Sec. 105. Application and plan

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Section 658E(c) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858c(c) ) is amended— in paragraph (2)— in subparagraph (A)— by striking the matter preceding clause

(i)and inserting the following: Support working parents by providing assurances that— ; and by striking clause (i)(II) and inserting the following: to enroll such child with a child care provider who has received a child care certificate from such parent or parents; ; in subparagraph (E)— in clause (i)— by striking subclause

(II)and inserting the following: the State's tiered and transparent system for measuring the quality of child care providers, described in subparagraph (W)(i), including— a description of the national standards or other equally rigorous and evidence-based standards tied to child outcomes that the State uses for purposes of subparagraph (W)(i)(II)(aa); the payment rates referred to in paragraph (4), for providers at each tier of such system; and the number and percentage of eligible providers at each tier of such system, in total and disaggregated by geographic location; ; in subclause (IV), by inserting the program carried out under title II of the after Child Care for Working Families Act , 9831 et seq.), ; and in subclause (VII), by striking and at the end; in clause (ii), by striking the period at the end and inserting a semicolon; and by adding at the end the following: information about the State's wage ladder described in subparagraph (G)(iii); and information on opportunities for staff of child care providers to improve their skills and credentials, including information about training opportunities and professional organizations that provide such training. ; in subparagraph (G)— in clause (i), by striking and professional development requirements and inserting , professional development, and compensation requirements ; in clause (ii)(V)— by redesignating item

(dd)as item (ee); in item (cc), by striking and ; and by inserting after item

(cc)the following: infants and toddlers with disabilities; and ; by redesignating clauses

(iii)and

(iv)as clauses

(v)and (vi), respectively; and by inserting after clause

(ii)the following: The plan shall provide a description of the State’s wage ladder for staff of eligible child care providers, and an assurance that wages for such staff will, at a minimum, meet the requirements of paragraph (4)(B)(iii)(II). The plan shall demonstrate how the State will facilitate participation of staff of eligible child care providers in organizations that foster the professional development and stakeholder engagement of the child care workforce. ; in subparagraph (I)— in clause (i)(XI), by striking and at the end; in clause (ii), by striking the period and inserting ; and ; and by adding at the end the following: may include a requirement to comply with the standards recommended in the Department of Health and Human Services’ report entitled Caring for Our Children Basics: Health and Safety Foundations for Early Care and Education , issued on June 25, 2015. ; in subparagraph (K)(i), in the matter preceding subclause (I), by striking , not later than 2 years after the date of enactment of the ; Child Care and Development Block Grant Act of 2014 , in subparagraph (M)— by adding investment of quality child care amounts described in section 658G(a)(1), after parents, ; by redesignating clause

(iv)as clause (v); in clause (iii), by striking , as defined by the State; and and inserting a semicolon; and by inserting after clause

(iii)the following: infants and toddlers with disabilities; and ; in subparagraph (N)— in clause (i)(I), by striking , if that family income does not exceed 85 percent of the State median income for a family of the same size ; in clause (ii), by striking (especially parents in families receiving assistance under the program of block grants to States for temporary assistance for needy families under part A of title IV of the Social Security Act ( ; and 42 U.S.C. 601 et seq.)) by striking clause (iv); in subparagraph (O)— in clause (i), by striking with programs operating and all that follows and inserting “with programs, operating at the Federal, State, and local levels for children, that are— preschool programs, programs funded under title II of the Child Care for Working Families Act , programs funded under section 657C of the Head Start Act, tribal early childhood programs, and other early childhood programs, including those serving infants and toddlers with disabilities; programs serving homeless children and children in foster care; and programs funded under the Individuals with Disabilities Education Act ( 20 U.S.C. 1400 et seq.). ; by striking clause (ii); and by redesignating clause

(iii)as clause (ii); in subparagraph (Q)— by striking and inserting low-income populations ; children in underserved areas, children with disabilities, and infants and toddlers with disabilities by striking high-quality and inserting high-quality and inclusive ; and by inserting before the period the following: and to children with disabilities and infants and toddlers with disabilities ; by striking subparagraph

(S)and inserting the following: The State plan shall provide an assurance that the State will provide assistance to carry out this subchapter only to eligible child care providers that prohibit— the use of suspension and expulsion of children; and the use of aversive behavioral interventions. ; in subparagraph (T)— in clause (i)— in the matter preceding subclause (I), by striking (or develop such guidelines if the State does not have such guidelines as of the date of enactment of the Child Care and Development Block Grant Act of 2014) ; and in subclause (I), by striking research-based and inserting evidence-based ; and in clause (iv)— by striking subclauses

(II)and (III); by striking Federal Government and all that follows through mandate and inserting Federal Government to mandate ; and by striking section; and inserting section. ; in subparagraph (U)— in clause (ii), by inserting the State’s lead agency established or designated under section 635(a)(10) of the Individuals with Disabilities Education Act ( after 20 U.S.C. 1435(a)(10) ), the State resource and referral system, ; and in clause (iii)(I), by inserting infants and toddlers with disabilities, after children with disabilities, ; and by adding at the end the following: The State plan shall describe how the State will develop or revise with input from child care providers, from families, and from organizations representing child care directors, teachers, and other staff, within 3 years after the date of submission of the State application, systems for measuring the quality of eligible child care providers who provide services for which assistance is made available under this subchapter, that consist of— a tiered and transparent system for measuring the quality of eligible child care providers who serve eligible children, that— applies to eligible child care providers (except providers of family, friend, or neighbor care that elect to be covered under clause (ii)); includes a set of standards, for determining the tier of quality of a child care provider, that— uses the degree to which the provider meets national standards (which may be Head Start program performance standards described in section 641A(a) of the Head Start Act ( 42 U.S.C. 9836a(a) ) or standards for national accreditation of early learning programs) or other equally rigorous and evidence-based standards that are tied to child outcomes; and includes indicators that are appropriate for different types of providers, including child care centers and family child care providers, and are appropriate for providers serving different age groups (including mixed age groups) of children, while maintaining a high level of quality child care by all of the different types of providers and for all of the different age groups (including mixed age groups); includes a different set of standards that includes different indicators, to be applied, when appropriate, for care during nontraditional hours of operation; and in conjunction with the increasing payment rates under paragraph

(4)(increasing due to factors specified in paragraph

(4)such as the cost estimation model and quality basis for payment rates), provides for sufficient resources to enable standards at the entry tier for such system to increase in rigor over time; and a separate system of quality standards for providers concerning developmentally appropriate and age-appropriate care that— applies to eligible child care providers of family, friend, or neighbor care (except such providers that elect to be covered under clause (i)); and includes standards for care during nontraditional hours of operation and traditional hours of operation. The State plan shall provide that, after the systems described in subparagraph

(W)are in effect, child care providers receiving financial assistance under this subchapter may not charge the family of an eligible child more than the total of— the financial assistance provided to the family under this subchapter; and any applicable copayment pursuant to paragraph (5). The State plan shall provide a description of— how the State will ensure that eligible child care providers, except for providers of family, friend, or neighbor care that elect to be covered under subparagraph (W)(ii), will prioritize children with disabilities and infants and toddlers with disabilities for slots in programs carried out by the providers; and how the State will work with the State’s lead agency established or designated under section 635(a)(10) of the Individuals with Disabilities Education Act ( 20 U.S.C. 1435(a)(10) ), local educational agencies, and early intervention services providers to provide services and supports described in the Individuals with Disabilities Education Act ( 20 U.S.C. 1400 et seq.) in inclusive child care settings to children with disabilities, and to infants and toddlers with disabilities, who are eligible children. ; in paragraph (3)— in the paragraph heading, by striking ; block grant in subparagraph (A), by striking subparagraphs

(B)through

(D)and inserting subparagraph

(C); by striking subparagraph

(B)and inserting the following: The State shall use amounts provided to the State for each fiscal year under this subchapter for child care services, provided on a sliding fee scale basis, and the activities described in section 658G. ; by striking subparagraph (C); in subparagraph (D), by striking provide assistance and inserting provide assistance (including providing access to programs that meet the standards for a high tier of the system described in paragraph (2)(W)(i)) ; by striking subparagraph (E); and by redesignating subparagraph

(D)as subparagraph (C); and by striking paragraphs

(4)and

(5)and inserting the following: The State plan shall— certify that payment rates for the provision of child care services for which assistance is provided in accordance with this subchapter— will be based on a cost estimation model that is described in subparagraph

(B)and is approved by the Secretary of Health and Human Services; and will correspond to differences in quality based on the State's tiered and transparent system for measuring the quality of child care providers, described in paragraph (2)(W)(i), and based on the standards described in paragraph (2)(W)(ii); and specify whether the State is electing— to include, in those payment rates, a bonus for serving children during nontraditional hours; or to waive the copayment described in paragraph

(5)for a child who has been identified as eligible for assistance from child protective services. The State plan shall— demonstrate that the State has, after consulting with the entities and individuals described in subparagraph (D), developed and used (not earlier than 3 years before the date of the submission of the application containing the State plan) a statistically valid and reliable cost estimation model for the rates of such child care services in the State— for providers at each of the tiers of the State's tiered and transparent system for measuring the quality of child care providers described in paragraph (2)(W)(i) (which rates reflect variations in the cost of child care services by geographic area, type of provider, and age of child, and the additional costs associated with providing high-quality and inclusive child care services for children with disabilities and infants and toddlers with disabilities); and for providers that meet the standards described in paragraph (2)(W)(ii); demonstrate that the State prepared a detailed report containing the child care costs estimated with the State cost estimation model pursuant to clause (i), and made the estimated costs widely available (not later than 30 days after the completion of the estimation) through periodic means, including posting the estimated costs on the Internet; describe how the State will set payment rates for child care services, for which assistance is provided in accordance with this subchapter— in accordance with the most recent estimates from the most recent cost estimation model used pursuant to clause (i), so that providers at each tier of the tiered and transparent system for measuring program quality receive payment that is not less than the cost of meeting the requirements of such tier; and that maintain an effective and diverse workforce by ensuring wages for staff of child care providers that— are comparable to wages for elementary educators with similar credentials and experience in the State; and at a minimum, provide a living wage for all staff of child care providers; and describe how the State will provide for timely payment for child care services provided under this subchapter. The State plan shall include— a certification that the payment practices of child care providers in the State that serve children who receive assistance under this subchapter reflect generally accepted payment practices of child care providers in the State that serve children who do not receive assistance under this subchapter, including the practice of paying the providers the payment rate described in subparagraph (A)(i) based on the number of children enrolled and not the number of children in daily attendance, so as to provide stability of funding and encourage more child care providers to serve children who receive assistance under this subchapter; and an assurance that the State will implement enrollment and eligibility policies that support the fixed costs of providing child care services by delinking provider payment rates from an eligible child’s occasional absences due to holidays or unforeseen circumstances such as illness. The entities and individuals referred to in subparagraph (B)(i) are the State Advisory Council on Early Childhood Education and Care designated or established in section 642B(b)(1)(A)(i) of the Head Start Act ( 42 U.S.C. 9837b(b)(1)(A)(i) ), administrators of local child care programs and Head Start programs, organizations representing child care directors, teachers, and other staff, local child care resource and referral agencies, organizations representing parents of children with disabilities and parents of infants and toddlers with disabilities, the State interagency coordinating council established under section 641 of the Individuals with Disabilities Education Act ( 20 U.S.C. 1441 ), the State advisory panel established under section 612(a)(21) of the Individuals with Disabilities Education Act ( 20 U.S.C. 1412(a)(21) ), and other appropriate entities. Except as provided in subparagraphs (B)(i) and (C), the State plan shall provide an assurance that the State will require— a family receiving assistance under this subchapter to pay the copayment referred to in paragraph (2)(X); or another entity to pay the copayment on behalf of the family, voluntarily or in accordance with Federal law. Such copayment shall be based on a sliding scale that provides that, for a family with a family income— of not more than 75 percent of State median income, the family shall not pay a copayment, toward the cost of the child care involved for all eligible children in the family; of more than 75 percent but not more than 100 percent of State median income, the copayment shall be more than 0 but not more than 2 percent of that family income, toward such cost for all such children; of more than 100 percent but not more than 125 percent of State median income, the copayment shall be more than 2 but not more than 4 percent of that family income, toward such cost for all such children; and of more than 125 percent but not more than 150 percent of State median income, the copayment shall be more than 4 but not more than 7 percent of that family income, toward such cost for all such children. The State shall not require a family with a child that is eligible for a Head Start program under the Head Start Act ( 42 U.S.C. 9831 et seq.) to pay a copayment under this paragraph for any eligible child in the family. .

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