By: Bumgarner H.B. No. 5529
A BILL TO BE ENTITLED
AN ACT
relating to establishing a child-care innovation pilot program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 4, Labor Code, is amended by
adding Chapter 320 to read as follows:
CHAPTER 320. CHILD-CARE INNOVATION PILOT PROGRAM
Sec. 320.001. DEFINITIONS. In this chapter:
(1) "Board" means a local workforce development board
created under Subchapter F, Chapter 2308, Government Code.
(2) "Program" means the child-care innovation pilot
program established under this chapter.
(3) "Provider" means a child-care provider who is
engaging with the program established under this chapter.
Sec. 320.002. ESTABLISHMENT. (a) The commission shall
establish and administer the child-care innovation pilot program to
address strategic workforce needs of designated pilot regions
across the state by increasing the supply of quality, affordable
child care and encouraging child-care partnerships with employers.
(b) The program shall enable boards designated by the
commission to partner with local employers and high-quality
providers to provide grants that will fund innovative child-care
expansion projects and employer partnerships that directly impact
strategic local workforce needs.
Sec. 320.003. ADMINISTRATION. (a) From funds appropriated
to the commission for the program, the program shall be
administered by local workforce development boards that serve:
(1) a county with a population greater than 2 million
that is adjacent to a county with a population greater than 2.5
million, or
(2) two or more counties adjacent to subsection (1).
(b) If the commission determines there are additional funds
available after funding the local workforce development boards in
Subsection (a), the commission shall by rule adopt a process for
selecting additional local workforce development boards to operate
the pilot. Rulemaking shall include a competitive application
process and selection criteria.
Sec. 320.004. APPLICATION; STRATEGIC PLAN. (a) Any local
workforce development board that participates in the program shall
submit a letter of intent to the commission including:
(1) a strategic plan proposing:
(A) measurable performance goals and progress
measures related to increasing the supply and accessibility of
quality, affordable child-care services;
(B) plans for engaging regional stakeholders,
including local employers, business associations, and
organizations that provide services to children and families, to
develop and meet regional performance goals that are based on
strategic workforce needs;
(C) the number of providers to whom the board
plans to award grants;
(D) staffing structures to support the effective
implementation of the program, including technical assistance for
child-care providers; and
(E) plans to maximize the results of the program
and support the future sustainability of child-care providers
participating in the program if state funding is not continued; and
(2) the total amount of money requested to implement
that board's strategic plan.
Sec. 320.005. AGREEMENTS WITH PARTICIPATING BOARDS. The
commission shall develop and enter into a performance agreement
with each participating local workforce development board. Each of
those boards shall comply with the terms of the performance
agreement during its participation in the program. The performance
agreement must:
(1) include measurable performance goals and progress
measures that are:
(A) related to increasing the supply and
accessibility of quality, affordable child-care services in the
pilot region; and
(B) aligned to that board's strategic plan; and
(2) allocate responsibilities for accessing and
reporting progress and outcome information.
Sec. 320.007. ALLOCATION OF FUNDS. From the funds
appropriated to the commission for the program, the commission
shall award an amount of money to each local workforce development
board participating in the program. In determining the allocation
of money, the commission shall consider:
(1) the size and population of the pilot region;
(2) the unmet child-care needs in the region and the
proposed funding required to address the needs;
(3) the proposed number of eligible providers in each
region to whom that board intends to award grants;
(4) the budget requested in that board's proposed
strategic plan under Section 320.004(a)(2); and
(5) other factors determined by the commission.
Sec. 320.008. GRANTS. (a) From funds awarded to a local
workforce development board participating in the program, the
board, after conducting a competitive selection process, shall
award grants to eligible providers that enter into a grant contract
with the board to expand quality, affordable child-care services in
accordance with the region's strategic workforce needs and the
local workforce development board's approved strategic plan.
(b) In awarding a grant under the program, a local workforce
development board shall give preference to an eligible provider
that demonstrates capacity to:
(1) provide high-demand child-care services
identified by the board; and
(2) partner with one or more local employers.
Sec. 320.009. PROVIDER ELIGIBILITY. (a) To be eligible to
receive a grant under the program, a child-care provider must:
(1) be a Texas Rising Star Program provider with a
three-star rating or higher;
(2) be accredited by the National Association for the
Education of Young Children;
(3) have an accreditation from a Montessori
accreditation organization; or
(4) meet an alternative quality criterion or waiver
prescribed by the commission.
(b) A provider under Subsection (a) may not be owned or
operated by the organization that administers grants for the local
workforce development board under the state child care services
program administered by the commission.
(c) In consultation with local employers and other regional
stakeholders, the board shall develop a competitive application and
scoring process for eligible providers to apply for a grant under
the program to meet the goals in the board's approved strategic plan
under Section 320.004.
(d) A local workforce development board shall develop and
enter into a grant contract with each eligible provider awarded a
grant under the program. Each eligible provider awarded a grant
shall comply with the terms of the grant contract. At a minimum,
grant contracts must require eligible providers to:
(1) maintain the ability to enroll the required number
of children within each designated service area outlined in the
board's grant contract;
(2) ensure all educators employed by the provider earn
a minimum wage that is equal to or above the self-sufficient wage
required by Section 2308A.012, Government Code, in the county in
which the provider is located;
(3) maintain participation in the child-care services
program administered by the commission and accept participating
children as openings become available;
(4) maintain tuition rates at the provider's posted
rate or at a rate lower than the posted rate for families who do not
receive subsidized child-care services;
(5) maintain all program eligibility requirements;
(6) provide regular reports demonstrating compliance
with the board's grant contract; and
(7) provide any additional data requested by the
board.
Sec. 320.010. SUBCONTRACTING. (a) In accordance with
Section 2308.264(e), Government Code, a local workforce
development board may subcontract with a coordinating entity to
administer the program.
(b) The commission may adopt rules establishing
requirements for a coordinating entity with which a board
subcontracts under this section.
Sec. 320.011. USE OF FUNDS. (a) From money appropriated by
the legislature to implement the program, the commission may use
not more than:
(1) 9 percent of the total amount appropriated to pay
costs related to administering the program by the commission and
participating local workforce development boards, including
technical assistance provided to providers under the program; and
(2) 1 percent of the total amount appropriated to pay
costs related to research and evaluation of the program.
(b) The commission shall use at least 90 percent of the
total amount appropriated for grants administered under the
program.
(c) The commission shall adopt rules relating to the award
of grants under the program that are designed to maximize the impact
of the program and ensure the funding is sufficient to execute on
the terms of the grant contract.
(d) In awarding a grant under the program, the commission or
local workforce development boards may adjust reimbursement rates
as necessary to account for the costs of providing care to
specialized populations, including children with disabilities,
infants, toddlers, and children needing after-hours care.
(e) Each local workforce development board participating in
the program shall ensure that all grant money has been allocated not
later than December 31, 2027.
(f) In addition to funds appropriated by the legislature, to
administer and expand the impact of the program, the commission or
local workforce development boards may:
(1) seek and apply for any available federal or local
funds; and
(2) solicit and accept gifts, grants, and donations
from any other public or private source.
Sec. 320.012. QUARTERLY REPORT TO THE COMMISSION. (a) Each
local workforce development board participating in the program
shall submit a quarterly report to the commission, detailing the
use of grant money received under the program and related outcomes,
including:
(1) a list of providers receiving grant money and the
provider's monthly grant awards;
(2) each provider's compliance with performance goals
outlined in the provider's grant contract with the board; and
(3) that board's progress toward outcomes identified
in the approved strategic plan under Section 320.004.
(b) A local workforce development board shall submit the
first report required by this section not later than the 120th day
after the date the board awards its first grant to a provider under
the program and submit subsequent reports every 120 days
thereafter.
Sec. 320.013. REPORT. Not later than December 1, 2026, the
commission shall review the effectiveness of the program and submit
to the governor, the lieutenant governor, the speaker of the house
of representatives, and the members of each legislative standing
committee with primary jurisdiction over economic development a
written report regarding the outcomes, challenges, and
opportunities of the program.
Sec. 320.014. RULES. The commission shall adopt rules
necessary to implement this chapter.
Sec. 320.015. EXPIRATION. This chapter expires September
1, 2029.
SECTION 2. The Texas Workforce Commission is required to
implement a provision of this Act only if the legislature
appropriates money specifically for that purpose. If the
legislature does not appropriate money specifically for that
purpose, the commission may, but is not required to, implement a
provision of this Act using other appropriations that are available
for that purpose.
SECTION 3. This Act takes effect September 1, 2025.