Child Care Services Improvement Act of 1988

Child Care Services Improvement Act of 1988 - Title I: Child Care Block Grant - Amends the Public Health Service Act to establish a child care services block grant program.

Authorizes appropriations for FY 1989 through 1991 for allotments to States to carry out specified child care services activities.

Provides for State allotments on the basis of numbers of children under age 12 and numbers of such children living in households with an income not greater than 200 percent of the poverty level. Provides for additional allotments under specified circumstances.

Requires States to use allotment payments to make grants to eligible entities for specified projects. Includes among eligible entities: (1) local government units, including school districts; (2) nonprofit organizations; (3) professional or employee associations; (4) consortia of small businesses; (5) higher education institutions; (6) hospitals or health care facilities; (7) family care providers; (8) parents, to use for employment- or education-related child care expenses; or (9) entities that the State considers able and appropriate to carry out a project under this title. Includes among such projects: (1) child care certificate programs or scholarships to enable low income families to obtain adequate child care; (2) community or neighborhood child care centers, including renovation of public buildings for such purpose; (3) after-school child care programs; (4) grants or loans for start-up costs of employer-sponsored child care programs; (5) training programs for child care providers; (6) temporary care of sick children unable to attend child care programs in which they are enrolled; (7) expansion of existing part-day child care programs into full-day child care programs; (8) child care programs for homeless children; (9) linking of child care programs with programs to assist the elderly; or (10) any project consistent with the purposes of this Act. Sets forth limitations on the use of such funds and waivers of such limitations.

Directs the Secretary of Health and Human Services (HHS) to provide technical assistance to States in planning and operating activities under this title.

Sets forth provisions for State administration of such funds.

Requires States, in order to receive such funds, to certify that they will: (1) coordinate provision of child care services with other available child care services; (2) agree that such funds will be used to supplement, not supplant, non-Federal funds; (3) establish an advisory council on child care; (4) adopt standards of accreditation or licensing for family-based and group child care providers, and methods of inspection and certification based on such standards; (5) require unaccredited or unlicensed family or home-based child care providers, in order to redeem child care certificates, to register and then to become fully licensed or accredited within two years; and (6) regularly evaluate the impact of its distribution of funds on the quality and availability of child care.

Requires annual State reports to the Secretary on the use of such funds, including specified information on child care in the State. Directs the Secretary of HHS to submit to the Congress an annual summary of such reports, with an analysis of particularly innovative and effective programs and an analysis of efforts to regulate unlicensed child care providers.

Sets forth grant application requirements for eligible entities. Requires assessment of proportional income-based fees, parental involvement, and the meeting of State quality standards. Requires grantees to fund between ten and 50 percent of the project cost with non-Federal funds. Requires States to give priority to projects that will continue to carry out the purposes of this Act without Federal funds.

Requires the State Governor to establish an advisory council on child care.

Directs the Secretary of HHS to conduct, and support by grant or contract: (1) research on the effectiveness of early childhood education and quality child care on child growth and development; and (2) demonstration programs to test the effectiveness of innovative child care arrangements and programs.

Title II: Child Care Liability - Part A: Child Care Liability Reform - Applies the provisions of this part, with specified exceptions, to any civil action, in any State or Federal court, against any child care provider who is in compliance with the licensing or accreditation requirements of the State in which the provider is located.

Makes this part inapplicable to civil actions for intentional torts.

Provides that this part shall preempt and supersede Federal or State law only to the extent such law is inconsistent with this part.

Makes joint and several liability inapplicable to any action subject to this title. Makes an exception for concerted actions.

Provides for reduction of awards for damages in cases of collateral sources of compensation.

Sets forth standards and procedures for award of punitive or exemplary damages in civil actions under this part.

Provides that nonprofit corporations or local educational agencies are not liable for damages in any civil action (to which this part applies) brought against a separate child care-providing corporation or business organization of which they are the parent or majority owners. Encourages States to establish expedited and simplified procedures under which nonprofit organizations and local educational agencies may inexpensively and quickly incorporate or otherwise organize such entities as separate child care providers.

Part B: Child Care Liability Risk Retention Group - Authorizes any State to assist in the establishment and operation of a child care liability risk retention group (i.e. a corporation or other limited liability association whose members are child care providers licensed or accredited pursuant to State or local law or standards, and which otherwise satisfies specified criteria for risk retention groups).

Sets forth State application requirements. Requires State plans to: (1) identify the lead agency designated and responsible for the administration of funds under this part; (2) provide that all participants in the child care liability risk retention group are child care providers who are licensed or accredited pursuant to State or local law or standards; (3) provide for maximum membership of family-based child care providers in the group; (4) provide that the State shall use at least the amount allotted to establish or maintain a liability risk retention group for child care providers; and (5) specify how any such liability risk retention group will continue to be financed after FY 1991, including by contributions by the State or by members of such pool.

Directs the Secretary of HHS to review and approve State plans and to monitor State compliance with requirements of this part. Provides for suspension of payments upon a finding of noncompliance.

Authorizes appropriations for FY 1989 to carry out this part and to remain available for assistance to States for FY 1989 through 1991.

Directs the Secretary of Commerce to reserve specified portions of such funds for payments to specified U.S. territories and for administrative costs. Directs the Secretary of Commerce to allot the remainder to States on the basis of number of children who have not attained the age of 12. Permits a portion of such allotments to be used for State administrative costs.

Sets forth provisions relating to entitlement, method, and State spending of allotment payments.

Title III: Revolving Loan Fund - Sets forth requirements for State applications for assistance under this title. Requires State plans to set forth procedures and requirements whereby persons desiring to make capital improvements to their principal residence in order to become a licensed or accredited family-based child care facility may obtain a loan from the State revolving loan fund. Requires such fund to be administered by the State and to provide loans to qualified applicants, pursuant to terms and conditions the State establishes. Limits the amount of any such loan to $1,500. Requires the State plan to provide that the State establish a revolving loan fund with certain procedures.

Authorizes appropriations for FY 1989 to carry out this title and to remain available for assistance to States for FY 1989 through 1991.

Directs the Secretary of HHS to reserve specified portions of such funds for payments to specified U.S. territories and for administrative costs. Directs the Secretary of HHS to allot the remainder to States on the basis of number of children who have not attained the age of 12. Permits a portion of such allotments to be used for State administrative costs.

Sets forth State application requirements.

Title IV: Amendments to the Internal Revenue Code of 1986 - Child Care Facility Tax Incentive Act of 1988 - Amends the Internal Revenue Code to establish an income tax credit for employers for expenses paid or incurred to acquire, construct, maintain, or operate a qualified child care facility. Requires that such facility be operated by the employer. Requires that at least 30 percent of the facility's enrollees be dependents of employees of such employer. Requires that the facility be located at or near the employer's business premises. Requires that the facility be accredited or licensed under State and local laws. Sets forth special rules for allocation in the case of multiple employers or partnerships and for pass-through in the case of estates and trusts. Limits the amount of such credit. Makes an employer ineligible for such credit if the employer received a child care project grant under the Public Health Service Act during such taxable year.

Entitles earnings from the provision of qualified family-based or in-home child care services to a lower rate of self-employment tax. Excludes such earnings from estimated taxes and wage withholding requirements.

Requires cafeteria plans to provide a child care option.

Provides for an additional double exemption for newborn and newly adopted children where the parent taxpayer (or one of the spouses in the case of a joint return) does not work during the period from the birth or adoption until the child is six months old. Limits such exemption to taxpayers whose adjusted gross income does not exceed 200 percent of the poverty level.

Raises the limitation on the amount which may be contributed to individual retirement accounts for homemakers under provisions for income tax deductions. Provides that such deduction may be allowable even if the spouse is an active participant in a pension plan.

Title V: Miscellaneous Federal Child Care Provisions - Establishes the President's Award for Responsive Management Policy to honor public and private sector employers who have: (1) successfully implemented in their businesses family-oriented personnel programs and policies responsive to the child care needs of working parents; or (2) made significant contributions to child care projects in their communities. Sets forth procedures for nomination, selection, and annual presentation of such awards.

Directs the Secretary of Health and Human Services to coordinate all activities of the Department of Health and Human Services relating to child care, and coordinate such activities with similar activities of other Federal agencies.