Text: S.599 — 106th Congress (1999-2000)All Information (Except Text)

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Introduced in Senate (03/11/1999)

 
[Congressional Bills 106th Congress]
[From the U.S. Government Printing Office]
[S. 599 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 599

 To amend the Internal Revenue Code of 1986 to provide additional tax 
relief to families to increase the affordability of child care, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 11, 1999

    Mr. Chafee (for himself, Mr. Hatch, Mr. Cochran, Ms. Snowe, Mr. 
 Roberts, Mr. Specter, and Ms. Collins) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide additional tax 
relief to families to increase the affordability of child care, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Caring for 
Children Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
        TITLE I--TAX RELIEF TO INCREASE CHILD CARE AFFORDABILITY

Sec. 101. Expansion of dependent care tax credit.
Sec. 102. Promotion of dependent care assistance programs.
Sec. 103. Allowance of credit for employer expenses for child care 
                            assistance.
                TITLE II--ENCOURAGING QUALITY CHILD CARE

   Subtitle A--Dissemination of Information About Quality Child Care

Sec. 201. Collection and dissemination of information.
Sec. 202. Grants for the development of a child care training 
                            infrastructure.
Sec. 203. Authorization of appropriations.
 Subtitle B--Increased Enforcement of State Health and Safety Standards

Sec. 211. Enforcement of State health and safety standards.
  Subtitle C--Removal of Barriers to Increasing the Supply of Quality 
                               Child Care

Sec. 221. Increased authorization of appropriations for the Child Care 
                            and Development Block Grant Act.
Sec. 222. Small business child care grant program.
Sec. 223. GAO report regarding the relationship between legal liability 
                            concerns and the availability and 
                            affordability of child care.
 Subtitle D--Quality Child Care Through Federal Facilities and Programs

Sec. 231. Providing quality child care in Federal facilities.

        TITLE I--TAX RELIEF TO INCREASE CHILD CARE AFFORDABILITY

SEC. 101. EXPANSION OF DEPENDENT CARE TAX CREDIT.

    (a) Percentage of Employment-Related Expenses Determined by 
Taxpayer Status.--Section 21(a)(2) of the Internal Revenue Code of 1986 
(defining applicable percentage) is amended to read as follows:
            ``(2) Applicable percentage defined.--For purposes of 
        paragraph (1), the term `applicable percentage' means 50 
        percent reduced (but not below zero) by 1 percentage point for 
        each $1,500, or fraction thereof, by which the taxpayers's 
        adjusted gross income for the taxable year exceeds $30,000.''.
    (b) Minimum Credit Allowed for Stay-at-Home Parents.--Section 21(e) 
of the Internal Revenue Code of 1986 (relating to special rules) is 
amended by adding at the end the following:
            ``(11) Minimum credit allowed for stay-at-home parents.--
        Notwithstanding subsection (d), in the case of any taxpayer 
        with one or more qualifying individuals described in subsection 
        (b)(1)(A) under the age of 4 at any time during the taxable 
        year, such taxpayer shall be deemed to have employment-related 
        expenses with respect to such qualifying individuals in an 
        amount equal to the greater of--
                    ``(A) the amount of employment-related expenses 
                incurred for such qualifying individuals for the 
                taxable year (determined under this section without 
                regard to this paragraph), or
                    ``(B) $150 for each month in such taxable year 
                during which such qualifying individual is under the 
                age of 4.''.
    (c) Effective Date.--The amendments made by this section apply to 
taxable years beginning after December 31, 1998.

SEC. 102. PROMOTION OF DEPENDENT CARE ASSISTANCE PROGRAMS.

    (a) Promotion of Dependent Care Assistance Programs.--The Secretary 
of Labor shall establish a program to promote awareness of the use of 
dependent care assistance programs (as described in section 129(d) of 
the Internal Revenue Code of 1986) by employers.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the program under paragraph (1) $1,000,000 
for each of fiscal years 2000, 2001, 2002, and 2003.

SEC. 103. ALLOWANCE OF CREDIT FOR EMPLOYER EXPENSES FOR CHILD CARE 
              ASSISTANCE.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following:

``SEC. 45D. EMPLOYER-PROVIDED CHILD CARE CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, the 
employer-provided child care credit determined under this section for 
the taxable year is an amount equal to 20 percent of the qualified 
child care expenditures of the taxpayer for such taxable year.
    ``(b) Dollar Limitation.--The credit allowable under subsection (a) 
for any taxable year shall not exceed $100,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified child care expenditure.--
                    ``(A) In general.--The term `qualified child care 
                expenditure' means any amount paid or incurred--
                            ``(i) to acquire, construct, rehabilitate, 
                        or expand property--
                                    ``(I) which is to be used as part 
                                of a qualified child care facility of 
                                the taxpayer,
                                    ``(II) with respect to which a 
                                deduction for depreciation (or 
                                amortization in lieu of depreciation) 
                                is allowable, and
                                    ``(III) which does not constitute 
                                part of the principal residence (within 
                                the meaning of section 1034) of the 
                                taxpayer or any employee of the 
                                taxpayer,
                            ``(ii) for the operating costs of a 
                        qualified child care facility of the taxpayer, 
                        including costs related to the training of 
                        employees,
                            ``(iii) under a contract with a qualified 
                        child care facility to provide child care 
                        services to employees of the taxpayer, or
                            ``(iv) under a contract to provide child 
                        care resource and referral services to 
                        employees of the taxpayer.
            ``(2) Exclusion for amounts funded by grants, etc.--The 
        term `qualified child care expenditure' shall not include any 
        amount to the extent such amount is funded by any grant, 
        contract, or otherwise by another person (or any governmental 
        entity).
            ``(3) Qualified child care facility.--
                    ``(A) In general.--The term `qualified child care 
                facility' means a facility--
                            ``(i) the principal use of which is to 
                        provide child care assistance, and
                            ``(ii) which meets the requirements of all 
                        applicable laws and regulations of the State or 
                        local government in which it is located, 
                        including, but not limited to, the licensing of 
                        the facility as a child care facility.
                Clause (i) shall not apply to a facility which is the 
                principal residence (within the meaning of section 
                1034) of the operator of the facility.
                    ``(B) Special rules with respect to a taxpayer.--A 
                facility shall not be treated as a qualified child care 
                facility with respect to a taxpayer unless--
                            ``(i) enrollment in the facility is open to 
                        employees of the taxpayer during the taxable 
                        year,
                            ``(ii) the facility is not the principal 
                        trade or business of the taxpayer unless at 
                        least 30 percent of the enrollees of such 
                        facility are dependents of employees of the 
                        taxpayer, and
                            ``(iii) the use of such facility (or the 
                        eligibility to use such facility) does not 
                        discriminate in favor of employees of the 
                        taxpayer who are highly compensated employees 
                        (within the meaning of section 414(q)).
    ``(d) Recapture of Acquisition and Construction Credit.--
            ``(1) In general.--If, as of the close of any taxable year, 
        there is a recapture event with respect to any qualified child 
        care facility of the taxpayer, then the tax of the taxpayer 
        under this chapter for such taxable year shall be increased by 
        an amount equal to the product of--
                    ``(A) the applicable recapture percentage, and
                    ``(B) the aggregate decrease in the credits allowed 
                under section 38 for all prior taxable years which 
                would have resulted if the qualified child care 
                expenditures of the taxpayer described in subsection 
                (c)(1)(A) with respect to such facility had been zero.
            ``(2) Applicable recapture percentage.--
                    ``(A) In general.--For purposes of this subsection, 
                the applicable recapture percentage shall be determined 
                from the following table:

  
                                                         The applicable
  
                                                              recapture
            ``If the recapture event occurs in:
                                                         percentage is:
                Years 1-3............................          100     
                Year 4...............................           85     
                Year 5...............................           70     
                Year 6...............................           55     
                Year 7...............................           40     
                Year 8...............................           25     
                Years 9 and 10.......................           10     
                Years 11 and thereafter..............            0.    
                    ``(B) Years.--For purposes of subparagraph (A), 
                year 1 shall begin on the first day of the taxable year 
                in which the qualified child care facility is placed in 
                service by the taxpayer.
            ``(3) Recapture event defined.--For purposes of this 
        subsection, the term `recapture event' means--
                    ``(A) Cessation of operation.--The cessation of the 
                operation of the facility as a qualified child care 
                facility.
                    ``(B) Change in ownership.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the disposition of a taxpayer's 
                        interest in a qualified child care facility 
                        with respect to which the credit described in 
                        subsection (a) was allowable.
                            ``(ii) Agreement to assume recapture 
                        liability.--Clause (i) shall not apply if the 
                        person acquiring such interest in the facility 
                        agrees in writing to assume the recapture 
                        liability of the person disposing of such 
                        interest in effect immediately before such 
                        disposition. In the event of such an 
                        assumption, the person acquiring the interest 
                        in the facility shall be treated as the 
                        taxpayer for purposes of assessing any 
                        recapture liability (computed as if there had 
                        been no change in ownership).
            ``(4) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (1) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under this subsection shall not be treated as a tax 
                imposed by this chapter for purposes of determining the 
                amount of any credit under subpart A, B, or D of this 
                part.
                    ``(C) No recapture by reason of casualty loss.--The 
                increase in tax under this subsection shall not apply 
                to a cessation of operation of the facility as a 
                qualified child care facility by reason of a casualty 
                loss to the extent such loss is restored by 
                reconstruction or replacement within a reasonable 
                period established by the Secretary.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Aggregation rules.--All persons which are treated as 
        a single employer under subsections (a) and (b) of section 52 
        shall be treated as a single taxpayer.
            ``(2) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(3) Allocation in the case of partnerships.--In the case 
        of partnerships, the credit shall be allocated among partners 
        under regulations prescribed by the Secretary.
    ``(f) No Double Benefit.--
            ``(1) Reduction in basis.--For purposes of this subtitle--
                    ``(A) In general.--If a credit is determined under 
                this section with respect to any property by reason of 
                expenditures described in subsection (c)(1)(A), the 
                basis of such property shall be reduced by the amount 
                of the credit so determined.
                    ``(B) Certain dispositions.--If during any taxable 
                year there is a recapture amount determined with 
                respect to any property the basis of which was reduced 
                under subparagraph (A), the basis of such property 
                (immediately before the event resulting in such 
                recapture) shall be increased by an amount equal to 
                such recapture amount. For purposes of the preceding 
                sentence, the term `recapture amount' means any 
                increase in tax (or adjustment in carrybacks or 
                carryovers) determined under subsection (d).
            ``(2) Other deductions and credits.--No deduction or credit 
        shall be allowed under any other provision of this chapter with 
        respect to the amount of the credit determined under this 
        section.
    ``(g) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2003.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) by striking out ``plus'' at the end of 
                paragraph (11),
                    (B) by striking out the period at the end of 
                paragraph (12), and inserting a comma and ``plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(13) the employer-provided child care credit determined 
        under section 45D.''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

                              ``Sec. 45D. Employer-provided child care 
                                        credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.

                TITLE II--ENCOURAGING QUALITY CHILD CARE

   Subtitle A--Dissemination of Information About Quality Child Care

SEC. 201. COLLECTION AND DISSEMINATION OF INFORMATION.

    (a) Collection and Dissemination of Information.--The Secretary of 
Health and Human Services shall, directly or through a contract awarded 
on a competitive basis to a qualified entity, collect and disseminate--
            (1) information concerning health and safety in various 
        child care settings that would assist--
                    (A) the provision of safe and healthful 
                environments by child care providers; and
                    (B) the evaluation of child care providers by 
                parents; and
            (2) relevant findings in the field of early childhood 
        learning and development.
    (b) Information and Findings To Be Generally Available.--
            (1) Secretarial responsibility.--The Secretary of Health 
        and Human Services shall make the information and findings 
        described in subsection (a) generally available to States, 
        units of local governments, private nonprofit child care 
        organizations (including resource and referral agencies), 
        employers, child care providers, and parents.
            (2) Definition of generally available.--For purposes of 
        paragraph (1), the term ``generally available'' means that the 
        information and findings shall be distributed through resources 
        that are used by, and available to, the public, including such 
        resources as brochures, Internet web sites, toll-free telephone 
        information lines, and public and private resource and referral 
        organizations.

SEC. 202. GRANTS FOR THE DEVELOPMENT OF A CHILD CARE TRAINING 
              INFRASTRUCTURE.

    (a) Authority To Award Grants.--The Secretary of Health and Human 
Services shall award grants to eligible entities to develop distance 
learning child care training technology infrastructures and to develop 
model technology-based training courses for child care providers and 
child care workers. The Secretary shall, to the maximum extent 
possible, ensure that grants for the development of distance learning 
child care training technology infrastructures are awarded in those 
regions of the United States with the fewest training opportunities for 
child care providers.
    (b) Eligibility Requirements.--To be eligible to receive a grant 
under subsection (a), an entity shall--
            (1) develop the technological and logistical aspects of the 
        infrastructure described in this section and have the 
        capability of implementing and maintaining the infrastructure;
            (2) to the maximum extent possible, develop partnerships 
        with secondary schools, institutions of higher education, State 
        and local government agencies, and private child care 
        organizations for the purpose of sharing equipment, technical 
        assistance, and other technological resources, including--
                    (A) sites from which individuals may access the 
                training;
                    (B) conversion of standard child care training 
                courses to programs for distance learning; and
                    (C) ongoing networking among program participants; 
                and
            (3) develop a mechanism for participants to--
                    (A) evaluate the effectiveness of the 
                infrastructure, including the availability and 
                affordability of the infrastructure, and the training 
                offered the infrastructure; and
                    (B) make recommendations for improvements to the 
                infrastructure.
    (c) Application.--To be eligible to receive a grant under 
subsection (a), an entity shall submit an application to the Secretary 
at such time and in such manner as the Secretary may require, and that 
includes--
            (1) a description of the partnership organizations through 
        which the distance learning programs will be disseminated and 
        made available;
            (2) the capacity of the infrastructure in terms of the 
        number and type of distance learning programs that will be made 
        available;
            (3) the expected number of individuals to participate in 
        the distance learning programs; and
            (4) such additional information as the Secretary may 
        require.
    (d) Limitation On Fees.--No entity receiving a grant under this 
section may collect fees from an individual for participation in a 
distance learning child care training program funded in whole or in 
part by this section that exceed the pro rata share of the amount 
expended by the entity to provide materials for the training program 
and to develop, implement, and maintain the infrastructure (minus the 
amount of the grant awarded by this section).
    (e) Rule of Construction.--Nothing in this section shall be 
construed as requiring a child care provider to subscribe to or 
complete a distance learning child care training program made available 
by this section.

SEC. 203. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this subtitle 
$50,000,000 for each of fiscal years 2000 through 2004.

 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 striking the period and inserting ``, and provide 
        the percentage 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 
        September 1, 1999.
    (b) Increased or Decreased Allotments.--Section 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 paragraph (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 2000, 
                2001, and 2002.--
                            ``(i) In general.--Subject to clause (iii), 
                        for fiscal years 2000, 2001, and 2002, 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 fiscal year involved 
                        with respect to any State--
                                    ``(I) that certifies to the 
                                Secretary that the State has not 
                                reduced the scope of any State child 
                                care health or safety standards or 
                                requirements that were in effect as of 
                                December 31, 1998; and
                                    ``(II) 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 
                                equaled or exceeded the target 
                                inspection and enforcement percentage 
                                specified under clause (ii) for the 
                                fiscal year for which the allotment is 
                                to be paid.
                            ``(ii) Target inspection and enforcement 
                        percentage.--For purposes of clause (i)(II), 
                        the target inspection and enforcement 
                        percentage is--
                                    ``(I) for fiscal year 2000, 75 
                                percent;
                                    ``(II) for fiscal year 2001, 80 
                                percent; and
                                    ``(III) for fiscal year 2002, 100 
                                percent.
                            ``(iii) Pro rata reductions if insufficient 
                        appropriations.--The Secretary 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 aggregate of all the allotments made 
                        under this section do not exceed the amount 
                        appropriated for that fiscal year under section 
                        658B.
                    ``(B) Decreased allotment for fiscal years 2001 and 
                2002.--
                            ``(i) In general.--The allotment determined 
                        for a State under paragraph (1) for each of 
                        fiscal years 2001 and 2002 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 enforcement 
                        percentage.--For purposes of clause (i), the 
                        minimum inspection and enforcement percentage 
                        is--
                                    ``(I) for fiscal year 2001, 50 
                                percent; and
                                    ``(II) for fiscal year 2002, 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 APPROPRIATIONS FOR THE CHILD CARE 
              AND DEVELOPMENT 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 fiscal year 1999, $1,182,672,000;
            ``(2) for fiscal year 2000, $1,500,000,000;
            ``(3) for fiscal year 2001, $1,750,000,000;
            ``(4) for fiscal year 2002, $2,000,000,000;
            ``(5) for fiscal year 2003, $2,250,000,000; and
            ``(6) for fiscal year 2004, $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 ``Secretary'') 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 require, including an assurance that 
the funds required under subsection (e) will be provided.
    (c) Amount 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 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 establishment of a 
                child care program;
                    (B) assistance for the start up costs related to a 
                child care program;
                    (C) assistance for the training of child care 
                providers;
                    (D) scholarships for low-income wage earners;
                    (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 departments;
                    (G) care for children with disabilities; or
                    (H) assistance for any other activity determined 
                appropriate by the State.
            (2) Application.--To be eligible to receive assistance 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 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 applicants that 
                desire to form a consortium to provide child care in 
                geographic areas within the State where such care is 
                not generally available or accessible.
                    (B) Consortium.--For purposes of subparagraph (A), 
                a consortium shall be made up of 2 or more entities 
                which may include businesses, 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 receive a grant under 
this section a State shall provide assurances 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 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 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 66\2/3\ 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 applicable 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 entities 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 misuse. 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 process with respect 
                to repayments under this paragraph.
    (h) Reporting Requirements.--
            (1) 2-year study.--
                    (A) In general.--Not later than 2 years after the 
                date on which the Secretary first provides 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 Secretary shall 
                prepare and submit to the appropriate 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 provides 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 Secretary shall 
                prepare and submit to the appropriate 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 average 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 2000 through 2002. 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 expenditures 
related to conducting evaluations required under, and the 
administration of, this section.
    (k) Termination of Program.--The program established under 
subsection (a) shall terminate on September 30, 2003.

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, licensed 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) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
            (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 include the Department of Defense.
            (3) Executive facility.--The term ``executive 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 office, or a legislative office.
            (5) Judicial facility.--The term ``judicial facility'' 
        means a facility that is owned or leased by a judicial office.
            (6) Judicial office.--The term ``judicial office'' means an 
        entity of the judicial branch of the Federal Government.
            (7) Legislative facility.--The term ``legislative 
        facility'' means a facility that is owned or leased by a 
        legislative office.
            (8) Legislative office.--The term ``legislative office'' 
        means an entity of the legislative branch of the Federal 
        Government.
    (b) Executive Branch Standards and Enforcement.--
            (1) State and local licensing requirements.--
                    (A) In general.--The Administrator shall issue 
                regulations requiring any entity operating a child care 
                center in an executive facility to comply with 
                applicable State and local licensing 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 regulations issued under that paragraph. The 
        Administrator may conduct the evaluation of such an entity 
        directly, or through an agreement with another Federal agency, 
        other than the Federal agency for which the entity is providing 
        child care. If the Administrator determines, on the basis of 
        such an evaluation, that the entity is not in compliance with 
        the regulations, the Administrator shall notify the Executive 
        agency.
    (c) Legislative Branch Standards and Enforcement.--
            (1) State and local licensing requirements and 
        accreditation standards.--The Architect of the Capitol shall 
        issue regulations for entities operating child care centers in 
        legislative facilities, which shall be the same as the 
        regulations issued by the Administrator under subsection 
        (b)(1), except to the extent that the Architect may determine, 
        for good cause shown and stated together with the regulations, 
        that a modification of such regulations would be more effective 
        for the implementation of the requirements and standards 
        described in such paragraphs.
            (2) Evaluation and enforcement.--Subsection (b)(2) shall 
        apply to the Architect of the Capitol, entities operating child 
        care centers in legislative 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 Enforcement.--
            (1) State and local licensing requirements and 
        accreditation standards.--The Director of the Administrative 
        Office of the United States Courts shall issue regulations for 
        entities operating 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 regulations, that a modification of 
        such regulations would be more effective for the implementation 
        of the requirements and standards described in such paragraphs.
            (2) Evaluation and enforcement.--Subsection (b)(2) shall 
        apply to the Director described in paragraph (1), entities 
        operating child care centers in judicial facilities, and 
        judicial 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.
    (e) Application.--Notwithstanding any other provision 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 responsibilities 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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