212
‘‘(A) IN GENERAL.—Each guide shall ex-
plain the actions a small entity is required to 
take to comply with a rule. 
‘‘(B) 
EXPLANATION.—The 
explanation 
under subparagraph (A)—
‘‘(i) shall include a description of ac-
tions needed to meet the requirements of a 
rule, to enable a small entity to know when 
such requirements are met; and 
‘‘(ii) if determined appropriate by the 
agency, may include a description of pos-
sible procedures, such as conducting tests, 
that may assist a small entity in meeting 
such requirements, except that, compliance 
with any procedures described pursuant to 
this section does not establish compliance 
with the rule, or establish a presumption or 
inference of such compliance. 
‘‘(C) PROCEDURES.—Procedures described 
under subparagraph (B)(ii)—
‘‘(i) shall be suggestions to assist small 
entities; and 
‘‘(ii) shall not be additional require-
ments, or diminish requirements, relating to 
the rule.
213
‘‘(5) AGENCY
PREPARATION
OF
GUIDES.—The 
agency shall, in its sole discretion, taking into ac-
count the subject matter of the rule and the language 
of relevant statutes, ensure that the guide is written 
using sufficiently plain language likely to be under-
stood by affected small entities. Agencies may prepare 
separate guides covering groups or classes of similarly 
affected small entities and may cooperate with asso-
ciations of small entities to develop and distribute 
such guides. An agency may prepare guides and 
apply this section with respect to a rule or a group 
of related rules. 
‘‘(6) REPORTING.—Not later than 1 year after 
the date of enactment of the Fair Minimum Wage Act 
of 2007, and annually thereafter, the head of each 
agency shall submit a report to the Committee on 
Small Business and Entrepreneurship of the Senate, 
the Committee on Small Business of the House of 
Representatives, and any other committee of relevant 
jurisdiction describing the status of the agency’s com-
pliance with paragraphs (1) through (5).’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 211(3) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (5 U.S.C. 601 note) is amended by 
inserting ‘‘and entitled’’ after ‘‘designated’’.
214
SEC. 8303. SMALL BUSINESS CHILD CARE GRANT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Health and 
Human Services (referred to in this section as the ‘‘Sec-
retary’’) shall establish a program to award grants to 
States, on a competitive basis, to assist States in providing 
funds to encourage the establishment and operation of em-
ployer-operated child care programs. 
(b) APPLICATION.—To be eligible to receive a grant 
under this section, a State shall prepare and submit to the 
Secretary an application at such time, in such manner, and 
containing such information as the Secretary may require, 
including an assurance that the funds required under sub-
section (e) will be provided. 
(c) AMOUNT AND PERIOD OF GRANT.—The Secretary 
shall determine the amount of a grant to a State under 
this section based on the population of the State as com-
pared to the population of all States receiving grants under 
this section. The Secretary shall make the grant for a period 
of 3 years. 
(d) USE OF FUNDS.—
(1) IN GENERAL.—A State shall use amounts 
provided under a grant awarded under this section to 
provide assistance to small businesses (or consortia 
formed in accordance with paragraph (3)) located in 
the State to enable the small businesses (or consortia)
215
to establish and operate child care programs. Such as-
sistance may include—
(A) technical assistance in the establishment 
of a child care program; 
(B) assistance for the startup costs related 
to a child care program; 
(C) assistance for the training of child care 
providers; 
(D) scholarships for low-income wage earn-
ers; 
(E) the provision of services to care for sick 
children or to provide care to school-aged chil-
dren; 
(F) the entering into of contracts with local 
resource and referral organizations or local 
health departments; 
(G) assistance for care for children with 
disabilities; 
(H) payment of expenses for renovation or 
operation of a child care facility; or 
(I) assistance for any other activity deter-
mined appropriate by the State. 
(2) APPLICATION.—In order for a small business 
or consortium to be eligible to receive assistance from 
a State under this section, the small business involved
216
shall prepare and submit to the State an application 
at such time, in such manner, and containing such 
information as the State may require. 
(3) PREFERENCE.—
(A) IN GENERAL.—In providing assistance 
under this section, a State shall give priority to 
an applicant that desires to form a consortium 
to provide child care in a geographic area within 
the State where such care is not generally avail-
able or accessible. 
(B) CONSORTIUM.—For purposes of sub-
paragraph (A), a consortium shall be made up 
of 2 or more entities that shall include small 
businesses and that may include large businesses, 
nonprofit agencies or organizations, local govern-
ments, or other appropriate entities. 
(4) LIMITATIONS.—With respect to grant funds 
received under this section, a State may not provide 
in excess of $500,000 in assistance from such funds 
to any single applicant. 
(e) MATCHING REQUIREMENT.—To be eligible to re-
ceive a grant under this section, a State shall provide assur-
ances to the Secretary that, with respect to the costs to be 
incurred by a covered entity receiving assistance in car-
rying out activities under this section, the covered entity
217
will make available (directly or through donations from 
public or private entities) non-Federal contributions to such 
costs in an amount equal to—
(1) for the first fiscal year in which the covered 
entity receives such assistance, not less than 50 per-
cent of such costs ($1 for each $1 of assistance pro-
vided to the covered entity under the grant); 
(2) for the second fiscal year in which the cov-
ered entity receives such assistance, not less than 662⁄3 
percent of such costs ($2 for each $1 of assistance pro-
vided to the covered entity under the grant); and 
(3) for the third fiscal year in which the covered 
entity receives such assistance, not less than 75 per-
cent of such costs ($3 for each $1 of assistance pro-
vided to the covered entity under the grant). 
(f) REQUIREMENTS OF PROVIDERS.—To be eligible to 
receive assistance under a grant awarded under this section, 
a child care provider—
(1) who receives assistance from a State shall 
comply with all applicable State and local licensing 
and regulatory requirements and all applicable health 
and safety standards in effect in the State; and 
(2) who receives assistance from an Indian tribe 
or tribal organization shall comply with all applica-
ble regulatory standards.
218
(g) STATE-LEVEL ACTIVITIES.—A State may not re-
tain more than 3 percent of the amount described in sub-
section (c) for State administration and other State-level 
activities. 
(h) ADMINISTRATION.—
(1) STATE RESPONSIBILITY.—A State shall have 
responsibility for administering a grant awarded for 
the State under this section and for monitoring cov-
ered entities that receive assistance under such grant. 
(2) AUDITS.—A State shall require each covered 
entity receiving assistance under the grant awarded 
under this section to conduct an annual audit with 
respect to the activities of the covered entity. Such au-
dits shall be submitted to the State. 
(3) MISUSE OF FUNDS.—
(A) REPAYMENT.—If the State determines, 
through an audit or otherwise, that a covered en-
tity receiving assistance under a grant awarded 
under this section has misused the assistance, the 
State shall notify the Secretary of the misuse. 
The Secretary, upon such a notification, may 
seek from such a covered entity the repayment of 
an amount equal to the amount of any such mis-
used assistance plus interest.
219
(B) APPEALS
PROCESS.—The Secretary 
shall by regulation provide for an appeals proc-
ess with respect to repayments under this para-
graph. 
(i) REPORTING REQUIREMENTS.—
(1) 2-YEAR STUDY.—
(A) IN GENERAL.—Not later than 2 years 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
shall conduct a study to determine—
(i) the capacity of covered entities to 
meet the child care needs of communities 
within States; 
(ii) the kinds of consortia that are 
being formed with respect to child care at 
the local level to carry out programs funded 
under this section; and 
(iii) who is using the programs funded 
under this section and the income levels of 
such individuals. 
(B) REPORT.—Not later than 28 months 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
shall prepare and submit to the appropriate 
committees of Congress a report on the results of
220
the study conducted in accordance with subpara-
graph (A). 
(2) 4-YEAR STUDY.—
(A) IN GENERAL.—Not later than 4 years 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
shall conduct a study to determine the number of 
child care facilities that are funded through cov-
ered entities that received assistance through a 
grant awarded under this section and that re-
main in operation, and the extent to which such 
facilities are meeting the child care needs of the 
individuals served by such facilities. 
(B) REPORT.—Not later than 52 months 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
shall prepare and submit to the appropriate 
committees of Congress a report on the results of 
the study conducted in accordance with subpara-
graph (A). 
(j) DEFINITIONS.—In this section: 
(1) COVERED ENTITY.—The term ‘‘covered enti-
ty’’ means a small business or a consortium formed 
in accordance with subsection (d)(3).
221
(2) INDIAN
COMMUNITY.—The term ‘‘Indian 
community’’ means a community served by an In-
dian tribe or tribal organization. 
(3) INDIAN TRIBE; TRIBAL ORGANIZATION.—The 
terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ have 
the meanings given the terms in section 658P of the 
Child Care and Development Block Grant Act of 1990 
(42 U.S.C. 9858n). 
(4) SMALL BUSINESS.—The term ‘‘small busi-
ness’’ means an employer who employed an average 
of at least 2 but not more than 50 employees on the 
business days during the preceding calendar year. 
(5) STATE.—The term ‘‘State’’ has the meaning 
given the term in section 658P of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 
9858n). 
(k) APPLICATION TO INDIAN TRIBES AND TRIBAL OR-
GANIZATIONS.—In this section: 
(1) IN GENERAL.—Except as provided in sub-
section (f)(1), and in paragraphs (2) and (3), the 
term ‘‘State’’ includes an Indian tribe or tribal orga-
nization. 
(2) 
GEOGRAPHIC
REFERENCES.—The 
term 
‘‘State’’ includes an Indian community in subsections 
(c) (the second and third place the term appears),
222
(d)(1) (the second place the term appears), (d)(3)(A) 
(the second place the term appears), and (i)(1)(A)(i). 
(3) STATE-LEVEL ACTIVITIES.—The term ‘‘State-
level activities’’ includes activities at the tribal level. 
(l) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out this section, $50,000,000 for 
the period of fiscal years 2008 through 2012. 
(2) STUDIES
AND
ADMINISTRATION.—With re-
spect to the total amount appropriated for such pe-
riod in accordance with this subsection, not more 
than $2,500,000 of that amount may be used for ex-
penditures related to conducting studies required 
under, and the administration of, this section. 
(m) TERMINATION OF PROGRAM.—The program estab-
lished under subsection (a) shall terminate on September 
30, 2012. 
SEC. 8304. STUDY OF UNIVERSAL USE OF ADVANCE PAY-
MENT OF EARNED INCOME CREDIT. 
Not later than 180 days after the date of the enactment 
of this Act, the Secretary of the Treasury shall report to 
Congress on a study of the benefits, costs, risks, and barriers 
to workers and to businesses (with a special emphasis on 
small businesses) if the advance earned income tax credit 
program (under section 3507 of the Internal Revenue Code