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.