I

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 lowincome working families, and for other purposes.
2

•HR 1430 IH

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Caring for America’s Children Act’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 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
3

•HR 1430 IH

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.
4

•HR 1430 IH

Sec. 713. Study of availability of secondary markets for mortgages on child

care facilities.

Sec. 714. Technical and financial assistance grants.

1 SEC. 2. DEFINITIONS.

2 In this Act:

3 (1) ACCREDITED CHILD CARE FACILITY.—The

4 term ‘‘accredited child care facility’’ means—

5 (A) a facility that is accredited, by a child

6 care credentialing or accreditation entity recog7 nized by a State or national organization de8 scribed in paragraph (2)(A), to provide child

9 care (except children who a tribal organization

10 elects to serve through a facility described in

11 subparagraph (B));

12 (B) a facility that is accredited, by a child

13 care credentialing or accreditation entity recog14 nized by a tribal organization, to provide child

15 care for children served by the tribal organiza16 tion;

17 (C) a facility that is used as a Head Start

18 center under the Head Start Act (42 U.S.C.

19 9831 et seq.) and is in compliance with applica20 ble performance standards established by regu21 lation under such Act for Head Start programs;

22 or

23 (D) a military child development center (as

24 defined in section 1798(1) of title 10, United
5

•HR 1430 IH

1 States Code) that is in a facility owned or

2 leased by the Department of Defense or the

3 Coast Guard.

4 (2) CHILD CARE CREDENTIALING OR ACCREDI5 TATION ENTITY.—The term ‘‘child care credentialing

6 or accreditation entity’’ means a nonprofit private

7 organization or public agency that—

8 (A) is recognized by a State agency, a trib9 al organization, or a national organization that

10 serves as a peer review panel on the standards

11 and procedures of public and private child care

12 or school accrediting bodies; and

13 (B) accredits a facility or credentials an in14 dividual to provide child care on the basis of—

15 (i) an accreditation or credentialing

16 instrument based on peer-validated re17 search;

18 (ii) compliance with applicable State

19 and local licensing requirements, or stand20 ards described in section 658E(c)(2)(E)(ii)

21 of the Child Care and Development Block

22 Grant Act (42 U.S.C. 9858c(c)(2)(E)(ii)),

23 as appropriate, for the facility or indi24 vidual;
6

•HR 1430 IH

1 (iii) outside monitoring of the facility

2 or individual; and

3 (iv) criteria that provide assurances

4 of—

5 (I) compliance with age-appro6 priate health and safety standards at

7 the facility or by the individual;

8 (II) use of developmentally ap9 propriate educational activities, as an

10 integral part of the child care pro11 gram carried out at the facility or by

12 the individual; and

13 (III) use of ongoing staff devel14 opment or training activities for the

15 staff of the facility or the individual,

16 including related skills-based testing.

17 (3) CREDENTIALED CHILD CARE PROFES18 SIONAL.—The term ‘‘credentialed child care profes19 sional’’ means—

20 (A) an individual who—

21 (i) is credentialed, by a child care

22 credentialing or accreditation entity recog23 nized by a State or a national organization

24 described in paragraph (2)(A), to provide

25 child care (except children who a tribal or-
7

•HR 1430 IH

1 ganization elects to serve through an indi2 vidual described in subparagraph (B)); or

3 (ii) successfully completes a 4-year or

4 graduate degree in a relevant academic

5 field (such as early childhood education,

6 education, or recreation services);

7 (B) an individual who is credentialed, by a

8 child care credentialing or accreditation entity

9 recognized by a tribal organization, to provide

10 child care for children served by the tribal orga11 nization; or

12 (C) an individual certified by the Armed

13 Forces of the United States to provide child

14 care as a family child care provider (as defined

15 in section 658P of the Child Care and Develop16 ment Block Grant Act of 1990 (42 U.S.C.

17 9858n)) in military family housing.

18 (4) STATE; TRIBAL ORGANIZATION.—The terms

19 ‘‘State’’ and ‘‘tribal organization’’ have the meaning

20 given the term in section 658P of the Child Care

21 and Development Block Grant Act (42 U.S.C.

22 9858n).
8

•HR 1430 IH

1 TITLE I—TAX BENEFITS FOR

2 FAMILIES WITH CHILDREN

3 SEC. 101. EXPANSION OF DEPENDENT CARE TAX CREDIT.

4 (a) DOLLAR LIMIT ON CREDITABLE EMPLOYMENT5 RELATED EXPENSES INCREASED.—Section 21(c) of the

6 Internal Revenue Code of 1986 (relating to dollar limit

7 on amount creditable) is amended—

8 (1) by striking ‘‘$2,400’’ in paragraph (1) and

9 inserting ‘‘$3,600’’, and

10 (2) by striking ‘‘$4,800’’ in paragraph (2) and

11 inserting ‘‘$6,000’’.

12 (b) PERCENTAGE OF EMPLOYMENT-RELATED EX13 PENSES INCREASED.—Section 21(a)(2) of the Internal

14 Revenue Code of 1986 (defining applicable percentage) is

15 amended to read as follows:

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

17 purposes of paragraph (1), the term ‘applicable per18 centage’ means 40 percent reduced (but not below

19 10 percent) by 1 percentage point for each $2,000

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

22 $50,000.’’.

23 (c) EMPLOYMENT-RELATED EXPENSES EXPANDED

24 TO INCLUDE TRANSPORTATION COSTS AND COSTS OF

25 EDUCATIONAL PROGRAMS.—Section 21(b)(2)(A) of the
9

•HR 1430 IH

1 Internal Revenue Code of 1986 (defining employment-re2 lated expenses) is amended—

3 (1) by striking ‘‘and’’ at the end of clause (i),

4 (2) by striking the period at the end of clause

5 (ii) and inserting ‘‘(including expenses for edu6 cational activities provided during such care), and’’,

7 and

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

9 ‘‘(iii) expenses for transportation—

10 ‘‘(I) related to such services or

11 care, and

12 ‘‘(II) provided by a person not

13 described in subsection (e)(6).’’.

14 (d) EFFECTIVE DATE.—The amendments made by

15 this section shall apply to taxable years beginning after

16 December 31, 2000.

17 SEC. 102. INCREASE IN CHILD TAX CREDIT.

18 (a) IN GENERAL.—Section 24(a) of the Internal Rev19 enue Code of 1986 (relating to allowance of credit) is

20 amended by striking ‘‘$500 ($400 in the case of taxable

21 years beginning in 1998)’’ and inserting ‘‘$900’’.

22 (b) EFFECTIVE DATE.—The amendment made by

23 this section shall apply to taxable years beginning after

24 December 31, 2000.
10

•HR 1430 IH

1 SEC. 103. EXPANSION OF DEPENDENT CARE ASSISTANCE

2 PROGRAM.

3 (a) DOLLAR LIMIT INCREASED.—Section

4 129(a)(2)(A) of the Internal Revenue Code of 1986 (relat5 ing to limitation of exclusion) is amended to read as fol6 lows:

7 ‘‘(A) DOLLAR LIMITATION.—

8 ‘‘(i) IN GENERAL.—The amount which

9 may be excluded under paragraph (1) for

10 dependent care assistance with respect to

11 dependent care services provided during a

12 taxable year shall not exceed—

13 ‘‘(I) in the case of dependent

14 care services provided for 1 qualifying

15 individual described in section

16 21(b)(1), $5,000, and

17 ‘‘(II) in the case of dependent

18 care services provided for 2 or more

19 qualifying individuals so described,

20 $7,000.

21 ‘‘(ii) AMOUNTS FOR MARRIED INDI22 VIDUALS FILING SEPARATE RETURNS.—In

23 the case of a separate return by a married

24 individual, the amount applicable under

25 clause (i) shall be one-half of the amount

26 specified.’’.
11

•HR 1430 IH

1 (b) PAYMENTS FOR INFANT CARE, INCLUDING STAY2 AT-HOME CARE, ALLOWED.—

3 (1) IN GENERAL.—Section 129(e)(1) of the In4 ternal Revenue Code of 1986 (relating to definitions

5 and special rules) is amended to read as follows:

6 ‘‘(1) DEPENDENT CARE ASSISTANCE.—The

7 term ‘dependent care assistance’ means—

8 ‘‘(A) the payment of, or provision of, those

9 services which if paid for by the employee would

10 be considered employment-related expenses

11 under section 21(b)(2) (relating to expenses for

12 household and dependent care services nec13 essary for gainful employment), and

14 ‘‘(B) any payment to the employee or any

15 individual described in subsection (c)(2) from

16 amounts contributed to the employee’s account

17 during the 9-month period ending with the

18 birth of a qualifying individual described in sec19 tion 21(b)(1)(A), if paid during a period ending

20 1 year after such birth.’’.

21 (2) CONFORMING AMENDMENT.—Section 125

22 of such Code (relating to cafeteria plans) is amended

23 by redesignating subsections (h) and (i) as sub24 sections (i) and (j) and by inserting after subsection

25 (g) the following:
12

•HR 1430 IH

1 ‘‘(h) ALLOWANCE OF CARRYOVERS OF CERTAIN UN2 USED DEPENDENT CARE ASSISTANCE TO LATER TAX3 ABLE YEARS.—For purposes of this title—

4 ‘‘(1) a plan or other arrangement shall not fail

5 to be treated as a cafeteria plan or flexible spending

6 or similar arrangement, and

7 ‘‘(2) no amount shall be required to be included

8 in gross income by reason of this section or any

9 other provision of this chapter,

10 solely because under such plan or other arrangement any

11 dependent care assistance described in section

12 129(e)(1)(B) which is unused as of the close of a taxable

13 year may be carried forward to the succeeding taxable

14 year.’’.

15 (c) PAYMENTS TO CERTAIN RELATED INDIVIDUALS

16 FOR ROUTINE CARE ALLOWED.—Section 129(c) of the

17 Internal Revenue Code of 1986 (relating to payments to

18 related individuals) is amended by adding at the end the

19 following flush sentence:

20 ‘‘The preceding sentence shall not apply to any amount

21 paid or incurred to any individual otherwise described in

22 paragraph (1) if such amount is paid or incurred for care

23 of a qualifying individual during the period ending with

24 the first day of State mandatory schooling of such quali25 fying individual.’’.
13

•HR 1430 IH

1 (d) DEPENDENT CARE ASSISTANCE PROGRAM FOR

2 FEDERAL EMPLOYEES.—Subpart G of part III of title 5,

3 United States Code, is amended by inserting after chapter

4 87 the following:

5 ‘‘CHAPTER 88—DEPENDENT CARE

6 ASSISTANCE PROGRAM

7 ‘‘§ 8801. Definitions

8 ‘‘(a) For the purpose of this chapter, ‘employee’

9 means—

10 ‘‘(1) an employee as defined by section 2105 of

11 this title;

12 ‘‘(2) a Member of Congress as defined by sec13 tion 2106 of this title;

14 ‘‘(3) a Congressional employee as defined by

15 section 2107 of this title;

16 ‘‘(4) the President;

17 ‘‘(5) a justice or judge of the United States ap18 pointed to hold office during good behavior (i) who

19 is in regular active judicial service, or (ii) who is re20 tired from regular active service under section

21 371(b) or 372(a) of title 28, United States Code, or

22 (iii) who has resigned the judicial office under sec23 tion 371(a) of title 28 with the continued right dur24 ing the remainder of his lifetime to receive the sal25 ary of the office at the time of his resignation;
14

•HR 1430 IH

1 ‘‘(6) an individual first employed by the govern2 ment of the District of Columbia before October 1,

3 1987;

4 ‘‘(7) an individual employed by Gallaudet Col5 lege;

6 ‘‘(8) an individual employed by a county com7 mittee established under section 590h(b) of title 16;

8 ‘‘(9) an individual appointed to a position on

9 the office staff of a former President under section

10 1(b) of the Act of August 25, 1958 (72 Stat. 838);

11 and

12 ‘‘(10) an individual appointed to a position on

13 the office staff of a former President, or a former

14 Vice President under section 4 of the Presidential

15 Transition Act of 1963, as amended (78 Stat. 153),

16 who immediately before the date of such appoint17 ment was an employee as defined under any other

18 paragraph of this subsection;

19 but does not include—

20 ‘‘(A) an employee of a corporation supervised

21 by the Farm Credit Administration if private inter22 ests elect or appoint a member of the board of direc23 tors;

24 ‘‘(B) an individual who is not a citizen or na25 tional of the United States and whose permanent
15

•HR 1430 IH

1 duty station is outside the United States, unless the

2 individual was an employee for the purpose of this

3 chapter on September 30, 1979, by reason of service

4 in an Executive agency, the United States Postal

5 Service, or the Smithsonian Institution in the area

6 which was then known as the Canal Zone; or

7 ‘‘(C) an employee excluded by regulation of the

8 Office of Personnel Management under section

9 8716(b) of this title.

10 ‘‘(b) For the purpose of this chapter, ‘dependent care

11 assistance program’ has the meaning given such term by

12 section 129(d) of the Internal Revenue Code of 1986.

13 ‘‘§ 8802. Dependent care assistance program

14 ‘‘The Office of Personnel Management shall establish

15 and maintain a dependent care assistance program for the

16 benefit of employees.’’.

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

18 this section apply to taxable years beginning after Decem19 ber 31, 2000.

20 SEC. 104. MUTUALLY EXCLUSIVE USE OF DEPENDENT CARE

21 TAX CREDIT, CHILD TAX CREDIT, AND DE22 PENDENT CARE ASSISTANCE PROGRAM FOR

23 EACH DEPENDENT.

24 (a) ELECTION TO APPLY DEPENDENT CARE TAX

25 CREDIT.—
16

•HR 1430 IH

1 (1) IN GENERAL.—Section 21 of the Internal

2 Revenue Code of 1986 (relating to expenses for

3 household and dependent care services necessary for

4 gainful employment) is amended by redesignating

5 subsection (f) as subsection (g) and by inserting

6 after subsection (e) the following:

7 ‘‘(f) ELECTION TO HAVE SECTION APPLY.—

8 ‘‘(1) IN GENERAL.—No credit shall be allowed

9 under subsection (a) for a taxable year with respect

10 to any qualifying individual unless the taxpayer

11 elects to have this section apply with respect to such

12 individual for such year.

13 ‘‘(2) COORDINATION WITH CHILD TAX CREDIT

14 AND DEPENDENT CARE ASSISTANCE EXCLUSION.—If

15 the taxpayer elects to apply this section with respect

16 to a qualifying individual for the taxable year, such

17 individual may not be considered—

18 ‘‘(A) a qualifying child for purposes of sec19 tion 24 for such year, or

20 ‘‘(B) a qualifying individual for purposes

21 of section 129 for such year.’’.

22 (2) CONFORMING AMENDMENT.—Section 21(c)

23 of such Code, as amended by section 101(a), is

24 amended by striking the last sentence.
17

•HR 1430 IH

1 (b) ELECTION TO APPLY CHILD TAX CREDIT.—Sec2 tion 24 of the Internal Revenue Code of 1986 (relating

3 to child tax credit) is amended by adding at the end the

4 following:

5 ‘‘(g) ELECTION TO HAVE SECTION APPLY.—

6 ‘‘(1) IN GENERAL.—No credit shall be allowed

7 under subsection (a) for a taxable year with respect

8 to any qualifying child unless the taxpayer elects to

9 have this section apply with respect to such child for

10 such year.

11 ‘‘(2) COORDINATION WITH DEPENDENT CARE

12 TAX CREDIT AND DEPENDENT CARE ASSISTANCE

13 EXCLUSION.—If the taxpayer elects to apply this

14 section with respect to a qualifying child for the tax15 able year, such child may not be considered a quali16 fying individual for purposes of section 21 or 129

17 for such year.’’.

18 (c) ELECTION TO APPLY DEPENDENT CARE ASSIST19 ANCE EXCLUSION.—Section 129 of the Internal Revenue

20 Code of 1986 (dependent care assistance programs) is

21 amended by adding at the end the following:

22 ‘‘(f) ELECTION TO HAVE SECTION APPLY.—

23 ‘‘(1) IN GENERAL.—No exclusion shall be al24 lowed under subsection (a) for a taxable year with

25 respect to any qualifying individual unless the tax-
18

•HR 1430 IH

1 payer elects to have this section apply with respect

2 to such individual for such year.

3 ‘‘(2) COORDINATION WITH DEPENDENT CARE

4 TAX CREDIT AND CHILD TAX CREDIT.—If the tax5 payer elects to apply this section with respect to a

6 qualifying individual for the taxable year, such indi7 vidual may not be considered—

8 ‘‘(A) a qualifying individual for purposes of

9 section 21 for such year, or

10 ‘‘(B) a qualifying child for purposes of sec11 tion 24 for such year.’’.

12 (d) EFFECTIVE DATE.—The amendments made by

13 this section apply to taxable years beginning after Decem14 ber 31, 2000.

15 SEC. 105. EXPANSION OF HOME OFFICE DEDUCTION TO IN16 CLUDE USE OF OFFICE FOR DEPENDENT

17 CARE.

18 (a) IN GENERAL.—Section 280A(c)(1) of the Inter19 nal Revenue Code of 1986 (relating to certain business

20 use) is amended by adding at the end the following: ‘‘A

21 portion of a dwelling unit and the exclusive use of such

22 portion otherwise described in this paragraph shall not fail

23 to be so described if such portion is also used by the tax24 payer during such exclusive use to care for a dependent

25 of the taxpayer.’’.
19

•HR 1430 IH

1 (b) EFFECTIVE DATE.—The amendment made by

2 this section shall apply to taxable years beginning after

3 December 31, 1999.

4 SEC. 106. INCLUSION OF CHILD CARE COSTS IN CHILD SUP5 PORT ORDERS.

6 (a) IN GENERAL.—Section 466(a) of the Social Secu7 rity Act (42 U.S.C. 666(a)) is amended by inserting after

8 paragraph (19) the following:

9 ‘‘(20) CHILD CARE COSTS.—Procedures under

10 which any child support order enforced under this

11 part shall include an equitable division between the

12 custodial and noncustodial parents of any costs of

13 providing child care services in any case where the

14 custodial parent is employed or is actively seeking

15 employment.’’.

16 (b) EFFECTIVE DATE.—The amendment made by

17 subsection (a) shall apply to child support orders enforced

18 or otherwise modified by a court on and after the date

19 of enactment of this Act.
20

•HR 1430 IH

1 TITLE II—ACTIVITIES TO IM2 PROVE THE QUALITY OF

3 CHILD CARE

4 Subtitle A—Encouraging Business

5 Involvement in Child Care

6 SEC. 201. ALLOWANCE OF CREDIT FOR EMPLOYER EX7 PENSES FOR CHILD CARE ASSISTANCE.

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of

10 1986 (relating to business related credits) is amended by

11 adding at the end the following new section:

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

13 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec14 tion 38, the employer-provided child care credit deter15 mined under this section for the taxable year is an amount

16 equal to 40 percent of the qualified child care expenditures

17 of the taxpayer for such taxable year.

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

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

20 $150,000 ($250,000 in the case of qualified child care ex21 penditures with respect to 3 or more qualified child care

22 facilities each located in a different jurisdiction of State

23 or local government).

24 ‘‘(c) DEFINITIONS.—For purposes of this section—
21

•HR 1430 IH

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

2 The term ‘qualified child care expenditure’ means

3 any amount paid or incurred—

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

5 expand property—

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

7 qualified child care facility of the taxpayer,

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

9 for depreciation (or amortization in lieu of

10 depreciation) is allowable, and

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

12 the principal residence (within the meaning

13 of section 121) of the taxpayer or any em14 ployee of the taxpayer,

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

16 child care facility of the taxpayer, including

17 costs related to the training of employees, to

18 scholarship programs, and to the providing of

19 increased compensation to employees with high20 er levels of child care training,

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

22 child care facility to provide child care services

23 to employees of the taxpayer,
22

•HR 1430 IH

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

2 resource and referral services to employees of

3 the taxpayer, or

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

5 from a child care credentialing or accreditation

6 entity (as defined in section 2(2) of the Caring

7 for America’s Children Act) with respect to a

8 qualified child care facility.

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

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

11 child care facility’ means a facility—

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

13 provide child care assistance, and

14 ‘‘(ii) which meets the requirements of

15 all applicable laws and regulations of the

16 State or local government in which it is lo17 cated, including, but not limited to, the li18 censing of the facility as a child care facil19 ity.

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

21 the principal residence (within the meaning of

22 section 121) of the operator of the facility.

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

24 TAXPAYER.—A facility shall not be treated as a
23

•HR 1430 IH

1 qualified child care facility with respect to a

2 taxpayer unless—

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

4 to employees of the taxpayer during the

5 taxable year,

6 ‘‘(ii) the facility is not the principal

7 trade or business of the taxpayer unless at

8 least 30 percent of the enrollees of such fa9 cility are dependents of employees of the

10 taxpayer, and

11 ‘‘(iii) the use of such facility (or the

12 eligibility to use such facility) does not dis13 criminate in favor of employees of the tax14 payer who are highly compensated employ15 ees (within the meaning of section 414(q)).

16 ‘‘(d) RECAPTURE OF ACQUISITION AND CONSTRUC17 TION CREDIT.—

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

19 taxable year, there is a recapture event with respect

20 to any qualified child care facility of the taxpayer,

21 then the tax of the taxpayer under this chapter for

22 such taxable year shall be increased by an amount

23 equal to the product of—

24 ‘‘(A) the applicable recapture percentage,

25 and
24

•HR 1430 IH

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

2 allowed under section 38 for all prior taxable

3 years which would have resulted if the qualified

4 child care expenditures of the taxpayer de5 scribed in subsection (c)(1)(A) with respect to

6 such facility had been zero.

7 ‘‘(2) APPLICABLE RECAPTURE PERCENTAGE.—

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

9 subsection, the applicable recapture percentage

10 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.

11 ‘‘(B) YEARS.—For purposes of subpara12 graph (A), year 1 shall begin on the first day

13 of the taxable year in which the qualified child

14 care facility is placed in service by the taxpayer.

15 ‘‘(3) RECAPTURE EVENT DEFINED.—For pur16 poses of this subsection, the term ‘recapture event’

17 means—

18 ‘‘(A) CESSATION OF OPERATION.—The

19 cessation of the operation of the facility as a

20 qualified child care facility.
25

•HR 1430 IH

1 ‘‘(B) CHANGE IN OWNERSHIP.—

2 ‘‘(i) IN GENERAL.—Except as pro3 vided in clause (ii), the disposition of a

4 taxpayer’s interest in a qualified child care

5 facility with respect to which the credit de6 scribed in subsection (a) was allowable.

7 ‘‘(ii) AGREEMENT TO ASSUME RECAP8 TURE LIABILITY.—Clause (i) shall not

9 apply if the person acquiring such interest

10 in the facility agrees in writing to assume

11 the recapture liability of the person dis12 posing of such interest in effect imme13 diately before such disposition. In the

14 event of such an assumption, the person

15 acquiring the interest in the facility shall

16 be treated as the taxpayer for purposes of

17 assessing any recapture liability (computed

18 as if there had been no change in owner19 ship).

20 ‘‘(4) SPECIAL RULES.—

21 ‘‘(A) TAX BENEFIT RULE.—The tax for

22 the taxable year shall be increased under para23 graph (1) only with respect to credits allowed

24 by reason of this section which were used to re25 duce tax liability. In the case of credits not so
26

•HR 1430 IH

1 used to reduce tax liability, the carryforwards

2 and carrybacks under section 39 shall be appro3 priately adjusted.

4 ‘‘(B) NO CREDITS AGAINST TAX.—Any in5 crease in tax under this subsection shall not be

6 treated as a tax imposed by this chapter for

7 purposes of determining the amount of any

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

9 ‘‘(C) NO RECAPTURE BY REASON OF CAS10 UALTY LOSS.—The increase in tax under this

11 subsection shall not apply to a cessation of op12 eration of the facility as a qualified child care

13 facility by reason of a casualty loss to the ex14 tent such loss is restored by reconstruction or

15 replacement within a reasonable period estab16 lished by the Secretary.

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

18 section—

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

20 are treated as a single employer under subsections

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

22 taxpayer.

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

24 TRUSTS.—Under regulations prescribed by the Sec-
27

•HR 1430 IH

1 retary, rules similar to the rules of subsection (d) of

2 section 52 shall apply.

3 ‘‘(3) ALLOCATION IN THE CASE OF PARTNER4 SHIPS OR JOINT VENTURES.—In the case of partner5 ships or joint ventures, the credit shall be allocated

6 among partners or members of the joint venture

7 under regulations prescribed by the Secretary.

8 ‘‘(f) NO DOUBLE BENEFIT.—

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

10 this subtitle—

11 ‘‘(A) IN GENERAL.—If a credit is deter12 mined under this section with respect to any

13 property by reason of expenditures described in

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

15 shall be reduced by the amount of the credit so

16 determined.

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

18 any taxable year there is a recapture amount

19 determined with respect to any property the

20 basis of which was reduced under subparagraph

21 (A), the basis of such property (immediately be22 fore the event resulting in such recapture) shall

23 be increased by an amount equal to such recap24 ture amount. For purposes of the preceding

25 sentence, the term ‘recapture amount’ means
28

•HR 1430 IH

1 any increase in tax (or adjustment in

2 carrybacks or carryovers) determined under

3 subsection (d).

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

5 deduction or credit shall be allowed under any other

6 provision of this chapter with respect to the amount

7 of the credit determined under this section.

8 ‘‘(g) TERMINATION.—This section shall not apply to

9 taxable years beginning after December 31, 2002.’’

10 (b) CONFORMING AMENDMENTS.—

11 (1) Section 38(b) of the Internal Revenue Code

12 of 1986 is amended—

13 (A) by striking out ‘‘plus’’ at the end of

14 paragraph (11),

15 (B) by striking out the period at the end

16 of paragraph (12), and inserting a comma and

17 ‘‘plus’’, and

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

19 paragraph:

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

21 determined under section 45D.’’

22 (2) The table of sections for subpart D of part

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

24 amended by adding at the end the following new

25 item:

‘‘Sec. 45D. Employer-provided child care credit.’’
29

•HR 1430 IH

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

2 this section shall apply to taxable years beginning after

3 December 31, 1999.

4 SEC. 202. CHARITABLE CONTRIBUTIONS OF SCIENTIFIC

5 EQUIPMENT, COMPUTER TECHNOLOGY AND

6 EQUIPMENT, AND OTHER SERVICES TO

7 CHILD CARE PROVIDERS AND TO ELEMEN8 TARY AND SECONDARY SCHOOLS.

9 (a) SCIENTIFIC EQUIPMENT.—

10 (1) IN GENERAL.—Subparagraph (B) of section

11 170(e)(4) of the Internal Revenue Code of 1986 (re12 lating to special rule for contributions of scientific

13 property used for research) is amended to read as

14 follows:

15 ‘‘(B) QUALIFIED RESEARCH, CHILD CARE,

16 OR EDUCATION CONTRIBUTION.—For purposes

17 of this paragraph, the term ‘qualified research,

18 child care, or education contribution’ means a

19 charitable contribution by a corporation of tan20 gible personal property described in paragraph

21 (1) of section 1221, but only if—

22 ‘‘(i) the contribution is to—

23 ‘‘(I) an organization described in

24 section 501(c)(3) and exempt from

25 taxation under section 501(a) which is
30

•HR 1430 IH

1 a child care facility in compliance with

2 all applicable laws and regulations of

3 the State or unit of local government

4 in which such facility is located on the

5 date of such contribution,

6 ‘‘(II) an organization described

7 in section 501(c)(3) and exempt from

8 taxation under section 501(a) which is

9 a professional or educational support

10 entity for such a child care facility,

11 ‘‘(III) an educational organiza12 tion described in subsection

13 (b)(1)(A)(ii),

14 ‘‘(IV) a governmental unit de15 scribed in subsection (c)(1), or

16 ‘‘(V) an organization described in

17 section 41(e)(6)(B),

18 ‘‘(ii) the contribution is made not

19 later than 3 years after the date the tax20 payer acquired the property (or in the case

21 of property constructed by the taxpayer,

22 the date the construction of the property is

23 substantially completed),
31

•HR 1430 IH

1 ‘‘(iii) the property is scientific equip2 ment or apparatus substantially all of the

3 use of which by the donee is for—

4 ‘‘(I) research or experimentation

5 (within the meaning of section 174),

6 or for research training, in the United

7 States in physical or biological

8 sciences,

9 ‘‘(II) activities designed to en10 hance or support the educational or

11 developmental achievement of children

12 or youth, or

13 ‘‘(III) in the case of an organiza14 tion described in subclause (I), (II),

15 (III), or (IV) of clause (i), use within

16 the United States for educational pur17 poses or support activities related to

18 the purpose or function of the organi19 zation,

20 ‘‘(iv) the original use of the property

21 is by donor or the donee,

22 ‘‘(v) the property is not transferred by

23 the donee in exchange for money, other

24 property, or services, except for shipping,

25 installation, and transfer costs, and
32

•HR 1430 IH

1 ‘‘(vi) the taxpayer receives from the

2 donee a written statement representing

3 that its use and disposition of the property

4 will be in accordance with the provisions of

5 clauses (iv) and (v).’’.

6 (2) CONFORMING AMENDMENTS.—

7 (A) Paragraph (4)(A) of section 170(e) of

8 such Code is amended by striking ‘‘qualified re9 search contribution’’ each place it appears and

10 inserting ‘‘qualified research, child care, or edu11 cation contribution’’.

12 (B) The heading for section 170(e)(4) of

13 such Code is amended by inserting ‘‘, CHILD

14 CARE, OR EDUCATION’’ after ‘‘RESEARCH’’.

15 (b) EXPANSION OF RULES RELATING TO CONTRIBU16 TIONS OF COMPUTER TECHNOLOGY AND EQUIPMENT TO

17 CERTAIN CHILD CARE PROVIDERS.—

18 (1) IN GENERAL.—Section 170(e)(6)(B)(i) of

19 the Internal Revenue Code of 1986 (defining quali20 fied elementary or secondary educational contribu21 tion) is amended by striking ‘‘or’’ at the end of sub22 clause (I), by adding ‘‘or’’ at the end of subclause

23 (II), and by inserting after subclause (II) the fol24 lowing:
33

•HR 1430 IH

1 ‘‘(III) an entity described in sub2 clause (I) or (II) of paragraph

3 (4)(B)(i).’’.

4 (2) CONFORMING AMENDMENTS.—

5 (A) Section 170(e)(6)(B)(ii) of such Code

6 is amended by striking ‘‘2 years’’ and inserting

7 ‘‘3 years’’.

8 (B) Section 170(e)(6)(B)(iv) of such Code

9 is amended by striking ‘‘grades K–12’’ and in10 serting ‘‘grades preschool–12’’.

11 (C) Section 170(e)(6) of such Code is

12 amended by striking ‘‘qualified elementary or

13 secondary’’ each place it appears and inserting

14 ‘‘qualified child care, elementary, or sec15 ondary’’.

16 (D) The heading for section 170(e)(6)(B)

17 of such Code is amended by striking ‘‘QUALI18 FIED ELEMENTARY OR SECONDARY’’ and insert19 ing ‘‘QUALIFIED CHILD CARE, ELEMENTARY, OR

20 SECONDARY’’.

21 (E) The heading for section 170(e)(6) of

22 such Code is amended by striking ‘‘ELEMEN23 TARY OR SECONDARY’’ and inserting ‘‘CHILD

24 CARE OR ELEMENTARY OR SECONDARY’’.

25 (c) DONATIONS TO CHARITY FOR REFURBISHING.—
34

•HR 1430 IH

1 (1) SCIENTIFIC EQUIPMENT.—Section

2 170(e)(4) of the Internal Revenue Code of 1986 is

3 amended by adding at the end the following:

4 ‘‘(E) DONATIONS TO CHARITY FOR REFUR5 BISHING.—For purposes of this paragraph, a

6 charitable contribution by a corporation shall be

7 treated as a qualified research, child care, or

8 education contribution if—

9 ‘‘(i) such contribution is a contribu10 tion of property described in subparagraph

11 (B)(iii) to an organization described in sec12 tion 501(c)(3) and exempt from taxation

13 under section 501(a),

14 ‘‘(ii) such organization repairs and re15 furbishes the property and donates the

16 property to an organization described in

17 subparagraph (B)(i), and

18 ‘‘(iii) the taxpayer receives from the

19 organization to whom the taxpayer contrib20 uted the property a written statement rep21 resenting that its use of the property (and

22 any use by the organization to which it do23 nates the property) meets the requirements

24 of this paragraph.’’.
35

•HR 1430 IH

1 (2) COMPUTER TECHNOLOGY AND EQUIP2 MENT.—Section 170(e)(6) of the Internal Revenue

3 Code of 1986 is amended by redesignating subpara4 graphs (E) and (F) as subparagraphs (F) and (G),

5 respectively, and by inserting after subparagraph

6 (D) the following:

7 ‘‘(E) DONATIONS TO CHARITY FOR REFUR8 BISHING.—For purposes of this paragraph, a

9 charitable contribution by a corporation shall be

10 treated as a qualified child care, elementary, or

11 secondary educational contribution if—

12 ‘‘(i) such contribution is a contribu13 tion of computer technology or equipment

14 to an organization described in section

15 501(c)(3) and exempt from taxation under

16 section 501(a),

17 ‘‘(ii) such organization repairs and re18 furbishes the property and donates the

19 property to an organization described in

20 subparagraph (B)(i), and

21 ‘‘(iii) the taxpayer receives from the

22 organization to whom the taxpayer contrib23 uted the property a written statement rep24 resenting that its use of the property (and

25 any use by the organization to which it do-
36

•HR 1430 IH

1 nates the property) meets the requirements

2 of this paragraph.’’.

3 (d) CORPORATE DONATIONS OF SERVICES.—Section

4 170 of the Internal Revenue Code of 1986 is amended by

5 redesignating subsection (m) as subsection (n) and by in6 serting after subsection (l) the following:

7 ‘‘(m) TREATMENT OF THE DONATION OF CERTAIN

8 SERVICES.—

9 ‘‘(1) IN GENERAL.—For purposes of this sec10 tion, 50 percent of the fair market value of chari11 table services contributed by a corporation shall be

12 treated as a charitable contribution.

13 ‘‘(2) CHARITABLE SERVICES.—

14 ‘‘(A) IN GENERAL.—For purposes of para15 graph (1), the term ‘charitable services’ means

16 transportation services, qualified employee vol17 unteer time, and the use of facilities and

18 equipment—

19 ‘‘(i) provided by the taxpayer to a

20 donee described in subsection (e)(6)(B)(i),

21 and

22 ‘‘(ii) for which the taxpayer receives

23 from the donee a written statement rep24 resenting that the charitable services are
37

•HR 1430 IH

1 not in exchange for money, other property,

2 or services.

3 ‘‘(B) QUALIFIED EMPLOYEE VOLUNTEER

4 TIME.—For the purpose of this subsection, the

5 term ‘qualified employee volunteer time’ means

6 time—

7 ‘‘(i) volunteered to the donee by an

8 employee of the taxpayer during the em9 ployee’s normal working hours, and

10 ‘‘(ii) the value of which is based on

11 the usual wage rate of the employee.’’.

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

13 this section shall apply to taxable years beginning after

14 December 31, 1999.

15 Subtitle B—Child Care Quality

16 Improvement Incentive Program

17 SEC. 211. DEFINITIONS.

18 In this subtitle:

19 (1) CHILD CARE PROVIDER.—The term ‘‘child

20 care provider’’ means—

21 (A) a center-based child care provider, a

22 group home child care provider, a family child

23 care provider, or other provider of non-residen24 tial child care services for compensation that—
38

•HR 1430 IH

1 (i) is licensed, regulated, registered, or

2 otherwise legally operating under State

3 law; and

4 (ii) satisfies the State and local re5 quirements;

6 applicable to the child care services the provider

7 provides; or

8 (B) a child care provider that is 18 years

9 of age or older who provides child care services

10 only to an eligible child who is, by affinity or

11 consanguinity, or by court decree, the grand12 child, great grandchild, sibling, niece, or neph13 ew of such provider, if such provider does not

14 reside in the same residence with the child for

15 whom the provider is providing care and if the

16 provider complies with any applicable require17 ments that govern child care provided by the

18 relative involved.

19 (2) FAMILY CHILD CARE PROVIDER.—The term

20 ‘‘family child care provider’’ has the meaning given

21 the term in section 658P of the Child Care and De22 velopment Block Grant Act of 1990 (42 U.S.C.

23 9858n).

24 (3) SECRETARY.—The term ‘‘Secretary’’ means

25 the Secretary of Health and Human Services.
39

•HR 1430 IH

1 SEC. 212. ESTABLISHMENT OF STATE PROGRAM.

2 (a) IN GENERAL.—The Secretary shall establish a

3 program to award grants to eligible States to pay for the

4 Federal share of the cost of enabling such States to carry

5 out activities to improve the quality of child care for chil6 dren in the States (except children who a tribal organiza7 tion elects to serve under section 216).

8 (b) AWARDING OF GRANTS.—The Secretary shall

9 award the grants to the States from allotments made in

10 accordance with section 213.

11 (c) LIMITATION ON ADMINISTRATIVE COSTS.—

12 (1) IN GENERAL.—The Secretary shall not use

13 more than 5 percent of the amount appropriated

14 under section 217 for a fiscal year for the adminis15 trative costs associated with the administration of

16 the program under this section.

17 (2) DEFINITION.—In paragraph (1), the term

18 ‘‘administrative costs’’ shall not include the costs of

19 providing direct services.

20 SEC. 213. DISTRIBUTION.

21 (a) AMOUNTS RESERVED.—The Secretary shall reserve not more than 1 22 ⁄2 of 1 percent of the amount appro23 priated under this subtitle for each fiscal year for pay24 ments to Guam, American Samoa, the Virgin Islands of

25 the United States, and the Commonwealth of the North-
40

•HR 1430 IH

1 ern Mariana Islands to be allotted in accordance with their

2 respective needs.

3 (b) STATE ALLOTMENT.—

4 (1) GENERAL RULE.—From the amount appro5 priated under section 217 for each fiscal year and

6 remaining after reservations made under subsection

7 (a), section 212(c), and section 216, the Secretary

8 shall allot to each State an amount equal to the sum

9 of—

10 (A) an amount that bears the same ratio

11 to 50 percent of the remainder as the product

12 of the young child factor of the State and the

13 allotment percentage of the State bears to the

14 sum of the corresponding products for all

15 States; and

16 (B) an amount that bears the same ratio

17 to 50 percent of the remainder as the product

18 of the school lunch factor of the State and the

19 allotment percentage of the State bears to the

20 sum of the corresponding products for all

21 States.

22 (2) MINIMUM ALLOTMENT.—The amount of an

23 allotment awarded to a State under this subsection

24 shall not be less than an amount equal to 0.75 per-
41

•HR 1430 IH

1 cent of the total amount appropriated for the fiscal

2 year under section 217.

3 (3) YOUNG CHILD FACTOR.—The term ‘‘young

4 child factor’’ means the ratio of the number of chil5 dren in the State under 5 years of age to the num6 ber of the children in all States as provided by the

7 most recent annual estimates of population in the

8 States by the Bureau of the Census of the Depart9 ment of Commerce.

10 (4) SCHOOL LUNCH FACTOR.—The term

11 ‘‘school lunch factor’’ means the ratio of the number

12 of children in the State who are receiving free or re13 duced price lunches under the school lunch program

14 established under the National School Lunch Act

15 (42 U.S.C. 1751 et seq.) to the number of the chil16 dren in all States as determined annually by the De17 partment of Agriculture.

18 (5) ALLOTMENT PERCENTAGE.—

19 (A) IN GENERAL.—The allotment percent20 age for a State is determined by dividing the

21 per capita income of all individuals in the

22 United States, by the per capita income of all

23 individuals in the State.

24 (B) LIMITATIONS.—If an allotment per25 centage determined under subparagraph (A)—
42

•HR 1430 IH

1 (i) exceeds 1.2 percent, the allotment

2 percentage of that State shall be consid3 ered to be 1.2 percent; and

4 (ii) is less than 0.8 percent, the allot5 ment percentage of the State shall be con6 sidered to be 0.8 percent.

7 (C) PER CAPITA INCOME.—For purposes

8 of subparagraph (A), per capita income shall

9 be—

10 (i) determined at 2-year intervals;

11 (ii) applied for the 2-year period be12 ginning on October 1 of the first fiscal

13 year beginning on the date the determina14 tion is made; and

15 (iii) equal to the average of the an16 nual per capita incomes for the most re17 cent period of 3 consecutive years for

18 which satisfactory data are available from

19 the Department of Commerce at the time

20 the determination is made.

21 (c) DATA AND INFORMATION.—The Secretary shall

22 obtain from each appropriate Federal agency, the most re23 cent data and information necessary to determine the al24 lotments provided for in subsection (b).

25 (d) REALLOTMENTS.—
43

•HR 1430 IH

1 (1) IN GENERAL.—Any portion of the allotment

2 under subsection (b) to a State that the Secretary

3 determines is not required to carry out State activi4 ties approved under section 214, in the period for

5 which the allotment is made available, shall be real6 lotted by the Secretary to other States in proportion

7 to the original allotments to the other States.

8 (2) LIMITATIONS.—

9 (A) REDUCTION.—The amount of any re10 allotment to which a State is entitled under

11 paragraph (1) shall be reduced to the extent

12 that the allotment exceeds the amount that the

13 Secretary estimates will be used in the State to

14 carry out State activities approved under sec15 tion 214.

16 (B) REALLOTMENTS.—The amount of the

17 reduction shall be similarly reallotted among

18 States for which no reduction in an allotment

19 or reallotment is required by this subsection.

20 (3) AMOUNTS REALLOTTED.—For purposes of

21 any other section of this subtitle, any amount real22 lotted to a State under this subsection shall be con23 sidered to be part of the allotment made under sub24 section (b) to the State.
44

•HR 1430 IH

1 (e) DEFINITION.—In this section, the term ‘‘State’’

2 includes only the 50 States, the District of Columbia, and

3 the Commonwealth of Puerto Rico.

4 SEC. 214. STATE ELIGIBILITY AND APPLICATION REQUIRE5 MENTS.

6 (a) ELIGIBILITY.—To be eligible to receive a grant

7 under this subtitle, a State shall certify to the Secretary

8 that the State—

9 (1) has not reduced the scope of any State child

10 care standards or requirements that were in effect

11 on January 1, 1995;

12 (2) has not limited the State licensing require13 ments with respect to the types of providers that

14 must obtain licenses in order to provide child care

15 in the State as compared to the types of providers

16 that were required to obtain the licenses on January

17 1, 1995;

18 (3) has not otherwise restricted the application

19 of State child care licensing requirements that were

20 in effect on January 1, 1995;

21 (4) is in compliance with the requirements ap22 plicable to the State under the Child Care and De23 velopment Block Grant Act of 1990 (42 U.S.C.

24 9858 et seq.); and
45

•HR 1430 IH

1 (5) has, with respect to the fiscal year involved,

2 made available sufficient State matching funds to

3 draw down at least 80 percent of the amount award4 ed to the State for the preceding fiscal year under

5 a grant under section 418(a)(2) of the Social Secu6 rity Act (42 U.S.C. 618(a)(2)).

7 (b) FEDERAL SHARE.—

8 (1) IN GENERAL.—The Federal share of the

9 cost of the State activities approved under this sec10 tion is 90 percent.

11 (2) NON-FEDERAL SHARE.—A State that re12 ceives a grant under section 212 shall contribute the

13 non-Federal share of the cost in cash (which may be

14 provided from State or local public sources or

15 through donations from private entities).

16 (c) APPLICATION.—To be eligible to receive a grant

17 under this subtitle, a State shall prepare and submit to

18 the Secretary an application at such time, in such manner,

19 and containing such information as the Secretary shall re20 quire, including—

21 (1) an assurance that the State will comply

22 with the requirements applicable to States under

23 this subtitle; and

24 (2) an assurance that the State will not use

25 funds received under the grant to supplant or re-
46

•HR 1430 IH

1 place funds used by the State to improve the quality

2 or increase the supply of child care as required

3 under section 658G of the Child Care and Develop4 ment Block Grant Act of 1990 (42 U.S.C. 9858e).

5 SEC. 215. USE OF FUNDS BY STATES.

6 A State may use amounts provided under a grant

7 awarded under this subtitle to the State to—

8 (1) establish a subsidy program to provide

9 funds to child care providers who are credentialed in

10 the State (as described in section 2(3));

11 (2) provide assistance to small businesses lo12 cated in the State in establishing and operating child

13 care programs that may include—

14 (A) technical assistance in the establish15 ment of a child care program;

16 (B) assistance for the start-up costs re17 lated to a child care program;

18 (C) assistance for the training of child care

19 providers;

20 (D) scholarships for low-income wage earn21 ers in the programs;

22 (E) assistance to enable the businesses to

23 provide services to care for sick children or to

24 provide care to school age children; or
47

•HR 1430 IH

1 (F) assistance to enable the businesses to

2 provide care for children with disabilities;

3 (3) improve parental choice through consumer

4 education efforts in the State concerning child care,

5 including the expansion of resource and referral

6 services and improvement of State child care com7 plaint systems;

8 (4) establish a scholarship program for child

9 care providers to assist in meeting the educational or

10 training costs associated with accreditation of facili11 ties or credentialing of providers (as described in

12 paragraphs (1) and (3) of section 2);

13 (5) expand State-based child care training and

14 technical assistance activities;

15 (6) develop criteria for State recognition of en16 tities to accredit facilities, and credential child care

17 providers, in the State, as described in section 2;

18 (7) provide increased rates of reimbursement

19 under Federal or State child care assistance pro20 grams for child care that is provided by credentialed

21 child care professionals or at accredited child care

22 centers;

23 (8) provide differential rates of reimbursement

24 under Federal or State child care assistance pro25 grams for special needs children;
48

•HR 1430 IH

1 (9) purchase special equipment or supplies or

2 otherwise provide for the payment of other extraor3 dinary expenses required for the care of special

4 needs (including disabled) children and the distribu5 tion of such equipment or supplies to child care pro6 viders serving special needs children;

7 (10) support networks for family child care pro8 viders;

9 (11) establish linkages between child care pro10 viders;

11 (12) conduct background checks of child care

12 providers; and

13 (13) increase State monitoring of licensed child

14 care facilities in accordance with State law.

15 SEC. 216. RESERVATION.

16 The Secretary shall reserve not more than 1.5 per17 cent of the amount appropriated under section 217 for a

18 fiscal year to make grants under this subtitle to tribal or19 ganizations submitting applications described in section

20 214(c), to be used in accordance with section 215.

21 SEC. 217. AUTHORIZATION OF APPROPRIATIONS.

22 There is authorized to be appropriated to carry out

23 this subtitle $200,000,000 for each of fiscal years 2000

24 through 2004.
49

•HR 1430 IH

1 Subtitle C—Increased Enforcement

2 of State Health and Safety

3 Standards

4 SEC. 221. ENFORCEMENT OF STATE HEALTH AND SAFETY

5 STANDARDS.

6 (a) IDENTIFICATION OF STATE INSPECTION RATE.—

7 (1) IN GENERAL.—Section 658E(c)(2)(G) of

8 the Child Care and Development Block Grant Act of

9 1990 (42 U.S.C. 9858c(c)(2)(G)) is amended by

10 striking the period and inserting ‘‘, and provide the

11 percentage of child care provider inspections re12 quired under State law that were completed by the

13 State for each of the 2 preceding fiscal years.’’.

14 (2) EFFECTIVE DATE.—The amendment made

15 by paragraph (1) applies to State plans under the

16 Child Care and Development Block Grant Act of

17 1990 (42 U.S.C. 9858 et seq.) on and after Sep18 tember 1, 2000.

19 (b) INCREASED OR DECREASED ALLOTMENTS.—Sec20 tion 658O(b) of the Child Care and Development Block

21 Grant Act of 1990 (42 U.S.C. 9858m(b)) is amended—

22 (1) in paragraph (1), in the matter preceding

23 subparagraph (A), by inserting ‘‘, subject to para24 graph (5),’’ after ‘‘shall’’; and

25 (2) by adding at the end the following:
50

•HR 1430 IH

1 ‘‘(5) INCREASED OR DECREASED ALLOTMENT

2 BASED ON STATE INSPECTION RATE.—

3 ‘‘(A) INCREASED ALLOTMENT FOR FISCAL

4 YEARS 2000, 2001, AND 2002.—

5 ‘‘(i) IN GENERAL.—Subject to clause

6 (iii), for fiscal years 2000, 2001, and

7 2002, the allotment determined for a State

8 under paragraph (1) for each such fiscal

9 year shall be increased by an amount equal

10 to 10 percent of such allotment for the fis11 cal year involved with respect to any

12 State—

13 ‘‘(I) that certifies to the Sec14 retary that the State has not reduced

15 the scope of any State child care

16 health or safety standards or require17 ments that were in effect on January

18 1, 1995; and

19 ‘‘(II) that, with respect to the

20 preceding fiscal year, had a percent21 age of completed child care provider

22 inspections (as required to be reported

23 under section 658E(c)(2)(G)) that

24 was not less than the target inspec25 tion and enforcement percentage spec-
51

•HR 1430 IH

1 ified under clause (ii) for the fiscal

2 year for which the allotment is to be

3 paid.

4 ‘‘(ii) TARGET INSPECTION AND EN5 FORCEMENT PERCENTAGE.—For purposes

6 of clause (i)(II), the target inspection and

7 enforcement percentage is—

8 ‘‘(I) for fiscal year 2000, 75 per9 cent;

10 ‘‘(II) for fiscal year 2001, 80

11 percent; and

12 ‘‘(III) for fiscal year 2002, 100

13 percent.

14 ‘‘(iii) PRO RATA REDUCTIONS IF IN15 SUFFICIENT APPROPRIATIONS.—The Sec16 retary shall make pro rata reductions in

17 the percentage increase otherwise required

18 under clause (i) for a State allotment for

19 a fiscal year as necessary so that the ag20 gregate of all the allotments made under

21 this subsection does not exceed the amount

22 appropriated for that fiscal year under sec23 tion 658B, and remaining after reserva24 tions under subsection (a).
52

•HR 1430 IH

1 ‘‘(B) DECREASED ALLOTMENT FOR FISCAL

2 YEARS 2001 AND 2002.—

3 ‘‘(i) IN GENERAL.—The allotment de4 termined for a State under paragraph (1)

5 for each of fiscal years 2001 and 2002

6 shall be decreased by an amount that is

7 not less than 2 percent of such allotment

8 for the fiscal year involved (except that

9 such amount shall not be more than the

10 State’s expenditures on administrative

11 costs under this subchapter during the pre12 ceding fiscal year), with respect to any

13 State that, with respect to the preceding

14 fiscal year, had a percentage of completed

15 child care provider inspections (as required

16 to be reported under section

17 658E(c)(2)(G)) that was less than the

18 minimum inspection and enforcement per19 centage specified under clause (ii) for the

20 fiscal year for which the allotment is to be

21 paid.

22 ‘‘(ii) MINIMUM INSPECTION AND EN23 FORCEMENT PERCENTAGE.—For purposes

24 of clause (i), the minimum inspection and

25 enforcement percentage is—
53

•HR 1430 IH

1 ‘‘(I) for fiscal year 2001, 50 per2 cent; and

3 ‘‘(II) for fiscal year 2002, 75

4 percent.

5 ‘‘(iii) REQUIREMENT TO EXPEND

6 STATE FUNDS TO REPLACE REDUCTION.—

7 If the allotment determined for a State for

8 a fiscal year is reduced by reason of clause

9 (i), the State shall, during the immediately

10 succeeding fiscal year, expend additional

11 State funds under the State plan funded

12 under this subchapter, in an amount equal

13 to the amount of such reduction. During

14 the succeeding fiscal year, the State shall

15 maintain the level of services provided by

16 the State under this subchapter during the

17 fiscal year for which the determination is

18 made.’’.
54

•HR 1430 IH

1 Subtitle D—Distribution of Infor2 mation About Quality Child

3 Care

4 SEC. 231. EXPANSION OF ROLE OF THE DEPARTMENT OF

5 HEALTH AND HUMAN SERVICES IN THE COL6 LECTION AND DISSEMINATION OF INFORMA7 TION AND TECHNOLOGY.

8 (a) PROVISION OF INFORMATION.—

9 (1) IN GENERAL.—The Secretary of Health and

10 Human Services, by awarding contracts to qualified

11 entities on a competitive basis, shall—

12 (A) provide technical assistance concerning

13 the importance of the high quality child care to

14 States, units of local government, private non15 profit child care organizations, child care

16 credentialing or accreditation entities, child care

17 providers, and parents;

18 (B) collect and disseminate information on

19 the importance of high quality child care to

20 States, units of local government, private non21 profit child care organizations, child care

22 credentialing or accreditation entities, child care

23 providers, and parents, including, in partner24 ship with the Advertising Council or another

25 professional advertising group carrying out a
55

•HR 1430 IH

1 public awareness campaign promoting quality

2 child care.

3 (2) PREFERENCE.—In awarding the contracts,

4 the Secretary shall give preference to qualified enti5 ties with experience in carrying out the activities de6 scribed in paragraph (1).

7 (b) UNIFORMITY IN DATA COLLECTION AND DIS8 SEMINATION BY NATIONAL, STATE, AND LOCAL CHILD

9 CARE RESOURCE AND REFERRAL SERVICES.—The Sec10 retary of Health and Human Services shall develop a

11 mechanism, for use by organizations including organiza12 tions providing the resource and referral services described

13 in section 658G (42 U.S.C. 9858e), for the collection and

14 dissemination of statistical data on the supply and demand

15 for child care on the national, State, and local levels.

16 (c) GRANT PROGRAM.—

17 (1) IN GENERAL.—The Secretary of Health and

18 Human Services shall award competitive grants to

19 child care credentialing or accreditation entities that

20 have been providing credentialing or accreditation

21 services for child care providers for not more than

22 10 years.

23 (2) APPLICATION.—To be eligible to receive a

24 grant under this subsection, a child care

25 credentialing or accreditation entity shall prepare
56

•HR 1430 IH

1 and submit to the Secretary an application at such

2 time, in such manner, and containing such informa3 tion as the Secretary shall require.

4 (3) USE OF FUNDS.—Amounts provided under

5 a grant awarded under paragraph (1) shall be used

6 by grantees to refine and evaluate the procedures

7 and methods used by such grantees in accrediting

8 facilities as accredited child care facilities or

9 credentialing individual child care providers as

10 credentialed child care professionals. Such proce11 dures and methods shall be designed to ensure that

12 the highest quality child care is provided by the ac13 credited child care facilities and credentialed child

14 care professionals, to provide information about the

15 accreditation or credentialing process to providers,

16 and to provide subsidies to needy individuals and or17 ganizations to enable such individuals and organiza18 tion to participate in the accreditation or

19 credentialing process.

20 (d) AUTHORIZATION OF APPROPRIATIONS.—There is

21 authorized to be appropriated to carry out this section

22 $15,000,000 for each of fiscal years 2000 through 2004.
57

•HR 1430 IH

1 TITLE III—EXPANDING PROFES2 SIONAL DEVELOPMENT OP3 PORTUNITIES

4 SEC. 301. CHILD CARE TRAINING INFRASTRUCTURE.

5 (a) DEFINITIONS.—In this section:

6 (1) CHILD CARE PROVIDER.—The term ‘‘child

7 care provider’’ has the meaning given the term in

8 section 211.

9 (2) ELEMENTARY SCHOOL; SECONDARY

10 SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec11 ondary school’’ have the meanings given the terms

12 in section 14101 of the Elementary and Secondary

13 Education Act of 1965 (20 U.S.C. 8801).

14 (3) INSTITUTION OF HIGHER EDUCATION.—The

15 term ‘‘institution of higher education’’ has the

16 meaning given the term in section 101(a) of the

17 Higher Education Act of 1965 (20 U.S.C. 1001(a)).

18 (4) SECRETARY.—The term ‘‘Secretary’’ means

19 the Secretary of Health and Human Services.

20 (5) TRAINING SITE.—The term ‘‘training site’’

21 means a training site described in subsection (e)(1).

22 (b) GRANTS.—

23 (1) IN GENERAL.—The Secretary shall make

24 grants to eligible organizations to develop and oper-
58

•HR 1430 IH

1 ate technology-based child care training infrastruc2 tures, to facilitate—

3 (A) the accreditation of facilities as accred4 ited child care facilities and accredited family

5 child care homes;

6 (B) the credentialing of individuals as

7 credentialed child care professionals; and

8 (C) the dissemination of child care, child

9 development, and early childhood education in10 formation and research to child care providers.

11 (2) ORGANIZATIONS GIVEN PRIORITY.—In

12 awarding grants under this subsection, the Secretary

13 shall give priority to eligible national organizations

14 that have established child care training infrastruc15 tures similar in concept and purpose to infrastruc16 tures described in this section.

17 (c) USE OF FUNDS.—An organization that receives

18 a grant under subsection (b) shall use the funds made

19 available through the grant to—

20 (1) develop partnerships, to the maximum ex21 tent possible, with elementary schools, secondary

22 schools, institutions of higher education, Federal,

23 State, and local government agencies, and private

24 entities, to share equipment, technical assistance,

25 and other technological resources, for the develop-
59

•HR 1430 IH

1 ment of the infrastructure described in subsection

2 (b);

3 (2) enter into arrangements with entities for

4 the provision of sites from which the infrastructure

5 will disseminate training;

6 (3) ensure the establishment of at least 2 of the

7 training sites in each State, and additional training

8 sites based on the populations and geographic con9 siderations of States;

10 (4) enter into arrangements with child care

11 credentialing or accreditation entities that are recog12 nized (as described in section 2(2)) by more than 1

13 State agency or tribal organization, for the develop14 ment of child care training to be disseminated

15 through the infrastructure;

16 (5) provide, directly or through a contract

17 (which may for good cause be a sole source con18 tract), expertise to convert training courses for dis19 tance transmission, provide interactive environments,

20 and conduct registration, testing, electronic storage

21 of information, and other technology-based activities

22 to adapt and enhance training course content con23 sistent with the medium of transmission involved

24 through the infrastructure;
60

•HR 1430 IH

1 (6) provide, through a logistical scheduling

2 mechanism, equitable access to the infrastructure for

3 all child care credentialing or accreditation entities

4 described in paragraph (4) that request an oppor5 tunity to disseminate child care training through the

6 infrastructure and meet the requirements of this sec7 tion;

8 (7) develop and implement a mechanism for

9 participants in the training to evaluate the infra10 structure, including providing comments on the ac11 cessibility and affordability of the training, and rec12 ommendations for improvements in the training;

13 (8) develop and implement a monitoring system

14 to provide data on the training provided through the

15 infrastructure, including data on—

16 (A) the number of facilities and individuals

17 participating in the training;

18 (B) the number of facilities receiving ac19 creditation (including a repeat accreditation) as

20 accredited child care facilities, and individuals

21 receiving credentialing (including a repeat

22 credentialing) as credentialed child care profes23 sionals, after fulfilling requirements that in24 clude participation in the training;
61

•HR 1430 IH

1 (C) the number of accredited child care fa2 cilities, and credentialed child care profes3 sionals, participating in the training; and

4 (D) the number of sites in which the train5 ing is received, analyzed—

6 (i) by State; and

7 (ii) by location in an urban, suburban,

8 or rural area; and

9 (9) establish and operate the child care training

10 revolving fund described in section 302.

11 (d) ELIGIBILITY.—To be eligible to receive the grant,

12 an organization shall be an organization that—

13 (1) is a private, nonprofit entity that is not—

14 (A) a child care credentialing or accredita15 tion entity;

16 (B) a subsidiary or affiliate of a child care

17 credentialing or accreditation entity; or

18 (C) an entity that has a subsidiary or affil19 iate that is a child care credentialing or accredi20 tation entity;

21 (2) has experience in developing partnerships

22 with child care credentialing or accreditation enti23 ties, institutions of higher education, and State and

24 local governments, for the provision of child care

25 training;
62

•HR 1430 IH

1 (3) has experience in providing and coordi2 nating the provision of child care training to family

3 child care providers and center-based child care pro4 viders;

5 (4) is related to child care provider support or6 ganizations in 35 or more States, through member7 ship in a common organization, affiliation, or an8 other mechanism;

9 (5) has experience in working with rural and

10 urban child care provider support organizations and

11 child care providers; and

12 (6) has experience in working with national

13 child care groups and organizations, including Fed14 eral government agencies, providers of child care

15 training, child care credentialing or accreditation en16 tities, and educational groups.

17 (e) APPLICATION.—To be eligible to receive a grant

18 under subsection (b), an organization shall submit an ap19 plication to the Secretary at such time, in such manner,

20 and containing such information as the Secretary may re21 quire, including—

22 (1) information describing, and indicating a

23 preliminary count of the number of, the sites from

24 which the infrastructure will disseminate training;
63

•HR 1430 IH

1 (2) an assurance that the organization will re2 quire that—

3 (A) each child care credentialing or accred4 itation entity that disseminates training

5 through the infrastructure will provide, during

6 at least 60 percent of the dissemination period,

7 an opportunity for participants in the

8 training—

9 (i) to interact with an identified train10 er or training leader at the training site; or

11 (ii) to elect to engage in other inter12 active training; and

13 (B) no child care credentialing or accredi14 tation entity may collect fees for participation

15 in the training that total more than—

16 (i) the cost to the entity for devel17 oping, conducting, and providing materials

18 for, the training; minus

19 (ii) the amount that the entity re20 ceives under this section or from any other

21 source to develop, conduct, and provide

22 materials for, the training; and

23 (3) information demonstrating that the organi24 zation will comply with the requirements of sub25 section (f)(2)(A).
64

•HR 1430 IH

1 (f) DEVELOPMENT AND OPERATION OF INFRASTRUC2 TURE.—

3 (1) CONTRACTS.—An organization that receives

4 a grant under subsection (b) may use funds made

5 available through the grant to enter into contracts,

6 which may for good cause be sole source contracts,

7 for the development of the technological and

8 logistical aspects of the infrastructure. The organiza9 tion shall enter into such a contract with an entity

10 with experience in establishing technology-based

11 interactive educational or training programs.

12 (2) TIME LINES.—

13 (A) BOARD, PERSONNEL, AND REVOLVING

14 FUND.—Not later than 6 months after the date

15 of receipt of the grant, the organization shall—

16 (i) establish a governing board;

17 (ii) establish bylaws to ensure fair

18 representation on the board of entities dis19 seminating training through the infrastruc20 ture;

21 (iii) appoint a Chief Executive Project

22 Officer to oversee the daily operation of

23 the infrastructure; and
65

•HR 1430 IH

1 (iv) establish and operate the child

2 care training revolving fund described in

3 section 302.

4 (B) TRAINING SITES.—

5 (i) 50 PERCENT OPERATIONAL.—Not

6 later than 3 years after the date of receipt

7 of the grant, the organization shall dis8 seminate training at 50 percent of the sites

9 described in the information submitted

10 under subsection (e)(1).

11 (ii) 75 PERCENT OPERATIONAL.—Not

12 later than 4 years after the date of receipt

13 of the grant, the organization shall dis14 seminate training at 75 percent of the

15 sites.

16 (iii) 90 PERCENT OPERATIONAL.—Not

17 later than 5 years after the date of receipt

18 of the grant, the organization shall dis19 seminate training at 90 percent of the

20 sites.

21 (C) EVALUATION.—The organization shall

22 develop and implement the mechanism for con23 ducting evaluations of the infrastructure de24 scribed in subsection (c)(7) not later than 3

25 years after the date of receipt of the grant.
66

•HR 1430 IH

1 (g) MANDATORY PARTICIPATION BY FEDERAL DE2 PARTMENTS.—The Secretary of Health and Human Serv3 ices, the Secretary of Education, and the Secretary of De4 fense shall participate in the infrastructure by ensuring

5 that the training disseminated through the infrastructure

6 includes training provided in accordance with curricula de7 veloped by their departments (or by contractors for the

8 departments) for providers carrying out activities under

9 the Head Start Act (42 U.S.C. 9831 et seq.), the Safe

10 and Drug-Free Schools and Communities Act of 1994 (20

11 U.S.C. 7101 et seq.), and the Child Care and Development

12 Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), and

13 other relevant curricula developed by the departments (or

14 by contractors for the departments).

15 (h) CORPORATION.—The organization may establish

16 a nonprofit corporation containing the governing board,

17 Chief Executive Project Officer, and personnel, to carry

18 out this section.

19 (i) ADMINISTRATIVE COSTS.—Prior to the date on

20 which the organization disseminates training at 75 percent

21 of the sites described in the information submitted under

22 subsection (e)(1), the organization may use not more than

23 25 percent of the funds made available through the grant

24 to pay for the administrative costs of carrying out this

25 section. Effective on that date, the organization may use
67

•HR 1430 IH

1 not more than 15 percent of the funds to pay for the ad2 ministrative costs.

3 (j) AUTHORIZATION OF APPROPRIATIONS.—There is

4 authorized to be appropriated to carry out this section

5 $50,000,000 for each of fiscal years 2000 through 2005.

6 SEC. 302. CHILD CARE TRAINING REVOLVING FUND.

7 (a) ESTABLISHMENT.—

8 (1) IN GENERAL.—The Chief Executive Project

9 Officer shall use not less than 10 percent of the

10 funds made available through a grant made under

11 section 301 during the 5 years after the date of re12 ceipt of the grant to establish and operate a child

13 care training revolving fund (referred to in this sec14 tion as the ‘‘Fund’’)—

15 (A) from which the Chief Executive

16 Project Officer shall make loans to eligible bor17 rowers for the purpose of enabling the persons

18 to purchase computers, satellite dishes, and

19 other equipment that will be used to dissemi20 nate training through the infrastructure de21 scribed in section 301; and

22 (B) into which all payments, charges, and

23 other amounts collected from loans made under

24 subparagraph (A) shall be deposited notwith25 standing any other provision of law.
68

•HR 1430 IH

1 (2) SEPARATE ACCOUNT.—The Fund shall be

2 maintained as a separate account. Any portion of

3 the Fund that is not required for expenditure shall

4 be invested in obligations of the United States or in

5 obligations guaranteed or insured by the United

6 States.

7 (3) INTEREST EARNED.—The interest earned

8 on the investments shall be credited to and form a

9 part of the Fund.

10 (b) ELIGIBLE BORROWERS.—To be eligible to receive

11 a loan under subsection (a), a borrower shall be a child

12 care provider who seeks to receive training through the

13 infrastructure or an entity that has entered into an ar14 rangement with the Chief Executive Project Officer to pro15 vide a training site (as defined in section 301) for the in16 frastructure.

17 (c) APPLICATION.—To be eligible to receive a loan

18 under subsection (a), a borrower shall submit an applica19 tion to the Chief Executive Project Officer at such time,

20 in such manner, and containing such information as the

21 Chief Executive Project Officer, in consultation with the

22 governing board and the chief executive officer of an orga23 nization receiving a grant under section 301, may require.

24 At a minimum, the application shall include—
69

•HR 1430 IH

1 (1) an assurance that the person shall use the

2 equipment funded through the loan to receive or dis3 seminate training through the infrastructure, for

4 such period as the Secretary may by regulation pre5 scribe; and

6 (2) an assurance that the person shall permit

7 other persons to use the equipment to receive or dis8 seminate training through the infrastructure, for

9 such period as the Secretary may by regulation pre10 scribe.

11 (d) LOANS.—In making loans under subsection (a),

12 the Chief Executive Project Officer shall—

13 (1) to the maximum extent practicable, equi14 tably distribute the loans among borrowers in the

15 various States, and among borrowers in urban, sub16 urban, and rural areas; and

17 (2) take into consideration the availability to

18 the borrowers of resources from sources other than

19 the Fund, including the availability of resources

20 through the partnerships described in section

21 301(c)(1).

22 (e) TERMS AND CONDITIONS.—

23 (1) CONDITIONS.—The Chief Executive Project

24 Officer may make a loan to a borrower under sub-
70

•HR 1430 IH

1 section (a) only if the Chief Executive Project Offi2 cer determines that—

3 (A) the borrower is unable to obtain re4 sources from other sources on reasonable terms

5 and conditions; and

6 (B) there is a reasonable prospect that the

7 borrower will repay the loan.

8 (2) TERMS.—A loan made under subsection (a)

9 shall be—

10 (A) for a term that does not exceed 4

11 years; and

12 (B) at no interest.

13 (3) COLLATERAL.—The Chief Executive Project

14 Officer may require any borrower of a loan made

15 under subsection (a) to provide such collateral as the

16 Chief Executive Project Officer determines to be

17 necessary to secure the loan.

18 (4) PROCEDURES AND DEFINITIONS.—Prior to

19 making loans under subsection (a), the Chief Execu20 tive Project Officer shall establish written proce21 dures and definitions pertaining to defaults and col22 lections of payments under the loans, which shall be

23 subject to the review and approval of the Secretary.

24 The governing board and chief executive officer of

25 the organization involved shall provide to each appli-
71

•HR 1430 IH

1 cant for a loan under subsection (a), at the time ap2 plication for the loan is made, a written copy of the

3 procedures and definitions.

4 (f) DEFAULTS.—

5 (1) NOTICE.—The Chief Executive Project Offi6 cer shall provide the governing board and the chief

7 executive officer of the organization at regular inter8 vals written notice of each loan made under sub9 section (a) that is in default and the status of the

10 loan.

11 (2) ACTION.—

12 (A) NOTIFICATION.—After making reason13 able efforts to collect all amounts payable under

14 a loan made under subsection (a) that is in de15 fault, the Chief Executive Project Officer shall

16 notify the governing board and the chief execu17 tive officer of the organization that the loan is

18 uncollectable or collectible only at an unreason19 able cost. The notification shall include rec20 ommendations for future action to be taken by

21 the Chief Executive Project Director.

22 (B) INSTRUCTIONS.—On receiving the no23 tification, the governing board and the chief ex24 ecutive officer of the organization shall advise

25 the Chief Executive Project Officer—
72

•HR 1430 IH

1 (i) to continue with its collection ac2 tivities;

3 (ii) to cancel, adjust, compromise, or

4 reduce the amount of the loan; or

5 (iii) to modify any term or condition

6 of the loan, including any term or condi7 tion relating to the time of payment of any

8 installment of principal, or portion of prin9 cipal, that is payable under the loan.

10 (g) ADMINISTRATION AND ASSISTANCE.—

11 (1) IN GENERAL.—Consistent with section

12 301(i), the Chief Executive Project Officer shall, out

13 of funds available in the Fund—

14 (A) pay expenses incurred by the Chief Ex15 ecutive Project Officer in administering the

16 Fund; and

17 (B) provide competent management and

18 technical assistance to borrowers of loans made

19 under subsection (a) to assist the borrowers to

20 achieve the purposes of the loans.

21 (2) ASSISTANCE BY THE SECRETARY.—The

22 Secretary shall provide to the chief executive officer

23 of the organization and the Chief Executive Project

24 Officer such management and technical assistance as

25 the chief executive officer of the organization and
73

•HR 1430 IH

1 the Chief Executive Project Officer may request in

2 order to carry out the provisions of this section.

3 (h) REGULATIONS.—The Secretary may prescribe

4 such regulations as may be necessary to carry out the ob5 jectives of this section, including regulations involving re6 porting and auditing.

7 TITLE IV—EXPANDING YOUTH

8 DEVELOPMENT OPPORTUNI9 TIES DURING NON-SCHOOL

10 HOURS

11 SEC. 401. PURPOSE.

12 The purpose of this title is to establish programs that

13 provide care for school-age youth during non-school hours,

14 in order to create activities for youth that better enable

15 youth to develop the skills and competencies that are nec16 essary to successfully transition from childhood to adult17 hood.

18 SEC. 402. DEFINITIONS.

19 In this title:

20 (1) ASSISTANT SECRETARY.—The term ‘‘As21 sistant Secretary’’ means the Assistant Secretary for

22 Children and Families of the Department of Health

23 and Human Services.

24 (2) NON-SCHOOL HOURS PROGRAM.—The term

25 ‘‘non-school hours program’’ means a program, such
74

•HR 1430 IH

1 as a youth development program, that provides care

2 for youth during non-school hours.

3 (3) PROTECTIVE FACTORS.—The term ‘‘protec4 tive factors’’ means research-based factors or activi5 ties that enable youth to resist high-risk behaviors

6 that may produce negative health or social outcomes.

7 (4) RISK FACTORS.—The term ‘‘risk factors’’

8 means research-based precursors that predict an in9 creased probability of developing high-risk behavior.

10 (5) YOUTH.—The term ‘‘youth’’ means an indi11 vidual who is attending an elementary or secondary

12 school, as defined in section 14101 of the Elemen13 tary and Secondary Education Act of 1965 (20

14 U.S.C. 8801).

15 (6) YOUTH DEVELOPMENT PROGRAM.—The

16 term ‘‘youth development program’’ means a pro17 gram that—

18 (A) in order to enable youth to deal suc19 cessfully with the challenges of adolescence and

20 prepare the youth for the independence and re21 sponsibilities of being parents, workers, and

22 citizens, helps the youth to develop—

23 (i) social competencies, such as work

24 and family life skills, problem-solving

25 skills, and communication skills;
75

•HR 1430 IH

1 (ii) physical competencies, such as

2 physical conditioning, endurance, and an

3 appreciation for and strategies to achieve

4 lifelong physical health and fitness;

5 (iii) emotional competencies, such as a

6 sense of personal identity, self-confidence,

7 autonomy, and the ability to resist negative

8 peer pressure;

9 (iv) moral competencies, such as char10 acter development, personal values, ethics,

11 and a sense of responsibility and citizen12 ship (including participation in civic life

13 and community service); and

14 (v) cognitive competencies, such as

15 knowledge, reasoning ability, creativity,

16 and a lifelong commitment to learning and

17 achievement;

18 (B) conducts activities that (excluding aca19 demic activities conducted outside the classroom

20 and tutoring) have a primarily nonacademic

21 focus;

22 (C) employs primarily active and experi23 mental learning methods;
76

•HR 1430 IH

1 (D) builds relationships between adults

2 who are positive adult role models and youth in

3 a non-school hours program setting; and

4 (E) promotes the competencies described

5 in subparagraph (A) through group or one-to6 one activities, which may include activities au7 thorized under section 408(b).

8 SEC. 403. ESTABLISHMENT OF PROGRAM.

9 (a) GRANTS.—The Assistant Secretary shall award

10 grants to eligible States, from allotments made under sec11 tion 404, to enable the eligible States to award grants to

12 entities to pay for the Federal share of the cost of estab13 lishing quality non-school hours programs.

14 (b) FEDERAL SHARE.—

15 (1) IN GENERAL.—The Federal share of the

16 cost described in subsection (a) shall be 80 percent.

17 (2) NON-FEDERAL SHARE.—The non-Federal

18 share of the cost described in subsection (a) may be

19 contributed in cash or in kind, fairly evaluated, in20 cluding facilities, equipment, or services (which may

21 be provided from State or local public sources or

22 through donations from private entities). For pur23 poses of this paragraph the term ‘‘facilities’’ includes

24 the use of facilities, but the term ‘‘equipment’’
77

•HR 1430 IH

1 means donated equipment and not the use of equip2 ment.

3 SEC. 404. STATE ALLOTMENTS.

4 (a) RESERVATION.—The Assistant Secretary shall reserve not more than 1 5 ⁄2 of 1 percent of the amount appro6 priated under section 412 for each fiscal year for pay7 ments to Guam, American Samoa, the United States Vir8 gin Islands, and the Commonwealth of the Northern Mar9 iana Islands, to be allotted in accordance with their re10 spective needs for assistance under this title.

11 (b) ALLOTMENTS.—From the amount appropriated

12 under section 412 for each fiscal year and remaining after

13 amounts are reserved under subsection (a), the Assistant

14 Secretary shall allot to each State that has an application

15 approved under section 405, an amount determined under

16 subsection (c).

17 (c) ALLOTMENT FORMULA.—

18 (1) IN GENERAL.—Subject to paragraph (2),

19 the Assistant Secretary shall allot to each State an

20 amount equal to the sum of—

21 (A) an amount that bears the same ratio

22 to 50 percent of the remainder described in

23 subsection (b) as the number of children and

24 youth who are age 5 through 17 in the State
78

•HR 1430 IH

1 bears to the number of such children and youth

2 in all States; and

3 (B) an amount that bears the same ratio

4 to 50 percent of the remainder as the number

5 of children and youth in the State who are re6 ceiving free or reduced price lunches under the

7 school lunch program established under the Na8 tional School Lunch Act (42 U.S.C. 1751 et

9 seq.) bears to the number of such children and

10 youth in all States.

11 (2) MINIMUM ALLOTMENT.—No State shall re12 ceive an allotment under paragraph (1) for a fiscal

year in an amount that is less than 1 13 ⁄2 of 1 percent

14 of the total amount appropriated for the fiscal year

15 under section 412.

16 (d) DATA AND INFORMATION.—The Assistant Sec17 retary shall obtain from each appropriate Federal agency,

18 the most recent data and information necessary to deter19 mine the allotments provided for in this section.

20 (e) REALLOTMENTS.—

21 (1) IN GENERAL.—Any portion of the allotment

22 to a State that is not used for activities under sec23 tion 408 or subsection (g), in the fiscal year for

24 which the allotment is made available, shall be real25 lotted by the Assistant Secretary to other States in
79

•HR 1430 IH

1 proportion to the original allotments to the other

2 States.

3 (2) LIMITATIONS.—

4 (A) REDUCTION OF REALLOTMENT

5 AMOUNT.—The amount of any reallotment to

6 which a State is entitled under paragraph (1)

7 shall be reduced to the extent that the allot8 ment exceeds the amount that the Assistant

9 Secretary estimates will be used by the State or

10 entities in the State to carry out activities

11 under section 408 or subsection (g).

12 (B) REALLOTMENT OF THE REDUCTION.—

13 The amount of any reduction under subpara14 graph (A) shall be reallotted among all other

15 States for which no reduction in an allotment

16 or reallotment is required by this subsection.

17 (3) AMOUNTS REALLOTTED.—For purposes of

18 this title, any amount reallotted to a State under

19 this subsection from an allotment made for a fiscal

20 year shall be considered to be part of the allotment

21 made under subsection (b) to the State for the fol22 lowing fiscal year.

23 (f) SUPPLEMENT NOT SUPPLANT.—Amounts re24 ceived under this section shall be used to supplement and
80

•HR 1430 IH

1 not supplant other Federal, State, and local public funds

2 expended to provide non-school hours programs.

3 (g) ADMINISTRATIVE COSTS.—A State that receives

4 a grant under this title may use—

5 (1) not more than 5 percent of the funds made

6 available through the grant to carry out training and

7 technical assistance activities under this title; and

8 (2) not more than an additional 10 percent of

9 the funds to pay for other costs associated with ad10 ministering activities under this title.

11 (h) DEFINITION.—In this section, the term ‘‘State’’

12 means the 50 States, the District of Columbia, and the

13 Commonwealth of Puerto Rico.

14 SEC. 405. STATE APPLICATION.

15 (a) IN GENERAL.—To be eligible for a grant under

16 this title, a State shall submit an application to the Assist17 ant Secretary at such time, in such manner, and accom18 panied by such information as the Assistant Secretary

19 may reasonably require.

20 (b) CONTENTS.—Each application submitted pursu21 ant to subsection (a) shall contain—

22 (1) such information as the Assistant Secretary

23 determines is necessary to ensure that the grant will

24 be distributed and used in accordance with this title;

25 and
81

•HR 1430 IH

1 (2) information designating administrative re2 gions (in which the administration of Federal or

3 State programs is carried out), or political subdivi4 sions, of the State as regions to which funds will be

5 allocated under section 406.

6 SEC. 406. LOCAL ALLOCATIONS AND GRANTS.

7 (a) ALLOCATIONS.—From the funds made available

8 to a State under section 404(b) for each fiscal year and

9 not used under section 404(g), the State shall allocate to

10 each region designated under section 405(b)(2) an amount

11 equal to the sum of—

12 (1) an amount that bears the same ratio to 50

13 percent of the remainder as the number of children

14 and youth who are age 5 through 17 in the region

15 bears to the number of such children and youth in

16 all regions of the State; and

17 (2) an amount that bears the same ratio to 50

18 percent of the remainder as the number of children

19 and youth in the region who are receiving free or re20 duced price lunches under the school lunch program

21 established under the National School Lunch Act

22 (42 U.S.C. 1751 et seq.) bears to the number of

23 such children and youth in all regions of the State.

24 (b) ALLOCATION DATA AND INFORMATION.—The

25 State shall obtain from each appropriate Federal or State
82

•HR 1430 IH

1 agency, the most recent data and information necessary

2 to determine the allocations provided for in this section.

3 (c) REALLOCATIONS.—

4 (1) IN GENERAL.—Any portion of the allocation

5 to a region that is not used for activities under sec6 tion 408, in the fiscal year for which the allocation

7 is made available, shall be reallocated by the State

8 to other regions in proportion to the original alloca9 tions.

10 (2) LIMITATIONS.—

11 (A) REDUCTION OF REALLOCATION

12 AMOUNT.—The amount of any reallocation to

13 which a region is entitled under paragraph (1)

14 shall be reduced to the extent that the alloca15 tion exceeds the amount that the State esti16 mates will be used by entities in the region to

17 carry out activities under section 408.

18 (B) REALLOCATION OF THE REDUC19 TION.—The amount of any reduction under

20 subparagraph (A) shall be reallocated among

21 other regions for which no reduction in an allo22 cation or reallocation is required by this sub23 section.

24 (3) AMOUNTS REALLOCATED.—For purposes of

25 this title, any amount reallocated to a region under
83

•HR 1430 IH

1 this subsection from an allocation made for a fiscal

2 year shall be considered to be part of the allocation

3 made under subsection (a) to the region for the fol4 lowing fiscal year.

5 (d) GRANTS.—The State shall use the funds allocated

6 to each region under subsection (a) to award grants, on

7 a competitive basis, to entities in that region.

8 (e) PREFERENCE.—In awarding a grant under sub9 section (d), the State shall give preference to an entity

10 that provides an assurance that the entity will use the

11 funds made available through the grant to carry out a

12 non-school hours program that will—

13 (1) have activities that are designed to remove

14 barriers to the availability of non-school hours child

15 care; and

16 (2) coordinate resources from public and pri17 vate entities to achieve a cohesive network consisting

18 of a variety of activities for youth.

19 (f) SUPPLEMENT NOT SUPPLANT.—Amounts re20 ceived under this section shall be used to supplement and

21 not supplant other Federal, State, and local public funds

22 expended to provide non-school hours programs.

23 SEC. 407. LOCAL APPLICATION.

24 (a) IN GENERAL.—An entity within a region that de25 sires to receive a grant under section 406 shall submit
84

•HR 1430 IH

1 an application to the State at such time, in such manner,

2 and accompanied by such information as the State may

3 require.

4 (b) CONTENTS.—Each application submitted pursu5 ant to subsection (a) shall contain—

6 (1) a statement that demonstrates that the en7 tity maintains cooperative agreements with a broad

8 range of community entities that provide direct or

9 indirect services to youth; and

10 (2) such information as the State determines is

11 necessary to ensure that the allocation will be dis12 tributed and used in accordance with this title.

13 SEC. 408. USE OF GRANT FUNDS.

14 (a) PROGRAM REQUIREMENTS.—Funds made avail15 able through a grant received under this title for a non16 school hours program shall be used by an entity to pay

17 for activities that—

18 (1) meet the child care needs of working par19 ents during non-school hours, including the hours

20 before and after school, weekends, school holidays,

21 vacation periods, and other non-school hours;

22 (2) address at least 2 of the competencies de23 scribed under paragraph (6)(A) of section 402;

24 (3) are designed to reduce risk factors;
85

•HR 1430 IH

1 (4) are designed to increase protective factors;

2 and

3 (5) are designed to assist youth in acquiring

4 skills and competencies necessary to make a success5 ful transition from childhood to adulthood.

6 (b) AUTHORIZED ACTIVITIES.—Funds made avail7 able through a grant received under this title may be used

8 by an entity for activities for youth, including activities

9 that focus on or promote—

10 (1) leadership development;

11 (2) mentoring;

12 (3) crime and delinquency prevention;

13 (4) community service or volunteerism;

14 (5) literacy;

15 (6) involvement in youth groups;

16 (7) sports and recreation;

17 (8) peer counseling and teaching;

18 (9) the arts;

19 (10) character development;

20 (11) prevention of violence, including domestic

21 violence;

22 (12) mediation skills training;

23 (13) drug abuse prevention;

24 (14) alcohol education;

25 (15) parenting skills;
86

•HR 1430 IH

1 (16) camping and environmental education;

2 (17) ethnic or cultural enrichment; and

3 (18) tutoring and academic enrichment.

4 (c) LIMITATION.—

5 (1) LOW-INCOME YOUTH.—Each entity that re6 ceives a grant under this title shall use not less than

7 50 percent of the funds made available through the

8 grant to subsidize the cost of activities described in

9 subsection (b) for youth who are children of families

10 that meet the income eligibility guidelines for free or

11 reduced price lunches under section 9(b) of the Na12 tional School Lunch Act (42 U.S.C. 1758(b)).

13 (2) INFORMATION.—An entity that receives a

14 grant under this title shall be considered to be a per15 son directly connected with the administration of a

16 Federal education program for purposes of section

17 9(b)(2)(C)(iii)(II)(aa) of the National School Lunch

18 Act (42 U.S.C. 1758(b)(2)(C)(iii)(II)(aa)). A school

19 serving youth who are receiving services under this

20 title from the entity shall provide information to the

21 entity on the income eligibility status of the youth

22 who are children described in section 9(b)(2)(C)(iv)

23 of such Act (42 U.S.C. 1758(b)(2)(C)(iv)), in ac24 cordance with that section, to enable the entity to

25 meet the requirements of paragraph (1).
87

•HR 1430 IH

1 SEC. 409. FEDERAL ADMINISTRATION; DUTIES OF THE AS2 SISTANT SECRETARY.

3 (a) MONITORING AND EVALUATION.—The Assistant

4 Secretary shall develop and establish a system for moni5 toring and evaluating the effectiveness of activities funded

6 under this title.

7 (b) COORDINATION.—The Assistant Secretary shall

8 consult with the heads of appropriate Federal agencies,

9 including the Administrator of the Office of Juvenile Jus10 tice and Delinquency Prevention, and other Federal offi11 cers carrying out Federal non-school hours programs, to

12 ensure effective coordination of activities funded under

13 this title with other Federal programs serving youth and

14 families.

15 (c) TRAINING AND TECHNICAL ASSISTANCE.—The

16 Assistant Secretary shall develop and establish a system

17 for providing training and technical assistance to States

18 and local entities to increase their capacity to provide

19 quality non-school hours programs.

20 (d) NONCOMPLIANCE.—If the Assistant Secretary de21 termines, based on a review of the annual reports, audits,

22 or other documentation required under this title, that a

23 State or an entity that receives a grant under this title

24 is not complying with the requirements of this title, the

25 Assistant Secretary shall—
88

•HR 1430 IH

1 (1) inform the State or entity of the deficiencies

2 that need correction;

3 (2) provide appropriate training and technical

4 assistance designed to correct the deficiencies and

5 ensure compliance with the requirements; and

6 (3) initiate actions to terminate funding to the

7 State or an entity under this title if, after a reason8 able period of time, the State or entity has not made

9 substantial efforts to correct the deficiencies and

10 comply with the requirements.

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

12 (a) DESIGNATION OF STATE ENTITY.—In order for

13 a State to receive a grant under this title, the Governor

14 of the State shall establish or designate an entity to ad15 minister the activities carried out in the State under this

16 title.

17 (b) YOUTH DEVELOPMENT INPUT.—The State shall

18 establish a mechanism to regularly receive advice and

19 input from a representative mix of individuals and organi20 zations that provide services under this title to youth, or

21 receive services under this title, to improve the effective22 ness and increase coordination of non-school hours pro23 grams under this title in the State.

24 (c) REVIEW AND COMPLIANCE.—
89

•HR 1430 IH

1 (1) MONITORING OPERATIONS.—The State

2 shall have primary responsibility for ensuring that

3 the grant is administered in compliance with this

4 title.

5 (2) TECHNICAL ASSISTANCE.—The State shall

6 provide technical assistance related to the develop7 ment and implementation of non-school hours pro8 grams receiving grants under this title.

9 (3) NONCOMPLIANCE.—If the State determines,

10 based on a review of the annual reports, audits, or

11 other documentation required under this title, that

12 an entity carrying out an activity funded by this title

13 is not complying with the requirements of this title,

14 the State shall—

15 (A) inform the entity of the deficiencies

16 that need correction;

17 (B) provide appropriate training and tech18 nical assistance designed to correct the defi19 ciencies and ensure compliance with the re20 quirements; and

21 (C) initiate actions to terminate funding to

22 the entity under this title if, after a reasonable

23 period of time, the entity has not made sub24 stantial efforts to correct the deficiencies and

25 comply with the requirements.
90

•HR 1430 IH

1 (d) ANNUAL REPORT AND AUDIT.—

2 (1) IN GENERAL.—Each State shall, not later

3 than 120 days after the end of each fiscal year of

4 the State, prepare and submit to the Assistant Sec5 retary an annual report, in such manner and con6 taining such information as the Assistant Secretary

7 may reasonably require to determine compliance

8 with this title.

9 (2) CONTENTS.—The report described in para10 graph (1) shall include—

11 (A) information on the activities funded in

12 the State under this title during the fiscal year;

13 and

14 (B) the extent to which the activities fund15 ed in the State have helped youth develop the

16 competencies described in paragraph (6) of sec17 tion 402.

18 (3) AUDIT.—Together with each report sub19 mitted under this section, the State shall submit the

20 findings of an independent audit conducted in ac21 cordance with chapter 75 of title 31, United States

22 Code, concerning such activities.

23 SEC. 411. COORDINATION WITH OTHER PROGRAMS.

24 Activities that receive funding under this title shall

25 be coordinated with programs and activities that receive
91

•HR 1430 IH

1 funding under the Safe and Drug-Free Schools and Com2 munities Act of 1994 (20 U.S.C. 7101 et seq.) or the 21st

3 Century Community Learning Centers Act (20 U.S.C.

4 8241 et seq.).

5 SEC. 412. AUTHORIZATION OF APPROPRIATIONS.

6 (a) IN GENERAL.—There is authorized to be appro7 priated to carry out this title—

8 (1) $500,000,000 for fiscal year 2000;

9 (2) $600,000,000 for fiscal year 2001;

10 (3) $700,000,000 for fiscal year 2002;

11 (4) $800,000,000 for fiscal year 2003; and

12 (5) $1,000,000,000 for fiscal year 2004.

13 (b) AVAILABILITY OF FUNDS.—Subject to sections

14 404(e) and 406(c), no State or entity that receives funds

15 during a fiscal year may expend the funds after the end

16 of the fiscal year.

17 TITLE V—CHILD CARE IN

18 FEDERAL FACILITIES

19 SEC. 501. SHORT TITLE.

20 This title may be cited as the ‘‘Federal Employees

21 Child Care Act’’.

22 SEC. 502. DEFINITIONS.

23 In this title (except as otherwise provided in section

24 505):
92

•HR 1430 IH

1 (1) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of General Serv3 ices.

4 (2) CHILD CARE ACCREDITATION ENTITY.—The

5 term ‘‘child care accreditation entity’’ means a non6 profit private organization or public agency that—

7 (A) is recognized by a State agency or by

8 a national organization that serves as a peer re9 view panel on the standards and procedures of

10 public and private child care or school accred11 iting bodies; and

12 (B) accredits a facility to provide child

13 care on the basis of—

14 (i) an accreditation or credentialing

15 instrument based on peer-validated re16 search;

17 (ii) compliance with applicable State

18 or local licensing requirements, as appro19 priate, for the facility;

20 (iii) outside monitoring of the facility;

21 and

22 (iv) criteria that provide assurances

23 of—
93

•HR 1430 IH

1 (I) use of developmentally appro2 priate health and safety standards at

3 the facility;

4 (II) use of developmentally ap5 propriate educational activities, as an

6 integral part of the child care pro7 gram carried out at the facility; and

8 (III) use of ongoing staff devel9 opment or training activities for the

10 staff of the facility, including related

11 skills-based testing.

12 (3) ENTITY SPONSORING A CHILD CARE FACIL13 ITY.—The term ‘‘entity sponsoring a child care facil14 ity’’ means a Federal agency that operates, or an

15 entity that enters into a contract or licensing agree16 ment with a Federal agency to operate, a child care

17 facility primarily for the use of Federal employees.

18 (4) EXECUTIVE AGENCY.—The term ‘‘Executive

19 agency’’ has the meaning given the term in section

20 105 of title 5, United States Code, except that the

21 term—

22 (A) does not include the Department of

23 Defense and the Coast Guard; and
94

•HR 1430 IH

1 (B) includes the General Services Adminis2 tration, with respect to the administration of a

3 facility described in paragraph (5)(B).

4 (5) EXECUTIVE FACILITY.—The term ‘‘execu5 tive facility’’—

6 (A) means a facility that is owned or

7 leased by an Executive agency; and

8 (B) includes a facility that is owned or

9 leased by the General Services Administration

10 on behalf of a judicial office.

11 (6) FEDERAL AGENCY.—The term ‘‘Federal

12 agency’’ means an Executive agency, a legislative of13 fice, or a judicial office.

14 (7) JUDICIAL FACILITY.—The term ‘‘judicial fa15 cility’’ means a facility that is owned or leased by a

16 judicial office (other than a facility that is also a fa17 cility described in paragraph (5)(B)).

18 (8) JUDICIAL OFFICE.—The term ‘‘judicial of19 fice’’ means an entity of the judicial branch of the

20 Federal Government.

21 (9) LEGISLATIVE FACILITY.—The term ‘‘legisla22 tive facility’’ means a facility that is owned or leased

23 by a legislative office.
95

•HR 1430 IH

1 (10) LEGISLATIVE OFFICE.—The term ‘‘legisla2 tive office’’ means an entity of the legislative branch

3 of the Federal Government.

4 (11) STATE.—The term ‘‘State’’ has the mean5 ing given the term in section 658P of the Child Care

6 and Development Block Grant Act of 1990 (42

7 U.S.C. 9858n).

8 SEC. 503. PROVIDING QUALITY CHILD CARE IN FEDERAL

9 FACILITIES.

10 (a) EXECUTIVE FACILITIES.—

11 (1) STATE AND LOCAL LICENSING REQUIRE12 MENTS.—

13 (A) IN GENERAL.—Any entity sponsoring

14 a child care facility in an executive facility

15 shall—

16 (i) comply with child care standards

17 described in paragraph (2) that are no less

18 stringent than applicable State or local li19 censing requirements that are related to

20 the provision of child care in the State or

21 locality involved; or

22 (ii) obtain the applicable State or local

23 licenses, as appropriate, for the facility.
96

•HR 1430 IH

1 (B) COMPLIANCE.—Not later than 6

2 months after the date of enactment of this

3 Act—

4 (i) the entity shall comply, or make

5 substantial progress (as determined by the

6 Administrator) toward complying, with

7 subparagraph (A); and

8 (ii) any contract or licensing agree9 ment used by an Executive agency for the

10 provision of child care services in the child

11 care facility shall include a condition that

12 the child care be provided by an entity that

13 complies with the standards described in

14 subparagraph (A)(i) or obtains the licenses

15 described in subparagraph (A)(ii).

16 (2) HEALTH, SAFETY, AND FACILITY STAND17 ARDS.—The Administrator shall by regulation estab18 lish standards relating to health, safety, facilities, fa19 cility design, and other aspects of child care that the

20 Administrator determines to be appropriate for child

21 care in executive facilities, and require child care fa22 cilities, and entities sponsoring child care facilities,

23 in executive facilities to comply with the standards.

24 The standards shall include requirements that child
97

•HR 1430 IH

1 care facilities be inspected for, and be free of, lead

2 hazards.

3 (3) ACCREDITATION STANDARDS.—

4 (A) IN GENERAL.—The Administrator

5 shall issue regulations requiring, to the max6 imum extent possible, any entity sponsoring an

7 eligible child care facility (as defined by the Ad8 ministrator) in an executive facility to comply

9 with standards of a child care accreditation en10 tity.

11 (B) COMPLIANCE.—The regulations shall

12 require that, not later than 3 years after the

13 date of enactment of this Act—

14 (i) the entity shall comply, or make

15 substantial progress (as determined by the

16 Administrator) toward complying, with the

17 standards; and

18 (ii) any contract or licensing agree19 ment used by an Executive agency for the

20 provision of child care services in the child

21 care facility shall include a condition that

22 the child care be provided by an entity that

23 complies with the standards.

24 (4) EVALUATION AND COMPLIANCE.—
98

•HR 1430 IH

1 (A) IN GENERAL.—The Administrator

2 shall evaluate the compliance, with the require3 ments of paragraph (1) and the regulations

4 issued pursuant to paragraphs (2) and (3), as

5 appropriate, of child care facilities, and entities

6 sponsoring child care facilities, in executive fa7 cilities. The Administrator may conduct the

8 evaluation of such a child care facility or entity

9 directly, or through an agreement with another

10 Federal agency or private entity, other than the

11 Federal agency for which the child care facility

12 is providing services. If the Administrator de13 termines, on the basis of such an evaluation,

14 that the child care facility or entity is not in

15 compliance with the requirements, the Adminis16 trator shall notify the Executive agency.

17 (B) EFFECT OF NONCOMPLIANCE.—On re18 ceipt of the notification of noncompliance issued

19 by the Administrator, the head of the Executive

20 agency shall—

21 (i) if the entity operating the child

22 care facility is the agency—

23 (I) not later than 2 business days

24 after the date of receipt of the notifi25 cation, correct any deficiencies that
99

•HR 1430 IH

1 are determined by the Administrator

2 to be life threatening or to present a

3 risk of serious bodily harm;

4 (II) not later than 4 months

5 after the date of receipt of the notifi6 cation, develop and provide to the Ad7 ministrator a plan to correct any

8 other deficiencies in the operation of

9 the facility and bring the facility and

10 entity into compliance with the re11 quirements;

12 (III) provide the parents of the

13 children receiving child care services

14 at the child care facility and employ15 ees of the facility with a notification

16 detailing the deficiencies described in

17 subclauses (I) and (II) and actions

18 that will be taken to correct the defi19 ciencies, and post a copy of the notifi20 cation in a conspicuous place in the

21 facility for 5 working days or until the

22 deficiencies are corrected, whichever is

23 later;

24 (IV) bring the child care facility

25 and entity into compliance with the
100

•HR 1430 IH

1 requirements and certify to the Ad2 ministrator that the facility and entity

3 are in compliance, based on an onsite

4 evaluation of the facility conducted by

5 an individual with expertise in child

6 care health and safety; and

7 (V) in the event that deficiencies

8 determined by the Administrator to be

9 life threatening or to present a risk of

10 serious bodily harm cannot be cor11 rected within 2 business days after

12 the date of receipt of the notification,

13 close the child care facility, or the af14 fected portion of the facility, until the

15 deficiencies are corrected and notify

16 the Administrator of the closure; and

17 (ii) if the entity operating the child

18 care facility is a contractor or licensee of

19 the Executive agency—

20 (I) require the contractor or li21 censee, not later than 2 business days

22 after the date of receipt of the notifi23 cation, to correct any deficiencies that

24 are determined by the Administrator
101

•HR 1430 IH

1 to be life threatening or to present a

2 risk of serious bodily harm;

3 (II) require the contractor or li4 censee, not later than 4 months after

5 the date of receipt of the notification,

6 to develop and provide to the head of

7 the agency a plan to correct any other

8 deficiencies in the operation of the

9 child care facility and bring the facil10 ity and entity into compliance with

11 the requirements;

12 (III) require the contractor or li13 censee to provide the parents of the

14 children receiving child care services

15 at the child care facility and employ16 ees of the facility with a notification

17 detailing the deficiencies described in

18 subclauses (I) and (II) and actions

19 that will be taken to correct the defi20 ciencies, and to post a copy of the no21 tification in a conspicuous place in the

22 facility for 5 working days or until the

23 deficiencies are corrected, whichever is

24 later;
102

•HR 1430 IH

1 (IV) require the contractor or li2 censee to bring the child care facility

3 and entity into compliance with the

4 requirements and certify to the head

5 of the agency that the facility and en6 tity are in compliance, based on an

7 onsite evaluation of the facility con8 ducted by an independent entity with

9 expertise in child care health and

10 safety; and

11 (V) in the event that deficiencies

12 determined by the Administrator to be

13 life threatening or to present a risk of

14 serious bodily harm cannot be cor15 rected within 2 business days after

16 the date of receipt of the notification,

17 close the child care facility, or the af18 fected portion of the facility, until the

19 deficiencies are corrected and notify

20 the Administrator of the closure,

21 which closure may be grounds for the

22 immediate termination or suspension

23 of the contract or license of the con24 tractor or licensee.
103

•HR 1430 IH

1 (C) COST REIMBURSEMENT.—The Execu2 tive agency shall reimburse the Administrator

3 for the costs of carrying out subparagraph (A)

4 for child care facilities located in an executive

5 facility other than an executive facility of the

6 General Services Administration. If an entity is

7 sponsoring a child care facility for 2 or more

8 Executive agencies, the Administrator shall allo9 cate the reimbursement costs with respect to

10 the entity among the agencies in a fair and eq11 uitable manner, based on the extent to which

12 each agency is eligible to place children in the

13 facility.

14 (5) DISCLOSURE OF PRIOR VIOLATIONS TO PAR15 ENTS AND FACILITY EMPLOYEES.—

16 (A) IN GENERAL.—The Administrator

17 shall issue regulations that require that each

18 entity sponsoring a child care facility in an ex19 ecutive facility, upon receipt by the child care

20 facility or the entity (as applicable) of a request

21 by any individual who is—

22 (i) a parent of any child enrolled at

23 the facility;
104

•HR 1430 IH

1 (ii) a parent of a child for whom an

2 application has been submitted to enroll at

3 the facility; or

4 (iii) an employee of the facility;

5 shall provide to the individual the copies and

6 description described in subparagraph (B).

7 (B) COPIES AND DESCRIPTION.—The enti8 ty shall provide—

9 (i) copies of all notifications of defi10 ciencies that have been provided in the

11 past with respect to the facility under

12 clause (i)(III) or (ii)(III), as applicable, of

13 paragraph (4)(B); and

14 (ii) a description of the actions that

15 were taken to correct the deficiencies.

16 (b) LEGISLATIVE FACILITIES.—

17 (1) ACCREDITATION.—The Chief Administra18 tive Officer of the House of Representatives, the Li19 brarian of Congress, and the head of a designated

20 entity in the Senate shall ensure that, not later than

21 1 year after the date of enactment of this Act, the

22 corresponding child care facility obtains accredita23 tion by a child care accreditation entity, in accord24 ance with the accreditation standards of the entity.

25 (2) REGULATIONS.—
105

•HR 1430 IH

1 (A) IN GENERAL.—If the corresponding

2 child care facility does not maintain accredita3 tion status with a child care accreditation enti4 ty, the Chief Administrative Officer of the

5 House of Representatives, the Librarian of Con6 gress, or the head of the designated entity in

7 the Senate shall issue regulations governing the

8 operation of the corresponding child care facil9 ity, to ensure the safety and quality of care of

10 children placed in the facility. The regulations

11 shall be no less stringent in content and effect

12 than the requirements of subsection (a)(1) and

13 the regulations issued by the Administrator

14 under paragraphs (2) and (3) of subsection (a),

15 except to the extent that appropriate adminis16 trative officers make the determination de17 scribed in subparagraph (B).

18 (B) MODIFICATION MORE EFFECTIVE.—

19 The determination referred to in subparagraph

20 (A) is a determination, for good cause shown

21 and stated together with the regulations, that a

22 modification of the regulations would be more

23 effective for the implementation of the require24 ments and standards described in subsection (a)

25 for the corresponding child care facilities, and
106

•HR 1430 IH

1 entities sponsoring the corresponding child care

2 facilities, in legislative facilities.

3 (3) CORRESPONDING CHILD CARE FACILITY.—

4 In this subsection, the term ‘‘corresponding child

5 care facility’’, used with respect to the Chief Admin6 istrative Officer, the Librarian, or the head of a des7 ignated entity described in paragraph (1), means a

8 child care facility operated by, or under a contract

9 or licensing agreement with, an office of the House

10 of Representatives, the Library of Congress, or an

11 office of the Senate, respectively.

12 (c) JUDICIAL BRANCH STANDARDS AND COMPLI13 ANCE.—

14 (1) STATE AND LOCAL LICENSING REQUIRE15 MENTS HEALTH, SAFETY, AND FACILITY STAND16 ARDS, AND ACCREDITATION STANDARDS.—The Di17 rector of the Administrative Office of the United

18 States Courts shall issue regulations for child care

19 facilities, and entities sponsoring child care facilities,

20 in judicial facilities, which shall be no less stringent

21 in content and effect than the requirements of sub22 section (a)(1) and the regulations issued by the Ad23 ministrator under paragraphs (2) and (3) of sub24 section (a), except to the extent that the Director

25 may determine, for good cause shown and stated to-
107

•HR 1430 IH

1 gether with the regulations, that a modification of

2 such regulations would be more effective for the im3 plementation of the requirements and standards de4 scribed in paragraphs (1), (2), and (3) of subsection

5 (a) for child care facilities, and entities sponsoring

6 child care facilities, in judicial facilities.

7 (2) EVALUATION AND COMPLIANCE.—

8 (A) DIRECTOR OF THE ADMINISTRATIVE

9 OFFICE OF THE UNITED STATES COURTS.—The

10 Director of the Administrative Office of the

11 United States Courts shall have the same au12 thorities and duties with respect to the evalua13 tion of, compliance of, and cost reimbursement

14 for child care facilities, and entities sponsoring

15 child care facilities, in judicial facilities as the

16 Administrator has under subsection (a)(4) with

17 respect to the evaluation of, compliance of, and

18 cost reimbursement for such centers and enti19 ties sponsoring such centers, in executive facili20 ties.

21 (B) HEAD OF A JUDICIAL OFFICE.—The

22 head of a judicial office shall have the same au23 thorities and duties with respect to the compli24 ance of and cost reimbursement for child care

25 facilities, and entities sponsoring child care fa-
108

•HR 1430 IH

1 cilities, in judicial facilities as the head of an

2 Executive agency has under subsection (a)(4)

3 with respect to the compliance of and cost reim4 bursement for such centers and entities spon5 soring such centers, in executive facilities.

6 (d) APPLICATION.—Notwithstanding any other provi7 sion of this section, if 8 or more child care facilities are

8 sponsored in facilities owned or leased by an Executive

9 agency, the Administrator shall delegate to the head of

10 the agency the evaluation and compliance responsibilities

11 assigned to the Administrator under subsection (a)(4)(A).

12 (e) TECHNICAL ASSISTANCE, STUDIES, AND RE13 VIEWS.—The Administrator may provide technical assist14 ance, and conduct and provide the results of studies and

15 reviews, for Executive agencies, and entities sponsoring

16 child care facilities in executive facilities, on a reimburs17 able basis, in order to assist the entities in complying with

18 this section. The Chief Administrative Officer of the

19 House of Representatives, the Librarian of Congress, the

20 head of the designated Senate entity described in sub21 section (b), and the Director of the Administrative Office

22 of the United States Courts, may provide technical assist23 ance, and conduct and provide the results of studies and

24 reviews, or request that the Administrator provide tech25 nical assistance, and conduct and provide the results of
109

•HR 1430 IH

1 studies and reviews, for legislative offices and judicial of2 fices, as appropriate, and entities operating child care fa3 cilities in legislative facilities or judicial facilities, as ap4 propriate, on a reimbursable basis, in order to assist the

5 entities in complying with this section.

6 (f) INTERAGENCY COUNCIL.—

7 (1) COMPOSITION.—The Administrator shall es8 tablish an interagency council, comprised of—

9 (A) representatives of all Executive agen10 cies described in subsection (d) and other Exec11 utive agencies at the election of the heads of the

12 agencies;

13 (B) a representative of the Chief Adminis14 trative Officer of the House of Representatives,

15 at the election of the Chief Administrative Offi16 cer;

17 (C) a representative of the head of the des18 ignated Senate entity described in subsection

19 (b), at the election of the head of the entity;

20 (D) a representative of the Librarian of

21 Congress, at the election of the Librarian; and

22 (E) a representative of the Director of the

23 Administrative Office of the United States

24 Courts, at the election of the Director.
110

•HR 1430 IH

1 (2) FUNCTIONS.—The council shall facilitate

2 cooperation and sharing of best practices, and de3 velop and coordinate policy, regarding the provision

4 of child care, including the provision of areas for

5 nursing mothers and other lactation support facili6 ties and services, in the Federal Government.

7 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

8 authorized to be appropriated to carry out this section

9 $900,000 for fiscal year 2000 and such sums as may be

10 necessary for each subsequent fiscal year.

11 SEC. 504. FEDERAL CHILD CARE EVALUATION.

12 (a) IN GENERAL.—Not later than 1 year after the

13 date of enactment of this Act, the Administrator and the

14 Director of the Office of Personnel Management shall

15 jointly prepare and submit to Congress a report that eval16 uates child care provided by entities sponsoring child care

17 facilities in executive facilities, legislative facilities, or judi18 cial facilities.

19 (b) CONTENTS.—The evaluation shall contain, at a

20 minimum—

21 (1) information on the number of children re22 ceiving child care described in subsection (a), ana23 lyzed by age, including information on the number

24 of those children who are age 6 through 12;
111

•HR 1430 IH

1 (2) information on the number of families not

2 using child care described in subsection (a) because

3 of the cost of the child care; and

4 (3) recommendations for improving the quality

5 and cost effectiveness of child care described in sub6 section (a), including recommendations of options

7 for creating an optimal organizational structure and

8 using best practices for the delivery of the child

9 care.

10 SEC. 505. CHILD CARE SERVICES FOR FEDERAL EMPLOY11 EES.

12 (a) IN GENERAL.—In addition to services authorized

13 to be provided by an agency of the United States pursuant

14 to section 616 of the Act of December 22, 1987 (40

15 U.S.C. 490b), an Executive agency that provides or pro16 poses to provide child care services for Federal employees

17 may use agency funds to provide the child care services,

18 in a facility that is owned or leased by an Executive agen19 cy, or through a contractor, for civilian employees of the

20 agency.

21 (b) AFFORDABILITY.—Funds so used with respect to

22 any such facility or contractor shall be applied to improve

23 the affordability of child care for lower income Federal

24 employees using or seeking to use the child care services

25 offered by the facility or contractor.
112

•HR 1430 IH

1 (c) REGULATIONS.—The Administrator, after con2 sultation with the Director of the Office of Personnel Man3 agement, shall, within 180 days after the date of enact4 ment of this Act, issue regulations necessary to carry out

5 this section.

6 (d) DEFINITION.—For purposes of this section, the

7 term ‘‘Executive agency’’ has the meaning given the term

8 by section 105 of title 5, United States Code, but does

9 not include the General Accounting Office.

10 SEC. 506. MISCELLANEOUS PROVISIONS RELATING TO

11 CHILD CARE PROVIDED BY FEDERAL AGEN12 CIES.

13 (a) AVAILABILITY OF FEDERAL CHILD CARE CEN14 TERS FOR ONSITE CONTRACTORS; PERCENTAGE GOAL.—

15 Section 616 of the Act of December 22, 1987 (40 U.S.C.

16 490b) is amended—

17 (1) in subsection (a)—

18 (A) by striking ‘‘officer or agency of the

19 United States’’ and inserting ‘‘Federal agency

20 or officer of a Federal agency’’; and

21 (B) by striking paragraphs (2) and (3) and

22 inserting the following:

23 ‘‘(2) the officer or agency determines that the

24 space will be used to provide child care and related

25 services to—
113

•HR 1430 IH

1 ‘‘(A) children of Federal employees or on2 site Federal contractors; or

3 ‘‘(B) dependent children who live with

4 Federal employees or onsite Federal contrac5 tors; and

6 ‘‘(3) the officer or agency determines that the

7 individual or entity will give priority for available

8 child care and related services in the space to Fed9 eral employees and onsite Federal contractors.’’; and

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

11 ‘‘(e)(1)(A) The Administrator of General Services

12 shall confirm that at least 50 percent of aggregate enroll13 ment in Federal child care centers governmentwide are

14 children of Federal employees or onsite Federal contrac15 tors, or dependent children who live with Federal employ16 ees or onsite Federal contractors.

17 ‘‘(B) Each provider of child care services at an indi18 vidual Federal child care center shall maintain 50 percent

19 of the enrollment at the center of children described under

20 subparagraph (A) as a goal for enrollment at the center.

21 ‘‘(C)(i) If enrollment at a center does not meet the

22 percentage goal under subparagraph (B), the provider

23 shall develop and implement a business plan with the

24 sponsoring Federal agency to achieve the goal within a

25 reasonable timeframe.
114

•HR 1430 IH

1 ‘‘(ii) The plan shall be approved by the Administrator

2 of General Services based on—

3 ‘‘(I) compliance of the plan with standards es4 tablished by the Administrator; and

5 ‘‘(II) the effect of the plan on achieving the ag6 gregate Federal enrollment percentage goal.

7 ‘‘(2) The Administrator of General Services Adminis8 tration may enter into public-private partnerships or con9 tracts with nongovernmental entities to increase the ca10 pacity, quality, affordability, or range of child care and

11 related services and may, on a demonstration basis, waive

12 subsection (a)(3) and paragraph (1) of this subsection.’’.

13 (b) PAYMENT OF COSTS OF TRAINING PROGRAMS.—

14 Section 616(b)(3) of such Act (40 U.S.C. 490b(b)(3)) is

15 amended to read as follows:

16 ‘‘(3) If a Federal agency has a child care facility in

17 a Federal space, or is a sponsoring agency for a child care

18 facility in a Federal space, the agency or the General Serv19 ices Administration may pay accreditation fees, including

20 renewal fees, for that center to be accredited. Any Federal

21 agency that provides or proposes to provide child care

22 services for children referred to in subsection (a)(2), may

23 reimburse any Federal employee or any person employed

24 to provide the services for the costs of training programs,

25 conferences, and meetings and related travel, transpor-
115

•HR 1430 IH

1 tation, and subsistence expenses incurred in connection

2 with those activities. Any per diem allowance made under

3 this section shall not exceed the rate specified in regula4 tions prescribed under section 5707 of title 5, United

5 States Code.’’.

6 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

7 Section 616(c) of such Act (40 U.S.C. 490b(c)) is

8 amended—

9 (1) by inserting ‘‘Federal’’ before ‘‘child care

10 centers’’; and

11 (2) by striking ‘‘Federal workers’’ and inserting

12 ‘‘Federal employees’’.

13 (d) PROVISION OF CHILD CARE BY PRIVATE ENTI14 TIES.—Section 616(d) of such Act (40 U.S.C. 490b(d))

15 is amended to read as follows:

16 ‘‘(d)(1) If a Federal agency has a child care facility

17 in a Federal space, or is a sponsoring agency for a child

18 care facility in a Federal space, the agency, the child care

19 center board of directors, or the General Services Adminis20 tration may enter into an agreement with 1 or more pri21 vate entities under which the private entities would assist

22 in defraying the general operating expenses of the child

23 care providers including salaries and tuition assistance

24 programs at the facility.
116

•HR 1430 IH

1 ‘‘(2)(A) Notwithstanding any other provision of law,

2 if a Federal agency does not have a child care program,

3 or if the Administrator of General Services has identified

4 a need for child care for Federal employees at a Federal

5 agency providing child care services that do not meet the

6 requirements of subsection (a), the agency or the Adminis7 trator may enter into an agreement with a non-Federal,

8 licensed, and accredited child care facility, or a planned

9 child care facility that will become licensed and accredited,

10 for the provision of child care services for children of Fed11 eral employees.

12 ‘‘(B) Before entering into an agreement, the head of

13 the Federal agency shall determine that child care services

14 to be provided through the agreement are more cost effec15 tively provided through the arrangement than through es16 tablishment of a Federal child care facility.

17 ‘‘(C) The Federal agency may provide any of the

18 services described in subsection (b)(3) if, in exchange for

19 the services, the facility reserves child care spaces for chil20 dren referred to in subsection (a)(2), as agreed to by the

21 parties. The cost of any such services provided by a Fed22 eral agency to a Federal child care facility on behalf of

23 another Federal agency shall be reimbursed by the receiv24 ing agency.
117

•HR 1430 IH

1 ‘‘(3) This subsection does not apply to residential

2 child care programs.’’.

3 (e) PILOT PROJECTS.—Section 616 of such Act (40

4 U.S.C. 490b) is further amended by adding at the end

5 the following:

6 ‘‘(f)(1) Upon approval of the agency head, a Federal

7 agency may conduct a pilot project not otherwise author8 ized by law for no more than 2 years to test innovative

9 approaches to providing alternative forms of quality child

10 care assistance for Federal employees. A Federal agency

11 head may extend a pilot project for an additional 2-year

12 period. Before any pilot project may be implemented, a

13 determination shall be made by the agency head that initi14 ating the pilot project would be more cost-effective than

15 establishing a new Federal child care facility. Costs of any

16 pilot project shall be paid solely by the agency conducting

17 the pilot project.

18 ‘‘(2) The Administrator of General Services shall

19 serve as an information clearinghouse for pilot projects

20 initiated by other Federal agencies to disseminate infor21 mation concerning the pilot projects to the other Federal

22 agencies.

23 ‘‘(3) Within 6 months after completion of the initial

24 2-year pilot project period, a Federal agency conducting

25 a pilot project under this subsection shall provide for an
118

•HR 1430 IH

1 evaluation of the impact of the project on the delivery of

2 child care services to Federal employees, and shall submit

3 the results of the evaluation to the Administrator of Gen4 eral Services. The Administrator shall share the results

5 with other Federal agencies.’’.

6 (f) BACKGROUND CHECK.—Section 616 of such Act

7 (40 U.S.C. 490b) is further amended by adding at the

8 end the following:

9 ‘‘(g) Each Federal child care center located in a Fed10 eral space shall ensure that each employee of the center

11 (including any employee whose employment began before

12 the date of enactment of this subsection) shall undergo

13 a criminal history background check consistent with sec14 tion 231 of the Crime Control Act of 1990 (42 U.S.C.

15 13041).’’.

16 (g) DEFINITIONS.—Section 616 of such Act (40

17 U.S.C. 490b) is further amended by adding at the end

18 the following:

19 ‘‘(h) In this section:

20 ‘‘(1) The term ‘Federal agency’ has the mean21 ing given the term ‘Executive agency’ in section 502

22 of the Federal Employees Child Care Act.

23 ‘‘(2) The terms ‘Federal building’ and ‘Federal

24 space’ have the meanings given the term ‘executive

25 facility’ in such section 502.
119

•HR 1430 IH

1 ‘‘(3) The term ‘Federal child care center’

2 means a child care center in an executive facility, as

3 defined in such section 502.

4 ‘‘(4) The terms ‘Federal contractor’ and ‘Fed5 eral employee’ mean a contractor and an employee,

6 respectively, of an Executive agency, as defined in

7 such section 502.’’.

8 TITLE VI—EXPANDING CHILD

9 CARE SUBSIDY FOR LOW-IN10 COME FAMILIES

11 SEC. 601. AUTHORIZATION OF APPROPRIATIONS.

12 Section 658B of the Child Care and Development

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

14 by striking ‘‘$1,000,000,000’’ and inserting

15 ‘‘$2,000,000,000’’.

16 SEC. 602. APPLICATION AND PLAN.

17 Section 658E(c) of the Child Care and Development

18 Block Grant Act of 1990 (42 U.S.C. 9858c(c)) is

19 amended—

20 (1) in paragraph (2), by striking subparagraph

21 (H) and inserting the following:

22 ‘‘(H) Provide an assurance that if the

23 State uses an automated system described in

24 section 658K(a)(3), the State will ensure that

25 the system—
120

•HR 1430 IH

1 ‘‘(i) if used to provide payment for

2 child care services, operates in a manner

3 that ensures prompt and accurate payment

4 of child care providers; and

5 ‘‘(ii) does not limit parental choice.’’;

6 (2) in paragraph (3)(D)—

7 (A) by striking ‘‘a substantial portion’’ and

8 inserting ‘‘not less than 70 percent’’; and

9 (B) by striking ‘‘described in paragraph

10 (2)(H)’’ and inserting ‘‘receiving assistance

11 under a State program under part A of title IV

12 of the Social Security Act (42 U.S.C. 601 et

13 seq.), families attempting to transition off the

14 assistance program through work activities, and

15 families that are at risk of becoming dependent

16 on the assistance program’’;

17 (3) in paragraph (4)(A)—

18 (A) by inserting ‘‘, of the type chosen by

19 the parents of the children,’’ after ‘‘comparable

20 child care services’’; and

21 (B) by adding at the end the following:

22 ‘‘To ensure maximum parental choice, the State

23 plan shall provide that the rates for the State

24 shall be determined under separate rate sched25 ules dependent upon—
121

•HR 1430 IH

1 ‘‘(i) the age of the child served;

2 ‘‘(ii) the child care setting;

3 ‘‘(iii) the special needs of the child;

4 and

5 ‘‘(iv) the geographic location of the

6 services within a State.’’; and

7 (4) in paragraph (5)—

8 (A) by striking ‘‘The’’ and inserting the

9 following:

10 ‘‘(A) IN GENERAL.—The’’; and

11 (B) by inserting after subparagraph (A)

12 (as designated in subparagraph (A)) the fol13 lowing:

14 ‘‘(B) APPLICATION OF COPAYMENT.—The

15 State plan shall provide that, if the State pro16 vides to a family a subsidy authorized under

17 this subchapter that is less than 85 percent of

18 the applicable market rate determined under

19 paragraph (4) and also requires a copayment

20 from the family to meet the cost sharing re21 quirement of subparagraph (A), the State shall

22 reduce the amount of the copayment by the

23 amount of the difference between the market

24 rate and the subsidy.’’.
122

•HR 1430 IH

1 SEC. 603. AUTOMATED SYSTEMS.

2 Section 658K(a) of the Child Care and Development

3 Block Grant Act of 1990 (42 U.S.C. 9858i(a)) is amended

4 by adding at the end the following:

5 ‘‘(3) AUTOMATED SYSTEMS.—A State that re6 ceives funds to carry out this subchapter may use an

7 automated system, including an electronic benefit

8 transfer system—

9 ‘‘(A) for monitoring or tracking child care

10 attendance or otherwise conducting data collec11 tion under this subchapter;

12 ‘‘(B) as a means of ensuring prompt and

13 accurate payment for child care services under

14 this subchapter; or

15 ‘‘(C) for other purposes that increase the

16 efficiency of the State in administering the

17 funds.’’.
123

•HR 1430 IH

1 TITLE VII—CONSTRUCTION AND

2 RENOVATION OF CHILD CARE

3 FACILITIES

4 Subtitle A—Community

5 Development Block Grants

6 SEC. 701. USE OF COMMUNITY DEVELOPMENT BLOCK

7 GRANTS TO ESTABLISH CHILD CARE FACILI8 TIES.

9 Section 105(a) of the Housing and Community De10 velopment Act of 1974 (42 U.S.C. 5305(a)) is amended—

11 (1) in paragraph (22), by striking ‘‘and’’ at the

12 end;

13 (2) in paragraph (23), by striking the period at

14 the end and inserting a semicolon;

15 (3) in paragraph (24), by striking ‘‘and’’ at the

16 end;

17 (4) in paragraph (25), by striking the period at

18 the end and inserting ‘‘; and’’; and

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

20 ‘‘(26) the construction and renovation of child

21 care facilities.’’.
124

•HR 1430 IH

1 Subtitle B—Mortgage Insurance

2 For Child Care Facilities

3 SEC. 711. INSURANCE FOR MORTGAGES ON NEW AND RE4 HABILITATED CHILD CARE FACILITIES.

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

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

7 ‘‘SEC. 257. MORTGAGE INSURANCE FOR CHILD CARE FA8 CILITIES.

9 ‘‘(a) DEFINITIONS.—In this section:

10 ‘‘(1) CHILD CARE FACILITY.—The term ‘child

11 care facility’—

12 ‘‘(A) means a public or private facility

13 that—

14 ‘‘(i) has as its purpose the care and

15 development of—

16 ‘‘(I) children who are less than

17 16 years of age; or

18 ‘‘(II) school-age children and

19 youth during non-school hours; and

20 ‘‘(ii) is operated in accordance with all

21 applicable State and local laws and regula22 tions; and

23 ‘‘(B) does not include any facility for

24 school-age children that is primarily for use

25 during normal school hours.
125

•HR 1430 IH

1 ‘‘(2) EQUIPMENT.—The term ‘equipment’

2 includes—

3 ‘‘(A) machinery, utilities, and built-in

4 equipment, and any necessary enclosure or

5 structure to house them; and

6 ‘‘(B) any other items necessary for the

7 functioning of a particular facility as a child

8 care facility, including necessary furniture,

9 books, and curricular and program materials.

10 ‘‘(3) FIRST MORTGAGE.—The term ‘first

11 mortgage’—

12 ‘‘(A) means such classes of first liens as

13 are commonly given to secure advances (includ14 ing advances during construction) on, or the

15 unpaid purchase price of, real estate under the

16 laws of the State in which the real estate is lo17 cated, together with the credit instrument or in18 struments (if any) secured thereby; and

19 ‘‘(B) includes any mortgage in the form of

20 1 or more trust mortgages or mortgage inden21 tures or deeds of trust, securing notes, bonds,

22 or other credit instruments, that, by the same

23 instrument or by a separate instrument, creates

24 a security interest in initial equipment, whether

25 or not attached to the realty.
126

•HR 1430 IH

1 ‘‘(4) MORTGAGE.—The term ‘mortgage’ means

2 a first mortgage on real estate in fee simple, or on

3 the interest of either the lessor or lessee thereof

4 under a lease having a period of not less than 7

5 years to run beyond the maturity date of the mort6 gage.

7 ‘‘(5) MORTGAGOR.—The term ‘mortgagor’ has

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

9 ‘‘(b) INSURANCE OF MORTGAGES.—In order to facili10 tate the establishment and rehabilitation of child care fa11 cilities, the Secretary may—

12 ‘‘(1) insure a mortgage that is secured by a

13 property or project that is—

14 ‘‘(A) a new child care facility, including a

15 new addition to an existing child care facility

16 (regardless of whether the existing facility is

17 being rehabilitated); or

18 ‘‘(B) a substantially rehabilitated child

19 care facility, including equipment to be used in

20 the operation of the facility; and

21 ‘‘(2) make a commitment to insure any mort22 gage described in paragraph (1) before the date of

23 execution or disbursement of the mortgage.

24 ‘‘(c) TERMS AND CONDITIONS.—
127

•HR 1430 IH

1 ‘‘(1) ELIGIBLE CHILD CARE FACILITIES.—Each

2 mortgage insured under this section shall be secured

3 by a child care facility for which a certification of

4 compliance has been issued by the Secretary under

5 section 258(c) during the 12-month period preceding

6 the date on which the commitment to insure the

7 mortgage is issued under this section.

8 ‘‘(2) APPROVED MORTGAGOR.—

9 ‘‘(A) IN GENERAL.—Each mortgage in10 sured under this section shall be executed by a

11 mortgagor approved by the Secretary.

12 ‘‘(B) REGULATION.—The Secretary may—

13 ‘‘(i) require an approved mortgagor

14 who executes a mortgage under subpara15 graph (A) to be regulated with respect to

16 charges and methods of financing and, if

17 the mortgagor is a corporate entity, with

18 respect to capital structure and rate of re19 turn; and

20 ‘‘(ii) as an aid to the regulation of any

21 mortgagor under clause (i), make such

22 contracts with and acquire for not more

23 than $100 such stock or interest in such

24 mortgagor as the Secretary considers to be

25 necessary.
128

•HR 1430 IH

1 ‘‘(C) STOCK OR INTEREST.—Any stock or

2 interest purchased under subparagraph (B)(ii)

3 shall be—

4 ‘‘(i) paid for out of the General Insur5 ance Fund; and

6 ‘‘(ii) redeemed by the mortgagor at

7 par upon the termination of all obligations

8 of the Secretary under the insurance.

9 ‘‘(3) PRINCIPAL OBLIGATION.—Each mortgage

10 insured under this section shall involve a principal

11 obligation in an amount not to exceed 90 percent of

12 the estimated value of the property or project, or 95

13 percent of the estimated value of the property or

14 project in the case of a mortgagor that is a private

15 nonprofit corporation or association (as defined pur16 suant to section 221(d)(3)), including—

17 ‘‘(A) equipment to be used in the operation

18 of the facility when the proposed improvements

19 are completed and the equipment is installed; or

20 ‘‘(B) a solar energy system (as defined in

21 subparagraph (3) of the last paragraph of sec22 tion 2(a)) or residential energy conservation

23 measures (as defined in subparagraphs (A)

24 through (G) and (I) of section 210(11) of the

25 National Energy Conservation Policy Act), in
129

•HR 1430 IH

1 cases in which the Secretary determines that

2 such measures are in addition to those required

3 under the minimum property standards and will

4 be cost-effective over the life of the measure.

5 ‘‘(4) AMORTIZATION AND INTEREST.—Each

6 mortgage insured under this section shall—

7 ‘‘(A) provide for complete amortization by

8 periodic payments under such terms as the Sec9 retary shall prescribe;

10 ‘‘(B) have a maturity date satisfactory to

11 the Secretary, but in no event longer than 25

12 years; and

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

14 agreed upon by the mortgagor and the mort15 gagee, and the Secretary shall not issue any

16 regulations or establish any terms or conditions

17 that interfere with the ability of the mortgagor

18 and mortgagee to determine the interest rate.

19 ‘‘(5) RELEASE.—The Secretary may consent to

20 the release of a part or parts of the mortgaged prop21 erty or project from the lien of any mortgage in22 sured under this section upon such terms and condi23 tions as the Secretary may prescribe.

24 ‘‘(6) MORTGAGE INSURANCE TERMS.—Sub25 sections (d), (e), (g), (h), (i), (j), (k), (l), and (n) of
130

•HR 1430 IH

1 section 207 apply to any mortgage insured under

2 this section, except that all references in such sub3 sections to section 207 shall be construed, for pur4 poses of mortgage insurance under this section, to

5 refer to this section.

6 ‘‘(d) MORTGAGE INSURANCE FOR FIRE SAFETY

7 EQUIPMENT LOANS.—

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

9 such terms and conditions as the Secretary may pre10 scribe, make commitments to insure and insure

11 loans made by financial institutions or other ap12 proved mortgagees to child care facilities to provide

13 for the purchase and installation of fire safety equip14 ment necessary for compliance with the 1967 edition

15 of the Life Safety Code of the National Fire Protec16 tion Association (or any subsequent edition specified

17 by the Secretary of Health and Human Services).

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

19 insurance under this subsection a loan shall—

20 ‘‘(A) not exceed the estimate by the Sec21 retary of the reasonable cost of the equipment

22 fully installed;

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

24 agreed upon by the mortgagor and the mort25 gagee;
131

•HR 1430 IH

1 ‘‘(C) have a maturity date satisfactory to

2 the Secretary;

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

4 other mortgagee approved by the Secretary as

5 eligible for insurance under section 2 or a mort6 gagee approved under section 203(b)(1);

7 ‘‘(E) comply with other such terms, condi8 tions, and restrictions as the Secretary may

9 prescribe; and

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

11 facility for which a certification of compliance

12 has been issued by the Secretary under section

13 258(c) during the 12-month period preceding

14 the date on which the commitment to insure is

15 issued under this subsection.

16 ‘‘(3) INSURANCE REQUIREMENTS.—

17 ‘‘(A) SECTION 2.—Subsections (c), (d),

18 and (h) of section 2 shall apply to any loan in19 sured under this subsection, except that all ref20 erences in such subsections to ‘this section’ or

21 ‘this title’ shall be construed, for purposes of

22 this subsection, to refer to this subsection.

23 ‘‘(B) SECTION 220.—Paragraphs (5), (6),

24 (7), (9), and (10) of section 220(h) shall apply

25 to any loan insured under this subsection, ex-
132

•HR 1430 IH

1 cept that all references in such paragraphs to

2 home improvement loans shall be construed, for

3 purposes of this subsection, to refer to loans

4 under this subsection.

5 ‘‘(e) SCHEDULES AND DEADLINES.—The Secretary

6 shall establish schedules and deadlines for the processing

7 and approval (or provision of notice of disapproval) of ap8 plications for mortgage insurance under this section.

9 ‘‘(f) LIMITATION ON INSURANCE AUTHORITY.—

10 ‘‘(1) TERMINATION.—No mortgage may be in11 sured under this section or section 223(h) after Sep12 tember 30, 2005, except pursuant to a commitment

13 to insure issued on or before such date.

14 ‘‘(2) AGGREGATE PRINCIPAL AMOUNT LIMITA15 TION.—

16 ‘‘(A) IN GENERAL.—The aggregate prin17 cipal amount of mortgages for which the Sec18 retary enters into commitments to insure under

19 this section or section 223(h) on or before the

20 date described in paragraph (1) may not exceed

21 $2,000,000,000.

22 ‘‘(B) REPORT.—If, on the date described

23 in paragraph (1), the aggregate insurance au24 thority provided under this paragraph has not

25 been fully used, the Secretary of the Treasury
133

•HR 1430 IH

1 shall submit to Congress a report evaluating the

2 need for continued mortgage insurance under

3 this section.

4 ‘‘(g) NONDISCRIMINATION REQUIREMENT.—

5 ‘‘(1) IN GENERAL.—A child care facility receiv6 ing assistance under this title may not discriminate

7 on the basis of race, color, or national origin (to the

8 extent provided in title VI of the Civil Rights Act of

9 1964 (42 U.S.C. 2000d et seq.)), religion (subject to

10 subparagraph (B)), national origin, sex (to the ex11 tent provided in title IX of the Education Amend12 ments of 1972 (20 U.S.C. 1681 et seq.)), or dis13 ability (to the extent provided in section 504 of the

14 Rehabilitation Act of 1973 (29 U.S.C. 794)), under

15 any program or activity receiving Federal financial

16 assistance under this title.

17 ‘‘(2) FACILITIES OF RELIGIOUS ORGANIZA18 TIONS.—The prohibition with respect to religion

19 under paragraph (1) shall not apply to a child care

20 facility that is controlled by, or that is closely identi21 fied with, the tenets of a particular religious organi22 zation, if the application of this paragraph would not

23 be consistent with the religious tenets of such orga24 nization.
134

•HR 1430 IH

1 ‘‘(h) LIABILITY INSURANCE.—A child care provider

2 operating a child care facility assisted under this section

3 or section 223(h) shall obtain and maintain liability insur4 ance in such amounts and subject to such requirements

5 as the Secretary considers to be appropriate.

6 ‘‘(i) SMALL PURPOSE LOANS.—

7 ‘‘(1) IN GENERAL.—To the extent that amounts

8 are made available pursuant to subsection (l), the

9 Secretary shall make loans, directly or indirectly, to

10 providers of child care facilities for reconstruction or

11 renovation of such facilities, in accordance with this

12 subsection.

13 ‘‘(2) REQUIREMENTS.—A loan under this

14 subsection—

15 ‘‘(A) may be made only for a child care fa16 cility that is financially and operationally viable,

17 as determined under standards established by

18 the Secretary;

19 ‘‘(B) may not have a term to maturity ex20 ceeding 7 years;

21 ‘‘(C) shall bear interest at a rate estab22 lished by the Secretary; and

23 ‘‘(D) shall be subject to such other terms

24 and conditions as the Secretary may establish

25 by regulation.
135

•HR 1430 IH

1 ‘‘(3) AGGREGATE LOAN AMOUNT.—The aggre2 gate amount of loans under this subsection to a sin3 gle provider may not exceed $30,000.

4 ‘‘(j) NOTIFICATION.—The Secretary shall take such

5 actions as may be necessary to publicize the availability

6 of the programs for mortgage insurance under this section

7 and section 223(h), and the loan program under sub8 section (i) of this section, in a manner that ensures that

9 information concerning such programs will be available to

10 child care providers throughout the United States.

11 ‘‘(k) REGULATIONS.—The Secretary shall—

12 ‘‘(1) issue any regulations necessary to carry

13 out this section; and

14 ‘‘(2) in carrying out paragraph (1), consult with

15 the Secretary of Health and Human Services with

16 respect to any aspects of the regulations regarding

17 child care facilities.

18 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There is

19 authorized to be appropriated to carry out this section

20 $30,000,000 for fiscal year 2001, to remain available until

21 expended, of which not more than 10 percent may be used

22 for loans under subsection (i).’’.
136

•HR 1430 IH

1 SEC. 712. INSURANCE FOR MORTGAGES FOR ACQUISITION

2 OR REFINANCING DEBT OF EXISTING CHILD

3 CARE FACILITIES.

4 (a) IN GENERAL.—Section 223 of the National

5 Housing Act (12 U.S.C. 1715n) is amended by adding at

6 the end the following:

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

9 ‘‘(1) DEFINITIONS.—In this subsection, the

10 terms that are defined in section 257(a) have the

11 same meanings as in that section.

12 ‘‘(2) AUTHORITY.—Notwithstanding any other

13 provision of this Act, the Secretary may insure

14 under any section of this title a mortgage executed

15 in connection with—

16 ‘‘(A) the purchase or refinancing of an ex17 isting child care facility;

18 ‘‘(B) the purchase of a structure to serve

19 as a child care facility; or

20 ‘‘(C) the refinancing of existing debt of an

21 existing child care facility.

22 ‘‘(3) PURCHASE OF EXISTING FACILITIES AND

23 STRUCTURES.—In the case of the purchase under

24 this subsection of an existing child care facility or

25 purchase of an existing structure to serve as such a

26 facility, the Secretary shall prescribe any terms and
137

•HR 1430 IH

1 conditions that the Secretary considers necessary to

2 ensure that—

3 ‘‘(A) the facility or structure purchased

4 continues to be used as a child care facility; and

5 ‘‘(B) the facility receives a certification of

6 compliance under section 258(c).

7 ‘‘(4) REFINANCING OF EXISTING FACILITIES.—

8 In the case of refinancing of an existing child care

9 facility, the Secretary shall prescribe any terms and

10 conditions that the Secretary considers necessary to

11 ensure that—

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

13 monthly debt service costs (taking into account

14 any fees or charges connected with such refi15 nancing) of the existing facility;

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

17 be employed only to retire the existing indebted18 ness and pay the necessary cost of refinancing

19 on the existing facility;

20 ‘‘(C) the existing facility is economically

21 viable; and

22 ‘‘(D) the facility receives a certification of

23 compliance under section 258(c).

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

25 The authority of the Secretary to enter into commit-
138

•HR 1430 IH

1 ments to insure mortgages under this subsection is

2 subject to section 257(f).’’.

3 SEC. 713. STUDY OF AVAILABILITY OF SECONDARY MAR4 KETS FOR MORTGAGES ON CHILD CARE FA5 CILITIES.

6 (a) STUDY.—The Secretary of the Treasury shall

7 conduct a study of the secondary mortgage markets to

8 determine—

9 (1) whether such a market exists for purchase

10 of mortgages eligible for insurance under sections

11 223(h) and 257 of the National Housing Act (as

12 added by this subtitle);

13 (2) whether such a market would affect the

14 availability of credit available for development of

15 child care facilities or would lower development costs

16 of such facilities; and

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

18 activities to provide credit enhancement for loans for

19 child care facilities is needed to meet the demand for

20 such facilities.

21 (b) REPORT.—Not later than 2 years after the date

22 of enactment of this Act, the Secretary of the Treasury

23 shall submit to Congress a report regarding the results

24 of the study conducted under this section.
139

•HR 1430 IH

1 SEC. 714. TECHNICAL AND FINANCIAL ASSISTANCE

2 GRANTS.

3 (a) DEFINITIONS.—In this section:

4 (1) CHILD CARE FACILITY.—The term ‘‘child

5 care facility’’ has the meaning given that term in

6 section 257(a) of the National Housing Act, as

7 added by section 711 of this subtitle.

8 (2) ELIGIBLE INTERMEDIARY.—The term ‘‘eli9 gible intermediary’’ means a private, nonprofit inter10 mediary organization that has demonstrated experi11 ence in—

12 (A) financing the construction and renova13 tion of physical facilities;

14 (B) providing technical and financial as15 sistance to child care providers or other similar

16 entities;

17 (C) working with small businesses; and

18 (D) securing private sources for capital fi19 nancing; and

20 (3) ELIGIBLE RECIPIENT.—The term ‘‘eligible

21 recipient’’ means any—

22 (A) existing or start-up center-based or

23 home-based child care provider; and

24 (B) organization in the process of estab25 lishing a center-based or home-based child care
140

•HR 1430 IH

1 program or otherwise seeking to provide child

2 care services.

3 (4) EQUIPMENT.—The term ‘‘equipment’’ has

4 the meaning given that term in section 257(a) of the

5 National Housing Act, as added by section 711 of

6 this subtitle.

7 (b) GRANT AUTHORITY.—The Secretary of Housing

8 and Urban Development, in consultation with the Sec9 retary of Health and Human Services, may award grants

10 on a competitive basis in accordance with this section to

11 eligible intermediaries for use in accordance with sub12 sections (e) and (f).

13 (c) APPLICATIONS.—To be eligible to receive a grant

14 under this section an eligible intermediary shall submit to

15 the Secretary an application, in such form and containing

16 such information as the Secretary may require.

17 (d) PRIORITY.—In awarding grants under this sec18 tion the Secretary shall give a priority to applicants under

19 subsection (c) that serve low-income or rural areas.

20 (e) USE OF FUNDS.—

21 (1) REVOLVING LOAN FUND.—Each eligible

22 intermediary that receives a grant under this section

23 shall deposit the grant amount into a child care re24 volving loan fund established by the eligible inter25 mediary.
141

•HR 1430 IH

1 (2) PAYMENTS FROM FUND.—Subject to sub2 section (f), from amounts deposited into the revolv3 ing loan fund under paragraph (1), each eligible

4 intermediary shall provide technical and financial as5 sistance (in the form of loans, grants, investments,

6 guarantees, interest subsidies, and other appropriate

7 forms of assistance) to eligible recipients for the ac8 quisition or improvement of child care facilities or

9 equipment.

10 (3) LOAN REPAYMENTS AND INVESTMENT PRO11 CEEDS.—Any amount received by an eligible inter12 mediary from an eligible recipient in the form of a

13 loan repayment or investment proceeds shall be de14 posited into the child care revolving fund of the eligi15 ble intermediary for redistribution to other eligible

16 recipients in accordance with this section.

17 (f) ALLOCATION OF FUNDS.—Of the amounts dis18 tributed from the revolving loan fund of an eligible inter19 mediary under subsection (e)(2) in each fiscal year—

20 (1) not less than 50 percent shall be used for

21 the renovation or construction of child care facilities

22 or the acquisition of equipment by eligible recipients,

23 except that the amount made available to any eligi24 ble recipient under this paragraph may not to exceed

25 40 percent of the total costs incurred by the eligible
142

•HR 1430 IH

1 recipient in connection with such renovation, con2 struction, or acquisition; and

3 (2) the amount remaining after distribution

4 under paragraph (1), shall be used to provide direct

5 assistance to eligible recipients in obtaining public or

6 private financing for the renovation or construction

7 of child care facilities and the acquisition of equip8 ment, including developing and implementing financ9 ing resources, options, and plans for those recipi10 ents.

11 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

12 authorized to be appropriated to carry out this section

13 $10,000,000 for each of fiscal years 2000 through 2004.

Æ