[House Report 106-169]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    106-169

======================================================================



 
               CHILD CARE SERVICES FOR FEDERAL EMPLOYEES

                                _______
                                

  June 7, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


    Mr. Burton of Indiana, from the Committee on Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 206]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Government Reform, to whom was referred 
the bill (H.R. 206) to provide for greater access to child care 
services for Federal employees, having considered the same, 
report favorably thereon without amendment and recommend that 
the bill do pass.

                                CONTENTS

                                                                   Page
  I. Summary of Legislation...........................................1
 II. Background and Need for the Legislation..........................2
III. Legislative Hearings and Committee Actions.......................2
 IV. Committee Hearings and Written Testimony.........................3
  V. Explanation of the Bill..........................................3
 VI. Compliance With Rule XIII........................................3
VII. Budget Analysis and Projections..................................3
VIII.Cost Estimate of the Congressional Budget Office.................3

 IX. Specific Constitutional Authority for this Legislation...........4
  X. Committee Recommendation.........................................4
 XI. Congressional Accountability Act; Public Law 104-1...............5
XII. Unfunded Mandates Reform Act; Public Law 104-4, Sect. 423........5
XIII.Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b)......5


                    I. SHORT SUMMARY OF LEGISLATION

    This legislation would authorize Federal agencies to use 
funds appropriated for Federal employees' salaries and expenses 
to help make child care at Federal facilities more affordable 
for lower-income Federal employees.

              II. BACKGROUND AND NEED FOR THE LEGISLATION

    Many agencies offer child care centers which are located at 
or near the worksite and provide group care. The Federal 
Government leads the nation in the number of employer-sponsored 
child care centers. There are about 850 such centers for 
Department of Defense (DoD) military and civilian employees and 
more than 230 centers for non-DoD employees. This compares to 
about 1,400 total centers sponsored by all private employees. 
Even with all these centers, many employees--in both the 
private and Federal sectors--continue to find child care 
inaccessible both because of the long waiting lists at many 
centers and because the costs exceed their means.
    The Military Child Care Act of 1989 authorized DoD to use 
set amounts of appropriated funds to fund all aspects of child 
care centers for DoD military and civilian families. DoD 
agencies can subsidize child care centers and child care homes. 
The use of appropriated funds by other agencies to subsidize 
child care is severely restricted by law.
    These other agencies also need the same flexibility that 
private enterprises and DoD have to address the particular 
needs of their workforces. H.R. 206 therefore permits Federal 
agencies to use appropriated funds available for the payment of 
salaries to provide child care services for the civilian 
employees of the agency in a Federal or leased facility or 
through contract. These payments may be applied to any expenses 
incurred by the providers. Appropriated funds provided to 
facilities or contractors must be used to make child care more 
affordable for lower income employees. This legislation would 
remove all limitations on the use of appropriated funds related 
to the allowable costs of child care centers.

            III. LEGISLATIVE HEARINGS AND COMMITTEE ACTIONS

    The Committee held no legislative hearings on H.R. 206. 
Rep. Constance A. Morella introduced H.R. 206 on January 6, 
1999. The bill was referred to the Committee on Government 
Reform. On January 20, 1999, the bill was referred to the 
Subcommittee on Civil Service. On May 13, 1999, the 
Subcommittee on Civil Service considered the bill, and 
forwarded it to the Committee on Government Reform by voice 
vote. On May 19, 1999, the Committee on Government Reform 
considered the bill. Mr. Sanford offered an amendment to define 
the term ``lower income,'' which is not defined in the bill. 
Under the Sanford amendment, ``lower income'' would mean the 
``Lower Living Standard Income Level,'' as determined by the 
Secretary of Labor in accordance with section 101(24) of P.L. 
105-220, The Workforce Investment Act of 1998. The amendment 
also provided that only permanent full-time employees could 
receive the subsidy authorized by this bill. The amendment 
failed by a roll call vote. The Committee on Government Reform 
approved H.R. 206 by voice vote and ordered the bill to be 
reported to the House.

              IV. COMMITTEE HEARINGS AND WRITTEN TESTIMONY

    The Committee did not hold any hearings related to this 
legislation.

       V. EXPLANATION OF THE BILL AS REPORTED: SECTION-BY-SECTION

          Section 1. Child Care Services for Federal Employees

    Section 1(a) provides that any executive agency may use 
appropriated funds that would otherwise be available for 
salaries to provide child care for its civilian employees, 
either in a Federal or leased facility or through contract.
    Section 1(b) provides that such funds must be used to 
improve the affordability of child care for lower income 
employees.
    Section 1(c) requires the Office of Personnel Management to 
issue implementing regulations for this section within 180 days 
of enactment.
    Section 1(d) provides that, for purposes of this section, 
``executive agency'' has the meaning provided in section 105 of 
title 5 of the U.S. Code, but does not include the General 
Accounting Office.

                     VI. COMPLIANCE WITH RULE XIII

    Pursuant to rule XIII, clause 3(c)(1) of the Rules of the 
House of Representatives, under the authority of rule X, clause 
2(b)(1) and clause 3(e), the results and findings from 
Committee oversight activities are incorporated in this report.

                  VII. BUDGET ANALYSIS AND PROJECTIONS

    H.R. 206 provides for no new authorization, budget 
authority, or tax expenditures. Consequently, the provisions of 
section 308(a) of the Congressional Budget Act are not 
applicable.

         VIII. COST ESTIMATE OF THE CONGRESSIONAL BUDGET OFFICE

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 24, 1999.
Hon. Dan Burton,
Chairman, Committee on Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 206, a bill to 
provide for greater access to child care services for federal 
employees.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                                    Dan L. Crippen.

H.R. 206.--A bill to provide for greater access to child care services 
        for federal employees. As ordered reported by the House 
        Committee on Government Reform on May 19, 1999

    Under current law, agencies can provide space, utilities, 
furnishings, and equipment free of charge to providers of child 
care, but with the exception of the Department of Defense 
(DoD), they cannot pay any of the costs to operate the centers, 
such as salaries of the centers' employees. Providers recover 
these costs through fees. H.R. 206 would allow federal agencies 
to use appropriated funds to pay a portion of the providers' 
operating costs, provided that such payments reduce the fees 
charged to lower-income federal employees.
    Based on data from the General Services Administration 
(GSA), CBO estimates that civilian employees currently pay 
around $60 million a year in fees to providers who operate 
centers in federal facilities, with such fees growing to around 
$90 million by fiscal year 2004 as a result of additional 
centers and higher fees. DoD subsidizes approximately one-half 
of the cost of the care provided in its facilities. Although 
considerable uncertainty exists as to how civilian agencies 
would use this authority, based on information provided by GSA 
and the Office of Personnel Management (OPM), CBO expects that 
other agencies would subsidize no more than 25 percent of their 
employees' fees. Thus, CBO estimates that H.R. 206 would 
increase annual costs by less than $10 million in fiscal year 
2000 and by less than $25 million in each of fiscal years 2001 
through 2004, subject to the availability of appropriated 
funds. The estimated cost for fiscal year 2000 is lower because 
the bill would allow OPM six months to develop and publish 
regulations.
    Because the bill would not affect direct spending or 
receipts, pay-as-you-go procedures would not apply. H.R. 206 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would not have 
any significant effects on the budgets of state, local, or 
tribal governments.
    The CBO staff contact is John R. Righter. This estimate was 
approved by Paul N. Van de Water, Assistant Director for Budget 
Analysis.

       IX. SPECIFIC CONSTITUTIONAL AUTHORITY FOR THIS LEGISLATION

    Clauses 1 and 18 of Article I, Sec. 8 of the Constitution 
grant Congress the power to enact this law.

                      X. COMMITTEE RECOMMENDATION

    On May 19, 1999, a quorum being present, the Committee on 
Government Reform ordered the bill favorably reported.

       COMMITTEE ON GOVERNMENT REFORM--106TH CONGRESS RECORD VOTE

    Date: May 19, 1999
    Amendment No. 1.
    Summary: An amendment defining ``lower income'' in 
accordance with the ``Lower Living Standard Income Level'' set 
out annually by the Secretary of Labor, and specifying that 
only full-time permanent employees are eligible for the child 
care subsidy.
    Offered by: Hon. Marshall ``Mark'' Sanford.
    Failed by Record Vote, 10 Ayes to 21 Nays.
    Vote by Members: Mr. Burton--Aye; Mr. Gilman--Not voting; 
Mrs. Morella--Nay; Mr. Shays--Nay; Ms. Ros-Lehtinen--Not 
voting; Mr. McHugh--Nay; Mr. Horn--Not voting; Mr. Mica--Nay; 
Mr. Davis of Virginia--Nay; Mr. McIntosh--Not voting; Mr. 
Souder--Aye; Mr. Scarborough--Aye; Mr. LaTourette--Nay; Mr. 
Sanford--Aye; Mr. Barr--Not voting; Mr. Miller--Aye; Mr. 
Hutchinson--Aye; Mr. Terry--Aye; Mrs. Biggert--Nay; Mr. 
Walden--Aye; Mr. Ose--Aye; Mr. Ryan--Not voting; Mr. 
Doolittle--Aye; Mrs. Chenoweth--Not voting; Mr. Waxman--Nay; 
Mr. Lantos--Nay; Mr. Wise--Nay; Mr. Owens--Not voting; Mr. 
Towns--Nay; Mr. Kanjorski--Not voting; Mrs. Mink--Nay; Mr. 
Sanders--Not voting; Mrs. Maloney--Nay; Ms. Norton--Nay; Mr. 
Fattah--Nay; Mr. Cummings--Nay; Mr. Kucinich--Not voting; Mr. 
Blagojevich--Nay; Mr. Davis of Illinois--Nay; Mr. Tierney--Nay; 
Mr. Turner--Nay; Mr. Allen--Not voting; Mr. Ford--Nay; Ms. 
Schakowsky--Not voting.
    Final Passage of H.R. 206. Offered by: Hon. Constance A. 
Morella. Adopted by voice vote.

    XI. CONGRESSIONAL ACCOUNTABILITY ACT; PUBLIC LAW 104-1; SECTION 
                               102(B)(3)

    H.R. 206 does not apply to the legislative branch.

    XII. UNFUNDED MANDATES REFORM ACT; PUBLIC LAW 104-4; SECTION 423

    H.R. 206 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not have any significant effects on the budgets of 
state, local, or tribal governments.

   XIII. FEDERAL ADVISORY COMMITTEE ACT (5 U.S.C. App.) SECTION 5(b)

    The Committee finds that H.R. 206 does not establish or 
authorize establishment of an advisory committee within the 
definition of 5 U.S.C. App., Section 5(b).

                                  
