Bill Text: TX SB1739 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to use and operation of the childcare protection and enhancement fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-02-27 - Filed [SB1739 Detail]
Download: Texas-2025-SB1739-Introduced.html
| By: West | S.B. No. 1739 | |
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| relating to use and operation of the childcare protection and | ||
| enhancement fund. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Title 4, Labor Code, Chapter 302, is amended by | ||
| adding Section 302.0052 to read as follows: | ||
| Sec. 302.0052 CHILD CARE PROTECTION AND ENHANCEMENT FUND. | ||
| DEFINITIONS. In this chapter: | ||
| (1) "Fund" means the child care protection and | ||
| enhancement fund established under Section 49-r, Article III, Texas | ||
| Constitution. | ||
| (2) "Trust company" means the Texas Treasury | ||
| Safekeeping Trust Company. | ||
| (3) "Agency" means the Texas Workforce Commission. | ||
| Sec. 302.0053. ADMINISTRATION AND MANAGEMENT OF FUND. (a) | ||
| The child care protection and enhancement fund is a trust fund held | ||
| outside the treasury by the trust company and administered by the | ||
| department for the purpose of the expansion of childcare capacity | ||
| and enhancement of subsidized childcare rates. | ||
| (b) The trust company shall hold and invest the fund, taking | ||
| into account the purposes for which the money in the fund may be | ||
| used. The overall objective for the investment of the fund is to | ||
| maintain sufficient liquidity to meet the needs of the fund. | ||
| (c) The expenses of managing the fund and its assets shall | ||
| be paid from the fund. Except as otherwise provided by this chapter | ||
| and Section 49-r, Article III, Texas Constitution, money in the | ||
| fund may not be used for any other purpose. | ||
| (d) In managing the assets of the fund, through procedures | ||
| and subject to restrictions the trust company considers | ||
| appropriate, the trust company may acquire, exchange, sell, | ||
| supervise, manage, or retain any kind of investment that a prudent | ||
| investor, exercising reasonable care, skill, and caution, would | ||
| acquire or retain in light of the purposes, terms, distribution | ||
| requirements, liquidity requirements, and other circumstances of | ||
| the fund then prevailing, taking into consideration the investment | ||
| of all the fund assets rather than a single investment. The fund | ||
| may be invested with the state treasury pool and may be pooled with | ||
| other state assets for purposes of investment. | ||
| (e) The department shall provide the trust company with a | ||
| cash flow forecast at least annually, and more frequently as | ||
| appropriate, to ensure the trust company is able to satisfy the | ||
| objectives specified by Subsection (b). | ||
| Sec. 302.0054. DISTRIBUTION. The agency shall annually | ||
| request from the trust company a distribution from the fund in the | ||
| amount equal to the interest earned on the fund for the purpose of | ||
| increasing both capacity and rates for subsidized childcare in this | ||
| state. | ||
| Sec. 302.0055. STIPULATIONS ON USE OF FUND. (a) The Texas | ||
| Workforce Commission must submit to the Texas Workforce | ||
| Commissioners and the Texas Comptroller of Public Accounts a | ||
| request for approval of a proposed disbursement and how that | ||
| disbursement will be used to increase subsidized childcare rates | ||
| and capacity in this state. | ||
| (b) A request under this section shall be considered | ||
| approved on the 30th day after the date the request is submitted | ||
| unless the request is approved or disapproved before that date. | ||
| Sec. 302.0056. PROHIBITED EXPENDITURES. Money in the fund | ||
| may not be used: | ||
| (1) to pay salaries, employee benefits, costs | ||
| associated with employee benefits, or administration, operating, | ||
| or program costs of the department; or | ||
| (2) for the maintenance or operation of a state | ||
| agency. | ||
| Sec. 302.0057. EXPENDITURES SUBJECT TO AUDIT. All | ||
| expenditures by the agency under this chapter are subject to audit | ||
| by the state auditor. | ||
| Sec. 302.0058. STRATEGIC PLAN. The department shall | ||
| include in each strategic plan submitted under Section 2056.002, | ||
| Government Code, a report on each acquisition funded using money in | ||
| the fund during the two-year period preceding the date on which the | ||
| department submits the plan. | ||
| SECTION 2. This Act takes effect January 1, 2026, but only | ||
| if the constitutional amendment proposed by the 89th Legislature, | ||
| Regular Session, 2025, providing for the creation of the child care | ||
| preservation and enhancement fund to be used for the increase in | ||
| capacity and increase in subsidized childcare rates is approved by | ||
| the voters. If that amendment is not approved by the voters, this | ||
| Act has no effect. | ||
