Ordaz Bill Tests Child-Care Grants In Up To Six Regions

The text as introduced · 1,686 words

89R8662 MM-F

By: Ordaz
H.B. No. 5086

A BILL TO BE ENTITLED

AN ACT

relating to establishing a pilot program to increase the supply of

child-care services and encourage employer partnerships to meet

strategic workforce needs in certain regions of the state.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle B, Title 4, Labor Code, is amended by

adding Chapter 320 to read as follows:

CHAPTER 320. CHILD-CARE INNOVATION PILOT PROGRAM

Sec. 320.001. DEFINITIONS. In this chapter:

(1) "Board" means a local workforce development board

created under Subchapter F, Chapter 2308, Government Code.

(2) "Program" means the child-care innovation pilot

program established under this chapter.

(3) "Provider" means a child-care provider who is

engaging with the program established under this chapter.

Sec. 320.002. ESTABLISHMENT. (a) The commission shall

establish and administer the child-care innovation pilot program to

address strategic workforce needs of designated pilot regions

across the state by increasing the supply of quality, affordable

child care and encouraging child-care partnerships with employers.

(b) The program shall enable boards designated by the

commission to partner with local employers and high-quality

providers to provide grants that will fund innovative child-care

expansion projects and employer partnerships that directly impact

strategic local workforce needs.

Sec. 320.003. ADMINISTRATION. The commission shall by rule

adopt a process for selecting each pilot region in which the program

will be administered by the local board, including a competitive

application process.

Sec. 320.004. APPLICATION; STRATEGIC PLAN. (a) A board

applying to participate in the program shall submit:

(1) a strategic plan proposing:

(A) measurable performance goals and progress

measures related to increasing the supply and accessibility of

quality, affordable child-care services;

(B) plans for engaging regional stakeholders,

including local employers, business associations, and

organizations that provide services to children and families, to

develop and meet regional performance goals that are based on

strategic workforce needs;

(C) the number of providers to whom the board

plans to award grants;

(D) staffing structures to support the effective

implementation of the program, including technical assistance for

child-care providers; and

(E) plans to maximize the results of the program

and support the future sustainability of child-care providers

participating in the program if state funding is not continued; and

(2) the total amount of money requested to implement

the board's strategic plan.

(b) A board may apply for the program under more than one

population category described by Section 320.005(a) but may only be

approved for participation based on one category.

Sec. 320.005. SELECTION; CRITERIA. (a) The commission

shall select not more than six boards to participate in the program

and ensure that the program is implemented in communities that

represent at least one of each of the following population sizes:

(1) a region with a population of more than 50,000;

(2) a region with a population of more than 10,000 and

less than 50,000; and

(3) a region with a population of less than 10,000.

(b) In selecting the boards to participate in the program,

the commission shall consider:

(1) the board's ability to demonstrate an unmet, local

workforce need for:

(A) child-care services in specific geographic

regions;

(B) child-care services for specific

populations, including infant care, toddler care, nontraditional

hours care, or care for students with disabilities; or

(C) child-care services described by Paragraphs

(A) and (B);

(2) whether the board has broad regional support from

diverse stakeholders, including private sector employers,

child-care providers, local governments, and parents to

participate in the program;

(3) the board's ability to leverage local funding or

partnerships to supplement state resources; and

(4) the strength of the board's proposed strategic

plan, as described by Section 320.004.

Sec. 320.006. AGREEMENTS WITH PARTICIPATING BOARDS. The

commission shall develop and enter into a performance agreement

with each board selected to participate in the program. Each board

shall comply with the terms of the performance agreement during its

participation in the program. The performance agreement must:

(1) include measurable performance goals and progress

measures that are:

(A) related to increasing the supply and

accessibility of quality, affordable child-care services in the

pilot region; and

(B) aligned to the board's strategic plan; and

(2) allocate responsibilities for accessing and

reporting progress and outcome information.

Sec. 320.007. ALLOCATION OF FUNDS. From the funds

appropriated to the commission for the program, the commission

shall award an amount of money to each board participating in the

program. In determining the allocation of money, the commission

shall consider:

(1) the size and population of the pilot region;

(2) the unmet child-care needs in the region and the

proposed funding required to address the needs;

(3) the proposed number of eligible providers in each

region to whom the board intends to award grants;

(4) the budget requested in the board's proposed

strategic plan under Section 320.004(a)(2); and

(5) other factors determined by the commission.

Sec. 320.008. GRANTS. (a) From funds awarded to a board

participating in the program, the board, after conducting a

competitive selection process, shall award grants to eligible

providers that enter into a grant contract with the board to expand

quality, affordable child-care services in accordance with the

region's strategic workforce needs and the board's approved

strategic plan.

(b) In awarding a grant under the program, a board shall

give preference to an eligible provider that demonstrates capacity

to:

(1) provide high-demand child-care services

identified by the board; and

(2) partner with one or more local employers.

Sec. 320.009. PROVIDER ELIGIBILITY. (a) To be eligible to

receive a grant under the program, a child-care provider must:

(1) be a Texas Rising Star Program provider with a

three-star rating or higher;

(2) be accredited by the National Association for the

Education of Young Children;

(3) have an accreditation from a Montessori

accreditation organization; or

(4) meet an alternative quality criterion or waiver

prescribed by the commission.

(b) In consultation with local employers and other regional

stakeholders, the board shall develop a competitive application and

scoring process for eligible providers to apply for a grant under

the program to meet the goals in the board's approved strategic plan

under Section 320.004.

(c) A board shall develop and enter into a grant contract

with each eligible provider awarded a grant under the program. Each

eligible provider awarded a grant shall comply with the terms of the

grant contract. At a minimum, grant contracts must require eligible

providers to:

(1) maintain the ability to enroll the required number

of children within each designated service area outlined in the

board's grant contract;

(2) ensure all educators employed by the provider earn

a minimum wage that is equal to or above the self-sufficient wage

required by Section 2308A.012, Government Code, in the county in

which the provider is located;

(3) maintain participation in the child-care services

program administered by the commission and accept participating

students as openings become available;

(4) maintain tuition rates at the provider's posted

rate or at a rate lower than the posted rate for families who do not

receive subsidized child-care services;

(5) maintain all eligibility requirements of the

program;

(6) provide regular reports demonstrating compliance

with the board's grant contract; and

(7) provide any additional data requested by the

board.

Sec. 320.010. SUBCONTRACTING. (a) In accordance with

Section 2308.264(e), Government Code, a board may subcontract with

a coordinating entity to administer the program.

(b) The commission may adopt rules establishing

requirements for a coordinating entity with which a board

subcontracts under this section.

Sec. 320.011. USE OF FUNDS. (a) From money appropriated by

the legislature to implement the program, the commission may use

not more than:

(1) 15 percent of the total amount appropriated to pay

costs related to administering the program, including technical

assistance provided to providers under the program; and

(2) 2 percent of the total amount appropriated to pay

costs related to research and evaluation of the program.

(b) The commission shall use at least 83 percent of the

total amount appropriated for grants administered under the

program.

(c) The commission shall adopt rules relating to the award

of grants under the program that are designed to maximize the impact

of the program and ensure the funding is sufficient to execute on

the terms of the grant contract.

(d) In awarding a grant under the program, the commission or

boards may adjust reimbursement rates as necessary to account for

the costs of providing care to specialized populations, including

students with disabilities, infants, toddlers, and students

needing after-hours care.

(e) Each board participating in the program shall ensure

that all grant money has been allocated not later than December 31,

2028.

(f) In addition to funds appropriated by the legislature, to

administer and expand the impact of the program, the commission or

boards may:

(1) seek and apply for any available federal or local

funds; and

(2) solicit and accept gifts, grants, and donations

from any other public or private source.

Sec. 320.012. QUARTERLY REPORT TO THE COMMISSION. (a) Each

board participating in the program shall submit a quarterly report

to the commission, detailing the use of grant money received under

the program and related outcomes, including:

(1) a list of providers receiving grant money and the

provider's monthly grant awards;

(2) each provider's compliance with performance goals

outlined in the provider's grant contract with the board; and

(3) the board's progress toward outcomes identified in

the approved strategic plan under Section 320.004.

(b) A board shall submit the first report required by this

section not later than the 120th day after the date the board awards

its first grant under the program and submit subsequent reports

every 120 days thereafter.

Sec. 320.013. REPORT. Not later than December 1, 2028, the

commission shall review the effectiveness of the program and submit

to the governor, the lieutenant governor, the speaker of the house

of representatives, and the members of each legislative standing

committee with primary jurisdiction over economic development a

written report regarding the outcomes, challenges, and

opportunities of the program.

Sec. 320.014. RULES. The commission shall adopt rules

necessary to implement this chapter.

Sec. 320.015. EXPIRATION. This chapter expires September

1, 2029.

SECTION 2. This Act takes effect September 1, 2025.