Texas 2023 - 88th Regular

Texas House Bill HB4600 Compare Versions

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Version 2 (New)

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1	1	88R13165 MLH-F
2	2	By: Allen H.B. No. 4600
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the funding of child care facilities.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subchapter B, Chapter 42, Human Resources Code,
10	10	is amended by adding Section 42.0216 to read as follows:
11	11	Sec. 42.0216. SUSTAINING CHILD CARE ACCOUNT; GRANTS. (a)
12	12	The sustaining child care account is a dedicated account in the
13	13	general revenue fund.
14	14	(b) The account consists of:
15	15	(1) general revenue transferred to the account;
16	16	(2) money appropriated to the account;
17	17	(3) gifts, grants, and donations contributed to the
18	18	account;
19	19	(4) contributions to the account for which an entity
20	20	receives a credit against the entity's state premium tax liability
21	21	under Chapter 230, Insurance Code; and
22	22	(5) interest earned on the investment of money in the
23	23	account.
24	24	(c) Section 403.0956, Government Code, does not apply to the
25	25	sustaining child care account.
26	26	(d) Unused funds in the sustaining child care account do not
27	27	revert to the general revenue fund without legislative action.
28	28	(e) Money in the sustaining child care account may be
29	29	appropriated only to the Texas Workforce Commission for the purpose
30	30	of making grants to day-care centers and group day-care homes
31	31	licensed under this chapter and to family homes registered under
32	32	this chapter.
33	33	(f) The Texas Workforce Commission may award grants to
34	34	day-care centers and group day-care homes licensed under this
35	35	chapter and to family homes registered under this chapter to:
36	36	(1) provide adequate funding to allow the day-care
37	37	providers to recover from the devastating effects of the COVID-19
38	38	lockdowns and the subsequent reduced enrollment and staff
39	39	shortages; and
40	40	(2) ensure that day-care providers are able to remain
41	41	in business to provide essential child-care services to the people
42	42	of this state.
43	43	(g) A grant authorized by this section may not be less than
44	44	$1,000 for each child under 14 years of age enrolled in the day-care
45	45	center, group day-care home, or family home. A day-care center,
46	46	group day-care home, or family home may receive one grant under this
47	47	section each year.
48	48	(h) The Texas Workforce Commission shall set the amount of
49	49	the grants awarded under this section in an amount that ensures each
50	50	eligible day-care center, group day-care home, and family home is
51	51	able to receive a grant.
52	52	(i) A day-care center, group day-care home, or family home
53	53	may decline a grant under this section.
54	54	(j) The executive commissioner in collaboration with the
55	55	Texas Workforce Commission shall adopt rules to implement this
56	56	section, including rules regarding the eligibility criteria for
57	57	receiving a grant and the process for awarding a grant under this
58	58	section.
59	59	SECTION 2. Subtitle B, Title 3, Insurance Code, is amended
60	60	by adding Chapter 230 to read as follows:
61	61	CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
62	62	SUSTAINING CHILD CARE ACCOUNT
63	63	SUBCHAPTER A. GENERAL PROVISIONS
64	64	Sec. 230.001. DEFINITIONS. In this chapter:
65	65	(1) "Account" means the Sustaining Child Care Account
66	66	under Section 42.0216, Human Resources Code.
67	67	(2) "State premium tax liability" means any liability
68	68	incurred by an entity under Chapters 221 through 226.
69	69	SUBCHAPTER B. CREDIT
70	70	Sec. 230.051. CREDIT. An entity may apply for a credit
71	71	against the entity's state premium tax liability in the amount and
72	72	under the conditions provided by this chapter. The comptroller
73	73	shall award credits as provided by Section 230.054.
74	74	Sec. 230.052. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
75	75	Subject to Subsections (b) and (c), the amount of an entity's credit
76	76	is equal to the lesser of the amount contributed to the account
77	77	during the period covered by the tax report or 75 percent of the
78	78	entity's state premium tax liability for the report.
79	79	(b) For the 2024 state fiscal year, the total amount of
80	80	credits that may be awarded under this chapter may not exceed $200
81	81	million. For each subsequent state fiscal year, the total amount of
82	82	credits that may be awarded is:
83	83	(1) the same total amount of credits available under
84	84	this subsection for the previous state fiscal year, if Subdivision
85	85	(2) does not apply; or
86	86	(2) 125 percent of the total amount of credits
87	87	available under this subsection for the previous state fiscal year,
88	88	if the total amount of credits awarded in the previous state fiscal
89	89	year was at least 90 percent of the total amount of credits
90	90	available under this subsection for that fiscal year.
91	91	(c) The comptroller by rule shall prescribe procedures by
92	92	which the comptroller may allocate credits under this chapter. The
93	93	procedures must provide that credits are allocated first to
94	94	entities that received preliminary approval for a credit under
95	95	Section 230.053 and that apply under Section 230.054. The
96	96	procedures must provide that any remaining credits are allocated to
97	97	entities that apply under Section 230.054 on a first-come,
98	98	first-served basis, based on the date the contribution was
99	99	initially made.
100	100	(d) The comptroller may require an entity to notify the
101	101	comptroller of the amount the entity intends or expects to apply for
102	102	under this chapter before the beginning of a state fiscal year or at
103	103	any other time required by the comptroller.
104	104	Sec. 230.053. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
105	105	making a contribution to the account, an entity may apply to the
106	106	comptroller for preliminary approval of a credit under this chapter
107	107	for the contribution.
108	108	(b) An entity must apply for preliminary approval on a form
109	109	provided by the comptroller that includes the amount the entity
110	110	expects to contribute and any other information the comptroller
111	111	requires.
112	112	(c) The comptroller shall grant preliminary approval for
113	113	credits under this chapter on a first-come, first-served basis,
114	114	based on the date the comptroller receives the application for
115	115	preliminary approval.
116	116	(d) The comptroller shall grant preliminary approval for a
117	117	credit under this chapter for a state fiscal year if the sum of the
118	118	amount of the credit and the total amount of all other credits
119	119	preliminarily approved under this chapter does not exceed the
120	120	amount provided by Section 230.052(b).
121	121	(e) Final award of a credit preliminarily approved under
122	122	this section remains subject to the limitations under Section
123	123	230.052(a) and all other requirements of this chapter.
124	124	Sec. 230.054. APPLICATION FOR CREDIT. (a) An entity must
125	125	apply for a credit under this chapter on or with the tax report
126	126	covering the period in which the contribution was made.
127	127	(b) The comptroller shall adopt a form for the application
128	128	for the credit. An entity must use this form in applying for the
129	129	credit.
130	130	(c) Subject to Section 230.052(c), the comptroller may
131	131	award a credit to an entity that applies for the credit under
132	132	Subsection (a) if the entity is eligible for the credit and the
133	133	credit is available under Section 230.052(b). The comptroller has
134	134	broad discretion in determining whether to grant or deny an
135	135	application for a credit.
136	136	(d) The comptroller shall notify an entity in writing of the
137	137	comptroller's decision to grant or deny the application under
138	138	Subsection (a). If the comptroller denies an entity's application,
139	139	the comptroller shall include in the notice of denial the reasons
140	140	for the comptroller's decision.
141	141	(e) If the comptroller denies an entity's application under
142	142	Subsection (a), the entity may request in writing a reconsideration
143	143	of the application not later than the 10th day after the date the
144	144	notice under Subsection (d) is received. If the entity does not
145	145	request a reconsideration of the application on or before that
146	146	date, the comptroller's decision is final.
147	147	(f) An entity that requests a reconsideration under
148	148	Subsection (e) may submit to the comptroller, not later than the
149	149	30th day after the date the request for reconsideration is
150	150	submitted, additional information and documents to support the
151	151	entity's request for reconsideration.
152	152	(g) The comptroller's reconsideration of an application
153	153	under this section is not a contested case under Chapter 2001,
154	154	Government Code. The comptroller's decision on a request for
155	155	reconsideration of an application is final and is not appealable.
156	156	(h) This section does not create a cause of action to
157	157	contest a decision of the comptroller to deny an application for a
158	158	credit under this chapter.
159	159	Sec. 230.055. RULES; PROCEDURES. The comptroller shall
160	160	adopt rules and procedures to implement, administer, and enforce
161	161	this chapter.
162	162	Sec. 230.056. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
163	163	may not convey, assign, or transfer the credit allowed under this
164	164	chapter to another entity unless all of the assets of the entity are
165	165	conveyed, assigned, or transferred in the same transaction.
166	166	Sec. 230.057. NOTICE OF AVAILABILITY OF CREDIT. The
167	167	comptroller shall provide notice of the availability of the credit
168	168	under this chapter on the comptroller's Internet website, in the
169	169	instructions for insurance premium tax report forms, and in any
170	170	notice sent to an entity concerning the requirement to file an
171	171	insurance premium tax report.
172	172	SECTION 3. An entity may apply for a credit under Chapter
173	173	230, Insurance Code, as added by this Act, only for a contribution
174	174	made on or after the effective date of this Act.
175	175	SECTION 4. Not later than November 15, 2023, the
176	176	comptroller of public accounts shall adopt rules as provided by
177	177	Section 230.055, Insurance Code, as added by this Act.
178	178	SECTION 5. Chapter 230, Insurance Code, as added by this
179	179	Act, applies only to a tax report originally due on or after the
180	180	effective date of this Act.
181	181	SECTION 6. This Act takes effect September 1, 2023.