House Bill No. 5086 aims to create a Child-Care Innovation Pilot Program in Texas to enhance the availability of quality and affordable child-care services. The program will be managed by the commission in collaboration with local workforce development boards, employers, and high-quality child-care providers to fund innovative projects. The bill outlines a competitive application process for selecting pilot regions and requires boards to submit strategic plans that include measurable performance goals, stakeholder engagement strategies, and sustainability plans beyond state funding. It also establishes eligibility criteria for child-care providers to receive grants, emphasizing high-quality standards, and mandates quarterly reporting on grant fund usage and performance compliance.

Additionally, the bill introduces a new reporting requirement for boards administering grant programs, necessitating the submission of reports every 120 days following the first grant award. The commission is tasked with ensuring that at least 83% of appropriated funds are allocated for grants and is also required to review the program's effectiveness, providing a comprehensive report by December 1, 2028. The bill includes provisions for the commission to adopt necessary rules for implementation and sets an expiration date for the chapter on September 1, 2029, with the bill taking effect on September 1, 2025.

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