By Coleman                                            H.B. No. 3535
         76R7608 JMM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the allocation by the Texas Workforce Commission of
 1-3     certain funds for child care services.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter D, Chapter 302, Labor Code, is amended
 1-6     by adding Section 302.064 to read as follows:
 1-7           Sec. 302.064.  ALLOCATION OF FUNDS FOR CHILD CARE SERVICES.
 1-8     (a)  Funds available to the commission for child care services
 1-9     shall be allocated to local workforce development areas using
1-10     need-based formulas as provided by this section.
1-11           (b)  The following funds are allocated according to the
1-12     relative proportion of the total number of children in a local
1-13     workforce development area who are under five years of age and live
1-14     in families having income that does not exceed 100 percent of the
1-15     poverty level as compared to the total number of children statewide
1-16     who are under five years of age and live in families having income
1-17     that does not exceed 100 percent of the poverty level:
1-18                 (1)  federal child care and development fund mandatory
1-19     funds authorized under Section 418(a)(1) of the federal Social
1-20     Security Act (42 U.S.C. Section 618) as amended;
1-21                 (2)  general revenue maintenance of effort funds;
1-22                 (3)  federal social service block grant funds; and
1-23                 (4)  federal temporary assistance for needy families
1-24     (TANF) funds appropriated for child care other than funds withheld
 2-1     for state-level responsibilities.
 2-2           (c)  The following funds are allocated according to the
 2-3     relative proportion of the total number of children in a local
 2-4     workforce development area who are under 13 years of age and live
 2-5     in families having income that does not exceed 100 percent of the
 2-6     poverty level as compared to the total number of children statewide
 2-7     who are under 13 years of age and live in families having income
 2-8     that does not exceed 100 percent of the poverty level:
 2-9                 (1)  federal child care and development fund matching
2-10     funds authorized under Section 418(a)(2) of the federal Social
2-11     Security Act (42 U.S.C. Section 618) as amended; and
2-12                 (2)  state general revenue matching funds and estimated
2-13     appropriated receipts of donated funds.
2-14           (d)  Federal child care and development fund discretionary
2-15     funds authorized under the federal Social Security Act (42 U.S.C.
2-16     Section 301 et seq.)  as amended shall be allocated according to
2-17     the relative proportion of the total number of children in a local
2-18     workforce development area who are under 13 years of age and live
2-19     in families having income that does not exceed 150 percent of the
2-20     poverty level as compared to the total number of children statewide
2-21     who are under 13 years of age and live in families having income
2-22     that does not exceed 150 percent of the poverty level.
2-23           (e)  Federal food stamp employment and training child care
2-24     funds shall be allocated among the local workforce development
2-25     areas according to the relative proportion of the total number of
2-26     children in a local workforce development area who are at least six
2-27     years of age and not more than 12 years of age and live in the
 3-1     household of a mandatory food stamp work registrant as compared to
 3-2     the total number of children statewide who are at least six years
 3-3     of age and not more than 12 years of age and live in the household
 3-4     of a mandatory food stamp work registrant.
 3-5           (f)  The following requirements apply to Subsections (b)-(d):
 3-6                 (1)  not more than five percent of the funds allocated
 3-7     may be used for administrative costs as defined by federal
 3-8     regulations in 45 C.F.R. Section 98.52 as amended;
 3-9                 (2)  at least four percent of the funds allocated are
3-10     required to be used to improve the quality of child care, as
3-11     defined by federal regulations in 45 C.F.R.  Section 98.51 as
3-12     amended;
3-13                 (3)  a person who is a transitional client eligible for
3-14     child care for a child of the person or a choices client shall be
3-15     served on a priority basis to enable the person to participate in
3-16     work, education, or training activities;
3-17                 (4)  the percentage of the funds allocated that is
3-18     spent for direct child care services must be equal to or exceed the
3-19     percentage of the funds allocated for direct child care services in
3-20     fiscal year 1999; and
3-21                 (5)  a local workforce development board is required to
3-22     comply with any additional requirement adopted by the commission or
3-23     contained in the board contract.
3-24           SECTION 2.  This Act takes effect September 1, 1999.
3-25           SECTION 3.  The importance of this legislation and the
3-26     crowded condition of the calendars in both houses create an
3-27     emergency and an imperative public necessity that the
 4-1     constitutional rule requiring bills to be read on three several
 4-2     days in each house be suspended, and this rule is hereby suspended.