(A) The department of job and family services is hereby designated as the state agency responsible for administration and coordination of federal and state funding for publicly funded child care in this state. Publicly funded child care shall be provided to the following:

1. (1) Recipients of transitional child care as provided under section 5104.34 of the Revised Code;
2. (2) Participants in the Ohio works first program established under Chapter 5107. of the Revised Code;
3. (3) Individuals who would be participating in the Ohio works first program if not for a sanction under section 5107.16 of the Revised Code and who continue to participate in a work activity, developmental activity, or alternative work activity pursuant to an assignment under section 5107.42 of the Revised Code;
4. (4) A family receiving publicly funded child care on October 1, 1997, until the family's income reaches one hundred fifty per cent of the federal poverty line;
5. (5) Subject to available funds, other individuals determined eligible in accordance with rules adopted under section 5104.38 of the Revised Code. The department shall apply to the United States department of health and human services for authority to operate a coordinated program for publicly funded child care, if the director of job and family services determines that the application is necessary. For purposes of this section, the department of job and family services may enter into agreements with other state agencies that are involved in regulation or funding of child care. The department shall consider the special needs of migrant workers when it administers and coordinates publicly funded child care and shall develop appropriate procedures for accommodating the needs of migrant workers for publicly funded child care.

(C) In the use of federal funds available under the child care block grant act, all of the following apply:

1. (1) The department may use the federal funds to hire staff to prepare any rules required under this chapter and to administer and coordinate federal and state funding for publicly funded child care.
2. (2) Not more than five per cent of the aggregate amount of the federal funds received for a fiscal year may be expended for administrative costs.

3. (3) The department shall allocate and use at least four per cent of the federal funds for the following:

   1. (a) Activities designed to provide comprehensive consumer education to parents and the public;
   2. (b) Activities that increase parental choice;
   3. (c) Activities, including child care resource and referral services, designed to improve the quality, and increase the supply, of child care;
   4. (d) Establishing the step up to quality program pursuant to section 5104.29 of the Revised Code.
4. (4) The department shall ensure that the federal funds will be used only to supplement, and will not be used to supplant, federal, state, and local funds available on the effective date of the child care block grant act for publicly funded child care and related programs. If authorized by rules adopted by the department pursuant to section 5104.42 of the Revised Code, county departments of job and family services may purchase child care from funds obtained through any other means.

(E)

1. (1) The director shall adopt rules in accordance with Chapter 119. of the Revised Code establishing both of the following:

   1. (a) Reimbursement ceilings for providers of publicly funded child care not later than the first day of July in each odd-numbered year;
   2. (b) A procedure for reimbursing and paying providers of publicly funded child care.

2. (2) In establishing reimbursement ceilings under division (E)(1)(a) of this section, the director shall do all of the following:

   1. (a) Use the information obtained under division (B)(3) of section 5104.04 of the Revised Code;
   2. (b) Establish an enhanced reimbursement ceiling for providers who provide child care for caretaker parents who work nontraditional hours;
   3. (c) For an in-home aide, establish an hourly reimbursement ceiling;

   4. (d) With regard to the step up to quality program established pursuant to section 5104.29 of the Revised Code, do both of the following:

      1. (i) Establish enhanced reimbursement ceilings for child day-care providers that participate in the program and maintain quality ratings;
      2. (ii) Weigh any reduction in reimbursement ceilings more heavily against providers that do not participate in the program or do not maintain quality ratings.

3. (3) In establishing reimbursement ceilings under division (E)(1)(a) of this section, the director may establish different reimbursement ceilings based on any of the following:

   1. (a) Geographic location of the provider;
   2. (b) Type of care provided;
   3. (c) Age of the child served;
   4. (d) Special needs of the child served;
   5. (e) Whether the expanded hours of service are provided;
   6. (f) Whether weekend service is provided;
   7. (g) Whether the provider has exceeded the minimum requirements of state statutes and rules governing child care;
   8. (h) Any other factors the director considers appropriate.