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Sec. 47.25.051. Placement; payment by state. (a) Parents or guardians shall select the child care facility for the care of their children. (b) Benefits shall be paid by the department directly to the municipality or organization contracting with the child care facility. (c) The department shall use a market rate study or a cost of care study to establish a subsidy rate for each region served by the program established under AS 47.25.001. The department shall use the subsidy rate to determine the amount of benefits payable by the department under (b) of this section. Sec. 47.25.060. [Renumbered as AS 47.55.060.] Sec. 47.25.070. [Renumbered as AS 47.55.070.] Sec. 47.25.071. Child care grant program. (a) A child care grant program is established in the department to provide state assistance in the operation of child care facilities. The department shall provide grants for the operation of child care facilities, including private nonprofit child care facilities. Participation in the program is optional. (b) To qualify for a grant under (a) or (d) of this section, the child care facility must (1) be currently licensed under AS 47.32 and applicable municipal licensing requirements; (2) participate in the child care assistance program under AS 47.25.001 — 47.25.095; (3) provide care under a payment system as provided in (g) of this section; and (4) be designated as a quality child care facility by the department. (c) [Repealed, § 28 ch 4 SLA 2024; § 44 ch 15 SLA 2024.] (d) In addition to the grants provided in (a) of this section, the department may, subject to appropriations for that purpose, provide by grant or contract for the education and training of child care employees or administrators. To receive a grant or contract under this subsection or to participate in a training program under this subsection, the child care facility must meet all the requirements of (b) of this section. (e) An application for a grant under this section shall be made in a format established by the department. The department shall establish an electronic application for a grant and allow an applicant to submit an application in electronic format or in other formats required by state and federal law. The electronic application must inform an applicant that a false statement made on the application will be investigated and is punishable under AS 11.56.210. (f) A grant under (a) of this section shall be made monthly or quarterly and shall be based on the monthly average daily full-time equivalent enrollment in the child care facility. If the method of payment for the grant is other than monthly, it shall be at the request of the child care facility with the approval of the department. Based on criteria established by the department, the department may make quarterly advance payments. (g) A child care facility receiving a grant under (a) or (d) of this section shall (1) assure that at least 15 percent or one of its child care spaces receiving subsidy under this section, whichever is greater, will be made available, if requested, to children eligible for child care assistance under AS 47.25.001 — 47.25.095, whose parents or guardians wish to pay for