87R8188 MCK-D By: Lopez H.B. No. 1964 A BILL TO BE ENTITLED AN ACT relating to a study on the cost of providing quality child care in this state in comparison to family income. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 301, Labor Code, is amended by adding Section 301.0701 to read as follows: Sec. 301.0701. CHILD-CARE STUDY. (a) The commission shall conduct a study in this state regarding the cost, in comparison to family income, of providing child care that meets at least the minimum quality requirements for certification as a three-star rating provider under the Texas Rising Star Program. The study must: (1) examine statewide and for each local workforce development area the: (A) trends in the current costs and projections for future costs of providing quality child care; (B) costs of providing quality child care in comparison to family income based on federal poverty guidelines, state median household incomes, or other relevant income standards; (C) amount or estimated amount of governmental money available to support subsidized child care over the periods used for the data described in Paragraphs (A) and (B) and the number of children receiving subsidized child care; and (D) cost of providing quality child care in comparison to the reimbursement rate for subsidized child care and the market rate for providing that level of care; and (2) estimate the number of families eligible to receive subsidized child care. (b) In conducting the study under Subsection (a), the commission shall include the following expenses when calculating the cost of providing the quality child care described by that subsection: (1) the salary and benefits, including insurance, for the employees of the child-care facility; (2) the facility's operating costs, including any rent or mortgage, utility expenses, insurance, and building maintenance; (3) the costs for computer equipment, software, and other technology needed to operate the facility; (4) any costs incurred in obtaining certification under the Texas Rising Star Program, including any certification or assessment fees; (5) the license fees needed to operate the facility; and (6) any other expense the commission considers is necessary to provide the quality child care described by Subsection (a). (c) Not later than December 15, 2022, the commission shall report the results of the study conducted under Subsection (a) to the governor, the lieutenant governor, the speaker of the house of representatives, and each legislative standing committee with jurisdiction over child-care facilities. (d) Not later than December 15, 2024, the commission shall update the study results and provide the update to the governor, the lieutenant governor, the speaker of the house of representatives, and each legislative standing committee with jurisdiction over child-care facilities. (e) This section expires September 1, 2025. SECTION 2. This Act takes effect September 1, 2021.