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