Child-Care Pilot Bill Puts One Bracketed County First In Line

The text as introduced · 1,664 words

By: Bumgarner
H.B. No. 5529

A BILL TO BE ENTITLED

AN ACT

relating to establishing a child-care innovation pilot program.

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. (a) From funds appropriated

to the commission for the program, the program shall be

administered by local workforce development boards that serve:

(1) a county with a population greater than 2 million

that is adjacent to a county with a population greater than 2.5

million, or

(2) two or more counties adjacent to subsection (1).

(b) If the commission determines there are additional funds

available after funding the local workforce development boards in

Subsection (a), the commission shall by rule adopt a process for

selecting additional local workforce development boards to operate

the pilot. Rulemaking shall include a competitive application

process and selection criteria.

Sec. 320.004. APPLICATION; STRATEGIC PLAN. (a) Any local

workforce development board that participates in the program shall

submit a letter of intent to the commission including:

(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

that board's strategic plan.

Sec. 320.005. AGREEMENTS WITH PARTICIPATING BOARDS. The

commission shall develop and enter into a performance agreement

with each participating local workforce development board. Each of

those boards 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 that 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 local workforce development

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 that board intends to award grants;

(4) the budget requested in that 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 local

workforce development 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

local workforce development board's approved strategic plan.

(b) In awarding a grant under the program, a local workforce

development 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) A provider under Subsection (a) may not be owned or

operated by the organization that administers grants for the local

workforce development board under the state child care services

program administered by the commission.

(c) 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.

(d) A local workforce development 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

children 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 program eligibility requirements;

(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 local workforce

development 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) 9 percent of the total amount appropriated to pay

costs related to administering the program by the commission and

participating local workforce development boards, including

technical assistance provided to providers under the program; and

(2) 1 percent of the total amount appropriated to pay

costs related to research and evaluation of the program.

(b) The commission shall use at least 90 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

local workforce development boards may adjust reimbursement rates

as necessary to account for the costs of providing care to

specialized populations, including children with disabilities,

infants, toddlers, and children needing after-hours care.

(e) Each local workforce development board participating in

the program shall ensure that all grant money has been allocated not

later than December 31, 2027.

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

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

local workforce development 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

local workforce development 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) that board's progress toward outcomes identified

in the approved strategic plan under Section 320.004.

(b) A local workforce development 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 to a provider under

the program and submit subsequent reports every 120 days

thereafter.

Sec. 320.013. REPORT. Not later than December 1, 2026, 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. The Texas Workforce Commission is required to

implement a provision of this Act only if the legislature

appropriates money specifically for that purpose. If the

legislature does not appropriate money specifically for that

purpose, the commission may, but is not required to, implement a

provision of this Act using other appropriations that are available

for that purpose.

SECTION 3. This Act takes effect September 1, 2025.