HBA-MPA C.S.H.B. 3333 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3333 By: Tillery Economic Development 4/20/1999 Committee Report (Substituted) 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. C.S.H.B. 3333 provides for differential reimbursement rates to make child care more accessible, with the highest rates paid to accredited facilities and no facility receiving less than 80 percent of the local standard. 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 designated vendor program. Requires the highest reimbursement rate to be assigned to child care accredited by the National Association for the Education of Young Children. Provides that the minimum reimbursement rate must be 80 percent of the local rate based on a current market survey. Provides that the vendor program must be voluntary and have standards related to the accreditation and certification held by the vendor. Sec. 2308.316. FUNDING OF COMPETITIVE PROCUREMENT SYSTEM FOR CHILD CARE. Requires each board to allocate a portion of its federal child care development funds to a competitive procurement system that encourages the provision of child care for children under four years of age in registered family homes that satisfy certain specified conditions. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3333 differs from the substitute in SECTION 1 (proposed Section 2308.315, Government Code) by adding a provision requiring the highest reimbursement rate for child care to be assigned to child care accredited by the National Association for the Education of Young Children, and by providing that the minimum reimbursement rate must be 80 percent of the local rate based on a current market survey.