Family and Community-Centered Child Care Options Act of 1988

Family and Community-Centered Child Care Options Act of 1988 - Title I: Child Care Grant Programs - Authorizes the Secretary of Health and Human Services (the Secretary) to make grants to States to pay the Federal share of the cost of making child care grants under the following school-based, coalition demonstration, and project programs.

Establishes a school-based child care grants program for demonstration projects conducted in existing elementary and secondary school buildings, including projects for: (1) on-site child care for children ages three through 12; (2) a fee-scale family support system for parents of new-born infants; and (3) support for local family day care providers. Sets the Federal share at 90 percent for the first year and 75 percent for each subsequent year, and allots a specified amount for such program.

Establishes a coalition demonstration grants program to pay startup costs incurred by nonprofit entities, and small businesses with fewer than 30 employees, that collaborate to establish child care. Sets the Federal share at 60 percent for each fiscal year, and allots a specified amount for such program.

Establishes a child care project grants program to: (1) upgrade child care programs to meet State and local licensing standards; (2) train and provide technical assistance to day care providers to meet such standards; (3) promote improved standards and training for infant care; (4) provide educational services in health, nutrition, and child abuse prevention for day care providers and parents; (5) provide grants for schools to establish or expand afterschool activities for fifth through eighth grade students, targeted at disadvantaged students and subject to income standards; (6) equip child care facilities to meet the special needs of handicapped or sick children through equipment and personnel training; (7) provide startup and upgrade costs for State Resource and Referral Centers; and (8) provide child care assistance through certificate programs or scholarships that enable low-income families to obtain adequate child care.

Sets the Federal share at 75 percent for each fiscal year, and allots a specified amount for such program. Reserves at least half of such allotment for the certificate programs or scholarships for low-income families.

Provides for allotments to States from funds under this title, on the basis of formulas relating to numbers of children and families and indices of tax effort and tax capacity. Counts the number of children aged zero to ten, inclusive, in families with income below the poverty level. Counts the number of families with one or more children aged zero to ten, inclusive, and with: (1) a single woman parent, who is in the labor force, as the family's head; or (2) two parents, both of whom are in the labor force. Provides for determination of the tax capacity and tax effort indices, reallotments, and availability of allotments for expenditure.

Sets forth requirements for State applications for grants. Requires each State to appoint an Advisory Committee, with representatives of certain groups, to advise and consult in application preparation, monitoring, and evaluation of grant projects. Limits the amount which may be used for administrative costs.

Provides for Federal payments to States. Allows the non-Federal share of program costs to be in cash or in kind.

Directs the Secretary to establish a National Commission on Child Care, with members representing specified groups to be appointed by the President. Sets forth provisions for Commission personnel, reimbursement and oversight. Requires the Commission to: (1) review Federal and State policies with respect to child care services and other appropriate data; (2) within one year after its establishment, submit to the Secretary proposed guidelines for the Federal Government for child care program (to be made available to States on request); and (3) report to the appropriate congressional committees on the need for legislation to carry out this Act. Requires such guidelines to: (1) set forth separate recommended provisions for center-based programs and for family day care programs; (2) consider the different needs of the various ages of children; and (3) include specified factors. Termines the Commission 90 days after its submission of such child care guidelines.

Authorizes appropriatios for FY 1989 through 1991 to carry out this title.

Title II: Child Care Liability - Subtitle 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.

Subtitle 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: Mortgages on Properties Including Day Care Centers - Amends the Federal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act to include under the definition of mortgages and home mortgages, and under the definition of residential mortgage, any loan (or advance of credit, in the case of a residential mortgage) that is secured by a single family residential property that is occupied as a single family residence in which community child care service is provided in compliance with all applicable State or local laws if the loan (or advance) is otherwise eligible for purchase under specified provisions of such Act.

Title IV: Amendments to the Internal Revenue Code of 1986 - Child Care Tax Incentive Act of 1988 - Amends the Internal Revenue Code to provide an additional personal exemption for a child under the age of five (and 50 percent of such additional exemption for each such additional child) where the parent taxpayer (or one of the spouses in the case of a joint return) has the same home as the child and does not work for remuneration.

Establishes an income tax credit for employers for expenses paid or incurred to acquire, construct, maintain, or operate a qualified child care facility. Makes such qualified employer-provided child care facility credit equal to: (1) 20 percent of the qualified child care expenses for the taxable year; or (2) 25 percent of such expenses if the employer and child care facility are located in an Enterprise Zone. Limits the amount of such credit to not more than $100,000 per taxable year, and reduces such maximum amount by the amount of prior year expenditures taken into account for purposes of previous such credits for such 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. Provides for basis adjustments. Sets forth provisions and special rules for recapture of such credit. Sets forth special rules for aggregation of expenditures, treating as a single taxpayer: (1) all members of the same controlled group of corporations; or (2) all trades or businesses under common control. 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. Sets forth a special rule for pass-through of credit for specified types of individuals. 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. Applies such credit to taxable years beginning after December 31, 1988, on expenditures made on or before December 31, 1993.

Establishes a child care homes tax credit. Grants home providers of such care a credit for expenditures to acquire, construct, rehabilitate, or expand a qualified child care home to meet State or local requirements. Sets such credit at 20 percent of up to $1,000 of such expenditures over a five-year period. Provides for taking account of prior year expenditures and credits in determining such limitation. Defines a qualified child care home as one: (1) operated by the taxpayer for the care of enrollees; (2) in the principal residence of the taxpayer; and (3) meeting all applicable State and local requirements. Provides for basis adjustments. Sets forth provisions and special rules for recapture of such credit. Applies the credit to taxable years beginning after December 31, 1988, on expenditures made on or before December 31, 1992.

Entitles earnings from the provision of qualified family-based or in-home child care services to a lower rate of self-employment tax.

Provides that, for purposes of qualifying for tax-exempt bond financing of nonprofit organization child care facilities, operation of a child care facility for at least 30 children shall not constitute an unrelated trade or business.

Title V: Miscellaneous - Authorizes each State receiving funds under this Act to establish a State Resource and Referral Center and assist such Center to provide: (1) identification of existing child care services; (2) information and referral to interested parents; (3) information, training, and technical assistance to existing and potential child care providers and others concerned with the availability of child care; (4) information on the demand and supply of child care services within the community; and (5) technical assistance to new child care providers, for budgeting and for complying with applicable regulations and tax and other relevant policies. Sets forth eligibility requirements for an organization to be recognized as a Center. Requires a Center to gather, update, and provide specified types of information relating to child care services. Prohibits a Center from providing such information about any child care programs or services not complying with State and local laws.

Establishes the President's Award for Excellence in Child Care to honor public and private sector employers and child care providers who have: (1) sucessfully implemented a child care program or policy responsive to children's and parents' needs; or (2) made significant contributions to child care in their communities. Sets forth procedures for nomination, selection, and annual presentation of such awards.