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‘‘(i) the amount of the penalty deter-
mined under this subsection shall equal the
sum of—
‘‘(I) $50,000, plus
‘‘(II) $1,000 for each day during
which such failure continues (twice
such amount for each day such failure
continues after the first such 60 days),
and
‘‘(ii) the maximum amount under
clause (i)(II) on failures with respect to any
1 return shall not exceed $200,000.
‘‘(B) TAXPAYERS
WITH
GROSS
RECEIPTS
OVER
$250,000,000.—In the case of a taxpayer
having gross receipts exceeding $250,000,000 for
any year—
‘‘(i) the amount of the penalty deter-
mined under this subsection shall equal the
sum of—
‘‘(I) $250,000, plus
‘‘(II) $2,500 for each day during
which such failure continues (twice
such amount for each day such failure
continues after the first such 60 days),
and
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‘‘(ii) the maximum amount under
clause (i)(II) on failures with respect to any
1 return shall not exceed $250,000.
‘‘(C) EXCEPTION FOR CERTAIN RETURNS.—
Subparagraphs (A) and (B) shall not apply to
any return of tax imposed under section 511.’’.
(b) CLERICAL AMENDMENT.—The table of sections for
part I of subchapter A of chapter 68 is amended by insert-
ing after the item relating to section 6652 the following new
item:
‘‘Sec. 6652A. Failure to file certain returns electronically.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to returns required to be filed on or after
January 1, 2008.
PART III—GENERAL PROVISIONS
SEC. 561. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL
BUSINESSES.
(a) IN GENERAL.—Section 212 of the Small Business
Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601
note) is amended by striking subsection (a) and inserting
the following:
‘‘(a) COMPLIANCE GUIDE.—
‘‘(1) IN GENERAL.—For each rule or group of re-
lated rules for which an agency is required to prepare
a final regulatory flexibility analysis under section
605(b) of title 5, United States Code, the agency shall
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publish 1 or more guides to assist small entities in
complying with the rule and shall entitle such publi-
cations ‘small entity compliance guides’.
‘‘(2) PUBLICATION OF GUIDES.—The publication
of each guide under this subsection shall include—
‘‘(A) the posting of the guide in an easily
identified location on the website of the agency;
and
‘‘(B) distribution of the guide to known in-
dustry contacts, such as small entities, associa-
tions, or industry leaders affected by the rule.
‘‘(3) PUBLICATION DATE.—An agency shall pub-
lish each guide (including the posting and distribu-
tion of the guide as described under paragraph (2))—
‘‘(A) on the same date as the date of publi-
cation of the final rule (or as soon as possible
after that date); and
‘‘(B) not later than the date on which the
requirements of that rule become effective.
‘‘(4) COMPLIANCE ACTIONS.—
‘‘(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)—
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‘‘(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.
‘‘(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-
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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’’.
SEC. 562. 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
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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)
to establish and operate child care programs. Such as-
sistance may include—
(A) technical assistance in the establishment
of a child care program;
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(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
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.—
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(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
will make available (directly or through donations from
public or private entities) non-Federal contributions to such
costs in an amount equal to—
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(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.
(g) STATE-LEVEL ACTIVITIES.—A State may not re-
tain more than 3 percent of the amount described in sub-
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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.
(B) APPEALS
PROCESS.—The Secretary
shall by regulation provide for an appeals proc-
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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
the study conducted in accordance with subpara-
graph (A).
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(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).
(2) INDIAN
COMMUNITY.—The term ‘‘Indian
community’’ means a community served by an In-
dian tribe or tribal organization.
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(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),
(d)(1) (the second place the term appears), (d)(3)(A)
(the second place the term appears), and (i)(1)(A)(i).