Amend HB 3578 as follows: (1) In SECTION 1 of the bill, in the introductory language, strike "Section 2308.317" and substitute "Sections 2308.317 and 2308.318". (2) Immediately following SECTION 1 of the bill, insert the following: Sec. 2308.318. PILOT PROGRAMS FOR SYSTEMS OF FAMILY HOMES. (a) In this section: (1) "Commission" means the Texas Workforce Commission. (2) "Family home" has the meaning assigned by Section 42.002, Human Resources Code. (b) The commission shall select one or more vendors to operate pilot programs in three different areas of the state under which child care is provided by operators of eligible family homes to children under four years of age. Each pilot program must include at least 10 operators of eligible family homes. At least one pilot program must be located in a rural area. (c) After selection of the vendors, each board in an affected area of the state shall administer and fund the pilot program operating within that area, subject to guidelines established by the commission. Each of those boards shall allocate a portion of the board's federal child care development funds to pay the costs of the pilot program operating within that area. (d) The commission shall select vendors based on a competitive procurement process. A vendor must have at least seven years of relevant experience to be eligible to participate in a pilot program. (e) A vendor selected to participate in a pilot program shall: (1) recruit eligible operators of family homes to participate in the program; and (2) provide those eligible operators participating in the program with: (A) training that is based on fostering relationships that promote rich language development and provide the foundation for relationship-centered environments; (B) mentoring; and (C) other support. (f) To be eligible to participate in a pilot program, an operator of a family home must: (1) be registered under Chapter 42, Human Resources Code, and be in compliance with all applicable requirements imposed by the Department of Protective and Regulatory Services under that chapter; (2) have a child-to-staff ratio that complies with the criteria of the commission's designated vendor program; (3) provide a homelike environment; (4) demonstrate an environment that is rich in language experiences; (5) provide child care to a group of children of which at least 75 percent are eligible for state-subsidized child care; and (6) maintain flexible hours of operation that meet the needs of parents with nontraditional working hours. (g) The commission may not implement the pilot programs in a manner that in any way has the effect of limiting parental choice regarding state-subsidized child care. (h) Not later than December 1 of each even-numbered year, the commission shall submit to the governor, lieutenant governor, and speaker of the house of representatives a report on the pilot programs established under this section. The report must include an evaluation component prepared by the vendor or vendors of the pilot programs that compares the language development and other developmental features of children receiving child care through the pilot programs to the language development and other developmental features of children receiving child care in other settings. The evaluation component must address the efficacy of providing child care in the manner provided by the pilot programs and provide a cost/benefits ratio relating to that manner of child care delivery. The report must also include recommendations on continuation or expansion of the programs. (i) This section expires September 1, 2005.