
                facility to provide child care services to employees of 
                the taxpayer,
                    ``(D) under a contract to provide child care 
                resource and referral services to employees of the 
                taxpayer, or
                    ``(E) for the costs of seeking accreditation from a 
                child care credentialing or accreditation entity (as 
                defined in section 2(2) of the Caring for America's 
                Children Act) with respect to a qualified child care 
                facility.
            ``(2) Qualified child care facility.--
                    ``(A) In general.--The term `qualified child care 
                facility' means a facility--
                            ``(i) the principal use of which is to 
                        provide child care assistance, and
                            ``(ii) which meets the requirements of all 
                        applicable laws and regulations of the State or 
                        local government in which it is located, 
                        including, but not limited to, the licensing of 
                        the facility as a child care facility.
                Clause (i) shall not apply to a facility which is the 
                principal residence (within the meaning of section 121) 
                of the operator of the facility.
                    ``(B) Special rules with respect to a taxpayer.--A 
                facility shall not be treated as a qualified child care 
                facility with respect to a taxpayer unless--
                            ``(i) enrollment in the facility is open to 
                        employees of the taxpayer during the taxable 
                        year,
                            ``(ii) the facility is not the principal 
                        trade or business of the taxpayer unless at 
                        least 30 percent of the enrollees of such 
                        facility are dependents of employees of the 
                        taxpayer, and
                            ``(iii) the use of such facility (or the 
                        eligibility to use such facility) does not 
                        discriminate in favor of employees of the 
                        taxpayer who are highly compensated employees 
                        (within the meaning of section 414(q)).
    ``(d) Recapture of Acquisition and Construction Credit.--
            ``(1) In general.--If, as of the close of any taxable year, 
        there is a recapture event with respect to any qualified child 
        care facility of the taxpayer, then the tax of the taxpayer 
        under this chapter for such taxable year shall be increased by 
        an amount equal to the product of--
                    ``(A) the applicable recapture percentage, and
                    ``(B) the aggregate decrease in the credits allowed 
                under section 38 for all prior taxable years which 
                would have resulted if the qualified child care 
                expenditures of the taxpayer described in subsection 
                (c)(1)(A) with respect to such facility had been zero.
            ``(2) Applicable recapture percentage.--
                    ``(A) In general.--For purposes of this subsection, 
                the applicable recapture percentage 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.    
                    ``(B) Years.--For purposes of subparagraph (A), 
                year 1 shall begin on the first day of the taxable year 
                in which the qualified child care facility is placed in 
                service by the taxpayer.
            ``(3) Recapture event defined.--For purposes of this 
        subsection, the term `recapture event' means--
                    ``(A) Cessation of operation.--The cessation of the 
                operation of the facility as a qualified child care 
                facility.
                    ``(B) Change in ownership.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the disposition of a taxpayer's 
                        interest in a qualified child care facility 
                        with respect to which the credit described in 
                        subsection (a) was allowable.
                            ``(ii) Agreement to assume recapture 
                        liability.--Clause (i) shall not apply if the 
                        person acquiring such interest in the facility 
                        agrees in writing to assume the recapture 
                        liability of the person disposing of such 
                        interest in effect immediately before such 
                        disposition. In the event of such an 
                        assumption, the person acquiring the interest 
                        in the facility shall be treated as the 
                        taxpayer for purposes of assessing any 
                        recapture liability (computed as if there had 
                        been no change in ownership).
            ``(4) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (1) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under this subsection shall not be treated as a tax 
                imposed by this chapter for purposes of determining the 
                amount of any credit under subpart A, B, or D of this 
                part.
                    ``(C) No recapture by reason of casualty loss.--The 
                increase in tax under this subsection shall not apply 
                to a cessation of operation of the facility as a 
                qualified child care facility by reason of a casualty 
                loss to the extent such loss is restored by 
                reconstruction or replacement within a reasonable 
                period established by the Secretary.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Aggregation rules.--All persons which are treated as 
        a single employer under subsections (a) and (b) of section 52 
        shall be treated as a single taxpayer.
            ``(2) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(3) Allocation in the case of partnerships or joint 
        ventures.--In the case of partnerships or joint ventures, the 
        credit shall be allocated among partners or members of the 
        joint venture under regulations prescribed by the Secretary.
    ``(f) No Double Benefit.--
            ``(1) Reduction in basis.--For purposes of this subtitle--
                    ``(A) In general.--If a credit is determined under 
                this section with respect to any property by reason of 
                expenditures described in subsection (c)(1)(A), the 
                basis of such property shall be reduced by the amount 
                of the credit so determined.
                    ``(B) Certain dispositions.--If during any taxable 
                year there is a recapture amount determined with 
                respect to any property the basis of which was reduced 
                under subparagraph (A), the basis of such property 
                (immediately before the event resulting in such 
                recapture) shall be increased by an amount equal to 
                such recapture amount. For purposes of the preceding 
                sentence, the term `recapture amount' means any 
                increase in tax (or adjustment in carrybacks or 
                carryovers) determined under subsection (d).
            ``(2) Other deductions and credits.--No deduction or credit 
        shall be allowed under any other provision of this chapter with 
        respect to the amount of the credit determined under this 
        section.
    ``(g) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2002.''
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) by striking out ``plus'' at the end of 
                paragraph (11),
                    (B) by striking out the period at the end of 
                paragraph (12), and inserting a comma and ``plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(13) the employer-provided child care credit determined 
        under section 45D.''
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

                              ``Sec. 45D. Employer-provided child care 
                                        credit.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

SEC. 202. CHARITABLE CONTRIBUTIONS OF SCIENTIFIC EQUIPMENT, COMPUTER 
              TECHNOLOGY AND EQUIPMENT, AND OTHER SERVICES TO CHILD 
              CARE PROVIDERS AND TO ELEMENTARY AND SECONDARY SCHOOLS.

    (a) Scientific Equipment.--
            (1) In general.--Subparagraph (B) of section 170(e)(4) of 
        the Internal Revenue Code of 1986 (relating to special rule for 
        contributions of scientific property used for research) is 
        amended to read as follows:
                    ``(B) Qualified research, child care, or education 
                contribution.--For purposes of this paragraph, the term 
                `qualified research, child care, or education 
                contribution' means a charitable contribution by a 
                corporation of tangible personal property described in 
                paragraph (1) of section 1221, but only if--
                            ``(i) the contribution is to--
                                    ``(I) an organization described in 
                                section 501(c)(3) and exempt from 
                                taxation under section 501(a) which is 
                                a child care facility in compliance 
                                with all applicable laws and 
                                regulations of the State or unit of 
                                local government in which such facility 
                                is located on the date of such 
                                contribution,
                                    ``(II) an organization described in 
                                section 501(c)(3) and exempt from 
                                taxation under section 501(a) which is 
                                a professional or educational support 
                                entity for such a child care facility,
                                    ``(III) an educational organization 
                                described in subsection (b)(1)(A)(ii),
                                    ``(IV) a governmental unit 
                                described in subsection (c)(1), or
                                    ``(V) an organization described in 
                                section 41(e)(6)(B),
                            ``(ii) the contribution is made not later 
                        than 3 years after the date the taxpayer 
                        acquired the property (or in the case of 
                        property constructed by the taxpayer, the date 
                        the construction of the property is 
                        substantially completed),
                            ``(iii) the property is scientific 
                        equipment or apparatus substantially all of the 
                        use of which by the donee is for--
                                    ``(I) research or experimentation 
                                (within the meaning of section 174), or 
                                for research training, in the United 
                                States in physical or biological 
                                sciences,
                                    ``(II) activities designed to 
                                enhance or support the educational or 
                                developmental achievement of children 
                                or youth, or
                                    ``(III) in the case of an 
                                organization described in subclause 
                                (I), (II), (III), or (IV) of clause 
                                (i), use within the United States for 
                                educational purposes or support 
                                activities related to the purpose or 
                                function of the organization,
                            ``(iv) the original use of the property is 
                        by donor or the donee,
                            ``(v) the property is not transferred by 
                        the donee in exchange for money, other 
                        property, or services, except for shipping, 
                        installation, and transfer costs, and
                            ``(vi) the taxpayer receives from the donee 
                        a written statement representing that its use 
                        and disposition of the property will be in 
                        accordance with the provisions of clauses (iv) 
                        and (v).''.
            (2) Conforming amendments.--
                    (A) Paragraph (4)(A) of section 170(e) of such Code 
                is amended by striking ``qualified research 
                contribution'' each place it appears and inserting 
                ``qualified research, child care, or education 
                contribution''.
                    (B) The heading for section 170(e)(4) of such Code 
                is amended by inserting ``, child care, or education'' 
                after ``research''.
    (b) Expansion of Rules Relating To Contributions of Computer 
Technology and Equipment to Certain Child Care Providers.--
            (1) In general.--Section 170(e)(6)(B)(i) of the Internal 
        Revenue Code of 1986 (defining qualified elementary or 
        secondary educational contribution) is amended by striking 
        ``or'' at the end of subclause (I), by adding ``or'' at the end 
        of subclause (II), and by inserting after subclause (II) the 
        following:
                                    ``(III) an entity described in 
                                subclause (I) or (II) of paragraph 
                                (4)(B)(i).''.
            (2) Conforming amendments.--
                    (A) Section 170(e)(6)(B)(ii) of such Code is 
                amended by striking ``2 years'' and inserting ``3 
                years''.
                    (B) Section 170(e)(6)(B)(iv) of such Code is 
                amended by striking ``grades K-12'' and inserting 
                ``grades preschool-12''.
                    (C) Section 170(e)(6) of such Code is amended by 
                striking ``qualified elementary or secondary'' each 
                place it appears and inserting ``qualified child care, 
                elementary, or secondary''.
                    (D) The heading for section 170(e)(6)(B) of such 
                Code is amended by striking ``qualified elementary or 
                secondary'' and inserting ``qualified child care, 
                elementary, or secondary''.
                    (E) The heading for section 170(e)(6) of such Code 
                is amended by striking ``elementary or secondary'' and 
                inserting ``child care or elementary or secondary''.
    (c) Donations to Charity for Refurbishing.--
            (1) Scientific equipment.--Section 170(e)(4) of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following:
                    ``(E) Donations to charity for refurbishing.--For 
                purposes of this paragraph, a charitable contribution 
                by a corporation shall be treated as a qualified 
                research, child care, or education contribution if--
                            ``(i) such contribution is a contribution 
                        of property described in subparagraph (B)(iii) 
                        to an organization described in section 
                        501(c)(3) and exempt from taxation under 
                        section 501(a),
                            ``(ii) such organization repairs and 
                        refurbishes the property and donates the 
                        property to an organization described in 
                        subparagraph (B)(i), and
                            ``(iii) the taxpayer receives from the 
                        organization to whom the taxpayer contributed 
                        the property a written statement representing 
                        that its use of the property (and any use by 
                        the organization to which it donates the 
                        property) meets the requirements of this 
                        paragraph.''.
            (2) Computer technology and equipment.--Section 170(e)(6) 
        of the Internal Revenue Code of 1986 is amended by 
        redesignating subparagraphs (E) and (F) as subparagraphs (F) 
        and (G), respectively, and by inserting after subparagraph (D) 
        the following:
                    ``(E) Donations to charity for refurbishing.--For 
                purposes of this paragraph, a charitable contribution 
                by a corporation shall be treated as a qualified child 
                care, elementary, or secondary educational contribution 
                if--
                            ``(i) such contribution is a contribution 
                        of computer technology or equipment to an 
                        organization described in section 501(c)(3) and 
                        exempt from taxation under section 501(a),
                            ``(ii) such organization repairs and 
                        refurbishes the property and donates the 
                        property to an organization described in 
                        subparagraph (B)(i), and
                            ``(iii) the taxpayer receives from the 
                        organization to whom the taxpayer contributed 
                        the property a written statement representing 
                        that its use of the property (and any use by 
                        the organization to which it donates the 
                        property) meets the requirements of this 
                        paragraph.''.
    (d) Corporate Donations of Services.--Section 170 of the Internal 
Revenue Code of 1986 is amended by redesignating subsection (m) as 
subsection (n) and by inserting after subsection (l) the following:
    ``(m) Treatment of the Donation of Certain Services.--
            ``(1) In general.--For purposes of this section, 50 percent 
        of the fair market value of charitable services contributed by 
        a corporation shall be treated as a charitable contribution.
            ``(2) Charitable services.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `charitable services' means transportation 
                services, qualified employee volunteer time, and the 
                use of facilities and equipment--
                            ``(i) provided by the taxpayer to a donee 
                        described in subsection (e)(6)(B)(i), and
                            ``(ii) for which the taxpayer receives from 
                        the donee a written statement representing that 
                        the charitable services are not in exchange for 
                        money, other property, or services.
                    ``(B) Qualified employee volunteer time.--For the 
                purpose of this subsection, the term `qualified 
                employee volunteer time' means time--
                            ``(i) volunteered to the donee by an 
                        employee of the taxpayer during the employee's 
                        normal working hours, and
                            ``(ii) the value of which is based on the 
                        usual wage rate of the employee.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

      Subtitle B--Child Care Quality Improvement Incentive Program

SEC. 211. DEFINITIONS.

    In this subtitle:
            (1) Child care provider.--The term ``child care provider'' 
        means--
                    (A) a center-based child care provider, a group 
                home child care provider, a family child care provider, 
                or other provider of non-residential child care 
                services for compensation that--
                            (i) is licensed, regulated, registered, or 
                        otherwise legally operating under State law; 
                        and
                            (ii) satisfies the State and local 
                        requirements;
                applicable to the child care services the provider 
                provides; or
                    (B) a child care provider that is 18 years of age 
                or older who provides child care services only to an 
                eligible child who is, by affinity or consanguinity, or 
                by court decree, the grandchild, great grandchild, 
                sibling, niece, or nephew of such provider, if such 
                provider does not reside in the same residence with the 
                child for whom the provider is providing care and if 
                the provider complies with any applicable requirements 
                that govern child care provided by the relative 
                involved.
            (2) Family child care provider.--The term ``family child 
        care provider'' has the meaning given the term in section 658P 
        of the Child Care and Development Block Grant Act of 1990 (42 
        U.S.C. 9858n).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.

SEC. 212. ESTABLISHMENT OF STATE PROGRAM.

    (a) In General.--The Secretary shall establish a program to award 
grants to eligible States to pay for the Federal share of the cost of 
enabling such States to carry out activities to improve the quality of 
child care for children in the States (except children who a tribal 
organization elects to serve under section 216).
    (b) Awarding of Grants.--The Secretary shall award the grants to 
the States from allotments made in accordance with section 213.
    (c) Limitation on Administrative Costs.--
            (1) In general.--The Secretary shall not use more than 5 
        percent of the amount appropriated under section 217 for a 
        fiscal year for the administrative costs associated with the 
        administration of the program under this section.
            (2) Definition.--In paragraph (1), the term 
        ``administrative costs'' shall not include the costs of 
        providing direct services.

SEC. 213. DISTRIBUTION.

    (a) Amounts Reserved.--The Secretary shall reserve not more than 
\1/2\ of 1 percent of the amount appropriated under this subtitle for 
each fiscal year for payments to Guam, American Samoa, the Virgin 
Islands of the United States, and the Commonwealth of the Northern 
Mariana Islands to be allotted in accordance with their respective 
needs.
    (b) State Allotment.--
            (1) General rule.--From the amount appropriated under 
        section 217 for each fiscal year and remaining after 
        reservations made under subsection (a), section 212(c), and 
        section 216, the Secretary shall allot to each State an amount 
        equal to the sum of--
                    (A) an amount that bears the same ratio to 50 
                percent of the remainder as the product of the young 
                child factor of the State and the allotment percentage 
                of the State bears to the sum of the corresponding 
                products for all States; and
                    (B) an amount that bears the same ratio to 50 
                percent of the remainder as the product of the school 
                lunch factor of the State and the allotment percentage 
                of the State bears to the sum of the corresponding 
                products for all States.
            (2) Minimum allotment.--The amount of an allotment awarded 
        to a State under this subsection shall not be less than an 
        amount equal to 0.75 percent of the total amount appropriated 
        for the fiscal year under section 217.
            (3) Young child factor.--The term ``young child factor'' 
        means the ratio of the number of children in the State under 5 
        years of age to the number of the children in all States as 
        provided by the most recent annual estimates of population in 
        the States by the Bureau of the Census of the Department of 
        Commerce.
            (4) School lunch factor.--The term ``school lunch factor'' 
        means the ratio of the number of children in the State who are 
        receiving free or reduced price lunches under the school lunch 
        program established under the National School Lunch Act (42 
        U.S.C. 1751 et seq.) to the number of the children in all 
        States as determined annually by the Department of Agriculture.
            (5) Allotment percentage.--
                    (A) In general.--The allotment percentage for a 
                State is determined by dividing the per capita income 
                of all individuals in the United States, by the per 
                capita income of all individuals in the State.
                    (B) Limitations.--If an allotment percentage 
                determined under subparagraph (A)--
                            (i) exceeds 1.2 percent, the allotment 
                        percentage of that State shall be considered to 
                        be 1.2 percent; and
                            (ii) is less than 0.8 percent, the 
                        allotment percentage of the State shall be 
                        considered to be 0.8 percent.
                    (C) Per capita income.--For purposes of 
                subparagraph (A), per capita income shall be--
                            (i) determined at 2-year intervals;
                            (ii) applied for the 2-year period 
                        beginning on October 1 of the first fiscal year 
                        beginning on the date the determination is 
                        made; and
                            (iii) equal to the average of the annual 
                        per capita incomes for the most recent period 
                        of 3 consecutive years for which satisfactory 
                        data are available from the Department of 
                        Commerce at the time the determination is made.
    (c) Data and Information.--The Secretary shall obtain from each 
appropriate Federal agency, the most recent data and information 
necessary to determine the allotments provided for in subsection (b).
    (d) Reallotments.--
            (1) In general.--Any portion of the allotment under 
        subsection (b) to a State that the Secretary determines is not 
        required to carry out State activities approved under section 
        214, in the period for which the allotment is made available, 
        shall be reallotted by the Secretary to other States in 
        proportion to the original allotments to the other States.
            (2) Limitations.--
                    (A) Reduction.--The amount of any reallotment to 
                which a State is entitled under paragraph (1) shall be 
                reduced to the extent that the allotment exceeds the 
                amount that the Secretary estimates will be used in the 
                State to carry out State activities approved under 
                section 214.
                    (B) Reallotments.--The amount of the reduction 
                shall be similarly reallotted among States for which no 
                reduction in an allotment or reallotment is required by 
                this subsection.
            (3) Amounts reallotted.--For purposes of any other section 
        of this subtitle, any amount reallotted to a State under this 
        subsection shall be considered to be part of the allotment made 
        under subsection (b) to the State.
    (e) Definition.--In this section, the term ``State'' includes only 
the 50 States, the District of Columbia, and the Commonwealth of Puerto 
Rico.

SEC. 214. STATE ELIGIBILITY AND APPLICATION REQUIREMENTS.

    (a) Eligibility.--To be eligible to receive a grant under this 
subtitle, a State shall certify to the Secretary that the State--
            (1) has not reduced the scope of any State child care 
        standards or requirements that were in effect on January 1, 
        1995;
            (2) has not limited the State licensing requirements with 
        respect to the types of providers that must obtain licenses in 
        order to provide child care in the State as compared to the 
        types of providers that were required to obtain the licenses on 
        January 1, 1995;
            (3) has not otherwise restricted the application of State 
        child care licensing requirements that were in effect on 
        January 1, 1995;
            (4) is in compliance with the requirements applicable to 
        the State under the Child Care and Development Block Grant Act 
        of 1990 (42 U.S.C. 9858 et seq.); and
            (5) has, with respect to the fiscal year involved, made 
        available sufficient State matching funds to draw down at least 
        80 percent of the amount awarded to the State for the preceding 
        fiscal year under a grant under section 418(a)(2) of the Social 
        Security Act (42 U.S.C. 618(a)(2)).
    (b) Federal Share.--
            (1) In general.--The Federal share of the cost of the State 
        activities approved under this section is 90 percent.
            (2) Non-federal share.--A State that receives a grant under 
        section 212 shall contribute the non-Federal share of the cost 
        in cash (which may be provided from State or local public 
        sources or through donations from private entities).
    (c) Application.--To be eligible to receive a grant under this 
subtitle, a State shall prepare and submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary shall require, including--
            (1) an assurance that the State will comply with the 
        requirements applicable to States under this subtitle; and
            (2) an assurance that the State will not use funds received 
        under the grant to supplant or replace funds used by the State 
        to improve the quality or increase the supply of child care as 
        required under section 658G of the Child Care and Development 
        Block Grant Act of 1990 (42 U.S.C. 9858e).

SEC. 215. USE OF FUNDS BY STATES.

    A State may use amounts provided under a grant awarded under this 
subtitle to the State to--
            (1) establish a subsidy program to provide funds to child 
        care providers who are credentialed in the State (as described 
        in section 2(3));
            (2) provide assistance to small businesses located in the 
        State in establishing and operating child care programs that 
        may include--
                    (A) technical assistance in the establishment of a 
                child care program;
                    (B) assistance for the start-up costs related to a 
                child care program;
                    (C) assistance for the training of child care 
                providers;
                    (D) scholarships for low-income wage earners in the 
                programs;
                    (E) assistance to enable the businesses to provide 
                services to care for sick children or to provide care 
                to school age children; or
                    (F) assistance to enable the businesses to provide 
                care for children with disabilities;
            (3) improve parental choice through consumer education 
        efforts in the State concerning child care, including the 
        expansion of resource and referral services and improvement of 
        State child care complaint systems;
            (4) establish a scholarship program for child care 
        providers to assist in meeting the educational or training 
        costs associated with accreditation of facilities or 
        credentialing of providers (as described in paragraphs (1) and 
        (3) of section 2);
            (5) expand State-based child care training and technical 
        assistance activities;
            (6) develop criteria for State recognition of entities to 
        accredit facilities, and credential child care providers, in 
        the State, as described in section 2;
            (7) provide increased rates of reimbursement under Federal 
        or State child care assistance programs for child care that is 
        provided by credentialed child care professionals or at 
        accredited child care centers;
            (8) provide differential rates of reimbursement under 
        Federal or State child care assistance programs for special 
        needs children;
            (9) purchase special equipment or supplies or otherwise 
        provide for the payment of other extraordinary expenses 
        required for the care of special needs (including disabled) 
        children and the distribution of such equipment or supplies to 
        child care providers serving special needs children;
            (10) support networks for family child care providers;
            (11) establish linkages between child care providers;
            (12) conduct background checks of child care providers; and
            (13) increase State monitoring of licensed child care 
        facilities in accordance with State law.

SEC. 216. RESERVATION.

    The Secretary shall reserve not more than 1.5 percent of the amount 
appropriated under section 217 for a fiscal year to make grants under 
this subtitle to tribal organizations submitting applications described 
in section 214(c), to be used in accordance with section 215.

SEC. 217. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this subtitle 
$200,000,000 for each of fiscal years 2000 through 2004.

 Subtitle C--Increased Enforcement of State Health and Safety Standards

SEC. 221. ENFORCEMENT OF STATE HEALTH AND SAFETY STANDARDS.

    (a) Identification of State Inspection Rate.--
            (1) In general.--Section 658E(c)(2)(G) of the Child Care 
        and Development Block Grant Act of 1990 (42 U.S.C. 
        9858c(c)(2)(G)) is amended by striking the period and inserting 
        ``, and provide the percentage of child care provider 
        inspections required under State law that were completed by the 
        State for each of the 2 preceding fiscal years.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        applies to State plans under the Child Care and Development 
        Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) on and after 
        September 1, 2000.
    (b) Increased or Decreased Allotments.--Section 658O(b) of the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m(b)) 
is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by inserting ``, subject to paragraph (5),'' after 
        ``shall''; and
            (2) by adding at the end the following:
            ``(5) Increased or decreased allotment based on state 
        inspection rate.--
                    ``(A) Increased allotment for fiscal years 2000, 
                2001, and 2002.--
                            ``(i) In general.--Subject to clause (iii), 
                        for fiscal years 2000, 2001, and 2002, the 
                        allotment determined for a State under 
                        paragraph (1) for each such fiscal year shall 
                        be increased by an amount equal to 10 percent 
                        of such allotment for the fiscal year involved 
                        with respect to any State--
                                    ``(I) that certifies to the 
                                Secretary that the State has not 
                                reduced the scope of any State child 
                                care health or safety standards or 
                                requirements that were in effect on 
                                January 1, 1995; and
                                    ``(II) that, with respect to the 
                                preceding fiscal year, had a percentage 
                                of completed child care provider 
                                inspections (as required to be reported 
                                under section 658E(c)(2)(G)) that was 
                                not less than the target inspection and 
                                enforcement percentage specified under 
                                clause (ii) for the fiscal year for 
                                which the allotment is to be paid.
                            ``(ii) Target inspection and enforcement 
                        percentage.--For purposes of clause (i)(II), 
                        the target inspection and enforcement 
                        percentage is--
                                    ``(I) for fiscal year 2000, 75 
                                percent;
                                    ``(II) for fiscal year 2001, 80 
                                percent; and
                                    ``(III) for fiscal year 2002, 100 
                                percent.
                            ``(iii) Pro rata reductions if insufficient 
                        appropriations.--The Secretary shall make pro 
                        rata reductions in the percentage increase 
                        otherwise required under clause (i) for a State 
                        allotment for a fiscal year as necessary so 
                        that the aggregate of all the allotments made 
                        under this subsection does not exceed the 
                        amount appropriated for that fiscal year under 
                        section 658B, and remaining after reservations 
                        under subsection (a).
                    ``(B) Decreased allotment for fiscal years 2001 and 
                2002.--
                            ``(i) In general.--The allotment determined 
                        for a State under paragraph (1) for each of 
                        fiscal years 2001 and 2002 shall be decreased 
                        by an amount that is not less than 2 percent of 
                        such allotment for the fiscal year involved 
                        (except that such amount shall not be more than 
                        the State's expenditures on administrative 
                        costs under this subchapter during the 
                        preceding fiscal year), with respect to any 
                        State that, with respect to the preceding 
                        fiscal year, had a percentage of completed 
                        child care provider inspections (as required to 
                        be reported under section 658E(c)(2)(G)) that 
                        was less than the minimum inspection and 
                        enforcement percentage specified under clause 
                        (ii) for the fiscal year for which the 
                        allotment is to be paid.
                            ``(ii) Minimum inspection and enforcement 
                        percentage.--For purposes of clause (i), the 
                        minimum inspection and enforcement percentage 
                        is--
                                    ``(I) for fiscal year 2001, 50 
                                percent; and
                                    ``(II) for fiscal year 2002, 75 
                                percent.
                            ``(iii) Requirement to expend state funds 
                        to replace reduction.--If the allotment 
                        determined for a State for a fiscal year is 
                        reduced by reason of clause (i), the State 
                        shall, during the immediately succeeding fiscal 
                        year, expend additional State funds under the 
                        State plan funded under this subchapter, in an 
                        amount equal to the amount of such reduction. 
                        During the succeeding fiscal year, the State 
                        shall maintain the level of services provided 
                        by the State under this subchapter during the 
                        fiscal year for which the determination is 
                        made.''.

    Subtitle D--Distribution of Information About Quality Child Care

SEC. 231. EXPANSION OF ROLE OF THE DEPARTMENT OF HEALTH AND HUMAN 
              SERVICES IN THE COLLECTION AND DISSEMINATION OF 
              INFORMATION AND TECHNOLOGY.

    (a) Provision of Information.--
            (1) In general.--The Secretary of Health and Human 
        Services, by awarding contracts to qualified entities on a 
        competitive basis, shall--
                    (A) provide technical assistance concerning the 
                importance of the high quality child care to States, 
                units of local government, private nonprofit child care 
                organizations, child care credentialing or 
                accreditation entities, child care providers, and 
                parents;
                    (B) collect and disseminate information on the 
                importance of high quality child care to States, units 
                of local government, private non-profit child care 
                organizations, child care credentialing or 
                accreditation entities, child care providers, and 
                parents, including, in partnership with the Advertising 
                Council or another professional advertising group 
                carrying out a public awareness campaign promoting 
                quality child care.
            (2) Preference.--In awarding the contracts, the Secretary 
        shall give preference to qualified entities with experience in 
        carrying out the activities described in paragraph (1).
    (b) Uniformity in Data Collection and Dissemination by National, 
State, and Local Child Care Resource and Referral Services.--The 
Secretary of Health and Human Services shall develop a mechanism, for 
use by organizations including organizations providing the resource and 
referral services described in section 658G (42 U.S.C. 9858e), for the 
collection and dissemination of statistical data on the supply and 
demand for child care on the national, State, and local levels.
    (c) Grant Program.--
            (1) In general.--The Secretary of Health and Human Services 
        shall award competitive grants to child care credentialing or 
        accreditation entities that have been providing credentialing 
        or accreditation services for child care providers for not more 
        than 10 years.
            (2) Application.--To be eligible to receive a grant under 
        this subsection, a child care credentialing or accreditation 
        entity shall prepare and submit to the Secretary an application 
        at such time, in such manner, and containing such information 
        as the Secretary shall require.
            (3) Use of funds.--Amounts provided under a grant awarded 
        under paragraph (1) shall be used by grantees to refine and 
        evaluate the procedures and methods used by such grantees in 
        accrediting facilities as accredited child care facilities or 
        credentialing individual child care providers as credentialed 
        child care professionals. Such procedures and methods shall be 
        designed to ensure that the highest quality child care is 
        provided by the accredited child care facilities and 
        credentialed child care professionals, to provide information 
        about the accreditation or credentialing process to providers, 
        and to provide subsidies to needy individuals and organizations 
        to enable such individuals and organization to participate in 
        the accreditation or credentialing process.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 2000 through 2004.

      TITLE III--EXPANDING PROFESSIONAL DEVELOPMENT OPPORTUNITIES

SEC. 301. CHILD CARE TRAINING INFRASTRUCTURE.

    (a) Definitions.--In this section:
            (1) Child care provider.--The term ``child care provider'' 
        has the meaning given the term in section 211.
            (2) Elementary school; secondary school.--The terms 
        ``elementary school'' and ``secondary school'' have the 
        meanings given the terms in section 14101 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 8801).
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (5) Training site.--The term ``training site'' means a 
        training site described in subsection (e)(1).
    (b) Grants.--
            (1) In general.--The Secretary shall make grants to 
        eligible organizations to develop and operate technology-based 
        child care training infrastructures, to facilitate--
                    (A) the accreditation of facilities as accredited 
                child care facilities and accredited family child care 
                homes;
                    (B) the credentialing of individuals as 
                credentialed child care professionals; and
                    (C) the dissemination of child care, child 
                development, and early childhood education information 
                and research to child care providers.
            (2) Organizations given priority.--In awarding grants under 
        this subsection, the Secretary shall give priority to eligible 
        national organizations that have established child care 
        training infrastructures similar in concept and purpose to 
        infrastructures described in this section.
    (c) Use of Funds.--An organization that receives a grant under 
subsection (b) shall use the funds made available through the grant 
to--
            (1) develop partnerships, to the maximum extent possible, 
        with elementary schools, secondary schools, institutions of 
        higher education, Federal, State, and local government 
        agencies, and private entities, to share equipment, technical 
        assistance, and other technological resources, for the 
        development of the infrastructure described in subsection (b);
            (2) enter into arrangements with entities for the provision 
        of sites from which the infrastructure will disseminate 
        training;
            (3) ensure the establishment of at least 2 of the training 
        sites in each State, and additional training sites based on the 
        populations and geographic considerations of States;
            (4) enter into arrangements with child care credentialing 
        or accreditation entities that are recognized (as described in 
        section 2(2)) by more than 1 State agency or tribal 
        organization, for the development of child care training to be 
        disseminated through the infrastructure;
            (5) provide, directly or through a contract (which may for 
        good cause be a sole source contract), expertise to convert 
        training courses for distance transmission, provide interactive 
        environments, and conduct registration, testing, electronic 
        storage of information, and other technology-based activities 
        to adapt and enhance training course content consistent with 
        the medium of transmission involved through the infrastructure;
            (6) provide, through a logistical scheduling mechanism, 
        equitable access to the infrastructure for all child care 
        credentialing or accreditation entities described in paragraph 
        (4) that request an opportunity to disseminate child care 
        training through the infrastructure and meet the requirements 
        of this section;
            (7) develop and implement a mechanism for participants in 
        the training to evaluate the infrastructure, including 
        providing comments on the accessibility and affordability of 
        the training, and recommendations for improvements in the 
        training;
            (8) develop and implement a monitoring system to provide 
        data on the training provided through the infrastructure, 
        including data on--
                    (A) the number of facilities and individuals 
                participating in the training;
                    (B) the number of facilities receiving 
                accreditation (including a repeat accreditation) as 
                accredited child care facilities, and individuals 
                receiving credentialing (including a repeat 
                credentialing) as credentialed child care 
                professionals, after fulfilling requirements that 
                include participation in the training;
                    (C) the number of accredited child care facilities, 
                and credentialed child care professionals, 
                participating in the training; and
                    (D) the number of sites in which the training is 
                received, analyzed--
                            (i) by State; and
                            (ii) by location in an urban, suburban, or 
                        rural area; and
            (9) establish and operate the child care training revolving 
        fund described in section 302.
    (d) Eligibility.--To be eligible to receive the grant, an 
organization shall be an organization that--
            (1) is a private, nonprofit entity that is not--
                    (A) a child care credentialing or accreditation 
                entity;
                    (B) a subsidiary or affiliate of a child care 
                credentialing or accreditation entity; or
                    (C) an entity that has a subsidiary or affiliate 
                that is a child care credentialing or accreditation 
                entity;
            (2) has experience in developing partnerships with child 
        care credentialing or accreditation entities, institutions of 
        higher education, and State and local governments, for the 
        provision of child care training;
            (3) has experience in providing and coordinating the 
        provision of child care training to family child care providers 
        and center-based child care providers;
            (4) is related to child care provider support organizations 
        in 35 or more States, through membership in a common 
        organization, affiliation, or another mechanism;
            (5) has experience in working with rural and urban child 
        care provider support organizations and child care providers; 
        and
            (6) has experience in working with national child care 
        groups and organizations, including Federal government 
        agencies, providers of child care training, child care 
        credentialing or accreditation entities, and educational 
        groups.
    (e) Application.--To be eligible to receive a grant under 
subsection (b), an organization shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require, including--
            (1) information describing, and indicating a preliminary 
        count of the number of, the sites from which the infrastructure 
        will disseminate training;
            (2) an assurance that the organization will require that--
                    (A) each child care credentialing or accreditation 
                entity that disseminates training through the 
                infrastructure will provide, during at least 60 percent 
                of the dissemination period, an opportunity for 
                participants in the training--
                            (i) to interact with an identified trainer 
                        or training leader at the training site; or
                            (ii) to elect to engage in other 
                        interactive training; and
                    (B) no child care credentialing or accreditation 
                entity may collect fees for participation in the 
                training that total more than--
                            (i) the cost to the entity for developing, 
                        conducting, and providing materials for, the 
                        training; minus
                            (ii) the amount that the entity receives 
                        under this section or from any other source to 
                        develop, conduct, and provide materials for, 
                        the training; and
            (3) information demonstrating that the organization will 
        comply with the requirements of subsection (f)(2)(A).
    (f) Development and Operation of Infrastructure.--
            (1) Contracts.--An organization that receives a grant under 
        subsection (b) may use funds made available through the grant 
        to enter into contracts, which may for good cause be sole 
        source contracts, for the development of the technological and 
        logistical aspects of the infrastructure. The organization 
        shall enter into such a contract with an entity with experience 
        in establishing technology-based interactive educational or 
        training programs.
            (2) Time lines.--
                    (A) Board, personnel, and revolving fund.--Not 
                later than 6 months after the date of receipt of the 
                grant, the organization shall--
                            (i) establish a governing board;
                            (ii) establish bylaws to ensure fair 
                        representation on the board of entities 
                        disseminating training through the 
                        infrastructure;
                            (iii) appoint a Chief Executive Project 
                        Officer to oversee the daily operation of the 
                        infrastructure; and
                            (iv) establish and operate the child care 
                        training revolving fund described in section 
                        302.
                    (B) Training sites.--
                            (i) 50 percent operational.--Not later than 
                        3 years after the date of receipt of the grant, 
                        the organization shall disseminate training at 
                        50 percent of the sites described in the 
                        information submitted under subsection (e)(1).
                            (ii) 75 percent operational.--Not later 
                        than 4 years after the date of receipt of the 
                        grant, the organization shall disseminate 
                        training at 75 percent of the sites.
                            (iii) 90 percent operational.--Not later 
                        than 5 years after the date of receipt of the 
                        grant, the organization shall disseminate 
                        training at 90 percent of the sites.
                    (C) Evaluation.--The organization shall develop and 
                implement the mechanism for conducting evaluations of 
                the infrastructure described in subsection (c)(7) not 
                later than 3 years after the date of receipt of the 
                grant.
    (g) Mandatory Participation by Federal Departments.--The Secretary 
of Health and Human Services, the Secretary of Education, and the 
Secretary of Defense shall participate in the infrastructure by 
ensuring that the training disseminated through the infrastructure 
includes training provided in accordance with curricula developed by 
their departments (or by contractors for the departments) for providers 
carrying out activities under the Head Start Act (42 U.S.C. 9831 et 
seq.), the Safe and Drug-Free Schools and Communities Act of 1994 (20 
U.S.C. 7101 et seq.), and the Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858 et seq.), and other relevant curricula 
developed by the departments (or by contractors for the departments).
    (h) Corporation.--The organization may establish a nonprofit 
corporation containing the governing board, Chief Executive Project 
Officer, and personnel, to carry out this section.
    (i) Administrative Costs.--Prior to the date on which the 
organization disseminates training at 75 percent of the sites described 
in the information submitted under subsection (e)(1), the organization 
may use not more than 25 percent of the funds made available through 
the grant to pay for the administrative costs of carrying out this 
section. Effective on that date, the organization may use not more than 
15 percent of the funds to pay for the administrative costs.
    (j) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2000 through 2005.

SEC. 302. CHILD CARE TRAINING REVOLVING FUND.

    (a) Establishment.--
            (1) In general.--The Chief Executive Project Officer shall 
        use not less than 10 percent of the funds made available 
        through a grant made under section 301 during the 5 years after 
        the date of receipt of the grant to establish and operate a 
        child care training revolving fund (referred to in this section 
        as the ``Fund'')--
                    (A) from which the Chief Executive Project Officer 
                shall make loans to eligible borrowers for the purpose 
                of enabling the persons to purchase computers, 
                satellite dishes, and other equipment that will be used 
                to disseminate training through the infrastructure 
                described in section 301; and
                    (B) into which all payments, charges, and other 
                amounts collected from loans made under subparagraph 
                (A) shall be deposited notwithstanding any other 
                provision of law.
            (2) Separate account.--The Fund shall be maintained as a 
        separate account. Any portion of the Fund that is not required 
        for expenditure shall be invested in obligations of the United 
        States or in obligations guaranteed or insured by the United 
        States.
            (3) Interest earned.--The interest earned on the 
        investments shall be credited to and form a part of the Fund.
    (b) Eligible Borrowers.--To be eligible to receive a loan under 
subsection (a), a borrower shall be a child care provider who seeks to 
receive training through the infrastructure or an entity that has 
entered into an arrangement with the Chief Executive Project Officer to 
provide a training site (as defined in section 301) for the 
infrastructure.
    (c) Application.--To be eligible to receive a loan under subsection 
(a), a borrower shall submit an application to the Chief Executive 
Project Officer at such time, in such manner, and containing such 
information as the Chief Executive Project Officer, in consultation 
with the governing board and the chief executive officer of an 
organization receiving a grant under section 301, may require. At a 
minimum, the application shall include--
            (1) an assurance that the person shall use the equipment 
        funded through the loan to receive or disseminate training 
        through the infrastructure, for such period as the Secretary 
        may by regulation prescribe; and
            (2) an assurance that the person shall permit other persons 
        to use the equipment to receive or disseminate training through 
        the infrastructure, for such period as the Secretary may by 
        regulation prescribe.
    (d) Loans.--In making loans under subsection (a), the Chief 
Executive Project Officer shall--
            (1) to the maximum extent practicable, equitably distribute 
        the loans among borrowers in the various States, and among 
        borrowers in urban, suburban, and rural areas; and
            (2) take into consideration the availability to the 
        borrowers of resources from sources other than the Fund, 
        including the availability of resources through the 
        partnerships described in section 301(c)(1).
    (e) Terms and Conditions.--
            (1) Conditions.--The Chief Executive Project Officer may 
        make a loan to a borrower under subsection (a) only if the 
        Chief Executive Project Officer determines that--
                    (A) the borrower is unable to obtain resources from 
                other sources on reasonable terms and conditions; and
                    (B) there is a reasonable prospect that the 
                borrower will repay the loan.
            (2) Terms.--A loan made under subsection (a) shall be--
                    (A) for a term that does not exceed 4 years; and
                    (B) at no interest.
            (3) Collateral.--The Chief Executive Project Officer may 
        require any borrower of a loan made under subsection (a) to 
        provide such collateral as the Chief Executive Project Officer 
        determines to be necessary to secure the loan.
            (4) Procedures and definitions.--Prior to making loans 
        under subsection (a), the Chief Executive Project Officer shall 
        establish written procedures and definitions pertaining to 
        defaults and collections of payments under the loans, which 
        shall be subject to the review and approval of the Secretary. 
        The governing board and chief executive officer of the 
        organization involved shall provide to each applicant for a 
        loan under subsection (a), at the time application for the loan 
        is made, a written copy of the procedures and definitions.
    (f) Defaults.--
            (1) Notice.--The Chief Executive Project Officer shall 
        provide the governing board and the chief executive officer of 
        the organization at regular intervals written notice of each 
        loan made under subsection (a) that is in default and the 
        status of the loan.
            (2) Action.--
                    (A) Notification.--After making reasonable efforts 
                to collect all amounts payable under a loan made under 
                subsection (a) that is in default, the Chief Executive 
                Project Officer shall notify the governing board and 
                the chief executive officer of the organization that 
                the loan is uncollectable or collectible only at an 
                unreasonable cost. The notification shall include 
                recommendations for future action to be taken by the 
                Chief Executive Project Director.
                    (B) Instructions.--On receiving the notification, 
                the governing board and the chief executive officer of 
                the organization shall advise the Chief Executive 
                Project Officer--
                            (i) to continue with its collection 
                        activities;
                            (ii) to cancel, adjust, compromise, or 
                        reduce the amount of the loan; or
                            (iii) to modify any term or condition of 
                        the loan, including any term or condition 
                        relating to the time of payment of any 
                        installment of principal, or portion of 
                        principal, that is payable under the loan.
    (g) Administration and Assistance.--
            (1) In general.--Consistent with section 301(i), the Chief 
        Executive Project Officer shall, out of funds available in the 
        Fund--
                    (A) pay expenses incurred by the Chief Executive 
                Project Officer in administering the Fund; and
                    (B) provide competent management and technical 
                assistance to borrowers of loans made under subsection 
                (a) to assist the borrowers to achieve the purposes of 
                the loans.
            (2) Assistance by the secretary.--The Secretary shall 
        provide to the chief executive officer of the organization and 
        the Chief Executive Project Officer such management and 
        technical assistance as the chief executive officer of the 
        organization and the Chief Executive Project Officer may 
        request in order to carry out the provisions of this section.
    (h) Regulations.--The Secretary may prescribe such regulations as 
may be necessary to carry out the objectives of this section, including 
regulations involving reporting and auditing.

 TITLE IV--EXPANDING YOUTH DEVELOPMENT OPPORTUNITIES DURING NON-SCHOOL 
                                 HOURS

SEC. 401. PURPOSE.

    The purpose of this title is to establish programs that provide 
care for school-age youth during non-school hours, in order to create 
activities for youth that better enable youth to develop the skills and 
competencies that are necessary to successfully transition from 
childhood to adulthood.

SEC. 402. DEFINITIONS.

    In this title:
            (1) Assistant Secretary.--The term ``Assistant Secretary'' 
        means the Assistant Secretary for Children and Families of the 
        Department of Health and Human Services.
            (2) Non-school hours program.--The term ``non-school hours 
        program'' means a program, such as a youth development program, 
        that provides care for youth during non-school hours.
            (3) Protective factors.--The term ``protective factors'' 
        means research-based factors or activities that enable youth to 
        resist high-risk behaviors that may produce negative health or 
        social outcomes.
            (4) Risk factors.--The term ``risk factors'' means 
        research-based precursors that predict an increased probability 
        of developing high-risk behavior.
            (5) Youth.--The term ``youth'' means an individual who is 
        attending an elementary or secondary school, as defined in 
        section 14101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 8801).
            (6) Youth development program.--The term ``youth 
        development program'' means a program that--
                    (A) in order to enable youth to deal successfully 
                with the challenges of adolescence and prepare the 
                youth for the independence and responsibilities of 
                being parents, workers, and citizens, helps the youth 
                to develop--
                            (i) social competencies, such as work and 
                        family life skills, problem-solving skills, and 
                        communication skills;
                            (ii) physical competencies, such as 
                        physical conditioning, endurance, and an 
                        appreciation for and strategies to achieve 
                        lifelong physical health and fitness;
                            (iii) emotional competencies, such as a 
                        sense of personal identity, self-confidence, 
                        autonomy, and the ability to resist negative 
                        peer pressure;
                            (iv) moral competencies, such as character 
                        development, personal values, ethics, and a 
                        sense of responsibility and citizenship 
                        (including participation in civic life and 
                        community service); and
                            (v) cognitive competencies, such as 
                        knowledge, reasoning ability, creativity, and a 
                        lifelong commitment to learning and 
                        achievement;
                    (B) conducts activities that (excluding academic 
                activities conducted outside the classroom and 
                tutoring) have a primarily nonacademic focus;
                    (C) employs primarily active and experimental 
                learning methods;
                    (D) builds relationships between adults who are 
                positive adult role models and youth in a non-school 
                hours program setting; and
                    (E) promotes the competencies described in 
                subparagraph (A) through group or one-to-one 
                activities, which may include activities authorized 
                under section 408(b).

SEC. 403. ESTABLISHMENT OF PROGRAM.

    (a) Grants.--The Assistant Secretary shall award grants to eligible 
States, from allotments made under section 404, to enable the eligible 
States to award grants to entities to pay for the Federal share of the 
cost of establishing quality non-school hours programs.
    (b) Federal Share.--
            (1) In general.--The Federal share of the cost described in 
        subsection (a) shall be 80 percent.
            (2) Non-federal share.--The non-Federal share of the cost 
        described in subsection (a) may be contributed in cash or in 
        kind, fairly evaluated, including facilities, equipment, or 
        services (which may be provided from State or local public 
        sources or through donations from private entities). For 
        purposes of this paragraph the term ``facilities'' includes the 
        use of facilities, but the term ``equipment'' means donated 
equipment and not the use of equipment.

SEC. 404. STATE ALLOTMENTS.

    (a) Reservation.--The Assistant Secretary shall reserve not more 
than \1/2\ of 1 percent of the amount appropriated under section 412 
for each fiscal year for payments to Guam, American Samoa, the United 
States Virgin Islands, and the Commonwealth of the Northern Mariana 
Islands, to be allotted in accordance with their respective needs for 
assistance under this title.
    (b) Allotments.--From the amount appropriated under section 412 for 
each fiscal year and remaining after amounts are reserved under 
subsection (a), the Assistant Secretary shall allot to each State that 
has an application approved under section 405, an amount determined 
under subsection (c).
    (c) Allotment Formula.--
            (1) In general.--Subject to paragraph (2), the Assistant 
        Secretary shall allot to each State an amount equal to the sum 
        of--
                    (A) an amount that bears the same ratio to 50 
                percent of the remainder described in subsection (b) as 
                the number of children and youth who are age 5 through 
                17 in the State bears to the number of such children 
                and youth in all States; and
                    (B) an amount that bears the same ratio to 50 
                percent of the remainder as the number of children and 
                youth in the State who are receiving free or reduced 
                price lunches under the school lunch program 
                established under the National School Lunch Act (42 
                U.S.C. 1751 et seq.) bears to the number of such 
                children and youth in all States.
            (2) Minimum allotment.--No State shall receive an allotment 
        under paragraph (1) for a fiscal year in an amount that is less 
        than \1/2\ of 1 percent of the total amount appropriated for 
        the fiscal year under section 412.
    (d) Data and Information.--The Assistant Secretary shall obtain 
from each appropriate Federal agency, the most recent data and 
information necessary to determine the allotments provided for in this 
section.
    (e) Reallotments.--
            (1) In general.--Any portion of the allotment to a State 
        that is not used for activities under section 408 or subsection 
        (g), in the fiscal year for which the allotment is made 
        available, shall be reallotted by the Assistant Secretary to 
        other States in proportion to the original allotments to the 
        other States.
            (2) Limitations.--
                    (A) Reduction of reallotment amount.--The amount of 
                any reallotment to which a State is entitled under 
                paragraph (1) shall be reduced to the extent that the 
                allotment exceeds the amount that the Assistant 
                Secretary estimates will be used by the State or 
                entities in the State to carry out activities under 
                section 408 or subsection (g).
                    (B) Reallotment of the reduction.--The amount of 
                any reduction under subparagraph (A) shall be 
                reallotted among all other States for which no 
                reduction in an allotment or reallotment is required by 
                this subsection.
            (3) Amounts reallotted.--For purposes of this title, any 
        amount reallotted to a State under this subsection from an 
        allotment made for a fiscal year shall be considered to be part 
        of the allotment made under subsection (b) to the State for the 
        following fiscal year.
    (f) Supplement Not Supplant.--Amounts received under this section 
shall be used to supplement and not supplant other Federal, State, and 
local public funds expended to provide non-school hours programs.
    (g) Administrative Costs.--A State that receives a grant under this 
title may use--
            (1) not more than 5 percent of the funds made available 
        through the grant to carry out training and technical 
        assistance activities under this title; and
            (2) not more than an additional 10 percent of the funds to 
        pay for other costs associated with administering activities 
        under this title.
    (h) Definition.--In this section, the term ``State'' means the 50 
States, the District of Columbia, and the Commonwealth of Puerto Rico.

SEC. 405. STATE APPLICATION.

    (a) In General.--To be eligible for a grant under this title, a 
State shall submit an application to the Assistant Secretary at such 
time, in such manner, and accompanied by such information as the 
Assistant Secretary may reasonably require.
    (b) Contents.--Each application submitted pursuant to subsection 
(a) shall contain--
            (1) such information as the Assistant Secretary determines 
        is necessary to ensure that the grant will be distributed and 
        used in accordance with this title; and
            (2) information designating administrative regions (in 
        which the administration of Federal or State programs is 
        carried out), or political subdivisions, of the State as 
        regions to which funds will be allocated under section 406.

SEC. 406. LOCAL ALLOCATIONS AND GRANTS.

    (a) Allocations.--From the funds made available to a State under 
section 404(b) for each fiscal year and not used under section 404(g), 
the State shall allocate to each region designated under section 
405(b)(2) an amount equal to the sum of--
            (1) an amount that bears the same ratio to 50 percent of 
        the remainder as the number of children and youth who are age 5 
        through 17 in the region bears to the number of such children 
        and youth in all regions of the State; and
            (2) an amount that bears the same ratio to 50 percent of 
        the remainder as the number of children and youth in the region 
        who are receiving free or reduced price lunches under the 
        school lunch program established under the National School 
        Lunch Act (42 U.S.C. 1751 et seq.) bears to the number of such 
        children and youth in all regions of the State.
    (b) Allocation Data and Information.--The State shall obtain from 
each appropriate Federal or State agency, the most recent data and 
information necessary to determine the allocations provided for in this 
section.
    (c) Reallocations.--
            (1) In general.--Any portion of the allocation to a region 
        that is not used for activities under section 408, in the 
        fiscal year for which the allocation is made available, shall 
        be reallocated by the State to other regions in proportion to 
        the original allocations.
            (2) Limitations.--
                    (A) Reduction of reallocation amount.--The amount 
                of any reallocation to which a region is entitled under 
                paragraph (1) shall be reduced to the extent that the 
                allocation exceeds the amount that the State estimates 
                will be used by entities in the region to carry out 
                activities under section 408.
                    (B) Reallocation of the reduction.--The amount of 
                any reduction under subparagraph (A) shall be 
                reallocated among other regions for which no reduction 
                in an allocation or reallocation is required by this 
                subsection.
            (3) Amounts reallocated.--For purposes of this title, any 
        amount reallocated to a region under this subsection from an 
        allocation made for a fiscal year shall be considered to be 
        part of the allocation made under subsection (a) to the region 
        for the following fiscal year.
    (d) Grants.--The State shall use the funds allocated to each region 
under subsection (a) to award grants, on a competitive basis, to 
entities in that region.
    (e) Preference.--In awarding a grant under subsection (d), the 
State shall give preference to an entity that provides an assurance 
that the entity will use the funds made available through the grant to 
carry out a non-school hours program that will--
            (1) have activities that are designed to remove barriers to 
        the availability of non-school hours child care; and
            (2) coordinate resources from public and private entities 
        to achieve a cohesive network consisting of a variety of 
        activities for youth.
    (f) Supplement Not Supplant.--Amounts received under this section 
shall be used to supplement and not supplant other Federal, State, and 
local public funds expended to provide non-school hours programs.

SEC. 407. LOCAL APPLICATION.

    (a) In General.--An entity within a region that desires to receive 
a grant under section 406 shall submit an application to the State at 
such time, in such manner, and accompanied by such information as the 
State may require.
    (b) Contents.--Each application submitted pursuant to subsection 
(a) shall contain--
            (1) a statement that demonstrates that the entity maintains 
        cooperative agreements with a broad range of community entities 
        that provide direct or indirect services to youth; and
            (2) such information as the State determines is necessary 
        to ensure that the allocation will be distributed and used in 
        accordance with this title.

SEC. 408. USE OF GRANT FUNDS.

    (a) Program Requirements.--Funds made available through a grant 
received under this title for a non-school hours program shall be used 
by an entity to pay for activities that--
            (1) meet the child care needs of working parents during 
        non-school hours, including the hours before and after school, 
        weekends, school holidays, vacation periods, and other non-
        school hours;
            (2) address at least 2 of the competencies described under 
        paragraph (6)(A) of section 402;
            (3) are designed to reduce risk factors;
            (4) are designed to increase protective factors; and
            (5) are designed to assist youth in acquiring skills and 
        competencies necessary to make a successful transition from 
        childhood to adulthood.
    (b) Authorized Activities.--Funds made available through a grant 
received under this title may be used by an entity for activities for 
youth, including activities that focus on or promote--
            (1) leadership development;
            (2) mentoring;
            (3) crime and delinquency prevention;
            (4) community service or volunteerism;
            (5) literacy;
            (6) involvement in youth groups;
            (7) sports and recreation;
            (8) peer counseling and teaching;
            (9) the arts;
            (10) character development;
            (11) prevention of violence, including domestic violence;
            (12) mediation skills training;
            (13) drug abuse prevention;
            (14) alcohol education;
            (15) parenting skills;
            (16) camping and environmental education;
            (17) ethnic or cultural enrichment; and
            (18) tutoring and academic enrichment.
    (c) Limitation.--
            (1) Low-income youth.--Each entity that receives a grant 
        under this title shall use not less than 50 percent of the 
        funds made available through the grant to subsidize the cost of 
        activities described in subsection (b) for youth who are 
        children of families that meet the income eligibility 
        guidelines for free or reduced price lunches under section 9(b) 
        of the National School Lunch Act (42 U.S.C. 1758(b)).
            (2) Information.--An entity that receives a grant under 
        this title shall be considered to be a person directly 
        connected with the administration of a Federal education 
        program for purposes of section 9(b)(2)(C)(iii)(II)(aa) of the 
        National School Lunch Act (42 U.S.C. 
        1758(b)(2)(C)(iii)(II)(aa)). A school serving youth who are 
        receiving services under this title from the entity shall 
        provide information to the entity on the income eligibility 
        status of the youth who are children described in section 
        9(b)(2)(C)(iv) of such Act (42 U.S.C. 1758(b)(2)(C)(iv)), in 
        accordance with that section, to enable the entity to meet the 
        requirements of paragraph (1).

SEC. 409. FEDERAL ADMINISTRATION; DUTIES OF THE ASSISTANT SECRETARY.

    (a) Monitoring and Evaluation.--The Assistant Secretary shall 
develop and establish a system for monitoring and evaluating the 
effectiveness of activities funded under this title.
    (b) Coordination.--The Assistant Secretary shall consult with the 
heads of appropriate Federal agencies, including the Administrator of 
the Office of Juvenile Justice and Delinquency Prevention, and other 
Federal officers carrying out Federal non-school hours programs, to 
ensure effective coordination of activities funded under this title 
with other Federal programs serving youth and families.
    (c) Training and Technical Assistance.--The Assistant Secretary 
shall develop and establish a system for providing training and 
technical assistance to States and local entities to increase their 
capacity to provide quality non-school hours programs.
    (d) Noncompliance.--If the Assistant Secretary determines, based on 
a review of the annual reports, audits, or other documentation required 
under this title, that a State or an entity that receives a grant under 
this title is not complying with the requirements of this title, the 
Assistant Secretary shall--
            (1) inform the State or entity of the deficiencies that 
        need correction;
            (2) provide appropriate training and technical assistance 
        designed to correct the deficiencies and ensure compliance with 
        the requirements; and
            (3) initiate actions to terminate funding to the State or 
        an entity under this title if, after a reasonable period of 
        time, the State or entity has not made substantial efforts to 
        correct the deficiencies and comply with the requirements.

SEC. 410. STATE ADMINISTRATION; DUTIES OF THE STATES.

    (a) Designation of State Entity.--In order for a State to receive a 
grant under this title, the Governor of the State shall establish or 
designate an entity to administer the activities carried out in the 
State under this title.
    (b) Youth Development Input.--The State shall establish a mechanism 
to regularly receive advice and input from a representative mix of 
individuals and organizations that provide services under this title to 
youth, or receive services under this title, to improve the 
effectiveness and increase coordination of non-school hours programs 
under this title in the State.
    (c) Review and Compliance.--
            (1) Monitoring operations.--The State shall have primary 
        responsibility for ensuring that the grant is administered in 
        compliance with this title.
            (2) Technical assistance.--The State shall provide 
        technical assistance related to the development and 
        implementation of non-school hours programs receiving grants 
        under this title.
            (3) Noncompliance.--If the State determines, based on a 
        review of the annual reports, audits, or other documentation 
        required under this title, that an entity carrying out an 
        activity funded by this title is not complying with the 
        requirements of this title, the State shall--
                    (A) inform the entity of the deficiencies that need 
                correction;
                    (B) provide appropriate training and technical 
                assistance designed to correct the deficiencies and 
                ensure compliance with the requirements; and
                    (C) initiate actions to terminate funding to the 
                entity under this title if, after a reasonable period 
                of time, the entity has not made substantial efforts to 
                correct the deficiencies and comply with the 
                requirements.
    (d) Annual Report and Audit.--
            (1) In general.--Each State shall, not later than 120 days 
        after the end of each fiscal year of the State, prepare and 
        submit to the Assistant Secretary an annual report, in such 
        manner and containing such information as the Assistant 
        Secretary may reasonably require to determine compliance with 
        this title.
            (2) Contents.--The report described in paragraph (1) shall 
        include--
                    (A) information on the activities funded in the 
                State under this title during the fiscal year; and
                    (B) the extent to which the activities funded in 
                the State have helped youth develop the competencies 
                described in paragraph (6) of section 402.
            (3) Audit.--Together with each report submitted under this 
        section, the State shall submit the findings of an independent 
        audit conducted in accordance with chapter 75 of title 31, 
        United States Code, concerning such activities.

SEC. 411. COORDINATION WITH OTHER PROGRAMS.

    Activities that receive funding under this title shall be 
coordinated with programs and activities that receive funding under the 
Safe and Drug-Free Schools and Communities Act of 1994 (20 U.S.C. 7101 
et seq.) or the 21st Century Community Learning Centers Act (20 U.S.C. 
8241 et seq.).

SEC. 412. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to carry 
out this title--
            (1) $500,000,000 for fiscal year 2000;
            (2) $600,000,000 for fiscal year 2001;
            (3) $700,000,000 for fiscal year 2002;
            (4) $800,000,000 for fiscal year 2003; and
            (5) $1,000,000,000 for fiscal year 2004.
    (b) Availability of Funds.--Subject to sections 404(e) and 406(c), 
no State or entity that receives funds during a fiscal year may expend 
the funds after the end of the fiscal year.

               TITLE V--CHILD CARE IN FEDERAL FACILITIES

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Federal Employees Child Care 
Act''.

SEC. 502. DEFINITIONS.

    In this title (except as otherwise provided in section 505):
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
            (2) Child care accreditation entity.--The term ``child care 
        accreditation entity'' means a nonprofit private organization 
        or public agency that--
                    (A) is recognized by a State agency or by a 
                national organization that serves as a peer review 
                panel on the standards and procedures of public and 
                private child care or school accrediting bodies; and
                    (B) accredits a facility to provide child care on 
                the basis of--
                            (i) an accreditation or credentialing 
                        instrument based on peer-validated research;
                            (ii) compliance with applicable State or 
                        local licensing requirements, as appropriate, 
                        for the facility;
                            (iii) outside monitoring of the facility; 
                        and
                            (iv) criteria that provide assurances of--
                                    (I) use of developmentally 
                                appropriate health and safety standards 
                                at the facility;
                                    (II) use of developmentally 
                                appropriate educational activities, as 
                                an integral part of the child care 
                                program carried out at the facility; 
                                and
                                    (III) use of ongoing staff 
                                development or training activities for 
                                the staff of the facility, including 
                                related skills-based testing.
            (3) Entity sponsoring a child care facility.--The term 
        ``entity sponsoring a child care facility'' means a Federal 
        agency that operates, or an entity that enters into a contract 
        or licensing agreement with a Federal agency to operate, a 
        child care facility primarily for the use of Federal employees.
            (4) Executive agency.--The term ``Executive agency'' has 
        the meaning given the term in section 105 of title 5, United 
        States Code, except that the term--
                    (A) does not include the Department of Defense and 
                the Coast Guard; and
                    (B) includes the General Services Administration, 
                with respect to the administration of a facility 
                described in paragraph (5)(B).
            (5) Executive facility.--The term ``executive facility''--
                    (A) means a facility that is owned or leased by an 
                Executive agency; and
                    (B) includes a facility that is owned or leased by 
                the General Services Administration on behalf of a 
                judicial office.
            (6) Federal agency.--The term ``Federal agency'' means an 
        Executive agency, a legislative office, or a judicial office.
            (7) Judicial facility.--The term ``judicial facility'' 
        means a facility that is owned or leased by a judicial office 
        (other than a facility that is also a facility described in 
        paragraph (5)(B)).
            (8) Judicial office.--The term ``judicial office'' means an 
        entity of the judicial branch of the Federal Government.
            (9) Legislative facility.--The term ``legislative 
        facility'' means a facility that is owned or leased by a 
        legislative office.
            (10) Legislative office.--The term ``legislative office'' 
        means an entity of the legislative branch of the Federal 
        Government.
            (11) State.--The term ``State'' has the meaning given the 
        term in section 658P of the Child Care and Development Block 
        Grant Act of 1990 (42 U.S.C. 9858n).

SEC. 503. PROVIDING QUALITY CHILD CARE IN FEDERAL FACILITIES.

    (a) Executive Facilities.--
            (1) State and local licensing requirements.--
                    (A) In general.--Any entity sponsoring a child care 
                facility in an executive facility shall--
                            (i) comply with child care standards 
                        described in paragraph (2) that are no less 
                        stringent than applicable State or local 
                        licensing requirements that are related to the 
                        provision of child care in the State or 
                        locality involved; or
                            (ii) obtain the applicable State or local 
                        licenses, as appropriate, for the facility.
                    (B) Compliance.--Not later than 6 months after the 
                date of enactment of this Act--
                            (i) the entity shall comply, or make 
                        substantial progress (as determined by the 
                        Administrator) toward complying, with 
                        subparagraph (A); and
                            (ii) any contract or licensing agreement 
                        used by an Executive agency for the provision 
                        of child care services in the child care 
                        facility shall include a condition that the 
                        child care be provided by an entity that 
                        complies with the standards described in 
                        subparagraph (A)(i) or obtains the licenses 
                        described in subparagraph (A)(ii).
            (2) Health, safety, and facility standards.--The 
        Administrator shall by regulation establish standards relating 
        to health, safety, facilities, facility design, and other 
        aspects of child care that the Administrator determines to be 
        appropriate for child care in executive facilities, and require 
        child care facilities, and entities sponsoring child care 
        facilities, in executive facilities to comply with the 
        standards. The standards shall include requirements that child 
        care facilities be inspected for, and be free of, lead hazards.
            (3) Accreditation standards.--
                    (A) In general.--The Administrator shall issue 
                regulations requiring, to the maximum extent possible, 
                any entity sponsoring an eligible child care facility 
                (as defined by the Administrator) in an executive 
                facility to comply with standards of a child care 
                accreditation entity.
                    (B) Compliance.--The regulations shall require 
                that, not later than 3 years after the date of 
                enactment of this Act--
                            (i) the entity shall comply, or make 
                        substantial progress (as determined by the 
                        Administrator) toward complying, with the 
                        standards; and
                            (ii) any contract or licensing agreement 
                        used by an Executive agency for the provision 
                        of child care services in the child care 
                        facility shall include a condition that the 
                        child care be provided by an entity that 
                        complies with the standards.
            (4) Evaluation and compliance.--
                    (A) In general.--The Administrator shall evaluate 
                the compliance, with the requirements of paragraph (1) 
                and the regulations issued pursuant to paragraphs (2) 
                and (3), as appropriate, of child care facilities, and 
                entities sponsoring child care facilities, in executive 
                facilities. The Administrator may conduct the 
                evaluation of such a child care facility or entity 
                directly, or through an agreement with another Federal 
                agency or private entity, other than the Federal agency 
                for which the child care facility is providing 
                services. If the Administrator determines, on the basis 
                of such an evaluation, that the child care facility or 
                entity is not in compliance with the requirements, the 
                Administrator shall notify the Executive agency.
                    (B) Effect of noncompliance.--On receipt of the 
                notification of noncompliance issued by the 
                Administrator, the head of the Executive agency shall--
                            (i) if the entity operating the child care 
                        facility is the agency--
                                    (I) not later than 2 business days 
                                after the date of receipt of the 
                                notification, correct any deficiencies 
                                that are determined by the 
                                Administrator to be life threatening or 
                                to present a risk of serious bodily 
                                harm;
                                    (II) not later than 4 months after 
                                the date of receipt of the 
                                notification, develop and provide to 
                                the Administrator a plan to correct any 
                                other deficiencies in the operation of 
                                the facility and bring the facility and 
                                entity into compliance with the 
                                requirements;
                                    (III) provide the parents of the 
                                children receiving child care services 
                                at the child care facility and 
                                employees of the facility with a 
                                notification detailing the deficiencies 
                                described in subclauses (I) and (II) 
                                and actions that will be taken to 
                                correct the deficiencies, and post a 
                                copy of the notification in a 
                                conspicuous place in the facility for 5 
                                working days or until the deficiencies 
                                are corrected, whichever is later;
                                    (IV) bring the child care facility 
                                and entity into compliance with 
the requirements and certify to the Administrator that the facility and 
entity are in compliance, based on an onsite evaluation of the facility 
conducted by an individual with expertise in child care health and 
safety; and
                                    (V) in the event that deficiencies 
                                determined by the Administrator to be 
                                life threatening or to present a risk 
                                of serious bodily harm cannot be 
                                corrected within 2 business days after 
                                the date of receipt of the 
                                notification, close the child care 
                                facility, or the affected portion of 
                                the facility, until the deficiencies 
                                are corrected and notify the 
                                Administrator of the closure; and
                            (ii) if the entity operating the child care 
                        facility is a contractor or licensee of the 
                        Executive agency--
                                    (I) require the contractor or 
                                licensee, not later than 2 business 
                                days after the date of receipt of the 
                                notification, to correct any 
                                deficiencies that are determined by the 
                                Administrator to be life threatening or 
                                to present a risk of serious bodily 
                                harm;
                                    (II) require the contractor or 
                                licensee, not later than 4 months after 
                                the date of receipt of the 
                                notification, to develop and provide to 
                                the head of the agency a plan to 
                                correct any other deficiencies in the 
                                operation of the child care facility 
                                and bring the facility and entity into 
                                compliance with the requirements;
                                    (III) require the contractor or 
                                licensee to provide the parents of the 
                                children receiving child care services 
                                at the child care facility and 
                                employees of the facility with a 
                                notification detailing the deficiencies 
                                described in subclauses (I) and (II) 
                                and actions that will be taken to 
                                correct the deficiencies, and to post a 
                                copy of the notification in a 
                                conspicuous place in the facility for 5 
                                working days or until the deficiencies 
                                are corrected, whichever is later;
                                    (IV) require the contractor or 
                                licensee to bring the child care 
                                facility and entity into compliance 
                                with the requirements and certify to 
                                the head of the agency that the 
                                facility and entity are in compliance, 
                                based on an onsite evaluation of the 
                                facility conducted by an independent 
                                entity with expertise in child care 
                                health and safety; and
                                    (V) in the event that deficiencies 
                                determined by the Administrator to be 
                                life threatening or to present a risk 
                                of serious bodily harm cannot be 
                                corrected within 2 business days after 
                                the date of receipt of the 
                                notification, close the child care 
                                facility, or the affected portion of 
                                the facility, until the deficiencies 
                                are corrected and notify the 
                                Administrator of the closure, which 
                                closure may be grounds for the 
                                immediate termination or suspension of 
                                the contract or license of the 
                                contractor or licensee.
                    (C) Cost reimbursement.--The Executive agency shall 
                reimburse the Administrator for the costs of carrying 
                out subparagraph (A) for child care facilities located 
                in an executive facility other than an executive 
                facility of the General Services Administration. If an 
                entity is sponsoring a child care facility for 2 or 
                more Executive agencies, the Administrator shall 
                allocate the reimbursement costs with respect to the 
                entity among the agencies in a fair and equitable 
                manner, based on the extent to which each agency is 
                eligible to place children in the facility.
            (5) Disclosure of prior violations to parents and facility 
        employees.--
                    (A) In general.--The Administrator shall issue 
                regulations that require that each entity sponsoring a 
                child care facility in an executive facility, upon 
                receipt by the child care facility or the entity (as 
                applicable) of a request by any individual who is--
                            (i) a parent of any child enrolled at the 
                        facility;
                            (ii) a parent of a child for whom an 
                        application has been submitted to enroll at the 
                        facility; or
                            (iii) an employee of the facility;
                shall provide to the individual the copies and 
                description described in subparagraph (B).
                    (B) Copies and description.--The entity shall 
                provide--
                            (i) copies of all notifications of 
                        deficiencies that have been provided in the 
                        past with respect to the facility under clause 
                        (i)(III) or (ii)(III), as applicable, of 
                        paragraph (4)(B); and
                            (ii) a description of the actions that were 
                        taken to correct the deficiencies.
    (b) Legislative Facilities.--
            (1) Accreditation.--The Chief Administrative Officer of the 
        House of Representatives, the Librarian of Congress, and the 
        head of a designated entity in the Senate shall ensure that, 
        not later than 1 year after the date of enactment of this Act, 
        the corresponding child care facility obtains accreditation by 
        a child care accreditation entity, in accordance with the 
        accreditation standards of the entity.
            (2) Regulations.--
                    (A) In general.--If the corresponding child care 
                facility does not maintain accreditation status with a 
                child care accreditation entity, the Chief 
                Administrative Officer of the House of Representatives, 
                the Librarian of Congress, or the head of the 
                designated entity in the Senate shall issue regulations 
                governing the operation of the corresponding child care 
                facility, to ensure the safety and quality of care of 
                children placed in the facility. The regulations shall 
                be no less stringent in content and effect than the 
                requirements of subsection (a)(1) and the regulations 
                issued by the Administrator under paragraphs (2) and 
                (3) of subsection (a), except to the extent that 
                appropriate administrative officers make the 
                determination described in subparagraph (B).
                    (B) Modification more effective.--The determination 
                referred to in subparagraph (A) is a determination, for 
                good cause shown and stated together with the 
                regulations, that a modification of the regulations 
                would be more effective for the implementation of the 
                requirements and standards described in subsection (a) 
                for the corresponding child care facilities, and 
                entities sponsoring the corresponding child care 
                facilities, in legislative facilities.
            (3) Corresponding child care facility.--In this subsection, 
        the term ``corresponding child care facility'', used with 
        respect to the Chief Administrative Officer, the Librarian, or 
        the head of a designated entity described in paragraph (1), 
        means a child care facility operated by, or under a contract or 
        licensing agreement with, an office of the House of 
        Representatives, the Library of Congress, or an office of the 
        Senate, respectively.
    (c) Judicial Branch Standards and Compliance.--
            (1) State and local licensing requirements health, safety, 
        and facility standards, and accreditation standards.--The 
        Director of the Administrative Office of the United States 
        Courts shall issue regulations for child care facilities, and 
        entities sponsoring child care facilities, in judicial 
        facilities, which shall be no less stringent in content and 
        effect than the requirements of subsection (a)(1) and the 
        regulations issued by the Administrator under paragraphs (2) 
        and (3) of subsection (a), except to the extent that the 
        Director may determine, for good cause shown and stated 
        together with the regulations, that a modification of such 
        regulations would be more effective for the implementation of 
        the requirements and standards described in paragraphs (1), 
        (2), and (3) of subsection (a) for child care facilities, and 
        entities sponsoring child care facilities, in judicial 
        facilities.
            (2) Evaluation and compliance.--
                    (A) Director of the administrative office of the 
                united states courts.--The Director of the 
                Administrative Office of the United States Courts shall 
                have the same authorities and duties with respect to 
                the evaluation of, compliance of, and cost 
                reimbursement for child care facilities, and entities 
                sponsoring child care facilities, in judicial 
                facilities as the Administrator has under subsection 
                (a)(4) with respect to the evaluation of, compliance 
                of, and cost reimbursement for such centers and 
                entities sponsoring such centers, in executive 
                facilities.
                    (B) Head of a judicial office.--The head of a 
                judicial office shall have the same authorities and 
                duties with respect to the compliance of and cost 
                reimbursement for child care facilities, and entities 
                sponsoring child care facilities, in judicial 
                facilities as the head of an Executive agency has under 
                subsection (a)(4) with respect to the compliance of and 
                cost reimbursement for such centers and entities 
                sponsoring such centers, in executive facilities.
    (d) Application.--Notwithstanding any other provision of this 
section, if 8 or more child care facilities are sponsored in facilities 
owned or leased by an Executive agency, the Administrator shall 
delegate to the head of the agency the evaluation and compliance 
responsibilities assigned to the Administrator under subsection 
(a)(4)(A).
    (e) Technical Assistance, Studies, and Reviews.--The Administrator 
may provide technical assistance, and conduct and provide the results 
of studies and reviews, for Executive agencies, and entities sponsoring 
child care facilities in executive facilities, on a reimbursable basis, 
in order to assist the entities in complying with this section. The 
Chief Administrative Officer of the House of Representatives, the 
Librarian of Congress, the head of the designated Senate entity 
described in subsection (b), and the Director of the Administrative 
Office of the United States Courts, may provide technical assistance, 
and conduct and provide the results of studies and reviews, or request 
that the Administrator provide technical assistance, and conduct and 
provide the results of studies and reviews, for legislative offices and 
judicial offices, as appropriate, and entities operating child care 
facilities in legislative facilities or judicial facilities, as 
appropriate, on a reimbursable basis, in order to assist the entities 
in complying with this section.
    (f) Interagency Council.--
            (1) Composition.--The Administrator shall establish an 
        interagency council, comprised of--
                    (A) representatives of all Executive agencies 
                described in subsection (d) and other Executive 
                agencies at the election of the heads of the agencies;
                    (B) a representative of the Chief Administrative 
                Officer of the House of Representatives, at the 
                election of the Chief Administrative Officer;
                    (C) a representative of the head of the designated 
                Senate entity described in subsection (b), at the 
                election of the head of the entity;
                    (D) a representative of the Librarian of Congress, 
                at the election of the Librarian; and
                    (E) a representative of the Director of the 
                Administrative Office of the United States Courts, at 
                the election of the Director.
            (2) Functions.--The council shall facilitate cooperation 
        and sharing of best practices, and develop and coordinate 
        policy, regarding the provision of child care, including the 
        provision of areas for nursing mothers and other lactation 
        support facilities and services, in the Federal Government.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $900,000 for fiscal year 2000 
and such sums as may be necessary for each subsequent fiscal year.

SEC. 504. FEDERAL CHILD CARE EVALUATION.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator and the Director of the Office of 
Personnel Management shall jointly prepare and submit to Congress a 
report that evaluates child care provided by entities sponsoring child 
care facilities in executive facilities, legislative facilities, or 
judicial facilities.
    (b) Contents.--The evaluation shall contain, at a minimum--
            (1) information on the number of children receiving child 
        care described in subsection (a), analyzed by age, including 
        information on the number of those children who are age 6 
        through 12;
            (2) information on the number of families not using child 
        care described in subsection (a) because of the cost of the 
        child care; and
            (3) recommendations for improving the quality and cost 
        effectiveness of child care described in subsection (a), 
        including recommendations of options for creating an optimal 
        organizational structure and using best practices for the 
        delivery of the child care.

SEC. 505. CHILD CARE SERVICES FOR FEDERAL EMPLOYEES.

    (a) In General.--In addition to services authorized to be provided 
by an agency of the United States pursuant to section 616 of the Act of 
December 22, 1987 (40 U.S.C. 490b), an Executive agency that provides 
or proposes to provide child care services for Federal employees may 
use agency funds to provide the child care services, in a facility that 
is owned or leased by an Executive agency, or through a contractor, for 
civilian employees of the agency.
    (b) Affordability.--Funds so used with respect to any such facility 
or contractor shall be applied to improve the affordability of child 
care for lower income Federal employees using or seeking to use the 
child care services offered by the facility or contractor.
    (c) Regulations.--The Administrator, after consultation with the 
Director of the Office of Personnel Management, shall, within 180 days 
after the date of enactment of this Act, issue regulations necessary to 
carry out this section.
    (d) Definition.--For purposes of this section, the term ``Executive 
agency'' has the meaning given the term by section 105 of title 5, 
United States Code, but does not include the General Accounting Office.

SEC. 506. MISCELLANEOUS PROVISIONS RELATING TO CHILD CARE PROVIDED BY 
              FEDERAL AGENCIES.

    (a) Availability of Federal Child Care Centers for Onsite 
Contractors; Percentage Goal.--Section 616 of the Act of December 22, 
1987 (40 U.S.C. 490b) is amended--
            (1) in subsection (a)--
                    (A) by striking ``officer or agency of the United 
                States'' and inserting ``Federal agency or officer of a 
                Federal agency''; and
                    (B) by striking paragraphs (2) and (3) and 
                inserting the following:
            ``(2) the officer or agency determines that the space will 
        be used to provide child care and related services to--
                    ``(A) children of Federal employees or onsite 
                Federal contractors; or
                    ``(B) dependent children who live with Federal 
                employees or onsite Federal contractors; and
            ``(3) the officer or agency determines that the individual 
        or entity will give priority for available child care and 
        related services in the space to Federal employees and onsite 
        Federal contractors.''; and
            (2) by adding at the end the following:
    ``(e)(1)(A) The Administrator of General Services shall confirm 
that at least 50 percent of aggregate enrollment in Federal child care 
centers governmentwide are children of Federal employees or onsite 
Federal contractors, or dependent children who live with Federal 
employees or onsite Federal contractors.
    ``(B) Each provider of child care services at an individual Federal 
child care center shall maintain 50 percent of the enrollment at the 
center of children described under subparagraph (A) as a goal for 
enrollment at the center.
    ``(C)(i) If enrollment at a center does not meet the percentage 
goal under subparagraph (B), the provider shall develop and implement a 
business plan with the sponsoring Federal agency to achieve the goal 
within a reasonable timeframe.
    ``(ii) The plan shall be approved by the Administrator of General 
Services based on--
            ``(I) compliance of the plan with standards established by 
        the Administrator; and
            ``(II) the effect of the plan on achieving the aggregate 
        Federal enrollment percentage goal.
    ``(2) The Administrator of General Services Administration may 
enter into public-private partnerships or contracts with 
nongovernmental entities to increase the capacity, quality, 
affordability, or range of child care and related services and may, on 
a demonstration basis, waive subsection (a)(3) and paragraph (1) of 
this subsection.''.
    (b) Payment of Costs of Training Programs.--Section 616(b)(3) of 
such Act (40 U.S.C. 490b(b)(3)) is amended to read as follows:
    ``(3) If a Federal agency has a child care facility in a Federal 
space, or is a sponsoring agency for a child care facility in a Federal 
space, the agency or the General Services Administration may pay 
accreditation fees, including renewal fees, for that center to be 
accredited. Any Federal agency that provides or proposes to provide 
child care services for children referred to in subsection (a)(2), may 
reimburse any Federal employee or any person employed to provide the 
services for the costs of training programs, conferences, and meetings 
and related travel, transportation, and subsistence expenses incurred 
in connection with those activities. Any per diem allowance made under 
this section shall not exceed the rate specified in regulations 
prescribed under section 5707 of title 5, United States Code.''.
    (c) Technical and Conforming Amendments.--Section 616(c) of such 
Act (40 U.S.C. 490b(c)) is amended--
            (1) by inserting ``Federal'' before ``child care centers''; 
        and
            (2) by striking ``Federal workers'' and inserting ``Federal 
        employees''.
    (d) Provision of Child Care by Private Entities.--Section 616(d) of 
such Act (40 U.S.C. 490b(d)) is amended to read as follows:
    ``(d)(1) If a Federal agency has a child care facility in a Federal 
space, or is a sponsoring agency for a child care facility in a Federal 
space, the agency, the child care center board of directors, or the 
General Services Administration may enter into an agreement with 1 or 
more private entities under which the private entities would assist in 
defraying the general operating expenses of the child care providers 
including salaries and tuition assistance programs at the facility.
    ``(2)(A) Notwithstanding any other provision of law, if a Federal 
agency does not have a child care program, or if the Administrator of 
General Services has identified a need for child care for Federal 
employees at a Federal agency providing child care services that do not 
meet the requirements of subsection (a), the agency or the 
Administrator may enter into an agreement with a non-Federal, licensed, 
and accredited child care facility, or a planned child care facility 
that will become licensed and accredited, for the provision of child 
care services for children of Federal employees.
    ``(B) Before entering into an agreement, the head of the Federal 
agency shall determine that child care services to be provided through 
the agreement are more cost effectively provided through the 
arrangement than through establishment of a Federal child care 
facility.
    ``(C) The Federal agency may provide any of the services described 
in subsection (b)(3) if, in exchange for the services, the facility 
reserves child care spaces for children referred to in subsection 
(a)(2), as agreed to by the parties. The cost of any such services 
provided by a Federal agency to a Federal child care facility on behalf 
of another Federal agency shall be reimbursed by the receiving agency.
    ``(3) This subsection does not apply to residential child care 
programs.''.
    (e) Pilot Projects.--Section 616 of such Act (40 U.S.C. 490b) is 
further amended by adding at the end the following:
    ``(f)(1) Upon approval of the agency head, a Federal agency may 
conduct a pilot project not otherwise authorized by law for no more 
than 2 years to test innovative approaches to providing alternative 
forms of quality child care assistance for Federal employees. A Federal 
agency head may extend a pilot project for an additional 2-year period. 
Before any pilot project may be implemented, a determination shall be 
made by the agency head that initiating the pilot project would be more 
cost-effective than establishing a new Federal child care facility. 
Costs of any pilot project shall be paid solely by the agency 
conducting the pilot project.
    ``(2) The Administrator of General Services shall serve as an 
information clearinghouse for pilot projects initiated by other Federal 
agencies to disseminate information concerning the pilot projects to 
the other Federal agencies.
    ``(3) Within 6 months after completion of the initial 2-year pilot 
project period, a Federal agency conducting a pilot project under this 
subsection shall provide for an evaluation of the impact of the project 
on the delivery of child care services to Federal employees, and shall 
submit the results of the evaluation to the Administrator of General 
Services. The Administrator shall share the results with other Federal 
agencies.''.
    (f) Background Check.--Section 616 of such Act (40 U.S.C. 490b) is 
further amended by adding at the end the following:
    ``(g) Each Federal child care center located in a Federal space 
shall ensure that each employee of the center (including any employee 
whose employment began before the date of enactment of this subsection) 
shall undergo a criminal history background check consistent with 
section 231 of the Crime Control Act of 1990 (42 U.S.C. 13041).''.
    (g) Definitions.--Section 616 of such Act (40 U.S.C. 490b) is 
further amended by adding at the end the following:
    ``(h) In this section:
            ``(1) The term `Federal agency' has the meaning given the 
        term `Executive agency' in section 502 of the Federal Employees 
        Child Care Act.
            ``(2) The terms `Federal building' and `Federal space' have 
        the meanings given the term `executive facility' in such 
        section 502.
            ``(3) The term `Federal child care center' means a child 
        care center in an executive facility, as defined in such 
        section 502.
            ``(4) The terms `Federal contractor' and `Federal employee' 
        mean a contractor and an employee, respectively, of an 
        Executive agency, as defined in such section 502.''.

     TITLE VI--EXPANDING CHILD CARE SUBSIDY FOR LOW-INCOME FAMILIES

SEC. 601. AUTHORIZATION OF APPROPRIATIONS.

    Section 658B of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858) is amended by striking ``$1,000,000,000'' and 
inserting ``$2,000,000,000''.

SEC. 602. APPLICATION AND PLAN.

    Section 658E(c) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858c(c)) is amended--
            (1) in paragraph (2), by striking subparagraph (H) and 
        inserting the following:
                    ``(H) Provide an assurance that if the State uses 
                an automated system described in section 658K(a)(3), 
                the State will ensure that the system--
                            ``(i) if used to provide payment for child 
                        care services, operates in a manner that 
                        ensures prompt and accurate payment of child 
                        care providers; and
                            ``(ii) does not limit parental choice.'';
            (2) in paragraph (3)(D)--
                    (A) by striking ``a substantial portion'' and 
                inserting ``not less than 70 percent''; and
                    (B) by striking ``described in paragraph (2)(H)'' 
                and inserting ``receiving assistance under a State 
                program under part A of title IV of the Social Security 
                Act (42 U.S.C. 601 et seq.), families attempting to 
                transition off the assistance program through work 
                activities, and families that are at risk of becoming 
                dependent on the assistance program'';
            (3) in paragraph (4)(A)--
                    (A) by inserting ``, of the type chosen by the 
                parents of the children,'' after ``comparable child 
                care services''; and
                    (B) by adding at the end the following: ``To ensure 
                maximum parental choice, the State plan shall provide 
                that the rates for the State shall be determined under 
                separate rate schedules dependent upon--
                            ``(i) the age of the child served;
                            ``(ii) the child care setting;
                            ``(iii) the special needs of the child; and
                            ``(iv) the geographic location of the 
                        services within a State.''; and
            (4) in paragraph (5)--
                    (A) by striking ``The'' and inserting the 
                following:
                    ``(A) In general.--The''; and
                    (B) by inserting after subparagraph (A) (as 
                designated in subparagraph (A)) the following:
                    ``(B) Application of copayment.--The State plan 
                shall provide that, if the State provides to a family a 
                subsidy authorized under this subchapter that is less 
                than 85 percent of the applicable market rate 
                determined under paragraph (4) and also requires a 
                copayment from the family to meet the cost sharing 
                requirement of subparagraph (A), the State shall reduce 
                the amount of the copayment by the amount of the 
                difference between the market rate and the subsidy.''.

SEC. 603. AUTOMATED SYSTEMS.

    Section 658K(a) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858i(a)) is amended by adding at the end the 
following:
            ``(3) Automated systems.--A State that receives funds to 
        carry out this subchapter may use an automated system, 
        including an electronic benefit transfer system--
                    ``(A) for monitoring or tracking child care 
                attendance or otherwise conducting data collection 
                under this subchapter;
                    ``(B) as a means of ensuring prompt and accurate 
                payment for child care services under this subchapter; 
                or
                    ``(C) for other purposes that increase the 
                efficiency of the State in administering the funds.''.

    TITLE VII--CONSTRUCTION AND RENOVATION OF CHILD CARE FACILITIES

             Subtitle A--Community Development Block Grants

SEC. 701. USE OF COMMUNITY DEVELOPMENT BLOCK GRANTS TO ESTABLISH CHILD 
              CARE FACILITIES.

    Section 105(a) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5305(a)) is amended--
            (1) in paragraph (22), by striking ``and'' at the end;
            (2) in paragraph (23), by striking the period at the end 
        and inserting a semicolon;
            (3) in paragraph (24), by striking ``and'' at the end;
            (4) in paragraph (25), by striking the period at the end 
        and inserting ``; and''; and
            (5) by adding at the end the following:
            ``(26) the construction and renovation of child care 
        facilities.''.

        Subtitle B--Mortgage Insurance For Child Care Facilities

SEC. 711. INSURANCE FOR MORTGAGES ON NEW AND REHABILITATED CHILD CARE 
              FACILITIES.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is 
amended by adding at the end the following:

``SEC. 257. MORTGAGE INSURANCE FOR CHILD CARE FACILITIES.

    ``(a) Definitions.--In this section:
            ``(1) Child care facility.--The term `child care 
        facility'--
                    ``(A) means a public or private facility that--
                            ``(i) has as its purpose the care and 
                        development of--
                                    ``(I) children who are less than 16 
                                years of age; or
                                    ``(II) school-age children and 
                                youth during non-school hours; and
                            ``(ii) is operated in accordance with all 
                        applicable State and local laws and 
                        regulations; and
                    ``(B) does not include any facility for school-age 
                children that is primarily for use during normal school 
                hours.
            ``(2) Equipment.--The term `equipment' includes--
                    ``(A) machinery, utilities, and built-in equipment, 
                and any necessary enclosure or structure to house them; 
                and
                    ``(B) any other items necessary for the functioning 
                of a particular facility as a child care facility, 
                including necessary furniture, books, and curricular 
                and program materials.
            ``(3) First mortgage.--The term `first mortgage'--
                    ``(A) means such classes of first liens as are 
                commonly given to secure advances (including advances 
                during construction) on, or the unpaid purchase price 
                of, real estate under the laws of the State in which 
                the real estate is located, together with the credit 
                instrument or instruments (if any) secured thereby; and
                    ``(B) includes any mortgage in the form of 1 or 
                more trust mortgages or mortgage indentures or deeds of 
                trust, securing notes, bonds, or other credit 
                instruments, that, by the same instrument or by a 
                separate instrument, creates a security interest in 
                initial equipment, whether or not attached to the 
                realty.
            ``(4) Mortgage.--The term `mortgage' means a first mortgage 
        on real estate in fee simple, or on the interest of either the 
        lessor or lessee thereof under a lease having a period of not 
        less than 7 years to run beyond the maturity date of the 
        mortgage.
            ``(5) Mortgagor.--The term `mortgagor' has the meaning 
        given the term in section 207(a).
    ``(b) Insurance of Mortgages.--In order to facilitate the 
establishment and rehabilitation of child care facilities, the 
Secretary may--
            ``(1) insure a mortgage that is secured by a property or 
        project that is--
                    ``(A) a new child care facility, including a new 
                addition to an existing child care facility (regardless 
                of whether the existing facility is being 
                rehabilitated); or
                    ``(B) a substantially rehabilitated child care 
                facility, including equipment to be used in the 
                operation of the facility; and
            ``(2) make a commitment to insure any mortgage described in 
        paragraph (1) before the date of execution or disbursement of 
        the mortgage.
    ``(c) Terms and Conditions.--
            ``(1) Eligible child care facilities.--Each mortgage 
        insured under this section shall be secured by a child care 
        facility for which a certification of compliance has been 
        issued by the Secretary under section 258(c) during the 12-
        month period preceding the date on which the commitment to 
        insure the mortgage is issued under this section.
            ``(2) Approved mortgagor.--
                    ``(A) In general.--Each mortgage insured under this 
                section shall be executed by a mortgagor approved by 
                the Secretary.
                    ``(B) Regulation.--The Secretary may--
                            ``(i) require an approved mortgagor who 
                        executes a mortgage under subparagraph (A) to 
                        be regulated with respect to charges and 
                        methods of financing and, if the mortgagor is a 
                        corporate entity, with respect to capital 
                        structure and rate of return; and
                            ``(ii) as an aid to the regulation of any 
                        mortgagor under clause (i), make such contracts 
                        with and acquire for not more than $100 such 
                        stock or interest in such mortgagor as the 
                        Secretary considers to be necessary.
                    ``(C) Stock or interest.--Any stock or interest 
                purchased under subparagraph (B)(ii) shall be--
                            ``(i) paid for out of the General Insurance 
                        Fund; and
                            ``(ii) redeemed by the mortgagor at par 
                        upon the termination of all obligations of the 
                        Secretary under the insurance.
            ``(3) Principal obligation.--Each mortgage insured under 
        this section shall involve a principal obligation in an amount 
        not to exceed 90 percent of the estimated value of the property 
        or project, or 95 percent of the estimated value of the 
        property or project in the case of a mortgagor that is a 
        private nonprofit corporation or association (as defined 
        pursuant to section 221(d)(3)), including--
                    ``(A) equipment to be used in the operation of the 
                facility when the proposed improvements are completed 
                and the equipment is installed; or
                    ``(B) a solar energy system (as defined in 
                subparagraph (3) of the last paragraph of section 2(a)) 
                or residential energy conservation measures (as defined 
                in subparagraphs (A) through (G) and (I) of section 
                210(11) of the National Energy Conservation Policy 
                Act), in cases in which the Secretary determines that 
                such measures are in addition to those required under 
                the minimum property standards and will be cost-
                effective over the life of the measure.
            ``(4) Amortization and interest.--Each mortgage insured 
        under this section shall--
                    ``(A) provide for complete amortization by periodic 
                payments under such terms as the Secretary shall 
                prescribe;
                    ``(B) have a maturity date satisfactory to the 
                Secretary, but in no event longer than 25 years; and
                    ``(C) bear interest at such rate as may be agreed 
                upon by the mortgagor and the mortgagee, and the 
                Secretary shall not issue any regulations or establish 
                any terms or conditions that interfere with the ability 
                of the mortgagor and mortgagee to determine the 
                interest rate.
            ``(5) Release.--The Secretary may consent to the release of 
        a part or parts of the mortgaged property or project from the 
        lien of any mortgage insured under this section upon such terms 
        and conditions as the Secretary may prescribe.
            ``(6) Mortgage insurance terms.--Subsections (d), (e), (g), 
        (h), (i), (j), (k), (l), and (n) of section 207 apply to any 
        mortgage insured under this section, except that all references 
        in such subsections to section 207 shall be construed, for 
        purposes of mortgage insurance under this section, to refer to 
        this section.
    ``(d) Mortgage Insurance for Fire Safety Equipment Loans.--
            ``(1) Authority.--The Secretary may, upon such terms and 
        conditions as the Secretary may prescribe, make commitments to 
        insure and insure loans made by financial institutions or other 
        approved mortgagees to child care facilities to provide for the 
        purchase and installation of fire safety equipment necessary 
        for compliance with the 1967 edition of the Life Safety Code of 
        the National Fire Protection Association (or any subsequent 
        edition specified by the Secretary of Health and Human 
        Services).
            ``(2) Loan requirements.--To be eligible for insurance 
        under this subsection a loan shall--
                    ``(A) not exceed the estimate by the Secretary of 
                the reasonable cost of the equipment fully installed;
                    ``(B) bear interest at such rate as may be agreed 
                upon by the mortgagor and the mortgagee;
                    ``(C) have a maturity date satisfactory to the 
                Secretary;
                    ``(D) be made by a financial institution or other 
                mortgagee approved by the Secretary as eligible for 
                insurance under section 2 or a mortgagee approved under 
                section 203(b)(1);
                    ``(E) comply with other such terms, conditions, and 
                restrictions as the Secretary may prescribe; and
                    ``(F) be made with respect to a child care facility 
                for which a certification of compliance has been issued 
                by the Secretary under section 258(c) during the 12-
                month period preceding the date on which the commitment 
                to insure is issued under this subsection.
            ``(3) Insurance requirements.--
                    ``(A) Section 2.--Subsections (c), (d), and (h) of 
                section 2 shall apply to any loan insured under this 
                subsection, except that all references in such 
                subsections to `this section' or `this title' shall be 
                construed, for purposes of this subsection, to refer to 
                this subsection.
                    ``(B) Section 220.--Paragraphs (5), (6), (7), (9), 
                and (10) of section 220(h) shall apply to any loan 
                insured under this subsection, except that all 
                references in such paragraphs to home improvement loans 
                shall be construed, for purposes of this subsection, to 
                refer to loans under this subsection.
    ``(e) Schedules and Deadlines.--The Secretary shall establish 
schedules and deadlines for the processing and approval (or provision 
of notice of disapproval) of applications for mortgage insurance under 
this section.
    ``(f) Limitation on Insurance Authority.--
            ``(1) Termination.--No mortgage may be insured under this 
        section or section 223(h) after September 30, 2005, except 
        pursuant to a commitment to insure issued on or before such 
        date.
            ``(2) Aggregate principal amount limitation.--
                    ``(A) In general.--The aggregate principal amount 
                of mortgages for which the Secretary enters into 
                commitments to insure under this section or section 
                223(h) on or before the date described in paragraph (1) 
                may not exceed $2,000,000,000.
                    ``(B) Report.--If, on the date described in 
                paragraph (1), the aggregate insurance authority 
                provided under this paragraph has not been fully used, 
                the Secretary of the Treasury shall submit to Congress 
a report evaluating the need for continued mortgage insurance under 
this section.
    ``(g) Nondiscrimination Requirement.--
            ``(1) In general.--A child care facility receiving 
        assistance under this title may not discriminate on the basis 
        of race, color, or national origin (to the extent provided in 
        title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
        seq.)), religion (subject to subparagraph (B)), national 
        origin, sex (to the extent provided in title IX of the 
        Education Amendments of 1972 (20 U.S.C. 1681 et seq.)), or 
        disability (to the extent provided in section 504 of the 
        Rehabilitation Act of 1973 (29 U.S.C. 794)), under any program 
        or activity receiving Federal financial assistance under this 
        title.
            ``(2) Facilities of religious organizations.--The 
        prohibition with respect to religion under paragraph (1) shall 
        not apply to a child care facility that is controlled by, or 
        that is closely identified with, the tenets of a particular 
        religious organization, if the application of this paragraph 
        would not be consistent with the religious tenets of such 
        organization.
    ``(h) Liability Insurance.--A child care provider operating a child 
care facility assisted under this section or section 223(h) shall 
obtain and maintain liability insurance in such amounts and subject to 
such requirements as the Secretary considers to be appropriate.
    ``(i) Small Purpose Loans.--
            ``(1) In general.--To the extent that amounts are made 
        available pursuant to subsection (l), the Secretary shall make 
        loans, directly or indirectly, to providers of child care 
        facilities for reconstruction or renovation of such facilities, 
        in accordance with this subsection.
            ``(2) Requirements.--A loan under this subsection--
                    ``(A) may be made only for a child care facility 
                that is financially and operationally viable, as 
                determined under standards established by the 
                Secretary;
                    ``(B) may not have a term to maturity exceeding 7 
                years;
                    ``(C) shall bear interest at a rate established by 
                the Secretary; and
                    ``(D) shall be subject to such other terms and 
                conditions as the Secretary may establish by 
                regulation.
            ``(3) Aggregate loan amount.--The aggregate amount of loans 
        under this subsection to a single provider may not exceed 
        $30,000.
    ``(j) Notification.--The Secretary shall take such actions as may 
be necessary to publicize the availability of the programs for mortgage 
insurance under this section and section 223(h), and the loan program 
under subsection (i) of this section, in a manner that ensures that 
information concerning such programs will be available to child care 
providers throughout the United States.
    ``(k) Regulations.--The Secretary shall--
            ``(1) issue any regulations necessary to carry out this 
        section; and
            ``(2) in carrying out paragraph (1), consult with the 
        Secretary of Health and Human Services with respect to any 
        aspects of the regulations regarding child care facilities.
    ``(l) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $30,000,000 for fiscal year 
2001, to remain available until expended, of which not more than 10 
percent may be used for loans under subsection (i).''.

SEC. 712. INSURANCE FOR MORTGAGES FOR ACQUISITION OR REFINANCING DEBT 
              OF EXISTING CHILD CARE FACILITIES.

    (a) In General.--Section 223 of the National Housing Act (12 U.S.C. 
1715n) is amended by adding at the end the following:
    ``(h) Mortgage Insurance for Purchase or Refinancing of Existing 
Child Care Facilities.--
            ``(1) Definitions.--In this subsection, the terms that are 
        defined in section 257(a) have the same meanings as in that 
        section.
            ``(2) Authority.--Notwithstanding any other provision of 
        this Act, the Secretary may insure under any section of this 
        title a mortgage executed in connection with--
                    ``(A) the purchase or refinancing of an existing 
                child care facility;
                    ``(B) the purchase of a structure to serve as a 
                child care facility; or
                    ``(C) the refinancing of existing debt of an 
                existing child care facility.
            ``(3) Purchase of existing facilities and structures.--In 
        the case of the purchase under this subsection of an existing 
        child care facility or purchase of an existing structure to 
        serve as such a facility, the Secretary shall prescribe any 
        terms and conditions that the Secretary considers necessary to 
ensure that--
                    ``(A) the facility or structure purchased continues 
                to be used as a child care facility; and
                    ``(B) the facility receives a certification of 
                compliance under section 258(c).
            ``(4) Refinancing of existing facilities.--In the case of 
        refinancing of an existing child care facility, the Secretary 
        shall prescribe any terms and conditions that the Secretary 
        considers necessary to ensure that--
                    ``(A) the refinancing is used to lower the monthly 
                debt service costs (taking into account any fees or 
                charges connected with such refinancing) of the 
                existing facility;
                    ``(B) the proceeds of any refinancing will be 
                employed only to retire the existing indebtedness and 
                pay the necessary cost of refinancing on the existing 
                facility;
                    ``(C) the existing facility is economically viable; 
                and
                    ``(D) the facility receives a certification of 
                compliance under section 258(c).
            ``(5) Limitation on insurance authority.--The authority of 
        the Secretary to enter into commitments to insure mortgages 
        under this subsection is subject to section 257(f).''.

SEC. 713. STUDY OF AVAILABILITY OF SECONDARY MARKETS FOR MORTGAGES ON 
              CHILD CARE FACILITIES.

    (a) Study.--The Secretary of the Treasury shall conduct a study of 
the secondary mortgage markets to determine--
            (1) whether such a market exists for purchase of mortgages 
        eligible for insurance under sections 223(h) and 257 of the 
        National Housing Act (as added by this subtitle);
            (2) whether such a market would affect the availability of 
        credit available for development of child care facilities or 
        would lower development costs of such facilities; and
            (3) the extent to which such a market or other activities 
        to provide credit enhancement for loans for child care 
        facilities is needed to meet the demand for such facilities.
    (b) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary of the Treasury shall submit to Congress a 
report regarding the results of the study conducted under this section.

SEC. 714. TECHNICAL AND FINANCIAL ASSISTANCE GRANTS.

    (a) Definitions.--In this section:
            (1) Child care facility.--The term ``child care facility'' 
        has the meaning given that term in section 257(a) of the 
        National Housing Act, as added by section 711 of this subtitle.
            (2) Eligible intermediary.--The term ``eligible 
        intermediary'' means a private, nonprofit intermediary 
        organization that has demonstrated experience in--
                    (A) financing the construction and renovation of 
                physical facilities;
                    (B) providing technical and financial assistance to 
                child care providers or other similar entities;
                    (C) working with small businesses; and
                    (D) securing private sources for capital financing; 
                and
            (3) Eligible recipient.--The term ``eligible recipient'' 
        means any--
                    (A) existing or start-up center-based or home-based 
                child care provider; and
                    (B) organization in the process of establishing a 
                center-based or home-based child care program or 
                otherwise seeking to provide child care services.
            (4) Equipment.--The term ``equipment'' has the meaning 
        given that term in section 257(a) of the National Housing Act, 
        as added by section 711 of this subtitle.
    (b) Grant Authority.--The Secretary of Housing and Urban 
Development, in consultation with the Secretary of Health and Human 
Services, may award grants on a competitive basis in accordance with 
this section to eligible intermediaries for use in accordance with 
subsections (e) and (f).
    (c) Applications.--To be eligible to receive a grant under this 
section an eligible intermediary shall submit to the Secretary an 
application, in such form and containing such information as the 
Secretary may require.
    (d) Priority.--In awarding grants under this section the Secretary 
shall give a priority to applicants under subsection (c) that serve 
low-income or rural areas.
    (e) Use of Funds.--
            (1) Revolving loan fund.--Each eligible intermediary that 
        receives a grant under this section shall deposit the grant 
        amount into a child care revolving loan fund established by the 
        eligible intermediary.
            (2) Payments from fund.--Subject to subsection (f), from 
        amounts deposited into the revolving loan fund under paragraph 
        (1), each eligible intermediary shall provide technical and 
        financial assistance (in the form of loans, grants, 
        investments, guarantees, interest subsidies, and other 
        appropriate forms of assistance) to eligible recipients for the 
        acquisition or improvement of child care facilities or 
        equipment.
            (3) Loan repayments and investment proceeds.--Any amount 
        received by an eligible intermediary from an eligible recipient 
        in the form of a loan repayment or investment proceeds shall be 
        deposited into the child care revolving fund of the eligible 
        intermediary for redistribution to other eligible recipients in 
        accordance with this section.
    (f) Allocation of Funds.--Of the amounts distributed from the 
revolving loan fund of an eligible intermediary under subsection (e)(2) 
in each fiscal year--
            (1) not less than 50 percent shall be used for the 
        renovation or construction of child care facilities or the 
        acquisition of equipment by eligible recipients, except that 
        the amount made available to any eligible recipient under this 
        paragraph may not to exceed 40 percent of the total costs 
        incurred by the eligible recipient in connection with such 
        renovation, construction, or acquisition; and
            (2) the amount remaining after distribution under paragraph 
        (1), shall be used to provide direct assistance to eligible 
        recipients in obtaining public or private financing for the 
        renovation or construction of child care facilities and the 
        acquisition of equipment, including developing and implementing 
        financing resources, options, and plans for those recipients.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2000 through 2004.
                                 <all>
```