SRC-SEW S.B. 833 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 833
77R4009 CBH-DBy: Moncrief
Health and Human Services
3/29/2001
As Filed


DIGEST AND PURPOSE 

Under current law, child-care facilities that care for at least 25 percent
of their clients at 85 percent of the state median income are eligible for
a tax exemption on items for the operation of their child care business.
As proposed, S.B. 833 creates a sales tax exemption to child-care centers
that serve lowincome families.  This bill also codifies certain child-care
training standards currently in the Department of Protective and Regulatory
Services (department) rule and requires 20 hours of annual training in
certain subjects for child-care workers.  This bill also requires the
department to develop a checklist for inspection that eliminates some of
the duplicative inspection of day care centers by various state and local
regulatory entities and authorizes school districts to pick up and drop off
a child at day care if the child's parent designates the day care as the
primary address for this purpose.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  SALES AND USE TAX EXEMPTION.  (a) Presents legislative findings.

  (b)  Presents findings of purpose.

  (c) Amends Chapter 151H, Tax Code, by adding Section 151.333, as follows:

Sec. 151.333.  ITEMS PURCHASED OR USED BY CERTAIN CHILD-CARE FACILITIES.
(a) Defines "child-care facility." 

(b) Provides that a taxable item sold, leased, or rented to or stored,
used, or consumed by a child-care facility that meets the requirements
prescribed by Subsection (d) is exempt from the taxes imposed by this
chapter if the taxable item is used in the provision of child-care
services. 

  (c) Establishes what items are considered taxable items exempt under this
section. 

  (d) Sets forth requirements for qualifying child-care facilities under
this section. 

(e) Requires the child-care facility to give the seller an exemption
certificate that certifies in writing to the seller that the facility has
qualified for exemption under this section and that the taxable item
qualifies as exempt under this section. 

SECTION 2.  NEEDS ASSESSMENT.  Amends Chapter 40C, Human Resources Code, by
adding Section 40.0526, as follows: 

Sec. 40.0526.  NEEDS ASSESSMENT FOR CHILD-CARE SERVICES.  (a) Requires the
Department of Protective and Regulatory Services (department) to conduct a
statewide assessment of the need for child-care services that, at a
minimum, performs certain stated functions. 

(b) Authorizes the department to work with organizations that provide
child-care resources and referrals, including the Texas Association of
Child Care Resource and Referral Agencies, to complete the assessment
required by Subsection (a). 

SECTION 3. TRAINING.  Amends Section 42.0421(a), Human Resources Code, to
set forth guidelines regarding the requirements for minimum training
standards prescribed by the department under Section 42.042(p) for an
employee of a day-care center or group day-care home.   

SECTION 4.  INSPECTIONS.  Amends Section 42.0442, Human Resources Code, by
adding Subsection (c) to require the interagency task force to establish an
inspection checklist based on the inspection protocol developed under
Subsection (b).  Requires each state agency that inspects a facility listed
in Subsection (a) to use the inspection checklist in performing an
inspection.  Requires the department to collect from each state agency the
data gathered from the checklists and enter the data into the inspection
information database established under Section 42.0443.   

SECTION 5.  DESIGNATION OF SCHOOL BUS LOCATION.  Amends Section 34.007(b),
Education Code, to authorize the county or school board, in establishing
and operating the transportation system, to allow a parent to designate a
child-care facility, as defined by Section 42.002 (Definitions), Human
Resources Code, instead of the child's residence as the regular location
for purposes of obtaining transportation under the system to and from the
child's school. 

SECTION 6.  TRANSPORTATION ALLOTMENT.  Amends Section 42.155, Education
Code, by adding Subsection (k) to prohibit the commissioner of education,
notwithstanding any other provision of this section, from reducing the
allotment to which a district or county is entitled under this section
because the district or county provides transportation for an eligible
student to and from a child-care facility, as defined by Section 42.002
(Definitions), Human Resources Code, instead of the student's residence, as
authorized by Section 34.007 (Public School Transportation System),
Education Code, if the transportation is provided within the approved
routes of the district or county for the school the student attends. 

SECTION 7.  EFFECTIVE DATE.  (a) Provides that, except as provided by
Subsection (b) of this section, this Act takes effect September 1, 2001. 

(b) Provides that Section 151.333, Tax Code, as added by this Act, takes
effect October 1, 2001.