By Cain                                               S.B. No. 1732
         77R7041 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to state-subsidized child care for certain children under
 1-3     four years of age.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 2308.315, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 2308.315.  REIMBURSEMENT RATES FOR CHILD CARE.  (a)  In
 1-8     this section:
 1-9                 (1)  "Designated vendor" means a child care provider
1-10     who complies with the criteria established by the Texas Workforce
1-11     Commission under the commission's designated vendor program.
1-12                 (2)  "Family home" has the meaning assigned by Section
1-13     42.002, Human Resources Code.
1-14           (b)  Subject to Subsection (c), each [Each] board shall
1-15     establish graduated reimbursement rates for child care based on the
1-16     Texas Workforce Commission's designated vendor program.  The
1-17     minimum reimbursement rate for designated vendors must be at least
1-18     five percent greater than the maximum rate established for
1-19     nondesignated vendors for the same category of care.  The
1-20     designated vendor rate differential established in this subsection
1-21     [section] shall be funded with federal child care development funds
1-22     dedicated to quality improvement activities.
1-23           (c)  The minimum reimbursement rate for a designated vendor
1-24     who is a registered family home and who provides child care for
 2-1     children under four years of age must be at least 95 percent of the
 2-2     vendor's actual documented cost in providing the child care.
 2-3           SECTION 2.  Subchapter G, Chapter 2308, Government Code, is
 2-4     amended by adding Section 2308.317 to read as follows:
 2-5           Sec. 2308.317.  PILOT PROGRAMS FOR SYSTEMS OF FAMILY HOMES.
 2-6     (a)  In this section:
 2-7                 (1)  "Commission" means the Texas Workforce Commission.
 2-8                 (2)  "Family home" has the meaning assigned by Section
 2-9     42.002, Human Resources Code.
2-10           (b)  The commission shall select one or more vendors to
2-11     operate pilot programs in five different areas of the state under
2-12     which child care is provided by operators of eligible family homes
2-13     to children under four years of age.  Each pilot program must
2-14     include at least 25 operators of eligible family homes.
2-15           (c)  After selection of the vendors, each board in an
2-16     affected area of the state shall administer and fund the pilot
2-17     program operating within that area, subject to guidelines
2-18     established by the commission.  Each of those boards shall allocate
2-19     a portion of the board's federal child care development funds to
2-20     pay the costs of the pilot program operating within that area.
2-21           (d)  The commission shall select vendors based on a
2-22     competitive procurement process.  A vendor must have at least seven
2-23     years of relevant experience to be eligible to participate in a
2-24     pilot program.
2-25           (e)  A vendor selected to participate in a pilot program
2-26     shall:
2-27                 (1)  recruit eligible operators of family homes to
 3-1     participate in the program; and
 3-2                 (2)  provide those eligible operators participating in
 3-3     the program with:
 3-4                       (A)  training that is based on fostering
 3-5     relationships that promote rich language development and provide
 3-6     the foundation for moral character;
 3-7                       (B)  mentoring; and
 3-8                       (C)  other support.
 3-9           (f)  To be eligible to participate in a pilot program, an
3-10     operator of a family home must:
3-11                 (1)  be registered under Chapter 42, Human Resources
3-12     Code, and be in compliance with all applicable requirements imposed
3-13     by the Department of Protective and Regulatory Services under that
3-14     chapter;
3-15                 (2)  have a child-to-staff ratio that complies with the
3-16     criteria of the commission's designated vendor program;
3-17                 (3)  provide a homelike environment;
3-18                 (4)  demonstrate an environment that is rich in
3-19     language experiences;
3-20                 (5)  provide child care to a group of children of which
3-21     at least 75 percent are eligible for state-subsidized child care;
3-22     and
3-23                 (6)  maintain flexible hours of operation that meet the
3-24     needs of parents with nontraditional working hours.
3-25           (g)  Not later than December 1 of each even-numbered year,
3-26     the commission shall submit to the governor, lieutenant governor,
3-27     and speaker of the house of representatives a report on the pilot
 4-1     programs established under this section. The report must include an
 4-2     evaluation component prepared by the vendor or vendors of the pilot
 4-3     programs that compares the language development and other
 4-4     developmental features of children receiving child care through the
 4-5     pilot programs to the language development and other developmental
 4-6     features of children receiving child care in other settings.  The
 4-7     evaluation component must address the efficacy of providing child
 4-8     care in the manner provided by the pilot programs and provide a
 4-9     cost/benefits ratio relating to that manner of child care delivery.
4-10     The report must also include recommendations on continuation or
4-11     expansion of the programs.
4-12           (h)  This section expires September 1, 2005.
4-13           SECTION 3.  This Act takes effect September 1, 2001.