[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5291 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5291

To amend the National Housing Act to authorize the Secretary of Housing 
    and Urban Development to insure mortgages for the acquisition, 
     construction, or substantial rehabilitation of child care and 
  development facilities and to establish the Children's Development 
Commission (Kiddie Mac) to certify such facilities for such insurance, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2002

 Mrs. Maloney of New York (for herself, Mr. Gilman, Mr. Kanjorski, Mr. 
Frost, Mr. Gutierrez, Ms. Hooley of Oregon, Mr. Sandlin, Mr. Gonzalez, 
 Ms. Lee, Mr. Israel, Mr. Shows, Mr. Crowley, Mr. Jackson of Illinois, 
 Mr. Payne, Mr. Sawyer, Mr. Allen, Ms. Berkley, and Ms. Jackson-Lee of 
    Texas) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the National Housing Act to authorize the Secretary of Housing 
    and Urban Development to insure mortgages for the acquisition, 
     construction, or substantial rehabilitation of child care and 
  development facilities and to establish the Children's Development 
Commission (Kiddie Mac) to certify such facilities for such insurance, 
                        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.

    This Act may be cited as the ``Children's Development Commission 
Act (Kiddie Mac)''.

SEC. 2. 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, stimulating, 
        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 opportunities 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 children 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 development 
        and performance.

SEC. 3. INSURANCE FOR MORTGAGES ON NEW AND REHABILITATED CHILD CARE AND 
              DEVELOPMENT 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 section is to 
facilitate and assist in the provision and development of licensed 
child care and development facilities.
    ``(b) General Insurance Authority.--The Secretary may insure 
mortgages (including advances on such mortgages during construction) in 
accordance with the provisions of this section and upon such terms and 
conditions as the Secretary may prescribe and may make commitments for 
insurance of such mortgages before the date of their execution or 
disbursement thereon.
    ``(c) Eligible Mortgages.--To carry out the purpose of this 
section, the Secretary may insure any mortgage that covers a new child 
care and development facility, including a new addition to an existing 
child care and development facility (regardless of whether the existing 
facility 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 regulated or restricted as to charges and methods of 
        financing 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 necessary. 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 property 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 corporation or association 
                (as such term is defined pursuant to section 
                221(d)(3)), including--
                            ``(i) equipment to be used in the operation 
                        of the facility when the proposed improvements 
                        are completed and the equipment is installed; 
                        or
                            ``(ii) a solar energy system (as defined in 
                        subparagraph (3) of the last paragraph of 
                        section 2(a)) or residential energy 
                        conservation measures (as defined in 
                        subparagraphs (A) through (G) and (I) of 
                        section 210(11) of the National Energy 
                        Conservation Policy Act), in cases in which the 
                        Secretary 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 located 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 Secretary 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 mortgagee, 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 applicable 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 located; 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 mortgage 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 
median 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 provisions 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 
mortgage 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 prescribe, make commitments to 
        insure and insure loans made by financial institutions or other 
        approved mortgagees to child care and development facilities 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 subsequent 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 installed;
                    ``(B) bear interest at such rate as may be agreed 
                upon by the mortgagor and the mortgagee;
                    ``(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 mortgagee approved under 
                section 203(b)(1);
                    ``(E) comply with other such terms, conditions, 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 provisions 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 
        considered, for purposes of this subsection, to refer to loans 
        under this subsection. The provisions of subsections (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 applications for mortgage insurance under 
this section.
    ``(j) Definitions.--For the purposes of this section, the following 
definitions shall apply:
            ``(1) Child care and development facility.--The term `child 
        care and development facility' means a public facility, 
        proprietary facility, or facility of a private nonprofit 
        corporation or association that--
                    ``(A) has as its purpose the care and development 
                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 political 
                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 individuals to provide child care and 
        development services.
            ``(2) Distressed area.--The term `distressed area' means an 
        area that--
                    ``(A) meets the requirements under subchapter U of 
                chapter I of the Internal Revenue Code (26 U.S.C. 1391 
                et seq.) for designation as an enterprise community or 
                empowerment zone under such subchapter; or
                    ``(B) is a census tract that has a median income 
                that does not exceed 50 percent of the median income 
                for the region in which the census tract is located, as 
                determined by the Secretary.
        For purposes of subparagraph (B), a region shall be determined 
        by the Secretary in the same manner as areas are determined for 
        purposes of determining income limitations for assistance under 
        section 8 of the United States Housing Act of 1937 (42 U.S.C. 
        1437f).
            ``(3) Equipment.--The term `equipment' includes machinery, 
        utilities, and built-in equipment and any necessary enclosures 
        or structures to house them, and any other items necessary for 
        the functioning of a particular facility as a child care and 
        development facility, including necessary furniture. Such term 
        includes books, curricular, and program materials.
            ``(4) Mortgage; first mortgage; mortgagee.--The term 
        `mortgage' means a first mortgage on real estate in fee simple, 
        or on the interest of either the lessor or lessee thereof under 
        a lease having a period of not less than 7 years to run beyond 
the maturity date of the mortgage. The term `first mortgage' means such 
classes of first liens as are commonly given to secure advances 
(including advances during construction) on, or the unpaid purchase 
price of, real estate under the laws of the State in which the real 
estate is located, together with the credit instrument or instruments 
(if any) secured thereby, and any mortgage may be in the form of one or 
more trust mortgages or mortgage indentures or deeds of trust, securing 
notes, bonds, or other credit instruments, and, by the same instrument 
or by a separate instrument, may create a security interest in initial 
equipment, whether or not attached to the realty. The term `mortgagor' 
has the meaning given the term in section 207(a).
    ``(k) Limitation on Insurance Authority.--
            ``(1) Termination.--No mortgage may be insured under this 
        section or section 223(h) after September 30, 2012, except 
        pursuant to a commitment to insure issued on or before such 
        date.
            ``(2) Aggregate principal amount limitation.--The aggregate 
        principal amount of mortgages for which the Secretary enters 
        into commitments to insure under this section or section 
223(h) on or before the date under paragraph (1) may not exceed 
$2,000,000,000. If, upon the date under paragraph (1), the aggregate 
insurance authority provided under this paragraph has not been fully 
used, the Secretary of the Treasury shall submit a report to the 
Congress evaluating the need for continued mortgage insurance under 
this section.''.
    ``(l) Regulations.--The Secretary shall issue any regulations 
necessary to carry out this section. In issuing such regulations, the 
Secretary shall consult with the Secretary of Health and Human Services 
with respect to any aspects of the regulations regarding child care and 
development facilities.''.

SEC. 4. INSURANCE FOR MORTGAGES FOR ACQUISITION OR REFINANCING DEBT OF 
              EXISTING CHILD CARE AND DEVELOPMENT FACILITIES.

    Section 223 of the National Housing Act (12 U.S.C. 1715n) is 
amended by adding at the end the following new subsection:
    ``(h) Mortgage Insurance for Purchase or Refinancing of Existing 
Child Care and Development Facilities.--
            ``(1) Authority.--Notwithstanding any other provision of 
        this Act, the Secretary may insure under any section of this 
        title a mortgage executed in connection with the purchase or 
refinancing of an existing child care and development facility, the 
purchase of a structure to serve as a child care and development 
facility, or the refinancing of existing debt of an existing child care 
and development facility.
            ``(2) Purchase of existing facilities and structures.--In 
        the case of the purchase under this subsection of an existing 
        child care and development facility or purchase of an existing 
        structure to serve as such a facility, the Secretary shall 
        prescribe any terms and conditions that the Secretary considers 
        necessary to ensure that--
                    ``(A) the facility or structure purchased continues 
                to be used as a child care and development facility; 
                and
                    ``(B) the facility complies with the same 
                requirements applicable under section 257(d) to 
                facilities having mortgages insured under such section.
            ``(3) Refinancing of existing facilities.--In the case of 
        refinancing of an existing child care and development facility, 
        the Secretary shall prescribe any terms and conditions that the 
        Secretary considers necessary to ensure that--
                    ``(A) the refinancing is used to lower the monthly 
                debt service costs (taking into account any fees or 
                charges connected with such refinancing) of the 
                existing facility;
                    ``(B) the proceeds of any refinancing will be 
                employed only to retire the existing indebtedness and 
                pay the necessary cost of refinancing on the existing 
                facility;
                    ``(C) the existing facility is economically viable; 
                and
                    ``(D) the facility complies with the same 
                requirements applicable under section 257(d) to 
                facilities having mortgages insured under such section.
            ``(4) Definitions.--For purposes of this subsection, the 
        terms defined in section 257(j) shall have the same meanings as 
        provided under such section.
            ``(5) Limitation on insurance authority.--The authority of 
        the Secretary to enter into commitments to insure mortgages 
        under this subsection is subject to the limitations under 
        section 257(k).''.

SEC. 5. CHILDREN'S DEVELOPMENT COMMISSION.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is 
amended by adding at the end (after section 257, as added by section 3 
of this Act) the following new section:

            ``children's development commission (kiddie mac)

    ``Sec. 258. (a) Establishment.--There is hereby established a 
commission to be known as the Children's Development Commission or 
Kiddie Mac.
    ``(b) Membership.--
            ``(1) Appointment.--The Commission shall be composed of 7 
        members appointed by the President, not later than the 
        expiration of the 3-month period beginning upon the enactment 
        of this section, by and with the advice and consent of the 
        Senate, as follows:
                    ``(A) The Secretary of Housing and Urban 
                Development or the Secretary's designee.
                    ``(B) The Secretary of Health and Human Services or 
                the Secretary's designee.
                    ``(C) The Secretary of the Treasury or the 
                Secretary's designee.
                    ``(D) 4 members shall be appointed from among 12 
                individuals recommended jointly by the Speaker of the 
                House of Representatives, the Majority Leader of the 
                Senate, Minority Leader of the House of 
                Representatives, the Minority Leader of the Senate.
            ``(2) Qualifications of congressionally recommended 
        members.--Of the members appointed under paragraph (1)(D)--
                    ``(A) each shall be an individual who actively 
                participates or is employed in the field of child care 
                and has academic, licensing, or other credentials 
                relating to such participation or employment; and
                    ``(B) not more than 2 may be of the same political 
                party.
            ``(3) Terms.--Each appointed member of the Commission shall 
        serve for a term of 3 years.
            ``(4) Vacancies.--Any member appointed to fill a vacancy 
        occurring before the expiration of the term for which the 
member's predecessor was appointed shall be appointed only for the 
remainder of that term. A member may serve after the expiration of that 
member's term until a successor has taken office. A vacancy in the 
Commission shall be filled in the manner in which the original 
appointment was made.
            ``(5) Chairperson.--The chairperson of the Commission shall 
        be designated by the President at the time of appointment.
            ``(6) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum for the transaction of business.
            ``(7) Voting.--Each member of the Commission shall be 
        entitled to 1 vote, which shall be equal to the vote of every 
        other member of the Commission.
            ``(8) Prohibition on additional pay.--Members of the 
        Commission shall serve without compensation, but shall be 
        reimbursed for travel, subsistence, and other necessary 
        expenses incurred in the performance of their duties as members 
        of the Commission.
    ``(c) Functions.--The Commission shall carry out the following 
functions:
            ``(1) Certification of compliance.--The Commission shall 
        collect such information and make such determinations as may be 
        necessary to determine, for purposes of section 257(d), whether 
        child care and development facilities comply, or will be in 
        compliance within 12 months, with--
                    ``(A) any laws, standards, and requirements 
                applicable 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 
                located, and
                    ``(B) after the effective date of the standards and 
                requirements established under paragraph (2), such 
                standards and requirements,
        and shall issue certifications of such compliance.
            ``(2) Establishment of standards.--
                    ``(A) Study.--Not later than 12 months after the 
                date on which appointment of initial membership of the 
                Commission is completed, the Commission, in 
                consultation with the Secretary of Housing and Urban 
                Development and the Secretary of Health and Human 
                Services, shall conduct a study to determine the laws, 
                standards, and requirements referred to in paragraph 
                (1)(A) that are applicable in each State. Taking into 
                consideration the findings of the study, the Secretary 
                shall establish standards and requirements regarding 
                child care and development facilities that are designed 
                to ensure that mortgage insurance is provided under 
                section 257 and section 223(h) only for safe, clean, 
                and healthy facilities that provide appropriate care 
                and development services for children.
                    ``(B) Publication.--The Commission shall issue 
                regulations providing for the standards and 
                requirements established under subparagraph (A) to take 
                effect, for purposes of sections 257(d)(2) and 
                223(h)(2)(B) and paragraph (1)(B) of this section, not 
                later than 18 months after the date of the enactment of 
                this section.
            ``(3) Small purpose loans.--The Commission shall, to the 
        extent amounts are made available for such purpose pursuant to 
        subsection (i) and qualified requests are received, make loans, 
        directly or indirectly to providers of child care and 
        development facilities for reconstruction or renovation of such 
        facilities, subject to the following requirements:
                    ``(A) Loans under this paragraph shall be made only 
                for such facilities that are financially and 
                operationally viable, as determined under standards and 
                guidelines to be established by the Commission.
                    ``(B) The aggregate amount of loans made under this 
                paragraph to a single borrower may not exceed $50,000.
                    ``(C) A loan made under this paragraph may not have 
                a term exceeding 15 years.
                    ``(D) Loans under this paragraph shall bear 
                interest at rates and be made under such other 
                conditions and terms as the Commission shall provide.
            ``(4) Notification.--The Commission shall take such actions 
        as may be necessary to publicize the availability of the 
        programs for mortgage insurance under sections 257 and 223(h) 
        and loans under paragraph (3) of this subsection in a manner 
        that ensures that information concerning such programs will be 
        available to child care providers throughout the United States.
            ``(5) Technical assistance.--The Commission shall make 
        available, to mortgagors of mortgages insured under section 257 
        or 223(h) and to borrowers under paragraph (3) of this 
        subsection, technical assistance and expertise in the business 
        aspects of operating child care and development facilities 
        (including business planning and quality control assistance). 
        The Commission shall provide such assistance and expertise 
        directly and in coordination with appropriate Federal agencies 
        (including the Department of Housing and Urban Development, the 
        Department of Health and Human Services, the Department of 
        Defense, and the Small Business Administration),
            ``(6) Liability insurance.--The Commission shall--
                    ``(A) not later than 12 months after the date on 
                which appointment of initial membership of the 
                Commission is completed--
                            ``(i) establish standards and guidelines, 
                        applicable to mortgage insurance under sections 
                        257 and 223(h) and loans under paragraph (3) of 
                        this subsection, that require child care 
                        providers operating child care and development 
                        facilities assisted under such provisions to 
                        obtain and maintain liability insurance in such 
                        amounts and subject to such requirements as the 
                        Commission considers appropriate; and
                            ``(ii) submit a report to the Congress that 
                        analyzes the need for making financial and 
                        technical assistance available to such child 
                        care providers to identify and obtain liability 
                        insurance adequate to comply with such 
                        standards and guidelines, identifies 
                        appropriate methods of providing such 
                        assistance, sets forth a program for the 
                        Commission to provide such technical 
                        assistance, and makes recommendations for any 
                        legislation necessary to implement a program to 
                        provide such appropriate financial assistance; 
                        and
                    ``(B) beginning not later than the effective date 
                of the standards and guidelines established under 
                subparagraph (A)(i), carry out the technical assistance 
                program set forth in the report under subparagraph 
                (A)(ii).
            ``(7) Research foundation.--Not later than 12 months after 
        the date of the enactment of this section, the Commission shall 
        submit a report to the Congress recommending a plan for 
        establishing and funding a foundation that is an entity 
        independent of the Commission (but which maintains association 
        with the Commission)--
                    ``(A) which shall have as its purpose--
                            ``(i) to support research relating to child 
                        care and development facilities;
                            ``(ii) to fund pilot programs to test 
                        innovative methods for improving child care; 
                        and
                            ``(iii) to engage in activities and publish 
                        materials to assist persons interested in 
                        mortgage insurance under sections 257 and 
                        223(h) and other assistance provided by the 
                        Commission; and
                    ``(B) which shall have the authority to accept, 
                use, and dispose of gifts, bequests, or devises of 
                services or property, both real and personal, for the 
                purpose of aiding or facilitating the work of the 
                foundation.
            ``(8) Study regarding capital needs of center-based child 
        care in low-income communities.--The Commission shall provide 
        for the conducting of a study of center-based child care for 
        families in low-income communities and neighborhoods that--
                    ``(A) determines the existing supply and quality of 
                such care in such areas;
                    ``(B) identifies the economic and other market 
                barriers in such areas to--
                            ``(i) creating an adequate supply of 
                        center-based child care services; and
                            ``(ii) achieving a quality standard in 
                        child care centers adequate to support early 
                        childhood programs; and
                    ``(C) proposes public policy and private sector 
                initiatives that might be taken to ensure that such 
                areas have--
                            ``(i) a supply of center-based child care 
                        facilities sufficient for child care needs of 
                        the areas and to facilitate employment and 
                        support the goals of welfare reform;
                            ``(ii) appropriate child care choices; and
                            ``(iii) sufficient quality of care 
                        necessary to prepare at-risk children for 
                        school.
        The Commission shall submit to the Congress a report regarding 
        the results of the study conducted under this section not later 
        than the expiration of the 18-month period beginning on the 
        date of the appointment of the executive director pursuant to 
        subsection (f)(1).
    ``(d) Nondiscrimination Requirement.--
            ``(1) In general.--The Commission may not certify under 
        subsection (c)(1) or carry out any activities of the Commission 
        with respect to any child care and development facility if the 
        provider of the facility discriminates on account of race, 
        color, religion (subject to paragraph (2)), national origin, 
        sex (to the extent provided in title IX of the Education 
        Amendments of 1972 (20 U.S.C. 1681 et seq.)), or handicapping 
        condition.
            ``(2) Facilities of religious organizations.--The 
        prohibition with respect to religion shall not apply to a child 
        care and development facility which is controlled by or which 
        is closely identified with the tenets of a particular religious 
        organization if the application of this subsection would not be 
        consistent with the religious tenets of such organization.
            ``(3) Certification.--As a condition of certification under 
        subsection (c)(1) and eligibility for a loan under subsection 
        (c)(3), the provider of a child care and development facility 
        shall certify to the Commission that the provider does not 
        discriminate, as required by the provisions of paragraph (1) of 
        this subsection.
    ``(e) Powers.--
            ``(1) Assistance from federal agencies.--The Commission may 
        secure directly from any department or agency of the Federal 
        Government such information as the Commission may require for 
        carrying out its functions. Upon request of the Commission, any 
        such department or agency shall furnish such information.
            ``(2) Assistance from general services administration.--The 
        Administrator of General Services shall provide to the 
        Commission, on a reimbursable basis, such administrative 
        support services as the Commission may request.
            ``(3) Assistance from department of housing and urban 
        development.--Upon the request of the Commission, the Secretary 
        of Housing and Urban Development shall, to the extent possible 
        and subject to the discretion of the Secretary, detail any of 
        the personnel of the Department of Housing and Urban 
        Development, on a nonreimbursable basis, to assist the 
        Commission in carrying out its functions under this section.
            ``(4) Mails.--The Commission may use the United States 
        mails in the same manner and under the same conditions as other 
        Federal agencies.
    ``(f) Staff.--
            ``(1) Executive director.--The Commission shall appoint an 
        executive director, who shall be compensated at a rate fixed by 
        the Commission, but which shall not exceed the rate established 
        for level I of the Executive Schedule under title 5, United 
States Code.
            ``(2) Other personnel.--In addition to the executive 
        director, the Commission may appoint and fix the compensation 
        of such personnel as the Commission considers necessary, in 
        accordance with the provisions of title 5, United States Code, 
        governing appointments to the competitive service, and the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        such title, relating to classification and General Schedule pay 
        rates.
    ``(g) Reports.--Not later than March 31 of each year, the 
Commission shall submit a report to the President and the Congress 
regarding the operations and activities of the Commission during the 
preceding calendar year. Each annual report shall include a copy of the 
Commission's financial statements and such information and other 
evidence as is necessary to demonstrate that the activities of the 
Commission during the year for which the report is made. The Commission 
may also submit reports to the Congress and President at such other 
times as the Commission deems desirable.
    ``(h) Definitions.--For purposes of this section, the terms defined 
in section 257(j) shall have the same meanings as provided under such 
section.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Commission to carry out this section $20,000,000 
for fiscal year 2003, to remain available until expended, of which not 
more than $2,500,000 shall be available for administrative costs of the 
Commission and the remainder of which shall be available only for loans 
under subsection (c)(3).''.

SEC. 6. STUDY OF AVAILABILITY OF SECONDARY MARKETS FOR MORTGAGES ON 
              CHILD CARE FACILITIES.

    The Secretary of the Treasury shall conduct a study of the 
secondary mortgage markets to determine--
            (1) whether such a market exists for purchase of mortgages 
        eligible for insurance under sections 223(h) and 257 of the 
        National Housing Act (as added by this Act);
            (2) whether such a market would affect the availability of 
        credit available for development of child care and development 
        facilities or would lower development costs of such facilities; 
        and
            (3) the extent to which such a market or other activities 
        to provide credit enhancement for child care and development 
        facilities loans is needed to meet the demand for such 
        facilities.
The Secretary of the Treasury shall submit to the Congress a report 
regarding the results of the study conducted under this section not 
later than the expiration of the 2-year period beginning on the date of 
the enactment of this Act.
                                 <all>