SRC-DBM C.S.S.B. 1374 76(R) BILL ANALYSIS Senate Research CenterC.S.S.B. 1374 76R12327 KLA-DBy: Shapleigh Human Services 4/14/1999 Committee Report (Substituted) DIGEST Currently, Texas requires local communities to raise a portion of the federal Child Care and Development Fund for matching purposes, regardless of a community's economic status. Although some communities are able to raise the child care matching funds, this policy penalizes poor communities which have difficulty raising the amount of matching funds required by the state. C.S.S.B. 1374 would authorize the Texas Workforce Commission to require, request, or accept from a political subdivision matching or other local funds or any other local incentives to make the most efficient use of the child care and development fund administered by the commission in making adjustments for satisfying federal requirements. PURPOSE As proposed, C.S.S.B. 1374 regulates the local matching fund requirement in terms of the use of the child care and development fund in a political subdivision that consists of all or a portion of an economically disadvantaged county. 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 302D, Labor Code, by adding Section 302.064, as follows: Sec. 302.064. RELIEF FROM LOCAL MATCHING FUNDS REQUIREMENT. (a) Defines "economically disadvantaged county." (b) Authorizes the Texas Workforce Commission (commission), except as provided by Subsection (c), to require, request, or accept from a local workforce development area, matching or other local funds or any other local incentives to make the most efficient use of the child care and development fund administered by the commission. (c) Prohibits the commission from considering the absence or value of local incentives provided under Subsection (b) beyond the minimum local matching funds when evaluating a proposal for the use of childcare and development funds in a local workforce development area in which at least half of the counties that constitute the area are economically disadvantaged counties. Requires the commission to adjust the minimum local matching funds requirement after evaluating the local workforce development area's effort and ability to meet the requirement. (d) Authorizes the commission, when making an adjustment under Subsection (c)(2), to use any other available resources to help satisfy a federal requirement. (e) Requires the commission to report annually to the governor, the lieutenant governor, and the speaker of the house of representatives regarding the use of matching funds, local incentives, and the commission's ability to ensure that local workforce development areas in which at least half of the counties that constitute the area are economically disadvantaged counties have equal ability to compete for funding through the child care and development fund with local workforce development areas in which at least half of the counties that constitute the area are economically disadvantaged counties. SECTION 2.Effective date: September 1, 1999. SECTION 3.Emergency clause. SUMMARY OF COMMITTEE CHANGES SECTION 1. Amends Section 302.064, Labor Code, to authorize the commission, except as provided by Subsection (c), to require, request, or accept from a local workforce development area, rather than political subdivision, matching or other local funds or any other local incentives to make the most efficient use of the child care and development fund administered by the commission. Prohibits the commission from considering the absence or value of local incentives provided under Subsection (b) beyond the minimum local matching funds when evaluating a proposal for the use of childcare and development funds in a local workforce development area in which at least half of the counties that constitute the area are economically disadvantaged counties, rather than a political subdivision. Requires the commission to adjust the minimum local matching funds requirement after evaluating the local workforce development area's effort and ability, rather than political subdivision's effort and ability, to meet the requirement. Requires the commission to report annually to the governor, the lieutenant governor, and the speaker of the house of representatives regarding the use of matching funds, local incentives, and the commission's ability to ensure that local workforce development areas in which at least half of the counties that constitute the area are economically disadvantaged counties, rather than political subdivisions located in economically disadvantaged counties, have equal ability to compete for funding through the child care and development fund with local workforce development areas in which at least half of the counties that constitute the area are economically disadvantaged counties, rather than political subdivisions in counties that are not economically disadvantaged.