By: Zaffirini S.B. No. 1555

(In the Senate - Filed March 11, 2021; March 24, 2021, read first time and referred to Committee on Natural Resources & Economic Development; April 23, 2021, reported adversely, with favorable Committee Substitute by the following vote: Yeas 9, Nays 0; April 23, 2021, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1555 By: Zaffirini

A BILL TO BE ENTITLED

AN ACT

relating to establishing reimbursement rates for certain child-care providers participating in the subsidized child-care program administered by the Texas Workforce Commission.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter G, Chapter 2308, Government Code, is amended by amending Section 2308.315 and adding Section 2308.3151 to read as follows:

Sec. 2308.315. REIMBURSEMENT RATES FOR CHILD-CARE PROVIDERS [CHILD CARE]. Each board shall establish and implement graduated reimbursement rates for child-care providers participating in the commission's subsidized child-care program that align the commission's age groupings with the child-to-caregiver ratios and group sizes adopted by the Health and Human Services Commission. The graduated rates shall provide the highest reimbursement rate to child-care providers that provide care to children in the age group with the lowest child-to-caregiver ratio. The commission shall supply any demographic data needed by the board to establish the rates.

Sec. 2308.3151. REIMBURSEMENT RATES FOR TEXAS RISING STAR PROGRAM PROVIDERS. (a) Each board shall establish graduated reimbursement rates for child care based on the commission's Texas Rising Star Program.

(b) The minimum reimbursement rate for a Texas Rising Star Program provider must be greater than the maximum rate established for a provider who is not a Texas Rising Star Program provider for the same category of care. The reimbursement rate must be:

(1) at least five percent higher for a provider with a two-star rating;

(2) at least seven percent higher for a provider with a three-star rating; and

(3) at least nine percent higher for a provider with a four-star rating.

(c) The Texas Rising Star Program rate differential established in this section shall be funded with federal child-care [child care] development funds.

(d) The commission shall examine and implement strategies to address the increased costs a Texas Rising Star Program provider with a four-star or three-star rating would incur to provide care to infants and toddlers due to low child-to-caregiver ratios for children in those age groups. [Notwithstanding Subsection (b), a board may not reimburse a provider under the reimbursement rates provided by Subsection (b) before the date any revisions to rules recommended by the Texas Rising Star Program review work group under Section 2308.321 are adopted by the commission.]

SECTION 2. Not later than December 1, 2023, each local workforce development board shall establish the child-care reimbursement rates required under Section 2308.315, Government Code, as amended by this Act.

SECTION 3. This Act takes effect September 1, 2021.

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