CHILD CARE AND DEVELOPMENT BLOCK GRANT.

SEC. 5082. CHILD CARE AND DEVELOPMENT BLOCK GRANT.Chapter 8 of subtitle A of title IV of the Omnibus Budget Reconciliation Act of 1981 (Public Law 97–35) is amended— (1) by redesignating subchapters C, D, and E, as subchapters D, E, and F, respectively; and (2) by inserting after subchapter B the following new subchapter: “Subchapter C—Child Care and Development Block Grant “SEC. 658A. SHORT TITLE. “This subchapter may be cited as the ‘Child Care and Development Block Grant Act of 1990’. “SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.“There are authorized to be appropriated to carry out this sub-chapter, $750,000,000 for fiscal year 1991, $825,000,000 for fiscal year 1992, $925,000,000 for fiscal year 1993, and such sums as may be necessary for each of the fiscal years 1994 and 1995. “SEC. 658C. ESTABLISHMENT OF BLOCK GRANT PROGRAM. “The Secretary is authorized to make grants to States in accordance with the provisions of this subchapter. “SEC. 658D. LEAD AGENCY. “(a) Designation.—The chief executive officer of a State desiring to receive a grant under this subchapter shall designate, in an 104 STAT. 1388–237 application submitted to the Secretary under section 658E, an appropriate State agency that complies with the requirements of subsection (b) to act as the lead agency. “(b) Duties.— “(1) In general.— The lead agency shall— “(A) administer, directly or through other State agencies, the financial assistance received under this subchapter by the State; “(B) develop the State plan to be submitted to the Secretary under section 658E(a); “(C) in conjunction with the development of the State plan as required under subparagraph (B), hold at least one hearing in the State to provide to the public an opportunity to comment on the provision of child care services under the State plan; and “(D) coordinate the provision of services under this sub-chapter with other Federal, State and local child care and early childhood development programs. “(2) Development of plan.—In the development of the State plan described in paragraph (1)(B), the lead agency shall consult with appropriate representatives of units of general purpose local government. Such consultations may include consideration of local child care needs and resources, the effectiveness of existing child care and early childhood development services, and the methods by which funds made available under this subchapter can be used to effectively address local shortages. “SEC. 658E. APPLICATION AND PLAN. “(a) Application.—To be eligible to receive assistance under this subchapter, a State shall prepare and submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary shall by rule require, including— “(1) an assurance that the State will comply with the requirements of this subchapter; and “(2) a State plan that meets the requirements of subsection (C). “(b) Period Covered by Plan.—The State plan contained in the application under subsection (a) shall be designed to be implemented— “(1) during a 3-year period for the initial State plan; and “(2) during a 2-year period for subsequent State plans. “(c) Requirements of a Plan.— “(1) Lead agency.—The State plan shall identify the lead agency designated under section 658D. “(2) Policies and procedures.— The State plan shall: “(A) Parental choice of providers.— Provide assurances that— “(i) the parent or parents of each eligible child within the State who receives or is offered child care services for which financial assistance is provided under this subchapter, other than through assistance provided under paragraph (3)(C), are given the option either—“(D to enroll such child with a child care provider that has a grant or contract for the provision of such services; or “(II) to receive a child care certificate as defined in section 658P(2); 104 STAT. 1388–238 “(ii) in cases in which the parent selects the option described in clause (i)(I), the child will be enrolled with the eligible provider selected by the parent to the maximum extent practicable; and “(iii) child care certificates offered to parents selecting the option described in clause (i)(I) shall be of a value commensurate with the subsidy value of child care services provided under the option described in clause (i)(I); except that nothing in this subparagraph shall require a State to have a child care certificate program in operation prior to October 1, 1992. “(B) Unlimited parental access—Provide assurances that procedures are in effect within the State to ensure that child care providers who provide services for which assistance is made available under this subchapter afford parents unlimited access to their children and to the providers caring for their children, during the normal hours of operation of such providers and whenever such children are in the care of such providers. “(C) Parental complaints.—Provide assurances that the State maintains a record of substantiated parental com-plaints and makes information regarding such parental complaints available to the public on request. “(D) Consumer education.—Provide assurances that consumer education information will be made available to parents and the general public within the State concerning licensing and regulatory requirements, complaint procedures, and policies and practices relative to child care services within the State. “(E) Compliance with state and local regulatory requirements.— Provide assurances that— “(i) all providers of child care services within the State for which assistance is provided under this sub-chapter comply with all licensing or regulatory requirements (including registration requirements) applicable under State and local law; and “(ii) providers within the State that are not required to be licensed or regulated under State or local law are required to be registered with the State prior to payment being made under this subchapter, in accordance with procedures designed to facilitate appropriate payment to such providers, and to permit the State to furnish information to such providers, including information on the availability of health and safety training, technical assistance, and any relevant information pertaining to regulatory requirements in the State, and that such providers shall be permitted to register with the State after selection by the parents of eligible children and before such payment is made. This subparagraph shall not be construed to prohibit a State from imposing more stringent standards and licensing or regulatory requirements on child care providers within the State that provide services for which assistance is provided under this subchapter than the standards or requirements imposed on other child care providers in the State. 104 STAT. 1388–239 “(F) Establishment of health and safety requirements.— Provide assurances that there are in effect within the State, under State or local law, requirements designed to protect the health and safety of children that are applicable to child care providers that provide services for which assistance is made available under this subchapter. Such requirements shall include— “(i) the prevention and control of infectious diseases (including immunization); “(ii) building and physical premises safety; and “(iii) minimum health and safety training appropriate to the provider setting. Nothing in this subparagraph shall be construed to require the establishment of additional health and safety requirements for child care providers that are subject to health and safety requirements in the categories described in this subparagraph on the date of enactment of this subchapter under State or local law. “(G) Compliance with state and local health and safety requirements.—Provide assurances that procedures are in effect to ensure that child care providers within the State that provide services for which assistance is provided under this subchapter comply with all applicable State or local health and safety requirements as described in subparagraph (F). “(H) Reduction in standards.—Provide assurances that if the State reduces the level of standards applicable to child care services provided in the State on the date of enactment of this subchapter, the State shall inform the Secretary of the rationale for such reduction in the annual report of the State described in section 658K. “(I) Review of state licensing and regulatory requirements.—Provide assurances that not later than 18 months after the date of the submission of the application under section 658E, the State will complete a full review of the law applicable to, and the licensing and regulatory requirements and policies of, each licensing agency that regulates child care services and programs in the State unless the State has reviewed such law, requirements, and policies in the 3-year period ending on the date of the enactment of this subchapter. “(J) Supplementation.—Provide assurances that funds received under this subchapter by the State will be used only to supplement, not to supplant, the amount of Federal, State, and local funds otherwise expended for the support of child care services and related programs in the State. “(3) Use of block grant funds.— “(A) General requirement.—The State plan shall provide that the State will use the amounts provided to the State for each fiscal year under this subchapter as required under subparagraphs (B) and (C). “(B) Child care services.— Subject to the reservation contained in subparagraph (C), the State shall use amounts provided to the State for each fiscal year under this sub-chapter for— “(i) child care services, that meet the requirements of this subchapter, that are provided to eligible children 104 STAT. 1388–240in the State on a sliding fee scale basis using funding methods provided for in section 658E(c)(2)(Al, with priority being given for services provided to children of families with very low family incomes (taking into consideration family size) and to children with special needs; and “(ii) activities designed to improve the availability and quality of child care. “(C) Activities to improve the quality of child care and to increase the availability of early childhood development and before- and after-school care services.—The State shall reserve 25 percent of the amounts provided to the State for each fiscal year under this sub-chapter to carry out activities designed to improve the quality of child care (as described in section 658G) and to provide before- and after-school and early childhood development services (as described in section 658H). “(4) Payment rates.— “(A) In general.—The State plan shall provide assurances that payment rates for the provision of child care services for which assistance is provided under this sub-chapter are sufficient to ensure equal access for eligible children to comparable child care services in the State or substate area that are provided to children whose parents are not eligible to receive assistance under this subchapter or for child care assistance under any other Federal or State programs. Such payment rates shall take into account the variations in the costs of providing child care in different settings and to children of different age groups, and the additional costs of providing child care for children with special needs. “(B) Construction.—Nothing in this paragraph shall be construed to create a private right of action. “(5) Sliding fee scale.—The State plan shall provide that the State will establish and periodically revise, by rule, a sliding fee scale that provides for cost sharing by the families that receive child care services for which assistance is provided under this subchapter. “(d) Approval of Application.—The Secretary shall approve an application that satisfies the requirements of this section. SEC. 658F5959So in original. Probably should be “ “sec. 658f.”. LIMITATIONS ON STATE ALLOTMENTS. “(a) No Entitlement to Contract or Grant.—Nothing in this subchapter shall be construed— “(1) to entitle any child care provider or recipient of a child care certificate to any contract, grant or benefit; or “(2) to limit the right of any State to impose additional limitations or conditions on contracts or grants funded under this subchapter. “(b) Construction of Facilities.— “(1) In general.—No funds made available under this sub-chapter shall be expended for the purchase or improvement of land, or for the purchase, construction, or permanent improvement (other than minor remodeling) of any building or facility. “(2) Sectarian agency or organization.—In the case of a sectarian agency or organization, no funds made available under this subchapter may be used for the purposes described in 104 STAT. 1388–241paragraph (1) except to the extent that renovation or repair is necessary to bring the facility of such agency or organization into compliance with health and safety requirements referred to in section 658E(c)(2)(F). “SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE. “A State that receives financial assistance under this subchapter shall use not less than 20 percent of the amounts reserved by such State under section 658E(c)(3)(C) for each fiscal year for one or more of the following: “(1) Resource and referral programs.—Operating directly or providing financial assistance to private nonprofit organizations or public organizations (including units of general purpose local government) for the development, establishment, expansion, operation, and coordination of resource and referral programs specifically related to child care. “(2) Grants or loans to assist in meeting state and local standards.—Making grants or providing loans to child care providers to assist such providers in meeting applicable State and local child care standards, “(3) Monitoring of compliance with licensing and regulatory requirements.—Improving the monitoring of compliance with, and enforcement of, State and local licensing and regulatory requirements (including registration requirements). “(4) Training.—Providing training and technical assistance in areas appropriate to the provision of child care services, such as training in health and safety, nutrition, first aid, the recognition of communicable diseases, child abuse detection and prevention, and the care of children with special needs. “(5) Compensation.—Improving salaries and other compensation paid to full- and part-time staff who provide child care services for which assistance is provided under this subchapter. “SEC. 658H. EARLY CHILDHOOD DEVELOPMENT AND BEFORE- AND AFTER-SCHOOL SERVICES. “(a) In General.—A State that receives financial assistance under this subchapter shall use not less than 75 percent of the amounts reserved by such State under section 658E(c)(3)(C) for each fiscal year to establish or expand and conduct, through the provision of grants or contracts, early childhood development or before- and after-school child care programs, or both. “(b) Program Description.—Programs that receive assistance under this section shall— “(1) in the case of early childhood development programs, consist of services that are not intended to serve as a substitute for a compulsory academic programs but that are intended to provide an environment that enhances the educational, social, cultural, emotional, and recreational development of children; and “(2) in the case of before- and after-school child care programs— “(A) be provided Monday through Friday, including school holidays and vacation periods other than legal public holidays, to children attending early childhood development programs, kindergarten, or elementary or secondary school classes during such times of the day and on such104 STAT. 1388–242 days that regular instructional services are not in session; and “(B) not be intended to extend or replace the regular academic program. “(c) Priority for Assistance.—In awarding grants and contracts under this section, the State shall give the highest priority to geographic areas within the State that are eligible to receive grants under section 1006 of the Elementary and Secondary Education Act of 1965, and shall then give priority to— “(1) any other areas with concentrations of poverty; and “(2) any areas with very high or very low population densities. “SEC. 6581. ADMINISTRATION AND ENFORCEMENT. “(a) Administration.—The Secretary shall— “(1) coordinate all activities of the Department of Health and Human Services relating to child care, and, to the maximum extent practicable, coordinate such activities with similar activities of other Federal entities; “(2) collect, publish and make available to the public a listing of State child care standards at least once every 3 years; and “(3) provide technical assistance to assist States to carry out this subchapter, including assistance on a reimbursable basis. “(b) Enforcement.— “(1) Review of compliance with state plan.—The Secretary shall review and monitor State compliance with this subchapter and the plan approved under section 658E(c) for the State, and shall have the power to terminate payments to the State in accordance with paragraph (2). “(2) Noncompliance.— “(A) In general.— If the Secretary, after reasonable notice to a State and opportunity for a hearing, finds that—“(i) there has been a failure by the State to comply substantially with any provision or requirement set forth in the plan approved under section 658E(c) for the State; or “(ii) in the operation of any program for which assistance is provided under this subchapter there is a failure by the State to comply substantially with any provision of this subchapter; the Secretary shall notify the State of the finding and that no further payments may be made to such State under this subchapter (or, in the case of noncompliance in the operation of a program or activity, that no further payments to the State will be made with respect to such program or activity) until the Secretary is satisfied that there is no longer any such failure to comply or that the noncompliance will be promptly corrected. “(B) Additional sanctions.—In the case of a finding of noncompliance made pursuant to subparagraph (A), the Secretary may, in addition to imposing the sanctions described in such subparagraph, impose other appropriate sanctions, including recoupment of money improperly ex-pended for purposes prohibited or not authorized by this subchapter, and disqualification from the receipt of financial assistance under this subchapter. 104 STAT. 1388–243 “(C) Notice.—The notice required under subparagraph (A) shall include a specific identification of any additional sanction being imposed under subparagraph (B). “(3) Issuance of rules.— The Secretary shall establish by rule procedures for— “(A) receiving, processing, and determining the validity of complaints concerning any failure of a State to comply with the State plan or any requirement of this subchapter; and “(B) imposing sanctions under this section. “SEC. 6583. PAYMENTS. “(a) In General.—Subject to the availability of appropriations, a State that has an application approved by the Secretary under section 658E(d) shall be entitled to a payment under this section for each fiscal year in an amount equal to its allotment under section 6580 for such fiscal year. “(b) Method of Payment.— “(1) In general.—Subject to paragraph (2), the Secretary may make payments to a State in installments, and in advance or by way of reimbursement, with necessary adjustments on account of overpayments or underpayments, as the Secretary may deter-mine. “(2) Limitation.—The Secretary may not make such payments in a manner that prevents the State from complying with the requirement specified in section 658E(c)(3). “(c) Spending of Funds by State.—Payments to a State from the allotment under section 6580 for any fiscal year may be expended by the State in that fiscal year or in the succeeding fiscal year. “SEC. 658K. ANNUAL REPORT AND AUDITS. “(a) Annual Report.—Not later than December 31, 1992, and annually thereafter, a State that receives assistance under this subchapter shall prepare and submit to the Secretary a report— “(1) specifying the uses for which the State expended funds specified under paragraph (3) of section 658E(c) and the amount of funds expended for such uses; “(2) containing available data on the manner in which the child care needs of families in the State are being fulfilled, including information concerning— “(A) the number of children being assisted with funds provided under this subchapter, and under other Federal child care and preschool programs; “(B) the type and number of child care programs, child care providers, caregivers, and support personnel located in the State; “(C) salaries and other compensation paid to full- and part-time staff who provide child care services; and “(D) activities in the State to encourage public-private partnerships that promote business involvement in meeting child care needs; “(3) describing the extent to which the affordability and availability of child care services has increased; “(4) if applicable, describing, in either the first or second such report, the findings of the review of State licensing and regulatory requirements and policies described in section 658E(c), including a description of actions taken by the State in response to such reviews; 104 STAT. 1388–244 “(5) containing an explanation of any State action, in accordance with section 658E, to reduce the level of child care standards in the State, if applicable; and “(6) describing the standards and health and safety requirements applicable to child care providers in the State, including a description of State efforts to improve the quality of child care; during the period for which such report is required to be submitted. “(b) Audits.— “(1) Requirement.—A State shall, after the close of each program period covered by a 6060So in original. Probably should be“an”. application approved under section 658E(d) audit its expenditures during such program period from amounts received under this subchapter. “(2) Independent auditor.—Audits under this subsection shall be conducted by an entity that is independent of any agency administering activities that receive assistance under this subchapter and be in accordance with generally accepted auditing principles. “(3) Submission.—Not later than 30 days after the completion of an audit under this subsection, the State shall submit a copy of the audit to the legislature of the State and to the Secretary. “(4) Repayment of amounts.—Each State shall repay to the United States any amounts determined through an audit under this subsection not to have been expended in accordance with this subchapter, or the Secretary may offset such amounts against any other amount to which the State is or may be entitles under this subchapter. “SEC. 658L. REPORT BY SECRETARY. “Not later than July 31, 1993, and annually thereafter, the Secretary shall prepare and submit to the Committee on Education and Labor of the House of Representatives and the Committee on Labor and Human Resources of the Senate a report that contains a summary and analysis of the data and information provided to the Secretary in the State reports submitted under section 658K. Such report shall include an assessment, and where appropriate, recommendations for the Congress concerning efforts that should be undertaken to improve the access of the public to quality and affordable child care in the United States. “SEC. 658M. LIMITATIONS ON USE OF FINANCIAL ASSISTANCE FOR CERTAIN PURPOSES. “(a) Sectarian Purposes and Activities.—No financial assistance provided under this subchapter, pursuant to the choice of a parent under section 658E)(c)(2)(A)(i)(D or through any other grant or contract under the State plan, shall be expended for any sectarian purpose or activity, including sectarian worship or instruction. “(b) Tuition.—With regard to services provided to students en-rolled in grades 1 through 12, no financial assistance provided under this subchapter shall be expended for— “(1) any services provided to such students during the regular school day; “(2) any services for which such students receive academic credit toward graduation; or “(3) any instructional services which supplant or duplicate the academic program of any public or private school. 104 STAT. 1388–245 “SEC. 658N. NONDISCRIMINATION. “(a) Religious Nondiscrimination.— “(1) Construction.— “(A) In general.—Except as provided in subparagraph (B), nothing in this section shall be construed to modify or affect the provisions of any other Federal law or regulation that relates to discrimination in employment on the basis of religion. “(B) Exception.—A sectarian organization may require that employees adhere to the religious tenets and teachings of such organization, and such organization may require that employees adhere to rules forbidding the use of drugs or alcohol. “(2) Discrimination against child.— “(A) In general.—A child care provider (other than a family child care provider) that receives assistance under this subchapter shall not discriminate against any child on the basis of religion in providing child care services. “(B) Non-funded child care slots.—Nothing in this section shall prohibit a child care provider from selecting children for child care slots that are not funded directly with assistance provided under this subchapter because such children or their family members participate on a regular basis in other activities of the organization that owns or operates such provider. “(3) Employment in general.— “(A) Prohibition.—A child care provider that receives assistance under this subchapter shall not discriminate in employment on the basis of the religion of the prospective employee if such employee’s primary responsibility is or will be working directly with children in the provision of child care services. “(B) Qualified applicants.—If two or more prospective employees are qualified for any position with a child care provider receiving assistance under this subchapter, nothing in this section shall prohibit such child care provider from employing a prospective employee who is already participating on a regular basis in other activities of the organization that owns or operates such provider. “(C) Present employees.—This paragraph shall not apply to employees of child care providers receiving assistance under this subchapter if such employees are employed with the provider on the date of enactment of this sub-chapter. “(4) Employment and admission practices.—Notwithstanding paragraphs (1)(B), (2), and (3), if assistance provided under this subchapter, and any other Federal or State program, amounts to 80 percent or more of the operating budget of a child care provider that receives such assistance, the Secretary shall not permit such provider to receive any further assistance under this subchapter unless the grant or contract relating to the financial assistance, or the employment and admissions policies of the provider, specifically provides that no person with responsibilities in the operation of the child care program, project, or activity of the provider will discriminate against any individual in employment, if such employee’s primary respon-104 STAT. 1388–246sibility is or will be working directly with children in the provision of child care, or admissions because of the religion of such individual. “(b) Effect on State Law.—Nothing in this subchapter shall be construed to supersede or modify any provision of a State constitution or State law that prohibits the expenditure of public funds in or by sectarian institutions, except that no provision of a State constitution or State law shall be construed to prohibit the expenditure in or by sectarian institutions of any Federal funds provided under this subchapter. “SEC. 6580. AMOUNTS RESERVED; ALLOTMENTS. “(a) Amounts Reserved.— “(1) Territories and Possessions.—The Secretary shall re-serve not to exceed one half of 1 percent of the amount appropriated under this subchapter in each fiscal year for payments to Guam, American Samoa, the Virgin Islands of the United States, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands to be allotted in accordance with their respective needs. “(2) Indians tribes.—The Secretary shall reserve not more than 3 percent of the amount appropriated under section 658B in each fiscal year for payments to Indian tribes and tribal organizations with applications approved under subsection (c). “(b) State Allotment.— “(1) General rule.— From the amounts appropriated under section 658B for each fiscal year remaining after reservations under subsection (a), the Secretary shall allot to each State an amount equal to the sum of— “(A) an amount that bears the same ratio to 50 percent of such remainder as the product of the young child factor of the State and the allotment percentage of the State bears to the sum of the corresponding products for all States; and “(B) an amount that bears the same ratio to 50 percent of such remainder as the product of the school lunch factor of the State and the allotment percentage of the State bears to the sum of the corresponding products for all States. “(2) Young child factor.—The term ‘young child factor’ means the ratio of the number of children in the State under 5 years of age to the number of such children in all States as provided by the most recent annual estimates of population in the States by the Census Bureau of the Department of Commerce. “(3) School lunch factor.—The term ‘school lunch factor’ means the ratio of the number of children in the State who are receiving free or reduced price lunches under the school lunch program established under the National School Lunch Act (42 U.S.C. 1751 et seq.) to the number of such children in all the States as determined annually by the Department of Agriculture. “(4) Allotment percentage.— “(A) In general.—The allotment percentage for a State is determined by dividing the per capita income of all individuals in the United States, by the per capita income of all individuals in the State. “(B) Limitations.— If an allotment percentage determined under subparagraph (A)— 104 STAT. 1388–247 “(i) exceeds 1.2 percent, then the allotment percent-age of that State shall be considered to be 1.2 percent; and “(ii) is less than 0.8 percent, then the allotment percentage of the State shall be considered to be 0.8 percent. “(C) Per capita income.— For purposes of subparagraph (A), per capita income shall be— “(i) determined at 2-year intervals; “(ii) applied for the 2-year period beginning on October 1 of the first fiscal year beginning on the date such determination is made; and “(iii) equal to the average of the annual per capita incomes for the most recent period of 3 consecutive years for which satisfactory data are available from the Department of Commerce at the time such determination is made. “(c) Payments for the Benefit of Indian Children.— “(1) General authority.—From amounts reserved under subsection (a)(2), the Secretary may make grants to or enter into contracts with Indian tribes or tribal organizations that submit applications under this section, for the planning and carrying out of programs or activities consistent with the purposes of this subchapter. “(2) Applications and requirements.— An application for a grant or contract under this section shall provide that; “(A) Coordination.—The applicant will coordinate, to the maximum extent feasible, with the lead agency in the State or States in which the applicant will carry out programs or activities under this section. “(B) Services on reservations.—In the case of an applicant located in a State other than Alaska, California, or Oklahoma, programs and activities under this section will be carried out on the Indian reservation for the benefit of Indian children. “(C) Reports and audits.—The applicant will make such reports on, and conduct such audits of, programs and activities under a grant or contract under this section as the Secretary may require. “(3) Consideration of secretarial approval.— In determining whether to approve an application for a grant or contract under this section, the Secretary shall take into consideration— “(A) the availability of child care services provided in accordance with this subchapter by the State or States in which the applicant proposes to carry out a program to provide child care services; and “(B) whether the applicant has the ability (including skills, personnel, resources, community support, and other necessary components) to satisfactorily carry out the pro-posed program or activity. “(4) Three-year limit.—Grants or contracts under this section shall be for periods not to exceed 3 years. “(5) Dual eligibility of Indian children.—The awarding of a grant or contract under this section for programs or activities to be conducted in a State or States shall not affect the eligibility of any Indian child to receive services provided or to 104 STAT. 1388–248participate in programs and activities carried our6161So in original Probably should be “out”. under a grant to the State or States under this subchapter. (d) Data and Information.—The Secretary shall obtain from each appropriate Federal agency, the most recent data and information necessary to determine the allotments provided for in subsection (b). “(e) Reallotments.— “(1) In general.—Any portion of the allotment under subsection (b) to a State that the Secretary determines is not required to carry out a State plan approved under section 658E(d), in the period for which the allotment is made available, shall be reallotted by the Secretary to other States in proportion to the original allotments to the other States. “(2) Limitations.— “(A) Reduction.—The amount of any reallotment to which a State is entitled to under paragraph (1) shall be reduced to the extent that it exceeds the amount that the Secretary estimates will be used in the State to carry out a State plan approved under section 658E(d). “(B) Reallotments.—The amount of such reduction shall be similarly reallotted among States for which no reduction in an allotment or reallotment is required by this sub-section. “(3) Amounts reallotted.—For purposes of any other section of this subchapter, any amount reallotted to a State under this subsection shall be considered to be part of the allotment made under subsection (b) to the State. “(f) Definition.—For the purposes of this section, the term ‘State’ includes only the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. “SEC. 658P. DEFINITIONS. “As used in this subchapter: “(1) Caregiver.—The term ‘caregiver’ means an individual who provides a service directly to an eligible child on a person-to-person basis. “(2) Child care certificate.—The term ‘child care certificate’ means a certificate (that may be a check or other disbursement) that is issued by a State or local government under this sub-chapter directly to a parent who may use such certificate only as payment for child care services. Nothing in this subchapter shall preclude the use of such certificates for sectarian child care services if freely chosen by the parent. For purposes of this subchapter, child care certificates shall not be considered to be grants or contracts. “(3) Elementary school.—The term ‘elementary school’ means a day or residential school that provides elementary education, as determined under State law. “(4) Eligible child.— The term ‘eligible child’ means an individual— “(A) who is less than 13 years of age; “(B) whose family income does not exceed 75 percent of the State median income for a family of the same size; and “(C) who— “(i) resides with a parent or parents who are working or attending a job training or educational program; or 104 STAT. 1388–249 “(ii) is receiving, or needs to receive, protective services and resides with a parent or parents not described in clause (i). “(5) Eligible child care provider.— The term ‘eligible child care provider’ means— “(A) a center-based child care provider, a group home child care provider, a family child care provider, or other provider of child care services for compensation that— “(i) is licensed, regulated, or registered under State law as described in section 658E(c)(2)(E); and “(ii) satisfies the State and local requirements, including those referred to in section 658E(c)(2)(F); applicable to the child care services it provides; or “(B) a child care provider that is 18 years of age or older who provides child care services only to eligible children who are, by affinity or consanguinity, or by court decree, the grandchild, niece, or nephew of such provider, if such provider is registered and complies with any State requirements that govern child care provided by the relative involved. “(6) Family child care provider.—The term ‘family child care provider’ means one individual who provides child care services for fewer than 24 hours per day, as the sole caregiver, and in a private residence. “(7) Indian tribe.—The term ‘Indian tribe’ has the meaning given it in section 4(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(b)). “(8) Lead agency—The term ‘lead agency’ means the agency designated under section 658B(a). “(9) Parent.—The term ‘parent’ includes a legal guardian or other person standing in loco parentis. “(10) Secondary school.—The term ‘secondary school’ means a day or residential school which provides secondary education, as determined under State law. “(11) Secretary.—The term ‘Secretary’ means the Secretary of Health and Human Services unless the context specifies otherwise. “(12) Sliding fee scale.—The term ‘sliding fee scale’ means a system of cost sharing by a family based on income and size of the family. “(13) State.—The term ‘State’ means any of the several States, the District of Columbia, the Virgin Islands of the United States, the Commonwealth of Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. “(14) Tribal organization.—The term ‘tribal organization’ has the meaning given it in section 4(c) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(c)). “SEC. 6587. PARENTAL RIGHTS AND RESPONSIBILITIES.“Nothing in this subchapter shall be construed or applied in any manner to infringe on or usurp the moral and legal rights and responsibilities of parents or legal guardians. “SEC. 658R. SEVERABILITY. “If any provision of this subchapter or the application thereof to any person or circumstance is held invalid, the invalidity shall not 104 STAT. 1388–250 affect other provisions of applications of this subchapter which can be given effect without regard to the invalid provision or application, and to this end the provisions of this subchapter shall be severable.”.