1-1                                   AN ACT
 1-2     relating to the creation of family home child care pilot programs
 1-3     for certain children under four years of age.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter G, Chapter 2308, Government Code, is
 1-6     amended by adding Section 2308.317 to read as follows:
 1-7           Sec. 2308.317.  PILOT PROGRAMS FOR SYSTEMS OF FAMILY HOMES.
 1-8     (a)  In this section:
 1-9                 (1)  "Commission" means the Texas Workforce Commission.
1-10                 (2)  "Family home" has the meaning assigned by Section
1-11     42.002, Human Resources Code.
1-12           (b)  The commission shall select one or more vendors to
1-13     operate pilot programs in three different areas of the state under
1-14     which child care is provided by operators of eligible family homes
1-15     to children under four years of age.  Each pilot program must
1-16     include at least 10 operators of eligible family homes.  At least
1-17     one pilot program must be located in a rural area.
1-18           (c)  After selection of the vendors, each board in an
1-19     affected area of the state shall administer and fund the pilot
1-20     program operating within that area, subject to guidelines
1-21     established by the commission.  Each of those boards shall allocate
1-22     a portion of the board's federal child care development funds to
1-23     pay the costs of the pilot program operating within that area.
1-24           (d)  The commission shall select vendors based on a
1-25     competitive procurement process.  A vendor must have at least seven
 2-1     years of relevant experience to be eligible to participate in a
 2-2     pilot program.
 2-3           (e)  A vendor selected to participate in a pilot program
 2-4     shall:
 2-5                 (1)  recruit eligible operators of family homes to
 2-6     participate in the program; and
 2-7                 (2)  provide those eligible operators participating in
 2-8     the program with:
 2-9                       (A)  training that is based on fostering
2-10     relationships that promote rich language development and provide
2-11     the foundation for moral character;
2-12                       (B)  mentoring; and
2-13                       (C)  other support.
2-14           (f)  To be eligible to participate in a pilot program, an
2-15     operator of a family home must:
2-16                 (1)  be registered under Chapter 42, Human Resources
2-17     Code, and be in compliance with all applicable requirements imposed
2-18     by the Department of Protective and Regulatory Services under that
2-19     chapter;
2-20                 (2)  have a child-to-staff ratio that complies with the
2-21     criteria of the commission's designated vendor program;
2-22                 (3)  provide a homelike environment;
2-23                 (4)  demonstrate an environment that is rich in
2-24     language experiences;
2-25                 (5)  provide child care to a group of children of which
2-26     at least 75 percent are eligible for state-subsidized child care;
 3-1     and
 3-2                 (6)  maintain flexible hours of operation that meet the
 3-3     needs of parents with nontraditional working hours.
 3-4           (g)  The commission may not implement the pilot programs in a
 3-5     manner that in any way has the effect of limiting parental choice
 3-6     regarding state-subsidized child care.
 3-7           (h)  Not later than December 1 of each even-numbered year,
 3-8     the commission shall submit to the governor, lieutenant governor,
 3-9     and speaker of the house of representatives a report on the pilot
3-10     programs established under this section.  The report must include
3-11     an evaluation component prepared by the vendor or vendors of the
3-12     pilot programs that compares the language development and other
3-13     developmental features of children receiving child care through the
3-14     pilot programs to the language development and other developmental
3-15     features of children receiving child care in other settings.  The
3-16     evaluation component must address the efficacy of providing child
3-17     care in the manner provided by the pilot programs and provide a
3-18     cost/benefits ratio relating to that manner of child care delivery.
3-19     The report must also include recommendations on continuation or
3-20     expansion of the programs.
3-21           (i)  This section expires September 1, 2005.
3-22           SECTION 2.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1732 passed the Senate on
         May 16, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1732 passed the House on
         May 23, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor