Child Care Services Improvement Act of 1989

Child Care Services Improvement Act of 1989 - Title I: Choices for Working Families Credit - Amends the Internal Revenue Code to increase the amount of the earned income tax credit and to adjust it according to the number of children in a family.

Title II: Child Care Block Grant - Subtitle A: Child Care Block Grant - Amends title XX of the Social Security Act to authorize appropriations for FY 1990 through 1992 for allotments to States for grants to eligible entities for child care related projects.

Directs the Secretary of Health and Human Services (the Secretary for purposes of this title) to make allotments to States through a formula based on the number of children under 13 years of age living in a household whose income is not greater than 200 percent of the poverty level, adjusted for family size. Sets the Federal share at 80 percent of the project grants.

Makes eligible for such grants: (1) local government units, including school districts; (2) nonprofit organizations; (3) professional or employee associations; (4) one or more small businesses; (5) higher education institutions; (6) hospitals or health care facilities; (7) family care providers; or (8) entities the State considers able and appropriate to carry out such a project.

Allows a State to make such grants to eligible entities for: (1) child care certificate programs or scholarships enabling low-income families to obtain adequate child care; (2) community or neighborhood child care centers and homes, including renovation of public buildings for such purposes; (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 their regular child care programs; (7) expansion of existing part-day child care programs into full-day child care programs; (8) child care programs for homeless children; and (9) child care programs with programs to assist the elderly.

Requires States to meet specified certification requirements, including establishment of standards of accreditation or licensing for family-based and group child care providers and methods of inspection and certification based on such standards.

Requires annual State reports. Directs the Secretary to summarize State reports annually for the Congress.

Requires grant recipients to cover between ten percent and 50 percent of the project cost with non-Federal funds.

Directs each State Governor to establish an advisory council on child care.

Directs the Secretary to conduct and support: (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 (including at least ten grants to entities in accordance with subtitle B of this title).

Subtitle B: Quality Child Care Demonstration Projects - Authorizes the Secretary to make grants to not more than ten eligible public agencies and private entities, in urban and rural areas, to administer child development models.

Directs the Secretary to report to the Congress by April 1, 1992, on the operation of the child development models that received grants, with a summary of their evaluation reports.

Subtitle C: Revolving Loan Fund - Provides assistance for State-established revolving loan funds to enable family-based child care providers to meet accreditation or licensing standards.

Requires each applicant State to provide in its plan for such assistance to have established a revolving loan fund along with specified procedures and guidelines.

Authorizes appropriations for FY 1990, to remain available for assistance to States for FY 1990 through 1992.

Directs the Secretary to make allotments to States through a formula based on the number of children under 13 years of age.

Title III: Building Blocks for Employer/Employee Child Care Partnerships - Amends the Internal Revenue Code to provide that a plan shall not be treated as a cafeteria plan unless it provides an option to choose benefits under a dependent care assistance program.

Establishes a tax credit for employers who provide qualified child care facilities.

Provides that certain earnings from the provision of qualified family-based or in-home child care services are entitled to: (1) special rules for and a lower rate of self-employment tax; and (2) exemptions from wage withholding and estimated tax requirements (under the Internal Revenue Code and the Social Security Act).

Title IV: Child Care Liability - Subtitle A: Child Care Liability Reform - Applies the provisions of this subtitle, 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.

Sets forth certain defenses, rules, and rights which are not affected by this part.

Makes joint and several liability inapplicable to any action subject to this subtitle. 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 the award of punitive or exemplary damages in civil actions to which this subtitle applies.

Provides that nonprofit corporations or local educational agencies are not liable for damages in any civil action to which this subtitle applies which is 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).

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 1992, including by contributions by the State or by members of such pool.

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

Authorizes appropriations for FY 1990 to remain available for assistance to States for FY 1990 through 1992. Directs the Secretary of Commerce to allot funds to States on the basis of the number of children under 13 years of age.

Title V: President's Award for Responsive Management Policy - 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 child care needs of working parents; or (2) made significant contributions to child care projects in their communities. Directs the President, through the Secretary of Labor, to solicit nominations.