(2) make available to Head Start agencies and
providers of child care services the model training
code developed under paragraph (1), and
(3) provide to such agencies and such providers
technical assistance to implement such program.
SEC. 104. DEFINITIONS.
For purposes of this title:
(1) CAREGIVER.—The term ‘‘caregiver’’ means
an individual who provides a service directly to a
child on a person-to-person basis.
(2) FAMILY
SUPPORT
SERVICES.—The term
‘‘family support services’’ means community-based
activities designed to promote parental competencies
and behaviors that will increase the ability of fami-
lies to successfully nurture their children.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(4) VERY YOUNG CHILDREN.—The term ‘‘very
young children’’ means children who are less than 3
years of age.
SEC. 105. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
this title $360,000,000 for each of the fiscal years 1998,
1999, 2000, 2001, and 2002.
TITLE II—AMENDMENT TO IN-
TERNAL REVENUE CODE OF
1986
SEC. 201. REFERENCES.
Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code
of 1986.
SEC. 202. TAXATION OF INCOME OF CONTROLLED FOREIGN
CORPORATIONS 
ATTRIBUTABLE 
TO 
IM-
PORTED PROPERTY.
(a) GENERAL RULE.—Subsection (a) of section 954
(defining foreign base company income) is amended by
striking ‘‘and’’ at the end of paragraph (4), by striking
the period at the end of paragraph (5) and inserting ‘‘,
and’’, and by adding at the end the following new para-
graph:
‘‘(6) imported property income for the taxable
year (determined under subsection (h) and reduced
as provided in subsection (b)(5)).’’
(b) DEFINITION
OF
IMPORTED
PROPERTY
IN-
COME.—Section 954 is amended by adding at the end the
following new subsection:
‘‘(h) IMPORTED PROPERTY INCOME.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a)(6), the term ‘imported property income’ means
income (whether in the form of profits, commissions,
fees, or otherwise) derived in connection with—
‘‘(A) manufacturing, producing, growing,
or extracting imported property,
‘‘(B) the sale, exchange, or other disposi-
tion of imported property, or
‘‘(C) the lease, rental, or licensing of im-
ported property.
Such term shall not include any foreign oil and gas
extraction income (within the meaning of section
907(c)) or any foreign oil related income (within the
meaning of section 907(c)).
‘‘(2) IMPORTED PROPERTY.—For purposes of
this subsection—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, the term ‘imported
property’ means property which is imported
into the United States by the controlled foreign
corporation or a related person.
‘‘(B) IMPORTED PROPERTY INCLUDES CER-
TAIN
PROPERTY
IMPORTED
BY
UNRELATED
PERSONS.—The term ‘imported property’ in-
cludes any property imported into the United
States by an unrelated person if, when such
property was sold to the unrelated person by
the controlled foreign corporation (or a related
person), it was reasonable to expect that—
‘‘(i) such property would be imported
into the United States, or
‘‘(ii) such property would be used as
a component in other property which would
be imported into the United States.
‘‘(C) EXCEPTION FOR PROPERTY SUBSE-
QUENTLY
EXPORTED.—The term ‘imported
property’ does not include any property which is
imported into the United States and which—
‘‘(i) before substantial use in the
United States, is sold, leased, or rented by
the controlled foreign corporation or a re-
lated person for direct use, consumption,
or disposition outside the United States, or
‘‘(ii) is used by the controlled foreign
corporation or a related person as a com-
ponent in other property which is so sold,
leased, or rented.
‘‘(3) DEFINITIONS AND SPECIAL RULES.—
‘‘(A) IMPORT.—For purposes of this sub-
section, the term ‘import’ means entering, or
withdrawal from warehouse, for consumption or
use. Such term includes any grant of the right
to use an intangible (as defined in section
936(b)(3)(B)) in the United States.
‘‘(B) UNRELATED PERSON.—For purposes
of this subsection, the term ‘unrelated person’
means any person who is not a related person
with respect to the controlled foreign corpora-
tion.
‘‘(C) COORDINATION WITH FOREIGN BASE
COMPANY SALES INCOME.—For purposes of this
section, the term ‘foreign base company sales
income’ shall not include any imported property
income.’’
(c) SEPARATE APPLICATION
OF LIMITATIONS
ON
FOREIGN TAX CREDIT FOR IMPORTED PROPERTY IN-
COME.—
(1) IN
GENERAL.—Paragraph (1) of section
904(d) (relating to separate application of section
with respect to certain categories of income) is
amended by striking ‘‘and’’ at the end of subpara-
graph (H), by redesignating subparagraph (I) as
subparagraph (J), and by inserting after subpara-
graph (H) the following new subparagraph:
‘‘(I) imported property income, and’’.
(2) IMPORTED PROPERTY INCOME DEFINED.—
Paragraph (2) of section 904(d) is amended by re-
designating subparagraphs (H) and (I) as subpara-
graphs (I) and (J), respectively, and by inserting
after subparagraph (G) the following new subpara-
graph:
‘‘(H) IMPORTED PROPERTY INCOME.—The
term ‘imported property income’ means any in-
come received or accrued by any person which
is of a kind which would be imported property
income (as defined in section 954(h)).’’
(3) LOOK-THROUGH
RULES
TO
APPLY.—Sub-
paragraph (F) of section 904(d)(3) is amended by
striking ‘‘or (E)’’ and inserting ‘‘(E), or (H)’’.
(d) TECHNICAL AMENDMENTS.—
(1) Clause (iii) of section 952(c)(1)(B) (relating
to certain prior year deficits may be taken into ac-
count) is amended by inserting the following sub-
clause after subclause (II) (and by redesignating the
following subclauses accordingly):
‘‘(III) imported property income,’’.
(2) Paragraph (5) of section 954(b) (relating to
deductions to be taken into account) is amended by
striking ‘‘and the foreign base company oil related
income’’ and inserting ‘‘the foreign base company oil
related income, and the imported property income’’.
(e) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 1996, and to taxable
years of United States shareholders within which or
with which such taxable years of such foreign cor-
porations end.
(2) SUBSECTION (c).—The amendments made
by subsection (c) shall apply to taxable years begin-
ning after December 31, 1996.
TITLE III—AMENDMENT TO FAM-
ILY AND MEDICAL LEAVE ACT
OF 1993
SEC. 301. COVERAGE OF EMPLOYEES.
Paragraphs (2)(B)(ii) and (4)(A)(i) of section 101 of
the Family and Medical Leave Act of 1993(29 U.S.C.
2611 (2)(B)(ii) and (4)(A)(i)) are each amended by strik-
ing ‘‘50’’ each place it appears and inserting ‘‘20’’.
SEC. 302. EFFECTIVE DATE.
This title shall take effect 120 days after the date
of the enactment of this Act.
TITLE IV—AMENDMENTS TO THE
HEAD START ACT
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
Section 639(a) of the Head Start Act (42 U.S.C.
9834(a)) is amended by inserting before the period at the
end the following: ‘‘, $4,900,000,000 for fiscal year 1999,
$5,500,000,000 for fiscal year 2000, $6,100,000,000 for
fiscal year 2001, and $6,700,000,000 for fiscal year
2002’’.
SEC. 402. ALLOTMENT OF FUNDS.
(a) TRAINING AND TECHNICAL ASSISTANCE.—Sec-
tion 640(a)(2)(C) of the Head Start Act (42 U.S.C.
9835(a)(2)(C)) is amended by striking ‘‘2 percent’’ and
inserting ‘‘3 percent’’.
(b) PROGRAMS FOR FAMILIES WITH INFANTS AND
TODDLERS.—Section 640(a)(6) of the Head Start Act (42
U.S.C. 9835(a)(6)) is amended—
(1) by striking ‘‘1997, and’’ and inserting
‘‘1997,’’, and
(2) by inserting after ‘‘1998,’’ the following: ‘‘,
6 percent for fiscal year 1999, 7 percent for fiscal
year 2000, 8 percent for fiscal year 2001, and 9 per-
cent for fiscal year 2002’’.
SEC. 403. EFFECTIVE DATE.
This title and the amendments made by this title
shall take effect on October 1, 1997.
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