Child-Care Match Bill Waits Until 2029 For Its Rules

The text as introduced · 2,121 words

90R265 MM-D

By: Garcia Hernandez
H.B. No. 525

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the employer child-care contribution

partnership program administered by the Texas Workforce

Commission; authorizing a civil penalty.

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

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

adding Chapter 318 to read as follows:

CHAPTER 318. EMPLOYER CHILD-CARE CONTRIBUTION PARTNERSHIP PROGRAM

Sec. 318.001. DEFINITION. In this chapter, "program" means

the employer child-care contribution partnership program

established under this chapter.

Sec. 318.002. ESTABLISHMENT. The commission shall

establish and administer the employer child-care contribution

partnership program to support families in this state in accessing

high-quality child care by incentivizing eligible employers to

contribute to eligible employee child-care costs and providing a

state match for funds contributed by eligible employers.

Sec. 318.003. ADMINISTRATION. (a) The commission shall:

(1) adopt rules and establish procedures necessary to

administer the program, including:

(A) a standardized agreement for use by

employers, employees, and child-care providers to apply for and

enroll in the program;

(B) eligibility and income verification

procedures for employees;

(C) eligibility criteria for child-care

providers, including quality standards;

(D) procedures for notifying each party to the

agreement of:

(i) the results of an eligibility

determination; and

(ii) the party's enrollment in the program

as soon as practicable after receiving and processing the agreement

and determining each party's eligibility;

(E) procedures for determining the amount of the

state match in accordance with Section 318.009(b) and notifying the

employee and the child-care provider regarding the amount;

(F) procedures for prioritizing and approving

agreements, including maintaining a waitlist;

(G) procedures for notifying the commission and

the parties to the agreement regarding termination of the agreement

by any party;

(H) procedures for notifying the commission and

the parties to the agreement regarding nonpayment by any party;

(I) procedures for recouping state match money or

a portion of state match money if there is an overpayment to a

participating child-care provider;

(J) criteria for disqualifying participants from

the program;

(K) procedures for hearing appeals from program

participants;

(L) procedures for issuing and logging payments

to a participating child-care provider; and

(M) criteria and procedures for modifying or

terminating an agreement, including:

(i) if the relationship between the

employee and employer is severed;

(ii) if an employer fails to make a

contribution in accordance with the terms of the agreement; and

(iii) if a child-care provider ceases

participation or otherwise becomes ineligible to participate in the

program;

(2) ensure confidentiality protocols to safeguard the

personal information of participating employers, employees, and

child-care providers, including ensuring that an employee's

personal information is not disclosed without the employee's

written consent;

(3) maintain records regarding the balance of the

program fund for each fiscal year and all payments made from the

fund;

(4) develop informational material regarding the

program's objectives, benefits, and eligibility requirements and

distribute the material to employers, employees, and child-care

providers; and

(5) maintain a waitlist if the money in the program

fund is insufficient to approve all agreements received and provide

a state match in accordance with Section 318.009(b).

(a-1) The commission shall convene a work group to assist

the commission in developing the rules under Subsection (a). The

work group must include:

(1) child-care providers;

(2) community stakeholders;

(3) employers; and

(4) at least one parent of a child who receives care

from a child-care provider.

(a-2) Subsection (a-1) and this subsection expire September

1, 2029.

(b) The commission may:

(1) delegate an administrative duty under the program

to a division of the commission;

(2) coordinate and share information with other state

agencies; and

(3) in accordance with other law, procure grants from

or contracts with third parties to administer the program or parts

of the program.

(c) The commission shall implement the program and issue a

state match under Section 318.009(b) in a state fiscal year only if

the legislature specifically appropriates money to the commission

for that fiscal year for that purpose. The commission may implement

the program and issue a state match using other money available to

the commission for that purpose.

Sec. 318.004. EMPLOYER DUTIES. An employer who provides

child-care assistance to an employee as a benefit of employment may

participate in the program by entering into an agreement described

by Section 318.007 with an eligible employee and child-care

provider. The employer shall:

(1) provide at least 20 percent of the cost of the

employee's child care as the employer contribution;

(2) enter into a standardized agreement under Section

318.007 with an eligible employee and child-care provider;

(3) submit the agreement to the commission for

verification of eligibility and approval;

(4) submit any additional information the commission

considers necessary; and

(5) on verification and approval of the agreement by

the commission, make contributions to the employee's eligible

child-care costs in accordance with commission guidelines.

Sec. 318.005. EMPLOYEE DUTIES. (a) An employee shall

complete an agreement described by Section 318.007 with the

employee's employer and a child-care provider and provide any

additional information the commission considers necessary.

(b) The employee shall pay the child-care provider the cost

of child-care services not covered by the employer's contribution

and the state match.

(c) If the amount of an employee's employer contribution and

state match provided under the employee's agreement are

insufficient to pay all of the employee's child-care costs, the

employee may combine those amounts with the employer contribution

and state match money provided under an agreement made under the

program by a member of the employee's household or family to pay the

total costs, provided that combining the amounts does not result in

overpayment to the child-care provider.

Sec. 318.006. PROVIDER ELIGIBILITY. To be eligible to

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

(1) be a high-quality program as determined by the

commission; and

(2) enter into an agreement described by Section

318.007.

Sec. 318.007. PROGRAM AGREEMENTS. The commission shall

create a standardized agreement for use by employers, employees,

and child-care providers participating in the program, to be

completed and agreed to by each party. The agreement must include:

(1) the name, physical location, size, and industry of

the employer;

(2) the name and phone number of the employer's point

of contact;

(3) the name and physical location of the child-care

provider;

(4) the name and phone number of the child-care

provider's point of contact;

(5) the name and home address of the employee;

(6) the total amount of the child-care contribution to

be paid by the employer to the child-care provider, either directly

or through a third-party vendor;

(7) the total amount of the state match to be paid to

the child-care provider, either directly or through a third-party

vendor;

(8) the duration of the agreement;

(9) the frequency of the contribution to be made

directly to the child-care provider; and

(10) demographic information about the employee.

Sec. 318.008. PROGRAM FUND. (a) The program fund is a

dedicated account in the general revenue fund administered by the

commission.

(b) The program fund consists of:

(1) money appropriated by the legislature for deposit

to the credit of the fund for the purposes of this chapter;

(2) interest earned on the investment of money in the

fund;

(3) the proceeds of civil penalties collected under

Section 318.011; and

(4) gifts, grants, and donations received by the

commission for the purposes of this chapter.

(c) Money in the fund may be appropriated only to the

commission for purposes authorized by this chapter.

(d) In each state fiscal year and to the greatest extent

practicable, at least 25 percent of the total amount appropriated

from the fund for that year must be distributed under agreements

with employers with fewer than 50 full-time employees.

(e) During the state fiscal year ending August 31, 2028, not

more than 10 percent of the total amount deposited to the credit of

the fund in that fiscal year must be appropriated to the commission

to establish the program. In each subsequent state fiscal year,

money in the fund may be appropriated to the commission to

administer the program as follows:

(1) if the total amount of money available for

appropriation from the fund in that state fiscal year is more than

$50 million, not more than five percent of that amount may be used

to administer the program;

(2) if the total annual amount of money available for

appropriation from the fund in that state fiscal year is more than

$10 million but not more than $50 million, not more than 10 percent

of that amount may be used to administer the program; and

(3) if the total annual amount of money available for

appropriation from the fund in that state fiscal year is not more

than $10 million, not more than 15 percent of that amount may be

used to administer the program.

Sec. 318.009. STATE MATCH. (a) On verifying the

eligibility of an employer, employee, and child-care provider and

the agreement between the parties, the commission shall issue a

state match in accordance with this section from the program fund to

a child-care provider in accordance with the terms of the

agreement. The commission may distribute the state match money

directly or through a third-party vendor, as applicable.

(b) The commission may approve an agreement and issue a

state match only if there is sufficient money in the program fund to

pay the costs under the agreement and the money has been

appropriated to the commission for that purpose.

(c) Subject to Subsection (b), the commission shall provide

a state match equal to the contribution made by the employee's

employer if the employee has a median household income that does not

exceed the median state household income.

(d) If the employee's median household income exceeds the

median state household income, the commission shall provide a state

match as follows:

(1) 90 percent of the employer's contribution for an

employee whose household income is less than or equal to 120 percent

of the median household income;

(2) 80 percent of the employer's contribution for an

employee whose household income is greater than 120 percent but

less than or equal to 140 percent of the median household income;

(3) 70 percent of the employer's contribution for an

employee whose household income is greater than 140 percent but

less than or equal to 160 percent of the median household income;

(4) 60 percent of the employer's contribution for an

employee whose household income is greater than 160 percent but

less than or equal to 180 percent of the median household income;

and

(5) 50 percent of the employer's contribution for an

employee whose household income is more than 180 percent of the

median household income.

(e) A state match issued under the program and administered

by the commission may not be considered compensation for an

employee's service.

Sec. 318.010. REPORTS. (a) The commission shall publish

and submit to the legislature a report detailing the efficacy of the

program not later than December 15 of each even-numbered year. The

report must include the following information about the program:

(1) the amount appropriated to the program fund during

the preceding state fiscal year;

(2) the total number of standardized agreements

submitted by employers;

(3) the total amount of state matches paid out of the

program fund, disaggregated by county;

(4) information regarding the size, geographical

location, and industry type of employers who participated in the

program;

(5) the number, license type, quality rating level,

and geographical distribution of participating child-care

providers;

(6) average cost for services charged by child-care

providers participating in the program and information regarding

the amount by which those costs have increased or decreased during

the most recent reporting period compared with previous reporting

periods;

(7) the number and total dollar value of agreements

not approved by the commission; and

(8) demographic information regarding employees

participating in the program.

(b) Not later than January 1, 2029, the commission shall

publish and submit to the legislature a report detailing the

commission's plan for implementing the program. This subsection

expires September 1, 2029.

Sec. 318.011. FALSE INFORMATION; CIVIL PENALTY. A person

who intentionally provides false information to the commission for

purposes of receiving the benefits of the program shall be subject

to a civil penalty of not more than $500 per violation. All money

collected as a result of penalties assessed under this section

shall be paid into the state treasury and credited to the employee

child-care assistance program fund.

SECTION 2. Not later than January 1, 2029, the Texas

Workforce Commission shall adopt any rules necessary to administer

the employer child-care contribution partnership program

established under Chapter 318, Labor Code, as added by this Act.

SECTION 3. This Act takes effect September 1, 2027.