Subtitle B—Increased Enforcement
of 
State 
Health 
and 
Safety
Standards
SEC. 211. ENFORCEMENT OF STATE HEALTH AND SAFETY
STANDARDS.
(a) IDENTIFICATION OF STATE INSPECTION RATE.—
(1) IN
GENERAL.—Section 658E(c)(2)(G) of
the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858c(2)(G)) is amended by strik-
ing the period and inserting ‘‘, and provide the per-
centage of completed child care provider inspections
that were required under State law for each of the
2 preceding fiscal years.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) applies to State plans under the
Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858 et seq.) on and after Septem-
ber 1, 1998.
(b) INCREASED OR DECREASED ALLOTMENTS.—Sec-
tion 658O(b) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858m(b)) is amended—
(1) in paragraph (1), in the matter preceding
subparagraph (A), by inserting ‘‘, subject to para-
graph (5),’’ after ‘‘shall’’; and
(2) by adding at the end the following:
‘‘(5) INCREASED OR DECREASED ALLOTMENT
BASED ON STATE INSPECTION RATE.—
‘‘(A) INCREASED ALLOTMENT FOR FISCAL
YEARS 1999, 2000, AND 2001.—
‘‘(i) IN GENERAL.—Subject to clause
(iii), for fiscal years 1999, 2000, and
2001, the allotment determined for a State
under paragraph (1) for each such fiscal
year shall be increased by an amount equal
to 10 percent of such allotment for the fis-
cal year involved with respect to any
State—
‘‘(I) that certifies to the Sec-
retary that the State has not reduced
the scope of any State child care
health or safety standards or require-
ments that were in effect in calendar
year 1996; and
‘‘(II) that, with respect to the
preceding fiscal year, had a percent-
age of completed child care provider
inspections (as required to be reported
under section 658E(c)(2)(G)), that
equaled or exceeded the target inspec-
tion and enforcement percentage spec-
ified under clause (ii) for the fiscal
year for which the allotment is to be
paid.
‘‘(ii) TARGET
INSPECTION
AND
EN-
FORCEMENT PERCENTAGE.—For purposes
of clause (i)(II), the target inspection and
enforcement percentage is—
‘‘(I) for fiscal year 1999, 75 per-
cent;
‘‘(II) for fiscal year 2000, 80
percent; and
‘‘(III) for fiscal year 2001, 100
percent.
‘‘(iii) PRO RATA REDUCTIONS IF IN-
SUFFICIENT
APPROPRIATIONS.—The Sec-
retary shall make pro rata reductions in
the percentage increase otherwise required
under clause (i) for a State allotment for
a fiscal year as necessary so that the ag-
gregate of all the allotments made under
this section do not exceed the amount ap-
propriated for that fiscal year under sec-
tion 658B.
‘‘(B) DECREASED ALLOTMENT FOR FISCAL
YEARS 2000 AND 2001.—
‘‘(i) IN GENERAL.—The allotment de-
termined for a State under paragraph (1)
for each of fiscal years 2000 and 2001
shall be decreased by an amount equal to
10 percent of such allotment for the fiscal
year involved with respect to any State
that, with respect to the preceding fiscal
year, had a percentage of completed child
care provider inspections (as required to be
reported under section 658E(c)(2)(G))
that was below the minimum inspection
and 
enforcement 
percentage 
specified
under clause (ii) for the fiscal year for
which the allotment is to be paid.
‘‘(ii) MINIMUM INSPECTION AND EN-
FORCEMENT PERCENTAGE.—For purposes
of clause (i), the minimum inspection and
enforcement percentage is—
‘‘(I) for fiscal year 2000, 50 per-
cent; and
‘‘(II) for fiscal year 2001, 75
percent.
‘‘(iii) 
REQUIREMENT
TO
EXPEND
STATE FUNDS TO REPLACE REDUCTION.—
If the allotment determined for a State for
a fiscal year is reduced by reason of clause
(i), the State shall, during the immediately
succeeding fiscal year, expend additional
State funds under the State plan funded
under this subchapter by an amount equal
to the amount of such reduction.’’.
Subtitle C—Removal of Barriers to
Increasing the Supply of Quality
Child Care
SEC. 221. INCREASED AUTHORIZATION OF APPROPRIA-
TIONS FOR THE CHILD CARE AND DEVELOP-
MENT BLOCK GRANT ACT.
Section 658B of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858) is amended
to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this subchapter—
‘‘(1) for each of fiscal years 1996 through
1998, $1,000,000,000;
‘‘(2) for fiscal year 1999, $1,500,000,000;
‘‘(3) for fiscal year 2000, $1,750,000,000;
‘‘(4) for fiscal year 2001, $2,000,000,000;
‘‘(5) for fiscal year 2002, $2,250,000,000; and
‘‘(6) for fiscal year 2003, $2,500,000,000.’’.
SEC. 222. SMALL BUSINESS CHILD CARE GRANT PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Health and
Human Services (in this section referred to as the ‘‘Sec-
retary’’) shall establish a program to award grants to
States to assist States in providing funds to encourage the
establishment and operation of employer 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 re-
quire, including an assurance that the funds required
under subsection (e) will be provided.
(c) AMOUNT OF GRANT.—The Secretary shall deter-
mine the amount of a grant to a State under this section
based on the population of the State as compared to the
population of all States.
(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 located in
the State to enable the small businesses to establish
and operate child care programs. Such assistance
may include—
(A) technical assistance in the establish-
ment of a child care program;
(B) assistance for the start up costs relat-
ed 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
children;
(F) the entering into of contracts with
local resource and referral or local health de-
partments;
(G) care for children with disabilities; or
(H) assistance for any other activity deter-
mined appropriate by the State.
(2) APPLICATION.—To be eligible to receive as-
sistance from a State under this section, a small
business shall prepare and submit to the State an
application at such time, in such manner, and con-
taining such information as the State may require.
(3) PREFERENCE.—
(A) IN GENERAL.—In providing assistance
under this section, a State shall give priority to
applicants that desire to form a consortium to
provide child care in geographic areas 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 which may include busi-
nesses, nonprofit agencies or organizations,
local governments, or other appropriate entities.
(4) LIMITATION.—With respect to grant funds
received under this section, a State may not provide
in excess of $100,000 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 as-
surances to the Secretary that, with respect to the costs
to be incurred by an entity receiving assistance in carrying
out activities under this section, the entity will make avail-
able (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 entity
receives such assistance, not less than 50 percent of
such costs ($1 for each $1 of assistance provided to
the entity under the grant);
(2) for the second fiscal year in which an entity
receives such assistance, not less than 662⁄3 percent
of such costs ($2 for each $1 of assistance provided
to the entity under the grant); and
(3) for the third fiscal year in which an entity
receives such assistance, not less than 75 percent of
such costs ($3 for each $1 of assistance provided to
the 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 shall comply with all applica-
ble State and local licensing and regulatory requirements
and all applicable health and safety standards in effect
in the State.
(g) ADMINISTRATION.—
(1) STATE
RESPONSIBILITY.—A State shall
have responsibility for administering the grant
awarded under this section and for monitoring enti-
ties that receive assistance under such grant.
(2) AUDITS.—A State shall require each entity
receiving assistance under a grant awarded under
this section to conduct an annual audit with respect
to the activities of the entity. Such audits shall be
submitted to the State.
(3) MISUSE OF FUNDS.—
(A) REPAYMENT.—If the State determines,
through an audit or otherwise, that an entity
receiving assistance under a grant awarded
under this section has misused the assistance,
the State shall notify the Secretary of the mis-
use. The Secretary, upon such a notification,
may seek from such an entity the repayment of
an amount equal to the amount of any misused
assistance plus interest.
(B) APPEALS
PROCESS.—The Secretary
shall by regulation provide for an appeals proc-
ess with respect to repayments under this para-
graph.
(h) REPORTING REQUIREMENTS.—
(1) 2-YEAR STUDY.—
(A) IN GENERAL.—Not later than 2 years
after the date on which the Secretary first pro-
vides grants under this section, the Secretary
shall conduct a study to determine—
(i) the capacity of entities to meet the
child care needs of communities within a
State;
(ii) the kinds of partnerships that are
being formed with respect to child care at
the local level; 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 of enactment of this Act, the Sec-
retary shall prepare and submit to the appro-
priate committees of Congress a report on the
results of the study conducted in accordance
with subparagraph (A).
(2) 4-YEAR STUDY.—
(A) IN GENERAL.—Not later than 4 years
after the date on which the Secretary first pro-
vides grants under this section, the Secretary
shall conduct a study to determine the number
of child care facilities funded through entities
that received assistance through a grant made
under this section that remain 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 of enactment of this Act, the Sec-
retary shall prepare and submit to the appro-
priate committees of Congress a report on the
results of the study conducted in accordance
with subparagraph (A).
(i) DEFINITION.—As used in this section, the term
‘‘small business’’ means an employer who employed an av-
erage of at least 2 but not more than 50 employees on
business days during the preceding calendar year.
(j) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section,
$60,000,000 for the period of fiscal years 1999 through
2001. With respect to the total amount appropriated for
such period in accordance with this subsection, not more
than $5,000,000 of that amount may be used for expendi-
tures related to conducting evaluations required under,
and the administration of, this section.
(k) TERMINATION OF PROGRAM.—The program es-
tablished under subsection (a) shall terminate on Septem-
ber 30, 2002.
SEC. 223. GAO REPORT REGARDING THE RELATIONSHIP
BETWEEN LEGAL LIABILITY CONCERNS AND
THE AVAILABILITY AND AFFORDABILITY OF
CHILD CARE.
Not later than 6 months after the date of enactment
of this Act, the Comptroller General of the United States
shall report to Congress regarding whether and, if so, the
extent to which, concerns regarding potential legal liability
exposure inhibit the availability and affordability of child
care. The report shall include an assessment of whether
such concerns prevent—
(1) employers from establishing on or near-site
child care for their employees;
(2) schools or community centers from allowing
their facilities to be used for on-site child care; and
(3) individuals from providing professional, li-
censed child care services in their homes.
Subtitle 
D—Quality 
Child 
Care
Through Federal Facilities and
Programs
SEC. 231. PROVIDING QUALITY CHILD CARE IN FEDERAL
FACILITIES.
(a) DEFINITION.—In this section:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of General Serv-
ices.
(2) EXECUTIVE AGENCY.—The term ‘‘Executive
agency’’ has the meaning given the term in section
105 of title 5, United States Code, but does not in-
clude the Department of Defense.
(3) EXECUTIVE FACILITY.—The term ‘‘execu-
tive facility’’ means a facility that is owned or leased
by an Executive agency.
(4) FEDERAL
AGENCY.—The term ‘‘Federal
agency’’ means an Executive agency, a judicial of-
fice, or a legislative office.
(5) JUDICIAL FACILITY.—The term ‘‘judicial fa-
cility’’ means a facility that is owned or leased by a
judicial office.
(6) JUDICIAL OFFICE.—The term ‘‘judicial of-
fice’’ means an entity of the judicial branch of the
Federal Government.
(7) LEGISLATIVE FACILITY.—The term ‘‘legisla-
tive facility’’ means a facility that is owned or leased
by a legislative office.
(8) LEGISLATIVE OFFICE.—The term ‘‘legisla-
tive office’’ means an entity of the legislative branch
of the Federal Government.
(b) EXECUTIVE BRANCH STANDARDS AND ENFORCE-
MENT.—
(1) STATE
AND
LOCAL
LICENSING
REQUIRE-
MENTS.—
(A) IN
GENERAL.—The Administrator
shall issue regulations requiring any entity op-
erating a child care center in an executive facil-
ity to comply with applicable State and local li-
censing requirements related to the provision of
child care.
(B) COMPLIANCE.—The regulations shall
require that, not later than 6 months after the
date of enactment of this Act—
(i) the entity shall comply, or make
substantial progress (as determined by the
Administrator) toward complying, with the
requirements; and
(ii) any contract for the operation of
such a child care center shall include a
condition that the child care be provided in
accordance with the requirements.
(2) EVALUATION
AND
ENFORCEMENT.—The
Administrator shall evaluate the compliance of the
entities described in paragraph (1) with the regula-
tions issued under that paragraph. The Adminis-
trator may conduct the evaluation of such an entity
directly, or through an agreement with another Fed-
eral agency, other than the Federal agency for which
the entity is providing child care. If the Adminis-
trator determines, on the basis of such an evalua-
tion, that the entity is not in compliance with the
regulations, the Administrator shall notify the Exec-
utive agency.
(c) LEGISLATIVE BRANCH STANDARDS
AND EN-
FORCEMENT.—
(1) STATE
AND
LOCAL
LICENSING
REQUIRE-
MENTS AND ACCREDITATION STANDARDS.—The Ar-
chitect of the Capitol shall issue regulations for enti-
ties operating child care centers in legislative facili-
ties, which shall be the same as the regulations
issued by the Administrator under subsection (b)(1),
except to the extent that the Architect may deter-
mine, for good cause shown and stated together with
the regulations, that a modification of such regula-
tions would be more effective for the implementation
of the requirements and standards described in such
paragraphs.
(2) EVALUATION
AND
ENFORCEMENT.—Sub-
section (b)(2) shall apply to the Architect of the
Capitol, entities operating child care centers in legis-
lative facilities, and legislative offices. For purposes
of that application, references in subsection (b)(2) to
regulations shall be considered to be references to
regulations issued under this subsection.
(d) JUDICIAL BRANCH STANDARDS AND ENFORCE-
MENT.—
(1) STATE
AND
LOCAL
LICENSING
REQUIRE-
MENTS AND ACCREDITATION STANDARDS.—The Di-
rector of the Administrative Office of the United
States Courts shall issue regulations for entities op-
erating child care centers in judicial facilities, which
shall be the same as the regulations issued by the
Administrator under subsection (b)(1), except to the
extent that the Director may determine, for good
cause shown and stated together with the regula-
tions, that a modification of such regulations would
be more effective for the implementation of the re-
quirements and standards described in such para-
graphs.
(2) EVALUATION
AND
ENFORCEMENT.—Sub-
section (b)(2) shall apply to the Director described
in paragraph (1), entities operating child care cen-
ters in judicial facilities, and judicial offices. For
purposes of that application, references in subsection
(b)(2) to regulations shall be considered to be ref-
erences to regulations issued under this subsection.
(e) APPLICATION.—Notwithstanding any other provi-
sion of this section, if 3 or more child care centers are
operated in facilities owned or leased by a Federal agency,
the head of the Federal agency may carry out the respon-
sibilities assigned to the Administrator under subsection
(b)(2), the Architect of the Capitol under subsection
(c)(2), or the Director described in subsection (d)(2)
under such subsection, as appropriate.
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