Texas 2025 - 89th Regular

Texas Senate Bill SB2979 Compare Versions

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1	1	By: Hancock S.B. No. 2979
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to establishing a child-care innovation pilot program.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle B, Title 4, Labor Code, is amended by
11	11	adding Chapter 320 to read as follows:
12	12	CHAPTER 320. CHILD-CARE INNOVATION PILOT PROGRAM
13	13	Sec. 320.001. DEFINITIONS. In this chapter:
14	14	(1) "Board" means a local workforce development board
15	15	created under Subchapter F, Chapter 2308, Government Code.
16	16	(2) "Program" means the child-care innovation pilot
17	17	program established under this chapter.
18	18	(3) "Provider" means a child-care provider who is
19	19	engaging with the program established under this chapter.
20	20	Sec. 320.002. ESTABLISHMENT. (a) The commission shall
21	21	establish and administer the child-care innovation pilot program to
22	22	address strategic workforce needs of designated pilot regions
23	23	across the state by increasing the supply of quality, affordable
24	24	child care and encouraging child-care partnerships with employers.
25	25	(b) The program shall enable boards designated by the
26	26	commission to partner with local employers and high-quality
27	27	providers to provide grants that will fund innovative child-care
28	28	expansion projects and employer partnerships that directly impact
29	29	strategic local workforce needs.
30	30	Sec. 320.003. ADMINISTRATION. (a) From funds appropriated
31	31	to the commission for the program, the program shall be
32	32	administered by local workforce development boards that serve:
33	33	(1) a county with a population greater than 2 million
34	34	that is adjacent to a county with a population greater than 2.5
35	35	million, or
36	36	(2) two or more counties adjacent to subsection (1).
37	37	(b) If the commission determines there are additional funds
38	38	available after funding the local workforce development boards in
39	39	Subsection (a), the commission shall by rule adopt a process for
40	40	selecting additional local workforce development boards to operate
41	41	the pilot. Rulemaking shall include a competitive application
42	42	process and selection criteria.
43	43	Sec. 320.004. APPLICATION; STRATEGIC PLAN. (a) Any local
44	44	workforce development board that participates in the program shall
45	45	submit a letter of intent to the commission including:
46	46	(1) a strategic plan proposing:
47	47	(A) measurable performance goals and progress
48	48	measures related to increasing the supply and accessibility of
49	49	quality, affordable child-care services;
50	50	(B) plans for engaging regional stakeholders,
51	51	including local employers, business associations, and
52	52	organizations that provide services to children and families, to
53	53	develop and meet regional performance goals that are based on
54	54	strategic workforce needs;
55	55	(C) the number of providers to whom the board
56	56	plans to award grants;
57	57	(D) staffing structures to support the effective
58	58	implementation of the program, including technical assistance for
59	59	child-care providers; and
60	60	(E) plans to maximize the results of the program
61	61	and support the future sustainability of child-care providers
62	62	participating in the program if state funding is not continued; and
63	63	(2) the total amount of money requested to implement
64	64	that board's strategic plan.
65	65	Sec. 320.005. AGREEMENTS WITH PARTICIPATING BOARDS. The
66	66	commission shall develop and enter into a performance agreement
67	67	with each participating local workforce development board. Each of
68	68	those boards shall comply with the terms of the performance
69	69	agreement during its participation in the program. The performance
70	70	agreement must:
71	71	(1) include measurable performance goals and progress
72	72	measures that are:
73	73	(A) related to increasing the supply and
74	74	accessibility of quality, affordable child-care services in the
75	75	pilot region; and
76	76	(B) aligned to that board's strategic plan; and
77	77	(2) allocate responsibilities for accessing and
78	78	reporting progress and outcome information.
79	79	Sec. 320.007. ALLOCATION OF FUNDS. From the funds
80	80	appropriated to the commission for the program, the commission
81	81	shall award an amount of money to each local workforce development
82	82	board participating in the program. In determining the allocation
83	83	of money, the commission shall consider:
84	84	(1) the size and population of the pilot region;
85	85	(2) the unmet child-care needs in the region and the
86	86	proposed funding required to address the needs;
87	87	(3) the proposed number of eligible providers in each
88	88	region to whom that board intends to award grants;
89	89	(4) the budget requested in that board's proposed
90	90	strategic plan under Section 320.004(a)(2); and
91	91	(5) other factors determined by the commission.
92	92	Sec. 320.008. GRANTS. (a) From funds awarded to a local
93	93	workforce development board participating in the program, the
94	94	board, after conducting a competitive selection process, shall
95	95	award grants to eligible providers that enter into a grant contract
96	96	with the board to expand quality, affordable child-care services in
97	97	accordance with the region's strategic workforce needs and the
98	98	local workforce development board's approved strategic plan.
99	99	(b) In awarding a grant under the program, a local workforce
100	100	development board shall give preference to an eligible provider
101	101	that demonstrates capacity to:
102	102	(1) provide high-demand child-care services
103	103	identified by the board; and
104	104	(2) partner with one or more local employers.
105	105	Sec. 320.009. PROVIDER ELIGIBILITY. (a) To be eligible to
106	106	receive a grant under the program, a child-care provider must:
107	107	(1) be a Texas Rising Star Program provider with a
108	108	three-star rating or higher;
109	109	(2) be accredited by the National Association for the
110	110	Education of Young Children;
111	111	(3) have an accreditation from a Montessori
112	112	accreditation organization; or
113	113	(4) meet an alternative quality criterion or waiver
114	114	prescribed by the commission.
115	115	(b) A provider under Subsection (a) may not be owned or
116	116	operated by the organization that administers grants for the local
117	117	workforce development board under the state child care services
118	118	program administered by the commission.
119	119	(c) In consultation with local employers and other regional
120	120	stakeholders, the board shall develop a competitive application and
121	121	scoring process for eligible providers to apply for a grant under
122	122	the program to meet the goals in the board's approved strategic plan
123	123	under Section 320.004.
124	124	(d) A local workforce development board shall develop and
125	125	enter into a grant contract with each eligible provider awarded a
126	126	grant under the program. Each eligible provider awarded a grant
127	127	shall comply with the terms of the grant contract. At a minimum,
128	128	grant contracts must require eligible providers to:
129	129	(1) maintain the ability to enroll the required number
130	130	of children within each designated service area outlined in the
131	131	board's grant contract;
132	132	(2) ensure all educators employed by the provider earn
133	133	a minimum wage that is equal to or above the self-sufficient wage
134	134	required by Section 2308A.012, Government Code, in the county in
135	135	which the provider is located;
136	136	(3) maintain participation in the child-care services
137	137	program administered by the commission and accept participating
138	138	children as openings become available;
139	139	(4) maintain tuition rates at the provider's posted
140	140	rate or at a rate lower than the posted rate for families who do not
141	141	receive subsidized child-care services;
142	142	(5) maintain all program eligibility requirements;
143	143	(6) provide regular reports demonstrating compliance
144	144	with the board's grant contract; and
145	145	(7) provide any additional data requested by the
146	146	board.
147	147	Sec. 320.010. SUBCONTRACTING. (a) In accordance with
148	148	Section 2308.264(e), Government Code, a local workforce
149	149	development board may subcontract with a coordinating entity to
150	150	administer the program.
151	151	(b) The commission may adopt rules establishing
152	152	requirements for a coordinating entity with which a board
153	153	subcontracts under this section.
154	154	Sec. 320.011. USE OF FUNDS. (a) From money appropriated by
155	155	the legislature to implement the program, the commission may use
156	156	not more than:
157	157	(1) 9 percent of the total amount appropriated to pay
158	158	costs related to administering the program by the commission and
159	159	participating local workforce development boards, including
160	160	technical assistance provided to providers under the program; and
161	161	(2) 1 percent of the total amount appropriated to pay
162	162	costs related to research and evaluation of the program.
163	163	(b) The commission shall use at least 90 percent of the
164	164	total amount appropriated for grants administered under the
165	165	program.
166	166	(c) The commission shall adopt rules relating to the award
167	167	of grants under the program that are designed to maximize the impact
168	168	of the program and ensure the funding is sufficient to execute on
169	169	the terms of the grant contract.
170	170	(d) In awarding a grant under the program, the commission or
171	171	local workforce development boards may adjust reimbursement rates
172	172	as necessary to account for the costs of providing care to
173	173	specialized populations, including children with disabilities,
174	174	infants, toddlers, and children needing after-hours care.
175	175	(e) Each local workforce development board participating in
176	176	the program shall ensure that all grant money has been allocated not
177	177	later than December 31, 2027.
178	178	(f) In addition to funds appropriated by the legislature, to
179	179	administer and expand the impact of the program, the commission or
180	180	local workforce development boards may:
181	181	(1) seek and apply for any available federal or local
182	182	funds; and
183	183	(2) solicit and accept gifts, grants, and donations
184	184	from any other public or private source.
185	185	Sec. 320.012. QUARTERLY REPORT TO THE COMMISSION. (a) Each
186	186	local workforce development board participating in the program
187	187	shall submit a quarterly report to the commission, detailing the
188	188	use of grant money received under the program and related outcomes,
189	189	including:
190	190	(1) a list of providers receiving grant money and the
191	191	provider's monthly grant awards;
192	192	(2) each provider's compliance with performance goals
193	193	outlined in the provider's grant contract with the board; and
194	194	(3) that board's progress toward outcomes identified
195	195	in the approved strategic plan under Section 320.004.
196	196	(b) A local workforce development board shall submit the
197	197	first report required by this section not later than the 120th day
198	198	after the date the board awards its first grant to a provider under
199	199	the program and submit subsequent reports every 120 days
200	200	thereafter.
201	201	Sec. 320.013. REPORT. Not later than December 1, 2026, the
202	202	commission shall review the effectiveness of the program and submit
203	203	to the governor, the lieutenant governor, the speaker of the house
204	204	of representatives, and the members of each legislative standing
205	205	committee with primary jurisdiction over economic development a
206	206	written report regarding the outcomes, challenges, and
207	207	opportunities of the program.
208	208	Sec. 320.014. RULES. The commission shall adopt rules
209	209	necessary to implement this chapter.
210	210	Sec. 320.015. EXPIRATION. This chapter expires September
211	211	1, 2029.
212	212	SECTION 2. The Texas Workforce Commission is required to
213	213	implement a provision of this Act only if the legislature
214	214	appropriates money specifically for that purpose. If the
215	215	legislature does not appropriate money specifically for that
216	216	purpose, the commission may, but is not required to, implement a
217	217	provision of this Act using other appropriations that are available
218	218	for that purpose.
219	219	SECTION 3. This Act takes effect September 1, 2025.