Tennessee House Bill HB1502

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 2/2/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 50 and Title 56, relative to childcare assistance.

Impact

The bill establishes an Employee Child Care Assistance Partnership fund, which will consist of appropriations by the General Assembly, as well as various contributions from employers and grants. This fund will ensure the state can match employer contributions towards childcare costs, albeit with specific income-based criteria determining the level of state match. For employees with household incomes at or below the state median, the bill provides for a match of up to 100% of the employer’s contribution. However, this support gradually decreases for higher income brackets, which aims to align state assistance with department goals for economic equity.

Summary

House Bill 1502, known as the Employee Child Care Assistance Partnership Act, seeks to amend various sections of the Tennessee Code Annotated regarding child care assistance. The central objective of this bill is to support families by encouraging employers to contribute toward the childcare costs of their employees. This initiative reflects a public-private partnership aimed at relieving the financial burden on working families and enhancing access to childcare services. Through this act, a structured program will be established under the oversight of the Department of Human Resources, which will manage funds allocated for childcare assistance and mediate agreements between employers, employees, and childcare providers.

Contention

Potential points of contention surrounding HB1502 may arise regarding the regulation of employer contributions and the means by which the funds are allocated. Small businesses are specifically highlighted as a focus for at least 25% of the total fund distribution. Critics may contend that relying heavily on employer participation could disadvantage low-income employees or those in non-traditional employment arrangements, such as freelancers or contract workers, who may not have access to such benefits. Moreover, administrative oversight and the practicality of managing the fund may also be debated, particularly concerning how effectively funds are utilized and whether the program's requirements could unduly burden small employers.

Enforcement

Enforcement provisions within the bill will include reporting requirements for employers and childcare providers, ensuring compliance and tracking of contributions made under the program. There are also penalties prescribed for intentionally falsifying information to gain benefits from the program, which could impact the overall integrity of the initiative. Furthermore, the Department of Human Resources is tasked with creating confidentiality protocols to protect the personal data of all parties involved in this partnership, indicating a focus on safeguarding employee information as it pertains to financial assistance.