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 Re-
form, 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 provi-
sions 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 incen-
tives to improve the quality and supply of child care,
to increase the availability and affordability of profes-
sional development for child care providers, to expand
youth development opportunities, to ensure the safety
of children placed in child care centers in Federal facili-
ties, to ensure adequate child care subsidies for low-
income working families, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Caring for America’s Children Act’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I—TAX BENEFITS FOR FAMILIES WITH CHILDREN
Sec. 101. Expansion of dependent care tax credit.
Sec. 102. Increase in child tax credit.
Sec. 103. Expansion of dependent care assistance program.
Sec. 104. Mutually exclusive use of dependent care tax credit, child tax credit,
and dependent care assistance program for each dependent.
Sec. 105. Expansion of home office deduction to include use of office for de-
pendent care.
Sec. 106. Inclusion of child care costs in child support orders.
TITLE II—ACTIVITIES TO IMPROVE THE QUALITY OF CHILD
CARE
Subtitle A—Encouraging Business Involvement in Child Care
Sec. 201. Allowance of credit for employer expenses for child care assistance.
Sec. 202. Charitable contributions of scientific equipment, computer technology
and equipment, and other services to child care providers and
to elementary and secondary schools.
Subtitle B—Child Care Quality Improvement Incentive Program
Sec. 211. Definitions.
Sec. 212. Establishment of State program.
Sec. 213. Distribution.
Sec. 214. State eligibility and application requirements.
Sec. 215. Use of funds by States.
Sec. 216. Reservation.
Sec. 217. Authorization of appropriations.
Subtitle C—Increased Enforcement of State Health and Safety Standards
Sec. 221. Enforcement of State health and safety standards.
Subtitle D—Distribution of Information About Quality Child Care
Sec. 231. Expansion of role of the Department of Health and Human Services
in the collection and dissemination of information and tech-
nology.
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 exist-
ing child care facilities.
Sec. 713. Study of availability of secondary markets for mortgages on child
care facilities.
Sec. 714. Technical and financial assistance grants.
SEC. 2. DEFINITIONS.
In this Act:
(1) ACCREDITED CHILD CARE FACILITY.—The
term ‘‘accredited child care facility’’ means—
(A) a facility that is accredited, by a child
care credentialing or accreditation entity recog-
nized by a State or national organization de-
scribed in paragraph (2)(A), to provide child
care (except children who a tribal organization
elects to serve through a facility described in
subparagraph (B));
(B) a facility that is accredited, by a child
care credentialing or accreditation entity recog-
nized by a tribal organization, to provide child
care for children served by the tribal organiza-
tion;
(C) a facility that is used as a Head Start
center under the Head Start Act (42 U.S.C.
9831 et seq.) and is in compliance with applica-
ble performance standards established by regu-
lation under such Act for Head Start programs;
or
(D) a military child development center (as
defined in section 1798(1) of title 10, United
States Code) that is in a facility owned or
leased by the Department of Defense or the
Coast Guard.
(2) CHILD CARE CREDENTIALING OR ACCREDI-
TATION ENTITY.—The term ‘‘child care credentialing
or accreditation entity’’ means a nonprofit private
organization or public agency that—
(A) is recognized by a State agency, a trib-
al organization, or a national organization that
serves as a peer review panel on the standards
and procedures of public and private child care
or school accrediting bodies; and
(B) accredits a facility or credentials an in-
dividual to provide child care on the basis of—
(i) an accreditation or credentialing
instrument based on peer-validated re-
search;
(ii) compliance with applicable State
and local licensing requirements, or stand-
ards described in section 658E(c)(2)(E)(ii)
of the Child Care and Development Block
Grant Act (42 U.S.C. 9858c(c)(2)(E)(ii)),
as appropriate, for the facility or indi-
vidual;
(iii) outside monitoring of the facility
or individual; and
(iv) criteria that provide assurances
of—
(I) compliance with age-appro-
priate health and safety standards at
the facility or by the individual;
(II) use of developmentally ap-
propriate educational activities, as an
integral part of the child care pro-
gram carried out at the facility or by
the individual; and
(III) use of ongoing staff devel-
opment or training activities for the
staff of the facility or the individual,
including related skills-based testing.
(3) CREDENTIALED
CHILD
CARE
PROFES-
SIONAL.—The term ‘‘credentialed child care profes-
sional’’ means—
(A) an individual who—
(i) is credentialed, by a child care
credentialing or accreditation entity recog-
nized by a State or a national organization
described in paragraph (2)(A), to provide
child care (except children who a tribal or-
ganization elects to serve through an indi-
vidual described in subparagraph (B)); or
(ii) successfully completes a 4-year or
graduate degree in a relevant academic
field (such as early childhood education,
education, or recreation services);
(B) an individual who is credentialed, by a
child care credentialing or accreditation entity
recognized by a tribal organization, to provide
child care for children served by the tribal orga-
nization; or
(C) an individual certified by the Armed
Forces of the United States to provide child
care as a family child care provider (as defined
in section 658P of the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C.
9858n)) in military family housing.
(4) STATE; TRIBAL ORGANIZATION.—The terms
‘‘State’’ and ‘‘tribal organization’’ have the meaning
given the term in section 658P of the Child Care
and Development Block Grant Act (42 U.S.C.
9858n).
TITLE I—TAX BENEFITS FOR
FAMILIES WITH CHILDREN
SEC. 101. EXPANSION OF DEPENDENT CARE TAX CREDIT.
(a) DOLLAR LIMIT ON CREDITABLE EMPLOYMENT-
RELATED EXPENSES INCREASED.—Section 21(c) of the
Internal Revenue Code of 1986 (relating to dollar limit
on amount creditable) is amended—
(1) by striking ‘‘$2,400’’ in paragraph (1) and
inserting ‘‘$3,600’’, and
(2) by striking ‘‘$4,800’’ in paragraph (2) and
inserting ‘‘$6,000’’.
(b) PERCENTAGE OF EMPLOYMENT-RELATED EX-
PENSES INCREASED.—Section 21(a)(2) of the Internal
Revenue Code of 1986 (defining applicable percentage) is
amended to read as follows:
‘‘(2) APPLICABLE PERCENTAGE DEFINED.—For
purposes of paragraph (1), the term ‘applicable per-
centage’ means 40 percent reduced (but not below
10 percent) by 1 percentage point for each $2,000
(or fraction thereof) by which the taxpayers’s ad-
justed gross income for the taxable year exceeds
$50,000.’’.
(c) EMPLOYMENT-RELATED EXPENSES EXPANDED
TO INCLUDE TRANSPORTATION COSTS AND COSTS OF
EDUCATIONAL PROGRAMS.—Section 21(b)(2)(A) of the
Internal Revenue Code of 1986 (defining employment-re-
lated expenses) is amended—
(1) by striking ‘‘and’’ at the end of clause (i),
(2) by striking the period at the end of clause
(ii) and inserting ‘‘(including expenses for edu-
cational activities provided during such care), and’’,
and
(3) by adding at the end the following:
‘‘(iii) expenses for transportation—
‘‘(I) related to such services or
care, and
‘‘(II) provided by a person not
described in subsection (e)(6).’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 102. INCREASE IN CHILD TAX CREDIT.
(a) IN GENERAL.—Section 24(a) of the Internal Rev-
enue Code of 1986 (relating to allowance of credit) is
amended by striking ‘‘$500 ($400 in the case of taxable
years beginning in 1998)’’ and inserting ‘‘$900’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 103. EXPANSION OF DEPENDENT CARE ASSISTANCE
PROGRAM.
(a) 
DOLLAR
LIMIT
INCREASED.—Section
129(a)(2)(A) of the Internal Revenue Code of 1986 (relat-
ing to limitation of exclusion) is amended to read as fol-
lows:
‘‘(A) DOLLAR LIMITATION.—
‘‘(i) IN GENERAL.—The amount which
may be excluded under paragraph (1) for
dependent care assistance with respect to
dependent care services provided during a
taxable year shall not exceed—
‘‘(I) in the case of dependent
care services provided for 1 qualifying
individual 
described 
in 
section
21(b)(1), $5,000, and
‘‘(II) in the case of dependent
care services provided for 2 or more
qualifying individuals so described,
$7,000.
‘‘(ii) AMOUNTS
FOR
MARRIED
INDI-
VIDUALS FILING SEPARATE RETURNS.—In
the case of a separate return by a married
individual, the amount applicable under
clause (i) shall be one-half of the amount
specified.’’.
(b) PAYMENTS FOR INFANT CARE, INCLUDING STAY-
AT-HOME CARE, ALLOWED.—
(1) IN GENERAL.—Section 129(e)(1) of the In-
ternal Revenue Code of 1986 (relating to definitions
and special rules) is amended to read as follows:
‘‘(1) DEPENDENT
CARE
ASSISTANCE.—The
term ‘dependent care assistance’ means—
‘‘(A) the payment of, or provision of, those
services which if paid for by the employee would
be 
considered 
employment-related 
expenses
under section 21(b)(2) (relating to expenses for
household and dependent care services nec-
essary for gainful employment), and
‘‘(B) any payment to the employee or any
individual described in subsection (c)(2) from
amounts contributed to the employee’s account
during the 9-month period ending with the
birth of a qualifying individual described in sec-
tion 21(b)(1)(A), if paid during a period ending
1 year after such birth.’’.
(2) CONFORMING
AMENDMENT.—Section 125
of such Code (relating to cafeteria plans) is amended
by redesignating subsections (h) and (i) as sub-
sections (i) and (j) and by inserting after subsection
(g) the following:
‘‘(h) ALLOWANCE OF CARRYOVERS OF CERTAIN UN-
USED DEPENDENT CARE ASSISTANCE TO LATER TAX-
ABLE YEARS.—For purposes of this title—
‘‘(1) a plan or other arrangement shall not fail
to be treated as a cafeteria plan or flexible spending
or similar arrangement, and
‘‘(2) no amount shall be required to be included
in gross income by reason of this section or any
other provision of this chapter,
solely because under such plan or other arrangement any
dependent 
care 
assistance 
described 
in 
section
129(e)(1)(B) which is unused as of the close of a taxable
year may be carried forward to the succeeding taxable
year.’’.
(c) PAYMENTS TO CERTAIN RELATED INDIVIDUALS
FOR ROUTINE CARE ALLOWED.—Section 129(c) of the
Internal Revenue Code of 1986 (relating to payments to
related individuals) is amended by adding at the end the
following flush sentence:
‘‘The preceding sentence shall not apply to any amount
paid or incurred to any individual otherwise described in
paragraph (1) if such amount is paid or incurred for care
of a qualifying individual during the period ending with
the first day of State mandatory schooling of such quali-
fying individual.’’.
duty station is outside the United States, unless the
individual was an employee for the purpose of this
chapter on September 30, 1979, by reason of service
in an Executive agency, the United States Postal
Service, or the Smithsonian Institution in the area
which was then known as the Canal Zone; or
‘‘(C) an employee excluded by regulation of the
Office of Personnel Management under section
8716(b) of this title.
‘‘(b) For the purpose of this chapter, ‘dependent care
assistance program’ has the meaning given such term by
section 129(d) of the Internal Revenue Code of 1986.
‘‘§ 8802. Dependent care assistance program
‘‘The Office of Personnel Management shall establish
and maintain a dependent care assistance program for the
benefit of employees.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section apply to taxable years beginning after Decem-
ber 31, 2000.
SEC. 104. MUTUALLY EXCLUSIVE USE OF DEPENDENT CARE
TAX CREDIT, CHILD TAX CREDIT, AND DE-
PENDENT CARE ASSISTANCE PROGRAM FOR
EACH DEPENDENT.
(a) ELECTION TO APPLY DEPENDENT CARE TAX
CREDIT.—
(1) IN GENERAL.—Section 21 of the Internal
Revenue Code of 1986 (relating to expenses for
household and dependent care services necessary for
gainful employment) is amended by redesignating
subsection (f) as subsection (g) and by inserting
after subsection (e) the following:
‘‘(f) ELECTION TO HAVE SECTION APPLY.—
‘‘(1) IN GENERAL.—No credit shall be allowed
under subsection (a) for a taxable year with respect
to any qualifying individual unless the taxpayer
elects to have this section apply with respect to such
individual for such year.
‘‘(2) COORDINATION WITH CHILD TAX CREDIT
AND DEPENDENT CARE ASSISTANCE EXCLUSION.—If
the taxpayer elects to apply this section with respect
to a qualifying individual for the taxable year, such
individual may not be considered—
‘‘(A) a qualifying child for purposes of sec-
tion 24 for such year, or
‘‘(B) a qualifying individual for purposes
of section 129 for such year.’’.
(2) CONFORMING AMENDMENT.—Section 21(c)
of such Code, as amended by section 101(a), is
amended by striking the last sentence.
(b) ELECTION TO APPLY CHILD TAX CREDIT.—Sec-
tion 24 of the Internal Revenue Code of 1986 (relating
to child tax credit) is amended by adding at the end the
following:
‘‘(g) ELECTION TO HAVE SECTION APPLY.—
‘‘(1) IN GENERAL.—No credit shall be allowed
under subsection (a) for a taxable year with respect
to any qualifying child unless the taxpayer elects to
have this section apply with respect to such child for
such year.
‘‘(2) COORDINATION
WITH
DEPENDENT
CARE
TAX
CREDIT
AND
DEPENDENT
CARE
ASSISTANCE
EXCLUSION.—If the taxpayer elects to apply this
section with respect to a qualifying child for the tax-
able year, such child may not be considered a quali-
fying individual for purposes of section 21 or 129
for such year.’’.
(c) ELECTION TO APPLY DEPENDENT CARE ASSIST-
ANCE EXCLUSION.—Section 129 of the Internal Revenue
Code of 1986 (dependent care assistance programs) is
amended by adding at the end the following:
‘‘(f) ELECTION TO HAVE SECTION APPLY.—
‘‘(1) IN GENERAL.—No exclusion shall be al-
lowed under subsection (a) for a taxable year with
respect to any qualifying individual unless the tax-
payer elects to have this section apply with respect
to such individual for such year.
‘‘(2) COORDINATION
WITH
DEPENDENT
CARE
TAX CREDIT AND CHILD TAX CREDIT.—If the tax-
payer elects to apply this section with respect to a
qualifying individual for the taxable year, such indi-
vidual may not be considered—
‘‘(A) a qualifying individual for purposes of
section 21 for such year, or
‘‘(B) a qualifying child for purposes of sec-
tion 24 for such year.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section apply to taxable years beginning after Decem-
ber 31, 2000.
SEC. 105. EXPANSION OF HOME OFFICE DEDUCTION TO IN-
CLUDE USE OF OFFICE FOR DEPENDENT
CARE.
(a) IN GENERAL.—Section 280A(c)(1) of the Inter-
nal Revenue Code of 1986 (relating to certain business
use) is amended by adding at the end the following: ‘‘A
portion of a dwelling unit and the exclusive use of such
portion otherwise described in this paragraph shall not fail
to be so described if such portion is also used by the tax-
payer during such exclusive use to care for a dependent
of the taxpayer.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 106. INCLUSION OF CHILD CARE COSTS IN CHILD SUP-
PORT ORDERS.
(a) IN GENERAL.—Section 466(a) of the Social Secu-
rity Act (42 U.S.C. 666(a)) is amended by inserting after
paragraph (19) the following:
‘‘(20) CHILD CARE COSTS.—Procedures under
which any child support order enforced under this
part shall include an equitable division between the
custodial and noncustodial parents of any costs of
providing child care services in any case where the
custodial parent is employed or is actively seeking
employment.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to child support orders enforced
or otherwise modified by a court on and after the date
of enactment of this Act.
TITLE 
II—ACTIVITIES 
TO 
IM-
PROVE 
THE 
QUALITY 
OF
CHILD CARE
Subtitle A—Encouraging Business
Involvement in Child Care
SEC. 201. ALLOWANCE OF CREDIT FOR EMPLOYER EX-
PENSES FOR CHILD CARE ASSISTANCE.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business related credits) is amended by
adding at the end the following new section:
‘‘SEC. 45D. EMPLOYER-PROVIDED CHILD CARE CREDIT.
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, the employer-provided child care credit deter-
mined under this section for the taxable year is an amount
equal to 40 percent of the qualified child care expenditures
of the taxpayer for such taxable year.
‘‘(b) DOLLAR LIMITATION.—The credit allowable
under subsection (a) for any taxable year shall not exceed
$150,000 ($250,000 in the case of qualified child care ex-
penditures with respect to 3 or more qualified child care
facilities each located in a different jurisdiction of State
or local government).
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED CHILD CARE EXPENDITURE.—
The term ‘qualified child care expenditure’ means
any amount paid or incurred—
‘‘(A) to acquire, construct, rehabilitate, or
expand property—
‘‘(i) which is to be used as part of a
qualified child care facility of the taxpayer,
‘‘(ii) with respect to which a deduction
for depreciation (or amortization in lieu of
depreciation) is allowable, and
‘‘(iii) which does not constitute part of
the principal residence (within the meaning
of section 121) of the taxpayer or any em-
ployee of the taxpayer,
‘‘(B) for the operating costs of a qualified
child care facility of the taxpayer, including
costs related to the training of employees, to
scholarship programs, and to the providing of
increased compensation to employees with high-
er levels of child care training,
‘‘(C) under a contract with a qualified
child care facility to provide child care services
to employees of the taxpayer,
‘‘(D) under a contract to provide child care
resource and referral services to employees of
the taxpayer, or
‘‘(E) for the costs of seeking accreditation
from a child care credentialing or accreditation
entity (as defined in section 2(2) of the Caring
for America’s Children Act) with respect to a
qualified child care facility.
‘‘(2) QUALIFIED CHILD CARE FACILITY.—
‘‘(A) IN
GENERAL.—The term ‘qualified
child care facility’ means a facility—
‘‘(i) the principal use of which is to
provide child care assistance, and
‘‘(ii) which meets the requirements of
all applicable laws and regulations of the
State or local government in which it is lo-
cated, including, but not limited to, the li-
censing of the facility as a child care facil-
ity.
Clause (i) shall not apply to a facility which is
the principal residence (within the meaning of
section 121) of the operator of the facility.
‘‘(B) SPECIAL RULES WITH RESPECT TO A
TAXPAYER.—A facility shall not be treated as a
qualified child care facility with respect to a
taxpayer unless—
‘‘(i) enrollment in the facility is open
to employees of the taxpayer during the
taxable year,
‘‘(ii) the facility is not the principal
trade or business of the taxpayer unless at
least 30 percent of the enrollees of such fa-
cility are dependents of employees of the
taxpayer, and
‘‘(iii) the use of such facility (or the
eligibility to use such facility) does not dis-
criminate in favor of employees of the tax-
payer who are highly compensated employ-
ees (within the meaning of section 414(q)).
‘‘(d) RECAPTURE OF ACQUISITION AND CONSTRUC-
TION CREDIT.—
‘‘(1) IN GENERAL.—If, as of the close of any
taxable year, there is a recapture event with respect
to any qualified child care facility of the taxpayer,
then the tax of the taxpayer under this chapter for
such taxable year shall be increased by an amount
equal to the product of—
‘‘(A) the applicable recapture percentage,
and
‘‘(B) the aggregate decrease in the credits
allowed under section 38 for all prior taxable
years which would have resulted if the qualified
child care expenditures of the taxpayer de-
scribed in subsection (c)(1)(A) with respect to
such facility had been zero.
‘‘(2) APPLICABLE RECAPTURE PERCENTAGE.—
‘‘(A) IN GENERAL.—For purposes of this
subsection, the applicable recapture percentage
shall be determined from the following table:
The applicable
recapture
‘‘If the recapture event occurs in:
percentage is:
Years 1–3 ..................................................................
100
Year 4 ........................................................................
Year 5 ........................................................................
Year 6 ........................................................................
Year 7 ........................................................................
Year 8 ........................................................................
Years 9 and 10 ..........................................................
Years 11 and thereafter ............................................
0.
‘‘(B) YEARS.—For purposes of subpara-
graph (A), year 1 shall begin on the first day
of the taxable year in which the qualified child
care facility is placed in service by the taxpayer.
‘‘(3) RECAPTURE EVENT DEFINED.—For pur-
poses of this subsection, the term ‘recapture event’
means—
‘‘(A) CESSATION
OF
OPERATION.—The
cessation of the operation of the facility as a
qualified child care facility.
‘‘(B) CHANGE IN OWNERSHIP.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the disposition of a
taxpayer’s interest in a qualified child care
facility with respect to which the credit de-
scribed in subsection (a) was allowable.
‘‘(ii) AGREEMENT TO ASSUME RECAP-
TURE
LIABILITY.—Clause (i) shall not
apply if the person acquiring such interest
in the facility agrees in writing to assume
the recapture liability of the person dis-
posing of such interest in effect imme-
diately before such disposition. In the
event of such an assumption, the person
acquiring the interest in the facility shall
be treated as the taxpayer for purposes of
assessing any recapture liability (computed
as if there had been no change in owner-
ship).
‘‘(4) SPECIAL RULES.—
‘‘(A) TAX
BENEFIT
RULE.—The tax for
the taxable year shall be increased under para-
graph (1) only with respect to credits allowed
by reason of this section which were used to re-
duce tax liability. In the case of credits not so
used to reduce tax liability, the carryforwards
and carrybacks under section 39 shall be appro-
priately adjusted.
‘‘(B) NO CREDITS AGAINST TAX.—Any in-
crease in tax under this subsection shall not be
treated as a tax imposed by this chapter for
purposes of determining the amount of any
credit under subpart A, B, or D of this part.
‘‘(C) NO RECAPTURE BY REASON OF CAS-
UALTY LOSS.—The increase in tax under this
subsection shall not apply to a cessation of op-
eration of the facility as a qualified child care
facility by reason of a casualty loss to the ex-
tent such loss is restored by reconstruction or
replacement within a reasonable period estab-
lished by the Secretary.
‘‘(e) 
SPECIAL
RULES.—For 
purposes 
of 
this
section—
‘‘(1) AGGREGATION RULES.—All persons which
are treated as a single employer under subsections
(a) and (b) of section 52 shall be treated as a single
taxpayer.
‘‘(2) PASS-THRU IN THE CASE OF ESTATES AND
TRUSTS.—Under regulations prescribed by the Sec-
retary, rules similar to the rules of subsection (d) of
section 52 shall apply.
‘‘(3) ALLOCATION IN THE CASE OF PARTNER-
SHIPS OR JOINT VENTURES.—In the case of partner-
ships or joint ventures, the credit shall be allocated
among partners or members of the joint venture
under regulations prescribed by the Secretary.
‘‘(f) NO DOUBLE BENEFIT.—
‘‘(1) REDUCTION IN BASIS.—For purposes of
this subtitle—
‘‘(A) IN GENERAL.—If a credit is deter-
mined under this section with respect to any
property by reason of expenditures described in
subsection (c)(1)(A), the basis of such property
shall be reduced by the amount of the credit so
determined.
‘‘(B) CERTAIN
DISPOSITIONS.—If during
any taxable year there is a recapture amount
determined with respect to any property the
basis of which was reduced under subparagraph
(A), the basis of such property (immediately be-
fore the event resulting in such recapture) shall
be increased by an amount equal to such recap-
ture amount. For purposes of the preceding
sentence, the term ‘recapture amount’ means
any 
increase 
in 
tax 
(or 
adjustment 
in
carrybacks or carryovers) determined under
subsection (d).
‘‘(2) OTHER DEDUCTIONS AND CREDITS.—No
deduction or credit shall be allowed under any other
provision of this chapter with respect to the amount
of the credit determined under this section.
‘‘(g) TERMINATION.—This section shall not apply to
taxable years beginning after December 31, 2002.’’
(b) CONFORMING AMENDMENTS.—
(1) Section 38(b) of the Internal Revenue Code
of 1986 is amended—
(A) by striking out ‘‘plus’’ at the end of
paragraph (11),
(B) by striking out the period at the end
of paragraph (12), and inserting a comma and
‘‘plus’’, and
(C) by adding at the end the following new
paragraph:
‘‘(13) the employer-provided child care credit
determined under section 45D.’’
(2) The table of sections for subpart D of part
IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new
item:
‘‘Sec. 45D. Employer-provided child care credit.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 202. CHARITABLE CONTRIBUTIONS OF SCIENTIFIC
EQUIPMENT, COMPUTER TECHNOLOGY AND
EQUIPMENT, 
AND 
OTHER 
SERVICES 
TO
CHILD CARE PROVIDERS AND TO ELEMEN-
TARY AND SECONDARY SCHOOLS.
(a) SCIENTIFIC EQUIPMENT.—
(1) IN GENERAL.—Subparagraph (B) of section
170(e)(4) of the Internal Revenue Code of 1986 (re-
lating to special rule for contributions of scientific
property used for research) is amended to read as
follows:
‘‘(B) QUALIFIED RESEARCH, CHILD CARE,
OR EDUCATION CONTRIBUTION.—For purposes
of this paragraph, the term ‘qualified research,
child care, or education contribution’ means a
charitable contribution by a corporation of tan-
gible personal property described in paragraph
(1) of section 1221, but only if—
‘‘(i) the contribution is to—
‘‘(I) an organization described in
section 501(c)(3) and exempt from
taxation under section 501(a) which is
a child care facility in compliance with
all applicable laws and regulations of
the State or unit of local government
in which such facility is located on the
date of such contribution,
‘‘(II) an organization described
in section 501(c)(3) and exempt from
taxation under section 501(a) which is
a professional or educational support
entity for such a child care facility,
‘‘(III) an educational organiza-
tion 
described 
in 
subsection
(b)(1)(A)(ii),
‘‘(IV) a governmental unit de-
scribed in subsection (c)(1), or
‘‘(V) an organization described in
section 41(e)(6)(B),
‘‘(ii) the contribution is made not
later than 3 years after the date the tax-
payer acquired the property (or in the case
of property constructed by the taxpayer,
the date the construction of the property is
substantially completed),
‘‘(iii) the property is scientific equip-
ment or apparatus substantially all of the
use of which by the donee is for—
‘‘(I) research or experimentation
(within the meaning of section 174),
or for research training, in the United
States 
in 
physical 
or 
biological
sciences,
‘‘(II) activities designed to en-
hance or support the educational or
developmental achievement of children
or youth, or
‘‘(III) in the case of an organiza-
tion described in subclause (I), (II),
(III), or (IV) of clause (i), use within
the United States for educational pur-
poses or support activities related to
the purpose or function of the organi-
zation,
‘‘(iv) the original use of the property
is by donor or the donee,
‘‘(v) the property is not transferred by
the donee in exchange for money, other
property, or services, except for shipping,
installation, and transfer costs, and
‘‘(vi) the taxpayer receives from the
donee a written statement representing
that its use and disposition of the property
will be in accordance with the provisions of
clauses (iv) and (v).’’.
(2) CONFORMING AMENDMENTS.—
(A) Paragraph (4)(A) of section 170(e) of
such Code is amended by striking ‘‘qualified re-
search contribution’’ each place it appears and
inserting ‘‘qualified research, child care, or edu-
cation contribution’’.
(B) The heading for section 170(e)(4) of
such Code is amended by inserting ‘‘, CHILD
CARE, OR EDUCATION’’ after ‘‘RESEARCH’’.
(b) EXPANSION OF RULES RELATING TO CONTRIBU-
TIONS OF COMPUTER TECHNOLOGY AND EQUIPMENT TO
CERTAIN CHILD CARE PROVIDERS.—
(1) IN
GENERAL.—Section 170(e)(6)(B)(i) of
the Internal Revenue Code of 1986 (defining quali-
fied elementary or secondary educational contribu-
tion) is amended by striking ‘‘or’’ at the end of sub-
clause (I), by adding ‘‘or’’ at the end of subclause
(II), and by inserting after subclause (II) the fol-
lowing:
‘‘(III) an entity described in sub-
clause (I) or (II) of paragraph
(4)(B)(i).’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 170(e)(6)(B)(ii) of such Code
is amended by striking ‘‘2 years’’ and inserting
‘‘3 years’’.
(B) Section 170(e)(6)(B)(iv) of such Code
is amended by striking ‘‘grades K–12’’ and in-
serting ‘‘grades preschool–12’’.
(C) Section 170(e)(6) of such Code is
amended by striking ‘‘qualified elementary or
secondary’’ each place it appears and inserting
‘‘qualified child care, elementary, or sec-
ondary’’.
(D) The heading for section 170(e)(6)(B)
of such Code is amended by striking ‘‘QUALI-
FIED ELEMENTARY OR SECONDARY’’ and insert-
ing ‘‘QUALIFIED CHILD CARE, ELEMENTARY, OR
SECONDARY’’.
(E) The heading for section 170(e)(6) of
such Code is amended by striking ‘‘ELEMEN-
TARY
OR
SECONDARY’’ and inserting ‘‘CHILD
CARE OR ELEMENTARY OR SECONDARY’’.
(c) DONATIONS TO CHARITY FOR REFURBISHING.—
(1) 
SCIENTIFIC
EQUIPMENT.—Section
170(e)(4) of the Internal Revenue Code of 1986 is
amended by adding at the end the following:
‘‘(E) DONATIONS TO CHARITY FOR REFUR-
BISHING.—For purposes of this paragraph, a
charitable contribution by a corporation shall be
treated as a qualified research, child care, or
education contribution if—
‘‘(i) such contribution is a contribu-
tion of property described in subparagraph
(B)(iii) to an organization described in sec-
tion 501(c)(3) and exempt from taxation
under section 501(a),
‘‘(ii) such organization repairs and re-
furbishes the property and donates the
property to an organization described in
subparagraph (B)(i), and
‘‘(iii) the taxpayer receives from the
organization to whom the taxpayer contrib-
uted the property a written statement rep-
resenting that its use of the property (and
any use by the organization to which it do-
nates the property) meets the requirements
of this paragraph.’’.
(2) COMPUTER
TECHNOLOGY
AND
EQUIP-
MENT.—Section 170(e)(6) of the Internal Revenue
Code of 1986 is amended by redesignating subpara-
graphs (E) and (F) as subparagraphs (F) and (G),
respectively, and by inserting after subparagraph
(D) the following:
‘‘(E) DONATIONS TO CHARITY FOR REFUR-
BISHING.—For purposes of this paragraph, a
charitable contribution by a corporation shall be
treated as a qualified child care, elementary, or
secondary educational contribution if—
‘‘(i) such contribution is a contribu-
tion of computer technology or equipment
to an organization described in section
501(c)(3) and exempt from taxation under
section 501(a),
‘‘(ii) such organization repairs and re-
furbishes the property and donates the
property to an organization described in
subparagraph (B)(i), and
‘‘(iii) the taxpayer receives from the
organization to whom the taxpayer contrib-
uted the property a written statement rep-
resenting that its use of the property (and
any use by the organization to which it do-
nates the property) meets the requirements
of this paragraph.’’.
(d) CORPORATE DONATIONS OF SERVICES.—Section
170 of the Internal Revenue Code of 1986 is amended by
redesignating subsection (m) as subsection (n) and by in-
serting after subsection (l) the following:
‘‘(m) TREATMENT OF THE DONATION OF CERTAIN
SERVICES.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, 50 percent of the fair market value of chari-
table services contributed by a corporation shall be
treated as a charitable contribution.
‘‘(2) CHARITABLE SERVICES.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘charitable services’ means
transportation services, qualified employee vol-
unteer time, and the use of facilities and
equipment—
‘‘(i) provided by the taxpayer to a
donee described in subsection (e)(6)(B)(i),
and
‘‘(ii) for which the taxpayer receives
from the donee a written statement rep-
resenting that the charitable services are
not in exchange for money, other property,
or services.
‘‘(B) QUALIFIED
EMPLOYEE
VOLUNTEER
TIME.—For the purpose of this subsection, the
term ‘qualified employee volunteer time’ means
time—
‘‘(i) volunteered to the donee by an
employee of the taxpayer during the em-
ployee’s normal working hours, and
‘‘(ii) the value of which is based on
the usual wage rate of the employee.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
Subtitle B—Child Care Quality
Improvement Incentive Program
SEC. 211. DEFINITIONS.
In this subtitle:
(1) CHILD CARE PROVIDER.—The term ‘‘child
care provider’’ means—
(A) a center-based child care provider, a
group home child care provider, a family child
care provider, or other provider of non-residen-
tial child care services for compensation that—
(i) is licensed, regulated, registered, or
otherwise legally operating under State
law; and
(ii) satisfies the State and local re-
quirements;
applicable to the child care services the provider
provides; or
(B) a child care provider that is 18 years
of age or older who provides child care services
only to an eligible child who is, by affinity or
consanguinity, or by court decree, the grand-
child, great grandchild, sibling, niece, or neph-
ew of such provider, if such provider does not
reside in the same residence with the child for
whom the provider is providing care and if the
provider complies with any applicable require-
ments that govern child care provided by the
relative involved.
(2) FAMILY CHILD CARE PROVIDER.—The term
‘‘family child care provider’’ has the meaning given
the term in section 658P of the Child Care and De-
velopment Block Grant Act of 1990 (42 U.S.C.
9858n).
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
SEC. 212. ESTABLISHMENT OF STATE PROGRAM.
(a) IN GENERAL.—The Secretary shall establish a
program to award grants to eligible States to pay for the
Federal share of the cost of enabling such States to carry
out activities to improve the quality of child care for chil-
dren in the States (except children who a tribal organiza-
tion elects to serve under section 216).
(b) AWARDING
OF GRANTS.—The Secretary shall
award the grants to the States from allotments made in
accordance with section 213.
(c) LIMITATION ON ADMINISTRATIVE COSTS.—
(1) IN GENERAL.—The Secretary shall not use
more than 5 percent of the amount appropriated
under section 217 for a fiscal year for the adminis-
trative costs associated with the administration of
the program under this section.
(2) DEFINITION.—In paragraph (1), the term
‘‘administrative costs’’ shall not include the costs of
providing direct services.
SEC. 213. DISTRIBUTION.
(a) AMOUNTS RESERVED.—The Secretary shall re-
serve not more than 1⁄2 of 1 percent of the amount appro-
priated under this subtitle for each fiscal year for pay-
ments to Guam, American Samoa, the Virgin Islands of
the United States, and the Commonwealth of the North-
ern Mariana Islands to be allotted in accordance with their
respective needs.
(b) STATE ALLOTMENT.—
(1) GENERAL RULE.—From the amount appro-
priated under section 217 for each fiscal year and
remaining after reservations made under subsection
(a), section 212(c), and section 216, the Secretary
shall allot to each State an amount equal to the sum
of—
(A) an amount that bears the same ratio
to 50 percent of the remainder as the product
of the young child factor of the State and the
allotment percentage of the State bears to the
sum of the corresponding products for all
States; and
(B) an amount that bears the same ratio
to 50 percent of the remainder as the product
of the school lunch factor of the State and the
allotment percentage of the State bears to the
sum of the corresponding products for all
States.
(2) MINIMUM ALLOTMENT.—The amount of an
allotment awarded to a State under this subsection
shall not be less than an amount equal to 0.75 per-
cent of the total amount appropriated for the fiscal
year under section 217.
(3) YOUNG CHILD FACTOR.—The term ‘‘young
child factor’’ means the ratio of the number of chil-
dren in the State under 5 years of age to the num-
ber of the children in all States as provided by the
most recent annual estimates of population in the
States by the Bureau of the Census of the Depart-
ment of Commerce.
(4) 
SCHOOL
LUNCH
FACTOR.—The 
term
‘‘school lunch factor’’ means the ratio of the number
of children in the State who are receiving free or re-
duced price lunches under the school lunch program
established under the National School Lunch Act
(42 U.S.C. 1751 et seq.) to the number of the chil-
dren in all States as determined annually by the De-
partment of Agriculture.
(5) ALLOTMENT PERCENTAGE.—
(A) IN GENERAL.—The allotment percent-
age for a State is determined by dividing the
per capita income of all individuals in the
United States, by the per capita income of all
individuals in the State.
(B) LIMITATIONS.—If an allotment per-
centage determined under subparagraph (A)—
(i) exceeds 1.2 percent, the allotment
percentage of that State shall be consid-
ered to be 1.2 percent; and
(ii) is less than 0.8 percent, the allot-
ment percentage of the State shall be con-
sidered to be 0.8 percent.
(C) PER CAPITA INCOME.—For purposes
of subparagraph (A), per capita income shall
be—
(i) determined at 2-year intervals;
(ii) applied for the 2-year period be-
ginning on October 1 of the first fiscal
year beginning on the date the determina-
tion is made; and
(iii) equal to the average of the an-
nual per capita incomes for the most re-
cent period of 3 consecutive years for
which satisfactory data are available from
the Department of Commerce at the time
the determination is made.
(c) DATA AND INFORMATION.—The Secretary shall
obtain from each appropriate Federal agency, the most re-
cent data and information necessary to determine the al-
lotments provided for in subsection (b).
(d) REALLOTMENTS.—
(1) IN GENERAL.—Any portion of the allotment
under subsection (b) to a State that the Secretary
determines is not required to carry out State activi-
ties approved under section 214, in the period for
which the allotment is made available, shall be real-
lotted by the Secretary to other States in proportion
to the original allotments to the other States.
(2) LIMITATIONS.—
(A) REDUCTION.—The amount of any re-
allotment to which a State is entitled under
paragraph (1) shall be reduced to the extent
that the allotment exceeds the amount that the
Secretary estimates will be used in the State to
carry out State activities approved under sec-
tion 214.
(B) REALLOTMENTS.—The amount of the
reduction shall be similarly reallotted among
States for which no reduction in an allotment
or reallotment is required by this subsection.
(3) AMOUNTS REALLOTTED.—For purposes of
any other section of this subtitle, any amount real-
lotted to a State under this subsection shall be con-
sidered to be part of the allotment made under sub-
section (b) to the State.
(e) DEFINITION.—In this section, the term ‘‘State’’
includes only the 50 States, the District of Columbia, and
the Commonwealth of Puerto Rico.
SEC. 214. STATE ELIGIBILITY AND APPLICATION REQUIRE-
MENTS.
(a) ELIGIBILITY.—To be eligible to receive a grant
under this subtitle, a State shall certify to the Secretary
that the State—
(1) has not reduced the scope of any State child
care standards or requirements that were in effect
on January 1, 1995;
(2) has not limited the State licensing require-
ments with respect to the types of providers that
must obtain licenses in order to provide child care
in the State as compared to the types of providers
that were required to obtain the licenses on January
1, 1995;
(3) has not otherwise restricted the application
of State child care licensing requirements that were
in effect on January 1, 1995;
(4) is in compliance with the requirements ap-
plicable to the State under the Child Care and De-
velopment Block Grant Act of 1990 (42 U.S.C.
9858 et seq.); and
(5) has, with respect to the fiscal year involved,
made available sufficient State matching funds to
draw down at least 80 percent of the amount award-
ed to the State for the preceding fiscal year under
a grant under section 418(a)(2) of the Social Secu-
rity Act (42 U.S.C. 618(a)(2)).
(b) FEDERAL SHARE.—
(1) IN GENERAL.—The Federal share of the
cost of the State activities approved under this sec-
tion is 90 percent.
(2) NON-FEDERAL SHARE.—A State that re-
ceives a grant under section 212 shall contribute the
non-Federal share of the cost in cash (which may be
provided from State or local public sources or
through donations from private entities).
(c) APPLICATION.—To be eligible to receive a grant
under this subtitle, a State shall prepare and submit to
the Secretary an application at such time, in such manner,
and containing such information as the Secretary shall re-
quire, including—
(1) an assurance that the State will comply
with the requirements applicable to States under
this subtitle; and
(2) an assurance that the State will not use
funds received under the grant to supplant or re-
place funds used by the State to improve the quality
or increase the supply of child care as required
under section 658G of the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C. 9858e).
SEC. 215. USE OF FUNDS BY STATES.
A State may use amounts provided under a grant
awarded under this subtitle to the State to—
(1) establish a subsidy program to provide
funds to child care providers who are credentialed in
the State (as described in section 2(3));
(2) provide assistance to small businesses lo-
cated in the State in establishing and operating child
care programs that may include—
(A) technical assistance in the establish-
ment of a child care program;
(B) assistance for the start-up costs re-
lated to a child care program;
(C) assistance for the training of child care
providers;
(D) scholarships for low-income wage earn-
ers in the programs;
(E) assistance to enable the businesses to
provide services to care for sick children or to
provide care to school age children; or
(F) assistance to enable the businesses to
provide care for children with disabilities;
(3) improve parental choice through consumer
education efforts in the State concerning child care,
including the expansion of resource and referral
services and improvement of State child care com-
plaint systems;
(4) establish a scholarship program for child
care providers to assist in meeting the educational or
training costs associated with accreditation of facili-
ties or credentialing of providers (as described in
paragraphs (1) and (3) of section 2);
(5) expand State-based child care training and
technical assistance activities;
(6) develop criteria for State recognition of en-
tities to accredit facilities, and credential child care
providers, in the State, as described in section 2;
(7) provide increased rates of reimbursement
under Federal or State child care assistance pro-
grams for child care that is provided by credentialed
child care professionals or at accredited child care
centers;
(8) provide differential rates of reimbursement
under Federal or State child care assistance pro-
grams for special needs children;
(9) purchase special equipment or supplies or
otherwise provide for the payment of other extraor-
dinary expenses required for the care of special
needs (including disabled) children and the distribu-
tion of such equipment or supplies to child care pro-
viders serving special needs children;
(10) support networks for family child care pro-
viders;
(11) establish linkages between child care pro-
viders;
(12) conduct background checks of child care
providers; and
(13) increase State monitoring of licensed child
care facilities in accordance with State law.
SEC. 216. RESERVATION.
The Secretary shall reserve not more than 1.5 per-
cent of the amount appropriated under section 217 for a
fiscal year to make grants under this subtitle to tribal or-
ganizations submitting applications described in section
214(c), to be used in accordance with section 215.
SEC. 217. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
this subtitle $200,000,000 for each of fiscal years 2000
through 2004.
Subtitle C—Increased Enforcement
of 
State 
Health 
and 
Safety
Standards
SEC. 221. ENFORCEMENT OF STATE HEALTH AND SAFETY
STANDARDS.
(a) IDENTIFICATION OF STATE INSPECTION RATE.—
(1) IN
GENERAL.—Section 658E(c)(2)(G) of
the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858c(c)(2)(G)) is amended by
striking the period and inserting ‘‘, and provide the
percentage of child care provider inspections re-
quired under State law that were completed by the
State for each of the 2 preceding fiscal years.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) applies to State plans under the
Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858 et seq.) on and after Sep-
tember 1, 2000.
(b) INCREASED OR DECREASED ALLOTMENTS.—Sec-
tion 658O(b) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858m(b)) is amended—
(1) in paragraph (1), in the matter preceding
subparagraph (A), by inserting ‘‘, subject to para-
graph (5),’’ after ‘‘shall’’; and
(2) by adding at the end the following:
‘‘(5) INCREASED OR DECREASED ALLOTMENT
BASED ON STATE INSPECTION RATE.—
‘‘(A) INCREASED ALLOTMENT FOR FISCAL
YEARS 2000, 2001, AND 2002.—
‘‘(i) IN GENERAL.—Subject to clause
(iii), for fiscal years 2000, 2001, and
2002, the allotment determined for a State
under paragraph (1) for each such fiscal
year shall be increased by an amount equal
to 10 percent of such allotment for the fis-
cal year involved with respect to any
State—
‘‘(I) that certifies to the Sec-
retary that the State has not reduced
the scope of any State child care
health or safety standards or require-
ments that were in effect on January
1, 1995; and
‘‘(II) that, with respect to the
preceding fiscal year, had a percent-
age of completed child care provider
inspections (as required to be reported
under section 658E(c)(2)(G)) that
was not less than the target inspec-
tion and enforcement percentage spec-
ified under clause (ii) for the fiscal
year for which the allotment is to be
paid.
‘‘(ii) TARGET
INSPECTION
AND
EN-
FORCEMENT PERCENTAGE.—For purposes
of clause (i)(II), the target inspection and
enforcement percentage is—
‘‘(I) for fiscal year 2000, 75 per-
cent;
‘‘(II) for fiscal year 2001, 80
percent; and
‘‘(III) for fiscal year 2002, 100
percent.
‘‘(iii) PRO RATA REDUCTIONS IF IN-
SUFFICIENT
APPROPRIATIONS.—The Sec-
retary shall make pro rata reductions in
the percentage increase otherwise required
under clause (i) for a State allotment for
a fiscal year as necessary so that the ag-
gregate of all the allotments made under
this subsection does not exceed the amount
appropriated for that fiscal year under sec-
tion 658B, and remaining after reserva-
tions under subsection (a).
‘‘(B) DECREASED ALLOTMENT FOR FISCAL
YEARS 2001 AND 2002.—
‘‘(i) IN GENERAL.—The allotment de-
termined for a State under paragraph (1)
for each of fiscal years 2001 and 2002
shall be decreased by an amount that is
not less than 2 percent of such allotment
for the fiscal year involved (except that
such amount shall not be more than the
State’s expenditures on administrative
costs under this subchapter during the pre-
ceding fiscal year), with respect to any
State that, with respect to the preceding
fiscal year, had a percentage of completed
child care provider inspections (as required
to 
be 
reported 
under 
section
658E(c)(2)(G)) that was less than the
minimum inspection and enforcement per-
centage specified under clause (ii) for the
fiscal year for which the allotment is to be
paid.
‘‘(ii) MINIMUM INSPECTION AND EN-
FORCEMENT PERCENTAGE.—For purposes
of clause (i), the minimum inspection and
enforcement percentage is—
‘‘(I) for fiscal year 2001, 50 per-
cent; and
‘‘(II) for fiscal year 2002, 75
percent.
‘‘(iii) 
REQUIREMENT
TO
EXPEND
STATE FUNDS TO REPLACE REDUCTION.—
If the allotment determined for a State for
a fiscal year is reduced by reason of clause
(i), the State shall, during the immediately
succeeding fiscal year, expend additional
State funds under the State plan funded
under this subchapter, in an amount equal
to the amount of such reduction. During
the succeeding fiscal year, the State shall
maintain the level of services provided by
the State under this subchapter during the
fiscal year for which the determination is
made.’’.
Subtitle D—Distribution of Infor-
mation 
About 
Quality 
Child
Care
SEC. 231. EXPANSION OF ROLE OF THE DEPARTMENT OF
HEALTH AND HUMAN SERVICES IN THE COL-
LECTION AND DISSEMINATION OF INFORMA-
TION AND TECHNOLOGY.
(a) PROVISION OF INFORMATION.—
(1) IN GENERAL.—The Secretary of Health and
Human Services, by awarding contracts to qualified
entities on a competitive basis, shall—
(A) provide technical assistance concerning
the importance of the high quality child care to
States, units of local government, private non-
profit child care organizations, child care
credentialing or accreditation entities, child care
providers, and parents;
(B) collect and disseminate information on
the importance of high quality child care to
States, units of local government, private non-
profit child care organizations, child care
credentialing or accreditation entities, child care
providers, and parents, including, in partner-
ship with the Advertising Council or another
professional advertising group carrying out a
public awareness campaign promoting quality
child care.
(2) PREFERENCE.—In awarding the contracts,
the Secretary shall give preference to qualified enti-
ties with experience in carrying out the activities de-
scribed in paragraph (1).
(b) UNIFORMITY IN DATA COLLECTION AND DIS-
SEMINATION BY NATIONAL, STATE, AND LOCAL CHILD
CARE RESOURCE AND REFERRAL SERVICES.—The Sec-
retary of Health and Human Services shall develop a
mechanism, for use by organizations including organiza-
tions providing the resource and referral services described
in section 658G (42 U.S.C. 9858e), for the collection and
dissemination of statistical data on the supply and demand
for child care on the national, State, and local levels.
(c) GRANT PROGRAM.—
(1) IN GENERAL.—The Secretary of Health and
Human Services shall award competitive grants to
child care credentialing or accreditation entities that
have been providing credentialing or accreditation
services for child care providers for not more than
10 years.
(2) APPLICATION.—To be eligible to receive a
grant 
under 
this 
subsection, 
a 
child 
care
credentialing or accreditation entity shall prepare
and submit to the Secretary an application at such
time, in such manner, and containing such informa-
tion as the Secretary shall require.
(3) USE OF FUNDS.—Amounts provided under
a grant awarded under paragraph (1) shall be used
by grantees to refine and evaluate the procedures
and methods used by such grantees in accrediting
facilities as accredited child care facilities or
credentialing individual child care providers as
credentialed child care professionals. Such proce-
dures and methods shall be designed to ensure that
the highest quality child care is provided by the ac-
credited child care facilities and credentialed child
care professionals, to provide information about the
accreditation or credentialing process to providers,
and to provide subsidies to needy individuals and or-
ganizations to enable such individuals and organiza-
tion 
to 
participate 
in 
the 
accreditation 
or
credentialing process.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$15,000,000 for each of fiscal years 2000 through 2004.
TITLE III—EXPANDING PROFES-
SIONAL 
DEVELOPMENT 
OP-
PORTUNITIES
SEC. 301. CHILD CARE TRAINING INFRASTRUCTURE.
(a) DEFINITIONS.—In this section:
(1) CHILD CARE PROVIDER.—The term ‘‘child
care provider’’ has the meaning given the term in
section 211.
(2) 
ELEMENTARY
SCHOOL; 
SECONDARY
SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec-
ondary school’’ have the meanings given the terms
in section 14101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801).
(3) INSTITUTION OF HIGHER EDUCATION.—The
term ‘‘institution of higher education’’ has the
meaning given the term in section 101(a) of the
Higher Education Act of 1965 (20 U.S.C. 1001(a)).
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(5) TRAINING SITE.—The term ‘‘training site’’
means a training site described in subsection (e)(1).
(b) GRANTS.—
(1) IN GENERAL.—The Secretary shall make
grants to eligible organizations to develop and oper-
ate technology-based child care training infrastruc-
tures, to facilitate—
(A) the accreditation of facilities as accred-
ited child care facilities and accredited family
child care homes;
(B) the credentialing of individuals as
credentialed child care professionals; and
(C) the dissemination of child care, child
development, and early childhood education in-
formation and research to child care providers.
(2) 
ORGANIZATIONS
GIVEN
PRIORITY.—In
awarding grants under this subsection, the Secretary
shall give priority to eligible national organizations
that have established child care training infrastruc-
tures similar in concept and purpose to infrastruc-
tures described in this section.
(c) USE OF FUNDS.—An organization that receives
a grant under subsection (b) shall use the funds made
available through the grant to—
(1) develop partnerships, to the maximum ex-
tent possible, with elementary schools, secondary
schools, institutions of higher education, Federal,
State, and local government agencies, and private
entities, to share equipment, technical assistance,
and other technological resources, for the develop-
ment of the infrastructure described in subsection
(b);
(2) enter into arrangements with entities for
the provision of sites from which the infrastructure
will disseminate training;
(3) ensure the establishment of at least 2 of the
training sites in each State, and additional training
sites based on the populations and geographic con-
siderations of States;
(4) enter into arrangements with child care
credentialing or accreditation entities that are recog-
nized (as described in section 2(2)) by more than 1
State agency or tribal organization, for the develop-
ment of child care training to be disseminated
through the infrastructure;
(5) provide, directly or through a contract
(which may for good cause be a sole source con-
tract), expertise to convert training courses for dis-
tance transmission, provide interactive environments,
and conduct registration, testing, electronic storage
of information, and other technology-based activities
to adapt and enhance training course content con-
sistent with the medium of transmission involved
through the infrastructure;
(6) provide, through a logistical scheduling
mechanism, equitable access to the infrastructure for
all child care credentialing or accreditation entities
described in paragraph (4) that request an oppor-
tunity to disseminate child care training through the
infrastructure and meet the requirements of this sec-
tion;
(7) develop and implement a mechanism for
participants in the training to evaluate the infra-
structure, including providing comments on the ac-
cessibility and affordability of the training, and rec-
ommendations for improvements in the training;
(8) develop and implement a monitoring system
to provide data on the training provided through the
infrastructure, including data on—
(A) the number of facilities and individuals
participating in the training;
(B) the number of facilities receiving ac-
creditation (including a repeat accreditation) as
accredited child care facilities, and individuals
receiving credentialing (including a repeat
credentialing) as credentialed child care profes-
sionals, after fulfilling requirements that in-
clude participation in the training;
(C) the number of accredited child care fa-
cilities, and credentialed child care profes-
sionals, participating in the training; and
(D) the number of sites in which the train-
ing is received, analyzed—
(i) by State; and
(ii) by location in an urban, suburban,
or rural area; and
(9) establish and operate the child care training
revolving fund described in section 302.
(d) ELIGIBILITY.—To be eligible to receive the grant,
an organization shall be an organization that—
(1) is a private, nonprofit entity that is not—
(A) a child care credentialing or accredita-
tion entity;
(B) a subsidiary or affiliate of a child care
credentialing or accreditation entity; or
(C) an entity that has a subsidiary or affil-
iate that is a child care credentialing or accredi-
tation entity;
(2) has experience in developing partnerships
with child care credentialing or accreditation enti-
ties, institutions of higher education, and State and
local governments, for the provision of child care
training;
(3) has experience in providing and coordi-
nating the provision of child care training to family
child care providers and center-based child care pro-
viders;
(4) is related to child care provider support or-
ganizations in 35 or more States, through member-
ship in a common organization, affiliation, or an-
other mechanism;
(5) has experience in working with rural and
urban child care provider support organizations and
child care providers; and
(6) has experience in working with national
child care groups and organizations, including Fed-
eral government agencies, providers of child care
training, child care credentialing or accreditation en-
tities, and educational groups.
(e) APPLICATION.—To be eligible to receive a grant
under subsection (b), an organization shall submit an ap-
plication to the Secretary at such time, in such manner,
and containing such information as the Secretary may re-
quire, including—
(1) information describing, and indicating a
preliminary count of the number of, the sites from
which the infrastructure will disseminate training;
(2) an assurance that the organization will re-
quire that—
(A) each child care credentialing or accred-
itation 
entity 
that 
disseminates 
training
through the infrastructure will provide, during
at least 60 percent of the dissemination period,
an 
opportunity 
for 
participants 
in 
the
training—
(i) to interact with an identified train-
er or training leader at the training site; or
(ii) to elect to engage in other inter-
active training; and
(B) no child care credentialing or accredi-
tation entity may collect fees for participation
in the training that total more than—
(i) the cost to the entity for devel-
oping, conducting, and providing materials
for, the training; minus
(ii) the amount that the entity re-
ceives under this section or from any other
source to develop, conduct, and provide
materials for, the training; and
(3) information demonstrating that the organi-
zation will comply with the requirements of sub-
section (f)(2)(A).
(f) DEVELOPMENT AND OPERATION OF INFRASTRUC-
TURE.—
(1) CONTRACTS.—An organization that receives
a grant under subsection (b) may use funds made
available through the grant to enter into contracts,
which may for good cause be sole source contracts,
for the development of the technological and
logistical aspects of the infrastructure. The organiza-
tion shall enter into such a contract with an entity
with experience in establishing technology-based
interactive educational or training programs.
(2) TIME LINES.—
(A) BOARD, PERSONNEL, AND REVOLVING
FUND.—Not later than 6 months after the date
of receipt of the grant, the organization shall—
(i) establish a governing board;
(ii) establish bylaws to ensure fair
representation on the board of entities dis-
seminating training through the infrastruc-
ture;
(iii) appoint a Chief Executive Project
Officer to oversee the daily operation of
the infrastructure; and
(iv) establish and operate the child
care training revolving fund described in
section 302.
(B) TRAINING SITES.—
(i) 50 PERCENT OPERATIONAL.—Not
later than 3 years after the date of receipt
of the grant, the organization shall dis-
seminate training at 50 percent of the sites
described in the information submitted
under subsection (e)(1).
(ii) 75 PERCENT OPERATIONAL.—Not
later than 4 years after the date of receipt
of the grant, the organization shall dis-
seminate training at 75 percent of the
sites.
(iii) 90 PERCENT OPERATIONAL.—Not
later than 5 years after the date of receipt
of the grant, the organization shall dis-
seminate training at 90 percent of the
sites.
(C) EVALUATION.—The organization shall
develop and implement the mechanism for con-
ducting evaluations of the infrastructure de-
scribed in subsection (c)(7) not later than 3
years after the date of receipt of the grant.
(g) MANDATORY PARTICIPATION BY FEDERAL DE-
PARTMENTS.—The Secretary of Health and Human Serv-
ices, the Secretary of Education, and the Secretary of De-
fense shall participate in the infrastructure by ensuring
that the training disseminated through the infrastructure
includes training provided in accordance with curricula de-
veloped by their departments (or by contractors for the
departments) for providers carrying out activities under
the Head Start Act (42 U.S.C. 9831 et seq.), the Safe
and Drug-Free Schools and Communities Act of 1994 (20
U.S.C. 7101 et seq.), and the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), and
other relevant curricula developed by the departments (or
by contractors for the departments).
(h) CORPORATION.—The organization may establish
a nonprofit corporation containing the governing board,
Chief Executive Project Officer, and personnel, to carry
out this section.
(i) ADMINISTRATIVE COSTS.—Prior to the date on
which the organization disseminates training at 75 percent
of the sites described in the information submitted under
subsection (e)(1), the organization may use not more than
25 percent of the funds made available through the grant
to pay for the administrative costs of carrying out this
section. Effective on that date, the organization may use
not more than 15 percent of the funds to pay for the ad-
ministrative costs.
(j) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$50,000,000 for each of fiscal years 2000 through 2005.
SEC. 302. CHILD CARE TRAINING REVOLVING FUND.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Chief Executive Project
Officer shall use not less than 10 percent of the
funds made available through a grant made under
section 301 during the 5 years after the date of re-
ceipt of the grant to establish and operate a child
care training revolving fund (referred to in this sec-
tion as the ‘‘Fund’’)—
(A) from which the Chief Executive
Project Officer shall make loans to eligible bor-
rowers for the purpose of enabling the persons
to purchase computers, satellite dishes, and
other equipment that will be used to dissemi-
nate training through the infrastructure de-
scribed in section 301; and
(B) into which all payments, charges, and
other amounts collected from loans made under
subparagraph (A) shall be deposited notwith-
standing any other provision of law.
(2) SEPARATE ACCOUNT.—The Fund shall be
maintained as a separate account. Any portion of
the Fund that is not required for expenditure shall
be invested in obligations of the United States or in
obligations guaranteed or insured by the United
States.
(3) INTEREST
EARNED.—The interest earned
on the investments shall be credited to and form a
part of the Fund.
(b) ELIGIBLE BORROWERS.—To be eligible to receive
a loan under subsection (a), a borrower shall be a child
care provider who seeks to receive training through the
infrastructure or an entity that has entered into an ar-
rangement with the Chief Executive Project Officer to pro-
vide a training site (as defined in section 301) for the in-
frastructure.
(c) APPLICATION.—To be eligible to receive a loan
under subsection (a), a borrower shall submit an applica-
tion to the Chief Executive Project Officer at such time,
in such manner, and containing such information as the
Chief Executive Project Officer, in consultation with the
governing board and the chief executive officer of an orga-
nization receiving a grant under section 301, may require.
At a minimum, the application shall include—
(1) an assurance that the person shall use the
equipment funded through the loan to receive or dis-
seminate training through the infrastructure, for
such period as the Secretary may by regulation pre-
scribe; and
(2) an assurance that the person shall permit
other persons to use the equipment to receive or dis-
seminate training through the infrastructure, for
such period as the Secretary may by regulation pre-
scribe.
(d) LOANS.—In making loans under subsection (a),
the Chief Executive Project Officer shall—
(1) to the maximum extent practicable, equi-
tably distribute the loans among borrowers in the
various States, and among borrowers in urban, sub-
urban, and rural areas; and
(2) take into consideration the availability to
the borrowers of resources from sources other than
the Fund, including the availability of resources
through the partnerships described in section
301(c)(1).
(e) TERMS AND CONDITIONS.—
(1) CONDITIONS.—The Chief Executive Project
Officer may make a loan to a borrower under sub-
section (a) only if the Chief Executive Project Offi-
cer determines that—
(A) the borrower is unable to obtain re-
sources from other sources on reasonable terms
and conditions; and
(B) there is a reasonable prospect that the
borrower will repay the loan.
(2) TERMS.—A loan made under subsection (a)
shall be—
(A) for a term that does not exceed 4
years; and
(B) at no interest.
(3) COLLATERAL.—The Chief Executive Project
Officer may require any borrower of a loan made
under subsection (a) to provide such collateral as the
Chief Executive Project Officer determines to be
necessary to secure the loan.
(4) PROCEDURES AND DEFINITIONS.—Prior to
making loans under subsection (a), the Chief Execu-
tive Project Officer shall establish written proce-
dures and definitions pertaining to defaults and col-
lections of payments under the loans, which shall be
subject to the review and approval of the Secretary.
The governing board and chief executive officer of
the organization involved shall provide to each appli-
cant for a loan under subsection (a), at the time ap-
plication for the loan is made, a written copy of the
procedures and definitions.
(f) DEFAULTS.—
(1) NOTICE.—The Chief Executive Project Offi-
cer shall provide the governing board and the chief
executive officer of the organization at regular inter-
vals written notice of each loan made under sub-
section (a) that is in default and the status of the
loan.
(2) ACTION.—
(A) NOTIFICATION.—After making reason-
able efforts to collect all amounts payable under
a loan made under subsection (a) that is in de-
fault, the Chief Executive Project Officer shall
notify the governing board and the chief execu-
tive officer of the organization that the loan is
uncollectable or collectible only at an unreason-
able cost. The notification shall include rec-
ommendations for future action to be taken by
the Chief Executive Project Director.
(B) INSTRUCTIONS.—On receiving the no-
tification, the governing board and the chief ex-
ecutive officer of the organization shall advise
the Chief Executive Project Officer—
(i) to continue with its collection ac-
tivities;
(ii) to cancel, adjust, compromise, or
reduce the amount of the loan; or
(iii) to modify any term or condition
of the loan, including any term or condi-
tion relating to the time of payment of any
installment of principal, or portion of prin-
cipal, that is payable under the loan.
(g) ADMINISTRATION AND ASSISTANCE.—
(1) IN
GENERAL.—Consistent with section
301(i), the Chief Executive Project Officer shall, out
of funds available in the Fund—
(A) pay expenses incurred by the Chief Ex-
ecutive Project Officer in administering the
Fund; and
(B) provide competent management and
technical assistance to borrowers of loans made
under subsection (a) to assist the borrowers to
achieve the purposes of the loans.
(2) ASSISTANCE
BY
THE
SECRETARY.—The
Secretary shall provide to the chief executive officer
of the organization and the Chief Executive Project
Officer such management and technical assistance as
the chief executive officer of the organization and
the Chief Executive Project Officer may request in
order to carry out the provisions of this section.
(h) REGULATIONS.—The Secretary may prescribe
such regulations as may be necessary to carry out the ob-
jectives of this section, including regulations involving re-
porting and auditing.
TITLE 
IV—EXPANDING 
YOUTH
DEVELOPMENT 
OPPORTUNI-
TIES 
DURING 
NON-SCHOOL
HOURS
SEC. 401. PURPOSE.
The purpose of this title is to establish programs that
provide care for school-age youth during non-school hours,
in order to create activities for youth that better enable
youth to develop the skills and competencies that are nec-
essary to successfully transition from childhood to adult-
hood.
SEC. 402. DEFINITIONS.
In this title:
(1) ASSISTANT SECRETARY.—The term ‘‘As-
sistant Secretary’’ means the Assistant Secretary for
Children and Families of the Department of Health
and Human Services.
(2) NON-SCHOOL HOURS PROGRAM.—The term
‘‘non-school hours program’’ means a program, such
as a youth development program, that provides care
for youth during non-school hours.
(3) PROTECTIVE FACTORS.—The term ‘‘protec-
tive factors’’ means research-based factors or activi-
ties that enable youth to resist high-risk behaviors
that may produce negative health or social outcomes.
(4) RISK FACTORS.—The term ‘‘risk factors’’
means research-based precursors that predict an in-
creased probability of developing high-risk behavior.
(5) YOUTH.—The term ‘‘youth’’ means an indi-
vidual who is attending an elementary or secondary
school, as defined in section 14101 of the Elemen-
tary and Secondary Education Act of 1965 (20
U.S.C. 8801).
(6) YOUTH
DEVELOPMENT
PROGRAM.—The
term ‘‘youth development program’’ means a pro-
gram that—
(A) in order to enable youth to deal suc-
cessfully with the challenges of adolescence and
prepare the youth for the independence and re-
sponsibilities of being parents, workers, and
citizens, helps the youth to develop—
(i) social competencies, such as work
and family life skills, problem-solving
skills, and communication skills;
(ii) physical competencies, such as
physical conditioning, endurance, and an
appreciation for and strategies to achieve
lifelong physical health and fitness;
(iii) emotional competencies, such as a
sense of personal identity, self-confidence,
autonomy, and the ability to resist negative
peer pressure;
(iv) moral competencies, such as char-
acter development, personal values, ethics,
and a sense of responsibility and citizen-
ship (including participation in civic life
and community service); and
(v) cognitive competencies, such as
knowledge, reasoning ability, creativity,
and a lifelong commitment to learning and
achievement;
(B) conducts activities that (excluding aca-
demic activities conducted outside the classroom
and tutoring) have a primarily nonacademic
focus;
(C) employs primarily active and experi-
mental learning methods;
(D) builds relationships between adults
who are positive adult role models and youth in
a non-school hours program setting; and
(E) promotes the competencies described
in subparagraph (A) through group or one-to-
one activities, which may include activities au-
thorized under section 408(b).
SEC. 403. ESTABLISHMENT OF PROGRAM.
(a) GRANTS.—The Assistant Secretary shall award
grants to eligible States, from allotments made under sec-
tion 404, to enable the eligible States to award grants to
entities to pay for the Federal share of the cost of estab-
lishing quality non-school hours programs.
(b) FEDERAL SHARE.—
(1) IN GENERAL.—The Federal share of the
cost described in subsection (a) shall be 80 percent.
(2) NON-FEDERAL
SHARE.—The non-Federal
share of the cost described in subsection (a) may be
contributed in cash or in kind, fairly evaluated, in-
cluding facilities, equipment, or services (which may
be provided from State or local public sources or
through donations from private entities). For pur-
poses of this paragraph the term ‘‘facilities’’ includes
the use of facilities, but the term ‘‘equipment’’
means donated equipment and not the use of equip-
ment.
SEC. 404. STATE ALLOTMENTS.
(a) RESERVATION.—The Assistant Secretary shall re-
serve not more than 1⁄2 of 1 percent of the amount appro-
priated under section 412 for each fiscal year for pay-
ments to Guam, American Samoa, the United States Vir-
gin Islands, and the Commonwealth of the Northern Mar-
iana Islands, to be allotted in accordance with their re-
spective needs for assistance under this title.
(b) ALLOTMENTS.—From the amount appropriated
under section 412 for each fiscal year and remaining after
amounts are reserved under subsection (a), the Assistant
Secretary shall allot to each State that has an application
approved under section 405, an amount determined under
subsection (c).
(c) ALLOTMENT FORMULA.—
(1) IN GENERAL.—Subject to paragraph (2),
the Assistant Secretary shall allot to each State an
amount equal to the sum of—
(A) an amount that bears the same ratio
to 50 percent of the remainder described in
subsection (b) as the number of children and
youth who are age 5 through 17 in the State
bears to the number of such children and youth
in all States; and
(B) an amount that bears the same ratio
to 50 percent of the remainder as the number
of children and youth in the State who are re-
ceiving free or reduced price lunches under the
school lunch program established under the Na-
tional School Lunch Act (42 U.S.C. 1751 et
seq.) bears to the number of such children and
youth in all States.
(2) MINIMUM ALLOTMENT.—No State shall re-
ceive an allotment under paragraph (1) for a fiscal
year in an amount that is less than 1⁄2 of 1 percent
of the total amount appropriated for the fiscal year
under section 412.
(d) DATA AND INFORMATION.—The Assistant Sec-
retary shall obtain from each appropriate Federal agency,
the most recent data and information necessary to deter-
mine the allotments provided for in this section.
(e) REALLOTMENTS.—
(1) IN GENERAL.—Any portion of the allotment
to a State that is not used for activities under sec-
tion 408 or subsection (g), in the fiscal year for
which the allotment is made available, shall be real-
lotted by the Assistant Secretary to other States in
proportion to the original allotments to the other
States.
(2) LIMITATIONS.—
(A) 
REDUCTION
OF
REALLOTMENT
AMOUNT.—The amount of any reallotment to
which a State is entitled under paragraph (1)
shall be reduced to the extent that the allot-
ment exceeds the amount that the Assistant
Secretary estimates will be used by the State or
entities in the State to carry out activities
under section 408 or subsection (g).
(B) REALLOTMENT OF THE REDUCTION.—
The amount of any reduction under subpara-
graph (A) shall be reallotted among all other
States for which no reduction in an allotment
or reallotment is required by this subsection.
(3) AMOUNTS REALLOTTED.—For purposes of
this title, any amount reallotted to a State under
this subsection from an allotment made for a fiscal
year shall be considered to be part of the allotment
made under subsection (b) to the State for the fol-
lowing fiscal year.
(f) SUPPLEMENT NOT SUPPLANT.—Amounts re-
ceived under this section shall be used to supplement and
not supplant other Federal, State, and local public funds
expended to provide non-school hours programs.
(g) ADMINISTRATIVE COSTS.—A State that receives
a grant under this title may use—
(1) not more than 5 percent of the funds made
available through the grant to carry out training and
technical assistance activities under this title; and
(2) not more than an additional 10 percent of
the funds to pay for other costs associated with ad-
ministering activities under this title.
(h) DEFINITION.—In this section, the term ‘‘State’’
means the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
SEC. 405. STATE APPLICATION.
(a) IN GENERAL.—To be eligible for a grant under
this title, a State shall submit an application to the Assist-
ant Secretary at such time, in such manner, and accom-
panied by such information as the Assistant Secretary
may reasonably require.
(b) CONTENTS.—Each application submitted pursu-
ant to subsection (a) shall contain—
(1) such information as the Assistant Secretary
determines is necessary to ensure that the grant will
be distributed and used in accordance with this title;
and
(2) information designating administrative re-
gions (in which the administration of Federal or
State programs is carried out), or political subdivi-
sions, of the State as regions to which funds will be
allocated under section 406.
SEC. 406. LOCAL ALLOCATIONS AND GRANTS.
(a) ALLOCATIONS.—From the funds made available
to a State under section 404(b) for each fiscal year and
not used under section 404(g), the State shall allocate to
each region designated under section 405(b)(2) an amount
equal to the sum of—
(1) an amount that bears the same ratio to 50
percent of the remainder as the number of children
and youth who are age 5 through 17 in the region
bears to the number of such children and youth in
all regions of the State; and
(2) an amount that bears the same ratio to 50
percent of the remainder as the number of children
and youth in the region who are receiving free or re-
duced price lunches under the school lunch program
established under the National School Lunch Act
(42 U.S.C. 1751 et seq.) bears to the number of
such children and youth in all regions of the State.
(b) ALLOCATION DATA
AND INFORMATION.—The
State shall obtain from each appropriate Federal or State
agency, the most recent data and information necessary
to determine the allocations provided for in this section.
(c) REALLOCATIONS.—
(1) IN GENERAL.—Any portion of the allocation
to a region that is not used for activities under sec-
tion 408, in the fiscal year for which the allocation
is made available, shall be reallocated by the State
to other regions in proportion to the original alloca-
tions.
(2) LIMITATIONS.—
(A) 
REDUCTION
OF
REALLOCATION
AMOUNT.—The amount of any reallocation to
which a region is entitled under paragraph (1)
shall be reduced to the extent that the alloca-
tion exceeds the amount that the State esti-
mates will be used by entities in the region to
carry out activities under section 408.
(B) REALLOCATION
OF
THE
REDUC-
TION.—The amount of any reduction under
subparagraph (A) shall be reallocated among
other regions for which no reduction in an allo-
cation or reallocation is required by this sub-
section.
(3) AMOUNTS REALLOCATED.—For purposes of
this title, any amount reallocated to a region under
this subsection from an allocation made for a fiscal
year shall be considered to be part of the allocation
made under subsection (a) to the region for the fol-
lowing fiscal year.
(d) GRANTS.—The State shall use the funds allocated
to each region under subsection (a) to award grants, on
a competitive basis, to entities in that region.
(e) PREFERENCE.—In awarding a grant under sub-
section (d), the State shall give preference to an entity
that provides an assurance that the entity will use the
funds made available through the grant to carry out a
non-school hours program that will—
(1) have activities that are designed to remove
barriers to the availability of non-school hours child
care; and
(2) coordinate resources from public and pri-
vate entities to achieve a cohesive network consisting
of a variety of activities for youth.
(f) SUPPLEMENT NOT SUPPLANT.—Amounts re-
ceived under this section shall be used to supplement and
not supplant other Federal, State, and local public funds
expended to provide non-school hours programs.
SEC. 407. LOCAL APPLICATION.
(a) IN GENERAL.—An entity within a region that de-
sires to receive a grant under section 406 shall submit
an application to the State at such time, in such manner,
and accompanied by such information as the State may
require.
(b) CONTENTS.—Each application submitted pursu-
ant to subsection (a) shall contain—
(1) a statement that demonstrates that the en-
tity maintains cooperative agreements with a broad
range of community entities that provide direct or
indirect services to youth; and
(2) such information as the State determines is
necessary to ensure that the allocation will be dis-
tributed and used in accordance with this title.
SEC. 408. USE OF GRANT FUNDS.
(a) PROGRAM REQUIREMENTS.—Funds made avail-
able through a grant received under this title for a non-
school hours program shall be used by an entity to pay
for activities that—
(1) meet the child care needs of working par-
ents during non-school hours, including the hours
before and after school, weekends, school holidays,
vacation periods, and other non-school hours;
(2) address at least 2 of the competencies de-
scribed under paragraph (6)(A) of section 402;
(3) are designed to reduce risk factors;
(4) are designed to increase protective factors;
and
(5) are designed to assist youth in acquiring
skills and competencies necessary to make a success-
ful transition from childhood to adulthood.
(b) AUTHORIZED ACTIVITIES.—Funds made avail-
able through a grant received under this title may be used
by an entity for activities for youth, including activities
that focus on or promote—
(1) leadership development;
(2) mentoring;
(3) crime and delinquency prevention;
(4) community service or volunteerism;
(5) literacy;
(6) involvement in youth groups;
(7) sports and recreation;
(8) peer counseling and teaching;
(9) the arts;
(10) character development;
(11) prevention of violence, including domestic
violence;
(12) mediation skills training;
(13) drug abuse prevention;
(14) alcohol education;
(15) parenting skills;
(16) camping and environmental education;
(17) ethnic or cultural enrichment; and
(18) tutoring and academic enrichment.
(c) LIMITATION.—
(1) LOW-INCOME YOUTH.—Each entity that re-
ceives a grant under this title shall use not less than
50 percent of the funds made available through the
grant to subsidize the cost of activities described in
subsection (b) for youth who are children of families
that meet the income eligibility guidelines for free or
reduced price lunches under section 9(b) of the Na-
tional School Lunch Act (42 U.S.C. 1758(b)).
(2) INFORMATION.—An entity that receives a
grant under this title shall be considered to be a per-
son directly connected with the administration of a
Federal education program for purposes of section
9(b)(2)(C)(iii)(II)(aa) of the National School Lunch
Act (42 U.S.C. 1758(b)(2)(C)(iii)(II)(aa)). A school
serving youth who are receiving services under this
title from the entity shall provide information to the
entity on the income eligibility status of the youth
who are children described in section 9(b)(2)(C)(iv)
of such Act (42 U.S.C. 1758(b)(2)(C)(iv)), in ac-
cordance with that section, to enable the entity to
meet the requirements of paragraph (1).
SEC. 409. FEDERAL ADMINISTRATION; DUTIES OF THE AS-
SISTANT SECRETARY.
(a) MONITORING AND EVALUATION.—The Assistant
Secretary shall develop and establish a system for moni-
toring and evaluating the effectiveness of activities funded
under this title.
(b) COORDINATION.—The Assistant Secretary shall
consult with the heads of appropriate Federal agencies,
including the Administrator of the Office of Juvenile Jus-
tice and Delinquency Prevention, and other Federal offi-
cers carrying out Federal non-school hours programs, to
ensure effective coordination of activities funded under
this title with other Federal programs serving youth and
families.
(c) TRAINING AND TECHNICAL ASSISTANCE.—The
Assistant Secretary shall develop and establish a system
for providing training and technical assistance to States
and local entities to increase their capacity to provide
quality non-school hours programs.
(d) NONCOMPLIANCE.—If the Assistant Secretary de-
termines, based on a review of the annual reports, audits,
or other documentation required under this title, that a
State or an entity that receives a grant under this title
is not complying with the requirements of this title, the
Assistant Secretary shall—
(1) inform the State or entity of the deficiencies
that need correction;
(2) provide appropriate training and technical
assistance designed to correct the deficiencies and
ensure compliance with the requirements; and
(3) initiate actions to terminate funding to the
State or an entity under this title if, after a reason-
able period of time, the State or entity has not made
substantial efforts to correct the deficiencies and
comply with the requirements.
SEC. 410. STATE ADMINISTRATION; DUTIES OF THE STATES.
(a) DESIGNATION OF STATE ENTITY.—In order for
a State to receive a grant under this title, the Governor
of the State shall establish or designate an entity to ad-
minister the activities carried out in the State under this
title.
(b) YOUTH DEVELOPMENT INPUT.—The State shall
establish a mechanism to regularly receive advice and
input from a representative mix of individuals and organi-
zations that provide services under this title to youth, or
receive services under this title, to improve the effective-
ness and increase coordination of non-school hours pro-
grams under this title in the State.
(c) REVIEW AND COMPLIANCE.—
(1) 
MONITORING
OPERATIONS.—The 
State
shall have primary responsibility for ensuring that
the grant is administered in compliance with this
title.
(2) TECHNICAL ASSISTANCE.—The State shall
provide technical assistance related to the develop-
ment and implementation of non-school hours pro-
grams receiving grants under this title.
(3) NONCOMPLIANCE.—If the State determines,
based on a review of the annual reports, audits, or
other documentation required under this title, that
an entity carrying out an activity funded by this title
is not complying with the requirements of this title,
the State shall—
(A) inform the entity of the deficiencies
that need correction;
(B) provide appropriate training and tech-
nical assistance designed to correct the defi-
ciencies and ensure compliance with the re-
quirements; and
(C) initiate actions to terminate funding to
the entity under this title if, after a reasonable
period of time, the entity has not made sub-
stantial efforts to correct the deficiencies and
comply with the requirements.
(d) ANNUAL REPORT AND AUDIT.—
(1) IN GENERAL.—Each State shall, not later
than 120 days after the end of each fiscal year of
the State, prepare and submit to the Assistant Sec-
retary an annual report, in such manner and con-
taining such information as the Assistant Secretary
may reasonably require to determine compliance
with this title.
(2) CONTENTS.—The report described in para-
graph (1) shall include—
(A) information on the activities funded in
the State under this title during the fiscal year;
and
(B) the extent to which the activities fund-
ed in the State have helped youth develop the
competencies described in paragraph (6) of sec-
tion 402.
(3) AUDIT.—Together with each report sub-
mitted under this section, the State shall submit the
findings of an independent audit conducted in ac-
cordance with chapter 75 of title 31, United States
Code, concerning such activities.
SEC. 411. COORDINATION WITH OTHER PROGRAMS.
Activities that receive funding under this title shall
be coordinated with programs and activities that receive
funding under the Safe and Drug-Free Schools and Com-
munities Act of 1994 (20 U.S.C. 7101 et seq.) or the 21st
Century Community Learning Centers Act (20 U.S.C.
8241 et seq.).
SEC. 412. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There is authorized to be appro-
priated to carry out this title—
(1) $500,000,000 for fiscal year 2000;
(2) $600,000,000 for fiscal year 2001;
(3) $700,000,000 for fiscal year 2002;
(4) $800,000,000 for fiscal year 2003; and
(5) $1,000,000,000 for fiscal year 2004.
(b) AVAILABILITY OF FUNDS.—Subject to sections
404(e) and 406(c), no State or entity that receives funds
during a fiscal year may expend the funds after the end
of the fiscal year.
TITLE V—CHILD CARE IN
FEDERAL FACILITIES
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Federal Employees
Child Care Act’’.
SEC. 502. DEFINITIONS.
In this title (except as otherwise provided in section
505):
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of General Serv-
ices.
(2) CHILD CARE ACCREDITATION ENTITY.—The
term ‘‘child care accreditation entity’’ means a non-
profit private organization or public agency that—
(A) is recognized by a State agency or by
a national organization that serves as a peer re-
view panel on the standards and procedures of
public and private child care or school accred-
iting bodies; and
(B) accredits a facility to provide child
care on the basis of—
(i) an accreditation or credentialing
instrument based on peer-validated re-
search;
(ii) compliance with applicable State
or local licensing requirements, as appro-
priate, for the facility;
(iii) outside monitoring of the facility;
and
(iv) criteria that provide assurances
of—
(I) use of developmentally appro-
priate health and safety standards at
the facility;
(II) use of developmentally ap-
propriate educational activities, as an
integral part of the child care pro-
gram carried out at the facility; and
(III) use of ongoing staff devel-
opment or training activities for the
staff of the facility, including related
skills-based testing.
(3) ENTITY SPONSORING A CHILD CARE FACIL-
ITY.—The term ‘‘entity sponsoring a child care facil-
ity’’ means a Federal agency that operates, or an
entity that enters into a contract or licensing agree-
ment with a Federal agency to operate, a child care
facility primarily for the use of Federal employees.
(4) EXECUTIVE AGENCY.—The term ‘‘Executive
agency’’ has the meaning given the term in section
105 of title 5, United States Code, except that the
term—
(A) does not include the Department of
Defense and the Coast Guard; and
(B) includes the General Services Adminis-
tration, with respect to the administration of a
facility described in paragraph (5)(B).
(5) EXECUTIVE FACILITY.—The term ‘‘execu-
tive facility’’—
(A) means a facility that is owned or
leased by an Executive agency; and
(B) includes a facility that is owned or
leased by the General Services Administration
on behalf of a judicial office.
(6) FEDERAL
AGENCY.—The term ‘‘Federal
agency’’ means an Executive agency, a legislative of-
fice, or a judicial office.
(7) JUDICIAL FACILITY.—The term ‘‘judicial fa-
cility’’ means a facility that is owned or leased by a
judicial office (other than a facility that is also a fa-
cility described in paragraph (5)(B)).
(8) JUDICIAL OFFICE.—The term ‘‘judicial of-
fice’’ means an entity of the judicial branch of the
Federal Government.
(9) LEGISLATIVE FACILITY.—The term ‘‘legisla-
tive facility’’ means a facility that is owned or leased
by a legislative office.
(10) LEGISLATIVE OFFICE.—The term ‘‘legisla-
tive office’’ means an entity of the legislative branch
of the Federal Government.
(11) STATE.—The term ‘‘State’’ has the mean-
ing given the term in section 658P of the Child Care
and Development Block Grant Act of 1990 (42
U.S.C. 9858n).
SEC. 503. PROVIDING QUALITY CHILD CARE IN FEDERAL
FACILITIES.
(a) EXECUTIVE FACILITIES.—
(1) STATE
AND
LOCAL
LICENSING
REQUIRE-
MENTS.—
(A) IN GENERAL.—Any entity sponsoring
a child care facility in an executive facility
shall—
(i) comply with child care standards
described in paragraph (2) that are no less
stringent than applicable State or local li-
censing requirements that are related to
the provision of child care in the State or
locality involved; or
(ii) obtain the applicable State or local
licenses, as appropriate, for the facility.