SEC. 602. NATIONAL CHILD CARE PROVIDER SCHOLARSHIP
PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Section 658G
of the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858e) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘A State’’; and
(2) by adding at the end the following:
‘‘(b) CHILD CARE PROVIDER SCHOLARSHIP PRO-
GRAM.—
‘‘(1) STATE PLAN REQUIREMENT.—In order to
be eligible for funds under section 658J(a)(2), a
State shall include in its plan under section 658E a
child care provider scholarship program plan, meet-
ing the requirements of this subsection, designed to
further the goals of child care provider recruitment,
training, credentialing, and retention.
‘‘(2) ELIGIBILITY CRITERIA FOR SCHOLARSHIP
APPLICANTS.—The State plan shall provide that, in
order for an individual to be eligible for a scholar-
ship grant under this subsection, the following re-
quirements shall be met:
‘‘(A) DEMONSTRATED
COMMITMENT
TO
CHILD CARE CAREER.—The individual—
‘‘(i) shall be a child care worker who
is (or is employed by) a licensed or reg-
istered child care provider, or has a com-
mitment for employment from a licensed or
registered child care provider; and
‘‘(ii) shall agree in writing to continue
to be employed in the field of child care for
at least one year after receiving the train-
ing for which assistance is provided.
‘‘(B) COST SHARING BY APPLICANT.—
‘‘(i) IN GENERAL.—The individual (ei-
ther as provided in clause (ii) or otherwise)
shall provide for payment, in cash or in
kind, of a share of the cost of the edu-
cation or training.
‘‘(ii) 
APPLICATION
FOR
PELL
GRANTS.—In the case of an application for
a scholarship intended for use in an edu-
cational institution participating in the
Pell Grant program under title IV of the
Higher Education Act, the individual shall
apply for a grant under such program for
which the individual is eligible.
‘‘(C) EMPLOYER REQUIREMENTS.—In the
case of an individual employed by (or who has
a commitment for employment from) a licensed
or registered child care provider the individual’s
employer shall—
‘‘(i) pay a share of the cost of the
education or training; and
‘‘(ii) agree to provide increased finan-
cial incentives to the individual, such as a
salary increase or bonus, when the indi-
vidual completes the education or training.
‘‘(3) 
QUALIFYING
EDUCATIONAL
INSTITU-
TIONS.—The State plan shall specify the types of
educational and training programs for which schol-
arships granted under the State program may be
used, which shall be limited to (but may include any
or all) programs that—
‘‘(A) are administered by institutions of
higher education that are eligible to participate
in student financial assistance programs under
title IV of the Higher Education Act of 1965;
and
‘‘(B) lead to a State or national credential
in child care or early childhood or early child-
hood special education, or to an associate or
bachelor’s degree in child development or early
childhood education.
‘‘(4) ANNUAL MAXIMUM SCHOLARSHIP GRANT
AMOUNT.—The maximum amount of a scholarship
awarded to an eligible individual under this section
may not exceed $1,500 per year.
‘‘(5) SUPPLEMENTATION
OF
OTHER
FUND-
ING.—The State plan shall contain assurances that
Federal funds provided to the State under this sub-
section will not be used to supplant Federal or non-
Federal funds for existing services and activities
that promote the purposes of this subsection.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
658B of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858) is amended
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘There’’; and
(2) by adding at the end the following:
‘‘(b) CHILD CARE PROVIDER SCHOLARSHIP PRO-
GRAM.—There is authorized to be appropriated to carry
out section 658G(b) $50,000,000 for each of fiscal years
2000 through 2004.’’.
(c) ALLOTMENT.—Section 658O of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858m) is amended—
(1) in subsection (a)—
(A) in paragraph (1) by striking ‘‘this sub-
chapter’’ and inserting ‘‘each subsection of sec-
tion 658B’’; and
(B) in paragraph (2) by striking ‘‘section
658B’’ and inserting ‘‘section 658B(a)’’;
(2) in subsection (b)(1) in the matter preceding
subparagraph (A), by inserting ‘‘each subsection of’’
before ‘‘section 658B’’; and
(3) in subsection (e)(1) by striking ‘‘the allot-
ment under subsection (b)’’ and inserting ‘‘an allot-
ment under subsection (b)’’.
(d) PAYMENTS.—Section 658J(a) of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858h) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘Subject’’; and
(2) by adding at the end the following:
‘‘(2) A State described in paragraph (1) whose plan
under section 658E provides for a child care scholarship
program under section 658G(b) shall be entitled to pay-
ment under this section in an amount equal to the lesser
of its allotment under section 658O or 80 percent of ex-
penditures by the State for such program.’’.
(e) ANNUAL REPORT.—Section 658K(a)(2) of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858i) is amended—
(1) in subparagraph (D) by striking ‘‘and’’ at
the end;
(2) in subparagraph (E) by adding ‘‘and’’ at
the end; and
(3) by inserting after subparagraph (E) the fol-
lowing:
‘‘(F) the child care scholarship program,
including—
‘‘(i) the number of child care workers
receiving scholarship grants;
‘‘(ii) the amount of each scholarship
grant;
‘‘(iii) the number of course credits or
credentials completed by individuals receiv-
ing scholarships;
‘‘(iv) the number and percentage of
child care workers receiving scholarship
grants in the previous year who fulfilled
their 1-year commitment; and
‘‘(v) such other data as the Secretary
may require.’’.
SEC. 603. APPLICATION OF AMENDMENTS.
The amendments made by this title shall not apply
with respect to fiscal years beginning before the date of
the enactment of this Act.
TITLE VII—RESEARCH AND
DEMONSTRATION PROGRAM
SEC. 701. RESEARCH AND DEMONSTRATIONS.
(a) ESTABLISHMENT
OF
RESEARCH
AND
DEM-
ONSTRATION ACTIVITIES.—The Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C. 9858 et seq.)
is amended by adding at the end the following:
‘‘SEC. 658U. RESEARCH AND DEMONSTRATIONS.
‘‘(a) IN GENERAL.—The Secretary is authorized, ei-
ther directly or through grants, contracts, cooperative
agreements, or other arrangements, to carry out research,
demonstration projects, and other activities relating to
child care, including activities designed to improve the
quality and increase the availability of child care. Such
activities shall be coordinated with activities under the De-
partment of Education’s Office of Educational Research
and Improvement.
‘‘(b) ALLOWABLE ACTIVITIES.—Activities under this
section may include the following:
‘‘(1) RESEARCH
ON
CHILD
CARE
NEEDS
OF
LOW-INCOME FAMILIES.—Research designed to iden-
tify and overcome barriers restricting availability, af-
fordability, and quality of child care for low-income
families.
‘‘(2) RESEARCH ON GOOD POLICIES AND PRAC-
TICES.—Research designed to identify good child
care policies and practices, including the types of
child care settings, parent activities, and provider
training that most benefit the early development of
children.
‘‘(3) RESEARCH ON RETENTION OF CHILD CARE
PROVIDER STAFF.—Research on factors affecting re-
tention of child care provider staff, including the
National Child Care Provider Scholarship Program
under section 658G(b) and its subsequent effect on
outcomes for children.
‘‘(4) 
DEMONSTRATIONS
OF
TECHNOLOGY-
BASED EDUCATION AND TRAINING.—Demonstration
projects testing use of remote site and interactive
computer technology to provide education and train-
ing to child care providers and parents.
‘‘(5) DEMONSTRATION
PROJECTS
FOR
NEW
METHODS.—Demonstration projects addressing ways
to assist parents, such as parents who choose to stay
at home with their children and parents with par-
ticular child care needs, including parents of chil-
dren with special health care needs or disabilities,
homeless families, migrant families, teen parents
and foster parents.
‘‘(6) NATIONAL CENTER ON CHILD CARE STA-
TISTICS.—Establishment and operation of a Na-
tional Center on Child Care Statistics for the collec-
tion and dissemination of data and information on
child care.
‘‘(7) HOTLINE AND CONSUMER EDUCATION.—
Establishment and operation of a hotline to assist
parents to locate their local child care resource and
referral agency and public education activities to as-
sist parents in becoming informed consumers of
quality child care.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section
$30,000,000 for each of fiscal years 2000 through 2004.’’.
(b) REPORT TO CONGRESS.—Section 658L of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858j) is amended by inserting ‘‘and progress on
development of research and demonstration projects as
carried out under section 658U’’ after ‘‘under section
658K’’.
TITLE VIII—MISCELLANEOUS
Subtitle A—Child and Adult Food
Program
SEC. 801. REVISION OF REIMBURSEMENT RATES FOR FAM-
ILY OR GROUP DAY CARE HOMES UNDER THE
CHILD AND ADULT CARE FOOD PROGRAM
UNDER THE NATIONAL SCHOOL LUNCH ACT.
Section 17(f)(3) of the National School Lunch Act
(42 U.S.C. 1766(f)(3)) is amended—
(1) in subparagraph (A)(iii)(I)—
(A) in division (aa), by striking ‘‘95 cents
for lunches and suppers, 27 cents for break-
fasts, and 13 cents for supplements’’ and in-
serting ‘‘$1.03 for lunches and suppers, 38
cents for breakfasts, and 18 cents for supple-
ments’’; and
(B) in division (bb), by striking ‘‘1997’’
and inserting ‘‘1998’’; and
(2) in the second sentence of subparagraph (B),
by inserting after ‘‘Such levels’’ the following: ‘‘shall
be those levels in effect on June 30, 1998, increased
by $2.00 per home and’’.
Subtitle B—Mortgage Insurance for
Child Care and Development
Facilities
SEC. 851. SHORT TITLE.
This title may be cited as the ‘‘Children’s Develop-
ment Commission Act’’.
SEC. 852. CONGRESSIONAL FINDINGS.
The Congress finds the following:
(1) The need for quality nursery schools, both
full-time and part-time child care centers and after-
school programs, neighborhood-run mothers-day-out
programs, and family child care providers has grown
among working parents, and parents who stay at
home, who want their children to have access to
early childhood education.
(2) All parents should have access to safe, stim-
ulating, and educational early childhood education
programs for their children, whether such programs
are carried out in a child care center, a part-time
nursery school (including a nursery school operated
by a religious organization), or a certified child care
provider’s home.
(3) The number of available enrollment oppor-
tunities for children to receive quality child care
services is not meeting the demand for such services.
(4) In 1995 there were about 21,000,000 chil-
dren less than 6 years of age, of whom 31 percent
were participating in center-based child care services
and 14 percent were receiving child care in homes.
Between 1992 and 2005 the participation of women
24 to 54 years of age in the labor force is projected
to increase from 75 percent to 83 percent.
(5) In States that have set up a mechanism to
provide capital improvements for child care facilities,
the demand for services of such facilities still has
not been met.
(6) The United States is behind other western,
industrialized countries when it comes to providing
child care services. In France, almost 100 percent of
all children 3 to 5 years of age attend nursery
school. In Germany this number is 65 to 70 percent.
In Japan 90 percent of such children attend some
form of preschool care. In all of these countries early
childhood care has proven to increase children’s de-
velopment and performance.
SEC. 853. INSURANCE FOR MORTGAGES ON NEW AND RE-
HABILITATED CHILD CARE AND DEVELOP-
MENT FACILITIES.
Title II of the National Housing Act (12 U.S.C. 1707
et seq.) is amended by adding at the end the following
new section:
‘‘MORTGAGE INSURANCE FOR CHILD CARE AND
DEVELOPMENT FACILITIES
‘‘SEC. 257. (a) PURPOSE.—The purpose of this sec-
tion is to facilitate and assist in the provision and develop-
ment of licensed child care and development facilities.
‘‘(b) GENERAL INSURANCE AUTHORITY.—The Sec-
retary may insure mortgages (including advances on such
mortgages during construction) in accordance with the
provisions of this section and upon such terms and condi-
tions as the Secretary may prescribe and may make com-
mitments for insurance of such mortgages before the date
of their execution or disbursement thereon.
‘‘(c) ELIGIBLE MORTGAGES.—To carry out the pur-
pose of this section, the Secretary may insure any mort-
gage that covers a new child care and development facility,
including a new addition to an existing child care and de-
velopment facility (regardless of whether the existing facil-
ity is being rehabilitated), or a substantially rehabilitated
child care and development facility, including equipment
to be used in the operation of the facility, subject to the
following conditions:
‘‘(1) APPROVED
MORTGAGOR.—The mortgage
shall be executed by a mortgagor approved by the
Secretary. The Secretary may, in the discretion of
the Secretary, require any such mortgagor to be reg-
ulated or restricted as to charges and methods of fi-
nancing and, if the mortgagor is a corporate entity,
as to capital structure and rate of return. As an aid
to the regulation or restriction of any mortgagor
with respect to any of the foregoing matters, the
Secretary may make such contracts with and acquire
for not more than $100 such stock or interest in
such mortgagor as the Secretary may consider nec-
essary. Any stock or interest so purchased shall be
paid for out of the General Insurance Fund, and
shall be redeemed by the mortgagor at par upon the
termination of all obligations of the Secretary under
the insurance.
‘‘(2) PRINCIPAL OBLIGATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the mortgage shall involve a
principal obligation in an amount not to exceed
80 percent of the estimated value of the prop-
erty or project, or 85 percent of the estimated
value of the property or project in the case only
of a mortgagor that is a private nonprofit cor-
poration or association (as such term is defined
pursuant to section 221(d)(3)), including—
‘‘(i) equipment to be used in the oper-
ation of the facility when the proposed im-
provements are completed and the equip-
ment is installed; or
‘‘(ii) a solar energy system (as defined
in subparagraph (3) of the last paragraph
of section 2(a)) or residential energy con-
servation measures (as defined in subpara-
graphs (A) through (G) and (I) of section
210(11) of the National Energy Conserva-
tion Policy Act), in cases in which the Sec-
retary determines that such measures are
in addition to those required under the
minimum property standards and will be
cost-effective over the life of the measure.
‘‘(B) INCREASE FOR CERTAIN DISTRESSED
AREAS.—In the case of any mortgage for a
child care and development facility that is lo-
cated in a distressed area and for which more
than 50 percent of the children served by the
facility are children of families or individuals
who are eligible for assistance under a State
program for temporary assistance for needy
families that is funded under part A of title IV
of the Social Security Act, the mortgage shall
involve principal obligation in an amount not to
exceed the sum of the amount determined
under subparagraph (A) for the mortgagor and
5 percent of the estimated value of the property
or project.
‘‘(3) 
AMORTIZATION
AND
INTEREST.—The
mortgage shall—
‘‘(A) provide for complete amortization by
periodic payments under such terms as the Sec-
retary shall prescribe;
‘‘(B) have a maturity satisfactory to the
Secretary, but in no event longer than 25 years;
and
‘‘(C) bear interest at such rate as may be
agreed upon by the mortgagor and the mort-
gagee, and the Secretary shall not issue any
regulations or establish any terms or conditions
that interfere with the ability of the mortgagor
and mortgagee to determine the interest rate.
‘‘(d) CERTIFICATION BY CHILDREN’S DEVELOPMENT
COMMISSION.—The Secretary may not insure a mortgage
under this section unless the Children’s Development
Commission established under section 258 certifies that
the facility is in compliance, or will be in compliance not
later than 12 months after such certification, with—
‘‘(1) any laws, standards, and requirements ap-
plicable 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 lo-
cated; and
‘‘(2) after the effective date of the standards
and 
requirements 
established 
under 
section
258(c)(2), such standards and requirements.
‘‘(e) LOW-INCOME CLIENTELE.—The Secretary may
not insure a mortgage under this section unless the mort-
gage certifies, to the satisfaction of the Secretary, that not
less than 20 percent of the children served by the facility
during the period that the mortgage is outstanding shall
be children of families having incomes less than the me-
dian income for the metropolitan statistical area in which
the facility is located.
‘‘(f) RELEASE.—The Secretary may consent to the
release of a part or parts of the mortgaged property or
project from the lien of any mortgage insured under this
section upon such terms and conditions as the Secretary
may prescribe.
‘‘(g) MORTGAGE INSURANCE TERMS.—The provi-
sions of subsections (d), (e), (g), (h), (i), (j), (k), (l), and
(n) of section 207 shall apply to mortgages insured under
this section, except that all references in such subsections
to section 207 shall be considered, for purposes of mort-
gage insurance under this section, to refer to this section.
‘‘(h) MORTGAGE INSURANCE
FOR FIRE SAFETY
EQUIPMENT LOANS.—
‘‘(1) AUTHORITY.—The Secretary may, upon
such terms and condition as the Secretary may pre-
scribe, make commitments to insure and insure
loans made by financial institutions or other ap-
proved mortgagees to child care and development fa-
cilities to provide for the purchase and installation
of fire safety equipment necessary for compliance
with the 1967 edition of the Life Safety Code of the
National Fire Protection Association (or any subse-
quent edition specified by the Secretary of Health
and Human Services).
‘‘(2) LOAN REQUIREMENTS.—To be eligible for
insurance under this subsection a loan shall—
‘‘(A) not exceed the Secretary’s estimate of
the reasonable cost of the equipment fully in-
stalled;
‘‘(B) bear interest at such rate as may be
agreed upon by the mortgagor and the mort-
gagee;
‘‘(C) have a maturity satisfactory to the
Secretary;
‘‘(D) be made by a financial institution or
other mortgagee approved by the Secretary as
eligible for insurance under section 2 or a mort-
gagee approved under section 203(b)(1);
‘‘(E) comply with other such terms, condi-
tions, and restrictions as the Secretary may
prescribe; and
‘‘(F) be made with respect to a child care
and development facility that complies with the
requirement under subsection (d).
‘‘(3) INSURANCE REQUIREMENTS.—The provi-
sions of paragraphs (5), (6), (7), (9), and (10) of
section 220(h) shall apply to loans insured under
this subsection, except that all references in such
paragraphs to home improvement loans shall be con-
sidered, for purposes of this subsection, to refer to
loans under this subsection. The provisions of sub-
sections (c), (d), and (h) of section 2 shall apply to
loans insured under this subsection, except that all
references in such subsections to ‘this section’ or
‘this title’ shall be considered, for purposes of this
subsection, to refer to this subsection.
‘‘(i) SCHEDULES AND DEADLINES.—The Secretary
shall establish schedules and deadlines for the processing
and approval (or provision of notice of disapproval) of ap-
plications for mortgage insurance under this section.
‘‘(j) DEFINITIONS.—For the purposes of this section,
the following definitions shall apply:
‘‘(1) CHILD CARE AND DEVELOPMENT FACIL-
ITY.—The term ‘child care and development facility’
means a public facility, proprietary facility, or facil-
ity of a private nonprofit corporation or association
that—
‘‘(A) has as its purpose the care and devel-
opment of children less than 12 years of age;
and
‘‘(B) is licensed or regulated by the State
in which it is located (or, if there is no State
law providing for such licensing and regulation
by the State, by the municipality or other polit-
ical subdivision in which the facility is located).
The term does not include facilities for school-age
children primarily for use during normal school
hours. The term includes facilities for training indi-