The bill introduces a new Chapter 320 in the Labor Code, establishing the "Child-Care Innovation Pilot Program" to enhance the availability of quality, affordable child-care services in specific regions of Texas. 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 aimed at expanding child-care services. Selection criteria for participating boards will focus on strategic plans that include measurable performance goals, stakeholder engagement, and sustainability beyond state funding. The commission will allocate funds based on regional population and unmet child-care needs, and participating boards are required to submit quarterly reports on grant fund usage and progress.

Additionally, the bill stipulates that boards must submit their first report within 120 days of awarding their first grant, with subsequent reports every 120 days thereafter. The commission is responsible for evaluating the program's effectiveness and must provide a comprehensive report by December 1, 2028, outlining outcomes, challenges, and opportunities. The bill also mandates the commission to adopt necessary rules for implementation and specifies that the chapter will expire on September 1, 2029, with an effective date of September 1, 2025.

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