Page:United States Statutes at Large Volume 104 Part 2.djvu/642

 104 STAT. 1388-234 PUBLIC LAW 101-508 —NOV. 5, 1990 "(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.

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