GRANTS TO STATES FOR CHILD CARE.

SEC. 5081. GRANTS TO STATES FOR CHILD CARE. (a) Rules Governing Provision of Child Care to Eligible Families.— Section 402 (42 U.S.C. 602) is amended by adding at the end the following: “(i) (1) Each State agency may, to the extent that it determines that resources are available, provide child care in accordance with paragraph (2) to any low income family that the State determines— “(A) is not receiving aid under the State plan approved under this part; 104 STAT. 1388–234 “(B) needs such care in order to work; and “(C) would be at risk of becoming eligible for aid under the State plan approved under this part if such care were not provided. “(2) The State agency may provide child care pursuant to paragraph (1) by— “(A) providing such care directly; “(B) arranging such care through providers by use of purchase of service contracts or vouchers; “(C) providing cash or vouchers in advance to the family; “(D) reimbursing the family; or “(E) adopting such other arrangements as the agency deems appropriate. “(3) (A) A family provided with child care under paragraph (1) shall contribute to such care in accordance with a sliding scale formula established by the State agency based on the family’s ability to pay. “(B) The State agency shall make payment for the cost of child care provided under paragraph (1) with respect to a family in an amount that is the lesser of— “(i) the actual cost of such care; and “(ii) the applicable local market rate (as determined by the State in accordance with regulations issued by the Secretary). “(4) The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for the care) under this subsection— “(A) shall not be treated as income or as a deductible expense for purposes of any other Federal or federally assisted program that bases eligibility for or amount of benefits upon need; and “(B) may not be claimed as an employment-related expense for purposes of the credit under section 21 of the Internal Revenue Code of 1986. “(5) Amounts expended by the State agency for child care under paragraph (1) shall be treated as amounts for which payment may be made to a State under section 403(n) only to the extent that— “(A) such amounts are paid in accordance with paragraph (3)(B); “(B) the care involved meets applicable standards of State and local law; “(C) the provider of the care— “(i) in the case of a provider who is not an individual that provides such care solely to members of the family of the individual, is licensed, regulated, or registered by the State or locality in which the care is provided; and “(ii) allows parental access; and “(D) such amounts are not used to supplant any other Federal or State funds used for child care services. “(6) (A) (i) Each State shall prepare reports annually, beginning with fiscal year 1993, on the activities of the State carried out with funds made available under section 403(n). “(ii) The State shall make available for public inspection within the State copies of each report required by this paragraph, shall transmit a copy of each such report to the Secretary, and shall provide a copy of each such report, on request, to any interested public agency. 104 STAT. 1388–235 “(iii) The Secretary shall annually compile, and submit to the Congress, the State reports transmitted to the Secretary pursuant to clause (ii), “(B) Each report prepared and transmitted by a State under subparagraph (A) shall set forth with respect to child care services provided under this subsection— “(i) showing separately for center-based child care services, group home child care services, family child care services, and relative care services, the number of children who received such services and the average cost of such services; “(ii) the criteria applied in determining eligibility or priority for receiving services, and sliding fee schedules; “(iii) the child care licensing and regulatory (including registration) requirements in effect in the State with respect to each type of service specified in clause (i); and “(iv) the enforcement policies and practices in effect in the State which apply to licensed and regulated child care providers (including providers required to register). “(C) Within 12 months after the date of the enactment of this subsection, the Secretary shall establish uniform reporting requirements for use by the States in preparing the information required by this paragraph, and make such other provision as may be necessary or appropriate to ensure that compliance with this subsection will not be unduly burdensome on the States. “(D) Not later than July 1, 1992, the Secretary shall issue a report on the implementation of this subsection, based on such information as as has 5858So in original. Probably should be “information as has”. been made available to the Secretary by the States.”. (b) Payments to States.— Section 403 (42 U.S.C. 603) is amended by adding at the end the following: “(n) (1) In addition to any payment under subsection (a) or (1), each State shall be entitled to payment from the Secretary of an amount equal to the lesser of— “(A) the Federal medical assistance percentage (as defined in section 1905(b)) of the expenditures by the State in providing child care services pursuant to section 402(i), and in administering the provision of such child care services, for any fiscal year; and “(B) the limitation determined under paragraph (2) with respect to the State for the fiscal year. “(2) (A) The limitation determined under this paragraph with respect to a State for any fiscal year is the amount that bears the same ratio to the amount specified in subparagraph (B) for such fiscal year as the number of children residing in the State in the second preceding fiscal year bears to the number of children residing in the United States in the second preceding fiscal year. “(B) The amount specified in this subparagraph is— “(i) $300,000,000 for fiscal year 1991; “(ii) $300,000,000 for fiscal year 1992; “(iii) $300,000,000 for fiscal year 1993; “(iv) $300,000,000 for fiscal year 1994; and “(v) $300,000,000 for fiscal year 1995, and for each fiscal year thereafter. “(C) If the limitation determined under subparagraph (A) with respect to a State for a fiscal year exceeds the amount paid to the State under this subsection for the fiscal year, the limitation determined under this paragraph with respect to the State for the 104 STAT. 1388–236immediately succeeding fiscal year shall be increased by the amount of such excess. “(3) Amounts appropriated for a fiscal year to carry out this part shall be made available for payments under this subsection for such fiscal year.”. (c) Amendments to Grants to States To Improve Child Care Licensing and Registration Requirements, and To Monitor Child Care Provided to Children Receiving AFDC.— (1) Grants increased and extended.—Section 402(g)(6)(D) (42 U.S.C. 602(g)(6)(D)) is amended by inserting “, and $50,000,000 for each of fiscal years 1992, 1993, and 1994” before the period. (2) New purposes for grants.—Section 402(g)(6)(A) (42 U.S.C. 602(g)(6)(A)) is amended by striking “and to monitor child care provided to children receiving aid under the State plan approved under subsection (a)” and inserting “to enforce standards with respect to child care provided to children under this part, and to provide for the training of child care providers”. (3) Half of grant required to be expended for training of child care providers.— Section 402(g)(6) (42 U.S.C. 602(g)(6)) is amended by adding at the end the following: “(E) Each State to which the Secretary makes a grant under this paragraph shall expend not less than 50 percent of the amount of the grant to provide for the training of child care providers.”. (d) Coordination With Other Programs for Children.—Section 402(g)(7) (42 U.S.C. 602(g)(7)) is amended by inserting “and subsection (i)” after “this subsection”. (e) Effective Date.—Except as otherwise expressly provided, the amendments made by this section shall take effect on October 1, 1990.