[Congressional Record Volume 149, Number 27 (Thursday, February 13, 2003)]
[Senate]
[Pages S2465-S2467]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROBERTS (for himself, Ms. Collins, and Mr. Jeffords):
  S. 389. A bill to increase the supply of quality child care; to the 
Committee on Finance.
  Mr. ROBERTS. Mr. President, I am pleased and honored to join with my 
colleagues to introduce two pieces of legislation to help meet the 
child care challenges facing families around the Nation. These bills 
entitled the ``Caring for Children Act'' and ``A Boost for Child Care 
Act'', or the ABC's Act.
  Child care, in the home when possible and outside the home when both 
parents work, goes right to the heart of keeping families strong. 
Unfortunately, finding quality, affordable child care is one of the 
most pressing problems for families in Kansas and around the country. 
It is estimated that quality child care can cost as much or more than 
college tuition in some areas.
  The ``Caring for Children Act'' and `A Boost for Child Care Act'' 
take the first steps in addressing this challenge through a responsible 
approach. This legislation expands child care opportunities without 
increased government costs or intrusion in our lives. This legislation 
builds into the existing network adding more government intervention or 
mandates. This legislation will help families that have two working 
parents and families that have a stay-at-home parent. This legislation 
will help to increase the supply of quality child care.
  First, in order to provide additional tax relief and increased 
affordability of child care, the ABC's Act expends the Dependent Care 
Tax Credit by raising the income level to $30,000 at which families 
become eligible for the maximum tax credit. This legislation also 
raises the maximum percentage of child care expenses that parents can 
deduct to 50 percent. These changes make the Dependent Care Tax Credit 
more realistic for families that face increasing child care costs. 
Additionally, the ABC's Act accelerates and makes permanent the child 
tax credit at $1,000 for qualifying taxpayers in order to further ease 
the financial burden on families.
  Increasing the income level and the percentage of child care expenses 
that are deductible will help families where both parents work. But, we 
must also recognize that families who choose to have one parent remain 
at home have child care expenses as well. Therefore, this legislation 
extends eligibility for the Dependent Care Tax Credit to families with 
a stay-at-home parent. This provides greater options to more families 
and leaves child care choices where they should be--with the family. In 
order to target this credit to parents who need it the most and meet 
our fiscal responsibilities, the credit is phased out for higher income 
wage earners.
  The ``Caring for Children Act'' recognizes that small businesses play 
a critical role in providing child care options to millions of working 
parents. Unfortunately, small businesses generally do not have the 
resources required to start up and support a child care center. This 
legislation includes a short-term flexible grant program to encourage 
small businesses to work together to provide child care services for 
employees. This program is more of a demonstration project that will 
sunset at the end of three years. In the meantime, small businesses 
will be eligible for grants up to $100,000 for start-up costs, training 
scholarships, or other related activities. Business must continue to 
meet state quality and health standards. Businesses will be required to 
match Federal funds to encourage self-sustaining facilities well into 
the future.
  Parental access to child care information and technical assistance to 
child care providers both play a strong role in increasing the supply 
of quality child care. The Caring for Children Act includes a grant 
program to allow entities to develop and operate technology-based child 
care training infrastructures to enable child care providers to receive 
the training, education and support they need to improve the quality of 
child care. The legislation also provides funds for the Department of 
Health and Human Services to collect and disseminate state of the art 
information on topics related to child care health and safety, as well 
as early childhood development. This information could be distributed 
through brochures, the internet, a toll-free information hotline, or 
resource and referral organizations.

  Child care is an issue that impacts each and every one of us. While 
parents continue to struggle to meet the constant demand of work and 
family, we must continue to do our part to expand child care options 
and protect our nation's most valuable resource, our children. I look 
forward to working with all of my colleagues in this important effort.
  I ask unanimous consent that the text of the ``Caring for Children 
Act'' and ``A Boost for Child Care Act'' be printed in the Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                 S. 388

       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 ``A Boost for Child Care 
     Act''.

     SEC. 2. EXPANSION OF DEPENDENT CARE TAX CREDIT.

       (a) Percentage of Employment-Related Expenses Determined by 
     Taxpayer Status.--Paragraph (2) of section 21(a) of the 
     Internal Revenue Code of 1986 (relating to credit for 
     expenses for household and dependent care services necessary 
     for gainful employment) 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 taxpayer'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 new paragraph:
       ``(11) Minimum credit allowed for stay-at-home parents.--
     Notwithstanding subsection (d), in the case of any taxpayer 
     with 1 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 
     shall apply to taxable years beginning after December 31, 
     2003.

     SEC. 3. ACCELERATION OF CHILD TAX CREDIT.

       (a) In General.--Subsection (a) of section 24 of the 
     Internal Revenue Code of 1986 (relating to child tax credit) 
     is amended to read as follows:
       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year with respect to each qualifying child of the 
     taxpayer an amount equal to $1,000.''.
       (b) Conforming Amendments.--
       (1) Repeal of Amendment.--Section 201(a) of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001 is repealed.
       (2) Repeal of Sunset.--Title IX of the Economic Growth and 
     Tax Relief Reconciliation Act of 2001 (relating to sunset of 
     provisions of such Act) shall not apply to section 201 (other 
     than subsection (a) of such section) of such Act.

     SEC. 4. PROMOTION OF DEPENDENT CARE ASSISTANCE PROGRAMS.

       (a) In General.--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

[[Page S2466]]

     carry out the program under subsection (a) $1,000,000 for 
     each of fiscal years 2004, 2005, 2006, and 2007.
                                  ____


                                 S. 389

       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 ``Caring for Children Act''.

     TITLE I--DISSEMINATION OF INFORMATION ABOUT QUALITY CHILD CARE

     SEC. 101. 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 in--
       (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.--In 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. 102. 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, to be provided through distance learning programs 
     made available through the infrastructure. The Secretary 
     shall, to the maximum extent possible, ensure that such 
     grants 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) developing sites from which individuals may access the 
     training;
       (B) converting standard child care training courses to 
     programs for distance learning; and
       (C) promoting 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 through 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 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 program funded in whole 
     or in part under this section that exceed the pro rata share 
     of the amount expended by the entity to provide materials for 
     the program and to develop, implement, and maintain the 
     infrastructure (minus the amount of the grant awarded under 
     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 program made available under 
     this section.

     SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     title $50,000,000 for each of fiscal years 2003 through 2007.

TITLE II--REMOVAL OF BARRIERS TO INCREASING THE SUPPLY OF QUALITY CHILD 
                                  CARE

     SEC. 201. SMALL BUSINESS CHILD CARE GRANT PROGRAM.

       (a) Establishment.--The Secretary of Health and Human 
     Services (referred to in this section as the ``Secretary'') 
     shall establish a program to award grants to States, on a 
     competitive basis, 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 receiving grants under this section.
       (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 startup 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) assistance for 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 a 
     geographic area 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 that 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 the 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 the 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 a grant awarded for the 
     State under this section and for monitoring entities that 
     receive assistance under such grant.
       (2) Audits.--A State shall require each entity receiving 
     assistance under the 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 such misused assistance plus interest.

[[Page S2467]]

       (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 awards 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 States;
       (ii) the kinds of partnerships that are being formed with 
     respect to child care at the local level to carry out 
     programs funded under this section; and
       (iii) who is using the programs funded under this section 
     and the income levels of such individuals.
       (B) Report.--Not later than 28 months after the date on 
     which the Secretary first awards grants under this section, 
     the Secretary shall prepare and submit to the appropriate 
     committees of Congress a report on the results of the study 
     conducted in accordance with subparagraph (A).
       (2) 4-year study.--
       (A) In general.--Not later than 4 years after the date on 
     which the Secretary first awards grants under this section, 
     the Secretary shall conduct a study to determine the number 
     of child care facilities funded through entities that 
     received assistance through a grant awarded 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 on 
     which the Secretary first awards grants under this section, 
     the Secretary shall prepare and submit to the appropriate 
     committees of Congress a report on the results of the study 
     conducted in accordance with subparagraph (A).
       (i) Definition.--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.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section, $60,000,000 for the period of fiscal 
     years 2004 through 2006.
       (2) Evaluations and administration.--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, 2007.
                                 ______