| 1 | 1 | | By: West S.B. No. 1739 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to use and operation of the childcare protection and |
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| 9 | 9 | | enhancement fund. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Title 4, Labor Code, Chapter 302, is amended by |
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| 12 | 12 | | adding Section 302.0052 to read as follows: |
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| 13 | 13 | | Sec. 302.0052 CHILD CARE PROTECTION AND ENHANCEMENT FUND. |
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| 14 | 14 | | DEFINITIONS. In this chapter: |
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| 15 | 15 | | (1) "Fund" means the child care protection and |
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| 16 | 16 | | enhancement fund established under Section 49-r, Article III, Texas |
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| 17 | 17 | | Constitution. |
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| 18 | 18 | | (2) "Trust company" means the Texas Treasury |
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| 19 | 19 | | Safekeeping Trust Company. |
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| 20 | 20 | | (3) "Agency" means the Texas Workforce Commission. |
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| 21 | 21 | | Sec. 302.0053. ADMINISTRATION AND MANAGEMENT OF FUND. (a) |
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| 22 | 22 | | The child care protection and enhancement fund is a trust fund held |
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| 23 | 23 | | outside the treasury by the trust company and administered by the |
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| 24 | 24 | | department for the purpose of the expansion of childcare capacity |
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| 25 | 25 | | and enhancement of subsidized childcare rates. |
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| 26 | 26 | | (b) The trust company shall hold and invest the fund, taking |
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| 27 | 27 | | into account the purposes for which the money in the fund may be |
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| 28 | 28 | | used. The overall objective for the investment of the fund is to |
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| 29 | 29 | | maintain sufficient liquidity to meet the needs of the fund. |
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| 30 | 30 | | (c) The expenses of managing the fund and its assets shall |
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| 31 | 31 | | be paid from the fund. Except as otherwise provided by this chapter |
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| 32 | 32 | | and Section 49-r, Article III, Texas Constitution, money in the |
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| 33 | 33 | | fund may not be used for any other purpose. |
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| 34 | 34 | | (d) In managing the assets of the fund, through procedures |
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| 35 | 35 | | and subject to restrictions the trust company considers |
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| 36 | 36 | | appropriate, the trust company may acquire, exchange, sell, |
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| 37 | 37 | | supervise, manage, or retain any kind of investment that a prudent |
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| 38 | 38 | | investor, exercising reasonable care, skill, and caution, would |
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| 39 | 39 | | acquire or retain in light of the purposes, terms, distribution |
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| 40 | 40 | | requirements, liquidity requirements, and other circumstances of |
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| 41 | 41 | | the fund then prevailing, taking into consideration the investment |
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| 42 | 42 | | of all the fund assets rather than a single investment. The fund |
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| 43 | 43 | | may be invested with the state treasury pool and may be pooled with |
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| 44 | 44 | | other state assets for purposes of investment. |
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| 45 | 45 | | (e) The department shall provide the trust company with a |
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| 46 | 46 | | cash flow forecast at least annually, and more frequently as |
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| 47 | 47 | | appropriate, to ensure the trust company is able to satisfy the |
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| 48 | 48 | | objectives specified by Subsection (b). |
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| 49 | 49 | | Sec. 302.0054. DISTRIBUTION. The agency shall annually |
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| 50 | 50 | | request from the trust company a distribution from the fund in the |
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| 51 | 51 | | amount equal to the interest earned on the fund for the purpose of |
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| 52 | 52 | | increasing both capacity and rates for subsidized childcare in this |
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| 53 | 53 | | state. |
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| 54 | 54 | | Sec. 302.0055. STIPULATIONS ON USE OF FUND. (a) The Texas |
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| 55 | 55 | | Workforce Commission must submit to the Texas Workforce |
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| 56 | 56 | | Commissioners and the Texas Comptroller of Public Accounts a |
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| 57 | 57 | | request for approval of a proposed disbursement and how that |
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| 58 | 58 | | disbursement will be used to increase subsidized childcare rates |
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| 59 | 59 | | and capacity in this state. |
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| 60 | 60 | | (b) A request under this section shall be considered |
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| 61 | 61 | | approved on the 30th day after the date the request is submitted |
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| 62 | 62 | | unless the request is approved or disapproved before that date. |
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| 63 | 63 | | Sec. 302.0056. PROHIBITED EXPENDITURES. Money in the fund |
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| 64 | 64 | | may not be used: |
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| 65 | 65 | | (1) to pay salaries, employee benefits, costs |
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| 66 | 66 | | associated with employee benefits, or administration, operating, |
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| 67 | 67 | | or program costs of the department; or |
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| 68 | 68 | | (2) for the maintenance or operation of a state |
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| 69 | 69 | | agency. |
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| 70 | 70 | | Sec. 302.0057. EXPENDITURES SUBJECT TO AUDIT. All |
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| 71 | 71 | | expenditures by the agency under this chapter are subject to audit |
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| 72 | 72 | | by the state auditor. |
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| 73 | 73 | | Sec. 302.0058. STRATEGIC PLAN. The department shall |
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| 74 | 74 | | include in each strategic plan submitted under Section 2056.002, |
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| 75 | 75 | | Government Code, a report on each acquisition funded using money in |
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| 76 | 76 | | the fund during the two-year period preceding the date on which the |
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| 77 | 77 | | department submits the plan. |
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| 78 | 78 | | SECTION 2. This Act takes effect January 1, 2026, but only |
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| 79 | 79 | | if the constitutional amendment proposed by the 89th Legislature, |
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| 80 | 80 | | Regular Session, 2025, providing for the creation of the child care |
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| 81 | 81 | | preservation and enhancement fund to be used for the increase in |
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| 82 | 82 | | capacity and increase in subsidized childcare rates is approved by |
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| 83 | 83 | | the voters. If that amendment is not approved by the voters, this |
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| 84 | 84 | | Act has no effect. |
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