HB5529 - Relating to establishing a child-care innovation pilot program.

      By: Bumgarner H.B. No. 5529       A BILL TO BE ENTITLED   AN ACT   relating to establishing a child-care innovation pilot program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle B, Title 4, Labor Code, is amended by   adding Chapter 320 to read as follows:   CHAPTER 320.   CHILD-CARE INNOVATION PILOT PROGRAM           Sec. 320.001.  DEFINITIONS. In this chapter:                 (1)     "Board" means a local workforce development board   created under Subchapter F, Chapter 2308, Government Code.                 (2)     "Program" means the child-care innovation pilot   program established under this chapter.                 (3)     "Provider" means a child-care provider who is   engaging with the program established under this chapter.           Sec.   320.002.     ESTABLISHMENT. (a)   The commission shall   establish and administer the child-care innovation pilot program to   address strategic workforce needs of designated pilot regions   across the state by increasing the supply of quality, affordable   child care and encouraging child-care partnerships with employers.           (b)     The program shall enable boards designated by the   commission to partner with local employers and high-quality   providers to provide grants that will fund innovative child-care   expansion projects and employer partnerships that directly impact   strategic local workforce needs.           Sec.   320.003.     ADMINISTRATION. (a)   From funds appropriated   to the commission for the program, the program shall be   administered by local workforce development boards that serve:                 (1)     a county with a population greater than 2 million   that is adjacent to a county with a population greater than 2.5   million, or                 (2)  two or more counties adjacent to subsection (1).           (b)     If the commission determines there are additional funds   available after funding the local workforce development boards in   Subsection (a), the commission shall by rule adopt a process for   selecting additional local workforce development boards to operate   the pilot.   Rulemaking shall include a competitive application   process and selection criteria.           Sec.   320.004.     APPLICATION; STRATEGIC PLAN. (a) Any local   workforce development board that participates in the program shall   submit a letter of intent to the commission including:                 (1)  a strategic plan proposing:                       (A)     measurable performance goals and progress   measures related to increasing the supply and accessibility of   quality, affordable child-care services;                       (B)     plans for engaging regional stakeholders,   including local employers, business associations, and   organizations that provide services to children and families, to   develop and meet regional performance goals that are based on   strategic workforce needs;                       (C)     the number of providers to whom the board   plans to award grants;                       (D)     staffing structures to support the effective   implementation of the program, including technical assistance for   child-care providers; and                       (E)     plans to maximize the results of the program   and support the future sustainability of child-care providers   participating in the program if state funding is not continued; and                 (2)     the total amount of money requested to implement   that board's strategic plan.           Sec.   320.005.     AGREEMENTS WITH PARTICIPATING BOARDS. The   commission shall develop and enter into a performance agreement   with each participating local workforce development board.   Each of   those boards shall comply with the terms of the performance   agreement during its participation in the program.   The performance   agreement must:                 (1)     include measurable performance goals and progress   measures that are:                       (A)     related to increasing the supply and   accessibility of quality, affordable child-care services in the   pilot region; and                       (B)  aligned to that board's strategic plan; and                 (2)     allocate responsibilities for accessing and   reporting progress and outcome information.           Sec.   320.007.     ALLOCATION OF FUNDS. From the funds   appropriated to the commission for the program, the commission   shall award an amount of money to each local workforce development   board participating in the program.   In determining the allocation   of money, the commission shall consider:                 (1)  the size and population of the pilot region;                 (2)     the unmet child-care needs in the region and the   proposed funding required to address the needs;                 (3)     the proposed number of eligible providers in each   region to whom that board intends to award grants;                 (4)     the budget requested in that board's proposed   strategic plan under Section 320.004(a)(2); and                 (5)  other factors determined by the commission.           Sec.   320.008.     GRANTS. (a) From funds awarded to a local   workforce development board participating in the program, the   board, after conducting a competitive selection process, shall   award grants to eligible providers that enter into a grant contract   with the board to expand quality, affordable child-care services in   accordance with the region's strategic workforce needs and the   local workforce development board's approved strategic plan.           (b)     In awarding a grant under the program, a local workforce   development board shall give preference to an eligible provider   that demonstrates capacity to:                 (1)     provide high-demand child-care services   identified by the board; and                 (2)  partner with one or more local employers.           Sec.   320.009.     PROVIDER ELIGIBILITY. (a)   To be eligible to   receive a grant under the program, a child-care provider must:                 (1)     be a Texas Rising Star Program provider with a   three-star rating or higher;                 (2)     be accredited by the National Association for the   Education of Young Children;                 (3)     have an accreditation from a Montessori   accreditation organization; or                 (4)     meet an alternative quality criterion or waiver   prescribed by the commission.           (b)     A provider under Subsection (a) may not be owned or   operated by the organization that administers grants for the local   workforce development board under the state child care services   program administered by the commission.           (c)     In consultation with local employers and other regional   stakeholders, the board shall develop a competitive application and   scoring process for eligible providers to apply for a grant under   the program to meet the goals in the board's approved strategic plan   under Section 320.004.           (d)     A local workforce development board shall develop and   enter into a grant contract with each eligible provider awarded a   grant under the program.   Each eligible provider awarded a grant   shall comply with the terms of the grant contract.   At a minimum,   grant contracts must require eligible providers to:                 (1)     maintain the ability to enroll the required number   of children within each designated service area outlined in the   board's grant contract;                 (2)     ensure all educators employed by the provider earn   a minimum wage that is equal to or above the self-sufficient wage   required by Section 2308A.012, Government Code, in the county in   which the provider is located;                 (3)     maintain participation in the child-care services   program administered by the commission and accept participating   children as openings become available;                 (4)     maintain tuition rates at the provider's posted   rate or at a rate lower than the posted rate for families who do not   receive subsidized child-care services;                 (5)  maintain all program eligibility requirements;                 (6)     provide regular reports demonstrating compliance   with the board's grant contract; and                 (7)     provide any additional data requested by the   board.           Sec.   320.010.     SUBCONTRACTING. (a) In accordance with   Section 2308.264(e), Government Code, a local workforce   development board may subcontract with a coordinating entity to   administer the program.           (b)     The commission may adopt rules establishing   requirements for a coordinating entity with which a board   subcontracts under this section.           Sec.   320.011.     USE OF FUNDS. (a)   From money appropriated by   the legislature to implement the program, the commission may use   not more than:                 (1)     9 percent of the total amount appropriated to pay   costs related to administering the program by the commission and   participating local workforce development boards, including   technical assistance provided to providers under the program; and                 (2)     1 percent of the total amount appropriated to pay   costs related to research and evaluation of the program.           (b)     The commission shall use at least 90 percent of the   total amount appropriated for grants administered under the   program.           (c)     The commission shall adopt rules relating to the award   of grants under the program that are designed to maximize the impact   of the program and ensure the funding is sufficient to execute on   the terms of the grant contract.           (d)     In awarding a grant under the program, the commission or   local workforce development boards may adjust reimbursement rates   as necessary to account for the costs of providing care to   specialized populations, including children with disabilities,   infants, toddlers, and children needing after-hours care.        &#x [Text truncated for display. 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