| 1 | 1 | | 89R1192 RDS-D |
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| 2 | 2 | | By: Goodwin H.B. No. 4598 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to imposing an employer contribution to support the |
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| 10 | 10 | | subsidized child care services program administered by the Texas |
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| 11 | 11 | | Workforce Commission. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Chapter 301, Labor Code, is amended by adding |
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| 14 | 14 | | Subchapter L to read as follows: |
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| 15 | 15 | | SUBCHAPTER L. EMPLOYER CONTRIBUTION FOR SUBSIDIZED CHILD CARE |
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| 16 | 16 | | SERVICES PROGRAM |
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| 17 | 17 | | Sec. 301.201. DEFINITIONS. In this subchapter: |
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| 18 | 18 | | (1) "Employee" means an individual who performs |
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| 19 | 19 | | services for an employer for compensation under a contract for |
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| 20 | 20 | | hire, whether express or implied. The term does not include an |
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| 21 | 21 | | independent contractor. |
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| 22 | 22 | | (2) "Employer" means a person that employs one or more |
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| 23 | 23 | | employees. |
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| 24 | 24 | | Sec. 301.202. RULES. The commission shall adopt rules as |
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| 25 | 25 | | necessary to implement this subchapter. |
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| 26 | 26 | | Sec. 301.203. EMPLOYER CONTRIBUTION. (a) Except as |
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| 27 | 27 | | provided by Subsection (d), an employer shall pay a contribution on |
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| 28 | 28 | | wages paid during a calendar year. The contribution shall be paid to |
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| 29 | 29 | | the commission in accordance with rules adopted by the commission. |
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| 30 | 30 | | (b) An employer's contribution under Subsection (a) is an |
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| 31 | 31 | | amount equal to 0.15 percent of all wages paid by the employer |
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| 32 | 32 | | during the calendar year. |
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| 33 | 33 | | (c) An employer may not deduct any part of a contribution |
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| 34 | 34 | | under this section from the wages of an employee. |
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| 35 | 35 | | (d) This section does not apply to an employer that, in |
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| 36 | 36 | | accordance with rules adopted by the commission, provides |
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| 37 | 37 | | self-funded child care services to all dependents of each employee |
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| 38 | 38 | | who would otherwise be eligible to receive subsidized child care |
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| 39 | 39 | | under the commission's subsidized child care services program. |
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| 40 | 40 | | Sec. 301.204. ADMINISTRATION OF CONTRIBUTIONS. (a) On |
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| 41 | 41 | | receipt of contributions under Section 301.203, the commission |
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| 42 | 42 | | shall forward the contributions to the comptroller. |
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| 43 | 43 | | (b) The comptroller shall deposit employer contributions |
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| 44 | 44 | | received under this subchapter to the credit of an account in the |
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| 45 | 45 | | general revenue fund administered by the comptroller. Money in the |
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| 46 | 46 | | account may be appropriated only to the commission for the purpose |
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| 47 | 47 | | of administering the commission's subsidized child care services |
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| 48 | 48 | | program. |
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| 49 | 49 | | (c) The commission may use a reasonable amount, not to |
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| 50 | 50 | | exceed five percent, of the money appropriated under Subsection (b) |
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| 51 | 51 | | to pay administrative costs associated with administering the |
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| 52 | 52 | | employer contributions paid to the commission under this |
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| 53 | 53 | | subchapter. |
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| 54 | 54 | | SECTION 2. Not later than December 1, 2025, the Texas |
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| 55 | 55 | | Workforce Commission shall adopt rules necessary to implement |
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| 56 | 56 | | Subchapter L, Chapter 301, Labor Code, as added by this Act. |
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| 57 | 57 | | SECTION 3. Section 301.203, Labor Code, as added by this |
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| 58 | 58 | | Act, applies only to wages paid on or after January 1, 2026. |
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| 59 | 59 | | SECTION 4. This Act takes effect September 1, 2025. |
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