SB2164 - Relating to employer incentive payments for child care for employees, including creating an employer child-care contribution partnership program and a franchise tax credit for taxable entities that make certain employer child-care contributions; authorizing a civil penalty.

  89R8667 MM-F     By: Parker S.B. No. 2164       A BILL TO BE ENTITLED   AN ACT   relating to employer incentive payments for child care for   employees, including creating an employer child-care contribution   partnership program and a franchise tax credit for taxable entities   that make certain employer child-care contributions; authorizing a   civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1.  EMPLOYER CHILD-CARE CONTRIBUTION PARTNERSHIP PROGRAM          SECTION 1.01.  Subtitle B, Title 4, Labor Code, is amended by   adding Chapter 318 to read as follows:   CHAPTER 318.   EMPLOYER CHILD-CARE CONTRIBUTION PARTNERSHIP PROGRAM           Sec.   318.001.     DEFINITION. In this chapter, "program" means   the employer child-care contribution partnership program   established under this chapter.           Sec.   318.002.     ESTABLISHMENT. The commission shall   establish and administer the employer child-care contribution   partnership program to support families in this state in accessing   high-quality child care by incentivizing eligible employers to   contribute to eligible employee child-care costs and providing a   state match for funds contributed by eligible employers.           Sec. 318.003.  ADMINISTRATION. (a) The commission shall:                 (1)     adopt rules and establish procedures necessary to   administer the program, including:                       (A)     standardized agreements for use by   employers, employees, and child-care providers to apply for and   enroll in the program;                       (B)     eligibility and income verification   procedures for employees;                       (C)     eligibility criteria for child-care   providers, including quality standards;                       (D)     procedures for notifying each relevant party   of:                             (i)     the results of an eligibility   determination; and                             (ii)     the party's enrollment in the program   as soon as practicable after receiving and processing an agreement   and determining each party's eligibility;                       (E)     procedures for determining the amount of the   state match in accordance with Section 318.009(b) and notifying the   employee and the child-care provider regarding the amount;                       (F)     procedures for prioritizing and approving   agreements, including maintaining a waitlist;                       (G)     procedures for notifying the commission and   the parties to an agreement regarding termination of the agreement   by any party;                       (H)     procedures for notifying the commission and   the parties to an agreement regarding nonpayment by any party;                       (I)     procedures for recouping state match money or   a portion of state match money if there is an overpayment to a   participating child-care provider;                       (J)     criteria for disqualifying participants from   the program;                       (K)     procedures for hearing appeals from program   participants;                         (L)     procedures for issuing and logging payments   to a participating child-care provider; and                       (M)     criteria and procedures for modifying or   terminating an agreement, including:                             (i)     if the relationship between the   employee and employer is severed;                             (ii)     if an employer fails to make a   contribution in accordance with the terms of an agreement; and                             (iii)     if a child-care provider ceases   participation or otherwise becomes ineligible to participate in the   program;                 (2)     select an administration assistance organization   described by Subsection (c);                 (3)     ensure confidentiality protocols to safeguard the   personal information of participating employers, employees, and   child-care providers, including ensuring that an employee's   personal information is not disclosed without the employee's   written consent;                 (4)     maintain records regarding the balance of the   program fund for each fiscal year and all payments made from the   fund;                 (5)     develop and distribute to employers, employees,   and child-care providers informational material regarding:                       (A)     the program's objectives, benefits, and   eligibility requirements; and                       (B)     any other child-care assistance programs or   benefits that may be available to an employee; and                 (6)     maintain a waitlist if the money in the program   fund is insufficient to approve all agreements received and provide   a state match in accordance with Section 318.009(b).           (a-1)     The commission shall convene a work group to assist   the commission in developing the rules under Subsection (a).   The   work group must include:                 (1)  child-care providers;                 (2)     community stakeholders, including stakeholders   with knowledge of or expertise in child care;                 (3)     employers or members of associations representing   employers; and                 (4)     at least one parent of a child who receives care   from a child-care provider.             (a-2)     Subsection (a-1) and this subsection expire September   1, 2027.           (b)  The commission may:                 (1)     delegate an administrative duty under the program   to a division of the commission or the administration assistance   organization described by Subsection (c);                 (2)     coordinate and share information with other state   agencies; and                 (3)     procure grants or contracts, in accordance with   other law, with third parties to administer the program or parts of   the program, including an administration assistance organization   described by Subsection (c).           (c)     To be eligible for selection as an administration   assistance organization, an organization must:                 (1)     be exempt from federal taxation under Section   501(a) of the Internal Revenue Code of 1986 by being listed as an   exempt organization in Section 501(c)(3) of that code;                 (2)  be in good standing with the state; and                 (3)     be able to administer elements of the program as   determined by the comptroller, including the ability to process   employer contribution payments made under Section 318.004.           (d)     The commission shall implement the program and issue a   state match under Section 318.009(b) in a state fiscal year only if   the legislature specifically appropriates money to the commission   for that fiscal year for that purpose.   The commission may implement   the program and issue a state match using other money available to   the commission for that purpose.           Sec.   318.004.     EMPLOYER DUTIES.   An employer who provides   child-care assistance to an employee as a benefit of employment may   participate in the program by entering into an agreement described   by Section 318.007. The employer shall:                 (1)     provide at least $1,200 per year to or on behalf of   an eligible employee for each child the employee has enrolled with a   provider eligible under Section 318.006 for the employee's   child-care costs as the employer contribution;                 (2)     enter into a standardized agreement under Section   318.007;                 (3)     submit the agreement to the commission for   verification of eligibility and approval;                 (4)     submit any additional information the commission   considers necessary; and                 (5)     on verification and approval of the agreement by   the commission, make contributions to the employee's eligible   child-care costs in accordance with commission guidelines.           Sec.   318.005.     EMPLOYEE DUTIES. (a) An employee shall   complete an agreement described by Section 318.007 and provide any   additional information the commission considers necessary.           (b)     An employee shall immediately notify the commission if a   child for whom the employee receives a benefit under this chapter   receives subsidized child care under the commission's subsidized   child-care program.           (c)     The employee shall pay the child-care provider the cost   of child-care services not covered by the employer's contribution   and the state match.           Sec.   318.006.     PROVIDER ELIGIBILITY. (a)   To be eligible to   receive money under the program, a child-care provider must:                 (1)     be a child-care facility or family home licensed   under Chapter 42, Human Resources Code, including a facility   operated by the employer;                 (2)     be a high-quality program as determined by the   commission; and                 (3)     comply with an agreement and provide information   the commission considers necessary.           (b)     The commission may waive or modify the eligibility   requirements under this section.           Sec.   318.007.     PROGRAM AGREEMENTS.   (a)   The commission   shall create a standardize [Text truncated for display. Full text available on LegiScan.]