Bill Text: TX HB4600 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to the funding of child care facilities.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2023-03-22 - Referred to Human Services [HB4600 Detail]

Download: Texas-2023-HB4600-Introduced.html
  88R13165 MLH-F
 
  By: Allen H.B. No. 4600
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the funding of child care facilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 42, Human Resources Code,
  is amended by adding Section 42.0216 to read as follows:
         Sec. 42.0216.  SUSTAINING CHILD CARE ACCOUNT; GRANTS.  (a)  
  The sustaining child care account is a dedicated account in the
  general revenue fund.
         (b)  The account consists of:
               (1)  general revenue transferred to the account;
               (2)  money appropriated to the account;
               (3)  gifts, grants, and donations contributed to the
  account;
               (4)  contributions to the account for which an entity
  receives a credit against the entity's state premium tax liability
  under Chapter 230, Insurance Code; and
               (5)  interest earned on the investment of money in the
  account.
         (c)  Section 403.0956, Government Code, does not apply to the
  sustaining child care account.
         (d)  Unused funds in the sustaining child care account do not
  revert to the general revenue fund without legislative action.
         (e)  Money in the sustaining child care account may be
  appropriated only to the Texas Workforce Commission for the purpose
  of making grants to day-care centers and group day-care homes
  licensed under this chapter and to family homes registered under
  this chapter.
         (f)  The Texas Workforce Commission may award grants to
  day-care centers and group day-care homes licensed under this
  chapter and to family homes registered under this chapter to:
               (1)  provide adequate funding to allow the day-care
  providers to recover from the devastating effects of the COVID-19
  lockdowns and the subsequent reduced enrollment and staff
  shortages; and
               (2)  ensure that day-care providers are able to remain
  in business to provide essential child-care services to the people
  of this state.
         (g)  A grant authorized by this section may not be less than
  $1,000 for each child under 14 years of age enrolled in the day-care
  center, group day-care home, or family home. A day-care center,
  group day-care home, or family home may receive one grant under this
  section each year.
         (h)  The Texas Workforce Commission shall set the amount of
  the grants awarded under this section in an amount that ensures each
  eligible day-care center, group day-care home, and family home is
  able to receive a grant.
         (i)  A day-care center, group day-care home, or family home
  may decline a grant under this section.
         (j)  The executive commissioner in collaboration with the
  Texas Workforce Commission shall adopt rules to implement this
  section, including rules regarding the eligibility criteria for
  receiving a grant and the process for awarding a grant under this
  section.
         SECTION 2.  Subtitle B, Title 3, Insurance Code, is amended
  by adding Chapter 230 to read as follows:
  CHAPTER 230. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
  SUSTAINING CHILD CARE ACCOUNT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 230.001.  DEFINITIONS. In this chapter:
               (1)  "Account" means the Sustaining Child Care Account
  under Section 42.0216, Human Resources Code.
               (2)  "State premium tax liability" means any liability
  incurred by an entity under Chapters 221 through 226.
  SUBCHAPTER B.  CREDIT
         Sec. 230.051.  CREDIT.  An entity may apply for a credit
  against the entity's state premium tax liability in the amount and
  under the conditions provided by this chapter.  The comptroller
  shall award credits as provided by Section 230.054.
         Sec. 230.052.  AMOUNTS; LIMITATION ON TOTAL CREDITS.  (a)  
  Subject to Subsections (b) and (c), the amount of an entity's credit
  is equal to the lesser of the amount contributed to the account
  during the period covered by the tax report or 75 percent of the
  entity's state premium tax liability for the report.
         (b)  For the 2024 state fiscal year, the total amount of
  credits that may be awarded under this chapter may not exceed $200
  million. For each subsequent state fiscal year, the total amount of
  credits that may be awarded is:
               (1)  the same total amount of credits available under
  this subsection for the previous state fiscal year, if Subdivision
  (2) does not apply; or
               (2)  125 percent of the total amount of credits
  available under this subsection for the previous state fiscal year,
  if the total amount of credits awarded in the previous state fiscal
  year was at least 90 percent of the total amount of credits
  available under this subsection for that fiscal year.
         (c)  The comptroller by rule shall prescribe procedures by
  which the comptroller may allocate credits under this chapter. The
  procedures must provide that credits are allocated first to
  entities that received preliminary approval for a credit under
  Section 230.053 and that apply under Section 230.054. The
  procedures must provide that any remaining credits are allocated to
  entities that apply under Section 230.054 on a first-come,
  first-served basis, based on the date the contribution was
  initially made.
         (d)  The comptroller may require an entity to notify the
  comptroller of the amount the entity intends or expects to apply for
  under this chapter before the beginning of a state fiscal year or at
  any other time required by the comptroller.
         Sec. 230.053.  PRELIMINARY APPROVAL FOR CREDIT. (a) Before
  making a contribution to the account, an entity may apply to the
  comptroller for preliminary approval of a credit under this chapter
  for the contribution.
         (b)  An entity must apply for preliminary approval on a form
  provided by the comptroller that includes the amount the entity
  expects to contribute and any other information the comptroller
  requires.
         (c)  The comptroller shall grant preliminary approval for
  credits under this chapter on a first-come, first-served basis,
  based on the date the comptroller receives the application for
  preliminary approval.
         (d)  The comptroller shall grant preliminary approval for a
  credit under this chapter for a state fiscal year if the sum of the
  amount of the credit and the total amount of all other credits
  preliminarily approved under this chapter does not exceed the
  amount provided by Section 230.052(b).
         (e)  Final award of a credit preliminarily approved under
  this section remains subject to the limitations under Section
  230.052(a) and all other requirements of this chapter.
         Sec. 230.054.  APPLICATION FOR CREDIT.  (a)  An entity must
  apply for a credit under this chapter on or with the tax report
  covering the period in which the contribution was made.
         (b)  The comptroller shall adopt a form for the application
  for the credit. An entity must use this form in applying for the
  credit.
         (c)  Subject to Section 230.052(c), the comptroller may
  award a credit to an entity that applies for the credit under
  Subsection (a) if the entity is eligible for the credit and the
  credit is available under Section 230.052(b). The comptroller has
  broad discretion in determining whether to grant or deny an
  application for a credit.
         (d)  The comptroller shall notify an entity in writing of the
  comptroller's decision to grant or deny the application under
  Subsection (a). If the comptroller denies an entity's application,
  the comptroller shall include in the notice of denial the reasons
  for the comptroller's decision.
         (e)  If the comptroller denies an entity's application under
  Subsection (a), the entity may request in writing a reconsideration
  of the application not later than the 10th day after the date the
  notice under Subsection (d) is received. If the entity does not
  request a reconsideration of the application on or before that
  date, the comptroller's decision is final.
         (f)  An entity that requests a reconsideration under
  Subsection (e) may submit to the comptroller, not later than the
  30th day after the date the request for reconsideration is
  submitted, additional information and documents to support the
  entity's request for reconsideration.
         (g)  The comptroller's reconsideration of an application
  under this section is not a contested case under Chapter 2001,
  Government Code. The comptroller's decision on a request for
  reconsideration of an application is final and is not appealable.
         (h)  This section does not create a cause of action to
  contest a decision of the comptroller to deny an application for a
  credit under this chapter.
         Sec. 230.055.  RULES; PROCEDURES. The comptroller shall
  adopt rules and procedures to implement, administer, and enforce
  this chapter.
         Sec. 230.056.  ASSIGNMENT PROHIBITED; EXCEPTION. An entity
  may not convey, assign, or transfer the credit allowed under this
  chapter to another entity unless all of the assets of the entity are
  conveyed, assigned, or transferred in the same transaction.
         Sec. 230.057.  NOTICE OF AVAILABILITY OF CREDIT. The
  comptroller shall provide notice of the availability of the credit
  under this chapter on the comptroller's Internet website, in the
  instructions for insurance premium tax report forms, and in any
  notice sent to an entity concerning the requirement to file an
  insurance premium tax report.
         SECTION 3.  An entity may apply for a credit under Chapter
  230, Insurance Code, as added by this Act, only for a contribution
  made on or after the effective date of this Act.
         SECTION 4.  Not later than November 15, 2023, the
  comptroller of public accounts shall adopt rules as provided by
  Section 230.055, Insurance Code, as added by this Act.
         SECTION 5.  Chapter 230, Insurance Code, as added by this
  Act, applies only to a tax report originally due on or after the
  effective date of this Act.
         SECTION 6.  This Act takes effect September 1, 2023.
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