By: West S.B. No. 1617               A BILL TO BE ENTITLED   AN ACT   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 creation and improvement of   state parks.          (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.