HBA-DMD, MPA H.B. 3333 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3333 By: Tillery Economic Development 11/1/1999 Enrolled BACKGROUND AND PURPOSE Previously, child care for low-income families was set at a 75 percent reimbursement rate by the federal government. This is no longer the case. Low reimbursement rates make it difficult for many providers of child care in low-income communities to provide sufficient care. The child care most needed is for children younger than three. This is also the most expensive, and among the least available in Texas. Quality child care requires low teacher-child ratios, small groups, and well trained staff. Federal guidelines recommend funding a network to provide outreach, technical assistance, and ongoing support to family day homes. H.B. 3333 requires each local workforce development board (board) to establish graduated reimbursement rates for child care based on the Texas Workforce Commission's (TWC) designated vendor program and sets limits for the reimbursement rates. This bill also requires each board to allocate a portion of its federal child care development funds to a competitive procurement process for a system for quality child care for children under four years of age. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter G, Chapter 2308, Government Code, by adding Sections 2308.315 and 2308.316, as follows: Sec. 2308.315. REIMBURSEMENT RATES FOR CHILD CARE. Requires each local workforce development board (board) to establish graduated reimbursement rates for child care based on the Texas Workforce Commission's (TWC) designated vendor program. Provides that the minimum reimbursement rate must be at least five percent greater than the maximum rate established for nondesignated vendors for the same category of care. Provides that the designated vendor rate differential established in this section shall be funded with federal child care development funds dedicated to quality improvement activities. Sec. 2308.316. FUNDING OF COMPETITIVE PROCUREMENT PROCESS FOR INFANT AND EARLY CHILDHOOD CHILD CARE. Requires each board to allocate a portion of its federal child care development funds dedicated to quality improvement activities to a competitive procurement process for a system for quality child care for children under four years of age that encourages child care providers to voluntarily meet the criteria of the TWC's designated vendor program or national accreditation. Provides that special consideration shall be given to funding child care for children under four years of age in low-income communities, when allocating funds under this section. Prohibits this section from being interpreted to limit parental choice. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.