§ 410-u. Establishment of block grant for child care. 1. The
department shall establish a state block grant for child care comprised
of all of the federal funds appropriated for child care under title IV-A
of the federal social security act and under the federal child care and
development block grant act and any additional federal funds that the
state chooses to transfer from the federal family assistance to needy
families block grant to the child care and development block grant plus
any state funds appropriated for the provision by social services
districts of child care assistance to families in receipt of family
assistance and other low income families and for activities to increase
the availability and/or quality of child care programs.

2. The state block grant for child care shall be divided into two
parts pursuant to a plan developed by the department and approved by the
director of the budget. One part shall be retained by the state to
provide child care on a statewide basis to special groups and for
activities to increase the availability and/or quality of child care
programs, including, but not limited to, the start-up of child care
programs, the operation of child care resource and referral programs,
training activities, the regulation and monitoring of child care
programs, the development of computerized data systems, and consumer
education, provided however, that child care resource and referral
programs funded under title five-B of article six of this chapter shall
meet additional performance standards developed by the department of
social services including but not limited to: increasing the number of
child care placements for persons who are at or below eighty-five
percent of the state median income, with emphasis on placements
supporting local efforts in meeting federal and state work participation
requirements, increasing technical assistance to all modalities of legal
child care to persons who are at or below eighty-five percent of the
state median income, including the provision of training to assist
providers in meeting child care standards or regulatory requirements,
and creating new child care opportunities, and assisting social services
districts in assessing and responding to child care needs for persons at
or below eighty-five percent of the state median income. The department
shall have the authority to withhold funds from those agencies which do
not meet performance standards. Agencies whose funds are withheld may
have funds restored upon achieving performance standards. The other part
shall be allocated to social services districts to provide child care
assistance to families receiving family assistance and to other low
income families.

3. Notwithstanding any other provision of law, expenditures of funds
from the block grant shall be governed by this title.