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	Amend HB 2959 as follows:                                                    
	SECTION 1. Subchapter C, Chapter 42, Human Resources Code, is 
amended by adding Sections 42.061 and 42.062 to read as follows:
	Sec. 42.061.  USE OF CERTAIN DEDICATED CHILD-CARE FUNDS. (a)  
If the state is required to dedicate more than four percent of the 
amount of federal child-care development funds for the purposes 
provided by 42 U.S.C. Section 9858e, the Texas Workforce 
Commission, unless otherwise required by federal law and 
notwithstanding any other state law, shall ensure that any amount 
of the dedicated funds in excess of four percent is used to 
establish and implement the grant program for quality improvement 
activities under Section 42.062.
	(b)  The Texas Workforce Commission shall enter into a 
memorandum of understanding with the department under which:
		(1)  the commission transfers the dedicated funds in 
excess of four percent as described by Subsection (a) to the 
department; and
		(2)  the department uses the transferred funds to 
implement the grant program for quality improvement activities 
under Section 42.062.
	Sec. 42.062. QUALITY IMPROVEMENT ACTIVITIES FOR CHILD-CARE 
SERVICES. (a)  Subject to the availability of funds under Section 
42.061 or from another source, the executive commissioner by rule 
shall establish a program under which the department awards grants 
to child-care providers and community-based organizations for use 
in providing quality improvement activities to improve the quality 
and availability of child-care services.
	(b)  The executive commissioner by rule shall prescribe 
eligibility criteria for receipt of a grant under the program.
	(c)  In developing the program under this section, the 
executive commissioner shall adopt a list of quality improvement 
activities for which a provider or organization is eligible to 
receive funding through the program. The list of activities must 
include:
		(1)  comprehensive consumer education encompassing:                    
			(A)  parent education programs;                                       
			(B)  publication of quality indicators to evaluate 
child-care services;
			(C)  data collection regarding child-care and 
early childhood education programs; and
			(D)  parent referral services;                                        
		(2)  professional development activities for providers, 
including:   
			(A)  training, educational materials, or 
technical assistance;      
			(B)  scholarship information and assistance; and                      
			(C)  strategies to increase salaries or other 
forms of compensation;
		(3)  teacher training programs, mentoring programs, or 
other programs or activities that promote early development of 
language, literacy, and mathematical skills in young children;
		(4)  programs or activities that promote inclusive 
child care;       
		(5)  activities promoted by the Healthy Child Care 
America program and other activities designed  to promote the 
social and emotional development of young children;
		(6)  use of infant and toddler specialists to educate 
parents and provide training and technical assistance to child-care 
providers; and
		(7)  other activities the department determines will 
increase parental choice and improve the quality and availability 
of child-care services.
	(d)  To the extent allowed by federal law, the department 
shall use federal child-care development funds transferred under 
Section 42.061 for the purposes of the program. The department may 
use other available funds for the purposes of the program.
	(e)  In developing the program, the executive commissioner 
shall ensure that the department administers the program in a 
manner that allows local providers and organizations to choose 
which of the quality improvement activities described by Subsection 
(c) the provider or organization wants to provide under the 
program.
	(f)  In awarding grants under the program, the department 
shall give priority to quality improvement activities for programs 
that serve infants and toddlers younger than three years of age.
	(g)  The department shall submit to the legislature an annual 
report regarding the operation of the program during the preceding 
year. At a minimum, the report must include the number and total 
amount of grants awarded by the department during the period 
covered by the report.
	SECTION 2.  As soon as practicable after the effective date of 
this Act, the executive commissioner of the Health and Human 
Services Commission shall adopt rules necessary for the 
implementation of Section 42.062, Human Resources Code, as added by 
this Act.