SRC-MKV S.B. 1732 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1732
77R7041 KKA-DBy: Cain
Health & Human Services
4/17/2001
As Filed


DIGEST AND PURPOSE 

Child-care Management System vendors often place children in large
facilities which can bear lowerthan-market-price reimbursement rates.
These facilities may not be convenient for parents or provide the
"home-like" environment in which children under the age of four thrive.
Studies show that such an environment is more conducive to learning and
provides a continuity of care, due to lower turnover. As proposed, S.B.
1732 raises the reimbursement rate for operators of family day care homes
and provides for pilot projects in support of these facilities. 

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.  Amends Section 2308.315, Government Code, as follows:

 (a) Adds definitions of "designated vendor" and "family home."

 (b) Makes a conforming change.

(c) Requires the minimum reimbursement rate for a designated vendor who is
a registered family home and who provides child care for children under
four years of age to be at least 95 percent of the vendor's actual
documented cost in providing the child care. 

SECTION 2.  Amends Chapter 2308G, Government Code, by adding Section
2308.317, as follows: 

Sec. 2308.317.  PILOT PROGRAMS FOR SYSTEMS OF FAMILY HOMES.  (a) Defines
"commission" and "family home." 

(b)  Requires the Texas Workforce Commission (commission) to select one or
more vendors to operate pilot programs in five different areas of the state
under which child care is provided by operators of eligible family homes to
children under four years of age.  Requires each pilot program to include
at least 25 operators of eligible family homes. 

(c)  Requires each board in an affected area of the state, after selection
of the vendors, to administer and fund the pilot program operating within
that area, subject to guidelines established by the commission.  Requires
each of those boards to 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)  Requires the commission to select vendors based on a competitive
procurement process.  Requires a vendor to have at least seven years of
relevant experience to be  eligible to participate in a pilot program. 

(e)  Requires a vendor selected to participate in a pilot program to carry
out certain duties. 
  
(f)  Requires an operator of a family home to meet certain requirements to
be eligible to participate in a pilot program. 
  
(g)  Requires the commission, not later than December 1 of each
even-numbered year, to submit to the governor, lieutenant governor, and
speaker of the house of representatives a report on the pilot programs
established under this section. Requires the report to 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.  Requires the evaluation component to 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. Requires the report to also include recommendations on
continuation or expansion of the programs. 
 
  (h)  Provides that this section expires September 1, 2005.

SECTION 3.  Effective date: September 1, 2001.