By:  Ellis, et al.                            S.B. No. 211

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the establishment and operation of the Texas child care

 1-2     fund.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subtitle B, Title 4, Labor Code, is amended by

 1-5     adding Chapter 308 to read as follows:

 1-6                     CHAPTER 308.  TEXAS CHILD CARE FUND

 1-7           Sec. 308.001.  DEFINITION.  In this chapter, "fund" means the

 1-8     Texas child care fund.

 1-9           Sec. 308.002.  TEXAS CHILD CARE FUND.  (a)  The Texas child

1-10     care fund is an account in the general revenue fund consisting of

1-11     state appropriations and money donated to the state by local

1-12     governments, businesses, nonprofit organizations, or other persons

1-13     for child care services.

1-14           (b)  Money in the fund shall be used to provide child care

1-15     services in a manner that maximizes the state's entitlement to

1-16     receive federal matching money.

1-17           Sec. 308.003.  ADMINISTRATION AND PROMOTION OF FUND.

1-18     (a)  The commission, with assistance from the advisory board

1-19     appointed under Section 308.004, shall:

1-20                 (1)  administer the fund;

1-21                 (2)  solicit donations to the fund from all appropriate

1-22     sources, including local governments, businesses, and nonprofit

1-23     organizations;

 2-1                 (3)  distribute money in the fund to provide child care

 2-2     services; and

 2-3                 (4)  aggressively promote public awareness of the fund

 2-4     and the need for donations to provide adequate child care services

 2-5     in this state.

 2-6           (b)  To encourage local child care planning and local

 2-7     participation in meeting matching requirements for state

 2-8     entitlement to federal child care funding, the commission shall use

 2-9     donated purchase agreements when appropriate.

2-10           (c)  The commission shall ensure that a local government that

2-11     donates money to the fund receives child care services in the

2-12     geographical area served by the local government of a value at

2-13     least equal to the amount of money donated by the local government.

2-14           (d)  The commission may adopt rules necessary for the

2-15     administration and promotion of the fund.

2-16           Sec. 308.004.  ADVISORY BOARD.  (a)  The commission shall

2-17     appoint a permanent advisory board to assist and monitor the

2-18     commission in administering and promoting the fund.  The advisory

2-19     board shall include:

2-20                 (1)  representatives from:

2-21                       (A)  the commission;

2-22                       (B)  the office of the comptroller;

2-23                       (C)  the Texas Department of Human Services;

2-24                       (D)  the Department of Protective and Regulatory

2-25     Services;

 3-1                       (E)  businesses and business organizations; and

 3-2                       (F)  nonprofit organizations; and

 3-3                 (2)  at least one consumer of child care services.

 3-4           (b)  The advisory board shall periodically evaluate the

 3-5     operation of the fund and make recommendations to the commission on

 3-6     the administration and promotion of the fund.

 3-7           (c)  A member of the advisory board serves at the will of the

 3-8     commission.

 3-9           (d)  The advisory board is subject to Article 6252-33,

3-10     Revised Statutes, other than Section 8 of that article.

3-11           SECTION 2.  Subchapter D, Chapter 301, Labor Code, is amended

3-12     by adding Section 301.067 to read as follows:

3-13           Sec. 301.067.  CHILD CARE MARKET SURVEY; COMPENSATION RATE.

3-14     (a)  The commission shall ensure that a biennial survey is

3-15     conducted to determine the local market rates of child care

3-16     services provided throughout the state.

3-17           (b)  Unless prohibited by federal law or regulations, a

3-18     provider of child care services that is reimbursed under a program

3-19     administered by the commission shall be reimbursed at a rate that

3-20     is the lesser of the provider's published rate to the general

3-21     public or the 75th percentile of the local market rate in the

3-22     provider's geographic area.

3-23           SECTION 3.  Subsection (b), Section 301.067, Labor Code, as

3-24     added by this Act, does not apply to child care services provided

3-25     under a contract entered into by a child care provider before the

 4-1     effective date of this Act.

 4-2           SECTION 4.  The Texas Workforce Commission shall appoint the

 4-3     advisory board required by Section 308.004, Labor Code, as added by

 4-4     this Act, not later than October 1, 1997.

 4-5           SECTION 5.  The importance of this legislation and the

 4-6     crowded condition of the calendars in both houses create an

 4-7     emergency and an imperative public necessity that the

 4-8     constitutional rule requiring bills to be read on three several

 4-9     days in each house be suspended, and this rule is hereby suspended,

4-10     and that this Act take effect and be in force from and after its

4-11     passage, and it is so enacted.