I
106TH CONGRESS
1ST SESSION
H. R. 1139
To make child care more affordable for working families and for stay-at-
home parents with children under the age of 1, to double the number
of children receiving child care assistance, to provide for after-school
care, and to improve child care safety and quality and enhance early
childhood development.
IN THE HOUSE OF REPRESENTATIVES
MARCH 16, 1999
Mrs. TAUSCHER (for herself, Mr. GEPHARDT, Mr. BONIOR, Mr. FROST, Mr.
MENENDEZ, Mr. CARDIN, Mr. CLAY, Ms. DELAURO, Ms. LOFGREN, Mrs.
MALONEY of New York, Mr. RANGEL, Mr. WEYGAND, Ms. WOOLSEY, Mr.
ACKERMAN, Mr. ALLEN, Mr. ANDREWS, Mr. BALDACCI, Mr. BARRETT of
Wisconsin, Ms. BERKLEY, Mr. BERMAN, Mr. BORSKI, Mr. BOSWELL, Mr.
BOUCHER, Mr. BRADY of Pennsylvania, Ms. BROWN of Florida, Mr.
BROWN of California, Mr. BROWN of Ohio, Mrs. CAPPS, Ms. CARSON,
Mrs. CHRISTENSEN, Mrs. CLAYTON, Mr. CLEMENT, Mr. CONYERS, Mr.
COSTELLO, Mr. CROWLEY, Mr. CUMMINGS, Mr. DEFAZIO, Mr.
DELAHUNT, Mr. DICKS, Mr. DINGELL, Mr. DIXON, Mr. ENGEL, Ms.
ESHOO, Mr. FARR of California, Mr. FILNER, Mr. GEJDENSON, Mr.
GREEN of Texas, Mr. HASTINGS of Florida, Mr. HINCHEY, Mr. HOYER,
Ms. JACKSON-LEE of Texas, Mr. JEFFERSON, Ms. EDDIE BERNICE
JOHNSON of Texas, Mr. KANJORSKI, Ms. KAPTUR, Mr. KENNEDY of
Rhode Island, Mr. KILDEE, Ms. KILPATRICK, Mr. LAFALCE, Mr.
LAMPSON, Mr. LANTOS, Mr. LEWIS of Georgia, Mr. MATSUI, Mr.
MCGOVERN, Mr. MCNULTY, Ms. MILLENDER-MCDONALD, Mr. GEORGE
MILLER of California, Mr. MORAN of Virginia, Mr. NEAL of Massachu-
setts, Ms. NORTON, Mr. OBERSTAR, Mr. PALLONE, Mr. PAYNE, Ms.
PELOSI, Mr. PRICE of North Carolina, Mr. RAHALL, Mr. RODRIGUEZ,
Mr. ROMERO-BARCELO´, Ms. ROYBAL-ALLARD, Mr. RUSH, Ms. SANCHEZ,
Mr. SANDLIN, Mr. SCOTT, Mr. SERRANO, Mr. SHERMAN, Mr. SHOWS,
Ms. SLAUGHTER, Ms. STABENOW, Mrs. THURMAN, Mr. VENTO, Mr.
WAXMAN, Mr. WEXLER, and Mr. WYNN) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committees on Education and the Workforce, and Banking
and Financial Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To make child care more affordable for working families
and for stay-at-home parents with children under the
age of 1, to double the number of children receiving
child care assistance, to provide for after-school care,
and to improve child care safety and quality and enhance
early childhood development.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Affordable Child Care,
Education, Security, and Safety Act’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—FUNDING FOR CHILD CARE
Sec. 101. Child care subsidy funding.
TITLE II—DEPENDENT CARE TAX CREDIT REFORM
Sec. 201. Increase in dependent care tax credit; equivalent benefit where one
parent stays at home to provide child care for child under age
1.
Sec. 202. Allowance of credit for employer expenses for child care assistance.
Sec. 203. Dependent care credit allowed against the alternative minimum tax.
TITLE III—GRANTS TO BUSINESS CONSORTIA
Subtitle A—Grant Program
Sec. 301. Authority to make grants.
Sec. 302. Application.
Sec. 303. Use of amounts.
Sec. 304. Requirement of matching funds.
Subtitle B—General Provisions
Sec. 351. Definitions.
Sec. 352. Authorization of appropriations.
TITLE IV—AFTER SCHOOL PROGRAM
Subtitle A—21st Century Community Learning Centers
Sec. 401. Program authorization.
Sec. 402. Applications.
Sec. 403. Uses of funds.
Sec. 404. Definition.
Sec. 405. Continuation awards under current statute.
Sec. 406. Effective date.
Subtitle B—After School Snacks
Sec. 411. Child and adult care food program; meal supplements for children in
afterschool care.
TITLE V—MODEL STATES EARLY LEARNING PROGRAM
Sec. 501. Model States early learning program.
TITLE VI—CHILD CARE WORKER INCENTIVES
Sec. 601. Short title.
Sec. 602. National child care provider scholarship program.
Sec. 603. Application of amendments.
TITLE VII—RESEARCH AND DEMONSTRATION PROGRAM
Sec. 701. Research and demonstrations.
TITLE VIII—MISCELLANEOUS
Subtitle A—Child and Adult Food Program
Sec. 801. Revision of reimbursement rates for family or group day care homes
under the child and adult care food program under the Na-
tional School Lunch Act.
Subtitle B—Mortgage Insurance for Child Care and Development Facilities
Sec. 851. Short title.
Sec. 852. Congressional findings.
Sec. 853. Insurance for mortgages on new and rehabilitated child care and de-
velopment facilities.
Sec. 854. Insurance for mortgages for acquisition or refinancing debt of exist-
ing child care and development facilities.
Sec. 855. Children’s development commission.
Sec. 856. Study of availability of secondary markets for mortgages on child
care facilities.
Subtitle C—Sense of the Congress
Sec. 871. Sense of the Congress.
TITLE I—FUNDING FOR CHILD
CARE
SEC. 101. CHILD CARE SUBSIDY FUNDING.
(a) APPROPRIATION; ALLOCATION.—Section 418 of
the Social Security Act (42 U.S.C. 618) is amended—
(1) by redesignating subsections (b), (c), and
(d) as subsections (c), (d), and (e), respectively; and
(2) by inserting after subsection (a) the fol-
lowing:
‘‘(b) CHILD CARE SUBSIDY FUNDING.—
‘‘(1) APPROPRIATION.—Out of any funds in the
Treasury not otherwise appropriated, there are ap-
propriated for grants and other activities under this
subsection—
‘‘(A) $1,155,000,000 for fiscal year 2000;
‘‘(B) $1,280,000,000 for fiscal year 2001;
‘‘(C) $1,400,000,000 for fiscal year 2002;
‘‘(D) $1,600,000,000 for fiscal year 2003;
and
‘‘(E) $2,065,000,000 for fiscal year 2004.
‘‘(2) 
ALLOTMENT
AND
RESERVATION
OF
FUNDS.—
‘‘(A) ALLOTMENTS FOR INDIAN TRIBES.—
From the amount appropriated pursuant to
paragraph (1) for a fiscal year, the Secretary
shall allot to each Indian tribe that has received
a share for the fiscal year under section
658O(c) of the CCDBG Act, an amount that
bears the same ratio to such sum as the Sec-
retary may determine that is not less than 1
and not more than 2 percent of the amount so
appropriated as the share so received by the
tribe bears to the total of the shares so received
by all Indian tribes.
‘‘(B) RESERVATION FOR SECRETARY’S AC-
TIVITIES.—From the amount appropriated pur-
suant to paragraph (1) for a fiscal year, the
Secretary shall reserve $1,000,000 for expendi-
ture by the Secretary for quality assurance and
quality improvement activities relating to pro-
grams under the CCDBG Act.
‘‘(C) ALLOTMENTS FOR STATES AND TER-
RITORIES.—From the amount appropriated
pursuant to paragraph (1) for a fiscal year that
remains after applying subparagraphs (A) and
(B) of this paragraph for the fiscal year, the
Secretary shall allot to each State and territory
an amount that bears the same ratio to such re-
maining amount as the number of children re-
siding in the State or territory in the second
shall use not less than 70 percent of the amounts for
child care assistance to working families who are not
recipients of assistance under the State or territory
program funded under section 403(a)(1).’’.
(b) INCLUSION OF TERRITORIES IN DEFINITIONS.—
Section 418(e) of such Act, as so redesignated by sub-
section (a)(1) of this section, is amended to read as fol-
lows:
‘‘(f) DEFINITIONS.—As used in this section:
‘‘(1) CCDBG ACT.—The term ‘CCDBG Act’
means the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9801 et seq.).
‘‘(2) STATE.—The term ‘State’ means each of
the 50 States, the District of Columbia, and (except
for purposes of subsection (a)) the Commonwealth of
Puerto Rico.
‘‘(3) TERRITORY.—The term ‘territory’ means
the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern
Mariana Islands.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 418(a)(3) of such Act (42 U.S.C.
618(a)(3)) is amended by striking ‘‘this section’’ and
inserting ‘‘this subsection’’.
(2) Section 418(c) of such Act (as so redesig-
nated by subsection (a)(1) of this section) is amend-
ed in paragraphs (1) and (2) by striking ‘‘under this
section’’ each place it appears and inserting ‘‘under
subsection (a)’’.
(3) Section 1108(a)(2) of such Act (42 U.S.C.
1308(a)(2)) is amended by striking ‘‘or 413(f)’’ and
inserting ‘‘413(f), or 418(b)(3)(A)’’.
TITLE II—DEPENDENT CARE TAX
CREDIT REFORM
SEC. 201. EXPANSION OF DEPENDENT CARE TAX CREDIT.
(a) IN GENERAL.—Paragraph (2) of section 21(a) of
the Internal Revenue Code of 1986 (relating to expenses
for household and dependent care services necessary for
gainful employment) is amended to read as follows:
‘‘(2) APPLICABLE PERCENTAGE DEFINED.—For
purposes of paragraph (1), the term ‘applicable per-
centage’ means 50 percent reduced (but not below
20 percent) by 1 percentage point for each $1,000
(or fraction thereof) by which the taxpayer’s ad-
justed gross income for the taxable year exceeds
$30,000.’’
(b) MINIMUM CREDIT ALLOWED FOR STAY-AT-HOME
PARENTS.—Section 21(e) of such Code (relating to special
rules) is amended by adding at the end the following:
‘‘(11) MINIMUM CREDIT ALLOWED FOR STAY-
AT-HOME
PARENTS.—Notwithstanding 
subsection
(d), in the case of any taxpayer with one or more
qualifying 
individuals 
described 
in 
subsection
(b)(1)(A) under the age of 1 at any time during the
taxable year, such taxpayer shall be deemed to have
employment-related expenses with respect to such
qualifying individuals in an amount equal to the
greater of—
‘‘(A) the amount of employment-related ex-
penses incurred for such qualifying individuals
for the taxable year (determined under this sec-
tion without regard to this paragraph), or
‘‘(B) $125 for each month in such taxable
year during which such qualifying individual is
under the age of 1.’’.
(c) 
INFLATION
ADJUSTMENT
OF
DOLLAR
AMOUNTS.—
(1) Section 21 of such Code is amended by re-
designating subsection (f) as subsection (g) and by
inserting after subsection (e) the following new sub-
section:
‘‘(f) INFLATION ADJUSTMENT.—In the case of any
taxable year beginning in a calendar year after 2000, the
$30,000 amount contained in subsection (a), the $2,400
amount in subsection (c), and the $125 amount in sub-
section (e)(11) shall be increased by an amount equal to—
‘‘(1) such dollar amount, multiplied by
‘‘(2) the cost-of-living adjustment determined
under section 1(f)(3) for such calendar year by sub-
stituting ‘calendar year 1999’ for ‘calendar year
1992’ in subparagraph (B) thereof.
If the increase determined under the preceding sentence
is not a multiple of $50 ($5 in the case of the amount
in subsection (e)(11)), such amount shall be rounded to
the next lowest multiple thereof.’’
(2) Paragraph (2) of section 21(c) of such Code
is amended by striking ‘‘$4,800’’ and inserting
‘‘twice the dollar amount applicable under paragraph
(1)’’.
(3) Paragraph (2) of section 21(d) of such Code
is amended by striking ‘‘less than—’’ and all that
follows through the end of the first sentence and in-
serting ‘‘less than 1⁄12 of the amount which applies
under subsection (c) to the taxpayer for the taxable
year.’’
(d) CREDIT ALLOWED BASED
ON RESIDENCY
IN
CERTAIN CASES.—Subsection (e) of section 21 of such
Code is amended by adding at the end the following new
paragraph:
‘‘(12) CREDIT ALLOWED BASED ON RESIDENCY
IN CERTAIN CASES.—In the case of a taxpayer—
‘‘(A) who does not satisfy the household
maintenance test of subsection (a) for any pe-
riod, but
‘‘(B) whose principal place of abode for
such period is also the principal place of abode
of any qualifying individual,
then such taxpayer shall be treated as satis-
fying such test for such period but the amount
of credit allowable under this section with re-
spect to such individual shall be determined by
allowing only 1⁄12 of the limitation under sub-
section (c) for each full month that the require-
ment of subparagraph (B) is met.’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 202. 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) IN GENERAL.—For purposes of section 38, the
employer-provided child care credit determined under this
section for the taxable year is an amount equal to 25 per-
cent of the qualified child care expenditures of the tax-
payer for such taxable year.
‘‘(b) DOLLAR LIMITATION.—The credit allowable
under subsection (a) for any taxable year shall not exceed
$150,000.
‘‘(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.
‘‘(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
facility.
Clause (i) shall not apply to a facility which is
the principal residence (within the meaning of
section 121) of the operator of the facility.
‘‘(B) SPECIAL RULES WITH RESPECT TO A
TAXPAYER.—A facility shall not be treated as a
qualified child care facility with respect to a
taxpayer unless—
‘‘(i) enrollment in the facility is open
to all employees of the taxpayer during the
taxable year,
‘‘(ii) services available at such facility
do not discriminate in favor of employees
of the taxpayer who are highly com-
pensated employees (within the meaning of
section 414(q)), and
‘‘(iii) in the case of a facility which is
owned or operated by the taxpayer, at least
30 percent of the enrollees of such facility
are dependents of employees of the tax-
payer.
‘‘(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) PARTNERSHIPS.—In the case of partner-
ships, the credit under this section shall be deter-
mined at the partnership level and allocated among
the partners under regulations prescribed by the
Secretary; except that—
‘‘(A) subsection (b) shall be applied at the
partner level, and
‘‘(B) the employees of the partnership and
of each partner shall be treated as employees of
the taxpayer for purposes of applying sub-
section (c)(2)(B)(iii).
‘‘(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.’’
(b) CONFORMING AMENDMENTS.—
(1) Section 38(b) of such Code is amended—
(A) by striking ‘‘plus’’ at the end of para-
graph (11),
(B) by striking 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) Subsection (d) of section 39 of such Code
(relating to carryback and carryforward of unused
credits) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT
BEFORE JANUARY 1, 2000.—No portion of the un-
used business credit for any taxable year which is
attributable to the credit determined under section
45D may be carried back to a taxable year begin-
ning before January 1, 2000.’’.
(3) 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. 203. DEPENDENT CARE CREDIT ALLOWED AGAINST
THE ALTERNATIVE MINIMUM TAX.
(a) IN GENERAL.—Subsection (a) of section 26 of the
Internal Revenue Code of 1986 is amended by inserting
‘‘(other than the credit allowed by section 21)’’ after
‘‘credits allowed by this subpart’’.
(b) CONFORMING AMENDMENT.—Section 21 of such
Code, as amended by section 201, is amended by redesig-
nating subsections (f) and (g) as subsections (g) and (h),
respectively, and by inserting after subsection (e) the fol-
lowing new subsection:
‘‘(f) LIMITATION BASED ON AMOUNT OF TAX.—The
aggregate credit allowed by this section for the taxable
year shall not exceed the sum of—
‘‘(1) the taxpayer’s regular tax liability for the
taxable year reduced by the sum of the credits al-
lowed by this subpart other than this section, plus
‘‘(2) the tax imposed by section 55 for such
taxable year.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
TITLE III—GRANTS TO BUSINESS
CONSORTIA
Subtitle A—Grant Program
SEC. 301. AUTHORITY TO MAKE GRANTS.
(a) IN GENERAL.—The Secretary shall make grants
to States to be used to provide grants to eligible entities
described in subsection (b) to assist such entities to im-
prove access to affordable, local, quality child care serv-
ices.
(b) ELIGIBLE ENTITIES DESCRIBED.—
(1) IN GENERAL.—An eligible entity described
in this subsection is a consortium that—
(A) shall consist of representatives from
not fewer than 5 businesses (or a nonprofit or-
ganization that represents not fewer than 5
businesses); and
(B) has not received a grant under this
title.
(2) ADDITIONAL REQUIREMENT.—To the max-
imum extent practicable, each business or organiza-
tion that forms an eligible entity under paragraph
(1) shall be located in the same geographical region
of the United States.
(c) PRIORITY
FOR SMALL BUSINESSES.—In pro-
viding grants under subsection (a), a State shall give pri-
ority to eligible entities that consist of a majority of rep-
resentatives from small businesses.
(d) MAXIMUM AMOUNT OF GRANT.—The amount of
a grant provided to an eligible entity under subsection (a)
may not exceed $50,000 for any fiscal year.
SEC. 302. APPLICATION.
The Secretary may not provide a grant under section
301 to an eligible entity unless such entity submits to the
Secretary an application that contains—
(1) a proposal to use such grant to provide
quality child care services; and
(2) such information as the Secretary may rea-
sonably require by rule.
SEC. 303. USE OF AMOUNTS.
(a) IN GENERAL.—The Secretary may not provide a
grant under section 301 to an eligible entity unless such
entity agrees to use such grant to initiate a quality, afford-
able, local child care program that carries out the proposal
included in the application submitted under section 302
by such entity.
(b) CONDUCT OF PROGRAM.—In carrying out the
program described in subsection (a), the eligible entity
may—
(1) establish a board of directors to oversee the
program; and
(2) provide child care services on a sliding fee
scale that provides for cost sharing by the families
of the children who receive such services.
(c) ADMINISTRATIVE COSTS.—The eligible entity
may use not more than 15 percent of the amount of a
grant to pay for administrative costs associated with the
program described in subsection (a).
SEC. 304. REQUIREMENT OF MATCHING FUNDS.
The Secretary may not provide a grant under section
301 to an eligible entity unless such entity agrees that—
(1) it will make available non-Federal contribu-
tions toward the costs of carrying out a program
under section 303 in an amount that is not less than
$1 for each $1 of Federal funds provided under a
grant under section 301; and
(2) of such non-Federal contributions, not less
than $1 of each such $2 shall be from businesses
participating in the eligible entity.
Subtitle B—General Provisions
SEC. 351. DEFINITIONS.
For purposes of this title:
(1) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(2) STATE.—The term ‘‘State’’ has the mean-
ing given such term in section 658P of the of the
Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858n).
SEC. 352. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated $75,000,000
for each of the fiscal years 2000, 2001, 2002, 2003, and
2004 to carry out this title.
TITLE IV—AFTER SCHOOL
PROGRAM
Subtitle A—21st Century
Community Learning Centers
SEC. 401. PROGRAM AUTHORIZATION.
Section 10903 of the 21st Century Community
Learning Centers Act (referred to in this subtitle as ‘‘the
Act’’) is amended—
(1) in subsection (a)—
(A) by inserting ‘‘(1) GRANTS TO LEAS.’’
after ‘‘SECRETARY.—’’;
(B) in paragraph (1), as so designated—
(i) by striking ‘‘rural and inner-city’’
and all that follows through ‘‘or to’’ and
inserting the following: ‘‘local educational
agencies, on behalf of public elementary or
secondary 
schools, 
including 
middle
schools, that serve communities with a sub-
stantial need for expanded learning oppor-
tunities, to enable them to establish or’’;
and
(ii) by striking ‘‘a rural or inner-city
community’’ and inserting ‘‘those commu-
nities’’; and
(C) by adding after paragraph (1), as re-
designated, a new paragraph (2) to read as fol-
lows:
‘‘(2) GRANTS TO CBOS.—The Secretary may re-
serve not more than 10 percent of the funds appro-
priated to carry out this part for any fiscal year to
make grants to community-based organizations to
carry out projects, consistent with the purpose of
this part, with the concurrence of the local edu-
cational agencies in their respective communities.’’;
(2) in subsection (b)—
(A) by striking ‘‘States, among’’ and in-
serting ‘‘States and among’’; and
(B) by striking ‘‘United States,’’ and all
that follows through ‘‘a State’’ and inserting
‘‘United States’’; and
(3) in subsection (c), by striking ‘‘3’’ and in-
serting ‘‘5’’.
SEC. 402. APPLICATIONS.
Section 10904(a) of the Act is amended—
(1) in the first sentence, by striking ‘‘an ele-
mentary or secondary school or consortium’’ and in-
serting ‘‘a local educational agency, on behalf of one
or more elementary or secondary schools,’’;
(2) in paragraph (1), by striking ‘‘or consor-
tium’’;
(3) in paragraph (2), by striking ‘‘and’’ after
the semicolon;
(4) in paragraph (3)—
(A) in subparagraph (D), by striking ‘‘or
consortium’’; and
(B) in subparagraph (E)—
(i) by striking ‘‘or consortium’’; and
(ii) in clause (ii), by striking the pe-
riod at the end and inserting a semicolon;
and
(5) by adding at the end the following:
‘‘(4) information demonstrating that the appli-
cant will—
‘‘(A) provide not less than 1⁄2 the annual
cost of project activities from sources other
than funds under this part, which may be pro-
vided in cash or in kind, fairly evaluated, pro-
vided that not more than 50 percent of the ap-
plicant’s contribution may come from funds
provided by the Secretary under other programs
that permit the use of those funds for those ac-
tivities, if the applicant determines, in good
faith, that it cannot otherwise meet the require-
ment of this subparagraph; and
‘‘(B) in the 4th and 5th years of its
project, increase the percentage of the project’s
cost that is paid for by funds other than those
received under this part; and
‘‘(5) an assurance that the applicant will, in
each year of the project, maintain its fiscal effort,
from non-Federal sources, from the preceding fiscal
year for the services it provides with its grant under
this part.’’.
SEC. 403. USES OF FUNDS.
Section 10905 of the Act is amended by striking
‘‘may be used’’ and all that follows through ‘‘four’’ and
inserting the following: ‘‘shall be used to establish or ex-
pand community learning centers that provide activities
that offer significant expanded learning opportunities,
such as before and after school, for children and youth
in the community and that also may include any’’.
SEC. 404. DEFINITION.
Section 10906(1) of the Act is amended to read as
follows:
‘‘(1) provides extended learning services and
that may provide services that address other health,
social services, cultural, and recreational needs of
the community; and;’’.
SEC. 405. CONTINUATION AWARDS UNDER CURRENT STAT-
UTE.
The Act is further amended—
(1) in section 10907, by striking ‘‘appro-
priated’’ and all that follows to the end and insert-
ing the following: ‘‘appropriated $600,000,000 for
each of fiscal years 2000 through 2004.’’; and
(2) by adding after section 10907 a new section
10908 to read as follows:
‘‘SEC. 10908. CONTINUATION AWARDS.
‘‘Notwithstanding any other provision of law, the Sec-
retary may use funds appropriated under this part to
make continuation awards for projects that were funded
under this part with fiscal year 1998 funds, under the
terms and conditions that applied to the original awards
for those projects.’’.
SEC. 406. EFFECTIVE DATE.
This subtitle, and the amendments made by this sub-
title, shall take effect on October 1, 1999.
Subtitle B—After School Snacks
SEC. 411. CHILD AND ADULT CARE FOOD PROGRAM; MEAL
SUPPLEMENTS FOR CHILDREN IN AFTER-
SCHOOL CARE.
(a) PARTICIPATION BY CERTAIN ADDITIONAL INSTI-
TUTIONS UNDER THE CHILD AND ADULT CARE FOOD
PROGRAM.—Section 17 of the National School Lunch Act
(42 U.S.C. 1766) is amended by adding at the end the
following:
‘‘(q) PARTICIPATION BY CERTAIN ADDITIONAL IN-
STITUTIONS UNDER THE PROGRAM.—
‘‘(1) IN GENERAL.—Subject to the conditions in
this subsection, institutions that provide care to
school children during after-school hours, weekends,
or holidays during the regular school year may par-
ticipate in the program authorized under this sec-
tion. Unless otherwise specified in this subsection,
all other provisions of this section shall apply to
these institutions.
‘‘(2) 
ELIGIBLE
CHILDREN.—Reimbursement
may be provided under this subsection only for sup-
plements served to children who are not more than
18 years of age.
‘‘(3) SUPPLEMENT REIMBURSEMENT.—
‘‘(A) 
LIMITATION.—Only 
supplements
served to eligible school children during after-
school hours, weekends, or holidays during the
regular school year may be claimed for reim-
bursement. Institutions may claim reimburse-
ment for only one supplement per child per day.
‘‘(B) RATE.—Eligible supplements shall be
reimbursed at the rate for free supplements
under subsection (c)(3).
‘‘(C) 
NO
CHARGE.—All 
supplements
claimed for reimbursement shall be served with-
out charge.’’.
(b) CHANGES TO ELIGIBILITY REQUIREMENTS FOR
MEAL SUPPLEMENTS FOR CHILDREN IN AFTERSCHOOL
CARE.—Section 17A of such Act (42 U.S.C. 1766a) is
amended—
(1) in subsection (a)(2)—
(A) in subparagraph (A), by adding ‘‘and’’
at the end;
(B) in subparagraph (B), by striking ‘‘;
and’’ and inserting a period; and
(C) by striking subparagraph (C);
(2) by striking subsection (b); and
(3) by redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.
TITLE V—MODEL STATES EARLY
LEARNING PROGRAM
SEC. 501. MODEL STATES EARLY LEARNING PROGRAM.
(a) FUNDING.—Section 418 of the Social Security
Act (42 U.S.C. 618), as amended by section 101 of this
Act, is amended—
(1) by redesignating subsections (c), (d), and
(e) as subsections (d), (e), and (f), respectively; and
(2) by inserting after subsection (b) the fol-
lowing:
‘‘(c) APPROPRIATIONS FOR MODEL STATES EARLY
LEARNING PROGRAM.—
‘‘(1) APPROPRIATION.—Out of any money in
the Treasury of the United States not otherwise ap-
propriated, there are appropriated $600,000,000 for
each of fiscal years 2000 through 2004 for carrying
out activities related to early learning programs in
accordance with section 658T of the CCDBG Act.
‘‘(2) 
RESERVATION
AND
ALLOTMENT
OF
FUNDS.—
‘‘(A) INDIAN TRIBES.—The Secretary shall
reserve 2 percent of the total amount appro-
priated pursuant to paragraph (1) of this sub-
section for each fiscal year for payments to In-
dian tribes. From the amount so reserved for a
fiscal year, the Secretary shall allot to an In-
dian tribe for the fiscal year an amount that
bears the same proportion to the amount so re-
served as the proportion of funds provided to
the Indian tribe under section 658O(c) of the
CCDBG Act for the fiscal year bears to the
total amount paid to all Indian tribes under
such section for the fiscal year.
‘‘(B) TERRITORIES.—The Secretary shall
reserve 1⁄2 of 1 percent of the total amount ap-
propriated pursuant to paragraph (1) of this
subsection for any fiscal year for payments to
the territories. From the amount so reserved
for a fiscal year, the Secretary shall allot to a
territory for the fiscal year an amount that
bears the same ratio to the amount so reserved
as the amount provided to the territory under
the CCDBG Act for fiscal year 1997 bears to
the total amount provided to all territories
under such Act for fiscal year 1997.
‘‘(C) TECHNICAL
ASSISTANCE
FOR, AND
EVALUATION
OF, 
EARLY
LEARNING
PRO-
GRAMS.—From all amounts appropriated pur-
suant to paragraph (1) of this subsection, the
Secretary 
shall 
reserve 
an 
aggregate 
of
$6,000,000, which shall be available only for
costs of providing technical assistance to, and
conducting national evaluations of, State, local,
and tribal early learning programs under sec-
tion 658T of the CCDBG Act.
‘‘(D) STATES.—The Secretary shall allot
the total amount appropriated for a fiscal year
pursuant to paragraph (1) of this subsection
that remains after applying subparagraphs (A),
(B), and (C) of this paragraph for the fiscal
year, among the Model States pursuant to the
formula used for determining the amount to be
allotted to the State under section 658O of the
CCDBG Act.
‘‘(3) MATCHING
PAYMENTS
TO
STATES
AND
TERRITORIES.—
‘‘(A) IN
GENERAL.—The Secretary shall
pay to each State and each territory that is a
Model State for a fiscal year an amount equal
to the lesser of—
‘‘(i) the amount allotted to the State
or territory under paragraph (2) of this
subsection; or
‘‘(ii) 80 percent of expenditures by the
State or territory for an early learning pro-
gram under a plan approved under section
658T of the CCDBG Act.
‘‘(B) 
REDISTRIBUTION.—Subsection
(a)(2)(D) shall apply to amounts allotted to
States under this subsection.
‘‘(4) PAYMENTS TO INDIAN TRIBES.—The Sec-
retary shall pay to each Indian tribe for a fiscal year
an amount equal to the lesser of—
‘‘(A) the amount allotted to the Indian
tribe under paragraph (2)(A) of this subsection;
or
‘‘(B) the total amount of expenditures by
the tribe for an early learning program under
section 658T of the CCDBG Act.
‘‘(5) MODEL
STATE.—In this subsection, the
term ‘Model State’ means a State that has in effect
under its plan under section 658E of the CCDBG
Act an early learning program plan meeting the re-
quirements specified in section 658T(b)(2) of such
Act.’’.
(b) ESTABLISHMENT
OF MODEL STATES EARLY
LEARNING PROGRAM.—
(1) 
STATE
PLAN
REQUIREMENT.—Section
658E(c) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858c(c)) is amended
by adding at the end the following:
‘‘(6) MODEL
STATES
EARLY
LEARNING
PRO-
GRAM PLAN REQUIREMENTS.—In the case of a State
electing to implement an early learning program
under section 658T, the State plan shall meet the
requirements specified in section 658T(b)(2).’’.
(2) MODEL
STATES
EARLY
LEARNING
PRO-
GRAM.—The Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858 et seq.) is
amended by adding at the end the following:
‘‘SEC. 658T. MODEL STATES EARLY LEARNING PROGRAM.
‘‘(a) PROGRAM PURPOSE.—The purpose of the pro-
gram under this section is to enable States, through
grants to communities, to support activities that promote
children’s healthy development during the earliest years
of life and improve the quality of child care for children
aged five and under, including those with disabilities.
‘‘(b) REQUIREMENTS FOR STATE PARTICIPATION.—
‘‘(1) IN GENERAL.—In order to be eligible for
Federal matching funds under section 418(c) of the
Social Security Act, the State shall have in effect
under its plan under section 658E an early learning
program plan meeting the requirements specified in
paragraph (2).
‘‘(2) MODEL
STATES
EARLY
LEARNING
PRO-
GRAM
PLAN
REQUIREMENTS.—The model states
early learning program plan shall meet the following
requirements:
‘‘(A) LEAD AGENCY.—The plan shall pro-
vide that the program will be administered by
the lead agency designated under 658D.
‘‘(B) CERTIFICATION.—The plan shall in-
clude a certification that—
‘‘(i) there is in effect in such State,
and that the State maintains a mechanism
to enforce, a requirement that each center-
based child care provider, and each group
home child care provider, in such State ob-
tain from such State, or from an entity of
local government designated by such State,
a preemployment criminal background
check of each individual subsequently em-
ployed by such provider to provide child
care services,
‘‘(ii) there is in effect in such State,
and that such State enforces, a require-
ment that an entity of State or local gov-
ernment periodically inspect center-based
child care providers, group home child care
providers, family child care providers, and
all other child care providers for compli-
ance with the health and safety require-
ments applicable to such providers under
State law.
‘‘(iii) there is in effect in such State,
and that such State enforces, a require-
ment that all caregivers who provide child
care services for which assistance is pro-
vided under the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C.
9858 et seq.), receive training in providing
medical first aid.
‘‘(iv) there is in effect in such State,
and that such State enforces, a require-
ment that caregivers who are, or are em-
ployed by, child care providers who provide
child care services for compensation have
specific minimum training as determined
and provided by the lead agency.
‘‘(v) there is in effect in such State,
and that such State enforces, a require-
ment that all child care providers in such
State who provide child care services for
compensation obtain from the parents (or
legal guardians) of the children who receive
such services information regarding wheth-
er such children have received age-appro-
priate immunizations in accordance with
the 
then 
current 
immunization 
rec-
ommendations issued by the Centers for
Disease Control and Prevention.
‘‘(vi) there is in effect in such State,
and that such State enforces, a require-
ment that specifies developmentally appro-
priate child-per-caregiver ratios applicable
to center-based child care providers in such
State.
‘‘(vii) such State complies with section
58E(c)(4)(A) of the Child Care and Devel-
opment Block Grant Act (42 U.S.C.
9858c(c)(4)(A)).
‘‘(C) ASSURANCES.—The plan shall include
an assurance that—
‘‘(i) such State will comply with the
requirements of this subtitle applicable
with respect to such grant.
‘‘(ii) the State will not reduce or re-
move any requirement applicable to child
care providers, that exceeds any require-
ment applicable under this title.
‘‘(D) COMMUNITY GRANT PROCEDURES.—
The plan shall describe the standards and pro-
cedures to be applied in the review and approval
of community applications, and in setting
amounts, terms, and conditions of community
grants, including the methods to be used to en-
sure that no less than 70 percent of grant
funds are awarded to low-income communities.
‘‘(E) COMMUNITY PARTICIPATION IN PLAN-
NING
AND
MONITORING.—The plan shall de-
scribe the methods to be used to ensure partici-
pation, in planning and monitoring activities
under the community plan, of representatives of
concerned elements of the community, including
parents of young children, child care providers,
child development professionals, early interven-
tion specialists, health care providers, public
school representatives, local interagency coordi-
nating councils for children with disabilities,
local government, and business leaders.
‘‘(F) PROGRAM
ACTIVITIES.—The plan
shall specify which of the allowable activities
enumerated in subsection (c) may be carried
out under community grants under the plan.
‘‘(G) PERFORMANCE
GOALS
AND
MEAS-
URES.—The plan shall specify—
‘‘(i) performance goals to be achieved
and the performance measures to be used
to assess progress toward such goals under
the plan, which—
‘‘(I) shall be developed pursuant
to guidance provided by the Secretary
and in consultation with local govern-
ment authorities in accordance with
section 658D(b)(2); and
‘‘(II) shall be designed to im-
prove child development through co-
ordination with health care services;
enhanced early learning environments;
parental involvement; consumer edu-
cation; and increased rates of accredi-
tation by nationally recognized accred-
itation organizations;
‘‘(ii) interim benchmarks and interim
and long term timetables, as appropriate,
for achieving each goal; and