West’s bill setting rules for a child care fund

The text as introduced · 675 words

By: West
S.B. No. 1739

A BILL TO BE ENTITLED

AN ACT

relating to use and operation of the childcare protection and

enhancement fund.

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

SECTION 1. Title 4, Labor Code, Chapter 302, is amended by

adding Section 302.0052 to read as follows:

Sec. 302.0052 CHILD CARE PROTECTION AND ENHANCEMENT FUND.

DEFINITIONS. In this chapter:

(1) "Fund" means the child care protection and

enhancement fund established under Section 49-r, Article III, Texas

Constitution.

(2) "Trust company" means the Texas Treasury

Safekeeping Trust Company.

(3) "Agency" means the Texas Workforce Commission.

Sec. 302.0053. ADMINISTRATION AND MANAGEMENT OF FUND. (a)

The child care protection and enhancement fund is a trust fund held

outside the treasury by the trust company and administered by the

department for the purpose of the expansion of childcare capacity

and enhancement of subsidized childcare rates.

(b) The trust company shall hold and invest the fund, taking

into account the purposes for which the money in the fund may be

used. The overall objective for the investment of the fund is to

maintain sufficient liquidity to meet the needs of the fund.

(c) The expenses of managing the fund and its assets shall

be paid from the fund. Except as otherwise provided by this chapter

and Section 49-r, Article III, Texas Constitution, money in the

fund may not be used for any other purpose.

(d) In managing the assets of the fund, through procedures

and subject to restrictions the trust company considers

appropriate, the trust company may acquire, exchange, sell,

supervise, manage, or retain any kind of investment that a prudent

investor, exercising reasonable care, skill, and caution, would

acquire or retain in light of the purposes, terms, distribution

requirements, liquidity requirements, and other circumstances of

the fund then prevailing, taking into consideration the investment

of all the fund assets rather than a single investment. The fund

may be invested with the state treasury pool and may be pooled with

other state assets for purposes of investment.

(e) The department shall provide the trust company with a

cash flow forecast at least annually, and more frequently as

appropriate, to ensure the trust company is able to satisfy the

objectives specified by Subsection (b).

Sec. 302.0054. DISTRIBUTION. The agency shall annually

request from the trust company a distribution from the fund in the

amount equal to the interest earned on the fund for the purpose of

increasing both capacity and rates for subsidized childcare in this

state.

Sec. 302.0055. STIPULATIONS ON USE OF FUND. (a) The Texas

Workforce Commission must submit to the Texas Workforce

Commissioners and the Texas Comptroller of Public Accounts a

request for approval of a proposed disbursement and how that

disbursement will be used to increase subsidized childcare rates

and capacity in this state.

(b) A request under this section shall be considered

approved on the 30th day after the date the request is submitted

unless the request is approved or disapproved before that date.

Sec. 302.0056. PROHIBITED EXPENDITURES. Money in the fund

may not be used:

(1) to pay salaries, employee benefits, costs

associated with employee benefits, or administration, operating,

or program costs of the department; or

(2) for the maintenance or operation of a state

agency.

Sec. 302.0057. EXPENDITURES SUBJECT TO AUDIT. All

expenditures by the agency under this chapter are subject to audit

by the state auditor.

Sec. 302.0058. STRATEGIC PLAN. The department shall

include in each strategic plan submitted under Section 2056.002,

Government Code, a report on each acquisition funded using money in

the fund during the two-year period preceding the date on which the

department submits the plan.

SECTION 2. This Act takes effect January 1, 2026, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, providing for the creation of the child care

preservation and enhancement fund to be used for the increase in

capacity and increase in subsidized childcare rates is approved by

the voters. If that amendment is not approved by the voters, this

Act has no effect.