Texas 2025 - 89th Regular

Texas House Bill HB5529 Compare Versions

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1	1		By: Bumgarner H.B. No. 5529
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to establishing a child-care innovation pilot program.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Subtitle B, Title 4, Labor Code, is amended by
9	11		adding Chapter 320 to read as follows:
10	12		CHAPTER 320. CHILD-CARE INNOVATION PILOT PROGRAM
11	13		Sec. 320.001. DEFINITIONS. In this chapter:
12	14		(1) "Board" means a local workforce development board
13	15		created under Subchapter F, Chapter 2308, Government Code.
14	16		(2) "Program" means the child-care innovation pilot
15	17		program established under this chapter.
16	18		(3) "Provider" means a child-care provider who is
17	19		engaging with the program established under this chapter.
18	20		Sec. 320.002. ESTABLISHMENT. (a) The commission shall
19	21		establish and administer the child-care innovation pilot program to
20	22		address strategic workforce needs of designated pilot regions
21	23		across the state by increasing the supply of quality, affordable
22	24		child care and encouraging child-care partnerships with employers.
23	25		(b) The program shall enable boards designated by the
24	26		commission to partner with local employers and high-quality
25	27		providers to provide grants that will fund innovative child-care
26	28		expansion projects and employer partnerships that directly impact
27	29		strategic local workforce needs.
28	30		Sec. 320.003. ADMINISTRATION. (a) From funds appropriated
29	31		to the commission for the program, the program shall be
30	32		administered by local workforce development boards that serve:
31	33		(1) a county with a population greater than 2 million
32	34		that is adjacent to a county with a population greater than 2.5
33	35		million, or
34	36		(2) two or more counties adjacent to subsection (1).
35	37		(b) If the commission determines there are additional funds
36	38		available after funding the local workforce development boards in
37	39		Subsection (a), the commission shall by rule adopt a process for
38	40		selecting additional local workforce development boards to operate
39	41		the pilot. Rulemaking shall include a competitive application
40	42		process and selection criteria.
41	43		Sec. 320.004. APPLICATION; STRATEGIC PLAN. (a) Any local
42	44		workforce development board that participates in the program shall
43	45		submit a letter of intent to the commission including:
44	46		(1) a strategic plan proposing:
45	47		(A) measurable performance goals and progress
46	48		measures related to increasing the supply and accessibility of
47	49		quality, affordable child-care services;
48	50		(B) plans for engaging regional stakeholders,
49	51		including local employers, business associations, and
50	52		organizations that provide services to children and families, to
51	53		develop and meet regional performance goals that are based on
52	54		strategic workforce needs;
53	55		(C) the number of providers to whom the board
54	56		plans to award grants;
55	57		(D) staffing structures to support the effective
56	58		implementation of the program, including technical assistance for
57	59		child-care providers; and
58	60		(E) plans to maximize the results of the program
59	61		and support the future sustainability of child-care providers
60	62		participating in the program if state funding is not continued; and
61	63		(2) the total amount of money requested to implement
62	64		that board's strategic plan.
63	65		Sec. 320.005. AGREEMENTS WITH PARTICIPATING BOARDS. The
64	66		commission shall develop and enter into a performance agreement
65	67		with each participating local workforce development board. Each of
66	68		those boards shall comply with the terms of the performance
67	69		agreement during its participation in the program. The performance
68	70		agreement must:
69	71		(1) include measurable performance goals and progress
70	72		measures that are:
71	73		(A) related to increasing the supply and
72	74		accessibility of quality, affordable child-care services in the
73	75		pilot region; and
74	76		(B) aligned to that board's strategic plan; and
75	77		(2) allocate responsibilities for accessing and
76	78		reporting progress and outcome information.
77	79		Sec. 320.007. ALLOCATION OF FUNDS. From the funds
78	80		appropriated to the commission for the program, the commission
79	81		shall award an amount of money to each local workforce development
80	82		board participating in the program. In determining the allocation
81	83		of money, the commission shall consider:
82	84		(1) the size and population of the pilot region;
83	85		(2) the unmet child-care needs in the region and the
84	86		proposed funding required to address the needs;
85	87		(3) the proposed number of eligible providers in each
86	88		region to whom that board intends to award grants;
87	89		(4) the budget requested in that board's proposed
88	90		strategic plan under Section 320.004(a)(2); and
89	91		(5) other factors determined by the commission.
90	92		Sec. 320.008. GRANTS. (a) From funds awarded to a local
91	93		workforce development board participating in the program, the
92	94		board, after conducting a competitive selection process, shall
93	95		award grants to eligible providers that enter into a grant contract
94	96		with the board to expand quality, affordable child-care services in
95	97		accordance with the region's strategic workforce needs and the
96	98		local workforce development board's approved strategic plan.
97	99		(b) In awarding a grant under the program, a local workforce
98	100		development board shall give preference to an eligible provider
99	101		that demonstrates capacity to:
100	102		(1) provide high-demand child-care services
101	103		identified by the board; and
102	104		(2) partner with one or more local employers.
103	105		Sec. 320.009. PROVIDER ELIGIBILITY. (a) To be eligible to
104	106		receive a grant under the program, a child-care provider must:
105	107		(1) be a Texas Rising Star Program provider with a
106	108		three-star rating or higher;
107	109		(2) be accredited by the National Association for the
108	110		Education of Young Children;
109	111		(3) have an accreditation from a Montessori
110	112		accreditation organization; or
111	113		(4) meet an alternative quality criterion or waiver
112	114		prescribed by the commission.
113	115		(b) A provider under Subsection (a) may not be owned or
114	116		operated by the organization that administers grants for the local
115	117		workforce development board under the state child care services
116	118		program administered by the commission.
117	119		(c) In consultation with local employers and other regional
118	120		stakeholders, the board shall develop a competitive application and
119	121		scoring process for eligible providers to apply for a grant under
120	122		the program to meet the goals in the board's approved strategic plan
121	123		under Section 320.004.
122	124		(d) A local workforce development board shall develop and
123	125		enter into a grant contract with each eligible provider awarded a
124	126		grant under the program. Each eligible provider awarded a grant
125	127		shall comply with the terms of the grant contract. At a minimum,
126	128		grant contracts must require eligible providers to:
127	129		(1) maintain the ability to enroll the required number
128	130		of children within each designated service area outlined in the
129	131		board's grant contract;
130	132		(2) ensure all educators employed by the provider earn
131	133		a minimum wage that is equal to or above the self-sufficient wage
132	134		required by Section 2308A.012, Government Code, in the county in
133	135		which the provider is located;
134	136		(3) maintain participation in the child-care services
135	137		program administered by the commission and accept participating
136	138		children as openings become available;
137	139		(4) maintain tuition rates at the provider's posted
138	140		rate or at a rate lower than the posted rate for families who do not
139	141		receive subsidized child-care services;
140	142		(5) maintain all program eligibility requirements;
141	143		(6) provide regular reports demonstrating compliance
142	144		with the board's grant contract; and
143	145		(7) provide any additional data requested by the
144	146		board.
145	147		Sec. 320.010. SUBCONTRACTING. (a) In accordance with
146	148		Section 2308.264(e), Government Code, a local workforce
147	149		development board may subcontract with a coordinating entity to
148	150		administer the program.
149	151		(b) The commission may adopt rules establishing
150	152		requirements for a coordinating entity with which a board
151	153		subcontracts under this section.
152	154		Sec. 320.011. USE OF FUNDS. (a) From money appropriated by
153	155		the legislature to implement the program, the commission may use
154	156		not more than:
155	157		(1) 9 percent of the total amount appropriated to pay
156	158		costs related to administering the program by the commission and
157	159		participating local workforce development boards, including
158	160		technical assistance provided to providers under the program; and
159	161		(2) 1 percent of the total amount appropriated to pay
160	162		costs related to research and evaluation of the program.
161	163		(b) The commission shall use at least 90 percent of the
162	164		total amount appropriated for grants administered under the
163	165		program.
164	166		(c) The commission shall adopt rules relating to the award
165	167		of grants under the program that are designed to maximize the impact
166	168		of the program and ensure the funding is sufficient to execute on
167	169		the terms of the grant contract.
168	170		(d) In awarding a grant under the program, the commission or
169	171		local workforce development boards may adjust reimbursement rates
170	172		as necessary to account for the costs of providing care to
171	173		specialized populations, including children with disabilities,
172	174		infants, toddlers, and children needing after-hours care.
173	175		(e) Each local workforce development board participating in
174	176		the program shall ensure that all grant money has been allocated not
175	177		later than December 31, 2027.
176	178		(f) In addition to funds appropriated by the legislature, to
177	179		administer and expand the impact of the program, the commission or
178	180		local workforce development boards may:
179	181		(1) seek and apply for any available federal or local
180	182		funds; and
181	183		(2) solicit and accept gifts, grants, and donations
182	184		from any other public or private source.
183	185		Sec. 320.012. QUARTERLY REPORT TO THE COMMISSION. (a) Each
184	186		local workforce development board participating in the program
185	187		shall submit a quarterly report to the commission, detailing the
186	188		use of grant money received under the program and related outcomes,
187	189		including:
188	190		(1) a list of providers receiving grant money and the
189	191		provider's monthly grant awards;
190	192		(2) each provider's compliance with performance goals
191	193		outlined in the provider's grant contract with the board; and
192	194		(3) that board's progress toward outcomes identified
193	195		in the approved strategic plan under Section 320.004.
194	196		(b) A local workforce development board shall submit the
195	197		first report required by this section not later than the 120th day
196	198		after the date the board awards its first grant to a provider under
197	199		the program and submit subsequent reports every 120 days
198	200		thereafter.
199	201		Sec. 320.013. REPORT. Not later than December 1, 2026, the
200	202		commission shall review the effectiveness of the program and submit
201	203		to the governor, the lieutenant governor, the speaker of the house
202	204		of representatives, and the members of each legislative standing
203	205		committee with primary jurisdiction over economic development a
204	206		written report regarding the outcomes, challenges, and
205	207		opportunities of the program.
206	208		Sec. 320.014. RULES. The commission shall adopt rules
207	209		necessary to implement this chapter.
208	210		Sec. 320.015. EXPIRATION. This chapter expires September
209	211		1, 2029.
210	212		SECTION 2. The Texas Workforce Commission is required to
211	213		implement a provision of this Act only if the legislature
212	214		appropriates money specifically for that purpose. If the
213	215		legislature does not appropriate money specifically for that
214	216		purpose, the commission may, but is not required to, implement a
215	217		provision of this Act using other appropriations that are available
216	218		for that purpose.
217	219		SECTION 3. This Act takes effect September 1, 2025.