JKM C.S.S.B. 211 75(R)BILL ANALYSIS ECONOMIC DEVELOPMENT C.S.S.B. 211 By: Ellis (Naishtat) 4-29-97 Committee Report (Substituted) BACKGROUND Currently, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 makes $499.3 million in federal child care matching funds available to Texas for fiscal years 1997 through 2002. In order to draw its share of federal matching funds, Texas must provide maintenance of effort (MOE) funding at the amount of state funds appropriated in fiscal year 1995, and all block grant funds must be spent or obligated. Texas must either spend more from general revenue or seek other sources of money. This bill creates the Texas Child Care Fund to maximize federal matching funds for child care, and will direct the Texas Workforce Commission to administer the fund, solicit donations, and aggressively promote public awareness of the fund. PURPOSE As proposed, S.B. 211 provides for the operation of the Texas Child Care Fund for the promotion of child care services. RULEMAKING AUTHORITY Rulemaking authority is granted to the Texas Workforce Commission in SECTION 1 (Section 308.003(d), Labor Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 4B, Labor Code, by adding Chapter 308, as follows: CHAPTER 308. TEXAS CHILD CARE FUND Sec. 308.001. DEFINITION. Defines "fund." Sec. 308.002. TEXAS CHILD CARE FUND. Provides that the Texas Child Care Fund (fund) consists of state appropriations and money donated to the state by local governments, businesses, nonprofit organizations, or other persons for child care services. Requires the fund to be used to maximize federal matching funds. Sec. 308.003. ADMINISTRATION AND PROMOTION OF FUND. Sets forth the duties of the Texas Workforce Commission (commission). Requires the commission to encourage local child care planning and local participation in meeting matching requirements for state entitlement to federal child care funding. Requires the commission to use donated purchase agreements when appropriate. Requires the commission to ensure that a local government that donates money receives child care services in the area served by the local government of at least the amount donated. Authorizes the commission to adopt rules necessary for the administration and promotion of the fund. Sec. 308.004. ADVISORY BOARD. Requires the commission to appoint a permanent advisory board (board) to assist in administering and promoting the fund. Sets forth the constituency and duties of the board. Provides that the board is subject to Article 6252-33, V.T.C.S., other than Section 8 of that article. Establishes a sunset date for the advisory board. SECTION 2. Amends Subchapter D, Chapter 301, Labor Code, by adding Sec. 301.067. Subsection (a) directs the commission to ensure that a survey is conducted to determine the local market rates of child care services. Subsection (b) states that unless prohibited by federal law, a child care provider that is reimbursed under a commission program shall be reimbursed at a rate that is the lesser of the provider's published rate to the general public or the 75th percentile of the local market rate in the area. SECTION 3. Exempts from Section 301.067(b), Labor Code, child care services provided under a contract entered into by child care providers before the effective date of this Act. SECTION 4. Requires the Texas Workforce Commission to appoint the board no later than October 1, 1997. SECTION 5. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1. CSSB 211 Sec. 308.004 adds subsection (e) which establishes a Sunset date for the advisory board.