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A BILL TO BE ENTITLED
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AN ACT
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relating to use and operation of the childcare protection and |
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enhancement fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 4, Labor Code, Chapter 302, is amended by |
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adding Section 302.0052 to read as follows: |
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Sec. 302.0052 CHILD CARE PROTECTION AND ENHANCEMENT FUND. |
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DEFINITIONS. In this chapter: |
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(1) "Fund" means the child care protection and |
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enhancement fund established under Section 49-r, Article III, Texas |
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Constitution. |
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(2) "Trust company" means the Texas Treasury |
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Safekeeping Trust Company. |
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(3) "Agency" means the Texas Workforce Commission. |
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Sec. 302.0053. ADMINISTRATION AND MANAGEMENT OF FUND. |
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(a) The child care protection and enhancement fund is a trust fund |
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held outside the treasury by the trust company and administered by |
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the department for the purpose of the creation and improvement of |
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state parks. |
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(b) The trust company shall hold and invest the fund, taking |
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into account the purposes for which the money in the fund may be |
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used. The overall objective for the investment of the fund is to |
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maintain sufficient liquidity to meet the needs of the fund. |
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(c) The expenses of managing the fund and its assets shall |
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be paid from the fund. Except as otherwise provided by this chapter |
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and Section 49-r, Article III, Texas Constitution, money in the |
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fund may not be used for any other purpose. |
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(d) In managing the assets of the fund, through procedures |
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and subject to restrictions the trust company considers |
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appropriate, the trust company may acquire, exchange, sell, |
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supervise, manage, or retain any kind of investment that a prudent |
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investor, exercising reasonable care, skill, and caution, would |
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acquire or retain in light of the purposes, terms, distribution |
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requirements, liquidity requirements, and other circumstances of |
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the fund then prevailing, taking into consideration the investment |
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of all the fund assets rather than a single investment. The fund |
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may be invested with the state treasury pool and may be pooled with |
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other state assets for purposes of investment. |
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(e) The department shall provide the trust company with a |
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cash flow forecast at least annually, and more frequently as |
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appropriate, to ensure the trust company is able to satisfy the |
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objectives specified by Subsection (b). |
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Sec. 302.0054. DISTRIBUTION. The agency shall annually |
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request from the trust company a distribution from the fund in the |
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amount equal to the interest earned on the fund for the purpose of |
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increasing both capacity and rates for subsidized childcare in this |
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state. |
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Sec. 302.0055. STIPULATIONS ON USE OF FUND. (a) The Texas |
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Workforce Commission must submit to the Texas Workforce |
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Commissioners and the Texas Comptroller of Public Accounts a |
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request for approval of a proposed disbursement and how that |
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disbursement will be used to increase subsidized childcare rates |
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and capacity in this state. |
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(b) A request under this section shall be considered |
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approved on the 30th day after the date the request is submitted |
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unless the request is approved or disapproved before that date. |
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Sec. 302.0056. PROHIBITED EXPENDITURES. Money in the fund |
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may not be used: |
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(1) to pay salaries, employee benefits, costs |
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associated with employee benefits, or administration, operating, |
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or program costs of the department; or |
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(2) for the maintenance or operation of a state |
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agency. |
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Sec. 302.0057. EXPENDITURES SUBJECT TO AUDIT. All |
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expenditures by the agency under this chapter are subject to audit |
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by the state auditor. |
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Sec. 302.0058. STRATEGIC PLAN. The department shall |
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include in each strategic plan submitted under Section 2056.002, |
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Government Code, a report on each acquisition funded using money in |
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the fund during the two-year period preceding the date on which the |
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department submits the plan. |
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SECTION 2. This Act takes effect January 1, 2026, but only |
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if the constitutional amendment proposed by the 89th Legislature, |
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Regular Session, 2025, providing for the creation of the child care |
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preservation and enhancement fund to be used for the increase in |
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capacity and increase in subsidized childcare rates is approved by |
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the voters. If that amendment is not approved by the voters, this |
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Act has no effect. |