In this subtitle the following words have the meanings indicated. “Child care center” has the meaning stated in § 9.5–401 of this title. “Child care provider” means a family child care provider or a child care center. “Direct incentive grant” means a grant awarded under the Child Care Quality Incentive Grant Program. “Family child care provider” has the meaning stated in § 9.5–301 of this title.

There is a Child Care Quality Incentive Grant Program administered by the Department. To administer direct incentive grants to child care providers, the Department may contract with other State agencies and nonprofit organizations.

The State Superintendent may delegate the authority to approve direct incentive grants to any board that exists or may be created in the Department. A direct incentive grant made under this subtitle shall be awarded as an incentive for a child care provider to improve the quality of care being provided to children through the purchase of supplies, materials, and equipment.

The grant funds shall consist of: Money specifically appropriated for the Child Care Quality Incentive Grant Program; and Any other money made available to the Child Care Quality Incentive Grant Program. The Child Care Quality Incentive Grant Program shall be used to: Pay all expenses and disbursements authorized by the Department for administering the Child Care Quality Incentive Grant Program; and Award direct incentive grants to child care providers. To be eligible to receive grants under this subtitle, a child care provider must: Possess a certificate of registration or license that is current and not subject to any pending regulatory action, including revocation and suspension; and Not be in arrears in the payment of any money owed to the State, including the payment of taxes and employee benefits. Grants made under this subtitle shall be limited to: Child care centers located in Title I communities; Child care centers where at least 25% of the children enrolled receive subsidies through the purchase of child care program; and Family child care homes and large family child care homes that serve children who receive child care subsidies through the purchase of child care program.

The Department may award a direct incentive grant to an applicant only if: The applicant meets the qualifications required by this subtitle; The direct incentive grant does not exceed $2,500; and Federal funds are available to cover the cost of the grant.

To apply for a direct incentive grant, an applicant shall submit to the Department an application on the form that the Department requires. The application shall include: The name and address of the child care provider; An itemization of known and estimated costs including a statement from the child care provider as to how the grant funds will be used; The total amount of funds required by the provider to purchase supplies, material, and equipment; The funds available to the applicant to purchase supplies, material, and equipment; The amount of direct incentive grant funds sought from the Department; The number of children that the child care provider serves who receive child care subsidies through the purchase of child care program; and Any other relevant information that the Department requests.

Except as otherwise provided in this subtitle, the Department may set the terms and conditions for direct incentive grants. On an annual basis, the Department may establish priorities for the distribution of direct incentive grants based on the categories of children child care providers serve, including infants, toddlers, and preschool and school–age children.

A person may not knowingly make or cause any false statement or report to be made in any application or in any document furnished to the Department under this subtitle. A person may not knowingly make or cause any false statement or report to be made for the purpose of influencing the action of the Department on an application for a direct incentive grant or for the purpose of influencing any action of the Department affecting a direct incentive grant whether or not such a grant may have already been awarded. Any person or any aider or abettor who violates any provision of this subtitle is guilty of a misdemeanor, and on conviction is subject to a fine not exceeding $1,000 or imprisonment in the penitentiary not exceeding 1 year or both.

The State Superintendent shall adopt regulations necessary to carry out the purposes of this subtitle.