article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Child Care Quality Incentive Act of 1999''. SEC. 2. FINDINGS AND PURPOSES. (a) Findings.--Congress makes the following findings: (1) Recent research on early brain development reveals that much of a child's growth is determined by early learning and nurturing care. Research also shows that quality early care and education leads to increased cognitive abilities, positive classroom learning behavior, increased likelihood of long-term school success, and greater likelihood of long-term economic and social self-sufficiency. (2) Each day an estimated 13,000,000 children, including 6,000,000 infants and toddlers, spend some part of their day in child care. However, a study in 4 States found that only 1 in 7 child care centers provide care that promotes healthy development, while 1 in 8 child care centers provide care that threatens the safety and health of children. (3) Full-day child care can cost $4,000 to $10,000 per year. (4) Although Federal assistance is available for child care, funding is severely limited. Even with Federal subsidies, many families cannot afford child care. For families with young children and a monthly income under $1,200, the cost of child care typically consumes 25 percent of their income. (5) Payment (or reimbursement) rates, the maximum the State will reimburse a child care provider for the care of a child who receives a subsidy, are too low to ensure that quality care is accessible to all families. (6) Low payment rates directly affect the kind of care children get and whether families can find quality child care in their communities. In many instances, low payment rates force child care providers to cut corners in ways that lower the quality of care for children, including reducing number of staff, eliminating staff training opportunities, and cutting enriching educational activities and services. (7) Children in low quality child care are more likely to have delayed reading and language skills, and display more aggression toward other children and adults. (8) Increased payment rates lead to higher quality child care as child care providers are able to attract and retain qualified staff, provide salary increases and professional training, maintain a safe and healthy environment, and purchase basic supplies and developmentally appropriate educational materials. (b) Purpose.--The purpose of this Act is to improve the quality of, and access to, child care by increasing child care payment rates. SEC. 3. INCENTIVE GRANTS TO IMPROVE THE QUALITY OF CHILD CARE. (a) Funding.--Section 658B of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858) is amended-- (1) by striking ``There'' and inserting the following: ``(a) Authorization of Appropriations.--There''; and (2) by adding at the end the following: ``(b) Appropriation of Funds for Grants To Improve the Quality of Child Care.--Out of any funds in the Treasury that are not otherwise appropriated, there are authorized to be appropriated and there are appropriated, for each of fiscal years 2000 through 2004, $300,000,000 for the purpose of making grants under section 658H.''. (b) Grants To Improve the Quality of Child Care.--The Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended by inserting after section 658G the following: ``SEC. 658H. GRANTS TO IMPROVE THE QUALITY OF CHILD CARE. ``(a) Authority.-- ``(1) In general.--The Secretary shall use the amount appropriated under section 658B(b) for a fiscal year to make grants to eligible States in accordance with this section. ``(2) Annual payments.--The Secretary shall make annual payments to each eligible State out of the allotment for that State determined under subsection (c). ``(b) Eligible States.-- ``(1) In general.--In this section, the term `eligible States' means a State that-- ``(A) has conducted a survey of the market rates for child care services in the State within the 2 years preceding the date of the submission of an application under paragraph (2); and ``(B) submits an application in accordance with paragraph (2). ``(2) Application.-- ``(A) In general.--To be eligible to receive a grant under this section, a State shall submit an application to the Secretary at such time, in such manner, and accompanied by such information, in addition to the information required under subparagraph (B), as the Secretary may require. ``(B) Information required.--Each application submitted for a grant under this section shall-- ``(i) detail the methodology and results of the State market rates survey conducted pursuant to paragraph (1)(A); ``(ii) describe the State's plan to increase payment rates from the initial baseline determined under clause (i); and ``(iii) describe how the State will increase payment rates in accordance with the market survey findings. ``(3) Continuing eligibility requirement.--The Secretary may make an annual payment under this section to an eligible State only if-- ``(A) the Secretary determines that the State has made progress, through the activities assisted under this subchapter, in maintaining increased payment rates; and ``(B) at least once every 2 years, the State conducts an update of the survey described in paragraph (1)(A). ``(4) Requirement of matching funds.-- ``(A) In general.--To be eligible to receive a grant under this section, the State shall agree to make available State contributions from State sources toward the costs of the activities to be carried out by a State pursuant to subsection (d) in an amount that is not less than 25 percent of such costs. ``(B) Determination of state contributions.--State contributions shall be in cash. Amounts provided by the Federal Government may not be included in determining the amount of such State contributions. ``(c) Allotments to Eligible States.--The amount appropriated under section 658B(b) for a fiscal year shall be allotted among the eligible States in the same manner as amounts are allotted under section 658O(b). ``(d) Use of Funds.-- ``(1) Priority use.--An eligible State that receives a grant under this section shall use the funds received to significantly increase the payment rate for the provision of child care assistance in accordance with this subchapter up to the 100th percentile of the market rate survey described in subsection (b)(1)(A). ``(2) Additional uses.--An eligible State that demonstrates to the Secretary that the State has achieved a payment rate of the 100th percentile of the market rate survey described in subsection (b)(1)(A) may use funds received under a grant made under this section for any other activity that the State demonstrates to the Secretary will enhance the quality of child care services provided in the State. ``(3) Payment rate.--In this section, the term `payment rate' means the rate of reimbursement to providers for subsidized child care. ``(4) Supplement not supplant.--Amounts paid to a State under this section shall be used to supplement and not supplant other Federal, State, or local funds provided to the State under this subchapter or any other provision of law. ``(e) Evaluations and Reports.-- ``(1) State evaluations.--Each eligible State shall submit to the Secretary, at such time and in such form and manner as the Secretary may require, information regarding the State's efforts to increase payment rates and the impact increased rates are having on the quality of, and accessibility to, child care in the State. ``(2) Reports to congress.--The Secretary shall submit biennial reports to Congress on the information described in paragraph (1). Such reports shall include data from the applications submitted under subsection (b)(2) as a baseline for determining the progress of each eligible State in maintaining increased payment rates.''.
summary: Child Care Quality Incentive Act of 1999 - Amends the Child Care and Development Block Grant Act of 1990 to establish a program of incentive grants to improve the quality of, and access to, child care by increasing child care payment rates. Authorizes appropriations. Directs the Secretary of Health and Human Services to make such grants to eligible States from specified allotments. Conditions a State's initial eligibility on its having surveyed the market rates for child care services in the State within the two years preceding submission of its application. Authorizes the Secretary to make an annual payment to an eligible State only if: (1) the Secretary determines that the State has made progress, through the assisted activities, in maintaining increased payment rates; and (2) the State updates such survey at least once every two years. Requires the State, to be eligible to receive such a grant, to agree to make available State contributions in cash from State sources toward at least 25 percent of the costs of priority required activities and additional authorized activities. Requires an eligible State that receives such a grant to make priority use of such funds to increase significantly (up to the 100th percentile of the market rate survey) the rate of reimbursement to providers for subsidized child care. Allows an eligible State, if it demonstrates to the Secretary that it has achieved such a payment rate for provision of child care assistance of the 100th percentile of the market rate survey, to use grant funds for any additional activity it demonstrates will enhance the quality of child care services. Requires evaluation reports by States to the Secretary, as well as biennial reports by the Secretary to the Congress.