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.