The majority report and minority views of the Senate Committee on Labor and Human Resources concerning S. 123, Smart Start: The Community Collaborative for Early Childhood Development Act of 1989 are provided. The act would establish a new source of funding for upgrading, expanding, and creating high quality early childhood development (ECD) programs for children the year before they enter kindergarten. Smart Start is designed to build on what states are already doing in early childhood education (ECE) and to give states an incentive to keep programs running as the federal share of funds declines. Sections concern: (1) the act's purpose and a summary of the act; (2) legislative history; (3) background and need for legislation; (4) committee views; (5) the vote in committee; (6) cost estimate; (7) regulatory impact statement; (8) section-by-section analysis; (9) changes in existing law; and (10) minority views. The extensive background and rationale in Section III cover research on the effect of ECE programs, recommendations of education reform reports and policy statements of major education organizations regarding ECE, current federal ECE programs, recent state initiatives in ECE, and the legislative response. Minimum standards for participation in the federal program are specified. (RH)