viduals to provide child care and development serv-
ices.
‘‘(2) DISTRESSED AREA.—The term ‘distressed
area’ means an area that—
‘‘(A) meets the requirements under sub-
chapter U of chapter I of the Internal Revenue
Code (26 U.S.C. 1391 et seq.) for designation
as an enterprise community or empowerment
zone under such subchapter; or
‘‘(B) is a census tract that has a median
income that does not exceed 50 percent of the
median income for the region in which the cen-
sus tract is located, as determined by the Sec-
retary.
For purposes of subparagraph (B), a region shall be
determined by the Secretary in the same manner as
areas are determined for purposes of determining in-
come limitations for assistance under section 8 of
the United States Housing Act of 1937 (42 U.S.C.
1437f).
‘‘(3) EQUIPMENT.—The term ‘equipment’ in-
cludes machinery, utilities, and built-in equipment
and any necessary enclosures or structures to house
them, and any other items necessary for the func-
tioning of a particular facility as a child care and
development facility, including necessary furniture.
Such term includes books, curricular, and program
materials.
‘‘(4) MORTGAGE; 
FIRST
MORTGAGE; 
MORT-
GAGEE.—The term ‘mortgage’ means a first mort-
gage on real estate in fee simple, or on the interest
of either the lessor or lessee thereof under a lease
having a period of not less than 7 years to run be-
yond the maturity date of the mortgage. The term
‘first mortgage’ means such classes of first liens as
are commonly given to secure advances (including
advances during construction) on, or the unpaid pur-
chase price of, real estate under the laws of the
State in which the real estate is located, together
with the credit instrument or instruments (if any)
secured thereby, and any mortgage may be in the
form of one or more trust mortgages or mortgage
indentures or deeds of trust, securing notes, bonds,
or other credit instruments, and, by the same instru-
ment or by a separate instrument, may create a se-
curity interest in initial equipment, whether or not
attached to the realty. The term ‘mortgagor’ has the
meaning given the term in section 207(a).
‘‘(k) LIMITATION ON INSURANCE AUTHORITY.—
‘‘(1) TERMINATION.—No mortgage may be in-
sured under this section or section 223(h) after Sep-
tember 30, 2008, except pursuant to a commitment
to insure issued on or before such date.
‘‘(2) AGGREGATE PRINCIPAL AMOUNT LIMITA-
TION.—The aggregate principal amount of mort-
gages for which the Secretary enters into commit-
ments to insure under this section or section 223(h)
on or before the date under paragraph (1) may not
exceed $2,000,000,000. If, upon the date under
paragraph (1), the aggregate insurance authority
provided under this paragraph has not been fully
used, the Secretary of the Treasury shall submit a
report to the Congress evaluating the need for con-
tinued mortgage insurance under this section.’’.
‘‘(l) REGULATIONS.—The Secretary shall issue any
regulations necessary to carry out this section. In issuing
such regulations, the Secretary shall consult with the Sec-
retary of Health and Human Services with respect to any
aspects of the regulations regarding child care and devel-
opment facilities.’’.
SEC. 4. INSURANCE FOR MORTGAGES FOR ACQUISITION OR
REFINANCING DEBT OF EXISTING CHILD
CARE AND DEVELOPMENT FACILITIES.
Section 223 of the National Housing Act (12 U.S.C.
1715n) is amended by adding at the end the following new
subsection:
‘‘(h) MORTGAGE INSURANCE FOR PURCHASE OR RE-
FINANCING OF EXISTING CHILD CARE AND DEVELOP-
MENT FACILITIES.—
‘‘(1) AUTHORITY.—Notwithstanding any other
provision of this Act, the Secretary may insure
under any section of this title a mortgage executed
in connection with the purchase or refinancing of an
existing child care and development facility, the pur-
chase of a structure to serve as a child care and
development facility, or the refinancing of existing
debt of an existing child care and development facil-
ity.
‘‘(2) PURCHASE OF EXISTING FACILITIES AND
STRUCTURES.—In the case of the purchase under
this subsection of an existing child care and develop-
ment facility or purchase of an existing structure to
serve as such a facility, the Secretary shall prescribe
any terms and conditions that the Secretary con-
siders necessary to ensure that—
‘‘(A) the facility or structure purchased
continues to be used as a child care and devel-
opment facility; and
‘‘(B) the facility complies with the same
requirements applicable under section 257(d) to
facilities having mortgages insured under such
section.
‘‘(3) REFINANCING OF EXISTING FACILITIES.—
In the case of refinancing of an existing child care
and development facility, the Secretary shall pre-
scribe any terms and conditions that the Secretary
considers necessary to ensure that—
‘‘(A) the refinancing is used to lower the
monthly debt service costs (taking into account
any fees or charges connected with such refi-
nancing) of the existing facility;
‘‘(B) the proceeds of any refinancing will
be employed only to retire the existing indebted-
ness and pay the necessary cost of refinancing
on the existing facility;
‘‘(C) the existing facility is economically
viable; and
‘‘(D) the facility complies with the same
requirements applicable under section 257(d) to
facilities having mortgages insured under such
section.
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the terms defined in section 257(j) shall
have the same meanings as provided under such sec-
tion.
‘‘(5) LIMITATION ON INSURANCE AUTHORITY.—
The authority of the Secretary to enter into commit-
ments to insure mortgages under this subsection is
subject to the limitations under section 257(k).’’.
SEC. 5. CHILDREN’S DEVELOPMENT COMMISSION.
Title II of the National Housing Act (12 U.S.C. 1707
et seq.) is amended by adding at the end (after section
257, as added by section 3 of this Act) the following new
section:
‘‘CHILDREN’S DEVELOPMENT COMMISSION
‘‘SEC. 258. (a) ESTABLISHMENT.—There is hereby
established a commission to be known as the Children’s
Development Commission.
‘‘(b) MEMBERSHIP.—
‘‘(1) APPOINTMENT.—The Commission shall be
composed of 7 members appointed by the President,
not later than the expiration of the 3-month period
beginning upon the enactment of this section, by and
with the advice and consent of the Senate, as fol-
lows:
‘‘(A) The Secretary of Housing and Urban
Development or the Secretary’s designee.
‘‘(B) The Secretary of Health and Human
Services or the Secretary’s designee.
‘‘(C) The Secretary of the Treasury or the
Secretary’s designee.
‘‘(D) 4 members shall be appointed from
among 12 individuals recommended jointly by
the Speaker of the House of Representatives,
the Majority Leader of the Senate, Minority
Leader of the House of Representatives, the
Minority Leader of the Senate.
‘‘(2) QUALIFICATIONS
OF
CONGRESSIONALLY
RECOMMENDED
MEMBERS.—Of the members ap-
pointed under paragraph (1)(D)—
‘‘(A) each shall be an individual who ac-
tively participates or is employed in the field of
child care and has academic, licensing, or other
credentials relating to such participation or em-
ployment; and
‘‘(B) not more than 2 may be of the same
political party.
‘‘(3) TERMS.—Each appointed member of the
Commission shall serve for a term of 3 years.
‘‘(4) VACANCIES.—Any member appointed to
fill a vacancy occurring before the expiration of the
term for which the member’s predecessor was ap-
pointed shall be appointed only for the remainder of
that term. A member may serve after the expiration
of that member’s term until a successor has taken
office. A vacancy in the Commission shall be filled
in the manner in which the original appointment was
made.
‘‘(5) CHAIRPERSON.—The chairperson of the
Commission shall be designated by the President at
the time of appointment.
‘‘(6) QUORUM.—A majority of the members of
the Commission shall constitute a quorum for the
transaction of business.
‘‘(7) VOTING.—Each member of the Commis-
sion shall be entitled to 1 vote, which shall be equal
to the vote of every other member of the Commis-
sion.
‘‘(8) PROHIBITION
ON
ADDITIONAL
PAY.—
Members of the Commission shall serve without
compensation, but shall be reimbursed for travel,
subsistence, and other necessary expenses incurred
in the performance of their duties as members of the
Commission.
‘‘(c) FUNCTIONS.—The Commission shall carry out
the following functions:
‘‘(1) CERTIFICATION
OF
COMPLIANCE.—The
Commission shall collect such information and make
such determinations as may be necessary to deter-
mine, for purposes of section 257(d), whether child
care and development facilities comply, or will be in
compliance within 12 months, with—
‘‘(A) any laws, standards, and require-
ments applicable to such facilities under the
laws of the State, municipality, or other unit of
general local government in which the facility is
or is to be located, and
‘‘(B) after the effective date of the stand-
ards and requirements established under para-
graph (2), such standards and requirements,
and shall issue certifications of such compliance.
‘‘(2) ESTABLISHMENT OF STANDARDS.—
‘‘(A) STUDY.—Not later than 12 months
after the date on which appointment of initial
membership of the Commission is completed,
the Commission, in consultation with the Sec-
retary of Housing and Urban Development and
the Secretary of Health and Human Services,
shall conduct a study to determine the laws,
standards, and requirements referred to in
paragraph (1)(A) that are applicable in each
State. Taking into consideration the findings of
the study, the Secretary shall establish stand-
ards and requirements regarding child care and
development facilities that are designed to en-
sure that mortgage insurance is provided under
section 257 and section 223(h) only for safe,
clean, and healthy facilities that provide appro-
priate care and development services for chil-
dren.
‘‘(B) 
PUBLICATION.—The 
Commission
shall issue regulations providing for the stand-
ards and requirements established under sub-
paragraph (A) to take effect, for purposes of
sections 257(d)(2) and 223(h)(2)(B) and para-
graph (1)(B) of this section, not later than 18
months after the date of the enactment of this
section.
‘‘(3) SMALL
PURPOSE
LOANS.—The Commis-
sion shall, to the extent amounts are made available
for such purpose pursuant to subsection (i) and
qualified requests are received, make loans, directly
or indirectly to providers of child care and develop-
ment facilities for reconstruction or renovation of
such facilities, subject to the following requirements:
‘‘(A) Loans under this paragraph shall be
made only for such facilities that are financially
and operationally viable, as determined under
standards and guidelines to be established by
the Commission.
‘‘(B) The aggregate amount of loans made
under this paragraph to a single borrower may
not exceed $50,000.
‘‘(C) A loan made under this paragraph
may not have a term exceeding 15 years.
‘‘(D) Loans under this paragraph shall
bear interest at rates and be made under such
other conditions and terms as the Commission
shall provide.
‘‘(4) NOTIFICATION.—The Commission shall
take such actions as may be necessary to publicize
the availability of the programs for mortgage insur-
ance under sections 257 and 223(h) and loans under
paragraph (3) of this subsection in a manner that
ensures that information concerning such programs
will be available to child care providers throughout
the United States.
‘‘(5) TECHNICAL
ASSISTANCE.—The Commis-
sion shall make available, to mortgagors of mort-
gages insured under section 257 or 223(h) and to
borrowers under paragraph (3) of this subsection,
technical assistance and expertise in the business as-
pects of operating child care and development facili-
ties (including business planning and quality control
assistance). The Commission shall provide such as-
sistance and expertise directly and in coordination
with appropriate Federal agencies (including the De-
partment of Housing and Urban Development, the
Department of Health and Human Services, the De-
partment of Defense, and the Small Business Ad-
ministration),
‘‘(6) LIABILITY INSURANCE.—Not later than 12
months after the date on which appointment of ini-
tial membership of the Commission is completed, the
Commission shall establish standards and guidelines,
applicable to mortgage insurance under sections 257
and 223(h) and loans under paragraph (3) of this
subsection, requiring child care providers operating
child care and development facilities assisted under
such provisions to obtain and maintain liability in-
surance in such amounts and subject to such re-
quirements as the Commission considers appro-
priate.
‘‘(7) RESEARCH FOUNDATION.—Not later than
12 months after the date of the enactment of this
section, the Commission shall submit a report to the
Congress recommending a plan for establishing and
funding a foundation that is an entity independent
of the Commission (but which maintains association
with the Commission)—
‘‘(A) which shall have as its purpose—
‘‘(i) to support research relating to
child care and development facilities;
‘‘(ii) to fund pilot programs to test in-
novative methods for improving child care;
and
‘‘(iii) to engage in activities and pub-
lish materials to assist persons interested
in mortgage insurance under sections 257
and 223(h) and other assistance provided
by the Commission; and
‘‘(B) which shall have the authority to ac-
cept, use, and dispose of gifts, bequests, or de-
vises of services or property, both real and per-
sonal, for the purpose of aiding or facilitating
the work of the foundation.
‘‘(8) STUDY
REGARDING
CAPITAL
NEEDS
OF
CENTER-BASED CHILD CARE IN LOW-INCOME COM-
MUNITIES.—The Commission shall provide for the
conducting of a study of center-based child care for
families in low-income communities and neighbor-
hoods that—
‘‘(A) determines the existing supply and
quality of such care in such areas;
‘‘(B) identifies the economic and other
market barriers in such areas to—
‘‘(i) creating an adequate supply of
center-based child care services; and
‘‘(ii) achieving a quality standard in
child care centers adequate to support
early childhood programs; and
‘‘(C) proposes public policy and private
sector initiatives that might be taken to ensure
that such areas have—
‘‘(i) a supply of center-based child
care facilities sufficient for child care needs
of the areas and to facilitate employment
and support the goals of welfare reform;
‘‘(ii) appropriate child care choices;
and
‘‘(iii) sufficient quality of care nec-
essary to prepare at-risk children for
school.
The Commission shall submit to the Congress a re-
port regarding the results of the study conducted
under this section not later than the expiration of
the 18-month period beginning on the date of the
appointment of the executive director pursuant to
subsection (f)(1).
‘‘(d) NONDISCRIMINATION REQUIREMENT.—
‘‘(1) IN GENERAL.—The Commission may not
certify under subsection (c)(1) or carry out any ac-
tivities of the Commission with respect to any child
care and development facility if the provider of the
facility discriminates on account of race, color, reli-
gion (subject to paragraph (2)), national origin, sex
(to the extent provided in title IX of the Education
Amendments of 1972 (20 U.S.C. 1681 et seq.)), or
handicapping condition.
‘‘(2) FACILITIES
OF
RELIGIOUS
ORGANIZA-
TIONS.—The prohibition with respect to religion
shall not apply to a child care and development facil-
ity which is controlled by or which is closely identi-
fied with the tenets of a particular religious organi-
zation if the application of this subsection would not
be consistent with the religious tenets of such orga-
nization.
‘‘(3) CERTIFICATION.—As a condition of certifi-
cation under subsection (c)(1) and eligibility for a
loan under subsection (c)(3), the provider of a child
care and development facility shall certify to the
Commission that the provider does not discriminate,
as required by the provisions of paragraph (1) of
this subsection.
‘‘(e) POWERS.—
‘‘(1) ASSISTANCE FROM FEDERAL AGENCIES.—
The Commission may secure directly from any de-
partment or agency of the Federal Government such
information as the Commission may require for car-
rying out its functions. Upon request of the Com-
mission, any such department or agency shall fur-
nish such information.
‘‘(2) ASSISTANCE
FROM
GENERAL
SERVICES
ADMINISTRATION.—The Administrator of General
Services shall provide to the Commission, on a reim-
bursable basis, such administrative support services
as the Commission may request.
‘‘(3) ASSISTANCE
FROM
DEPARTMENT
OF
HOUSING AND URBAN DEVELOPMENT.—Upon the re-
quest of the Commission, the Secretary of Housing
and Urban Development shall, to the extent possible
and subject to the discretion of the Secretary, detail
any of the personnel of the Department of Housing
and Urban Development, on a nonreimbursable
basis, to assist the Commission in carrying out its
functions under this section.
‘‘(4) MAILS.—The Commission may use the
United States mails in the same manner and under
the same conditions as other Federal agencies.
‘‘(f) STAFF.—
‘‘(1) EXECUTIVE DIRECTOR.—The Commission
shall appoint an executive director, who shall be
compensated at a rate fixed by the Commission, but
which shall not exceed the rate established for level
I of the Executive Schedule under title 5, United
States Code.
‘‘(2) OTHER PERSONNEL.—In addition to the
executive director, the Commission may appoint and
fix the compensation of such personnel as the Com-
mission considers necessary, in accordance with the
provisions of title 5, United States Code, governing
appointments to the competitive service, and the
provisions of chapter 51 and subchapter III of chap-
ter 53 of such title, relating to classification and
General Schedule pay rates.
‘‘(g) REPORTS.—Not later than March 31 of each
year, the Commission shall submit a report to the Presi-
dent and the Congress regarding the operations and activi-
ties of the Commission during the preceding calendar year.
Each annual report shall include a copy of the Commis-
sion’s financial statements and such information and other
evidence as is necessary to demonstrate that the activities
of the Commission during the year for which the report
is made. The Commission may also submit reports to the
Congress and President at such other times as the Com-
mission deems desirable.
‘‘(h) DEFINITIONS.—For purposes of this section, the
terms defined in section 257(j) shall have the same mean-
ings as provided under such section.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to the Commission to
carry out this section $20,000,000 for fiscal year 2000,
to remain available until expended, of which not more than
$2,500,000 shall be available for administrative costs of
the Commission and the remainder of which shall be avail-
able only for loans under subsection (c)(3).’’.
SEC. 6. STUDY OF AVAILABILITY OF SECONDARY MARKETS
FOR MORTGAGES ON CHILD CARE FACILI-
TIES.
The Secretary of the Treasury shall conduct a study
of the secondary mortgage markets to determine—
(1) whether such a market exists for purchase
of mortgages eligible for insurance under sections
223(h) and 257 of the National Housing Act (as
added by this Act);
(2) whether such a market would affect the
availability of credit available for development of
child care and development facilities or would lower
development costs of such facilities; and
(3) the extent to which such a market or other
activities to provide credit enhancement for child
care and development facilities loans is needed to
meet the demand for such facilities.
The Secretary of the Treasury shall submit to the Con-
gress a report regarding the results of the study conducted
under this section not later than the expiration of the 2-
year period beginning on the date of the enactment of this
Act.
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