88R13165 MLH-F
By: Allen H.B. No. 4600
A BILL TO BE ENTITLED
AN ACT
relating to the funding of child care facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 42, Human Resources Code,
is amended by adding Section 42.0216 to read as follows:
Sec. 42.0216. SUSTAINING CHILD CARE ACCOUNT; GRANTS. (a)
The sustaining child care account is a dedicated account in the
general revenue fund.
(b) The account consists of:
(1) general revenue transferred to the account;
(2) money appropriated to the account;
(3) gifts, grants, and donations contributed to the
account;
(4) contributions to the account for which an entity
receives a credit against the entity's state premium tax liability
under Chapter 230, Insurance Code; and
(5) interest earned on the investment of money in the
account.
(c) Section 403.0956, Government Code, does not apply to the
sustaining child care account.
(d) Unused funds in the sustaining child care account do not
revert to the general revenue fund without legislative action.
(e) Money in the sustaining child care account may be
appropriated only to the Texas Workforce Commission for the purpose
of making grants to day-care centers and group day-care homes
licensed under this chapter and to family homes registered under
this chapter.
(f) The Texas Workforce Commission may award grants to
day-care centers and group day-care homes licensed under this
chapter and to family homes registered under this chapter to:
(1) provide adequate funding to allow the day-care
providers to recover from the devastating effects of the COVID-19
lockdowns and the subsequent reduced enrollment and staff
shortages; and
(2) ensure that day-care providers are able to remain
in business to provide essential child-care services to the people
of this state.
(g) A grant authorized by this section may not be less than
$1,000 for each child under 14 years of age enrolled in the day-care
center, group day-care home, or family home. A day-care center,
group day-care home, or family home may receive one grant under this
section each year.
(h) The Texas Workforce Commission shall set the amount of
the grants awarded under this section in an amount that ensures each
eligible day-care center, group day-care home, and family home is
able to receive a grant.
(i) A day-care center, group day-care home, or family home
may decline a grant under this section.
(j) The executive commissioner in collaboration with the
Texas Workforce Commission shall adopt rules to implement this
section, including rules regarding the eligibility criteria for
receiving a grant and the process for awarding a grant under this
section.
SECTION 2. Subtitle B, Title 3, Insurance Code, is amended
by adding Chapter 230 to read as follows:
CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
SUSTAINING CHILD CARE ACCOUNT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 230.001. DEFINITIONS. In this chapter:
(1) "Account" means the Sustaining Child Care Account
under Section 42.0216, Human Resources Code.
(2) "State premium tax liability" means any liability
incurred by an entity under Chapters 221 through 226.
SUBCHAPTER B. CREDIT
Sec. 230.051. CREDIT. An entity may apply for a credit
against the entity's state premium tax liability in the amount and
under the conditions provided by this chapter. The comptroller
shall award credits as provided by Section 230.054.
Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
Subject to Subsections (b) and (c), the amount of an entity's credit
is equal to the lesser of the amount contributed to the account
during the period covered by the tax report or 75 percent of the
entity's state premium tax liability for the report.
(b) For the 2024 state fiscal year, the total amount of
credits that may be awarded under this chapter may not exceed $200
million. For each subsequent state fiscal year, the total amount of
credits that may be awarded is:
(1) the same total amount of credits available under
this subsection for the previous state fiscal year, if Subdivision
(2) does not apply; or
(2) 125 percent of the total amount of credits
available under this subsection for the previous state fiscal year,
if the total amount of credits awarded in the previous state fiscal
year was at least 90 percent of the total amount of credits
available under this subsection for that fiscal year.
(c) The comptroller by rule shall prescribe procedures by
which the comptroller may allocate credits under this chapter. The
procedures must provide that credits are allocated first to
entities that received preliminary approval for a credit under
Section 230.053 and that apply under Section 230.054. The
procedures must provide that any remaining credits are allocated to
entities that apply under Section 230.054 on a first-come,
first-served basis, based on the date the contribution was
initially made.
(d) The comptroller may require an entity to notify the
comptroller of the amount the entity intends or expects to apply for
under this chapter before the beginning of a state fiscal year or at
any other time required by the comptroller.
Sec. 230.053. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
making a contribution to the account, an entity may apply to the
comptroller for preliminary approval of a credit under this chapter
for the contribution.
(b) An entity must apply for preliminary approval on a form
provided by the comptroller that includes the amount the entity
expects to contribute and any other information the comptroller
requires.
(c) The comptroller shall grant preliminary approval for
credits under this chapter on a first-come, first-served basis,
based on the date the comptroller receives the application for
preliminary approval.
(d) The comptroller shall grant preliminary approval for a
credit under this chapter for a state fiscal year if the sum of the
amount of the credit and the total amount of all other credits
preliminarily approved under this chapter does not exceed the
amount provided by Section 230.052(b).
(e) Final award of a credit preliminarily approved under
this section remains subject to the limitations under Section
230.052(a) and all other requirements of this chapter.
Sec. 230.054. APPLICATION FOR CREDIT. (a) An entity must
apply for a credit under this chapter on or with the tax report
covering the period in which the contribution was made.
(b) The comptroller shall adopt a form for the application
for the credit. An entity must use this form in applying for the
credit.
(c) Subject to Section 230.052(c), the comptroller may
award a credit to an entity that applies for the credit under
Subsection (a) if the entity is eligible for the credit and the
credit is available under Section 230.052(b). The comptroller has
broad discretion in determining whether to grant or deny an
application for a credit.
(d) The comptroller shall notify an entity in writing of the
comptroller's decision to grant or deny the application under
Subsection (a). If the comptroller denies an entity's application,
the comptroller shall include in the notice of denial the reasons
for the comptroller's decision.
(e) If the comptroller denies an entity's application under
Subsection (a), the entity may request in writing a reconsideration
of the application not later than the 10th day after the date the
notice under Subsection (d) is received. If the entity does not
request a reconsideration of the application on or before that
date, the comptroller's decision is final.
(f) An entity that requests a reconsideration under
Subsection (e) may submit to the comptroller, not later than the
30th day after the date the request for reconsideration is
submitted, additional information and documents to support the
entity's request for reconsideration.
(g) The comptroller's reconsideration of an application
under this section is not a contested case under Chapter 2001,
Government Code. The comptroller's decision on a request for
reconsideration of an application is final and is not appealable.
(h) This section does not create a cause of action to
contest a decision of the comptroller to deny an application for a
credit under this chapter.
Sec. 230.055. RULES; PROCEDURES. The comptroller shall
adopt rules and procedures to implement, administer, and enforce
this chapter.
Sec. 230.056. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
may not convey, assign, or transfer the credit allowed under this
chapter to another entity unless all of the assets of the entity are
conveyed, assigned, or transferred in the same transaction.
Sec. 230.057. NOTICE OF AVAILABILITY OF CREDIT. The
comptroller shall provide notice of the availability of the credit
under this chapter on the comptroller's Internet website, in the
instructions for insurance premium tax report forms, and in any
notice sent to an entity concerning the requirement to file an
insurance premium tax report.
SECTION 3. An entity may apply for a credit under Chapter
230, Insurance Code, as added by this Act, only for a contribution
made on or after the effective date of this Act.
SECTION 4. Not later than November 15, 2023, the
comptroller of public accounts shall adopt rules as provided by
Section 230.055, Insurance Code, as added by this Act.
SECTION 5. Chapter 230, Insurance Code, as added by this
Act, applies only to a tax report originally due on or after the
effective date of this Act.
SECTION 6. This Act takes effect September 1, 2023.