SRC-JJJ, PNG C.S.H.B. 3333 76(R)BILL ANALYSIS Senate Research CenterC.S.H.B. 3333 76R15327 JMM-DBy: Tillery (Cain) Economic Development 5/12/1999 Committee Report (Substituted) DIGEST Currently, local workforce development boards (boards) receive state and federal funds to provide child-care assistance to low-income families. Local child care providers are reimbursed for the provision of this care at a rate determined by the Texas Workforce Commission (TWC). C.S.H.B. 3333 would require each of the state's boards to establish graduated reimbursement rates for child care based on the TWC's designated vendor program (program). The program certifies child care providers that meet certain enhanced quality standards. The bill requires that the minimum reimbursement rate for designated vendors be at least five percent greater than the rate for nondesignated vendors. In addition, the bill requires that each board allocate a portion of their federal child care dollars to fund a competitive procurement system for the provision of quality care for children under four years of age. PURPOSE As proposed, C.S.H.B. 3333 sets forth provisions regarding certain duties of local workforce development boards in connection with the provision of child care. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 2308G, 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 that the minimum reimbursement rate for designated vendors to be at least five percent greater than the maximum rate established for nondesignated vendors of the same category of care. Authorizes the designated vendor rate differential established in this section to be funded with federal child care development funds dedicated to quality improvement activities. Sec. 2308.316. FUNDING OF COMPETITIVE PROCUREMENT SYSTEM FOR INFANT AND TODDLER CHILD CARE. Requires each board to allocate a portion of its federal child care development funds to a competitive procurement system for the provision of quality child care for children under four years of age that encourages child care providers to voluntarily meet the criteria of the Texas Workforce Commission's designated vendor program or national accreditation. Requires special emphasis to be given to funding child care for children under four years of age in low-income communities. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.