HB 4024

relating to the establishment of the child care scholarship fund
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subtitle B, Title 4, Labor Code, is amended by
adding Chapter 321 to read as follows:
CHAPTER 321.  CHILD CARE SCHOLARSHIP FUND
Sec. 321.001.  DEFINITIONS.  In this chapter:
(1)  "Advisory board" means the program fund advisory
board established under Section 321.006.
(2)  "Agency" means the Texas Workforce Commission.
Sec. 321.002.  ESTABLISHMENT.  The agency shall establish
and administer the child care scholarship fund to expand
scholarship opportunities through the Child Care Services program
administered by the agency and help eligible families in the state
access high-quality child care.
Sec. 321.003.  FUND.  (a)  The fund is a special fund in the
state treasury outside the general revenue fund.
(1)  money appropriated by the legislature for deposit
to the credit of the program fund for the purposes of this chapter;
(2)  interest earned on the investment of money in the
(3)  gifts, grants, and donations received by the
commission for the purposes of this chapter; and
(4)  any other sources of revenue that the legislature
may dedicate for deposit to the program fund.
(c)  Money in the fund may be appropriated only to the
commission for purposes authorized by this chapter.
Sec. 321.004.  USE OF FUND.  (a)  The Texas Workforce
Commission must submit to the Texas Workforce Commissioners and the
Texas Comptrollers of Public Accounts a request for approval of a
proposed disbursement and how that disbursement will be used to
increase subsidized child care rates or the number of Child Care
Services scholarships provided to eligible families in this state.
Sec. 321.005.  ANNUAL REPORT.  The commission shall publish
and submit to the legislature a report detailing the efficacy of the
fund not later than December 15 of each even-numbered year.  The
(1)  the amount appropriated to the Child Care Services
program during the preceding state fiscal year;
(2)  the usage of the fund, including the total amount
of child care scholarship payments paid out of the program fund;
(3)  legislative or other recommendations for
improving the impact of the fund; and
(4)  any other information the commission considers
SECTION 2.  Not later than January 1, 2026, the Texas
Workforce Commission shall adopt any rules necessary to administer
the child care scholarship fund established under Chapter 321,
Labor Code, as added by this Act.
SECTION 3.  This Act takes effect September 1, 2025.