By Moncrief S.B. No. 833
77R4009 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to child-care services and to an exemption from the sales
1-3 and use tax for certain equipment purchased or used to provide
1-4 child-care services.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. SALES AND USE TAX EXEMPTION. (a) The legislature
1-7 finds that:
1-8 (1) this state is experiencing a shortage of
1-9 affordable child care;
1-10 (2) the cost of child care in this state is growing at
1-11 a rate few parents can afford;
1-12 (3) publicly subsidized child care does not meet the
1-13 current need for child care in low-income families in this state;
1-14 and
1-15 (4) it is necessary to offer incentives and
1-16 opportunities to child-care facilities to provide affordable child
1-17 care to low-income families in this state.
1-18 (b) The purpose of this section is to offer tax relief to
1-19 child-care facilities that demonstrate an effort to assist this
1-20 state in addressing the need for affordable and high-quality child
1-21 care to low-income families.
1-22 (c) Subchapter H, Chapter 151, Tax Code, is amended by
1-23 adding Section 151.333 to read as follows:
1-24 Sec. 151.333. ITEMS PURCHASED OR USED BY CERTAIN CHILD-CARE
2-1 FACILITIES. (a) In this section, "child-care facility" has the
2-2 meaning assigned by Section 42.002, Human Resources Code.
2-3 (b) A taxable item sold, leased, or rented to or stored,
2-4 used, or consumed by a child-care facility that meets the
2-5 requirements prescribed by Subsection (d) is exempt from the taxes
2-6 imposed by this chapter if the taxable item is used in the
2-7 provision of child-care services.
2-8 (c) Taxable items exempt under this section include:
2-9 (1) furniture;
2-10 (2) cleaning supplies;
2-11 (3) computer hardware and software;
2-12 (4) office supplies;
2-13 (5) rugs, mats, and pillows;
2-14 (6) books and educational, writing, and coloring
2-15 supplies;
2-16 (7) kitchen appliances and other food preparation
2-17 equipment; and
2-18 (8) recreational equipment.
2-19 (d) A child-care facility qualifies for the exemption
2-20 provided by this section only if at least 25 percent of the
2-21 children receiving child-care services at the facility are from
2-22 families whose household income is not more than 85 percent of the
2-23 state median income, adjusted for family size. In determining
2-24 whether a child-care facility qualifies under this section, the
2-25 facility may not include children whose child-care costs are
2-26 subsidized by federal child-care development funds.
2-27 (e) The child-care facility must give the seller an
3-1 exemption certificate that certifies in writing to the seller that
3-2 the child-care facility has qualified for exemption under this
3-3 section and that the taxable item qualifies as exempt under this
3-4 section.
3-5 SECTION 2. NEEDS ASSESSMENT. Subchapter C, Chapter 40, Human
3-6 Resources Code, is amended by adding Section 40.0526 to read as
3-7 follows:
3-8 Sec. 40.0526. NEEDS ASSESSMENT FOR CHILD-CARE SERVICES. (a)
3-9 The department shall conduct a statewide assessment of the need for
3-10 child-care services that, at a minimum:
3-11 (1) evaluates existing services;
3-12 (2) identifies general gaps in statewide and urban
3-13 services;
3-14 (3) identifies gaps in services delivered to specific
3-15 age groups; and
3-16 (4) identifies barriers to the delivery of services.
3-17 (b) The department may work with organizations that provide
3-18 child-care resources and referrals, including the Texas Association
3-19 of Child Care Resource and Referral Agencies, to complete the
3-20 assessment required by Subsection (a).
3-21 SECTION 3. TRAINING. Section 42.0421(a), Human Resources
3-22 Code, is amended to read as follows:
3-23 (a) The minimum training standards prescribed by the
3-24 department under Section 42.042(p) for an employee of a day-care
3-25 center or group day-care home must include:
3-26 (1) eight hours of initial training for an employee of
3-27 a day-care center who has no previous training or employment
4-1 experience in a regulated child-care facility, to be completed
4-2 before the employee is given responsibility for a group of
4-3 children;
4-4 (2) 15 hours of annual training for each employee of a
4-5 day-care center or group day-care home, excluding the director,
4-6 which must include at least six hours of training in one or more of
4-7 the following areas:
4-8 (A) child growth and development;
4-9 (B) guidance and discipline;
4-10 (C) age-appropriate curriculum; and
4-11 (D) teacher-child interaction; and
4-12 (3) 20 hours of annual training for each director of a
4-13 day-care center or group day-care home, which must include at least
4-14 six hours of training in one or more of the following areas:
4-15 (A) child growth and development;
4-16 (B) guidance and discipline;
4-17 (C) age-appropriate curriculum; and
4-18 (D) teacher-child interaction.
4-19 SECTION 4. INSPECTIONS. Section 42.0442, Human Resources
4-20 Code, is amended by adding Subsection (c) to read as follows:
4-21 (c) The interagency task force shall establish an inspection
4-22 checklist based on the inspection protocol developed under
4-23 Subsection (b). Each state agency that inspects a facility listed
4-24 in Subsection (a) shall use the inspection checklist in performing
4-25 an inspection. The department shall collect from each state agency
4-26 the data gathered from the checklists and enter the data into the
4-27 inspection information database established under Section 42.0443.
5-1 SECTION 5. DESIGNATION OF SCHOOL BUS LOCATION. Section
5-2 34.007(b), Education Code, is amended to read as follows:
5-3 (b) In establishing and operating the transportation system,
5-4 the county or school district board:
5-5 (1) shall employ school bus drivers certified in
5-6 accordance with standards and qualifications adopted by the
5-7 Department of Public Safety; and
5-8 (2) may allow a parent to designate a child-care
5-9 facility, as defined by Section 42.002, Human Resources Code,
5-10 instead of the child's residence as the regular location for
5-11 purposes of obtaining transportation under the system to and from
5-12 the child's school.
5-13 SECTION 6. TRANSPORTATION ALLOTMENT. Section 42.155,
5-14 Education Code, is amended by adding Subsection (k) to read as
5-15 follows:
5-16 (k) Notwithstanding any other provision of this section, the
5-17 commissioner may not reduce the allotment to which a district or
5-18 county is entitled under this section because the district or
5-19 county provides transportation for an eligible student to and from
5-20 a child-care facility, as defined by Section 42.002, Human
5-21 Resources Code, instead of the student's residence, as authorized
5-22 by Section 34.007, if the transportation is provided within the
5-23 approved routes of the district or county for the school the
5-24 student attends.
5-25 SECTION 7. EFFECTIVE DATE. (a) Except as provided by
5-26 Subsection (b) of this section, this Act takes effect September 1,
5-27 2001.
6-1 (b) Section 151.333, Tax Code, as added by this Act, takes
6-2 effect October 1, 2001.