HBA-DMD, MPA H.B. 3333 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3333
By: Tillery
Economic Development
11/1/1999
Enrolled



BACKGROUND AND PURPOSE 

Previously, child care for low-income families was set at a 75 percent
reimbursement rate by the federal government.  This is no longer the case.
Low reimbursement rates make it difficult for many providers of child care
in low-income communities to provide sufficient care. The child care most
needed is for children younger than three. This is also the most expensive,
and among the least available in Texas. Quality child care requires low
teacher-child ratios, small groups, and well trained staff. Federal
guidelines recommend funding a network to provide outreach, technical
assistance, and ongoing support to family day homes. H.B. 3333 requires
each local workforce development board (board) to establish graduated
reimbursement rates for child care based on the Texas Workforce
Commission's (TWC) designated vendor program and sets limits for the
reimbursement rates. This bill also requires each board to allocate a
portion of its federal child care development funds to a competitive
procurement process for a system for quality child care for children under
four years of age. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter G, Chapter 2308, Government Code, by adding
Sections 2308.315 and 2308.316, as follows: 

Sec. 2308.315. REIMBURSEMENT RATES FOR CHILD CARE. Requires each local
workforce development board (board) to establish graduated reimbursement
rates for child care based on the Texas Workforce Commission's (TWC)
designated vendor program. Provides that the minimum reimbursement rate
must be at least five percent greater than the maximum rate established for
nondesignated vendors for the same category of care. Provides that the
designated vendor rate differential established in this section shall be
funded with federal child care development funds dedicated to quality
improvement activities. 

Sec. 2308.316.  FUNDING OF COMPETITIVE PROCUREMENT PROCESS FOR INFANT AND
EARLY CHILDHOOD CHILD CARE. Requires each board to allocate a portion of
its federal child care development funds dedicated to quality improvement
activities to a competitive procurement process for a system for quality
child care for children under four years of age that encourages child care
providers to voluntarily meet the criteria of the TWC's designated vendor
program or national accreditation. Provides that special consideration
shall be given to funding child care for children under four years of age
in low-income communities, when allocating funds under this section.
Prohibits this section from being interpreted to limit parental choice. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.