AN ACT 1-1 relating to the establishment and operation of the Texas child care 1-2 fund and to the development of a statewide guide on child care. 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 (e) The advisory board is subject to Chapter 325, Government 3-12 Code (Texas Sunset Act). Unless continued in existence as provided 3-13 by that chapter, the advisory board is abolished and this section 3-14 expires September 1, 2003. 3-15 SECTION 2. Subchapter D, Chapter 301, Labor Code, is amended 3-16 by adding Section 301.067 to read as follows: 3-17 Sec. 301.067. CHILD-CARE MARKET SURVEY; COMPENSATION RATE. 3-18 (a) The commission shall ensure that a biennial survey is 3-19 conducted to determine the local market rates of child-care 3-20 services provided throughout the state. 3-21 (b) Local market rates in a geographic area in which a 3-22 substantial number of child-care service providers charge a rate 3-23 that is less than the actual cost of providing service in that area 3-24 may be adjusted to reflect the actual cost of providing service. 3-25 (c) Unless prohibited by federal law or regulations, a 4-1 provider of child-care services that is reimbursed under a program 4-2 administered by the commission shall be reimbursed at a rate that 4-3 is the lesser of the provider's published rate to the general 4-4 public or the 75th percentile of the local market rate, as adjusted 4-5 under Subsection (b) if appropriate, in the provider's geographic 4-6 area. 4-7 SECTION 3. Subchapter D, Chapter 301, Labor Code, is amended 4-8 by adding Section 301.068 to read as follows: 4-9 Sec. 301.068. CHILD-CARE ADMINISTRATION. (a) The 4-10 commission, or a local workforce development board that accepts 4-11 child-care funds from the commission, shall contract with 4-12 government organizations, public nonprofit agencies, or 4-13 community-based organizations, as defined by 20 U.S.C. Section 4-14 1201a and its subsequent amendments, to administer the subsidized 4-15 child-care program through the existing uniform statewide brokered 4-16 system. 4-17 (b) An entity with whom the commission or a board contracts 4-18 must demonstrate: 4-19 (1) a variety of social service experiences with the 4-20 local client population; and 4-21 (2) experience in a federal and state funded system of 4-22 child-care vendor management in this state, child development, 4-23 support services, and financial management. 4-24 (c) Not later than November 15, 1998, the commission shall 4-25 submit a comprehensive report on local child-care administration to 5-1 the governor, the lieutenant governor, and the speaker of the house 5-2 of representatives. The report shall include information on: 5-3 (1) the performance of each child-care administration 5-4 contractor; 5-5 (2) the success in each local workforce development 5-6 area of integrating child-care services into the workforce 5-7 development system; and 5-8 (3) the readiness of each local workforce development 5-9 board to procure contracts for child-care administration. 5-10 (d) This section expires September 1, 1999. 5-11 SECTION 4. Subchapter B, Chapter 403, Government Code, is 5-12 amended by adding Section 403.026 to read as follows: 5-13 Sec. 403.026. CHILD-CARE GUIDE; INTERAGENCY WORK GROUP. 5-14 (a) The comptroller shall develop and periodically update a 5-15 statewide guide for child care designed to assist child-care 5-16 consumers in making informed choices regarding available child-care 5-17 services and to provide useful information regarding the child-care 5-18 industry to child-care service providers. The guide must: 5-19 (1) contain comprehensive and current information on: 5-20 (A) child-care services, including consumer 5-21 information on staff-child ratios, group sizes, level of training 5-22 of staff and management, hours of availability, price information, 5-23 and other relevant consumer information; 5-24 (B) early childhood development and factors to 5-25 consider in making informed child-care choices; 6-1 (C) child care for children with disabilities; 6-2 (D) training opportunities in the child-care 6-3 profession; 6-4 (E) child-care financing options; 6-5 (F) technical assistance for child-care service 6-6 providers; and 6-7 (G) other relevant topics that will assist a 6-8 child-care consumer in making informed child-care choices as 6-9 determined by the comptroller and the interagency work group 6-10 created under Subsection (b); and 6-11 (2) enable a child-care consumer to identify and 6-12 assess each option available for meeting a child-care consumer's 6-13 individual needs. 6-14 (b) An interagency work group is created to assist the 6-15 comptroller in developing and updating the guide. The work group 6-16 is composed of representatives of: 6-17 (1) the comptroller's office, appointed by the 6-18 comptroller; 6-19 (2) the Texas Workforce Commission, appointed by the 6-20 executive director of that agency; 6-21 (3) the Texas Department of Human Services, appointed 6-22 by the commissioner of human services; 6-23 (4) the Department of Protective and Regulatory 6-24 Services, appointed by the executive director of that agency; 6-25 (5) businesses and business organizations, appointed 7-1 by the comptroller; 7-2 (6) resource and referral agencies, appointed by the 7-3 comptroller; 7-4 (7) nonprofit organizations, appointed by the 7-5 comptroller; 7-6 (8) child-care consumers, appointed by the 7-7 comptroller; 7-8 (9) child-care providers, appointed by the 7-9 comptroller; and 7-10 (10) agencies or organizations that contract with the 7-11 Texas Workforce Commission or a local workforce development board 7-12 for the management of child-care services, appointed by the Texas 7-13 Workforce Commission. 7-14 (c) A member of the work group serves at the will of the 7-15 appointing agency. 7-16 (d) The comptroller shall appoint a member of the work group 7-17 to serve as presiding officer, and members of the work group shall 7-18 elect any other necessary officers. 7-19 (e) The work group shall meet at the call of the presiding 7-20 officer. 7-21 (f) The appointing entity is responsible for the expenses of 7-22 a member's service on the work group. A member of the work group 7-23 receives no additional compensation for serving on the work group. 7-24 (g) The work group is not subject to Article 6252-33, 7-25 Revised Statutes. 8-1 (h) The entities listed in Subsection (b) shall take all 8-2 action necessary to assist the comptroller in developing and 8-3 updating the guide, including providing staff with expertise in 8-4 information and referral services and other necessary resources, 8-5 but may not diminish services required to be provided by other law. 8-6 (i) The comptroller shall make the guide available to the 8-7 public in electronic format and through the Internet. 8-8 SECTION 5. Not later than January 1, 1998, the comptroller 8-9 of public accounts shall complete development of the child-care 8-10 guide required by Section 403.026, Government Code, as added by 8-11 this Act, and make the guide available in the manner required by 8-12 that section. 8-13 SECTION 6. Subsection (c), Section 301.067, Labor Code, as 8-14 added by this Act, does not apply to child-care services provided 8-15 under a contract entered into by a child-care provider before the 8-16 effective date of this Act. 8-17 SECTION 7. The Texas Workforce Commission shall appoint the 8-18 advisory board required by Section 308.004, Labor Code, as added by 8-19 this Act, not later than October 1, 1997. 8-20 SECTION 8. The importance of this legislation and the 8-21 crowded condition of the calendars in both houses create an 8-22 emergency and an imperative public necessity that the 8-23 constitutional rule requiring bills to be read on three several 8-24 days in each house be suspended, and this rule is hereby suspended, 8-25 and that this Act take effect and be in force from and after its 9-1 passage, and it is so enacted. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 211 passed the Senate on February 13, 1997, by the following vote: Yeas 31, Nays 0; and that the Senate concurred in House amendments on May 28, 1997, by the following vote: Yeas 31, Nays 0. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 211 passed the House, with amendments, on May 25, 1997, by the following vote: Yeas 110, Nays 25, one present not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor