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.